1.1                          A bill for an act 
  1.2             relating to state government; appropriating money for 
  1.3             the general legislative, judicial, and administrative 
  1.4             expenses of state government; modifying provisions 
  1.5             relating to state and local government; providing for 
  1.6             economic development; regulating various criminal 
  1.7             justice, judiciary, housing, technology, and election 
  1.8             provisions; authorizing local bonds and airport impact 
  1.9             mitigations; providing for a credit enhancement 
  1.10            program; authorizing contingency property tax levies 
  1.11            in the metropolitan area; amending Minnesota Statutes 
  1.12            2000, sections 2.722, subdivision 1; 2.724, 
  1.13            subdivision 3; 3.3005, subdivision 2, by adding a 
  1.14            subdivision; 3.98, subdivision 2; 8.15, by adding a 
  1.15            subdivision; 10A.01, subdivisions 9, 18; 10A.20, 
  1.16            subdivision 6b, by adding a subdivision; 10A.25, 
  1.17            subdivision 1, by adding subdivisions; 10A.27, 
  1.18            subdivisions 1, 2, 10; 10A.275, subdivision 1; 10A.28, 
  1.19            subdivision 1; 10A.31, subdivisions 3a, 5, 7, by 
  1.20            adding a subdivision; 10A.322; 10A.323; 16A.10, 
  1.21            subdivision 2; 16A.103, subdivisions 1, 1a; 16A.152, 
  1.22            subdivision 7; 16B.25, subdivision 2; 16B.335, 
  1.23            subdivision 3; 16B.61, subdivision 1; 16B.62, 
  1.24            subdivision 1; 16B.63, by adding a subdivision; 
  1.25            16B.88, subdivision 2; 16C.22; 16E.04, subdivision 2; 
  1.26            116L.02; 116L.03; 116L.04, by adding a subdivision; 
  1.27            116L.05, by adding a subdivision; 116L.16; 181.945; 
  1.28            200.02, subdivisions 7, 23; 211A.12; 268.022, 
  1.29            subdivision 2; 268.085, by adding a subdivision; 
  1.30            268.665, by adding subdivisions; 268.666, by adding a 
  1.31            subdivision; 270A.07, subdivision 1; 290.06, 
  1.32            subdivision 23; 326.90, subdivision 1; 349.165, 
  1.33            subdivisions 1, 3; 357.18, subdivision 3; 403.11, 
  1.34            subdivision 1; 403.113, subdivisions 1, 3; 462.353, 
  1.35            subdivision 4; 462.358, subdivision 2b; 462A.01; 
  1.36            462A.03, subdivisions 1, 6, 10, by adding a 
  1.37            subdivision; 462A.04, subdivision 6; 462A.05, 
  1.38            subdivisions 14, 14a, 16, 22, 26; 462A.06, 
  1.39            subdivisions 1, 4; 462A.07, subdivisions 10, 12; 
  1.40            462A.073, subdivision 1; 462A.15; 462A.17, subdivision 
  1.41            3; 462A.20, subdivision 3; 462A.201, subdivisions 2, 
  1.42            6; 462A.204, subdivision 3; 462A.205, subdivisions 4, 
  1.43            4a; 462A.209; 462A.2091, subdivision 3; 462A.2093, 
  1.44            subdivision 1; 462A.2097; 462A.21, subdivisions 5, 10, 
  1.45            by adding subdivisions; 462A.222, subdivision 1a; 
  1.46            462A.24; 462A.33, subdivisions 1, 2, 3, 5, by adding a 
  2.1             subdivision; 473.195, by adding a subdivision; 
  2.2             473.255, subdivisions 1, 2; 473.517, subdivision 3; 
  2.3             473.901, subdivision 1; 480.182; 517.08, subdivisions 
  2.4             1b, 1c; Laws 1997, chapter 202, article 2, section 61, 
  2.5             as amended; Laws 1998, chapter 366, section 80; Laws 
  2.6             1999, chapter 250, article 1, section 12, subdivision 
  2.7             3; Laws 1999, chapter 250, article 1, section 34; Laws 
  2.8             2000, chapter 488, article 8, section 2; proposing 
  2.9             coding for new law in Minnesota Statutes, chapters 4A; 
  2.10            8; 11A; 15A; 16B; 16E; 116J; 137; 268; 336; 462; 462A; 
  2.11            473; repealing Minnesota Statutes 2000, sections 8.15, 
  2.12            subdivision 2; 16E.08; 129D.06; 179A.07, subdivision 
  2.13            7; 462A.201, subdivision 4; 462A.207; 462A.209, 
  2.14            subdivision 4; 462A.21, subdivision 17; 462A.221, 
  2.15            subdivision 4; 462A.30, subdivision 2; 462A.33, 
  2.16            subdivisions 4, 6, 7. 
  2.17  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  2.18                             ARTICLE 1
  2.19                           APPROPRIATIONS 
  2.20  Section 1.  [STATE GOVERNMENT APPROPRIATIONS.] 
  2.21     The sums shown in the columns marked "APPROPRIATIONS" are 
  2.22  appropriated from the general fund, or another fund named, to 
  2.23  the agencies and for the purposes specified in this act, to be 
  2.24  available for the fiscal years indicated for each purpose.  The 
  2.25  figures "2001," "2002," and "2003," where used in this act, mean 
  2.26  that the appropriation or appropriations listed under them are 
  2.27  available for the year ending June 30, 2001, June 30, 2002, or 
  2.28  June 30, 2003, respectively.  
  2.29                          SUMMARY BY FUND 
  2.30                                                       BIENNIAL
  2.31                            2002          2003           TOTAL
  2.32  General              $346,073,000   $334,075,000   $...,...,000
  2.33  For 2001 - $77,000
  2.34  State 
  2.35  Government 
  2.36  Special Revenue        32,032,000     31,463,000     ..,...,000 
  2.37  For 2001 - $3,998,000
  2.38  Health Care Access      1,881,000      1,914,000      .,...,000
  2.39  TANF                    1,900,000      1,950,000 
  2.40  Environmental             926,000        939,000        ...,000
  2.41  Lottery Prize 
  2.42  Fund                      750,000        ...,000        ...,000
  2.43  Special Revenue      300,000 
  2.44  Highway User
  2.45  Tax Distribution        2,191,000      2,237,000      .,...,000
  3.1   Workers'
  3.2   Compensation            7,444,000      7,941,000     ..,...,000 
  3.3   For 2001 - $100,000 
  3.4   TOTAL                $...,...,000   $...,...,000   $...,...,000
  3.5                                              APPROPRIATIONS 
  3.6                                          Available for the Year 
  3.7                                              Ending June 30 
  3.8                                             2002         2003 
  3.9   Sec. 2.  LEGISLATURE 
  3.10  Subdivision 1.  Total  
  3.11  Appropriation                         65,258,000     64,748,000
  3.12                Summary by Fund
  3.13  General              65,108,000    64,748,000
  3.14  Health Care Access      150,000       150,000
  3.15  The amounts that may be spent from this 
  3.16  appropriation for each program are 
  3.17  specified in the following subdivisions.
  3.18  Subd. 2.  Senate                      24,021,000     23,013,000
  3.19  Subd. 3.  House of Representatives    24,902,000     25,581,000
  3.20  Subd. 4.  Legislative 
  3.21  Coordinating Commission               16,335,000     16,304,000
  3.22  $250,000 the first year is for 
  3.23  investment and technology. 
  3.24                Summary by Fund
  3.25  General              16,185,000    16,154,000
  3.26  Health Care Access      150,000       150,000
  3.27  $95,000 is for the Mississippi River 
  3.28  Parkway Commission to support the 
  3.29  increased promotion of tourism and 
  3.30  economic development along the Great 
  3.31  River Road. 
  3.32  The salary increases recommended by the 
  3.33  compensation council on March 26, 2001, 
  3.34  for judges, constitutional officers, 
  3.35  and legislators are ratified, except as 
  3.36  modified by this subdivision and in new 
  3.37  Minnesota Statutes, section 15A.0821. 
  3.38  Effective retroactively to January 1, 
  3.39  2001, the salaries of other 
  3.40  constitutional officers are set at the 
  3.41  following percentages of the salary of 
  3.42  the governor:  
  3.43  attorney general - 95 percent; 
  3.44  state auditor - 85 percent; 
  3.45  secretary of state - 75 percent; 
  3.46  lieutenant governor - 65 percent; 
  3.47  state treasurer - 65 percent. 
  4.1   The recommendations of the compensation 
  4.2   council concerning the salaries of the 
  4.3   heads of state and metropolitan 
  4.4   agencies may not take effect unless 
  4.5   enacted by law. 
  4.6   Of amounts previously appropriated to 
  4.7   the legislative coordinating commission 
  4.8   and carried forward into the biennium 
  4.9   beginning July 1, 2001, $1,440,000 is 
  4.10  canceled to the general fund. 
  4.11  $5,738,000 the first year and 
  4.12  $6,341,000 the second year are for the 
  4.13  office of the revisor of statutes. 
  4.14  $1,295,000 the first year and 
  4.15  $1,339,000 the second year are for the 
  4.16  legislative reference library. 
  4.17  $5,933,000 the first year and 
  4.18  $6,083,000 the second year are for the 
  4.19  office of the legislative auditor and 
  4.20  legislative audit commission. 
  4.21  Sec. 3.  GOVERNOR AND 
  4.22  LIEUTENANT GOVERNOR                    4,253,000      4,356,000
  4.23  For 2001 - $15,000
  4.24  $750,000 the first year and $750,000 
  4.25  the second year are to expand funding 
  4.26  for the youth intervention program 
  4.27  established under Minnesota Statutes, 
  4.28  section 268.30, subdivisions 1 and 2.  
  4.29  The appropriation is available until 
  4.30  expended.  This amount is added to the 
  4.31  base. 
  4.32  This appropriation is to fund the 
  4.33  offices of the governor and lieutenant 
  4.34  governor.  
  4.35  $19,000 the first year and $19,000 the 
  4.36  second year are for necessary expenses 
  4.37  in the normal performance of the 
  4.38  governor's and lieutenant governor's 
  4.39  duties for which no other reimbursement 
  4.40  is provided. 
  4.41  By September 1 of each year, the 
  4.42  commissioner of finance shall report to 
  4.43  the chairs of the senate governmental 
  4.44  operations budget division and the 
  4.45  house state government finance division 
  4.46  any personnel costs incurred by the 
  4.47  office of the governor and lieutenant 
  4.48  governor that were supported by 
  4.49  appropriations to other agencies during 
  4.50  the previous fiscal year.  The office 
  4.51  of the governor shall inform the chairs 
  4.52  of the divisions before initiating any 
  4.53  interagency agreements. 
  4.54  The funds appropriated to the 
  4.55  governor's office for maintenance of 
  4.56  the governor's residence are 
  4.57  transferred to the department of 
  4.58  administration for the same purpose. 
  4.59  Sec. 4.  STATE AUDITOR                10,025,000     10,266,000
  5.1   Sec. 5.  STATE TREASURER               2,368,000      2,337,000
  5.2   For 2001 - $10,000
  5.3   $1,093,000 the first year and 
  5.4   $1,125,000 the second year are for the 
  5.5   treasurer to pay for banking services 
  5.6   by fees rather than by compensating 
  5.7   balances.  
  5.8   Sec. 6.  ATTORNEY GENERAL             31,613,000     32,166,000
  5.9                 Summary by Fund
  5.10  General              28,001,000    28,502,000
  5.11  State Government
  5.12  Special Revenue       2,993,000     3,035,000
  5.13  Environmental           619,000       629,000 
  5.14  $883,000 the first year and $883,000 
  5.15  the second year are to maintain and 
  5.16  upgrade existing information technology 
  5.17  systems.  
  5.18  Sec. 7.  SECRETARY OF STATE            7,225,000      7,252,000
  5.19  For 2001 - $17,000
  5.20  $1,306,000 the first year and 
  5.21  $1,054,000 the second year are for 
  5.22  uniform commercial code operating costs.
  5.23  $46,000 the first year is for 
  5.24  conducting a precinct caucus straw 
  5.25  poll, preparing election training 
  5.26  materials, and producing an election 
  5.27  judge training video.  This amount is 
  5.28  included in base level funding every 
  5.29  other year, beginning in fiscal year 
  5.30  2004. 
  5.31  $218,000 the second year is for 
  5.32  printing of the Minnesota legislative 
  5.33  manual and operation of a voter 
  5.34  information telephone line.  This 
  5.35  amount is included in base level 
  5.36  funding every other year, beginning in 
  5.37  fiscal year 2005. 
  5.38  $20,000 the first year and $20,000 the 
  5.39  second year of the fees collected by 
  5.40  the secretary of state's office from 
  5.41  providing a service under Minnesota 
  5.42  Statutes, chapter 336, including fees 
  5.43  collected under Minnesota Statutes, 
  5.44  section 13.03, subdivision 10, must be 
  5.45  canceled to the general fund. 
  5.46  Sec. 8.  CAMPAIGN FINANCE AND 
  5.47  PUBLIC DISCLOSURE BOARD                  671,000        698,000
  5.48  For 2001 - $35,000
  5.49  $35,000 in fiscal year 2001 is for the 
  5.50  campaign finance and public disclosure 
  5.51  board for operating budget deficiencies.
  5.52  Sec. 9.  INVESTMENT BOARD              6,029,000      2,583,000
  6.1   $100,000 is for the biennium ending 
  6.2   June 30, 2003, for the purpose of 
  6.3   paying staff costs related to focusing 
  6.4   efforts on investing in Minnesota-based 
  6.5   startup businesses under Minnesota 
  6.6   Statutes, section 11A.26. 
  6.7   $4,000,000 in fiscal year 2002 is for 
  6.8   transfer to the high technology venture 
  6.9   capital account. 
  6.10  Sec. 10.  ADMINISTRATIVE HEARINGS      7,444,000      7,941,000
  6.11  For 2001 - $100,000
  6.12  This appropriation is from the workers' 
  6.13  compensation fund. 
  6.14  Sec. 11.  OFFICE OF STRATEGIC 
  6.15  AND LONG-RANGE PLANNING                6,158,000      4,913,000
  6.16  $200,000 the first year is to continue 
  6.17  the generic environmental impact 
  6.18  statement on urban development.  
  6.19  $170,000 the first year is to continue 
  6.20  the generic environmental impact 
  6.21  statement on animal agriculture.  Funds 
  6.22  not spent in the first year are 
  6.23  available in the second year. 
  6.24  $1,000,000 the first year is for a 
  6.25  grant to regional development 
  6.26  commissions or, in regions not served 
  6.27  by regional development commissions, to 
  6.28  regional organizations selected by the 
  6.29  director of strategic and long-range 
  6.30  planning, to support planning work on 
  6.31  behalf of local units of government.  
  6.32  The planning work shall include, but 
  6.33  need not be limited to:  
  6.34  (1) development of local zoning 
  6.35  ordinances; 
  6.36  (2) land use plans; 
  6.37  (3) community or economic development 
  6.38  plans; 
  6.39  (4) transportation and transit plans; 
  6.40  (5) solid waste management plans; 
  6.41  (6) wastewater management plans; 
  6.42  (7) workforce development plans; 
  6.43  (8) housing development plans and/or 
  6.44  market analysis; 
  6.45  (9) rural health service plans; 
  6.46  (10) natural resources management 
  6.47  plans; or 
  6.48  (11) development of a geographical 
  6.49  information systems database to serve a 
  6.50  region's needs, including hardware and 
  6.51  software purchases, and related labor 
  6.52  costs. 
  7.1   Sec. 12.  ADMINISTRATION 
  7.2   Subdivision 1.  Total 
  7.3   Appropriation                         64,891,000     55,543,000
  7.4   For 2001 - $3,998,000
  7.5                 Summary by Fund
  7.6   General              33,952,000    27,115,000
  7.7   State Government 
  7.8   Special Revenue      29,039,000    28,428,000
  7.9   For 2001 - $3,998,000
  7.10  Special Revenue         300,000       ...,000
  7.11  Lottery Prize Fund      750,000       ...,000
  7.12  The amounts that may be spent from this 
  7.13  appropriation for each program are 
  7.14  specified in the following subdivisions.
  7.15  Subd. 2.  Operations Management 
  7.16       3,951,000      4,053,000
  7.17  Subd. 3.  Office of Technology
  7.18       9,519,000      4,237,000
  7.19                Summary by Fund
  7.20  General               8,645,000     3,632,000
  7.21  State Government 
  7.22  Special Revenue         574,000       605,000
  7.23  Special Revenue         300,000       ...,000
  7.24  The amounts that may be spent from this 
  7.25  appropriation for each purpose are as 
  7.26  follows: 
  7.27  (a) CriMNet
  7.28  $2,000,000 the first year and 
  7.29  $2,000,000 the second year are for the 
  7.30  planning, development, and 
  7.31  implementation of an integration 
  7.32  backbone consistent with the criminal 
  7.33  justice information architecture 
  7.34  (CriMNet).  This money may not be used 
  7.35  by the commissioner for any other 
  7.36  purpose. 
  7.37  This appropriation is available only 
  7.38  pursuant to a budget approved by the 
  7.39  criminal and juvenile justice 
  7.40  information policy group that is 
  7.41  consistent with technology and project 
  7.42  management analyses of the office of 
  7.43  technology. 
  7.44  Up to 20 percent of this appropriation 
  7.45  may be released on July 1, 2001.  The 
  7.46  remaining funds shall be released upon 
  7.47  approval of the criminal and juvenile 
  7.48  justice information policy group, under 
  7.49  advisement from the office of 
  8.1   technology.  The policy group shall 
  8.2   approve the release of funding for each 
  8.3   project to ensure that the project is 
  8.4   in compliance with the statewide 
  8.5   criminal justice information system 
  8.6   standards, that each project remains 
  8.7   feasible according to plans established 
  8.8   pursuant to Minnesota Statutes, 
  8.9   sections 16E.04, subdivision 3, and 
  8.10  299C.65, subdivisions 6 or 7, or that 
  8.11  an updated plan has been approved by 
  8.12  the policy group and the project is 
  8.13  progressing according to the revised 
  8.14  plan, that the project is fully 
  8.15  integrated with existing information 
  8.16  and communications networks, and that 
  8.17  it complies with technology standards 
  8.18  and protocols established by the office 
  8.19  of technology for statewide 
  8.20  connectivity and interoperability. 
  8.21  (b) Administrative Services
  8.22       2,707,000      2,707,000
  8.23  $468,000 the first year and $468,000 
  8.24  the second year are for ongoing costs 
  8.25  of the North Star II project under 
  8.26  Minnesota Statutes, section 16E.07. 
  8.27  (c) Small Agency Infrastructure 
  8.28                Summary by Fund
  8.29  General                 271,000       147,000
  8.30  State Government 
  8.31  Special Revenue         574,000       605,000
  8.32  Workers'
  8.33  Compensation            ...,000       ...,000
  8.34  $418,000 is for a transfer to the 
  8.35  campaign finance and public disclosure 
  8.36  board, the board of judicial standards, 
  8.37  the racing commission, the department 
  8.38  of veterans affairs, and the Minnesota 
  8.39  amateur sports commission.  $1,179,000 
  8.40  from the state government special 
  8.41  revenue fund is for a transfer to the 
  8.42  board of chiropractic examiners, the 
  8.43  board of medical practice, the board of 
  8.44  nursing, and the board of social work 
  8.45  for the small agency infrastructure 
  8.46  project.  This appropriation is 
  8.47  available until June 30, 2003.  The 
  8.48  commissioner shall report on the 
  8.49  progress of this project to the chairs 
  8.50  of the legislative committees 
  8.51  responsible for this budget item by 
  8.52  January 15, 2002. 
  8.53  $300,000 in fiscal year 2002 is from 
  8.54  the unemployment insurance technology 
  8.55  initiative account in the special 
  8.56  revenue fund for a study of the 
  8.57  unemployment insurance technology 
  8.58  initiative project.  The study should 
  8.59  include an analysis of current business 
  8.60  processes, identification of 
  8.61  reengineering opportunities, and 
  9.1   development of a project plan, and 
  9.2   should ensure integration with the 
  9.3   state's enterprise architecture.  The 
  9.4   study is the joint responsibility of 
  9.5   the office of technology and the 
  9.6   department of economic security 
  9.7   unemployment branch.  The study must be 
  9.8   completed no later than June 30, 2002.  
  9.9   Upon completion of the study, the 
  9.10  department of economic security may 
  9.11  begin immediate and independent 
  9.12  implementation of the full project plan.
  9.13  (d) Technology Enterprise Fund 
  9.14       1,000,000        -0-    
  9.15  A technology enterprise fund is 
  9.16  established.  Money deposited in the 
  9.17  fund is appropriated to the 
  9.18  commissioner of administration for the 
  9.19  purpose of funding enterprise-wide 
  9.20  technology projects and citizen 
  9.21  telecommunications access.  A portion 
  9.22  of revenues from the sale of 
  9.23  information technology surplus 
  9.24  equipment or data, of funds collected 
  9.25  from rental of communication towers, of 
  9.26  refunds from information technology 
  9.27  services or purchases, and from savings 
  9.28  generated by information technology and 
  9.29  telecommunications projects may be 
  9.30  deposited into the fund upon agreement 
  9.31  by the commissioner of administration 
  9.32  and the executive of the government 
  9.33  entity generating those funds.  The 
  9.34  commissioner of administration may 
  9.35  accept contributions from other 
  9.36  entities or other gifts and grants into 
  9.37  the fund.  The transfer of funds 
  9.38  between state agencies is subject to 
  9.39  the approval of the commissioner of 
  9.40  finance.  The commissioner of finance 
  9.41  shall notify the chairs of the 
  9.42  committees funding the affected state 
  9.43  agencies of such transfers.  Funds are 
  9.44  available until spent. 
  9.45  $150,000 from the general fund for the 
  9.46  Minnesota high technology foundation 
  9.47  for the Minnesota computers for schools 
  9.48  program.  The foundation must provide a 
  9.49  match of $1 of private funds for every 
  9.50  $1 of state funds appropriated for the 
  9.51  Minnesota computers for schools program.
  9.52  Subd. 4.  Intertechnologies Group
  9.53      29,324,000     28,682,000
  9.54                Summary by Fund
  9.55  General                 859,000       859,000
  9.56  State Government 
  9.57  Special Revenue      28,465,000    27,823,000
  9.58  For 2001 - $3,998,000 
  9.59  $3,988,000 in fiscal year 2001 and 
  9.60  $2,862,000 in fiscal year 2002 are from 
 10.1   the 911 fund under Minnesota Statutes, 
 10.2   section 403.11, for increased costs 
 10.3   associated with wireless-enhanced 911 
 10.4   and for reimbursements to providers for 
 10.5   prior period services not yet certified 
 10.6   by the public utilities commission. 
 10.7   The appropriation from the special 
 10.8   revenue fund is for recurring costs of 
 10.9   911 emergency telephone service. 
 10.10  In each of the fiscal years 2002 and 
 10.11  2003, the department of administration 
 10.12  intertechnologies group must cancel 
 10.13  $225,000 of the unobligated balance in 
 10.14  the internal service fund to the 
 10.15  general fund.  No cancellation may be 
 10.16  made from any balance that would 
 10.17  otherwise be required to be rebated to 
 10.18  the federal government. 
 10.19  Subd. 5.  Facilities Management
 10.20       10,688,000    10,779,000
 10.21  $6,728,000 the first year and 
 10.22  $6,728,000 the second year are for 
 10.23  office space costs of the legislature 
 10.24  and veterans organizations, for 
 10.25  ceremonial space, and for statutorily 
 10.26  free space. 
 10.27  Subd. 6.  Management Services
 10.28       3,613,000      3,620,000 
 10.29  $162,000 the first year and $163,000 
 10.30  the second year are for the information 
 10.31  policy training program under Minnesota 
 10.32  Statutes, section 13.073. 
 10.33  $196,000 the first year and $196,000 
 10.34  the second year are for the office of 
 10.35  the state archaeologist. 
 10.36  $74,000 the first year and $74,000 the 
 10.37  second year are for the developmental 
 10.38  disabilities council. 
 10.39  The department of the administration's 
 10.40  carryforward provisions of Laws 1999, 
 10.41  chapter 250, article 1, section 12, 
 10.42  subdivision 4, are canceled, and 
 10.43  remaining funds shall be returned to 
 10.44  the general fund at the end of the 
 10.45  current biennium. 
 10.46  The base amount of funding used for 
 10.47  consulting contracts by the department 
 10.48  of administration is reduced by 
 10.49  $439,000, which must come from 
 10.50  departmental consulting funds. 
 10.51  The management analysis division shall 
 10.52  conduct a study to assess the 
 10.53  feasibility of collecting fees for 
 10.54  services provided by the office of the 
 10.55  state archaeologist.  The management 
 10.56  analysis division shall submit a report 
 10.57  to the chair of the senate judiciary 
 10.58  economic development state government 
 11.1   budget division and the chair of the 
 11.2   house of representatives state 
 11.3   government finance committees by July 
 11.4   15, 2002. 
 11.5   $200,000 the first year and $100,000 
 11.6   the second year are for the STAR 
 11.7   program. 
 11.8   Subd. 7.  Fiscal Agent
 11.9          787,000          2,000
 11.10                Summary by Fund
 11.11  General                  37,000         2,000
 11.12  Lottery Prize Fund      750,000       -0-    
 11.13  $750,000 from the lottery prize fund is 
 11.14  for a grant to reconstruct project 
 11.15  turnabout in Granite Falls destroyed by 
 11.16  the Granite Falls tornado.  This 
 11.17  appropriation is available until June 
 11.18  30, 2003, and does not become part of 
 11.19  the base. 
 11.20  $35,000 is for a grant to the Longville 
 11.21  city hall district to complete 
 11.22  construction of the Longville city hall 
 11.23  ambulance building. 
 11.24  $2,000 the first year and $2,000 the 
 11.25  second year are for the state 
 11.26  employees' band. 
 11.27  Subd. 8.  Minneapolis-Guthrie
 11.28  Theater
 11.29  The appropriation in Laws 2000, chapter 
 11.30  492, article 1, section 14, subdivision 
 11.31  2, may be used to predesign and begin 
 11.32  design of a new Guthrie Theater and 
 11.33  need not be used to acquire and prepare 
 11.34  a site for the theater nor to 
 11.35  construct, furnish, and equip it. 
 11.36  Subd. 9.  Public Broadcasting 
 11.37       6,159,000      4,170,000
 11.38  $1,708,000 the first year and 
 11.39  $1,716,000 the second year are for 
 11.40  matching grants for public television.  
 11.41  $703,000 the first year and $706,000 
 11.42  the second year are for public 
 11.43  television.  
 11.44  $2,000,000 the first year is for grants 
 11.45  to noncommercial television stations to 
 11.46  assist with conversion to a digital 
 11.47  broadcast signal as mandated by the 
 11.48  federal government.  In order to 
 11.49  qualify for a grant, a station must 
 11.50  meet the criteria established for 
 11.51  grants in Minnesota Statutes, section 
 11.52  129D.12, subdivision 2. 
 11.53  Equipment or digital conversion grant 
 11.54  allocations shall be made after 
 12.1   considering the recommendations of the 
 12.2   Minnesota public television association.
 12.3   $441,000 the first year and $441,000 
 12.4   the second year are for grants for 
 12.5   public information television 
 12.6   transmission of legislative 
 12.7   activities.  At least one-half must go 
 12.8   for programming to be broadcast in 
 12.9   rural Minnesota. 
 12.10  $50,000 the first year and $50,000 the 
 12.11  second year are for grants to the Twin 
 12.12  Cities regional cable channel. 
 12.13  $395,000 the first year and $395,000 
 12.14  the second year are for community 
 12.15  service grants to public educational 
 12.16  radio stations, which must be allocated 
 12.17  after considering the recommendations 
 12.18  of the association of Minnesota public 
 12.19  educational radio stations under 
 12.20  Minnesota Statutes, section 129D.14.  
 12.21  $862,000 the first year and $862,000 
 12.22  the second year are for equipment 
 12.23  grants to public radio stations.  These 
 12.24  grants must be allocated after 
 12.25  considering the recommendations of the 
 12.26  association of Minnesota public 
 12.27  educational radio stations and 
 12.28  Minnesota Public Radio, Inc. 
 12.29  If an appropriation for either year for 
 12.30  grants to public television or radio 
 12.31  stations is not sufficient, the 
 12.32  appropriation for the other year is 
 12.33  available for it. 
 12.34  Sec. 13.  CAPITOL AREA ARCHITECTURAL 
 12.35  AND PLANNING BOARD                       334,000        341,000
 12.36  Sec. 14.  FINANCE 
 12.37  Subdivision 1.  Total 
 12.38  Appropriation                         17,753,000     18,216,000
 12.39  The amounts that may be spent from this 
 12.40  appropriation for each program are 
 12.41  specified in the following subdivisions.
 12.42  (a) The statewide systems account is a 
 12.43  separate account in the general fund.  
 12.44  All money resulting from billings for 
 12.45  statewide systems services must be 
 12.46  deposited in the account.  For the 
 12.47  purposes of this section, statewide 
 12.48  systems includes the state accounting 
 12.49  system, payroll system, human resources 
 12.50  systems, procurement system, and 
 12.51  related information access systems. 
 12.52  (b) The commissioner of finance may 
 12.53  bill up to $7,520,000 in fiscal year 
 12.54  2002 and $7,520,000 in fiscal year 2003 
 12.55  for statewide systems services provided 
 12.56  to state agencies, judicial branch 
 12.57  agencies, the University of Minnesota, 
 12.58  the Minnesota state colleges and 
 12.59  universities, and other entities.  
 12.60  Billing must be based only on usage of 
 13.1   service relating to statewide systems 
 13.2   provided by the intertechnologies 
 13.3   division and the cost of upgrades to 
 13.4   the SEMA4 system.  Each agency shall 
 13.5   transfer from agency operating 
 13.6   appropriations to the statewide systems 
 13.7   account the amount billed by the 
 13.8   commissioner.  Billing policies and 
 13.9   procedures related to statewide systems 
 13.10  services must be developed by the 
 13.11  commissioner of finance in consultation 
 13.12  with the commissioners of employee 
 13.13  relations and administration, the 
 13.14  University of Minnesota, and the 
 13.15  Minnesota state colleges and 
 13.16  universities. 
 13.17  (c) Money transferred into the account 
 13.18  is appropriated to the commissioner of 
 13.19  finance to pay for statewide systems 
 13.20  services during the fiscal years 
 13.21  2002-2003. 
 13.22  The department of finance's 
 13.23  carryforward provisions of Laws 1999, 
 13.24  chapter 250, article 1, section 14, 
 13.25  subdivision 2, are canceled, and 
 13.26  remaining funds shall be returned to 
 13.27  the general fund at the end of the 
 13.28  current biennium. 
 13.29  The commissioner of finance shall 
 13.30  undertake a study of building projects 
 13.31  authorized for state agencies.  The 
 13.32  study must include an estimate of any 
 13.33  change in operating costs to agencies 
 13.34  related to the construction or major 
 13.35  renovation of facilities that have been 
 13.36  authorized in previous bonding bills.  
 13.37  The analysis must examine each project 
 13.38  authorized since 1990, include only 
 13.39  state agencies, and measure actual cost 
 13.40  increases due solely to building 
 13.41  operations.  The study must also 
 13.42  contain a comparison of the cash flows 
 13.43  of projects estimated by agencies at 
 13.44  the time projects were proposed to the 
 13.45  legislature and the actual cash flows 
 13.46  of projects actually undertaken.  The 
 13.47  study must also include an analysis of 
 13.48  the inflation contingency included in 
 13.49  the initial proposals with cost changes 
 13.50  that occurred solely due to inflation.  
 13.51  This comparison may not include costs 
 13.52  changes due to change orders or other 
 13.53  project changes after the projects have 
 13.54  been authorized.  The commissioner 
 13.55  shall consult with the finance chair in 
 13.56  the senate and the ways and means chair 
 13.57  in the house of representatives on the 
 13.58  methodology used in the analysis and 
 13.59  submit a final report to the chairs by 
 13.60  November 15, 2001.  The commissioner 
 13.61  shall use the results of operating 
 13.62  costs estimates in any planning budgets 
 13.63  included under Minnesota Statutes, 
 13.64  section 16A.103. 
 13.65  The base amount of funding used for 
 13.66  consulting contracts by the department 
 13.67  of finance is reduced by $260,000, 
 14.1   which must come from departmental 
 14.2   consulting funds. 
 14.3   Subd. 2.  State Financial Management 
 14.4        8,006,000      8,205,000
 14.5   Subd. 3.  Information and 
 14.6   Management Services 
 14.7        9,747,000     10,011,000
 14.8   Sec. 15.  EMPLOYEE RELATIONS 
 14.9   Subdivision 1.  Total 
 14.10  Appropriation                          7,667,000      7,847,000
 14.11  The amounts that may be spent from this 
 14.12  appropriation for each program are 
 14.13  specified in the following subdivisions.
 14.14  The workers' compensation reinsurance 
 14.15  association shall report all operating 
 14.16  expenses, including annual salary 
 14.17  figures, by name and position, other 
 14.18  compensation, and expenses to the 
 14.19  committees on commerce of the Minnesota 
 14.20  legislature by January 15, 2002. 
 14.21  Subd. 2.  Employee Insurance
 14.22          70,000         70,000
 14.23  For fiscal years 2002 and 2003, up to 
 14.24  $1,320,000 may be transferred from the 
 14.25  revolving fund of the insurance 
 14.26  division for purposes of the employee 
 14.27  assistance program. 
 14.28  Subd. 3.  Human Resources Management
 14.29       7,597,000      7,777,000
 14.30  $75,000 the first year and $75,000 the 
 14.31  second year are for a grant to the 
 14.32  government training service. 
 14.33  Sec. 16.  REVENUE 
 14.34  Subdivision 1.  Total  
 14.35  Appropriation                        101,538,000     97,049,000
 14.36                Summary by Fund
 14.37  General              97,509,000    92,738,000
 14.38  Health Care Access    1,731,000     1,764,000
 14.39  Highway User 
 14.40  Tax Distribution      2,191,000     2,237,000
 14.41  Environmental           307,000       310,000
 14.42  The amounts that may be spent from this 
 14.43  appropriation for each program are 
 14.44  specified in the following subdivisions.
 14.45  $179,000 is appropriated to the 
 14.46  commissioner in the first year for 
 14.47  allocation as follows: 
 15.1   (1) $80,000 for deposit in the general 
 15.2   fund of the city of Osseo; and 
 15.3   (2) $99,000 for deposit in the special 
 15.4   fund of the Osseo volunteer firefighter 
 15.5   relief association.  This is a one-time 
 15.6   expenditure.  Funds not spent in the 
 15.7   first year are available in the second 
 15.8   year. 
 15.9   $200,000 is to be apportioned among the 
 15.10  counties in amendment number 5 and 
 15.11  amendment number 6 to the Presidential 
 15.12  Declaration of Major Disaster, DR1333, 
 15.13  to provide reimbursement for abatements 
 15.14  granted under section 8, for taxes 
 15.15  payable in 2000 and 2001 to properties 
 15.16  damaged by tornadoes on July 25, 2000.  
 15.17  The apportionment shall be based upon 
 15.18  the amount of disaster-related market 
 15.19  value loss in each county.  Counties 
 15.20  must be reimbursed only for property 
 15.21  taxes that were actually abated, not to 
 15.22  exceed each county's apportioned amount.
 15.23                Summary by Fund
 15.24  General              10,786,000    10,786,000
 15.25  Health Care Access       53,000        53,000
 15.26  Subd. 2.  Tax System Management
 15.27      90,899,000     86,228,000
 15.28                Summary by Fund
 15.29  General              86,723,000    81,970,000
 15.30  Health Care Access    1,678,000     1,711,000
 15.31  Highway User 
 15.32  Tax Distribution      2,191,000     2,237,000
 15.33  Environmental           307,000       310,000
 15.34  Subd. 3.  Accounts Receivable Management
 15.35      10,839,000     10,821,000
 15.36  Sec. 17.  MILITARY AFFAIRS  
 15.37  Subdivision 1.  Total 
 15.38  Appropriation                         14,138,000    14,432,000
 15.39  The amounts that may be spent from this 
 15.40  appropriation for each program are 
 15.41  specified in the following subdivisions.
 15.42  $50,000 is to assist in the operation 
 15.43  and staffing of the Minnesota national 
 15.44  guard youth camp at Camp Ripley.  Of 
 15.45  this amount, $25,000 is for the fiscal 
 15.46  year ending June 30, 2002, and $25,000 
 15.47  is for the fiscal year ending June 30, 
 15.48  2003.  This appropriation is contingent 
 15.49  on its being matched by money from 
 15.50  other sources. 
 15.51  Subd. 2.  Maintenance of Training 
 15.52  Facilities 
 16.1         7,072,000     7,175,000
 16.2   $1,325,000 the first year and 
 16.3   $1,325,000 the second year are 
 16.4   appropriated for asset preservation and 
 16.5   facility repair.  This appropriation 
 16.6   may be transferred between programs, to 
 16.7   the extent it is used for the same 
 16.8   purpose.  The adjutant general may use 
 16.9   other available funding for this 
 16.10  purpose, to the extent it is not 
 16.11  inconsistent with any other law. 
 16.12  Subd. 3.  General Support
 16.13        1,765,000     1,799,000
 16.14  Subd. 4.  Enlistment Incentives
 16.15       5,226,000      5,383,000 
 16.16  $5,226,000 the first year and 
 16.17  $5,382,000 the second is for enlistment 
 16.18  incentives. 
 16.19  If appropriations for either year of 
 16.20  the biennium are insufficient, the 
 16.21  appropriation from the other year is 
 16.22  available.  The appropriations for 
 16.23  enlistment incentives are available 
 16.24  until expended. 
 16.25  Subd. 5.  Emergency Services 
 16.26          75,000         75,000
 16.27  These appropriations are for expenses 
 16.28  of military forces ordered to active 
 16.29  duty under Minnesota Statutes, chapter 
 16.30  192.  If the appropriation for either 
 16.31  year is insufficient, the appropriation 
 16.32  for the other year is available for it. 
 16.33  Sec. 18.  VETERANS AFFAIRS             4,435,000      4,466,000
 16.34  $25,000 is for a grant to the St. Louis 
 16.35  County Heritage and Arts Center in 
 16.36  Duluth, Minnesota, to be used to 
 16.37  complete the Veterans Memorial Hall 
 16.38  physical exhibit and displays.  This 
 16.39  appropriation is available until June 
 16.40  30, 2002. 
 16.41  Sec. 19.  VETERANS OF FOREIGN 
 16.42  WARS                                      55,000         55,000
 16.43  For carrying out the provisions of Laws 
 16.44  1945, chapter 455. 
 16.45  Sec. 20.  MILITARY ORDER OF 
 16.46  THE PURPLE HEART                          20,000         20,000
 16.47  Sec. 21.  DISABLED AMERICAN VETERANS      13,000         13,000
 16.48  For carrying out the provisions of Laws 
 16.49  1941, chapter 425. 
 16.50  Sec. 22.  GAMBLING CONTROL             2,350,000      2,410,000
 16.51  Sec. 23.  RACING COMMISSION              410,000        418,000
 17.1   Sec. 24.  BOARD OF THE ARTS        
 17.2   Subdivision 1.  Total             
 17.3   Appropriation                         13,716,000     13,890,000
 17.4   Any unencumbered balance remaining in 
 17.5   this section the first year does not 
 17.6   cancel but is available for the second 
 17.7   year of the biennium. 
 17.8   Subd. 2.  Operations and Services 
 17.9        1,041,000      1,065,000 
 17.10  Subd. 3.  Grants Program 
 17.11       8,915,000      8,915,000 
 17.12  Subd. 4.  Regional Arts Councils 
 17.13       3,910,000      3,910,000 
 17.14  Sec. 25.  MINNESOTA HUMANITIES 
 17.15  COMMISSION                             1,372,000      1,436,000
 17.16  Any unencumbered balance remaining in 
 17.17  the first year does not cancel but is 
 17.18  available for the second year of the 
 17.19  biennium. 
 17.20  $500,000 each year is for 
 17.21  Motheread/Fatheread, humanities 
 17.22  programs, workshops, seminars for 
 17.23  adults, and grants to community groups. 
 17.24  Sec. 26.  TORT CLAIMS                    275,000        275,000
 17.25  To be spent by the commissioner of 
 17.26  finance.  
 17.27  If the appropriation for either year is 
 17.28  insufficient, the appropriation for the 
 17.29  other year is available for it.  
 17.30  Sec. 27.  MINNESOTA STATE   
 17.31  RETIREMENT SYSTEM                      9,299,000      9,856,000
 17.32  The amounts estimated to be needed for 
 17.33  each program are as follows: 
 17.34  (a) Legislators 
 17.35       6,821,000      7,230,000
 17.36  Under Minnesota Statutes, sections 
 17.37  3A.03, subdivision 2; 3A.04, 
 17.38  subdivisions 3 and 4; and 3A.11. 
 17.39  (b) Constitutional Officers 
 17.40         355,000        376,000
 17.41  Under Minnesota Statutes, sections 
 17.42  352C.031, subdivision 5; 352C.04, 
 17.43  subdivision 3; and 352C.09, subdivision 
 17.44  2. 
 17.45  If an appropriation in this section for 
 17.46  either year is insufficient, the 
 17.47  appropriation for the other year is 
 17.48  available for it. 
 18.1   Sec. 28.  MINNEAPOLIS EMPLOYEES 
 18.2   RETIREMENT FUND                        3,232,000      3,232,000
 18.3   $3,232,000 the first year and 
 18.4   $3,232,000 the second year are to the 
 18.5   commissioner of finance for payment to 
 18.6   the Minneapolis employees retirement 
 18.7   fund under Minnesota Statutes, section 
 18.8   422A.101, subdivision 3.  Payment must 
 18.9   be made in four equal installments, 
 18.10  March 15, July 15, September 15, and 
 18.11  November 15 each year.  
 18.12  Sec. 29.  POLICE AND FIRE   
 18.13  AMORTIZATION AID                       6,345,000      6,345,000
 18.14  $4,925,000 the first year and 
 18.15  $4,925,000 the second year are to the 
 18.16  commissioner of revenue for state aid 
 18.17  to amortize the unfunded liability of 
 18.18  local police and salaried firefighters 
 18.19  relief associations under Minnesota 
 18.20  Statutes, section 423A.02. 
 18.21  $1,000,000 the first year and 
 18.22  $1,000,000 the second year are to the 
 18.23  commissioner of revenue for 
 18.24  supplemental state aid to amortize the 
 18.25  unfunded liability of local police and 
 18.26  salaried firefighters relief 
 18.27  associations under Minnesota Statutes, 
 18.28  section 423A.02, subdivision 1a. 
 18.29  $420,000 the first year and $420,000 
 18.30  the second year are to the commissioner 
 18.31  of revenue to pay reimbursements to 
 18.32  relief associations for firefighter 
 18.33  supplemental benefits paid under 
 18.34  Minnesota Statutes, section 424A.10. 
 18.35  Sec. 30.  BOARD OF GOVERNMENT 
 18.36  INNOVATION AND COOPERATION           $1,022,000      1,027,000 
 18.37  Sec. 31.  WORKERS' COMPENSATION
 18.38  COURT OF APPEALS
 18.39  The workers' compensation court of 
 18.40  appeals is appropriated funds 
 18.41  sufficient to meet the compensation 
 18.42  council recommendations regarding that 
 18.43  court, from the workers' compensation 
 18.44  special payment fund. 
 18.45  Sec. 32.  CHILDREN, FAMILIES,
 18.46  AND LEARNING                          4,238,000      4,288,000
 18.47  General               2,338,000     2,338,000
 18.48  TANF                  1,900,000     1,950,000
 18.49  $1,900,000 the first year and 
 18.50  $1,950,000 the second year are for 
 18.51  reimbursement grants to transitional 
 18.52  housing programs under Minnesota 
 18.53  Statutes, section 119A.43. 
 18.54  The sums indicated in this section are 
 18.55  appropriated to the commissioner of 
 18.56  children, families, and learning from 
 18.57  the federal Temporary Assistance for 
 18.58  Needy Families (TANF) block grant.  
 19.1   These amounts are available for 
 19.2   expenditure until June 30, 2003.  
 19.3   Appropriations under this section are 
 19.4   one-time appropriations and are not 
 19.5   added to the base for fiscal years 2004 
 19.6   and 2005. 
 19.7   These appropriations must be used for 
 19.8   up to four months of transitional 
 19.9   housing for families with incomes below 
 19.10  200 percent of the federal poverty 
 19.11  guidelines.  Payment must be made to 
 19.12  programs on a reimbursement basis. 
 19.13  [EMERGENCY SERVICES.] For emergency 
 19.14  services for the homeless: 
 19.15        2002           2003
 19.16      350,000        350,000
 19.17  Of the emergency services 
 19.18  appropriation, up to five percent each 
 19.19  year may be used for administrative 
 19.20  costs. 
 19.21  [TRANSITIONAL HOUSING.] For 
 19.22  reimbursement grants to transitional 
 19.23  housing programs under Minnesota 
 19.24  Statutes, section 119A.43: 
 19.25        2002           2003
 19.26     1,988,000      1,988,000
 19.27  Of the transitional housing 
 19.28  appropriation, up to five percent each 
 19.29  year may be used for administrative 
 19.30  costs. 
 19.31     Sec. 33.  [EFFECTIVE DATE.] 
 19.32     The 2001 appropriations in this article are effective the 
 19.33  day following final enactment and are available until June 30, 
 19.34  2003. 
 19.35                             ARTICLE 2
 19.36                  CRIMINAL JUSTICE APPROPRIATIONS
 19.37  Section 1.  [CRIMINAL JUSTICE APPROPRIATIONS.] 
 19.38     The sums shown in the columns marked "APPROPRIATIONS" are 
 19.39  appropriated from the general fund to the agencies and for the 
 19.40  purposes specified in this article, to be available for the 
 19.41  fiscal years indicated for each purpose.  The figures "2002" and 
 19.42  "2003" where used in this article, mean that the appropriation 
 19.43  or appropriations listed under them are available for the year 
 19.44  ending June 30, 2002, or June 30, 2003, respectively. 
 19.45                                             APPROPRIATIONS 
 19.46                                         Available for the Year 
 19.47                                             Ending June 30 
 20.1                                             2002         2003 
 20.2   Sec. 2.  SUPREME COURT 
 20.3   Subdivision 1.  Total 
 20.4   Appropriation                       $ 39,061,000   $ 41,439,000
 20.5   The amounts that may be spent from this 
 20.6   appropriation for each program are 
 20.7   specified in the following subdivisions.
 20.8   Subd. 2.  Supreme Court Operations 
 20.9        5,397,000      5,445,000
 20.10  $5,000 the first year and $5,000 the 
 20.11  second year are for a contingent 
 20.12  account for expenses necessary for the 
 20.13  normal operation of the court for which 
 20.14  no other reimbursement is provided. 
 20.15  (a) $125,000 the first year is to 
 20.16  reimburse Carlton county for 
 20.17  extraordinary expenses related to 
 20.18  homicide trials.  This is a one-time 
 20.19  appropriation. 
 20.20  (b) $160,000 the first year is to 
 20.21  reimburse Aitkin county for 
 20.22  extraordinary expenses related to 
 20.23  homicide trials.  This is a one-time 
 20.24  appropriation. 
 20.25  Subd. 3.  Civil Legal Services
 20.26       7,984,000      8,984,000
 20.27  (a) This appropriation is for legal 
 20.28  services to low-income clients and for 
 20.29  family farm legal assistance under 
 20.30  Minnesota Statutes, section 480.242.  
 20.31  Any unencumbered balance remaining in 
 20.32  the first year does not cancel but is 
 20.33  available for the second year of the 
 20.34  biennium.  A qualified legal services 
 20.35  program, as defined in Minnesota 
 20.36  Statutes, section 480.24, subdivision 
 20.37  3, may provide legal services to 
 20.38  persons eligible for family farm legal 
 20.39  assistance under Minnesota Statutes, 
 20.40  section 480.242.  
 20.41  (b) Of this appropriation, $877,000 the 
 20.42  first year and $877,000 the second year 
 20.43  are to improve the access of low-income 
 20.44  clients to legal representation in 
 20.45  family law matters.  This appropriation 
 20.46  must be distributed under Minnesota 
 20.47  Statutes, section 480.242, to the 
 20.48  qualified legal services programs 
 20.49  described in Minnesota Statutes, 
 20.50  section 480.242, subdivision 2, 
 20.51  paragraph (a).  Any unencumbered 
 20.52  balance remaining in the first year 
 20.53  does not cancel and is available for 
 20.54  the second year of the biennium. 
 20.55  Subd. 4.  State Court Administration 
 20.56      23,627,000     24,852,000
 21.1   (a) $7,500,000 the first year and 
 21.2   $7,500,000 the second year are to 
 21.3   continue redevelopment of the court 
 21.4   information system to be used by all 
 21.5   counties to integrate court information 
 21.6   with other criminal justice information.
 21.7   This appropriation is available only 
 21.8   pursuant to a budget approved by the 
 21.9   criminal and juvenile justice 
 21.10  information policy group that is 
 21.11  consistent with technology and project 
 21.12  management analyses of the office of 
 21.13  technology. 
 21.14  Up to 20 percent of this appropriation 
 21.15  may be released on July 1, 2001.  The 
 21.16  remaining funds shall be released upon 
 21.17  approval of the criminal and juvenile 
 21.18  justice information policy group, under 
 21.19  advisement from the office of 
 21.20  technology.  The policy group shall 
 21.21  approve the release of funding for each 
 21.22  project to ensure that the project is 
 21.23  in compliance with the statewide 
 21.24  criminal justice information system 
 21.25  standards, that each project remains 
 21.26  feasible according to plans established 
 21.27  pursuant to Minnesota Statutes, 
 21.28  sections 16E.04, subdivision 3, and 
 21.29  299C.65, subdivisions 6 or 7, or that 
 21.30  an updated plan has been approved by 
 21.31  the policy group and the project is 
 21.32  progressing according to the revised 
 21.33  plan, that the project is fully 
 21.34  integrated with existing information 
 21.35  and communications networks, and that 
 21.36  it complies with technology standards 
 21.37  and protocols established by the office 
 21.38  of technology for statewide 
 21.39  connectivity and interoperability. 
 21.40  (b) The department of finance shall 
 21.41  include base adjustments for district 
 21.42  and state court administration 
 21.43  infrastructure and for state 
 21.44  compensation plan and insurance 
 21.45  implementation associated with the 
 21.46  judicial district funding transfer from 
 21.47  county to state government within the 
 21.48  fiscal year 2004 and fiscal year 2005 
 21.49  budgets for the judicial branch. 
 21.50  Subd. 5.  Law Library Operations 
 21.51       2,053,000      2,158,000
 21.52  Sec. 3.  COURT OF APPEALS              8,001,000      8,312,000
 21.53  Sec. 4.  DISTRICT COURTS             123,919,000    133,791,000
 21.54  (a) $2,586,000 the first year and 
 21.55  $2,519,000 the second year are for the 
 21.56  nine judge units authorized by article 
 21.57  3, section 1, and other judicial 
 21.58  services.  Each judge unit consists of 
 21.59  a judge, law clerk, and court 
 21.60  reporter.  The appropriation is 
 21.61  available until expended. 
 21.62  (b) $160,000 the first year is for 
 22.1   alternative dispute resolution programs 
 22.2   authorized by article 3, section 5.  Of 
 22.3   this amount, $80,000 is for the third 
 22.4   judicial district and $80,000 is for 
 22.5   the fifth judicial district. 
 22.6   Sec. 5.  BOARD ON JUDICIAL  
 22.7   STANDARDS                                249,000        254,000
 22.8   Sec. 6.  TAX COURT                       813,000        853,000
 22.9   Sec. 7.  HUMAN RIGHTS                  4,076,000      4,176,000
 22.10  Sec. 8.  UNIFORM LAWS COMMISSION          39,000         40,000
 22.11                             ARTICLE 3
 22.12                        JUDICIARY PROVISIONS
 22.13     Section 1.  Minnesota Statutes 2000, section 2.722, 
 22.14  subdivision 1, is amended to read: 
 22.15     Subdivision 1.  [DESCRIPTION.] Effective July 1, 1959, the 
 22.16  state is divided into ten judicial districts composed of the 
 22.17  following named counties, respectively, in each of which 
 22.18  districts judges shall be chosen as hereinafter specified: 
 22.19     1.  Goodhue, Dakota, Carver, Le Sueur, McLeod, Scott, and 
 22.20  Sibley; 32 34 judges; and four permanent chambers shall be 
 22.21  maintained in Red Wing, Hastings, Shakopee, and Glencoe and one 
 22.22  other shall be maintained at the place designated by the chief 
 22.23  judge of the district; 
 22.24     2.  Ramsey; 26 judges; 
 22.25     3.  Wabasha, Winona, Houston, Rice, Olmsted, Dodge, Steele, 
 22.26  Waseca, Freeborn, Mower, and Fillmore; 22 24 judges; and 
 22.27  permanent chambers shall be maintained in Faribault, Albert Lea, 
 22.28  Austin, Rochester, and Winona; 
 22.29     4.  Hennepin; 60 judges; 
 22.30     5.  Blue Earth, Watonwan, Lyon, Redwood, Brown, Nicollet, 
 22.31  Lincoln, Cottonwood, Murray, Nobles, Pipestone, Rock, Faribault, 
 22.32  Martin, and Jackson; 16 judges; and permanent chambers shall be 
 22.33  maintained in Marshall, Windom, Fairmont, New Ulm, and Mankato; 
 22.34     6.  Carlton, St. Louis, Lake, and Cook; 15 judges; 
 22.35     7.  Benton, Douglas, Mille Lacs, Morrison, Otter Tail, 
 22.36  Stearns, Todd, Clay, Becker, and Wadena; 24 25 judges; and 
 22.37  permanent chambers shall be maintained in Moorhead, Fergus 
 22.38  Falls, Little Falls, and St. Cloud; 
 23.1      8.  Chippewa, Kandiyohi, Lac qui Parle, Meeker, Renville, 
 23.2   Swift, Yellow Medicine, Big Stone, Grant, Pope, Stevens, 
 23.3   Traverse, and Wilkin; 11 judges; and permanent chambers shall be 
 23.4   maintained in Morris, Montevideo, and Willmar; 
 23.5      9.  Norman, Polk, Marshall, Kittson, Red Lake, Roseau, 
 23.6   Mahnomen, Pennington, Aitkin, Itasca, Crow Wing, Hubbard, 
 23.7   Beltrami, Lake of the Woods, Clearwater, Cass and Koochiching; 
 23.8   22 23 judges; and permanent chambers shall be maintained in 
 23.9   Crookston, Thief River Falls, Bemidji, Brainerd, Grand Rapids, 
 23.10  and International Falls; and 
 23.11     10.  Anoka, Isanti, Wright, Sherburne, Kanabec, Pine, 
 23.12  Chisago, and Washington; 39 42 judges; and permanent chambers 
 23.13  shall be maintained in Anoka, Stillwater, and other places 
 23.14  designated by the chief judge of the district. 
 23.15     Sec. 2.  Minnesota Statutes 2000, section 2.724, 
 23.16  subdivision 3, is amended to read: 
 23.17     Subd. 3.  [RETIRED JUSTICES AND JUDGES.] (a) The chief 
 23.18  justice of the supreme court may assign a retired justice of the 
 23.19  supreme court to act as a justice of the supreme court pursuant 
 23.20  to subdivision 2 or as a judge of any other court.  The chief 
 23.21  justice may assign a retired judge of any court to act as a 
 23.22  judge of any court except the supreme court.  A judge acting 
 23.23  pursuant to this paragraph shall receive pay and expenses in the 
 23.24  amount and manner provided by law for judges serving on the 
 23.25  court to which the retired judge is assigned, less the amount of 
 23.26  retirement pay which the judge is receiving The supreme court 
 23.27  shall determine the pay and expenses to be received by a judge 
 23.28  acting pursuant to this paragraph. 
 23.29     (b) A judge who has been elected to office and who has 
 23.30  retired as a judge in good standing and is not practicing law 
 23.31  may also be appointed to serve as judge of any court except the 
 23.32  supreme court.  A retired judge acting under this paragraph will 
 23.33  receive pay and expenses in the amount established by the 
 23.34  supreme court. 
 23.35     Sec. 3.  [15A.0821] [JUDGES' SALARIES.] 
 23.36     Subdivision 1. [ANNUAL INCREASE.] Effective January 1 of 
 24.1   each year, the salaries of judges of the supreme court, court of 
 24.2   appeals, and district court are increased by the average of the 
 24.3   general salary adjustment for state employees in the fiscal year 
 24.4   ending the prior June 30 in collective bargaining agreements or 
 24.5   arbitration awards ratified by the legislature. 
 24.6      Subd. 2. [CALCULATION.] The commissioner of employee 
 24.7   relations shall calculate the average of the general salary 
 24.8   adjustments provided by collective bargaining agreements or 
 24.9   arbitration awards that have been ratified by the legislature.  
 24.10  Collective bargaining agreements or arbitration awards that do 
 24.11  not include general salary adjustments may not be included in 
 24.12  these calculations.  The commissioner shall weight the general 
 24.13  salary adjustments by the number of full-time equivalent 
 24.14  employees covered by each agreement or award.  The results of 
 24.15  the commissioner's calculations must be expressed as a 
 24.16  percentage, rounded to the nearest one-tenth of one percent.  
 24.17  The commissioner shall calculate the new salaries for judges and 
 24.18  report them to the chief justice of the supreme court by 
 24.19  December 1 each year. The salary adjustments provided in this 
 24.20  section do not limit the ability of the legislature to provide 
 24.21  other adjustments in other law. 
 24.22     <b>[EFFECTIVE DATE.]</b> This section is effective for increases 
 24.23  to take effect January 1, 2004, based on calculations by the 
 24.24  commissioner of employee relations reported by December 1, 2003. 
 24.25     Sec. 4.  Minnesota Statutes 2000, section 480.182, is 
 24.26  amended to read: 
 24.27     480.182 [STATE ASSUMPTION OF CERTAIN COURT COSTS.] 
 24.28     (a) Notwithstanding any law to the contrary, the state 
 24.29  courts will pay for the following court-related programs and 
 24.30  costs: 
 24.31     (1) court interpreter program and personnel costs; 
 24.32     (2) guardian ad litem program and personnel costs; 
 24.33     (3) examination costs, not including hospitalization or 
 24.34  treatment costs, for mental commitments and related proceedings 
 24.35  under chapter 253B; 
 24.36     (4) examination costs under rule 20 of the Rules of 
 25.1   Criminal Procedure; 
 25.2      (5) in forma pauperis costs; 
 25.3      (6) costs for transcripts mandated by statute, except in 
 25.4   appeal cases and postconviction cases handled by the board of 
 25.5   public defense; and 
 25.6      (7) jury program costs, not including personnel. 
 25.7      (b) In counties in a judicial district under section 
 25.8   480.181, subdivision 1, paragraph (b), the state courts shall 
 25.9   pay the witness fees and mileage fees specified in sections 
 25.10  253B.23, subdivision 1; 260B.152, subdivision 2; 260C.152, 
 25.11  subdivision 2; 260B.331, subdivision 3, clause (a); 260C.331, 
 25.12  subdivision 3, clause (a); 357.24; 357.32; 525.012, subdivision 
 25.13  5; and 627.02. 
 25.14     Sec. 5.  [DEVELOPMENT OF AND GRANTS FOR ALTERNATIVE DISPUTE 
 25.15  RESOLUTION PROGRAMS.] 
 25.16     Subdivision 1.  [DEVELOPMENT; OPERATION; PURPOSE.] The 
 25.17  third and fifth judicial districts must develop, or continue the 
 25.18  operation of, alternative dispute resolution programs to provide 
 25.19  services in conciliation court cases and unlawful detainer 
 25.20  proceedings.  The purposes of the programs are to provide 
 25.21  increased efficiency of court proceedings, reduce court costs, 
 25.22  allow judges to provide added attention to cases on the regular 
 25.23  docket, improve the quality of justice, and improve collection 
 25.24  of judgments.  Volunteer community mediators must be trained to 
 25.25  conduct the mediations. 
 25.26     Subd. 2.  [CONTRACTS; GRANTS.] The third and fifth judicial 
 25.27  districts may contract with or provide grants to a person or 
 25.28  organization to develop and operate alternative dispute 
 25.29  resolution programs under this section.  Grants or contract 
 25.30  awards can be in amounts up to $40,000.  A person or 
 25.31  organization that develops or operates a program under this 
 25.32  section must provide matching funds from nonstate sources equal 
 25.33  to at least 50 percent of the grant or contract award. 
 25.34     Subd. 3.  [ELIGIBILITY.] An alternative dispute resolution 
 25.35  program developed or operated under this section must meet the 
 25.36  requirements for dispute resolution programs under Minnesota 
 26.1   Statutes, chapter 494. 
 26.2      Subd. 4.  [REPORTING.] By January 1, 2003, the district 
 26.3   court administrators from the third and fifth judicial districts 
 26.4   must jointly report to the legislature on the results of the 
 26.5   alternative dispute resolution programs developed or operated 
 26.6   under this section. 
 26.7      Sec. 6.  [EFFECTIVE DATE.] 
 26.8      One of the additional judgeships in the first district, two 
 26.9   of the additional judgeships in the third district, one of the 
 26.10  additional judgeships in the seventh district, one of the 
 26.11  additional judgeships in the ninth district, and two of the 
 26.12  additional judgeships in the tenth district are effective July 
 26.13  1, 2001.  One of the additional judgeships in the first district 
 26.14  and one of the additional judgeships in the tenth district are 
 26.15  effective July 1, 2002. 
 26.16                             ARTICLE 4 
 26.17            ECONOMIC DEVELOPMENT AND JOBS APPROPRIATIONS 
 26.18  Section 1.  [ECONOMIC DEVELOPMENT; APPROPRIATIONS.] 
 26.19     The sums shown in the columns marked "APPROPRIATIONS" are 
 26.20  appropriated from the general fund, or another named fund, to 
 26.21  the agencies and for the purposes specified in this act, to be 
 26.22  available for the fiscal years indicated for each purpose.  The 
 26.23  figures "2002" and "2003," where used in this act, mean that the 
 26.24  appropriation or appropriations listed under them are available 
 26.25  for the year ending June 30, 2002, or June 30, 2003, 
 26.26  respectively.  The term "first year" means the fiscal year 
 26.27  ending June 30, 2002, and "second year" means the fiscal year 
 26.28  ending June 30, 2003. 
 26.29                          SUMMARY BY FUND
 26.30              2001          2002          2003           TOTAL
 26.31  General   $..,000    $102,595,000    $79,919,000   $...,...,000
 26.32  Remediation Fund          700,000        700,000      .,...,000
 26.33  TANF                      750,000        750,000     ..,...,000
 26.34  Workforce
 26.35  Development Fund       13,674,000      4,770,000     ..,...,000 
 26.36  TOTAL     $..,000    $119,944,000    $86,689,000   $...,...,000
 27.1                                              APPROPRIATIONS 
 27.2                                          Available for the Year 
 27.3                                              Ending June 30 
 27.4                                             2002         2003 
 27.5   Sec. 2.  TRADE AND ECONOMIC DEVELOPMENT 
 27.6   Subdivision 1.  Total       
 27.7   Appropriation                          75,141,000    42,412,000
 27.8                 Summary by Fund
 27.9   General              51,243,000    35,438,000
 27.10  TANF                    750,000       750,000
 27.11  Remediation Fund        700,000       700,000 
 27.12  Workforce 
 27.13  Development Fund      6,972,000       300,000 
 27.14  The amounts that may be spent from this 
 27.15  appropriation for each program are 
 27.16  specified in the following subdivisions.
 27.17  Subd. 2.  Business and Community 
 27.18  Development                            39,184,000    11,012,000
 27.19                Summary by Fund
 27.20  General             30,987,000     10,362,000
 27.21  Remediation Fund       700,000        700,000
 27.22  Workforce 
 27.23  Development Fund     4,572,000        -0-    
 27.24  $14,700,000 is for a grant to the board 
 27.25  of regents of the University of 
 27.26  Minnesota for the university's 
 27.27  contribution to the North Star Research 
 27.28  Coalition.  Of this amount, $4,700,000 
 27.29  is for the coalition to invest in the 
 27.30  biomedical innovation and 
 27.31  commercialization initiative.  Of the 
 27.32  remainder, 80 percent is for a 
 27.33  permanent endowment to be maintained by 
 27.34  the coalition and 20 percent is for 
 27.35  grants in the biennium.  The 
 27.36  commissioner of finance may not release 
 27.37  this appropriation until the board of 
 27.38  regents certifies that a tax-exempt 
 27.39  corporation in a form complying with 
 27.40  Minnesota Statutes, section 137.45, has 
 27.41  been established.  The commissioner 
 27.42  shall release the money appropriated, 
 27.43  as a one-for-one match for money 
 27.44  contributed directly to the coalition 
 27.45  from nonstate sources, or as a 
 27.46  one-for-one match with respect to 
 27.47  individual research projects funded by 
 27.48  the coalition for which a match from 
 27.49  nonstate sources is required by the 
 27.50  coalition or is available.  The 
 27.51  appropriation shall be released on a 
 27.52  quarterly basis until the appropriation 
 27.53  is expended.  Notwithstanding any law 
 27.54  to the contrary, this appropriation 
 27.55  shall not cancel, but is available 
 27.56  until expended. 
 28.1   $500,000 the first year from the 
 28.2   workforce development fund is for 
 28.3   grants to the metropolitan economic 
 28.4   development association.  This is a 
 28.5   one-time appropriation and is not added 
 28.6   to the agency's budget base. 
 28.7   $1,500,000 the first year is for 
 28.8   purposes of the redevelopment grant 
 28.9   program under Minnesota Statutes, 
 28.10  sections 116J.561 to 116J.567.  Funds 
 28.11  not expended in the first year are 
 28.12  available in the second year.  This is 
 28.13  a one-time appropriation. 
 28.14  $300,000 is for a grant to Gopher State 
 28.15  Ethanol for the express and sole 
 28.16  purpose of purchase and installation of 
 28.17  a thermal oxidizer.  The grant 
 28.18  agreement must contain the following 
 28.19  provisions: 
 28.20  (1) the agreement must contain terms 
 28.21  sufficient to ensure successful 
 28.22  operation of the thermal oxidizer for 
 28.23  maximum removal of odor causing 
 28.24  compounds and compounds identified by 
 28.25  the Minnesota department of health as 
 28.26  posing a risk to human life and health, 
 28.27  including fugitive odor; and 
 28.28  (2) the grant becomes due and repayable 
 28.29  should maximum odor removal not take 
 28.30  place within a reasonable time 
 28.31  following its installation. 
 28.32  $1,000,000 the first year is for 
 28.33  payment to the metropolitan council.  
 28.34  The commissioner must transfer the 
 28.35  amount to the metropolitan council upon 
 28.36  receipt of a certified copy of a 
 28.37  council resolution requesting payment.  
 28.38  The appropriation must be used by the 
 28.39  council for grants to metropolitan 
 28.40  local governmental units, as defined in 
 28.41  Minnesota Statutes, section 473.121, 
 28.42  subdivision 6.  A local governmental 
 28.43  unit that receives a grant is 
 28.44  authorized to enter into any agreements 
 28.45  or contracts necessary for the purposes 
 28.46  of this section.  This is a one-time 
 28.47  appropriation.  Funds not expended the 
 28.48  first year are available the second. 
 28.49  $150,000 the first year from the 
 28.50  workforce development fund is for the 
 28.51  purpose of capacity building grants to 
 28.52  community foundations. 
 28.53  $1,000,000 the first year is for a 
 28.54  grant to Camp Knutson for capital 
 28.55  improvements.  This is a one-time 
 28.56  expenditure, and funds not spent the 
 28.57  first year are available the second. 
 28.58  $300,000 the first year from the 
 28.59  workforce development fund is for 
 28.60  northeast entrepreneur fund initiative 
 28.61  grants.  This is a one-time 
 28.62  expenditure, and funds not spent the 
 28.63  first year are available the second. 
 29.1   $500,000 the first year from the 
 29.2   workforce development fund is for 
 29.3   microenterprise technical assistance 
 29.4   grants to small businesses. 
 29.5   $900,000 the first year is for a grant 
 29.6   to the city of Duluth to support the 
 29.7   development of the Duluth Technology 
 29.8   Village.  The grant is a one-time 
 29.9   expenditure, and funds not spent the 
 29.10  first year are available the second. 
 29.11  $500,000 the first year from the 
 29.12  workforce development fund is for a 
 29.13  grant to the rural policy and 
 29.14  development center at Minnesota State 
 29.15  University, Mankato.  The funds not 
 29.16  spent the first year are available the 
 29.17  second. 
 29.18  $1,000,000 is for a grant to the cities 
 29.19  of Ada, Breckenridge, East Grand Forks, 
 29.20  and Warren.  Of that amount, $478,000 
 29.21  is to reimburse Ada for bond interest 
 29.22  expenses in connection with temporary 
 29.23  financing in anticipation of financing 
 29.24  by the Federal Emergency Management 
 29.25  Agency (FEMA) for 1997 flood recovery 
 29.26  work in that city.  $119,000 is to 
 29.27  reimburse Breckenridge, $321,000 is to 
 29.28  reimburse East Grand Forks, and $82,000 
 29.29  is to reimburse Warren for lost 
 29.30  interest in connection with 
 29.31  expenditures in anticipation of 
 29.32  financing by FEMA for 1997 flood 
 29.33  recovery work in those cities. 
 29.34  $1,775,000 is for purposes of tornado 
 29.35  relief to the Granite Falls area.  This 
 29.36  appropriation shall be spent as follows:
 29.37  (1) $1,400,000 to the Minnesota 
 29.38  investment fund for grants to local 
 29.39  units of government for locally 
 29.40  administered operating loan programs 
 29.41  for businesses directly and adversely 
 29.42  affected by the July 25, 2000, 
 29.43  tornadoes.  Loan criteria and 
 29.44  requirements must be locally 
 29.45  established with approval by the 
 29.46  department.  For the purposes of this 
 29.47  appropriation, Minnesota Statutes, 
 29.48  section 116J.8731, subdivisions 3, 4, 
 29.49  5, and 7, is waived.  Businesses that 
 29.50  receive grants or loans from this 
 29.51  appropriation shall set goals for jobs 
 29.52  retained and wages paid within the 
 29.53  areas designated in amendment number 5 
 29.54  and amendment number 6 to the 
 29.55  Presidential Declaration of Major 
 29.56  Disaster, DR1333; and 
 29.57  (2) $375,000 is for a grant to project 
 29.58  turnabout, a residential compulsive 
 29.59  gambling treatment facility. 
 29.60  $1,400,000 the first year is for a 
 29.61  grant to the city of St. Paul for the 
 29.62  planning, predesign, and design of the 
 29.63  new Roy Wilkins auditorium and exhibit 
 29.64  hall. 
 30.1   $250,000 from the workforce development 
 30.2   fund is for a grant to the Albert Lea 
 30.3   port authority to remodel a building in 
 30.4   the Northaire Industrial Park for use 
 30.5   as a business development center.  This 
 30.6   appropriation is available until 
 30.7   expended. 
 30.8   $200,000 is for a grant to Koochiching 
 30.9   county to construct a North American 
 30.10  bear center called the Big Bear Country 
 30.11  Education Center. 
 30.12  $375,000 the first year from the 
 30.13  workforce development fund is for 
 30.14  grants of $125,000 each to the counties 
 30.15  of Blue Earth, Martin, and St. Louis 
 30.16  for a pilot project incubated by the 
 30.17  county with the rural advanced business 
 30.18  facilitation program.  A grant must be 
 30.19  matched with nonstate money for up to 
 30.20  the first $50,000 of a grant.  The 
 30.21  funds not spent the first year are 
 30.22  available the second. 
 30.23  $25,000 in fiscal year 2002 is to the 
 30.24  commissioner of natural resources for 
 30.25  purchase and installation of a Civilian 
 30.26  Conservation Corps worker statue.  This 
 30.27  appropriation is available until June 
 30.28  30, 2003.  In planning for purchase, 
 30.29  siting, and installation of the statue, 
 30.30  the commissioner shall consult with the 
 30.31  North Star chapter of the National 
 30.32  Association of Civilian Conservation 
 30.33  Corps Alumni and with the Capitol Area 
 30.34  Architectural and Planning Board.  The 
 30.35  statue may be located on publicly owned 
 30.36  land. 
 30.37  $50,000 in fiscal year 2002 and $50,000 
 30.38  in fiscal year 2003 are for grants from 
 30.39  the Minnesota investment fund by the 
 30.40  commissioner to the West Central Growth 
 30.41  Alliance to establish a regional 
 30.42  marketing plan, economic development 
 30.43  pilot project in Big Stone, Chippewa, 
 30.44  Kandiyohi, Lac Qui Parle, Meeker, 
 30.45  Renville, Stevens, Swift, and Yellow 
 30.46  Medicine counties.  The annual grant 
 30.47  must be matched each year by $60,000 in 
 30.48  nonstate money. This is a one-time 
 30.49  appropriation. 
 30.50  $97,000 the first year from the 
 30.51  workforce development fund is for a 
 30.52  grant to Neighborhood Development 
 30.53  Center, Inc.  The funds not spent the 
 30.54  first year are available the second. 
 30.55  $1,000,000 the first year from the 
 30.56  workforce development fund is for 
 30.57  catalyst grants to local governments 
 30.58  and recognized Indian tribal 
 30.59  governments to expand Internet access 
 30.60  in areas of rural Minnesota that are 
 30.61  otherwise unlikely to receive access 
 30.62  through existing technology.  The funds 
 30.63  not spent the first year are available 
 30.64  the second. 
 31.1   Subd. 3.  Workforce Development 
 31.2   Fund                                   11,376,000     9,276,000
 31.3                 Summary by Fund
 31.4   General               8,226,000     8,226,000
 31.5   Workforce
 31.6   Development Fund      2,400,000       300,000
 31.7   TANF                    750,000       750,000
 31.8   $8,076,000 the first year and 
 31.9   $8,076,000 the second year are for the 
 31.10  job skills partnership program.  If the 
 31.11  appropriation for either year is 
 31.12  insufficient, the appropriation for the 
 31.13  other year is available.  It is the 
 31.14  intention of the legislature that this 
 31.15  program base funding be $8,076,000 per 
 31.16  year in the 2002-2003 biennium.  This 
 31.17  appropriation does not cancel. 
 31.18  $500,000 the first year from the 
 31.19  workforce development fund is for a 
 31.20  grant to WomenVenture.  Funds not 
 31.21  expended in the first year are 
 31.22  available in the second year.  This is 
 31.23  a one-time appropriation.  WomenVenture 
 31.24  must implement a program to encourage 
 31.25  and assist women to enter 
 31.26  nontraditional careers in the trades 
 31.27  and technical occupations.  The program 
 31.28  shall consist of outreach to women and 
 31.29  girls and training, job placement, and 
 31.30  job retention support that meet women's 
 31.31  specific needs.  The program must be 
 31.32  accessible to low-income working 
 31.33  mothers, including MFIP recipients. 
 31.34  $600,000 from the workforce development 
 31.35  fund is to the port authority of the 
 31.36  city of St. Paul for the customized job 
 31.37  training program of the port 
 31.38  authority.  The port authority shall 
 31.39  coordinate with Ramsey county workforce 
 31.40  solutions to more effectively link St. 
 31.41  Paul employers and job seekers.  This 
 31.42  appropriation is available until spent. 
 31.43  $750,000 the first year and $750,000 
 31.44  the second are from the TANF fund to 
 31.45  the commissioner for the health care 
 31.46  and human services training program. 
 31.47  $1,000,000 the first year is from the 
 31.48  workforce development fund for a grant 
 31.49  to Lifetrack Resources for its 
 31.50  immigrant/refugee collaborative 
 31.51  programs, including those related to 
 31.52  job-seeking skills and workplace 
 31.53  orientation, intensive job development, 
 31.54  functional work English, and on-site 
 31.55  job coaching, to provide assistance to 
 31.56  Somali immigrants. 
 31.57  $150,000 the first year and $150,000 
 31.58  the second year are for a grant to Twin 
 31.59  Cities Rise, to provide job training to 
 31.60  hard-to-train individuals. 
 32.1   $300,000 the first year and $300,000 
 32.2   the second year are for a grant to Twin 
 32.3   Cities Rise, to provide job training to 
 32.4   hard-to-train individuals. 
 32.5   Subd. 4.  Minnesota Trade Office 
 32.6        2,350,000      2,389,000
 32.7   Subd. 5.  Tourism 
 32.8       10,794,000     10,486,000
 32.9   $375,000 the first year and $375,000 
 32.10  the second year are for operation of 
 32.11  the travel information centers.  Of 
 32.12  this amount, $150,000 the first year is 
 32.13  a one-time appropriation for the 
 32.14  planning, design, site selection, and 
 32.15  construction of a travel information 
 32.16  center to be located within Region 6W. 
 32.17  Priority shall be given to the center 
 32.18  located in Worthington and the Upper 
 32.19  Minnesota Valley Information Center. 
 32.20  $400,000 the first year is for grants 
 32.21  to plan and promote the 2004 Grand 
 32.22  Excursion.  Grants may be made to state 
 32.23  agencies and local units of government 
 32.24  and state or local nonprofit entities.  
 32.25  A local match may be required.  This 
 32.26  appropriation is available until 
 32.27  expended. 
 32.28  $829,000 the first year and $829,000 
 32.29  the second year are for the Minnesota 
 32.30  film board.  $329,000 of this 
 32.31  appropriation in each year is available 
 32.32  only upon receipt by the board of $1 in 
 32.33  matching contributions of money or 
 32.34  in-kind from nonstate sources for every 
 32.35  $3 provided by this appropriation.  Of 
 32.36  this amount, $500,000 the first year 
 32.37  and $500,000 the second year are for 
 32.38  grants to the Minnesota film board for 
 32.39  a film production jobs fund, snowbate, 
 32.40  to stimulate feature film production in 
 32.41  Minnesota.  This appropriation is to 
 32.42  reimburse film and television producers 
 32.43  for up to ten percent of the documented 
 32.44  wages and cost of services that they 
 32.45  paid to Minnesotans for film and 
 32.46  television production after January 1, 
 32.47  2001. 
 32.48  To develop maximum private sector 
 32.49  involvement in tourism, $3,500,000 the 
 32.50  first year and $3,500,000 the second 
 32.51  year of the amounts appropriated for 
 32.52  marketing activities are contingent on 
 32.53  receipt of an equal contribution from 
 32.54  nonstate sources that have been 
 32.55  certified by the commissioner.  Up to 
 32.56  one-half of the match may be given in 
 32.57  in-kind contributions. 
 32.58  In order to maximize marketing grant 
 32.59  benefits, the commissioner must give 
 32.60  priority for joint venture marketing 
 32.61  grants to organizations with year-round 
 32.62  sustained tourism activities.  For 
 33.1   programs and projects submitted, the 
 33.2   commissioner must give priority to 
 33.3   those that encompass two or more areas 
 33.4   or that attract nonresident travelers 
 33.5   to the state. 
 33.6   If an appropriation for either year for 
 33.7   grants is not sufficient, the 
 33.8   appropriation for the other year is 
 33.9   available for it. 
 33.10  The commissioner may use grant dollars 
 33.11  or the value of in-kind services to 
 33.12  provide the state contribution for the 
 33.13  partnership program. 
 33.14  Any unexpended money from general fund 
 33.15  appropriations made under this 
 33.16  subdivision does not cancel but must be 
 33.17  placed in a special advertising account 
 33.18  for use by the office of tourism to 
 33.19  purchase additional media. 
 33.20  Subd. 6.  Administration 
 33.21       3,255,000      2,307,000
 33.22  The base amount of funding used for 
 33.23  consulting contracts by the department 
 33.24  of trade and economic development is 
 33.25  reduced by $216,000, which must come 
 33.26  from departmental consulting funds. 
 33.27  Subd. 7.  Information and Analysis
 33.28       1,631,000      1,668,000
 33.29  Sec. 3.  MINNESOTA TECHNOLOGY, INC.    8,075,000      7,075,000
 33.30  $6,105,000 the first year and 
 33.31  $6,105,000 the second year are for 
 33.32  transfer from the general fund to the 
 33.33  Minnesota Technology, Inc. fund. 
 33.34  $95,000 the first year and $95,000 the 
 33.35  second year are for grants to Minnesota 
 33.36  Inventors Congress.  This is a one-time 
 33.37  appropriation and is not added to the 
 33.38  agency's budget base. 
 33.39  $875,000 the first year and $875,000 
 33.40  the second year are for grants to 
 33.41  Minnesota Project Innovation.  This is 
 33.42  a one-time appropriation and is not 
 33.43  added to the agency's budget base. 
 33.44  $1,000,000 the first year is to 
 33.45  Minnesota Technology, Inc. for a grant 
 33.46  to Minnesota Investment Network 
 33.47  Corporation for the purposes of its 
 33.48  seed capital funds.  The appropriation 
 33.49  does not cancel. 
 33.50  Sec. 4.  ECONOMIC SECURITY  
 33.51  Subdivision 1.  Total 
 33.52  Appropriation                         43,979,000     41,876,000
 33.53                Summary by Fund
 33.54  General              37,277,000    37,406,000
 34.1   Workforce
 34.2   Development Fund      6,702,000     4,470,000
 34.3   Subd. 2.  Rehabilitation Services     24,478,000     23,686,000
 34.4                 Summary by Fund
 34.5   General              22,026,000    22,041,000
 34.6   Workforce
 34.7   Development Fund      2,452,000     1,645,000
 34.8   $800,000 the first year and $1,145,000 
 34.9   the second year from the workforce 
 34.10  development fund are for grants for 
 34.11  programs that provide employment 
 34.12  support services to persons with mental 
 34.13  illness under Minnesota Statutes, 
 34.14  sections 268A.13 and 268A.14. 
 34.15  $252,000 from the workforce development 
 34.16  fund is for a grant to Advocating 
 34.17  Change Together, Inc. 
 34.18  $1,900,000 the first year and 
 34.19  $1,900,000 the second year are for the 
 34.20  centers for independent living.  
 34.21  $600,000 the first year from the 
 34.22  workforce development fund is for 
 34.23  grants to the Minnesota employment 
 34.24  center for people who are deaf or 
 34.25  hard-of-hearing.  This appropriation is 
 34.26  in addition to the amount appropriated 
 34.27  as the base level funding for the 
 34.28  2002-2003 biennium for the Minnesota 
 34.29  employment center for people who are 
 34.30  deaf or hard-of-hearing.  Funds not 
 34.31  expended in the first year are 
 34.32  available in the second. 
 34.33  $300,000 from the workforce development 
 34.34  fund is for the purpose of the 
 34.35  vocational rehabilitation brain injury 
 34.36  pilot program to be available until 
 34.37  June 30, 2003. 
 34.38  $500,000 the first year and $500,000 
 34.39  the second year from the workforce 
 34.40  development fund are to increase the 
 34.41  reimbursement rates for extended 
 34.42  employment services. 
 34.43  $500,000 the first year and $500,000 
 34.44  the second year are for the voluntary 
 34.45  paid parental leave pilot project. 
 34.46  $2,000,000 in each year of the biennium 
 34.47  is canceled and returned to the general 
 34.48  fund for the 2002-2003 biennium from 
 34.49  the economic security contingent 
 34.50  account created under Minnesota 
 34.51  Statutes, section 268.196, subdivision 
 34.52  3. 
 34.53  Subd. 3.  State Services for the Blind 
 34.54       4,918,000      5,023,000
 34.55  Subd. 4.  Workforce Services 
 35.1       14,683,000     13,267,000
 35.2                 Summary by Fund
 35.3   General              10,333,000    10,342,000
 35.4   Workforce
 35.5   Development Fund      4,250,000     2,825,000
 35.6   $1,950,000 the first year and 
 35.7   $1,950,000 the second year from the 
 35.8   workforce development fund are for 
 35.9   displaced homemaker programs under 
 35.10  Minnesota Statutes, section 268.96. 
 35.11  $650,000 each year is added to the base 
 35.12  for youth intervention grants.  Of this 
 35.13  appropriation, $15,000 is for a grant 
 35.14  to the Minnesota Youth Intervention 
 35.15  Programs Association (YIPA) to provide 
 35.16  collaborative training and technical 
 35.17  assistance to community-based grantees 
 35.18  of the program. 
 35.19  $375,000 the first year and $375,000 
 35.20  the second year from the workforce 
 35.21  development fund are for grants to 
 35.22  Youthbuild programs under Minnesota 
 35.23  Statutes, sections 268.361 to 
 35.24  268.3661.  This appropriation is added 
 35.25  to the agency's budget base. 
 35.26  $111,000 the first year and $111,000 
 35.27  the second year of the amounts 
 35.28  appropriated for the Youthbuild grant 
 35.29  shall be used for youth violence 
 35.30  prevention programs to match the 
 35.31  federal juvenile accountability 
 35.32  incentive block grant.  Should a match 
 35.33  of federal funds become unnecessary, 
 35.34  the amounts herein shall revert to the 
 35.35  Youthbuild grant. 
 35.36  $175,000 from the workforce development 
 35.37  fund is for purposes of workplace HIV 
 35.38  education. 
 35.39  $500,000 from the workforce development 
 35.40  fund is for grants to nonprofit 
 35.41  organizations for programs that 
 35.42  encourage and assist women to enter 
 35.43  nontraditional careers in the trades 
 35.44  and in manual and technical 
 35.45  occupations.  The appropriation is 
 35.46  available until June 30, 2003. 
 35.47  $100,000 the first year and $100,000 
 35.48  the second year from the workforce 
 35.49  development fund are for the 
 35.50  opportunities industrialization center 
 35.51  programs. 
 35.52  $50,000 the first year and $50,000 the 
 35.53  second year are for asset preservation 
 35.54  and facility repair. 
 35.55                             ARTICLE 5 
 35.56                    2001 HOUSING APPROPRIATIONS 
 35.57  Section 1.  [HOUSING APPROPRIATIONS.] 
 36.1      The sums shown in the columns marked "APPROPRIATIONS" are 
 36.2   appropriated from the general fund, or another fund named, to 
 36.3   the agencies and for the purposes specified in this article, to 
 36.4   be available for the fiscal years indicated for each purpose.  
 36.5   The figure "2001," means that the appropriation or 
 36.6   appropriations listed under them are available for the year 
 36.7   ending June 30, 2001.  Appropriations in this article do not 
 36.8   cancel and carry forward to the succeeding biennium and as 
 36.9   otherwise provided by law.  All appropriations in this article 
 36.10  are one-time appropriations and are not part of the agency's 
 36.11  permanent budget base. 
 36.12                          SUMMARY BY FUND 
 36.13                                                       BIENNIAL
 36.14                                         2001           TOTAL
 36.15  General                             $ 75,000,000   $ 75,000,000
 36.16  Sec. 2.  HOUSING FINANCE AGENCY       71,700,000
 36.17                Summary by Fund
 36.18  General                               71,700,000
 36.19  Subdivision 1.  Total Appropriation 
 36.20  The amounts that may be spent from this 
 36.21  appropriation for certain programs are 
 36.22  specified in the following subdivisions.
 36.23  This appropriation is for transfer to 
 36.24  the housing development fund for the 
 36.25  programs specified.  
 36.26  Subd. 2.  Challenge Program 
 36.27  $20,639,000 is for the economic 
 36.28  development and housing challenge 
 36.29  program created by Minnesota Statutes, 
 36.30  section 462A.33.  
 36.31  Subd. 3.  Family Homeless Prevention 
 36.32  $2,412,000 is for the family homeless 
 36.33  prevention and assistance program under 
 36.34  Minnesota Statutes, section 462A.204.  
 36.35  Of this amount, $660,000 is for grants 
 36.36  to organizations providing case 
 36.37  management for persons that need 
 36.38  assistance to rehabilitate their rent 
 36.39  history and find rental housing.  Case 
 36.40  management services include, but are 
 36.41  not limited to, assisting tenants in 
 36.42  correcting tenant screening reports, 
 36.43  providing intensive training and 
 36.44  certification for tenants, creating a 
 36.45  bonding program to encourage landlords 
 36.46  to accept high-risk tenants with poor 
 37.1   rent histories, paying security 
 37.2   deposits for high-risk tenants, and 
 37.3   agreeing to pay landlord expenses for 
 37.4   filing unlawful detainer actions.  
 37.5   Of this amount, $234,000 is for a 
 37.6   rental housing pilot project, to 
 37.7   encourage landlords to rent to 
 37.8   high-risk tenants with poor rental 
 37.9   histories, in the counties of Benton, 
 37.10  Clay, Dakota, Hennepin, Olmsted, 
 37.11  Ramsey, St. Louis, Sherburne, and 
 37.12  Stearns.  For purposes of this 
 37.13  subdivision, a "high-risk tenant" is a 
 37.14  person who has had an application for 
 37.15  rental housing denied for reasons other 
 37.16  than criminal conduct or previous 
 37.17  destruction of rental housing.  
 37.18  The project shall allow local agencies 
 37.19  to provide payment bonds to landlords 
 37.20  willing to accept high-risk tenants to 
 37.21  reimburse them for losses caused by a 
 37.22  high-risk tenant.  In selecting 
 37.23  recipients for funding under the rental 
 37.24  housing pilot project, priority must be 
 37.25  given to proposals that include 
 37.26  accountability provisions for 
 37.27  participating landlords and training 
 37.28  for participating tenants.  Local 
 37.29  government units, nonprofit agencies, 
 37.30  or partnerships between local 
 37.31  government units and nonprofit agencies 
 37.32  are eligible for funding under the 
 37.33  rental housing pilot project.  
 37.34  Notwithstanding Minnesota Statutes, 
 37.35  section 462A.204, subdivisions 2 and 3, 
 37.36  nonprofit agencies may apply and 
 37.37  receive a grant without obtaining a 
 37.38  resolution of the county board and 
 37.39  grants may be made to nonprofit 
 37.40  agencies in the metropolitan area for 
 37.41  the rental housing pilot project.  
 37.42  Local government units must provide 
 37.43  matching funds, which may include 
 37.44  administrative costs, payment bond 
 37.45  funding, or property tax credits.  
 37.46  The agency shall consult with 
 37.47  representatives of the following 
 37.48  organizations in selecting recipients 
 37.49  for funding under the rental housing 
 37.50  pilot project:  organizations who 
 37.51  advocate for tenants and provide tenant 
 37.52  training, nonprofit and for-profit 
 37.53  housing providers, supportive housing 
 37.54  service providers, and tenant screening 
 37.55  organizations.  
 37.56  The agency must report to the 
 37.57  legislature by January 15, 2003, on the 
 37.58  effectiveness of the pilot project in 
 37.59  securing rental housing for individuals 
 37.60  with poor rental histories.  The report 
 37.61  must also address the feasibility of 
 37.62  and need for expanding the project 
 37.63  statewide and recommend best practices. 
 37.64  Subd. 4.  School Stability
 38.1   $1,000,000 is for the school stability 
 38.2   project under Minnesota Statutes, 
 38.3   section 462A.208, subdivision 8.  
 38.4   Subd. 5.  Housing Trust Fund
 38.5   $23,017,000 is for the housing trust 
 38.6   fund to be deposited in the housing 
 38.7   trust fund account created under 
 38.8   Minnesota Statutes, section 462A.201, 
 38.9   and used for the purposes provided in 
 38.10  that section. 
 38.11  Subd. 6.  Affordable Rental Investment Fund
 38.12  $8,249,000 is for the affordable rental 
 38.13  investment fund program under Minnesota 
 38.14  Statutes, section 462A.21, subdivision 
 38.15  8b, to finance the acquisition, 
 38.16  rehabilitation, and debt restructuring 
 38.17  of federally assisted rental property 
 38.18  and for making equity take-out loans 
 38.19  under Minnesota Statutes, section 
 38.20  462A.05, subdivision 39.  The owner of 
 38.21  the federally assisted rental property 
 38.22  must agree to participate in the 
 38.23  applicable federally assisted housing 
 38.24  program and to extend any existing 
 38.25  low-income affordability restrictions 
 38.26  on the housing for the maximum term 
 38.27  permitted.  The owner must also enter 
 38.28  into an agreement that gives local 
 38.29  units of government, housing and 
 38.30  redevelopment authorities, and 
 38.31  nonprofit housing organizations the 
 38.32  right of first refusal if the rental 
 38.33  property is offered for sale.  Priority 
 38.34  must be given among comparable 
 38.35  properties to properties with the 
 38.36  longest remaining term under an 
 38.37  agreement for federal rental 
 38.38  assistance.  Priority must also be 
 38.39  given among comparable rental housing 
 38.40  developments to developments that are 
 38.41  or will be owned by local government 
 38.42  units, a housing and redevelopment 
 38.43  authority, or a nonprofit housing 
 38.44  organization.  
 38.45  Subd. 7.  Capacity Building Grants 
 38.46  $1,100,000 is for nonprofit capacity 
 38.47  building grants under Minnesota 
 38.48  Statutes, section 462A.21, subdivision 
 38.49  3b.  
 38.50  Of this amount, $1,000,000 is for 
 38.51  grants to agencies administering the 
 38.52  federal section 8 housing program for 
 38.53  administrative costs associated with 
 38.54  the establishment and operation of 
 38.55  section 8 home ownership programs.  
 38.56  Of this amount, $100,000 is for a grant 
 38.57  to the district 287 foundation to 
 38.58  assist in the development of supportive 
 38.59  housing to provide independent living 
 38.60  opportunities for adults with 
 38.61  disabilities.  
 38.62  Subd. 8.  Full-Cycle Home Ownership
 39.1   $1,116,000 is for the full-cycle home 
 39.2   ownership program under Minnesota 
 39.3   Statutes, section 462A.21, subdivision 
 39.4   26.  
 39.5   Of this amount, $1,000,000 is for 
 39.6   proposals that increase services to 
 39.7   non-English-speaking persons, recent 
 39.8   immigrants, and historically 
 39.9   underserved populations. 
 39.10  Subd. 9.  Innovative and Inclusionary
 39.11  Housing Program 
 39.12  $6,269,000 is for innovative and 
 39.13  inclusionary housing programs.  
 39.14  $2,269,000 of this appropriation is for 
 39.15  the nonmetropolitan innovative and 
 39.16  inclusionary housing program under 
 39.17  Minnesota Statutes, section 462A.2093.  
 39.18  $4,000,000 of this appropriation is for 
 39.19  transfer to the metropolitan council 
 39.20  for deposit in the inclusionary housing 
 39.21  account created in Minnesota Statutes, 
 39.22  section 473.251.  The metropolitan 
 39.23  council may use this transfer only for 
 39.24  projects that are consistent with 
 39.25  Minnesota Statutes, section 473.255.  
 39.26  Subd. 10.  Local Initiatives
 39.27  $7,898,000 is for grants or loans under 
 39.28  Minnesota Statutes, section 462A.34.  
 39.29  Of this amount, $1,000,000 the first 
 39.30  year is for the manufactured home park 
 39.31  redevelopment program under new 
 39.32  Minnesota Statutes section 462A.34, 
 39.33  subdivision 4.  This is a one-time 
 39.34  appropriation. 
 39.35  Sec. 3.  CHILDREN, FAMILIES,                         3,300,000
 39.36  AND LEARNING
 39.37         Summary by Fund
 39.38  General             3,300,000
 39.39  Subdivision 1.  Total Appropriation 
 39.40  The amount that may be spent from this 
 39.41  appropriation for certain programs is 
 39.42  specified in the following subdivisions.
 39.43  Subd. 2.  Emergency Services                          1,320,000
 39.44  Up to five percent of this 
 39.45  appropriation may be used for 
 39.46  administrative costs. 
 39.47  Subd. 3.  Transitional Housing                        1,980,000
 39.48  Operation 
 39.49  Up to five percent of this 
 39.50  appropriation may be used for 
 39.51  administrative costs. 
 39.52     Sec. 4.  [462A.34] [LOCAL GRANT AND LOAN PROGRAMS.] 
 39.53     Subdivision 1.  [BLOCK GRANTS.] The commissioner may make 
 39.54  block grants to local governments or nonprofit organizations in 
 40.1   partnership with local governments for housing production and 
 40.2   preservation programs for persons with incomes at or below 80 
 40.3   percent of statewide median income.  The commissioner may use 
 40.4   existing processes for making grants or may establish a request 
 40.5   for proposal process specifically for this block grant program.  
 40.6   Grants shall be made to satisfy specific housing needs, however, 
 40.7   grants do not need to be tied to any particular project, but 
 40.8   rather, should be available to flexibly meet the identified need.
 40.9      Subd. 2.  [VETERANS.] The commissioner may make loans and 
 40.10  grants to local units of government to assist in the design, 
 40.11  development, construction, acquisition, or rehabilitation of 
 40.12  supportive and permanent housing to serve veterans and single 
 40.13  adults who are homeless or at risk of becoming homeless.  The 
 40.14  loans or grants must be used for the planning and predesign of 
 40.15  at least two housing projects that: 
 40.16     (1) are located on property owned by the United States 
 40.17  Department of Veterans Affairs; 
 40.18     (2) provide or coordinate health and social services needed 
 40.19  by the residents; and 
 40.20     (3) are a collaborative partnership between community 
 40.21  agencies and local units of government or the federal government.
 40.22     Subd. 3.  [LEAD ABATEMENT.] The Minnesota housing finance 
 40.23  agency may make grants to cities, local units of government, and 
 40.24  nonprofit organizations for the purpose of implementing federal 
 40.25  regulations for lead hazard reduction.  These grants are for the 
 40.26  purpose of lead hazard reduction for training, rehabilitation, 
 40.27  and other direct costs, including labor, materials, equipment, 
 40.28  and testing associated with compliance with federal lead hazard 
 40.29  control regulations. 
 40.30     Subd. 4.  [MANUFACTURED HOME PARK REDEVELOPMENT 
 40.31  PROGRAM.] (a) The agency shall establish a manufactured home 
 40.32  park redevelopment program for the purpose of making 
 40.33  manufactured home park redevelopment grants or loans to cities, 
 40.34  counties, or community action programs.  Cities, counties, and 
 40.35  community action programs may use grants and loans under this 
 40.36  program to: 
 41.1      (1) assist with the purchase of existing manufactured homes 
 41.2   in manufactured home parks with preference given to older 
 41.3   manufactured homes and buy-out assistance to be determined by 
 41.4   the tax-assessed value of the home; 
 41.5      (2) provide down payment assistance not to exceed $10,000 
 41.6   per house to affected homeowners for replacement dwellings or 
 41.7   new manufactured homes; and 
 41.8      (3) make improvements in manufactured home parks as 
 41.9   requested by the grant recipient. 
 41.10     (b) Households assisted under this section must have an 
 41.11  annual household income at or below 80 percent of the area 
 41.12  median household income.  Cities, counties, or community action 
 41.13  programs receiving funds under the program must give preference 
 41.14  to households at or below 50 percent of the area median 
 41.15  household income.  The commissioner may use funds appropriated 
 41.16  for the local grant and loan programs under section 462A.34 for 
 41.17  the purposes of this section.  The agency shall attempt to make 
 41.18  grants and loans in approximately equal amounts to applicants 
 41.19  outside of and within the metropolitan area, as defined in 
 41.20  section 473.121, subdivision 2. 
 41.21     (c) The housing finance agency shall select program 
 41.22  participants from eligible applicants, with the first grant 
 41.23  being awarded no later than December 31, 2001.  Participation in 
 41.24  this program is voluntary and no park resident shall be required 
 41.25  to participate.  The agency shall report to the legislature by 
 41.26  February 1, 2003, on the effectiveness of the program. 
 41.27     Sec. 5.  [EFFECTIVE DATE.] 
 41.28     Sections 1 to 4 are effective the day following final 
 41.29  enactment. 
 41.30                             ARTICLE 6 
 41.31                       HOUSING FINANCE AGENCY
 41.32  Section 1.  [HOUSING FINANCE AGENCY APPROPRIATIONS.] 
 41.33     The sums shown in the columns marked "APPROPRIATIONS" are 
 41.34  appropriated from the general fund, or another fund named, to 
 41.35  the agencies and for the purposes specified in this article, to 
 41.36  be available for the fiscal years indicated for each purpose.  
 42.1   The figures "2002" and "2003," where used in this article, mean 
 42.2   that the appropriation or appropriations listed under them are 
 42.3   available for the year ending June 30, 2002, or June 30, 2003, 
 42.4   respectively.  
 42.5                           SUMMARY BY FUND 
 42.6                                                        BIENNIAL
 42.7                             2002          2003           TOTAL
 42.8   General              $ 40,832,000   $ 39,832,000   $...,...,000
 42.9   TOTAL                $...,...,000   $...,...,000   $...,...,000
 42.10  Sec. 2.  HOUSING FINANCE AGENCY       40,832,000     39,832,000
 42.11  Subdivision 1.  Total Appropriation 
 42.12  The amounts that may be spent from this 
 42.13  appropriation for certain programs are 
 42.14  specified in the following subdivisions.
 42.15  This appropriation is for transfer to 
 42.16  the housing development fund for the 
 42.17  programs specified.  Except as 
 42.18  otherwise indicated, this transfer is 
 42.19  part of the agency's permanent budget 
 42.20  base. 
 42.21  Subd. 2.  Rental Assistance for Mentally Ill 
 42.22  $1,700,000 the first year and 
 42.23  $1,700,000 the second year are for a 
 42.24  rental housing assistance program for 
 42.25  persons with a mental illness or 
 42.26  families with an adult member with a 
 42.27  mental illness under Minnesota 
 42.28  Statutes, section 462A.2097. 
 42.29  Subd. 3.  Family Homeless Prevention 
 42.30  $3,250,000 the first year and 
 42.31  $3,250,000 the second year are for the 
 42.32  family homeless prevention and 
 42.33  assistance program under Minnesota 
 42.34  Statutes, section 462A.204. 
 42.35  Subd. 4.  Homeownership Education and 
 42.36  Training Program 
 42.37  $858,000 the first year and $858,000 
 42.38  the second year are for the 
 42.39  homeownership education and training 
 42.40  program under Minnesota Statutes, 
 42.41  section 462A.209. 
 42.42  Subd. 5.  Housing Trust Fund
 42.43  $4,623,000 the first year and 
 42.44  $4,623,000 the second year are for the 
 42.45  housing trust fund to be deposited in 
 42.46  the housing trust fund account created 
 42.47  under Minnesota Statutes, section 
 42.48  462A.201, and used for the purposes 
 42.49  provided in that section.  Until 
 42.50  January 1, 2002, the agency may 
 42.51  administer the appropriations under 
 43.1   this subdivision in the same manner as 
 43.2   appropriations for Minnesota Statutes, 
 43.3   section 462A.21, subdivision 8b, 15, 
 43.4   21, or 24. 
 43.5   Subd. 6.  Affordable Rental Investment Fund
 43.6   $10,000,000 the first year and 
 43.7   $10,000,000 the second year are for the 
 43.8   affordable rental investment fund 
 43.9   program under Minnesota Statutes, 
 43.10  section 462A.21, subdivision 8b.  Of 
 43.11  this amount, $10,000,000 the first year 
 43.12  and $10,000,000 the second year are to 
 43.13  finance the acquisition, 
 43.14  rehabilitation, and debt restructuring 
 43.15  of federally assisted rental property 
 43.16  and for making equity take-out loans 
 43.17  under Minnesota Statutes, section 
 43.18  462A.05, subdivision 39.  The owner of 
 43.19  the federally assisted rental property 
 43.20  must agree to participate in the 
 43.21  applicable federally assisted housing 
 43.22  program and to extend any existing 
 43.23  low-income affordability restrictions 
 43.24  on the housing for the maximum term 
 43.25  permitted.  The owner must also enter 
 43.26  into an agreement that gives local 
 43.27  units of government, housing and 
 43.28  redevelopment authorities, and 
 43.29  nonprofit housing organizations the 
 43.30  right of first refusal if the rental 
 43.31  property is offered for sale.  Priority 
 43.32  must be given among comparable 
 43.33  properties to properties with the 
 43.34  longest remaining term under an 
 43.35  agreement for federal rental 
 43.36  assistance.  Priority must also be 
 43.37  given among comparable rental housing 
 43.38  developments to developments that are 
 43.39  or will be owned by local government 
 43.40  units, a housing and redevelopment 
 43.41  authority, or a nonprofit housing 
 43.42  organization. 
 43.43  Subd. 7.  Urban Indian Housing Program
 43.44  $187,000 the first year and $187,000 
 43.45  the second year are for the urban 
 43.46  Indian housing program under Minnesota 
 43.47  Statutes, section 462A.07, subdivision 
 43.48  15.  
 43.49  Subd. 8.  Tribal Indian Housing Program
 43.50  $1,683,000 the first year and 
 43.51  $1,683,000 the second year are for the 
 43.52  tribal Indian housing program under 
 43.53  Minnesota Statutes, section 462A.07, 
 43.54  subdivision 14.  
 43.55  Subd. 9.  Capacity Building Grants 
 43.56  $340,000 the first year and $340,000 
 43.57  the second year are for nonprofit 
 43.58  capacity building grants under 
 43.59  Minnesota Statutes, section 462A.21, 
 43.60  subdivision 3b. 
 43.61  Subd. 10.  Challenge Program
 44.1   $13,004,000 the first year and 
 44.2   $12,004,000 the second year are 
 44.3   appropriated for transfer to the 
 44.4   housing development fund for the 
 44.5   economic development and housing 
 44.6   challenge program created by Minnesota 
 44.7   Statutes, section 462A.33.  Until 
 44.8   January 1, 2002, the agency may 
 44.9   administer the appropriations under 
 44.10  this subdivision in the same manner as 
 44.11  appropriations for Minnesota Statutes, 
 44.12  section 462A.21, subdivision 8b, 15, 
 44.13  21, or 24. 
 44.14  Of this appropriation, $610,000 the 
 44.15  first year is for disaster relief for 
 44.16  home ownership in the areas that 
 44.17  sustained damage from the tornado that 
 44.18  struck Yellow Medicine and Chippewa 
 44.19  counties on July 25, 2000, and were 
 44.20  added to the Presidential Declaration 
 44.21  of Major Disaster, DR1333, by amendment 
 44.22  number 5 dated July 28, 2000, and 
 44.23  amendment number 6 dated August 14, 
 44.24  2000. 
 44.25  Of this appropriation, $390,000 the 
 44.26  first year is for disaster relief for 
 44.27  rental housing in the areas that 
 44.28  sustained damage from the tornado that 
 44.29  struck Yellow Medicine and Chippewa 
 44.30  counties on July 25, 2000, and were 
 44.31  added to the Presidential Declaration 
 44.32  of Major Disaster, DR1333, by amendment 
 44.33  number 5 dated July 28, 2000, and 
 44.34  amendment number 6 dated August 14, 
 44.35  2000.  Notwithstanding Minnesota 
 44.36  Statutes, section 462A.21, subdivision 
 44.37  8b, assistance provided from this 
 44.38  disaster relief appropriation for the 
 44.39  rehabilitation of existing rental 
 44.40  housing may be in the form of 
 44.41  foregivable loans.  In making 
 44.42  forgivable loans from this 
 44.43  appropriation, the agency shall 
 44.44  determine the circumstances, terms, and 
 44.45  conditions under which all or any 
 44.46  portion of the grant shall be repaid.  
 44.47  This appropriation is available until 
 44.48  spent. 
 44.49  Subd. 11.  Transfers
 44.50  Money appropriated under this section 
 44.51  for disaster relief may be transferred 
 44.52  between the affordable rental 
 44.53  investment fund account and the 
 44.54  community rehabilitation fund account. 
 44.55     Sec. 3.  Minnesota Statutes 2000, section 16B.61, 
 44.56  subdivision 1, is amended to read: 
 44.57     Subdivision 1.  [ADOPTION OF CODE.] Subject to sections 
 44.58  16B.59 to 16B.75, the commissioner shall by rule establish a 
 44.59  code of standards for the construction, reconstruction, 
 44.60  alteration, and repair of buildings, governing matters of 
 45.1   structural materials, design and construction, fire protection, 
 45.2   health, sanitation, and safety, including design and 
 45.3   construction standards regarding heat loss control, 
 45.4   illumination, and climate control.  The code must conform 
 45.5   insofar as practicable to model building codes generally 
 45.6   accepted and in use throughout the United States, including a 
 45.7   code for building conservation.  In the preparation of the code, 
 45.8   consideration must be given to the existing statewide specialty 
 45.9   codes presently in use in the state.  Model codes with necessary 
 45.10  modifications and statewide specialty codes may be adopted by 
 45.11  reference.  The code must be based on the application of 
 45.12  scientific principles, approved tests, and professional 
 45.13  judgment.  To the extent possible, the code must be adopted in 
 45.14  terms of desired results instead of the means of achieving those 
 45.15  results, avoiding wherever possible the incorporation of 
 45.16  specifications of particular methods or materials.  To that end 
 45.17  the code must encourage the use of new methods and new 
 45.18  materials.  Except as otherwise provided in sections 16B.59 to 
 45.19  16B.75, the commissioner shall administer and enforce the 
 45.20  provisions of those sections. 
 45.21     The commissioner shall develop rules addressing the plan 
 45.22  review fee assessed to similar buildings without significant 
 45.23  modifications including provisions for use of building systems 
 45.24  as specified in the industrialized/modular program specified in 
 45.25  section 16B.75.  Additional plan review fees associated with 
 45.26  similar plans must be based on costs commensurate with the 
 45.27  direct and indirect costs of the service. 
 45.28     Sec. 4.  Minnesota Statutes 2000, section 16B.62, 
 45.29  subdivision 1, is amended to read: 
 45.30     Subdivision 1.  [MUNICIPAL ENFORCEMENT.] The State Building 
 45.31  Code applies statewide and supersedes the building code of any 
 45.32  municipality.  A municipality must not by ordinance or through 
 45.33  development agreement require building code provisions 
 45.34  regulating components or systems of any residential structure 
 45.35  that are more restrictive than any provision of the State 
 45.36  Building Code.  The State Building Code does not apply to 
 46.1   agricultural buildings except with respect to state inspections 
 46.2   required or rulemaking authorized by sections 103F.141, 216C.19, 
 46.3   subdivision 8, and 326.244.  All municipalities shall adopt and 
 46.4   enforce the State Building Code with respect to new construction 
 46.5   within their respective jurisdictions.  
 46.6      If a city has adopted or is enforcing the State Building 
 46.7   Code on June 3, 1977, or determines by ordinance after that date 
 46.8   to undertake enforcement, it shall enforce the code within the 
 46.9   city.  A city may by ordinance extend the enforcement of the 
 46.10  code to contiguous unincorporated territory not more than two 
 46.11  miles distant from its corporate limits in any direction.  Where 
 46.12  two or more noncontiguous cities which have elected to enforce 
 46.13  the code have boundaries less than four miles apart, each is 
 46.14  authorized to enforce the code on its side of a line equidistant 
 46.15  between them.  Once enforcement authority is extended 
 46.16  extraterritorially by ordinance, the authority may continue to 
 46.17  be exercised in the designated territory even though another 
 46.18  city less than four miles distant later elects to enforce the 
 46.19  code.  After the extension, the city may enforce the code in the 
 46.20  designated area to the same extent as if the property were 
 46.21  situated within its corporate limits.  
 46.22     A city which, on June 3, 1977, had not adopted the code may 
 46.23  not commence enforcement of the code within or outside of its 
 46.24  jurisdiction until it has provided written notice to the 
 46.25  commissioner, the county auditor, and the town clerk of each 
 46.26  town in which it intends to enforce the code.  A public hearing 
 46.27  on the proposed enforcement must be held not less than 30 days 
 46.28  after the notice has been provided.  Enforcement of the code by 
 46.29  the city outside of its jurisdiction commences on the first day 
 46.30  of January in the year following the notice and hearing.  
 46.31     Municipalities may provide for the issuance of permits, 
 46.32  inspection, and enforcement within their jurisdictions by means 
 46.33  which are convenient, and lawful, including by means of 
 46.34  contracts with other municipalities pursuant to section 471.59, 
 46.35  and with qualified individuals.  The other municipalities or 
 46.36  qualified individuals may be reimbursed by retention or 
 47.1   remission of some or all of the building permit fee collected or 
 47.2   by other means.  In areas of the state where inspection and 
 47.3   enforcement is unavailable from qualified employees of 
 47.4   municipalities, the commissioner shall train and designate 
 47.5   individuals available to carry out inspection and enforcement on 
 47.6   a fee basis.  Nothing in this section prohibits a municipality 
 47.7   from adopting ordinances relating to zoning, subdivision, or 
 47.8   planning unless the ordinance conflicts with a provision of the 
 47.9   State Building Code.  
 47.10     Sec. 5.  Minnesota Statutes 2000, section 16B.63, is 
 47.11  amended by adding a subdivision to read: 
 47.12     Subd. 5.  [INTERPRETATIVE AUTHORITY.] To achieve uniform 
 47.13  and consistent application of the State Building Code, the state 
 47.14  building official has final interpretative authority applicable 
 47.15  to all codes adopted as part of the State Building Code except 
 47.16  for the plumbing code and the electrical code.  A final 
 47.17  interpretative committee composed of seven members, consisting 
 47.18  of five certified building officials and two construction 
 47.19  industry representatives, shall review requests for final 
 47.20  interpretations relating to that field.  The state building 
 47.21  official must establish procedures for membership of the 
 47.22  interpretative committees.  The appropriate committee shall 
 47.23  review the request and make a recommendation to the state 
 47.24  building official for the final interpretation within 30 days of 
 47.25  the request.  The state building official must issue an 
 47.26  interpretation within ten business days from the recommendation 
 47.27  from the review committee.  A final interpretation may be 
 47.28  appealed within 30 days of its issuance to the commissioner 
 47.29  under section 16B.67.  The final interpretation must be 
 47.30  published within ten business days of its issuance and made 
 47.31  available to the public.  Final interpretations must be 
 47.32  considered for adoption as part of the State Building Code. 
 47.33     Sec. 6.  [16B.685] [ANNUAL REPORT.] 
 47.34     Beginning with the first report filed by April 1, 2003, 
 47.35  each municipality shall annually report by April 1 to the 
 47.36  department, in a format prescribed by the department, all 
 48.1   construction and development-related fees collected by the 
 48.2   municipality from developers, builders, and subcontractors.  The 
 48.3   report must include: 
 48.4      (1) the number and valuation of units for which fees were 
 48.5   paid; 
 48.6      (2) the amount of building permit fees, plan review fees, 
 48.7   administrative fees, engineering fees, infrastructure fees, and 
 48.8   other construction and development-related fees; and 
 48.9      (3) the expenses associated with the municipal activities 
 48.10  for which fees were collected. 
 48.11     Sec. 7.  Minnesota Statutes 2000, section 326.90, 
 48.12  subdivision 1, is amended to read: 
 48.13     Subdivision 1.  [LOCAL LICENSE PROHIBITED.] Except as 
 48.14  provided in sections 326.991 and 326.90, subdivision 2, and 
 48.15  326.991, a political subdivision may not require a person 
 48.16  licensed under sections 326.83 to 326.991 to also be licensed or 
 48.17  pay a registration or other fee related to licensure under any 
 48.18  ordinance, law, rule, or regulation of the political 
 48.19  subdivision.  This section does not prohibit charges for 
 48.20  building permits or other charges not directly related to 
 48.21  licensure. 
 48.22     Sec. 8.  Minnesota Statutes 2000, section 462.353, 
 48.23  subdivision 4, is amended to read: 
 48.24     Subd. 4.  [FEES.] A municipality may prescribe fees 
 48.25  sufficient to defray the costs incurred by it in reviewing, 
 48.26  investigating, and administering an application for an amendment 
 48.27  to an official control established pursuant to sections 462.351 
 48.28  to 462.364 or an application for a permit or other approval 
 48.29  required under an official control established pursuant to those 
 48.30  sections.  Fees as prescribed shall must be by ordinance and 
 48.31  must be fair, reasonable, and proportionate to the actual cost 
 48.32  of the service for which the fee is imposed.  A municipality 
 48.33  shall adopt management and accounting procedures to ensure that 
 48.34  fees are maintained and used only for the purpose for which they 
 48.35  are collected. 
 48.36     If a dispute arises over a specific fee imposed by a 
 49.1   municipality related to a specific application, the amount of 
 49.2   the fee must be deposited and held in escrow, and the person 
 49.3   aggrieved by the fee may appeal under section 462.361.  An 
 49.4   approved application may proceed as if the fee had been paid, 
 49.5   pending a decision on the appeal.  
 49.6      Sec. 9.  [462.3531] [WAIVER OF RIGHTS; PROHIBITION.] 
 49.7      A local government unit must not require a contractor, 
 49.8   builder, or developer of property to waive a right possessed by 
 49.9   the contractor, builder, or developer as a condition of 
 49.10  receiving any approval for the development or construction of a 
 49.11  property. 
 49.12     Sec. 10.  Minnesota Statutes 2000, section 462.358, 
 49.13  subdivision 2b, is amended to read: 
 49.14     Subd. 2b.  [DEDICATION.] The regulations may require that a 
 49.15  reasonable portion of any proposed subdivision be dedicated to 
 49.16  the public or preserved for public use as streets, roads, 
 49.17  sewers, electric, gas, and water facilities, storm water 
 49.18  drainage and holding areas or ponds and similar utilities and 
 49.19  improvements.  
 49.20     The regulations may require that any proposed subdivision 
 49.21  include a certain percentage of units that are affordable across 
 49.22  a range of incomes.  
 49.23     In addition, the regulations may require that a reasonable 
 49.24  portion of any proposed subdivision be dedicated to the public 
 49.25  or preserved for conservation purposes or for public use as 
 49.26  parks, recreational facilities as defined and outlined in 
 49.27  section 471.191, playgrounds, trails, wetlands, or open space; 
 49.28  provided that (a) the municipality may choose to accept an 
 49.29  equivalent amount in cash from the applicant for part or all of 
 49.30  the portion required to be dedicated to such public uses or 
 49.31  purposes based on the fair market value of the land no later 
 49.32  than at the time of final approval, (b) any cash payments 
 49.33  received shall be placed in a special fund by the municipality 
 49.34  used only for the purposes for which the money was obtained, (c) 
 49.35  in establishing the reasonable portion to be dedicated, the 
 49.36  regulations may consider the open space, park, recreational, or 
 50.1   common areas and facilities which the applicant proposes to 
 50.2   reserve for the subdivision, and (d) the municipality reasonably 
 50.3   determines that it will need to acquire that portion of land for 
 50.4   the purposes stated in this paragraph as a result of approval of 
 50.5   the subdivision. 
 50.6      Sec. 11.  [462.3851] [COLLAR COUNTY; AFFORDABLE HOUSING.] 
 50.7      Municipalities in collar counties must adopt regulations by 
 50.8   January 1, 2002, that, at a minimum, comply with the 
 50.9   affordability and other requirements of section 473.2542.  For 
 50.10  the purpose of this subdivision, a "collar county" is a county 
 50.11  that is contiguous to a county within the metropolitan area as 
 50.12  defined in section 473.121, subdivision 2.  
 50.13     Sec. 12.  Minnesota Statutes 2000, section 462A.05, 
 50.14  subdivision 14, is amended to read: 
 50.15     Subd. 14.  [REHABILITATION LOANS.] It may agree to 
 50.16  purchase, make, or otherwise participate in the making, and may 
 50.17  enter into commitments for the purchase, making, or 
 50.18  participation in the making, of eligible loans for 
 50.19  rehabilitation to persons and families of low and moderate 
 50.20  income, and to owners of existing residential housing for 
 50.21  occupancy by such persons and families, for the rehabilitation 
 50.22  of existing residential housing owned by them.  The loans may be 
 50.23  insured or uninsured and may be made with security, or may be 
 50.24  unsecured, as the agency deems advisable.  The loans may be in 
 50.25  addition to or in combination with long-term eligible mortgage 
 50.26  loans under subdivision 3.  They may be made in amounts 
 50.27  sufficient to refinance existing indebtedness secured by the 
 50.28  property, if refinancing is determined by the agency to be 
 50.29  necessary to permit the owner to meet the owner's housing cost 
 50.30  without expending an unreasonable portion of the owner's income 
 50.31  thereon.  No loan for rehabilitation shall be made unless the 
 50.32  agency determines that the loan will be used primarily to make 
 50.33  the housing more desirable to live in, to increase the market 
 50.34  value of the housing, for compliance with state, county or 
 50.35  municipal building, housing maintenance, fire, health or similar 
 50.36  codes and standards applicable to housing, or to accomplish 
 51.1   energy conservation related improvements.  In unincorporated 
 51.2   areas and municipalities not having codes and standards, the 
 51.3   agency may, solely for the purpose of administering the 
 51.4   provisions of this chapter, establish codes and standards.  
 51.5   Except for accessibility improvements under this subdivision and 
 51.6   subdivisions 14a and 24, clause (1), no secured loan for 
 51.7   rehabilitation of any property shall be made in an amount which, 
 51.8   with all other existing indebtedness secured by the property, 
 51.9   would exceed 110 percent of its market value, as determined by 
 51.10  the agency.  No loan under this subdivision shall be denied 
 51.11  solely because the loan will not be used for placing the 
 51.12  residential housing in full compliance with all state, county, 
 51.13  or municipal building, housing maintenance, fire, health, or 
 51.14  similar codes and standards applicable to housing.  
 51.15  Rehabilitation loans shall be made only when the agency 
 51.16  determines that financing is not otherwise available, in whole 
 51.17  or in part, from private lenders upon equivalent terms and 
 51.18  conditions.  Accessibility rehabilitation loans authorized under 
 51.19  this subdivision may be made to eligible persons and families 
 51.20  without limitations relating to the maximum incomes of the 
 51.21  borrowers if: 
 51.22     (1) the borrower or a member of the borrower's family 
 51.23  requires a level of care provided in a hospital, skilled nursing 
 51.24  facility, or intermediate care facility for persons with mental 
 51.25  retardation or related conditions; 
 51.26     (2) home care is appropriate; and 
 51.27     (3) the improvement will enable the borrower or a member of 
 51.28  the borrower's family to reside in the housing. 
 51.29  The agency may waive any requirement that the housing units in a 
 51.30  residential housing development be rented to persons of low and 
 51.31  moderate income if the development consists of four or less 
 51.32  dwelling units, one of which is occupied by the owner. 
 51.33     Sec. 13.  Minnesota Statutes 2000, section 462A.05, 
 51.34  subdivision 14a, is amended to read: 
 51.35     Subd. 14a.  [REHABILITATION LOANS; EXISTING OWNER OCCUPIED 
 51.36  RESIDENTIAL HOUSING.] It may make loans to persons and families 
 52.1   of low and moderate income to rehabilitate or to assist in 
 52.2   rehabilitating existing residential housing owned and occupied 
 52.3   by those persons or families.  No loan shall be made unless the 
 52.4   agency determines that the loan will be used primarily for 
 52.5   rehabilitation work necessary for health or safety, essential 
 52.6   accessibility improvements, or to improve the energy efficiency 
 52.7   of the dwelling.  No loan for rehabilitation of owner occupied 
 52.8   residential housing shall be denied solely because the loan will 
 52.9   not be used for placing the residential housing in full 
 52.10  compliance with all state, county or municipal building, housing 
 52.11  maintenance, fire, health or similar codes and standards 
 52.12  applicable to housing.  The amount of any loan shall not exceed 
 52.13  the lesser of (a) a maximum loan amount determined under rules 
 52.14  adopted by the agency not to exceed $20,000, or (b) the actual 
 52.15  cost of the work performed, or (c) that portion of the cost of 
 52.16  rehabilitation which the agency determines cannot otherwise be 
 52.17  paid by the person or family without the expenditure of an 
 52.18  unreasonable portion of the income of the person or family.  
 52.19  Loans made in whole or in part with federal funds may exceed the 
 52.20  maximum loan amount to the extent necessary to comply with 
 52.21  federal lead abatement requirements prescribed by the funding 
 52.22  source.  In making loans, the agency shall determine the 
 52.23  circumstances under which and the terms and conditions under 
 52.24  which all or any portion of the loan will be repaid and shall 
 52.25  determine the appropriate security for the repayment of the 
 52.26  loan.  Loans pursuant to this subdivision may be made with or 
 52.27  without interest or periodic payments.  Loans made without 
 52.28  interest or periodic payments need not be repaid by the borrower 
 52.29  if the property for which the loan is made has not been sold, 
 52.30  transferred, or otherwise conveyed nor has it ceased to be the 
 52.31  principal place of residence of the borrower, within ten years 
 52.32  after the date of the loan.  
 52.33     Sec. 14.  Minnesota Statutes 2000, section 462A.20, 
 52.34  subdivision 3, is amended to read: 
 52.35     Subd. 3.  [SEPARATE ACCOUNTS; TRANSFERS; LIMITS.] Whenever 
 52.36  any money is appropriated by the state to the agency solely for 
 53.1   a specified purpose or purposes, the agency shall establish a 
 53.2   separate bookkeeping account or accounts in the housing 
 53.3   development fund to record the receipt and disbursement of such 
 53.4   money and of the income, gain, and loss from the investment and 
 53.5   reinvestment thereof.  Earnings from investment of any amounts 
 53.6   appropriated by the state to the agency for a specified purpose 
 53.7   or purposes may be aggregated.  The costs and expenses necessary 
 53.8   and incidental to the development and operation of all programs 
 53.9   funded by state appropriations may be paid from the aggregated 
 53.10  earnings from investments prior to periodic distributions of 
 53.11  earnings to separate accounts to be used for the same purpose as 
 53.12  the respective original appropriation.  The agency may transfer 
 53.13  unencumbered balances from one appropriated account to another, 
 53.14  provided that no money appropriated for the purpose of agency 
 53.15  loan programs may be transferred to an account to be used for 
 53.16  making grants, except that money appropriated for the purpose of 
 53.17  section 462A.05, subdivision 14a, may be transferred for the 
 53.18  purpose of section 462A.05, subdivision 15a.  
 53.19     Sec. 15.  Minnesota Statutes 2000, section 462A.201, 
 53.20  subdivision 2, is amended to read: 
 53.21     Subd. 2.  [LOW-INCOME HOUSING.] (a) The agency may, in 
 53.22  consultation with the advisory committee, use money from the 
 53.23  housing trust fund account for operational costs for providing 
 53.24  permanent housing and to provide loans or grants for projects 
 53.25  for the development, construction, acquisition, preservation, 
 53.26  and rehabilitation of low-income rental and limited equity 
 53.27  cooperative housing units, including temporary and transitional 
 53.28  housing, and homes for ownership.  For purposes of this section, 
 53.29  "transitional housing" means housing that is provided for a 
 53.30  limited duration not exceeding 24 months, except that up to 
 53.31  one-third of the residents may live in the housing for up to 36 
 53.32  months.  Loans or grants for residential housing for migrant 
 53.33  farmworkers may be made under this section.  No more than 20 
 53.34  percent of available funds may be used for home ownership 
 53.35  projects.  
 53.36     (b) A rental or limited equity cooperative permanent 
 54.1   housing project must meet one of the following income tests: 
 54.2      (1) at least 75 percent of the rental and cooperative units 
 54.3   must be rented to or cooperatively owned by persons and families 
 54.4   whose income does not exceed 30 percent of the median family 
 54.5   income for the metropolitan area as defined in section 473.121, 
 54.6   subdivision 2; or 
 54.7      (2) all of the units funded by the housing trust fund 
 54.8   account must be used for the benefit of persons and families 
 54.9   whose income does not exceed 30 percent of the median family 
 54.10  income for the metropolitan area as defined in section 473.121, 
 54.11  subdivision 2. 
 54.12     The median family income may be adjusted for families of 
 54.13  five or more. 
 54.14     (c) Homes for ownership must be owned or purchased by 
 54.15  persons and families whose income does not exceed 50 percent of 
 54.16  the metropolitan area median income, adjusted for family size. 
 54.17     (d) In making the grants, the agency shall determine the 
 54.18  terms and conditions of repayment and the appropriate security, 
 54.19  if any, should repayment be required.  To promote the geographic 
 54.20  distribution of grants and loans, the agency may designate a 
 54.21  portion of the grant or loan awards to be set aside for projects 
 54.22  located in specified congressional districts or other 
 54.23  geographical regions specified by the agency.  The agency may 
 54.24  adopt rules for awarding grants and loans under this subdivision.
 54.25     Sec. 16.  Minnesota Statutes 2000, section 462A.2097, is 
 54.26  amended to read: 
 54.27     462A.2097 [RENTAL HOUSING.] 
 54.28     The agency may establish a tenant-based or project-based 
 54.29  rental housing assistance program for persons of low income or 
 54.30  for persons with a mental illness or families that include an 
 54.31  adult family member with a mental illness.  Rental assistance 
 54.32  may be in the form of direct rental subsidies for housing for 
 54.33  persons or families with incomes, at the time of initial 
 54.34  occupancy, of up to 50 percent of the area median income as 
 54.35  determined by the United States Department of Housing and Urban 
 54.36  Development, adjusted for families of five or more.  Housing for 
 55.1   the mentally ill must be operated in coordination with social 
 55.2   service providers who provide services requested by tenants.  
 55.3   Direct rental subsidies must be administered by the agency for 
 55.4   the benefit of eligible tenants.  Financial assistance provided 
 55.5   under this section must be in the form of vendor payments 
 55.6   whenever possible. 
 55.7      Sec. 17.  Minnesota Statutes 2000, section 462A.21, 
 55.8   subdivision 10, is amended to read: 
 55.9      Subd. 10.  [CERTAIN APPROPRIATIONS AVAILABLE UNTIL 
 55.10  EXPENDED.] Notwithstanding the repeal of section 462A.26 and the 
 55.11  provisions of section 16A.28 or any other law relating to lapse 
 55.12  of an appropriation, the appropriations made to the agency by 
 55.13  the legislature in 1976 and subsequent years are available until 
 55.14  fully expended, and the allocations provided in the 
 55.15  appropriations remain in effect.  Earnings from investments of 
 55.16  any of the amounts appropriated to the agency are appropriated 
 55.17  to the agency to be used for the same purposes as the respective 
 55.18  original appropriations, after payment of the costs and expenses 
 55.19  necessary and incidental to the development and operation of the 
 55.20  programs authorized under this chapter. 
 55.21     Sec. 18.  Minnesota Statutes 2000, section 462A.21, is 
 55.22  amended by adding a subdivision to read: 
 55.23     Subd. 28.  [FAMILY STABILIZATION DEMONSTRATION 
 55.24  PROJECT.] The agency may spend money for the purposes of section 
 55.25  462A.205 and may pay costs and expenses necessary and incidental 
 55.26  to the development and operation of the project. 
 55.27     Sec. 19.  [473.2541] [DEFINITIONS.] 
 55.28     Subdivision 1.  [SCOPE.] For the purpose of sections 
 55.29  473.2541 and 473.2542, the terms defined in this section have 
 55.30  the meanings given them. 
 55.31     Subd. 2.  [AFFORDABLE RENTAL HOUSING.] "Affordable rental 
 55.32  housing" means rental housing units having a monthly rent of no 
 55.33  more than 30 percent of a specified area median income divided 
 55.34  by 12.  
 55.35     Subd. 3.  [AFFORDABLE HOMES.] "Affordable homes" means 
 55.36  single-family homes having a monthly mortgage payment of 
 56.1   principal and interest of no more than the amount determined by 
 56.2   30 percent of a specified area median income divided by 12.  
 56.3      Subd. 4.  [DEVELOPMENT.] "Development" means a new 
 56.4   construction or reconstruction development of single-family or 
 56.5   multiple-family residences containing a total of 20 or more 
 56.6   units located in the metropolitan area on a single parcel of 
 56.7   land. 
 56.8      Subd. 5.  [MUNICIPALITY.] "Municipality" means a statutory 
 56.9   or home rule charter city or town in the metropolitan area. 
 56.10     Subd. 6.  [PUBLIC SUBSIDY.] "Public subsidy" means funds 
 56.11  provided to a specifically identified project from the 
 56.12  inclusionary housing account to assist in financing the 
 56.13  construction of the development.  
 56.14     Sec. 20.  [473.2542] [AFFORDABLE HOUSING.] 
 56.15     Subdivision 1.  [OPTIONAL AFFORDABLE HOUSING.] A developer 
 56.16  may choose whether or not to comply with the provisions of this 
 56.17  section.  If a developer chooses to comply, the development must 
 56.18  contain on the same parcel of land at least 20 percent 
 56.19  affordable rental housing or affordable homes as provided in 
 56.20  this section.  The affordable housing must blend architecturally 
 56.21  with the remainder of the development. 
 56.22     Subd. 2.  [PRIVATE DEVELOPMENT.] For a development without 
 56.23  public subsidy, affordable housing or affordable rental housing 
 56.24  and affordable homes shall be determined using 80 percent of the 
 56.25  area median income.  
 56.26     Subd. 3.  [PUBLIC SUBSIDY.] For a development of rental 
 56.27  housing receiving a public subsidy from the inclusionary housing 
 56.28  account, ten percent of the units must be determined affordable 
 56.29  at 30 percent of area median income, and ten percent must be 
 56.30  determined affordable using 50 percent of area median income.  
 56.31  For home ownership units receiving a public subsidy, 
 56.32  affordability is determined using 60 percent of area median 
 56.33  income.  
 56.34     Subd. 4.  [DENSITY BONUS.] If a developer chooses to comply 
 56.35  with the provisions of this section, then a development 
 56.36  containing at least the minimum number of affordable units must 
 57.1   receive a density bonus of at least 30 percent more units to be 
 57.2   built than would otherwise be permitted. 
 57.3      Subd. 5.  [EXCEPTION.] A development complies with the 
 57.4   affordability requirement of this section even if that 
 57.5   development does not contain the requisite affordable rental 
 57.6   housing or affordable homes, if land adjacent to the development 
 57.7   is given by the developer to a local housing authority or 
 57.8   nonprofit developer and the requisite affordable units are 
 57.9   constructed on that land. 
 57.10     Subd. 6.  [REGULATORY FLEXIBILITY.] A municipality shall 
 57.11  assist a development in being affordable by providing at least 
 57.12  one of the following:  
 57.13     (1) reduced setback and parking requirements; 
 57.14     (2) decreased road width; 
 57.15     (3) flexibility in site development standards or zoning 
 57.16  code requirements; 
 57.17     (4) waiver of permit or impact fees; 
 57.18     (5) fast-track permitting; or 
 57.19     (6) any other regulatory incentive that would result in 
 57.20  identifiable cost avoidance or reductions and that contributes 
 57.21  significantly to the economic feasibility of affordable housing. 
 57.22     Subd. 7.  [RIGHT OF FIRST REFUSAL.] For 90 days after a 
 57.23  development has received final approval, the local housing 
 57.24  authority has the first option to purchase the affordable units 
 57.25  in a development at fair market value, followed in order of 
 57.26  preference by the county housing and redevelopment authority and 
 57.27  nonprofit organizations.  This subdivision does not apply to 
 57.28  developments using federal tax credits.  
 57.29     Subd. 8.  [RENTAL LONG-TERM AFFORDABILITY.] Those housing 
 57.30  units required to be affordable rental housing units by this 
 57.31  section must remain at affordable rents for at least the first 
 57.32  15 years after initial occupancy of the unit.  
 57.33     Sec. 21.  Minnesota Statutes 2000, section 473.255, 
 57.34  subdivision 1, is amended to read: 
 57.35     Subdivision 1.  [DEFINITIONS.] (a) "Inclusionary housing 
 57.36  development" means a new construction development, including 
 58.1   owner-occupied or rental housing, or a combination of both, with 
 58.2   a variety of prices and designs which serve families with a 
 58.3   range of incomes and housing needs complying with the 
 58.4   affordability requirements of section 473.2542. 
 58.5      (b) "Municipality" means a statutory or home rule charter 
 58.6   city or town participating in the local housing incentives 
 58.7   program under section 473.254. 
 58.8      Sec. 22.  Minnesota Statutes 2000, section 473.255, 
 58.9   subdivision 2, is amended to read: 
 58.10     Subd. 2.  [APPLICATION CRITERIA.] The metropolitan council 
 58.11  must give preference to economically viable proposals to the 
 58.12  degree that they:  (1) use innovative building techniques or 
 58.13  materials to lower construction costs while maintaining high 
 58.14  quality construction and livability; (2) are located in 
 58.15  communities that have demonstrated a willingness to waive local 
 58.16  restrictions which otherwise would increase costs of 
 58.17  construction; and (3) include units affordable to households 
 58.18  with incomes at or below 80 percent of area median income meet 
 58.19  the affordability and other requirements of section 473.2542. 
 58.20     Priority shall be given to proposals where at least 15 
 58.21  percent of the owner-occupied units are affordable to households 
 58.22  at or below 60 percent of the area annual median income and at 
 58.23  least ten percent of the rental units are affordable to 
 58.24  households at or below 30 percent of area annual median income. 
 58.25     An inclusionary housing development may include resale 
 58.26  limitations on its affordable units.  The limitations may 
 58.27  include a minimum ownership period before a purchaser may profit 
 58.28  on the sale of an affordable unit. 
 58.29     Cost savings from regulatory incentives must be reflected 
 58.30  in the sale of all residences in an inclusionary development. 
 58.31     Sec. 23.  Laws 2000, chapter 488, article 8, section 2, 
 58.32  subdivision 6, is amended to read: 
 58.33  Subd. 6.  Economic Support Grants
 58.34      30,509,000     25,368,000                 
 58.35  The amounts that may be spent from this 
 58.36  appropriation for each purpose are as 
 58.37  follows: 
 59.1   [ASSISTANCE TO FAMILIES GRANTS TANF 
 59.2   FORECAST ADJUSTMENT.] The federal 
 59.3   Temporary Assistance to Needy Families 
 59.4   (TANF) block grant fund appropriated to 
 59.5   the commissioner of human services in 
 59.6   Laws 1999, chapter 245, article 1, 
 59.7   section 2, subdivision 10, for MFIP 
 59.8   cash grants are reduced by $37,513,000 
 59.9   in fiscal year 2000 and $30,217,000 in 
 59.10  fiscal year 2001. 
 59.11  [FEDERAL TANF FUNDS.] (1) In addition 
 59.12  to the Federal Temporary Assistance for 
 59.13  Needy Families (TANF) block grant funds 
 59.14  appropriated to the commissioner of 
 59.15  human services in Laws 1999, chapter 
 59.16  245, article 1, section 2, subdivision 
 59.17  10, federal TANF funds are appropriated 
 59.18  to the commissioner in amounts up to 
 59.19  $20,000,000 in fiscal year 2000 and 
 59.20  $80,440,000 in fiscal year 2001.  In 
 59.21  addition to these funds, the 
 59.22  commissioner may draw or transfer any 
 59.23  other appropriations of federal TANF 
 59.24  funds or transfers of federal TANF 
 59.25  funds that are enacted into state law. 
 59.26  (2) Of the amounts in clause (1), 
 59.27  $19,680,000 in fiscal year 2001 is for 
 59.28  the local intervention grants program 
 59.29  under Minnesota Statutes, section 
 59.30  256J.625 and related grant programs and 
 59.31  shall be expended as follows: 
 59.32  (a) $500,000 in fiscal year 2001 is for 
 59.33  a grant to the Southeast Asian MFIP 
 59.34  services collaborative to replicate in 
 59.35  a second location an existing model of 
 59.36  an intensive intervention transitional 
 59.37  employment training project which 
 59.38  serves TANF-eligible recipients and 
 59.39  which moves refugee and immigrant 
 59.40  welfare recipients unto unsubsidized 
 59.41  employment and leads to economic 
 59.42  self-sufficiency.  This is a one-time 
 59.43  appropriation. 
 59.44  (b) $500,000 in fiscal year 2001 is for 
 59.45  nontraditional career assistance and 
 59.46  training programs under Minnesota 
 59.47  Statutes, section 256K.30, subdivision 
 59.48  4.  This is a one-time appropriation. 
 59.49  (c) $18,680,000 is for local 
 59.50  intervention grants for 
 59.51  self-sufficiency program under 
 59.52  Minnesota Statutes, section 256J.625.  
 59.53  For fiscal years 2002 and 2003 the 
 59.54  commissioner of finance shall ensure 
 59.55  that the base level funding for the 
 59.56  local intervention grants program is 
 59.57  $27,180,000 each year. 
 59.58  (3) Of the amounts in clause (2), 
 59.59  paragraph (c) for local intervention 
 59.60  grants, $7,000,000 in fiscal year 2001 
 59.61  shall be transferred to the 
 59.62  commissioner of health for distribution 
 59.63  to county boards according to the 
 59.64  formula in Minnesota Statutes, section 
 59.65  256J.625, subdivision 3, to be used by 
 60.1   county public health boards to serve 
 60.2   families with incomes at or below 200 
 60.3   percent of the federal poverty 
 60.4   guidelines, in the manner specified by 
 60.5   Minnesota Statutes, section 145A.16, 
 60.6   subdivision 3, clauses (2) through 
 60.7   (6).  Training, evaluation and 
 60.8   technical assistance shall be provided 
 60.9   in accordance with Minnesota Statutes, 
 60.10  section 145A.16, subdivisions 5 to 7.  
 60.11  For fiscal years 2002 and 2003 the 
 60.12  commissioner of finance shall ensure 
 60.13  that the base level funding for this 
 60.14  activity is $7,000,000 each year. 
 60.15  (4) Of the amounts in clause (1), 
 60.16  $250,000 in fiscal year 2001 is 
 60.17  appropriated to the commissioner to 
 60.18  contract with the board of trustees of 
 60.19  the Minnesota state colleges and 
 60.20  universities to provide tuition waivers 
 60.21  to employees of health care and human 
 60.22  services providers located in the state 
 60.23  that are members of qualifying 
 60.24  consortia operating under Minnesota 
 60.25  Statutes, sections 116L.10 to 116L.15. 
 60.26  (5) Of the amounts in clause (1), 
 60.27  $320,000 in fiscal year 2001 is for 
 60.28  training job counselors about the MFIP 
 60.29  program.  For fiscal years 2002 and 
 60.30  2003 the commissioner of finance shall 
 60.31  ensure that the base level funding for 
 60.32  employment services includes $320,000 
 60.33  each year for this activity.  The 
 60.34  appropriations in this clause shall not 
 60.35  become part of the base for the 
 60.36  2004-2005 biennium. 
 60.37  (6) Of the amounts in clause (1), 
 60.38  $1,000,000 in fiscal year 2001 is for 
 60.39  out-of-wedlock pregnancy prevention 
 60.40  funds to serve children in 
 60.41  TANF-eligible families under Minnesota 
 60.42  Statutes, section 256K.35. For fiscal 
 60.43  years 2002 and 2003 the commissioner of 
 60.44  finance shall ensure that the base 
 60.45  level funding for this program is 
 60.46  $1,000,000 each year.  The 
 60.47  appropriations in this clause shall not 
 60.48  become part of the base for the 
 60.49  2004-2005 biennium. 
 60.50  (7) Of the amounts in clause (1), 
 60.51  $1,000,000 in fiscal year 2001 is to 
 60.52  provide services to TANF-eligible 
 60.53  families who are participating in the 
 60.54  supportive housing and managed care 
 60.55  pilot project under Minnesota Statutes, 
 60.56  section 256K.25.  For fiscal years 2002 
 60.57  and 2003 the commissioner of finance 
 60.58  shall ensure that the base level 
 60.59  funding for this project is $1,000,000 
 60.60  each year.  The appropriations in this 
 60.61  clause shall not become part of the 
 60.62  base for this project for the 2004-2005 
 60.63  biennium. 
 60.64  [TANF TRANSFER TO SOCIAL SERVICES.] 
 60.65  $7,500,000 is transferred from the 
 60.66  state's federal TANF block grant to the 
 61.1   state's federal Title XX block grant in 
 61.2   fiscal year 2001 and in fiscal year 
 61.3   2002, for purposes of increasing 
 61.4   services for families with children 
 61.5   whose incomes are at or below 200 
 61.6   percent of the federal poverty 
 61.7   guidelines.  Notwithstanding section 6, 
 61.8   this paragraph expires June 30, 2002. 
 61.9   [TANF MOE.] (a) In order to meet the 
 61.10  basic maintenance of effort (MOE) 
 61.11  requirements of the TANF block grant 
 61.12  specified under United States Code, 
 61.13  title 42, section 609(a)(7), the 
 61.14  commissioner may only report nonfederal 
 61.15  money expended for allowable activities 
 61.16  listed in the following clauses as TANF 
 61.17  MOE expenditures: 
 61.18  (1) MFIP cash and food assistance 
 61.19  benefits under Minnesota Statutes, 
 61.20  chapter 256J; 
 61.21  (2) the child care assistance programs 
 61.22  under Minnesota Statutes, sections 
 61.23  119B.03 and 119B.05, and county child 
 61.24  care administrative costs under 
 61.25  Minnesota Statutes, section 119B.15; 
 61.26  (3) state and county MFIP 
 61.27  administrative costs under Minnesota 
 61.28  Statutes, chapters 256J and 256K; 
 61.29  (4) state, county, and tribal MFIP 
 61.30  employment services under Minnesota 
 61.31  Statutes, chapters 256J and 256K; and 
 61.32  (5) expenditures made on behalf of 
 61.33  noncitizen MFIP recipients who qualify 
 61.34  for the medical assistance without 
 61.35  federal financial participation program 
 61.36  under Minnesota Statutes, section 
 61.37  256B.06, subdivision 4, paragraphs (d), 
 61.38  (e), and (j). 
 61.39  (b) The commissioner shall ensure that 
 61.40  sufficient qualified nonfederal 
 61.41  expenditures are made each year to meet 
 61.42  the state's TANF MOE requirements.  For 
 61.43  the activities listed in paragraph (a), 
 61.44  clauses (2) to (6), the commissioner 
 61.45  may only report expenditures that are 
 61.46  excluded from the definition of 
 61.47  assistance under Code of Federal 
 61.48  Regulations, title 45, section 260.31.  
 61.49  If nonfederal expenditures for the 
 61.50  programs and purposes listed in 
 61.51  paragraph (a) are insufficient to meet 
 61.52  the state's TANF MOE requirements, the 
 61.53  commissioner shall recommend additional 
 61.54  allowable sources of nonfederal 
 61.55  expenditures to the legislature, if the 
 61.56  legislature is or will be in session to 
 61.57  take action to specify additional 
 61.58  sources of nonfederal expenditures for 
 61.59  TANF MOE before a federal penalty is 
 61.60  imposed.  The commissioner shall 
 61.61  otherwise provide notice to the 
 61.62  legislative commission on planning and 
 61.63  fiscal policy under paragraph (d). 
 62.1   (c) If the commissioner uses authority 
 62.2   granted under Laws 1999, chapter 245, 
 62.3   article 1, section 10, or similar 
 62.4   authority granted by a subsequent 
 62.5   legislature, to meet the state's TANF 
 62.6   MOE requirements in a reporting period, 
 62.7   the commissioner shall inform the 
 62.8   chairs of the appropriate legislative 
 62.9   committees about all transfers made 
 62.10  under that authority for this purpose. 
 62.11  (d) If the commissioner determines that 
 62.12  nonfederal expenditures for the 
 62.13  programs under Minnesota Statutes, 
 62.14  section 256J.025, are insufficient to 
 62.15  meet TANF MOE expenditure requirements, 
 62.16  and if the legislature is not or will 
 62.17  not be in session to take timely action 
 62.18  to avoid a federal penalty, the 
 62.19  commissioner may report nonfederal 
 62.20  expenditures from other allowable 
 62.21  sources as TANF MOE expenditures after 
 62.22  the requirements of this paragraph are 
 62.23  met. 
 62.24  The commissioner may report nonfederal 
 62.25  expenditures in addition to those 
 62.26  specified under paragraph (a) as 
 62.27  nonfederal TANF MOE expenditures, but 
 62.28  only ten days after the commissioner of 
 62.29  finance has first submitted the 
 62.30  commissioner's recommendations for 
 62.31  additional allowable sources of 
 62.32  nonfederal TANF MOE expenditures to the 
 62.33  members of the legislative commission 
 62.34  on planning and fiscal policy for their 
 62.35  review. 
 62.36  (e) The commissioner of finance shall 
 62.37  not incorporate any changes in federal 
 62.38  TANF expenditures or nonfederal 
 62.39  expenditures for TANF MOE that may 
 62.40  result from reporting additional 
 62.41  allowable sources of nonfederal TANF 
 62.42  MOE expenditures under the interim 
 62.43  procedures in paragraph (d) into the 
 62.44  February or November forecasts required 
 62.45  under Minnesota Statutes, section 
 62.46  16A.103, unless the commissioner of 
 62.47  finance has approved the additional 
 62.48  sources of expenditures under paragraph 
 62.49  (d). 
 62.50  (f) The provisions of paragraphs (a) to 
 62.51  (e) supersede any contrary provisions 
 62.52  in Laws 1999, chapter 245, article 1, 
 62.53  section 2, subdivision 10. 
 62.54  (g) The provisions of Minnesota 
 62.55  Statutes, section 256.011, subdivision 
 62.56  3, which require that federal grants or 
 62.57  aids secured or obtained under that 
 62.58  subdivision be used to reduce any 
 62.59  direct appropriations provided by law 
 62.60  do not apply if the grants or aids are 
 62.61  federal TANF funds. 
 62.62  (h) Notwithstanding section 6 of this 
 62.63  article, paragraphs (a) to (g) expire 
 62.64  June 30, 2003. 
 63.1   (i) Paragraphs (a) to (h) are effective 
 63.2   the day following final enactment. 
 63.3   (a) Assistance to Families Grants
 63.4        9,628,000     (2,305,000)                
 63.5   (b) Work Grants
 63.6           -0-          (250,000)
 63.7   (c) AFDC and Other Assistance
 63.8       20,000,000     30,734,000 
 63.9   [TRANSFERS TO MINNESOTA HOUSING FINANCE 
 63.10  AGENCY.] (a) By June 30, 2001, the 
 63.11  commissioner shall transfer $50,000,000 
 63.12  of the general funds appropriated under 
 63.13  this paragraph to the Minnesota housing 
 63.14  finance agency for transfer to the 
 63.15  housing development fund.  The program 
 63.16  funded by this transfer shall be known 
 63.17  as the "Bruce F. Vento Year 2000 
 63.18  Affordable Housing Program." Up to 
 63.19  $15,000,000 may be transferred in 
 63.20  fiscal year 2000. 
 63.21  (b) Of the funds transferred in 
 63.22  paragraph (a), $5,000,000 in fiscal 
 63.23  year 2001 and $15,000,000 in fiscal 
 63.24  year 2002 is for a loan to Habitat for 
 63.25  Humanity of Minnesota, Inc.  The loan 
 63.26  shall be an interest-free deferred 
 63.27  loan.  The loan shall become due and 
 63.28  payable in the event and to the extent 
 63.29  that Habitat for Humanity of Minnesota, 
 63.30  Inc. does not invest repayments and 
 63.31  prepayment of mortgage loans financed 
 63.32  with this appropriation in new 
 63.33  mortgages for additional homebuyers 
 63.34  through Habitat for Humanity of 
 63.35  Minnesota, Inc.  To the extent 
 63.36  practicable, funding must be allocated 
 63.37  to Habitat for Humanity chapters on the 
 63.38  basis of the number of MFIP households 
 63.39  residing within a chapter's service 
 63.40  area compared to the statewide total of 
 63.41  MFIP households and on the basis of a 
 63.42  chapter's capacity. 
 63.43  (c) Of the funds transferred in 
 63.44  paragraph (a), $15,000,000 in fiscal 
 63.45  year 2001 and $15,000,000 in fiscal 
 63.46  year 2002 is for the affordable rental 
 63.47  investment fund program under Minnesota 
 63.48  Statutes, section 462A.21, subdivision 
 63.49  8b.  To the extent practicable, the 
 63.50  number of units financed with the 
 63.51  appropriation under this paragraph 
 63.52  within a city, county, or region shall 
 63.53  reflect the number of MFIP households 
 63.54  residing within the city, county, or 
 63.55  region compared to the statewide total 
 63.56  of MFIP households.  This appropriation 
 63.57  must be used to finance rental housing 
 63.58  units that serve families: 
 63.59  (1) receiving MFIP benefits under 
 63.60  Minnesota Statutes, section 256J.01, or 
 63.61  its successor program; and 
 64.1   (2) who have lost eligibility for MFIP 
 64.2   due to increased income from employment 
 64.3   or due to the collection of child or 
 64.4   spousal support under part D of title 
 64.5   IV of the Social Security Act for 
 64.6   reasons other than disqualification 
 64.7   from MFIP due to fraud. 
 64.8   Units produced with this appropriation 
 64.9   must remain affordable for a 30-year 
 64.10  period. 
 64.11  In order to coordinate the availability 
 64.12  of housing developed with the 
 64.13  appropriation under this paragraph with 
 64.14  MFIP families in need of affordable 
 64.15  housing, the commissioner of the 
 64.16  Minnesota housing finance agency, with 
 64.17  the assistance of the commissioner of 
 64.18  human services, shall establish 
 64.19  cooperative relationships with county 
 64.20  agencies as defined in Minnesota 
 64.21  Statutes, section 256J.08, local 
 64.22  employment and training service 
 64.23  providers as defined in Minnesota 
 64.24  Statutes, section 256J.49, local social 
 64.25  service agencies, or other 
 64.26  organizations that provide assistance 
 64.27  to MFIP households.  
 64.28  The commissioner of the Minnesota 
 64.29  housing finance agency shall develop 
 64.30  strategies to promote occupancy of the 
 64.31  units financed by the appropriation 
 64.32  under this paragraph by households most 
 64.33  in need of subsidized housing.  The 
 64.34  strategies shall include provisions 
 64.35  that encourage households to move into 
 64.36  homeownership or unsubsidized housing 
 64.37  as the household secures stable 
 64.38  employment and achieves 
 64.39  self-sufficiency.  The commissioner of 
 64.40  the Minnesota housing finance agency 
 64.41  shall consult with interested parties 
 64.42  in developing these strategies.  
 64.43  (d) The commissioner of the Minnesota 
 64.44  housing finance agency and the 
 64.45  commissioner of human services shall 
 64.46  jointly prepare and submit a report to 
 64.47  the governor and the legislature on the 
 64.48  results of the funding provided under 
 64.49  this section.  The report shall include:
 64.50  (1) information on the number of units 
 64.51  produced; 
 64.52  (2) the household size and income of 
 64.53  the occupants of the units at initial 
 64.54  occupancy; and 
 64.55  (3) to the extent the information is 
 64.56  available, measures related to the 
 64.57  occupants' attachment to the workforce 
 64.58  and public assistance usage, and number 
 64.59  of occupant moves. 
 64.60  The report must be submitted annually 
 64.61  beginning January 15, 2003. 
 64.62  (e) Section 6, sunset of uncodified 
 65.1   language, does not apply to paragraphs 
 65.2   (a) to (d).  Paragraphs (a) to (d) are 
 65.3   effective the day following final 
 65.4   enactment. 
 65.5   [WORKING FAMILY CREDIT.] (a) On a 
 65.6   regular basis, the commissioner of 
 65.7   revenue, with the assistance of the 
 65.8   commissioner of human services, shall 
 65.9   calculate the value of the refundable 
 65.10  portion of the Minnesota working family 
 65.11  credits provided under Minnesota 
 65.12  Statutes, section 290.0671, that 
 65.13  qualifies for federal reimbursement 
 65.14  from the temporary assistance to needy 
 65.15  families block grant.  The commissioner 
 65.16  of revenue shall provide the 
 65.17  commissioner of human services with 
 65.18  such expenditure records and 
 65.19  information as are necessary to support 
 65.20  draws of federal funds.  The 
 65.21  commissioner of human services shall 
 65.22  reimburse the commissioner of revenue 
 65.23  for the costs of providing the 
 65.24  information required by this paragraph. 
 65.25  (b) Federal TANF funds, as specified in 
 65.26  this paragraph, are appropriated to the 
 65.27  commissioner of human services based on 
 65.28  calculations under paragraph (a) of 
 65.29  working family tax credit expenditures 
 65.30  that qualify for reimbursement from the 
 65.31  TANF block grant for income tax refunds 
 65.32  payable in federal fiscal years 
 65.33  beginning October 1, 1999.  The draws 
 65.34  of federal TANF funds shall be made on 
 65.35  a regular basis based on calculations 
 65.36  of credit expenditures by the 
 65.37  commissioner of revenue.  Up to the 
 65.38  following amounts of federal TANF draws 
 65.39  are appropriated to the commissioner of 
 65.40  human services to deposit into the 
 65.41  general fund:  in fiscal year 2000, 
 65.42  $30,957,000; and in fiscal year 2001, 
 65.43  $33,895,000. 
 65.44  (d) General Assistance
 65.45          557,000    (3,134,000)
 65.46  (e) Minnesota Supplemental Aid
 65.47          324,000       323,000 
 65.48                             ARTICLE 7 
 65.49                         BUDGET PREPARATION 
 65.50     Section 1.  Minnesota Statutes 2000, section 3.3005, 
 65.51  subdivision 2, is amended to read: 
 65.52     Subd. 2.  [GOVERNOR'S REQUEST TO LEGISLATURE.] A state 
 65.53  agency shall not expend money received by it under federal law 
 65.54  for any purpose unless a request to spend federal money from 
 65.55  that source for that purpose in that fiscal year has been 
 65.56  submitted by the governor to the legislature as a part of a 
 66.1   budget request submitted during or within ten days before the 
 66.2   start of a regular legislative session, or unless specifically 
 66.3   authorized by law or as provided by this section.  A budget 
 66.4   request submitted to the legislature according to this 
 66.5   subdivision must be submitted at least 20 days before the 
 66.6   deadline set by the legislature for legislative budget 
 66.7   committees to act on finance bills.  
 66.8      Sec. 2.  Minnesota Statutes 2000, section 3.3005, is 
 66.9   amended by adding a subdivision to read: 
 66.10     Subd. 3b.  [INCREASE IN AMOUNT.] If a request to spend 
 66.11  federal money is included in a governor's budget request and 
 66.12  approved according to subdivisions 2 and 2a or subdivision 5 and 
 66.13  the amount of money available increases after the request is 
 66.14  made and authorized, the additional amount may be allotted for 
 66.15  expenditure after a revised request is submitted according to 
 66.16  subdivision 2, or the requirements of subdivision 5 are met. 
 66.17     Sec. 3.  Minnesota Statutes 2000, section 3.98, subdivision 
 66.18  2, is amended to read: 
 66.19     Subd. 2.  [CONTENTS.] (a) The fiscal note, where possible, 
 66.20  shall: 
 66.21     (1) cite the effect in dollar amounts; 
 66.22     (2) cite the statutory provisions affected; 
 66.23     (3) estimate the increase or decrease in revenues or 
 66.24  expenditures; 
 66.25     (4) include the costs which may be absorbed without 
 66.26  additional funds; and 
 66.27     (5) include the assumptions used in determining the cost 
 66.28  estimates; and 
 66.29     (6) specify any long-range implication. 
 66.30     (b) The fiscal note may comment on technical or mechanical 
 66.31  defects in the bill but shall express no opinions concerning the 
 66.32  merits of the proposal. 
 66.33     Sec. 4.  Minnesota Statutes 2000, section 16A.10, 
 66.34  subdivision 2, is amended to read: 
 66.35     Subd. 2.  [BY OCTOBER 15 AND NOVEMBER 30 AGENCY BUDGET 
 66.36  INFORMATION.] (a) By October 15 of each even-numbered year, an 
 67.1   agency must file the following with the commissioner:  
 67.2      (1) budget estimates for the most recent and current fiscal 
 67.3   years; 
 67.4      (2) its upcoming biennial budget estimates; 
 67.5      (3) a comprehensive and integrated statement of agency 
 67.6   missions and outcome and performance measures; and 
 67.7      (4) a concise explanation of any planned changes in the 
 67.8   level of services or new activities. 
 67.9      The commissioner shall prepare and file the budget 
 67.10  estimates for an agency failing to file them.  
 67.11     (b) Between October 15 and November 30, the commissioner 
 67.12  must hold at least one open public meeting with each agency to 
 67.13  discuss that agency's budget information, agency performance 
 67.14  data, and any proposed changes in level of services and new 
 67.15  activities. 
 67.16     (c) By November 30, the commissioner shall send the final 
 67.17  budget format, agency budget estimates for the next biennium, 
 67.18  and copies of the filed material to the ways and means and 
 67.19  finance committees, except that the commissioner shall not be 
 67.20  required to transmit information that identifies executive 
 67.21  branch budget decision items.  At this time, a list of each 
 67.22  employee's name, title, and salary must be available to the 
 67.23  legislature, either on paper or through electronic retrieval. 
 67.24     Sec. 5.  Minnesota Statutes 2000, section 16A.103, 
 67.25  subdivision 1, is amended to read: 
 67.26     Subdivision 1.  [STATE REVENUE AND EXPENDITURES.] In 
 67.27  February and November each year, the commissioner shall prepare 
 67.28  a forecast of state revenue and expenditures.  The November 
 67.29  forecast must be delivered to the legislature and governor no 
 67.30  later than the end of the first week of December.  The February 
 67.31  forecast must be delivered to the legislature and governor by 
 67.32  the end of February.  Forecasts must be delivered to the 
 67.33  legislature and governor on the same day.  If requested by the 
 67.34  legislative commission on planning and fiscal policy, delivery 
 67.35  to the legislature must include a presentation to the commission.
 67.36  When forecasts are delivered to the legislature, the 
 68.1   commissioner shall reconcile the general fund balance to the end 
 68.2   of session legislative tracking documents and detail any 
 68.3   difference by omnibus budget bill jurisdiction for the current 
 68.4   and next biennium.  A written explanation of differences must be 
 68.5   provided to the chairs of the senate finance committee and the 
 68.6   house of representatives ways and means committee and 
 68.7   legislative fiscal staff.  The commissioner shall also deliver a 
 68.8   general fund balance and reconciliation within one week of the 
 68.9   end of each legislative session.  At least one week before 
 68.10  delivery of a general fund balance report, the commissioner 
 68.11  shall notify the chairs of the senate finance committee and 
 68.12  house ways and means committee of any ways in which the format 
 68.13  of the fund balance or treatment of similar items in the fund 
 68.14  balance will differ from the previous report. 
 68.15     Sec. 6.  Minnesota Statutes 2000, section 16A.103, 
 68.16  subdivision 1a, is amended to read: 
 68.17     Subd. 1a.  [FORECAST PARAMETERS.] The forecast must assume 
 68.18  the continuation of current laws and reasonable estimates of 
 68.19  projected growth in the national and state economies and 
 68.20  affected populations.  Revenue must be estimated for all sources 
 68.21  provided for in current law.  Expenditures must be estimated for 
 68.22  all obligations imposed by law and those projected to occur as a 
 68.23  result of inflation and variables outside the control of the 
 68.24  legislature.  The forecast must include a set-aside amount that 
 68.25  reflects cost increases as a result of inflation in delivering 
 68.26  the current-law level of services.  This amount must not exceed 
 68.27  the amount obtained by applying the Consumer Price Index to 
 68.28  those state expenditures that reflect payments for services at 
 68.29  the state or local level.  An amount to reflect increases in 
 68.30  providing services must not be applied to any appropriation for 
 68.31  which the law or process determining that current-law 
 68.32  appropriation amount already includes a factor to reflect those 
 68.33  cost increases. 
 68.34     Sec. 7.  Minnesota Statutes 2000, section 16A.152, 
 68.35  subdivision 7, is amended to read: 
 68.36     Subd. 7.  [DELAY; REDUCTION.] The commissioner may delay 
 69.1   paying up to 15 percent of an appropriation to a special taxing 
 69.2   district or a system of higher education in that entity's fiscal 
 69.3   year for up to 60 days after the start of its next fiscal year.  
 69.4   The delayed amount is subject to allotment reduction under 
 69.5   subdivision 1 4. 
 69.6      Sec. 8.  Laws 1999, chapter 250, article 1, section 34, is 
 69.7   amended to read: 
 69.8      Sec. 34.  [STATEWIDE SYSTEMS ACCOUNT.] 
 69.9      Subdivision 1.  [CONTINUATION.] The statewide systems 
 69.10  account is a separate account in the general fund.  All money 
 69.11  resulting from billings for statewide systems services must be 
 69.12  deposited in the account.  For the purposes of this section, 
 69.13  statewide systems includes the state accounting system, payroll 
 69.14  system, human resources system, procurement system, and related 
 69.15  information access systems. 
 69.16     Subd. 2.  [BILLING PROCEDURES.] The commissioner of finance 
 69.17  may bill up to $7,520,000 in fiscal year 2000 2002 and 
 69.18  $7,520,000 in fiscal year 2001 2003 for statewide systems 
 69.19  services provided to state agencies, judicial branch agencies, 
 69.20  the University of Minnesota, the Minnesota state colleges and 
 69.21  universities, and other entities.  Billing must be based only on 
 69.22  usage of services relating to statewide systems provided by the 
 69.23  intertechnologies division.  Each agency shall transfer from 
 69.24  agency operating appropriations to the statewide systems account 
 69.25  the amount billed by the commissioner.  Billing policies and 
 69.26  procedures related to statewide systems services must be 
 69.27  developed by the commissioner of finance in consultation with 
 69.28  the commissioners of employee relations and administration, the 
 69.29  University of Minnesota, and the Minnesota state colleges and 
 69.30  universities. 
 69.31     Subd. 3.  [APPROPRIATION.] Money transferred into the 
 69.32  account is appropriated to the commissioner of finance to pay 
 69.33  for statewide systems services during fiscal years 2000 2002 and 
 69.34  2001 2003. 
 69.35                             ARTICLE 8 
 69.36                           MISCELLANEOUS 
 70.1      Section 1.  [4A.11] [SELF-SUFFICIENCY STANDARD.] 
 70.2      By January 1, 2002, and every two years thereafter, the 
 70.3   office shall calculate a dollar amount for self-sufficiency in 
 70.4   Minnesota.  A self-sufficiency standard measures how much income 
 70.5   is needed for a family to meet its basic needs.  A family's 
 70.6   basic needs include, but are not limited to, housing, food, 
 70.7   child care, transportation, health care, taxes, and clothing.  
 70.8   Expenses such as education or job training, debt repayment, 
 70.9   savings, vacation, entertainment, restaurant meals, or holiday 
 70.10  expenses are not included in the standard. 
 70.11     The self-sufficiency standard must be calculated for 
 70.12  multiple family sizes and the costs used for the calculation 
 70.13  must take into account geographical variation and the age and 
 70.14  number of children in the family. 
 70.15     The calculations, methodology used, and sources of costs 
 70.16  used and the standards must be published in a self-sufficiency 
 70.17  report for public use.  By October 1, 2002, the office must make 
 70.18  the self-sufficiency report available to the legislature, the 
 70.19  governor's workforce development council, state agencies, and 
 70.20  secondary and post-secondary educational institutions, and 
 70.21  otherwise make the report generally available to the public.  
 70.22  The report must be posted on each of the above mentioned state 
 70.23  agencies' Web sites, or linked to the report by the Internet. 
 70.24     Sec. 2.  Minnesota Statutes 2000, section 8.15, is amended 
 70.25  by adding a subdivision to read: 
 70.26     Subd. 6.  [TRUNK HIGHWAY COSTS.] On July 1, 2001, the 
 70.27  commissioner of finance shall transfer $1,118,000 from the trunk 
 70.28  highway fund to the general fund.  On July 1, 2002, the 
 70.29  commissioner of finance shall transfer $1,151,000 from the trunk 
 70.30  highway fund to the general fund.  These amounts are 
 70.31  appropriated from the general fund to the attorney general in 
 70.32  fiscal years 2002 and 2003.  Effective for fiscal year 2004 and 
 70.33  thereafter, this amount shall be annually adjusted by the rate 
 70.34  of inflation determined under section 477A.145 and transferred 
 70.35  from the trunk highway fund to the general fund.  When preparing 
 70.36  the budget for the 2004-2005 biennium, the commissioner of 
 71.1   finance shall adjust the base appropriations for the attorney 
 71.2   general's office by this amount.  The purpose of this transfer 
 71.3   is to pay for the cost of legal service provided by the attorney 
 71.4   general to the department of transportation for trunk highway 
 71.5   purposes. 
 71.6      Sec. 3.  [8.151] [CHARGES; CERTAIN AGENCIES.] 
 71.7      Subdivision 1.  [TRANSFERS.] On July 1, 2001, the 
 71.8   commissioner of finance shall transfer the general fund 
 71.9   appropriations to the attorney general from the following 
 71.10  agencies in the following amounts: 
 71.11  department of children, families, and learning     $  243,000
 71.12  department of corrections                          $  161,000
 71.13  department of health                               $  457,000
 71.14  housing finance agency                             $  454,000
 71.15  department of human services                       $2,064,000
 71.16  iron range resources rehabilitation board          $   63,000 
 71.17  Minnesota state colleges and universities          $1,086,000 
 71.18  department of natural resources                    $1,348,000
 71.19  petroleum tank release board                       $  130,000 
 71.20  pollution control agency                           $1,431,000
 71.21  department of public safety                        $  126,000
 71.22     On July 1, 2002, the commissioner of finance shall transfer 
 71.23  the general fund appropriations to the attorney general from the 
 71.24  following agencies in the following amounts: 
 71.25  department of children, families, and learning     $  243,000
 71.26  department of corrections                          $  161,000
 71.27  department of health                               $  471,000
 71.28  housing finance agency                             $  454,000
 71.29  department of human services                       $2,126,000
 71.30  iron range resources rehabilitation board          $   63,000 
 71.31  Minnesota state colleges and universities          $1,086,000 
 71.32  department of natural resources                    $1,389,000
 71.33  petroleum tank release board                       $  134,000 
 71.34  pollution control agency                           $1,474,000
 71.35  department of public safety                        $  126,000
 71.36     The attorney general may not access charges for legal 
 72.1   service to these agencies performed after June 30, 2001.  The 
 72.2   attorney general may assess charges for services performed prior 
 72.3   to this date but not yet billed.  Notwithstanding any law to the 
 72.4   contrary, these departments and agencies may reallocate 
 72.5   resources from other operating funds within their budgets 
 72.6   between appropriation accounts to compensate for these general 
 72.7   fund reductions.  When preparing the budget for the 2004-2005 
 72.8   biennium, the commissioner of finance shall adjust the base 
 72.9   appropriations for the attorney general's office and the named 
 72.10  agencies by these changes. 
 72.11     Effective July 1, 2001, and July 1, 2002, a direct 
 72.12  appropriation from the state government special revenue fund in 
 72.13  the amount of $1,159,000 each year is made to the attorney 
 72.14  general's office to provide legal services for the board of 
 72.15  medical practice.  When preparing for the 2004-2005 biennium, 
 72.16  the commissioner of finance shall adjust the base appropriations 
 72.17  for the attorney general's office by these amounts. 
 72.18     Subd. 2.  [ADDITIONAL TRANSFERS.] On July 1, 2001, and each 
 72.19  year thereafter, the commissioner of finance shall transfer to 
 72.20  the general fund from the following funds the following amounts: 
 72.21  teachers retirement fund                           $  44,000
 72.22  public employees retirement fund                   $ 134,000
 72.23  Minnesota state retirement fund                    $  20,000
 72.24     These amounts are appropriated from the general fund to the 
 72.25  attorney general in fiscal years 2002 and 2003.  When preparing 
 72.26  the budget for the 2004-2005 biennium, the commissioner of 
 72.27  finance shall adjust the base appropriations for the attorney 
 72.28  general's office by these amounts. 
 72.29     Sec. 4.  Minnesota Statutes 2000, section 16B.25, 
 72.30  subdivision 2, is amended to read: 
 72.31     Subd. 2.  [NOTICE.] Lost or abandoned property found on 
 72.32  state lands is placed in the custody of the commissioner.  If 
 72.33  the rightful owner is known, the owner must be notified by 
 72.34  certified mail and may reclaim the property on paying the 
 72.35  expenses of the search.  If the owner is unknown, the 
 72.36  commissioner must give two weeks' published notice in the county 
 73.1   where the property was found.  Within six months following 
 73.2   publication, the rightful owner may receive the property on 
 73.3   paying the search expenses.  
 73.4      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 73.5   following final enactment. 
 73.6      Sec. 5.  Minnesota Statutes 2000, section 16B.335, 
 73.7   subdivision 3, is amended to read: 
 73.8      Subd. 3.  [PREDESIGN REQUIREMENT.] The definitions in 
 73.9   paragraphs (a) and (b) apply to this section. 
 73.10     (a) "Predesign" means the stage in the development of a 
 73.11  project during which the purpose, scope, cost, and schedule of 
 73.12  the complete project are defined and instructions to design 
 73.13  professionals are produced.  
 73.14     (b) "Design" means the stage in the development of a 
 73.15  project during which schematic, design development, and contract 
 73.16  documents are produced. 
 73.17     (c) A recipient to whom an appropriation is made for a 
 73.18  project subject to review under subdivision 1 or notice under 
 73.19  subdivision 2 shall prepare a predesign package and submit it to 
 73.20  the commissioner for review and recommendation before proceeding 
 73.21  with design activities.  The commissioner must complete the 
 73.22  review and recommendation within ten working days after 
 73.23  receiving it.  Failure to review and recommend within the ten 
 73.24  days is considered a positive recommendation.  The predesign 
 73.25  package must be sufficient to define the purpose, scope, cost, 
 73.26  and schedule of the project and must demonstrate that the 
 73.27  project has been analyzed according to appropriate space needs 
 73.28  standards.  This subdivision does not apply to local government 
 73.29  or political subdivision projects with a construction cost of 
 73.30  less than $5,000,000 or any other capital projects with a 
 73.31  construction cost of less than $750,000. 
 73.32     Sec. 6.  Minnesota Statutes 2000, section 16B.88, 
 73.33  subdivision 2, is amended to read: 
 73.34     Subd. 2.  [COOPERATION WITH OTHER GROUPS.] The director 
 73.35  shall cooperate with national, state, and local groups in 
 73.36  collecting information on federal, state, and private resources 
 74.1   which may encourage and improve volunteer projects within the 
 74.2   state.  The office shall coordinate its research and other work 
 74.3   on citizen engagement with the board of government innovation 
 74.4   and cooperation, the Minnesota extension service, and Project 
 74.5   Public Life, Humphrey Institute, University of Minnesota. 
 74.6      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 74.7   following final enactment. 
 74.8      Sec. 7.  Minnesota Statutes 2000, section 16C.22, is 
 74.9   amended to read: 
 74.10     16C.22 [DISTRICT HEATING.] 
 74.11     Notwithstanding any other law, general or special, the 
 74.12  commissioner is authorized to enter into or approve a written 
 74.13  agreement not to exceed 31 years with a district heating or 
 74.14  cooling utility that will specify, but not be limited to, the 
 74.15  appropriate terms and conditions for the interchange of district 
 74.16  heating or cooling services. 
 74.17     Sec. 8.  Minnesota Statutes 2000, section 16E.04, 
 74.18  subdivision 2, is amended to read: 
 74.19     Subd. 2.  [RESPONSIBILITIES.] (a) In addition to other 
 74.20  activities prescribed by law, the office shall carry out the 
 74.21  duties set out in this subdivision. 
 74.22     (b) The office shall develop and establish a state 
 74.23  information architecture to ensure that further state agency 
 74.24  development and purchase of information and communications 
 74.25  systems, equipment, and services is designed to ensure that 
 74.26  individual agency information systems complement and do not 
 74.27  needlessly duplicate or conflict with the systems of other 
 74.28  agencies.  When state agencies have need for the same or similar 
 74.29  public data, the commissioner, in coordination with the affected 
 74.30  agencies, shall promote the most efficient and cost-effective 
 74.31  method of producing and storing data for or sharing data between 
 74.32  those agencies.  The development of this information 
 74.33  architecture must include the establishment of standards and 
 74.34  guidelines to be followed by state agencies. 
 74.35     (c) The office shall assist state agencies in the planning 
 74.36  and management of information systems so that an individual 
 75.1   information system reflects and supports the state agency's 
 75.2   mission and the state's requirements and functions. 
 75.3      (d) The office shall review agency requests for legislative 
 75.4   appropriations for the development or purchase of information 
 75.5   systems equipment or software. 
 75.6      (e) The office shall review major purchases of information 
 75.7   systems equipment to: 
 75.8      (1) ensure that the equipment follows the standards and 
 75.9   guidelines of the state information architecture; 
 75.10     (2) ensure that the equipment is consistent with the 
 75.11  information management principles adopted by the information 
 75.12  policy council; 
 75.13     (3) evaluate whether the agency's proposed purchase 
 75.14  reflects a cost-effective policy regarding volume purchasing; 
 75.15  and 
 75.16     (4) ensure that the equipment is consistent with other 
 75.17  systems in other state agencies so that data can be shared among 
 75.18  agencies, unless the office determines that the agency 
 75.19  purchasing the equipment has special needs justifying the 
 75.20  inconsistency. 
 75.21     (f) The office shall review the operation of information 
 75.22  systems by state agencies and provide advice and assistance to 
 75.23  ensure that these systems are operated efficiently and 
 75.24  continually meet the standards and guidelines established by the 
 75.25  office.  The standards and guidelines must emphasize uniformity 
 75.26  that encourages information interchange, open systems 
 75.27  environments, and portability of information whenever 
 75.28  practicable and consistent with an agency's authority and 
 75.29  chapter 13.  The office, in consultation with the 
 75.30  intergovernmental information systems advisory council and the 
 75.31  legislative reference library, shall recommend specific 
 75.32  standards and guidelines for each state agency within a time 
 75.33  period fixed by the office in regard to the following: 
 75.34     (1) establishing methods and systems directed at reducing 
 75.35  and ultimately eliminating redundant storage of data; and 
 75.36     (2) establishing information sales systems that utilize 
 76.1   licensing and royalty agreements to the greatest extent 
 76.2   possible, together with procedures for agency denial of requests 
 76.3   for licenses or royalty agreements by commercial users or 
 76.4   resellers of the information.  Section 3.751 does not apply to 
 76.5   those licensing and royalty agreements, and the agreements must 
 76.6   include provisions that section 3.751 does not apply and that 
 76.7   the state is immune from liability under the agreement. 
 76.8      (g) The office shall conduct a comprehensive review at 
 76.9   least every three years of the information systems investments 
 76.10  that have been made by state agencies and higher education 
 76.11  institutions.  The review must include recommendations on any 
 76.12  information systems applications that could be provided in a 
 76.13  more cost-beneficial manner by an outside source.  The office 
 76.14  must report the results of its review to the legislature and the 
 76.15  governor. 
 76.16     (h) The office shall report to the legislature by January 
 76.17  15 of each year on progress in implementing paragraph (f), 
 76.18  clauses (1) and (2). 
 76.19     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 76.20  following final enactment. 
 76.21     Sec. 9.  [16E.09] [TECHNOLOGY ENTERPRISE FUND.] 
 76.22     Subdivision 1.  [TECHNOLOGY ENTERPRISE FUND.] A technology 
 76.23  enterprise fund is established.  Money deposited in the fund is 
 76.24  appropriated to the commissioner of administration for the 
 76.25  purpose of funding technology projects and programs among 
 76.26  government entities that support cooperation, innovation, and 
 76.27  efficiency; promoting shared use of technology and technology 
 76.28  standards; and assuring that citizens throughout the state have 
 76.29  the opportunity to use electronic government services.  A 
 76.30  portion of revenues from the sale of information technology 
 76.31  surplus equipment or data, of funds collected from rental of 
 76.32  communication tower space, of refunds from information 
 76.33  technology services or purchases, and from savings generated by 
 76.34  information technology and telecommunications projects may be 
 76.35  deposited into the fund upon agreement by the commissioner of 
 76.36  administration and the executive of the government entity 
 77.1   generating those funds.  The commissioner of administration may 
 77.2   accept contributions from other entities or other gifts and 
 77.3   grants into the fund.  The transfer of funds between state 
 77.4   agencies is subject to the approval of the commissioner of 
 77.5   finance.  The commissioner of finance shall notify the chairs of 
 77.6   the committees funding the affected state agencies of such 
 77.7   transfers.  Funds are available until spent. 
 77.8      Subd. 2.  [TECHNOLOGY ENTERPRISE BOARD.] A technology 
 77.9   enterprise board is established to advise the state chief 
 77.10  information officer, the office of technology, the governor, the 
 77.11  executive branch, and the legislature regarding information 
 77.12  technology funding and expenditures from the technology 
 77.13  enterprise fund.  The board shall consist of up to 18 members 
 77.14  representing public and private entities with general expertise 
 77.15  in information technology and telecommunications initiatives and 
 77.16  planning.  The state chief information officer shall act as 
 77.17  chair and the office of technology shall provide necessary staff 
 77.18  support.  Nonlegislator members shall be appointed by the 
 77.19  governor, including one nominee representing the state executive 
 77.20  council, one nominee representing the supreme court, and one 
 77.21  nominee representing the higher education advisory council; and 
 77.22  seven at-large members representing the private sector with 
 77.23  experience in business.  The speaker of the house of 
 77.24  representatives and the senate subcommittee on committees shall 
 77.25  each appoint two legislators to the board.  Legislator members 
 77.26  serve at the pleasure of the appointing authority.  Membership 
 77.27  terms, compensation, and removal of nonlegislator board members 
 77.28  are governed by section 15.0575, except that terms are three 
 77.29  years. 
 77.30     Sec. 10.  Minnesota Statutes 2000, section 116L.16, is 
 77.31  amended to read: 
 77.32     116L.16 [DISTANCE-WORK GRANTS.] 
 77.33     The job skills partnership board may make grants-in-aid for 
 77.34  distance-work projects.  The purpose of the grants is to promote 
 77.35  distance-work projects involving technology in rural areas and 
 77.36  may include a consortium of organizations partnering in the 
 78.1   development of rural technology industry.  Grants may be used to 
 78.2   identify and train rural workers in technology, act as a 
 78.3   catalyst to bring together employers and rural employees to 
 78.4   perform distance work, and provide rural workers with physical 
 78.5   connections to telecommunications infrastructure, where 
 78.6   necessary, in order to be self-employed or employed from their 
 78.7   homes or satellite offices.  Grants must be made according to 
 78.8   sections 116L.02 and 116L.04, except that: 
 78.9      (1) the business match may include, but is not limited 
 78.10  to, office space; additional management or technology staff 
 78.11  costs; start-up equipment costs such as telecommunications 
 78.12  infrastructure, additional software, or computer upgrades; 
 78.13  consulting fees for implementation of distance-work policies or 
 78.14  identification and skill assessment of potential employees; and 
 78.15  the joint financial contribution of two or more businesses 
 78.16  acting as a consortium; 
 78.17     (2) cash or in-kind contributions by partnering 
 78.18  organizations may be used as a match; 
 78.19     (3) eligible grantees may be educational or nonprofit 
 78.20  educational training organizations; and 
 78.21     (4) grants-in-aid may be packaged with loans under section 
 78.22  116L.06, subdivision 6; and 
 78.23     (5) with respect to grants serving as a catalyst to bring 
 78.24  together employers and rural employees to perform distance work, 
 78.25  the match does not have to be one-to-one. 
 78.26     The board shall, to the extent there are sufficient 
 78.27  applications, make grant awards to as many parts of the state as 
 78.28  possible.  Subject to the requirement for geographic 
 78.29  distribution of grants, preference shall be given to grant 
 78.30  applications that provide the most cost-effective training 
 78.31  proposals, that provide the best prospects for high-paying jobs 
 78.32  with high retention rates, or that are from more economically 
 78.33  distressed rural areas or communities. 
 78.34     Grantees must meet reporting and evaluation requirements 
 78.35  established by the board. 
 78.36     Sec. 11.  Minnesota Statutes 2000, section 181.945, is 
 79.1   amended to read: 
 79.2      181.945 [LEAVE FOR BONE MARROW DONATIONS AND ORGAN 
 79.3   DONATION.] 
 79.4      Subdivision 1.  [DEFINITIONS.] (a) For the purposes of this 
 79.5   section, the following terms have the meanings given to them in 
 79.6   this subdivision. 
 79.7      (b) "Employee" means a person who performs services for 
 79.8   hire for an employer, for an average of 20 or more hours per 
 79.9   week, and includes all individuals employed at any site owned or 
 79.10  operated by an employer.  Employee does not include an 
 79.11  independent contractor. 
 79.12     (c) "Employer" means a person or entity that employs 20 or 
 79.13  more employees at at least one site and includes an individual, 
 79.14  corporation, partnership, association, nonprofit organization, 
 79.15  group of persons, state, county, town, city, school district, or 
 79.16  other governmental subdivision. 
 79.17     Subd. 2.  [LEAVE; BONE MARROW DONATIONS.] An employer must 
 79.18  grant paid leaves of absence to an employee who seeks to undergo 
 79.19  a medical procedure to donate bone marrow.  The combined length 
 79.20  of the leaves shall be determined by the employee, but may not 
 79.21  exceed 40 work hours, unless agreed to by the employer.  The 
 79.22  employer may require verification by a physician of the purpose 
 79.23  and length of each leave requested by the employee to donate 
 79.24  bone marrow.  If there is a medical determination that the 
 79.25  employee does not qualify as a bone marrow donor, the paid leave 
 79.26  of absence granted to the employee prior to that medical 
 79.27  determination is not forfeited. 
 79.28     Subd. 2a.  [LEAVE; ORGAN DONATION.] An employer must grant 
 79.29  a paid leave of absence to an employee who seeks to undergo a 
 79.30  medical procedure to donate an organ or partial organ to another 
 79.31  person.  The length of the leave shall be determined by the 
 79.32  employee, but may not exceed 30 working days unless agreed to by 
 79.33  the employer.  The employer may require verification by a 
 79.34  physician of the purpose and length of the leave required by the 
 79.35  employee for organ donation.  If there is a medical 
 79.36  determination that the employee does not qualify as an organ 
 80.1   donor, the paid leave of absence granted to the employee prior 
 80.2   to that medical determination is not forfeited. 
 80.3      Subd. 3.  [NO EMPLOYER SANCTIONS.] An employer shall not 
 80.4   retaliate against an employee for requesting or obtaining a 
 80.5   leave of absence as provided by this section. 
 80.6      Subd. 4.  [RELATIONSHIP TO OTHER LEAVE.] This section does 
 80.7   not prevent an employer from providing leave for bone marrow or 
 80.8   organ donations in addition to leave allowed under this 
 80.9   section.  This section does not affect an employee's rights with 
 80.10  respect to any other employment benefit. 
 80.11     Sec. 12.  [268.195] [UNEMPLOYMENT INSURANCE TECHNOLOGY 
 80.12  INITIATIVE.] 
 80.13     Subdivision 1.  [PURPOSE; SET-ASIDE.] The unemployment 
 80.14  insurance technology initiative involves a set-aside of a 
 80.15  portion of the money that would otherwise go into the 
 80.16  unemployment insurance trust fund.  This money would then be 
 80.17  used on technology to provide substantially enhanced 
 80.18  unemployment insurance services to both applicants for benefits 
 80.19  and employers. 
 80.20     Subd. 2.  [TAX REDUCTION; FEE ASSESSED.] (a) 
 80.21  Notwithstanding section 268.051, subdivision 2, paragraph (b), 
 80.22  effective January 1, 2002, the base unemployment tax rate on all 
 80.23  taxable wages shall be reduced 0.02 percent, from 0.1 percent to 
 80.24  0.08 percent.  This reduction shall expire on December 31, 2005. 
 80.25     (b) Effective January 1, 2002, there shall be an 
 80.26  unemployment insurance technology initiative fee on taxpaying 
 80.27  employers, equal to the amount of the base unemployment tax rate 
 80.28  reduction of 0.02 percent on all taxable wages.  This fee shall 
 80.29  be due and be paid on the same schedule and in the same manner 
 80.30  as unemployment taxes under section 268.051.  Any past due fee 
 80.31  under this section shall be subject to the same interest and 
 80.32  collection provisions as unemployment taxes.  The money 
 80.33  collected by this fee, less reimbursement for collection costs, 
 80.34  shall be deposited in the unemployment insurance technology 
 80.35  initiative account.  This fee shall expire on December 31, 2005. 
 80.36     Subd. 3.  [ACCOUNT.] (a) Effective January 1, 2002, there 
 81.1   is hereby created in the state treasury a special account known 
 81.2   as the unemployment insurance technology initiative account.  
 81.3   This account shall lapse on December 31, 2007, and any money 
 81.4   remaining in that account on that date shall be paid into the 
 81.5   unemployment insurance program trust fund.  This account shall 
 81.6   consist of all money collected by the unemployment insurance 
 81.7   technology initiative fee and all interest earned upon any money 
 81.8   in this account, less amounts under paragraph (e). 
 81.9      (b) Money in this account is hereby appropriated to the 
 81.10  commissioner and shall be allocated and expended by the 
 81.11  commissioner only for technology initiatives to enhance 
 81.12  unemployment insurance services for both applicants for benefits 
 81.13  and employers. 
 81.14     (c) Any funds not allocated, obligated, or expended in a 
 81.15  fiscal year shall be available for allocation, obligation, and 
 81.16  expenditure in the following fiscal year. 
 81.17     (d) If the total amount collected by the technology 
 81.18  initiative fee, excluding the amount expended for reimbursement 
 81.19  of collection costs plus interest earned upon money in the 
 81.20  unemployment insurance technology initiative account exceeds 
 81.21  $30,000,000, the excess shall be paid into the unemployment 
 81.22  insurance program trust fund. 
 81.23     (e) Because the administrative cost of collection of the 
 81.24  technology initiative fee is borne by federal money made 
 81.25  available only to administer the unemployment insurance program, 
 81.26  the commissioner shall negotiate with the United States 
 81.27  Department of Labor the amount of any reimbursement for costs 
 81.28  related to collection of the fee.  Because the amount of any 
 81.29  such reimbursement is subsequently made available by the United 
 81.30  State Department of Labor to the commissioner for administration 
 81.31  of the unemployment insurance program, the commissioner shall 
 81.32  expend, from the federal Unemployment Insurance Administration 
 81.33  grant, an amount equal to the reimbursement on direct personnel 
 81.34  costs of developing, designing, and implementing the 
 81.35  unemployment insurance technology initiative. 
 81.36     Subd. 4.  [SUNSET.] This section expires December 31, 2007. 
 82.1      Sec. 13.  Minnesota Statutes 2000, section 270A.07, 
 82.2   subdivision 1, is amended to read: 
 82.3      Subdivision 1.  [NOTIFICATION REQUIREMENT.] Any claimant 
 82.4   agency, seeking collection of a debt through setoff against a 
 82.5   refund due, shall submit to the commissioner information 
 82.6   indicating the amount of each debt and information identifying 
 82.7   the debtor, as required by section 270A.04, subdivision 3.  
 82.8      For each setoff of a debt against a refund due, the 
 82.9   commissioner shall charge a fee of $10.  The proceeds of fees 
 82.10  shall be allocated by depositing $2.55 of each $10 fee collected 
 82.11  into a department of revenue recapture revolving fund, and 
 82.12  depositing the remaining balance into the general fund.  The 
 82.13  sums deposited into the revolving fund are appropriated to the 
 82.14  commissioner for the purpose of administering the Revenue 
 82.15  Recapture Act. 
 82.16     The claimant agency shall notify the commissioner when a 
 82.17  debt has been satisfied or reduced by at least $200 within 30 
 82.18  days after satisfaction or reduction. 
 82.19     <b>[EFFECTIVE DATE.]</b> This section is effective for revenue 
 82.20  recapture fees collected on or after July 1, 2001. 
 82.21     Sec. 14.  [336.1-110] [UNIFORM COMMERCIAL CODE ACCOUNT.] 
 82.22     The uniform commercial code account is established as an 
 82.23  account in the state treasury.  Fees that are not expressly set 
 82.24  by statute but are charged by the secretary of state to offset 
 82.25  the costs of providing a service under this chapter must be 
 82.26  deposited in the state treasury and credited to the uniform 
 82.27  commercial code account. 
 82.28     Fees that are not expressly set by statute but are charged 
 82.29  by the secretary of state to offset the costs of providing 
 82.30  information contained in the computerized records maintained by 
 82.31  the secretary of state must be deposited in the state treasury 
 82.32  and credited to the uniform commercial code account. 
 82.33     Money in the uniform commercial code account is 
 82.34  continuously appropriated to the secretary of state to implement 
 82.35  and maintain the central filing system under this chapter and to 
 82.36  provide electronic access to other computerized records 
 83.1   maintained by the secretary of state. 
 83.2      Sec. 15.  Minnesota Statutes 2000, section 349.165, 
 83.3   subdivision 1, is amended to read: 
 83.4      Subdivision 1.  [PREMISES PERMIT REQUIRED; APPLICATION.] A 
 83.5   licensed organization may not conduct lawful gambling at any 
 83.6   site unless it has first obtained from the board a premises 
 83.7   permit for the site.  The board shall prescribe a form for 
 83.8   permit applications, and each application for a permit must be 
 83.9   submitted on a separate form.  A The premises permit issued by 
 83.10  the board is valid for two years runs concurrently with the 
 83.11  license of the organization unless the premises permit is 
 83.12  suspended, revoked, or voluntarily terminated by the 
 83.13  organization.  The board may by rule limit the number of 
 83.14  premises permits that may be issued to an organization. 
 83.15     Sec. 16.  Minnesota Statutes 2000, section 349.165, 
 83.16  subdivision 3, is amended to read: 
 83.17     Subd. 3.  [FEES.] (a) The board may issue four classes of 
 83.18  premises permits corresponding to the classes of licenses 
 83.19  authorized under section 349.16, subdivision 6.  The fee for 
 83.20  each class of permit is: 
 83.21     (1) $400 for a class A permit; 
 83.22     (2) $250 for a class B permit; 
 83.23     (3) $200 for a class C permit; and 
 83.24     (4) $150 for a class D permit. 
 83.25     (b) If a premises permit is issued during the second year 
 83.26  of an organization's license, the fee for each class of permit 
 83.27  is: 
 83.28     (1) $200 for a class A permit; 
 83.29     (2) $125 for a class B permit; 
 83.30     (3) $100 for a class C permit; and 
 83.31     (4) $75 for a class D permit. 
 83.32     Sec. 17.  Minnesota Statutes 2000, section 357.18, 
 83.33  subdivision 3, is amended to read: 
 83.34     Subd. 3.  [SURCHARGE.] In addition to the fees imposed in 
 83.35  subdivision 1, a $4.50 $5 surcharge shall be collected:  on each 
 83.36  fee charged under subdivision 1, clauses (1) and (6), and for 
 84.1   each abstract certificate under subdivision 1, clause (4).  
 84.2   Fifty cents of each surcharge shall be retained by the county to 
 84.3   cover its administrative costs, 50 cents shall be appropriated 
 84.4   to the legislative coordinating commission for the task force on 
 84.5   electronic real estate recording created by Laws 2000, chapter 
 84.6   391, and $4 shall be paid to the state treasury and credited to 
 84.7   the general fund. 
 84.8      <b>[EFFECTIVE DATE.]</b> This section is effective only between 
 84.9   July 1, 2001, and June 30, 2003. 
 84.10     Sec. 18.  Minnesota Statutes 2000, section 403.11, 
 84.11  subdivision 1, is amended to read: 
 84.12     Subdivision 1.  [EMERGENCY TELEPHONE SERVICE FEE.] (a) Each 
 84.13  customer of a telephone company or communications carrier that 
 84.14  provides service capable of originating a 911 emergency 
 84.15  telephone call is assessed a fee to cover the costs of ongoing 
 84.16  maintenance and related improvements for trunking and central 
 84.17  office switching equipment for minimum 911 emergency telephone 
 84.18  service, plus administrative and staffing costs of the 
 84.19  department of administration related to managing the 911 
 84.20  emergency telephone service program.  Recurring charges by a 
 84.21  public utility providing telephone service for updating the 
 84.22  information required by section 403.07, subdivision 3, must be 
 84.23  paid by the commissioner of administration if the utility is 
 84.24  included in an approved 911 plan and the charges have been 
 84.25  certified and approved under subdivision 3.  The commissioner of 
 84.26  administration shall transfer an amount equal to two cents a 
 84.27  month from the fee assessed under this section on cellular and 
 84.28  other nonwire access services to the commissioner of public 
 84.29  safety for the purpose of offsetting the costs, including 
 84.30  administrative and staffing costs, incurred by the state patrol 
 84.31  division of the department of public safety in handling 911 
 84.32  emergency calls made from cellular phones.  Money remaining in 
 84.33  the 911 emergency telephone service account after all other 
 84.34  obligations are paid must not cancel and is carried forward to 
 84.35  subsequent years and may be appropriated from time to time to 
 84.36  the commissioner of administration to provide financial 
 85.1   assistance to counties for the improvement of local emergency 
 85.2   telephone services.  The improvements may include providing 
 85.3   access to minimum 911 service for telephone service subscribers 
 85.4   currently without access and upgrading existing 911 service to 
 85.5   include automatic number identification, local location 
 85.6   identification, automatic location identification, and other 
 85.7   improvements specified in revised county 911 plans approved by 
 85.8   the department. 
 85.9      (b) The fee may not be less than eight cents nor more than 
 85.10  30 40 cents a month for each customer access line or other basic 
 85.11  access service, including trunk equivalents as designated by the 
 85.12  public utilities commission for access charge purposes and 
 85.13  including cellular and other nonwire access services.  The fee 
 85.14  must be the same for all customers.  
 85.15     (c) The fee must be collected by each company or carrier 
 85.16  providing service subject to the fee.  Fees are payable to and 
 85.17  must be submitted to the commissioner of administration monthly 
 85.18  before the 25th of each month following the month of collection, 
 85.19  except that fees may be submitted quarterly if less than $250 a 
 85.20  month is due, or annually if less than $25 a month is due.  
 85.21  Receipts must be deposited in the state treasury and credited to 
 85.22  a 911 emergency telephone service account in the special revenue 
 85.23  fund.  The money in the account may only be used for 911 
 85.24  telephone services as provided in paragraph (a).  
 85.25     (d) The commissioner of administration, with the approval 
 85.26  of the commissioner of finance, shall establish the amount of 
 85.27  the fee within the limits specified under this section and 
 85.28  taking into account the amount of the fee established in section 
 85.29  403.113, subdivision 1, and inform the companies and carriers of 
 85.30  the amount to be collected.  Companies and carriers must be 
 85.31  given a minimum of 45 days' notice of fee changes. 
 85.32     (e) This subdivision does not apply to customers of a 
 85.33  telecommunications carrier as defined in section 237.01, 
 85.34  subdivision 6. 
 85.35     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 85.36  following final enactment. 
 86.1      Sec. 19.  Minnesota Statutes 2000, section 403.113, 
 86.2   subdivision 1, is amended to read: 
 86.3      Subdivision 1.  [FEE.] (a) In addition to the actual fee 
 86.4   assessed under section 403.11, each customer receiving local 
 86.5   telephone service, including cellular or other nonwire service, 
 86.6   is assessed a fee to fund implementation and maintenance of 
 86.7   enhanced 911 service, including acquisition of necessary 
 86.8   equipment and the costs of the commissioner to administer the 
 86.9   program.  The enhanced fee collected from cellular or other 
 86.10  nonwire service customers must be collected effective in July 
 86.11  1997 billings.  Effective July 1, 2001, the enhanced fee shall 
 86.12  be 20 cents a month assessed on the same basis as the fee under 
 86.13  section 403.11.  The actual fee assessed under section 403.11 
 86.14  and the enhanced 911 service fee must be collected as one amount 
 86.15  and may not exceed the amount specified in section 403.11, 
 86.16  subdivision 1, paragraph (b). 
 86.17     (b) The enhanced 911 service fee must be collected and 
 86.18  deposited in the same manner as the fee in section 403.11 and 
 86.19  used solely for the purposes of paragraph (a) and subdivision 3. 
 86.20     (c) The commissioner of the department of administration, 
 86.21  in consultation with counties and 911 system users, shall 
 86.22  determine the amount of the enhanced 911 service fee and inform 
 86.23  telephone companies or communications carriers that provide 
 86.24  service capable of originating a 911 emergency telephone call of 
 86.25  the total amount of the 911 service fees in the same manner as 
 86.26  provided in section 403.11. 
 86.27     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 86.28  following final enactment. 
 86.29     Sec. 20.  Minnesota Statutes 2000, section 403.113, 
 86.30  subdivision 3, is amended to read: 
 86.31     Subd. 3.  [LOCAL EXPENDITURES.] (a) Money distributed under 
 86.32  subdivision 2 for enhanced 911 service may be spent on enhanced 
 86.33  911 system costs for the purposes stated in subdivision 1, 
 86.34  paragraph (a).  In addition, money may be spent to lease, 
 86.35  purchase, lease-purchase, or maintain enhanced 911 equipment, 
 86.36  including telephone equipment; recording equipment; computer 
 87.1   hardware and global positioning equipment; computer software for 
 87.2   database provisioning, addressing, mapping, and any other 
 87.3   software necessary for automatic location identification or 
 87.4   local location identification; trunk lines; selective routing 
 87.5   equipment; the master street address guide; dispatcher public 
 87.6   safety answering point equipment proficiency and operational 
 87.7   skills; pay for long-distance charges incurred due to 
 87.8   transferring 911 calls to other jurisdictions; and the equipment 
 87.9   necessary within the public safety answering point for community 
 87.10  alert systems and to notify and communicate with the emergency 
 87.11  services requested by the 911 caller. 
 87.12     (b) Money distributed for enhanced 911 service may not be 
 87.13  spent on: 
 87.14     (1) purchasing or leasing of real estate or cosmetic 
 87.15  additions to or remodeling of communications centers; 
 87.16     (2) mobile communications vehicles, fire engines, 
 87.17  ambulances, law enforcement vehicles, or other emergency 
 87.18  vehicles; 
 87.19     (3) signs, posts, or other markers related to addressing or 
 87.20  any costs associated with the installation or maintenance of 
 87.21  signs, posts, or markers. 
 87.22     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 87.23  following final enactment. 
 87.24     Sec. 21.  Minnesota Statutes 2000, section 473.195, is 
 87.25  amended by adding a subdivision to read: 
 87.26     Subd. 5.  [HRA GOVERNING BOARD.] For the purposes of 
 87.27  exercising the authority granted to it under this section, the 
 87.28  council may, at its sole discretion, establish within the 
 87.29  council's existing organizational structure a separate governing 
 87.30  body to which the council may delegate any or all of the 
 87.31  authority granted to the council under this section.  The 
 87.32  resolution establishing the separate governing body must: 
 87.33     (1) set out the powers and duties delegated to the separate 
 87.34  governing body; 
 87.35     (2) prescribe the number, qualifications, and terms of the 
 87.36  its members; and 
 88.1      (3) provide for any other terms and conditions that are 
 88.2   deemed appropriate by the council. 
 88.3   The council shall appoint the members of the separate governing 
 88.4   body in accordance with a process established by the council.  
 88.5   No fewer than 75 percent of the members of the separate 
 88.6   governing body must be council members.  For purposes of 
 88.7   compliance with United State Code, title 42, section 1437(b), 
 88.8   and implementing federal regulations, at least one member of the 
 88.9   separate governing body members must be a resident directly 
 88.10  assisted by the council.  Members are entitled to reimbursement 
 88.11  for all actual and necessary expenses incurred in the 
 88.12  performance of governing body business, and a member other than 
 88.13  a council member is entitled to payment of $50 for each day the 
 88.14  member attends one or more meetings of the separate governing 
 88.15  body or performs other services authorized by the body.  The 
 88.16  council shall provide administrative and staff support to the 
 88.17  separate governing body.  The council may, at its sole 
 88.18  discretion, abolish the separate governing body or limit or 
 88.19  expand its delegated authority.  Nothing in this section impairs 
 88.20  existing contracts to which the council is a party or limits the 
 88.21  council's ability to enter into contracts when the council 
 88.22  exercises any of the functions, rights, powers, duties, 
 88.23  privileges, immunities, and limitations granted to the council 
 88.24  by this section. 
 88.25     Sec. 22.  Minnesota Statutes 2000, section 473.517, 
 88.26  subdivision 3, is amended to read: 
 88.27     Subd. 3.  [ALLOCATION OF TREATMENT, INTERCEPTOR COSTS; 
 88.28  RESERVED CAPACITY GROWTH PORTION OF CAPITAL COSTS.] For the 
 88.29  purposes of this subdivision, the growth cost portion of an 
 88.30  interceptor or treatment works facility is that portion of the 
 88.31  capital costs for acquisition, construction, or rehabilitation 
 88.32  of the facility that is attributable to the providing of 
 88.33  additional capacity, for either higher volume or higher strength 
 88.34  of flow, for the facility.  In preparing each budget the council 
 88.35  shall estimate determine the growth cost portion of the current 
 88.36  costs of acquisition, betterment construction, rehabilitation, 
 89.1   and debt service, only, of all the treatment works and 
 89.2   interceptors in the metropolitan disposal system which will not 
 89.3   be used to total capacity during the budget year, and the 
 89.4   percentage of such capacity which will not be used, and shall 
 89.5   deduct the same percentage of such treatment works such costs 
 89.6   from the current costs allocated under subdivision 1.  The 
 89.7   council shall also estimate the current costs of acquisition, 
 89.8   betterment, and debt service, only, of the interceptors in the 
 89.9   metropolitan disposal system that will not be used to total 
 89.10  capacity during the budget year, shall estimate the percentage 
 89.11  of the total capacity that will not be used, and shall deduct 
 89.12  the same percentage of interceptor costs from the current costs 
 89.13  allocated under subdivision 1.  The total amount so deducted 
 89.14  with respect to all treatment works and interceptors in the 
 89.15  system shall be allocated among and paid by the respective local 
 89.16  government units in the metropolitan area for which system 
 89.17  capacity unused each year is reserved for future use, in 
 89.18  proportion to the amounts of such capacity reserved for each of 
 89.19  them through a fee structure to be charged by the council for 
 89.20  new connections to the metropolitan disposal system, in the 
 89.21  amounts and the manner established by the council.  
 89.22     Sec. 23.  Minnesota Statutes 2000, section 473.901, 
 89.23  subdivision 1, is amended to read: 
 89.24     Subdivision 1.  [COSTS COVERED BY FEE.] For each fiscal 
 89.25  year beginning with the fiscal year commencing July 1, 1997, the 
 89.26  amount necessary to pay the following costs is appropriated to 
 89.27  the commissioner of administration from the 911 emergency 
 89.28  telephone service account established under section 403.11: 
 89.29     (1) debt service costs and reserves for bonds issued 
 89.30  pursuant to section 473.898; 
 89.31     (2) repayment of the right-of-way acquisition loans; 
 89.32     (3) costs of design, construction, maintenance of, and 
 89.33  improvements to those elements of the first phase that support 
 89.34  mutual aid communications and emergency medical services; or 
 89.35     (4) recurring charges for leased sites and equipment for 
 89.36  those elements of the first phase that support actual aid and 
 90.1   emergency medical communication services; or 
 90.2      (5) aid to local units of government for sites and 
 90.3   equipment in support of mutual aid and emergency medical 
 90.4   communications services. 
 90.5      This appropriation shall be used to pay annual debt service 
 90.6   costs and reserves for bonds issued pursuant to section 473.898 
 90.7   prior to use of fee money to pay other costs eligible under this 
 90.8   subdivision.  In no event shall the appropriation for each 
 90.9   fiscal year exceed an amount equal to four cents a month for 
 90.10  each customer access line or other basic access service, 
 90.11  including trunk equivalents as designated by the public 
 90.12  utilities commission for access charge purposes and including 
 90.13  cellular and other nonwire access services, in the fiscal year. 
 90.14     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 90.15  following final enactment. 
 90.16     Sec. 24.  Minnesota Statutes 2000, section 517.08, 
 90.17  subdivision 1b, is amended to read: 
 90.18     Subd. 1b.  [TERM OF LICENSE; FEE; PREMARITAL EDUCATION.] 
 90.19  (a) The court administrator shall examine upon oath the party 
 90.20  applying for a license relative to the legality of the 
 90.21  contemplated marriage.  If at the expiration of a five-day 
 90.22  period, on being satisfied that there is no legal impediment to 
 90.23  it, including the restriction contained in section 259.13, the 
 90.24  court administrator shall issue the license, containing the full 
 90.25  names of the parties before and after marriage, and county and 
 90.26  state of residence, with the district court seal attached, and 
 90.27  make a record of the date of issuance.  The license shall be 
 90.28  valid for a period of six months.  In case of emergency or 
 90.29  extraordinary circumstances, a judge of the district court of 
 90.30  the county in which the application is made, may authorize the 
 90.31  license to be issued at any time before the expiration of the 
 90.32  five days.  Except as provided in paragraph (b), the court 
 90.33  administrator shall collect from the applicant a fee of $70 for 
 90.34  administering the oath, issuing, recording, and filing all 
 90.35  papers required, and preparing and transmitting to the state 
 90.36  registrar of vital statistics the reports of marriage required 
 91.1   by this section.  If the license should not be used within the 
 91.2   period of six months due to illness or other extenuating 
 91.3   circumstances, it may be surrendered to the court administrator 
 91.4   for cancellation, and in that case a new license shall issue 
 91.5   upon request of the parties of the original license without 
 91.6   fee.  A court administrator who knowingly issues or signs a 
 91.7   marriage license in any manner other than as provided in this 
 91.8   section shall pay to the parties aggrieved an amount not to 
 91.9   exceed $1,000. 
 91.10     (b) The marriage license fee for parties who have completed 
 91.11  at least 12 hours of premarital education is $20.  In order to 
 91.12  qualify for the reduced fee, the parties must submit a signed 
 91.13  and dated statement from the person who provided the premarital 
 91.14  education confirming that it was received.  The premarital 
 91.15  education must be provided by a licensed or ordained minister or 
 91.16  the minister's designee, a person authorized to solemnize 
 91.17  marriages under section 517.18, or a person authorized to 
 91.18  practice marriage and family therapy under section 148B.33.  The 
 91.19  education must include the use of a premarital inventory and the 
 91.20  teaching of communication and conflict management skills.  
 91.21     (c) The statement from the person who provided the 
 91.22  premarital education under paragraph (b) must be in the 
 91.23  following form:  
 91.24     "I, (name of educator), confirm that (names of both 
 91.25  parties) received at least 12 hours of premarital education that 
 91.26  included the use of a premarital inventory and the teaching of 
 91.27  communication and conflict management skills.  I am a licensed 
 91.28  or ordained minister, a person authorized to solemnize marriages 
 91.29  under Minnesota Statutes, section 517.18, or a person licensed 
 91.30  to practice marriage and family therapy under Minnesota 
 91.31  Statutes, section 148B.33." 
 91.32     The names of the parties in the educator's statement must 
 91.33  be identical to the legal names of the parties as they appear in 
 91.34  the marriage license application.  Notwithstanding section 
 91.35  138.17, the educator's statement must be retained for seven 
 91.36  years, after which time it may be destroyed.  
 92.1      (b) (d) If section 259.13 applies to the request for a 
 92.2   marriage license, the court administrator shall grant the 
 92.3   marriage license without the requested name change.  
 92.4   Alternatively, the court administrator may delay the granting of 
 92.5   the marriage license until the party with the conviction: 
 92.6      (1) certifies under oath that 30 days have passed since 
 92.7   service of the notice for a name change upon the prosecuting 
 92.8   authority and, if applicable, the attorney general and no 
 92.9   objection has been filed under section 259.13; or 
 92.10     (2) provides a certified copy of the court order granting 
 92.11  it.  The parties seeking the marriage license shall have the 
 92.12  right to choose to have the license granted without the name 
 92.13  change or to delay its granting pending further action on the 
 92.14  name change request. 
 92.15     Sec. 25.  Minnesota Statutes 2000, section 517.08, 
 92.16  subdivision 1c, is amended to read: 
 92.17     Subd. 1c.  [DISPOSITION OF LICENSE FEE.] (a) Of the 
 92.18  marriage license fee collected pursuant to subdivision 
 92.19  1b, paragraph (a), $15 must be retained by the county.  The 
 92.20  court administrator shall must pay $55 to the state treasurer to 
 92.21  be deposited as follows: 
 92.22     (1) $50 in the general fund; 
 92.23     (2) $3 in the special revenue fund to be appropriated to 
 92.24  the commissioner of children, families, and learning for 
 92.25  supervised parenting time facilities under section 119A.37; and 
 92.26     (3) $2 in the special revenue fund to be appropriated to 
 92.27  the commissioner of health for developing and implementing the 
 92.28  MN ENABL program under section 145.9255. 
 92.29     (b) Of the $20 fee under subdivision 1b, paragraph (b), $15 
 92.30  must be retained by the county.  The state court administrator 
 92.31  must pay $5 to the state treasurer to be distributed as provided 
 92.32  in paragraph (a), clauses (2) and (3). 
 92.33     Sec. 26.  Laws 1997, chapter 202, article 2, section 61, as 
 92.34  amended by Laws 1999, chapter 250, article 1, section 106, is 
 92.35  amended to read: 
 92.36     Sec. 61.  [VOLUNTARY UNPAID LEAVE OF ABSENCE.] 
 93.1      Appointing authorities in state government may allow each 
 93.2   employee to take an unpaid leave of absence for up to 160 hours 
 93.3   during the period ending June 30, 2001 2005.  Each appointing 
 93.4   authority approving such a leave shall allow the employee to 
 93.5   continue accruing vacation and sick leave, be eligible for paid 
 93.6   holidays and insurance benefits, accrue seniority, and accrue 
 93.7   service credit in state retirement plans permitting service 
 93.8   credits for authorized leaves of absence as if the employee had 
 93.9   actually been employed during the time of the leave.  If the 
 93.10  leave of absence is for one full pay period or longer, any 
 93.11  holiday pay shall be included in the first payroll warrant after 
 93.12  return from the leave of absence.  The appointing authority 
 93.13  shall attempt to grant requests for unpaid leaves of absence 
 93.14  consistent with the need to continue efficient operation of the 
 93.15  agency.  However, each appointing authority shall retain 
 93.16  discretion to grant or refuse to grant requests for leaves of 
 93.17  absence and to schedule and cancel leaves, subject to applicable 
 93.18  provisions of collective bargaining agreements and compensation 
 93.19  plans. 
 93.20     Sec. 27.  Laws 1998, chapter 366, section 80, is amended to 
 93.21  read: 
 93.22     Sec. 80.  [SETTLEMENT DIVISION; TRANSFER OF JUDGES.] 
 93.23     The office of administrative hearings shall establish a 
 93.24  settlement division.  The workers' compensation judges at the 
 93.25  department of labor and industry, together with their support 
 93.26  staff, offices, furnishings, equipment, and supplies, are 
 93.27  transferred to the settlement division of the office of 
 93.28  administrative hearings.  Minnesota Statutes, section 15.039, 
 93.29  applies to the transfer of employees.  The settlement division 
 93.30  of the office of administrative hearings shall maintain offices 
 93.31  in either Hennepin or Ramsey county and the cities of St. Paul, 
 93.32  Duluth, and Detroit Lakes.  The office of a judge in the 
 93.33  settlement division of the office of administrative hearings and 
 93.34  the support staff of the judge may be located in a building that 
 93.35  contains offices of the department of labor and industry.  The 
 93.36  seniority of a workers' compensation judge at the office of 
 94.1   administrative hearings, after the transfer, shall be based on 
 94.2   the total length of service as a judge at either agency.  For 
 94.3   purposes of the commissioner's plan under Minnesota Statutes, 
 94.4   section 43A.18, subdivision 2, all compensation judges at the 
 94.5   office of administrative hearings shall be considered to be in 
 94.6   the same employment condition, the same organizational unit and 
 94.7   qualified for work in either division. 
 94.8      Sec. 28.  Laws 1999, chapter 250, article 1, section 12, 
 94.9   subdivision 3, as amended by Laws 2000, chapter 488, article 12, 
 94.10  section 1, subdivision 1, is amended to read: 
 94.11  Subd. 3.  Office of Technology
 94.12       5,499,000      2,707,000
 94.13  The commissioner of administration 
 94.14  shall develop and submit to the chairs 
 94.15  of the senate governmental operations 
 94.16  budget division and the house state 
 94.17  government finance committee by January 
 94.18  15, 2000, a long-range plan identifying 
 94.19  the mission and goals of the office of 
 94.20  technology.  The appropriation for the 
 94.21  second year is not available until the 
 94.22  plan has been approved by a law enacted 
 94.23  at the 2000 regular session. 
 94.24                Summary by Fund
 94.25  General               5,071,000     2,707,000
 94.26  State Government 
 94.27  Special Revenue         168,000          -0- 
 94.28  Workers'
 94.29  Compensation            260,000          -0- 
 94.30  The amounts that may be spent from this 
 94.31  appropriation for each purpose are as 
 94.32  follows: 
 94.33  (a) Administrative Services
 94.34       2,871,000      2,707,000
 94.35  $468,000 the first year and $468,000 
 94.36  the second year are for ongoing costs 
 94.37  of the North Star II project under 
 94.38  Minnesota Statutes, section 16E.07. 
 94.39  (b) One-Stop Business Licensing
 94.40  $500,000 the first year is a one-time 
 94.41  appropriation for the one-stop business 
 94.42  licensing system project under 
 94.43  Minnesota Statutes, section 16E.08.  
 94.44  The commissioner shall report on the 
 94.45  progress of this project to the chairs 
 94.46  of the legislative committees 
 94.47  responsible for this budget item by 
 94.48  January 15, 2000, and 2001. Before the 
 94.49  system is put into operation, the 
 95.1   security information technology project 
 95.2   of the commissioner of administration 
 95.3   shall perform a security audit of the 
 95.4   system and submit a report on the audit 
 95.5   to the chairs of the governmental 
 95.6   operations budget division of the 
 95.7   senate and the state government finance 
 95.8   committee of the house of 
 95.9   representatives. 
 95.10  (c) Small Agency Infrastructure 
 95.11                Summary by Fund
 95.12  General               1,700,000          -0-  
 95.13  State Government 
 95.14  Special Revenue         168,000          -0- 
 95.15  Workers'
 95.16  Compensation            260,000          -0- 
 95.17  This appropriation is for a one-time 
 95.18  transfer to eligible small agencies for 
 95.19  the small agency infrastructure 
 95.20  project.  The commissioner of 
 95.21  administration shall determine 
 95.22  priorities for which projects should be 
 95.23  funded, except that $323,000 is for the 
 95.24  public utilities commission.  An agency 
 95.25  whose strategic plan for information 
 95.26  technology was not approved before 
 95.27  April 1, 1999, may not receive money 
 95.28  from this appropriation.  This 
 95.29  appropriation is available until June 
 95.30  30, 2003.  The commissioner shall 
 95.31  report on the progress of this project 
 95.32  to the chairs of the legislative 
 95.33  committees responsible for this budget 
 95.34  item by January 15, 2000, 2001, and 
 95.35  2002. 
 95.36     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 95.37  following final enactment. 
 95.38     Sec. 29.  [EXEMPTION FROM ADDITIONAL BENEFITS REQUIREMENTS; 
 95.39  FINGERHUT; MORA; ONAN POWER ELECTRONICS; NICOLLET COUNTY.] 
 95.40     Notwithstanding Minnesota Statutes, section 268.125, 
 95.41  subdivisions 1 and 3, clauses (1) and (5), an applicant is 
 95.42  eligible to receive additional benefits under Minnesota 
 95.43  Statutes, section 268.125, effective the week following the week 
 95.44  in which the applicant exhausted regular benefits if: 
 95.45     (1) the applicant was laid off due to lack of work from 
 95.46  Fingerhut, Inc., in Mora, Minnesota, after January 1, 2001, or 
 95.47  from Onan Power Electronics in Nicollet county; and 
 95.48     (2) the commissioner of economic security finds that the 
 95.49  applicant satisfies the conditions of Minnesota Statutes, 
 95.50  section 268.125, subdivision 3, clauses (2) to (4).  
 96.1      This section does not apply to any applicant who, with 
 96.2   respect to any period prior to June 1, 2001, receives, or has an 
 96.3   agreement to receive, a retirement pension financed in whole or 
 96.4   in part by Fingerhut, Inc. or Onan Power Electronics. 
 96.5      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 96.6   following final enactment. 
 96.7      Sec. 30.  [EXEMPTION FROM ADDITIONAL BENEFITS REQUIREMENTS; 
 96.8   M.E. INTERNATIONAL, ST. LOUIS COUNTY.] 
 96.9      Notwithstanding Minnesota Statutes, section 268.125, 
 96.10  subdivisions 1 and 3, clauses (1) and (5), an applicant is 
 96.11  eligible to receive additional benefits under Minnesota 
 96.12  Statutes, section 268.125, effective the week following the week 
 96.13  in which the applicant exhausted regular benefits if: 
 96.14     (1) the applicant was laid off due to lack of work from M. 
 96.15  E. International in St. Louis county on February 25, 2000; and 
 96.16     (2) the commissioner of economic security finds that the 
 96.17  applicant satisfies the conditions of Minnesota Statutes, 
 96.18  section 268.125, subdivision 3, clauses (2) to (4).  
 96.19     This section does not apply to any applicant who, with 
 96.20  respect to any period prior to September 1, 2001, receives, or 
 96.21  has an agreement to receive, a retirement pension financed in 
 96.22  whole or in part by M. E. International. 
 96.23     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 96.24  following final enactment. 
 96.25     Sec. 31.  [VOLUNTARY PAID PARENTAL LEAVE PROGRAM.] 
 96.26     Subdivision 1.  [CREATED.] The commissioner of economic 
 96.27  security shall operate a pilot program to reimburse an 
 96.28  "employer" in Minnesota, as defined in Minnesota Statutes, 
 96.29  section 268.035, subdivision 14, that provides qualified paid 
 96.30  parental leave.  "Qualified paid parental leave" or "leave" is 
 96.31  an employer-paid leave of absence to an employee residing in 
 96.32  Minnesota who is a natural or adoptive parent in conjunction 
 96.33  with the birth or adoption of a child.  Qualified paid parental 
 96.34  leave does not include sick leave or vacation leave.  Before 
 96.35  receiving qualified paid parental leave, however, an employee 
 96.36  must use up other paid leave available to the employee, 
 97.1   including accumulated vacation time and time covered by 
 97.2   temporary disability insurance.  Qualified paid parental leave 
 97.3   must occur within the first year of birth or during the first 
 97.4   year in which the employee becomes an adoptive parent.  To 
 97.5   qualify for reimbursement under subdivision 2, an employer must 
 97.6   pay an employee at least $200 per week of qualified paid 
 97.7   parental leave unless the employee's preleave salary was $300 or 
 97.8   less, in which case the employer must pay at least $100 per 
 97.9   week.  Qualified paid parental leave must be at least six 
 97.10  consecutive weeks in duration. 
 97.11     Subd. 2.  [REIMBURSEMENT AMOUNT.] Reimbursement is one-half 
 97.12  the employer weekly leave payment; except that, for employees 
 97.13  with weekly preleave wages below $300, reimbursement is $100 if 
 97.14  the employer pays qualified paid parental leave of at least that 
 97.15  much.  Except for employees with a preleave salary of $300 or 
 97.16  less, reimbursement cannot exceed one-third of an employee's 
 97.17  preleave salary.  Reimbursement is limited to 26 weeks.  
 97.18  Reimbursement is subject to a maximum of $250 per week.  The 
 97.19  commissioner shall adjust the maximum reimbursement annually by 
 97.20  the United States All-Items Consumer Price Index to reflect 
 97.21  inflation.  Benefits received under this section are income for 
 97.22  the purposes of Minnesota Statutes, section 119B.061.  
 97.23     Subd. 3.  [NOTIFICATION.] The commissioner of economic 
 97.24  security shall notify employers of the voluntary paid parental 
 97.25  leave program through the department's newsletter, Web site, and 
 97.26  other communications with employers.  
 97.27     Subd. 4.  [EVALUATION.] By February 1, 2003, the 
 97.28  commissioner of economic security shall report to the 
 97.29  legislature on the number of employers requesting paid parental 
 97.30  leave reimbursement, including an estimation of the number, 
 97.31  size, and industry type of employers obtaining reimbursement; 
 97.32  the number of employees who have taken parental leave under the 
 97.33  program; the average and range of leave lengths reimbursed; and 
 97.34  the average and ranges of payments, as well as implementation 
 97.35  issues identified by the commissioner.  In addition, the 
 97.36  commissioner shall obtain a sample of at least 30 participating 
 98.1   families to provide additional information on employee's and 
 98.2   employer's experiences, including information on the salary 
 98.3   ranges of participating employees, employee and employer 
 98.4   satisfaction or dissatisfaction with the program, and other 
 98.5   information identified by the commissioner. 
 98.6      <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2001, 
 98.7   and applies to employer-paid leave benefits paid on or after 
 98.8   that date. 
 98.9      Sec. 32.  [WORK PLAN APPROPRIATIONS.] 
 98.10     (a) $650,000 is appropriated from the surcharge collected 
 98.11  under Minnesota Statutes, section 357.18, subdivision 3, to the 
 98.12  legislative coordinating commission, to be made available to the 
 98.13  real estate task force established in accordance with Laws 2000, 
 98.14  chapter 391, for the expenses of the task force in carrying out 
 98.15  the work plan as described in the January 15, 2001, task force 
 98.16  report to the legislature.  This appropriation is available 
 98.17  until June 30, 2003, and is to be administered at the direction 
 98.18  of the chair of the task force, subject to the prior approval of 
 98.19  the task force. 
 98.20     (b) $500,000 is appropriated from the surcharge collected 
 98.21  under Minnesota Statutes, section 357.18, subdivision 3, to the 
 98.22  legislative coordinating commission, to be made available to the 
 98.23  task force for the development and implementation of pilot 
 98.24  electronic real estate projects in diverse counties as described 
 98.25  in the January 15, 2001, task force report to the legislature.  
 98.26  This appropriation is available until June 30, 2003. 
 98.27     Sec. 33.  [LEGISLATIVE COORDINATING COMMISSION; DUTIES; 
 98.28  APPROPRIATION.] 
 98.29     (a) The real estate task force established under Laws 2000, 
 98.30  chapter 391, may contract with the legislative coordinating 
 98.31  commission for the provision of administrative services to, the 
 98.32  preparation of requests for proposal, or the disbursement of 
 98.33  funds for the payment of vendors, salaries, and other expenses 
 98.34  of the task force. 
 98.35     (b) $50,000 is appropriated from the surcharge collected 
 98.36  under Minnesota Statutes, section 357.18, subdivision 3, to the 
 99.1   legislative coordinating commission for the purpose of paragraph 
 99.2   (a). 
 99.3      Sec. 34.  [DONATIONS.] 
 99.4      The real estate task force established under Laws 2000, 
 99.5   chapter 391, may accept donations of money or resources, 
 99.6   including loaned employees or other services.  The donations 
 99.7   must be under the sole control of the task force. 
 99.8      Sec. 35.  [LEGISLATIVE AND EXECUTIVE BRANCH ASSISTANCE.] 
 99.9      Whenever possible, legislative employees and agencies in 
 99.10  the executive branch shall assist the real estate task force 
 99.11  established under Laws 2000, chapter 391, in carrying out its 
 99.12  duties. 
 99.13     Sec. 36.  [METROPOLITAN COUNCIL TRANSITION PLAN.] 
 99.14     The metropolitan council may adopt an implementation plan 
 99.15  for transition from the reserve capacity system in effect before 
 99.16  the effective date of section 19 and the growth cost system 
 99.17  established by the amendment made by section 19.  The transition 
 99.18  plan may include, without limitation, a phase-in of any 
 99.19  difference in charges, to be paid by local government units, 
 99.20  between the reserve capacity system and the new growth cost 
 99.21  system.  The council may use any funds collected under the 
 99.22  reserve capacity system for the purposes of the transition plan 
 99.23  and to pay the growth cost portion of current capital costs 
 99.24  after December 31, 2001.  The council shall maintain the current 
 99.25  service availability charge (SAC) credit system, which 
 99.26  recognizes reductions in connections or capacity for local 
 99.27  governmental units with current SAC credit balances who choose 
 99.28  to remain on the current SAC credit system.  
 99.29     Sec. 37.  [CONSTRUCTION.] 
 99.30     Minnesota Statutes, section 645.35, does not apply to 
 99.31  section 22.  
 99.32     Sec. 38.  [APPLICATION.] 
 99.33     Sections 21, 22, 36, and 37 apply in the counties of Anoka, 
 99.34  Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.  
 99.35     Sec. 39.  [REPEALER.] 
 99.36     Minnesota Statutes 2000, sections 8.15, subdivision 2; 
100.1   16E.08; 129D.06; and 179A.07, subdivision 7, are repealed. 
100.2      Sec. 40.  [EFFECTIVE DATE.] 
100.3      Sections 22, 36, and 37 are effective January 1, 2002, for 
100.4   allocation of the growth cost portion of current capital costs 
100.5   on and after that date. 
100.6                              ARTICLE 9
100.7                      STATE AGENCY RESTRUCTURING
100.8      Section 1.  [STATE AGENCY RESTRUCTURING.] 
100.9      The department of labor and industry and the department of 
100.10  economic security are abolished.  The department of trade and 
100.11  economic development is renamed the department of economic and 
100.12  workforce development.  The new department of labor is created.  
100.13     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2002. 
100.14     Sec. 2.  [TRANSFER OF RESPONSIBILITIES; DEPARTMENT OF 
100.15  ECONOMIC SECURITY.] 
100.16     Subdivision 1.  [TO DEPARTMENT OF ECONOMIC AND WORKFORCE 
100.17  DEVELOPMENT.] The responsibilities of the department of economic 
100.18  security performed by its workforce services unit for employment 
100.19  transition services, youth services, welfare-to-work services, 
100.20  and workforce exchange services are transferred to the 
100.21  department of economic and workforce development.  
100.22     Subd. 2.  [TO DEPARTMENT OF LABOR.] The responsibilities of 
100.23  the department of economic security for the unemployment 
100.24  insurance program are transferred to the department of labor. 
100.25     Subd. 3.  [TO DEPARTMENT OF COMMERCE.] The responsibility 
100.26  for energy programs of the department of economic security is 
100.27  transferred to the department of commerce. 
100.28     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2002. 
100.29     Sec. 3.  [TRANSFER OF RESPONSIBILITIES; DEPARTMENT OF LABOR 
100.30  AND INDUSTRY.] 
100.31     The responsibilities of the department of labor and 
100.32  industry are transferred to the department of labor.  
100.33     Sec. 4.  [ORGANIZATION OF ECONOMIC AND WORKFORCE 
100.34  DEVELOPMENT DEPARTMENT.] 
100.35     The department of economic and workforce development shall 
100.36  have a division of economic development consisting of business 
101.1   and community development, the Minnesota trade office, tourism 
101.2   division, information and analysis division, and administrative 
101.3   support.  The job skills partnership program shall be housed in 
101.4   the department and shall have a policy, research, and evaluation 
101.5   unit.  The department shall provide targeted-worker services to 
101.6   include the dislocated worker program and welfare-to-work 
101.7   services formerly located in the department of economic 
101.8   security.  The department shall have a unit providing special 
101.9   programs under a workforce transition services unit.  
101.10     <b>[EFFECTIVE DATE.]</b> This section is effective June 30, 2002. 
101.11     Sec. 5.  [TRANSITION TEAM CREATION; COMPOSITION.] 
101.12     Subdivision 1.  [CREATION.] A workforce development program 
101.13  reorganization transition advisory team is created.  The 
101.14  transition team shall make recommendations to the governor and 
101.15  the legislature by November 1, 2001, concerning the state 
101.16  government structure and department organization for delivering 
101.17  workforce development programs and other issues described in 
101.18  section 6.  The object of the reorganization is to consolidate 
101.19  and streamline the state's workforce development system and 
101.20  programs so as to provide the most efficient and effective 
101.21  workforce development programs.  
101.22     Subd. 2.  [TRANSITION TEAM COMPOSITION.] The transition 
101.23  team shall consist of nine members appointed as follows: 
101.24     (1) three members appointed by the governor of which one 
101.25  shall be designated as chair of the transition team; 
101.26     (2) three members of the house of representatives appointed 
101.27  by the speaker of the house of representatives, one of whom must 
101.28  be a member of the minority party; and 
101.29     (3) three members of the senate appointed by the 
101.30  subcommittee on committees of the committee on rules and 
101.31  administration of the senate, one of whom must be a member of 
101.32  the minority party.  
101.33     The transition team must solicit input from all interested 
101.34  groups on how to best implement the reorganization of state 
101.35  departments contained in this article and develop the 
101.36  recommendations required in subdivision 1. 
102.1      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
102.2   following final enactment. 
102.3      Sec. 6.  [TRANSITION TEAM DUTIES.] 
102.4      Subdivision 1.  [WORKFORCE DEVELOPMENT PROGRAMS.] The 
102.5   transition team shall: 
102.6      (1) consider alternative configurations of workforce 
102.7   development programs, including legislative proposals submitted 
102.8   during the 2001 legislative session and models from other 
102.9   states; 
102.10     (2) recommend governance structures for workforce 
102.11  development; 
102.12     (3) develop recommendations for creating stronger linkages 
102.13  between the higher education system and the workforce 
102.14  development system; 
102.15     (4) recommend statutory amendments necessary to implement 
102.16  sections 1 to 4; 
102.17     (5) recommend the appropriate programs to transfer to local 
102.18  workforce boards, including those programs under the Workforce 
102.19  Investment Act, United States Code, title 29; 
102.20     (6) recommend statutory and administrative changes 
102.21  necessary to strengthen the oversight and management 
102.22  responsibilities of local workforce boards and local elected 
102.23  officials to ensure the efficient operation of the workforce 
102.24  center system and to ensure better coordination of service 
102.25  delivery at the community level; 
102.26     (7) recommend the transfer of workforce development related 
102.27  programs from other state agencies; 
102.28     (8) recommend program modifications necessary to ensure 
102.29  coordination between the workforce development system and the 
102.30  employment and training programs administered by the department 
102.31  of human services; 
102.32     (9) recommend procedures for promoting greater coordination 
102.33  and cooperation among local workforce development agencies, 
102.34  local economic development agencies, and higher education 
102.35  institutions; 
102.36     (10) recommend methods for decreasing administrative costs 
103.1   at the state agency level for the purpose of redirecting funding 
103.2   to support the delivery of services at the community level; and 
103.3      (11) make other recommendations to complete the 
103.4   reorganization of state departments contained in this article.  
103.5      Subd. 2.  [CONSULTATION WITH INTERESTED ORGANIZATIONS.] The 
103.6   transition team shall consult with all interested organizations, 
103.7   including, but not limited to, those specified in this 
103.8   subdivision. 
103.9      The transition team shall consult with the state 
103.10  rehabilitation advisory council, the statewide independent 
103.11  living council, the rehabilitation advisory council for the 
103.12  blind, and the governor's council on developmental disabilities, 
103.13  prior to making recommendations to the legislature on the 
103.14  appropriate transfer of responsibility for the workforce 
103.15  rehabilitation services unit, the workforce services for the 
103.16  blind unit, and the workforce wage assistance unit from the 
103.17  department of economic security to another state agency or other 
103.18  recommended entity. 
103.19     The transition team shall consult with the SAFE 
103.20  coordinating council, prior to making any recommendation to the 
103.21  legislature, on the appropriate state agency of the juvenile 
103.22  justice program, the Minnesota city grants program, and the 
103.23  youth intervention program in the department of economic 
103.24  security. 
103.25     The transition team shall consult with the commissioners of 
103.26  economic security, trade and economic development, and labor and 
103.27  industry, and the cochairs of the legislative task force on 
103.28  workforce development prior to making any recommendation to the 
103.29  legislature under subdivision 3. 
103.30     Subd. 3.  [GOVERNMENT REORGANIZATION RECOMMENDATIONS.] The 
103.31  transition team shall recommend to the governor and legislature, 
103.32  the transfer to the appropriate state agencies of the 
103.33  responsibilities for administration of programs currently 
103.34  administered by the department of trade and economic development 
103.35  and the department of economic security.  
103.36     Subd. 4.  [TRANSFER OF WORKFORCE INVESTMENT ACT 
104.1   PROGRAMS.] The transition team may recommend, where appropriate, 
104.2   the transfer of a program, including those programs under the 
104.3   Workforce Investment Act (United States Code, title 29), title I 
104.4   and title III, to local workforce boards. 
104.5      Subd. 5.  [STAFF SUPPORT.] The commissioners of trade and 
104.6   economic development and economic security must cooperate with 
104.7   and provide staff support to the transition team.  The support 
104.8   includes, but is not limited to, professional, technical, and 
104.9   clerical staff necessary to fully assess the programs under 
104.10  subdivision 4. 
104.11     Subd. 6.  [ACCESS TO DATA.] The transition team shall have 
104.12  access to private or nonpublic data within the department of 
104.13  economic security and the department of trade and economic 
104.14  development necessary to carry out the objective of subdivision 
104.15  4. 
104.16     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
104.17  following final enactment. 
104.18     Sec. 7.  [WORKER PROTECTION.] 
104.19     In addition to any other protection, no employee shall 
104.20  suffer job loss, have a salary reduced, or have employment 
104.21  benefits reduced as a result of a reorganization mandated or 
104.22  recommended under authority of this article. 
104.23     Sec. 8.  [EXPIRATION.] 
104.24     Sections 5 and 6 expire on June 30, 2002. 
104.25                             ARTICLE 10
104.26                TECHNOLOGY, RESEARCH, AND INVESTMENT
104.27     Section 1.  [11A.26] [MINNESOTA INVESTMENTS.] 
104.28     The board shall make an effort to identify and invest in 
104.29  venture capital funds that invest in Minnesota-based start-up 
104.30  businesses that are high technology-based and are expected to 
104.31  experience high growth.  
104.32     Sec. 2.  [11A.27] [HIGH TECHNOLOGY VENTURE CAPITAL 
104.33  PROGRAM.] 
104.34     Subdivision 1.  [ACCOUNT CREATED.] The high technology 
104.35  venture capital account is created as an account in the special 
104.36  revenue fund in the state treasury.  Earnings and gains on the 
105.1   account must be credited to the account.  Money in the account 
105.2   is appropriated to the state board of investment for the 
105.3   purposes of making investments under this section. 
105.4      Subd. 2.  [INVESTMENTS.] The board may make investments in 
105.5   private venture capital funds that provide seed capital for 
105.6   early stage development of Minnesota-based companies in 
105.7   industries that are high technology-based and are expected to 
105.8   experience high growth.  The board's investment must not exceed 
105.9   25 percent of the total investment in a particular fund.  An 
105.10  investment may not be less than $50,000 nor more than 
105.11  $2,000,000.  The board may not invest more than 20 percent of 
105.12  funds in the account in any one fund. 
105.13     Subd. 3.  [REQUEST FOR PROPOSAL.] The board may 
105.14  periodically publish requests for proposals for the purpose of 
105.15  selecting venture capital funds.  The board may also make 
105.16  investments without requesting proposals.  
105.17     Subd. 4.  [PERSONNEL.] The board may employ additional 
105.18  professional staff to select and manage investments of the 
105.19  venture capital account and may contract for investment advice 
105.20  and management services. 
105.21     Subd. 5.  [INVESTMENT RETURNS.] Earnings, realized gains, 
105.22  and other returns on investments of the account must be 
105.23  deposited in the high technology venture capital account, are 
105.24  appropriated to the board, and may be reinvested under this 
105.25  section. 
105.26     Sec. 3.  [116J.885] [BIOMEDICAL INNOVATION AND 
105.27  COMMERCIALIZATION INITIATIVE.] 
105.28     Subdivision 1.  [ESTABLISHED.] The North Star Research 
105.29  Coalition shall establish the biomedical innovation and 
105.30  commercialization initiative (BICI) as a collaborative economic 
105.31  development initiative between the University of Minnesota, 
105.32  Minnesota's medical technology industry, and investors.  BICI is 
105.33  not a state agency.  
105.34     The North Star Research Coalition shall invest $5,000,000 
105.35  in BICI if money for that purpose is appropriated to the 
105.36  coalition and if the governance documents satisfy the 
106.1   specifications of this section.  The investment is contingent on 
106.2   a three-to-one match of money contributions or investments from 
106.3   other sources. 
106.4      The board established in subdivision 2 shall organize and 
106.5   operate BICI as a for-profit entity and in a manner and form 
106.6   that the board determines best allows BICI to carry out its 
106.7   objectives.  Any distribution from BICI must be returned to all 
106.8   investors, including the coalition, in the same proportion as 
106.9   funds were contributed.  
106.10     Subd. 2.  [BOARD.] BICI is governed by a board of 
106.11  directors, appointed to six-year terms, composed of: 
106.12     (1) a representative chosen by the governor; 
106.13     (2) a representative of the North Star Research Coalition; 
106.14     (3) a representative chosen by the president of the 
106.15  University of Minnesota with the consent of the board of 
106.16  regents; and 
106.17     (4) at least five representatives from the state's medical 
106.18  technology industry, chosen by private sector investors based on 
106.19  the proportion of their equity investments. 
106.20     The board may use up to five percent of its total 
106.21  capitalization to establish a management and administrative 
106.22  budget, including the hiring of staff and for professional 
106.23  management expenses.  Members of the staff are not state 
106.24  employees. 
106.25     Subd. 3.  [MISSION OF BICI.] The mission of BICI is to: 
106.26     (1) add business and financial expertise to technologies 
106.27  that are being developed by University of Minnesota faculty and 
106.28  staff to enhance commercial value; 
106.29     (2) promote the depth, breadth, and value of technologies 
106.30  being developed by the biomedical academic community; 
106.31     (3) catalyze the development of functional, mutually 
106.32  advantageous relationships between industry, faculty, staff, the 
106.33  university, and extended research community; 
106.34     (4) provide a financial return on commercialization efforts 
106.35  to the stakeholders in BICI; and 
106.36     (5) directly commercialize technologies through the 
107.1   start-up of new Minnesota companies or enhance the marketing of 
107.2   technologies to existing companies creating expanded economic 
107.3   development opportunities. 
107.4      Subd. 4.  [STATEWIDE FOCUS.] BICI may contract and 
107.5   collaborate with higher education and other research 
107.6   institutions located throughout the state.  BICI shall promote 
107.7   the statewide distribution of business opportunities created 
107.8   through carrying out its duties under subdivision 3.  
107.9      Subd. 5.  [POWERS OF BOARD.] The board has the power to do 
107.10  all things reasonable and necessary to carry out the mission of 
107.11  BICI including, without limitation, the power to: 
107.12     (1) enter into contracts for goods and services with 
107.13  individuals and private and public entities; 
107.14     (2) sue and be sued; 
107.15     (3) acquire, hold, lease, and transfer any interest in real 
107.16  and personal property; 
107.17     (4) accept appropriations, gifts, grants, and bequests; 
107.18     (5) hire employees for BICI; and 
107.19     (6) delegate any of its powers. 
107.20     Subd. 6.  [ANNUAL REPORT.] The corporation shall publish an 
107.21  annual report within 75 days of the end of each fiscal year.  
107.22  The annual report must include a balance sheet; a statement of 
107.23  income, expenses, and cash flow; the identity of projects or 
107.24  entities receiving funding and the amount of funding; the number 
107.25  of employees of recipient entities; licensing and royalty 
107.26  revenue paid to the university by recipient entities; and 
107.27  sources of investment in the corporation.  A copy of the report 
107.28  must be transmitted to the commissioner of the department of 
107.29  trade and economic development. 
107.30     Sec. 4.  [137.45] [NORTH STAR RESEARCH COALITION.] 
107.31     Subdivision 1.  [ESTABLISHMENT.] The board of regents is 
107.32  requested to establish a partnership with private industry to 
107.33  leverage the university's research capabilities into economic 
107.34  development results through the creation of a nonprofit 
107.35  tax-exempt corporation to be known as the North Star Research 
107.36  Coalition.  The incorporating documents of the North Star 
108.1   Research Coalition must provide for representation of university 
108.2   and private sector interests on the coalition's board of 
108.3   directors and provide that changes in the governance structure 
108.4   require a supermajority of the board.  The board consists of 12 
108.5   members.  Six shall be appointed by the board of regents of the 
108.6   University of Minnesota and need not be affiliated with the 
108.7   university.  The initial six members representing the private 
108.8   sector shall be appointed by the governor.  Subsequent members 
108.9   representing the private sector shall be appointed by the 
108.10  incumbent members of the board.  Private sector members of the 
108.11  board must have expertise in the technology research needs of 
108.12  the state and not be affiliated with the university. 
108.13     Subd. 2.  [RESEARCH PROJECTS.] The coalition shall fund 
108.14  research projects consistent with this section and priorities 
108.15  established by the coalition, purchase equipment for research 
108.16  laboratories, and establish endowed faculty chairs in the area 
108.17  of technology-based research.  The coalition may fund research 
108.18  projects that establish collaborative research efforts among the 
108.19  University of Minnesota and the private sector, the Mayo Clinic, 
108.20  nonprofit research institutes, or the Minnesota state colleges 
108.21  and universities. 
108.22     Subd. 3.  [PURPOSES.] The purposes of the coalition include:
108.23     (1) identifying technology-based research projects that 
108.24  have the potential to create significant opportunities for 
108.25  economic development and industrial growth in the state; 
108.26     (2) strengthening the university's research capabilities in 
108.27  subject areas associated with emerging technology-based 
108.28  industries; 
108.29     (3) expanding the research capacity of the university 
108.30  through the creation of opportunities for the university to 
108.31  assist private enterprises in emerging technology-based 
108.32  industries; 
108.33     (4) expanding the research capacity of the university 
108.34  through the creation of opportunities for the university to 
108.35  assist private enterprises in emerging technology-based 
108.36  industries; 
109.1      (5) promoting the transfer of technology from the research 
109.2   laboratory to commercial application by businesses; 
109.3      (6) developing application procedures for, reviewing, and 
109.4   prioritizing research projects seeking funding from the 
109.5   coalition; and 
109.6      (7) creating opportunities for collaborative research among 
109.7   the University of Minnesota, the Mayo Clinic, nonprofit research 
109.8   institutes, and the Minnesota state colleges and universities. 
109.9      The board shall have the authority to allocate state and 
109.10  nonstate money to projects. 
109.11     Sec. 5.  [INITIAL TERMS.] 
109.12     Notwithstanding section 3, subdivision 2, the first board 
109.13  members appointed under clause (4) of subdivision 2 must be 
109.14  appointed as follows:  two to two-year terms, two to four-year 
109.15  terms, and one to a six-year term. 
109.16                             ARTICLE 11
109.17                   HOUSING PROGRAM CONSOLIDATION
109.18     Section 1.  Minnesota Statutes 2000, section 462A.201, 
109.19  subdivision 2, is amended to read: 
109.20     Subd. 2.  [LOW-INCOME HOUSING.] (a) The agency may, in 
109.21  consultation with the advisory committee, use money from the 
109.22  housing trust fund account to provide loans or grants for: 
109.23     (1) projects for the development, construction, 
109.24  acquisition, preservation, and rehabilitation of low-income 
109.25  rental and limited equity cooperative housing units, including 
109.26  temporary and transitional housing, and homes for ownership; 
109.27     (2) the costs of operating rental housing, as determined by 
109.28  the agency, that are unique to the operation of low-income 
109.29  rental housing or supportive housing; and 
109.30     (3) rental assistance, either project-based or tenant-based.
109.31  For purposes of this section, "transitional housing" means 
109.32  housing that is provided for a limited duration not exceeding 24 
109.33  months, except that up to one-third of the residents may live in 
109.34  the housing for up to 36 months has the meaning given by the 
109.35  United States Department of Housing and Urban Development.  
109.36  Loans or grants for residential housing for migrant farmworkers 
110.1   may be made under this section.  No more than 20 percent of 
110.2   available funds may be used for home ownership projects.  
110.3      (b) A rental or limited equity cooperative permanent 
110.4   housing project must meet one of the following income tests: 
110.5      (1) at least 75 percent of the rental and cooperative units 
110.6   must be rented to or cooperatively owned by persons and families 
110.7   whose income does not exceed 30 percent of the median family 
110.8   income for the metropolitan area as defined in section 473.121, 
110.9   subdivision 2; or 
110.10     (2) all The housing trust fund account must be used for the 
110.11  benefit of persons and families whose income, at the time of 
110.12  initial occupancy, does not exceed 60 percent of median income 
110.13  as determined by the United States Department of Housing and 
110.14  Urban Development for the metropolitan area.  At least 75 
110.15  percent of the units funded by funds in the housing trust fund 
110.16  account must be used for the benefit of persons and families 
110.17  whose income, at the time of initial occupancy, does not exceed 
110.18  30 percent of the median family income for the metropolitan area 
110.19  as defined in section 473.121, subdivision 2. For purposes of 
110.20  this section, a household with a housing assistance voucher 
110.21  under section 8 of the United States Housing Act of 1937, as 
110.22  amended, is deemed to meet the income requirements of this 
110.23  section. 
110.24     The median family income may be adjusted for families of 
110.25  five or more. 
110.26     (c) Homes for ownership must be owned or purchased by 
110.27  persons and families whose income does not exceed 50 percent of 
110.28  the metropolitan area median income, adjusted for family size. 
110.29     (d) Rental assistance under this section must be provided 
110.30  by governmental units which administer housing assistance 
110.31  supplements or for-profit or by nonprofit organizations 
110.32  experienced in housing management.  Rental assistance shall be 
110.33  limited to households whose income at the time of initial 
110.34  receipt of rental assistance does not exceed 60 percent of 
110.35  median income, as determined by the United States Department of 
110.36  Housing and Urban Development for the metropolitan area.  
111.1   Priority among comparable applications for tenant-based rental 
111.2   assistance will be given to proposals that will serve households 
111.3   whose income at the time of initial application for rental 
111.4   assistance does not exceed 30 percent of median income, as 
111.5   determined by the United States Department of Housing and Urban 
111.6   Development for the metropolitan area.  Rental assistance must 
111.7   be terminated when it is determined that 30 percent of a 
111.8   household's monthly income for four consecutive months equals or 
111.9   exceeds the market rent for the unit in which the household 
111.10  resides plus utilities for which the tenant is responsible.  
111.11  Rental assistance may only be used for rental housing units that 
111.12  meet the housing maintenance code of the local unit of 
111.13  government in which the unit is located, if a maintenance code 
111.14  has been adopted, or the housing quality standards adopted by 
111.15  the United States Department of Housing and Urban Development, 
111.16  if no local housing maintenance code has been adopted.  
111.17     (d) In making the loans or grants, the agency shall 
111.18  determine the terms and conditions of repayment and the 
111.19  appropriate security, if any, should repayment be required.  To 
111.20  promote the geographic distribution of grants and loans, the 
111.21  agency may designate a portion of the grant or loan awards to be 
111.22  set aside for projects located in specified congressional 
111.23  districts or other geographical regions specified by the 
111.24  agency.  The agency may adopt rules for awarding grants and 
111.25  loans under this subdivision. 
111.26     Sec. 2.  Minnesota Statutes 2000, section 462A.201, 
111.27  subdivision 6, is amended to read: 
111.28     Subd. 6.  [REPORT.] The agency shall submit a biennial 
111.29  report to the legislature and the governor annually on the use 
111.30  of the housing trust fund account including the number of loans 
111.31  and grants made, the number and types of residential units 
111.32  assisted through the account, the number of households for whom 
111.33  rental assistance payments were provided, and the number of 
111.34  residential units assisted through the account that were rented 
111.35  to or cooperatively owned by persons or families at or below 30 
111.36  percent of the median family income of the metropolitan area at 
112.1   the time of initial occupancy.  
112.2      Sec. 3.  Minnesota Statutes 2000, section 462A.209, is 
112.3   amended to read: 
112.4      462A.209 [HOME OWNERSHIP ASSISTANCE EDUCATION, COUNSELING, 
112.5   AND TRAINING PROGRAM.] 
112.6      Subdivision 1.  [FULL CYCLE HOME OWNERSHIP SERVICES.] 
112.7   The full cycle home ownership services homeownership education, 
112.8   counseling, and training program shall be used to fund provide 
112.9   funding to community-based nonprofit organizations and political 
112.10  subdivisions providing, building capacity to provide, or 
112.11  supporting full cycle lending for to assist them in building the 
112.12  capacity to provide and providing full cycle home ownership 
112.13  services to low and moderate income home buyers and homeowners, 
112.14  including seniors.  The purpose of the program is to encourage 
112.15  private investment in affordable housing and collaboration of 
112.16  nonprofit organizations and political subdivisions with each 
112.17  other and private lenders in providing full cycle lending 
112.18  homeownership services. 
112.19     Subd. 2.  [DEFINITION.] "Full cycle home ownership 
112.20  services" means supporting eligible home buyers and owners 
112.21  homeowners through all phases of purchasing and keeping a home, 
112.22  by providing prepurchase home buyer education,; prepurchase 
112.23  counseling and credit repair,; prepurchase and postpurchase 
112.24  property inspection and technical and financial assistance to 
112.25  buyers in rehabilitating the home,; postpurchase counseling, 
112.26  including home equity conversion loan counseling, mortgage 
112.27  default counseling, postpurchase assistance with home 
112.28  maintenance, entry cost assistance,; foreclosure prevention and 
112.29  assistance; and access to flexible loan products. 
112.30     Subd. 3.  [ELIGIBILITY.] The agency shall establish 
112.31  eligibility criteria for nonprofit organizations and political 
112.32  subdivisions to receive funding under this section.  The 
112.33  eligibility criteria must require the nonprofit organization or 
112.34  political subdivision to provide, to build capacity to provide, 
112.35  or support full cycle home ownership services for eligible home 
112.36  buyers.  The agency may fund a nonprofit organization or 
113.1   political subdivision that will provide full cycle home 
113.2   ownership services by coordinating with one or more other 
113.3   organizations that will provide specific components of full 
113.4   cycle home ownership services.  The agency may make exceptions 
113.5   to providing all components of full cycle lending if justified 
113.6   by the application.  If there are more applicants requesting 
113.7   funding than there are funds available, the agency shall award 
113.8   the funds on a competitive basis and also assure an equitable 
113.9   geographic distribution of the available funds.  The eligibility 
113.10  criteria must require the nonprofit organization or political 
113.11  subdivision to have a demonstrated involvement in the local 
113.12  community and to target the housing affordability needs of the 
113.13  local community or to have demonstrated experience with 
113.14  counseling older persons on housing, or both.  The eligibility 
113.15  criteria may include a requirement for specific training 
113.16  provided by designated state or national entities.  The agency 
113.17  may also include an eligibility criteria that requires counselor 
113.18  certification or organizational accreditation by specified 
113.19  organizations which provide certification or accreditation 
113.20  services.  Partnerships and collaboration with innovative, grass 
113.21  roots, or community-based initiatives shall be encouraged.  The 
113.22  agency shall give priority to nonprofit organizations and 
113.23  political subdivisions that provide matching funds have funding 
113.24  from other sources for full cycle home ownership services.  
113.25  Applicants for funds under section 462A.057 may also apply funds 
113.26  under this program. 
113.27     Subd. 4.  [ENTRY COST HOME OWNERSHIP OPPORTUNITY PROGRAM.] 
113.28  The agency may establish an entry cost home ownership 
113.29  opportunity program, on terms and conditions it deems advisable, 
113.30  to assist individuals with downpayment and closing costs to 
113.31  finance the purchase of a home. 
113.32     Subd. 5.  [SELECTION CRITERIA.] The agency shall take the 
113.33  following criteria into consideration when determining whether 
113.34  to award funds to an eligible organization: 
113.35     (1) to the extent to which there is an equitable geographic 
113.36  distribution of funds among program applicants; 
114.1      (2) the prior experience and documented familiarity of the 
114.2   organization, as may be applicable, in establishing, 
114.3   administering, and maintaining some or all of the components of 
114.4   full cycle homeownership services; 
114.5      (3) the reasonableness of the proposed budget in meeting 
114.6   the program objectives, a demonstrated ability to leverage 
114.7   program money with other sources of funding, and the extent of 
114.8   the leveraging of other sources of funding; 
114.9      (4) the extent to which efforts are targeted towards 
114.10  households with incomes that do not exceed 80 percent of the 
114.11  state or area median income or underserved segments of the local 
114.12  population; and 
114.13     (5) the extent to which program funding does not duplicate 
114.14  other efforts currently available in the local area and will 
114.15  enable, expand, or enhance existing activities. 
114.16     Subd. 6.  [DESIGNATED AREAS.] A program administrator must 
114.17  designate specific areas, communities, or neighborhoods within 
114.18  which the program is proposed to be operated for the purpose of 
114.19  focusing resources. 
114.20     Subd. 7.  [ASSISTANCE TO PREVENT MORTGAGE FORECLOSURES.] (a)
114.21  Program assistance and counseling to prevent mortgage 
114.22  foreclosures or cancellations of contract for deeds includes 
114.23  general information, screening, assessment, referral services, 
114.24  case management, advocacy, and financial assistance to borrowers 
114.25  who are delinquent on mortgage or contract for deed payments. 
114.26     (b) Not more than one-half of funds awarded for foreclosure 
114.27  prevention and assistance activities may be used for mortgage or 
114.28  financial counseling services. 
114.29     (c) Financial assistance consists of payments for 
114.30  delinquent mortgage or contract for deed payments, future 
114.31  mortgage or contract for deed payments for a period of up to six 
114.32  months, property taxes, assessments, utilities, insurance, home 
114.33  improvement repairs, future rent payments for a period of up to 
114.34  six months, and relocation costs if necessary, or other costs 
114.35  necessary to prevent foreclosure. 
114.36     (d) An individual or family may receive a maximum of $5,500 
115.1   of financial assistance to prevent a mortgage foreclosure or the 
115.2   cancellation of a contract for deed. 
115.3      (e) The agency may require the recipient of financial 
115.4   assistance to enter into an agreement with the agency for 
115.5   repayment.  The repayment agreement for mortgages or contract 
115.6   for deed buyers must provide that in the event the property is 
115.7   sold, transferred, or otherwise conveyed, or ceases to be the 
115.8   recipient's principal place of residence, the recipient shall 
115.9   repay all or a portion of the financial assistance.  The agency 
115.10  may take into consideration financial hardship in determining 
115.11  repayment requirements.  The repayment agreement may be secured 
115.12  by a lien on the property for the benefit of the agency. 
115.13     Subd. 8.  [REPORT.] By January 10 of every year, each 
115.14  nonprofit organization that delivers services under this section 
115.15  must submit a report to the agency that summarizes the number of 
115.16  people served and the sources and amounts of nonstate money used 
115.17  to fund the services.  The agency shall annually submit a report 
115.18  to the legislature by February 15. 
115.19     Sec. 4.  Minnesota Statutes 2000, section 462A.21, is 
115.20  amended by adding a subdivision to read: 
115.21     Subd. 27.  [ECONOMIC DEVELOPMENT AND HOUSING CHALLENGE 
115.22  PROGRAM.] The agency may spend money for the purposes of section 
115.23  462A.33 and may pay the costs and expenses necessary and 
115.24  incidental to the development and operation of the program. 
115.25     Sec. 5.  Minnesota Statutes 2000, section 462A.33, 
115.26  subdivision 1, is amended to read: 
115.27     Subdivision 1.  [CREATED.] The economic development and 
115.28  housing challenge program is created to be administered by the 
115.29  agency. 
115.30     (a) The program shall provide grants or loans for the 
115.31  purpose of construction, acquisition, rehabilitation, demolition 
115.32  or removal of existing structures, construction financing, 
115.33  permanent financing, interest rate reduction, refinancing, and 
115.34  gap financing of housing to support economic development and 
115.35  redevelopment activities or job creation or job preservation 
115.36  within a community or region by meeting locally identified 
116.1   housing needs. 
116.2      Gap financing is either: 
116.3      (i) the difference between the costs of the property, 
116.4   including acquisition, demolition, rehabilitation, and 
116.5   construction, and the market value of the property upon sale; or 
116.6      (ii) the difference between the cost of the property and 
116.7   the amount the targeted household can afford for housing, based 
116.8   on industry standards and practices. 
116.9      (b) Preference for grants and loans shall be given to 
116.10  comparable proposals that include regulatory changes or waivers 
116.11  that result in identifiable cost avoidance or cost reductions, 
116.12  such as increased density, flexibility in site development 
116.13  standards, or zoning code requirements.  Preference must also be 
116.14  given among comparable proposals to proposals for projects that 
116.15  are accessible to transportation systems, jobs, schools, and 
116.16  other services. 
116.17     (c) If a grant or loan is used for demolition or removal of 
116.18  existing structures, the cleared land must be used for the 
116.19  construction of housing to be owned or rented by persons who 
116.20  meet the income limits of this section or for other 
116.21  housing-related purposes that primarily benefit the persons 
116.22  residing in the adjacent housing. 
116.23     Sec. 6.  Minnesota Statutes 2000, section 462A.33, 
116.24  subdivision 2, is amended to read: 
116.25     Subd. 2.  [ELIGIBLE RECIPIENTS.] Challenge grants or loans 
116.26  may be made to a city, a private developer, a nonprofit 
116.27  organization, or the owner of the housing, including 
116.28  individuals.  For the purpose of this section, "city" has the 
116.29  meaning given it in section 462A.03, subdivision 21.  Preference 
116.30  shall be given to challenge grants or loans for home ownership.  
116.31  To the extent practicable, grants and loans shall be made so 
116.32  that an approximately equal number of housing units are financed 
116.33  in the metropolitan area, as defined in section 473.121, 
116.34  subdivision 2, and in the nonmetropolitan area. 
116.35     Sec. 7.  Minnesota Statutes 2000, section 462A.33, 
116.36  subdivision 3, is amended to read: 
117.1      Subd. 3.  [CONTRIBUTION REQUIREMENT; REGULATORY 
117.2   FLEXIBILITY.] Fifty percent of the funds appropriated for this 
117.3   section must be used for challenge grants or loans which meet 
117.4   the requirements of this subdivision.  These challenge grants or 
117.5   loans must be used for economically viable homeownership or 
117.6   rental housing proposals that:  
117.7      (1) include a financial or in-kind contribution from an 
117.8   area employer and either a unit of local government or a private 
117.9   philanthropic, religious, or charitable organization; and 
117.10     (2) address the housing needs of the local work force.  
117.11     For the purpose of this subdivision, an employer 
117.12  contribution may consist partially or wholly of the premium paid 
117.13  for federal housing tax credits.  Preference for grants and 
117.14  loans shall be given to comparable proposals that include 
117.15  regulatory changes that result in identifiable cost avoidance or 
117.16  cost reductions, such as increased density, flexibility in site 
117.17  development standards, or zoning code requirements.  
117.18     Preference for grants and loans shall also be given to 
117.19  comparable proposals that include a financial or in-kind 
117.20  contribution from a unit of local government, an area employer, 
117.21  and a private philanthropic, religious, or charitable 
117.22  organization. 
117.23     Sec. 8.  Minnesota Statutes 2000, section 462A.33, 
117.24  subdivision 5, is amended to read: 
117.25     Subd. 5.  [INCOME LIMITS.] Households served through 
117.26  challenge grants or loans must not have incomes at the time of 
117.27  initial occupancy that exceed, for homeownership projects, 115 
117.28  percent of the greater of state or area median income as 
117.29  determined by the United States Department of Housing and Urban 
117.30  Development, and for rental housing projects, 115 80 percent of 
117.31  the greater of state or area median income as determined by the 
117.32  United States Department of Housing and Urban Development except 
117.33  that the housing developed or rehabilitated with challenge fund 
117.34  grants or loans must be affordable to the local work force. 
117.35     Preference among comparable proposals shall be given those 
117.36  that provide housing opportunities for an expanded range of 
118.1   household incomes within a community or that provide housing 
118.2   opportunities for a wide range of incomes within the development.
118.3      Sec. 9.  Minnesota Statutes 2000, section 462A.33, is 
118.4   amended by adding a subdivision to read: 
118.5      Subd. 8.  [LIMITATION ON RETURN.] The limitations on return 
118.6   of eligible mortgagors contained in section 462A.03, subdivision 
118.7   13, do not apply to loans or grants for rental housing if the 
118.8   loans or grants made by the agency, from all sources, are less 
118.9   than 50 percent of the total costs, as determined by the agency. 
118.10     Sec. 10.  [REPEALER.] 
118.11     Minnesota Statutes 2000, sections 462A.201, subdivision 4; 
118.12  462A.207; 462A.209, subdivision 4; 462A.21, subdivision 17; and 
118.13  462A.33, subdivisions 4, 6, and 7, are repealed. 
118.14                             ARTICLE 12 
118.15            WORKFORCE DEVELOPMENT PROGRAM ADMINISTRATION
118.16     Section 1.  Minnesota Statutes 2000, section 116L.02, is 
118.17  amended to read: 
118.18     116L.02 [JOB SKILLS PARTNERSHIP PROGRAM.] 
118.19     (a) The Minnesota job skills partnership program is created 
118.20  to act as a catalyst to bring together employers with specific 
118.21  training needs with educational or other nonprofit institutions 
118.22  which can design programs to fill those needs.  The partnership 
118.23  shall work closely with employers to train and place workers in 
118.24  identifiable positions as well as assisting educational or other 
118.25  nonprofit institutions in developing training programs that 
118.26  coincide with current and future employer requirements.  The 
118.27  partnership shall provide grants to educational or other 
118.28  nonprofit institutions for the purpose of training displaced 
118.29  workers.  A participating business must match the grant-in-aid 
118.30  made by the Minnesota job skills partnership.  The match may be 
118.31  in the form of funding, equipment, or faculty. 
118.32     (b) The partnership program shall administer the health 
118.33  care and human services worker training and retention program 
118.34  under sections 116L.10 to 116L.15. 
118.35     (c) The partnership board created in section 116L.03 is the 
118.36  lead state agency for workforce policy and program development 
119.1   and coordination. 
119.2      Sec. 2.  Minnesota Statutes 2000, section 116L.03, is 
119.3   amended to read: 
119.4      116L.03 [BOARD.] 
119.5      Subdivision 1.  [MEMBERS.] The partnership shall be 
119.6   governed by a board of 12 13 directors.  
119.7      Subd. 2.  [APPOINTMENT.] The Minnesota job skills 
119.8   partnership board consists of:  nine seven members appointed by 
119.9   the governor, the chair of the governor's workforce development 
119.10  council, the commissioner of trade and economic development, the 
119.11  commissioner of economic security, and the chancellor, or the 
119.12  chancellor's designee, of the Minnesota state colleges and 
119.13  universities, the president, or the president's designee, of the 
119.14  University of Minnesota, and two nonlegislator members, one 
119.15  appointed by the subcommittee on committees of the senate 
119.16  committee on rules and administration and one appointed by the 
119.17  speaker of the house.  If the chancellor or the president of the 
119.18  university makes a designation under this subdivision, the 
119.19  designee must have experience in technical education.  Two Four 
119.20  of the appointed members must be representatives from members of 
119.21  the governor's workforce development council, of whom two must 
119.22  represent organized labor and two must represent business and 
119.23  industry.  One of the appointed members must be a representative 
119.24  of a nonprofit organization that provides workforce development 
119.25  or job training services. 
119.26     Subd. 3.  [QUALIFICATIONS.] Members must have expertise in, 
119.27  and be representative of the following fields of education, job 
119.28  skills training, labor, business, and government.  
119.29     Subd. 4.  [CHAIR.] The chair shall be appointed by the 
119.30  governor.  
119.31     Subd. 5.  [TERMS.] The terms of appointed members shall be 
119.32  for four years except for the initial appointments.  The initial 
119.33  appointments of the governor shall have the following terms:  
119.34  two members each for one, two, three, and four years.  
119.35  Compensation for board members is as provided in section 
119.36  15.0575, subdivision 3. 
120.1      Subd. 7.  [OFFICES.] The board may hire an executive 
120.2   director and staff to carry out its duties.  The board shall 
120.3   have its own offices and may contract with the department of 
120.4   trade and economic development for administrative services.  The 
120.5   department of trade and economic development shall 
120.6   provide additional staff and administrative services for at the 
120.7   request of the board.  
120.8      Subd. 8.  [PARTNERSHIP BOARD.] The board shall administer 
120.9   and coordinate the state's workforce development activities.  
120.10  The board shall hire staff to conduct workforce policy 
120.11  development, research, and program evaluations. 
120.12     Sec. 3.  Minnesota Statutes 2000, section 116L.04, is 
120.13  amended by adding a subdivision to read: 
120.14     Subd. 4.  [PERFORMANCE STANDARDS AND REPORTING.] By January 
120.15  15, 2002, the board must develop performance standards for 
120.16  workforce development and job training programs receiving state 
120.17  funding.  The standards may vary across program types.  The 
120.18  board may contract with a consultant to develop the performance 
120.19  standards.  The board must consult with stakeholder advocacy 
120.20  groups, nonprofit service providers, and local workforce 
120.21  councils in the development of both performance standards and 
120.22  reporting requirements.  The adult standards must at a minimum 
120.23  measure: 
120.24     (1) the employability levels of individuals as defined by 
120.25  basic skill level, the amount of work experience, and barriers 
120.26  to employment prior to program entry; 
120.27     (2) the individual's annual income and employability level 
120.28  for the 12 months prior to entering the program, the starting 
120.29  annual income upon placement after completing the program, 
120.30  employability level and annual income one year after completion 
120.31  of the program, and the individual's reported satisfaction; 
120.32     (3) the program completion rate, placement rate, 
120.33  employability level upon placement, and one-year retention rate; 
120.34  and 
120.35     (4) the governmental cost per placement and per job 
120.36  retained at one year and the percentage of program funding 
121.1   coming from the state and other levels of government. 
121.2   After January 15, 2002, all workforce development programs 
121.3   receiving state funds must submit an annual performance report 
121.4   to the board.  The board may develop a uniform format for the 
121.5   report and prescribe the manner in which the report is required 
121.6   to be submitted.  
121.7      Sec. 4.  Minnesota Statutes 2000, section 116L.05, is 
121.8   amended by adding a subdivision to read: 
121.9      Subd. 4.  [ANNUAL LEGISLATIVE RECOMMENDATIONS.] By January 
121.10  15 of each year, the board must submit recommendations to the 
121.11  house and senate committees with jurisdiction over workforce 
121.12  development programs, regarding modifications to, or elimination 
121.13  of, existing workforce development programs and the potential 
121.14  implementation of new programs.  The recommendations must 
121.15  include recommendations regarding funding levels and sources.  
121.16     Sec. 5.  Minnesota Statutes 2000, section 268.022, 
121.17  subdivision 2, is amended to read: 
121.18     Subd. 2.  [DISBURSEMENT OF SPECIAL ASSESSMENT FUNDS.] (a) 
121.19  The money collected under this section shall be deposited in the 
121.20  state treasury and credited to the workforce development fund to 
121.21  provide for employment and training programs.  The workforce 
121.22  development fund is created as a special account in the state 
121.23  treasury. 
121.24     (b) All money in the fund not otherwise appropriated or 
121.25  transferred is appropriated to the commissioner who must act as 
121.26  the fiscal agent for the money and must disburse that money for 
121.27  the purposes of this section, not allowing the money to be used 
121.28  for any other obligation of the state.  All money in the 
121.29  workforce development fund shall be deposited, administered, and 
121.30  disbursed in the same manner and under the same conditions and 
121.31  requirements as are provided by law for the other special 
121.32  accounts in the state treasury, except that all interest or net 
121.33  income resulting from the investment or deposit of money in the 
121.34  fund shall accrue to the fund for the purposes of the fund. 
121.35     (c) No more than five percent of the funds collected in 
121.36  each fiscal year may be used by the department of economic 
122.1   security for its administrative costs. 
122.2      (d) Reimbursement for costs related to collection of the 
122.3   special assessment shall be in an amount negotiated between the 
122.4   commissioner and the United States Department of Labor. 
122.5      (e) The funds appropriated to the commissioner, less 
122.6   amounts under paragraphs (c) and (d) shall be allocated as 
122.7   follows:  
122.8      (1) 40 percent to be allocated annually to substate 
122.9   grantees for provision of expeditious response activities under 
122.10  section 268.9771 and worker adjustment services under section 
122.11  268.9781; and 
122.12     (2) 60 percent to be allocated to the job skills 
122.13  partnership board for activities and programs authorized 
122.14  under chapter 116L and sections 268.975 to 268.98. 
122.15     (f) Any funds not allocated, obligated, or expended in a 
122.16  fiscal year shall be available for allocation, obligation, and 
122.17  expenditure in the following fiscal year. 
122.18     Sec. 6.  Minnesota Statutes 2000, section 268.085, is 
122.19  amended by adding a subdivision to read: 
122.20     Subd. 1a.  [TRAINING SERVICES.] The commissioner must 
122.21  provide an applicant who is not job attached and is receiving 
122.22  benefits, notice of and opportunity for, employment and training 
122.23  services through a Minnesota workforce center. 
122.24     "Job attached" means the applicant is employed, on a leave 
122.25  of absence, or on temporary or seasonal layoff from employment 
122.26  due to lack of work. 
122.27     Sec. 7.  Minnesota Statutes 2000, section 268.665, is 
122.28  amended by adding a subdivision to read: 
122.29     Subd. 2a.  [EXECUTIVE COMMITTEE.] An executive committee of 
122.30  the governor's workforce development council is created.  The 
122.31  executive committee consists of the council chair, two council 
122.32  members representing organized labor, two council members 
122.33  representing business and industry, one council member 
122.34  representing a community-based organization, and one council 
122.35  member representing higher educational institutions.  Executive 
122.36  committee members are appointed by the governor.  
123.1      Sec. 8.  Minnesota Statutes 2000, section 268.665, is 
123.2   amended by adding a subdivision to read: 
123.3      Subd. 3a.  [EXECUTIVE COMMITTEE DUTIES.] The executive 
123.4   committee must develop performance standards for the state 
123.5   workforce centers.  By January 15, 2002, and each year 
123.6   thereafter, the executive committee shall submit an annual 
123.7   report to the senate and house committees with jurisdiction over 
123.8   workforce development programs regarding the performance and 
123.9   outcomes of the workforce centers.  The report must provide 
123.10  recommendations regarding workforce center funding levels and 
123.11  sources, program changes, and administrative changes.  
123.12     Sec. 9.  Minnesota Statutes 2000, section 268.666, is 
123.13  amended by adding a subdivision to read: 
123.14     Subd. 6.  [ADVANCED EMPLOYMENT AND TRAINING.] Local 
123.15  workforce centers shall establish an advanced reemployment 
123.16  program to monitor and contact underemployed individuals and 
123.17  inform them of advanced placement and training opportunities.  
123.18     Sec. 10.  [WORKFORCE CENTERS STRATEGIC PLAN.] 
123.19     The executive committee of the governor's workforce 
123.20  development council shall develop a strategic plan regarding the 
123.21  appropriate placement and number of workforce centers within the 
123.22  state.  The executive committee must consult with local 
123.23  workforce boards when determining the placement and number of 
123.24  workforce centers in their area.  The plan must recognize the 
123.25  differing employment needs of various regions, the workforce 
123.26  population within proximity of a center, and the potential for 
123.27  colocation of the workforce centers with available educational 
123.28  institutions.  By January 15, 2002, the executive committee 
123.29  shall submit the plan and recommendations for closure or 
123.30  consolidation of workforce centers to the senate and house 
123.31  committees with jurisdiction over workforce development programs.
123.32                             ARTICLE 13 
123.33                             ELECTIONS 
123.34     Section 1.  Minnesota Statutes 2000, section 10A.01, 
123.35  subdivision 9, is amended to read: 
123.36     Subd. 9.  [CAMPAIGN EXPENDITURE.] (a) "Campaign 
124.1   expenditure" or "expenditure" means a purchase or payment of 
124.2   money or anything of value, or an advance of credit, made or 
124.3   incurred for the purpose of influencing the nomination or 
124.4   election of a candidate or for the purpose of promoting or 
124.5   defeating a ballot question.  "Expenditure" includes a cost 
124.6   incurred to design, produce, or disseminate a communication if 
124.7   the communication contains words such as "vote for," "reelect," 
124.8   "(name of candidate) for (office)," "vote against," "defeat," or 
124.9   another phrase or campaign slogan that in context can have no 
124.10  reasonable meaning other than to advocate support for or 
124.11  opposition to the nomination or election of one or more clearly 
124.12  identified candidates. 
124.13     (b) "Expenditure" is presumed to include a cost incurred to 
124.14  design, produce, or disseminate a communication if the 
124.15  communication names or depicts one or more clearly identified 
124.16  candidates, is disseminated during the 45 days before a primary 
124.17  election, during the 60 days before a general election, or 
124.18  during a special election cycle until election day, and the cost 
124.19  exceeds the following amounts for a communication naming or 
124.20  depicting a candidate for the following offices: 
124.21     (1) $500 for a candidate for governor, lieutenant governor, 
124.22  attorney general, secretary of state, or state auditor; or 
124.23     (2) $100 for a candidate for state senator or 
124.24  representative. 
124.25     An individual or association presumed under this paragraph 
124.26  to have made an expenditure may rebut the presumption by a 
124.27  written statement signed by the spender and filed with the board 
124.28  stating that the cost was not incurred with intent to influence 
124.29  the nomination, election, or defeat of any candidate, supported 
124.30  by any additional evidence the spender chooses to submit.  The 
124.31  board may consider any additional evidence it deems relevant and 
124.32  material and must determine by a preponderance of the evidence 
124.33  whether the cost was incurred with intent to influence the 
124.34  nomination, election, or defeat of a candidate. 
124.35     (c) An expenditure is considered to be made in the year in 
124.36  which the candidate made the purchase of goods or services or 
125.1   incurred an obligation to pay for goods or services. 
125.2      (d) An expenditure made for the purpose of defeating a 
125.3   candidate is considered made for the purpose of influencing the 
125.4   nomination or election of that candidate or any opponent of that 
125.5   candidate. 
125.6      (e) Except as provided in clause (1), "expenditure" 
125.7   includes the dollar value of a donation in kind. 
125.8      "Expenditure" does not include: 
125.9      (1) noncampaign disbursements as defined in subdivision 26; 
125.10     (2) services provided without compensation by an individual 
125.11  volunteering personal time on behalf of a candidate, ballot 
125.12  question, political committee, political fund, principal 
125.13  campaign committee, or party unit; or 
125.14     (3) the publishing or broadcasting of news items or 
125.15  editorial comments by the news media, if the news medium is not 
125.16  owned by or affiliated with any candidate or principal campaign 
125.17  committee; or 
125.18     (4) a cost incurred by an association for a communication 
125.19  targeted to inform solely its own dues-paying members of the 
125.20  association's position on a candidate. 
125.21     Sec. 2.  Minnesota Statutes 2000, section 10A.01, 
125.22  subdivision 18, is amended to read: 
125.23     Subd. 18.  [INDEPENDENT EXPENDITURE.] (a) "Independent 
125.24  expenditure" means an expenditure expressly advocating the 
125.25  election or defeat of a clearly identified candidate, if the 
125.26  expenditure that is made without the express or implied consent, 
125.27  authorization, or cooperation of, and not in concert with or at 
125.28  the request or suggestion of, any candidate or any candidate's 
125.29  principal campaign committee or agent.  An independent 
125.30  expenditure is not a contribution to that candidate.  An 
125.31  expenditure by a political party or political party unit in a 
125.32  race where the political party has a candidate on the ballot is 
125.33  not an independent expenditure. 
125.34     (b) An expenditure is presumed to be not independent if, 
125.35  for example: 
125.36     (1) in the same election cycle in which the expenditure 
126.1   occurs, the spender or the spender's agent retains the 
126.2   professional services of an individual or entity that, in a 
126.3   nonministerial capacity, provides or has provided 
126.4   campaign-related service, including polling or other campaign 
126.5   research, media consulting or production, direct mail, or 
126.6   fundraising, to a candidate supported by the spender for 
126.7   nomination or election to the same office as any candidate whose 
126.8   nomination or election the expenditure is intended to influence 
126.9   or to a political party working in coordination with the 
126.10  supported candidate; 
126.11     (2) the expenditure pays for a communication that 
126.12  disseminates, in whole or in substantial part, a broadcast or 
126.13  written, graphic, or other form of campaign material designed, 
126.14  produced, or distributed by the candidate, the candidate's 
126.15  principal campaign committee, or their agents; 
126.16     (3) the expenditure is based on information about the 
126.17  candidate's electoral campaign plans, projects, or needs that is 
126.18  provided by the candidate, the candidate's principal campaign 
126.19  committee, or their agents directly or indirectly to the spender 
126.20  or the spender's agent, with an express or tacit understanding 
126.21  that the spender is considering making the expenditure; 
126.22     (4) before the election, the spender or the spender's agent 
126.23  informs a candidate or the principal campaign committee or agent 
126.24  of a candidate for the same office as a candidate clearly 
126.25  identified in a communication paid for by the expenditure about 
126.26  the communication's contents; timing, location, mode, or 
126.27  frequency of dissemination; or intended audience; or 
126.28     (5) in the same election cycle in which the expenditure 
126.29  occurs, the spender or the spender's agent is serving or has 
126.30  served in an executive, policymaking, fundraising, or advisory 
126.31  position with the candidate's campaign or has participated in 
126.32  strategic or policymaking discussions with the candidate's 
126.33  campaign relating to the candidate's pursuit of nomination or 
126.34  election to office and the candidate is pursuing the same office 
126.35  as a candidate whose nomination or election the expenditure is 
126.36  intended to influence. 
127.1      An individual or association presumed under this paragraph 
127.2   to have made an expenditure that was not independent may rebut 
127.3   the presumption by a written statement signed by the spender and 
127.4   filed with the board stating that the expenditure was made 
127.5   without the express or implied consent, authorization, or 
127.6   cooperation of, and not in concert with or at the request or 
127.7   suggestion of, any candidate or any candidate's principal 
127.8   campaign committee or agent, supported by any additional 
127.9   evidence the spender chooses to submit.  The board may consider 
127.10  any additional evidence it deems relevant and material and must 
127.11  determine by a preponderance of the evidence whether the 
127.12  expenditure was independent.  
127.13     (c) An expenditure by anyone other than a principal 
127.14  campaign committee that does not qualify as an independent 
127.15  expenditure under this subdivision is deemed to be an approved 
127.16  expenditure under subdivision 4. 
127.17     Sec. 3.  Minnesota Statutes 2000, section 10A.20, 
127.18  subdivision 6b, is amended to read: 
127.19     Subd. 6b.  [INDEPENDENT EXPENDITURES; NOTICE; REPORT.] (a) 
127.20  Within 24 hours after an individual, political committee, or 
127.21  political fund makes or becomes obligated by oral or written 
127.22  agreement to make disseminates a communication paid for by an 
127.23  independent expenditure in excess of $100 that causes the 
127.24  aggregate of independent expenditures by that individual, 
127.25  political committee, or political fund during that election 
127.26  cycle to exceed $500 in a legislative race or $2,000 in a 
127.27  statewide race, other than an expenditure by an association for 
127.28  a communication targeted to inform solely its own dues-paying 
127.29  members of the association's position on a candidate, the 
127.30  individual, political committee, or political fund must file 
127.31  with the board an affidavit notifying the board post on the 
127.32  board's Web site a notice of the intent to make the independent 
127.33  expenditure and serve provide a copy of the affidavit on notice 
127.34  to each candidate in the affected race and on the treasurer of 
127.35  the candidate's principal campaign committee.  The purpose of 
127.36  this notice is to inform the public that the communication was 
128.1   not paid for by the candidate or by the public. 
128.2      The notices must be received by the board and candidates 
128.3   within the 24-hour period.  The affidavit notice must contain 
128.4   the information with respect to the expenditure that is required 
128.5   to be reported under subdivision 3, paragraph (g); except that 
128.6   if an expenditure is reported before it is made, the notice must 
128.7   include a reasonable estimate of the anticipated amount.  Each 
128.8   new expenditure requires a new notice. 
128.9      (b) An individual or association that has made an 
128.10  independent expenditure of which notice was required under this 
128.11  subdivision must submit to the board within 24 hours after 
128.12  disseminating a communication, a description of the content of 
128.13  the communication for which the expenditure was made, including 
128.14  a copy of any printed advertisement or a transcript of any 
128.15  broadcast advertisement. 
128.16     (c) An individual or the treasurer of a political committee 
128.17  or political fund who fails to give notice as required by this 
128.18  subdivision, or who files a false affidavit of notice, is guilty 
128.19  of a gross misdemeanor and is subject to a civil fine of up to 
128.20  four times the amount of the independent expenditure stated in 
128.21  the notice or of which notice was required, whichever is greater.
128.22     (d) An affidavit of notice is false if it indicates that an 
128.23  independent expenditure was made on behalf of one candidate when 
128.24  the facts and circumstances show that the intent of the 
128.25  expenditure was actually to defeat that candidate and benefit an 
128.26  opponent. 
128.27     Sec. 4.  Minnesota Statutes 2000, section 10A.20, is 
128.28  amended by adding a subdivision to read: 
128.29     Subd. 15.  [INTERNET PUBLICATION.] (a) The board must 
128.30  publish the following information on its Web site: 
128.31     (1) information reported under subdivision 3, paragraph 
128.32  (b), by a principal campaign committee, except for the home 
128.33  street addresses of contributors; and 
128.34     (2) information reported on any independent expenditure 
128.35  totaling $1,000 or more in any legislative district. 
128.36     (b) The information must be published within seven days 
129.1   after the report is due for pre-primary and pre-general election 
129.2   reports. 
129.3      (c) The publication must be in a form that permits a user 
129.4   of the Web site to search the reports and prepare comparisons 
129.5   and cross-tabulations among the various contributors and 
129.6   principal campaign committees. 
129.7      Sec. 5.  Minnesota Statutes 2000, section 10A.25, 
129.8   subdivision 1, is amended to read: 
129.9      Subdivision 1.  [LIMITS ARE VOLUNTARY.] The expenditure 
129.10  limits imposed by this section on a candidate apply only to a 
129.11  candidate who has signed an agreement under section 10A.322 to 
129.12  be bound by them as a condition of receiving a public subsidy 
129.13  for the candidate's campaign.  The prohibition imposed by this 
129.14  section on a political party applies only to a political party 
129.15  that has signed an agreement under section 10A.322 to be bound 
129.16  by it as a condition of receiving a public subsidy for the 
129.17  party's activities or participating in the political 
129.18  contribution refund program under section 290.06, subdivision 23.
129.19     Sec. 6.  Minnesota Statutes 2000, section 10A.25, is 
129.20  amended by adding a subdivision to read: 
129.21     Subd. 14.  [INDEPENDENT EXPENDITURES BY POLITICAL PARTIES.] 
129.22  A political party or party unit must not make an independent 
129.23  expenditure. 
129.24     Sec. 7.  Minnesota Statutes 2000, section 10A.25, is 
129.25  amended by adding a subdivision to read: 
129.26     Subd. 15.  [MATCHING INDEPENDENT EXPENDITURES.] (a) Within 
129.27  24 hours after receipt of a notice of independent expenditures 
129.28  under section 10A.20, subdivision 6b, the board must notify each 
129.29  candidate in the affected race of the amount of the independent 
129.30  expenditure.  For purposes of this subdivision, before the 
129.31  primary election, "opponent" means the other candidates whose 
129.32  names are on the ballot for the primary of the same major party 
129.33  or, if there are none, the candidates whose names will be on the 
129.34  ballot for the general election.  
129.35     (b) If the independent expenditure advocates the defeat of 
129.36  a candidate or the election of the candidate's opponent, the 
130.1   spending limit of the candidate is increased by the amount of 
130.2   the independent expenditure. 
130.3      (c) An independent expenditure matching account is 
130.4   established in the state treasury.  $3,500,000 for each state 
130.5   general election is appropriated from the general fund for 
130.6   transfer to the independent expenditure matching account.  The 
130.7   money in the account is appropriated to the board to make loans 
130.8   to candidates who: 
130.9      (1) have agreed to be bound by the spending limits in this 
130.10  section; 
130.11     (2) are the targets of independent expenditures made during 
130.12  the 14 days before a primary or election; and 
130.13     (3) do not have enough money to respond to the independent 
130.14  expenditure by exceeding their spending limit under paragraph 
130.15  (b). 
130.16     To receive a loan from the account, a candidate must agree 
130.17  to repay the loan within six months.  Repayments must be 
130.18  credited to the account. 
130.19     (d) The unobligated balance in the account on June 30 
130.20  following the state general election is canceled to the general 
130.21  fund. 
130.22     (e) A candidate who is the target of an independent 
130.23  expenditure may accept additional contributions from political 
130.24  party units to match the amount of the independent expenditure. 
130.25     (f) A candidate who is the target of an independent 
130.26  expenditure for which no notice has been filed, posted, or 
130.27  provided under section 10A.20, subdivision 6b, may make 
130.28  additional expenditures under paragraph (b) in an amount equal 
130.29  to the estimated amount of the independent expenditure.  The 
130.30  targeted candidate must file with the board an affidavit stating 
130.31  the facts surrounding the unreported independent expenditure and 
130.32  the basis for the estimated amount of the independent 
130.33  expenditure.  If the targeted candidate overestimates the amount 
130.34  of an independent expenditure that is ultimately reported to the 
130.35  board by more than $500 or ten percent of the independent 
130.36  expenditure, whichever is less, the targeted candidate must pay 
131.1   a penalty to the board of twice the amount of the overestimate. 
131.2      (g) A candidate who obtains a loan under paragraph (c) and 
131.3   additional contributions from political party units under 
131.4   paragraph (e) must use the contributions to repay the loan. 
131.5      Sec. 8.  Minnesota Statutes 2000, section 10A.27, 
131.6   subdivision 1, is amended to read: 
131.7      Subdivision 1.  [CONTRIBUTION LIMITS.] (a) Except as 
131.8   provided in subdivision 2, a candidate must not permit the 
131.9   candidate's principal campaign committee to accept aggregate 
131.10  contributions made or delivered by any individual, political 
131.11  committee, or political fund in excess of the following: 
131.12     (1) to candidates for governor and lieutenant governor 
131.13  running together, $2,000 in an election year for the office 
131.14  sought and $500 in other years; 
131.15     (2) to a candidate for attorney general, $1,000 in an 
131.16  election year for the office sought and $200 in other years; 
131.17     (3) to a candidate for the office of secretary of state or 
131.18  state auditor, $500 in an election year for the office sought 
131.19  and $100 in other years; 
131.20     (4) to a candidate for state senator, $500 in an election 
131.21  year for the office sought and $100 in other years; and 
131.22     (5) to a candidate for state representative, $500 in an 
131.23  election year for the office sought and $100 in the other year. 
131.24     (b) The following deliveries are not subject to the 
131.25  bundling limitation in this subdivision: 
131.26     (1) delivery of contributions collected by a member of the 
131.27  candidate's principal campaign committee, such as a block worker 
131.28  or a volunteer who hosts a fund raising event, to the 
131.29  committee's treasurer; and 
131.30     (2) a delivery made by an individual on behalf of the 
131.31  individual's spouse. 
131.32     Sec. 9.  Minnesota Statutes 2000, section 10A.27, 
131.33  subdivision 2, is amended to read: 
131.34     Subd. 2.  [POLITICAL PARTY LIMIT.] A candidate must not 
131.35  permit the candidate's principal campaign committee to accept 
131.36  contributions from any political party units in aggregate in 
132.1   excess of ten times the amount that may be contributed to that 
132.2   candidate as set forth in subdivision 1 or 20 times that amount 
132.3   in the case of a candidate for state senator. 
132.4      Sec. 10.  Minnesota Statutes 2000, section 10A.27, 
132.5   subdivision 10, is amended to read: 
132.6      Subd. 10.  [LIMITED PERSONAL CONTRIBUTIONS LIMITS ON 
132.7   CANDIDATES WHO ACCEPT PUBLIC SUBSIDIES.] A candidate who accepts 
132.8   a public subsidy may not: 
132.9      (1) contribute to the candidate's own campaign during a 
132.10  year more than ten times the candidate's election year 
132.11  contribution limit under subdivision 1; or 
132.12     (2) accept or permit the candidate's principal campaign 
132.13  committee to accept any contribution from a lobbyist. 
132.14     Sec. 11.  Minnesota Statutes 2000, section 10A.275, 
132.15  subdivision 1, is amended to read: 
132.16     Subdivision 1.  [EXCEPTIONS.] Notwithstanding other 
132.17  provisions of this chapter, the following expenditures by a 
132.18  party unit, or two or more party units acting together, with at 
132.19  least one party unit being either:  the state committee or the 
132.20  party organization within a congressional district, county, or 
132.21  legislative district, are not considered contributions to or 
132.22  expenditures on behalf of a candidate for the purposes of 
132.23  section 10A.25 or 10A.27 and must not be allocated to candidates 
132.24  under section 10A.20, subdivision 3, paragraph (g): 
132.25     (1) expenditures on behalf of candidates of that party 
132.26  generally without referring to any of them specifically in a 
132.27  published, posted, or broadcast advertisement; 
132.28     (2) expenditures for the preparation, display, mailing, or 
132.29  other distribution of an official party sample ballot 
132.30  listing with roughly equal emphasis the names of three or more 
132.31  individuals whose names are to appear on the ballot; 
132.32     (3) expenditures for a telephone conversation including 
132.33  mentioning with roughly equal emphasis the names of three or 
132.34  more individuals whose names are to appear on the ballot; or 
132.35     (4) expenditures for a political party fundraising effort 
132.36  on behalf of three or more candidates; or 
133.1      (5) expenditures for party committee staff services that 
133.2   benefit three or more candidates in a year that is not an 
133.3   election year for any of them.  
133.4      Sec. 12.  Minnesota Statutes 2000, section 10A.28, 
133.5   subdivision 1, is amended to read: 
133.6      Subdivision 1.  [EXCEEDING EXPENDITURE LIMITS.] (a) A 
133.7   candidate subject to the expenditure limits in section 10A.25 
133.8   who permits the candidate's principal campaign committee to make 
133.9   expenditures or permits approved expenditures to be made on the 
133.10  candidate's behalf in excess of the limits imposed by section 
133.11  10A.25, as adjusted by section 10A.255, is subject to a civil 
133.12  fine of up to four times the amount by which the expenditures 
133.13  exceeded the limit. 
133.14     (b) The chair of a political party or party unit subject to 
133.15  the prohibition in section 10A.25 that makes expenditures in 
133.16  violation of section 10A.25 is subject to a civil fine of up to 
133.17  four times the amount of the expenditures. 
133.18     Sec. 13.  Minnesota Statutes 2000, section 10A.31, 
133.19  subdivision 3a, is amended to read: 
133.20     Subd. 3a.  [QUALIFICATION OF POLITICAL PARTIES.] (a) A 
133.21  major political party qualifies for inclusion on the income tax 
133.22  form and property tax refund return as provided in subdivision 3 
133.23  if it qualifies as a major political party by July 1 of the 
133.24  taxable year. 
133.25     (b) A minor political party qualifies for inclusion on the 
133.26  income tax form and property tax refund return as provided in 
133.27  subdivision 3 if the secretary of state certifies to the 
133.28  commissioner of revenue it qualifies as a minor party statewide 
133.29  by July 1 of the taxable year that the party satisfies the 
133.30  following conditions:  
133.31     (1) in the last general election, the party ran a candidate 
133.32  for the office of governor and lieutenant governor, secretary of 
133.33  state, state auditor, or attorney general, who received votes in 
133.34  each county that in the aggregate total at least one percent of 
133.35  the total number of individuals who voted in the election; 
133.36     (2) it is a political party, not a principal campaign 
134.1   committee; and 
134.2      (3) it has held a state convention in the last two years 
134.3   and an officer of the party has filed with the secretary of 
134.4   state a certification to that effect. 
134.5      The secretary of state shall notify each major and minor 
134.6   political party by the first Monday in January of each 
134.7   odd-numbered year of the conditions necessary for the party to 
134.8   participate in income tax form and property tax refund return 
134.9   programs. 
134.10     The secretary of state shall notify each political party, 
134.11  the commissioner of revenue, and the campaign finance and public 
134.12  disclosure board by July 1 of each year and following 
134.13  certification of the results of each general election of the 
134.14  parties that qualify for inclusion on the income tax form and 
134.15  property tax refund return as provided in subdivision 3. 
134.16     A major or minor political party whose candidates fail to 
134.17  receive a sufficient number of votes at a state general election 
134.18  to retain major or minor party status loses that status as of 
134.19  December 31 following the general election. 
134.20     Sec. 14.  Minnesota Statutes 2000, section 10A.31, 
134.21  subdivision 5, is amended to read: 
134.22     Subd. 5.  [ALLOCATION.] (a)  [GENERAL ACCOUNT.] In each 
134.23  calendar year the money in the general account must be allocated 
134.24  to candidates as follows: 
134.25     (1) 21 percent for the offices of governor and lieutenant 
134.26  governor together; 
134.27     (2) 4.2 percent for the office of attorney general; 
134.28     (3) 2.4 percent each for the offices of secretary of state 
134.29  and state auditor; 
134.30     (4) in each calendar year during the period in which state 
134.31  senators serve a four-year term, 23-1/3 percent for the office 
134.32  of state senator, and 46-2/3 percent for the office of state 
134.33  representative; and 
134.34     (5) in each calendar year during the period in which state 
134.35  senators serve a two-year term, 35 percent each for the offices 
134.36  of state senator and state representative. 
135.1      (b)  [PARTY ACCOUNT.] In each calendar year the money in 
135.2   each party account must be allocated as follows: 
135.3      (1) 14 percent for the offices of governor and lieutenant 
135.4   governor together; 
135.5      (2) 2.8 percent for the office of attorney general; 
135.6      (3) 1.6 percent each for the offices of secretary of state 
135.7   and state auditor; 
135.8      (4) in each calendar year during the period in which state 
135.9   senators serve a four-year term, 23-1/3 percent for the office 
135.10  of state senator, and 46-2/3 percent for the office of state 
135.11  representative; 
135.12     (5) in each calendar year during the period in which state 
135.13  senators serve a two-year term, 35 percent each for the offices 
135.14  of state senator and state representative; and 
135.15     (6) ten percent for the state committee of a political 
135.16  party that has signed and filed with the board a spending limit 
135.17  agreement under section 10A.322. 
135.18     Money allocated to each state committee under clause (6) 
135.19  must be deposited in a separate account and must be spent for 
135.20  only those items enumerated in section 10A.275.  Money allocated 
135.21  to a state committee under clause (6) must be paid to the 
135.22  committee by the board as it is received in the account on a 
135.23  monthly basis, with payment on the 15th day of the calendar 
135.24  month following the month in which the returns were processed by 
135.25  the department of revenue, provided that these distributions 
135.26  would be equal to 90 percent of the amount of money indicated in 
135.27  the department of revenue's weekly unedited reports of income 
135.28  tax returns and property tax refund returns processed in the 
135.29  month, as notified by the department of revenue to the board.  
135.30  The amounts paid to each state committee are subject to biennial 
135.31  adjustment and settlement at the time of each certification 
135.32  required of the commissioner of revenue under subdivisions 7 and 
135.33  10.  If the total amount of payments received by a state 
135.34  committee for the period reflected on a certification by the 
135.35  department of revenue is different from the amount that should 
135.36  have been received during the period according to the 
136.1   certification, each subsequent monthly payment must be increased 
136.2   or decreased to the fullest extent possible until the amount of 
136.3   the overpayment is recovered or the underpayment is distributed. 
136.4      Money not allocated to a state committee under clause (6) 
136.5   because the state committee has not signed and filed with the 
136.6   board a spending limit agreement under section 10A.322 must be 
136.7   canceled to the general fund. 
136.8      Sec. 15.  Minnesota Statutes 2000, section 10A.31, 
136.9   subdivision 7, is amended to read: 
136.10     Subd. 7.  [DISTRIBUTION OF GENERAL ACCOUNT.] (a) Within two 
136.11  weeks after certification by the state canvassing board of As 
136.12  soon as the board has obtained the results of the general 
136.13  primary election from the secretary of state, but no later than 
136.14  one week after certification of the primary results by the state 
136.15  canvassing board, the board must distribute the available money 
136.16  in the general account, as certified by the commissioner of 
136.17  revenue on November September 1 and according to allocations set 
136.18  forth in subdivision 5, in equal amounts to all candidates of a 
136.19  major political party whose names are to appear on the ballot in 
136.20  the general election and who: 
136.21     (1) have signed a spending limit agreement under section 
136.22  10A.322; 
136.23     (2) have filed the affidavit of contributions required by 
136.24  section 10A.323; and 
136.25     (3) were opposed in either the primary election or the 
136.26  general election; and.  
136.27     (4) are either a candidate for statewide office who 
136.28  received at least five percent of the votes cast in the general 
136.29  election for that office or a candidate for legislative office 
136.30  who received at least ten percent of the votes cast in the 
136.31  general election for that seat. 
136.32     (b) The public subsidy under this subdivision may not be 
136.33  paid in an amount that would cause the sum of the public subsidy 
136.34  paid from the party account plus the public subsidy paid from 
136.35  the general account to exceed 50 percent of the expenditure 
136.36  limit for the candidate or 50 percent of the expenditure limit 
137.1   that would have applied to the candidate if the candidate had 
137.2   not been freed from expenditure limits under section 10A.25, 
137.3   subdivision 10.  Money from the general account not paid to a 
137.4   candidate because of the 50 percent limit must be distributed 
137.5   equally among all other qualifying candidates for the same 
137.6   office until all have reached the 50 percent limit or the 
137.7   balance in the general account is exhausted. 
137.8      Sec. 16.  Minnesota Statutes 2000, section 10A.31, is 
137.9   amended by adding a subdivision to read: 
137.10     Subd. 7a.  [PENALTY FOR FAILING TO FILE REPORT.] Payments 
137.11  under subdivisions 6 and 7 to a candidate who fails to file the 
137.12  campaign report due before the primary must be reduced as 
137.13  provided by this subdivision.  Payments must be reduced or, if 
137.14  the payments have already been made, a penalty must be assessed, 
137.15  in the amount of: 
137.16     (1) two percent per day from the first to the seventh day 
137.17  after the report is due; and 
137.18     (2) five percent per day from the eighth to the 21st day 
137.19  after the report is due. 
137.20  If a report is not filed by the 21st day after it is due, a 
137.21  candidate must not receive any public subsidy under subdivision 
137.22  6 or 7. 
137.23     Sec. 17.  Minnesota Statutes 2000, section 10A.322, is 
137.24  amended to read: 
137.25     10A.322 [SPENDING LIMIT AGREEMENTS.] 
137.26     Subdivision 1.  [AGREEMENT BY CANDIDATE.] (a) As a 
137.27  condition of receiving a public subsidy, a candidate must sign 
137.28  and file with the board a written agreement in which the 
137.29  candidate agrees that the candidate will comply with sections 
137.30  10A.25; 10A.27, subdivision 10; and 10A.324. 
137.31     (b) Before the first day of filing for office, the board 
137.32  must forward agreement forms to all filing officers.  The board 
137.33  must also provide agreement forms to candidates on request at 
137.34  any time.  The candidate must file the agreement with the board 
137.35  by September August 1 preceding the candidate's general election 
137.36  or a special election held at the general election.  An 
138.1   agreement may not be filed after that date.  An agreement once 
138.2   filed may not be rescinded. 
138.3      (c) The board must notify the commissioner of revenue of 
138.4   any agreement signed filed under this subdivision. 
138.5      (d) Notwithstanding paragraph (b), if a vacancy occurs that 
138.6   will be filled by means of a special election and the filing 
138.7   period does not coincide with the filing period for the general 
138.8   election, a candidate may sign and submit file a spending limit 
138.9   agreement not later than the day after the candidate files the 
138.10  affidavit of candidacy or nominating petition for the office. 
138.11     Subd. 2.  [HOW LONG AGREEMENT IS EFFECTIVE.] (e) The 
138.12  agreement, insofar as it relates to the expenditure limits in 
138.13  section 10A.25, as adjusted by section 10A.255, and the 
138.14  contribution limit in section 10A.27, subdivision 10, remains 
138.15  effective for candidates until the dissolution of the principal 
138.16  campaign committee of the candidate or the end of the first 
138.17  election cycle completed after the agreement was filed, 
138.18  whichever occurs first. 
138.19     Subd. 2a.  [AGREEMENT BY POLITICAL PARTY.] (a) As a 
138.20  condition of receiving a public subsidy, the chair of the state 
138.21  committee of a political party must sign and file with the board 
138.22  a written agreement in which the state committee agrees that the 
138.23  political party and all its party units will comply with section 
138.24  10A.25.  An agreement once filed may not be rescinded. 
138.25     (b) The board must provide agreement forms to political 
138.26  parties on request at any time.  The state chair must file the 
138.27  agreement with the board by February 1 in order to be allocated 
138.28  money credited to the party account for the preceding taxable 
138.29  year. 
138.30     (c) The spending limit agreement remains in effect until 
138.31  the end of the first general election cycle completed after the 
138.32  agreement was filed or the dissolution of the political party, 
138.33  whichever occurs first. 
138.34     (d) The board must notify the commissioner of revenue of 
138.35  any agreement filed under this subdivision. 
138.36     Subd. 4.  [REFUND RECEIPT FORMS; PENALTY.] The board must 
139.1   make available to a political party on request and to any or 
139.2   candidate for whom an agreement under this section is effective, 
139.3   a supply of official refund receipt forms that state in boldface 
139.4   type that (1) a contributor who is given a receipt form is 
139.5   eligible to claim a refund as provided in section 290.06, 
139.6   subdivision 23, and (2) if the contribution is to a candidate, 
139.7   that the candidate or political party has signed an agreement to 
139.8   limit campaign expenditures as provided in this section.  The 
139.9   forms must provide duplicate copies of the receipt to be 
139.10  attached to the contributor's claim.  A candidate who does not 
139.11  sign an agreement under this section and who willfully issues an 
139.12  official refund receipt form or a facsimile of one to any of the 
139.13  candidate's contributors is guilty of a misdemeanor.  If the 
139.14  state chair of a political party has not signed an agreement 
139.15  under this section and the chair of a party unit willfully 
139.16  issues an official refund receipt form or a facsimile of one to 
139.17  any of the party's contributors, the chair of the party unit is 
139.18  subject to a civil fine of up to $1,000. 
139.19     Sec. 18.  Minnesota Statutes 2000, section 10A.323, is 
139.20  amended to read: 
139.21     10A.323 [AFFIDAVIT OF CONTRIBUTIONS.] 
139.22     In addition to the requirements of section 10A.322, to be 
139.23  eligible to receive a public subsidy under section 10A.31 a 
139.24  candidate or the candidate's treasurer must file an affidavit 
139.25  with the board stating that during that calendar year the 
139.26  candidate has accumulated contributions from persons eligible to 
139.27  vote in this state in at least the amount indicated for the 
139.28  office sought, counting only the first $50 received from each 
139.29  contributor: 
139.30     (1) candidates for governor and lieutenant governor running 
139.31  together, $35,000; 
139.32     (2) candidates for attorney general, $15,000; 
139.33     (3) candidates for secretary of state and state auditor, 
139.34  separately, $6,000; 
139.35     (4) candidates for the senate, $3,000; and 
139.36     (5) candidates for the house of representatives, $1,500. 
140.1      The affidavit must state the total amount of contributions 
140.2   that have been received from persons eligible to vote in this 
140.3   state, disregarding the portion of any contribution in excess of 
140.4   $50.  
140.5      The candidate or the candidate's treasurer must submit the 
140.6   affidavit required by this section to the board in writing by 
140.7   September 1 of the general election year to receive the payment 
140.8   made following the primary election and by November 1 to receive 
140.9   the payment made following the general election.  
140.10     A candidate for a vacancy to be filled at a special 
140.11  election for which the filing period does not coincide with the 
140.12  filing period for the general election must submit the affidavit 
140.13  required by this section to the board within five 15 days after 
140.14  filing the affidavit of candidacy. 
140.15     Sec. 19.  Minnesota Statutes 2000, section 200.02, 
140.16  subdivision 7, is amended to read: 
140.17     Subd. 7.  [MAJOR POLITICAL PARTY.] "Major political party" 
140.18  means a political party that maintains a party organization in 
140.19  the state, political division or precinct in question and: 
140.20     (a) which has presented at least one candidate for election 
140.21  to a partisan office at the last preceding state general 
140.22  election for constitutional officers, which candidate received 
140.23  votes in each county in that election and received votes from 
140.24  not less than five percent of the total number of individuals 
140.25  who voted in that election; or 
140.26     (b) whose members present to the secretary of state a 
140.27  petition for a place on the state partisan primary ballot, which 
140.28  petition contains signatures of a number of the party members 
140.29  equal to at least five percent of the total number of 
140.30  individuals who voted in the preceding state general election. 
140.31     Sec. 20.  Minnesota Statutes 2000, section 200.02, 
140.32  subdivision 23, is amended to read: 
140.33     Subd. 23.  [MINOR POLITICAL PARTY.] (a) "Minor political 
140.34  party" means a political party that is not a major political 
140.35  party as defined by subdivision 7 and that has adopted a state 
140.36  constitution, designated a state party chair, held a state 
141.1   convention in the last two years, filed with the secretary of 
141.2   state a certification that the party has met the foregoing 
141.3   requirements, and met the requirements of paragraph (b) or (c), 
141.4   as applicable. 
141.5      (b) To be considered a minor party in all elections 
141.6   statewide, the political party must have presented at least one 
141.7   candidate for a partisan office voted on statewide at the 
141.8   preceding state general election for constitutional officers who 
141.9   received votes in each county that in the aggregate equal at 
141.10  least one percent of the total number of individuals who voted 
141.11  in the election, or its members must have presented to the 
141.12  secretary of state a nominating petition in a form prescribed by 
141.13  the secretary of state containing the signatures of party 
141.14  members in a number equal to at least one percent of the total 
141.15  number of individuals who voted in the preceding state general 
141.16  election.  
141.17     (c) To be considered a minor party in an election in a 
141.18  legislative district, the political party must have presented at 
141.19  least one candidate for a legislative office in that district 
141.20  who received votes from at least ten percent of the total number 
141.21  of individuals who voted for that office, or its members must 
141.22  have presented to the secretary of state a nominating petition 
141.23  in a form prescribed by the secretary of state containing the 
141.24  signatures of party members in a number equal to at least ten 
141.25  percent of the total number of individuals who voted in the 
141.26  preceding state general election for that legislative office. 
141.27     Sec. 21.  Minnesota Statutes 2000, section 211A.12, is 
141.28  amended to read: 
141.29     211A.12 [CONTRIBUTION LIMITS.] 
141.30     A candidate or a candidate's committee may not accept 
141.31  aggregate contributions made or delivered by an individual or 
141.32  committee in excess of $300 in an election year for the office 
141.33  sought and $100 in other years; except that a candidate or a 
141.34  candidate's committee for an office whose territory has a 
141.35  population over 100,000 may not accept aggregate contributions 
141.36  made or delivered by an individual or committee in excess of 
142.1   $500 in an election year for the office sought and $100 in other 
142.2   years.  
142.3      The following deliveries are not subject to the bundling 
142.4   limitation in this section:  
142.5      (1) delivery of contributions collected by a member of the 
142.6   candidate's committee, such as a block worker or a volunteer who 
142.7   hosts a fundraising event, to the committee's treasurer; and 
142.8      (2) a delivery made by an individual on behalf of the 
142.9   individual's spouse. 
142.10     Notwithstanding sections 211A.02, subdivision 3, and 
142.11  410.21, this section supersedes any home rule charter. 
142.12     Sec. 22.  Minnesota Statutes 2000, section 290.06, 
142.13  subdivision 23, is amended to read: 
142.14     Subd. 23.  [REFUND OF CONTRIBUTIONS TO POLITICAL PARTIES 
142.15  AND CANDIDATES.] (a) A taxpayer may claim a refund equal to the 
142.16  amount of the taxpayer's contributions made in the calendar year 
142.17  to candidates and to a political party.  The maximum refund for 
142.18  an individual must not exceed $50 and for a married couple, 
142.19  filing jointly, must not exceed $100.  A refund of a 
142.20  contribution is allowed only if the taxpayer files a form 
142.21  required by the commissioner and attaches to the form a copy of 
142.22  an official refund receipt form issued by the candidate or party 
142.23  and signed by the candidate, the treasurer of the candidate's 
142.24  principal campaign committee, or the chair or treasurer of the 
142.25  party unit, after the contribution was received.  The receipt 
142.26  forms must be numbered, and the data on the receipt that are not 
142.27  public must be made available to the campaign finance and public 
142.28  disclosure board upon its request.  A claim must be filed with 
142.29  the commissioner no sooner than January 1 of the calendar year 
142.30  in which the contribution was made and no later than April 15 of 
142.31  the calendar year following the calendar year in which the 
142.32  contribution was made.  A taxpayer may file only one claim per 
142.33  calendar year.  Amounts paid by the commissioner after June 15 
142.34  of the calendar year following the calendar year in which the 
142.35  contribution was made must include interest at the rate 
142.36  specified in section 270.76. 
143.1      (b) No refund is allowed under this subdivision for a 
143.2   contribution to a candidate unless the candidate: 
143.3      (1) has signed and filed an agreement to limit campaign 
143.4   expenditures as provided in section 10A.322; 
143.5      (2) is seeking an office for which voluntary spending 
143.6   limits are specified in section 10A.25; and 
143.7      (3) has designated a principal campaign committee.  
143.8      This subdivision does not limit the campaign expenditures 
143.9   of a candidate who does not sign an agreement but accepts a 
143.10  contribution for which the contributor improperly claims a 
143.11  refund.  
143.12     No refund is allowed under this subdivision for a 
143.13  contribution to a political party or party unit unless the state 
143.14  chair of the political party has signed and filed an agreement 
143.15  to limit campaign expenditures as provided in section 10A.322. 
143.16     (c) For purposes of this subdivision, "political party" 
143.17  means a major political party as defined in section 200.02, 
143.18  subdivision 7, or a minor political party qualifying for 
143.19  inclusion on the income tax or property tax refund form under 
143.20  section 10A.31, subdivision 3a. 
143.21     A "major party" or "minor party" includes the aggregate of 
143.22  that party's organization within each house of the legislature, 
143.23  the state party organization, and the party organization within 
143.24  congressional districts, counties, legislative districts, 
143.25  municipalities, and precincts. 
143.26     "Candidate" means a candidate as defined in section 10A.01, 
143.27  subdivision 10, except a candidate for judicial office.  
143.28     "Contribution" means a gift of money. 
143.29     (d) The commissioner shall make copies of the form 
143.30  available to the public and candidates upon request. 
143.31     (e) The following data collected or maintained by the 
143.32  commissioner under this subdivision are private:  the identities 
143.33  of individuals claiming a refund, the identities of candidates 
143.34  to whom those individuals have made contributions, and the 
143.35  amount of each contribution.  
143.36     (f) The commissioner shall report to the campaign finance 
144.1   and public disclosure board by each August 1 a summary showing 
144.2   the total number and aggregate amount of political contribution 
144.3   refunds made on behalf of each candidate and each political 
144.4   party.  These data are public. 
144.5      (g) The amount necessary to pay claims for the refund 
144.6   provided in this section is appropriated from the general fund 
144.7   to the commissioner of revenue. 
144.8      Sec. 23.  [NONSEVERABILITY.] 
144.9      Notwithstanding Minnesota Statutes, section 645.20, if a 
144.10  provision of Minnesota Statutes, section 10A.25, subdivision 15 
144.11  is found to be unconstitutional and void, the provisions of 
144.12  Minnesota Statutes, section 10A.25, subdivision 14 are also void.
144.13     Sec. 24.  [EFFECTIVE DATE.] 
144.14     This article is effective January 1, 2002, and applies to 
144.15  contributions received and expenditures made on and after that 
144.16  date. 
144.17                             ARTICLE 14 
144.18                  TECHNICAL AND CONFORMING CHANGES 
144.19     Section 1.  Minnesota Statutes 2000, section 462A.01, is 
144.20  amended to read: 
144.21     462A.01 [CITATION.] 
144.22     Sections 462A.01 to 462A.24 462A.33 shall be known as and 
144.23  may be cited as the "Minnesota Housing Finance Agency Law of 
144.24  1971."  
144.25     Sec. 2.  Minnesota Statutes 2000, section 462A.03, 
144.26  subdivision 1, is amended to read: 
144.27     Subdivision 1.  [APPLICATION.] For the purpose of sections 
144.28  462A.01 to 462A.24 this chapter, the terms defined in this 
144.29  section have the meanings ascribed to them. 
144.30     Sec. 3.  Minnesota Statutes 2000, section 462A.03, 
144.31  subdivision 6, is amended to read: 
144.32     Subd. 6.  [AGENCY.] "Agency" means the Minnesota housing 
144.33  finance agency created by sections 462A.01 to 462A.24 this 
144.34  chapter. 
144.35     Sec. 4.  Minnesota Statutes 2000, section 462A.03, 
144.36  subdivision 10, is amended to read: 
145.1      Subd. 10.  [PERSONS AND FAMILIES OF LOW AND MODERATE 
145.2   INCOME.] "Persons and families of low and moderate income" means 
145.3   persons and families, irrespective of race, creed, national 
145.4   origin, sex, or status with respect to guardianship or 
145.5   conservatorship, determined by the agency to require such 
145.6   assistance as is made available by sections 462A.01 to 462A.24 
145.7   this chapter on account of personal or family income not 
145.8   sufficient to afford adequate housing.  In making such 
145.9   determination the agency shall take into account the following:  
145.10  (a) The amount of the total income of such persons and families 
145.11  available for housing needs, (b) the size of the family, (c) the 
145.12  cost and condition of housing facilities available, (d) the 
145.13  eligibility of such persons and families to compete successfully 
145.14  in the normal housing market and to pay the amounts at which 
145.15  private enterprise is providing sanitary, decent and safe 
145.16  housing.  In the case of federally subsidized mortgages with 
145.17  respect to which income limits have been established by any 
145.18  agency of the federal government having jurisdiction thereover 
145.19  for the purpose of defining eligibility of low and moderate 
145.20  income families, the limits so established shall govern under 
145.21  the provision provisions of sections 462A.01 to 462A.24 this 
145.22  chapter.  In all other cases income limits for the purpose of 
145.23  defining low or moderate income persons shall be established by 
145.24  the agency by rules. 
145.25     Sec. 5.  Minnesota Statutes 2000, section 462A.03, is 
145.26  amended by adding a subdivision to read: 
145.27     Subd. 23.  [METROPOLITAN AREA.] "Metropolitan area" has the 
145.28  meaning given in section 473.121, subdivision 2. 
145.29     Sec. 6.  Minnesota Statutes 2000, section 462A.04, 
145.30  subdivision 6, is amended to read: 
145.31     Subd. 6.  [MANAGEMENT, CONTROL.] The management and control 
145.32  of the agency shall be vested solely in the members in 
145.33  accordance with the provisions of sections 462A.01 to 462A.24 
145.34  this chapter. 
145.35     Sec. 7.  Minnesota Statutes 2000, section 462A.05, 
145.36  subdivision 16, is amended to read: 
146.1      Subd. 16.  [PAYMENTS FOR STRUCTURAL DEFECTS.] (a) It may 
146.2   make payments or expenditures from the housing development fund 
146.3   to persons of low or moderate income, who are recipients of an 
146.4   eligible loan as defined in section 462A.03, subdivision 11, or 
146.5   who have purchased residential housing from a recipient of such 
146.6   eligible loan, and who are owners and occupants of residential 
146.7   housing constructed or rehabilitated under sections 462A.01 to 
146.8   462A.24 this chapter, when, in the agency's determination, such 
146.9   residential housing contains defects or omissions which affect 
146.10  the structural soundness, or the use and the livability of such 
146.11  housing, including but not limited to defects or omissions in 
146.12  materials, hardware, fixtures, design, workmanship and 
146.13  landscaping of whatever kind and nature incorporated in said 
146.14  housing and which are covered by an agency approved warranty, 
146.15  for the purposes of (i) correcting such defects, or (ii) paying 
146.16  the claims of the owner arising from such defects, provided, 
146.17  that this authority shall exist only if the owner has requested 
146.18  assistance from the agency not later than four years after the 
146.19  issuance of the eligible loan, or where such residential housing 
146.20  was rehabilitated under sections 462A.01 to 462A.24 this chapter 
146.21  only if the owner has requested assistance from the agency not 
146.22  later than two years after the issuance of the eligible loan. 
146.23     (b) If such owner elects to receive payments or 
146.24  expenditures pursuant to this section, the agency is subrogated 
146.25  to the right of such owner to recover damages against any party 
146.26  or persons reasonably calculated to be responsible for such 
146.27  damages. 
146.28     (c) The agency may require from the seller of such 
146.29  residential housing, or the contractor responsible for the 
146.30  construction or rehabilitation of such housing, an agreement to 
146.31  reimburse the agency for any payments and expenditures made 
146.32  pursuant to this subdivision with respect to such residential 
146.33  housing. 
146.34     Sec. 8.  Minnesota Statutes 2000, section 462A.05, 
146.35  subdivision 22, is amended to read: 
146.36     Subd. 22.  [LOANS TO FINANCIAL INSTITUTIONS.] It may make 
147.1   or participate in the making and enter into commitments for the 
147.2   making of loans to any banking institution, savings association, 
147.3   or other lender approved by the members, organized under the 
147.4   laws of this or any other state or of the United States having 
147.5   an office in this state, notwithstanding the provisions of 
147.6   section 462A.03, subdivision 13, if it first determines that the 
147.7   proceeds of such loans will be utilized for the purpose of 
147.8   making loans to or for the benefit of eligible persons and 
147.9   families as provided and in accordance with sections 462A.01 to 
147.10  462A.24 this chapter.  Loans pursuant to this subdivision shall 
147.11  be secured, repaid and bear interest at the rate as determined 
147.12  by the members.  
147.13     Sec. 9.  Minnesota Statutes 2000, section 462A.05, 
147.14  subdivision 26, is amended to read: 
147.15     Subd. 26.  [FORMATION OF NONPROFIT CORPORATIONS.] It may, 
147.16  when the agency determines it is necessary or desirable to carry 
147.17  out its purposes and to exercise any or all of the powers 
147.18  conferred upon it under sections 462A.01 to 462A.24 by this 
147.19  chapter, and subject to the provisions of subdivision 27, form 
147.20  or consent to the formation of one or more corporations under 
147.21  the Minnesota Nonprofit Corporation Act, as amended, or under 
147.22  other laws of this state.  The agency may be a member of the 
147.23  corporations, and the members and employees of the agency from 
147.24  time to time may be members of the board of directors or 
147.25  officers of the corporations.  The agency may enter into 
147.26  agreements with them providing for the agency to approve various 
147.27  aspects of their operations.  The agency may capitalize the 
147.28  corporations and may acquire all or a part of the corporations' 
147.29  share or member certificates.  The agency may require that it 
147.30  approve aspects of the operation of the corporations including 
147.31  the corporations' articles of incorporation or bylaws, 
147.32  directors, projects and expenditures, and the sale or conveyance 
147.33  of projects, and the issuance of obligations.  The agency may 
147.34  agree to and may take title to property of the corporations upon 
147.35  their dissolution. 
147.36     Sec. 10.  Minnesota Statutes 2000, section 462A.06, 
148.1   subdivision 1, is amended to read: 
148.2      Subdivision 1.  [LISTED HERE.] For the purpose of 
148.3   exercising the specific powers granted in section 462A.05 and 
148.4   effectuating the other purposes of sections 462A.01 to 462A.24 
148.5   this chapter, the agency shall have the general powers granted 
148.6   in this section. 
148.7      Sec. 11.  Minnesota Statutes 2000, section 462A.06, 
148.8   subdivision 4, is amended to read: 
148.9      Subd. 4.  [RULES.] It may make, and from time to time, 
148.10  amend and repeal rules not inconsistent with the provisions of 
148.11  sections 462A.01 to 462A.24 this chapter.  
148.12     Sec. 12.  Minnesota Statutes 2000, section 462A.07, 
148.13  subdivision 10, is amended to read: 
148.14     Subd. 10.  [HUMAN RIGHTS.] It may establish and enforce 
148.15  such rules as may be necessary to insure compliance with chapter 
148.16  363, and to insure that occupancy of housing assisted under 
148.17  sections 462A.01 to 462A.24 this chapter shall be open to all 
148.18  persons, and that contractors and subcontractors engaged in the 
148.19  construction of such housing shall provide an equal opportunity 
148.20  for employment to all persons, without discrimination as to 
148.21  race, color, creed, religion, national origin, sex, marital 
148.22  status, age, and status with regard to public assistance or 
148.23  disability. 
148.24     Sec. 13.  Minnesota Statutes 2000, section 462A.07, 
148.25  subdivision 12, is amended to read: 
148.26     Subd. 12.  [USE OF OTHER AGENCIES.] It may delegate, use or 
148.27  employ any federal, state, regional or local public or private 
148.28  agency or organization, including organizations of physically 
148.29  handicapped persons, upon terms it deems necessary or desirable, 
148.30  to assist in the exercise of any of the powers granted in 
148.31  sections 462A.01 to 462A.24 by this chapter and to carry out the 
148.32  objectives of sections 462A.01 to 462A.24 this chapter and may 
148.33  pay for the services from the housing development fund. 
148.34     Sec. 14.  Minnesota Statutes 2000, section 462A.073, 
148.35  subdivision 1, is amended to read: 
148.36     Subdivision 1.  [DEFINITIONS.] (a) For purposes of this 
149.1   section, the following terms have the meanings given them. 
149.2      (b) "Existing housing" means single-family housing that (i) 
149.3   has been previously occupied prior to the first day of the 
149.4   origination period; or (ii) has been available for occupancy for 
149.5   at least 12 months but has not been previously occupied.  
149.6      (c) "Metropolitan area" means the metropolitan area as 
149.7   defined in section 473.121, subdivision 2. 
149.8      (d) "New housing" means single-family housing that has not 
149.9   been previously occupied.  
149.10     (e) (d) "Origination period" means the period that loans 
149.11  financed with the proceeds of qualified mortgage revenue bonds 
149.12  are available for the purchase of single-family housing.  The 
149.13  origination period begins when financing actually becomes 
149.14  available to the borrowers for loans.  
149.15     (f) (e) "Redevelopment area" means a compact and contiguous 
149.16  area within which the city finds by resolution that 70 percent 
149.17  of the parcels are occupied by buildings, streets, utilities, or 
149.18  other improvements and more than 25 percent of the buildings, 
149.19  not including outbuildings, are structurally substandard to a 
149.20  degree requiring substantial renovation or clearance. 
149.21     (g) (f) "Single-family housing" means dwelling units 
149.22  eligible to be financed from the proceeds of qualified mortgage 
149.23  revenue bonds under federal law. 
149.24     (h) (g) "Structurally substandard" means containing defects 
149.25  in structural elements or a combination of deficiencies in 
149.26  essential utilities and facilities, light, ventilation, fire 
149.27  protection including adequate egress, layout and condition of 
149.28  interior partitions, or similar factors, which defects or 
149.29  deficiencies are of sufficient total significance to justify 
149.30  substantial renovation or clearance. 
149.31     Sec. 15.  Minnesota Statutes 2000, section 462A.15, is 
149.32  amended to read: 
149.33     462A.15 [STATE PLEDGE AGAINST IMPAIRMENT OF CONTRACTS.] 
149.34     The state pledges and agrees with the holders of any notes 
149.35  or bonds issued under sections 462A.01 to 462A.24 this chapter, 
149.36  that the state will not limit or alter the rights vested in the 
150.1   agency to fulfill the terms of any agreements made with the 
150.2   holders thereof, or in any way impair the rights and remedies of 
150.3   the holders until the notes or bonds, together with the interest 
150.4   thereon, with interest on any unpaid installments of interest, 
150.5   and all costs and expenses in connection with any action or 
150.6   proceeding by or on behalf of such holders, are fully met and 
150.7   discharged.  The agency is authorized to include this pledge and 
150.8   agreement of the state in any agreement with the holders of such 
150.9   notes or bonds.  
150.10     Sec. 16.  Minnesota Statutes 2000, section 462A.17, 
150.11  subdivision 3, is amended to read: 
150.12     Subd. 3.  [RAMSEY COUNTY VENUE; NOTICE OF PRINCIPAL DUE.] 
150.13  The venue of any action or proceedings brought by the trustees 
150.14  under sections 462A.01 to 462A.24 this chapter, shall be in 
150.15  Ramsey county.  Before declaring the principal of notes or bonds 
150.16  due and payable, the trustee shall first give 30 days' notice in 
150.17  writing to the governor, to the agency and to the state 
150.18  treasurer.  
150.19     Sec. 17.  Minnesota Statutes 2000, section 462A.204, 
150.20  subdivision 3, is amended to read: 
150.21     Subd. 3.  [SET ASIDE.] At least one grant must be awarded 
150.22  in an area located outside of the metropolitan area as defined 
150.23  in section 473.121, subdivision 2.  A county, a group of 
150.24  contiguous counties jointly acting together, or a 
150.25  community-based nonprofit organization with a sponsoring 
150.26  resolution from each of the county boards of the counties 
150.27  located within its operating jurisdiction may apply for and 
150.28  receive grants for areas located outside the metropolitan area.  
150.29     Sec. 18.  Minnesota Statutes 2000, section 462A.205, 
150.30  subdivision 4, is amended to read: 
150.31     Subd. 4.  [AMOUNT AND PAYMENT OF RENT ASSISTANCE.] (a) This 
150.32  subdivision applies to both the voucher option and the 
150.33  project-based voucher option.  
150.34     (b) Within the limits of available appropriations, eligible 
150.35  families may receive monthly rent assistance for a 60-month 
150.36  period starting with the month the family first receives rent 
151.1   assistance under this section.  The amount of the family's 
151.2   portion of the rental payment is equal to at least 30 percent of 
151.3   gross income. 
151.4      (c) The rent assistance must be paid by the local housing 
151.5   organization to the property owner. 
151.6      (d) Subject to the limitations in paragraph (e), the amount 
151.7   of rent assistance is the difference between the rent and the 
151.8   family's portion of the rental payment. 
151.9      (e) In no case: 
151.10     (1) may the amount of monthly rent assistance be more than 
151.11  $250 for housing located within the metropolitan area, as 
151.12  defined in section 473.121, subdivision 2, or more than $200 for 
151.13  housing located outside of the metropolitan area; 
151.14     (2) may the owner receive more rent for assisted units than 
151.15  for comparable unassisted units; nor 
151.16     (3) may the amount of monthly rent assistance be more than 
151.17  the difference between the family's portion of the rental 
151.18  payment and the fair market rent for the unit as determined by 
151.19  the Department of Housing and Urban Development. 
151.20     Sec. 19.  Minnesota Statutes 2000, section 462A.205, 
151.21  subdivision 4a, is amended to read: 
151.22     Subd. 4a.  [ADDITIONAL AUTHORIZED EXPENSES.] In addition to 
151.23  the monthly rent assistance authorized under subdivision 4, rent 
151.24  assistance may include up to $200 for a security deposit for 
151.25  housing located outside the metropolitan area, as defined in 
151.26  section 473.121, subdivision 2, and up to $250 for a security 
151.27  deposit for housing located within the metropolitan area. 
151.28     Sec. 20.  Minnesota Statutes 2000, section 462A.2091, 
151.29  subdivision 3, is amended to read: 
151.30     Subd. 3.  [ELIGIBLE PROPERTY.] Contracts for deed eligible 
151.31  for refinancing with guarantee fund assistance must be for the 
151.32  purchase of an owner-occupied single-family or duplex 
151.33  structure.  In a city of the first class in the metropolitan 
151.34  area, as defined in section 473.121, subdivision 2, eligible 
151.35  properties must be located in an area in which at least one 
151.36  census tract meets at least three of the following four criteria:
152.1      (1) at least 70 percent of the housing structures were 
152.2   built before 1960; 
152.3      (2) at least 60 percent of the single-family housing is 
152.4   owner-occupied; 
152.5      (3) the median market value of the area's owner-occupied 
152.6   housing, as recorded in the most recent federal decennial 
152.7   census, is not more than 100 percent of the purchase price limit 
152.8   for existing homes eligible for purchase in the area under the 
152.9   agency's home mortgage loan program; and 
152.10     (4) between 1980 and 1990, the rate of owner occupancy of 
152.11  residential properties in the area declined by at least five 
152.12  percent, or at least 80 percent of the residential properties in 
152.13  the area are rental properties.  
152.14     The area must include eight blocks in any direction from 
152.15  the census tract.  Priority must be given for property located 
152.16  in an area that meets all four criteria.  
152.17     Sec. 21.  Minnesota Statutes 2000, section 462A.2093, 
152.18  subdivision 1, is amended to read: 
152.19     Subdivision 1.  [DEFINITIONS.] For purposes of this 
152.20  section, the following terms have the meanings given them in 
152.21  this subdivision. 
152.22     (a) "Municipality" means a town or a statutory or home rule 
152.23  city. 
152.24     (b) "Nonmetropolitan" means the area of the state outside 
152.25  of the metropolitan area defined in section 473.121, subdivision 
152.26  2. 
152.27     (c) "Inclusionary housing development" means a new 
152.28  construction development including owner-occupied or rental 
152.29  housing, or a combination of both, with a variety of prices and 
152.30  designs which serve families with a range of incomes and housing 
152.31  needs. 
152.32     Sec. 22.  Minnesota Statutes 2000, section 462A.21, 
152.33  subdivision 5, is amended to read: 
152.34     Subd. 5.  [OTHER AGENCY PURPOSES.] It may expend moneys in 
152.35  the fund, not otherwise appropriated, for such other agency 
152.36  purposes as previously enumerated in sections 462A.01 to 462A.24 
153.1   this chapter as the agency in its discretion shall determine and 
153.2   provide. 
153.3      Sec. 23.  Minnesota Statutes 2000, section 462A.222, 
153.4   subdivision 1a, is amended to read: 
153.5      Subd. 1a.  [DETERMINATION OF REGIONAL CREDIT POOLS.] The 
153.6   agency shall divide the annual per capita amount used in 
153.7   determining the state ceiling for low-income housing tax credits 
153.8   provided under section 42 of the Internal Revenue Code of 1986, 
153.9   as amended, into a metropolitan pool and a greater Minnesota 
153.10  pool.  The metropolitan pool shall serve the metropolitan area 
153.11  as defined in section 473.121, subdivision 2.  The greater 
153.12  Minnesota pool shall serve the remaining counties of the state.  
153.13  The percentage of the annual per capita amount allotted to each 
153.14  pool must be determined as follows: 
153.15     (a) The percentage set-aside for projects involving a 
153.16  qualified nonprofit organization as provided in section 42 of 
153.17  the Internal Revenue Code of 1986, as amended, must be deducted 
153.18  from the annual per capita amount used in determining the state 
153.19  ceiling. 
153.20     (b) Of the remaining amount, the metropolitan pool must be 
153.21  allotted a percentage equal to the metropolitan counties' 
153.22  percentage of the total number of state recipients of the 
153.23  Minnesota family investment program, general assistance, 
153.24  Minnesota supplemental aid, and supplemental security income in 
153.25  the state, as reported annually by the department of human 
153.26  services.  The greater Minnesota pool must be allotted the 
153.27  amount remaining after the metropolitan pool's percentage has 
153.28  been allotted. 
153.29     The set-aside for qualified nonprofit organizations must be 
153.30  divided between the two regional pools in the same percentage as 
153.31  determined for the credit amounts above. 
153.32     Sec. 24.  Minnesota Statutes 2000, section 462A.24, is 
153.33  amended to read: 
153.34     462A.24 [CONSTRUCTION.] 
153.35     Sections 462A.01 to 462A.24 are This chapter is necessary 
153.36  for the welfare of the state of Minnesota and its inhabitants; 
154.1   therefore, it shall be liberally construed to effect its purpose.
154.2      Sec. 25.  Minnesota Statutes 2000, section 462A.33, 
154.3   subdivision 2, is amended to read: 
154.4      Subd. 2.  [ELIGIBLE RECIPIENTS.] Challenge grants or loans 
154.5   may be made to a city, a private developer, a nonprofit 
154.6   organization, or the owner of the housing, including 
154.7   individuals.  For the purpose of this section, "city" has the 
154.8   meaning given it in section 462A.03, subdivision 21.  Preference 
154.9   shall be given to challenge grants or loans for home ownership.  
154.10  To the extent practicable, grants and loans shall be made so 
154.11  that an approximately equal number of housing units are financed 
154.12  in the metropolitan area, as defined in section 473.121, 
154.13  subdivision 2, and in the nonmetropolitan area. 
154.14     Sec. 26.  [462A.34] [VISITABILITY REQUIREMENT.] 
154.15     All new construction of single-family homes, duplexes, 
154.16  triplexes, and multilevel townhouses that are financed in whole 
154.17  or in part by the agency must incorporate basic visitability 
154.18  access into their design and construction.  For the purpose of 
154.19  this section, "visitability" means designing a dwelling so that 
154.20  people with mobility impairments may enter and comfortably stay 
154.21  for a duration.  The specific design elements include one 
154.22  no-step entrance, 32-inch clear doorways throughout the 
154.23  dwelling, and a one-half bathroom on the main level.  The agency 
154.24  may waive the one-half bathroom requirement if it reduces 
154.25  affordability for the targeted population of the agency program 
154.26  from which it is funded.  The agency may waive the no-step 
154.27  entrance requirement if topographical conditions make the 
154.28  requirement impractical. 
154.29     Sec. 27.  [REPEALER.] 
154.30     Minnesota Statutes 2000, sections 462A.221, subdivision 4; 
154.31  and 462A.30, subdivision 2, are repealed.