1.1                          A bill for an act 
  1.2             relating to economic development; providing that the 
  1.3             office of tourism may purchase items for resale 
  1.4             without complying with competitive bidding 
  1.5             requirements; increasing the loan maximum for 
  1.6             challenge grants; clarifying application requirements 
  1.7             for contaminated cleanup grants; authorizing 
  1.8             compensation for members of the job skills partnership 
  1.9             board; modifying assistance provisions under the 
  1.10            wastewater infrastructure funding program; amending 
  1.11            Minnesota Statutes 1996, sections 16B.06, subdivision 
  1.12            2; 16B.08, subdivision 7; 116.182, subdivision 1; 
  1.13            116J.415, subdivision 5; 116J.553, subdivision 2; 
  1.14            116L.03, subdivision 5; and 446A.072, subdivisions 2 
  1.15            and 4; repealing Minnesota Statutes 1997 Supplement, 
  1.16            section 446A.072, subdivision 4a.  
  1.17  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.18     Section 1.  Minnesota Statutes 1996, section 16B.06, 
  1.19  subdivision 2, is amended to read: 
  1.20     Subd. 2.  [VALIDITY OF STATE CONTRACTS.] (a) A state 
  1.21  contract or lease is not valid and the state is not bound by it 
  1.22  until: 
  1.23     (1) it has first been executed by the head of the agency or 
  1.24  a delegate which is a party to the contract; 
  1.25     (2) it has been approved by the commissioner or a delegate, 
  1.26  under this section; 
  1.27     (3) it has been approved by the attorney general or a 
  1.28  delegate as to form and execution; and 
  1.29     (4) the account system shows an allotment or encumbrance 
  1.30  balance for the full amount of the contract liability.  
  1.31     (b) Paragraph (a), clause (2), does not apply to contracts 
  2.1   between state agencies, contracts awarding grants, ~~or~~ contracts 
  2.2   making loans, or bond purchase agreements by the department of 
  2.3   trade and economic development or the Minnesota public 
  2.4   facilities authority. 
  2.5      (c) The head of the agency may delegate the execution of 
  2.6   specific contracts or specific types of contracts to a 
  2.7   designated subordinate within the agency if the delegation has 
  2.8   been approved by the commissioner of administration and filed 
  2.9   with the secretary of state.  The fully executed copy of every 
  2.10  contract or lease must be kept on file at the contracting agency.
  2.11     Sec. 2.  Minnesota Statutes 1996, section 16B.08, 
  2.12  subdivision 7, is amended to read: 
  2.13     Subd. 7.  [SPECIFIC PURCHASES.] (a) The following may be 
  2.14  purchased without regard to the competitive bidding requirements 
  2.15  of this chapter:  
  2.16     (1) merchandise for resale at state park refectories or 
  2.17  facility operations; 
  2.18     (2) farm and garden products, which may be sold at the 
  2.19  prevailing market price on the date of the sale; 
  2.20     (3) meat for other state institutions from the technical 
  2.21  college maintained at Pipestone by independent school district 
  2.22  No. 583; ~~and~~ 
  2.23     (4) products and services from the Minnesota correctional 
  2.24  facilities; and 
  2.25     (5) merchandise for resale at office of tourism locations.  
  2.26     (b) Supplies, materials, equipment, and utility services 
  2.27  for use by a community-based residential facility operated by 
  2.28  the commissioner of human services may be purchased or rented 
  2.29  without regard to the competitive bidding requirements of this 
  2.30  chapter. 
  2.31     (c) Supplies, materials, or equipment to be used in the 
  2.32  operation of a hospital licensed under sections 144.50 to 144.56 
  2.33  that are purchased under a shared service purchasing arrangement 
  2.34  whereby more than one hospital purchases supplies, materials, or 
  2.35  equipment with one or more other hospitals, either through one 
  2.36  of the hospitals or through another entity, may be purchased 
  3.1   without regard to the competitive bidding requirements of this 
  3.2   chapter if the following conditions are met: 
  3.3      (1) the hospital's governing authority authorizes the 
  3.4   arrangement; 
  3.5      (2) the shared services purchasing program purchases items 
  3.6   available from more than one source on the basis of competitive 
  3.7   bids or competitive quotations of prices; and 
  3.8      (3) the arrangement authorizes the hospital's governing 
  3.9   authority or its representatives to review the purchasing 
  3.10  procedures to determine compliance with these requirements. 
  3.11     Sec. 3.  Minnesota Statutes 1996, section 116.182, 
  3.12  subdivision 1, is amended to read: 
  3.13     Subdivision 1.  [DEFINITIONS.] (a) For the purposes of this 
  3.14  section, the terms defined in this subdivision have the meanings 
  3.15  given them. 
  3.16     (b) "Agency" means the pollution control agency. 
  3.17     (c) "Authority" means the public facilities authority 
  3.18  established in section 446A.03. 
  3.19     (d) "Commissioner" means the commissioner of the pollution 
  3.20  control agency. 
  3.21     (e) "Essential project components" means those components 
  3.22  of a wastewater disposal system that are necessary to convey or 
  3.23  treat a municipality's existing wastewater flows and loadings, 
  3.24  and future wastewater flows and loadings based on 50 percent of 
  3.25  the projected residential growth of the municipality for a 
  3.26  20-year period. 
  3.27     (f) "Municipality" means a county, home rule charter or 
  3.28  statutory city, town, the metropolitan council, an Indian tribe 
  3.29  or an authorized Indian tribal organization; or any other 
  3.30  governmental subdivision of the state responsible by law for the 
  3.31  prevention, control, and abatement of water pollution in any 
  3.32  area of the state. 
  3.33     Sec. 4.  Minnesota Statutes 1996, section 116J.415, 
  3.34  subdivision 5, is amended to read: 
  3.35     Subd. 5.  [LOAN CRITERIA.] The following criteria apply to 
  3.36  loans made under the challenge grant program:  
  4.1      (1) loans must be made to businesses that are not likely to 
  4.2   undertake a project for which loans are sought without 
  4.3   assistance from the challenge grant program; 
  4.4      (2) a loan must be used for a project designed principally 
  4.5   to benefit low-income persons through the creation of job or 
  4.6   business opportunities for them; 
  4.7      (3) the minimum loan is $5,000 and the maximum 
  4.8   is ~~$100,000~~ $200,000; 
  4.9      (4) a loan may not exceed 50 percent of the total cost of 
  4.10  an individual project; 
  4.11     (5) a loan may not be used for a retail development 
  4.12  project; and 
  4.13     (6) a business applying for a loan, except a 
  4.14  microenterprise loan under subdivision 6, must be sponsored by a 
  4.15  resolution of the governing body of the local governmental unit 
  4.16  within whose jurisdiction the project is located. 
  4.17     Sec. 5.  Minnesota Statutes 1996, section 116J.553, 
  4.18  subdivision 2, is amended to read: 
  4.19     Subd. 2.  [REQUIRED CONTENT.] (a) The commissioner shall 
  4.20  prescribe and provide the application form.  Except as provided 
  4.21  in paragraph (b), the application must include at least the 
  4.22  following information: 
  4.23     (1) identification of the site; 
  4.24     (2) an approved response action plan for the site, 
  4.25  including the results of engineering and other tests showing the 
  4.26  nature and extent of the release or threatened release of 
  4.27  contaminants at the site; 
  4.28     (3) a detailed estimate, along with necessary supporting 
  4.29  evidence, of the total cleanup costs for the site; 
  4.30     (4) an appraisal of the current market value of the 
  4.31  property, separately taking into account the effect of the 
  4.32  contaminants on the market value, prepared by a qualified 
  4.33  independent appraiser using accepted appraisal methodology; 
  4.34     (5) an assessment of the development potential or likely 
  4.35  use of the site after completion of the response action plan, 
  4.36  including any specific commitments from third parties to 
  5.1   construct improvements on the site; 
  5.2      (6) the manner in which the municipality will meet the 
  5.3   local match requirement; and 
  5.4      (7) any additional information or material that the 
  5.5   commissioner prescribes. 
  5.6      (b) An application for a grant under section 116J.554, 
  5.7   subdivision 1, paragraph (b), must include a detailed estimate 
  5.8   of the cost of the actions for which the grant is sought, but 
  5.9   need not include the information specified in paragraph (a), 
  5.10  clauses (2) to (4) and (6). 
  5.11     Sec. 6.  Minnesota Statutes 1996, section 116L.03, 
  5.12  subdivision 5, is amended to read: 
  5.13     Subd. 5.  [TERMS AND COMPENSATION.] The terms of appointed 
  5.14  members shall be for four years except for the initial 
  5.15  appointments.  The initial appointments of the governor shall 
  5.16  have the following terms:  two members each for one, two, three, 
  5.17  and four years.  Compensation of members shall be as provided in 
  5.18  section 15.0575, subdivision 3. 
  5.19     Sec. 7.  Minnesota Statutes 1996, section 446A.072, 
  5.20  subdivision 2, is amended to read: 
  5.21     Subd. 2.  [TYPE OF SUPPLEMENTAL ASSISTANCE.] Supplemental 
  5.22  assistance shall be in the form of ~~zero percent loans, with loan~~ 
  5.23  ~~repayments beginning February 20 or August 20 following the~~ 
  5.24  ~~scheduled date of the project obtaining~~ grants.  If one year 
  5.25  after the initiation of operation of the project, the project 
  5.26  does not meet the operational performance standards established 
  5.27  by the agency, the grant shall be repaid.  ~~Upon receipt of~~ 
  5.28  ~~notice from the agency that the project operational performance~~ 
  5.29  ~~standards have been met, the authority will forgive the~~ 
  5.30  ~~scheduled loan repayments made under this section.  If not~~ 
  5.31  ~~forgiven, loan~~ Grant repayments shall be deferred upon request 
  5.32  from the commissioner of the agency for six-month periods, 
  5.33  provided the commissioner has determined that satisfactory 
  5.34  progress is being made to achieve project performance or is 
  5.35  developing or implementing a corrective action plan. 
  5.36     Sec. 8.  Minnesota Statutes 1996, section 446A.072, 
  6.1   subdivision 4, is amended to read: 
  6.2      Subd. 4.  [FUNDING LEVEL.] (a) The authority shall provide 
  6.3   supplemental assistance for essential project component costs as 
  6.4   certified by the commissioner of the pollution control agency 
  6.5   under section 116.182, subdivision 4.  
  6.6      (b) A municipality may not receive more than $4,000,000 or 
  6.7   $2,000,000 when matched with a United States Department of 
  6.8   Agriculture rural development grant under this section unless 
  6.9   specifically approved by law. 
  6.10     (c) ~~The authority will calculate the grant amount needed~~ 
  6.11  ~~for the essential project component costs by first determining~~ 
  6.12  ~~the amount needed to reduce a municipality's monthly residential~~ 
  6.13  ~~sewer service charge to $25 or to an annual residential sewer~~ 
  6.14  ~~service charge in excess of 1.5 percent of the municipality's~~ 
  6.15  ~~median household income, whichever is less, and then multiplying~~ 
  6.16  ~~that amount by 80 percent to determine the actual award amount~~ 
  6.17  ~~to supplement loans under section 446A.07 or provide up to~~ 
  6.18  ~~one-third of the amount of the grant funding level required by~~ 
  6.19  ~~USDA/RECD for projects listed on the agency's intended use~~ 
  6.20  ~~plan.~~  The authority shall provide supplemental assistance for 
  6.21  up to one-half of the eligible grant funding level determined by 
  6.22  the United States Department of Agriculture/Rural Development 
  6.23  funding for projects listed on the agency's project priority 
  6.24  list, in priority order.  For municipalities that are not 
  6.25  eligible for United States Department of Agriculture/Rural 
  6.26  Development funding for wastewater, the authority shall provide 
  6.27  supplemental assistance for:  (1) essential project component 
  6.28  costs calculated by first determining the amount needed to 
  6.29  reduce a municipality's annual residential sewer costs to 1.4 
  6.30  percent of the municipality's median household income or $25, 
  6.31  whichever is greater, and then multiplying that amount by 80 
  6.32  percent to determine the actual award amount to supplement loans 
  6.33  under section 446A.07; and (2) up to 50 percent of the 
  6.34  incremental costs specifically identified by the agency as being 
  6.35  attributable to more stringent wastewater standards required to 
  6.36  protect outstanding resource value waters or outstanding 
  7.1   international resource value waters.  Outstanding resource value 
  7.2   waters are those that have high water quality, wilderness 
  7.3   characteristics, unique scientific or ecological significance, 
  7.4   exceptional recreation value, or other special qualities that 
  7.5   warrant special protection.  Outstanding international resource 
  7.6   value waters are the surface waters of the state in the Lake 
  7.7   Superior Basin, other than Class 7 waters and those waters 
  7.8   designated as outstanding resource value waters.  
  7.9      (d) The authority shall provide supplemental assistance to 
  7.10  a municipality that would not otherwise qualify for supplemental 
  7.11  assistance if: 
  7.12     (1) the municipality voluntarily accepts a sewer connection 
  7.13  from another governmental unit to serve residential, industrial, 
  7.14  or commercial developments that were completed before March 1, 
  7.15  1996, or are on lots whose plats were recorded before that date; 
  7.16  and 
  7.17     (2) fees charged by the municipality for the connection 
  7.18  must take into account state and federal grants used by the 
  7.19  municipality for the construction of the treatment plant. 
  7.20  The amount of supplemental assistance under this paragraph must 
  7.21  be sufficient to reduce debt service payments under section 
  7.22  446A.07 to an extent equivalent to a zero percent loan in an 
  7.23  amount up to the other governmental unit's project costs 
  7.24  necessary for connection.  Eligibility for supplemental 
  7.25  assistance under this paragraph ends three years after the 
  7.26  agency certifies that the connection has met the operational 
  7.27  performance standards established by the agency. 
  7.28     Sec. 9.  [REPEALER.] 
  7.29     Minnesota Statutes 1997 Supplement, section 446A.072, 
  7.30  subdivision 4a, is repealed. 
  7.31     Sec. 10.  [EFFECTIVE DATE.] 
  7.32     Section 6 is effective July 1, 1997.