1.1                          A bill for an act 
  1.2             relating to economic development; appropriating money 
  1.3             for economic development, housing, and related 
  1.4             purposes; modifying provisions of a study; requiring 
  1.5             reports; establishing pilot projects; providing an 
  1.6             exemption from grant limits; defining terms; setting 
  1.7             requirements for wastewater financial assistance; 
  1.8             modifying loan criteria; modifying supplemental 
  1.9             assistance provisions; establishing a revolving loan 
  1.10            fund; modifying warranty provisions; providing 
  1.11            warranty information; modifying collection agency 
  1.12            provisions; requiring builders to make certain 
  1.13            disclosures; establishing a public education campaign 
  1.14            for homeowners' rights; providing for an employee 
  1.15            notice of rights; modifying false statement 
  1.16            provisions; providing exemptions from reemployment 
  1.17            insurance requirements; modifying labor provisions for 
  1.18            city attorneys; modifying reinvestment program 
  1.19            provisions; extending boundaries; modifying a public 
  1.20            utility mandate; creating and changing programs and 
  1.21            projects; imposing terms and conditions; amending 
  1.22            Minnesota Statutes 1996, sections 16B.06, subdivision 
  1.23            2; 16B.08, subdivision 7; 16B.65, subdivision 7; 
  1.24            115C.09, by adding a subdivision; 116.182, subdivision 
  1.25            1, and by adding a subdivision; 116J.415, subdivision 
  1.26            5; 116J.553, subdivision 2; 116L.03, subdivision 5; 
  1.27            179A.16, subdivisions 1, 3, 9, and by adding a 
  1.28            subdivision; 179A.18, subdivision 1; 181.64; 
  1.29            216B.2423, subdivision 1; 326.87, subdivision 2; 
  1.30            326.975, subdivision 1; 327A.01, subdivisions 2 and 5; 
  1.31            327A.02, subdivisions 1 and 3; 327A.03; 332.31, 
  1.32            subdivisions 3, 6, and by adding a subdivision; 
  1.33            383B.79, subdivision 1, and by adding a subdivision; 
  1.34            446A.072, subdivisions 2 and 4; 462A.05, subdivision 
  1.35            14; 462A.21, by adding subdivisions; 462A.222, 
  1.36            subdivision 3; 469.303; 474A.061, subdivision 2a; 
  1.37            541.051, subdivisions 1 and 4; Minnesota Statutes 1997 
  1.38            Supplement, sections 115C.09, subdivision 3f; 414.11; 
  1.39            462A.05, subdivision 39; and 462A.205, subdivisions 1, 
  1.40            2, 5, 6, and 9; Laws 1997, chapter 200, article 1, 
  1.41            sections 2, subdivision 2; 6; 12, subdivision 2; and 
  1.42            33, subdivision 1, and by adding subdivisions; Laws 
  1.43            1997, Second Special Session chapter 2, section 4, 
  1.44            subdivision 3; proposing coding for new law in 
  1.45            Minnesota Statutes, chapters 116J; 181; 327A; 462A; 
  1.46            and 471; repealing Minnesota Statutes 1996, section 
  2.1             116C.80; Minnesota Statutes 1997 Supplement, section 
  2.2             446A.072, subdivision 4a; Laws 1991, chapter 275, 
  2.3             section 3. 
  2.4   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  2.5                              ARTICLE 1
  2.6                         ECONOMIC DEVELOPMENT
  2.7   Section 1.  [ECONOMIC DEVELOPMENT APPROPRIATIONS.] 
  2.8      The sums in the columns marked "APPROPRIATIONS" are 
  2.9   appropriated from the general fund, or another named fund, to 
  2.10  the agencies and for the purposes specified in this article, to 
  2.11  be available for the fiscal years indicated for each purpose.  
  2.12  The figures "1998" and "1999," where used in this act, mean that 
  2.13  the appropriation or appropriations listed under them are 
  2.14  available for the year ending June 30, 1998, or June 30, 1999, 
  2.15  respectively.  The term "first year" means the fiscal year 
  2.16  ending June 30, 1998, and "second year" means the fiscal year 
  2.17  ending June 30, 1999. 
  2.18                          SUMMARY BY FUND 
  2.19                                           1998           1999 
  2.20  General                              $   983,000    $14,555,000 
  2.21  General Fund Revenue                    (204,000)      (319,000)
  2.22  Workers' Compensation Fund                50,000        (50,000)
  2.23  Special Revenue Fund                       -0-          200,000 
  2.24  TOTAL                                $   829,000    $14,386,000 
  2.25                                             APPROPRIATIONS 
  2.26                                         Available for the Year 
  2.27                                             Ending June 30 
  2.28                                            1998         1999 
  2.29  Sec. 2.  DEPARTMENT OF TRADE AND
  2.30  ECONOMIC DEVELOPMENT               $      -0-     $7,440,000
  2.31  (a) Mining Grants 
  2.32  $300,000 is appropriated in 1999 for 
  2.33  the taconite mining grant program under 
  2.34  Minnesota Statutes, section 116J.992.  
  2.35  This is a one-time appropriation and is 
  2.36  not added to the department's permanent 
  2.37  budget base. 
  2.38  (b) Millennium Screen Writing Festival 
  2.39  $100,000 is appropriated in 1999 for 
  2.40  planning for the millennium screen 
  2.41  writing festival, and to enhance the 
  2.42  film making industry in Minnesota by 
  2.43  providing grants to local 
  2.44  screenwriters.  Of this amount, $50,000 
  3.1   is a one-time appropriation and is not 
  3.2   added to the department's budget base, 
  3.3   and $50,000 is added to the 
  3.4   department's budget base. 
  3.5   (c) Minnesota Film Board 
  3.6   $5,000,000 is appropriated in 1999 for 
  3.7   transfer to the revolving loan fund 
  3.8   under Minnesota Statutes, section 
  3.9   116J.545.  Of this appropriation, the 
  3.10  film board may use up to $100,000 each 
  3.11  year for administration of the loan 
  3.12  fund.  This is a one-time appropriation 
  3.13  and is not added to the department's 
  3.14  permanent budget base.  Of this amount, 
  3.15  $50,000 is for a grant to the 
  3.16  Mississippi River Parkway Commission of 
  3.17  Minnesota for the state's share of the 
  3.18  Smithsonian's River of Song project. 
  3.19  (d) Tourism Advertising and Marketing 
  3.20  $1,000,000 is appropriated in 1999 for 
  3.21  additional tourism advertising and is 
  3.22  added to the appropriation for tourism 
  3.23  provided in Laws 1997, chapter 200, 
  3.24  article 1, section 2, subdivision 4.  
  3.25  Of this amount, $711,000 is added to 
  3.26  the department's budget base.  Of this 
  3.27  amount, $50,000 is to create 
  3.28  informational leaflets and other means 
  3.29  of marketing the Heritage Halls Museum 
  3.30  and Minnesota Aviation Hall of Fame in 
  3.31  Owatonna.  Of this amount, $50,000 is 
  3.32  for a study on the feasibility and 
  3.33  economic impact of a Great Rivers of 
  3.34  the World Aquarium in St. Paul on the 
  3.35  Mississippi river. 
  3.36  (e) Duluth Technology Center 
  3.37  $200,000 is appropriated in 1999 for a 
  3.38  grant to the Duluth Technology Center 
  3.39  to continue development of software 
  3.40  business opportunities with particular 
  3.41  attention to encouraging location of 
  3.42  foreign software companies in 
  3.43  northeastern Minnesota.  This is a 
  3.44  one-time appropriation and is not added 
  3.45  to the department's permanent budget 
  3.46  base. 
  3.47  (f) Chatfield Brass Band Music Lending 
  3.48  Library 
  3.49  $60,000 is appropriated in 1999 for a 
  3.50  grant to the Chatfield brass band music 
  3.51  lending library.  The money must be 
  3.52  used for computer hardware and software 
  3.53  to catalog the music collection and 
  3.54  create a Web site.  This is a one-time 
  3.55  appropriation and must not be added to 
  3.56  the agency's permanent budget base. 
  3.57  (g) Neighborhood Development Center, 
  3.58  Inc. 
  3.59  $90,000 is appropriated in 1999 for the 
  3.60  purpose of making a grant to the 
  3.61  Neighborhood Development Center, Inc.  
  4.1   The center shall use the grant for the 
  4.2   purpose of expanding and improving its 
  4.3   neighborhood and ethnic-based 
  4.4   entrepreneur training, lending, and 
  4.5   support programs in the poorest 
  4.6   communities of Minneapolis and St. 
  4.7   Paul.  This appropriation is added to 
  4.8   the department's budget base. 
  4.9   (h) Public Arts St. Paul 
  4.10  $50,000 is appropriated in 1999 for a 
  4.11  grant to Public Arts Saint Paul for 
  4.12  planning for public art projects 
  4.13  throughout the city of St. Paul.  This 
  4.14  is a one-time appropriation and is not 
  4.15  added to the department's permanent 
  4.16  budget base. 
  4.17  (i) City of St. Paul 
  4.18  $350,000 is appropriated in 1999 for a 
  4.19  grant to the city of St. Paul.  Of this 
  4.20  amount, $250,000 is for the completion 
  4.21  of renovations to the University of 
  4.22  Minnesota Centennial Showboat to be 
  4.23  docked at Harriet Island.  Of this 
  4.24  amount, $100,000 is for a study on the 
  4.25  relocation and expansion of the St. 
  4.26  Paul Farmers' Market at a site that 
  4.27  will interact with the Concord Street 
  4.28  business area.  The study will consider 
  4.29  growth needs, job development 
  4.30  opportunities, and the creation of a 
  4.31  state-approved commercial kitchen.  
  4.32  This is a one-time appropriation and is 
  4.33  not added to the department's budget 
  4.34  base. 
  4.35  (j) Mississippi River Parkway 
  4.36  Commission 
  4.37  $15,000 is appropriated in 1999 for a 
  4.38  grant to the Mississippi River Parkway 
  4.39  Commission of Minnesota for the 
  4.40  Smithsonian River of Song community 
  4.41  promotion and Great River Road Ramble.  
  4.42  This is a one-time appropriation and is 
  4.43  not added to the department's budget 
  4.44  base. 
  4.45  (k) Biomass Energy Generation 
  4.46  $50,000 is appropriated in 1999 to 
  4.47  conduct financial analyses and project 
  4.48  due diligence exercises in cooperation 
  4.49  with private financial institutions and 
  4.50  the United States Department of 
  4.51  Agriculture for the purpose of 
  4.52  assembling a debt financing package for 
  4.53  a 75 megawatt electric energy 
  4.54  generation project using farm-grown 
  4.55  closed loop biomass.  This is a 
  4.56  one-time appropriation and is not added 
  4.57  to the department's budget base. 
  4.58  (l) Fairmont Opera House 
  4.59  $200,000 is appropriated in 1999 for 
  4.60  accessibility improvements for the 
  4.61  Fairmont Opera House.  This is a 
  5.1   one-time appropriation and is not added 
  5.2   to the department's budget base. 
  5.3   (m) Heritage Breed Chickens 
  5.4   $25,000 is appropriated in 1999 for 
  5.5   grants to county fairs to provide 
  5.6   premiums and prizes for heritage breeds 
  5.7   of chickens.  This appropriation may 
  5.8   also be used to provide participating 
  5.9   4H and other youth groups up to 25 free 
  5.10  nursery hatchlings.  This is a one-time 
  5.11  appropriation and is not added to the 
  5.12  department's budget base. 
  5.13  Sec. 3.  MINNESOTA TECHNOLOGY, INC.        -0-        100,000
  5.14  $100,000 is appropriated in 1999 for 
  5.15  transfer to the Minnesota Technology, 
  5.16  Inc. fund for a grant to Minnesota 
  5.17  Project Innovation, Inc. to fund 
  5.18  Business Information and Technology 
  5.19  Centers, with one located at Metro 
  5.20  State University and one outside the 
  5.21  Twin Cities metropolitan area.  This is 
  5.22  a one-time appropriation and is not 
  5.23  added to the agency's budget base. 
  5.24  Sec. 4.  MINNESOTA WORLD TRADE CENTER
  5.25  CORPORATION                              155,000        -0-  
  5.26  $155,000 is appropriated in 1998 for 
  5.27  full and final payments of the 
  5.28  remaining 1988 debt of the Minnesota 
  5.29  World Trade Center Corporation which 
  5.30  was incurred for conference center 
  5.31  furniture, fixtures, and equipment.  
  5.32  This appropriation is available 
  5.33  immediately.  This is a one-time 
  5.34  appropriation and is not added to the 
  5.35  department's permanent budget base. 
  5.36  Sec. 5.  DEPARTMENT OF ECONOMIC
  5.37  SECURITY                                 450,000      4,509,000 
  5.38  (a) Youthbuild 
  5.39  $200,000 is appropriated in 1998 for 
  5.40  the Youthbuild program under Minnesota 
  5.41  Statutes, sections 268.361 to 268.366.  
  5.42  A Minnesota Youthbuild program funded 
  5.43  under this section as authorized in 
  5.44  Minnesota Statutes, sections 268.361 to 
  5.45  268.366, qualifies as an approved 
  5.46  training program under Minnesota Rules, 
  5.47  part 5200.0930, subpart 1.  The 
  5.48  appropriation is in addition to the 
  5.49  appropriation made by Laws 1997, 
  5.50  chapter 200, article 1, section 5, 
  5.51  subdivision 4, and is added to the 
  5.52  department's budget base.  The 
  5.53  appropriation is available until June 
  5.54  30, 1999. 
  5.55  (b) Youth Intervention Programs 
  5.56  $250,000 is appropriated in 1998 for 
  5.57  grants to fund 50 youth intervention 
  5.58  programs under Minnesota Statutes, 
  5.59  section 268.30, and is in addition to 
  5.60  the appropriation made by Laws 1997, 
  6.1   chapter 200, article 1, section 5, 
  6.2   subdivision 4, and is added to the 
  6.3   department's budget base.  It is 
  6.4   available until June 30, 1999.  
  6.5   (c) Centers for Independent Living 
  6.6   $523,000 in 1999 is for centers for 
  6.7   independent living.  This appropriation 
  6.8   is to partially achieve the recommended 
  6.9   minimum funding level of $500,000 per 
  6.10  center and is in addition to the 
  6.11  appropriation provided in Laws 1997, 
  6.12  chapter 200, article 1, section 5, 
  6.13  subdivision 2.  This appropriation is 
  6.14  added to the department's budget base.  
  6.15  The department shall allocate this 
  6.16  appropriation among the centers 
  6.17  equally, and shall not consider what 
  6.18  federal funds may be available to a 
  6.19  center in determining the allocations. 
  6.20  (d) Alien Labor Certification
  6.21  $160,000 is appropriated in 1999 to 
  6.22  administer the alien labor 
  6.23  certification program.  This is a 
  6.24  one-time appropriation and is not added 
  6.25  to the department's permanent budget 
  6.26  base. 
  6.27  (e) State Services for the Blind
  6.28  $1,400,000 is appropriated in 1999 to 
  6.29  the State Services for the Blind to 
  6.30  update radio talking book receivers and 
  6.31  create a digital infrastructure for the 
  6.32  communication center.  This is a 
  6.33  one-time appropriation and must be 
  6.34  matched dollar for dollar by a private 
  6.35  nonprofit organization for the same 
  6.36  purpose.  This appropriation is 
  6.37  available until June 30, 2000. 
  6.38  (f) Regional Job Market Analysis
  6.39  $200,000 is appropriated in 1999 to 
  6.40  retain the services of regional job 
  6.41  market analysts.  This appropriation is 
  6.42  added to the department's budget base. 
  6.43  (g) Vocational Rehabilitation
  6.44  $1,000,000 is appropriated in 1999 for 
  6.45  the vocational rehabilitation program 
  6.46  and is added to the appropriation for 
  6.47  rehabilitation services provided in 
  6.48  Laws 1997, chapter 200, article 1, 
  6.49  section 5, subdivision 2.  This is a 
  6.50  one-time appropriation and is not added 
  6.51  to the department's budget base. 
  6.52  (h) Nontraditional Careers for Women 
  6.53  $250,000 is appropriated in 1999, and 
  6.54  is added to the department's budget 
  6.55  base, for grants to organizations for 
  6.56  programs that encourage and assist 
  6.57  women to enter nontraditional careers 
  6.58  in the trades and in manual and 
  6.59  technical occupations.  To be eligible 
  7.1   for a grant under this section, a 
  7.2   program must include:  (1) outreach to 
  7.3   girls and women through public and 
  7.4   private elementary, junior high and 
  7.5   high schools, appropriate community 
  7.6   organizations, or existing state and 
  7.7   county employment and training 
  7.8   programs.  The outreach will consist of 
  7.9   general information concerning 
  7.10  opportunities for women in the trades, 
  7.11  manual, and technical occupations, 
  7.12  including specific fields where worker 
  7.13  shortages exist; and specific 
  7.14  information about training programs 
  7.15  offered.  The outreach may include 
  7.16  printed or recorded information, 
  7.17  presentations to women and girls, 
  7.18  hands-on experiences for girls, or 
  7.19  ongoing contact with appropriate staff 
  7.20  and volunteers; or (2) assistance for 
  7.21  women to enter careers in the trades, 
  7.22  technical, and manual occupations as 
  7.23  follows:  (a) training designed to 
  7.24  prepare women to succeed in 
  7.25  nontraditional occupations, conducted 
  7.26  by the grantee or in collaboration with 
  7.27  another institution.  The training 
  7.28  shall cover the knowledge and skills 
  7.29  required for the trade, information 
  7.30  about on-the-job realities for women in 
  7.31  the particular trade, physical strength 
  7.32  and stamina training as needed to 
  7.33  increase women's eligibility for jobs 
  7.34  that require physical strength, 
  7.35  opportunities for developing workplace 
  7.36  problem solving skills, and information 
  7.37  about the current and projected future 
  7.38  job market and likely career paths; (b) 
  7.39  assistance with child care and 
  7.40  transportation during training, job 
  7.41  search, and the first two months of 
  7.42  employment for low-income women who do 
  7.43  not have other coverage for these 
  7.44  expenses; (c) job placement assistance 
  7.45  during and for at least two years after 
  7.46  completion of the training program; and 
  7.47  (d) job retention support.  This may 
  7.48  take the form of mentorship programs, 
  7.49  support groups, or ongoing staff 
  7.50  contact for at least the first year of 
  7.51  placement in a job after completion of 
  7.52  training, and should include access to 
  7.53  job-related information, assistance 
  7.54  with workplace issues resolution, and 
  7.55  access to advocacy. 
  7.56  Programs must be accessible to MFIP-S 
  7.57  participants and other low-income 
  7.58  women.  Factors that contribute to 
  7.59  accessibility include:  (1) 
  7.60  affordability or financial aid 
  7.61  available for tuition and supplies; (2) 
  7.62  geographic proximity to low-income 
  7.63  neighborhoods, child care, and 
  7.64  transportation routes; and (3) 
  7.65  flexibility of hours per week and weeks 
  7.66  of duration of training programs to be 
  7.67  compatible with family needs and the 
  7.68  need for employment during training. 
  7.69  All state-funded employment and 
  7.70  training programs must include 
  8.1   information about opportunities for 
  8.2   women in nontraditional careers in the 
  8.3   trades, manual, and technical 
  8.4   occupations. 
  8.5   (i) Summer Youth Employment 
  8.6   $600,000 is appropriated in 1999 for 
  8.7   summer youth employment programs.  This 
  8.8   is a one-time appropriation and is not 
  8.9   added to the department's budget base. 
  8.10  (j) Work Force Centers Pilot Project 
  8.11  $250,000 is appropriated in 1999 to 
  8.12  develop a pilot project that will 
  8.13  electronically link four department 
  8.14  workforce centers with four secondary 
  8.15  schools for the purpose of providing 
  8.16  secondary students and school 
  8.17  counselors with labor market 
  8.18  information and job-seeking skills 
  8.19  expertise to assist transition from 
  8.20  school to work.  The commissioner shall 
  8.21  employ four people to implement this 
  8.22  project.  The commissioner shall report 
  8.23  on the progress of the pilot project to 
  8.24  the legislature by May 1, 1999.  The 
  8.25  commissioner shall make a final report 
  8.26  on the pilot projects to the 
  8.27  legislature by March 1, 2000.  This is 
  8.28  a one-time appropriation and must not 
  8.29  be added to the agency's permanent 
  8.30  budget base. 
  8.31  (k) Advocating Change Together, Inc. 
  8.32  $126,000 is appropriated in 1999 for a 
  8.33  grant to Advocating Change Together, 
  8.34  Inc. (ACT).  The grant must be used for 
  8.35  the training and empowerment of 
  8.36  individuals with developmental and 
  8.37  other mental health disabilities, the 
  8.38  maintenance of related data, or 
  8.39  technical assistance for work 
  8.40  advancement or additional workforce 
  8.41  training.  This is a one-time 
  8.42  appropriation and is not added to the 
  8.43  department's permanent budget base. 
  8.44  Sec. 6.  DEPARTMENT OF COMMERCE           -0-           222,000 
  8.45                Summary by Fund
  8.46  General                   -0-          22,000
  8.47  Special Revenue Fund      -0-         200,000
  8.48  $22,000 is appropriated in 1999 from 
  8.49  the general fund for implementation of 
  8.50  the mortgage originator and servicer 
  8.51  regulation program established in House 
  8.52  File No. 2983, if enacted.  This is 
  8.53  added to the department's budget base.  
  8.54  $200,000 is appropriated from the 
  8.55  contractor's recovery account in the 
  8.56  special revenue fund under Minnesota 
  8.57  Statutes 1996, section 326.975, 
  8.58  subdivision 1, to provide information 
  8.59  to consumers on residential 
  9.1   construction issues and is added to the 
  9.2   department's budget base. 
  9.3   Sec. 7.  LABOR AND INDUSTRY               -0-           100,000
  9.4   $100,000 is appropriated in 1999 for 
  9.5   development of the standard disclosure 
  9.6   brochure, required in Minnesota 
  9.7   Statutes, section 181.636, subdivision 
  9.8   2, and to develop and implement a 
  9.9   public awareness campaign in 
  9.10  consultation with the councils created 
  9.11  under Minnesota Statutes, sections 
  9.12  3.922, 3.9223, 3.9225, and 3.9226, to 
  9.13  educate employees and employers on 
  9.14  their rights and duties under Minnesota 
  9.15  Statutes, section 181.636.  The 
  9.16  commissioner shall report to the 
  9.17  legislature by January 15, 2000, on the 
  9.18  results of the campaign.  Of this 
  9.19  appropriation, $81,000 is added to the 
  9.20  department's budget base. 
  9.21  Sec. 8.  PUBLIC UTILITIES
  9.22  COMMISSION                               204,000        189,000 
  9.23  This appropriation is for costs 
  9.24  associated with the regulation of 
  9.25  utilities. 
  9.26  Sec. 9.  DEPARTMENT OF 
  9.27  PUBLIC SERVICE                             -0-          130,000 
  9.28  This appropriation is for planning and 
  9.29  analysis of the regulation of the 
  9.30  electrical industry. 
  9.31  Sec. 10.  MINNESOTA HISTORICAL 
  9.32  SOCIETY                                  124,000        925,000 
  9.33  (a) Salary Increases
  9.34  $124,000 is appropriated in 1998 and 
  9.35  $450,000 is appropriated in 1999 for 
  9.36  salary increases.  The fiscal year 1998 
  9.37  appropriation is available 
  9.38  immediately.  This appropriation is 
  9.39  added to the historical society's 
  9.40  budget base. 
  9.41  (b) Lake Superior and Mississippi 
  9.42  Railroad 
  9.43  $100,000 is appropriated in 1999 for a 
  9.44  grant to the Lake Superior and 
  9.45  Mississippi railroad, a 501(c)(3) 
  9.46  organization, for the purchase and 
  9.47  installation of railroad ties.  This is 
  9.48  a one-time appropriation and is not 
  9.49  added to the department's permanent 
  9.50  budget base. 
  9.51  (c) Hmong Archives 
  9.52  $100,000 is appropriated in 1999 for 
  9.53  start-up costs for the Hmong history 
  9.54  and culture archival project.  The 
  9.55  society may make grants to nonprofit 
  9.56  organizations for planning, training, 
  9.57  and purchase of supplies and 
  9.58  equipment.  Of this amount, $75,000 is 
 10.1   added to the society's budget base. 
 10.2   (d) Fridley Historical Museum 
 10.3   $50,000 is appropriated in 1999 to 
 10.4   refurbish the Fridley historical museum 
 10.5   in Fridley.  This is a one-time 
 10.6   appropriation and is not added to the 
 10.7   department's permanent budget base. 
 10.8   (e) Winona County Historical Society 
 10.9   $50,000 is appropriated in 1999 for a 
 10.10  one-time grant to the Winona county 
 10.11  historical society for upgrade of 
 10.12  technology.  The Winona county 
 10.13  historical society shall submit to the 
 10.14  Minnesota historical society a plan for 
 10.15  the use of this grant.  As part of this 
 10.16  project, the Minnesota historical 
 10.17  society, in collaboration with the 
 10.18  Winona county historical society and 
 10.19  other county and local historical 
 10.20  societies, shall develop a plan for the 
 10.21  future use of technology by county and 
 10.22  local historical societies.  This is a 
 10.23  one-time appropriation and is not added 
 10.24  to the department's permanent budget 
 10.25  base. 
 10.26  (f) St. Croix Valley Heritage Center 
 10.27  $75,000 is appropriated in 1999 for a 
 10.28  grant to the St. Croix Valley Heritage 
 10.29  Coalition, Inc., for initial project 
 10.30  design for the St. Croix Valley 
 10.31  Heritage Center.  This is a one-time 
 10.32  appropriation and is not added to the 
 10.33  department's permanent budget base. 
 10.34  (g) Grimm Farmhouse
 10.35  $75,000 is appropriated in 1999 for a 
 10.36  one-time grant to Hennepin parks for 
 10.37  the design and stabilization of the 
 10.38  Wendelin Grimm farmhouse.  This 
 10.39  appropriation is available until June 
 10.40  30, 1999.  This appropriation must be 
 10.41  matched by an equal amount from 
 10.42  nonstate sources.  This is a one-time 
 10.43  appropriation and is not added to the 
 10.44  budget base. 
 10.45  (h) Metropolitan Multitype Library
 10.46  Consortium
 10.47  $25,000 is appropriated in 1999 for a 
 10.48  grant to the metropolitan multitype 
 10.49  library consortium for copying and 
 10.50  making available to the 11 greater 
 10.51  Minnesota regional public library 
 10.52  systems and the St. Paul and 
 10.53  Minneapolis libraries, through the 
 10.54  Minnesota center for the book, a series 
 10.55  of video cassette tapes of interviews 
 10.56  with Minnesota authors, for the 
 10.57  production and programming costs of the 
 10.58  northern lights cable program on which 
 10.59  the Minnesota authors are interviewed, 
 10.60  and for operating costs the consortium 
 10.61  incurs as a result of this provision.  
 11.1   Libraries that receive a copy of the 
 11.2   series shall make the video cassettes 
 11.3   readily available to teachers and other 
 11.4   members of the public interested in 
 11.5   learning about the work and lives of 
 11.6   Minnesota authors.  This is a one-time 
 11.7   appropriation and is not added to the 
 11.8   budget base. 
 11.9   Sec. 11.  COUNCIL ON BLACK 
 11.10  MINNESOTANS                               -0-           75,000 
 11.11  $75,000 is appropriated in 1999 to 
 11.12  assist in planning and coordinating 
 11.13  observances of the Martin Luther King, 
 11.14  Jr. holiday and other events honoring 
 11.15  Martin Luther King, Jr.  This is a 
 11.16  one-time appropriation and is not added 
 11.17  to the council's budget base. 
 11.18  Sec. 12.  INDIAN AFFAIRS COUNCIL          -0-           80,000 
 11.19  $80,000 is appropriated in 1999 to 
 11.20  assist in funding the 50th annual 
 11.21  conference of the Interstate Indian 
 11.22  Council to be held in Minnesota in 
 11.23  1999.  This is a one-time appropriation 
 11.24  and is not added to the council's 
 11.25  permanent budget base.  This 
 11.26  appropriation is available only if 
 11.27  matched on at least a dollar-for-dollar 
 11.28  basis from nonstate sources. 
 11.29  Sec. 13.  ADMINISTRATION                  50,000       735,000
 11.30  (a) Little Falls 
 11.31  $300,000 is appropriated in 1999 for a 
 11.32  grant to the city of Little Falls to 
 11.33  develop programming and marketing 
 11.34  plans, and to equip a conference center 
 11.35  and retreat site on the Mississippi 
 11.36  river in Little Falls.  This is a 
 11.37  one-time appropriation and is not added 
 11.38  to the department's permanent budget 
 11.39  base. 
 11.40  (b) Montevideo 
 11.41  $185,000 is appropriated in 1999 for a 
 11.42  grant to the city of Montevideo for 
 11.43  exterior improvements to the city's 
 11.44  historic railroad depot and for design 
 11.45  and development of a related parking 
 11.46  area, trailhead, and public facilities 
 11.47  at the site, subject to the 
 11.48  requirements of Minnesota Statutes, 
 11.49  section 16A.695.  This is a one-time 
 11.50  appropriation and is not added to the 
 11.51  department's permanent budget base. 
 11.52  (c) Walnut Grove 
 11.53  $50,000 is appropriated in 1999 for a 
 11.54  grant to the city of Walnut Grove for 
 11.55  capital improvements to the Laura 
 11.56  Ingalls Wilder pageant facilities.  
 11.57  This is a one-time appropriation and is 
 11.58  not added to the department's permanent 
 11.59  budget base. 
 12.1   (d) Columbia Heights 
 12.2   $100,000 is appropriated in 1999 for a 
 12.3   grant to the city of Columbia Heights 
 12.4   for Central Avenue streetscape 
 12.5   improvements.  This is a one-time 
 12.6   appropriation and is not added to the 
 12.7   department's permanent budget base. 
 12.8   (e) Stewart 
 12.9   $100,000 is appropriated in 1999 for a 
 12.10  grant to the city of Stewart for the 
 12.11  final draw down design for the storm 
 12.12  sewer project.  This is a one-time 
 12.13  appropriation and is not added to the 
 12.14  department's permanent budget base. 
 12.15  (f) Blackduck 
 12.16  $50,000 is appropriated in 1998 for a 
 12.17  grant to the city of Blackduck to help 
 12.18  restore and stabilize eight buildings 
 12.19  at Camp Rabideau in Chippewa National 
 12.20  Forest.  This is a one-time 
 12.21  appropriation and is not added to the 
 12.22  department's budget base.  This 
 12.23  appropriation is available until June 
 12.24  30, 1999. 
 12.25  Sec. 14.  METROPOLITAN COUNCIL             -0-          250,000 
 12.26  $250,000 is appropriated in 1999 for 
 12.27  corridor planning pilot project grants, 
 12.28  as provided in section 63.  This is a 
 12.29  one-time appropriation and is not added 
 12.30  to the department's permanent budget 
 12.31  base. 
 12.32  Sec. 15.  [BOUNDARY EXTENSION.] 
 12.33  The boundaries of the North Mississippi 
 12.34  Regional Park are extended to include 
 12.35  49th Avenue North and adjacent property 
 12.36  from Humboldt Avenue West to the 
 12.37  Mississippi river.  Funds appropriated 
 12.38  for the North Mississippi Regional Park 
 12.39  may be expended to create a trail or 
 12.40  greenway as part of the Hennepin county 
 12.41  multijurisdictional program on 49th 
 12.42  Avenue North and adjacent property as 
 12.43  an entrance to the North Mississippi 
 12.44  Regional Park.  
 12.45     Sec. 16.  Minnesota Statutes 1996, section 16B.06, 
 12.46  subdivision 2, is amended to read: 
 12.47     Subd. 2.  [VALIDITY OF STATE CONTRACTS.] (a) A state 
 12.48  contract or lease is not valid and the state is not bound by it 
 12.49  until: 
 12.50     (1) it has first been executed by the head of the agency or 
 12.51  a delegate which is a party to the contract; 
 12.52     (2) it has been approved by the commissioner or a delegate, 
 12.53  under this section; 
 13.1      (3) it has been approved by the attorney general or a 
 13.2   delegate as to form and execution; and 
 13.3      (4) the account system shows an allotment or encumbrance 
 13.4   balance for the full amount of the contract liability.  
 13.5      (b) Paragraph (a), clause (2), does not apply to contracts 
 13.6   between state agencies, contracts awarding grants, or contracts 
 13.7   making loans, or bond purchase agreements by the department of 
 13.8   trade and economic development or the Minnesota public 
 13.9   facilities authority. 
 13.10     (c) The head of the agency may delegate the execution of 
 13.11  specific contracts or specific types of contracts to a 
 13.12  designated subordinate within the agency if the delegation has 
 13.13  been approved by the commissioner of administration and filed 
 13.14  with the secretary of state.  The fully executed copy of every 
 13.15  contract or lease must be kept on file at the contracting agency.
 13.16     Sec. 17.  Minnesota Statutes 1996, section 16B.08, 
 13.17  subdivision 7, is amended to read: 
 13.18     Subd. 7.  [SPECIFIC PURCHASES.] (a) The following may be 
 13.19  purchased without regard to the competitive bidding requirements 
 13.20  of this chapter:  
 13.21     (1) merchandise for resale at state park refectories or 
 13.22  facility operations; 
 13.23     (2) farm and garden products, which may be sold at the 
 13.24  prevailing market price on the date of the sale; 
 13.25     (3) meat for other state institutions from the technical 
 13.26  college maintained at Pipestone by independent school district 
 13.27  No. 583; and 
 13.28     (4) products and services from the Minnesota correctional 
 13.29  facilities; and 
 13.30     (5) merchandise for resale at office of tourism locations.  
 13.31     (b) Supplies, materials, equipment, and utility services 
 13.32  for use by a community-based residential facility operated by 
 13.33  the commissioner of human services may be purchased or rented 
 13.34  without regard to the competitive bidding requirements of this 
 13.35  chapter. 
 13.36     (c) Supplies, materials, or equipment to be used in the 
 14.1   operation of a hospital licensed under sections 144.50 to 144.56 
 14.2   that are purchased under a shared service purchasing arrangement 
 14.3   whereby more than one hospital purchases supplies, materials, or 
 14.4   equipment with one or more other hospitals, either through one 
 14.5   of the hospitals or through another entity, may be purchased 
 14.6   without regard to the competitive bidding requirements of this 
 14.7   chapter if the following conditions are met: 
 14.8      (1) the hospital's governing authority authorizes the 
 14.9   arrangement; 
 14.10     (2) the shared services purchasing program purchases items 
 14.11  available from more than one source on the basis of competitive 
 14.12  bids or competitive quotations of prices; and 
 14.13     (3) the arrangement authorizes the hospital's governing 
 14.14  authority or its representatives to review the purchasing 
 14.15  procedures to determine compliance with these requirements. 
 14.16     Sec. 18.  Minnesota Statutes 1996, section 16B.65, 
 14.17  subdivision 7, is amended to read: 
 14.18     Subd. 7.  [CONTINUING EDUCATION.] Subject to sections 
 14.19  16B.59 to 16B.75, the commissioner may by rule establish or 
 14.20  approve continuing education programs for municipal building 
 14.21  officials dealing with matters of building code administration, 
 14.22  inspection, and enforcement.  
 14.23     Effective January 1, 1985, each person certified as a 
 14.24  building official for the state must satisfactorily complete 
 14.25  applicable educational programs established or approved by the 
 14.26  commissioner every three calendar years to retain certification, 
 14.27  including at least three hours in programs relating to the state 
 14.28  energy code. 
 14.29     Each person certified as a building official must submit in 
 14.30  writing to the commissioner an application for renewal of 
 14.31  certification within 60 days of the last day of the third 
 14.32  calendar year following the last certificate issued.  Each 
 14.33  application for renewal must be accompanied by proof of 
 14.34  satisfactory completion of minimum continuing education 
 14.35  requirements and the certification renewal fee established by 
 14.36  the commissioner.  
 15.1      For persons certified prior to January 1, 1985, the first 
 15.2   three-year period commences January 1, 1985. 
 15.3      Sec. 19.  Minnesota Statutes 1997 Supplement, section 
 15.4   115C.09, subdivision 3f, is amended to read: 
 15.5      Subd. 3f.  [REIMBURSEMENTS; SMALL GASOLINE RETAILERS.] (a) 
 15.6   As used in this subdivision, "small gasoline retailer" means 
 15.7   a responsible person tank owner or operator who owns no more 
 15.8   than only one location in this or any other state where motor 
 15.9   fuel was dispensed to the public into motor vehicles, 
 15.10  watercraft, or aircraft in the previous year, and who dispensed 
 15.11  motor fuel at that location. 
 15.12     (b) Notwithstanding subdivision 1, paragraph (b), clause 
 15.13  (1), for eligible applicants who are small gasoline retailers 
 15.14  that have dispensed less than 500,000 gallons of motor fuel 
 15.15  during the most recent calendar year that petroleum products 
 15.16  were dispensed at the location owned by the retailer, the board 
 15.17  shall reimburse the applicant for 90 percent of the applicant's 
 15.18  total reimbursable cost for tank removal projects started after 
 15.19  January 1, 1997 1995, including, but not limited to, tank 
 15.20  removal, closure in place, backfill, resurfacing, and utility 
 15.21  service restoration costs, regardless of whether a release has 
 15.22  occurred at the site, provided that the tank involved is a 
 15.23  regulated underground storage tank. 
 15.24     (c) Notwithstanding subdivision 1, paragraph (b), clause 
 15.25  (1), for eligible applicants who are small gasoline retailers 
 15.26  that have dispensed less than 250,000 gallons of motor fuel 
 15.27  during the most recent calendar year that petroleum products 
 15.28  were dispensed at the location owned by the retailer, provided 
 15.29  that the tank involved is a regulated underground storage tank, 
 15.30  the board shall reimburse the applicant for 95 percent of the 
 15.31  following costs: 
 15.32     (1) tank removal costs described in paragraph (b); and 
 15.33     (2) petroleum contamination cleanup as provided under 
 15.34  subdivision 1 incurred during or after the tank removal project. 
 15.35     (d) An applicant who owns only one location in this or any 
 15.36  other state where motor fuel was dispensed to the public into 
 16.1   motor vehicles, watercraft, or aircraft but who did not dispense 
 16.2   motor fuel at that location may qualify as a small gasoline 
 16.3   retailer if:  
 16.4      (1) the previous tank owner or operator at the location was 
 16.5   a small gasoline retailer that dispensed less than 500,000 
 16.6   gallons of motor fuel during the most recent calendar year that 
 16.7   petroleum products were dispensed at the location; and 
 16.8      (2) the applicant acquired legal or equitable title to the 
 16.9   property after January 1, 1995.  
 16.10     (e) This subdivision expires January 1, 2000. 
 16.11     Sec. 20.  Minnesota Statutes 1996, section 115C.09, is 
 16.12  amended by adding a subdivision to read: 
 16.13     Subd. 3g.  [REIMBURSEMENTS; SMALL BUSINESS OWNERS.] (a) As 
 16.14  used in this subdivision, "small business owner" means a person: 
 16.15     (1) who has no more than $250,000 per year in sales; 
 16.16     (2) who owns no more than one location where motor fuel was 
 16.17  previously dispensed to the public into motor vehicles; 
 16.18     (3) who did not dispense motor fuel at that location; and 
 16.19     (4) whose tanks were never registered with the state. 
 16.20     (b) Notwithstanding subdivision 1, paragraph (b), clause 
 16.21  (1), the board shall reimburse an eligible applicant who is a 
 16.22  small business owner for 90 percent of the applicant's total 
 16.23  reimbursable cost for tank removal projects started after 
 16.24  January 1, 1998, including, but not limited to, tank removal, 
 16.25  closure in place, backfill, resurfacing, and utility service 
 16.26  restoration costs, regardless of whether a release has occurred 
 16.27  at the site, and provided that the person does not intend to 
 16.28  replace the tanks. 
 16.29     Sec. 21.  Minnesota Statutes 1996, section 116.182, 
 16.30  subdivision 1, is amended to read: 
 16.31     Subdivision 1.  [DEFINITIONS.] (a) For the purposes of this 
 16.32  section, the terms defined in this subdivision have the meanings 
 16.33  given them. 
 16.34     (b) "Agency" means the pollution control agency. 
 16.35     (c) "Authority" means the public facilities authority 
 16.36  established in section 446A.03. 
 17.1      (d) "Commissioner" means the commissioner of the pollution 
 17.2   control agency. 
 17.3      (e) "Essential project components" means those components 
 17.4   of a wastewater disposal system that are necessary to convey or 
 17.5   treat a municipality's existing wastewater flows and loadings, 
 17.6   and future wastewater flows and loadings based on 50 percent of 
 17.7   the projected residential growth of the municipality for a 
 17.8   20-year period. 
 17.9      (f) "Municipality" means a county, home rule charter or 
 17.10  statutory city, town, the metropolitan council, an Indian tribe 
 17.11  or an authorized Indian tribal organization; or any other 
 17.12  governmental subdivision of the state responsible by law for the 
 17.13  prevention, control, and abatement of water pollution in any 
 17.14  area of the state. 
 17.15     (g) "Outstanding resource value waters" are those that have 
 17.16  high water quality, wilderness characteristics, unique 
 17.17  scientific or ecological significance, exceptional recreation 
 17.18  value, or other special qualities that warrant special 
 17.19  protection. 
 17.20     (h) "Outstanding international resource value waters" are 
 17.21  the surface waters of the state in the Lake Superior Basin, 
 17.22  other than Class 7 waters and those waters designated as 
 17.23  outstanding resource value waters. 
 17.24     Sec. 22.  Minnesota Statutes 1996, section 116.182, is 
 17.25  amended by adding a subdivision to read: 
 17.26     Subd. 3a.  [NOTIFICATION OF OTHER GOVERNMENT UNITS.] In 
 17.27  addition to other applicable statutes or rules that are required 
 17.28  to receive financial assistance consistent with this 
 17.29  subdivision, the commissioner may not approve or certify a 
 17.30  project to the public facilities authority for wastewater 
 17.31  financial assistance unless the following requirements are met: 
 17.32     (1) prior to the initiation of the public facilities 
 17.33  planning process for a new wastewater treatment system, the 
 17.34  project proposer gives written notice to all municipalities as 
 17.35  defined in 116.82 within ten miles of the proposed project 
 17.36  service area, including the county in which the project is 
 18.1   located, the office of strategic and long-range planning, and 
 18.2   the pollution control agency.  The notice shall state the 
 18.3   proposer's intent to begin the facilities planning process and 
 18.4   provide a description of the need for the proposed project.  The 
 18.5   notice also shall request a response within 30 days of the 
 18.6   notice date from all government units who wish to receive and 
 18.7   comment on the future facilities plan for the proposed project; 
 18.8      (2) during development of the facility plan's analysis of 
 18.9   service alternatives, the project proposer must request 
 18.10  information from all municipalities and sanitary districts which 
 18.11  have existing systems that have current capacity to meet the 
 18.12  proposer's needs or can be upgraded to meet those needs.  At a 
 18.13  minimum, the proposer must notify in writing those 
 18.14  municipalities and sanitary districts whose corporate limits or 
 18.15  boundaries are within three miles of the proposed project's 
 18.16  service area; 
 18.17     (3) 60 days prior to the municipality's public hearing on 
 18.18  the facilities plan, a copy of the draft facilities plan and 
 18.19  notice of the public hearing on the facilities plan must be 
 18.20  given to the local government units who previously expressed 
 18.21  interest in the proposed project under clause (1); 
 18.22     (4) for a proposed project located or proposed to be 
 18.23  located outside the corporate limits of a city, the affected 
 18.24  county has certified to the agency that the proposed project is 
 18.25  consistent with the applicable county comprehensive plan and 
 18.26  zoning and subdivision regulations; 
 18.27     (5) copies of the notifications required under clauses (1) 
 18.28  and (2), as well as the certification from the county and a 
 18.29  summary of the comments received, must be included by the 
 18.30  municipality in the submission of its facilities plan to the 
 18.31  pollution control agency, along with other required items as 
 18.32  specified in the agency's rules; 
 18.33     (6) at any time within the 60-day period specified in 
 18.34  clause (3), any city in the state within three miles of a 
 18.35  proposed project located outside the corporate limits of a city 
 18.36  may file a written objection with the pollution control agency.  
 19.1   An objection makes the proposed project ineligible for grant 
 19.2   funding until the city withdraws its objection or the pollution 
 19.3   control agency board certifies that the proposed project is the 
 19.4   only feasible and cost-effective option available for servicing 
 19.5   the proposed area; and 
 19.6      (7) this subdivision does not apply to the western Lake 
 19.7   Superior sanitary district or the metropolitan council. 
 19.8      Sec. 23.  Minnesota Statutes 1996, section 116J.415, 
 19.9   subdivision 5, is amended to read: 
 19.10     Subd. 5.  [LOAN CRITERIA.] The following criteria apply to 
 19.11  loans made under the challenge grant program:  
 19.12     (1) loans must be made to businesses that are not likely to 
 19.13  undertake a project for which loans are sought without 
 19.14  assistance from the challenge grant program; 
 19.15     (2) a loan must be used for a project designed principally 
 19.16  to benefit low-income persons through the creation of job or 
 19.17  business opportunities for them; 
 19.18     (3) the minimum loan is $5,000 and the maximum 
 19.19  is $100,000 $200,000; 
 19.20     (4) a loan may not exceed 50 percent of the total cost of 
 19.21  an individual project; 
 19.22     (5) a loan may not be used for a retail development 
 19.23  project; and 
 19.24     (6) a business applying for a loan, except a 
 19.25  microenterprise loan under subdivision 6, must be sponsored by a 
 19.26  resolution of the governing body of the local governmental unit 
 19.27  within whose jurisdiction the project is located. 
 19.28     Sec. 24.  [116J.544] [DEFINITIONS.] 
 19.29     Subdivision 1.  [TERMS.] For the purposes of sections 
 19.30  116J.544 to 116J.545, the following terms have the meanings 
 19.31  given them. 
 19.32     Subd. 2.  [BOARD.] "Board" means the Minnesota film board. 
 19.33     Subd. 3.  [COMMISSIONER.] "Commissioner" means the 
 19.34  commissioner of trade and economic development. 
 19.35     Sec. 25.  [116J.5445] [DUTIES; REPORTS.] 
 19.36     The commissioner shall enter into a contract with the board 
 20.1   to implement the revolving loan fund.  The contract shall 
 20.2   include a description of the board's responsibilities in 
 20.3   reviewing, approving, and monitoring of projects funded by the 
 20.4   loan fund.  The commissioner shall submit an annual report to 
 20.5   the legislature by January 1 of each year describing each loan 
 20.6   made under section 116J.545, including information on the 
 20.7   production and distribution status of each project for which a 
 20.8   loan has been made, the repayment status of each loan, the 
 20.9   number of jobs created in Minnesota, the amount of expenditures 
 20.10  in Minnesota, and the amount and source of matching funds. 
 20.11     Sec. 26.  [116J.545] [MINNESOTA FILM AND TELEVISION 
 20.12  REVOLVING LOAN FUND.] 
 20.13     Subdivision 1.  [ELIGIBLE PROJECTS.] An eligible project is 
 20.14  a feature film, long form television project, or television 
 20.15  series.  At least one of the project's principals must be a 
 20.16  Minnesota resident.  The principals are defined as the project's 
 20.17  director, producer, or company chief executive officer. 
 20.18     Subd. 2.  [REVOLVING LOAN FUND.] The commissioner shall 
 20.19  establish a revolving loan fund in the special revenue fund for 
 20.20  the purpose of making loans to finance eligible projects.  Loan 
 20.21  applications given preliminary approval by the board must be 
 20.22  forwarded to the commissioner for final approval.  Funds for the 
 20.23  loan will be disbursed by the commissioner to the board after 
 20.24  this approval. 
 20.25     Subd. 3.  [BUSINESS LOAN CRITERIA.] (a) The criteria in 
 20.26  this subdivision apply to loans made under the Minnesota film 
 20.27  and television revolving loan fund. 
 20.28     (b) Loans must only be made for projects that the board 
 20.29  determines would not be undertaken without assistance from the 
 20.30  loan fund. 
 20.31     (c) The minimum loan is $50,000 and the maximum loan is 
 20.32  $500,000.  The board will determine the interest rate, terms, 
 20.33  maturity, and collateral for each loan.  The interest rate must 
 20.34  be at least three percent. 
 20.35     (d) The amount of a loan may not exceed 50 percent of each 
 20.36  project. 
 21.1      (e) Funded projects will be required to spend 120 percent 
 21.2   of the amount of the loan in Minnesota.  These expenditures may 
 21.3   include direct production or postproduction costs as well as 
 21.4   talent, producer, or director fees. 
 21.5      (f) The commissioner shall adopt rules to implement this 
 21.6   section. 
 21.7      Subd. 4.  [REVOLVING LOAN FUND ADMINISTRATION.] (a) Loan 
 21.8   repayment amounts must be returned by the board to the 
 21.9   commissioner and deposited in a revolving loan fund for 
 21.10  additional loans to be made by the board. 
 21.11     (b) Administrative expenses of the board incurred to 
 21.12  operate the loan program, not to exceed $100,000 per year, may 
 21.13  be paid to the board from the revolving loan fund. 
 21.14     Subd. 5.  [REPORTING REQUIREMENTS.] The board shall: 
 21.15     (1) submit an annual report to the commissioner by 
 21.16  September 30 of each year that includes a description of 
 21.17  projects funded as of June 30 of the same year.  The report 
 21.18  shall include a description of projects supported by the 
 21.19  revolving loan fund, the production and distribution status of 
 21.20  each project for which a loan has been made, the terms of each 
 21.21  loan and the repayment status of each loan, the number of jobs 
 21.22  created in Minnesota and the amount of expenditures in 
 21.23  Minnesota, and the amount and source of matching funds.  A 
 21.24  description of the administrative expenses incurred by the board 
 21.25  shall also be included; and 
 21.26     (2) provide for an independent annual audit to be performed 
 21.27  in accordance with generally accepted accounting practices and 
 21.28  auditing standards and submit a copy of each annual audit report 
 21.29  to the commissioner. 
 21.30     Sec. 27.  Minnesota Statutes 1996, section 116J.553, 
 21.31  subdivision 2, is amended to read: 
 21.32     Subd. 2.  [REQUIRED CONTENT.] (a) The commissioner shall 
 21.33  prescribe and provide the application form.  Except as provided 
 21.34  in paragraphs (b) and (c), the application must include at least 
 21.35  the following information: 
 21.36     (1) identification of the site; 
 22.1      (2) an approved response action plan for the site, 
 22.2   including the results of engineering and other tests showing the 
 22.3   nature and extent of the release or threatened release of 
 22.4   contaminants at the site; 
 22.5      (3) a detailed estimate, along with necessary supporting 
 22.6   evidence, of the total cleanup costs for the site; 
 22.7      (4) an appraisal of the current market value of the 
 22.8   property, separately taking into account the effect of the 
 22.9   contaminants on the market value, prepared by a qualified 
 22.10  independent appraiser using accepted appraisal methodology; 
 22.11     (5) an assessment of the development potential or likely 
 22.12  use of the site after completion of the response action plan, 
 22.13  including any specific commitments from third parties to 
 22.14  construct improvements on the site; 
 22.15     (6) the manner in which the municipality will meet the 
 22.16  local match requirement; and 
 22.17     (7) any additional information or material that the 
 22.18  commissioner prescribes. 
 22.19     (b) An application for a grant under section 116J.554, 
 22.20  subdivision 1, paragraph (b), must include a detailed estimate 
 22.21  of the cost of the actions for which the grant is sought, but 
 22.22  need not include the information specified in paragraph (a), 
 22.23  clauses (2) to (4) and (6). 
 22.24     (c) A response action plan is not required as a condition 
 22.25  to receive a grant under section 116J.554, subdivision 1, 
 22.26  paragraph (c). 
 22.27     Sec. 28.  Minnesota Statutes 1996, section 116L.03, 
 22.28  subdivision 5, is amended to read: 
 22.29     Subd. 5.  [TERMS AND COMPENSATION.] The terms of appointed 
 22.30  members shall be for four years except for the initial 
 22.31  appointments.  The initial appointments of the governor shall 
 22.32  have the following terms:  two members each for one, two, three, 
 22.33  and four years.  Compensation of members shall be as provided in 
 22.34  section 15.0575, subdivision 3. 
 22.35     Sec. 29.  Minnesota Statutes 1996, section 179A.16, 
 22.36  subdivision 1, is amended to read: 
 23.1      Subdivision 1.  [NONESSENTIAL EMPLOYEES.] An exclusive 
 23.2   representative or an employer of a unit of employees other than 
 23.3   essential employees may request interest arbitration by 
 23.4   providing written notice of the request to the other party and 
 23.5   the commissioner.  The written request for arbitration must 
 23.6   specify the items to be submitted to arbitration and whether 
 23.7   conventional, final-offer total-package, or final-offer 
 23.8   item-by-item arbitration is contemplated by the request. 
 23.9      Except for city attorney legal units, the items to be 
 23.10  submitted to arbitration and the form of arbitration to be used 
 23.11  are subject to mutual agreement.  If an agreement to arbitrate 
 23.12  is reached, it must be reduced to writing and a copy of the 
 23.13  agreement filed with the commissioner.  A failure to respond, or 
 23.14  to reach agreement on the items or form of arbitration, within 
 23.15  15 days of receipt of the request to arbitrate constitutes a 
 23.16  rejection of the request. 
 23.17     Sec. 30.  Minnesota Statutes 1996, section 179A.16, is 
 23.18  amended by adding a subdivision to read: 
 23.19     Subd. 1a.  [CITY ATTORNEY LEGAL UNITS.] An exclusive 
 23.20  representative or employer of a city attorney legal unit may 
 23.21  petition for binding interest arbitration by filing a written 
 23.22  request with the other party and the commissioner.  The written 
 23.23  request must specify the items that the party wishes to submit 
 23.24  to binding arbitration.  Within 15 days of the request, the 
 23.25  commissioner shall determine whether further mediation of the 
 23.26  dispute would be appropriate and shall only certify matters to 
 23.27  the board in cases where the commissioner believes that both 
 23.28  parties have made substantial, good faith bargaining efforts and 
 23.29  that an impasse has occurred. 
 23.30     Sec. 31.  Minnesota Statutes 1996, section 179A.16, 
 23.31  subdivision 3, is amended to read: 
 23.32     Subd. 3.  [PROCEDURE.] Within 15 days from the time the 
 23.33  commissioner has certified a matter to be ready for binding 
 23.34  arbitration because of an agreement under subdivision 1 or in 
 23.35  accordance with subdivision 1a or 2, both parties shall submit 
 23.36  their final positions on the items in dispute.  In the event of 
 24.1   a dispute over the items to be submitted to binding arbitration 
 24.2   involving essential employees, the commissioner shall determine 
 24.3   the items to be decided by arbitration based on the efforts to 
 24.4   mediate the dispute and the positions submitted by the parties 
 24.5   during the course of those efforts.  The parties may stipulate 
 24.6   items to be excluded from arbitration. 
 24.7      Sec. 32.  Minnesota Statutes 1996, section 179A.16, 
 24.8   subdivision 9, is amended to read: 
 24.9      Subd. 9.  [NO ARBITRATION.] Failure to reach agreement on 
 24.10  employer payment of, or contributions toward, premiums for group 
 24.11  insurance coverage of retired employees is not subject to 
 24.12  interest arbitration procedures under this section, except for 
 24.13  units of essential employees and city attorney legal units. 
 24.14     Sec. 33.  Minnesota Statutes 1996, section 179A.18, 
 24.15  subdivision 1, is amended to read: 
 24.16     Subdivision 1.  [WHEN AUTHORIZED.] Essential employees may 
 24.17  not strike.  Except as otherwise provided by subdivision 2 and 
 24.18  section 179A.17, subdivision 2, other public employees may 
 24.19  strike only under the following circumstances:  
 24.20     (1)(a) the collective bargaining agreement between their 
 24.21  exclusive representative and their employer has expired or, if 
 24.22  there is no agreement, impasse under section 179A.17, 
 24.23  subdivision 2, has occurred; and 
 24.24     (b) the exclusive representative and the employer have 
 24.25  participated in mediation over a period of at least 45 days, 
 24.26  provided that the mediation period established by section 
 24.27  179A.17, subdivision 2, governs negotiations under that section, 
 24.28  and provided that for the purposes of this subclause the 
 24.29  mediation period commences on the day following receipt by the 
 24.30  commissioner of a request for mediation; or 
 24.31     (2) the employer violates section 179A.13, subdivision 2, 
 24.32  clause (9); or 
 24.33     (3) in the case of city attorney legal units, neither the 
 24.34  exclusive representative nor the employer has petitioned for 
 24.35  binding interest arbitration in accordance with section 179A.16; 
 24.36  or 
 25.1      (4) in the case of state employees,: 
 25.2      (a) the legislative commission on employee relations has 
 25.3   rejected a negotiated agreement or arbitration decision during a 
 25.4   legislative interim; or 
 25.5      (b) the entire legislature rejects or fails to ratify a 
 25.6   negotiated agreement or arbitration decision, which has been 
 25.7   approved during a legislative interim by the legislative 
 25.8   commission on employee relations, at a special legislative 
 25.9   session called to consider it, or at its next regular 
 25.10  legislative session, whichever occurs first. 
 25.11     Sec. 34.  [181.636] [EMPLOYEE NOTICE OF RIGHTS; FOREIGN 
 25.12  LANGUAGES.] 
 25.13     Subdivision 1.  [EMPLOYER DEFINED.] For the purposes of 
 25.14  this section, "employer" means any person employing one or more 
 25.15  employees. 
 25.16     Subd. 2.  [DISCLOSURE FORM.] The commissioner of labor and 
 25.17  industry shall provide a single brochure for use in making the 
 25.18  disclosure required in subdivision 3.  The single form must 
 25.19  contain the disclosure in English and in ten other languages 
 25.20  that the commissioner determines are the most commonly spoken as 
 25.21  the dominant language by Minnesota employees. 
 25.22     Subd. 3.  [EMPLOYEE RIGHTS NOTICE.] An employer shall 
 25.23  provide a brochure provided by the department of labor and 
 25.24  industry within ten days of the first day of work that notifies 
 25.25  the job offeree that: 
 25.26     (1) there are state and federal laws that regulate minimum 
 25.27  wages and maximum hours of work; prohibit unsafe working 
 25.28  conditions and discrimination; prohibit employers from making 
 25.29  false statements in order to induce someone into employment; and 
 25.30  require the terms and conditions of employment be provided in 
 25.31  writing to migrant farm workers and persons employed in the food 
 25.32  processing industry; and 
 25.33     (2) the employee may call the department of labor and 
 25.34  industry and the department of human rights at a telephone 
 25.35  number indicated on the brochure to learn about those laws and 
 25.36  the employee's rights. 
 26.1      Subd. 4.  [PENALTY.] The department of labor and industry 
 26.2   shall warn an employer for the employer's first violation of 
 26.3   this section and impose a penalty of up to $200 for each 
 26.4   subsequent violation.  If the commissioner determines that an 
 26.5   employer has engaged in a pattern of willful violation of this 
 26.6   section, the commissioner may impose a penalty of up to $500 for 
 26.7   each subsequent violation. 
 26.8      Sec. 35.  Minnesota Statutes 1996, section 181.64, is 
 26.9   amended to read: 
 26.10     181.64 [FALSE STATEMENTS AS INDUCEMENT TO ENTERING 
 26.11  EMPLOYMENT.] 
 26.12     It shall be unlawful for any person, partnership, company, 
 26.13  corporation, association, or organization of any kind, doing 
 26.14  business in this state, directly or through any agent or 
 26.15  attorney, to induce, influence, persuade, or engage any person 
 26.16  to change from one place to another in this state, or to change 
 26.17  from any place in any state, territory, or country to any place 
 26.18  in this state, to work in any branch of labor through or by 
 26.19  means of knowingly false representations, whether spoken, 
 26.20  written, or advertised in printed form, concerning the kind or 
 26.21  character of such work, the compensation therefor, the sanitary 
 26.22  conditions relating to or surrounding it, or failure to state in 
 26.23  any advertisement, proposal, or contract for the employment that 
 26.24  there is a strike or lockout at the place of the proposed 
 26.25  employment, when in fact such strike or lockout then actually 
 26.26  exists in such employment at such place.  Any such unlawful acts 
 26.27  shall be deemed a false advertisement or misrepresentation for 
 26.28  the purposes of this section and section 181.65.  
 26.29     Sec. 36.  Minnesota Statutes 1996, section 216B.2423, 
 26.30  subdivision 1, is amended to read: 
 26.31     Subdivision 1.  [MANDATE.] A public utility, as defined in 
 26.32  section 216B.02, subdivision 4, that operates a nuclear-powered 
 26.33  electric generating plant within this state must construct and 
 26.34  operate, purchase, or contract to construct and operate:  (1) 
 26.35  225 megawatts of electric energy installed capacity generated by 
 26.36  wind energy conversion systems within the state by December 31, 
 27.1   1998; and (2) an additional 200 megawatts of installed capacity 
 27.2   so generated within the state by December 31, 2002. 
 27.3      For the purpose of this section, "wind energy conversion 
 27.4   system" has the meaning given it in section 216C.06, subdivision 
 27.5   12. 
 27.6      Sec. 37.  Minnesota Statutes 1996, section 326.87, 
 27.7   subdivision 2, is amended to read: 
 27.8      Subd. 2.  [HOURS.] A qualifying person of a licensee must 
 27.9   provide proof of completion of seven eight hours of continuing 
 27.10  education per year.  At least three hours of continuing 
 27.11  education per year must relate to requirements of the state 
 27.12  energy code.  To the extent the commissioner considers it 
 27.13  appropriate, courses or parts of courses may be considered to 
 27.14  satisfy both continuing education requirements under this 
 27.15  section and continuing real estate education requirements. 
 27.16     Sec. 38.  Minnesota Statutes 1996, section 326.975, 
 27.17  subdivision 1, is amended to read: 
 27.18     Subdivision 1.  [GENERALLY.] (a) In addition to any other 
 27.19  fees, each applicant for a license under sections 326.83 to 
 27.20  326.98 shall pay a fee to the contractor's recovery fund.  The 
 27.21  contractor's recovery fund is created in the state treasury and 
 27.22  must be administered by the commissioner in the manner and 
 27.23  subject to all the requirements and limitations provided by 
 27.24  section 82.34 with the following exceptions: 
 27.25     (1) each licensee who renews a license shall pay in 
 27.26  addition to the appropriate renewal fee an additional fee which 
 27.27  shall be credited to the contractor's recovery fund.  The amount 
 27.28  of the fee shall be based on the licensee's gross annual 
 27.29  receipts for the licensee's most recent fiscal year preceding 
 27.30  the renewal, on the following scale: 
 27.31            Fee            Gross Receipts
 27.32            $100           under $1,000,000
 27.33            $150           $1,000,000 to $5,000,000
 27.34            $200           over $5,000,000
 27.35  Any person who receives a new license shall pay a fee based on 
 27.36  the same scale; 
 28.1      (2) the sole purpose of this fund is to compensate any 
 28.2   aggrieved owner or lessee of residential property who obtains a 
 28.3   final judgment in any court of competent jurisdiction against a 
 28.4   licensee licensed under section 326.84, on grounds of 
 28.5   fraudulent, deceptive, or dishonest practices, conversion of 
 28.6   funds, or failure of performance or breach of warranty arising 
 28.7   directly out of any transaction when the judgment debtor was 
 28.8   licensed and performed any of the activities enumerated under 
 28.9   section 326.83, subdivision 19, on the owner's residential 
 28.10  property or on residential property rented by the lessee, or on 
 28.11  new residential construction which was never occupied prior to 
 28.12  purchase by the owner, or which was occupied by the licensee for 
 28.13  less than one year prior to purchase by the owner, and which 
 28.14  cause of action arose on or after April 1, 1994; 
 28.15     (3) nothing may obligate the fund for more than $50,000 per 
 28.16  claimant, nor more than $50,000 per licensee; and 
 28.17     (4) nothing may obligate the fund for claims based on a 
 28.18  cause of action that arose before the licensee paid the recovery 
 28.19  fund fee set in clause (1), or as provided in section 326.945, 
 28.20  subdivision 3; and 
 28.21     (5) appropriations from this fund may be made for expenses 
 28.22  of providing information to consumers on residential 
 28.23  construction issues.  
 28.24     (b) Should the commissioner pay from the contractor's 
 28.25  recovery fund any amount in settlement of a claim or toward 
 28.26  satisfaction of a judgment against a licensee, the license shall 
 28.27  be automatically suspended upon the effective date of an order 
 28.28  by the court authorizing payment from the fund.  No licensee 
 28.29  shall be granted reinstatement until the licensee has repaid in 
 28.30  full, plus interest at the rate of 12 percent a year, twice the 
 28.31  amount paid from the fund on the licensee's account, and has 
 28.32  obtained a surety bond issued by an insurer authorized to 
 28.33  transact business in this state in the amount of at least 
 28.34  $40,000 $50,000.  
 28.35     Sec. 39.  Minnesota Statutes 1996, section 327A.01, 
 28.36  subdivision 2, is amended to read: 
 29.1      Subd. 2.  [BUILDING STANDARDS.] "Building standards" means 
 29.2   the structural, mechanical, electrical, and quality standards of 
 29.3   the home building industry for the geographic area in which the 
 29.4   dwelling is situated.  For those geographic areas where the 
 29.5   state building code adopted by the commissioner of 
 29.6   administration according to sections 16B.59 to 16B.75 is in 
 29.7   effect, "building standards" shall be no less rigorous than the 
 29.8   state building code. 
 29.9      Sec. 40.  Minnesota Statutes 1996, section 327A.01, 
 29.10  subdivision 5, is amended to read: 
 29.11     Subd. 5.  [MAJOR CONSTRUCTION DEFECT.] "Major construction 
 29.12  defect" means actual damage to the load-bearing portion of the 
 29.13  dwelling or the home improvement, including damage due to 
 29.14  subsidence, expansion or lateral movement of the soil, which 
 29.15  affects the load-bearing function and which vitally 
 29.16  substantially affects or is imminently likely to vitally 
 29.17  substantially affect use of the dwelling or the home improvement 
 29.18  for residential purposes.  "Major construction defect" does not 
 29.19  include damage due to movement of the soil caused by flood, 
 29.20  earthquake or other natural disaster. 
 29.21     Sec. 41.  Minnesota Statutes 1996, section 327A.02, 
 29.22  subdivision 1, is amended to read: 
 29.23     Subdivision 1.  [WARRANTIES BY VENDORS.] (a) In every sale 
 29.24  of a completed dwelling, and in every contract for the sale of a 
 29.25  dwelling to be completed, the vendor shall warrant to the vendee 
 29.26  that: 
 29.27     (a) (1) during the one-year period from and after the 
 29.28  warranty date the dwelling shall be free from defects caused by 
 29.29  faulty workmanship and defective materials due to noncompliance 
 29.30  with building standards; 
 29.31     (b) (2) during the two-year three-year period from and 
 29.32  after the warranty date, the dwelling shall be free from defects 
 29.33  caused by faulty workmanship and defective materials caused by 
 29.34  noncompliance with building standards relating to the 
 29.35  installation of plumbing, electrical, heating, and cooling 
 29.36  systems; and 
 30.1      (c) (3) during the ten-year period from and after the 
 30.2   warranty date, the dwelling shall be free from major 
 30.3   construction defects. 
 30.4      (b) The warranties provided by this chapter are transferred 
 30.5   automatically with conveyance of the property and benefit the 
 30.6   initial vendee and all future vendees. 
 30.7      Sec. 42.  Minnesota Statutes 1996, section 327A.02, 
 30.8   subdivision 3, is amended to read: 
 30.9      Subd. 3.  [HOME IMPROVEMENT WARRANTIES.] (a) In a sale or 
 30.10  in a contract for the sale of home improvement work involving 
 30.11  major structural changes or additions to a residential building, 
 30.12  the home improvement contractor shall warrant to the owner that: 
 30.13     (1) during the one-year period from and after the warranty 
 30.14  date the home improvement shall be free from defects caused by 
 30.15  faulty workmanship and defective materials due to noncompliance 
 30.16  with building standards; and 
 30.17     (2) during the ten-year period from and after the warranty 
 30.18  date the home improvement shall be free from major construction 
 30.19  defects.  
 30.20     (b) In a sale or in a contract for the sale of home 
 30.21  improvement work involving the installation of plumbing, 
 30.22  electrical, heating or cooling systems, the home improvement 
 30.23  contractor shall warrant to the owner that, during the two-year 
 30.24  three-year period from and after the warranty date, the home 
 30.25  improvement shall be free from defects caused by the faulty 
 30.26  workmanship and defective materials caused by noncompliance with 
 30.27  building standards relating to the installation of the system or 
 30.28  systems.  
 30.29     (c) In a sale or in a contract for the sale of any home 
 30.30  improvement work not covered by paragraph (a) or (b), the home 
 30.31  improvement contractor shall warrant to the owner that, during 
 30.32  the one-year two-year period from and after the warranty date, 
 30.33  the home improvement shall be free from defects caused by faulty 
 30.34  workmanship or defective materials due to noncompliance with 
 30.35  building standards.  
 30.36     Sec. 43.  Minnesota Statutes 1996, section 327A.03, is 
 31.1   amended to read: 
 31.2      327A.03 [EXCLUSIONS.] 
 31.3      The liability of the vendor or the home improvement 
 31.4   contractor under sections 327A.01 to 327A.07 is limited to the 
 31.5   specific items set forth in sections 327A.01 to 327A.07 and does 
 31.6   not extend to the following: 
 31.7      (a) Loss or damage not reported by the vendee or the owner 
 31.8   to the vendor or the home improvement contractor in writing 
 31.9   within six months two years after the vendee or the owner 
 31.10  discovers or should have discovered the loss or damage; 
 31.11     (b) Loss or damage caused by defects in design, 
 31.12  installation, or materials which the vendee or the owner 
 31.13  supplied, installed, or directed to be installed; 
 31.14     (c) Secondary loss or damage such as personal injury or 
 31.15  property damage; 
 31.16     (d) Loss or damage from normal wear and tear; 
 31.17     (e) Loss or damage from normal shrinkage caused by drying 
 31.18  of the dwelling or the home improvement within tolerances of 
 31.19  building standards; 
 31.20     (f) Loss or damage from dampness and condensation due to 
 31.21  insufficient ventilation after occupancy, when the inadequate 
 31.22  ventilation is attributable to conditions resulting from 
 31.23  compliance with requirements of the state energy code in effect 
 31.24  at the time of construction; 
 31.25     (g) Loss or damage from negligence, improper maintenance or 
 31.26  alteration of the dwelling or the home improvement by parties 
 31.27  other than the vendor or the home improvement contractor; 
 31.28     (h) Loss or damage from changes in grading of the ground 
 31.29  around the dwelling or the home improvement by parties other 
 31.30  than the vendor or the home improvement contractor; 
 31.31     (i) Landscaping or insect loss or damage; 
 31.32     (j) Loss or damage from failure to maintain the dwelling or 
 31.33  the home improvement in good repair; 
 31.34     (k)  Loss or damage which the vendee or the owner, whenever 
 31.35  feasible, has not taken timely action to minimize; 
 31.36     (l)  Loss or damage which occurs after the dwelling or the 
 32.1   home improvement is no longer used primarily as a residence; 
 32.2      (m)  Accidental loss or damage usually described as acts of 
 32.3   God, including, but not limited to:  fire, explosion, smoke, 
 32.4   water escape, windstorm, hail or lightning, falling trees, 
 32.5   aircraft and vehicles, flood, and earthquake, except when the 
 32.6   loss or damage is caused by failure to comply with building 
 32.7   standards; 
 32.8      (n)  Loss or damage from soil movement which is compensated 
 32.9   by legislation or covered by insurance; 
 32.10     (o)  Loss or damage due to soil conditions where 
 32.11  construction is done upon lands owned by the vendee or the owner 
 32.12  and obtained by the vendee or owner from a source independent of 
 32.13  the vendor or the home improvement contractor; 
 32.14     (p)  In the case of home improvement work, loss or damage 
 32.15  due to defects in the existing structure and systems not caused 
 32.16  by the home improvement.  
 32.17     Sec. 44.  [327A.035] [WARRANTY INFORMATION.] 
 32.18     A vendor or home improvement contractor must, prior to 
 32.19  entering into a contract covered by this chapter for the sale of 
 32.20  a dwelling or of home improvement work, provide the vendee or 
 32.21  owner with a copy of sections 327A.02 and 327A.03. 
 32.22     Sec. 45.  Minnesota Statutes 1996, section 332.31, 
 32.23  subdivision 3, is amended to read: 
 32.24     Subd. 3.  [COLLECTION AGENCY.] "Collection agency" means 
 32.25  and includes any person engaged in the business of collection 
 32.26  for others a Minnesota creditor of any account, bill or other 
 32.27  indebtedness except as hereinafter provided.  It includes 
 32.28  persons who furnish collection systems carrying a name which 
 32.29  simulates the name of a collection agency and who supply forms 
 32.30  or form letters to be used by the creditor, even though such 
 32.31  forms direct the debtor to make payments directly to the 
 32.32  creditor rather than to such fictitious agency.  
 32.33     Sec. 46.  Minnesota Statutes 1996, section 332.31, 
 32.34  subdivision 6, is amended to read: 
 32.35     Subd. 6.  [COLLECTOR.] "Collector" is a person acting under 
 32.36  the authority of a collection agency under subdivision 3, and on 
 33.1   its behalf in the business of collection for others an Minnesota 
 33.2   creditors of any account, bill, or other indebtedness except as 
 33.3   otherwise provided in this chapter. 
 33.4      Sec. 47.  Minnesota Statutes 1996, section 332.31, is 
 33.5   amended by adding a subdivision to read: 
 33.6      Subd. 7.  [OUT-OF-STATE COLLECTION AGENCY.] No person shall 
 33.7   be considered to be engaged in the business of collection for 
 33.8   others of any account, bill, or other indebtedness if:  (1) that 
 33.9   person is regulated as a collection agency under the laws of 
 33.10  another state and that person's activities within this state are 
 33.11  limited to collecting debts for out-of-state creditors from 
 33.12  debtors residing in this state by means of interstate 
 33.13  communications, including telephone, mail, or facsimile 
 33.14  transmission, from the person's location in another state; and 
 33.15  (2) that person discloses to the debtor in each communication 
 33.16  the state in which the person is regulated and engages in the 
 33.17  business of collecting debts.  However, if the communication by 
 33.18  an out-of-state collection agency is contrary to section 332.37, 
 33.19  or does not include the disclosure required in clause (2), the 
 33.20  collection agency is subject to the jurisdiction of this state 
 33.21  under section 45.027 with respect to the communication. 
 33.22     Sec. 48.  Minnesota Statutes 1996, section 383B.79, 
 33.23  subdivision 1, is amended to read: 
 33.24     Subdivision 1.  [PROGRAM CREATED.] A multijurisdictional 
 33.25  reinvestment program involving Hennepin county, the cities of 
 33.26  Minneapolis, Brooklyn Center, and other interested statutory or 
 33.27  home rule charter cities in Hennepin county, the Minneapolis 
 33.28  park board, and the suburban Hennepin county park district is 
 33.29  created.  The multijurisdictional program must include plans for 
 33.30  housing rehabilitation and removals, industrial polluted land 
 33.31  cleanup, water ponding, environmental cleanup, community 
 33.32  corridor connections, corridor planning, creation of green 
 33.33  space, acquisition of property, development and redevelopment of 
 33.34  parks and open space, water quality and lakeshore improvement, 
 33.35  development and redevelopment of housing and existing commercial 
 33.36  projects, funding and refunding of convention and conference 
 34.1   centers and related facilities, assistance to businesses, and 
 34.2   job creation.  
 34.3      Sec. 49.  Minnesota Statutes 1996, section 383B.79, is 
 34.4   amended by adding a subdivision to read: 
 34.5      Subd. 6.  [ADMINISTRATION.] The board of county 
 34.6   commissioners shall administer the program and funds and bond 
 34.7   for projects in this section either as a county board, a housing 
 34.8   and redevelopment authority, or a regional rail authority.  The 
 34.9   board of county commissioners may acquire property in connection 
 34.10  with the project known as the Humboldt Avenue Greenway from any 
 34.11  funds under its control. 
 34.12     Sec. 50.  Minnesota Statutes 1997 Supplement, section 
 34.13  414.11, is amended to read: 
 34.14     414.11 [MUNICIPAL BOARD SUNSET.] 
 34.15     The municipal board shall terminate on December 31, 1999 
 34.16  2002, and all of its authority and duties under this chapter 
 34.17  shall be transferred to the office of strategic and long-range 
 34.18  planning according to section 15.039. 
 34.19     Sec. 51.  Minnesota Statutes 1996, section 446A.072, 
 34.20  subdivision 2, is amended to read: 
 34.21     Subd. 2.  [TYPE OF SUPPLEMENTAL ASSISTANCE.] Supplemental 
 34.22  assistance shall be in the form of zero percent loans, with loan 
 34.23  repayments beginning February 20 or August 20 following the 
 34.24  scheduled date of the project obtaining grants.  If one year 
 34.25  after the initiation of operation of the project, the project 
 34.26  does not meet the operational performance standards established 
 34.27  by the agency, the grant must be repaid.  Upon receipt of notice 
 34.28  from the agency that the project operational performance 
 34.29  standards have been met, the authority will forgive the 
 34.30  scheduled loan repayments made under this section.  If not 
 34.31  forgiven, loan Grant repayments shall be deferred upon request 
 34.32  from the commissioner of the agency for six-month periods, 
 34.33  provided the commissioner has determined that satisfactory 
 34.34  progress is being made to achieve project performance or is 
 34.35  developing or implementing a corrective action plan. 
 34.36     Sec. 52.  Minnesota Statutes 1996, section 446A.072, 
 35.1   subdivision 4, is amended to read: 
 35.2      Subd. 4.  [FUNDING LEVEL.] (a) The authority shall provide 
 35.3   supplemental assistance for essential project component costs as 
 35.4   certified by the commissioner of the pollution control agency 
 35.5   under section 116.182, subdivision 4.  
 35.6      (b) A municipality may not receive more than $4,000,000 
 35.7   under this section unless specifically approved by law. 
 35.8      (c) The authority will calculate the grant amount needed 
 35.9   for the essential project component costs by first determining 
 35.10  the amount needed to reduce a municipality's monthly residential 
 35.11  sewer service charge to $25 or to an annual residential sewer 
 35.12  service charge in excess of 1.5 percent of the municipality's 
 35.13  median household income, whichever is less, and then multiplying 
 35.14  that amount by 80 percent to determine the actual award amount 
 35.15  to supplement loans under section 446A.07 or provide up to 
 35.16  one-third of the amount of the grant funding level required by 
 35.17  USDA/RECD for projects listed on the agency's intended use plan. 
 35.18     (d) The authority shall provide supplemental assistance for 
 35.19  up to one-half of the eligible grant funding level determined by 
 35.20  the United States Department of Agriculture Rural Development 
 35.21  funding for projects listed on the agency's project priority 
 35.22  list, in priority order.  For municipalities that are not 
 35.23  eligible for United State Department of Agriculture Rural 
 35.24  Development funding for wastewater, the authority shall provide 
 35.25  supplemental assistance for: (1) essential project component 
 35.26  costs calculated by first determining the amount needed to 
 35.27  reduce a municipality's annual residential sewer costs to 1.4 
 35.28  percent of the municipality's median household income or $25, 
 35.29  whichever is greater, and then multiplying that amount by 80 
 35.30  percent to determine the actual award amount to supplement loans 
 35.31  under section 446A.07; and (2) up to 50 percent of the 
 35.32  incremental costs specifically identified by the agency as being 
 35.33  attributable to more stringent wastewater standards required to 
 35.34  protect outstanding resource value waters or outstanding 
 35.35  international resource value waters. 
 35.36     (d) Notwithstanding paragraph (b), in the event that a 
 36.1   municipality's monthly residential sewer service charges average 
 36.2   above $50, the authority will provide 90 percent of the grant 
 36.3   amount needed to reduce the average monthly sewer service charge 
 36.4   to $50, provided the project is ranked in the top 50 percentile 
 36.5   of the agency's intended use plan. 
 36.6      (e) Notwithstanding paragraphs (b), (c), and (d), a 
 36.7   municipality with an annual median household income of $40,000 
 36.8   or greater shall not be eligible for a grant, except for 
 36.9   incremental costs specifically identified by the agency as being 
 36.10  attributable to more stringent wastewater standards required to 
 36.11  protect outstanding resource value waters or outstanding 
 36.12  international resource value waters. 
 36.13     (f) The authority shall provide supplemental assistance to 
 36.14  a municipality that would not otherwise qualify for supplemental 
 36.15  assistance if: 
 36.16     (1) the municipality voluntarily accepts a sewer connection 
 36.17  from another governmental unit to serve residential, industrial, 
 36.18  or commercial developments that were completed before March 1, 
 36.19  1996, or are on lots whose plats were recorded before that date; 
 36.20  and 
 36.21     (2) fees charged by the municipality for the connection 
 36.22  must take into account state and federal grants used by the 
 36.23  municipality for the construction of the treatment plant. 
 36.24  The amount of supplemental assistance under this paragraph must 
 36.25  be sufficient to reduce debt service payments under section 
 36.26  446A.07 to an extent equivalent to a zero percent loan in an 
 36.27  amount up to the other governmental unit's project costs 
 36.28  necessary for connection.  Eligibility for supplemental 
 36.29  assistance under this paragraph ends three years after the 
 36.30  agency certifies that the connection has met the operational 
 36.31  performance standards established by the agency. 
 36.32     Sec. 53.  Minnesota Statutes 1996, section 469.303, is 
 36.33  amended to read: 
 36.34     469.303 [ELIGIBILITY REQUIREMENTS.] 
 36.35     An area within the city is eligible for designation as an 
 36.36  enterprise zone if the area (1) includes census tracts eligible 
 37.1   for a federal empowerment zone or enterprise community as 
 37.2   defined by the United States Department of Housing and Urban 
 37.3   Development under Public Law Number 103-66, notwithstanding the 
 37.4   maximum zone population standard under the federal empowerment 
 37.5   zone program for cities with a population under 500,000 or, (2) 
 37.6   is an area within a city of the second class that is designated 
 37.7   as an economically depressed area by the United States 
 37.8   Department of Commerce, or (3) includes property located in St. 
 37.9   Paul in a transit zone as defined in section 473.3915, 
 37.10  subdivision 3. 
 37.11     Sec. 54.  Minnesota Statutes 1996, section 541.051, 
 37.12  subdivision 1, is amended to read: 
 37.13     Subdivision 1.  (a) Except where fraud is involved, no 
 37.14  action by any person in contract, tort, or otherwise to recover 
 37.15  damages for any injury to property, real or personal, or for 
 37.16  bodily injury or wrongful death, arising out of the defective 
 37.17  and unsafe condition of an improvement to real property, nor any 
 37.18  action for contribution or indemnity for damages sustained on 
 37.19  account of the injury, shall be brought against any person 
 37.20  performing or furnishing the design, planning, supervision, 
 37.21  materials, or observation of construction or construction of the 
 37.22  improvement to real property or against the owner of the real 
 37.23  property more than two three years after discovery of the injury 
 37.24  or, in the case of an action for contribution or indemnity, 
 37.25  accrual of the cause of action, nor, in any event shall such a 
 37.26  cause of action accrue more than ten years after substantial 
 37.27  completion of the construction.  Date of substantial completion 
 37.28  shall be determined by the date when construction is 
 37.29  sufficiently completed so that the owner or the owner's 
 37.30  representative can occupy or use the improvement for the 
 37.31  intended purpose.  
 37.32     (b) For purposes of paragraph (a), a cause of action 
 37.33  accrues upon discovery of the injury or, in the case of an 
 37.34  action for contribution or indemnity, upon payment of a final 
 37.35  judgment, arbitration award, or settlement arising out of the 
 37.36  defective and unsafe condition. 
 38.1      (c) Nothing in this section shall apply to actions for 
 38.2   damages resulting from negligence in the maintenance, operation 
 38.3   or inspection of the real property improvement against the owner 
 38.4   or other person in possession. 
 38.5      (d) The limitations prescribed in this section do not apply 
 38.6   to the manufacturer or supplier of any equipment or machinery 
 38.7   installed upon real property. 
 38.8      Sec. 55.  Minnesota Statutes 1996, section 541.051, 
 38.9   subdivision 4, is amended to read: 
 38.10     Subd. 4.  This section shall not apply to actions based on 
 38.11  breach of the statutory warranties set forth in section 327A.02, 
 38.12  or to actions based on breach of an express written warranty, 
 38.13  provided such actions shall be brought within two three years of 
 38.14  the discovery of the breach. 
 38.15     Sec. 56.  Laws 1997, chapter 200, article 1, section 2, 
 38.16  subdivision 2, is amended to read: 
 38.17  Subd. 2.  Business and Community 
 38.18  Development
 38.19      35,963,000     20,977,000
 38.20  $7,017,000 the first year and 
 38.21  $6,017,000 the second year is for 
 38.22  Minnesota investment fund grants.  Of 
 38.23  this appropriation, $3,000,000 the 
 38.24  first year and $2,000,000 the second 
 38.25  year are one-time appropriations and 
 38.26  may not be added to the budget base for 
 38.27  the biennium ending June 30, 2001.  Of 
 38.28  this one-time appropriation $1,000,000 
 38.29  the first year is for a single grant 
 38.30  recipient, to be identified by the 
 38.31  commissioner, notwithstanding the 
 38.32  monetary limitation under Minnesota 
 38.33  Statutes, section 116J.8731, 
 38.34  subdivision 5.  This amount may not be 
 38.35  added to the agency's budget base.  
 38.36  This amount is available until June 30, 
 38.37  1999. 
 38.38  $450,000 the first year and $450,000 
 38.39  the second year is for grants to 
 38.40  Advantage Minnesota, Inc.  The funds 
 38.41  are available only if matched on at 
 38.42  least a dollar-for-dollar basis from 
 38.43  other sources.  The commissioner may 
 38.44  release the funds only upon: 
 38.45  (1) certification that matching funds 
 38.46  from each participating organization 
 38.47  are available; and 
 38.48  (2) review and approval by the 
 38.49  commissioner of the proposed operations 
 38.50  plan of Advantage Minnesota, Inc. for 
 39.1   the biennium. 
 39.2   $7,418,000 the first year and 
 39.3   $7,918,000 the second year is for the 
 39.4   job skills partnership program.  If the 
 39.5   appropriation for either year is 
 39.6   insufficient, the appropriation for the 
 39.7   other year is available.  This 
 39.8   appropriation does not cancel.  Of this 
 39.9   amount, $1,500,000 the first year and 
 39.10  $2,000,000 the second year is for the 
 39.11  Pathways program under Minnesota 
 39.12  Statutes, section 116L.04, subdivision 
 39.13  1a. 
 39.14  $250,000 the first year is for a grant 
 39.15  from the department of trade and 
 39.16  economic development to the Software 
 39.17  Technology Center to broaden 
 39.18  industry-related educational and 
 39.19  technological services.  This 
 39.20  appropriation is available upon 
 39.21  documentation of a dollar-for-dollar 
 39.22  match from other sources since the 
 39.23  inception of the Software Technology 
 39.24  Center.  This is a one-time 
 39.25  appropriation and must not be included 
 39.26  in the budget base for the biennium 
 39.27  ending June 30, 2001. 
 39.28  $100,000 the first year is for a 
 39.29  one-time grant to the Duluth Technology 
 39.30  Center.  This appropriation is 
 39.31  available until June 30, 1999. 
 39.32  $25,000 the first year is for a 
 39.33  one-time grant to the city of New 
 39.34  London for improvements to the Little 
 39.35  Theatre.  This appropriation is 
 39.36  available when the city matches the 
 39.37  appropriation with $25,000 from 
 39.38  nonstate sources. 
 39.39  $750,000 the first year is for one or 
 39.40  more grants to the Minnesota Futures 
 39.41  Fund administered by the Minneapolis 
 39.42  Foundation.  The Minneapolis Foundation 
 39.43  shall use these grants to provide 
 39.44  technical assistance grants to 
 39.45  nonprofit organizations to assist them 
 39.46  in redesigning services and 
 39.47  organizational structures in response 
 39.48  to changes in federal and state welfare 
 39.49  policy.  The commissioner shall make 
 39.50  the grants in amounts necessary to 
 39.51  match nonpublic contributions to the 
 39.52  fund on a dollar-for-dollar basis.  
 39.53  This appropriation is available until 
 39.54  June 30, 1999.  This is a one-time 
 39.55  appropriation and may not be included 
 39.56  in the budget base for the biennium 
 39.57  ending June 30, 2001. 
 39.58  $35,000 the first year is for a 
 39.59  one-time appropriation to the Fairfax 
 39.60  economic development authority for roof 
 39.61  replacement.  This appropriation is 
 39.62  available until June 30, 1999. 
 39.63  $2,000,000 the first year is for a 
 39.64  one-time grant to the city of Brooklyn 
 40.1   Center to redevelop the Brookdale 
 40.2   regional center and provide 
 40.3   opportunities for economic development 
 40.4   at or near the center.  The grant must 
 40.5   be used to assist the city in 
 40.6   constructing a series of storm water 
 40.7   retention ponds that will facilitate 
 40.8   the redevelopment and economic 
 40.9   development of the center and nearby 
 40.10  property.  The grant must be on terms 
 40.11  and conditions determined by the 
 40.12  commissioner.  The grant must be 
 40.13  matched by city resources that equal at 
 40.14  least 25 percent of the grant. 
 40.15  $650,000 the first year is for the 
 40.16  taconite mining grant program under 
 40.17  Minnesota Statutes, section 116J.992.  
 40.18  This appropriation is available until 
 40.19  June 30, 1999.  This is a one-time 
 40.20  appropriation and may not be included 
 40.21  in the budget base for the biennium 
 40.22  ending June 30, 2001. 
 40.23  $95,000 the first year and $95,000 the 
 40.24  second year is for grants to county and 
 40.25  district agricultural societies and 
 40.26  associations that are eligible to 
 40.27  receive aid under Minnesota Statutes, 
 40.28  section 38.02.  The commissioner shall 
 40.29  spend this appropriation as grants of 
 40.30  $1,000 for each fair conducted by such 
 40.31  a county and district agricultural 
 40.32  society and association in each year. 
 40.33  $3,000,000 the first year is for a 
 40.34  grant to develop a direct reduction 
 40.35  iron-processing facility in Minnesota.  
 40.36  This appropriation is available until 
 40.37  June 30, 1999.  This is a one-time 
 40.38  appropriation and may not be included 
 40.39  in the budget base for the biennium 
 40.40  ending June 30, 2001. 
 40.41  $500,000 the first year is for 
 40.42  technical assistance under Minnesota 
 40.43  Statutes, section 116J.8745.  This 
 40.44  appropriation is available until June 
 40.45  30, 1999. 
 40.46  $4,444,000 the first year is for state 
 40.47  matching money for federal grants to 
 40.48  capitalize the drinking water revolving 
 40.49  loan fund under Minnesota Statutes, 
 40.50  section 446A.081.  The expenditure is 
 40.51  limited to the minimum amount necessary 
 40.52  to match the allotment of federal money 
 40.53  to Minnesota.  This is a one-time 
 40.54  appropriation and must not be included 
 40.55  in the budget base for the biennium 
 40.56  ending June 30, 2001. 
 40.57  $25,000 the first year is for a 
 40.58  one-time grant to the city of St. Paul 
 40.59  to improve, beautify, and enhance 
 40.60  marked trunk highway No. 5 from 
 40.61  Minneapolis-St.Paul international 
 40.62  airport to interstate highway No. 
 40.63  35-E.  Enhancements may include, among 
 40.64  other things, landscaping, historical 
 40.65  lighting, and signing. 
 41.1   $100,000 the first year is for a 
 41.2   one-time grant to the city of Grey 
 41.3   Eagle for construction of a wastewater 
 41.4   treatment plant. 
 41.5   $526,000 the first year and $537,000 
 41.6   the second year is from fees collected 
 41.7   under Minnesota Statutes, section 
 41.8   446A.04, subdivision 5, to administer 
 41.9   the programs of the public facilities 
 41.10  authority. 
 41.11  $125,000 the first year is for a 
 41.12  one-time demonstration project grant to 
 41.13  the city of Newport for the city to 
 41.14  conduct a study of the economic impact 
 41.15  on the city resulting from regional 
 41.16  infrastructure improvement projects.  
 41.17  The city may retain consultants and 
 41.18  enter into contracts it considers 
 41.19  desirable to conduct the study.  The 
 41.20  elements of the study must include an 
 41.21  alternate economic use study, a fiscal 
 41.22  impact study, an infrastructure impact 
 41.23  study, and a traffic impact study.  The 
 41.24  grant is available only to the extent 
 41.25  that the city provides in-kind 
 41.26  resources or money, raised or 
 41.27  contributed during a period beginning 
 41.28  January 1, 1993, that provides a 
 41.29  one-to-one match of the grant. 
 41.30  $100,000 the first year is for a grant 
 41.31  to the Minnesota Organization for 
 41.32  Global Professional Assignments, an 
 41.33  independent, nonprofit corporation, for 
 41.34  a program that creates opportunities 
 41.35  for the international professional 
 41.36  development of Minnesota college 
 41.37  graduates and Minnesota college seniors 
 41.38  interested in pursuing careers with 
 41.39  multinational businesses.  This is a 
 41.40  one-time appropriation.  The 
 41.41  appropriation is available for the 
 41.42  fiscal year ending June 30, 1998. 
 41.43  $100,000 the first year and $100,000 
 41.44  the second year is for one-time grants 
 41.45  to the city of New Brighton, as project 
 41.46  coordinator and fiscal agent of the 
 41.47  seven-city coalition, for the 
 41.48  multicommunity business retention and 
 41.49  market expansion project and related 
 41.50  planning efforts linking geographical 
 41.51  information systems, contaminated land 
 41.52  remediation, land use planning, 
 41.53  transportation corridor study, 
 41.54  integration of existing housing stock, 
 41.55  subregional transit and reverse commute 
 41.56  coordination, employment densities, job 
 41.57  training and welfare reform placement 
 41.58  coordination, and commercial and 
 41.59  industrial development.  The coalition 
 41.60  shall share all results and written 
 41.61  reports with the department of trade 
 41.62  and economic development. 
 41.63  $2,000,000 the first year is for 
 41.64  transfer to the rural policy and 
 41.65  development center fund.  This 
 41.66  appropriation does not cancel.  This is 
 42.1   a one-time appropriation and may not be 
 42.2   included in the agency's budget base 
 42.3   for the biennium ending June 30, 2001. 
 42.4   $250,000 the first year and $250,000 
 42.5   the second year is for grants to the 
 42.6   board of the rural policy and 
 42.7   development center for operation of the 
 42.8   center. 
 42.9   $130,000 the first year and $155,000 
 42.10  the second year is for grants to the 
 42.11  metropolitan economic development 
 42.12  association. 
 42.13  $240,000 the first year and $265,000 
 42.14  the second year is for grants to 
 42.15  WomenVenture. 
 42.16  WomenVenture and the metropolitan 
 42.17  economic development association must, 
 42.18  in the first year, develop contacts and 
 42.19  relationships with the regional 
 42.20  initiatives selected under Minnesota 
 42.21  Statutes, section 116J.415, subdivision 
 42.22  3, and a plan to deliver their services 
 42.23  statewide.  In the second year, they 
 42.24  must generally offer their services 
 42.25  statewide. 
 42.26  $500,000 the first year and $500,000 
 42.27  the second year is for grants to the 
 42.28  St. Paul rehabilitation center for its 
 42.29  current programs, including those 
 42.30  related to developing job-seeking 
 42.31  skills and workplace orientation, 
 42.32  intensive job development, functional 
 42.33  work English, and on-site job coaching. 
 42.34  $250,000 in the first year is for a 
 42.35  one-time grant to the Morrison county 
 42.36  rural development finance authority 
 42.37  established under Laws 1982, chapter 
 42.38  437.  The authority must use the grant 
 42.39  only for capital improvements to a 
 42.40  paper and wood products manufacturer in 
 42.41  the county primarily for the purposes 
 42.42  of facility upgrading and expansion of 
 42.43  the manufacturer's capability to 
 42.44  utilize recycled wastepaper as a fiber 
 42.45  source.  Minnesota Statutes, section 
 42.46  116J.991, applies to the grant. 
 42.47  $200,000 the first year is for an 
 42.48  agreement with the Judy Garland 
 42.49  Children's Museum to assist in the 
 42.50  design and construction of a children's 
 42.51  museum.  This amount must be matched by 
 42.52  at least $1,275,000 from nonstate 
 42.53  sources committed by June 30, 1998.  
 42.54  This is a one-time appropriation and 
 42.55  may not be added to the agency's budget 
 42.56  base in future biennia.  
 42.57  Notwithstanding Minnesota Statutes, 
 42.58  section 116J.8731, or any other law to 
 42.59  the contrary, the commissioner shall, 
 42.60  in the commissioner's considerations on 
 42.61  Minnesota investment fund grants in 
 42.62  fiscal year 1998, strongly consider an 
 42.63  application for a $250,000 grant to the 
 43.1   Morrison county rural development 
 43.2   authority established under Laws 1982, 
 43.3   chapter 437, for capital improvements 
 43.4   to a paper and wood products 
 43.5   manufacturer in Morrison county 
 43.6   primarily for the purposes of facility 
 43.7   upgrading and expansion of the 
 43.8   manufacturer's capability to utilize 
 43.9   recycled wastepaper as a fiber source, 
 43.10  thereby achieving the purpose of job 
 43.11  enhancement, stability, and 
 43.12  preservation.  As part of this 
 43.13  consideration, the commissioner shall 
 43.14  confer with the manufacturer, inspect 
 43.15  the manufacturer's facilities, and 
 43.16  conduct an analysis of the 
 43.17  manufacturer's business plan and its 
 43.18  previous and proposed efforts to 
 43.19  achieve these purposes.  The 
 43.20  commissioner shall strongly consider 
 43.21  approving the grant application unless 
 43.22  the commissioner determines that the 
 43.23  grant will not significantly contribute 
 43.24  to achieving these purposes.  The 
 43.25  commissioner must make a determination 
 43.26  on this application by December 1, 1997.
 43.27  $45,000 the first year is for a 
 43.28  one-time grant to the Upper Minnesota 
 43.29  Valley River regional development 
 43.30  commission for development of design 
 43.31  specifications and architectural plans 
 43.32  for a regional visitors center, to be 
 43.33  built on the upper segment of the 
 43.34  Minnesota river corridor within the 
 43.35  designated scenic byway area and in 
 43.36  conjunction with the development of the 
 43.37  Minnesota river corridor trail.  This 
 43.38  appropriation is available until June 
 43.39  30, 1999. 
 43.40  $100,000 the first year and $100,000 
 43.41  the second year is for grants to create 
 43.42  and operate community development 
 43.43  corporations under Minnesota Statutes, 
 43.44  section 116J.982, that target 
 43.45  Asian-Pacific Minnesotans.  One must be 
 43.46  in Hennepin county and one must be in 
 43.47  Ramsey county. 
 43.48  $80,000 the first year and $80,000 the 
 43.49  second year is for one-time grants to 
 43.50  the greater metropolitan area foreign 
 43.51  trade zone commission for the purpose 
 43.52  of promoting foreign trade zones in 
 43.53  Minnesota. 
 43.54     Sec. 57.  Laws 1997, chapter 200, article 1, section 12, 
 43.55  subdivision 2, is amended to read: 
 43.56  Subd. 2.  Workers' Compensation
 43.57      12,152,000 12,202,000     12,160,000 12,110,000
 43.58  This appropriation is from the workers' 
 43.59  compensation fund. 
 43.60  $125,000 the first year and $125,000 
 43.61  the second year is for grants to the 
 43.62  Vinland Center for rehabilitation 
 44.1   service. 
 44.2   Notwithstanding Minnesota Statutes, 
 44.3   section 79.253, the following 
 44.4   appropriations are made from the 
 44.5   assigned risk safety account in the 
 44.6   special compensation fund to the 
 44.7   commissioner of labor and industry: 
 44.8   (a) $77,000 the first year and $73,000 
 44.9   in the second year are for the purpose 
 44.10  of hiring one occupational safety and 
 44.11  health inspector.  The inspector shall 
 44.12  perform safety consultations for 
 44.13  employers through labor-management 
 44.14  committees as defined in Minnesota 
 44.15  Statutes, section 179.81, subdivision 
 44.16  2, under an interagency agreement 
 44.17  entered into between the commissioners 
 44.18  of labor and industry and mediation 
 44.19  services. 
 44.20  (b) $95,000 the first year and $75,000 
 44.21  the second year are for the purpose of 
 44.22  providing information to employers 
 44.23  regarding the prevention of violence in 
 44.24  the workplace. 
 44.25  (c) $25,000 the first year and $25,000 
 44.26  the second year are for the purpose of 
 44.27  safety training and other safety 
 44.28  programs for youth apprentices. 
 44.29     Sec. 58.  Laws 1997, chapter 200, article 1, section 33, 
 44.30  subdivision 1, is amended to read: 
 44.31     Subdivision 1.  [STUDY.] The commissioners of trade and 
 44.32  economic development, labor and industry, and economic 
 44.33  security The governor's workforce development council shall 
 44.34  conduct a joint study of job-training programs funded wholly or 
 44.35  partly with state funds.  The commissioners The governor's 
 44.36  workforce development council must report to the governor and 
 44.37  legislature on the development of the study by January 15, 1998, 
 44.38  and make a final report on the study by January 15, 1999. 
 44.39     Sec. 59.  Laws 1997, chapter 200, article 1, section 33, is 
 44.40  amended by adding a subdivision to read: 
 44.41     Subd. 4.  [WAGE RATE STUDY.] The governor's workforce 
 44.42  development council must identify for each job-training program 
 44.43  studied: 
 44.44     (1) the number and proportion of placement jobs paying at 
 44.45  least 120 percent of the federal poverty level initially; 
 44.46     (2) the number and proportion of placement jobs paying at 
 44.47  least 150 percent of the federal poverty level initially; 
 45.1      (3) the number and proportion of individuals who were 
 45.2   employed two years after successful program completion; and 
 45.3      (4) the number and proportion of individuals who were 
 45.4   employed five years after successful program completion. 
 45.5      Sec. 60.  Laws 1997, chapter 200, article 1, section 33, is 
 45.6   amended by adding a subdivision to read: 
 45.7      Subd. 5.  [BREAKDOWN OF INFORMATION.] For each program 
 45.8   included in the job-training study, the governor's workforce 
 45.9   development council shall report the information required by 
 45.10  this section for each of the following groups:  men, women, 
 45.11  Blacks, Native Americans, Hispanics, Asians, persons with 
 45.12  disabilities, persons under 25, persons between 25 and 45, 
 45.13  persons over 45, and persons receiving MFIP-S employment and 
 45.14  training and food stamp employment and training (FSET). 
 45.15     Sec. 61.  Laws 1997, chapter 200, article 1, section 33, is 
 45.16  amended by adding a subdivision to read: 
 45.17     Subd. 6.  [COLLECTION OF INFORMATION.] All training 
 45.18  programs being studied by the governor's workforce development 
 45.19  council are to collect demographic information in accordance 
 45.20  with subdivision 5, and are to make available to the Minnesota 
 45.21  department of economic security the social security numbers of 
 45.22  the programs' participants for the purpose of tracking wages and 
 45.23  job retention for two-year and five-year periods following 
 45.24  program completion.  Notwithstanding Minnesota Statutes, section 
 45.25  13.47 or 268.19, the Minnesota department of economic security 
 45.26  shall provide the governor's workforce development council with 
 45.27  the necessary information on the program participants to carry 
 45.28  out this study. 
 45.29     Sec. 62.  [TRAINING FOR HMONG AND LAOTIAN WOMEN.] 
 45.30     $100,000 of the appropriation in fiscal year 1999 for the 
 45.31  Job Training Partnership Act program in Laws 1997, chapter 200, 
 45.32  article 1, section 5, subdivision 4, is available to the Women's 
 45.33  Association of Hmong and Lao to provide employment and training 
 45.34  to eligible Hmong and Laotian women. 
 45.35     Sec. 63.  [CORRIDOR PLANNING PILOT PROJECTS.] 
 45.36     Subdivision 1.  [PILOT PROJECTS.] (a) The metropolitan 
 46.1   council shall contract with the University of Minnesota design 
 46.2   center for American urban landscape to establish corridor 
 46.3   planning pilot projects for the highway 61 south, and I-35W 
 46.4   north corridors in the metropolitan area.  A "corridor plan" is 
 46.5   a subregional, multijurisdictional comprehensive plan for the 
 46.6   area along a major transportation corridor through two or more 
 46.7   municipalities.  A corridor plan implements local development 
 46.8   and redevelopment objectives in compliance with regional goals 
 46.9   and priorities by establishing an integrated and cooperative 
 46.10  working relationship between adjoining corridor communities to, 
 46.11  among other things: 
 46.12     (1) make use of shared geographic information systems, as 
 46.13  they are developed; 
 46.14     (2) establish a framework for a comprehensive livable 
 46.15  community urban design; 
 46.16     (3) develop strategies for housing, and economic 
 46.17  development and redevelopment, including the cleanup of 
 46.18  contaminated properties and replacement of demolished affordable 
 46.19  housing; and 
 46.20     (4) create a comprehensive multimodal transportation plan 
 46.21  for the corridor, integrating transportation and land use issues.
 46.22     (b) A corridor plan must be developed by representatives of 
 46.23  each of the municipalities in the corridor, reviewed and 
 46.24  approved by the metropolitan council, and adopted by each of the 
 46.25  participating municipalities.  A local comprehensive plan must 
 46.26  be consistent with the corridor plan. 
 46.27     Subd. 2.  [1999 LEGISLATIVE PROPOSAL.] Based on the 
 46.28  experience of the corridor communities with the corridor 
 46.29  planning pilot projects, the council, in collaboration with the 
 46.30  design center and the corridor communities, shall propose 
 46.31  legislation for the 1999 legislature's consideration, that will 
 46.32  provide incentives to communities to implement their adopted 
 46.33  corridor plans approved by the council.  Recommendations for 
 46.34  incentives may include, but are not limited to, recommendations 
 46.35  related to tax increment financing, brownfield cleanup and 
 46.36  redevelopment assistance, transportation funding, board of 
 47.1   government innovation and cooperation grants, and local 
 47.2   government assistance. 
 47.3      Subd. 3.  [EFFECTIVE DATES; APPLICATION.] This section is 
 47.4   effective the day following final enactment and applies in the 
 47.5   counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and 
 47.6   Washington. 
 47.7      Sec. 64.  [MINNESOTA INVESTMENT FUND.] 
 47.8      Subdivision 1.  [CITY OF LUVERNE.] Notwithstanding the 
 47.9   grant limit contained in Minnesota Statutes, section 116J.8731, 
 47.10  subdivision 5, a grant of up to $1,000,000 may be made to the 
 47.11  city of Luverne to offset severe job losses due to plant 
 47.12  closings.  Before a grant is made, there must be coordination 
 47.13  with an existing environmental review of the impact on 
 47.14  groundwater by the Minnesota pollution control agency in 
 47.15  cooperation with the public facilities authority and its program 
 47.16  for wastewater infrastructure and the state revolving loan fund 
 47.17  for drinking water or wastewater treatment.  This subdivision is 
 47.18  effective the day following final enactment. 
 47.19     Subd. 2.  [SOYBEAN OILSEED PROCESSING 
 47.20  FACILITY.] Notwithstanding the grant limit in Minnesota 
 47.21  Statutes, section 116J.8731, subdivision 5, a grant of up to 
 47.22  $1,000,000 may be made to a political subdivision that is chosen 
 47.23  as a site for a soybean oilseed processing facility, constructed 
 47.24  by a Minnesota-based cooperative.  The grant may be used for 
 47.25  site preparation, predevelopment, and other infrastructure 
 47.26  improvements, including public and private utility improvements, 
 47.27  that are necessary for development of the oilseed processing 
 47.28  facility.  The grant may be made any time until December 31, 
 47.29  2000. 
 47.30     Sec. 65.  [DISCLOSURE, CATEGORY 1; CATEGORY 2.] 
 47.31     Prior to March 1, 1999, a builder shall disclose in writing 
 47.32  to a purchaser before execution of a purchase contract whether 
 47.33  the residential building to be constructed is a category 1 or 
 47.34  category 2 building, as defined in Minnesota Rules, part 
 47.35  7670.0470, subpart 6, item A.  The disclosure shall include an 
 47.36  explanation of the difference between the categories in respect 
 48.1   of ventilation systems. 
 48.2      Sec. 66.  [PUBLIC EDUCATION CAMPAIGN.] 
 48.3      The department of commerce shall establish a public 
 48.4   education campaign to educate the public about homeowners' and 
 48.5   purchasers' rights under section 25 and Minnesota Statutes, 
 48.6   sections 16B.61, subdivision 3b; 16B.65, subdivision 7; 326.87, 
 48.7   subdivision 2; 326.975, subdivision 1; 327A.01, subdivisions 2 
 48.8   and 5; 327A.02, subdivisions 1 and 3; 327A.03; 541.051, 
 48.9   subdivisions 1 and 4, and about ways to recognize safety and 
 48.10  health issues that may arise when purchasing a home, including 
 48.11  potential moisture and indoor air quality problems. 
 48.12     Sec. 67.  [ON-THE-JOB TRAINING.] 
 48.13     The job skills partnership board in cooperation with the 
 48.14  departments of trade and economic development, economic 
 48.15  security, and labor and industry and the Minnesota state 
 48.16  colleges and universities shall develop on-the-job training 
 48.17  programs to assist companies in training workers in the skilled 
 48.18  trades.  The programs may include training for immigrants who 
 48.19  have completed training in skilled trades outside of the United 
 48.20  States and may include English as a second language specialists 
 48.21  and interpreters as necessary.  The job skills partnership board 
 48.22  shall pay the costs of developing these programs from its 
 48.23  existing resources.  
 48.24     Sec. 68.  [JUDY GARLAND CHILDREN'S MUSEUM.] 
 48.25     The appropriation in Laws 1997, chapter 200, article 1, 
 48.26  section 2, subdivision 2, to the commissioner of trade and 
 48.27  economic development for the Judy Garland Children's Museum is 
 48.28  available until and may be matched until June 30, 1999. 
 48.29     Sec. 69.  [EXEMPTION FROM ADDITIONAL BENEFITS 
 48.30  REQUIREMENTS.] 
 48.31     Notwithstanding Minnesota Statutes, section 268.125, 
 48.32  subdivisions 1; and 3, clauses (1) and (6), a claimant is 
 48.33  eligible to receive additional benefits under Minnesota 
 48.34  Statutes, section 268.125, if: 
 48.35     (1) the claimant was laid off due to lack of work from the 
 48.36  Campbell Soup plant in Nobles county between the months of July 
 49.1   and September of 1997; and 
 49.2      (2) the commissioner of economic security finds that the 
 49.3   claimant satisfies the conditions of Minnesota Statutes, section 
 49.4   268.125, subdivision 3, clauses (2) to (5), and has been or is a 
 49.5   participant in a dislocated workers program.  
 49.6      This section is effective the day following final enactment.
 49.7      Sec. 70.  [RETIREMENT EXCEPTION.] 
 49.8      Section 71 does not apply to any claimant who, with respect 
 49.9   to any period prior to September 1, 1998, receives, or has an 
 49.10  agreement to receive, a retirement pension financed in whole or 
 49.11  in part by the Hibbing Taconite Company. 
 49.12     Sec. 71.  [EXEMPTION FROM ADDITIONAL BENEFITS 
 49.13  REQUIREMENTS.] 
 49.14     Notwithstanding Minnesota Statutes, section 268.125, 
 49.15  subdivisions 1; and 3, clauses (1) and (6), a claimant is 
 49.16  eligible to receive additional benefits under Minnesota 
 49.17  Statutes, section 268.125, if: 
 49.18     (1) the claimant was laid off due to lack of work from the 
 49.19  Hibbing Taconite Company in St. Louis county between the months 
 49.20  of July and September of 1997; and 
 49.21     (2) the commissioner of economic security finds that the 
 49.22  claimant satisfies the conditions of Minnesota Statutes, section 
 49.23  268.125, subdivision 3, clauses (2) to (5).  
 49.24     This section is effective the day following final enactment.
 49.25     Sec. 72.  [REPEALER.] 
 49.26     (a) Minnesota Statutes 1996, section 116C.80, is repealed.  
 49.27     (b) Minnesota Statutes 1997 Supplement, section 446A.072, 
 49.28  subdivision 4a, is repealed. 
 49.29     (c) Laws 1991, chapter 275, section 3, is repealed. 
 49.30     Sec. 73.  [EFFECTIVE DATES.] 
 49.31     Sections 1 to 14, 19, 21, 22, 36, 51, 52, 53, 56, 58, 59, 
 49.32  60, 61, and 72, paragraph (b), are effective the day following 
 49.33  final enactment.  Section 28 is effective retroactive to July 1, 
 49.34  1997.  Section 65 is effective May 1, 1998.  Section 34 is 
 49.35  effective January 1, 1999.  
 49.36     Sections 39 to 43, 54, and 55 are effective for housing 
 50.1   warranties which take effect on or after June 1, 1999. 
 50.2      Sections 48 and 49 take effect the day after the Hennepin 
 50.3   county board complies with the provisions of Minnesota Statutes, 
 50.4   section 645.021, subdivision 3. 
 50.5      Sections 45 to 47 are effective January 1, 1999. 
 50.6                              ARTICLE 2 
 50.7                               HOUSING 
 50.8   Section 1.  [APPROPRIATIONS.] 
 50.9      The sums in the columns marked "APPROPRIATIONS" are 
 50.10  appropriated from the general fund, or another named fund, to 
 50.11  the agencies and for the purposes specified in this act, to be 
 50.12  available for the fiscal years indicated for each purpose.  The 
 50.13  figures "1998" and "1999," where used in this act, mean that the 
 50.14  appropriation or appropriations listed under them are available 
 50.15  for the year ending June 30, 1998, or June 30, 1999, 
 50.16  respectively.  The term "first year" means the fiscal year 
 50.17  ending June 30, 1998, and "second year" means the fiscal year 
 50.18  ending June 30, 1999. 
 50.19                          SUMMARY BY FUND 
 50.20                                           1998           1999 
 50.21  General                              $    -0-       $20,100,000 
 50.22  TOTAL                                $    -0-       $20,100,000 
 50.23                                             APPROPRIATIONS 
 50.24                                         Available for the Year 
 50.25                                             Ending June 30 
 50.26                                            1998         1999 
 50.27  Sec. 2.   MINNESOTA HOUSING 
 50.28  FINANCE AGENCY                             -0-       19,975,000
 50.29  The amounts that may be spent from this 
 50.30  appropriation for certain programs are 
 50.31  specified below. 
 50.32  This appropriation is for transfer to 
 50.33  the housing development fund for the 
 50.34  programs specified.  Except as 
 50.35  otherwise indicated, this transfer is 
 50.36  part of the agency's permanent budget 
 50.37  base. 
 50.38  $365,000 in 1999 is for a rental 
 50.39  housing assistance program for persons 
 50.40  with a mental illness or families with 
 50.41  an adult member with a mental illness 
 50.42  under Minnesota Statutes, section 
 50.43  462A.2097, and is added to the 
 50.44  appropriation for this program in Laws 
 50.45  1997, chapter 200, article 1, section 6.
 51.1   $700,000 in 1999 is for the family 
 51.2   homeless prevention and assistance 
 51.3   program under Minnesota Statutes, 
 51.4   section 462A.204 and is added to the 
 51.5   appropriation for this program in Laws 
 51.6   1997, chapter 200, article 1, section 6.
 51.7   $14,100,000 in 1999 is for the 
 51.8   affordable rental investment fund 
 51.9   program under Minnesota Statutes, 
 51.10  section 462A.21, subdivision 8b, and 
 51.11  added to the appropriation for this 
 51.12  program in Laws 1997, chapter 200, 
 51.13  article 1, section 6.  Of this amount, 
 51.14  $415,000 is a one-time appropriation 
 51.15  and is not added to the agency's 
 51.16  permanent budget base.  The agency must 
 51.17  seek a commitment from nonstate 
 51.18  resources to be used in coordination 
 51.19  with $4,100,000 from the affordable 
 51.20  rental investment fund program to 
 51.21  secure affordable housing for workers.  
 51.22  Of the amount appropriated to the 
 51.23  affordable rental investment fund 
 51.24  program, $10,000,000 is to finance the 
 51.25  acquisition, rehabilitation, and debt 
 51.26  restructuring of federally assisted 
 51.27  rental property and for making equity 
 51.28  take-out loans under Minnesota 
 51.29  Statutes, section 462A.05, subdivision 
 51.30  39.  The owner of the rental property 
 51.31  must agree to participate in the 
 51.32  applicable federally assisted housing 
 51.33  program and to extend any existing 
 51.34  low-income affordability restrictions 
 51.35  on the housing for the maximum term 
 51.36  permitted.  The owner must also agree 
 51.37  to give local units of government, 
 51.38  housing and redevelopment authorities, 
 51.39  and nonprofit housing organizations the 
 51.40  right of first refusal if the rental 
 51.41  property is offered for sale.  Priority 
 51.42  must be given to properties with the 
 51.43  longest remaining term under an 
 51.44  agreement for federal rental 
 51.45  assistance.  Priority must also be 
 51.46  given among comparable rental housing 
 51.47  developments to developments that are 
 51.48  or will be owned by a local government 
 51.49  unit, a housing and redevelopment 
 51.50  authority, or a nonprofit housing 
 51.51  organization. 
 51.52  $65,000 in 1999 is for nonprofit 
 51.53  capacity building grants under 
 51.54  Minnesota Statutes, section 462A.21, 
 51.55  subdivision 3b, and is added to the 
 51.56  appropriation for this program in Laws 
 51.57  1997, chapter 200, article 1, section 
 51.58  6.  This appropriation is for grants to 
 51.59  supplement resources from the 
 51.60  corporation for national service in 
 51.61  support of placement of VISTA 
 51.62  volunteers with nonprofit housing 
 51.63  agencies. 
 51.64  $4,100,000 in 1999 is for the community 
 51.65  rehabilitation program under Minnesota 
 51.66  Statutes, section 462A.206, and is 
 51.67  added to the appropriation for this 
 52.1   program in Laws 1997, chapter 200, 
 52.2   article 1, section 6.  Of this amount, 
 52.3   $415,000 is a one-time appropriation 
 52.4   and is not added to the agency's 
 52.5   permanent budget base.  The agency must 
 52.6   seek a commitment from nonstate 
 52.7   resources to be used in coordination 
 52.8   with the community rehabilitation 
 52.9   program to secure affordable housing 
 52.10  for workers. 
 52.11  $70,000 in 1999 is for full-cycle home 
 52.12  ownership and purchase-rehabilitation 
 52.13  lending initiatives under Minnesota 
 52.14  Statutes, section 462A.209.  This is a 
 52.15  one-time appropriation and is not added 
 52.16  to the agency's permanent budget base.  
 52.17  This appropriation must be used to make 
 52.18  a grant to a statewide organization 
 52.19  that advocates on behalf of persons 
 52.20  with developmental disabilities or 
 52.21  related conditions.  The grant must be 
 52.22  used to provide prepurchase and 
 52.23  postpurchase counseling to persons with 
 52.24  disabilities who are participating in 
 52.25  the Fannie Mae Homechoice demonstration 
 52.26  project and other projects designed to 
 52.27  encourage home ownership among persons 
 52.28  with disabilities. 
 52.29  $500,000 in 1999 is for the 
 52.30  homeownership zones program, under 
 52.31  Minnesota Statutes, section 462A.2066. 
 52.32  If the agency does not receive fundable 
 52.33  applications for this program by June 
 52.34  30, 1999, that will use the entire 
 52.35  appropriation, the remaining amount is 
 52.36  transferred to the community 
 52.37  rehabilitation program. 
 52.38  $75,000 in 1999 is appropriated for the 
 52.39  housing rehabilitation loan program 
 52.40  under Minnesota Statutes, section 
 52.41  462A.05, subdivision 14a, for loans to 
 52.42  households which include a member 
 52.43  diagnosed with chemical sensitivity.  
 52.44  Notwithstanding section 462A.05, 
 52.45  subdivision 14a, loans may be made to 
 52.46  households which include a member 
 52.47  diagnosed with chemical sensitivity for 
 52.48  the lesser of the actual cost of 
 52.49  improvements or $25,000.  This is a 
 52.50  one-time appropriation and is not added 
 52.51  to the agency's permanent budget base. 
 52.52  Sec. 3.   ADMINISTRATION                 -0-            125,000
 52.53  To the commissioner of administration 
 52.54  for the Healthy Homes Pilot Project 
 52.55  established in section 5.  This is a 
 52.56  one-time appropriation and is not added 
 52.57  to the department's permanent budget 
 52.58  base. 
 52.59     Sec. 4.  Laws 1997, chapter 200, article 1, section 6, is 
 52.60  amended to read: 
 52.61  Sec. 6.  HOUSING FINANCE AGENCY       33,380,000     24,976,000
 52.62  The amounts that may be spent from this 
 53.1   appropriation for certain programs are 
 53.2   specified below. 
 53.3   This appropriation is for transfer to 
 53.4   the housing development fund for the 
 53.5   programs specified.  Except as 
 53.6   otherwise indicated, this transfer is 
 53.7   part of the agency's permanent budget 
 53.8   base. 
 53.9   Spending limit on cost of general 
 53.10  administration of agency programs:  
 53.11        1998                     1999
 53.12      11,017,000 11,684,000    11,678,000 13,278,000
 53.13  $1,550,000 the first year and 
 53.14  $1,550,000 the second year is for a 
 53.15  rental housing assistance program for 
 53.16  persons with a mental illness or 
 53.17  families with an adult member with a 
 53.18  mental illness under Minnesota 
 53.19  Statutes, section 462A.2097. 
 53.20  A biennial appropriation of $5,750,000 
 53.21  is made in the first year and is for 
 53.22  the family homeless prevention and 
 53.23  assistance program under Minnesota 
 53.24  Statutes, section 462A.204, and is 
 53.25  available until June 30, 1999. 
 53.26  Grants to organizations made under the 
 53.27  family homeless prevention and 
 53.28  assistance program may include grants 
 53.29  (1) to organizations providing case 
 53.30  management for persons that need 
 53.31  assistance to rehabilitate their rent 
 53.32  history and find rental housing, and 
 53.33  (2) to organizations that will provide, 
 53.34  and report on the success or failure 
 53.35  of, innovative approaches to housing 
 53.36  persons with poor rental histories, 
 53.37  including, but not limited to, 
 53.38  assisting tenants in correcting tenant 
 53.39  screening reports, developing a single 
 53.40  application fee and process acceptable 
 53.41  to participating landlords, developing 
 53.42  a certification of tenants program 
 53.43  acceptable to participating landlords, 
 53.44  expungement of unlawful detainer 
 53.45  records, and creating a bonding program 
 53.46  to encourage landlords to accept 
 53.47  high-risk tenants with poor rent 
 53.48  histories. 
 53.49  $583,000 the first year and $583,000 
 53.50  the second year is for the foreclosure 
 53.51  prevention and assistance program under 
 53.52  Minnesota Statutes, section 462A.207. 
 53.53  $2,750,000 the first year and 
 53.54  $2,750,000 the second year is for the 
 53.55  rent assistance for family 
 53.56  stabilization program under Minnesota 
 53.57  Statutes, section 462A.205.  Of this 
 53.58  amount, $750,000 each year is a 
 53.59  one-time appropriation and is not added 
 53.60  to the agency's permanent base. 
 53.61  $2,348,000 the first year and 
 54.1   $2,348,000 the second year is for the 
 54.2   housing trust fund to be deposited in 
 54.3   the housing trust fund account created 
 54.4   under Minnesota Statutes, section 
 54.5   462A.201, and used for the purposes 
 54.6   provided in that section.  Of this 
 54.7   amount, $550,000 each year must be used 
 54.8   for transitional housing. 
 54.9   $8,118,000 the first year and 
 54.10  $6,493,000 the second year is for the 
 54.11  affordable rental investment fund 
 54.12  program under Minnesota Statutes, 
 54.13  section 462A.21, subdivision 8b.  Of 
 54.14  this amount, $1,625,000 the first year 
 54.15  is a one-time appropriation and is not 
 54.16  added to the agency's permanent base.  
 54.17  Of the one-time appropriation, $125,000 
 54.18  the first year is for housing for 
 54.19  people with HIV or AIDS outside of the 
 54.20  Minneapolis-St. Paul metropolitan 
 54.21  statistical area.  
 54.22  To the extent practicable, this 
 54.23  appropriation shall be used so that an 
 54.24  approximately equal number of housing 
 54.25  units are financed in the metropolitan 
 54.26  area, as defined in Minnesota Statutes, 
 54.27  section 473.121, subdivision 2, and in 
 54.28  the nonmetropolitan area. 
 54.29  (a) In the area of the state outside 
 54.30  the metropolitan area, the agency must 
 54.31  work with groups in the funding regions 
 54.32  created under Minnesota Statutes, 
 54.33  section 116J.415, to assist the agency 
 54.34  in identifying the affordable housing 
 54.35  needed in each region in connection 
 54.36  with economic development and 
 54.37  redevelopment efforts and in 
 54.38  establishing priorities for uses of the 
 54.39  affordable rental investment fund.  The 
 54.40  groups must include the regional 
 54.41  development commissioners, the regional 
 54.42  organization selected under Minnesota 
 54.43  Statutes, section 116J.415, the private 
 54.44  industry councils, units of local 
 54.45  government, community action agencies, 
 54.46  the Minnesota housing partnership 
 54.47  network groups, local lenders, 
 54.48  for-profit and nonprofit developers, 
 54.49  and realtors.  In addition to 
 54.50  priorities developed by the group, the 
 54.51  agency must give a preference to 
 54.52  economically viable projects in which 
 54.53  units of local government, area 
 54.54  employers, and the private sector 
 54.55  contribute financial assistance.  
 54.56  (b) In the metropolitan area, the 
 54.57  commissioner shall collaborate with the 
 54.58  metropolitan council to identify the 
 54.59  priorities for use of the affordable 
 54.60  rental investment fund.  Funds 
 54.61  distributed in the metropolitan area 
 54.62  must be used consistent with the 
 54.63  objectives of the metropolitan 
 54.64  development guide, adopted under 
 54.65  Minnesota Statutes, section 473.145.  
 54.66  In addition to the priorities 
 54.67  identified in conjunction with the 
 55.1   metropolitan council, the agency shall 
 55.2   give preference to economically viable 
 55.3   projects that: 
 55.4   (1) include a contribution of financial 
 55.5   resources from units of local 
 55.6   government and area employers; 
 55.7   (2) take into account the availability 
 55.8   of transportation in the community; and 
 55.9   (3) take into account the job training 
 55.10  efforts in the community. 
 55.11  $187,000 the first year and $187,000 
 55.12  the second year is for the urban Indian 
 55.13  housing program under Minnesota 
 55.14  Statutes, section 462A.07, subdivision 
 55.15  15.  
 55.16  $1,683,000 the first year and 
 55.17  $1,683,000 the second year is for the 
 55.18  tribal Indian housing program under 
 55.19  Minnesota Statutes, section 462A.07, 
 55.20  subdivision 14.  
 55.21  $186,000 the first year and $186,000 
 55.22  the second year is for the Minnesota 
 55.23  rural and urban homesteading program 
 55.24  under Minnesota Statutes, section 
 55.25  462A.057.  
 55.26  $340,000 the first year and $240,000 
 55.27  the second year is for nonprofit 
 55.28  capacity building grants under 
 55.29  Minnesota Statutes, section 462A.21, 
 55.30  subdivision 3b.  Of this amount, 
 55.31  $80,000 is for a grant to the Minnesota 
 55.32  housing partnership.  Of this amount, 
 55.33  $150,000 is for equal grants to an 
 55.34  organization in each of the six regions 
 55.35  established under Minnesota Statutes, 
 55.36  section 116J.415, for capacity building 
 55.37  grants.  Of this amount, $50,000 is for 
 55.38  a grant in the metropolitan area, as 
 55.39  defined in Minnesota Statutes, section 
 55.40  473.121, subdivision 2.  Of this 
 55.41  amount, $100,000 the first year is to 
 55.42  develop projects under the neighborhood 
 55.43  land trust program under Minnesota 
 55.44  Statutes, sections 462A.30 and 462A.31, 
 55.45  and is available until June 30, 1999.  
 55.46  The appropriation in the first year for 
 55.47  the neighborhood land trust program is 
 55.48  a one-time appropriation and is not 
 55.49  added to the agency's permanent base.  
 55.50  $4,368,000 the first year and 
 55.51  $3,569,000 the second year is for the 
 55.52  community rehabilitation program under 
 55.53  Minnesota Statutes, section 462A.206.  
 55.54  Of this amount, $250,000 the first year 
 55.55  and $250,000 the second year is for 
 55.56  full-cycle home ownership and 
 55.57  purchase-rehabilitation lending 
 55.58  initiatives.  Of this amount, 
 55.59  $1,218,000 the first year and $419,000 
 55.60  the second year are one-time 
 55.61  appropriations and are not added to the 
 55.62  agency's permanent base. 
 56.1   Of the one-time appropriation for the 
 56.2   community rehabilitation program, 
 56.3   $375,000 the first year and $375,000 
 56.4   the second year is for grants to 
 56.5   acquire, demolish, and remove 
 56.6   substandard multiple-unit residential 
 56.7   rental property or acquire, 
 56.8   rehabilitate, and reconfigure 
 56.9   multiple-unit residential rental 
 56.10  property.  No more than one-half of 
 56.11  money available in a year shall be 
 56.12  given to a single project.  Priority 
 56.13  must be given to projects that result 
 56.14  in the creation of housing 
 56.15  opportunities that will diversify the 
 56.16  housing stock and promote the creation 
 56.17  of life-cycle housing opportunities 
 56.18  within the community.  For the purposes 
 56.19  of this paragraph, "substandard 
 56.20  multiple-unit residential rental 
 56.21  property" is property that meets the 
 56.22  definition of Minnesota Statutes 1996, 
 56.23  section 273.1316, subdivision 2.  
 56.24  Displaced residents must be provided 
 56.25  relocation assistance, as provided in 
 56.26  Minnesota Statutes, sections 117.50 to 
 56.27  117.56.  To the extent allowed by 
 56.28  federal law, a public agency 
 56.29  administering a federal rent subsidy 
 56.30  program shall give priority to persons 
 56.31  displaced by grants under this section. 
 56.32  Of the one-time appropriation for the 
 56.33  community rehabilitation program, 
 56.34  $250,000 the first year is for a grant 
 56.35  to provide funds to an organization or 
 56.36  consortium of organizations 
 56.37  participating in a project that is 
 56.38  awarded a grant from the metropolitan 
 56.39  livable communities demonstration 
 56.40  program to develop affordable and 
 56.41  life-cycle housing in St. Paul or 
 56.42  Minneapolis.  The project must be based 
 56.43  upon a comprehensive community planning 
 56.44  process that creates a long-term plan 
 56.45  to revitalize a neighborhood and must 
 56.46  include compact development with 
 56.47  linkages to employment, transit, and 
 56.48  affordable life-cycle housing. 
 56.49  Of the one-time appropriation for the 
 56.50  community rehabilitation program, up to 
 56.51  $550,000 the first year is for a grant 
 56.52  to the city of Landfall to purchase a 
 56.53  portion of real property in the city 
 56.54  owned by the Washington county housing 
 56.55  and redevelopment authority.  The 
 56.56  agency shall not make the grant until 
 56.57  the city of Landfall has secured the 
 56.58  balance of the funds necessary to 
 56.59  purchase the real property from the 
 56.60  Washington county housing and 
 56.61  redevelopment authority.  The agency 
 56.62  shall require that the land purchased 
 56.63  be restricted to use by current 
 56.64  residents or for affordable housing for 
 56.65  the term of the bonds issued by the 
 56.66  city to purchase the land.  "Affordable"
 56.67  is as defined by the metropolitan 
 56.68  council for the purposes of the 
 56.69  metropolitan livable communities 
 57.1   program.  
 57.2   A recipient of funds from the community 
 57.3   rehabilitation program for a project in 
 57.4   a historic preservation district in St. 
 57.5   Paul, must provide assurances to the 
 57.6   agency that the project will conform to 
 57.7   the written historic preservation 
 57.8   guidelines for the district and that 
 57.9   the funding recipient will not seek any 
 57.10  variance to the guidelines.  
 57.11  $4,287,000 the first year and 
 57.12  $4,287,000 the second year is for the 
 57.13  housing rehabilitation and 
 57.14  accessibility program under Minnesota 
 57.15  Statutes, section 462A.05, subdivisions 
 57.16  14a and 15a.  
 57.17  $1,075,000 the first year and 
 57.18  $1,075,000 the second year is for the 
 57.19  home ownership assistance fund under 
 57.20  Minnesota Statutes, section 462A.21, 
 57.21  subdivision 8.  Of this amount, 
 57.22  $175,000 each year is a one-time 
 57.23  appropriation and is not added to the 
 57.24  agency's permanent base. 
 57.25  $25,000 the first year and $25,000 the 
 57.26  second year is for home equity 
 57.27  conversion counseling grants under 
 57.28  Minnesota Statutes, section 462A.28.  
 57.29  The money must be used for a counseling 
 57.30  service which only counsels for home 
 57.31  equity conversions. 
 57.32  $50,000 is for the costs of the 
 57.33  advisory task force on lead hazard 
 57.34  reduction, established in article 4, 
 57.35  section 1.  This is a one-time 
 57.36  appropriation and is not added to the 
 57.37  agency's permanent base. 
 57.38  $80,000 is for the affordable 
 57.39  neighborhood design and development 
 57.40  initiative, in Laws 1995, chapter 224, 
 57.41  section 122.  This is a one-time 
 57.42  appropriation and is not added to the 
 57.43  agency's permanent base. 
 57.44     Sec. 5.  [HEALTHY HOMES PILOT PROJECT.] 
 57.45     (a) The commissioner of administration shall establish a 
 57.46  Minnesota healthy homes pilot project to provide training and 
 57.47  technical assistance to selected building code officials, and 
 57.48  low-income housing developers and their contractors in the pilot 
 57.49  communities to address the problem of defective homes and to 
 57.50  develop a model program for education, training, and technical 
 57.51  assistance to be replicated statewide.  The project must be 
 57.52  implemented in up to four demonstration sites (two urban, one 
 57.53  suburban, and one in greater Minnesota) and work with building 
 57.54  code officials from the selected municipalities, and selected 
 58.1   low-income housing developers and their building contractors.  
 58.2   The project must: 
 58.3      (1) provide up to four low-income housing developers with 
 58.4   education and implementation guidelines to produce healthy 
 58.5   homes, including on-site training during the actual construction 
 58.6   phase; 
 58.7      (2) demonstrate the use of mechanical ventilation systems 
 58.8   as a strategy for healthy indoor air while allowing for a 
 58.9   tightly constructed building, including design, installation, 
 58.10  and testing of this approach; 
 58.11     (3) conduct classroom and on-site training at designated 
 58.12  building sites to provide inspectors and builders with practical 
 58.13  training and experience from the ground up; 
 58.14     (4) conduct integrated performance testing of homes 
 58.15  throughout the construction process; 
 58.16     (5) establish a protocol utilizing the results of the pilot 
 58.17  project, which can be used statewide as a guideline for healthy 
 58.18  home construction; 
 58.19     (6) develop an educational program for homeowners in the 
 58.20  pilot communities on how to operate and maintain their homes in 
 58.21  order to prevent contributing to indoor air quality problems 
 58.22  that lead to unhealthy houses; and 
 58.23     (7) report to the house and senate finance and policy 
 58.24  committees with jurisdiction over housing on the progress and 
 58.25  results of the pilot project by March 15, 1999. 
 58.26     (b) The commissioner of administration shall make a grant 
 58.27  to Sustainable Resources Center, a nonprofit organization with 
 58.28  expertise and certification in indoor air quality diagnostics 
 58.29  and remediating sick homes, to design, implement, and manage the 
 58.30  pilot project. 
 58.31     (c) This section is effective the day following final 
 58.32  enactment. 
 58.33     Sec. 6.  [METRO STATE UNIVERSITY HOUSING PROJECT.] 
 58.34     The housing finance agency shall consult with the Minnesota 
 58.35  state colleges and universities system, the city of St. Paul, 
 58.36  the Dayton's Bluff neighborhood housing service, the district 4 
 59.1   council, the east side neighborhood development corporation, the 
 59.2   swede hollow land trust organization, east metro women's 
 59.3   resource center, and other interested parties concerning the 
 59.4   feasibility of a project to acquire and/or rehabilitate existing 
 59.5   housing structures for use as rental housing for low-income 
 59.6   students at Metro State University.  The housing finance agency 
 59.7   shall report to the house and senate finance and policy 
 59.8   committees with jurisdiction over housing and education during 
 59.9   the 1999 legislative session on the feasibility of the project, 
 59.10  and identify the barriers to the project and the potential 
 59.11  sources of funding. 
 59.12     Sec. 7.  Minnesota Statutes 1996, section 462A.05, 
 59.13  subdivision 14, is amended to read: 
 59.14     Subd. 14.  [REHABILITATION LOANS.] It may agree to 
 59.15  purchase, make, or otherwise participate in the making, and may 
 59.16  enter into commitments for the purchase, making, or 
 59.17  participation in the making, of eligible loans for 
 59.18  rehabilitation to persons and families of low and moderate 
 59.19  income, and to owners of existing residential housing for 
 59.20  occupancy by such persons and families, for the rehabilitation 
 59.21  of existing residential housing owned by them.  The loans may be 
 59.22  insured or uninsured and may be made with security, or may be 
 59.23  unsecured, as the agency deems advisable.  The loans may be in 
 59.24  addition to or in combination with long-term eligible mortgage 
 59.25  loans under subdivision 3.  They may be made in amounts 
 59.26  sufficient to refinance existing indebtedness secured by the 
 59.27  property, if refinancing is determined by the agency to be 
 59.28  necessary to permit the owner to meet the owner's housing cost 
 59.29  without expending an unreasonable portion of the owner's income 
 59.30  thereon.  No loan for rehabilitation shall be made unless the 
 59.31  agency determines that the loan will be used primarily to make 
 59.32  the housing more desirable to live in, to increase the market 
 59.33  value of the housing, for compliance with state, county or 
 59.34  municipal building, housing maintenance, fire, health or similar 
 59.35  codes and standards applicable to housing, or to accomplish 
 59.36  energy conservation related improvements.  In unincorporated 
 60.1   areas and municipalities not having codes and standards, the 
 60.2   agency may, solely for the purpose of administering the 
 60.3   provisions of this chapter, establish codes and standards.  
 60.4   Except for accessibility improvements under this subdivision and 
 60.5   subdivisions 14a and 24, clause (1), no secured loan for 
 60.6   rehabilitation of any property shall be made in an amount which, 
 60.7   with all other existing indebtedness secured by the property, 
 60.8   would exceed 110 percent of its market value, as determined by 
 60.9   the agency.  No loan under this subdivision shall be denied 
 60.10  solely because the loan will not be used for placing the 
 60.11  residential housing in full compliance with all state, county, 
 60.12  or municipal building, housing maintenance, fire, health, or 
 60.13  similar codes and standards applicable to housing.  
 60.14  Rehabilitation loans shall be made only when the agency 
 60.15  determines that financing is not otherwise available, in whole 
 60.16  or in part, from private lenders upon equivalent terms and 
 60.17  conditions.  Accessibility rehabilitation loans authorized under 
 60.18  this subdivision may be made to eligible persons and families 
 60.19  without limitations relating to the maximum incomes of the 
 60.20  borrowers if: 
 60.21     (1) the borrower or a member of the borrower's family 
 60.22  requires a level of care provided in a hospital, skilled nursing 
 60.23  facility, or intermediate care facility for persons with mental 
 60.24  retardation or related conditions; 
 60.25     (2) home care is appropriate; and 
 60.26     (3) the improvement will enable the borrower or a member of 
 60.27  the borrower's family to reside in the housing. 
 60.28     Sec. 8.  Minnesota Statutes 1997 Supplement, section 
 60.29  462A.05, subdivision 39, is amended to read: 
 60.30     Subd. 39.  [EQUITY TAKE-OUT LOANS.] The agency may make 
 60.31  equity take-out loans to owners of section 8 project-based and 
 60.32  section 236 federally assisted rental property upon which the 
 60.33  agency holds a first mortgage.  The owner of a section 8 
 60.34  project-based federally assisted rental property must agree to 
 60.35  participate in the section 8 federal assistance program and 
 60.36  extend the low-income affordability restrictions on the housing 
 61.1   for the maximum term of the section 8 federal assistance 
 61.2   contract.  The owner of section 236 rental property must agree 
 61.3   to participate in the section 236 interest reduction payments 
 61.4   program, to extend any existing low-income affordability 
 61.5   restrictions on the housing, and to extend any rental assistance 
 61.6   payments for the maximum term permitted under the agreement for 
 61.7   rental assistance payments.  The equity take-out loan must be 
 61.8   secured by a subordinate loan on the property and may include 
 61.9   additional appropriate security determined necessary by the 
 61.10  agency. 
 61.11     Sec. 9.  Minnesota Statutes 1997 Supplement, section 
 61.12  462A.205, subdivision 1, is amended to read: 
 61.13     Subdivision 1.  [FAMILY STABILIZATION DEMONSTRATION 
 61.14  PROJECT.] The agency, in consultation with the department of 
 61.15  human services, may establish a rent assistance for family 
 61.16  stabilization demonstration project.  The purpose of the project 
 61.17  is to provide rental assistance to families who, at the time of 
 61.18  initial eligibility for rental assistance under this section, 
 61.19  were receiving public assistance, and had a caretaker parent 
 61.20  participating in a self-sufficiency program who was complying 
 61.21  with the parent's job search support plan or employment plan and 
 61.22  at least one minor child and to provide rental assistance to 
 61.23  families who, at the time of initial eligibility for rental 
 61.24  assistance under this section, were receiving public assistance, 
 61.25  and had a caretaker parent who had earned income and with at 
 61.26  least one minor child.  The demonstration project is limited to 
 61.27  counties with high average housing costs.  The program must 
 61.28  offer two options:  a voucher option and a project-based voucher 
 61.29  option.  The funds may be distributed on a request for proposal 
 61.30  basis.  
 61.31     Sec. 10.  Minnesota Statutes 1997 Supplement, section 
 61.32  462A.205, subdivision 2, is amended to read: 
 61.33     Subd. 2.  [DEFINITIONS.] For the purposes of this section, 
 61.34  the following terms have the meanings given them. 
 61.35     (a) "Caretaker parent" means a parent, relative caretaker, 
 61.36  or minor caretaker as defined by the aid to families with 
 62.1   dependent children program, sections 256.72 to 256.87, or its 
 62.2   successor program. 
 62.3      (b) "County agency" means the agency designated by the 
 62.4   county board to implement financial assistance for current 
 62.5   public assistance programs and for the Minnesota family 
 62.6   investment program statewide. 
 62.7      (c) "Counties with high average housing costs" means 
 62.8   counties whose average federal section 8 fair market rents as 
 62.9   determined by the Department of Housing and Urban Development 
 62.10  are in the highest one-third of average rents in the state. 
 62.11     (d) "Designated rental property" is rental property (1) 
 62.12  that is made available by a self-sufficiency program for use by 
 62.13  participating families and meets federal section 8 existing 
 62.14  quality standards, or (2) that has received federal, state, or 
 62.15  local rental rehabilitation assistance since January 1, 1987, 
 62.16  and meets federal section 8 existing housing quality standards. 
 62.17     (e) "Earned income" for a family receiving rental 
 62.18  assistance under this section means cash or in-kind income 
 62.19  earned through the receipt of wages, salary, commissions, profit 
 62.20  from employment activities, net profit from self-employment 
 62.21  activities, payments made by an employer for regularly accrued 
 62.22  vacation or sick leave, and any other profit from activity 
 62.23  earned through effort or labor. 
 62.24     (f) "Employment and training service provider" means a 
 62.25  provider as defined in chapter 256J.  
 62.26     (g) "Employment plan" means a plan as defined in chapter 
 62.27  256J.  
 62.28     (h) "Family or participating family" means: 
 62.29     (1) a family with a caretaker parent who is participating 
 62.30  in a self-sufficiency program complying with the parent's job 
 62.31  search support plan or employment plan and with at least one 
 62.32  minor child; 
 62.33     (2) a family that, at the time it began receiving rent 
 62.34  assistance under this section, had a caretaker parent 
 62.35  participating in a self-sufficiency program complying with the 
 62.36  parent's job search support plan or employment plan and had at 
 63.1   least one minor child; 
 63.2      (3) a family with a caretaker parent who is receiving 
 63.3   public assistance and has earned income and with at least one 
 63.4   minor child; or 
 63.5      (4) a family that, at the time it began receiving rent 
 63.6   assistance under this section, had a caretaker parent who had 
 63.7   earned income and at least one minor child; and 
 63.8      (5) a family that has at least one member who is a 
 63.9   recipient of public assistance. 
 63.10     (g) (i) "Gross family income" for a family receiving rental 
 63.11  assistance under this section means the gross amount of the 
 63.12  wages, salaries, social security payments, pensions, workers' 
 63.13  compensation, reemployment insurance, the cash assistance 
 63.14  portion of public assistance payments, alimony, and child 
 63.15  support, and income from assets received by the family. 
 63.16     (h) (j) "Local housing organization" means the agency of 
 63.17  local government responsible for administering the Department of 
 63.18  Housing and Urban Development's section 8 existing voucher and 
 63.19  certificate program or a nonprofit or for-profit organization 
 63.20  experienced in housing management. 
 63.21     (i) (k) "Public assistance" means aid to families with 
 63.22  dependent children, or its successor program, family general 
 63.23  assistance, or its successor program, or family work readiness, 
 63.24  or its successor program. 
 63.25     (j) "Self-sufficiency program" means a program operated by 
 63.26  an employment and training service provider as defined in 
 63.27  chapter 256J, an employability program administered by a 
 63.28  community action agency, or courses of study at an accredited 
 63.29  institution of higher education pursued with at least half-time 
 63.30  student status. 
 63.31     Sec. 11.  Minnesota Statutes 1997 Supplement, section 
 63.32  462A.205, subdivision 5, is amended to read: 
 63.33     Subd. 5.  [VOUCHER OPTION.] At least one-half of the 
 63.34  appropriated funds must be made available for a voucher option.  
 63.35  Under the voucher option, the Minnesota housing finance agency, 
 63.36  in consultation with the department of human services, will 
 64.1   award a number of vouchers to self-sufficiency program 
 64.2   administrators employment and training service providers for 
 64.3   participating families and to county agencies for participating 
 64.4   families with earned income.  Families may use the voucher for 
 64.5   any rental housing that is certified by the local housing 
 64.6   organization as meeting section 8 existing housing quality 
 64.7   standards. 
 64.8      Sec. 12.  Minnesota Statutes 1997 Supplement, section 
 64.9   462A.205, subdivision 6, is amended to read: 
 64.10     Subd. 6.  [PROJECT-BASED VOUCHER OPTION.] A portion of the 
 64.11  appropriated funds must be made available for a project-based 
 64.12  voucher option.  Under the project-based voucher option, the 
 64.13  Minnesota housing finance agency, in consultation with the 
 64.14  department of human services, will award a number of vouchers to 
 64.15  self-sufficiency program administrators and to county 
 64.16  agencies employment and training service providers for 
 64.17  participating families who live in designated rental property 
 64.18  that is certified by a local housing organization as meeting 
 64.19  section 8 existing housing quality standards.  
 64.20     Sec. 13.  Minnesota Statutes 1997 Supplement, section 
 64.21  462A.205, subdivision 9, is amended to read: 
 64.22     Subd. 9.  [VOUCHERS FOR FAMILIES WITH A CARETAKER PARENT 
 64.23  WITH EARNED INCOME.] (a) Applications to provide the rental 
 64.24  assistance for families with a caretaker parent with earned 
 64.25  income under either the voucher or project-based option must be 
 64.26  submitted jointly by a local housing organization and a county 
 64.27  agency an employment and training service provider.  The 
 64.28  application must include a description of how the caretaker 
 64.29  parent participants will be selected. 
 64.30     (b) County agencies Employment and training service 
 64.31  providers awarded vouchers must select the caretaker parents 
 64.32  with earned income whose families will receive the rental 
 64.33  assistance.  The county agency employment and training service 
 64.34  provider must notify the local housing organization and the 
 64.35  agency if: 
 64.36     (1) at the time of annual recertification, the caretaker 
 65.1   parent no longer has earned income and is not in compliance with 
 65.2   the caretaker parent's employment plan or job search plan; and 
 65.3      (2) for a period of six months after the annual 
 65.4   recertification, the caretaker parent has no earned income and 
 65.5   has failed to comply with the job search support plan or 
 65.6   employment plan. 
 65.7      (c) The county agency employment and training service 
 65.8   provider must provide the caretaker parent who, at the time of 
 65.9   annual recertification, has no earned income and is not in 
 65.10  compliance with the job search support plan or employment plan 
 65.11  with the notice specified in Minnesota Rules, part 4900.3379.  
 65.12  The county agency employment and training service provider must 
 65.13  send a subsequent notice to the caretaker parent, the local 
 65.14  housing organization, and the Minnesota housing finance agency 
 65.15  60 days before the termination of rental assistance. 
 65.16     (d) If the local housing organization receives notice from 
 65.17  a county agency an employment and training service provider that 
 65.18  a caretaker parent whose initial eligibility for rental 
 65.19  assistance was based on the receipt of earned income no longer 
 65.20  has earned income and for a period of six months after the 
 65.21  termination of earned income the annual recertification has 
 65.22  failed to comply with the caretaker parent's job search plan or 
 65.23  employment plan, the local housing organization must notify the 
 65.24  property owner that rental assistance may terminate and notify 
 65.25  the caretaker parent of the termination of rental assistance 
 65.26  under Minnesota Rules, part 4900.3380. 
 65.27     (e) The county agency employment and training service 
 65.28  provider awarded vouchers for families with a caretaker parent 
 65.29  with earned income must comply with the provisions of Minnesota 
 65.30  Rules, part 4900.3377. 
 65.31     (f) For families whose initial eligibility for rental 
 65.32  assistance was based on the receipt of earned income, rental 
 65.33  assistance must be terminated under any of the following 
 65.34  conditions: 
 65.35     (1) the family is evicted from the property for cause; 
 65.36     (2) the caretaker parent no longer has earned income and, 
 66.1   after six months after an annual recertification, is not in 
 66.2   compliance with the parent's job search or employment plan; 
 66.3      (3) 30 percent of the family's gross income equals or 
 66.4   exceeds the amount of the housing costs for two or more 
 66.5   consecutive months; 
 66.6      (4) the family has received rental assistance under this 
 66.7   section for a 36-month 60-month period; or 
 66.8      (5) the rental unit no longer meets federal section 8 
 66.9   existing housing quality standards, the owner refused to make 
 66.10  necessary repairs or alterations to bring the rental unit into 
 66.11  compliance within a reasonable time, and the caretaker parent 
 66.12  refused to relocate to a qualifying unit. 
 66.13     (g) If a county agency an employment and training service 
 66.14  provider determines that a caretaker parent no longer has earned 
 66.15  income and is not in compliance with the parent's job search or 
 66.16  employment plan, the county agency employment and training 
 66.17  service provider must notify the caretaker parent of that 
 66.18  determination.  The notice must be in writing and must explain 
 66.19  the effect of not having earned income or failing to be in 
 66.20  compliance with the job search or employment plan will have on 
 66.21  the rental assistance.  The notice must: 
 66.22     (1) state that rental assistance will end six months after 
 66.23  earned income has ended an annual recertification; 
 66.24     (2) specify the date the rental assistance will end; 
 66.25     (3) explain that after the date specified, the caretaker 
 66.26  parent will be responsible for the total housing costs; 
 66.27     (4) describe the actions the caretaker parent may take to 
 66.28  avoid termination of rental assistance; and 
 66.29     (5) inform the caretaker parent of the caretaker parent's 
 66.30  responsibility to notify the county agency employment and 
 66.31  training service provider if the caretaker parent has earned 
 66.32  income. 
 66.33     Sec. 14.  [462A.2066] [HOMEOWNERSHIP ZONES PROGRAM.] 
 66.34     Subdivision 1.  [ACCOUNT.] The homeownership zones fund 
 66.35  account is established as a separate account in the housing 
 66.36  development fund.  Money in the account is appropriated to the 
 67.1   agency for the purposes specified in this section. 
 67.2      Subd. 2.  [COMPLEMENTARY TO FEDERAL PROGRAM.] In 
 67.3   implementing the state homeownership zones program, the agency 
 67.4   shall follow, to the extent practicable and not inconsistent 
 67.5   with provisions in this section, the federal program guidelines 
 67.6   for homeownership zones, established in the Federal Register, 
 67.7   volume 62, number 129, July 7, 1997. 
 67.8      Subd. 3.  [ELIGIBILITY; GRANTS AND LOANS.] The agency may 
 67.9   make grants or loans to cities, counties, or nonprofit 
 67.10  organizations for the purposes of this section.  In awarding 
 67.11  grants and loans, the agency shall take into account the amount 
 67.12  of money that the applicant leverages from other sources, 
 67.13  including the federal homeownership zones program.  The 
 67.14  applicant must indicate in its application how the proposed 
 67.15  project is consistent with the consolidated housing plan.  Not 
 67.16  less than ten days before submitting its application to the 
 67.17  agency, a county or nonprofit organization must notify the city 
 67.18  in which the project will be located of its intent to apply for 
 67.19  funds.  The city may submit to the agency its written comments 
 67.20  on the county's or nonprofit organization's application and the 
 67.21  agency shall consider the city's comments in reviewing the 
 67.22  application. 
 67.23     Subd. 4.  [SPECIAL PROJECT CHARACTERISTICS.] A 
 67.24  homeownership zone project may include scattered sites of less 
 67.25  than 300 units in an identified zone as well as a single 
 67.26  contiguous tract.  A homeownership zone project must incorporate 
 67.27  energy conservation design and measures into the project. 
 67.28     Sec. 15.  Minnesota Statutes 1996, section 462A.21, is 
 67.29  amended by adding a subdivision to read: 
 67.30     Subd. 24.  [HOMEOWNERSHIP ZONES.] The agency may spend 
 67.31  money for the purposes of the homeownership zones program under 
 67.32  section 462A.2066, and may pay the costs and expenses necessary 
 67.33  and incidental to the development and operation of the program.  
 67.34  It may approve allocations of more than $300,000 to individual 
 67.35  projects. 
 67.36     Sec. 16.  Minnesota Statutes 1996, section 462A.21, is 
 68.1   amended by adding a subdivision to read: 
 68.2      Subd. 25.  [FULL CYCLE HOMEOWNERSHIP.] It may spend money 
 68.3   for the purposes of the full cycle homeownership services 
 68.4   program under section 462A.209, and may pay the costs and 
 68.5   expenses necessary and incidental to the development and 
 68.6   operation of the program. 
 68.7      Sec. 17.  Minnesota Statutes 1996, section 462A.222, 
 68.8   subdivision 3, is amended to read: 
 68.9      Subd. 3.  [ALLOCATION PROCEDURE.] (a) Projects will be 
 68.10  awarded tax credits in three competitive rounds on an annual 
 68.11  basis.  The date for applications for each round must be 
 68.12  determined by the agency.  No allocating agency may award tax 
 68.13  credits prior to the application dates established by the agency.
 68.14     (b) Each allocating agency must meet the requirements of 
 68.15  section 42(m) of the Internal Revenue Code of 1986, as amended 
 68.16  through December 31, 1989, for the allocation of tax credits and 
 68.17  the selection of projects. 
 68.18     (c) For projects that are eligible for an allocation of 
 68.19  credits pursuant to section 42(h)(4) of the Internal Revenue 
 68.20  Code of 1986, as amended, tax credits may only be allocated if 
 68.21  the project satisfies the requirements of the allocating 
 68.22  agency's qualified allocation plan.  For projects that are 
 68.23  eligible for an allocation of credits pursuant to section 
 68.24  42(h)(4) of the Internal Revenue Code of 1986, as amended, for 
 68.25  which the agency is the issuer of the bonds for the project, or 
 68.26  the issuer of the bonds for the project is located outside the 
 68.27  jurisdiction of a city or county that has received reserved tax 
 68.28  credits, the applicable allocation plan is the agency's 
 68.29  qualified allocation plan. 
 68.30     (d) For applications submitted for the first round, an 
 68.31  allocating agency may allocate tax credits only to the following 
 68.32  types of projects: 
 68.33     (1) in the metropolitan area: 
 68.34     (i) new construction or substantial rehabilitation of 
 68.35  projects in which, for the term of the extended use period, at 
 68.36  least 75 percent of the total tax credit units are single-room 
 69.1   occupancy, efficiency, or one bedroom units and which are 
 69.2   affordable by households whose income does not exceed 30 percent 
 69.3   of the median income; 
 69.4      (ii) new construction or substantial rehabilitation family 
 69.5   housing projects that are not restricted to persons who are 55 
 69.6   years of age or older and in which, for the term of the extended 
 69.7   use period, at least 75 percent of the tax credit units contain 
 69.8   two or more bedrooms and at least one-third of the 75 percent 
 69.9   contain three or more bedrooms; or 
 69.10     (iii) substantial rehabilitation projects in neighborhoods 
 69.11  targeted by the city for revitalization; 
 69.12     (2) outside the metropolitan area, projects which meet a 
 69.13  locally identified housing need and which are in short supply in 
 69.14  the local housing market as evidenced by credible data submitted 
 69.15  with the application; 
 69.16     (3) projects that are not restricted to persons of a 
 69.17  particular age group and in which, for the term of the extended 
 69.18  use period, a percentage of the units are set aside and rented 
 69.19  to persons: 
 69.20     (i) with a serious and persistent mental illness as defined 
 69.21  in section 245.462, subdivision 20, paragraph (c); 
 69.22     (ii) with a developmental disability as defined in United 
 69.23  States Code, title 42, section 6001, paragraph (5), as amended 
 69.24  through December 31, 1990; 
 69.25     (iii) who have been assessed as drug dependent persons as 
 69.26  defined in section 254A.02, subdivision 5, and are receiving or 
 69.27  will receive care and treatment services provided by an approved 
 69.28  treatment program as defined in section 254A.02, subdivision 2; 
 69.29     (iv) with a brain injury as defined in section 256B.093, 
 69.30  subdivision 4, paragraph (a); or 
 69.31     (v) with permanent physical disabilities that substantially 
 69.32  limit one or more major life activities, if at least 50 percent 
 69.33  of the units in the project are accessible as provided under 
 69.34  Minnesota Rules, chapter 1340; 
 69.35     (4) projects, whether or not restricted to persons of a 
 69.36  particular age group, which preserve existing subsidized housing 
 70.1   which is subject to prepayment if the use of tax credits is 
 70.2   necessary to prevent conversion to market rate use; or 
 70.3      (5) projects financed by the Farmers Home Administration, 
 70.4   or its successor agency, which meet statewide distribution goals.
 70.5      (e) Before the date for applications for the second round, 
 70.6   the allocating agencies other than the agency shall return all 
 70.7   uncommitted and unallocated tax credits to the pool from which 
 70.8   they were allocated, along with copies of any allocation or 
 70.9   commitment.  In the second round, the agency shall allocate the 
 70.10  remaining credits from the regional pools to projects from the 
 70.11  respective regions.  
 70.12     (f) In the third round, all unallocated tax credits must be 
 70.13  transferred to a unified pool for allocation by the agency on a 
 70.14  statewide basis. 
 70.15     (g) Unused portions of the state ceiling for low-income 
 70.16  housing tax credits reserved to cities and counties for 
 70.17  allocation may be returned at any time to the agency for 
 70.18  allocation. 
 70.19     (h) If an allocating agency determines, at any time after 
 70.20  the initial commitment or allocation for a specific project, 
 70.21  that a project is no longer eligible for all or a portion of the 
 70.22  low-income housing tax credits committed or allocated to the 
 70.23  project, the credits must be transferred to the agency to be 
 70.24  reallocated pursuant to the procedures established in paragraphs 
 70.25  (e) to (g); provided that if the tax credits for which the 
 70.26  project is no longer eligible are from the current year's annual 
 70.27  ceiling and the allocating agency maintains a waiting list, the 
 70.28  allocating agency may continue to commit or allocate the credits 
 70.29  until not later than October 1, at which time any uncommitted 
 70.30  credits must be transferred to the agency. 
 70.31     Sec. 18.  [471.9997] [FEDERALLY ASSISTED RENTAL HOUSING; 
 70.32  IMPACT STATEMENT.] 
 70.33     At least 12 months before termination of participation in a 
 70.34  federally assisted rental housing program, including 
 70.35  project-based section 8 and section 236 rental housing, the 
 70.36  owner of the federally assisted rental housing must submit a 
 71.1   statement regarding the impact of termination on the residents 
 71.2   of the rental housing to the governing body of the local 
 71.3   government unit in which the housing is located.  The impact 
 71.4   statement must identify the number of units that will no longer 
 71.5   be subject to rent restrictions imposed by the federal program, 
 71.6   the estimated rents that will be charged as compared to rents 
 71.7   charged under the federal program, and actions the owner will 
 71.8   take to assist displaced tenants in obtaining other housing.  A 
 71.9   copy of the impact statement must be provided to each resident 
 71.10  of the affected building, the Minnesota housing finance agency, 
 71.11  and, if the property is located in the metropolitan area as 
 71.12  defined in section 473.121, subdivision 2, the metropolitan 
 71.13  council. 
 71.14     Sec. 19.  Minnesota Statutes 1996, section 474A.061, 
 71.15  subdivision 2a, is amended to read: 
 71.16     Subd. 2a.  [HOUSING POOL ALLOCATION.] (a) On the first 
 71.17  business day that falls on a Monday of the calendar year and the 
 71.18  first Monday in February, the commissioner shall allocate 
 71.19  available bonding authority in the housing pool to applications 
 71.20  received by the Monday of the previous week for residential 
 71.21  rental projects that are not restricted to persons who are 55 
 71.22  years of age or older and that meet the eligibility criteria 
 71.23  under section 474A.047, except that allocations may be made to 
 71.24  projects that are restricted to persons who are 55 years of age 
 71.25  or older if the project preserves existing federally assisted 
 71.26  rental housing.  Projects that preserve existing federally 
 71.27  assisted rental housing shall be allocated available bonding 
 71.28  authority in the housing pool prior to the allocation of 
 71.29  available bonding authority to other eligible residential rental 
 71.30  projects.  If an issuer that receives an allocation under this 
 71.31  paragraph does not issue obligations equal to all or a portion 
 71.32  of the allocation received within 120 days of the allocation or 
 71.33  returns the allocation to the commissioner, the amount of the 
 71.34  allocation is canceled and returned for reallocation through the 
 71.35  housing pool. 
 71.36     (b) After February 1, and through February 15, the 
 72.1   Minnesota housing finance agency may accept applications from 
 72.2   cities for single-family housing programs which meet program 
 72.3   requirements as follows:  
 72.4      (1) the housing program must meet a locally identified 
 72.5   housing need and be economically viable; 
 72.6      (2) the adjusted income of home buyers may not exceed the 
 72.7   greater of the agency's income limits or 80 percent of the area 
 72.8   median income as published by the Department of Housing and 
 72.9   Urban Development; 
 72.10     (3) house price limits may not exceed: 
 72.11     (i) the greater of agency house price limits or the federal 
 72.12  price limits for housing up to a maximum of $95,000; or 
 72.13     (ii) for a new construction affordability initiative, the 
 72.14  greater of 115 percent of agency house price limits or 90 
 72.15  percent of the median purchase price in the city for which the 
 72.16  bonds are to be sold up to a maximum of $95,000. 
 72.17     Data establishing the median purchase price in the city 
 72.18  must be included in the application by a city requesting house 
 72.19  price limits higher than the housing finance agency's house 
 72.20  price limits; and 
 72.21     (4) an application deposit equal to one percent of the 
 72.22  requested allocation must be submitted before the agency 
 72.23  forwards the list specifying the amounts allocated to the 
 72.24  commissioner under paragraph (c).  The agency shall submit the 
 72.25  city's application and application deposit to the commissioner 
 72.26  when requesting an allocation from the housing pool. 
 72.27     Applications by a consortium shall include the name of each 
 72.28  member of the consortium and the amount of allocation requested 
 72.29  by each member. 
 72.30     The Minnesota housing finance agency may accept 
 72.31  applications from June 15 through June 30 from cities for 
 72.32  single-family housing programs which meet program requirements 
 72.33  specified under clauses (1) to (4) if bonding authority is 
 72.34  available in the housing pool.  The agency must allot available 
 72.35  bonding authority.  For purposes of paragraphs (a) to (g), 
 72.36  "city" means a county or a consortium of local government units 
 73.1   that agree through a joint powers agreement to apply together 
 73.2   for single-family housing programs, and has the meaning given it 
 73.3   in section 462C.02, subdivision 6.  "Agency" means the Minnesota 
 73.4   housing finance agency.  
 73.5      (c) The total amount of allocation for mortgage bonds for 
 73.6   one city is limited to the lesser of:  (i) the amount requested, 
 73.7   or (ii) the product of the total amount available for mortgage 
 73.8   bonds from the housing pool, multiplied by the ratio of each 
 73.9   applicant's population as determined by the most recent estimate 
 73.10  of the city's population released by the state demographer's 
 73.11  office to the total of all the applicants' population, except 
 73.12  that each applicant shall be allocated a minimum of $100,000 
 73.13  regardless of the amount requested or the amount determined 
 73.14  under the formula in clause (ii).  If a city applying for an 
 73.15  allocation is located within a county that has also applied for 
 73.16  an allocation, the city's population will be deducted from the 
 73.17  county's population in calculating the amount of allocations 
 73.18  under this paragraph. 
 73.19     Upon determining the amount of each applicant's allocation, 
 73.20  the agency shall forward a list specifying the amounts allotted 
 73.21  to each application and application deposit checks to the 
 73.22  commissioner. 
 73.23     (d) The agency may issue bonds on behalf of participating 
 73.24  cities.  The agency shall request an allocation from the 
 73.25  commissioner for all applicants who choose to have the agency 
 73.26  issue bonds on their behalf and the commissioner shall allocate 
 73.27  the requested amount to the agency.  The agency may request an 
 73.28  allocation at any time after the first Monday in February and 
 73.29  through the last Monday in July, but may request an allocation 
 73.30  no later than the last Monday in July.  The commissioner shall 
 73.31  return any application deposit to a city that paid an 
 73.32  application deposit under paragraph (b), clause (4), but was not 
 73.33  part of the list forwarded to the commissioner under paragraph 
 73.34  (c). 
 73.35     (e) A city may choose to issue bonds on its own behalf or 
 73.36  through a joint powers agreement or may use bonding authority 
 74.1   for mortgage credit certificates and may request an allocation 
 74.2   from the commissioner.  If the total amount requested by all 
 74.3   applicants exceeds the amount available in the pool, the city 
 74.4   may not receive a greater allocation than the amount it would 
 74.5   have received under the list forwarded by the Minnesota housing 
 74.6   finance agency to the commissioner.  No city may request or 
 74.7   receive an allocation from the commissioner until the list under 
 74.8   paragraph (c) has been forwarded to the commissioner.  A city 
 74.9   must request an allocation from the commissioner no later than 
 74.10  14 days before the unified pool is created pursuant to section 
 74.11  474A.091, subdivision 1.  On and after the first Monday in 
 74.12  February and through the last Monday in July, no city may 
 74.13  receive an allocation from the housing pool which has not first 
 74.14  applied to the Minnesota housing finance agency.  The 
 74.15  commissioner shall allocate the requested amount to the city or 
 74.16  cities subject to the limitations under this paragraph.  
 74.17     If a city issues mortgage bonds from an allocation received 
 74.18  under this paragraph, the issuer must provide for the recycling 
 74.19  of funds into new loans.  If the issuer is not able to provide 
 74.20  for recycling, the issuer must notify the commissioner in 
 74.21  writing of the reason that recycling was not possible and the 
 74.22  reason the issuer elected not to have the Minnesota housing 
 74.23  finance agency issue the bonds.  "Recycling" means the use of 
 74.24  money generated from the repayment and prepayment of loans for 
 74.25  further eligible loans or for the redemption of bonds and the 
 74.26  issuance of current refunding bonds. 
 74.27     (f) No entitlement city or county or city in an entitlement 
 74.28  county may apply for or be allocated authority to issue bonds or 
 74.29  use mortgage credit certificates from the housing pool. 
 74.30     (g) A city that does not use at least 50 percent of their 
 74.31  allotment by the date applications are due for the first 
 74.32  allocation that is made from the housing pool for single-family 
 74.33  housing programs in the immediately succeeding calendar year may 
 74.34  not apply to the housing pool for a single-family mortgage bond 
 74.35  or mortgage credit certificate program allocation or receive an 
 74.36  allotment from the housing pool in the succeeding two calendar 
 75.1   years.  Each local government unit in a consortium must meet the 
 75.2   requirements of this paragraph. 
 75.3      Sec. 20.  Laws 1997, Second Special Session chapter 2, 
 75.4   section 4, subdivision 3, is amended to read: 
 75.5   Subd. 3.  Community Rehabilitation
 75.6   Fund Program                                          4,500,000
 75.7   This is a one-time appropriation from 
 75.8   the general fund for the community 
 75.9   rehabilitation fund program under 
 75.10  Minnesota Statutes, section 462A.206.  
 75.11  Of this amount, up to $500,000 is 
 75.12  available for grants for damages 
 75.13  occurring after June 10, 1997, in an 
 75.14  area designated under a presidential 
 75.15  declaration of major 
 75.16  disaster.  Pursuant to a plan approved 
 75.17  by the agency, grants or loans may be 
 75.18  made without regard to the income of 
 75.19  the borrower in communities where at 
 75.20  least 20 percent of the housing stock 
 75.21  is subject to acquisition and buyout as 
 75.22  a result of the 1997 flooding.  The 
 75.23  grants or loans made without regard to 
 75.24  the borrower's income shall not exceed 
 75.25  the maximum grant or loan amount 
 75.26  available to buyout households.  This 
 75.27  appropriation is available until 
 75.28  expended.