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; providing for a municipal reimbursement; 
  1.5             requiring reports; establishing pilot projects; 
  1.6             providing exemptions from grant limits; defining 
  1.7             terms; setting requirements for wastewater financial 
  1.8             assistance; modifying loan criteria; modifying 
  1.9             supplemental assistance provisions; establishing a 
  1.10            revolving loan fund; modifying warranty provisions; 
  1.11            providing warranty information; modifying collection 
  1.12            agency 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; modifying labor provisions for city 
  1.17            attorneys; modifying reinvestment program provisions; 
  1.18            extending boundaries; creating and changing programs 
  1.19            and projects; modifying wage rate study provisions; 
  1.20            imposing terms and conditions; enacting the Uniform 
  1.21            Unclaimed Property Act of 1995; making conforming 
  1.22            changes; amending Minnesota Statutes 1996, sections 
  1.23            16A.45, subdivisions 1 and 4; 16B.06, subdivision 2; 
  1.24            16B.08, subdivision 7; 16B.65, subdivision 7; 80C.03; 
  1.25            115C.09, by adding a subdivision; 116.182, subdivision 
  1.26            1, and by adding a subdivision; 116J.415, subdivision 
  1.27            5; 116J.553, subdivision 2; 116L.03, subdivision 5; 
  1.28            181.64; 181.65; 198.231; 276.19, subdivision 4; 
  1.29            308A.711, subdivisions 1 and 2; 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; 332.32; 
  1.32            356.65, subdivision 2; 383B.79, subdivision 1, and by 
  1.33            adding a subdivision; 446A.072, subdivisions 2 and 4; 
  1.34            462A.05, subdivision 14; 462A.21, by adding a 
  1.35            subdivision; 462A.222, subdivision 3; 469.303; 
  1.36            474A.061, subdivision 2a; 541.051, subdivisions 1 and 
  1.37            4; and 624.68; Minnesota Statutes 1997 Supplement, 
  1.38            sections 16A.6701, subdivision 1; 115C.09, subdivision 
  1.39            3f; 116J.421, subdivision 1, and by adding a 
  1.40            subdivision; 179A.03, subdivision 7; 268.07, 
  1.41            subdivision 2, as amended; 462A.05, subdivision 39; 
  1.42            and 462A.205, subdivisions 1, 2, 5, 6, and 9; Laws 
  1.43            1997, chapter 200, article 1, section 12, subdivision 
  1.44            2, section 33, subdivision 1, and by adding 
  1.45            subdivisions; Laws 1997, Second Special Session 
  1.46            chapter 2, section 4, subdivision 3; proposing coding 
  2.1             for new law in Minnesota Statutes, chapters 116J; 181; 
  2.2             327A; 345; and 471; repealing Minnesota Statutes 1996, 
  2.3             sections 345.31; 345.32; 345.33; 345.34; 345.35; 
  2.4             345.36; 345.37; 345.38; 345.381; 345.39; 345.40; 
  2.5             345.41; 345.42; 345.43; 345.44; 345.45; 345.46; 
  2.6             345.47; 345.485; 345.49; 345.50; 345.51; 345.515; 
  2.7             345.52; 345.525; 345.53; 345.54; 345.55; 345.56; 
  2.8             345.57; 345.58; 345.59; and 345.60; Minnesota Statutes 
  2.9             1997 Supplement, sections 345.48; and 446A.072, 
  2.10            subdivision 4a; Laws 1991, chapter 275, section 3. 
  2.11  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  2.12                             ARTICLE 1
  2.13                        ECONOMIC DEVELOPMENT 
  2.14  Section 1.  [ECONOMIC DEVELOPMENT APPROPRIATIONS.] 
  2.15     The sums in the columns marked "APPROPRIATIONS" are 
  2.16  appropriated from the general fund, or another named fund, to 
  2.17  the agencies and for the purposes specified in this article, to 
  2.18  be available for the fiscal years indicated for each purpose.  
  2.19  The figures "1998" and "1999," where used in this act, mean that 
  2.20  the appropriation or appropriations listed under them are 
  2.21  available for the year ending June 30, 1998, or June 30, 1999, 
  2.22  respectively.  The term "first year" means the fiscal year 
  2.23  ending June 30, 1998, and "second year" means the fiscal year 
  2.24  ending June 30, 1999. 
  2.25                          SUMMARY BY FUND 
  2.26                                           1998           1999 
  2.27  General                              $   409,000    $38,742,000 
  2.28  Workers' Compensation Fund                50,000        (50,000)
  2.29  Special Revenue Fund                       -0-          150,000 
  2.30  TOTAL                                $   459,000    $38,842,000 
  2.31                                             APPROPRIATIONS 
  2.32                                         Available for the Year 
  2.33                                             Ending June 30 
  2.34                                            1998         1999 
  2.35  Sec. 2.  DEPARTMENT OF TRADE AND
  2.36  ECONOMIC DEVELOPMENT               $      -0-     $6,210,000
  2.37  The amounts that may be spent from this 
  2.38  appropriation for each purpose is 
  2.39  specified in the following paragraphs. 
  2.40  (a) Millennium Screen Writing Festival 
  2.41  $100,000 in 1999 is for planning for 
  2.42  the millennium screen writing festival, 
  2.43  and to enhance the film making industry 
  2.44  in Minnesota by providing grants to 
  2.45  local screenwriters.  Of this amount, 
  2.46  $50,000 is added to the department's 
  3.1   budget base. 
  3.2   (b) Tourism Advertising and Marketing
  3.3   $950,000 in 1999 is for additional 
  3.4   tourism advertising, is available 
  3.5   immediately, is added to the 
  3.6   appropriation for tourism provided in 
  3.7   Laws 1997, chapter 200, article 1, 
  3.8   section 2, subdivision 4, and of this 
  3.9   amount, $900,000 is added to the 
  3.10  department's budget base.  Of this 
  3.11  amount, $50,000 is for a study on the 
  3.12  feasibility and economic impact of a 
  3.13  Great Rivers of the World Aquarium in 
  3.14  St. Paul on the Mississippi river. 
  3.15  (c) Minnesota Film Board 
  3.16  $3,300,000 in 1999 is for transfer to 
  3.17  the revolving loan fund under Minnesota 
  3.18  Statutes, section 116J.545.  This is a 
  3.19  one-time appropriation and is not added 
  3.20  to the department's budget base. 
  3.21  (d) Duluth Technology Center 
  3.22  $200,000 in 1999 is for a grant to the 
  3.23  Duluth Technology Center to continue 
  3.24  development of software business 
  3.25  opportunities with particular attention 
  3.26  to encouraging location of foreign 
  3.27  software companies in northeastern 
  3.28  Minnesota.  This is a one-time 
  3.29  appropriation and is not added to the 
  3.30  department's budget base. 
  3.31  (e) Chatfield Brass Band Music Lending 
  3.32  Library 
  3.33  $60,000 in 1999 is for a grant to the 
  3.34  Chatfield brass band music lending 
  3.35  library.  The money must be used for 
  3.36  computer hardware and software to 
  3.37  catalog the music collection and create 
  3.38  a Web site.  This is a one-time 
  3.39  appropriation and must not be added to 
  3.40  the agency's budget base. 
  3.41  (f) Neighborhood Development Center, Inc.
  3.42  $90,000 in 1999 is for the purpose of 
  3.43  making a grant to the Neighborhood 
  3.44  Development Center, Inc.  The center 
  3.45  shall use the grant for the purpose of 
  3.46  expanding and improving its 
  3.47  neighborhood and ethnic-based 
  3.48  entrepreneur training, lending, and 
  3.49  support programs in the poorest 
  3.50  communities of Minneapolis and St. 
  3.51  Paul.  This appropriation is added to 
  3.52  the department's budget base. 
  3.53  (g) Public Arts St. Paul 
  3.54  $50,000 in 1999 is for a grant to 
  3.55  Public Arts Saint Paul for planning for 
  3.56  public art projects throughout the city 
  3.57  of St. Paul.  This is a one-time 
  3.58  appropriation and is not added to the 
  3.59  department's budget base. 
  4.1   (h) City of St. Paul 
  4.2   $300,000 in 1999 is for a grant to the 
  4.3   city of St. Paul.  Of this amount, 
  4.4   $250,000 is for the completion of 
  4.5   renovations to the University of 
  4.6   Minnesota Centennial Showboat to be 
  4.7   docked at Harriet Island.  Of this 
  4.8   amount, $50,000 is for a study on the 
  4.9   relocation and expansion of the St. 
  4.10  Paul Farmers' Market at a site that 
  4.11  will interact with the Concord Street 
  4.12  business area.  The study will consider 
  4.13  growth needs, job development 
  4.14  opportunities, and the creation of a 
  4.15  state-approved commercial kitchen.  
  4.16  This is a one-time appropriation and is 
  4.17  not added to the department's budget 
  4.18  base. 
  4.19  (i) Mississippi River Parkway 
  4.20  Commission 
  4.21  $15,000 in 1999 is for a grant to the 
  4.22  Mississippi River Parkway Commission of 
  4.23  Minnesota for the Smithsonian River of 
  4.24  Song community promotion and Great 
  4.25  River Road Ramble.  This is a one-time 
  4.26  appropriation and is not added to the 
  4.27  department's budget base. 
  4.28  (j) Biomass Energy Project 
  4.29  $800,000 in 1999 is for a grant to the 
  4.30  Granite Falls economic development 
  4.31  authority for the development of a 
  4.32  farm-grown, closed loop biomass energy 
  4.33  project.  The grant may be used to 
  4.34  manage the development, seek financing 
  4.35  and equity participation, reimburse 
  4.36  costs of third-party due diligence 
  4.37  exercises, and perform environmental 
  4.38  review and permitting.  This is a 
  4.39  one-time appropriation and is not added 
  4.40  to the department's budget base. 
  4.41  (k) Fairmont Opera House 
  4.42  $200,000 in 1999 is for accessibility 
  4.43  improvements for the Fairmont Opera 
  4.44  House.  This is a one-time 
  4.45  appropriation and is not added to the 
  4.46  department's budget base. 
  4.47  (l) Heritage Breed Chickens 
  4.48  $25,000 in 1999 is for grants to county 
  4.49  fairs to provide premiums and prizes 
  4.50  for heritage breeds of chickens.  This 
  4.51  appropriation may also be used to 
  4.52  provide participating 4H and other 
  4.53  youth groups up to 25 free nursery 
  4.54  hatchlings.  This appropriation is 
  4.55  added to the department's budget base. 
  4.56  (m) Watonwan County Trail System 
  4.57  $10,000 in 1999 is for a grant to 
  4.58  Watonwan county for preplanning of the 
  4.59  Watonwan county trail system.  This is 
  4.60  a one-time appropriation and is not 
  5.1   added to the department's budget base.  
  5.2   (n) Wyoming and Chisago City Business Park
  5.3   $10,000 in 1999 is for a grant to the 
  5.4   joint powers board established under 
  5.5   Minnesota Statutes, section 471.59, by 
  5.6   the town of Wyoming and the city of 
  5.7   Chisago City for the purpose of 
  5.8   establishing a joint commercial and 
  5.9   business park.  The grant must be used 
  5.10  to pay the costs of environmental, 
  5.11  transportation, job creation and 
  5.12  associated studies, and preparation of 
  5.13  a site plan related to the park as well 
  5.14  as legal, engineering, administrative, 
  5.15  and similar costs associated with the 
  5.16  studies.  Establishment of the park 
  5.17  would serve as a pilot project to 
  5.18  determine the feasibility and benefit 
  5.19  of developing a coordinated site for 
  5.20  business, educational, and recreational 
  5.21  facilities within an area, a portion of 
  5.22  which has been determined to be 
  5.23  undesirable for the location of 
  5.24  residential development because of the 
  5.25  presence of power lines.  This is a 
  5.26  one-time appropriation and is not added 
  5.27  to the department's budget base.  
  5.28  (o) Minnesota Trade Office 
  5.29  The appropriation in Laws 1997, chapter 
  5.30  200, article 1, section 2, subdivision 
  5.31  3, to the department of trade and 
  5.32  economic development for the Minnesota 
  5.33  trade office for a multifaceted program 
  5.34  to develop trade with China is 
  5.35  available until June 30, 1999. 
  5.36  (p) Circulator Vehicle Pilot Project 
  5.37  $50,000 in 1999 is for a grant to 
  5.38  Hennepin county for the planning and 
  5.39  development, in cooperation with a task 
  5.40  force created by the city of 
  5.41  Minneapolis, of a circulator vehicle 
  5.42  pilot project for the purposes of: 
  5.43  (1) connecting the Minneapolis 
  5.44  convention center and other major 
  5.45  locations in downtown Minneapolis with 
  5.46  multicultural tourist, heritage, and 
  5.47  cultural resources in the Phillips, 
  5.48  Stevens Square, Whittier, Central, 
  5.49  Powderhorn, Seward, Loring Park, and 
  5.50  Cedar-Riverside neighborhoods in 
  5.51  Minneapolis and contributing to the 
  5.52  revitalization of those neighborhoods 
  5.53  by increasing urban tourism; 
  5.54  (2) generating additional spending by 
  5.55  expanding the selection of tourism 
  5.56  activities provided by the convention 
  5.57  center and downtown Minneapolis; and 
  5.58  (3) promoting state and local tourism 
  5.59  activities which provide a richer, more 
  5.60  culturally diverse experience of 
  5.61  Minneapolis urban life as an 
  5.62  alternative to larger, more commercial 
  6.1   attractions.  This is a one-time 
  6.2   appropriation and is not added to the 
  6.3   department's budget base.  
  6.4   (q) River of Song Project
  6.5   $50,000 in 1999 is for a grant to the 
  6.6   Mississippi River Parkway Commission of 
  6.7   Minnesota for the state's share of the 
  6.8   Smithsonian's River of Song Project.  
  6.9   This is a one-time appropriation and is 
  6.10  not added to the department's budget 
  6.11  base. 
  6.12  Sec. 3.  MINNESOTA TECHNOLOGY, INC.       - 0 -         200,000
  6.13  $200,000 in 1999 is for transfer to the 
  6.14  Minnesota Technology, Inc. fund for a 
  6.15  grant to Minnesota Project Innovation, 
  6.16  Inc.  Of this amount, $170,000 is to 
  6.17  fund two business information and 
  6.18  technology centers, with one to be 
  6.19  located at Metropolitan state 
  6.20  university, and one located outside the 
  6.21  Twin Cities metropolitan area.  The 
  6.22  remaining $30,000 is for a grant to the 
  6.23  Fairmont Interactive TV, Inc., to be 
  6.24  used for the development of interactive 
  6.25  educational television for area youth.  
  6.26  This is a one-time appropriation and is 
  6.27  not added to the agency's budget base.  
  6.28  Sec. 4.  MINNESOTA WORLD TRADE CENTER
  6.29  CORPORATION                              155,000        -0-  
  6.30  $155,000 is appropriated in 1998 for 
  6.31  full and final payments of the 
  6.32  remaining 1988 debt of the Minnesota 
  6.33  World Trade Center Corporation which 
  6.34  was incurred for conference center 
  6.35  furniture, fixtures, and equipment.  
  6.36  This appropriation is available 
  6.37  immediately.  This is a one-time 
  6.38  appropriation and is not added to the 
  6.39  department's budget base. 
  6.40  Sec. 5.  DEPARTMENT OF ECONOMIC
  6.41  SECURITY                                  -0-         9,310,000 
  6.42  The amounts that may be spent from this 
  6.43  appropriation for each purpose are 
  6.44  specified in the following paragraphs. 
  6.45  (a) State Services for the Blind
  6.46  $1,400,000 in 1999 to the State 
  6.47  Services for the Blind to update radio 
  6.48  talking book receivers and create a 
  6.49  digital infrastructure for the 
  6.50  communication center.  This is a 
  6.51  one-time appropriation and must be 
  6.52  matched dollar for dollar by a private 
  6.53  nonprofit organization for the same 
  6.54  purpose.  The commissioner of economic 
  6.55  security must certify to the 
  6.56  commissioner of finance that the match 
  6.57  has been received before this 
  6.58  appropriation is released.  The office 
  6.59  of technology must approve the digital 
  6.60  infrastructure and updated receivers as 
  6.61  appropriate technology for their 
  7.1   purposes prior to their purchase.  This 
  7.2   appropriation is available until June 
  7.3   30, 2000. 
  7.4   (b) Vocational Rehabilitation
  7.5   $1,000,000 in 1999 to the vocational 
  7.6   rehabilitation program to be added to 
  7.7   the appropriation for rehabilitation 
  7.8   services provided in Laws 1997, chapter 
  7.9   200, article 1, section 5, subdivision 
  7.10  2, and is added to the department's 
  7.11  budget base.  
  7.12  (c) Regional Job Market Analysis
  7.13  $200,000 in 1999 is to retain the 
  7.14  services of regional job market 
  7.15  analysts.  This appropriation is added 
  7.16  to the department's budget base. 
  7.17  (d) Alien Labor Certification
  7.18  $160,000 in 1999 is to administer the 
  7.19  alien labor certification program.  
  7.20  This is a one-time appropriation and is 
  7.21  not added to the department's budget 
  7.22  base. 
  7.23  (e) Youth Intervention Programs 
  7.24  $750,000 in 1999 is for grants to fund 
  7.25  youth intervention programs under 
  7.26  Minnesota Statutes, section 268.30, and 
  7.27  is in addition to the appropriation 
  7.28  made by Laws 1997, chapter 200, article 
  7.29  1, section 5, subdivision 4.  This is a 
  7.30  one-time appropriation and is not added 
  7.31  to the department's budget base.  It is 
  7.32  available until June 30, 1999.  
  7.33  (f) Youthbuild 
  7.34  $400,000 in 1999 is for the Youthbuild 
  7.35  program under Minnesota Statutes, 
  7.36  sections 268.361 to 268.366.  A 
  7.37  Minnesota Youthbuild program funded 
  7.38  under this section as authorized in 
  7.39  Minnesota Statutes, sections 268.361 to 
  7.40  268.366, qualifies as an approved 
  7.41  training program under Minnesota Rules, 
  7.42  part 5200.0930, subpart 1.  The 
  7.43  appropriation is in addition to the 
  7.44  appropriation made by Laws 1997, 
  7.45  chapter 200, article 1, section 5, 
  7.46  subdivision 4, and of this amount 
  7.47  $247,000 is added to the department's 
  7.48  budget base.  
  7.49  (g) Summer Youth Employment
  7.50  $3,200,000 in 1999 is for summer youth 
  7.51  employment programs.  This is a 
  7.52  one-time appropriation and is available 
  7.53  immediately and is available until June 
  7.54  30, 1999. 
  7.55  (h) Nontraditional Careers for Women 
  7.56  $250,000 in 1999 is a one-time 
  7.57  appropriation for grants to 
  8.1   organizations for programs that 
  8.2   encourage and assist women to enter 
  8.3   nontraditional careers in the trades 
  8.4   and in manual and technical 
  8.5   occupations.  To be eligible for a 
  8.6   grant under this section, a program 
  8.7   must include:  (1) outreach to girls 
  8.8   and women through public and private 
  8.9   elementary, junior high and high 
  8.10  schools, appropriate community 
  8.11  organizations, or existing state and 
  8.12  county employment and training 
  8.13  programs.  The outreach will consist of 
  8.14  general information concerning 
  8.15  opportunities for women in the trades, 
  8.16  manual, and technical occupations, 
  8.17  including specific fields where worker 
  8.18  shortages exist; and specific 
  8.19  information about training programs 
  8.20  offered.  The outreach may include 
  8.21  printed or recorded information, 
  8.22  presentations to women and girls, 
  8.23  hands-on experiences for girls, or 
  8.24  ongoing contact with appropriate staff 
  8.25  and volunteers; or (2) assistance for 
  8.26  women to enter careers in the trades, 
  8.27  technical, and manual occupations as 
  8.28  follows:  (a) training designed to 
  8.29  prepare women to succeed in 
  8.30  nontraditional occupations, conducted 
  8.31  by the grantee or in collaboration with 
  8.32  another institution.  The training 
  8.33  shall cover the knowledge and skills 
  8.34  required for the trade, information 
  8.35  about on-the-job realities for women in 
  8.36  the particular trade, physical strength 
  8.37  and stamina training as needed to 
  8.38  increase women's eligibility for jobs 
  8.39  that require physical strength, 
  8.40  opportunities for developing workplace 
  8.41  problem solving skills, and information 
  8.42  about the current and projected future 
  8.43  job market and likely career paths; (b) 
  8.44  assistance with child care and 
  8.45  transportation during training, job 
  8.46  search, and the first two months of 
  8.47  employment for low-income women who do 
  8.48  not have other coverage for these 
  8.49  expenses; (c) job placement assistance 
  8.50  during and for at least two years after 
  8.51  completion of the training program; and 
  8.52  (d) job retention support.  This may 
  8.53  take the form of mentorship programs, 
  8.54  support groups, or ongoing staff 
  8.55  contact for at least the first year of 
  8.56  placement in a job after completion of 
  8.57  training, and should include access to 
  8.58  job-related information, assistance 
  8.59  with workplace issues resolution, and 
  8.60  access to advocacy. 
  8.61  Programs must be accessible to MFIP-S 
  8.62  participants and other low-income 
  8.63  women.  Factors that contribute to 
  8.64  accessibility include:  (1) 
  8.65  affordability or financial aid 
  8.66  available for tuition and supplies; (2) 
  8.67  geographic proximity to low-income 
  8.68  neighborhoods, child care, and 
  8.69  transportation routes; and (3) 
  8.70  flexibility of hours per week and weeks 
  9.1   of duration of training programs to be 
  9.2   compatible with family needs and the 
  9.3   need for employment during training. 
  9.4   All state-funded employment and 
  9.5   training programs must include 
  9.6   information about opportunities for 
  9.7   women in nontraditional careers in the 
  9.8   trades, manual, and technical 
  9.9   occupations. 
  9.10  (i) Extended Employment Welfare-to-Work 
  9.11  $650,000 in 1999 is a one-time 
  9.12  appropriation and is not added to the 
  9.13  department's budget base to provide 
  9.14  extended employment training for 
  9.15  welfare recipients through the 
  9.16  welfare-to-work extended employment 
  9.17  partnership program under Minnesota 
  9.18  Statutes, section 268A.15.  Of this 
  9.19  appropriation, up to five percent may 
  9.20  be used for administrative costs. 
  9.21  (j) School to Work 
  9.22  $200,000 in 1999 is to develop a pilot 
  9.23  project that will electronically link 
  9.24  four department workforce centers with 
  9.25  the secondary schools in the school 
  9.26  district in which the workforce center 
  9.27  is located for the purpose of providing 
  9.28  secondary students and school 
  9.29  counselors with labor market 
  9.30  information and job-seeking skills 
  9.31  expertise to assist transition from 
  9.32  school to work.  The commissioner shall 
  9.33  create a position at each of the four 
  9.34  workforce centers to implement this 
  9.35  project.  The commissioner shall report 
  9.36  on the progress of the pilot project to 
  9.37  the legislature by February 1, 1999.  
  9.38  The commissioner shall make a final 
  9.39  report on the pilot projects to the 
  9.40  legislature by March 1, 2000.  This is 
  9.41  a one-time appropriation and is not 
  9.42  added to the agency's budget base. 
  9.43  (k) Advocating Change Together, Inc. 
  9.44  $126,000 in 1999 is for a grant to 
  9.45  Advocating Change Together, Inc. 
  9.46  (ACT).  The grant must be used for (1) 
  9.47  the training and empowerment of 
  9.48  individuals with developmental and 
  9.49  other mental health disabilities, 
  9.50  including mental illnesses that are 
  9.51  serious and persistent, that are 
  9.52  chronic, or that pose a risk of 
  9.53  hospitalization; (2) the maintenance of 
  9.54  related data; or (3) technical 
  9.55  assistance for work advancement or 
  9.56  additional workforce training.  This is 
  9.57  a one-time appropriation and is not 
  9.58  added to the department's budget base. 
  9.59  (l) Displaced Homemakers 
  9.60  $600,000 in 1999 is for displaced 
  9.61  homemaker programs under Minnesota 
  9.62  Statutes, section 268.96, and is a 
  9.63  one-time appropriation and not added to 
 10.1   the department's budget base.  Of this 
 10.2   appropriation, $200,000 is for grants 
 10.3   to operate a community work empowerment 
 10.4   support group demonstration project and 
 10.5   is in addition to the appropriation for 
 10.6   that purpose contained in Laws 1997, 
 10.7   chapter 200, article 1, section 4, 
 10.8   subdivision 4.  Of this appropriation, 
 10.9   $400,000 is for the costs of training 
 10.10  recommended for clients of displaced 
 10.11  homemaker programs under Minnesota 
 10.12  Statutes, section 268.96. 
 10.13  (m) Fund Transfer 
 10.14  Notwithstanding Minnesota Statutes, 
 10.15  section 268.022, subdivision 2, the 
 10.16  commissioner of finance shall transfer 
 10.17  $300,000 to the general fund in fiscal 
 10.18  year 1999 from the fund established in 
 10.19  Minnesota Statutes, section 268.022. 
 10.20  (n) Centers for Independent Living 
 10.21  $300,000 in 1999 is for centers for 
 10.22  independent living.  This appropriation 
 10.23  is added to the department's budget 
 10.24  base.  The department shall allocate 
 10.25  this appropriation among the centers 
 10.26  equally, and shall not consider what 
 10.27  federal funds may be available to a 
 10.28  center in determining the allocations. 
 10.29  (o) Wage Rate Study
 10.30  $74,000 in 1999 is for the wage rate 
 10.31  study in sections 81 to 84.  This is a 
 10.32  one-time appropriation and is not added 
 10.33  to the department's budget base. 
 10.34  Sec. 6.  MINNESOTA HOUSING 
 10.35  FINANCE AGENCY                             -0-       20,135,000
 10.36  The amounts that may be spent from this 
 10.37  appropriation for certain programs are 
 10.38  specified below. 
 10.39  This appropriation is for transfer to 
 10.40  the housing development fund for the 
 10.41  programs specified.  Except as 
 10.42  otherwise indicated, this transfer is 
 10.43  part of the agency's budget base. 
 10.44  (a) Affordable Rental Investment Fund
 10.45  $13,000,000 in 1999 is for the 
 10.46  affordable rental investment fund 
 10.47  program under Minnesota Statutes, 
 10.48  section 462A.21, subdivision 8b.  Of 
 10.49  this amount, $1,000,000 is a one-time 
 10.50  appropriation and is not added to the 
 10.51  agency's budget base.  The agency shall 
 10.52  allocate $3,000,000 of these funds 
 10.53  according to the geographic 
 10.54  distribution requirements in the 
 10.55  appropriation for the affordable rental 
 10.56  investment program in Laws 1997, 
 10.57  chapter 200, article 1, section 6.  
 10.58  Of the amount appropriated to the 
 10.59  affordable rental investment fund 
 11.1   program, $10,000,000 is to finance the 
 11.2   acquisition, rehabilitation, and debt 
 11.3   restructuring of federally assisted 
 11.4   rental property and for making equity 
 11.5   take-out loans under Minnesota 
 11.6   Statutes, section 462A.05, subdivision 
 11.7   39.  The owner of the rental property 
 11.8   must agree to participate in the 
 11.9   applicable federally assisted housing 
 11.10  program and to extend any existing 
 11.11  low-income affordability restrictions 
 11.12  on the housing for the maximum term 
 11.13  permitted.  The owner must also enter 
 11.14  into an agreement that gives local 
 11.15  units of government, housing and 
 11.16  redevelopment authorities, and 
 11.17  nonprofit housing organizations the 
 11.18  right of first refusal if the rental 
 11.19  property is offered for sale.  Priority 
 11.20  must be given to properties with the 
 11.21  longest remaining term under an 
 11.22  agreement for federal rental 
 11.23  assistance.  Priority must also be 
 11.24  given among comparable rental housing 
 11.25  developments to developments that are 
 11.26  or will be owned by a local government 
 11.27  unit, a housing and redevelopment 
 11.28  authority, or a nonprofit housing 
 11.29  organization. 
 11.30  (b) Family Homeless Prevention
 11.31  and Assistance Program
 11.32  $1,000,000 in 1999 is for the family 
 11.33  homeless prevention and assistance 
 11.34  program under Minnesota Statutes, 
 11.35  section 462A.204 and is added to the 
 11.36  appropriation for this program in Laws 
 11.37  1997, chapter 200, article 1, section 6.
 11.38  (c) Community Rehabilitation Fund
 11.39  $5,000,000 in 1999 is for the community 
 11.40  rehabilitation program, under Minnesota 
 11.41  Statutes, section 462A.206.  
 11.42  Notwithstanding section 462A.206, this 
 11.43  appropriation shall be used to provide 
 11.44  housing for families and persons with 
 11.45  incomes less than or equal to 80 
 11.46  percent of the Twin Cities metropolitan 
 11.47  area median income applied statewide.  
 11.48  The agency must give preference to 
 11.49  economically viable projects in which 
 11.50  there is a contribution from nonstate 
 11.51  sources.  Of this amount, the agency 
 11.52  may use up to $500,000 to fund projects 
 11.53  in cities of the first class if the 
 11.54  projects use innovative urban design 
 11.55  elements, comprehensive community 
 11.56  planning, or help leverage federal 
 11.57  funds from the federal home ownership 
 11.58  zone program.  Of this amount, 
 11.59  $3,000,000 is a one-time appropriation 
 11.60  and is not added to the agency's budget 
 11.61  base. 
 11.62  (d) Home Ownership Counseling
 11.63  $70,000 in 1999 is for full-cycle home 
 11.64  ownership and purchase-rehabilitation 
 11.65  lending initiatives under Minnesota 
 12.1   Statutes, section 462A.209.  This is a 
 12.2   one-time appropriation and is not added 
 12.3   to the agency's budget base.  This 
 12.4   appropriation must be used to make a 
 12.5   grant to a statewide organization that 
 12.6   advocates on behalf of persons with 
 12.7   developmental disabilities or related 
 12.8   conditions.  The grant must be used to 
 12.9   provide prepurchase and postpurchase 
 12.10  counseling to persons with disabilities 
 12.11  who are participating in the Fannie Mae 
 12.12  Homechoice demonstration project and 
 12.13  other projects designed to encourage 
 12.14  home ownership among persons with 
 12.15  disabilities. 
 12.16  (e) Mental Illness/Rental Assistance 
 12.17  $1,000,000 in 1999 is for the purposes 
 12.18  of the rental housing assistance 
 12.19  program for persons with a mental 
 12.20  illness or families with an adult 
 12.21  member with a mental illness, under 
 12.22  Minnesota Statutes, section 462A.2097. 
 12.23  (f) Nonprofit Capacity Building Grants 
 12.24  $65,000 in 1999 is for nonprofit 
 12.25  capacity building grants under 
 12.26  Minnesota Statutes, section 462A.21, 
 12.27  subdivision 3b.  This appropriation is 
 12.28  for grants to supplement resources from 
 12.29  the corporation for national service in 
 12.30  support of placement of VISTA 
 12.31  volunteers with nonprofit housing 
 12.32  agencies. 
 12.33  (g) Chemical Sensitivity Grants or Loans 
 12.34  The agency may use up to $65,000 of the 
 12.35  fiscal year 1999 appropriation for the 
 12.36  housing trust fund in Laws 1997, 
 12.37  chapter 200, article 1, section 6, for 
 12.38  grants or loans for housing for 
 12.39  households that include a member 
 12.40  diagnosed with chemical sensitivity. 
 12.41  (h) Administrative Spending Limit
 12.42  Notwithstanding Laws 1997, chapter 200, 
 12.43  article 1, section 6, the spending 
 12.44  limit on cost of general administration 
 12.45  of housing finance agency programs is 
 12.46  $11,684,000 in fiscal year 1998 and 
 12.47  $13,278,000 in fiscal year 1999. 
 12.48  Sec. 7.  DEPARTMENT OF COMMERCE           -0-           297,000 
 12.49                Summary by Fund
 12.50  General                   -0-         147,000
 12.51  Special Revenue Fund      -0-         150,000
 12.52  $22,000 in 1999 is from the general 
 12.53  fund for implementation of the mortgage 
 12.54  originator and servicer regulation 
 12.55  program established in Minnesota 
 12.56  Statutes, chapter 58.  This is added to 
 12.57  the department's budget base.  
 13.1   $125,000 in 1999 is from the general 
 13.2   fund for the healthy homes pilot 
 13.3   project established in section 25.  
 13.4   This is a one-time appropriation and is 
 13.5   not added to the department's budget 
 13.6   base. 
 13.7   $150,000 in 1999 is from the 
 13.8   contractor's recovery account in the 
 13.9   special revenue fund under Minnesota 
 13.10  Statutes 1996, section 326.975, 
 13.11  subdivision 1, and of this amount, 
 13.12  $50,000 is added to the department's 
 13.13  budget base.  Of this amount, $50,000 
 13.14  is to provide information to consumers 
 13.15  on residential construction issues.  Of 
 13.16  this amount, $100,000 is for a grant to 
 13.17  the University of Minnesota department 
 13.18  of wood and paper science to complete a 
 13.19  field assessment of a representative 
 13.20  sample of new buildings, including 
 13.21  low-income residential housing, to 
 13.22  determine their performance relative to 
 13.23  the existing and proposed energy code 
 13.24  requirements. 
 13.25  Sec. 8.  LABOR AND INDUSTRY               -0-           100,000
 13.26  $100,000 in 1999 is for development of 
 13.27  the employee rights brochure, required 
 13.28  in Minnesota Statutes, section 181.636, 
 13.29  subdivision 2, and to develop and 
 13.30  implement a public awareness campaign 
 13.31  in consultation with the councils 
 13.32  created under Minnesota Statutes, 
 13.33  sections 3.922, 3.9223, 3.9225, and 
 13.34  3.9226, to educate employees and 
 13.35  employers on their rights and duties 
 13.36  under Minnesota Statutes, section 
 13.37  181.636, and chapters 177 and 181.  The 
 13.38  commissioner shall report to the 
 13.39  legislature by January 15, 2000, on the 
 13.40  results of the campaign.  Of this 
 13.41  appropriation, $81,000 is added to the 
 13.42  department's budget base. 
 13.43  Sec. 9.  MEDIATION SERVICES BUREAU          -0-          40,000 
 13.44  $40,000 in 1999 is to cover initial 
 13.45  costs of providing dispute resolution, 
 13.46  mediation, and arbitration services 
 13.47  related to development and review of 
 13.48  community-based comprehensive plans 
 13.49  pursuant to Laws 1997, chapter 202, 
 13.50  articles 4, 5, and 6, and from 
 13.51  objections to annexations proposed 
 13.52  under Minnesota Statutes, chapter 414.  
 13.53  This is a one-time appropriation and is 
 13.54  not added to the agency's permanent 
 13.55  budget base. 
 13.56  On or before January 15, 1999, the 
 13.57  commissioner must provide to the 
 13.58  governor; the chair of the senate 
 13.59  committee on jobs, energy, and 
 13.60  community development; and the chair of 
 13.61  the house economic development finance 
 13.62  division of the committee on economic 
 13.63  development and international trade an 
 13.64  update on the bureau's initial 
 13.65  experience in providing dispute 
 14.1   resolution services related to 
 14.2   community-based planning and objections 
 14.3   to annexations.  In developing this 
 14.4   information, the commissioner must 
 14.5   consider the long-term service needs 
 14.6   under this activity, alternatives 
 14.7   regarding its future administration, 
 14.8   and any ongoing funding needs. 
 14.9   Sec. 10.  PUBLIC UTILITIES
 14.10  COMMISSION                               204,000        189,000 
 14.11  This appropriation is for costs 
 14.12  associated with the regulation of 
 14.13  utilities and is added to the 
 14.14  commission's budget base. 
 14.15  Sec. 11.  DEPARTMENT OF 
 14.16  PUBLIC SERVICE                             -0-          130,000 
 14.17  This appropriation is for planning and 
 14.18  analysis of the regulation of the 
 14.19  electric industry and is added to the 
 14.20  department's budget base. 
 14.21  Sec. 12.  METROPOLITAN COUNCIL             -0-          250,000 
 14.22  $250,000 in 1999 is for corridor 
 14.23  planning pilot project grants, as 
 14.24  provided in section 24.  This is a 
 14.25  one-time appropriation and is not added 
 14.26  to the department's budget base. 
 14.27  Sec. 13.  MINNESOTA HISTORICAL SOCIETY    50,000      1,051,000  
 14.28  The amounts that may be spent from this 
 14.29  appropriation for each purpose are 
 14.30  specified in the following paragraphs. 
 14.31  (a) Salary Adjustment 
 14.32  $686,000 in 1999 is for salary 
 14.33  adjustments.  This appropriation is 
 14.34  added to the historical society's 
 14.35  budget base. 
 14.36  (b) Church Restoration 
 14.37  $50,000 in 1999 is for a grant for a 
 14.38  church restoration project in Faribault 
 14.39  county.  This is a one-time 
 14.40  appropriation and is not added to the 
 14.41  society's budget base. 
 14.42  (c) Lake Superior and Mississippi 
 14.43  Railroad 
 14.44  $100,000 in 1999 is for a grant to the 
 14.45  Lake Superior and Mississippi railroad, 
 14.46  a 501(c)(3) organization, for the 
 14.47  purchase and installation of railroad 
 14.48  ties.  This is a one-time appropriation 
 14.49  and is not added to the department's 
 14.50  budget base. 
 14.51  (d) Hmong Archives 
 14.52  $75,000 in 1999 is for start-up costs 
 14.53  for the Hmong history and culture 
 14.54  archival project.  The society may make 
 14.55  grants to nonprofit organizations for 
 15.1   planning, training, and purchase of 
 15.2   supplies and equipment.  This 
 15.3   appropriation is added to the society's 
 15.4   budget base to assist with the creation 
 15.5   of archives and collections for other 
 15.6   underrepresented groups. 
 15.7   (e) Fridley Historical Museum 
 15.8   $50,000 in 1999 is for a grant to the 
 15.9   Fridley Historical Museum to refurbish 
 15.10  the Fridley Historical Museum in 
 15.11  Fridley.  This is a one-time 
 15.12  appropriation and is not added to the 
 15.13  department's budget base. 
 15.14  (f) Winona County Historical Society 
 15.15  $50,000 in 1999 is for a one-time grant 
 15.16  to the Winona county historical society 
 15.17  for upgrade of technology.  The Winona 
 15.18  county historical society shall submit 
 15.19  to the Minnesota historical society a 
 15.20  plan for the use of this grant.  As 
 15.21  part of this project, the Minnesota 
 15.22  historical society, in collaboration 
 15.23  with the Winona county historical 
 15.24  society and other county and local 
 15.25  historical societies, shall develop a 
 15.26  plan for the future use of technology 
 15.27  by county and local historical 
 15.28  societies.  This is a one-time 
 15.29  appropriation and is not added to the 
 15.30  department's budget base. 
 15.31  (g) Metropolitan Multitype Library
 15.32  Consortium
 15.33  $40,000 in 1999 is for a grant to the 
 15.34  metropolitan multitype library 
 15.35  consortium for copying and making 
 15.36  available to the 11 greater Minnesota 
 15.37  regional public library systems and the 
 15.38  St. Paul and Minneapolis libraries, 
 15.39  through the Minnesota center for the 
 15.40  book, a series of video cassette tapes 
 15.41  of interviews with Minnesota authors, 
 15.42  for the production and programming 
 15.43  costs of the northern lights cable 
 15.44  program on which the Minnesota authors 
 15.45  are interviewed, and for operating 
 15.46  costs the consortium incurs as a result 
 15.47  of this provision.  Libraries that 
 15.48  receive a copy of the series shall make 
 15.49  the video cassettes readily available 
 15.50  to teachers and other members of the 
 15.51  public interested in learning about the 
 15.52  work and lives of Minnesota authors.  
 15.53  This is a one-time appropriation and is 
 15.54  not added to the budget base. 
 15.55  (h) Blackduck 
 15.56  $50,000 in 1998 is for a grant to the 
 15.57  city of Blackduck to help restore and 
 15.58  stabilize eight buildings at Camp 
 15.59  Rabideau in Chippewa National Forest.  
 15.60  This is a one-time appropriation and is 
 15.61  not added to the society's budget 
 15.62  base.  This appropriation is available 
 15.63  until June 30, 1999. 
 16.1   Sec. 14.  COUNCIL ON BLACK 
 16.2   MINNESOTANS                               -0-           75,000 
 16.3   $75,000 in 1999 is to assist in 
 16.4   planning and coordinating observances 
 16.5   of the Martin Luther King, Jr. holiday 
 16.6   and other events honoring Martin Luther 
 16.7   King, Jr.  This is a one-time 
 16.8   appropriation and is not added to the 
 16.9   council's budget base. 
 16.10  Sec. 15.  INDIAN AFFAIRS COUNCIL          -0-           80,000 
 16.11  $80,000 is appropriated in 1999 to 
 16.12  assist in funding the 50th annual 
 16.13  conference of the Interstate Indian 
 16.14  Council to be held in Minnesota in 
 16.15  1999.  This is a one-time appropriation 
 16.16  and is not added to the council's 
 16.17  budget base.  
 16.18  Sec. 16.  DEPARTMENT OF ADMINISTRATION    -0-           250,000 
 16.19  The amounts that may be spent from this 
 16.20  appropriation for each purpose are 
 16.21  specified in the following paragraphs. 
 16.22  (a) Walnut Grove 
 16.23  $50,000 in 1999 is for a grant to the 
 16.24  city of Walnut Grove for capital 
 16.25  improvements to the Laura Ingalls 
 16.26  Wilder pageant facilities.  This is a 
 16.27  one-time appropriation and is not added 
 16.28  to the department's budget base. 
 16.29  (b) Columbia Heights 
 16.30  $100,000 in 1999 is for a grant to the 
 16.31  city of Columbia Heights for Central 
 16.32  Avenue streetscape improvements.  This 
 16.33  is a one-time appropriation and is not 
 16.34  added to the department's budget base. 
 16.35  (c) Stewart 
 16.36  $100,000 in 1999 is for a grant to the 
 16.37  city of Stewart for the final draw down 
 16.38  design for the storm sewer project.  
 16.39  This is a one-time appropriation and is 
 16.40  not added to the department's budget 
 16.41  base. 
 16.42  Sec. 17.  CENTER FOR RURAL
 16.43  POLICY AND DEVELOPMENT                    -0-           500,000 
 16.44  $500,000 in 1999 is for deposit in the 
 16.45  Rural Policy and Development Center 
 16.46  fund in the state treasury.  This is a 
 16.47  one-time appropriation and is not added 
 16.48  to the budget base. 
 16.49  Sec. 18.  DEPARTMENT OF
 16.50  NATURAL RESOURCES                         -0-            75,000 
 16.51  $75,000 in 1999 is for a grant to the 
 16.52  St. Croix Valley Heritage Coalition, 
 16.53  Inc., for initial project design for 
 16.54  the St. Croix Valley Heritage Center.  
 16.55  This is a one-time appropriation and is 
 16.56  not added to the department's budget 
 17.1   base. 
 17.2      Sec. 19.  [TRANSFER OF BONDING AUTHORITY.] 
 17.3      The Minnesota housing finance agency may enter into an 
 17.4   agreement with the city of Minnetonka for a residential rental 
 17.5   project which received an allocation from the housing pool in 
 17.6   1998, whereby the city of Minnetonka may issue up to $500,000 in 
 17.7   obligations pursuant to bonding authority allocated to the 
 17.8   Minnesota housing finance agency in 1998 under Minnesota 
 17.9   Statutes, section 474A.03.  
 17.10     Sec. 20.  [BOUNDARY EXTENSION.] 
 17.11     The boundaries of the North Mississippi Regional Park are 
 17.12  extended to include 49th Avenue North and adjacent property from 
 17.13  Humboldt Avenue east to the Mississippi river.  Funds 
 17.14  appropriated for the North Mississippi Regional Park may be 
 17.15  expended to create a trail or greenway as part of the Hennepin 
 17.16  county multijurisdictional program on 49th Avenue North and 
 17.17  adjacent property as an entrance to the North Mississippi 
 17.18  Regional Park.  
 17.19     Sec. 21.  [JUDY GARLAND CHILDREN'S MUSEUM.] 
 17.20     The appropriation in Laws 1997, chapter 200, article 1, 
 17.21  section 2, subdivision 2, to the commissioner of trade and 
 17.22  economic development for the Judy Garland Children's Museum is 
 17.23  available until and may be matched until June 30, 1999. 
 17.24     Sec. 22.  [LEROY NIEMAN MUSEUM OF ART.] 
 17.25     The appropriation in Laws 1997, chapter 200, article 1, 
 17.26  section 2, subdivision 4, to the commissioner of trade and 
 17.27  economic development for a grant to the LeRoy Nieman Museum of 
 17.28  Art is available until and may be matched until June 30, 1999.  
 17.29     Sec. 23.  [NEWPORT.] 
 17.30     The city of Newport may include in-kind resources and money 
 17.31  raised or contributed during a period beginning January 1, 1993, 
 17.32  in determining its required match for the appropriation to the 
 17.33  city in Laws 1997, chapter 200, article 1, section 2, 
 17.34  subdivision 2.  
 17.35     Sec. 24.  [CORRIDOR PLANNING PILOT PROJECTS.] 
 17.36     Subdivision 1.  [PILOT PROJECTS.] (a) The metropolitan 
 18.1   council shall establish corridor planning pilot projects for the 
 18.2   highway 61 south, and I-35W north corridors in the metropolitan 
 18.3   area.  A "corridor plan" is a subregional, multijurisdictional 
 18.4   comprehensive plan for the area along a major transportation 
 18.5   corridor through two or more municipalities.  A corridor plan 
 18.6   implements local development and redevelopment objectives in 
 18.7   compliance with regional goals and priorities by establishing an 
 18.8   integrated and cooperative working relationship between 
 18.9   adjoining corridor communities to, among other things: 
 18.10     (1) make use of shared geographic information systems, as 
 18.11  they are developed; 
 18.12     (2) establish a framework for a comprehensive livable 
 18.13  community urban design; 
 18.14     (3) develop strategies for housing, and economic 
 18.15  development and redevelopment, including the cleanup of 
 18.16  contaminated properties; and 
 18.17     (4) create a comprehensive multimodal transportation plan 
 18.18  for the corridor, integrating transportation and land use issues.
 18.19     (b) A corridor plan must be developed by representatives of 
 18.20  each of the municipalities in the corridor, reviewed and 
 18.21  approved by the metropolitan council, and adopted by each of the 
 18.22  participating municipalities.  A local comprehensive plan must 
 18.23  be consistent with the corridor plan. 
 18.24     Subd. 2.  [1999 LEGISLATIVE PROPOSAL.] Based on the 
 18.25  metropolitan council's experience with the corridor planning 
 18.26  pilot projects, the council shall propose legislation for the 
 18.27  1999 legislature's consideration, that will provide incentives 
 18.28  to communities to implement their adopted corridor plans 
 18.29  approved by the council.  Recommendations for incentives may 
 18.30  include, but are not limited to, recommendations related to tax 
 18.31  increment financing, brownfield cleanup and redevelopment 
 18.32  assistance, transportation funding, board of government 
 18.33  innovation and cooperation grants, and local government 
 18.34  assistance. 
 18.35     Sec. 25.  [HEALTHY HOMES PILOT PROJECT.] 
 18.36     (a) The commissioner of commerce shall establish a 
 19.1   Minnesota healthy homes pilot project to provide training and 
 19.2   technical assistance to selected building code officials, and 
 19.3   low-income housing developers and their contractors in the pilot 
 19.4   communities to address the problem of defective homes and to 
 19.5   develop a model program for education, training, and technical 
 19.6   assistance to be replicated statewide.  The project must be 
 19.7   implemented in up to four demonstration sites (two urban, one 
 19.8   suburban, and one in greater Minnesota) and work with building 
 19.9   code officials from the selected municipalities, and selected 
 19.10  low-income housing developers and their building contractors.  
 19.11  The project must: 
 19.12     (1) provide up to four low-income housing developers with 
 19.13  education and implementation guidelines to produce healthy 
 19.14  homes, including on-site training during the actual construction 
 19.15  phase; 
 19.16     (2) demonstrate the use of mechanical ventilation systems 
 19.17  as a strategy for healthy indoor air while allowing for a 
 19.18  tightly constructed building, including design, installation, 
 19.19  and testing of this approach; 
 19.20     (3) conduct classroom and on-site training at designated 
 19.21  building sites to provide inspectors and builders with practical 
 19.22  training and experience from the ground up; 
 19.23     (4) conduct integrated performance testing of homes 
 19.24  throughout the construction process; 
 19.25     (5) establish a protocol utilizing the results of the pilot 
 19.26  project, which can be used statewide as a guideline for healthy 
 19.27  home construction; 
 19.28     (6) develop an educational program for homeowners in the 
 19.29  pilot communities on how to operate and maintain their homes in 
 19.30  order to prevent contributing to indoor air quality problems 
 19.31  that lead to unhealthy houses; and 
 19.32     (7) report to the house and senate finance and policy 
 19.33  committees with jurisdiction over housing on the progress and 
 19.34  results of the pilot project by March 15, 1999. 
 19.35     (b) The commissioner of commerce shall make a grant to 
 19.36  Sustainable Resources Center, a nonprofit organization with 
 20.1   expertise and certification in indoor air quality diagnostics 
 20.2   and remediating sick homes, to design, implement, and manage the 
 20.3   pilot project. 
 20.4      (c) The department of commerce, in conjunction with 
 20.5   representatives from the office of environmental assistance, 
 20.6   Minnesota state colleges and universities, the department of 
 20.7   wood and paper science at the University of Minnesota, the 
 20.8   Sustainable Resources Center, the Builders Association of 
 20.9   Minnesota, the Center for Energy and Environment, and 
 20.10  representatives from other appropriate organizations, shall 
 20.11  develop recommendations for the creation of a building 
 20.12  technology center to conduct applied research, provide 
 20.13  technological development, and offer training regarding 
 20.14  technologies and methods that assure safe, affordable 
 20.15  buildings.  The recommendations shall be made to the legislature 
 20.16  by January 20, 1999. 
 20.17     Sec. 26.  [TOWN OF WYOMING; CITY OF CHISAGO CITY; MUNICIPAL 
 20.18  REIMBURSEMENT.] 
 20.19     Notwithstanding the limitation on duration or equality of 
 20.20  payment imposed under Minnesota Statutes, section 414.036, the 
 20.21  city of Chisago City may provide reimbursement for orderly 
 20.22  annexed property to the town of Wyoming for the period and in 
 20.23  the amounts agreed to by the city and the town under a joint 
 20.24  powers agreement entered into for the purpose of establishing a 
 20.25  joint commercial and business park in the annexed area as 
 20.26  described in section 2, paragraph (h). 
 20.27     Sec. 27.  [TRAINING FOR HMONG AND LAOTIAN WOMEN.] 
 20.28     $100,000 of the appropriation in fiscal year 1999 for the 
 20.29  Job Training Partnership Act program in Laws 1997, chapter 200, 
 20.30  article 1, section 5, subdivision 4, is available to the Women's 
 20.31  Association of Hmong and Lao to provide employment and training 
 20.32  to eligible Hmong and Laotian women. 
 20.33     Sec. 28.  [DISCLOSURE, CATEGORY 1; CATEGORY 2.] 
 20.34     Prior to March 1, 1999, a builder shall disclose in writing 
 20.35  to a purchaser before execution of a purchase contract whether 
 20.36  the residential building to be constructed is a category 1 or 
 21.1   category 2 building, as defined in Minnesota Rules, part 
 21.2   7670.0470, subpart 6, item A.  The disclosure shall include an 
 21.3   explanation of the difference between the categories in respect 
 21.4   of ventilation systems. 
 21.5      Sec. 29.  [PUBLIC EDUCATION CAMPAIGN.] 
 21.6      The department of commerce shall establish a public 
 21.7   education campaign to educate the public about homeowners' and 
 21.8   purchasers' rights under Minnesota Statutes, sections 16B.61, 
 21.9   subdivision 3b; 16B.65, subdivision 7; 326.87, subdivision 2; 
 21.10  326.975, subdivision 1; 327A.01, subdivisions 2 and 5; 327A.02, 
 21.11  subdivisions 1 and 3; 327A.03; 541.051, subdivisions 1 and 4, 
 21.12  and about ways to recognize safety and health issues that may 
 21.13  arise when purchasing a home, including potential moisture and 
 21.14  indoor air quality problems. 
 21.15     Sec. 30.  [METRO STATE UNIVERSITY HOUSING PROJECT.] 
 21.16     The housing finance agency shall consult with the Minnesota 
 21.17  state colleges and universities system, the city of St. Paul, 
 21.18  the Dayton's Bluff neighborhood housing service, the district 4 
 21.19  council, the east side neighborhood development corporation, the 
 21.20  swede hollow land trust organization, east metro women's 
 21.21  resource center, and other interested parties concerning the 
 21.22  feasibility of a project to acquire and/or rehabilitate existing 
 21.23  housing structures for use as rental housing for low-income 
 21.24  students at Metro State University.  The housing finance agency 
 21.25  shall report to the house and senate finance and policy 
 21.26  committees with jurisdiction over housing and education during 
 21.27  the 1999 legislative session on the feasibility of the project, 
 21.28  and identify the barriers to the project and the potential 
 21.29  sources of funding. 
 21.30     Sec. 31.  [COMMUNITY AND CONVENTION CENTERS; CRITERIA FOR 
 21.31  STATE ASSISTANCE; STUDY.] 
 21.32     The center for rural policy and development shall study the 
 21.33  issue of state grants to local units of government located 
 21.34  outside the metropolitan seven county area for community and 
 21.35  convention center projects.  The study shall develop criteria 
 21.36  for awarding those grants.  Specifically, and without 
 22.1   limitation, the center must consider as criteria: 
 22.2      (1) matching requirements for grants; 
 22.3      (2) the ability of the center to operate without further 
 22.4   state financial assistance; 
 22.5      (3) for convention centers, the availability of privately 
 22.6   operated facilities in the area that provide the same service as 
 22.7   the proposed convention center; and 
 22.8      (4) for community centers, the access of low-income people, 
 22.9   collaboration with other facilities for seniors and youth, 
 22.10  including schools, and the availability of the center to youth 
 22.11  in the evening. 
 22.12     The center shall report its findings and recommended 
 22.13  criteria to the economic development finance divisions of the 
 22.14  senate and house by March 1, 1999. 
 22.15     Sec. 32.  [MINNESOTA INVESTMENT FUND.] 
 22.16     Subdivision 1.  [CITY OF LUVERNE.] Notwithstanding the 
 22.17  grant limit contained in Minnesota Statutes, section 116J.8731, 
 22.18  subdivision 5, a grant of up to $1,000,000 may be made to the 
 22.19  city of Luverne to offset severe job losses due to plant 
 22.20  closings.  Before a grant is made, there must be coordination 
 22.21  with an existing environmental review of the impact on 
 22.22  groundwater by the Minnesota pollution control agency in 
 22.23  cooperation with the public facilities authority and its program 
 22.24  for wastewater infrastructure and the state revolving loan fund 
 22.25  for drinking water or wastewater treatment.  
 22.26     Subd. 2.  [SOYBEAN OILSEED PROCESSING 
 22.27  FACILITY.] Notwithstanding the grant limit in Minnesota 
 22.28  Statutes, section 116J.8731, subdivision 5, a grant of up to 
 22.29  $1,000,000 may be made to a political subdivision that is chosen 
 22.30  as a site for a soybean oilseed processing facility, constructed 
 22.31  by a Minnesota-based cooperative.  The grant may be used for 
 22.32  site preparation, predevelopment, and other infrastructure 
 22.33  improvements, including public and private utility improvements, 
 22.34  that are necessary for development of the oilseed processing 
 22.35  facility.  The grant may be made any time until December 31, 
 22.36  2000. 
 23.1      Sec. 33.  Minnesota Statutes 1996, section 16B.06, 
 23.2   subdivision 2, is amended to read: 
 23.3      Subd. 2.  [VALIDITY OF STATE CONTRACTS.] (a) A state 
 23.4   contract or lease is not valid and the state is not bound by it 
 23.5   until: 
 23.6      (1) it has first been executed by the head of the agency or 
 23.7   a delegate which is a party to the contract; 
 23.8      (2) it has been approved by the commissioner or a delegate, 
 23.9   under this section; 
 23.10     (3) it has been approved by the attorney general or a 
 23.11  delegate as to form and execution; and 
 23.12     (4) the account system shows an allotment or encumbrance 
 23.13  balance for the full amount of the contract liability.  
 23.14     (b) Paragraph (a), clause (2), does not apply to contracts 
 23.15  between state agencies, contracts awarding grants, or contracts 
 23.16  making loans, or bond purchase agreements by the department of 
 23.17  trade and economic development or the Minnesota public 
 23.18  facilities authority. 
 23.19     (c) The head of the agency may delegate the execution of 
 23.20  specific contracts or specific types of contracts to a 
 23.21  designated subordinate within the agency if the delegation has 
 23.22  been approved by the commissioner of administration and filed 
 23.23  with the secretary of state.  The fully executed copy of every 
 23.24  contract or lease must be kept on file at the contracting agency.
 23.25     Sec. 34.  Minnesota Statutes 1996, section 16B.08, 
 23.26  subdivision 7, is amended to read: 
 23.27     Subd. 7.  [SPECIFIC PURCHASES.] (a) The following may be 
 23.28  purchased without regard to the competitive bidding requirements 
 23.29  of this chapter:  
 23.30     (1) merchandise for resale at state park refectories or 
 23.31  facility operations; 
 23.32     (2) farm and garden products, which may be sold at the 
 23.33  prevailing market price on the date of the sale; 
 23.34     (3) meat for other state institutions from the technical 
 23.35  college maintained at Pipestone by independent school district 
 23.36  No. 583; and 
 24.1      (4) products and services from the Minnesota correctional 
 24.2   facilities; and 
 24.3      (5) merchandise for resale at office of tourism locations.  
 24.4      (b) Supplies, materials, equipment, and utility services 
 24.5   for use by a community-based residential facility operated by 
 24.6   the commissioner of human services may be purchased or rented 
 24.7   without regard to the competitive bidding requirements of this 
 24.8   chapter. 
 24.9      (c) Supplies, materials, or equipment to be used in the 
 24.10  operation of a hospital licensed under sections 144.50 to 144.56 
 24.11  that are purchased under a shared service purchasing arrangement 
 24.12  whereby more than one hospital purchases supplies, materials, or 
 24.13  equipment with one or more other hospitals, either through one 
 24.14  of the hospitals or through another entity, may be purchased 
 24.15  without regard to the competitive bidding requirements of this 
 24.16  chapter if the following conditions are met: 
 24.17     (1) the hospital's governing authority authorizes the 
 24.18  arrangement; 
 24.19     (2) the shared services purchasing program purchases items 
 24.20  available from more than one source on the basis of competitive 
 24.21  bids or competitive quotations of prices; and 
 24.22     (3) the arrangement authorizes the hospital's governing 
 24.23  authority or its representatives to review the purchasing 
 24.24  procedures to determine compliance with these requirements. 
 24.25     Sec. 35.  Minnesota Statutes 1996, section 16B.65, 
 24.26  subdivision 7, is amended to read: 
 24.27     Subd. 7.  [CONTINUING EDUCATION.] Subject to sections 
 24.28  16B.59 to 16B.75, the commissioner may by rule establish or 
 24.29  approve continuing education programs for municipal building 
 24.30  officials dealing with matters of building code administration, 
 24.31  inspection, and enforcement.  
 24.32     Effective January 1, 1985, each person certified as a 
 24.33  building official for the state must satisfactorily complete 
 24.34  applicable educational programs established or approved by the 
 24.35  commissioner every three calendar years to retain certification, 
 24.36  including at least three hours in programs relating to the state 
 25.1   energy code. 
 25.2      Each person certified as a building official must submit in 
 25.3   writing to the commissioner an application for renewal of 
 25.4   certification within 60 days of the last day of the third 
 25.5   calendar year following the last certificate issued.  Each 
 25.6   application for renewal must be accompanied by proof of 
 25.7   satisfactory completion of minimum continuing education 
 25.8   requirements and the certification renewal fee established by 
 25.9   the commissioner.  
 25.10     For persons certified prior to January 1, 1985, the first 
 25.11  three-year period commences January 1, 1985. 
 25.12     Sec. 36.  Minnesota Statutes 1997 Supplement, section 
 25.13  115C.09, subdivision 3f, is amended to read: 
 25.14     Subd. 3f.  [REIMBURSEMENTS; SMALL GASOLINE RETAILERS.] (a) 
 25.15  As used in this subdivision, "small gasoline retailer" means 
 25.16  a responsible person tank owner or operator who owns no more 
 25.17  than only one location in this state, and no locations in any 
 25.18  other state, where motor fuel was dispensed to the public into 
 25.19  motor vehicles, watercraft, or aircraft in the previous year, 
 25.20  and who dispensed motor fuel at that location. 
 25.21     (b) Notwithstanding subdivision 1, paragraph (b), clause 
 25.22  (1), for eligible applicants who are small gasoline retailers 
 25.23  that have dispensed less than 500,000 gallons of motor fuel 
 25.24  during the most recent calendar year that petroleum products 
 25.25  were dispensed at the location owned by the retailer, the board 
 25.26  shall reimburse the applicant for 90 percent of the applicant's 
 25.27  total reimbursable cost for tank removal projects started after 
 25.28  January 1, 1997 1996, including, but not limited to, tank 
 25.29  removal, closure in place, backfill, resurfacing, and utility 
 25.30  service restoration costs, regardless of whether a release has 
 25.31  occurred at the site, provided that the tank involved is a 
 25.32  regulated underground storage tank. 
 25.33     (c) Notwithstanding subdivision 1, paragraph (b), clause 
 25.34  (1), for eligible applicants who are small gasoline retailers 
 25.35  that have dispensed less than 250,000 gallons of motor fuel 
 25.36  during the most recent calendar year that petroleum products 
 26.1   were dispensed at the location owned by the retailer, provided 
 26.2   that the tank involved is a regulated underground storage tank, 
 26.3   the board shall reimburse the applicant for 95 percent of the 
 26.4   following costs: 
 26.5      (1) tank removal costs described in paragraph (b); and 
 26.6      (2) petroleum contamination cleanup as provided under 
 26.7   subdivision 1 incurred during or after the tank removal project. 
 26.8      (d) An applicant who owns only one location in this or any 
 26.9   other state where motor fuel was dispensed to the public into 
 26.10  motor vehicles, watercraft, or aircraft but who did not dispense 
 26.11  motor fuel at that location may qualify as a small gasoline 
 26.12  retailer if:  
 26.13     (1) the previous tank owner or operator at the location was 
 26.14  a small gasoline retailer that dispensed less than 500,000 
 26.15  gallons of motor fuel during the most recent calendar year that 
 26.16  petroleum products were dispensed at the location; and 
 26.17     (2) the applicant acquired legal or equitable title to the 
 26.18  property after January 1, 1996.  
 26.19     (e) This subdivision expires January 1, 2000. 
 26.20     Sec. 37.  Minnesota Statutes 1996, section 115C.09, is 
 26.21  amended by adding a subdivision to read: 
 26.22     Subd. 3g.  [REIMBURSEMENTS; SMALL BUSINESS OWNERS.] (a) As 
 26.23  used in this subdivision, "small business owner" means a person: 
 26.24     (1) who has no more than $250,000 per year in sales; 
 26.25     (2) who owns no more than one location where motor fuel was 
 26.26  previously dispensed to the public into motor vehicles; 
 26.27     (3) who did not dispense motor fuel at that location; and 
 26.28     (4) whose tanks were never registered with the state. 
 26.29     (b) Notwithstanding subdivision 1, paragraph (b), clause 
 26.30  (1), the board shall reimburse an eligible applicant who is a 
 26.31  small business owner for 90 percent of the applicant's total 
 26.32  reimbursable cost for tank removal projects started after 
 26.33  January 1, 1998, including, but not limited to, tank removal, 
 26.34  closure in place, backfill, resurfacing, and utility service 
 26.35  restoration costs, regardless of whether a release has occurred 
 26.36  at the site, and provided that the person does not intend to 
 27.1   replace the tanks. 
 27.2      Sec. 38.  Minnesota Statutes 1996, section 116.182, 
 27.3   subdivision 1, is amended to read: 
 27.4      Subdivision 1.  [DEFINITIONS.] (a) For the purposes of this 
 27.5   section, the terms defined in this subdivision have the meanings 
 27.6   given them. 
 27.7      (b) "Agency" means the pollution control agency. 
 27.8      (c) "Authority" means the public facilities authority 
 27.9   established in section 446A.03. 
 27.10     (d) "Commissioner" means the commissioner of the pollution 
 27.11  control agency. 
 27.12     (e) "Essential project components" means those components 
 27.13  of a wastewater disposal system that are necessary to convey or 
 27.14  treat a municipality's existing wastewater flows and loadings, 
 27.15  and future wastewater flows and loadings based on 50 percent of 
 27.16  the projected residential growth of the municipality for a 
 27.17  20-year period. 
 27.18     (f) "Municipality" means a county, home rule charter or 
 27.19  statutory city, town, the metropolitan council, an Indian tribe 
 27.20  or an authorized Indian tribal organization; or any other 
 27.21  governmental subdivision of the state responsible by law for the 
 27.22  prevention, control, and abatement of water pollution in any 
 27.23  area of the state. 
 27.24     (g) "Outstanding international resource value waters" are 
 27.25  the surface waters of the state in the Lake Superior Basin, 
 27.26  other than Class 7 waters and those waters designated as 
 27.27  outstanding resource value waters. 
 27.28     (h) "Outstanding resource value waters" are those that have 
 27.29  high water quality, wilderness characteristics, unique 
 27.30  scientific or ecological significance, exceptional recreation 
 27.31  value, or other special qualities that warrant special 
 27.32  protection. 
 27.33     Sec. 39.  Minnesota Statutes 1996, section 116.182, is 
 27.34  amended by adding a subdivision to read: 
 27.35     Subd. 3a.  [NOTIFICATION OF OTHER GOVERNMENT UNITS.] In 
 27.36  addition to other applicable statutes or rules that are required 
 28.1   to receive financial assistance consistent with this 
 28.2   subdivision, the commissioner may not approve or certify a 
 28.3   project to the public facilities authority for wastewater 
 28.4   financial assistance unless the following requirements are met: 
 28.5      (1) prior to the initiation of the public facilities 
 28.6   planning process for a new wastewater treatment system, the 
 28.7   project proposer gives written notice to all municipalities as 
 28.8   defined in 116.82 within ten miles of the proposed project 
 28.9   service area, including the county in which the project is 
 28.10  located, the office of strategic and long-range planning, and 
 28.11  the pollution control agency.  The notice shall state the 
 28.12  proposer's intent to begin the facilities planning process and 
 28.13  provide a description of the need for the proposed project.  The 
 28.14  notice also shall request a response within 30 days of the 
 28.15  notice date from all government units who wish to receive and 
 28.16  comment on the future facilities plan for the proposed project; 
 28.17     (2) during development of the facility plan's analysis of 
 28.18  service alternatives, the project proposer must request 
 28.19  information from all municipalities and sanitary districts which 
 28.20  have existing systems that have current capacity to meet the 
 28.21  proposer's needs or can be upgraded to meet those needs.  At a 
 28.22  minimum, the proposer must notify in writing those 
 28.23  municipalities and sanitary districts whose corporate limits or 
 28.24  boundaries are within three miles of the proposed project's 
 28.25  service area; 
 28.26     (3) 60 days prior to the municipality's public hearing on 
 28.27  the facilities plan, a copy of the draft facilities plan and 
 28.28  notice of the public hearing on the facilities plan must be 
 28.29  given to the local government units who previously expressed 
 28.30  interest in the proposed project under clause (1); 
 28.31     (4) for a proposed project located or proposed to be 
 28.32  located outside the corporate limits of a city, the affected 
 28.33  county has certified to the agency that the proposed project is 
 28.34  consistent with the applicable county comprehensive plan and 
 28.35  zoning and subdivision regulations; and 
 28.36     (5) copies of the notifications required under clauses (1) 
 29.1   and (2), as well as the certification from the county and a 
 29.2   summary of the comments received, must be included by the 
 29.3   municipality in the submission of its facilities plan to the 
 29.4   pollution control agency, along with other required items as 
 29.5   specified in the agency's rules. 
 29.6      This subdivision does not apply to the western Lake 
 29.7   Superior sanitary district or the metropolitan council. 
 29.8      Sec. 40.  Minnesota Statutes 1996, section 116J.415, 
 29.9   subdivision 5, is amended to read: 
 29.10     Subd. 5.  [LOAN CRITERIA.] The following criteria apply to 
 29.11  loans made under the challenge grant program:  
 29.12     (1) loans must be made to businesses that are not likely to 
 29.13  undertake a project for which loans are sought without 
 29.14  assistance from the challenge grant program; 
 29.15     (2) a loan must be used for a project designed principally 
 29.16  to benefit low-income persons through the creation of job or 
 29.17  business opportunities for them; 
 29.18     (3) the minimum loan is $5,000 and the maximum 
 29.19  is $100,000 $200,000; 
 29.20     (4) a loan may not exceed 50 percent of the total cost of 
 29.21  an individual project; 
 29.22     (5) a loan may not be used for a retail development 
 29.23  project; and 
 29.24     (6) a business applying for a loan, except a 
 29.25  microenterprise loan under subdivision 6, must be sponsored by a 
 29.26  resolution of the governing body of the local governmental unit 
 29.27  within whose jurisdiction the project is located. 
 29.28     Sec. 41.  Minnesota Statutes 1997 Supplement, section 
 29.29  116J.421, subdivision 1, is amended to read: 
 29.30     Subdivision 1.  [ESTABLISHED.] The rural policy and 
 29.31  development center is established at Mankato State University. 
 29.32     The center may be established by the board as a nonprofit 
 29.33  corporation under section 501(c)3 of the Internal Revenue Code 
 29.34  or the board may organize and operate the center in a manner and 
 29.35  form that the board determines best allows the center to carry 
 29.36  out its duties. 
 30.1      Sec. 42.  Minnesota Statutes 1997 Supplement, section 
 30.2   116J.421, is amended by adding a subdivision to read: 
 30.3      Subd. 5.  [POWERS.] The board has the power to do all 
 30.4   things reasonable and necessary to carry out the duties of the 
 30.5   center including, without limitation, the power to: 
 30.6      (1) enter into contracts for goods or services with 
 30.7   individuals and private and public entities; 
 30.8      (2) sue and be sued; 
 30.9      (3) acquire, hold, lease, and transfer any interest in real 
 30.10  and personal property; 
 30.11     (4) accept appropriations, gifts, grants, and bequests; 
 30.12     (5) hire employees; and 
 30.13     (6) delegate any of its powers. 
 30.14     Sec. 43.  [116J.544] [DEFINITIONS.] 
 30.15     Subdivision 1.  [TERMS.] For the purposes of sections 
 30.16  116J.544 to 116J.545, the following terms have the meanings 
 30.17  given them. 
 30.18     Subd. 2.  [BOARD.] "Board" means the Minnesota film board. 
 30.19     Subd. 3.  [COMMISSIONER.] "Commissioner" means the 
 30.20  commissioner of trade and economic development. 
 30.21     Sec. 44.  [116J.5445] [DUTIES; REPORTS.] 
 30.22     The commissioner shall enter into a contract with the board 
 30.23  to implement the revolving loan fund created in section 
 30.24  116J.545.  The contract shall include a description of the 
 30.25  board's responsibilities in reviewing, approving, and monitoring 
 30.26  of projects funded by the loan fund.  The commissioner shall 
 30.27  submit an annual report to the legislature by January 1 of each 
 30.28  year describing each loan made under section 116J.545, including 
 30.29  information on the production and distribution status of each 
 30.30  project for which a loan has been made, the repayment status of 
 30.31  each loan, the number of jobs created in Minnesota, the amount 
 30.32  of expenditures in Minnesota, and the amount and source of 
 30.33  matching funds. 
 30.34     Sec. 45.  [116J.545] [MINNESOTA FILM AND TELEVISION 
 30.35  REVOLVING LOAN FUND.] 
 30.36     Subdivision 1.  [ELIGIBLE PROJECTS.] An eligible project is 
 31.1   a feature film, long form television project, or television 
 31.2   series.  At least one of the project's principals must be a 
 31.3   Minnesota resident.  The principals are defined as the project's 
 31.4   director, producer, or company chief executive officer. 
 31.5      Subd. 2.  [REVOLVING LOAN FUND.] The commissioner shall 
 31.6   establish a revolving loan fund in the special revenue fund for 
 31.7   the purpose of making loans to finance eligible projects.  Loan 
 31.8   applications given preliminary approval by the board must be 
 31.9   forwarded to the commissioner for final approval.  Funds for the 
 31.10  loan will be disbursed by the commissioner to the board after 
 31.11  this approval. 
 31.12     Subd. 3.  [BUSINESS LOAN CRITERIA.] (a) The criteria in 
 31.13  this subdivision apply to loans made under the Minnesota film 
 31.14  and television revolving loan fund. 
 31.15     (b) Loans must only be made for projects that the board 
 31.16  determines would not be undertaken without assistance from the 
 31.17  loan fund. 
 31.18     (c) The minimum loan is $50,000 and the maximum loan is 
 31.19  $500,000.  The board will determine the interest rate, terms, 
 31.20  maturity, and collateral for each loan.  The interest rate must 
 31.21  be at least three percent. 
 31.22     (d) The amount of a loan may not exceed 50 percent of each 
 31.23  project. 
 31.24     (e) Funded projects will be required to spend 120 percent 
 31.25  of the amount of the loan in Minnesota.  These expenditures may 
 31.26  include direct production or postproduction costs as well as 
 31.27  talent, producer, or director fees. 
 31.28     (f) The commissioner may adopt rules to implement this 
 31.29  section. 
 31.30     Subd. 4.  [REVOLVING LOAN FUND ADMINISTRATION.] (a) Loan 
 31.31  repayment amounts must be returned by the board to the 
 31.32  commissioner and deposited in a revolving loan fund for 
 31.33  additional loans to be made by the board. 
 31.34     (b) Administrative expenses of the board incurred to 
 31.35  operate the loan program, not to exceed $50,000 per year, may be 
 31.36  paid to the board from the revolving loan fund. 
 32.1      Subd. 5.  [REPORTING REQUIREMENTS.] The board shall: 
 32.2      (1) submit an annual report to the commissioner by 
 32.3   September 30 of each year that includes a description of 
 32.4   projects funded for the preceding 12 months as of June 30 of the 
 32.5   same year.  The report shall include a description of projects 
 32.6   supported by the revolving loan fund, the production and 
 32.7   distribution status of each project for which a loan has been 
 32.8   made, the terms of each loan and the repayment status of each 
 32.9   loan, the number of jobs created in Minnesota and the amount of 
 32.10  expenditures in Minnesota, and the amount and source of matching 
 32.11  funds.  A description of the administrative expenses incurred by 
 32.12  the board shall also be included; and 
 32.13     (2) provide for an independent annual audit to be performed 
 32.14  in accordance with generally accepted accounting practices and 
 32.15  auditing standards and submit a copy of each annual audit report 
 32.16  to the commissioner. 
 32.17     Sec. 46.  Minnesota Statutes 1996, section 116J.553, 
 32.18  subdivision 2, is amended to read: 
 32.19     Subd. 2.  [REQUIRED CONTENT.] (a) The commissioner shall 
 32.20  prescribe and provide the application form.  Except as provided 
 32.21  in paragraphs (b) and (c), the application must include at least 
 32.22  the following information: 
 32.23     (1) identification of the site; 
 32.24     (2) an approved response action plan for the site, 
 32.25  including the results of engineering and other tests showing the 
 32.26  nature and extent of the release or threatened release of 
 32.27  contaminants at the site; 
 32.28     (3) a detailed estimate, along with necessary supporting 
 32.29  evidence, of the total cleanup costs for the site; 
 32.30     (4) an appraisal of the current market value of the 
 32.31  property, separately taking into account the effect of the 
 32.32  contaminants on the market value, prepared by a qualified 
 32.33  independent appraiser using accepted appraisal methodology; 
 32.34     (5) an assessment of the development potential or likely 
 32.35  use of the site after completion of the response action plan, 
 32.36  including any specific commitments from third parties to 
 33.1   construct improvements on the site; 
 33.2      (6) the manner in which the municipality will meet the 
 33.3   local match requirement; and 
 33.4      (7) any additional information or material that the 
 33.5   commissioner prescribes. 
 33.6      (b) An application for a grant under section 116J.554, 
 33.7   subdivision 1, paragraph (b), must include a detailed estimate 
 33.8   of the cost of the actions for which the grant is sought, but 
 33.9   need not include the information specified in paragraph (a), 
 33.10  clauses (2) to (4) and (6). 
 33.11     (c) A response action plan is not required as a condition 
 33.12  to receive a grant under section 116J.554, subdivision 1, 
 33.13  paragraph (c). 
 33.14     Sec. 47.  Minnesota Statutes 1996, section 116L.03, 
 33.15  subdivision 5, is amended to read: 
 33.16     Subd. 5.  [TERMS AND COMPENSATION.] The terms of appointed 
 33.17  members shall be for four years except for the initial 
 33.18  appointments.  The initial appointments of the governor shall 
 33.19  have the following terms:  two members each for one, two, three, 
 33.20  and four years.  Compensation of members shall be as provided in 
 33.21  section 15.0575, subdivision 3. 
 33.22     Sec. 48.  Minnesota Statutes 1997 Supplement, section 
 33.23  179A.03, subdivision 7, is amended to read: 
 33.24     Subd. 7.  [ESSENTIAL EMPLOYEE.] "Essential employee" means 
 33.25  firefighters, peace officers subject to licensure under sections 
 33.26  626.84 to 626.863, guards at correctional facilities, 
 33.27  confidential employees, supervisory employees, assistant county 
 33.28  attorneys, assistant city attorneys, principals, and assistant 
 33.29  principals.  However, for state employees, "essential employee" 
 33.30  means all employees in law enforcement, health care 
 33.31  professionals, correctional guards, professional engineering, 
 33.32  and supervisory collective bargaining units, irrespective of 
 33.33  severance, and no other employees.  For University of Minnesota 
 33.34  employees, "essential employee" means all employees in law 
 33.35  enforcement, nursing professional and supervisory units, 
 33.36  irrespective of severance, and no other employees.  
 34.1   "Firefighters" means salaried employees of a fire department 
 34.2   whose duties include, directly or indirectly, controlling, 
 34.3   extinguishing, preventing, detecting, or investigating fires. 
 34.4      Sec. 49.  [181.636] [EMPLOYEE NOTICE OF RIGHTS; FOREIGN 
 34.5   LANGUAGES.] 
 34.6      Subdivision 1.  [EMPLOYER DEFINED.] For the purposes of 
 34.7   this section, "employer" means any person employing one or more 
 34.8   employees. 
 34.9      Subd. 2.  [EMPLOYEE RIGHTS FORM.] The commissioner of labor 
 34.10  and industry shall provide a single brochure for use in 
 34.11  providing the notice required in subdivision 3.  The single form 
 34.12  must contain the disclosure in English and in ten other 
 34.13  languages that the commissioner determines are the most commonly 
 34.14  spoken as the dominant language by Minnesota employees. 
 34.15     Subd. 3.  [EMPLOYEE RIGHTS NOTICE.] An employer shall 
 34.16  provide a brochure provided by the department of labor and 
 34.17  industry within ten days of the first day of work that notifies 
 34.18  the job offeree that: 
 34.19     (1) there are state and federal laws that regulate minimum 
 34.20  wages and maximum hours of work; prohibit unsafe working 
 34.21  conditions and discrimination; prohibit employers from making 
 34.22  false statements in order to induce someone into employment; and 
 34.23  require the terms and conditions of employment be provided in 
 34.24  writing to migrant farm workers and persons employed in the food 
 34.25  processing industry; and 
 34.26     (2) the employee may call the department of labor and 
 34.27  industry and the department of human rights at a telephone 
 34.28  number indicated on the brochure to learn about those laws and 
 34.29  the employee's rights. 
 34.30     Sec. 50.  Minnesota Statutes 1996, section 181.64, is 
 34.31  amended to read: 
 34.32     181.64 [FALSE STATEMENTS AS INDUCEMENT TO ENTERING 
 34.33  EMPLOYMENT.] 
 34.34     It shall be unlawful for any person, partnership, company, 
 34.35  corporation, association, or organization of any kind, doing 
 34.36  business in this state, directly or through any agent or 
 35.1   attorney, to induce, influence, persuade, or engage any person 
 35.2   to change from one place to another in this state, or to change 
 35.3   from any place in any state, territory, or country to any place 
 35.4   in this state, to work in any branch of labor through or by 
 35.5   means of knowingly false representations, whether spoken, 
 35.6   written, or advertised in printed form, concerning the kind or 
 35.7   character of such work, the compensation therefor, the sanitary 
 35.8   conditions relating to or surrounding it, or failure to state in 
 35.9   any advertisement, proposal, or contract for the employment that 
 35.10  there is a strike or lockout at the place of the proposed 
 35.11  employment, when in fact such strike or lockout then actually 
 35.12  exists in such employment at such place.  Any such unlawful acts 
 35.13  shall be deemed a false advertisement or misrepresentation for 
 35.14  the purposes of this section and section 181.65.  
 35.15     Sec. 51.  Minnesota Statutes 1996, section 181.65, is 
 35.16  amended to read: 
 35.17     181.65 [PENALTIES.] 
 35.18     Any A person, firm, association, or corporation violating 
 35.19  any provision of section 181.64 and this section shall be is 
 35.20  guilty of a misdemeanor.  Any A person who shall be is 
 35.21  influenced, induced, or persuaded to enter or change employment 
 35.22  or change a place of employment through or by means of any of 
 35.23  the things prohibited in section 181.64, shall have has a right 
 35.24  of action for the recovery of all damages sustained in 
 35.25  consequence of the false or deceptive representations, false 
 35.26  advertising, or false pretenses used to induce the person to 
 35.27  enter into or change a place of employment, against any person, 
 35.28  firm, association, or corporation directly or indirectly causing 
 35.29  such damage; and, in addition to all such actual damages such 
 35.30  the person may have sustained, shall have has the right to 
 35.31  recover such reasonable attorneys' fees as the court shall fix, 
 35.32  to be taxed as costs in any judgment recovered.  
 35.33     In addition to any other penalties, the commissioner of 
 35.34  labor and industry may fine an employer up to $1,000 for each 
 35.35  violation of section 181.64.  In determining the amount of the 
 35.36  fine, the size of the employer's business, the number of 
 36.1   violations, and past violations must be considered. 
 36.2      Sec. 52.  Minnesota Statutes 1997 Supplement, section 
 36.3   268.07, subdivision 2, as amended by Laws 1998, chapter 265, 
 36.4   section 23, is amended to read: 
 36.5      Subd. 2.  [WEEKLY BENEFIT AMOUNT AND MAXIMUM AMOUNT OF 
 36.6   BENEFITS.] (a) To establish a reemployment insurance account, a 
 36.7   claimant must have: 
 36.8      (1) wage credits in two or more calendar quarters of the 
 36.9   claimant's base period; 
 36.10     (2) minimum total wage credits equal to or greater than the 
 36.11  high quarter wage credits multiplied by 1.25; 
 36.12     (3) high quarter wage credits of not less than $1,000.  
 36.13     (b) If the commissioner finds that a claimant has 
 36.14  established a reemployment insurance account, the weekly benefit 
 36.15  amount payable during the claimant's benefit year shall be the 
 36.16  higher of: 
 36.17     (1) 50 percent of the claimant's average weekly wage during 
 36.18  the claimant's base period, to a maximum of 66-2/3 percent of 
 36.19  the state's average weekly wage; or 
 36.20     (2) 50 percent of the claimant's average weekly wage during 
 36.21  the high quarter, to a maximum of the higher of $331 or 50 
 36.22  percent of the state's average weekly wage, or $331, whichever 
 36.23  is higher. 
 36.24     The claimant's average weekly wage under clause (1) shall 
 36.25  be computed by dividing the claimant's total wage credits by 
 36.26  52.  The claimant's average weekly wage under clause (2) shall 
 36.27  be computed by dividing the claimant's high quarter wage credits 
 36.28  by 13.  
 36.29     (c) The state's maximum weekly benefit amount and the 
 36.30  claimant's weekly benefit amount shall be computed to the 
 36.31  nearest whole dollar.  
 36.32     (d) The maximum amount of benefits payable on any 
 36.33  reemployment insurance account shall equal one-third of the 
 36.34  claimant's total wage credits rounded to the next lower dollar, 
 36.35  not to exceed 26 times the claimant's weekly benefit amount. 
 36.36     Sec. 53.  Minnesota Statutes 1996, section 326.87, 
 37.1   subdivision 2, is amended to read: 
 37.2      Subd. 2.  [HOURS.] A qualifying person of a licensee must 
 37.3   provide proof of completion of seven eight hours of continuing 
 37.4   education per year.  At least three hours of continuing 
 37.5   education per year must relate to requirements of the state 
 37.6   energy code.  To the extent the commissioner considers it 
 37.7   appropriate, courses or parts of courses may be considered to 
 37.8   satisfy both continuing education requirements under this 
 37.9   section and continuing real estate education requirements. 
 37.10     Sec. 54.  Minnesota Statutes 1996, section 326.975, 
 37.11  subdivision 1, is amended to read: 
 37.12     Subdivision 1.  [GENERALLY.] (a) In addition to any other 
 37.13  fees, each applicant for a license under sections 326.83 to 
 37.14  326.98 shall pay a fee to the contractor's recovery fund.  The 
 37.15  contractor's recovery fund is created in the state treasury and 
 37.16  must be administered by the commissioner in the manner and 
 37.17  subject to all the requirements and limitations provided by 
 37.18  section 82.34 with the following exceptions: 
 37.19     (1) each licensee who renews a license shall pay in 
 37.20  addition to the appropriate renewal fee an additional fee which 
 37.21  shall be credited to the contractor's recovery fund.  The amount 
 37.22  of the fee shall be based on the licensee's gross annual 
 37.23  receipts for the licensee's most recent fiscal year preceding 
 37.24  the renewal, on the following scale: 
 37.25            Fee            Gross Receipts
 37.26            $100           under $1,000,000
 37.27            $150           $1,000,000 to $5,000,000
 37.28            $200           over $5,000,000
 37.29  Any person who receives a new license shall pay a fee based on 
 37.30  the same scale; 
 37.31     (2) the sole purpose of this fund is to compensate any 
 37.32  aggrieved owner or lessee of residential property who obtains a 
 37.33  final judgment in any court of competent jurisdiction against a 
 37.34  licensee licensed under section 326.84, on grounds of 
 37.35  fraudulent, deceptive, or dishonest practices, conversion of 
 37.36  funds, or failure of performance or breach of warranty arising 
 38.1   directly out of any transaction when the judgment debtor was 
 38.2   licensed and performed any of the activities enumerated under 
 38.3   section 326.83, subdivision 19, on the owner's residential 
 38.4   property or on residential property rented by the lessee, or on 
 38.5   new residential construction which was never occupied prior to 
 38.6   purchase by the owner, or which was occupied by the licensee for 
 38.7   less than one year prior to purchase by the owner, and which 
 38.8   cause of action arose on or after April 1, 1994; 
 38.9      (3) nothing may obligate the fund for more than $50,000 per 
 38.10  claimant, nor more than $50,000 per licensee; and 
 38.11     (4) nothing may obligate the fund for claims based on a 
 38.12  cause of action that arose before the licensee paid the recovery 
 38.13  fund fee set in clause (1), or as provided in section 326.945, 
 38.14  subdivision 3; and 
 38.15     (5) appropriations from this fund may be made for expenses 
 38.16  of providing information to consumers on residential 
 38.17  construction issues.  
 38.18     (b) Should the commissioner pay from the contractor's 
 38.19  recovery fund any amount in settlement of a claim or toward 
 38.20  satisfaction of a judgment against a licensee, the license shall 
 38.21  be automatically suspended upon the effective date of an order 
 38.22  by the court authorizing payment from the fund.  No licensee 
 38.23  shall be granted reinstatement until the licensee has repaid in 
 38.24  full, plus interest at the rate of 12 percent a year, twice the 
 38.25  amount paid from the fund on the licensee's account, and has 
 38.26  obtained a surety bond issued by an insurer authorized to 
 38.27  transact business in this state in the amount of at least 
 38.28  $40,000 $50,000.  
 38.29     Sec. 55.  Minnesota Statutes 1996, section 327A.01, 
 38.30  subdivision 2, is amended to read: 
 38.31     Subd. 2.  [BUILDING STANDARDS.] "Building standards" means 
 38.32  the structural, mechanical, electrical, and quality standards of 
 38.33  the home building industry for the geographic area in which the 
 38.34  dwelling is situated.  For those geographic areas where the 
 38.35  state building code adopted by the commissioner of 
 38.36  administration according to sections 16B.59 to 16B.75 is in 
 39.1   effect, "building standards" shall be no less rigorous than the 
 39.2   state building code. 
 39.3      Sec. 56.  Minnesota Statutes 1996, section 327A.01, 
 39.4   subdivision 5, is amended to read: 
 39.5      Subd. 5.  [MAJOR CONSTRUCTION DEFECT.] "Major construction 
 39.6   defect" means actual damage to the load-bearing portion of the 
 39.7   dwelling or the home improvement, including damage due to 
 39.8   subsidence, expansion or lateral movement of the soil, which 
 39.9   affects the load-bearing function and which vitally 
 39.10  substantially affects or is imminently likely to vitally 
 39.11  substantially affect use of the dwelling or the home improvement 
 39.12  for residential purposes.  "Major construction defect" does not 
 39.13  include damage due to movement of the soil caused by flood, 
 39.14  earthquake or other natural disaster. 
 39.15     Sec. 57.  Minnesota Statutes 1996, section 327A.02, 
 39.16  subdivision 1, is amended to read: 
 39.17     Subdivision 1.  [WARRANTIES BY VENDORS.] (a) In every sale 
 39.18  of a completed dwelling, and in every contract for the sale of a 
 39.19  dwelling to be completed, the vendor shall warrant to the vendee 
 39.20  that: 
 39.21     (a) (1) during the one-year period from and after the 
 39.22  warranty date the dwelling shall be free from defects caused by 
 39.23  faulty workmanship and defective materials due to noncompliance 
 39.24  with building standards; 
 39.25     (b) (2) during the two-year three-year period from and 
 39.26  after the warranty date, the dwelling shall be free from defects 
 39.27  caused by faulty installation of plumbing, electrical, heating, 
 39.28  and cooling systems; and 
 39.29     (c) (3) during the ten-year period from and after the 
 39.30  warranty date, the dwelling shall be free from major 
 39.31  construction defects. 
 39.32     (b) The warranties provided by this chapter are transferred 
 39.33  automatically with conveyance of the property and benefit the 
 39.34  initial vendee and all future vendees. 
 39.35     Sec. 58.  Minnesota Statutes 1996, section 327A.02, 
 39.36  subdivision 3, is amended to read: 
 40.1      Subd. 3.  [HOME IMPROVEMENT WARRANTIES.] (a) In a sale or 
 40.2   in a contract for the sale of home improvement work involving 
 40.3   major structural changes or additions to a residential building, 
 40.4   the home improvement contractor shall warrant to the owner that: 
 40.5      (1) during the one-year period from and after the warranty 
 40.6   date the home improvement shall be free from defects caused by 
 40.7   faulty workmanship and defective materials due to noncompliance 
 40.8   with building standards; and 
 40.9      (2) during the ten-year period from and after the warranty 
 40.10  date the home improvement shall be free from major construction 
 40.11  defects.  
 40.12     (b) In a sale or in a contract for the sale of home 
 40.13  improvement work involving the installation of plumbing, 
 40.14  electrical, heating or cooling systems, the home improvement 
 40.15  contractor shall warrant to the owner that, during the two-year 
 40.16  three-year period from and after the warranty date, the home 
 40.17  improvement shall be free from defects caused by the faulty 
 40.18  installation of the system or systems.  
 40.19     (c) In a sale or in a contract for the sale of any home 
 40.20  improvement work not covered by paragraph (a) or (b), the home 
 40.21  improvement contractor shall warrant to the owner that, during 
 40.22  the one-year two-year period from and after the warranty date, 
 40.23  the home improvement shall be free from defects caused by faulty 
 40.24  workmanship or defective materials due to noncompliance with 
 40.25  building standards.  
 40.26     Sec. 59.  Minnesota Statutes 1996, section 327A.03, is 
 40.27  amended to read: 
 40.28     327A.03 [EXCLUSIONS.] 
 40.29     The liability of the vendor or the home improvement 
 40.30  contractor under sections 327A.01 to 327A.07 is limited to the 
 40.31  specific items set forth in sections 327A.01 to 327A.07 and does 
 40.32  not extend to the following: 
 40.33     (a) Loss or damage not reported by the vendee or the owner 
 40.34  to the vendor or the home improvement contractor in writing 
 40.35  within six months one year after the vendee or the owner 
 40.36  discovers or should have discovered the loss or damage; 
 41.1      (b) Loss or damage caused by defects in design, 
 41.2   installation, or materials which the vendee or the owner 
 41.3   supplied, installed, or directed to be installed; 
 41.4      (c) Secondary loss or damage such as personal injury or 
 41.5   property damage; 
 41.6      (d) Loss or damage from normal wear and tear; 
 41.7      (e) Loss or damage from normal shrinkage caused by drying 
 41.8   of the dwelling or the home improvement within tolerances of 
 41.9   building standards; 
 41.10     (f) Loss or damage from dampness and condensation due to 
 41.11  insufficient ventilation after occupancy, when the inadequate 
 41.12  ventilation is attributable to conditions resulting from 
 41.13  compliance with the requirements of the state energy code in 
 41.14  effect at the time of construction; 
 41.15     (g) Loss or damage from negligence, improper maintenance or 
 41.16  alteration of the dwelling or the home improvement by parties 
 41.17  other than the vendor or the home improvement contractor; 
 41.18     (h) Loss or damage from changes in grading of the ground 
 41.19  around the dwelling or the home improvement by parties other 
 41.20  than the vendor or the home improvement contractor; 
 41.21     (i) Landscaping or insect loss or damage; 
 41.22     (j) Loss or damage from failure to maintain the dwelling or 
 41.23  the home improvement in good repair; 
 41.24     (k)  Loss or damage which the vendee or the owner, whenever 
 41.25  feasible, has not taken timely action to minimize; 
 41.26     (l)  Loss or damage which occurs after the dwelling or the 
 41.27  home improvement is no longer used primarily as a residence; 
 41.28     (m)  Accidental loss or damage usually described as acts of 
 41.29  God, including, but not limited to:  fire, explosion, smoke, 
 41.30  water escape, windstorm, hail or lightning, falling trees, 
 41.31  aircraft and vehicles, flood, and earthquake, except when the 
 41.32  loss or damage is caused by failure to comply with building 
 41.33  standards; 
 41.34     (n)  Loss or damage from soil movement which is compensated 
 41.35  by legislation or covered by insurance; 
 41.36     (o)  Loss or damage due to soil conditions where 
 42.1   construction is done upon lands owned by the vendee or the owner 
 42.2   and obtained by the vendee or owner from a source independent of 
 42.3   the vendor or the home improvement contractor; 
 42.4      (p)  In the case of home improvement work, loss or damage 
 42.5   due to defects in the existing structure and systems not caused 
 42.6   by the home improvement.  
 42.7      Sec. 60.  [327A.035] [WARRANTY INFORMATION.] 
 42.8      A vendor or home improvement contractor must, prior to 
 42.9   entering into a contract covered by this chapter for the sale of 
 42.10  a dwelling or of home improvement work, provide the vendee or 
 42.11  owner with a copy of sections 327A.02 and 327A.03. 
 42.12     Sec. 61.  Minnesota Statutes 1996, section 332.32, is 
 42.13  amended to read: 
 42.14     332.32 [EXCLUSIONS.] 
 42.15     The term "collection agency" shall not include persons 
 42.16  whose collection activities in this state are confined to and 
 42.17  are directly related to the operation of a business other than 
 42.18  that of a collection agency such as, but not limited to banks 
 42.19  when collecting accounts owed to the banks and when the bank 
 42.20  will sustain any loss arising from uncollectible accounts, 
 42.21  abstract companies doing an escrow business, real estate 
 42.22  brokers, public officers, persons acting under order of a court, 
 42.23  lawyers, trust companies, insurance companies, credit unions, 
 42.24  savings associations, loan or finance companies unless they are 
 42.25  engaged in asserting, enforcing or prosecuting unsecured claims 
 42.26  which have been purchased from any person, firm, or association 
 42.27  when there is recourse to the seller for all or part of the 
 42.28  claim if the claim is not collected, or any person residing in a 
 42.29  state that regulates collection agencies and whose collection 
 42.30  activities in this state are limited to incidental contact with 
 42.31  a resident debtor on behalf of an out-of-state creditor.  As 
 42.32  used in this section, "incidental contact" means annual contact 
 42.33  with ten or fewer resident debtors through the use of interstate 
 42.34  communications, including telephone, mail service, or facsimile 
 42.35  transmissions.  A creditor is deemed to be a Minnesota creditor 
 42.36  if a credit card agreement, from which the debt arises, was 
 43.1   signed in the state of Minnesota.  
 43.2      Sec. 62.  Minnesota Statutes 1996, section 383B.79, 
 43.3   subdivision 1, is amended to read: 
 43.4      Subdivision 1.  [PROGRAM CREATED.] A multijurisdictional 
 43.5   reinvestment program involving Hennepin county, the cities of 
 43.6   Minneapolis, Brooklyn Center, and other interested statutory or 
 43.7   home rule charter cities in Hennepin county, the Minneapolis 
 43.8   park board, and the suburban Hennepin county park district is 
 43.9   created.  The multijurisdictional program must include plans for 
 43.10  housing rehabilitation and removals, industrial polluted land 
 43.11  cleanup, water ponding, environmental cleanup, community 
 43.12  corridor connections, corridor planning, creation of green 
 43.13  space, acquisition of property, development and redevelopment of 
 43.14  parks and open space, water quality and lakeshore improvement, 
 43.15  development and redevelopment of housing and existing commercial 
 43.16  projects, and job creation.  
 43.17     Sec. 63.  Minnesota Statutes 1996, section 383B.79, is 
 43.18  amended by adding a subdivision to read: 
 43.19     Subd. 6.  [ADMINISTRATION.] The board of county 
 43.20  commissioners shall administer the program and funds and bond 
 43.21  for projects in this section either as a county board or a 
 43.22  housing and redevelopment authority.  The board of county 
 43.23  commissioners may acquire property in connection with the 
 43.24  project known as the Humboldt Avenue Greenway from any funds 
 43.25  under its control. 
 43.26     Sec. 64.  Minnesota Statutes 1996, section 446A.072, 
 43.27  subdivision 2, is amended to read: 
 43.28     Subd. 2.  [TYPE OF SUPPLEMENTAL ASSISTANCE.] Supplemental 
 43.29  assistance shall be in the form of zero percent loans, with loan 
 43.30  repayments beginning February 20 or August 20 following the 
 43.31  scheduled date of the project obtaining grants.  If one year 
 43.32  after the initiation of operation of the project, the project 
 43.33  does not meet the operational performance standards established 
 43.34  by the agency, the grant must be repaid.  Upon receipt of notice 
 43.35  from the agency that the project operational performance 
 43.36  standards have been met, the authority will forgive the 
 44.1   scheduled loan repayments made under this section.  If not 
 44.2   forgiven, loan Grant repayments shall be deferred upon request 
 44.3   from the commissioner of the agency for six-month periods, 
 44.4   provided the commissioner has determined that satisfactory 
 44.5   progress is being made to achieve project performance or is 
 44.6   developing or implementing a corrective action plan. 
 44.7      Sec. 65.  Minnesota Statutes 1996, section 446A.072, 
 44.8   subdivision 4, is amended to read: 
 44.9      Subd. 4.  [FUNDING LEVEL.] (a) The authority shall provide 
 44.10  supplemental assistance for essential project component costs as 
 44.11  certified by the commissioner of the pollution control agency 
 44.12  under section 116.182, subdivision 4.  
 44.13     (b) A municipality may not receive more than $4,000,000 
 44.14  under this section unless specifically approved by law. 
 44.15     (c) The authority will calculate the grant amount needed 
 44.16  for the essential project component costs by first determining 
 44.17  the amount needed to reduce a municipality's monthly residential 
 44.18  sewer service charge to $25 or to an annual residential sewer 
 44.19  service charge in excess of 1.5 percent of the municipality's 
 44.20  median household income, whichever is less, and then multiplying 
 44.21  that amount by 80 percent to determine the actual award amount 
 44.22  to supplement loans under section 446A.07 or provide up to 
 44.23  one-third of the amount of the grant funding level required by 
 44.24  USDA/RECD for projects listed on the agency's intended use plan. 
 44.25     (d) The authority shall provide supplemental assistance for 
 44.26  up to one-half of the eligible grant funding level determined by 
 44.27  the United States Department of Agriculture Rural Development 
 44.28  funding for projects listed on the agency's project priority 
 44.29  list, in priority order.  For municipalities that are not 
 44.30  eligible for United State Department of Agriculture Rural 
 44.31  Development funding for wastewater, the authority shall provide 
 44.32  supplemental assistance for: (1) essential project component 
 44.33  costs calculated by first determining the amount needed to 
 44.34  reduce a municipality's annual residential sewer costs to 1.4 
 44.35  percent of the municipality's median household income or $25 per 
 44.36  month per household, whichever is greater, and then multiplying 
 45.1   that amount by 80 percent to determine the actual award amount 
 45.2   to supplement loans under section 446A.07; and (2) up to 50 
 45.3   percent of the incremental costs specifically identified by the 
 45.4   agency as being attributable to more stringent wastewater 
 45.5   standards required to protect outstanding resource value waters 
 45.6   or outstanding international resource value waters. 
 45.7      (d) Notwithstanding paragraph (b), in the event that a 
 45.8   municipality's monthly residential sewer service charges average 
 45.9   above $50, the authority will provide 90 percent of the grant 
 45.10  amount needed to reduce the average monthly sewer service charge 
 45.11  to $50, provided the project is ranked in the top 50 percentile 
 45.12  of the agency's intended use plan. 
 45.13     (e) Notwithstanding paragraphs (b), (c), and (d), a 
 45.14  municipality with an annual median household income of $40,000 
 45.15  or greater shall not be eligible for a grant, except for 
 45.16  incremental costs specifically identified by the agency as being 
 45.17  attributable to more stringent wastewater standards required to 
 45.18  protect outstanding resource value waters or outstanding 
 45.19  international resource value waters. 
 45.20     (f) The authority shall provide supplemental assistance to 
 45.21  a municipality that would not otherwise qualify for supplemental 
 45.22  assistance if: 
 45.23     (1) the municipality voluntarily accepts a sewer connection 
 45.24  from another governmental unit to serve residential, industrial, 
 45.25  or commercial developments that were completed before March 1, 
 45.26  1996, or are on lots whose plats were recorded before that date; 
 45.27  and 
 45.28     (2) fees charged by the municipality for the connection 
 45.29  must take into account state and federal grants used by the 
 45.30  municipality for the construction of the treatment plant. 
 45.31  The amount of supplemental assistance under this paragraph must 
 45.32  be sufficient to reduce debt service payments under section 
 45.33  446A.07 to an extent equivalent to a zero percent loan in an 
 45.34  amount up to the other governmental unit's project costs 
 45.35  necessary for connection.  Eligibility for supplemental 
 45.36  assistance under this paragraph ends three years after the 
 46.1   agency certifies that the connection has met the operational 
 46.2   performance standards established by the agency. 
 46.3      Sec. 66.  Minnesota Statutes 1996, section 462A.05, 
 46.4   subdivision 14, is amended to read: 
 46.5      Subd. 14.  [REHABILITATION LOANS.] It may agree to 
 46.6   purchase, make, or otherwise participate in the making, and may 
 46.7   enter into commitments for the purchase, making, or 
 46.8   participation in the making, of eligible loans for 
 46.9   rehabilitation to persons and families of low and moderate 
 46.10  income, and to owners of existing residential housing for 
 46.11  occupancy by such persons and families, for the rehabilitation 
 46.12  of existing residential housing owned by them.  The loans may be 
 46.13  insured or uninsured and may be made with security, or may be 
 46.14  unsecured, as the agency deems advisable.  The loans may be in 
 46.15  addition to or in combination with long-term eligible mortgage 
 46.16  loans under subdivision 3.  They may be made in amounts 
 46.17  sufficient to refinance existing indebtedness secured by the 
 46.18  property, if refinancing is determined by the agency to be 
 46.19  necessary to permit the owner to meet the owner's housing cost 
 46.20  without expending an unreasonable portion of the owner's income 
 46.21  thereon.  No loan for rehabilitation shall be made unless the 
 46.22  agency determines that the loan will be used primarily to make 
 46.23  the housing more desirable to live in, to increase the market 
 46.24  value of the housing, for compliance with state, county or 
 46.25  municipal building, housing maintenance, fire, health or similar 
 46.26  codes and standards applicable to housing, or to accomplish 
 46.27  energy conservation related improvements.  In unincorporated 
 46.28  areas and municipalities not having codes and standards, the 
 46.29  agency may, solely for the purpose of administering the 
 46.30  provisions of this chapter, establish codes and standards.  
 46.31  Except for accessibility improvements under this subdivision and 
 46.32  subdivisions 14a and 24, clause (1), no secured loan for 
 46.33  rehabilitation of any property shall be made in an amount which, 
 46.34  with all other existing indebtedness secured by the property, 
 46.35  would exceed 110 percent of its market value, as determined by 
 46.36  the agency.  No loan under this subdivision shall be denied 
 47.1   solely because the loan will not be used for placing the 
 47.2   residential housing in full compliance with all state, county, 
 47.3   or municipal building, housing maintenance, fire, health, or 
 47.4   similar codes and standards applicable to housing.  
 47.5   Rehabilitation loans shall be made only when the agency 
 47.6   determines that financing is not otherwise available, in whole 
 47.7   or in part, from private lenders upon equivalent terms and 
 47.8   conditions.  Accessibility rehabilitation loans authorized under 
 47.9   this subdivision may be made to eligible persons and families 
 47.10  without limitations relating to the maximum incomes of the 
 47.11  borrowers if: 
 47.12     (1) the borrower or a member of the borrower's family 
 47.13  requires a level of care provided in a hospital, skilled nursing 
 47.14  facility, or intermediate care facility for persons with mental 
 47.15  retardation or related conditions; 
 47.16     (2) home care is appropriate; and 
 47.17     (3) the improvement will enable the borrower or a member of 
 47.18  the borrower's family to reside in the housing. 
 47.19     Sec. 67.  Minnesota Statutes 1997 Supplement, section 
 47.20  462A.05, subdivision 39, is amended to read: 
 47.21     Subd. 39.  [EQUITY TAKE-OUT LOANS.] The agency may make 
 47.22  equity take-out loans to owners of section 8 project-based and 
 47.23  section 236 federally assisted rental property upon which the 
 47.24  agency holds a first mortgage.  The owner of a section 8 
 47.25  project-based federally assisted rental property must agree to 
 47.26  participate in the section 8 federal assistance program and 
 47.27  extend the low-income affordability restrictions on the housing 
 47.28  for the maximum term of the section 8 federal assistance 
 47.29  contract.  The owner of section 236 rental property must agree 
 47.30  to participate in the section 236 interest reduction payments 
 47.31  program, to extend any existing low-income affordability 
 47.32  restrictions on the housing, and to extend any rental assistance 
 47.33  payments for the maximum term permitted under the agreement for 
 47.34  rental assistance payments.  The An equity take-out loan must be 
 47.35  secured by a subordinate loan on the property and may include 
 47.36  additional appropriate security determined necessary by the 
 48.1   agency. 
 48.2      Sec. 68.  Minnesota Statutes 1997 Supplement, section 
 48.3   462A.205, subdivision 1, is amended to read: 
 48.4      Subdivision 1.  [FAMILY STABILIZATION DEMONSTRATION 
 48.5   PROJECT.] The agency, in consultation with the department of 
 48.6   human services, may establish a rent assistance for family 
 48.7   stabilization demonstration project.  The purpose of the project 
 48.8   is to provide rental assistance to families who, at the time of 
 48.9   initial eligibility for rental assistance under this section, 
 48.10  were receiving public assistance, and had a caretaker parent 
 48.11  participating in a self-sufficiency program who was complying 
 48.12  with the parent's job search support plan or employment plan and 
 48.13  at least one minor child and to provide rental assistance to 
 48.14  families who, at the time of initial eligibility for rental 
 48.15  assistance under this section, were receiving public assistance, 
 48.16  and had a caretaker parent who had earned income and with at 
 48.17  least one minor child.  The demonstration project is limited to 
 48.18  counties with high average housing costs.  The program must 
 48.19  offer two options:  a voucher option and a project-based voucher 
 48.20  option.  The funds may be distributed on a request for proposal 
 48.21  basis.  
 48.22     Sec. 69.  Minnesota Statutes 1997 Supplement, section 
 48.23  462A.205, subdivision 2, is amended to read: 
 48.24     Subd. 2.  [DEFINITIONS.] For the purposes of this section, 
 48.25  the following terms have the meanings given them. 
 48.26     (a) "Caretaker parent" means a parent, relative caretaker, 
 48.27  or minor caretaker as defined by the aid to families with 
 48.28  dependent children program, sections 256.72 to 256.87, or its 
 48.29  successor program. 
 48.30     (b) "County agency" means the agency designated by the 
 48.31  county board to implement financial assistance for current 
 48.32  public assistance programs and for the Minnesota family 
 48.33  investment program statewide. 
 48.34     (c) "Counties with high average housing costs" means 
 48.35  counties whose average federal section 8 fair market rents as 
 48.36  determined by the Department of Housing and Urban Development 
 49.1   are in the highest one-third of average rents in the state. 
 49.2      (d) "Designated rental property" is rental property (1) 
 49.3   that is made available by a self-sufficiency program for use by 
 49.4   participating families and meets federal section 8 existing 
 49.5   quality standards, or (2) that has received federal, state, or 
 49.6   local rental rehabilitation assistance since January 1, 1987, 
 49.7   and meets federal section 8 existing housing quality standards. 
 49.8      (e) "Earned income" for a family receiving rental 
 49.9   assistance under this section means cash or in-kind income 
 49.10  earned through the receipt of wages, salary, commissions, profit 
 49.11  from employment activities, net profit from self-employment 
 49.12  activities, payments made by an employer for regularly accrued 
 49.13  vacation or sick leave, and any other profit from activity 
 49.14  earned through effort or labor. 
 49.15     (f) "Employment and training service provider" means a 
 49.16  provider as defined in chapter 256J.  
 49.17     (g) "Employment plan" means a plan as defined in chapter 
 49.18  256J.  
 49.19     (h) "Family or participating family" means a family that at 
 49.20  the time it begins receiving rent assistance has at least one 
 49.21  member who is a recipient of public assistance, and: 
 49.22     (1) a family with a caretaker parent who is participating 
 49.23  in a self-sufficiency program complying with the parent's job 
 49.24  search support plan or employment plan and with at least one 
 49.25  minor child; 
 49.26     (2) a family that, at the time it began receiving rent 
 49.27  assistance under this section, had a caretaker parent 
 49.28  participating in a self-sufficiency program complying with the 
 49.29  parent's job search support plan or employment plan and had at 
 49.30  least one minor child; 
 49.31     (3) a family with a caretaker parent who is receiving 
 49.32  public assistance and has earned income and with at least one 
 49.33  minor child; or 
 49.34     (4) a family that, at the time it began receiving rent 
 49.35  assistance under this section, had a caretaker parent who had 
 49.36  earned income and at least one minor child.  
 50.1      (g) (i) "Gross family income" for a family receiving rental 
 50.2   assistance under this section means the gross amount of the 
 50.3   wages, salaries, social security payments, pensions, workers' 
 50.4   compensation, reemployment insurance, the cash assistance 
 50.5   portion of public assistance payments, alimony, and child 
 50.6   support, and income from assets received by the family. 
 50.7      (h) (j) "Local housing organization" means the agency of 
 50.8   local government responsible for administering the Department of 
 50.9   Housing and Urban Development's section 8 existing voucher and 
 50.10  certificate program or a nonprofit or for-profit organization 
 50.11  experienced in housing management. 
 50.12     (i) (k) "Public assistance" means aid to families with 
 50.13  dependent children, or its successor program, family general 
 50.14  assistance, or its successor program, or family work readiness, 
 50.15  or its successor program. 
 50.16     (j) "Self-sufficiency program" means a program operated by 
 50.17  an employment and training service provider as defined in 
 50.18  chapter 256J, an employability program administered by a 
 50.19  community action agency, or courses of study at an accredited 
 50.20  institution of higher education pursued with at least half-time 
 50.21  student status. 
 50.22     Sec. 70.  Minnesota Statutes 1997 Supplement, section 
 50.23  462A.205, subdivision 5, is amended to read: 
 50.24     Subd. 5.  [VOUCHER OPTION.] At least one-half of the 
 50.25  appropriated funds must be made available for a voucher option.  
 50.26  Under the voucher option, the Minnesota housing finance agency, 
 50.27  in consultation with the department of human services, will 
 50.28  award a number of vouchers to self-sufficiency program 
 50.29  administrators employment and training service providers for 
 50.30  participating families and to county agencies for participating 
 50.31  families with earned income.  Families may use the voucher for 
 50.32  any rental housing that is certified by the local housing 
 50.33  organization as meeting section 8 existing housing quality 
 50.34  standards. 
 50.35     Sec. 71.  Minnesota Statutes 1997 Supplement, section 
 50.36  462A.205, subdivision 6, is amended to read: 
 51.1      Subd. 6.  [PROJECT-BASED VOUCHER OPTION.] A portion of the 
 51.2   appropriated funds must be made available for a project-based 
 51.3   voucher option.  Under the project-based voucher option, the 
 51.4   Minnesota housing finance agency, in consultation with the 
 51.5   department of human services, will award a number of vouchers to 
 51.6   self-sufficiency program administrators and to county 
 51.7   agencies employment and training service providers for 
 51.8   participating families who live in designated rental property 
 51.9   that is certified by a local housing organization as meeting 
 51.10  section 8 existing housing quality standards.  
 51.11     Sec. 72.  Minnesota Statutes 1997 Supplement, section 
 51.12  462A.205, subdivision 9, is amended to read: 
 51.13     Subd. 9.  [VOUCHERS FOR FAMILIES WITH A CARETAKER PARENT 
 51.14  WITH EARNED INCOME.] (a) Applications to provide the rental 
 51.15  assistance for families with a caretaker parent with earned 
 51.16  income under either the voucher or project-based option must be 
 51.17  submitted jointly by a local housing organization and a county 
 51.18  agency an employment and training service provider.  The 
 51.19  application must include a description of how the caretaker 
 51.20  parent participants will be selected. 
 51.21     (b) County agencies Employment and training service 
 51.22  providers awarded vouchers must select the caretaker parents 
 51.23  with earned income whose families will receive the rental 
 51.24  assistance.  The county agency employment and training service 
 51.25  provider must notify the local housing organization and the 
 51.26  agency if: 
 51.27     (1) at the time of annual recertification, the caretaker 
 51.28  parent no longer has earned income and is not in compliance with 
 51.29  the caretaker parent's employment plan or job search plan; and 
 51.30     (2) for a period of six months after the annual 
 51.31  recertification, the caretaker parent has no earned income and 
 51.32  has failed to comply with the job search support plan or 
 51.33  employment plan. 
 51.34     (c) The county agency local housing organization must 
 51.35  provide the caretaker parent who, at the time of annual 
 51.36  recertification, has no earned income and is not in compliance 
 52.1   with the job search support plan or employment plan with the 
 52.2   notice specified in Minnesota Rules, part 4900.3379.  The county 
 52.3   agency local housing organization must send a subsequent notice 
 52.4   to the caretaker parent, the local housing organization, and the 
 52.5   Minnesota housing finance agency 60 days before the termination 
 52.6   of rental assistance. 
 52.7      (d) If the local housing organization receives notice from 
 52.8   a county agency an employment and training service provider that 
 52.9   a caretaker parent whose initial eligibility for rental 
 52.10  assistance was based on the receipt of earned income no longer 
 52.11  has earned income and for a period of six months after the 
 52.12  termination of earned income the annual recertification has 
 52.13  failed to comply with the caretaker parent's job search plan or 
 52.14  employment plan, the local housing organization must notify the 
 52.15  property owner that rental assistance may terminate and notify 
 52.16  the caretaker parent of the termination of rental assistance 
 52.17  under Minnesota Rules, part 4900.3380. 
 52.18     (e) The county agency employment and training service 
 52.19  provider awarded vouchers for families with a caretaker parent 
 52.20  with earned income must comply with the provisions of Minnesota 
 52.21  Rules, part 4900.3377. 
 52.22     (f) For families whose initial eligibility for rental 
 52.23  assistance was based on the receipt of earned income, rental 
 52.24  assistance must be terminated under any of the following 
 52.25  conditions: 
 52.26     (1) the family is evicted from the property for cause; 
 52.27     (2) the caretaker parent no longer has earned income and, 
 52.28  after six months after an annual recertification, is not in 
 52.29  compliance with the parent's job search or employment plan; 
 52.30     (3) 30 percent of the family's gross income equals or 
 52.31  exceeds the amount of the housing costs for two or more 
 52.32  consecutive months; 
 52.33     (4) the family has received rental assistance under this 
 52.34  section for a 36-month 60-month period; or 
 52.35     (5) the rental unit no longer meets federal section 8 
 52.36  existing housing quality standards, the owner refused to make 
 53.1   necessary repairs or alterations to bring the rental unit into 
 53.2   compliance within a reasonable time, and the caretaker parent 
 53.3   refused to relocate to a qualifying unit. 
 53.4      (g) If a county agency an employment and training service 
 53.5   provider determines that a caretaker parent no longer has earned 
 53.6   income and is not in compliance with the parent's job search or 
 53.7   employment plan, the county agency employment and training 
 53.8   service provider must notify the caretaker parent of that 
 53.9   determination.  The notice must be in writing and must explain 
 53.10  the effect of not having earned income or failing to be in 
 53.11  compliance with the job search or employment plan will have on 
 53.12  the rental assistance.  The notice must: 
 53.13     (1) state that rental assistance will end six months after 
 53.14  earned income has ended an annual recertification; 
 53.15     (2) specify the date the rental assistance will end; 
 53.16     (3) explain that after the date specified, the caretaker 
 53.17  parent will be responsible for the total housing costs; 
 53.18     (4) describe the actions the caretaker parent may take to 
 53.19  avoid termination of rental assistance; and 
 53.20     (5) inform the caretaker parent of the caretaker parent's 
 53.21  responsibility to notify the county agency employment and 
 53.22  training service provider if the caretaker parent has earned 
 53.23  income. 
 53.24     Sec. 73.  Minnesota Statutes 1996, section 462A.21, is 
 53.25  amended by adding a subdivision to read: 
 53.26     Subd. 25.  [FULL CYCLE HOMEOWNERSHIP.] It may spend money 
 53.27  for the purposes of the full cycle homeownership services 
 53.28  program under section 462A.209, and may pay the costs and 
 53.29  expenses necessary and incidental to the development and 
 53.30  operation of the program. 
 53.31     Sec. 74.  Minnesota Statutes 1996, section 462A.222, 
 53.32  subdivision 3, is amended to read: 
 53.33     Subd. 3.  [ALLOCATION PROCEDURE.] (a) Projects will be 
 53.34  awarded tax credits in three competitive rounds on an annual 
 53.35  basis.  The date for applications for each round must be 
 53.36  determined by the agency.  No allocating agency may award tax 
 54.1   credits prior to the application dates established by the agency.
 54.2      (b) Each allocating agency must meet the requirements of 
 54.3   section 42(m) of the Internal Revenue Code of 1986, as amended 
 54.4   through December 31, 1989, for the allocation of tax credits and 
 54.5   the selection of projects. 
 54.6      (c) For projects that are eligible for an allocation of 
 54.7   credits pursuant to section 42(h)(4) of the Internal Revenue 
 54.8   Code of 1986, as amended, tax credits may only be allocated if 
 54.9   the project satisfies the requirements of the allocating 
 54.10  agency's qualified allocation plan.  For projects that are 
 54.11  eligible for an allocation of credits pursuant to section 
 54.12  42(h)(4) of the Internal Revenue Code of 1986, as amended, for 
 54.13  which the agency is the issuer of the bonds for the project, or 
 54.14  the issuer of the bonds for the project is located outside the 
 54.15  jurisdiction of a city or county that has received reserved tax 
 54.16  credits, the applicable allocation plan is the agency's 
 54.17  qualified allocation plan. 
 54.18     (d) For applications submitted for the first round, an 
 54.19  allocating agency may allocate tax credits only to the following 
 54.20  types of projects: 
 54.21     (1) in the metropolitan area: 
 54.22     (i) new construction or substantial rehabilitation of 
 54.23  projects in which, for the term of the extended use period, at 
 54.24  least 75 percent of the total tax credit units are single-room 
 54.25  occupancy, efficiency, or one bedroom units and which are 
 54.26  affordable by households whose income does not exceed 30 percent 
 54.27  of the median income; 
 54.28     (ii) new construction or substantial rehabilitation family 
 54.29  housing projects that are not restricted to persons who are 55 
 54.30  years of age or older and in which, for the term of the extended 
 54.31  use period, at least 75 percent of the tax credit units contain 
 54.32  two or more bedrooms and at least one-third of the 75 percent 
 54.33  contain three or more bedrooms; or 
 54.34     (iii) substantial rehabilitation projects in neighborhoods 
 54.35  targeted by the city for revitalization; 
 54.36     (2) outside the metropolitan area, projects which meet a 
 55.1   locally identified housing need and which are in short supply in 
 55.2   the local housing market as evidenced by credible data submitted 
 55.3   with the application; 
 55.4      (3) projects that are not restricted to persons of a 
 55.5   particular age group and in which, for the term of the extended 
 55.6   use period, a percentage of the units are set aside and rented 
 55.7   to persons: 
 55.8      (i) with a serious and persistent mental illness as defined 
 55.9   in section 245.462, subdivision 20, paragraph (c); 
 55.10     (ii) with a developmental disability as defined in United 
 55.11  States Code, title 42, section 6001, paragraph (5), as amended 
 55.12  through December 31, 1990; 
 55.13     (iii) who have been assessed as drug dependent persons as 
 55.14  defined in section 254A.02, subdivision 5, and are receiving or 
 55.15  will receive care and treatment services provided by an approved 
 55.16  treatment program as defined in section 254A.02, subdivision 2; 
 55.17     (iv) with a brain injury as defined in section 256B.093, 
 55.18  subdivision 4, paragraph (a); or 
 55.19     (v) with permanent physical disabilities that substantially 
 55.20  limit one or more major life activities, if at least 50 percent 
 55.21  of the units in the project are accessible as provided under 
 55.22  Minnesota Rules, chapter 1340; 
 55.23     (4) projects, whether or not restricted to persons of a 
 55.24  particular age group, which preserve existing subsidized housing 
 55.25  which is subject to prepayment if the use of tax credits is 
 55.26  necessary to prevent conversion to market rate use; or 
 55.27     (5) projects financed by the Farmers Home Administration, 
 55.28  or its successor agency, which meet statewide distribution goals.
 55.29     (e) Before the date for applications for the second round, 
 55.30  the allocating agencies other than the agency shall return all 
 55.31  uncommitted and unallocated tax credits to the pool from which 
 55.32  they were allocated, along with copies of any allocation or 
 55.33  commitment.  In the second round, the agency shall allocate the 
 55.34  remaining credits from the regional pools to projects from the 
 55.35  respective regions.  
 55.36     (f) In the third round, all unallocated tax credits must be 
 56.1   transferred to a unified pool for allocation by the agency on a 
 56.2   statewide basis. 
 56.3      (g) Unused portions of the state ceiling for low-income 
 56.4   housing tax credits reserved to cities and counties for 
 56.5   allocation may be returned at any time to the agency for 
 56.6   allocation. 
 56.7      (h) If an allocating agency determines, at any time after 
 56.8   the initial commitment or allocation for a specific project, 
 56.9   that a project is no longer eligible for all or a portion of the 
 56.10  low-income housing tax credits committed or allocated to the 
 56.11  project, the credits must be transferred to the agency to be 
 56.12  reallocated pursuant to the procedures established in paragraphs 
 56.13  (e) to (g); provided that if the tax credits for which the 
 56.14  project is no longer eligible are from the current year's annual 
 56.15  ceiling and the allocating agency maintains a waiting list, the 
 56.16  allocating agency may continue to commit or allocate the credits 
 56.17  until not later than October 1, at which time any uncommitted 
 56.18  credits must be transferred to the agency. 
 56.19     Sec. 75.  Minnesota Statutes 1996, section 469.303, is 
 56.20  amended to read: 
 56.21     469.303 [ELIGIBILITY REQUIREMENTS.] 
 56.22     An area within the city is eligible for designation as an 
 56.23  enterprise zone if the area (1) includes census tracts eligible 
 56.24  for a federal empowerment zone or enterprise community as 
 56.25  defined by the United States Department of Housing and Urban 
 56.26  Development under Public Law Number 103-66, notwithstanding the 
 56.27  maximum zone population standard under the federal empowerment 
 56.28  zone program for cities with a population under 500,000 or, (2) 
 56.29  is an area within a city of the second class that is designated 
 56.30  as an economically depressed area by the United States 
 56.31  Department of Commerce, or (3) includes property located in St. 
 56.32  Paul in a transit zone as defined in section 473.3915, 
 56.33  subdivision 3. 
 56.34     Sec. 76.  [471.9997] [FEDERALLY ASSISTED RENTAL HOUSING; 
 56.35  IMPACT STATEMENT.] 
 56.36     At least 12 months before termination of participation in a 
 57.1   federally assisted rental housing program, including 
 57.2   project-based section 8 and section 236 rental housing, the 
 57.3   owner of the federally assisted rental housing must submit a 
 57.4   statement regarding the impact of termination on the residents 
 57.5   of the rental housing to the governing body of the local 
 57.6   government unit in which the housing is located.  The impact 
 57.7   statement must identify the number of units that will no longer 
 57.8   be subject to rent restrictions imposed by the federal program, 
 57.9   the estimated rents that will be charged as compared to rents 
 57.10  charged under the federal program, and actions the owner will 
 57.11  take to assist displaced tenants in obtaining other housing.  A 
 57.12  copy of the impact statement must be provided to each resident 
 57.13  of the affected building, the Minnesota housing finance agency, 
 57.14  and, if the property is located in the metropolitan area as 
 57.15  defined in section 473.121, subdivision 2, the metropolitan 
 57.16  council. 
 57.17     Sec. 77.  Minnesota Statutes 1996, section 474A.061, 
 57.18  subdivision 2a, is amended to read: 
 57.19     Subd. 2a.  [HOUSING POOL ALLOCATION.] (a) On the first 
 57.20  business day that falls on a Monday of the calendar year and the 
 57.21  first Monday in February, the commissioner shall allocate 
 57.22  available bonding authority in the housing pool to applications 
 57.23  received by the Monday of the previous week for residential 
 57.24  rental projects that are not restricted to persons who are 55 
 57.25  years of age or older and that meet the eligibility criteria 
 57.26  under section 474A.047, except that allocations may be made to 
 57.27  projects that are restricted to persons who are 55 years of age 
 57.28  or older if the project preserves existing federally assisted 
 57.29  rental housing.  Projects that preserve existing federally 
 57.30  assisted rental housing shall be allocated available bonding 
 57.31  authority in the housing pool prior to the allocation of 
 57.32  available bonding authority to other eligible residential rental 
 57.33  projects.  If an issuer that receives an allocation under this 
 57.34  paragraph does not issue obligations equal to all or a portion 
 57.35  of the allocation received within 120 days of the allocation or 
 57.36  returns the allocation to the commissioner, the amount of the 
 58.1   allocation is canceled and returned for reallocation through the 
 58.2   housing pool. 
 58.3      (b) After February 1, and through February 15, the 
 58.4   Minnesota housing finance agency may accept applications from 
 58.5   cities for single-family housing programs which meet program 
 58.6   requirements as follows:  
 58.7      (1) the housing program must meet a locally identified 
 58.8   housing need and be economically viable; 
 58.9      (2) the adjusted income of home buyers may not exceed the 
 58.10  greater of the agency's income limits or 80 percent of the area 
 58.11  median income as published by the Department of Housing and 
 58.12  Urban Development; 
 58.13     (3) house price limits may not exceed: 
 58.14     (i) the greater of agency house price limits or the federal 
 58.15  price limits for housing up to a maximum of $95,000; or 
 58.16     (ii) for a new construction affordability initiative, the 
 58.17  greater of 115 percent of agency house price limits or 90 
 58.18  percent of the median purchase price in the city for which the 
 58.19  bonds are to be sold up to a maximum of $95,000. 
 58.20     Data establishing the median purchase price in the city 
 58.21  must be included in the application by a city requesting house 
 58.22  price limits higher than the housing finance agency's house 
 58.23  price limits; and 
 58.24     (4) an application deposit equal to one percent of the 
 58.25  requested allocation must be submitted before the agency 
 58.26  forwards the list specifying the amounts allocated to the 
 58.27  commissioner under paragraph (c).  The agency shall submit the 
 58.28  city's application and application deposit to the commissioner 
 58.29  when requesting an allocation from the housing pool. 
 58.30     Applications by a consortium shall include the name of each 
 58.31  member of the consortium and the amount of allocation requested 
 58.32  by each member. 
 58.33     The Minnesota housing finance agency may accept 
 58.34  applications from June 15 through June 30 from cities for 
 58.35  single-family housing programs which meet program requirements 
 58.36  specified under clauses (1) to (4) if bonding authority is 
 59.1   available in the housing pool.  The agency must allot available 
 59.2   bonding authority.  For purposes of paragraphs (a) to (g), 
 59.3   "city" means a county or a consortium of local government units 
 59.4   that agree through a joint powers agreement to apply together 
 59.5   for single-family housing programs, and has the meaning given it 
 59.6   in section 462C.02, subdivision 6.  "Agency" means the Minnesota 
 59.7   housing finance agency.  
 59.8      (c) The total amount of allocation for mortgage bonds for 
 59.9   one city is limited to the lesser of:  (i) the amount requested, 
 59.10  or (ii) the product of the total amount available for mortgage 
 59.11  bonds from the housing pool, multiplied by the ratio of each 
 59.12  applicant's population as determined by the most recent estimate 
 59.13  of the city's population released by the state demographer's 
 59.14  office to the total of all the applicants' population, except 
 59.15  that each applicant shall be allocated a minimum of $100,000 
 59.16  regardless of the amount requested or the amount determined 
 59.17  under the formula in clause (ii).  If a city applying for an 
 59.18  allocation is located within a county that has also applied for 
 59.19  an allocation, the city's population will be deducted from the 
 59.20  county's population in calculating the amount of allocations 
 59.21  under this paragraph. 
 59.22     Upon determining the amount of each applicant's allocation, 
 59.23  the agency shall forward a list specifying the amounts allotted 
 59.24  to each application and application deposit checks to the 
 59.25  commissioner. 
 59.26     (d) The agency may issue bonds on behalf of participating 
 59.27  cities.  The agency shall request an allocation from the 
 59.28  commissioner for all applicants who choose to have the agency 
 59.29  issue bonds on their behalf and the commissioner shall allocate 
 59.30  the requested amount to the agency.  The agency may request an 
 59.31  allocation at any time after the first Monday in February and 
 59.32  through the last Monday in July, but may request an allocation 
 59.33  no later than the last Monday in July.  The commissioner shall 
 59.34  return any application deposit to a city that paid an 
 59.35  application deposit under paragraph (b), clause (4), but was not 
 59.36  part of the list forwarded to the commissioner under paragraph 
 60.1   (c). 
 60.2      (e) A city may choose to issue bonds on its own behalf or 
 60.3   through a joint powers agreement or may use bonding authority 
 60.4   for mortgage credit certificates and may request an allocation 
 60.5   from the commissioner.  If the total amount requested by all 
 60.6   applicants exceeds the amount available in the pool, the city 
 60.7   may not receive a greater allocation than the amount it would 
 60.8   have received under the list forwarded by the Minnesota housing 
 60.9   finance agency to the commissioner.  No city may request or 
 60.10  receive an allocation from the commissioner until the list under 
 60.11  paragraph (c) has been forwarded to the commissioner.  A city 
 60.12  must request an allocation from the commissioner no later than 
 60.13  14 days before the unified pool is created pursuant to section 
 60.14  474A.091, subdivision 1.  On and after the first Monday in 
 60.15  February and through the last Monday in July, no city may 
 60.16  receive an allocation from the housing pool which has not first 
 60.17  applied to the Minnesota housing finance agency.  The 
 60.18  commissioner shall allocate the requested amount to the city or 
 60.19  cities subject to the limitations under this paragraph.  
 60.20     If a city issues mortgage bonds from an allocation received 
 60.21  under this paragraph, the issuer must provide for the recycling 
 60.22  of funds into new loans.  If the issuer is not able to provide 
 60.23  for recycling, the issuer must notify the commissioner in 
 60.24  writing of the reason that recycling was not possible and the 
 60.25  reason the issuer elected not to have the Minnesota housing 
 60.26  finance agency issue the bonds.  "Recycling" means the use of 
 60.27  money generated from the repayment and prepayment of loans for 
 60.28  further eligible loans or for the redemption of bonds and the 
 60.29  issuance of current refunding bonds. 
 60.30     (f) No entitlement city or county or city in an entitlement 
 60.31  county may apply for or be allocated authority to issue bonds or 
 60.32  use mortgage credit certificates from the housing pool. 
 60.33     (g) A city that does not use at least 50 percent of their 
 60.34  allotment by the date applications are due for the first 
 60.35  allocation that is made from the housing pool for single-family 
 60.36  housing programs in the immediately succeeding calendar year may 
 61.1   not apply to the housing pool for a single-family mortgage bond 
 61.2   or mortgage credit certificate program allocation or receive an 
 61.3   allotment from the housing pool in the succeeding two calendar 
 61.4   years.  Each local government unit in a consortium must meet the 
 61.5   requirements of this paragraph. 
 61.6      Sec. 78.  Minnesota Statutes 1996, section 541.051, 
 61.7   subdivision 1, is amended to read: 
 61.8      Subdivision 1.  (a) Except where fraud is involved, no 
 61.9   action by any person in contract, tort, or otherwise to recover 
 61.10  damages for any injury to property, real or personal, or for 
 61.11  bodily injury or wrongful death, arising out of the defective 
 61.12  and unsafe condition of an improvement to real property, nor any 
 61.13  action for contribution or indemnity for damages sustained on 
 61.14  account of the injury, shall be brought against any person 
 61.15  performing or furnishing the design, planning, supervision, 
 61.16  materials, or observation of construction or construction of the 
 61.17  improvement to real property or against the owner of the real 
 61.18  property more than two three years after discovery of the injury 
 61.19  or, in the case of an action for contribution or indemnity, 
 61.20  accrual of the cause of action, nor, in any event shall such a 
 61.21  cause of action accrue more than ten years after substantial 
 61.22  completion of the construction.  Date of substantial completion 
 61.23  shall be determined by the date when construction is 
 61.24  sufficiently completed so that the owner or the owner's 
 61.25  representative can occupy or use the improvement for the 
 61.26  intended purpose.  
 61.27     (b) For purposes of paragraph (a), a cause of action 
 61.28  accrues upon discovery of the injury or, in the case of an 
 61.29  action for contribution or indemnity, upon payment of a final 
 61.30  judgment, arbitration award, or settlement arising out of the 
 61.31  defective and unsafe condition. 
 61.32     (c) Nothing in this section shall apply to actions for 
 61.33  damages resulting from negligence in the maintenance, operation 
 61.34  or inspection of the real property improvement against the owner 
 61.35  or other person in possession. 
 61.36     (d) The limitations prescribed in this section do not apply 
 62.1   to the manufacturer or supplier of any equipment or machinery 
 62.2   installed upon real property. 
 62.3      Sec. 79.  Minnesota Statutes 1996, section 541.051, 
 62.4   subdivision 4, is amended to read: 
 62.5      Subd. 4.  This section shall not apply to actions based on 
 62.6   breach of the statutory warranties set forth in section 327A.02, 
 62.7   or to actions based on breach of an express written warranty, 
 62.8   provided such actions shall be brought within two three years of 
 62.9   the discovery of the breach. 
 62.10     Sec. 80.  Laws 1997, chapter 200, article 1, section 12, 
 62.11  subdivision 2, is amended to read: 
 62.12  Subd. 2.  Workers' Compensation
 62.13      12,152,000 12,202,000     12,160,000 12,110,000
 62.14  This appropriation is from the workers' 
 62.15  compensation fund. 
 62.16  $125,000 the first year and $125,000 
 62.17  the second year is for grants to the 
 62.18  Vinland Center for rehabilitation 
 62.19  service. 
 62.20  Notwithstanding Minnesota Statutes, 
 62.21  section 79.253, the following 
 62.22  appropriations are made from the 
 62.23  assigned risk safety account in the 
 62.24  special compensation fund to the 
 62.25  commissioner of labor and industry: 
 62.26  (a) $77,000 the first year and $73,000 
 62.27  in the second year are for the purpose 
 62.28  of hiring one occupational safety and 
 62.29  health inspector.  The inspector shall 
 62.30  perform safety consultations for 
 62.31  employers through labor-management 
 62.32  committees as defined in Minnesota 
 62.33  Statutes, section 179.81, subdivision 
 62.34  2, under an interagency agreement 
 62.35  entered into between the commissioners 
 62.36  of labor and industry and mediation 
 62.37  services. 
 62.38  (b) $95,000 the first year and $75,000 
 62.39  the second year are for the purpose of 
 62.40  providing information to employers 
 62.41  regarding the prevention of violence in 
 62.42  the workplace. 
 62.43  (c) $25,000 the first year and $25,000 
 62.44  the second year are for the purpose of 
 62.45  safety training and other safety 
 62.46  programs for youth apprentices. 
 62.47     Sec. 81.  Laws 1997, chapter 200, article 1, section 33, 
 62.48  subdivision 1, is amended to read: 
 62.49     Subdivision 1.  [STUDY.] The commissioners of trade and 
 63.1   economic development, labor and industry, and economic 
 63.2   security The governor's workforce development council shall 
 63.3   conduct a joint study of job-training programs funded wholly or 
 63.4   partly with state public funds.  The commissioners The 
 63.5   governor's workforce development council must report annually to 
 63.6   the governor and legislature on the development of the study by 
 63.7   January 15, 1998, and make a final report on the study by 
 63.8   January 15, 1998. 
 63.9      Sec. 82.  Laws 1997, chapter 200, article 1, section 33, is 
 63.10  amended by adding a subdivision to read: 
 63.11     Subd. 4.  [WAGE RATE STUDY.] The governor's workforce 
 63.12  development council must identify for each job-training program 
 63.13  studied: 
 63.14     (1) the number and proportion of placement jobs paying at 
 63.15  least 120 percent of the federal poverty level initially; 
 63.16     (2) the number and proportion of placement jobs paying at 
 63.17  least 150 percent of the federal poverty level initially; 
 63.18     (3) the number and proportion of individuals who were 
 63.19  employed two years after successful program completion; and 
 63.20     (4) the number and proportion of individuals who were 
 63.21  employed five years after successful program completion. 
 63.22     Sec. 83.  Laws 1997, chapter 200, article 1, section 33, is 
 63.23  amended by adding a subdivision to read: 
 63.24     Subd. 5.  [BREAKDOWN OF INFORMATION.] For each program 
 63.25  included in the job-training study, the governor's workforce 
 63.26  development council shall report the information required by 
 63.27  this section for each of the following groups:  men, women, 
 63.28  Blacks, Native Americans, Hispanics, Asians, persons with 
 63.29  disabilities, persons under 25, persons between 25 and 45, 
 63.30  persons over 45, and persons receiving MFIP-S employment and 
 63.31  training and food stamp employment and training (FSET). 
 63.32     Sec. 84.  Laws 1997, chapter 200, article 1, section 33, is 
 63.33  amended by adding a subdivision to read: 
 63.34     Subd. 6.  [COLLECTION OF INFORMATION.] All training 
 63.35  programs being studied by the governor's workforce development 
 63.36  council are to collect demographic information in accordance 
 64.1   with subdivision 5, and are to make available to the Minnesota 
 64.2   department of economic security the social security numbers of 
 64.3   the programs' participants for the purpose of tracking wages and 
 64.4   job retention for two-year and five-year periods following 
 64.5   program completion.  The social security numbers will be used 
 64.6   according to federal law. 
 64.7      Sec. 85.  Laws 1997, Second Special Session chapter 2, 
 64.8   section 4, subdivision 3, is amended to read: 
 64.9   Subd. 3.  Community Rehabilitation
 64.10  Fund Program                                          4,500,000
 64.11  This is a one-time appropriation from 
 64.12  the general fund for the community 
 64.13  rehabilitation fund program under 
 64.14  Minnesota Statutes, section 462A.206.  
 64.15  Of this amount, up to $500,000 is 
 64.16  available for grants for damages 
 64.17  occurring after June 10, 1997, in an 
 64.18  area designated under a presidential 
 64.19  declaration of major 
 64.20  disaster.  Pursuant to a plan approved 
 64.21  by the agency, grants or loans may be 
 64.22  made without regard to the income of 
 64.23  the borrower in communities where at 
 64.24  least 20 percent of the housing stock 
 64.25  is subject to acquisition and buyout as 
 64.26  a result of the 1997 flooding.  The 
 64.27  grants or loans made without regard to 
 64.28  the borrower's income shall not exceed 
 64.29  the maximum grant or loan amount 
 64.30  available to buyout households.  This 
 64.31  appropriation is available until 
 64.32  expended. 
 64.33     Sec. 86.  [LOCAL APPROVAL; EFFECTIVE DATE.] 
 64.34     Section 26 is effective the day after the latter of the 
 64.35  town of Wyoming and the city of Chisago City complies with 
 64.36  Minnesota Statutes, section 645.021, subdivision 3. 
 64.37     Sections 62 and 63 are effective the day after the Hennepin 
 64.38  county board complies with Minnesota Statutes, section 645.021, 
 64.39  subdivision 3. 
 64.40     Sec. 87.  [REPEALER.] 
 64.41     (a) Minnesota Statutes 1997 Supplement, section 446A.072, 
 64.42  subdivision 4a, is repealed. 
 64.43     (b) Laws 1991, chapter 275, section 3, is repealed. 
 64.44     Sec. 88.  [EFFECTIVE DATE.] 
 64.45     Sections 19, 23, 25, 31, 32, subdivision 1, 36, 38, 39, 41, 
 64.46  42, 64, 65, 67, 75, 81 to 85, 87, paragraph (a), and all 
 64.47  provisions making appropriations for fiscal year 1998, are 
 65.1   effective the day following final enactment. 
 65.2      Section 24 is effective the day following final enactment 
 65.3   and applies in the counties of Anoka, Carver, Dakota, Hennepin, 
 65.4   Ramsey, Scott, and Washington. 
 65.5      Section 28 is effective May 1, 1998. 
 65.6      Section 47 is effective retroactive to July 1, 1997. 
 65.7      Sections 49 and 61 are effective January 1, 1999.  
 65.8      Section 52 is effective August 1, 1998. 
 65.9      Sections 55 to 59, 78, and 79 are effective for housing 
 65.10  warranties that take effect on or after June 1, 1999. 
 65.11                             ARTICLE 2 
 65.12                         UNCLAIMED PROPERTY 
 65.13     Section 1.  [345.61] [DEFINITIONS.] 
 65.14     Subdivision 1.  [SCOPE.] For the purposes of sections 
 65.15  345.61 to 345.90, the terms defined in this section have the 
 65.16  meanings given them. 
 65.17     Subd. 2.  [ADMINISTRATOR.] "Administrator" means the 
 65.18  commissioner of commerce. 
 65.19     Subd. 3.  [APPARENT OWNER.] "Apparent owner" means a person 
 65.20  whose name appears on the records of a holder as the person 
 65.21  entitled to property held, issued, or owing by the holder. 
 65.22     Subd. 4.  [BUSINESS ASSOCIATION.] "Business association" 
 65.23  means a corporation, joint stock company, investment company, 
 65.24  partnership, unincorporated association, joint venture, limited 
 65.25  liability company, business trust, trust company, safe deposit 
 65.26  company, financial organization, insurance company, mutual fund, 
 65.27  utility, or other business entity consisting of one or more 
 65.28  persons, whether or not for profit. 
 65.29     Subd. 5.  [DOMICILE.] "Domicile" means the state of 
 65.30  incorporation of a corporation and the state of the principal 
 65.31  place of business of a holder other than a corporation. 
 65.32     Subd. 6.  [FINANCIAL ORGANIZATION.] "Financial organization"
 65.33  means a savings association; savings bank or industrial loan and 
 65.34  thrift company; banking organization; or credit union. 
 65.35     Subd. 7.  [HOLDER.] "Holder" means a person obligated to 
 65.36  hold for the account of, or deliver or pay to, the owner 
 66.1   property that is subject to sections 345.61 to 345.90. 
 66.2      Subd. 8.  [INSURANCE COMPANY.] "Insurance company" means an 
 66.3   association, corporation, or fraternal or mutual benefit 
 66.4   organization, whether or not for profit, engaged in the business 
 66.5   of providing life endowments, annuities, or insurance, including 
 66.6   accident, burial, casualty, credit life, contract performance, 
 66.7   dental, disability, fidelity, fire, health, hospitalization, 
 66.8   illness, life, malpractice, marine, mortgage, surety, wage 
 66.9   protection, and workers' compensation insurance. 
 66.10     Subd. 9.  [MINERAL.] "Mineral" means gas; oil; coal; other 
 66.11  gaseous, liquid, and solid hydrocarbons; oil shale; cement 
 66.12  material; sand and gravel; road material; building stone; 
 66.13  chemical raw material; gemstone; fissionable and nonfissionable 
 66.14  ores; colloidal and other clay; steam and other geothermal 
 66.15  resource; or any other substance defined as a mineral by the law 
 66.16  of this state. 
 66.17     Subd. 10.  [MINERAL PROCEEDS.] "Mineral proceeds" means 
 66.18  amounts payable for the extraction, production, or sale of 
 66.19  minerals, or, upon the abandonment of those payments, all 
 66.20  payments that become payable thereafter.  The term includes 
 66.21  amounts payable: 
 66.22     (1) for the acquisition and retention of a mineral lease, 
 66.23  including bonuses, royalties, compensatory royalties, shut-in 
 66.24  royalties, minimum royalties, and delay rentals; 
 66.25     (2) for the extraction, production, or sale of minerals, 
 66.26  including net revenue interests, royalties, overriding 
 66.27  royalties, extraction payments, and production payments; and 
 66.28     (3) under an agreement or option, including a joint 
 66.29  operating agreement, unit agreement, pooling agreement, and 
 66.30  farm-out agreement. 
 66.31     Subd. 11.  [MONEY ORDER.] "Money order" includes an express 
 66.32  money order and a personal money order, on which the remitter is 
 66.33  the purchaser.  The term does not include a bank money order or 
 66.34  any other instrument sold by a financial organization if the 
 66.35  seller has obtained the name and address of the payee. 
 66.36     Subd. 12.  [OWNER.] "Owner" means a person who has a legal 
 67.1   or equitable interest in property subject to sections 345.61 to 
 67.2   345.90 or the person's legal representative.  The term includes 
 67.3   a depositor in the case of a deposit, a beneficiary in the case 
 67.4   of a trust other than a deposit in trust, and a creditor, 
 67.5   claimant, or payee in the case of other property. 
 67.6      Subd. 13.  [PERSON.] "Person" means an individual, business 
 67.7   association, financial organization, estate, trust, government, 
 67.8   governmental subdivision, agency, or instrumentality, or any 
 67.9   other legal or commercial entity. 
 67.10     Subd. 14.  [PROPERTY.] (a) "Property" means tangible 
 67.11  property described in section 345.63 or a fixed and certain 
 67.12  interest in intangible property that is held, issued, or owed in 
 67.13  the course of a holder's business, or by a government, 
 67.14  governmental subdivision, agency, or instrumentality, and all 
 67.15  income or increments therefrom.  The term includes property that 
 67.16  is referred to as or evidenced by: 
 67.17     (1) money, a check, draft, deposit, interest, or dividend; 
 67.18     (2) credit balance, customer's overpayment, gift 
 67.19  certificate, security deposit, refund, credit memorandum, unpaid 
 67.20  wage, unused ticket, mineral proceeds, or unidentified 
 67.21  remittance; 
 67.22     (3) stock or other evidence of ownership of an interest in 
 67.23  a business association or financial organization; 
 67.24     (4) a bond, debenture, note, or other evidence of 
 67.25  indebtedness; 
 67.26     (5) money deposited to redeem stocks, bonds, coupons, or 
 67.27  other securities or to make distributions; 
 67.28     (6) an amount due and payable under the terms of an annuity 
 67.29  or insurance policy, including policies providing life 
 67.30  insurance, property and casualty insurance, workers' 
 67.31  compensation insurance, or health and disability insurance; and 
 67.32     (7) an amount distributable from a trust or custodial fund 
 67.33  established under a plan to provide health, welfare, pension, 
 67.34  vacation, severance, retirement, death, stock purchase, profit 
 67.35  sharing, employee savings, supplemental unemployment insurance, 
 67.36  or similar benefits. 
 68.1      (b) The term "property" does not include: 
 68.2      (1) assets of any plan governed under the federal Employee 
 68.3   Retirement Income Security Act of 1974 (ERISA), United States 
 68.4   Code, title 29, sections 1001 to 1461; and 
 68.5      (2) gift certificates:  
 68.6      (i) with a value of $50 or less; 
 68.7      (ii) redeemable at a holder that has issued less than 
 68.8   $15,000 in gift certificates during the preceding calendar year; 
 68.9      (iii) purchased for resale; or 
 68.10     (iv) purchased for fundraising purposes by a charitable or 
 68.11  educational organization. 
 68.12     Subd. 15.  [RECORD.] "Record" means information that is 
 68.13  inscribed on a tangible medium or that is stored in an 
 68.14  electronic or other medium and is retrievable in perceivable 
 68.15  form. 
 68.16     Subd. 16.  [STATE.] "State" means a state of the United 
 68.17  States, the District of Columbia, the Commonwealth of Puerto 
 68.18  Rico, or any territory or insular possession subject to the 
 68.19  jurisdiction of the United States. 
 68.20     Subd. 17.  [UTILITY.] "Utility" means any person who owns 
 68.21  or operates within this state, for public use, any plant, 
 68.22  equipment, property, franchise, or license for the transmission 
 68.23  of communications or the production, storage, transmission, 
 68.24  sale, delivery, or furnishing of electricity, water, steam, or 
 68.25  gas.  
 68.26     Sec. 2.  [345.62] [PRESUMPTIONS OF ABANDONMENT.] 
 68.27     (a) Property is presumed abandoned if it is unclaimed by 
 68.28  the apparent owner during the time set forth below for the 
 68.29  particular property: 
 68.30     (1) traveler's check, 15 years after issuance; 
 68.31     (2) money order, seven years after issuance; 
 68.32     (3) stock or other equity interest in a business 
 68.33  association or financial organization, including a security 
 68.34  entitlement under the Uniform Commercial Code - Investment 
 68.35  Securities, three years after the earlier of (i) the date of the 
 68.36  most recent dividend, stock split, or other distribution 
 69.1   unclaimed by the apparent owner, or (ii) the date of the second 
 69.2   mailing of a statement of account or other notification or 
 69.3   communication that was returned as undeliverable or after the 
 69.4   holder discontinued mailings, notifications, or communications 
 69.5   to the apparent owner; 
 69.6      (4) debt of a business association or financial 
 69.7   organization, other than a bearer bond or an original issue 
 69.8   discount bond, three years after the date of the most recent 
 69.9   interest payment unclaimed by the apparent owner; 
 69.10     (5) a demand, savings, or time deposit, including a deposit 
 69.11  that is automatically renewable, three years after the earlier 
 69.12  of maturity or the date of the last indication by the owner of 
 69.13  interest in the property; but a deposit that is automatically 
 69.14  renewable is deemed matured for purposes of this section upon 
 69.15  its initial date of maturity, unless the owner has consented to 
 69.16  a renewal at or about the time of the renewal and the consent is 
 69.17  in writing or is evidenced by a memorandum or other record on 
 69.18  file with the holder; 
 69.19     (6) money or credits owed to a customer as a result of a 
 69.20  retail business transaction, three years after the obligation 
 69.21  accrued; 
 69.22     (7) gift certificate, three years after December 31 of the 
 69.23  year in which the certificate was sold, but if redeemable in 
 69.24  merchandise only, the amount abandoned is deemed to be 60 
 69.25  percent of the certificate's face value; 
 69.26     (8) amount owed by an insurer on a life or endowment 
 69.27  insurance policy or an annuity that has matured or terminated, 
 69.28  three years after the obligation to pay arose or, in the case of 
 69.29  a policy or annuity payable upon proof of death, three years 
 69.30  after the insured has attained, or would have attained if 
 69.31  living, the limiting age under the mortality table on which the 
 69.32  reserve is based; 
 69.33     (9) property distributable by a business association or 
 69.34  financial organization in a course of dissolution, one year 
 69.35  after the property becomes distributable; 
 69.36     (10) property received by a court as proceeds of a class 
 70.1   action, and not distributed pursuant to the judgment, one year 
 70.2   after the distribution date; 
 70.3      (11) property held by a court, government, governmental 
 70.4   subdivision, agency, or instrumentality, one year after the 
 70.5   property becomes distributable; 
 70.6      (12) wages or other compensation for personal services, one 
 70.7   year after the compensation becomes payable; 
 70.8      (13) deposit or refund owed to a subscriber by a utility, 
 70.9   one year after the deposit or refund becomes payable; 
 70.10     (14) property in an individual retirement account, defined 
 70.11  benefit plan, or other account or plan that is qualified for tax 
 70.12  deferral under the income tax laws of the United States, three 
 70.13  years after the earliest of the date of the distribution or 
 70.14  attempted distribution of the property, the date of the required 
 70.15  distribution as stated in the plan or trust agreement governing 
 70.16  the plan, or the date, if determinable by the holder, specified 
 70.17  in the income tax laws of the United States by which 
 70.18  distribution of the property must begin in order to avoid a tax 
 70.19  penalty; and 
 70.20     (15) all other property, three years after the owner's 
 70.21  right to demand the property or after the obligation to pay or 
 70.22  distribute the property arises, whichever first occurs. 
 70.23     (b) At the time that an interest is presumed abandoned 
 70.24  under paragraph (a), any other property right accrued or 
 70.25  accruing to the owner as a result of the interest, and not 
 70.26  previously presumed abandoned, is also presumed abandoned. 
 70.27     (c) Property is unclaimed if, for the applicable period set 
 70.28  forth in paragraph (a), the apparent owner has not communicated 
 70.29  in writing or by other means reflected in a contemporaneous 
 70.30  record prepared by or on behalf of the holder, with the holder 
 70.31  concerning the property or the account in which the property is 
 70.32  held, and has not otherwise indicated an interest in the 
 70.33  property.  A communication with an owner by a person other than 
 70.34  the holder or its representative who has not in writing 
 70.35  identified the property to the owner is not an indication of 
 70.36  interest in the property by the owner. 
 71.1      (d) An indication of an owner's interest in property 
 71.2   includes: 
 71.3      (1) the presentment of a check or other instrument of 
 71.4   payment of a dividend or other distribution made with respect to 
 71.5   an account or underlying stock or other interest in a business 
 71.6   association or financial organization or, in the case of a 
 71.7   distribution made by electronic or similar means, evidence that 
 71.8   the distribution has been received; 
 71.9      (2) owner-directed activity in the account in which the 
 71.10  property is held, including a direction by the owner to 
 71.11  increase, decrease, or change the amount or type of property 
 71.12  held in the account; 
 71.13     (3) the making of a deposit to or withdrawal from a bank 
 71.14  account; and 
 71.15     (4) the payment of a premium with respect to a property 
 71.16  interest in an insurance policy; but the application of an 
 71.17  automatic premium loan provision or other nonforfeiture 
 71.18  provision contained in an insurance policy does not prevent a 
 71.19  policy from maturing or terminating if the insured has died or 
 71.20  the insured or the beneficiary of the policy has otherwise 
 71.21  become entitled to the proceeds before the depletion of the cash 
 71.22  surrender value of a policy by the application of those 
 71.23  provisions. 
 71.24     (e) Property is payable or distributable for purposes of 
 71.25  sections 345.61 to 345.90 notwithstanding the owner's failure to 
 71.26  make demand or present an instrument or document otherwise 
 71.27  required to obtain payment. 
 71.28     Sec. 3.  [345.63] [CONTENTS OF SAFE DEPOSIT BOX OR OTHER 
 71.29  SAFEKEEPING DEPOSITORY.] 
 71.30     Tangible property held in a safe deposit box or other 
 71.31  safekeeping depository in this state in the ordinary course of 
 71.32  the holder's business and proceeds resulting from the sale of 
 71.33  the property permitted by other law are presumed abandoned if 
 71.34  the property remains unclaimed by the owner for more than five 
 71.35  years after expiration of the lease or rental period on the box 
 71.36  or other depository. 
 72.1      Sec. 4.  [345.64] [RULES FOR TAKING CUSTODY.] 
 72.2      Except as otherwise provided in sections 345.61 to 345.90 
 72.3   or by other statute of this state, property that is presumed 
 72.4   abandoned, whether located in this or another state, is subject 
 72.5   to the custody of this state if: 
 72.6      (1) the last known address of the apparent owner, as shown 
 72.7   on the records of the holder, is in this state; 
 72.8      (2) the records of the holder do not reflect the identity 
 72.9   of the person entitled to the property and it is established 
 72.10  that the last known address of the person entitled to the 
 72.11  property is in this state; 
 72.12     (3) the records of the holder do not reflect the last known 
 72.13  address of the apparent owner and it is established that: 
 72.14     (i) the last known address of the person entitled to the 
 72.15  property is in this state; or 
 72.16     (ii) the holder is domiciled in this state or is a 
 72.17  government or governmental subdivision, agency, or 
 72.18  instrumentality of this state and has not previously paid or 
 72.19  delivered the property to the state of the last known address of 
 72.20  the apparent owner or other person entitled to the property; 
 72.21     (4) the last known address of the apparent owner, as shown 
 72.22  on the records of the holder, is in a state that does not 
 72.23  provide for the escheat or custodial taking of the property and 
 72.24  the holder is domiciled in this state or is a government or 
 72.25  governmental subdivision, agency, or instrumentality of this 
 72.26  state; 
 72.27     (5) the last known address of the apparent owner, as shown 
 72.28  on the records of the holder, is in a foreign country and the 
 72.29  holder is domiciled in this state or is a government or 
 72.30  governmental subdivision, agency, or instrumentality of this 
 72.31  state; 
 72.32     (6) the transaction out of which the property arose 
 72.33  occurred in this state, the holder is domiciled in a state that 
 72.34  does not provide for the escheat or custodial taking of the 
 72.35  property, and the last known address of the apparent owner or 
 72.36  other person entitled to the property is unknown or is in a 
 73.1   state that does not provide for the escheat or custodial taking 
 73.2   of the property; or 
 73.3      (7) the property is a traveler's check or money order 
 73.4   purchased in this state, or the issuer of the traveler's check 
 73.5   or money order has its principal place of business in this state 
 73.6   and the issuer's records show that the instrument was purchased 
 73.7   in a state that does not provide for the escheat or custodial 
 73.8   taking of the property, or do not show the state in which the 
 73.9   instrument was purchased. 
 73.10     Sec. 5.  [345.65] [DORMANCY CHARGE.] 
 73.11     A holder may deduct from property presumed abandoned a 
 73.12  charge imposed by reason of the owner's failure to claim the 
 73.13  property within a specified time only if there is a valid and 
 73.14  enforceable written contract between the holder and the owner 
 73.15  under which the holder may impose the charge and the holder 
 73.16  regularly imposes the charge, which is not regularly reversed or 
 73.17  otherwise canceled.  The total amount of the deduction must not 
 73.18  exceed $30.  In the case of traveler's checks, any service 
 73.19  charge shall be by contract, and may be deducted for a period 
 73.20  not to exceed one year. 
 73.21     Sec. 6.  [345.66] [BURDEN OF PROOF AS TO PROPERTY EVIDENCED 
 73.22  BY RECORD OF CHECK OR DRAFT.] 
 73.23     A record of the issuance of a check, draft, or similar 
 73.24  instrument is prima facie evidence of an obligation.  In 
 73.25  claiming property from a holder who is also the issuer, the 
 73.26  administrator's burden of proof as to the existence and amount 
 73.27  of the property and its abandonment is satisfied by showing 
 73.28  issuance of the instrument and passage of the requisite period 
 73.29  of abandonment.  Defenses of payment, satisfaction, discharge, 
 73.30  and want of consideration are affirmative defenses that must be 
 73.31  established by the holder. 
 73.32     Sec. 7.  [345.67] [REPORT OF ABANDONED PROPERTY.] 
 73.33     (a) A holder of property presumed abandoned shall make a 
 73.34  report to the administrator concerning the property. 
 73.35     (b) The report must be verified and must contain: 
 73.36     (1) a description of the property; 
 74.1      (2) except with respect to a traveler's check or money 
 74.2   order, the name, if known, and last known address, if any, and 
 74.3   the social security number or taxpayer identification number, if 
 74.4   readily ascertainable, of the apparent owner of property of the 
 74.5   value of $100 or more; 
 74.6      (3) an aggregated amount of items valued under $100 each; 
 74.7      (4) in the case of an amount of $100 or more held or owing 
 74.8   under an annuity or a life or endowment insurance policy, the 
 74.9   full name and last known address of the annuitant or insured and 
 74.10  of the beneficiary; 
 74.11     (5) in the case of property held in a safe deposit box or 
 74.12  other safekeeping depository, an indication of the place where 
 74.13  it is held and where it may be inspected by the administrator, 
 74.14  and any amounts owing to the holder; 
 74.15     (6) the date, if any, on which the property became payable, 
 74.16  demandable, or returnable, and the date of the last transaction 
 74.17  with the apparent owner with respect to the property; and 
 74.18     (7) other information that the administrator by rule 
 74.19  prescribes as necessary for the administration of sections 
 74.20  345.61 to 345.90. 
 74.21     (c) If a holder of property presumed abandoned is a 
 74.22  successor to another person who previously held the property for 
 74.23  the apparent owner or the holder has changed its name while 
 74.24  holding the property, the holder shall file with the report its 
 74.25  former names, if any, and the known names and addresses of all 
 74.26  previous holders of the property. 
 74.27     (d) The report must be filed before November 1 of each year 
 74.28  and cover the 12 months next preceding July 1 of that year, but 
 74.29  a report with respect to a life insurance company must be filed 
 74.30  before May 1 of each year for the calendar year next preceding. 
 74.31     (e) The holder of property presumed abandoned shall send 
 74.32  written notice to the apparent owner, not more than 120 days 
 74.33  before filing the report, stating that the holder is in 
 74.34  possession of property subject to sections 345.61 to 345.90, if: 
 74.35     (1) the holder has in its records an address for the 
 74.36  apparent owner which the holder's records do not disclose to be 
 75.1   inaccurate; 
 75.2      (2) the claim of the apparent owner is not barred by a 
 75.3   statute of limitations; and 
 75.4      (3) the value of the property is $100 or more. 
 75.5      (f) Before the date for filing the report, the holder of 
 75.6   property presumed abandoned may request the administrator to 
 75.7   extend the time for filing the report.  The administrator may 
 75.8   grant the extension for good cause.  The holder, upon receipt of 
 75.9   the extension, may make an interim payment on the amount the 
 75.10  holder estimates will ultimately be due, which terminates the 
 75.11  accrual of additional interest on the amount paid.  
 75.12     (g) The holder of property presumed abandoned shall file 
 75.13  with the report an affidavit stating that the holder has 
 75.14  complied with paragraph (e). 
 75.15     Sec. 8.  [345.68] [PAYMENT OR DELIVERY OF ABANDONED 
 75.16  PROPERTY.] 
 75.17     (a) Upon filing the report required by section 345.67, the 
 75.18  holder of property presumed abandoned shall pay, deliver, or 
 75.19  cause to be paid or delivered to the administrator the property 
 75.20  described in the report as unclaimed, but if the property is an 
 75.21  automatically renewable deposit, and a penalty or forfeiture in 
 75.22  the payment of interest would result, the time for compliance is 
 75.23  extended until a penalty or forfeiture would no longer result. 
 75.24     (b) If the property reported to the administrator is a 
 75.25  security or security entitlement under the Uniform Commercial 
 75.26  Code - Investment Securities, the administrator is an 
 75.27  appropriate person to make an endorsement, instruction, or 
 75.28  entitlement order on behalf of the apparent owner to invoke the 
 75.29  duty of the issuer or its transfer agent or the securities 
 75.30  intermediary to transfer or dispose of the security or the 
 75.31  security entitlement in accordance with the Uniform Commercial 
 75.32  Code - Investment Securities. 
 75.33     (c) If the holder of property reported to the administrator 
 75.34  is the issuer of a certificated security, the administrator has 
 75.35  the right to obtain a replacement certificate pursuant to 
 75.36  section 336.8-408, but an indemnity bond is not required. 
 76.1      (d) An issuer, the holder, and any transfer agent or other 
 76.2   person acting pursuant to the instructions of and on behalf of 
 76.3   the issuer or holder in accordance with this section is not 
 76.4   liable to the apparent owner and must be indemnified against 
 76.5   claims of any person in accordance with section 345.70. 
 76.6      Sec. 9.  [345.69] [NOTICE AND PUBLICATION OF LISTS OF 
 76.7   ABANDONED PROPERTY.] 
 76.8      (a) The administrator shall publish a notice not later than 
 76.9   November 30 of the year next following the year in which 
 76.10  abandoned property has been paid or delivered to the 
 76.11  administrator.  The advertisement must be in a form that, in the 
 76.12  judgment of the administrator, is likely to attract the 
 76.13  attention of the apparent owner of the unclaimed property.  The 
 76.14  form must contain: 
 76.15     (1) the name of each person appearing to be the owner of 
 76.16  the property, as set forth in the report filed by the holder; 
 76.17     (2) the last known address or location of each person 
 76.18  appearing to be the owner of the property, if an address or 
 76.19  location is set forth in the report filed by the holder; 
 76.20     (3) a statement explaining that property of the owner is 
 76.21  presumed to be abandoned and has been taken into the protective 
 76.22  custody of the administrator; and 
 76.23     (4) a statement that information about the property and its 
 76.24  return to the owner is available to a person having a legal or 
 76.25  beneficial interest in the property, upon request to the 
 76.26  administrator. 
 76.27     (b) The administrator is not required to advertise the name 
 76.28  and address or location of an owner of property having a total 
 76.29  value less than $100, or information concerning a traveler's 
 76.30  check, money order, or similar instrument. 
 76.31     Sec. 10.  [345.70] [CUSTODY BY STATE; RECOVERY BY HOLDER; 
 76.32  DEFENSE OF HOLDER.] 
 76.33     (a) In this section, payment or delivery is made in "good 
 76.34  faith" if: 
 76.35     (1) payment or delivery was made in a reasonable attempt to 
 76.36  comply with sections 345.61 to 345.90; 
 77.1      (2) the holder was not then in breach of a fiduciary 
 77.2   obligation with respect to the property and had a reasonable 
 77.3   basis for believing, based on the facts then known, that the 
 77.4   property was presumed abandoned; and 
 77.5      (3) there is no showing that the records under which the 
 77.6   payment or delivery was made did not meet reasonable commercial 
 77.7   standards of practice. 
 77.8      (b) Upon payment or delivery of property to the 
 77.9   administrator, the state assumes custody and responsibility for 
 77.10  the safekeeping of the property.  A holder who pays or delivers 
 77.11  property to the administrator in good faith is relieved of 
 77.12  liability arising thereafter with respect to the property to the 
 77.13  extent of the value of the property at the time it is paid or 
 77.14  delivered to the administrator.  
 77.15     (c) A holder who has paid money to the administrator 
 77.16  pursuant to sections 345.61 to 345.90 may subsequently make 
 77.17  payment to a person reasonably appearing to the holder to be 
 77.18  entitled to payment.  Upon a filing by the holder of proof of 
 77.19  payment and proof that the payee was entitled to the payment, 
 77.20  the administrator shall promptly reimburse the holder for the 
 77.21  payment without imposing a fee or other charge.  If 
 77.22  reimbursement is sought for a payment made on a negotiable 
 77.23  instrument, including a traveler's check or money order, the 
 77.24  holder must be reimbursed upon filing proof that the instrument 
 77.25  was duly presented and that payment was made to a person who 
 77.26  reasonably appeared to be entitled to payment.  The holder must 
 77.27  be reimbursed for payment made even if the payment was made to a 
 77.28  person whose claim was barred under section 345.78, paragraph 
 77.29  (a). 
 77.30     (d) A holder who has delivered property other than money to 
 77.31  the administrator pursuant to sections 345.61 to 345.90 may 
 77.32  reclaim the property if it is still in the possession of the 
 77.33  administrator, without paying any fee or other charge, upon 
 77.34  filing proof that the apparent owner has claimed the property 
 77.35  from the holder.  
 77.36     (e) The administrator may accept a holder's affidavit as 
 78.1   sufficient proof of the holder's right to recover money and 
 78.2   property under this section. 
 78.3      (f) If a holder pays or delivers property to the 
 78.4   administrator in good faith and thereafter another person claims 
 78.5   the property from the holder or another state claims the money 
 78.6   or property under its laws relating to escheat or abandoned or 
 78.7   unclaimed property, the administrator, upon written notice of 
 78.8   the claim, shall defend the holder against the claim and 
 78.9   indemnify the holder against any liability on the claim 
 78.10  resulting from payment or delivery of the property to the 
 78.11  administrator but only to the extent of the value of the 
 78.12  property paid or delivered to the administrator. 
 78.13     (g) Property removed from a safe deposit box or other 
 78.14  safekeeping depository is received by the administrator subject 
 78.15  to any valid lien or contract providing for the holder to be 
 78.16  reimbursed for unpaid rent or storage charges.  The 
 78.17  administrator shall reimburse the holder out of the proceeds 
 78.18  remaining after deducting the expense incurred by the 
 78.19  administrator in selling the property. 
 78.20     Sec. 11.  [345.71] [PUBLIC SALE OF ABANDONED PROPERTY.] 
 78.21     (a) Except as otherwise provided in this section, the 
 78.22  administrator, within ten years after the receipt of abandoned 
 78.23  property, shall sell it to the highest bidder at public sale at 
 78.24  a location in the state which in the judgment of the 
 78.25  administrator affords the most favorable market for the 
 78.26  property.  The administrator may decline the highest bid and 
 78.27  reoffer the property for sale if the administrator considers the 
 78.28  bid to be insufficient.  The administrator need not offer the 
 78.29  property for sale if the administrator considers that the 
 78.30  probable cost of the sale will exceed the proceeds of the sale.  
 78.31  A sale held under this section must be preceded by a single 
 78.32  publication of notice, at least three weeks before the sale, in 
 78.33  a newspaper of general circulation in the county in which the 
 78.34  property is to be sold. 
 78.35     (b) Securities listed on an established stock exchange must 
 78.36  be sold at prices prevailing on the exchange at the time of 
 79.1   sale.  Other securities may be sold over the counter at prices 
 79.2   prevailing at the time of the sale or by any reasonable method 
 79.3   selected by the administrator.  If securities are sold by the 
 79.4   administrator before the expiration of three years after their 
 79.5   delivery to the administrator, a person making a claim under 
 79.6   sections 345.61 to 345.90 before the end of the three-year 
 79.7   period is entitled to the proceeds of the sale of the securities 
 79.8   or the market value of the securities at the time the claim is 
 79.9   made, whichever is greater, less any deduction for expenses of 
 79.10  the sale.  A person making a claim under sections 345.61 to 
 79.11  345.90 after the expiration of the three-year period is entitled 
 79.12  to receive the securities delivered to the administrator by the 
 79.13  holder, if they still remain in the custody of the 
 79.14  administrator, or the net proceeds received from the sale, and 
 79.15  is not entitled to receive any appreciation in the value of the 
 79.16  property occurring after delivery to the administrator, except 
 79.17  in a case of intentional misconduct or malfeasance by the 
 79.18  administrator. 
 79.19     (c) A purchaser of property at a sale conducted by the 
 79.20  administrator pursuant to sections 345.61 to 345.90 takes the 
 79.21  property free of all claims of the owner or previous holder and 
 79.22  of all persons claiming through or under them.  The 
 79.23  administrator shall execute all documents necessary to complete 
 79.24  the transfer of ownership. 
 79.25     (d) The administrator shall provide the Minnesota 
 79.26  historical society with an inventory of abandoned property, 
 79.27  other than money, six months prior to public sale.  The society 
 79.28  may select for its collections any items it finds of historical 
 79.29  value.  The society shall make its selection before the 
 79.30  administrator appraises or sorts the material for public sale. 
 79.31  The society has 90 days from the date of notification by the 
 79.32  administrator to exercise the authority granted by this 
 79.33  subdivision.  The society shall receive title to the property 
 79.34  selected free from all claims of the owner or prior holder and 
 79.35  of all persons claiming through or under them.  The 
 79.36  administrator shall execute all documents necessary to complete 
 80.1   the transfer of title. 
 80.2      Sec. 12.  [345.72] [DEPOSIT OF FUNDS.] 
 80.3      (a) Except as otherwise provided by this section and 
 80.4   section 345.90, the administrator shall promptly deposit in the 
 80.5   general fund of this state all funds received under sections 
 80.6   345.61 to 345.90, including the proceeds from the sale of 
 80.7   abandoned property under section 345.71.  The administrator 
 80.8   shall retain in a separate trust fund at least $100,000 from 
 80.9   which the administrator shall pay claims duly allowed.  The 
 80.10  administrator shall record the name and last known address of 
 80.11  each person appearing from the holders' reports to be entitled 
 80.12  to the property and the name and last known address of each 
 80.13  insured person or annuitant and beneficiary and with respect to 
 80.14  each policy or annuity listed in the report of an insurance 
 80.15  company, its number, the name of the company, and the amount due.
 80.16     (b) Before making a deposit to the credit of the general 
 80.17  fund, the administrator may deduct: 
 80.18     (1) expenses of the sale of abandoned property; 
 80.19     (2) costs of mailing and publication in connection with 
 80.20  abandoned property; 
 80.21     (3) reasonable service charges; and 
 80.22     (4) expenses incurred in examining records of holders of 
 80.23  property and in collecting the property from those holders. 
 80.24     Sec. 13.  [345.73] [CLAIM OF ANOTHER STATE TO RECOVER 
 80.25  PROPERTY.] 
 80.26     (a) After property has been paid or delivered to the 
 80.27  administrator under sections 345.61 to 345.90, another state may 
 80.28  recover the property if: 
 80.29     (1) the property was paid or delivered to the custody of 
 80.30  this state because the records of the holder did not reflect a 
 80.31  last known location of the apparent owner within the borders of 
 80.32  the other state and the other state establishes that the 
 80.33  apparent owner or other person entitled to the property was last 
 80.34  known to be located within the borders of that state and under 
 80.35  the laws of that state the property has escheated or become 
 80.36  subject to a claim of abandonment by that state; 
 81.1      (2) the property was paid or delivered to the custody of 
 81.2   this state because the laws of the other state did not provide 
 81.3   for the escheat or custodial taking of the property, and under 
 81.4   the laws of that state subsequently enacted the property has 
 81.5   escheated or become subject to a claim of abandonment by that 
 81.6   state; 
 81.7      (3) the records of the holder were erroneous in that they 
 81.8   did not accurately identify the owner of the property and the 
 81.9   last known location of the owner within the borders of another 
 81.10  state and under the laws of that state the property has 
 81.11  escheated or become subject to a claim of abandonment by that 
 81.12  state; 
 81.13     (4) the property was subjected to custody by this state 
 81.14  under section 345.64, clause (6), and under the laws of the 
 81.15  state of domicile of the holder the property has escheated or 
 81.16  become subject to a claim of abandonment by that state; or 
 81.17     (5) the property is a sum payable on a traveler's check, 
 81.18  money order, or similar instrument that was purchased in the 
 81.19  other state and delivered into the custody of this state under 
 81.20  section 345.64, clause (7), and under the laws of the other 
 81.21  state the property has escheated or become subject to a claim of 
 81.22  abandonment by that state. 
 81.23     (b) A claim of another state to recover escheated or 
 81.24  abandoned property must be presented in a form prescribed by the 
 81.25  administrator, who shall decide the claim within 90 days after 
 81.26  it is presented.  The administrator shall allow the claim upon 
 81.27  determining that the other state is entitled to the abandoned 
 81.28  property under paragraph (a). 
 81.29     (c) The administrator shall require another state, before 
 81.30  recovering property under this section, to agree to indemnify 
 81.31  this state and its officers and employees against any liability 
 81.32  on a claim to the property. 
 81.33     Sec. 14.  [345.74] [FILING CLAIM WITH ADMINISTRATOR; 
 81.34  HANDLING OF CLAIMS BY ADMINISTRATOR.] 
 81.35     (a) A person, excluding another state, claiming property 
 81.36  paid or delivered to the administrator may file a claim on a 
 82.1   form prescribed by the administrator and verified by the 
 82.2   claimant. 
 82.3      (b) Within 90 days after a claim is filed, the 
 82.4   administrator shall allow or deny the claim and give written 
 82.5   notice of the decision to the claimant.  If the claim is denied, 
 82.6   the administrator shall inform the claimant of the reasons for 
 82.7   the denial and specify what additional evidence is required 
 82.8   before the claim will be allowed.  The claimant may then file a 
 82.9   new claim with the administrator or maintain an action under 
 82.10  section 345.75. 
 82.11     (c) Within 30 days after a claim is allowed, the property 
 82.12  or the net proceeds of a sale of the property must be delivered 
 82.13  or paid by the administrator to the claimant, together with any 
 82.14  dividend, interest, or other increment to which the claimant is 
 82.15  entitled under section 345.71.  
 82.16     (d) A holder who pays the owner for property that has been 
 82.17  delivered to the state and which, if claimed from the 
 82.18  administrator by the owner would be subject to an increment 
 82.19  under section 345.71, may recover from the administrator the 
 82.20  amount of the increment.  
 82.21     Sec. 15.  [345.75] [ACTION TO ESTABLISH CLAIM.] 
 82.22     A person aggrieved by a decision of the administrator or 
 82.23  whose claim has not been acted upon within 90 days after its 
 82.24  filing may maintain an original action to establish the claim in 
 82.25  the district court, naming the administrator as a defendant.  
 82.26     Sec. 16.  [345.76] [ELECTION TO TAKE PAYMENT OR DELIVERY.] 
 82.27     (a) The administrator may decline to receive property 
 82.28  reported under sections 345.61 to 345.90 which the administrator 
 82.29  considers to have a value less than the expenses of notice and 
 82.30  sale. 
 82.31     (b) A holder, with the written consent of the administrator 
 82.32  and upon conditions and terms prescribed by the administrator, 
 82.33  may report and deliver property before the property is presumed 
 82.34  abandoned.  Property so delivered must be held by the 
 82.35  administrator and is not presumed abandoned until it otherwise 
 82.36  would be presumed abandoned under sections 345.61 to 345.90. 
 83.1      Sec. 17.  [345.77] [DESTRUCTION OR DISPOSITION OF PROPERTY 
 83.2   HAVING NO SUBSTANTIAL COMMERCIAL VALUE; IMMUNITY FROM 
 83.3   LIABILITY.] 
 83.4      If the administrator determines after investigation that 
 83.5   property delivered under sections 345.61 to 345.90 has no 
 83.6   substantial commercial value, the administrator may destroy or 
 83.7   otherwise dispose of the property at any time.  An action or 
 83.8   proceeding may not be maintained against the state or any 
 83.9   officer or against the holder for or on account of an act of the 
 83.10  administrator under this section, except for intentional 
 83.11  misconduct or malfeasance. 
 83.12     Sec. 18.  [345.78] [PERIODS OF LIMITATION.] 
 83.13     (a) The expiration, before or after the effective date of 
 83.14  sections 345.61 to 345.90, of a period of limitation on the 
 83.15  owner's right to receive or recover property, whether specified 
 83.16  by contract, statute, or court order, does not preclude the 
 83.17  property from being presumed abandoned or affect a duty to file 
 83.18  a report or to pay or deliver or transfer property to the 
 83.19  administrator as required by sections 345.61 to 345.90. 
 83.20     (b) An action or proceeding may not be maintained by the 
 83.21  administrator to enforce sections 345.61 to 345.90 in regard to 
 83.22  the reporting, delivery, or payment of property more than ten 
 83.23  years after the holder specifically identified the property in a 
 83.24  report filed with the administrator or gave express notice to 
 83.25  the administrator of a dispute regarding the property.  In the 
 83.26  absence of such a report or other express notice, the period of 
 83.27  limitation is tolled.  The period of limitation is also tolled 
 83.28  by the filing of a report that is fraudulent. 
 83.29     Sec. 19.  [345.79] [REQUESTS FOR REPORTS AND EXAMINATION OF 
 83.30  RECORDS.] 
 83.31     (a) The administrator may require a person who has not 
 83.32  filed a report, or a person who the administrator believes has 
 83.33  filed an inaccurate, incomplete, or false report, to file a 
 83.34  verified report in a form specified by the administrator.  The 
 83.35  report must state whether the person is holding property 
 83.36  reportable under sections 345.61 to 345.90, describe property 
 84.1   not previously reported or as to which the administrator has 
 84.2   made inquiry, and specifically identify and state the amounts of 
 84.3   property that may be in issue. 
 84.4      (b) The administrator, at reasonable times and upon 
 84.5   reasonable notice, may examine the records of any person to 
 84.6   determine whether the person has complied with sections 345.61 
 84.7   to 345.90 if the administrator has reasonable cause to believe 
 84.8   that a person has failed to report property that should have 
 84.9   been reported under sections 345.61 to 345.90.  The 
 84.10  administrator may conduct the examination even if the person 
 84.11  believes it is not in possession of any property that must be 
 84.12  reported, paid, or delivered under sections 345.61 to 345.90.  
 84.13  The administrator may contract with any other person to conduct 
 84.14  the examination on behalf of the administrator. 
 84.15     (c) The administrator at reasonable times may examine the 
 84.16  records of an agent, including a dividend disbursing agent or 
 84.17  transfer agent, of a business association or financial 
 84.18  association that is the holder of property presumed abandoned if 
 84.19  the administrator has given the notice required by paragraph (b) 
 84.20  to both the association or organization and the agent at least 
 84.21  90 days before the examination. 
 84.22     (d) Documents and working papers obtained or compiled by 
 84.23  the administrator, or the administrator's agents, employees, or 
 84.24  designated representatives, in the course of conducting an 
 84.25  examination are confidential and are not public records, but the 
 84.26  documents and papers may be: 
 84.27     (1) used by the administrator in the course of an action to 
 84.28  collect unclaimed property or otherwise enforce sections 345.61 
 84.29  to 345.90; 
 84.30     (2) used in joint examinations conducted with or pursuant 
 84.31  to an agreement with another state, the federal government, or 
 84.32  any other governmental subdivision, agency, or instrumentality; 
 84.33     (3) produced pursuant to subpoena or court order; or 
 84.34     (4) disclosed to the abandoned property office of another 
 84.35  state for that state's use in circumstances equivalent to those 
 84.36  described in this section, if the other state is bound to keep 
 85.1   the documents and papers confidential. 
 85.2      (e) If an examination of the records of a person results in 
 85.3   the disclosure of property reportable under sections 345.61 to 
 85.4   345.90, the administrator may assess the cost of the examination 
 85.5   against the holder at the rate of $200 a day for each examiner, 
 85.6   or a greater amount that is reasonable and was incurred, but the 
 85.7   assessment may not exceed the value of the property found to be 
 85.8   reportable.  The cost of an examination made pursuant to 
 85.9   paragraph (c) may be assessed only against the business 
 85.10  association or financial organization. 
 85.11     (f) If, after the effective date of sections 345.61 to 
 85.12  345.90, a holder does not maintain the records required by 
 85.13  section 345.61 and the records of the holder available for the 
 85.14  periods subject to sections 345.61 to 345.90 are insufficient to 
 85.15  permit the preparation of a report, the administrator may 
 85.16  require the holder to report and pay to the administrator the 
 85.17  amount the administrator reasonably estimates, on the basis of 
 85.18  any available records of the holder or by any other reasonable 
 85.19  method of estimation, should have been but was not reported. 
 85.20     Sec. 20.  [345.80] [RETENTION OF RECORDS.] 
 85.21     (a) Except as otherwise provided in paragraph (b), a holder 
 85.22  required to file a report under section 345.67 shall maintain 
 85.23  the records containing the information required to be included 
 85.24  in the report for ten years after the holder files the report, 
 85.25  unless a shorter period is provided by rule of the administrator.
 85.26     (b) A business association or financial organization that 
 85.27  sells, issues, or provides to others for sale or issue in this 
 85.28  state, traveler's checks, money orders, or similar instruments 
 85.29  other than third-party bank checks, on which the business 
 85.30  association or financial organization is directly liable, shall 
 85.31  maintain a record of the instruments while they remain 
 85.32  outstanding, indicating the state and date of issue, for three 
 85.33  years after the holder files the report. 
 85.34     Sec. 21.  [345.81] [ENFORCEMENT.] 
 85.35     The administrator may maintain an action in this or another 
 85.36  state to enforce sections 345.61 to 345.90. 
 86.1      Sec. 22.  [345.82] [INTERSTATE AGREEMENTS AND COOPERATION; 
 86.2   JOINT AND RECIPROCAL ACTIONS WITH OTHER STATES.] 
 86.3      (a) The administrator may enter into an agreement with 
 86.4   another state to exchange information relating to abandoned 
 86.5   property or its possible existence.  The agreement may permit 
 86.6   the other state, or another person acting on behalf of a state, 
 86.7   to examine records as authorized in section 345.79.  The 
 86.8   administrator by rule may require the reporting of information 
 86.9   needed to enable compliance with an agreement made under this 
 86.10  section and prescribe the form. 
 86.11     (b) The administrator may join with another state to seek 
 86.12  enforcement of sections 345.61 to 345.90 against any person who 
 86.13  is or may be holding property reportable under sections 345.61 
 86.14  to 345.90. 
 86.15     (c) At the request of another state, and after consultation 
 86.16  with the administrator, the attorney general of this state may 
 86.17  maintain an action on behalf of the other state to enforce, in 
 86.18  this state, the unclaimed property laws of the other state 
 86.19  against a holder of property subject to escheat or a claim of 
 86.20  abandonment by the other state, if the other state has agreed to 
 86.21  pay expenses incurred by the attorney general in maintaining the 
 86.22  action. 
 86.23     (d) The administrator may request that the attorney general 
 86.24  of another state or another attorney commence an action in the 
 86.25  other state on behalf of the administrator.  With the approval 
 86.26  of the attorney general of this state, the administrator may 
 86.27  retain any other attorney to commence an action in this state on 
 86.28  behalf of the administrator.  This state shall pay all expenses, 
 86.29  including attorney's fees, in maintaining an action under this 
 86.30  paragraph.  With the administrator's approval, the expenses and 
 86.31  attorney's fees may be paid from money received under sections 
 86.32  345.61 to 345.90.  The administrator may agree to pay expenses 
 86.33  and attorney's fees based in whole or in part on a percentage of 
 86.34  the value of any property recovered in the action.  Any expenses 
 86.35  or attorney's fees paid under this paragraph may not be deducted 
 86.36  from the amount that is subject to the claim by the owner under 
 87.1   sections 345.61 to 345.90. 
 87.2      Sec. 23.  [345.83] [INTEREST AND PENALTIES.] 
 87.3      (a) A holder who fails to report, pay, or deliver property 
 87.4   within the time prescribed by sections 345.61 to 345.90 shall 
 87.5   pay to the administrator interest at the rate prescribed by 
 87.6   section 270.75 on the property or value thereof from the date 
 87.7   the property should have been reported, paid, or delivered. 
 87.8      (b) Except as otherwise provided in paragraph (c), a holder 
 87.9   who fails to report, pay, or deliver property within the time 
 87.10  prescribed by sections 345.61 to 345.90, or fails to perform 
 87.11  other duties imposed by sections 345.61 to 345.90, shall pay to 
 87.12  the administrator, in addition to interest as provided in 
 87.13  paragraph (a), a civil penalty of $200 for each day the report, 
 87.14  payment, or delivery is withheld, or the duty is not performed, 
 87.15  up to a maximum of $5,000. 
 87.16     (c) A holder who willfully fails to report, pay, or deliver 
 87.17  property within the time prescribed by sections 345.61 to 
 87.18  345.90, or willfully fails to perform other duties imposed by 
 87.19  sections 345.61 to 345.90, shall pay to the administrator, in 
 87.20  addition to interest as provided in paragraph (a), a civil 
 87.21  penalty of $1,000 for each day the report, payment, or delivery 
 87.22  is withheld, or the duty is not performed, up to a maximum of 
 87.23  $25,000, plus 25 percent of the value of any property that 
 87.24  should have been but was not reported. 
 87.25     (d) A holder who makes a fraudulent report shall pay to the 
 87.26  administrator, in addition to interest as provided in paragraph 
 87.27  (a), a civil penalty of $1,000 for each day from the date a 
 87.28  report under sections 345.61 to 345.90 was due, up to a maximum 
 87.29  of $25,000, plus 25 percent of the value of any property that 
 87.30  should have been but was not reported. 
 87.31     (e) The administrator for good cause may waive, in whole or 
 87.32  in part, interest under paragraph (a) and penalties under 
 87.33  paragraphs (b) and (c), and shall waive penalties if the holder 
 87.34  acted in good faith. 
 87.35     Sec. 24.  [345.84] [AGREEMENT TO LOCATE PROPERTY.] 
 87.36     (a) An agreement by an owner, the primary purpose of which 
 88.1   is to locate, deliver, recover, or assist in the recovery of 
 88.2   property that is presumed abandoned, is void and unenforceable 
 88.3   if it was entered into during the period commencing on the date 
 88.4   the property was presumed abandoned and extending to a time that 
 88.5   is 24 months after the date the property is paid or delivered to 
 88.6   the administrator.  This paragraph does not apply to an owner's 
 88.7   agreement with an attorney to file a claim as to identified 
 88.8   property or contest the administrator's denial of a claim.  
 88.9      (b) An agreement by an owner, the primary purpose of which 
 88.10  is to locate, deliver, recover, or assist in the recovery of 
 88.11  property, is enforceable only if the agreement is in writing, 
 88.12  clearly sets forth the nature of the property and the services 
 88.13  to be rendered, is signed by the apparent owner, and states the 
 88.14  value of the property before and after the fee or other 
 88.15  compensation has been deducted. 
 88.16     (c) If an agreement covered by this section applies to 
 88.17  mineral proceeds and the agreement contains a provision to pay 
 88.18  compensation that includes a portion of the underlying minerals 
 88.19  or any mineral proceeds not then presumed abandoned, the 
 88.20  provision is void and unenforceable. 
 88.21     (d) This section does not preclude an owner from asserting 
 88.22  that an agreement covered by this section is invalid on grounds 
 88.23  other than unconscionable compensation. 
 88.24     Sec. 25.  [345.85] [FOREIGN TRANSACTIONS.] 
 88.25     Sections 345.61 to 345.90 do not apply to property held, 
 88.26  due, and owing in a foreign country and arising out of a foreign 
 88.27  transaction. 
 88.28     Sec. 26.  [345.86] [TRANSITIONAL PROVISIONS.] 
 88.29     (a) An initial report filed under sections 345.61 to 345.90 
 88.30  for property that was not required to be reported before the 
 88.31  effective date of sections 345.61 to 345.90 but which is subject 
 88.32  to sections 345.61 to 345.90 must include all items of property 
 88.33  that would have been presumed abandoned during the ten-year 
 88.34  period next preceding the effective date of sections 345.61 to 
 88.35  345.90 as if sections 345.61 to 345.90 had been in effect during 
 88.36  that period. 
 89.1      (b) Sections 345.61 to 345.90 do not relieve a holder of a 
 89.2   duty that arose before the effective date of sections 345.61 to 
 89.3   345.90 to report, pay, or deliver property.  Except as otherwise 
 89.4   provided in section 345.78, paragraph (b), a holder who did not 
 89.5   comply with the law in effect before the effective date of 
 89.6   sections 345.61 to 345.90 is subject to the applicable 
 89.7   provisions for enforcement and penalties which then existed, 
 89.8   which are continued in effect for the purpose of this section. 
 89.9      Sec. 27.  [345.87] [RULES.] 
 89.10     The administrator may adopt rules under chapter 14 
 89.11  necessary to carry out sections 345.61 to 345.90. 
 89.12     Sec. 28.  [345.88] [UNIFORMITY OF APPLICATION AND 
 89.13  CONSTRUCTION.] 
 89.14     Sections 345.61 to 345.90 shall be applied and construed to 
 89.15  effectuate its general purpose to make uniform the law with 
 89.16  respect to the subject of sections 345.61 to 345.90 among states 
 89.17  enacting it. 
 89.18     Sec. 29.  [345.89] [SHORT TITLE.] 
 89.19     Sections 345.61 to 345.89 may be cited as the Uniform 
 89.20  Unclaimed Property Act (1995).  
 89.21     Sec. 30.  [345.90] [UNCLAIMED GIFT CERTIFICATE PROCEEDS; 
 89.22  APPROPRIATION.] 
 89.23     Proceeds of the sale of unclaimed gift certificates, sold 
 89.24  under section 345.71, shall be deposited in a separate account 
 89.25  in the special revenue fund and is appropriated to the 
 89.26  department of commerce for the purposes of increasing the level 
 89.27  of voluntary filings and for other enforcement activities 
 89.28  against holders who have not filed. 
 89.29     Sec. 31.  [TRANSITION PROVISION.] 
 89.30     Notwithstanding section 5, the maximum dormancy charge that 
 89.31  may be imposed by a banking and financial institution or by a 
 89.32  business association for an unclaimed money order until June 30, 
 89.33  1999, is the maximum allowed under the law repealed by this 
 89.34  article. 
 89.35     Sec. 32.  [FISCAL IMPACT; STUDY.] 
 89.36     The department of commerce shall seek to increase the 
 90.1   number of holders voluntarily filing reports and report to the 
 90.2   house and senate budget divisions with jurisdiction over the 
 90.3   department's budget, by February 15, 1999, the results of those 
 90.4   efforts, along with any recommendations as to steps that should 
 90.5   be taken to increase voluntary compliance. 
 90.6      The department of commerce shall monitor the number of 
 90.7   holders filing reports and the amount of monies collected under 
 90.8   sections 1 to 29 for the period July 1, 1998, to June 30, 1999, 
 90.9   and compare it to the number of holders filing reports and the 
 90.10  monies collected for each of the previous two years.  If the 
 90.11  department determines sections 1 to 29 have caused a reduction 
 90.12  in the number of holder reports or monies collected, it shall 
 90.13  develop recommendations for legislation to eliminate any 
 90.14  negative fiscal impact.  The department shall report by February 
 90.15  15, 2000, the results of the monitoring and any recommendations 
 90.16  to the house and senate budget divisions having jurisdiction 
 90.17  over the department's budget. 
 90.18     Sec. 33.  [REPEALER.] 
 90.19     Minnesota Statutes 1996, sections 345.31; 345.32; 345.33; 
 90.20  345.34; 345.35; 345.36; 345.37; 345.38; 345.381; 345.39; 345.40; 
 90.21  345.41; 345.42; 345.43; 345.44; 345.45; 345.46; 345.47; 345.485; 
 90.22  345.49; 345.50; 345.51; 345.515; 345.52; 345.525; 345.53; 
 90.23  345.54; 345.55; 345.56; 345.57; 345.58; 345.59; and 345.60; 
 90.24  Minnesota Statutes 1997 Supplement, section 345.48, are repealed.
 90.25     Sec. 34.  [EFFECTIVE DATE.] 
 90.26     This article is effective July 1, 1998. 
 90.27                             ARTICLE 3 
 90.28                         CONFORMING CHANGES 
 90.29     Section 1.  Minnesota Statutes 1996, section 16A.45, 
 90.30  subdivision 1, is amended to read: 
 90.31     Subdivision 1.  [CANCEL; CREDIT.] Once each fiscal year the 
 90.32  commissioner and the treasurer shall cancel upon their books all 
 90.33  outstanding unpaid commissioner's warrants, except warrants 
 90.34  issued for federal assistance programs, that have been issued 
 90.35  and delivered for more than six months prior to that date and 
 90.36  credit to the general fund the respective amounts of the 
 91.1   canceled warrants.  These warrants are presumed abandoned under 
 91.2   section 345.38 345.62 and are subject to the provisions of 
 91.3   sections 345.31 345.61 to 345.60 345.90.  The commissioner and 
 91.4   the treasurer shall cancel upon their books all outstanding 
 91.5   unpaid commissioner's warrants issued for federal assistance 
 91.6   programs that have been issued and delivered for more than the 
 91.7   period of time set pursuant to the federal program and credit to 
 91.8   the general fund and the appropriate account in the federal 
 91.9   fund, the amount of the canceled warrants. 
 91.10     Sec. 2.  Minnesota Statutes 1996, section 16A.45, 
 91.11  subdivision 4, is amended to read: 
 91.12     Subd. 4.  [LOCATING UNPAID WARRANTS.] A person may not seek 
 91.13  or receive from another person, or contract with a person for, a 
 91.14  fee or compensation for locating outstanding unpaid 
 91.15  commissioner's warrants before the warrants have been reported 
 91.16  to the commissioner of commerce under section 345.41 345.67. 
 91.17     Sec. 3.  Minnesota Statutes 1997 Supplement, section 
 91.18  16A.6701, subdivision 1, is amended to read: 
 91.19     Subdivision 1.  [STATE LICENSE AND SERVICE FEES.] For 
 91.20  purposes of section 16A.67, subdivision 3, and this section, the 
 91.21  term "state license and service fees" means, and refers to, all 
 91.22  license fees, service fees, and charges imposed by law and 
 91.23  collected by any state officer, agency, or employee, which are 
 91.24  listed below or which are defined as departmental earnings under 
 91.25  section 16A.1285, subdivision 1, and the use of which is not 
 91.26  otherwise restricted by law, and which are not required to be 
 91.27  credited or transferred to a fund other than the general fund:  
 91.28     Minnesota Statutes 1994, sections 3.9221; 5.12; 5.14; 5.16; 
 91.29  5A.04; 6.58; 13.03, subdivision 10; 16A.155; 16A.48; 16A.54; 
 91.30  16A.72; 16B.59; 16B.70; 17A.04; 18.51, subdivision 2; 18.53; 
 91.31  18.54; 18C.551; 19.58; 19.64; 27.041, subdivision 2, clauses (d) 
 91.32  and (e); 27.07, subdivision 5; 28A.08; 32.071; 32.075; 32.392; 
 91.33  35.71; 35.824; 35.95; 41C.12; 45.027, subdivisions 3 and 6; 
 91.34  46.041, subdivision 1; 46.131, subdivisions 2, 7, 8, 9, and 10; 
 91.35  47.101, subdivision 2; 47.54, subdivisions 1 and 4; 47.62, 
 91.36  subdivision 4; 47.65; 48.475, subdivision 1; 48.61, subdivision 
 92.1   7; 48.93; 49.36, subdivision 1; 52.01; 52.203; 53.03, 
 92.2   subdivisions 1, 5, and 6; 53.09, subdivision 1; 53A.03; 53A.05, 
 92.3   subdivision 1; 53A.081, subdivision 3; 54.294, subdivision 1; 
 92.4   55.04, subdivision 2; 55.095; 56.02; 56.04; 56.10; 59A.03, 
 92.5   subdivision 2; 59A.06, subdivision 3; 60A.14, subdivisions 1 and 
 92.6   2; 60A.23, subdivision 8; 60K.19, subdivision 5; 65B.48, 
 92.7   subdivision 3; 70A.14, subdivision 4; 72B.04, subdivision 10; 
 92.8   79.251, subdivision 5; 80A.28, subdivisions 1, 2, 3, 4, 5, 6, 7, 
 92.9   7a, 8, and 9; 80C.04, subdivision 1; 80C.07; 80C.08, subdivision 
 92.10  1; 80C.16, subdivisions 2 and 3; 80C.18, subdivision 2; 82.20, 
 92.11  subdivision 8 and 9; 82A.04, subdivision 1; 82A.08, subdivision 
 92.12  2; 82A.16, subdivisions 2 and 6; 82B.09, subdivision 1; 83.23, 
 92.13  subdivisions 2, 3, and 4; 83.25, subdivisions 1 and 2; 83.26, 
 92.14  subdivision 2; 83.30, subdivision 2; 83.31, subdivision 2; 
 92.15  83.38, subdivision 2; 85.052; 85.053; 85.055; 88.79, subdivision 
 92.16  2; 89.035; 89.21; 115.073; 115.77, subdivisions 1 and 2; 116.41, 
 92.17  subdivision 2; 116C.69; 116C.712; 116J.9673; 125.08; 136C.04, 
 92.18  subdivision 9; 155A.045; 155A.16; 168.27, subdivision 11; 
 92.19  168.33, subdivisions 3 and 7; 168.54; 168.67; 168.705; 168A.152; 
 92.20  168A.29; 169.345; 171.06, subdivision 2a; 171.29, subdivision 2; 
 92.21  176.102; 176.1351; 176.181, subdivision 2a; 177.30; 181A.12; 
 92.22  183.545; 183.57; 184.28; 184.29; 184A.09; 201.091, subdivision 
 92.23  5; 204B.11; 207A.02; 214.06; 216C.261; 221.0355; 239.101; 
 92.24  240.06; 240.07; 240.08; 240.09; 240.10; 246.51; 270.69, 
 92.25  subdivision 2; 270A.07; 272.484; 296.06; 296.12; 296.17; 
 92.26  297F.03; 297.33; 299C.46; 299C.62; 299K.09; 299K.095; 299L.07; 
 92.27  299M.04; 300.49; 318.02; 323.44, subdivision 3; 325D.415; 
 92.28  326.22; 326.3331; 326.47; 326.50; 326.92, subdivisions 1 and 3; 
 92.29  327.33; 331A.02; 332.15, subdivisions 2 and 3; 332.17; 332.22, 
 92.30  subdivision 1; 332.33, subdivisions 3 and 4; 332.54, subdivision 
 92.31  7; 333.055; 333.20; 333.23; 336.9-413; 336A.04; 336A.05; 
 92.32  336A.09; 345.35 345.62, paragraph (a), clause (2); 345.43, 
 92.33  subdivision 2a 345.68; 345.44 345.70; 345.55, subdivision 
 92.34  3 345.83; 347.33; 349.151; 349.161; 349.162; 349.163; 349.164; 
 92.35  349.165; 349.166; 349.167; 357.08; 359.01, subdivision 3; 
 92.36  360.018; 360.63; 386.68; and 414.01, subdivision 11; Minnesota 
 93.1   Statutes 1994, chapters 154; 216B; 237; 302A; 303; 308A; 317A; 
 93.2   322A; and 322B; Laws 1990, chapter 593; Laws 1993, chapter 254, 
 93.3   section 7; and Laws 1994, chapter 573, section 4; Minnesota 
 93.4   Rules, parts 1800.0500; 1950.1070; 2100.9300; 7515.0210; and 
 93.5   9545.2000 to 9545.2040. 
 93.6      Sec. 4.  Minnesota Statutes 1996, section 80C.03, is 
 93.7   amended to read: 
 93.8      80C.03 [EXEMPTIONS.] 
 93.9      The registration requirement imposed by section 80C.02 
 93.10  shall not apply to the following provided that the method of 
 93.11  offer or sale is not used for the purpose of evading sections 
 93.12  80C.01 to 80C.22: 
 93.13     (a) the offer or sale of a franchise owned by that 
 93.14  franchisee, or the offer or sale of the entire area franchise 
 93.15  owned by the subfranchisor making the offer or sale if the sale 
 93.16  is not effected by or through a franchisor; provided, however, 
 93.17  that no person shall make more than one sale during any period 
 93.18  of 12 consecutive months of a franchise or area franchise 
 93.19  granted by a single franchisor.  A sale is not effected by or 
 93.20  through a franchisor merely because a franchisor has a right to 
 93.21  approve or disapprove a different franchisee; 
 93.22     (b) any transaction by an executor, administrator, sheriff, 
 93.23  receiver, trustee in bankruptcy, guardian or conservator; 
 93.24     (c) any offer or sale to a banking organization, financial 
 93.25  organization or life insurance corporation company within the 
 93.26  meanings given these terms by section 345.31 345.61; 
 93.27     (d) securities currently registered in this state pursuant 
 93.28  to chapter 80A; 
 93.29     (e) the offer or sale of a franchise, not including an area 
 93.30  franchise, provided that:  
 93.31     (1) the franchisor shall make no more than one sale of a 
 93.32  franchise pursuant to this exemption during any period of 12 
 93.33  consecutive months; 
 93.34     (2) the franchisor has not advertised the franchise for 
 93.35  sale to the general public in newspapers or other publications 
 93.36  of general circulation or otherwise by radio, television, 
 94.1   electronic means or similar communications media, or through a 
 94.2   program of general solicitation by means of mail or telephone; 
 94.3      (3) the franchisor deposits all franchisee fees within two 
 94.4   days of receipt in an escrow account until all obligations of 
 94.5   the franchisor to the franchisee which are, pursuant to the 
 94.6   terms of the franchise agreement, to be performed prior to the 
 94.7   opening of the franchise, have been performed.  The franchisor 
 94.8   shall provide the franchisee with a purchase receipt for the 
 94.9   franchise fees paid, a copy of the escrow agreement and the 
 94.10  name, address and telephone number of the escrow agent.  The 
 94.11  escrow agent shall be a bank located in Minnesota.  Upon a 
 94.12  showing of good cause the commissioner may waive the escrow of 
 94.13  franchise fees; and 
 94.14     (4) the franchisor has provided to the commissioner, no 
 94.15  later than ten business days prior to the sale, a written notice 
 94.16  of its intention to offer or sell a franchise pursuant to this 
 94.17  exemption; 
 94.18     (f) the offer or sale of a fractional franchise; 
 94.19     (g) any transaction which the commissioner by rule or order 
 94.20  exempts as not being within the purposes of this chapter and the 
 94.21  registration of which the commissioner finds is not necessary or 
 94.22  appropriate in the public interest or for the protection of 
 94.23  investors; and 
 94.24     (h) the offer or sale of a franchise to a resident of a 
 94.25  foreign state, territory, or country who is neither domiciled in 
 94.26  this state nor actually present in this state, if the franchise 
 94.27  business is not to be operated wholly or partly in this state, 
 94.28  and if the sale of this franchise is not in violation of any law 
 94.29  of the foreign state, territory, or county concerned.  
 94.30     Sec. 5.  Minnesota Statutes 1996, section 198.231, is 
 94.31  amended to read: 
 94.32     198.231 [PERSONAL PROPERTY OF DISCHARGED RESIDENTS.] 
 94.33     Personal property of discharged residents of the veterans 
 94.34  homes that remains unclaimed for one year after discharge may be 
 94.35  inventoried, appraised, and sold.  The proceeds from the sale 
 94.36  must be deposited into the state treasury.  Proceeds from the 
 95.1   sale of personal property and any funds held on behalf of the 
 95.2   resident in the member's depository accounts must be credited to 
 95.3   a separate state account and disposed of in accordance with 
 95.4   sections 345.41 345.67 to 345.43 345.69.  
 95.5      Sec. 6.  Minnesota Statutes 1996, section 276.19, 
 95.6   subdivision 4, is amended to read: 
 95.7      Subd. 4.  [APPLICABILITY.] Sections 345.31 345.61 to 345.60 
 95.8   345.90 do not apply to unclaimed property tax refunds, 
 95.9   overpayments, and warrants. 
 95.10     Sec. 7.  Minnesota Statutes 1996, section 308A.711, 
 95.11  subdivision 1, is amended to read: 
 95.12     Subdivision 1.  [ALTERNATE PROCEDURE TO DISBURSE PROPERTY.] 
 95.13  Notwithstanding the provisions of section 345.43 345.68, a 
 95.14  cooperative may, in lieu of paying or delivering to the 
 95.15  commissioner of commerce the unclaimed property specified in its 
 95.16  report of unclaimed property, distribute the unclaimed property 
 95.17  to a corporation or organization that is exempt from taxation 
 95.18  under section 290.05, subdivision 1, paragraph (b), or 2.  A 
 95.19  cooperative making the election to distribute unclaimed property 
 95.20  shall, within 20 days after the time specified in section 345.42 
 95.21  345.68 for claiming the property from the holder, file with the 
 95.22  commissioner of commerce: 
 95.23     (1) a verified written explanation of the proof of claim of 
 95.24  an owner establishing a right to receive the abandoned property; 
 95.25     (2) any errors in the presumption of abandonment; 
 95.26     (3) the name, address, and exemption number of the 
 95.27  corporation or organization to which the property was or is to 
 95.28  be distributed; and 
 95.29     (4) the approximate date of distribution. 
 95.30     Sec. 8.  Minnesota Statutes 1996, section 308A.711, 
 95.31  subdivision 2, is amended to read: 
 95.32     Subd. 2.  [REPORTING AND CLAIMING PROCEDURE NOT AFFECTED.] 
 95.33  This subdivision does not alter the procedure provided in 
 95.34  sections 345.41 345.67 and 345.42 345.69 for cooperatives to 
 95.35  report unclaimed property to the commissioner of commerce and 
 95.36  the requirement that claims of owners are made to the 
 96.1   cooperatives for a period of 65 days following the publication 
 96.2   of lists of abandoned property. 
 96.3      Sec. 9.  Minnesota Statutes 1996, section 356.65, 
 96.4   subdivision 2, is amended to read: 
 96.5      Subd. 2.  [DISPOSITION OF ABANDONED AMOUNTS.] Any unclaimed 
 96.6   public pension fund amounts existing in any public pension fund 
 96.7   shall be presumed abandoned, but shall not be subject to the 
 96.8   provisions of sections 345.31 345.61 to 345.60 345.90.  Unless 
 96.9   the benefit plan of the public pension fund specifically 
 96.10  provides for a different disposition of unclaimed or abandoned 
 96.11  funds or amounts, any unclaimed public pension fund amounts 
 96.12  shall cancel and shall be credited to the public pension fund.  
 96.13  If the unclaimed public pension fund amount exceeds $25 and the 
 96.14  inactive or former member again becomes a member of the public 
 96.15  pension fund or applies for a retirement annuity pursuant to 
 96.16  section 3A.12, 352.72, 352B.30, 352C.051, 353.71, 354.60, 
 96.17  356.30, or 422A.16, subdivision 8, whichever is applicable, the 
 96.18  canceled amount shall be restored to the credit of the person.  
 96.19     Sec. 10.  Minnesota Statutes 1996, section 624.68, is 
 96.20  amended to read: 
 96.21     624.68 [RECEIVING DEPOSIT IN INSOLVENT BANKS OR FINANCIAL 
 96.22  ORGANIZATIONS.] 
 96.23     Every officer, director, agent, or employee of any banking 
 96.24  organization or financial organization as defined in section 
 96.25  345.31 345.61 and every person, company, and corporation engaged 
 96.26  in whole or in part, in business as a banking organization or 
 96.27  financial organization, who shall accept or receive on deposit 
 96.28  from any person, any money, bank bills, notes, currency, checks, 
 96.29  bills, drafts, or paper circulating as money, knowing or, in the 
 96.30  case of officers or directors, having good reason to know that 
 96.31  such banking organization or financial organization is 
 96.32  insolvent, and every person knowing of such insolvent condition 
 96.33  who shall be accessory to, or permit, or connive at the 
 96.34  accepting or receiving on deposit therein any such deposits, 
 96.35  shall be guilty of a felony and punished by imprisonment in the 
 96.36  Minnesota correctional facility-Stillwater for not less than one 
 97.1   year nor more than five years or by a fine of not less than $700 
 97.2   nor more than $20,000.