1.1 	A bill for an act
1.2 	relating to economic development; providing for transition activities and 
1.3 	termination of a neighborhood revitalization program in a city of the first class;
1.4 	amending Minnesota Statutes 2010, section 469.1831, by adding a subdivision.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2010, section 469.1831, is amended by adding a 
1.7 	subdivision to read:
1.8 		Subd. 9.Transition and termination requirements. (a) Notwithstanding any law, 
1.9 	charter, or ordinance to the contrary, termination of a neighborhood revitalization program 
1.10 	created by a city of the first class is subject to the requirements of this subdivision.
1.11 	(b) Funds dedicated for neighborhood revitalization program activities under this 
1.12 	section and received by the neighborhood revitalization program prior to January 1, 2011, 
1.13 	any interest derived from those funds in the future, and program income derived from the 
1.14 	expenditure of any funds allocated to a neighborhood under an approved action plan, that 
1.15 	is retained by the neighborhood, the program, or the city may only be expended for a 
1.16 	purpose listed in subdivision 3, 4, or 5, and in accordance with the process required in 
1.17 	subdivision 6. The cumulative balance of the funds described in this subdivision shall be 
1.18 	expended as required by this section until there remains a balance of $3,000,000 or less, 
1.19 	or until the termination date of the extended agreement under paragraph (c), whichever 
1.20 	is earlier. At that time, the city that created the program may terminate the program and 
1.21 	allocate any remaining funds for any purpose for which city funds may be expended. Prior 
1.22 	to termination, the city and the policy board shall provide for an orderly transition of 
1.23 	program staff and duties. 
2.1 	(c) When the agreement creating the policy board required under this section 
2.2 	terminates on or after December 31, 2011, the respective existing governing body 
2.3 	members of the policy board identified in the agreement shall continue to operate the 
2.4 	program under the terms of the agreement for the purpose of providing the functions and 
2.5 	oversight of the program required by subdivisions 4 through 7, subject to the requirements 
2.6 	of this subdivision. This continuation shall be in effect until the control of the remaining 
2.7 	program funds is transferred to the city as described in paragraph (b).

2.8 	EFFECTIVE DATE. This section is effective the day following final enactment.