The Honorable Phil Carruthers

Speaker of the House of Representatives

The State of Minnesota

Dear Speaker Carruthers:

It is my honor to inform you that I have received, approved, signed and deposited in the Office of the Secretary of State the following House Files:

H. F. No. 2499, relating to Hennepin county; removing the dollar limitation for certain small purchases that may be authorized by the board.

Warmest regards,

Arne H. Carlson

Governor

Speaker of the House of Representatives

The Honorable Allan H. Spear

President of the Senate

I have the honor to inform you that the following enrolled Acts of the 1998 Session of the State Legislature have been received from the Office of the Governor and are deposited in the Office of the Secretary of State for preservation, pursuant to the State Constitution, Article IV, Section 23:

S.F. No.	H.F. No.	Session Laws Chapter No.	Time and Date Approved 1997	Date Filed 1997
	2499	259	8:58 a.m. February 27	February 27
2478		260	9:00 a.m. February 27	February 27

Sincerely,

Joan Anderson Growe
Secretary of State

$700,000 in fiscal year 1998 is for state trail maintenance and amenities. $250,000 of this amount is for improvements including trail connections, lighting, and landscaping related to the trail bridge over Highway 36 in North St. Paul.

$500,000 in fiscal year 1999 is for further work to develop protected water flow recommendations on Minnesota streams and for support of river restoration. $300,000 of this amount is for stream protection on Brown's Creek in Washington county.

$53,000 in fiscal year 1999 is for minerals cooperative environmental research. $26,500 is available only as matched by $1 of nonstate money for each $1 of state money. This appropriation is added to the appropriation in Laws 1997, chapter 216, section 5, subdivision 2. The appropriation is available until September 30, 1999.

$200,000 in fiscal year 1999 is for a grant to the Minnesota forest resources council for implementation of the generic environmental impact statement study on timber harvesting and forest management in Minnesota. This is a one-time appropriation.

$75,000 in fiscal year 1998 is to repair state forest land in Morrison, Mille Lacs, Kanabec, and Crow Wing counties.

$100,000 in fiscal year 1998 is to:

(1) conduct engineering and hydraulic studies in conjunction with the proposed development of an urban whitewater trail along the Mississippi river in the lower St. Anthony falls area below the stone arch bridge in Minneapolis; and

(2) examine the economic impact, market use potential, public safety concerns, environmental considerations, and land and water use impacts of the proposed Mississippi urban whitewater trail.

In fulfilling the duties under the preceding paragraph, the commissioner must coordinate and work with affected local, state, and federal governments and interested citizen groups, including, but not limited to, the National Park Service, the United States Army Corps of Engineers, the University of Minnesota, the Minnesota historical society, the metropolitan parks and open space commission, the Minneapolis park board, and the Mississippi Whitewater Park Development Corporation. The commissioner must report to the senate and house environmental finance committees by March 1, 1999, on the findings from the studies required in the preceding paragraph.

$100,000 is for a grant to the township of Linwood in Anoka county to construct a surface water drainage system to control water pollution. This appropriation is available until expended.

$300,000 in fiscal year 1998 is for a grant to the Sauk river watershed district for renovation of the Sauk river dam. The grant must not exceed 50 percent of the cost of the project. This appropriation is available until expended.

$350,000 in fiscal year 1998 is to serve as the state match to federal money to remove surplus sediment along the east bank of the Mississippi river at Little Falls. The commissioner must coordinate and work with the United States Army Corps of Engineers on this project. This appropriation is available until expended.

$300,000 in fiscal year 1998 is for a forestry information management system to improve the timber sale program, forest development model, and fire management.

$50,000 in fiscal year 1998 is for ecosystem-based management workshops for teams of local officials, natural resource managers, and citizens.

$200,000 in fiscal year 1999 is for aquatic plant restoration. This is a one-time appropriation, available until expended.

$300,000 in fiscal year 1999 is for long-term monitoring of lake ecosystems.

$200,000 in fiscal year 1999 is for an enhanced lake classification system to provide comprehensive lake descriptions. This is a one-time appropriation, available until expended.

$500,000 in fiscal year 1999 is to identify lake watershed boundaries for lakes greater than 100 acres in a geographic information system format. This is a one-time appropriation, available until expended.

$300,000 in fiscal year 1999 is to develop methodologies to assess the cumulative effects of development on lakes. This is a one-time appropriation, available until expended.

$100,000 is for a grant to the Upper Swede Hollow Association for improvements in and around Swede Hollow Park. The appropriation shall be used for plantings, tuckpointing, improvements to railway trestles, trail repair, reconstruction of the pond outlet, and other trail improvements.

$200,000 in fiscal year 1999 is for publication of an aquatic plant identification manual. This is a one-time appropriation, available until expended.

The appropriation in Laws 1997, chapter 216, section 5, subdivision 4, for grants to local community forest ecosystem health programs is available until June 30, 2000.

The appropriations in Laws 1996, chapter 407, section 3, for the Iron Range off-highway vehicle recreation area are available until June 30, 2000.

Sec. 5. BOARD OF WATER AND SOIL RESOURCES 400,000 2,560,000

$200,000 in fiscal year 1998 is for a grant to the Faribault county soil and water conservation district for the quad-lakes restoration project in Faribault and Blue Earth counties and is available until expended.

$1,000,000 in fiscal year 1999 is for shoreland and watershed best management practices cost-share to protect watershed and riparian areas.

$1,460,000 in fiscal year 1999 is for grants to counties and local water planning agencies for lake assessment activities.

$200,000 in fiscal year 1998 is for a grant to the University of Minnesota extension service to improve existing Minnesota extension guidance and guide books. This is a one-time appropriation, available until expended.

$100,000 in fiscal year 1999 is for a pilot grant program to soil and water conservation districts for cost-sharing contracts with landowners to establish and maintain plantings of trees, shrubs, and grass strips that are native species of a local ecotype for the primary purpose of controlling snow deposition for the benefit of public transportation. The board, in consultation with the Minnesota Association of Soil and Water Conservation Districts, shall select at least five districts for participation in the pilot program. Up to 20 percent of the appropriation may be used for the technical and administrative expenses of soil and water conservation districts to implement this paragraph. The board shall enter into grant agreements to accomplish the transfer of funds to soil and water conservation districts and to establish guidelines to implement this paragraph. Cost-sharing contracts between soil and water conservation districts and landowners may provide for annual payments to landowners for maintenance. This appropriation is available until spent.

Sec. 6. AGRICULTURE 160,000 880,000

$75,000 in fiscal year 1999 is for additional matching funds for the WIC coupon program.

$50,000 in fiscal year 1999 is added to the appropriation in Laws 1997, chapter 216, section 7, subdivision 4, for beaver damage control grants.

$100,000 in fiscal year 1998 is added to the appropriation in Laws 1997, chapter 216, section 7, subdivision 4, to accomplish reform of the federal milk market order system and for legal actions opposing the Northeast Dairy Compact.

$250,000 in fiscal year 1999 is for a grant to the Market Champ, Inc. board.

$50,000 in fiscal year 1999 is for the Passing on the Farm Center established in Minnesota Statutes, section 17.985. This appropriation is in addition to appropriations in Laws 1997, chapter 216, section 7, subdivision 4.

$250,000 in fiscal year 1999 is to expand the shared savings loan program under Minnesota Statutes, section 17.115, to include a program of revolving loans for demonstration projects of farm manure digester technology. Notwithstanding the limitations of Minnesota Statutes, section 17.115, subdivision 2, paragraphs (b) and (c), loans under this program are no-interest loans in principal amount not to exceed $250,000 and may be made to any resident of this state. Loans for one or more projects must be made only after the commissioner seeks applications. Loans under this program may be used as a match for federal loans or grants. Money repaid from loans must be returned to the revolving fund for future projects.

Sec. 7. ATTORNEY GENERAL -0- 100,000

For purposes of the legal assistance to counties in section 34. This appropriation is available for fiscal year 1999.

Sec. 8. UNIVERSITY OF MINNESOTA -0- 650,000

Sec. 9. [17.987] [MARKET CHAMP, INC; ACCESS TO QUALITY GENETICS BY FAMILY FARMERS.]

Subdivision 1. [ESTABLISHMENT; PURPOSE.] Market Champ, Inc. is established as a nonprofit public corporation under chapter 317A and is subject to the provisions of that chapter. The corporation is neither a state agency nor an entity within the University of Minnesota. The purpose of the corporation is to transfer high quality swine genetic material from the University of Minnesota to the family farmers of the state in order to enhance the state's economic growth and the competitiveness of family farmers. Market Champ, Inc. shall assist Minnesota swine producers in understanding genetic technologies and developing improved animal genetic lines.

Subd. 2. [DUTIES.] (a) Market Champ, Inc. shall:

(1) encourage family farmers to use the highest quality swine genetics;

(2) facilitate the transfer of the latest swine genetic research and technology information and materials from the University of Minnesota and other sources to family farmers;

(3) assist family farmers to market the swine they produce; and

(4) develop a system for tracking their products through the processing, meat packing, and marketing system to determine the market value of the genetic technology.

(b) Market Champ, Inc. shall:

(1) provide genetic testing, counseling, and assistance in genetic decisions to identify new market developments and capture value-added opportunities;

(2) provide centralized testing services with regional technology transfer specialists;

(3) secure access to new genetic tests and services for all Minnesota producers through licensing agreements; and

(4) assist family farmers who do not otherwise have access to high quality genetic technologies.

Subd. 3. [BOARD OF DIRECTORS.] (a) Market Champ, Inc. shall be governed by a board of directors consisting of 21 voting members, appointed by the governor.

(b) The members of the board shall be:

(1) four representatives of small family farmers with under 250 sows;

(2) two representatives of purebred swine producers;

(3) two members of the Minnesota Pork Producers Association;

(4) two appropriate representatives of the pork industry;

(5) two members of the meat packing industry;

(6) two members representing the University of Minnesota;

(7) two members representing Minnesota state colleges and universities;

(8) the commissioner of agriculture; and

Members listed in clauses (1) to (5) must be recommended by the president of the University of Minnesota or a designee of the president, in consultation with the chairs of the senate and house of representatives committees with jurisdiction over agricultural policy and finance issues.

(c) Meetings of the board are subject to section 471.705.

Subd. 4. [BYLAWS.] Bylaws of Market Champ, Inc. must provide for the qualification and removal of directors and for filling vacancies on the board in a manner not inconsistent with this section.

Subd. 5. [ARTICLES OF INCORPORATION.] The articles of incorporation of Market Champ, Inc. must be filed with the secretary of state under chapter 317A and must be consistent with this section.

Subd. 6. [AUDIT.] Market Champ, Inc. shall contract with the legislative auditor to perform audits and must report the results to the legislature.

Subd. 7. [REPORT.] The board of directors of Market Champ, Inc. shall submit an annual report on the activities of Market Champ, Inc. by January 15 of each year to the appropriations, finance, and agriculture committees of the legislature and to the governor. The report must include a description of the corporation's activities for the past year, a list of all contracts entered into by the corporation, and a financial report of revenues and expenditures of the corporation.

Subd. 8. [EXPIRATION.] The board of directors of Market Champ, Inc. expires on June 30, 2003.

Sec. 10. [18G.01] [PURPOSE.]

The purpose of this chapter is to minimize the environmental risks associated with improper handling, management, or application of animal wastes generated by large animal feedlots.

Sec. 11. [18G.02] [TRAINING AND LICENSING FOR ANIMAL WASTE TECHNICIANS.]

After March 1, 2000, a person who manages or applies animal wastes for hire must hold a valid commercial animal waste technician license.

The commissioner of agriculture, in cooperation with the Minnesota extension service and appropriate educational institutions, shall establish and implement a program for training and licensing commercial animal waste technicians.

Sec. 12. [18G.03] [COMMERCIAL ANIMAL WASTE TECHNICIAN.]

Subdivision 1. [REQUIREMENT.] (a) After March 1, 2000, a person may not manage or apply animal wastes for hire without a valid commercial animal waste technician license.

(b) A commercial animal waste technician licensee must have a valid license identification card when managing or applying animal wastes for hire and must display it upon demand by an authorized representative of the commissioner or a law enforcement officer. The commissioner shall prescribe the information required on the license identification card.

Subd. 2. [RESPONSIBILITY.] A person required to be licensed under this section who performs animal waste management or application for hire or who employs a licensed technician to perform animal waste management or application for compensation is responsible for proper management or application of the animal wastes.

Subd. 3. [LICENSE.] A commercial animal waste technician license:

(1) is valid for three years and expires on December 31 of the third year for which it is issued, unless suspended or revoked before that date;

(2) is not transferable to another person; and

Subd. 4. [APPLICATION.] A person must apply to the commissioner for a commercial animal waste technician license on forms and in the manner required by the commissioner and must include the application fee. The commissioner shall prescribe and administer an examination or equivalent measure to determine if the applicant is eligible for the commercial animal waste technician license.

Subd. 5. [RENEWAL APPLICATION.] A person must apply to the commissioner of agriculture to renew a commercial animal waste technician license and must include the application fee. The commissioner may renew a commercial animal waste technician license, subject to reexamination, attendance at workshops approved by the commissioner, or other requirements imposed by the commissioner to provide the animal waste technician with information regarding changing technology and to help ensure a continuing level of competence and ability to manage and apply animal wastes properly. The applicant may renew a commercial animal waste technician license within 12 months after expiration of the license without having to meet initial testing requirements. The commissioner may require additional demonstration of animal waste technician qualification if a person has had a license suspended or revoked or has had a history of violations of this section.

Subd. 6. [FINANCIAL RESPONSIBILITY.] (a) A commercial animal waste technician license may not be issued unless the applicant furnishes proof of financial responsibility. The financial responsibility may be demonstrated by (1) proof of net assets equal to or greater than $50,000, or (2) a performance bond or insurance of the kind and in an amount determined by the commissioner of agriculture.

(b) The bond or insurance must cover a period of time at least equal to the term of the applicant's license. The commissioner shall immediately suspend the license of a person who fails to maintain the required bond or insurance.

(c) An employee of a licensed person is not required to maintain an insurance policy or bond during the time the employer is maintaining the required insurance or bond.

(d) Applications for reinstatement of a license suspended under paragraph (b) must be accompanied by proof of satisfaction of judgments previously rendered.

Subd. 7. [APPLICATION FEE.] (a) A person initially applying for or renewing a commercial animal waste technician license must pay a nonrefundable application fee of $50.

(b) Fees collected under this subdivision must be deposited in the animal waste liability account.

Sec. 13. [18G.04] [NONCOMMERCIAL ANIMAL WASTE TECHNICIAN; PLAN FOR LICENSING.]

The commissioner of agriculture, in consultation with the commissioner of the pollution control agency, the Minnesota extension service, and statewide farm organizations including the Minnesota Farmers Union and the Farm Bureau Federation, shall design a program for the training and licensure of noncommercial animal waste technicians. Not later than March 1, 1999, the commissioner shall report to the legislature on recommendations for implementing the program for training and licensing noncommercial animal waste technicians. The recommendations must include at least the following:

(1) persons and activities that should be exempt from licensure;

(2) dates by which persons should be required to obtain the noncommercial animal waste technician license;

(3) content of the noncommercial animal waste technician training curriculum; and

(4) procedures and timelines for implementing noncommercial animal waste technician training programs.

Sec. 14. Minnesota Statutes 1996, section 35.82, subdivision 2, is amended to read:

or thoroughly burn it or dispose of it by another method approved by the board as being effective for the protection of public health and the control of livestock diseases. The board, through its executive secretary, may issue permits to owners of rendering plants located in Minnesota which are operated and conducted as required by law, to transport carcasses of domestic animals and fowl that have died, or have been killed otherwise than by being slaughtered for human or animal consumption, over the public highways to their plants for rendering purposes in accordance with the rules adopted by the board relative to transportation, rendering, and other provisions the board considers necessary to prevent the spread of disease. The board may issue permits to owners of rendering plants located in an adjacent state with which a reciprocal agreement is in effect under subdivision 3.

(b) Carcasses collected by rendering plants under permit may be used for pet food or mink food if the owner or operator meets the requirements of subdivision 1b.

(c) An authorized employee or agent of the board may enter private or public property and inspect the carcass of any domestic animal that has died or has been killed other than by being slaughtered for human or animal consumption. Failure to dispose of the carcass of any domestic animal within the period specified by this subdivision is a public nuisance. The board may petition the district court of the county in which a carcass is located for a writ requiring the abatement of the public nuisance. A civil action commenced under this paragraph does not preclude a criminal prosecution under this section. No person may sell, offer to sell, give away, or convey along a public road or on land the person does not own, the carcass of a domestic animal when the animal died or was killed other than by being slaughtered for human or animal consumption unless it is done with a special permit pursuant to this section. The carcass or parts of a domestic animal that has died or has been killed other than by being slaughtered for human or animal consumption may be transported along a public road for a medical or scientific purpose if the carcass is enclosed in a leakproof container to prevent spillage or the dripping of liquid waste. The board may adopt rules relative to the transportation of the carcass of any domestic animal for a medical or scientific purpose. A carcass on a public thoroughfare may be transported for burial or other disposition in accordance with this section.

No person who owns or controls diseased animals shall negligently or willfully permit them to escape from that control or to run at large.

(d) A sheep producer may compost sheep carcasses owned by the producer on the producer's land without a permit and is exempt from compost facility specifications contained in rules of the board.

(e) The board shall develop best management practices for dead animal disposal and the pollution control agency feedlot program shall distribute them to livestock producers in the state.

(f) The board shall not issue to any swine producer a permit for the homogenization of piglet carcasses. No swine producer may dispose of piglet carcasses by the process of homogenization.

Sec. 15. Minnesota Statutes 1996, section 41A.09, subdivision 1a, is amended to read:

Subd. 1a. [ETHANOL PRODUCTION GOAL.] It is a goal of the state that ethanol production plants in the state attain a total annual production level of 220,000,000 244,000,000 gallons.

Sec. 16. Minnesota Statutes 1997 Supplement, section 41A.09, subdivision 3a, is amended to read:

Subd. 3a. [PAYMENTS.] (a) The commissioner of agriculture shall make cash payments to producers of ethanol, anhydrous alcohol, and wet alcohol located in the state. These payments shall apply only to ethanol, anhydrous alcohol, and wet alcohol fermented in the state and produced at plants that have begun production by June 30, 2000. For the purpose of this subdivision, an entity that holds a controlling interest in more than one ethanol plant is considered a single producer. The amount of the payment for each producer's annual production is:

(2) for each gallon produced of wet alcohol on or before June 30, 2000, or ten years after the start of production, whichever is later, a payment in cents per gallon calculated by the formula "alcohol purity in percent divided by five," and rounded to the nearest cent per gallon, but not less than 11 cents per gallon.

The producer payments for anhydrous alcohol and wet alcohol under this section may be paid to either the original producer of anhydrous alcohol or wet alcohol or the secondary processor, at the option of the original producer, but not to both.

(b) If the level of production at an ethanol plant increases due to an increase in the production capacity of the plant and the increased production begins by June 30, 2000, the payment under paragraph (a), clause (1), applies to the additional increment of production until ten years after the increased production began. Once a plant's production capacity reaches 15,000,000 gallons per year, no additional increment will qualify for the payment.

(c) The commissioner shall make payments to producers of ethanol or wet alcohol in the amount of 1.5 cents for each kilowatt hour of electricity generated using closed-loop biomass in a cogeneration facility at an ethanol plant located in the state. Payments under this paragraph shall be made only for electricity generated at cogeneration facilities that begin operation by June 30, 2000. The payments apply to electricity generated on or before the date ten years after the producer first qualifies for payment under this paragraph. Total payments under this paragraph in any fiscal year may not exceed $750,000. For the purposes of this paragraph:

(1) "closed-loop biomass" means any organic material from a plant that is planted for the purpose of being used to generate electricity or for multiple purposes that include being used to generate electricity; and

(2) "cogeneration" means the combined generation of:

(i) electrical or mechanical power; and

(ii) steam or forms of useful energy, such as heat, that are used for industrial, commercial, heating, or cooling purposes.

(d) The total payments under paragraphs (a) and (b) to all producers may not exceed $34,000,000 in a fiscal year. Total payments under paragraphs (a) and (b) to a producer in a fiscal year may not exceed $3,000,000.

(e) By the last day of October, January, April, and July, each producer shall file a claim for payment for ethanol, anhydrous alcohol, and wet alcohol production during the preceding three calendar months. A producer with more than one plant shall file a separate claim for each plant. A producer shall file a separate claim for the original production capacity of each plant and for each additional increment of production that qualifies under paragraph (b). A producer that files a claim under this subdivision shall include a statement of the producer's total ethanol, anhydrous alcohol, and wet alcohol production in Minnesota during the quarter covered by the claim, including anhydrous alcohol and wet alcohol produced or received from an outside source. A producer shall file a separate claim for any amount claimed under paragraph (c). For each claim and statement of total ethanol, anhydrous alcohol, and wet alcohol production filed under this subdivision, the volume of ethanol, anhydrous alcohol, and wet alcohol production or amounts of electricity generated using closed-loop biomass must be examined by an independent certified public accountant in accordance with standards established by the American Institute of Certified Public Accountants.

(f) Payments shall be made November 15, February 15, May 15, and August 15. A separate payment shall be made for each claim filed. The total quarterly payment to a producer under this paragraph, excluding amounts paid under paragraph (c), may not exceed $750,000. If the total amount for which all producers are eligible in a quarter under paragraphs (a) and (b) exceeds $8,500,000, the commissioner shall make payments in the order in which the portion of production capacity covered by each claim went into production. If the total amount of ethanol or wet alcohol production reported for a quarter under paragraph (e) equals or exceeds 55,000,000 gallons:

(1) payments under this subdivision do not apply to the amount produced in excess of 55,000,000 gallons;

(3) only those producers that receive payments for the quarter, or received payments under paragraph (a) or (b) in an earlier quarter, will be eligible for future ethanol or wet alcohol production payments under this subdivision to each producer by prorating the amount available for the quarter against the total production in the quarter for which all producers are eligible.

(g) If the total amount for which all producers are eligible in a quarter under paragraph (c) exceeds the amount available for payments, the commissioner shall make payments in the order in which the plants covered by the claims began generating electricity using closed-loop biomass.

(h) After July 1, 1997, new production capacity is only eligible for payment under this subdivision if the commissioner receives:

(1) an application for approval of the new production capacity;

(2) an appropriate letter of long-term financial commitment for construction of the new capacity; and

(3) copies of all necessary permits for construction of the new capacity.

The commissioner may approve the additional capacity based on the order in which the applications are received. Except as provided in paragraph (i), the commissioner shall not approve projected production capacity in excess of the limitations in paragraph (f) 61,000,000 gallons per quarter. Existing plants are not eligible for new capacity beyond planned expansions reported to the commissioner by February 1997.

(i) Notwithstanding the limits imposed in paragraph (h), the commissioner shall approve additional production capacity sufficient to allow producers located in Albert Lea, Bingham Lake, Luverne, and Preston eligibility for producer payments to the same limits as other producers under paragraphs (a) and (b).

Sec. 17. Minnesota Statutes 1996, section 84.871, is amended to read:

84.871 [MUFFLERS EQUIPMENT REQUIREMENTS.]

Subdivision 1. [MUFFLERS.] Except as provided in this section, every snowmobile shall be equipped at all times with a muffler in good working order which blends the exhaust noise into the overall snowmobile noise and is in constant operation to prevent excessive or unusual noise. The exhaust system shall not emit or produce a sharp popping or crackling sound. This section does not apply to organized races or similar competitive events held on (1) private lands, with the permission of the owner, lessee, or custodian of the land; (2) public lands and water under the jurisdiction of the commissioner of natural resources, with the commissioner's permission; or (3) other public lands, with the consent of the public agency owning the land. No person shall have for sale, sell, or offer for sale on any new snowmobile any muffler that fails to comply with the specifications required by the rules of the commissioner after the effective date of the rules.

Subd. 2. [METAL TRACTION DEVICES ON SNOWMOBILE TRACKS.] No snowmobile with a track equipped with metal traction devices may be operated on public lands, roads, or trails, or road or trail rights-of-way, except that the commissioner of natural resources may permit the use of new metal traction devices on snowmobile trails after study and testing on paved surfaces.

Sec. 18. Minnesota Statutes 1996, section 84.943, subdivision 3, is amended to read:

Sec. 19. [85.0156] [MISSISSIPPI WHITEWATER TRAIL.]

Subdivision 1. [CREATION.] An urban whitewater trail is created along the Mississippi river in the lower St. Anthony falls area below the stone arch bridge in Minneapolis. The trail must be primarily developed for whitewater rafters, canoers, and kayakers.

Subd. 2. [COMMISSIONER'S DUTIES.] (a) The commissioner of natural resources must coordinate the creation of the whitewater trail by placing designation signs near and along the river and must publicize the designation.

(b) In designating the Mississippi whitewater trail, the commissioner must work with other federal, state, and local agencies and private businesses and organizations interested in the trail.

Subd. 3. [GIFTS; DONATIONS.] The commissioner of natural resources is authorized to accept, on behalf of a nonprofit corporation, donations of land or easements in land for the whitewater trail and may seek and accept money for the trail from other public and private sources.

Sec. 20. Minnesota Statutes 1996, section 86B.313, is amended by adding a subdivision to read:

Subd. 2a. [RULES DECAL.] A personal watercraft may not be operated without a personal watercraft rules decal, issued by the commissioner, attached to the personal watercraft so as to be in full view and readable by the operator while underway.

Sec. 21. Minnesota Statutes 1996, section 86B.313, subdivision 3, is amended to read:

Subd. 3. [OPERATOR'S PERMIT PERSONAL WATERCRAFT CERTIFICATE.] (a) Except as provided in paragraphs (c) and (d), all operators of a personal watercraft, whether rented, owned, or borrowed for use, must obtain and have in possession a personal watercraft certificate. The commissioner shall issue a personal watercraft certificate to an applicant who is at least 16 years of age who:

(1) completes a personal watercraft education course approved by the commissioner;

(2) passes a test on personal watercraft as prescribed by the commissioner; and

(3) pays the required fee.

(b) The certificates must be issued by the commissioner by May 1, 2000, to operators between the ages of 16 and 25 years, and by May 1, 2001, to operators over the age of 25 years.

(c) The commissioner may recognize personal watercraft certificates or their equivalent issued by other states or countries.

(d) Except in the case of an emergency, a person 13 years of age or over but less than 18 years of age may not operate a personal watercraft, regardless of horsepower, without possessing a valid watercraft operator's permit personal watercraft certificate as required by this section 86B.305, unless there is a person 18 21 years of age or older on board the craft who possesses a personal watercraft certificate and to whom the watercraft's kill switch is attached. In addition to the permit requirement, a person 13 years of age operating a personal watercraft must maintain unaided observation by a person 18 years of age or older.

(e) It is unlawful for the owner of a personal watercraft to permit the personal watercraft to be operated contrary to this subdivision.

Sec. 22. Minnesota Statutes 1996, section 86B.313, is amended by adding a subdivision to read:

Subd. 5. [CITIZEN COMPLAINTS; NUISANCE.] (a) An owner of lakeshore in this state, or a renter or guest of a lakeshore owner, may register a complaint for appropriate action with a local law enforcement officer if any personal watercraft is operated in one specific area of a lake for more than 30 consecutive minutes.

(b) Operation of a personal watercraft in one specific area of a lake for more than 30 consecutive minutes is a public nuisance under section 609.74.

Sec. 23. Minnesota Statutes 1996, section 86B.415, is amended by adding a subdivision to read:

Subd. 7a. [PERSONAL WATERCRAFT SURCHARGE.] A $30 surcharge for every three-year period is placed on each personal watercraft license issued under this section. The fee shall be deposited in the state treasury and credited to the personal watercraft account created under section 86B.803.

Sec. 24. [86B.803] [PERSONAL WATERCRAFT ACCOUNT.]

Subdivision 1. [CREATION.] There is created in the state treasury an account known as the personal watercraft account in the natural resources fund.

Subd. 2. [PURPOSE.] The money deposited in the account and interest earned on the money may be expended only as appropriated by law for enhancing state law enforcement capabilities related to personal watercraft by hiring recreational specialists to enforce natural resources laws statewide. At least half of the recreational specialists hired must be from a protected class.

Sec. 25. Minnesota Statutes 1996, section 89A.03, subdivision 1, is amended to read:

Subdivision 1. [MEMBERSHIP.] The Minnesota forest resources council has 13 14 members appointed by the governor. Council membership must include one representative from each of the following:

(1) an organization representing environmental interests within the state;

(2) an organization representing the interests of management of game species;

(3) a conservation organization;

(4) an association representing forest products industry within the state;

(5) a commercial logging contractor active in a forest product association;

(6) a statewide association representing the resort and tourism industry;

(7) a faculty or researcher of a Minnesota research or higher educational institution;

(8) an owner of nonindustrial, private forest land of 40 acres or more;

(9) an agricultural woodlot owner;

(10) the department;

(11) a county land commissioner who is a member of the Minnesota association of county land commissioners;

(12) the United States Forest Service unit with land management responsibility in Minnesota; and

(13) a labor organization with membership having an interest in forest resource issues; and

Sec. 26. Minnesota Statutes 1996, section 90.193, is amended to read:

90.193 [EXTENSION OF TIMBER PERMITS.]

The commissioner may, in the case of an exceptional circumstance beyond the control of the timber permit holder which makes it unreasonable, impractical, and not feasible to complete cutting and removal under the permit within the time allowed, grant an extension of one year. A request for the extension must be received by the commissioner before the permit expires. The request must state the reason the extension is necessary and be signed by the permit holder. The value of the timber remaining to be cut will be recalculated using current stumpage rates. Any timber cut during the period of extension or remaining uncut at the expiration of the extension shall be billed for at the stumpage rates determined at the time of extension provided that in no event shall stumpage rates be less than those in effect at the time of the original sale. An interest rate of eight percent will may be charged for the period of extension.

Sec. 27. Minnesota Statutes 1996, section 92.46, is amended by adding a subdivision to read:

Subd. 1b. [SALE OF LEASED PROPERTY.] A lessee holding a lease under subdivision 1 on the enactment date of this subdivision may request that the leased land be sold at public sale. The lessee must submit a written request for public sale to the commissioner of natural resources by August 1, 1998. The commissioner shall mail notice of this subdivision to each leaseholder within one month of the enactment date. Notwithstanding section 92.45, the commissioner of natural resources shall sell leased land at a public sale on a date determined by the commissioner, but in no event later than February 1, 1999. Notwithstanding section 92.14, notice of sale must be published in the State Register, in a newspaper of statewide circulation, and in the daily newspaper of the region where the leased land is located.

Sec. 28. Minnesota Statutes 1996, section 93.002, subdivision 1, is amended to read:

Subdivision 1. [ESTABLISHMENT.] The mineral coordinating committee is established to plan for diversified mineral development. The mineral coordinating committee consists of the director of the minerals division of the department of natural resources, the deputy commissioner of the Minnesota pollution control agency, the director of United Steelworkers of America, district 11, or the director's designee, the director of the Minnesota geological survey, the dean of the University of Minnesota institute of technology, and the director of the natural resources research institute, and three individuals appointed by the governor for a four-year term, one each representing the iron ore and taconite, the nonferrous metallic minerals, and the industrial minerals industries within the state. The director of the minerals division of the department of natural resources shall serve as chair. A member of the committee may designate another person of the member's organization to act in the member's place. The commissioner of natural resources shall provide staff and administrative services necessary for the committee's activities.

The mineral coordinating committee is encouraged to solicit and receive advice from representatives of the United States Bureau of Mines, the United States Geological Survey, and the United States Environmental Protection Agency. Notwithstanding Minnesota Statutes 1997 Supplement, section 15.059, the minerals coordinating committee expires on June 30, 2008.

Sec. 29. Minnesota Statutes 1996, section 103F.155, subdivision 2, is amended to read:

Subd. 2. [COMMISSIONER'S REVIEW.] (a) The commissioner shall review the plan and consult with the state office of civil defense and other appropriate state and federal agencies. Following the review, the commissioner shall accept, require modification, or reject the plan.

Sec. 30. Minnesota Statutes 1996, section 103F.161, subdivision 2, is amended to read:

Subd. 2. [ACTION ON GRANT APPLICATIONS.] (a) A local government may apply to the commissioner for a grant on forms provided by the commissioner. The commissioner shall confer with the local government requesting the grant and may make a grant up to $75,000 $100,000 based on the following considerations:

(1) the extent and effectiveness of mitigation measures already implemented by the local government requesting the grant;

(2) the feasibility, practicality, and effectiveness of the proposed mitigation measures and the associated nonflood related benefits and detriments;

(3) the level of grant assistance that should be provided to the local government, based on available facts regarding the nature, extent, and severity of flood problems;

(4) the frequency of occurrence of severe flooding that has resulted in declaration of the area as a flood disaster area by the President of the United States;

(5) the economic, social, and environmental benefits and detriments of the proposed mitigation measures;

(6) whether the floodplain management ordinance or regulation adopted by the local government meets the minimum standards established by the commissioner, the degree of enforcement of the ordinance or regulation, and whether the local government is complying with the ordinance or regulation;

(7) the degree to which the grant request is consistent with local water plans developed under chapters 103B and 103D;

(8) the financial capability of the local government to solve its flood hazard problems without financial assistance; and

(9) the estimated cost and method of financing of the proposed mitigation measures based on local money and federal and state financial assistance.

(b) If the amount of the grant requested is $75,000 $200,000 or more, the commissioner shall determine, under the considerations in paragraph (a), whether any part of the grant should be awarded. The commissioner must submit an appropriation request to the governor and the legislature for funding consideration before each odd-numbered year, consisting of requests or parts of grant requests of $75,000 $100,000 or more. The commissioner must prioritize the grant requests, under the considerations in paragraph (a), beginning with the projects the commissioner determines most deserving of financing.

(c) A grant may not exceed one-half the total cost of the proposed mitigation measures.

(d) After July 1, 1991, grants made under this section may be made to local governments whose grant requests are part of, or responsive to, a comprehensive local water plan prepared under chapter 103B or 103D.

Sec. 31. Minnesota Statutes 1996, section 103G.271, subdivision 6, is amended to read:

Subd. 6. [WATER USE PERMIT PROCESSING FEE.] (a) Except as described in paragraphs (b) to (f), a water use permit processing fee must be prescribed by the commissioner in accordance with the following schedule of fees for each water use permit in force at any time during the year:

(1) 0.05 cents per 1,000 gallons for the first 50,000,000 gallons per year;

(2) 0.10 cents per 1,000 gallons for amounts greater than 50,000,000 gallons but less than 100,000,000 gallons per year;

(4) 0.20 cents per 1,000 gallons for amounts greater than 150,000,000 gallons but less than 200,000,000 gallons per year;

(5) 0.25 cents per 1,000 gallons for amounts greater than 200,000,000 gallons but less than 250,000,000 gallons per year;

(6) 0.30 cents per 1,000 gallons for amounts greater than 250,000,000 gallons but less than 300,000,000 gallons per year;

(7) 0.35 cents per 1,000 gallons for amounts greater than 300,000,000 gallons but less than 350,000,000 gallons per year;

(8) 0.40 cents per 1,000 gallons for amounts greater than 350,000,000 gallons but less than 400,000,000 gallons per year; and

(9) 0.45 cents per 1,000 gallons for amounts greater than 400,000,000 gallons per year.

(b) For once-through cooling systems, a water use processing fee must be prescribed by the commissioner in accordance with the following schedule of fees for each water use permit in force at any time during the year:

(1) for nonprofit corporations and school districts:

(i) 5.0 cents per 1,000 gallons until December 31, 1991;

(ii) 10.0 cents per 1,000 gallons from January 1, 1992, until December 31, 1996; and

(iii) 15.0 cents per 1,000 gallons after January 1, 1997; and

(2) for all other users, 20 cents per 1,000 gallons.

(c) The fee is payable based on the amount of water appropriated during the year and, except as provided in paragraph (f), the minimum fee is $50.

(d) For water use processing fees other than once-through cooling systems:

(1) the fee for a city of the first class may not exceed $175,000 per year;

(2) the fee for other entities for any permitted use may not exceed:

(i) $35,000 per year for an entity holding three or fewer permits;

(ii) $50,000 per year for an entity holding four or five permits;

(iii) $175,000 per year for an entity holding more than five permits;

(3) the fee for agricultural irrigation may not exceed $750 per year; and

(4) the fee for a municipality that furnishes electric service and cogenerates steam for home heating may not exceed $10,000 for its permit for water use related to the cogeneration of electricity and steam; and

(5) no fee is required for a project involving the appropriation of surface water to prevent flood damage or to remove flood waters during a period of flooding, as determined by the commissioner.

(f) The minimum water use processing fee for a permit issued for irrigation of agricultural land is $10 for years in which:

(1) there is no appropriation of water under the permit; or

(2) the permit is suspended for more than seven consecutive days between May 1 and October 1.

(g) For once-through systems fees payable after July 1, 1993, 75 percent of the fees must be credited to a special account and are appropriated to the Minnesota public facilities authority for loans under section 446A.21.

Sec. 32. Minnesota Statutes 1997 Supplement, section 115.55, subdivision 5a, is amended to read:

Subd. 5a. [INSPECTION CRITERIA FOR EXISTING SYSTEMS.] (a) An inspection of an existing system must evaluate the criteria in paragraphs (b) to (h).

(b) If the inspector finds one or more of the following conditions:

(1) sewage discharge to surface water;

(2) sewage discharge to ground surface;

(3) sewage backup; or

(4) a cesspool; or

(5) any other situation with the potential to immediately and adversely affect or threaten public health or safety,

then the system constitutes an imminent threat to public health or safety and, if not repaired, must be upgraded, replaced, or its use discontinued within ten months of receipt of the notice described in subdivision 5b, or within a shorter period of time if required by local ordinance.

(c) An existing system that has none of the conditions in paragraph (b), and has at least two feet of soil separation need not be upgraded, repaired, replaced, or its use discontinued, notwithstanding any local ordinance that is more restrictive.

(d) Paragraph (c) does not apply to systems in shoreland areas regulated under sections 103F.201 to 103F.221, wellhead protection areas as defined in section 103I.005, or those used in connection with food, beverage, and lodging establishments regulated under chapter 157.

(e) If the local unit of government with jurisdiction over the system has adopted an ordinance containing local standards pursuant to subdivision 7, the existing system must comply with the ordinance. If the system does not comply with the ordinance, it must be upgraded, replaced, or its use discontinued according to the ordinance.

(f) If a seepage pit, drywell, cesspool, or leaching pit exists and the local unit of government with jurisdiction over the system has not adopted local standards to the contrary, the system is failing and must be upgraded, replaced, or its use discontinued within the time required by subdivision 3 or local ordinance.

(g) If the system fails to provide sufficient groundwater protection, then the local unit of government or its agent shall order that the system be upgraded, replaced, or its use discontinued within the time required by rule or the local ordinance.

Sec. 33. Minnesota Statutes 1996, section 116.011, is amended to read:

116.011 [ANNUAL POLLUTION REPORT.]

A goal of the pollution control agency is to reduce the amount of pollution that is emitted in the state. The pollution control agency shall include in its annual performance report information detailing the best estimate of the agency of the total volume of water and air pollution that was emitted in the state in the previous calendar year. The agency shall report its findings for both water and air pollution:

(1) in gross amounts, including the percentage increase or decrease over the previous calendar year; and

(2) in a manner which will demonstrate the magnitude of the various sources of water and air pollution; and

(3) in an annual record of all pollution emissions exceeding permit levels for each emission facility, including what enforcement action was taken by the agency.

The annual performance report must be given to the legislature and made available to the public.

Sec. 34. Minnesota Statutes 1997 Supplement, section 116.07, subdivision 7, is amended to read:

Subd. 7. [COUNTIES; PROCESSING OF APPLICATIONS FOR ANIMAL LOT PERMITS.] Any Minnesota county board may, by resolution, with approval of the pollution control agency, assume responsibility for processing applications for permits required by the pollution control agency under this section for livestock feedlots, poultry lots or other animal lots. The responsibility for permit application processing, if assumed by a county, may be delegated by the county board to any appropriate county officer or employee.

(a) For the purposes of this subdivision, the term "processing" includes:

(1) the distribution to applicants of forms provided by the pollution control agency;

(2) the receipt and examination of completed application forms, and the certification, in writing, to the pollution control agency either that the animal lot facility for which a permit is sought by an applicant will comply with applicable rules and standards, or, if the facility will not comply, the respects in which a variance would be required for the issuance of a permit; and

(3) rendering to applicants, upon request, assistance necessary for the proper completion of an application.

(b) For the purposes of this subdivision, the term "processing" may include, at the option of the county board, issuing, denying, modifying, imposing conditions upon, or revoking permits pursuant to the provisions of this section or rules promulgated pursuant to it, subject to review, suspension, and reversal by the pollution control agency. The pollution control agency shall, after written notification, have 15 days to review, suspend, modify, or reverse the issuance of the permit. After this period, the action of the county board is final, subject to appeal as provided in chapter 14.

(c) For the purpose of administration of rules adopted under this subdivision, the commissioner and the agency may provide exceptions for cases where the owner of a feedlot has specific written plans to close the feedlot within five years. These exceptions include waiving requirements for major capital improvements.

(d) For purposes of this subdivision, a discharge caused by an extraordinary natural event such as a precipitation event of greater magnitude than the 25-year, 24-hour event, tornado, or flood in excess of the 100-year flood is not a "direct discharge of pollutants."

(f) The pollution control agency shall work with the Minnesota extension service, the department of agriculture, the board of water and soil resources, producer groups, local units of government, as well as with appropriate federal agencies such as the Soil Conservation Service and the Agricultural Stabilization and Conservation Service, to notify and educate producers of rules under this subdivision at the time the rules are being developed and adopted and at least every two years thereafter.

(g) The pollution control agency shall adopt rules governing the issuance and denial of permits for livestock feedlots, poultry lots or other animal lots pursuant to this section. A feedlot permit is not required for livestock feedlots with more than ten but less than 50 animal units; provided they are not in shoreland areas. These rules apply both to permits issued by counties and to permits issued by the pollution control agency directly.

(h) The pollution control agency shall exercise supervising authority with respect to the processing of animal lot permit applications by a county.

(i) After May 17, 1997, any new rules or amendments to existing rules proposed under the authority granted in this subdivision, must be submitted to the members of legislative policy committees with jurisdiction over agriculture and the environment prior to final adoption. The rules must not become effective until 90 days after the proposed rules are submitted to the members.

(j) The attorney general shall provide legal assistance to counties that elect to adopt, review, or modify ordinances relating to animal feedlots.

(k) A county may adopt by ordinance standards for animal feedlots that are more stringent than standards in pollution control agency rules.

Sec. 35. Minnesota Statutes 1996, section 116.07, is amended by adding a subdivision to read:

Subd. 7b. [PERMIT REQUIREMENTS.] (a) Neither the pollution control agency nor a county board may issue a permit to construct or expand a feedlot if:

(1) the feedlot would operate with a clay, earthen, or flexible membrane lined animal waste lagoon; or

(2) the feedlot has a design capacity of over 1,000 animal units, unless the permit issued is an Individual National Pollutant Discharge Elimination System (NPDES) permit as required under the federal Clean Water Act.

(b) Paragraph (a) does not prohibit the issuance of a permit for the construction of a clay, earthen, or flexible membrane lined animal waste lagoon if the feedlot has a design capacity of 750 animal units or less and is part of the animal waste management facility for a dairy or beef cattle operation. The animal unit capacity under this paragraph must be calculated with regard only to the population of mature bovine animals and must disregard animals that are (1) steers or slaughter heifers under the weight of 800 pounds, or (2) replacement dairy stock.

(c) Existing animal feedlots having a design capacity of 1,000 animal units or more must be brought into compliance with the requirement for a General National Pollutant Discharge Elimination System (NPDES) permit as required under the federal Clean Water Act.

Sec. 36. [116.0711] [ANIMAL WASTE LIABILITY ACCOUNT; SURCHARGE.]

Subdivision 1. [ESTABLISHMENT OF ACCOUNT.] An animal waste liability account is established in the environmental fund. Money in the account is appropriated to the commissioner for containment and cleanup of animal wastes.

Sec. 37. [116.0712] [ANIMAL WASTE CONTROL AND SPILL INVENTORY AND REPORTING; CONTINGENCY PLAN.]

The pollution control agency, in cooperation with the commissioner of agriculture and county officials, shall investigate the problems of proper control of animal wastes generated by animal feedlots and conduct an inventory of animal waste facilities and storage sites and the needs relative to the management, transportation, and application of animal wastes and shall develop an informational reporting system of animal waste quantities generated, applied, and disposed of in the state. The agency shall also develop a statewide animal waste contingency plan including containment, closure, and cleanup measures.

Sec. 38. [116.0713] [DENIAL OF PERMIT APPLICATIONS.]

(a) The commissioner may reject an application for a permit filed with the commissioner upon making a specific finding that:

(1) the applicant is unsuited or unqualified to perform the obligations of a permit holder based upon a finding that the applicant or any officer, director, partner, or resident general manager of the facility for which application has been made:

(i) has misrepresented a material fact in applying for a permit;

(ii) has violated environmental laws of any state or the United States in a manner that has caused significant and material environmental damage;

(iii) has had any permit revoked under the environmental laws of any state or the United States; or

(iv) has otherwise demonstrated through previous actions that the applicant lacks competency to reliably carry out the obligations imposed by law upon the permit holder; or

(2) the application substantially duplicates an application by the same applicant denied within the past five years, which denial has not been reversed by a court of competent jurisdiction. Nothing in this section prohibits an applicant from submitting a new application for a permit previously denied if the new application represents a good faith attempt by the applicant to correct the deficiencies that served as the basis for the denial in the original application.

(b) All applications filed with the commissioner must include a certification, sworn to under oath and signed by the applicant, that the applicant is not disqualified by reason of this section from obtaining a permit. In the absence of evidence to the contrary, that certification constitutes a prima facie showing of the suitability and qualification of the applicant. If at any point in the application review, recommendation, or hearing process, the commissioner finds the applicant has made any material misrepresentation of fact in regard to this certification, consideration of the application may be suspended and the application may be rejected under this section.

(c) Rejection of an application under this section constitutes final agency action upon that application and may be appealed to a district court as provided for in statute.

Sec. 39. Minnesota Statutes 1997 Supplement, section 116.18, subdivision 3c, is amended to read:

Subd. 3c. [INDIVIDUAL ON-SITE TREATMENT SYSTEMS PROGRAM.] (a) Beginning in fiscal year 1989, up to ten percent of the money to be awarded as grants under subdivision 3a in any single fiscal year, up to a maximum of $1,000,000, may be set aside for the award of grants by the agency to municipalities to reimburse owners of individual on-site wastewater treatment systems for a part of the costs of upgrading or replacing the systems.

(c) Municipalities may apply yearly for grants of up to 50 percent of the cost of replacing or upgrading individual on-site treatment systems within their jurisdiction, up to a limit of $5,000 per system or per connection to a cluster system. Before agency approval of the grant application, a municipality must certify that:

(1) it has adopted and is enforcing the requirements of Minnesota Rules governing individual sewage treatment systems;

(2) the existing systems for which application is made do not conform to those rules, are at least 20 years old, do not serve seasonal residences, and were not constructed with state or federal funds; and

(3) the costs requested do not include administrative costs, costs for improvements or replacements made before the application is submitted to the agency unless it pertains to the plan finally adopted, and planning and engineering costs other than those for the individual site evaluations and system design.

(d) The federal and state regulations regarding the award of state and federal wastewater treatment grants do not apply to municipalities or systems funded under this subdivision, except as provided in this subdivision.

(e) The agency shall adopt permanent rules regarding priorities, distribution of funds, payments, inspections, procedures for administration of the agency's duties, and other matters that the agency finds necessary for proper administration of grants awarded under this subdivision.

Sec. 40. Minnesota Statutes 1996, section 308A.131, subdivision 1, is amended to read:

Subdivision 1. [CONTENTS.] (a) The incorporators shall prepare the articles, which must include:

(1) the name of the cooperative;

(2) the purpose of the cooperative;

(3) the principal place of business for the cooperative;

(4) the period of duration for the cooperative, if the duration is not to be perpetual;

(5) the total authorized number of shares and the par value of each share if the cooperative is organized on a capital stock basis;

(6) a description of the classes of shares, if the shares are to be classified;

(7) a statement of the number of shares in each class and relative rights, preferences, and restrictions granted to or imposed upon the shares of each class, and a provision that only common stockholders have voting power;

(8) a statement that individuals owning common stock shall be restricted to one vote in the affairs of the cooperative or a statement that the cooperative is one described in section 308A.641, subdivision 2;

(9) a statement that shares of stock are transferable only with the approval of the board;

(10) a statement that dividends on the capital stock and nonstock units of equity of the cooperative may not exceed eight percent annually;

(11) the names, post office addresses, and terms of office of the directors of the first board;

(12) a statement that net income in excess of dividends and additions to reserves shall be distributed on the basis of patronage, and that the records of the cooperative may show the interest of patrons, stockholders of any classes, and members in the reserves; and

(b) The articles must always contain the provisions in paragraph (a), except that the names, post office addresses, and terms of offices of the directors of the first board may be omitted after their successors have been elected by the members or the articles are amended in their entirety.

(c) The articles may contain other lawful provisions.

(d) The articles must be signed by the incorporators.

Sec. 41. Minnesota Statutes 1997 Supplement, section 308A.705, subdivision 1, is amended to read:

Subdivision 1. [DISTRIBUTION OF NET INCOME.] Net income in excess of dividends on capital stock, nonstock units of equity, and additions to reserves shall be distributed on the basis of patronage. A cooperative may establish allocation units, whether the units are functional, divisional, departmental, geographic, or otherwise, and pooling arrangements and may account for and distribute net income on the basis of allocation units and pooling arrangements. A cooperative may offset the net loss of an allocation unit or pooling arrangement against the net income of other allocation units or pooling arrangements to the extent permitted by section 1388(j) of the Internal Revenue Code of 1986, as amended through December 31, 1996.

Sec. 42. Minnesota Statutes 1996, section 308A.705, subdivision 3, is amended to read:

Subd. 3. [DIVIDENDS.] Dividends may be paid on capital stock and nonstock units of equity only if the net income of the cooperative for the previous fiscal year is sufficient. The dividends are not cumulative.

Sec. 43. [AGGREGATE RESOURCES TASK FORCE.]

Subdivision 1. [CREATION; MEMBERSHIP.] (a) An aggregate resources task force consists of 12 members appointed as follows:

(1) the subcommittee on subcommittees of the senate committee on rules and administration shall appoint one citizen member with experience in the state's aggregates industry, one citizen member who is an employee of a local government unit that works with environmental and land use impacts from aggregate mining, and four members of the senate, two of whom must be members of the minority caucus; and

(2) the speaker of the house shall appoint one citizen member who is an employee of a local governmental unit that works with environmental and land use impacts from aggregate mining, one citizen member with experience in native prairie conservation, and four members of the house, two of whom must be members of the minority caucus.

(b) The appointing authorities must make their respective appointments not later than July 1, 1998.

(c) The first meeting of the task force must be convened by a person designated by the chair of the senate committee on rules and administration. Task force members shall then elect a permanent chair from among the task force members.

Subd. 2. [DUTIES.] The task force shall examine current and projected issues concerning the need for and use of the state's aggregate resources. The task force shall seek input from the aggregate industry, state agencies, counties, local units of government, environmental organizations, and other interested parties on aggregate resource issues, including resource inventory, resource depletion, mining practices, nuisance problems, safety, competing land uses and land use planning, native prairie conservation, environmental review, local permit requirements, reclamation, recycling, transportation of aggregates, and the aggregate material tax.

Subd. 3. [REPORT.] Not later than February 1, 2000, the task force shall report to the legislature on the findings of its study. The report must include a recommendation as to whether there is a need for a comprehensive statewide policy on any aggregate resource issue. If the task force recommends a statewide policy, the report must include recommendations on the framework for the statewide policy.

Sec. 44. [PROPOSED REVISED STANDARDS FOR HYDROGEN SULFIDE EXPOSURE.]

Not later than June 30, 2000, the commissioner of the pollution control agency, in consultation with the commissioners of health and agriculture, shall propose revised standards for hydrogen sulfide exposure levels within livestock confinement facilities having a design capacity of 500 animal units or more and at various distances up to 5,000 feet from animal waste storage facilities. The commissioner shall report the proposed revised standards to the legislature not later than September 1, 2000.

Sec. 45. [LIMITS ON FEEDLOT PERMITS.]

(a) Neither the pollution control agency nor a county may issue a permit to construct or expand an animal feedlot having a design capacity exceeding 750 animal units.

(b) If the feedlot is for beef cattle, the animal unit capacity under this section must be calculated with regard only to the population of beef cattle weighing 800 pounds or more.

(c) If the feedlot is for dairy cattle, the animal unit capacity must be calculated with regard only to the population of mature dairy stock, and must disregard replacement dairy stock.

(d) If the feedlot is for breeding and farrowing swine, the animal unit capacity must be calculated with regard only to animals weighing 40 pounds or more.

Sec. 46. [COUNTIES AND TOWNS TO REPORT.]

(a) Not later than August 1, 1998, each county and each town that has adopted ordinances related to animal feedlots shall supply copies of the ordinances to the commissioner of agriculture. A county or town that adopts a new or amended ordinance related to animal feedlots shall report the new or amended ordinance to the commissioner within 60 days after the adoption.

(b) The reporting requirements of paragraph (a) expire after June 30, 2001.

Sec. 47. [LEGISLATIVE AUDITOR TO CONDUCT PROGRAM AUDIT.]

Not later than April 1, 1999, the legislative auditor may complete and report to the legislature on a program audit of pollution control agency policies, procedures, and activities related to animal feedlots as defined in Minnesota Rules, part 7020.0300, subpart 3. The audit must consider, among other issues, pollution control agency activities concerning:

(1) monitoring of odors and hydrogen sulfide levels at various directions and distances from animal feedlot manure lagoons;

(2) issuance of national pollutant discharge elimination system (NPDES) permits as that duty is delegated under the federal Clean Water Act; and

(3) oversight of feedlot rule enforcement in counties which have elected to manage and enforce animal feedlot permitting authority.

Sec. 48. [LOON STUDY.]

Sec. 49. [BENTON COUNTY APPROPRIATIONS.]

The $85,000 appropriated for a grant to Benton county in Laws 1997, chapter 216, section 2, subdivision 5, and any future money appropriated to Benton county for payment of costs of a final order or settlement of a lawsuit for environmental response costs at a mixed municipal solid waste facility must be apportioned among the local units of government that were parties to the final order or settlement in the same proportion that the local units of government agreed to as their share of the liability.

Sec. 50. [LOAN WORK PLAN.]

The loan awarded by the director of the office of environmental assistance to United Recycling, Inc. under Minnesota Statutes, section 115A.48, subdivision 5, and Minnesota Rules, chapter 9210, is converted into a grant under Minnesota Statutes, section 115A.0716, subdivision 1. The director shall disburse funds to United Recycling, Inc., provided that the director has received a new project workplan that includes performance goals for carpet recovery and recycling, and demonstrates matching capital expenditures by the recipient of an amount equal to or greater than the amount of the grant award.

Sec. 51. [WATER QUALITY COST-BENEFIT MODEL SCOPING TASK FORCE.]

The commissioner of the pollution control agency shall convene a task force comprising of no more than three representatives each from industry, municipalities, watershed management groups, labor, agriculture, and environmental groups within 30 days of the effective date of this section. The task force shall select an entity to conduct a scoping study for a cost-benefit model to analyze water quality standards. The scoping study shall include: a watershed-based approach that evaluates both point and nonpoint pollution sources, the extent of the costs and benefits to be evaluated, the necessary elements of the model, a model that is transferable to other watersheds and standards, and the characteristics of the watersheds and standards to be evaluated. By October 15, 1998, the task force shall review the completed scoping study and make recommendations on the scope, cost, and time frame for development of the model to the commissioner and to the chairs of the house and senate environment and natural resources committees, the chair of the house environment, natural resources, and agriculture finance committee, and the chair of the senate environment and agriculture budget division.

Sec. 52. [EFFECTIVE DATES.]

Effective April 1, 1998, the commissioner of natural resources may begin development of educational materials, administrative and testing procedures, and a records program to implement the personal watercraft certificate program under section 21. Sections 20, 23, and 24 are effective January 1, 1999. Section 21 is effective May 1, 2001. The remainder of this act is effective the day following final enactment."

Delete the title and insert:

"A bill for an act relating to the organization and operation of state government; appropriating money for environmental, natural resource, and agricultural purposes; providing for regulation of certain activities and practices; amending Minnesota Statutes 1996, sections 35.82, subdivision 2; 41A.09, subdivision 1a; 84.871; 84.943, subdivision 3; 86B.313, subdivision 3, and by adding subdivisions; 86B.415, by adding a subdivision; 89A.03, subdivision 1; 90.193; 92.46, by adding a subdivision; 93.002, subdivision 1; 103F.155, subdivision 2; 103F.161, subdivision 2; 103G.271, subdivision 6; 116.011; 116.07, by adding a subdivision; 308A.131, subdivision 1; and 308A.705, subdivision 3; Minnesota Statutes 1997 Supplement, sections 41A.09, subdivision 3a; 115.55, subdivision 5a; 116.07, subdivision 7; 116.18, subdivision 3c; and 308A.705, subdivision 1; proposing coding for new law in Minnesota Statutes, chapters 17; 85; 86B; and 116; proposing coding for new law as Minnesota Statutes, chapter 18G."

With the recommendation that when so amended the bill pass.

Solberg from the Committee on Ways and Means to which was referred:

S. F. No. 3367, A bill for an act relating to economic development; appropriating money for housing, economic development, and related purposes; establishing pilot projects; providing for a municipal reimbursement; modifying certain loan criteria; requiring studies; establishing a revolving loan fund; requiring the commissioner of labor and industry to provide a brochure; regulating housing; uniform acts; unclaimed property; enacting the Uniform Unclaimed Property Act of 1995; making conforming changes; providing for the Minnesota family assets for independence initiative; amending Minnesota Statutes 1996, sections 16A.45, subdivisions 1 and 4; 80C.03; 116J.415, subdivision 5; 198.231; 276.19, subdivision 4; 308A.711, subdivisions 1 and 2; 356.65, subdivision 2; 462A.222, subdivision 3; 474A.061, subdivision 2a; and 624.68; Minnesota Statutes 1997 Supplement, sections 16A.6701, subdivision 1; 116J.421, subdivision 1, and by adding a subdivision; and 462A.05, subdivision 39; proposing coding for new law in Minnesota Statutes, chapters 116J; 181; 345; and 471; proposing coding for new law as Minnesota Statutes, chapter 119C; repealing Minnesota Statutes 1996, sections 345.31; 345.32; 345.33; 345.34; 345.35; 345.36; 345.37; 345.38; 345.381; 345.39; 345.40; 345.41; 345.42; 345.43; 345.44; 345.45; 345.46; 345.47; 345.485; 345.49; 345.50; 345.51; 345.515; 345.52; 345.525; 345.53; 345.54; 345.55; 345.56; 345.57; 345.58; 345.59; and 345.60; Minnesota Statutes 1997 Supplement, section 345.48.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

Section 1. [ECONOMIC DEVELOPMENT APPROPRIATIONS.]

The sums in the columns marked "APPROPRIATIONS" are appropriated from the general fund, or another named fund, to the agencies and for the purposes specified in this article, to be available for the fiscal years indicated for each purpose. The figures "1998" and "1999," where used in this act, mean that the appropriation or appropriations listed under them are available for the year ending June 30, 1998, or June 30, 1999, respectively. The term "first year" means the fiscal year ending June 30, 1998, and "second year" means the fiscal year ending June 30, 1999.

1998 1999

General $ 983,000$14,840,000

General Fund Revenue (204,000) (319,000)

Workers' Compensation Fund 50,000 (50,000)

Special Revenue Fund -0- 200,000

TOTAL $ 829,000$14,671,000

APPROPRIATIONS

Available for the Year

Ending June 30

1998 1999

Sec. 2. DEPARTMENT OF TRADE AND ECONOMIC

(a) Mining Grants

$300,000 is appropriated in 1999 for the taconite mining grant program under Minnesota Statutes, section 116J.992. This is a one-time appropriation and is not added to the department's permanent budget base.

(b) Circulator Vehicle Pilot Project

$220,000 in 1999 is for the purposes of the circulator vehicle pilot project under section 62. This is a one-time appropriation and is not added to the department's permanent budget base.

(c) Kiosks for Circulator Vehicle Pilot Project

$65,000 in 1999 is for the kiosks for the circulator vehicle pilot project under section 62. This is a one-time appropriation and is not added to the department's permanent budget base.

(d) Millennium Screen Writing Festival

$100,000 is appropriated in 1999 for planning for the millennium screen writing festival, and to enhance the film making industry in Minnesota by providing grants to local screenwriters. Of this amount, $50,000 is a one-time appropriation and is not added to the department's budget base, and $50,000 is added to the department's budget base.

(e) Minnesota Film Board

$5,000,000 is appropriated in 1999 for transfer to the revolving loan fund under Minnesota Statutes, section 116J.545. Of this appropriation, the film board may use up to $100,000 each year for administration of the loan fund. This is a one-time appropriation and is not added to the department's permanent budget base. Of this amount, $50,000 is for a grant to the Mississippi River Parkway Commission of Minnesota for the state's share of the Smithsonian's River of Song project.

(f) Tourism Advertising and Marketing

(g) Duluth Technology Center

$200,000 is appropriated in 1999 for a grant to the Duluth Technology Center to continue development of software business opportunities with particular attention to encouraging location of foreign software companies in northeastern Minnesota. This is a one-time appropriation and is not added to the department's permanent budget base.

(h) Chatfield Brass Band Music Lending Library

$60,000 is appropriated in 1999 for a grant to the Chatfield brass band music lending library. The money must be used for computer hardware and software to catalog the music collection and create a Web site. This is a one-time appropriation and must not be added to the agency's permanent budget base.

(i) Neighborhood Development Center, Inc.

$90,000 is appropriated in 1999 for the purpose of making a grant to the Neighborhood Development Center, Inc. The center shall use the grant for the purpose of expanding and improving its neighborhood and ethnic-based entrepreneur training, lending, and support programs in the poorest communities of Minneapolis and St. Paul. This appropriation is added to the department's budget base.

(j) Public Arts St. Paul

$50,000 is appropriated in 1999 for a grant to Public Arts Saint Paul for planning for public art projects throughout the city of St. Paul. This is a one-time appropriation and is not added to the department's permanent budget base.

(k) City of St. Paul

$350,000 is appropriated in 1999 for a grant to the city of St. Paul. Of this amount, $250,000 is for the completion of renovations to the University of Minnesota Centennial Showboat to be docked at Harriet Island. Of this amount, $100,000 is for a study on the relocation and expansion of the St. Paul Farmers' Market at a site that will interact with the Concord Street business area. The study will consider growth needs, job development opportunities, and the creation of a state-approved commercial kitchen. This is a one-time appropriation and is not added to the department's budget base.

(l) Mississippi River Parkway Commission

(m) Biomass Energy Generation

$50,000 is appropriated in 1999 to conduct financial analyses and project due diligence exercises in cooperation with private financial institutions and the United States Department of Agriculture for the purpose of assembling a debt financing package for a 75 megawatt electric energy generation project using farm-grown closed loop biomass. This is a one-time appropriation and is not added to the department's budget base.

(n) Fairmont Opera House

$200,000 is appropriated in 1999 for accessibility improvements for the Fairmont Opera House. This is a one-time appropriation and is not added to the department's budget base.

(o) Heritage Breed Chickens

$25,000 is appropriated in 1999 for grants to county fairs to provide premiums and prizes for heritage breeds of chickens. This appropriation may also be used to provide participating 4H and other youth groups up to 25 free nursery hatchlings. This is a one-time appropriation and is not added to the department's budget base.

Sec. 3. MINNESOTA TECHNOLOGY, INC. -0- 100,000

$100,000 is appropriated in 1999 for transfer to the Minnesota Technology, Inc. fund for a grant to Minnesota Project Innovation, Inc. to fund Business Information and Technology Centers, with one located at Metro State University and one outside the Twin Cities metropolitan area. This is a one-time appropriation and is not added to the agency's budget base.

Sec. 4. MINNESOTA WORLD TRADE CENTER CORPORATION 155,000 -0-

$155,000 is appropriated in 1998 for full and final payments of the remaining 1988 debt of the Minnesota World Trade Center Corporation which was incurred for conference center furniture, fixtures, and equipment. This appropriation is available immediately. This is a one-time appropriation and is not added to the department's permanent budget base.

Sec. 5. DEPARTMENT OF ECONOMIC SECURITY 450,000 4,509,000

(a) Youthbuild

subpart 1. The appropriation is in addition to the appropriation made by Laws 1997, chapter 200, article 1, section 5, subdivision 4, and is added to the department's budget base. The appropriation is available until June 30, 1999.

(b) Youth Intervention Programs

$250,000 is appropriated in 1998 for grants to fund 50 youth intervention programs under Minnesota Statutes, section 268.30, and is in addition to the appropriation made by Laws 1997, chapter 200, article 1, section 5, subdivision 4, and is added to the department's budget base. It is available until June 30, 1999.

(c) Centers for Independent Living

$523,000 in 1999 is for centers for independent living. This appropriation is to partially achieve the recommended minimum funding level of $500,000 per center and is in addition to the appropriation provided in Laws 1997, chapter 200, article 1, section 5, subdivision 2. This appropriation is added to the department's budget base. The department shall allocate this appropriation among the centers equally, and shall not consider what federal funds may be available to a center in determining the allocations.

(d) Alien Labor Certification

$160,000 is appropriated in 1999 to administer the alien labor certification program. This is a one-time appropriation and is not added to the department's permanent budget base.

(e) State Services for the Blind

$1,400,000 is appropriated in 1999 to the State Services for the Blind to update radio talking book receivers and create a digital infrastructure for the communication center. This is a one-time appropriation and must be matched dollar for dollar by a private nonprofit organization for the same purpose. This appropriation is available until June 30, 2000.

(f) Regional Job Market Analysis

$200,000 is appropriated in 1999 to retain the services of regional job market analysts. This appropriation is added to the department's budget base.

(g) Vocational Rehabilitation

(h) Nontraditional Careers for Women

$250,000 is appropriated in 1999, and is added to the department's budget base, for grants to organizations for programs that encourage and assist women to enter nontraditional careers in the trades and in manual and technical occupations. To be eligible for a grant under this section, a program must include: (1) outreach to girls and women through public and private elementary, junior high and high schools, appropriate community organizations, or existing state and county employment and training programs. The outreach will consist of general information concerning opportunities for women in the trades, manual, and technical occupations, including specific fields where worker shortages exist; and specific information about training programs offered. The outreach may include printed or recorded information, presentations to women and girls, hands-on experiences for girls, or ongoing contact with appropriate staff and volunteers; or (2) assistance for women to enter careers in the trades, technical, and manual occupations as follows: (a) training designed to prepare women to succeed in nontraditional occupations, conducted by the grantee or in collaboration with another institution. The training shall cover the knowledge and skills required for the trade, information about on-the-job realities for women in the particular trade, physical strength and stamina training as needed to increase women's eligibility for jobs that require physical strength, opportunities for developing workplace problem solving skills, and information about the current and projected future job market and likely career paths; (b) assistance with child care and transportation during training, job search, and the first two months of employment for low-income women who do not have other coverage for these expenses; (c) job placement assistance during and for at least two years after completion of the training program; and (d) job retention support. This may take the form of mentorship programs, support groups, or ongoing staff contact for at least the first year of placement in a job after completion of training, and should include access to job-related information, assistance with workplace issues resolution, and access to advocacy.

Programs must be accessible to MFIP-S participants and other low-income women. Factors that contribute to accessibility include: (1) affordability or financial aid available for tuition and supplies; (2) geographic proximity to low-income neighborhoods, child care, and transportation routes; and (3) flexibility of hours per week and weeks of duration of training programs to be compatible with family needs and the need for employment during training. All state-funded employment and training programs must include information about opportunities for women in nontraditional careers in the trades, manual, and technical occupations.

(i) Summer Youth Employment

(j) Work Force Centers Pilot Project

$250,000 is appropriated in 1999 to develop a pilot project that will electronically link four department workforce centers with four secondary schools for the purpose of providing secondary students and school counselors with labor market information and job-seeking skills expertise to assist transition from school to work. The commissioner shall employ four people to implement this project. The commissioner shall report on the progress of the pilot project to the legislature by May 1, 1999. The commissioner shall make a final report on the pilot projects to the legislature by March 1, 2000. This is a one-time appropriation and must not be added to the agency's permanent budget base.

(k) Advocating Change Together, Inc.

$126,000 is appropriated in 1999 for a grant to Advocating Change Together, Inc. (ACT). The grant must be used for the training and empowerment of individuals with developmental and other mental health disabilities, the maintenance of related data, or technical assistance for work advancement or additional workforce training. This is a one-time appropriation and is not added to the department's permanent budget base.

Sec. 6. DEPARTMENT OF COMMERCE -0- 222,000

General -0- 22,000

Special Revenue Fund -0- 200,000

$22,000 is appropriated in 1999 from the general fund for implementation of the mortgage originator and servicer regulation program established in House File No. 2983, if enacted. This is added to the department's budget base.

$200,000 is appropriated from the contractor's recovery account in the special revenue fund under Minnesota Statutes 1996, section 326.975, subdivision 1, to provide information to consumers on residential construction issues and is added to the department's budget base.

Sec. 7. LABOR AND INDUSTRY -0- 100,000

Sec. 8. PUBLIC UTILITIES COMMISSION 204,000 189,000

This appropriation is for costs associated with the regulation of utilities.

Sec. 9. DEPARTMENT OF PUBLIC SERVICE -0- 130,000

This appropriation is for planning and analysis of the regulation of the electrical industry.

Sec. 10. MINNESOTA HISTORICAL SOCIETY 124,000 925,000

(a) Salary Increases

$124,000 is appropriated in 1998 and $450,000 is appropriated in 1999 for salary increases. The fiscal year 1998 appropriation is available immediately. This appropriation is added to the historical society's budget base.

(b) Lake Superior and Mississippi Railroad

$100,000 is appropriated in 1999 for a grant to the Lake Superior and Mississippi railroad, a 501(c)(3) organization, for the purchase and installation of railroad ties. This is a one-time appropriation and is not added to the department's permanent budget base.

(c) Hmong Archives

$100,000 is appropriated in 1999 for start-up costs for the Hmong history and culture archival project. The society may make grants to nonprofit organizations for planning, training, and purchase of supplies and equipment. Of this amount, $75,000 is added to the society's budget base.

(d) Fridley Historical Museum

$50,000 is appropriated in 1999 to refurbish the Fridley historical museum in Fridley. This is a one-time appropriation and is not added to the department's permanent budget base.

(e) Winona County Historical Society

(f) St. Croix Valley Heritage Center

$75,000 is appropriated in 1999 for a grant to the St. Croix Valley Heritage Coalition, Inc., for initial project design for the St. Croix Valley Heritage Center. This is a one-time appropriation and is not added to the department's permanent budget base.

(g) Grimm Farmhouse

$75,000 is appropriated in 1999 for a one-time grant to Hennepin parks for the design and stabilization of the Wendelin Grimm farmhouse. This appropriation is available until June 30, 1999. This appropriation must be matched by an equal amount from nonstate sources. This is a one-time appropriation and is not added to the budget base.

(h) Metropolitan Multitype Library Consortium

$25,000 is appropriated in 1999 for a grant to the metropolitan multitype library consortium for copying and making available to the 11 greater Minnesota regional public library systems and the St. Paul and Minneapolis libraries, through the Minnesota center for the book, a series of video cassette tapes of interviews with Minnesota authors, for the production and programming costs of the northern lights cable program on which the Minnesota authors are interviewed, and for operating costs the consortium incurs as a result of this provision. Libraries that receive a copy of the series shall make the video cassettes readily available to teachers and other members of the public interested in learning about the work and lives of Minnesota authors. This is a one-time appropriation and is not added to the budget base.

Sec. 11. COUNCIL ON BLACK MINNESOTANS -0- 75,000

$75,000 is appropriated in 1999 to assist in planning and coordinating observances of the Martin Luther King, Jr. holiday and other events honoring Martin Luther King, Jr. This is a one-time appropriation and is not added to the council's budget base.

Sec. 12. INDIAN AFFAIRS COUNCIL -0- 80,000

$80,000 is appropriated in 1999 to assist in funding the 50th annual conference of the Interstate Indian Council to be held in Minnesota in 1999. This is a one-time appropriation and is not added to the council's permanent budget base.

Sec. 13. ADMINISTRATION 50,000 735,000

(a) Little Falls

(b) Montevideo

$185,000 is appropriated in 1999 for a grant to the city of Montevideo for exterior improvements to the city's historic railroad depot and for design and development of a related parking area, trailhead, and public facilities at the site, subject to the requirements of Minnesota Statutes, section 16A.695. This is a one-time appropriation and is not added to the department's permanent budget base.

(c) Walnut Grove

$50,000 is appropriated in 1999 for a grant to the city of Walnut Grove for capital improvements to the Laura Ingalls Wilder pageant facilities. This is a one-time appropriation and is not added to the department's permanent budget base.

(d) Columbia Heights

$100,000 is appropriated in 1999 for a grant to the city of Columbia Heights for Central Avenue streetscape improvements. This is a one-time appropriation and is not added to the department's permanent budget base.

(e) Stewart

$100,000 is appropriated in 1999 for a grant to the city of Stewart for the final draw down design for the storm sewer project. This is a one-time appropriation and is not added to the department's permanent budget base.

(f) Blackduck

$50,000 is appropriated in 1998 for a grant to the city of Blackduck to help restore and stabilize eight buildings at Camp Rabideau in Chippewa National Forest. This is a one-time appropriation and is not added to the department's budget base. This appropriation is available until June 30, 1999.

Sec. 14. METROPOLITAN COUNCIL -0- 250,000

$250,000 is appropriated in 1999 for corridor planning pilot project grants, as provided in section 60. This is a one-time appropriation and is not added to the department's permanent budget base.

Sec. 15. [BOUNDARY EXTENSION.]

Sec. 16. Minnesota Statutes 1996, section 16B.06, subdivision 2, is amended to read:

Subd. 2. [VALIDITY OF STATE CONTRACTS.] (a) A state contract or lease is not valid and the state is not bound by it until:

(1) it has first been executed by the head of the agency or a delegate which is a party to the contract;

(2) it has been approved by the commissioner or a delegate, under this section;

(3) it has been approved by the attorney general or a delegate as to form and execution; and

(4) the account system shows an allotment or encumbrance balance for the full amount of the contract liability.

(b) Paragraph (a), clause (2), does not apply to contracts between state agencies, contracts awarding grants, or contracts making loans, or bond purchase agreements by the department of trade and economic development or the Minnesota public facilities authority.

(c) The head of the agency may delegate the execution of specific contracts or specific types of contracts to a designated subordinate within the agency if the delegation has been approved by the commissioner of administration and filed with the secretary of state. The fully executed copy of every contract or lease must be kept on file at the contracting agency.

Sec. 17. Minnesota Statutes 1996, section 16B.08, subdivision 7, is amended to read:

Subd. 7. [SPECIFIC PURCHASES.] (a) The following may be purchased without regard to the competitive bidding requirements of this chapter:

(1) merchandise for resale at state park refectories or facility operations;

(2) farm and garden products, which may be sold at the prevailing market price on the date of the sale;

(3) meat for other state institutions from the technical college maintained at Pipestone by independent school district No. 583; and

(4) products and services from the Minnesota correctional facilities; and

(5) merchandise for resale at office of tourism locations.

(b) Supplies, materials, equipment, and utility services for use by a community-based residential facility operated by the commissioner of human services may be purchased or rented without regard to the competitive bidding requirements of this chapter.

(c) Supplies, materials, or equipment to be used in the operation of a hospital licensed under sections 144.50 to 144.56 that are purchased under a shared service purchasing arrangement whereby more than one hospital purchases supplies, materials, or equipment with one or more other hospitals, either through one of the hospitals or through another entity, may be purchased without regard to the competitive bidding requirements of this chapter if the following conditions are met:

(1) the hospital's governing authority authorizes the arrangement;

(2) the shared services purchasing program purchases items available from more than one source on the basis of competitive bids or competitive quotations of prices; and

Sec. 18. Minnesota Statutes 1996, section 16B.65, subdivision 7, is amended to read:

Subd. 7. [CONTINUING EDUCATION.] Subject to sections 16B.59 to 16B.75, the commissioner may by rule establish or approve continuing education programs for municipal building officials dealing with matters of building code administration, inspection, and enforcement.

Effective January 1, 1985, each person certified as a building official for the state must satisfactorily complete applicable educational programs established or approved by the commissioner every three calendar years to retain certification, including at least three hours in programs relating to the state energy code.

Each person certified as a building official must submit in writing to the commissioner an application for renewal of certification within 60 days of the last day of the third calendar year following the last certificate issued. Each application for renewal must be accompanied by proof of satisfactory completion of minimum continuing education requirements and the certification renewal fee established by the commissioner.

For persons certified prior to January 1, 1985, the first three-year period commences January 1, 1985.

Sec. 19. Minnesota Statutes 1997 Supplement, section 115C.09, subdivision 3f, is amended to read:

Subd. 3f. [REIMBURSEMENTS; SMALL GASOLINE RETAILERS.] (a) As used in this subdivision, "small gasoline retailer" means a responsible person tank owner or operator who owns no more than only one location in this or any other state where motor fuel was dispensed to the public into motor vehicles, watercraft, or aircraft in the previous year, and who dispensed motor fuel at that location.

(b) Notwithstanding subdivision 1, paragraph (b), clause (1), for eligible applicants who are small gasoline retailers that have dispensed less than 500,000 gallons of motor fuel during the most recent calendar year that petroleum products were dispensed at the location owned by the retailer, the board shall reimburse the applicant for 90 percent of the applicant's total reimbursable cost for tank removal projects started after January 1, 1997 1995, including, but not limited to, tank removal, closure in place, backfill, resurfacing, and utility service restoration costs, regardless of whether a release has occurred at the site, provided that the tank involved is a regulated underground storage tank.

(c) Notwithstanding subdivision 1, paragraph (b), clause (1), for eligible applicants who are small gasoline retailers that have dispensed less than 250,000 gallons of motor fuel during the most recent calendar year that petroleum products were dispensed at the location owned by the retailer, provided that the tank involved is a regulated underground storage tank, the board shall reimburse the applicant for 95 percent of the following costs:

(1) tank removal costs described in paragraph (b); and

(2) petroleum contamination cleanup as provided under subdivision 1 incurred during or after the tank removal project.

(d) An applicant who owns only one location in this or any other state where motor fuel was dispensed to the public into motor vehicles, watercraft, or aircraft but who did not dispense motor fuel at that location may qualify as a small gasoline retailer if:

(1) the previous tank owner or operator at the location was a small gasoline retailer that dispensed less than 500,000 gallons of motor fuel during the most recent calendar year that petroleum products were dispensed at the location; and

(2) the applicant acquired legal or equitable title to the property after January 1, 1995.

(e) This subdivision expires January 1, 2000.

Sec. 20. Minnesota Statutes 1996, section 115C.09, is amended by adding a subdivision to read:

Subd. 3g. [REIMBURSEMENTS; SMALL BUSINESS OWNERS.] (a) As used in this subdivision, "small business owner" means a person:

(2) who owns no more than one location where motor fuel was previously dispensed to the public into motor vehicles;

(3) who did not dispense motor fuel at that location; and

(4) whose tanks were never registered with the state.

(b) Notwithstanding subdivision 1, paragraph (b), clause (1), the board shall reimburse an eligible applicant who is a small business owner for 90 percent of the applicant's total reimbursable cost for tank removal projects started after January 1, 1998, including, but not limited to, tank removal, closure in place, backfill, resurfacing, and utility service restoration costs, regardless of whether a release has occurred at the site, and provided that the person does not intend to replace the tanks.

Sec. 21. Minnesota Statutes 1996, section 116.182, subdivision 1, is amended to read:

Subdivision 1. [DEFINITIONS.] (a) For the purposes of this section, the terms defined in this subdivision have the meanings given them.

(b) "Agency" means the pollution control agency.

(c) "Authority" means the public facilities authority established in section 446A.03.

(d) "Commissioner" means the commissioner of the pollution control agency.

(e) "Essential project components" means those components of a wastewater disposal system that are necessary to convey or treat a municipality's existing wastewater flows and loadings, and future wastewater flows and loadings based on 50 percent of the projected residential growth of the municipality for a 20-year period.

(f) "Municipality" means a county, home rule charter or statutory city, town, the metropolitan council, an Indian tribe or an authorized Indian tribal organization; or any other governmental subdivision of the state responsible by law for the prevention, control, and abatement of water pollution in any area of the state.

(g) "Outstanding resource value waters" are those that have high water quality, wilderness characteristics, unique scientific or ecological significance, exceptional recreation value, or other special qualities that warrant special protection.

(h) "Outstanding international resource value waters" are the surface waters of the state in the Lake Superior Basin, other than Class 7 waters and those waters designated as outstanding resource value waters.

Sec. 22. Minnesota Statutes 1996, section 116.182, is amended by adding a subdivision to read:

Subd. 3a. [NOTIFICATION OF OTHER GOVERNMENT UNITS.] In addition to other applicable statutes or rules that are required to receive financial assistance consistent with this subdivision, the commissioner may not approve or certify a project to the public facilities authority for wastewater financial assistance unless the following requirements are met:

(1) prior to the initiation of the public facilities planning process for a new wastewater treatment system, the project proposer gives written notice to all municipalities as defined in 116.82 within ten miles of the proposed project service area, including the county in which the project is located, the office of strategic and long-range planning, and the pollution control agency. The notice shall state the proposer's intent to begin the facilities planning process and provide a description of the need for the proposed project. The notice also shall request a response within 30 days of the notice date from all government units who wish to receive and comment on the future facilities plan for the proposed project;

(3) 60 days prior to the municipality's public hearing on the facilities plan, a copy of the draft facilities plan and notice of the public hearing on the facilities plan must be given to the local government units who previously expressed interest in the proposed project under clause (1);

(4) for a proposed project located or proposed to be located outside the corporate limits of a city, the affected county has certified to the agency that the proposed project is consistent with the applicable county comprehensive plan and zoning and subdivision regulations;

(5) copies of the notifications required under clauses (1) and (2), as well as the certification from the county and a summary of the comments received, must be included by the municipality in the submission of its facilities plan to the pollution control agency, along with other required items as specified in the agency's rules;

(6) at any time within the 60-day period specified in clause (3), any city in the state within three miles of a proposed project located outside the corporate limits of a city may file a written objection with the pollution control agency. An objection makes the proposed project ineligible for grant funding until the city withdraws its objection or the pollution control agency board certifies that the proposed project is the only feasible and cost-effective option available for servicing the proposed area; and

(7) this subdivision does not apply to the western Lake Superior sanitary district or the metropolitan council.

Sec. 23. Minnesota Statutes 1996, section 116J.415, subdivision 5, is amended to read:

Subd. 5. [LOAN CRITERIA.] The following criteria apply to loans made under the challenge grant program:

(1) loans must be made to businesses that are not likely to undertake a project for which loans are sought without assistance from the challenge grant program;

(2) a loan must be used for a project designed principally to benefit low-income persons through the creation of job or business opportunities for them;

(3) the minimum loan is $5,000 and the maximum is $100,000 $200,000;

(4) a loan may not exceed 50 percent of the total cost of an individual project;

(5) a loan may not be used for a retail development project; and

(6) a business applying for a loan, except a microenterprise loan under subdivision 6, must be sponsored by a resolution of the governing body of the local governmental unit within whose jurisdiction the project is located.

Sec. 24. [116J.544] [DEFINITIONS.]

Subdivision 1. [TERMS.] For the purposes of sections 116J.544 to 116J.545, the following terms have the meanings given them.

Subd. 2. [BOARD.] "Board" means the Minnesota film board.

Subd. 3. [COMMISSIONER.] "Commissioner" means the commissioner of trade and economic development.

Sec. 25. [116J.5445] [DUTIES; REPORTS.]

Sec. 26. [116J.545] [MINNESOTA FILM AND TELEVISION REVOLVING LOAN FUND.]

Subdivision 1. [ELIGIBLE PROJECTS.] An eligible project is a feature film, long form television project, or television series. At least one of the project's principals must be a Minnesota resident. The principals are defined as the project's director, producer, or company chief executive officer.

Subd. 2. [REVOLVING LOAN FUND.] The commissioner shall establish a revolving loan fund in the special revenue fund for the purpose of making loans to finance eligible projects. Loan applications given preliminary approval by the board must be forwarded to the commissioner for final approval. Funds for the loan will be disbursed by the commissioner to the board after this approval.

Subd. 3. [BUSINESS LOAN CRITERIA.] (a) The criteria in this subdivision apply to loans made under the Minnesota film and television revolving loan fund.

(b) Loans must only be made for projects that the board determines would not be undertaken without assistance from the loan fund.

(c) The minimum loan is $50,000 and the maximum loan is $500,000. The board will determine the interest rate, terms, maturity, and collateral for each loan. The interest rate must be at least three percent.

(d) The amount of a loan may not exceed 50 percent of each project.

(e) Funded projects will be required to spend 120 percent of the amount of the loan in Minnesota. These expenditures may include direct production or postproduction costs as well as talent, producer, or director fees.

(f) The commissioner shall adopt rules to implement this section.

Subd. 4. [REVOLVING LOAN FUND ADMINISTRATION.] (a) Loan repayment amounts must be returned by the board to the commissioner and deposited in a revolving loan fund for additional loans to be made by the board.

(b) Administrative expenses of the board incurred to operate the loan program, not to exceed $100,000 per year, may be paid to the board from the revolving loan fund.

Subd. 5. [REPORTING REQUIREMENTS.] The board shall:

(1) submit an annual report to the commissioner by September 30 of each year that includes a description of projects funded as of June 30 of the same year. The report shall include a description of projects supported by the revolving loan fund, the production and distribution status of each project for which a loan has been made, the terms of each loan and the repayment status of each loan, the number of jobs created in Minnesota and the amount of expenditures in Minnesota, and the amount and source of matching funds. A description of the administrative expenses incurred by the board shall also be included; and

(2) provide for an independent annual audit to be performed in accordance with generally accepted accounting practices and auditing standards and submit a copy of each annual audit report to the commissioner.

Sec. 27. Minnesota Statutes 1996, section 116J.553, subdivision 2, is amended to read:

Subd. 2. [REQUIRED CONTENT.] (a) The commissioner shall prescribe and provide the application form. Except as provided in paragraphs (b) and (c), the application must include at least the following information:

(1) identification of the site;

(3) a detailed estimate, along with necessary supporting evidence, of the total cleanup costs for the site;

(4) an appraisal of the current market value of the property, separately taking into account the effect of the contaminants on the market value, prepared by a qualified independent appraiser using accepted appraisal methodology;

(5) an assessment of the development potential or likely use of the site after completion of the response action plan, including any specific commitments from third parties to construct improvements on the site;

(6) the manner in which the municipality will meet the local match requirement; and

(7) any additional information or material that the commissioner prescribes.

(b) An application for a grant under section 116J.554, subdivision 1, paragraph (b), must include a detailed estimate of the cost of the actions for which the grant is sought, but need not include the information specified in paragraph (a), clauses (2) to (4) and (6).

(c) A response action plan is not required as a condition to receive a grant under section 116J.554, subdivision 1, paragraph (c).

Sec. 28. Minnesota Statutes 1996, section 116L.03, subdivision 5, is amended to read:

Subd. 5. [TERMS AND COMPENSATION.] The terms of appointed members shall be for four years except for the initial appointments. The initial appointments of the governor shall have the following terms: two members each for one, two, three, and four years. Compensation of members shall be as provided in section 15.0575, subdivision 3.

Sec. 29. Minnesota Statutes 1996, section 179A.16, subdivision 1, is amended to read:

Subdivision 1. [NONESSENTIAL EMPLOYEES.] An exclusive representative or an employer of a unit of employees other than essential employees may request interest arbitration by providing written notice of the request to the other party and the commissioner. The written request for arbitration must specify the items to be submitted to arbitration and whether conventional, final-offer total-package, or final-offer item-by-item arbitration is contemplated by the request.

Except for city attorney legal units, the items to be submitted to arbitration and the form of arbitration to be used are subject to mutual agreement. If an agreement to arbitrate is reached, it must be reduced to writing and a copy of the agreement filed with the commissioner. A failure to respond, or to reach agreement on the items or form of arbitration, within 15 days of receipt of the request to arbitrate constitutes a rejection of the request.

Sec. 30. Minnesota Statutes 1996, section 179A.16, is amended by adding a subdivision to read:

Subd. 1a. [CITY ATTORNEY LEGAL UNITS.] An exclusive representative or employer of a city attorney legal unit may petition for binding interest arbitration by filing a written request with the other party and the commissioner. The written request must specify the items that the party wishes to submit to binding arbitration. Within 15 days of the request, the commissioner shall determine whether further mediation of the dispute would be appropriate and shall only certify matters to the board in cases where the commissioner believes that both parties have made substantial, good faith bargaining efforts and that an impasse has occurred.

Sec. 31. Minnesota Statutes 1996, section 179A.16, subdivision 3, is amended to read:

Sec. 32. Minnesota Statutes 1996, section 179A.16, subdivision 9, is amended to read:

Subd. 9. [NO ARBITRATION.] Failure to reach agreement on employer payment of, or contributions toward, premiums for group insurance coverage of retired employees is not subject to interest arbitration procedures under this section, except for units of essential employees and city attorney legal units.

Sec. 33. Minnesota Statutes 1996, section 179A.18, subdivision 1, is amended to read:

Subdivision 1. [WHEN AUTHORIZED.] Essential employees may not strike. Except as otherwise provided by subdivision 2 and section 179A.17, subdivision 2, other public employees may strike only under the following circumstances:

(1)(a) the collective bargaining agreement between their exclusive representative and their employer has expired or, if there is no agreement, impasse under section 179A.17, subdivision 2, has occurred; and

(b) the exclusive representative and the employer have participated in mediation over a period of at least 45 days, provided that the mediation period established by section 179A.17, subdivision 2, governs negotiations under that section, and provided that for the purposes of this subclause the mediation period commences on the day following receipt by the commissioner of a request for mediation; or

(2) the employer violates section 179A.13, subdivision 2, clause (9); or

(3) in the case of city attorney legal units, neither the exclusive representative nor the employer has petitioned for binding interest arbitration in accordance with section 179A.16; or

(4) in the case of state employees,:

(a) the legislative commission on employee relations has rejected a negotiated agreement or arbitration decision during a legislative interim; or

(b) the entire legislature rejects or fails to ratify a negotiated agreement or arbitration decision, which has been approved during a legislative interim by the legislative commission on employee relations, at a special legislative session called to consider it, or at its next regular legislative session, whichever occurs first.

Sec. 34. [181.636] [EMPLOYEE NOTICE OF RIGHTS; FOREIGN LANGUAGES.]

Subdivision 1. [EMPLOYER DEFINED.] For the purposes of this section, "employer" means any person employing one or more employees.

Subd. 2. [DISCLOSURE FORM.] The commissioner of labor and industry shall provide a single brochure for use in making the disclosure required in subdivision 3. The single form must contain the disclosure in English and in ten other languages that the commissioner determines are the most commonly spoken as the dominant language by Minnesota employees.

Subd. 3. [EMPLOYEE RIGHTS NOTICE.] An employer shall provide a brochure provided by the department of labor and industry within ten days of the first day of work that notifies the job offeree that:

(1) there are state and federal laws that regulate minimum wages and maximum hours of work; prohibit unsafe working conditions and discrimination; prohibit employers from making false statements in order to induce someone into employment; and require the terms and conditions of employment be provided in writing to migrant farm workers and persons employed in the food processing industry; and

Subd. 4. [PENALTY.] The department of labor and industry shall warn an employer for the employer's first violation of this section and impose a penalty of up to $200 for each subsequent violation. If the commissioner determines that an employer has engaged in a pattern of willful violation of this section, the commissioner may impose a penalty of up to $500 for each subsequent violation.

Sec. 35. Minnesota Statutes 1996, section 181.64, is amended to read:

181.64 [FALSE STATEMENTS AS INDUCEMENT TO ENTERING EMPLOYMENT.]

It shall be unlawful for any person, partnership, company, corporation, association, or organization of any kind, doing business in this state, directly or through any agent or attorney, to induce, influence, persuade, or engage any person to change from one place to another in this state, or to change from any place in any state, territory, or country to any place in this state, to work in any branch of labor through or by means of knowingly false representations, whether spoken, written, or advertised in printed form, concerning the kind or character of such work, the compensation therefor, the sanitary conditions relating to or surrounding it, or failure to state in any advertisement, proposal, or contract for the employment that there is a strike or lockout at the place of the proposed employment, when in fact such strike or lockout then actually exists in such employment at such place. Any such unlawful acts shall be deemed a false advertisement or misrepresentation for the purposes of this section and section 181.65.

Sec. 36. Minnesota Statutes 1996, section 216B.2423, subdivision 1, is amended to read:

Subdivision 1. [MANDATE.] A public utility, as defined in section 216B.02, subdivision 4, that operates a nuclear-powered electric generating plant within this state must construct and operate, purchase, or contract to construct and operate: (1) 225 megawatts of electric energy installed capacity generated by wind energy conversion systems within the state by December 31, 1998; and (2) an additional 200 megawatts of installed capacity so generated within the state by December 31, 2002.

For the purpose of this section, "wind energy conversion system" has the meaning given it in section 216C.06, subdivision 12.

Sec. 37. Minnesota Statutes 1996, section 326.87, subdivision 2, is amended to read:

Subd. 2. [HOURS.] A qualifying person of a licensee must provide proof of completion of seven ten hours of continuing education per year. At least three hours of continuing education per year must relate to requirements of the state energy code. To the extent the commissioner considers it appropriate, courses or parts of courses may be considered to satisfy both continuing education requirements under this section and continuing real estate education requirements.

Sec. 38. Minnesota Statutes 1996, section 326.975, subdivision 1, is amended to read:

Subdivision 1. [GENERALLY.] (a) In addition to any other fees, each applicant for a license under sections 326.83 to 326.98 shall pay a fee to the contractor's recovery fund. The contractor's recovery fund is created in the state treasury and must be administered by the commissioner in the manner and subject to all the requirements and limitations provided by section 82.34 with the following exceptions:

(1) each licensee who renews a license shall pay in addition to the appropriate renewal fee an additional fee which shall be credited to the contractor's recovery fund. The amount of the fee shall be based on the licensee's gross annual receipts for the licensee's most recent fiscal year preceding the renewal, on the following scale:

Fee Gross Receipts

$100 $200 under$1,000,000

$150 $300 $1,000,000 to5,000,000

$200 $500 over $5,000,000

(2) the sole purpose of this fund is to compensate any aggrieved owner or lessee of residential property who obtains a final judgment in any court of competent jurisdiction against a licensee licensed under section 326.84, on grounds of fraudulent, deceptive, or dishonest practices, conversion of funds, or failure of performance or breach of warranty arising directly out of any transaction when the judgment debtor was licensed and performed any of the activities enumerated under section 326.83, subdivision 19, on the owner's residential property or on residential property rented by the lessee, or on new residential construction which was never occupied prior to purchase by the owner, or which was occupied by the licensee for less than one year prior to purchase by the owner, and which cause of action arose on or after April 1, 1994;

(3) nothing may obligate the fund for more than $50,000 per claimant, nor more than $50,000 per licensee; and

(4) nothing may obligate the fund for claims based on a cause of action that arose before the licensee paid the recovery fund fee set in clause (1), or as provided in section 326.945, subdivision 3; and

(5) appropriations from this fund may be made for expenses of providing information to consumers on residential construction issues.

(b) Should the commissioner pay from the contractor's recovery fund any amount in settlement of a claim or toward satisfaction of a judgment against a licensee, the license shall be automatically suspended upon the effective date of an order by the court authorizing payment from the fund. No licensee shall be granted reinstatement until the licensee has repaid in full, plus interest at the rate of 12 percent a year, twice the amount paid from the fund on the licensee's account, and has obtained a surety bond issued by an insurer authorized to transact business in this state in the amount of at least $40,000 $50,000.

Sec. 39. Minnesota Statutes 1996, section 327A.01, subdivision 2, is amended to read:

Subd. 2. [BUILDING STANDARDS.] "Building standards" means the structural, mechanical, electrical, and quality standards of the home building industry for the geographic area in which the dwelling is situated. For those geographic areas where the state building code adopted by the commissioner of administration according to sections 16B.59 to 16B.75 is in effect, "building standards" shall be no less rigorous than the state building code.

Sec. 40. Minnesota Statutes 1996, section 327A.01, subdivision 5, is amended to read:

Subd. 5. [MAJOR CONSTRUCTION DEFECT.] "Major construction defect" means actual damage to the load-bearing portion of the dwelling or the home improvement, including damage due to subsidence, expansion or lateral movement of the soil, which affects the load-bearing function and which vitally substantially affects or is imminently likely to vitally substantially affect use of the dwelling or the home improvement for residential purposes. "Major construction defect" does not include damage due to movement of the soil caused by flood, earthquake or other natural disaster.

Sec. 41. Minnesota Statutes 1996, section 327A.02, subdivision 1, is amended to read:

Subdivision 1. [WARRANTIES BY VENDORS.] (a) In every sale of a completed dwelling, and in every contract for the sale of a dwelling to be completed, the vendor shall warrant to the vendee that:

(a) (1) during the one-year two-year period from and after the warranty date the dwelling shall be free from defects caused by faulty workmanship and defective materials due to noncompliance with building standards;

(b) (2) during the two-year three-year period from and after the warranty date, the dwelling shall be free from defects caused by faulty workmanship and defective materials caused by noncompliance with building standards relating to the installation of plumbing, electrical, heating, and cooling systems; and

(c) (3) during the ten-year period from and after the warranty date, the dwelling shall be free from major construction defects.

Sec. 42. Minnesota Statutes 1996, section 327A.02, subdivision 3, is amended to read:

Subd. 3. [HOME IMPROVEMENT WARRANTIES.] (a) In a sale or in a contract for the sale of home improvement work involving major structural changes or additions to a residential building, the home improvement contractor shall warrant to the owner that:

(1) during the one-year two-year period from and after the warranty date the home improvement shall be free from defects caused by faulty workmanship and defective materials due to noncompliance with building standards; and

(2) during the ten-year period from and after the warranty date the home improvement shall be free from major construction defects.

(b) In a sale or in a contract for the sale of home improvement work involving the installation of plumbing, electrical, heating or cooling systems, the home improvement contractor shall warrant to the owner that, during the two-year three-year period from and after the warranty date, the home improvement shall be free from defects caused by the faulty workmanship and defective materials caused by noncompliance with building standards relating to the installation of the system or systems.

(c) In a sale or in a contract for the sale of any home improvement work not covered by paragraph (a) or (b), the home improvement contractor shall warrant to the owner that, during the one-year two-year period from and after the warranty date, the home improvement shall be free from defects caused by faulty workmanship or defective materials due to noncompliance with building standards.

Sec. 43. Minnesota Statutes 1996, section 327A.03, is amended to read:

327A.03 [EXCLUSIONS.]

The liability of the vendor or the home improvement contractor under sections 327A.01 to 327A.07 is limited to the specific items set forth in sections 327A.01 to 327A.07 and does not extend to the following:

(a) Loss or damage not reported by the vendee or the owner to the vendor or the home improvement contractor in writing within six months two years after the vendee or the owner discovers or should have discovered the loss or damage;

(b) Loss or damage caused by defects in design, installation, or materials which the vendee or the owner supplied, installed, or directed to be installed;

(c) Secondary loss or damage such as personal injury or property damage;

(d) Loss or damage from normal wear and tear;

(e) Loss or damage from normal shrinkage caused by drying of the dwelling or the home improvement within tolerances of building standards;

(f) Loss or damage from dampness and condensation due to insufficient ventilation after occupancy, when the inadequate ventilation is attributable to conditions resulting from compliance with requirements of the state energy code in effect at the time of construction;

(g) Loss or damage from negligence, improper maintenance or alteration of the dwelling or the home improvement by parties other than the vendor or the home improvement contractor;

(h) Loss or damage from changes in grading of the ground around the dwelling or the home improvement by parties other than the vendor or the home improvement contractor;

(j) Loss or damage from failure to maintain the dwelling or the home improvement in good repair;

(k) Loss or damage which the vendee or the owner, whenever feasible, has not taken timely action to minimize;

(l) Loss or damage which occurs after the dwelling or the home improvement is no longer used primarily as a residence;

(m) Accidental loss or damage usually described as acts of God, including, but not limited to: fire, explosion, smoke, water escape, windstorm, hail or lightning, falling trees, aircraft and vehicles, flood, and earthquake, except when the loss or damage is caused by failure to comply with building standards;

(n) Loss or damage from soil movement which is compensated by legislation or covered by insurance;

(o) Loss or damage due to soil conditions where construction is done upon lands owned by the vendee or the owner and obtained by the vendee or owner from a source independent of the vendor or the home improvement contractor;

(p) In the case of home improvement work, loss or damage due to defects in the existing structure and systems not caused by the home improvement.

Sec. 44. Minnesota Statutes 1996, section 383B.79, subdivision 1, is amended to read:

Subdivision 1. [PROGRAM CREATED.] A multijurisdictional reinvestment program involving Hennepin county, the cities of Minneapolis, Brooklyn Center, and other interested statutory or home rule charter cities in Hennepin county, the Minneapolis park board, and the suburban Hennepin county park district is created. The multijurisdictional program must include plans for housing rehabilitation and removals, industrial polluted land cleanup, water ponding, environmental cleanup, community corridor connections, corridor planning, creation of green space, acquisition of property, development and redevelopment of parks and open space, water quality and lakeshore improvement, development and redevelopment of housing and existing commercial projects, funding and refunding of convention and conference centers and related facilities, assistance to businesses, and job creation.

Sec. 45. Minnesota Statutes 1996, section 383B.79, is amended by adding a subdivision to read:

Subd. 6. [ADMINISTRATION.] The board of county commissioners shall administer the program and funds and bond for projects in this section either as a county board, a housing and redevelopment authority, or a regional rail authority. The board of county commissioners may acquire property in connection with the project known as the Humboldt Avenue Greenway from any funds under its control.

Sec. 46. Minnesota Statutes 1997 Supplement, section 414.11, is amended to read:

414.11 [MUNICIPAL BOARD SUNSET.]

The municipal board shall terminate on December 31, 1999 2002, and all of its authority and duties under this chapter shall be transferred to the office of strategic and long-range planning according to section 15.039.

Sec. 47. Minnesota Statutes 1996, section 446A.072, subdivision 2, is amended to read:

Sec. 48. Minnesota Statutes 1996, section 446A.072, subdivision 4, is amended to read:

Subd. 4. [FUNDING LEVEL.] (a) The authority shall provide supplemental assistance for essential project component costs as certified by the commissioner of the pollution control agency under section 116.182, subdivision 4.

(b) A municipality may not receive more than $4,000,000 under this section unless specifically approved by law.

(c) The authority will calculate the grant amount needed for the essential project component costs by first determining the amount needed to reduce a municipality's monthly residential sewer service charge to $25 or to an annual residential sewer service charge in excess of 1.5 percent of the municipality's median household income, whichever is less, and then multiplying that amount by 80 percent to determine the actual award amount to supplement loans under section 446A.07 or provide up to one-third of the amount of the grant funding level required by USDA/RECD for projects listed on the agency's intended use plan.

(d) The authority shall provide supplemental assistance for up to one-half of the eligible grant funding level determined by the United States Department of Agriculture Rural Development funding for projects listed on the agency's project priority list, in priority order. For municipalities that are not eligible for United State Department of Agriculture Rural Development funding for wastewater, the authority shall provide supplemental assistance for: (1) essential project component costs calculated by first determining the amount needed to reduce a municipality's annual residential sewer costs to 1.4 percent of the municipality's median household income or $25, whichever is greater, and then multiplying that amount by 80 percent to determine the actual award amount to supplement loans under section 446A.07; and (2) up to 50 percent of the incremental costs specifically identified by the agency as being attributable to more stringent wastewater standards required to protect outstanding resource value waters or outstanding international resource value waters.

(d) Notwithstanding paragraph (b), in the event that a municipality's monthly residential sewer service charges average above $50, the authority will provide 90 percent of the grant amount needed to reduce the average monthly sewer service charge to $50, provided the project is ranked in the top 50 percentile of the agency's intended use plan.

(e) Notwithstanding paragraphs (b), (c), and (d), a municipality with an annual median household income of $40,000 or greater shall not be eligible for a grant, except for incremental costs specifically identified by the agency as being attributable to more stringent wastewater standards required to protect outstanding resource value waters or outstanding international resource value waters.

(f) The authority shall provide supplemental assistance to a municipality that would not otherwise qualify for supplemental assistance if:

(1) the municipality voluntarily accepts a sewer connection from another governmental unit to serve residential, industrial, or commercial developments that were completed before March 1, 1996, or are on lots whose plats were recorded before that date; and

(2) fees charged by the municipality for the connection must take into account state and federal grants used by the municipality for the construction of the treatment plant.

The amount of supplemental assistance under this paragraph must be sufficient to reduce debt service payments under section 446A.07 to an extent equivalent to a zero percent loan in an amount up to the other governmental unit's project costs necessary for connection. Eligibility for supplemental assistance under this paragraph ends three years after the agency certifies that the connection has met the operational performance standards established by the agency.

Sec. 49. Minnesota Statutes 1996, section 469.303, is amended to read:

469.303 [ELIGIBILITY REQUIREMENTS.]

federal empowerment zone program for cities with a population under 500,000 or, (2) is an area within a city of the second class that is designated as an economically depressed area by the United States Department of Commerce, or (3) includes property located in St. Paul in a transit zone as defined in section 473.3915, subdivision 3.

Sec. 50. Minnesota Statutes 1996, section 541.051, subdivision 1, is amended to read:

Subdivision 1. (a) Except where fraud is involved, no action by any person in contract, tort, or otherwise to recover damages for any injury to property, real or personal, or for bodily injury or wrongful death, arising out of the defective and unsafe condition of an improvement to real property, nor any action for contribution or indemnity for damages sustained on account of the injury, shall be brought against any person performing or furnishing the design, planning, supervision, materials, or observation of construction or construction of the improvement to real property or against the owner of the real property more than two three years after discovery of the injury or, in the case of an action for contribution or indemnity, accrual of the cause of action, nor, in any event shall such a cause of action accrue more than ten years after substantial completion of the construction. Date of substantial completion shall be determined by the date when construction is sufficiently completed so that the owner or the owner's representative can occupy or use the improvement for the intended purpose.

(b) For purposes of paragraph (a), a cause of action accrues upon discovery of the injury or, in the case of an action for contribution or indemnity, upon payment of a final judgment, arbitration award, or settlement arising out of the defective and unsafe condition.

(c) Nothing in this section shall apply to actions for damages resulting from negligence in the maintenance, operation or inspection of the real property improvement against the owner or other person in possession.

(d) The limitations prescribed in this section do not apply to the manufacturer or supplier of any equipment or machinery installed upon real property.

Sec. 51. Minnesota Statutes 1996, section 541.051, subdivision 4, is amended to read:

Subd. 4. This section shall not apply to actions based on breach of the statutory warranties set forth in section 327A.02, or to actions based on breach of an express written warranty, provided such actions shall be brought within two three years of the discovery of the breach.

Sec. 52. Laws 1997, chapter 85, article 1, section 39, subdivision 4, is amended to read:

Subd. 4. [EMPLOYMENT AND TRAINING SERVICE PROVIDER.] "Employment and training service provider" means:

(1) a public, private, or nonprofit employment and training agency certified by the commissioner of economic security under sections 268.0122, subdivision 3, and 268.871, subdivision 1, or is approved under section 256J.51 and is included in the county plan submitted under section 256J.50, subdivision 7; or

(2) a public, private, or nonprofit agency that is not certified by the commissioner under clause (1), but with which a county has contracted to provide employment and training services and which is included in the county's plan submitted under section 256J.50, subdivision 7; or

(3) a county agency, if the county has opted is certified under clause (1) to provide employment and training services and the county has indicated that fact in the plan submitted under section 256J.50, subdivision 7.

Notwithstanding section 268.871, an employment and training services provider meeting this definition may deliver employment and training services under this chapter.

Sec. 53. Laws 1997, chapter 200, article 1, section 2, subdivision 2, is amended to read:

Subd. 2. Business and Community Development

$7,017,000 the first year and $6,017,000 the second year is for Minnesota investment fund grants. Of this appropriation, $3,000,000 the first year and $2,000,000 the second year are one-time appropriations and may not be added to the budget base for the biennium ending June 30, 2001. Of this one-time appropriation $1,000,000 the first year is for a single grant recipient, to be identified by the commissioner, notwithstanding the monetary limitation under Minnesota Statutes, section 116J.8731, subdivision 5. This amount may not be added to the agency's budget base. This amount is available until June 30, 1999.

$450,000 the first year and $450,000 the second year is for grants to Advantage Minnesota, Inc. The funds are available only if matched on at least a dollar-for-dollar basis from other sources. The commissioner may release the funds only upon:

(1) certification that matching funds from each participating organization are available; and

(2) review and approval by the commissioner of the proposed operations plan of Advantage Minnesota, Inc. for the biennium.

$7,418,000 the first year and $7,918,000 the second year is for the job skills partnership program. If the appropriation for either year is insufficient, the appropriation for the other year is available. This appropriation does not cancel. Of this amount, $1,500,000 the first year and $2,000,000 the second year is for the Pathways program under Minnesota Statutes, section 116L.04, subdivision 1a.

$250,000 the first year is for a grant from the department of trade and economic development to the Software Technology Center to broaden industry-related educational and technological services. This appropriation is available upon documentation of a dollar-for-dollar match from other sources since the inception of the Software Technology Center. This is a one-time appropriation and must not be included in the budget base for the biennium ending June 30, 2001.

$100,000 the first year is for a one-time grant to the Duluth Technology Center. This appropriation is available until June 30, 1999.

$25,000 the first year is for a one-time grant to the city of New London for improvements to the Little Theatre. This appropriation is available when the city matches the appropriation with $25,000 from nonstate sources.

$35,000 the first year is for a one-time appropriation to the Fairfax economic development authority for roof replacement. This appropriation is available until June 30, 1999.

$2,000,000 the first year is for a one-time grant to the city of Brooklyn Center to redevelop the Brookdale regional center and provide opportunities for economic development at or near the center. The grant must be used to assist the city in constructing a series of storm water retention ponds that will facilitate the redevelopment and economic development of the center and nearby property. The grant must be on terms and conditions determined by the commissioner. The grant must be matched by city resources that equal at least 25 percent of the grant.

$650,000 the first year is for the taconite mining grant program under Minnesota Statutes, section 116J.992. This appropriation is available until June 30, 1999. This is a one-time appropriation and may not be included in the budget base for the biennium ending June 30, 2001.

$95,000 the first year and $95,000 the second year is for grants to county and district agricultural societies and associations that are eligible to receive aid under Minnesota Statutes, section 38.02. The commissioner shall spend this appropriation as grants of $1,000 for each fair conducted by such a county and district agricultural society and association in each year.

$3,000,000 the first year is for a grant to develop a direct reduction iron-processing facility in Minnesota. This appropriation is available until June 30, 1999. This is a one-time appropriation and may not be included in the budget base for the biennium ending June 30, 2001.

$500,000 the first year is for technical assistance under Minnesota Statutes, section 116J.8745. This appropriation is available until June 30, 1999.

$4,444,000 the first year is for state matching money for federal grants to capitalize the drinking water revolving loan fund under Minnesota Statutes, section 446A.081. The expenditure is limited to the minimum amount necessary to match the allotment of federal money to Minnesota. This is a one-time appropriation and must not be included in the budget base for the biennium ending June 30, 2001.

$25,000 the first year is for a one-time grant to the city of St. Paul to improve, beautify, and enhance marked trunk highway No. 5 from Minneapolis-St.Paul international airport to interstate highway No. 35-E. Enhancements may include, among other things, landscaping, historical lighting, and signing.

$100,000 the first year is for a one-time grant to the city of Grey Eagle for construction of a wastewater treatment plant.

$125,000 the first year is for a one-time demonstration project grant to the city of Newport for the city to conduct a study of the economic impact on the city resulting from regional infrastructure improvement projects. The city may retain consultants and enter into contracts it considers desirable to conduct the study. The elements of the study must include an alternate economic use study, a fiscal impact study, an infrastructure impact study, and a traffic impact study. The grant is available only to the extent that the city provides in-kind resources or money, raised or contributed during a period beginning January 1, 1993, that provides a one-to-one match of the grant.

$100,000 the first year is for a grant to the Minnesota Organization for Global Professional Assignments, an independent, nonprofit corporation, for a program that creates opportunities for the international professional development of Minnesota college graduates and Minnesota college seniors interested in pursuing careers with multinational businesses. This is a one-time appropriation. The appropriation is available for the fiscal year ending June 30, 1998.

$100,000 the first year and $100,000 the second year is for one-time grants to the city of New Brighton, as project coordinator and fiscal agent of the seven-city coalition, for the multicommunity business retention and market expansion project and related planning efforts linking geographical information systems, contaminated land remediation, land use planning, transportation corridor study, integration of existing housing stock, subregional transit and reverse commute coordination, employment densities, job training and welfare reform placement coordination, and commercial and industrial development. The coalition shall share all results and written reports with the department of trade and economic development.

$2,000,000 the first year is for transfer to the rural policy and development center fund. This appropriation does not cancel. This is a one-time appropriation and may not be included in the agency's budget base for the biennium ending June 30, 2001.

$250,000 the first year and $250,000 the second year is for grants to the board of the rural policy and development center for operation of the center.

$130,000 the first year and $155,000 the second year is for grants to the metropolitan economic development association.

$240,000 the first year and $265,000 the second year is for grants to WomenVenture.

$500,000 the first year and $500,000 the second year is for grants to the St. Paul rehabilitation center for its current programs, including those related to developing job-seeking skills and workplace orientation, intensive job development, functional work English, and on-site job coaching.

$250,000 in the first year is for a one-time grant to the Morrison county rural development finance authority established under Laws 1982, chapter 437. The authority must use the grant only for capital improvements to a paper and wood products manufacturer in the county primarily for the purposes of facility upgrading and expansion of the manufacturer's capability to utilize recycled wastepaper as a fiber source. Minnesota Statutes, section 116J.991, applies to the grant.

$200,000 the first year is for an agreement with the Judy Garland Children's Museum to assist in the design and construction of a children's museum. This amount must be matched by at least $1,275,000 from nonstate sources committed by June 30, 1998. This is a one-time appropriation and may not be added to the agency's budget base in future biennia.

Notwithstanding Minnesota Statutes, section 116J.8731, or any other law to the contrary, the commissioner shall, in the commissioner's considerations on Minnesota investment fund grants in fiscal year 1998, strongly consider an application for a $250,000 grant to the Morrison county rural development authority established under Laws 1982, chapter 437, for capital improvements to a paper and wood products manufacturer in Morrison county primarily for the purposes of facility upgrading and expansion of the manufacturer's capability to utilize recycled wastepaper as a fiber source, thereby achieving the purpose of job enhancement, stability, and preservation. As part of this consideration, the commissioner shall confer with the manufacturer, inspect the manufacturer's facilities, and conduct an analysis of the manufacturer's business plan and its previous and proposed efforts to achieve these purposes. The commissioner shall strongly consider approving the grant application unless the commissioner determines that the grant will not significantly contribute to achieving these purposes. The commissioner must make a determination on this application by December 1, 1997.

$45,000 the first year is for a one-time grant to the Upper Minnesota Valley River regional development commission for development of design specifications and architectural plans for a regional visitors center, to be built on the upper segment of the Minnesota river corridor within the designated scenic byway area and in conjunction with the development of the Minnesota river corridor trail. This appropriation is available until June 30, 1999.

$80,000 the first year and $80,000 the second year is for one-time grants to the greater metropolitan area foreign trade zone commission for the purpose of promoting foreign trade zones in Minnesota.

Sec. 54. Laws 1997, chapter 200, article 1, section 12, subdivision 2, is amended to read:

Subd. 2. Workers' Compensation

12,152,000 12,202,000 12,160,000 12,110,000

This appropriation is from the workers' compensation fund.

$125,000 the first year and $125,000 the second year is for grants to the Vinland Center for rehabilitation service.

Notwithstanding Minnesota Statutes, section 79.253, the following appropriations are made from the assigned risk safety account in the special compensation fund to the commissioner of labor and industry:

(a) $77,000 the first year and $73,000 in the second year are for the purpose of hiring one occupational safety and health inspector. The inspector shall perform safety consultations for employers through labor-management committees as defined in Minnesota Statutes, section 179.81, subdivision 2, under an interagency agreement entered into between the commissioners of labor and industry and mediation services.

(b) $95,000 the first year and $75,000 the second year are for the purpose of providing information to employers regarding the prevention of violence in the workplace.

(c) $25,000 the first year and $25,000 the second year are for the purpose of safety training and other safety programs for youth apprentices.

Sec. 55. Laws 1997, chapter 200, article 1, section 33, subdivision 1, is amended to read:

Subdivision 1. [STUDY.] The commissioners of trade and economic development, labor and industry, and economic security The governor's workforce development council shall conduct a joint study of job-training programs funded wholly or partly with state funds. The commissioners The governor's workforce development council must report to the governor and legislature on the development of the study by January 15, 1998, and make a final report on the study by January 15, 1999.

Sec. 56. Laws 1997, chapter 200, article 1, section 33, is amended by adding a subdivision to read:

Subd. 4. [WAGE RATE STUDY.] The governor's workforce development council must identify for each job-training program studied:

(1) the number and proportion of placement jobs paying at least 120 percent of the federal poverty level initially;

(2) the number and proportion of placement jobs paying at least 150 percent of the federal poverty level initially;

(3) the number and proportion of individuals who were employed two years after successful program completion; and

Sec. 57. Laws 1997, chapter 200, article 1, section 33, is amended by adding a subdivision to read:

Subd. 5. [BREAKDOWN OF INFORMATION.] For each program included in the job-training study, the governor's workforce development council shall report the information required by this section for each of the following groups: men, women, Blacks, Native Americans, Hispanics, Asians, persons with disabilities, persons under 25, persons between 25 and 45, persons over 45, and persons receiving MFIP-S employment and training and food stamp employment and training (FSET).

Sec. 58. Laws 1997, chapter 200, article 1, section 33, is amended by adding a subdivision to read:

Subd. 6. [COLLECTION OF INFORMATION.] All training programs being studied by the governor's workforce development council are to collect demographic information in accordance with subdivision 5, and are to make available to the Minnesota department of economic security the social security numbers of the programs' participants for the purpose of tracking wages and job retention for two-year and five-year periods following program completion. Notwithstanding Minnesota Statutes, section 13.47 or 268.19, the Minnesota department of economic security shall provide the governor's workforce development council with the necessary information on the program participants to carry out this study.

Sec. 59. [TRAINING FOR HMONG AND LAOTIAN WOMEN.]

$100,000 of the appropriation in fiscal year 1999 for the Job Training Partnership Act program in Laws 1997, chapter 200, article 1, section 5, subdivision 4, is available to the Women's Association of Hmong and Lao to provide employment and training to eligible Hmong and Laotian women.

Sec. 60. [CORRIDOR PLANNING PILOT PROJECTS.]

Subdivision 1. [PILOT PROJECTS.] (a) The metropolitan council shall contract with the University of Minnesota design center for American urban landscape to establish corridor planning pilot projects for the highway 61 south, and I-35W north corridors in the metropolitan area. A "corridor plan" is a subregional, multijurisdictional comprehensive plan for the area along a major transportation corridor through two or more municipalities. A corridor plan implements local development and redevelopment objectives in compliance with regional goals and priorities by establishing an integrated and cooperative working relationship between adjoining corridor communities to, among other things:

(1) make use of shared geographic information systems, as they are developed;

(2) establish a framework for a comprehensive livable community urban design;

(3) develop strategies for housing, and economic development and redevelopment, including the cleanup of contaminated properties and replacement of demolished affordable housing; and

(4) create a comprehensive multimodal transportation plan for the corridor, integrating transportation and land use issues.

(b) A corridor plan must be developed by representatives of each of the municipalities in the corridor, reviewed and approved by the metropolitan council, and adopted by each of the participating municipalities. A local comprehensive plan must be consistent with the corridor plan.

Subd. 2. [1999 LEGISLATIVE PROPOSAL.] Based on the experience of the corridor communities with the corridor planning pilot projects, the council, in collaboration with the design center and the corridor communities, shall propose legislation for the 1999 legislature's consideration, that will provide incentives to communities to implement their adopted corridor plans approved by the council. Recommendations for incentives may include, but are not limited to, recommendations related to tax increment financing, brownfield cleanup and redevelopment assistance, transportation funding, board of government innovation and cooperation grants, and local government assistance.

Sec. 61. [MINNESOTA INVESTMENT FUND.]

Subdivision 1. [CITY OF LUVERNE.] Notwithstanding the grant limit contained in Minnesota Statutes, section 116J.8731, subdivision 5, a grant of up to $1,000,000 may be made to the city of Luverne to offset severe job losses due to plant closings. Before a grant is made, there must be coordination with an existing environmental review of the impact on groundwater by the Minnesota pollution control agency in cooperation with the public facilities authority and its program for wastewater infrastructure and the state revolving loan fund for drinking water or wastewater treatment. This subdivision is effective the day following final enactment.

Subd. 2. [SOYBEAN OILSEED PROCESSING FACILITY.] Notwithstanding the grant limit in Minnesota Statutes, section 116J.8731, subdivision 5, a grant of up to $1,000,000 may be made to a political subdivision that is chosen as a site for a soybean oilseed processing facility, constructed by a Minnesota-based cooperative. The grant may be used for site preparation, predevelopment, and other infrastructure improvements, including public and private utility improvements, that are necessary for development of the oilseed processing facility. The grant may be made any time until December 31, 2000.

Sec. 62. [CIRCULATOR VEHICLE PILOT PROJECT; OPERATION, MARKETING, PLANNING.]

Subdivision 1. [ESTABLISHED.] (a) The commissioner of trade and economic development shall plan and develop a circulator vehicle pilot project for the purpose of:

(1) connecting the Minneapolis convention center and other major locations in downtown Minneapolis with multicultural tourist, heritage, and cultural resources in the Phillips, Stevens Square, Whittier, Central, Powderhorn, Seward, Loring Park, and Cedar-Riverside neighborhoods in Minneapolis and contributing to the revitalization of those neighborhoods by increasing urban tourism;

(2) generating additional tourism revenue by expanding the selection of tourism activities provided by the convention center and downtown Minneapolis; and

(3) promoting state and local tourism activities which provide a richer, more culturally diverse experience of Minneapolis urban life as an alternative to larger, more commercial attractions.

The pilot project may consist of regular route transportation, charter service, or both.

(b) The grant shall be spent as follows:

(1) $200,000 for operating expenses related to the pilot project, which must be matched by an equal amount from money contributed by Minneapolis, Hennepin county, and nongovernmental sources; and

(2) $20,000 to a community-based business association for planning and marketing costs, which must be matched by an equal amount from money contributed by Minneapolis, Hennepin county, and nongovernmental sources. This appropriation is available until spent.

Subd. 2. [AGENCY COOPERATION.] The Minnesota office of tourism and the metropolitan council shall cooperate with the grantees in the design, marketing, and planning of the circulator vehicle pilot project.

Subd. 3. [DETERMINATION.] The commissioner of trade and economic development shall make the grant described in subdivision 1, paragraph (b), clause (1), when the commissioner determines that the appropriate matches are in place and that the metropolitan council is willing and able to provide the necessary vehicles to the circulator service.

Subd. 5. [ASSESSMENT OF PROJECT.] By January 1, 2000, the commissioner of trade and economic development, in conjunction with the grantees and the metropolitan council, will identify quantitative measures of usage and economic impact and report the information collected using these measures to the legislature.

Subd. 6. [EXCEPTION.] Notwithstanding any provision of Minnesota Statutes, chapter 398A, the Hennepin county regional railroad authority may expend up to $400,000 from its funds to fund the circulator vehicle pilot project in this section. The funds may be used for other capital or operating costs.

Sec. 63. [DISCLOSURE, CATEGORY 1; CATEGORY 2.]

Prior to March 1, 1999, a builder shall disclose in writing to a purchaser before execution of a purchase contract whether the residential building to be constructed is a category 1 or category 2 building, as defined in Minnesota Rules, part 7670.0470, subpart 6, item A. The disclosure shall include an explanation of the difference between the categories in respect of ventilation systems.

Sec. 64. [PUBLIC EDUCATION CAMPAIGN.]

The department of commerce shall establish a public education campaign to educate the public about homeowners' and purchasers' rights under section 25 and Minnesota Statutes, sections 16B.61, subdivision 3b; 16B.65, subdivision 7; 326.87, subdivision 2; 326.975, subdivision 1; 327A.01, subdivisions 2 and 5; 327A.02, subdivisions 1 and 3; 327A.03; 541.051, subdivisions 1 and 4, and about ways to recognize safety and health issues that may arise when purchasing a home, including potential moisture and indoor air quality problems.

Sec. 65. [ON-THE-JOB TRAINING.]

The job skills partnership board in cooperation with the departments of trade and economic development, economic security, and labor and industry and the Minnesota state colleges and universities shall develop on-the-job training programs to assist companies in training workers in the skilled trades. The programs may include training for immigrants who have completed training in skilled trades outside of the United States and may include English as a second language specialists and interpreters as necessary. The job skills partnership board shall pay the costs of developing these programs from its existing resources.

Sec. 66. [JUDY GARLAND CHILDREN'S MUSEUM.]

The appropriation in Laws 1997, chapter 200, article 1, section 2, subdivision 2, to the commissioner of trade and economic development for the Judy Garland Children's Museum is available until and may be matched until June 30, 1999.

Sec. 67. [EXEMPTION FROM ADDITIONAL BENEFITS REQUIREMENTS.]

Notwithstanding Minnesota Statutes, section 268.125, subdivisions 1; and 3, clauses (1) and (6), a claimant is eligible to receive additional benefits under Minnesota Statutes, section 268.125, if:

(1) the claimant was laid off due to lack of work from the Campbell Soup plant in Nobles county between the months of July and September of 1997; and

(2) the commissioner of economic security finds that the claimant satisfies the conditions of Minnesota Statutes, section 268.125, subdivision 3, clauses (2) to (5), and has been or is a participant in a dislocated workers program.

This section is effective the day following final enactment.

Sec. 68. [RETIREMENT EXCEPTION.]

Sec. 69. [EXEMPTION FROM ADDITIONAL BENEFITS REQUIREMENTS.]

Notwithstanding Minnesota Statutes, section 268.125, subdivisions 1; and 3, clauses (1) and (6), a claimant is eligible to receive additional benefits under Minnesota Statutes, section 268.125, if:

(1) the claimant was laid off due to lack of work from the Hibbing Taconite Company in St. Louis county between the months of July and September of 1997; and

(2) the commissioner of economic security finds that the claimant satisfies the conditions of Minnesota Statutes, section 268.125, subdivision 3, clauses (2) to (5).

This section is effective the day following final enactment.

Sec. 70. [REPEALER.]

(a) Minnesota Statutes 1996, section 116C.80, is repealed.

(b) Minnesota Statutes 1997 Supplement, section 446A.072, subdivision 4a, is repealed.

(c) Laws 1991, chapter 275, section 3, is repealed.

Sec. 71. [EFFECTIVE DATES.]

Sections 1 to 14, 19, 21, 22, 36, 47, 48, 49, 53, 55, 56, 57, 58, 62, and 70, paragraph (b), are effective the day following final enactment. Sections 28 and 52 are effective retroactive to July 1, 1997. Section 63 is effective May 1, 1998. Section 34 is effective January 1, 1999.

Sections 39 to 43, 50, and 51 are effective for housing warranties which take effect on or after June 1, 1999.

Sections 44 and 45 take effect the day after the Hennepin county board complies with the provisions of Minnesota Statutes, section 645.021, subdivision 3.

Section 1. [APPROPRIATIONS.]

The sums in the columns marked "APPROPRIATIONS" are appropriated from the general fund, or another named fund, to the agencies and for the purposes specified in this act, to be available for the fiscal years indicated for each purpose. The figures "1998" and "1999," where used in this act, mean that the appropriation or appropriations listed under them are available for the year ending June 30, 1998, or June 30, 1999, respectively. The term "first year" means the fiscal year ending June 30, 1998, and "second year" means the fiscal year ending June 30, 1999.

1998 1999

General $ -0- $20,100,000

APPROPRIATIONS

Available for the Year

Ending June 30

1998 1999

Sec. 2. MINNESOTA HOUSING FINANCE AGENCY -0- 19,975,000

The amounts that may be spent from this appropriation for certain programs are specified below.

This appropriation is for transfer to the housing development fund for the programs specified. Except as otherwise indicated, this transfer is part of the agency's permanent budget base.

$365,000 in 1999 is for a rental housing assistance program for persons with a mental illness or families with an adult member with a mental illness under Minnesota Statutes, section 462A.2097, and is added to the appropriation for this program in Laws 1997, chapter 200, article 1, section 6.

$700,000 in 1999 is for the family homeless prevention and assistance program under Minnesota Statutes, section 462A.204 and is added to the appropriation for this program in Laws 1997, chapter 200, article 1, section 6.

$14,100,000 in 1999 is for the affordable rental investment fund program under Minnesota Statutes, section 462A.21, subdivision 8b, and added to the appropriation for this program in Laws 1997, chapter 200, article 1, section 6. Of this amount, $2,500,000 is a one-time appropriation and is not added to the agency's permanent budget base. The agency must seek a commitment from nonstate resources to be used in coordination with $4,100,000 from the affordable rental investment fund program to secure affordable housing for workers. The annual base appropriation for the affordable rental investment fund program in the 2000-2001 biennium is equal to the fiscal year 1999 appropriation plus $2,085,000.

$65,000 in 1999 is for nonprofit capacity building grants under Minnesota Statutes, section 462A.21, subdivision 3b, and is added to the appropriation for this program in Laws 1997, chapter 200, article 1, section 6. This appropriation is for grants to supplement resources from the corporation for national service in support of placement of VISTA volunteers with nonprofit housing agencies.

$4,100,000 in 1999 is for the community rehabilitation program under Minnesota Statutes, section 462A.206, and is added to the appropriation for this program in Laws 1997, chapter 200, article 1, section 6. Of this amount, $2,500,000 is a one-time appropriation and is not added to the agency's permanent budget base. The agency must seek a commitment from nonstate resources to be used in coordination with the community rehabilitation program to secure affordable housing for workers. The annual base appropriation for the community rehabilitation program in the 2000-2001 biennium is equal to the fiscal year 1999 appropriation plus $2,085,000.

$70,000 in 1999 is for full-cycle home ownership and purchase-rehabilitation lending initiatives under Minnesota Statutes, section 462A.209. This is a one-time appropriation and is not added to the agency's permanent budget base. This appropriation must be used to make a grant to a statewide organization that advocates on behalf of persons with developmental disabilities or related conditions. The grant must be used to provide prepurchase and postpurchase counseling to persons with disabilities who are participating in the Fannie Mae Homechoice demonstration project and other projects designed to encourage home ownership among persons with disabilities.

$500,000 in 1999 is for the homeownership zones program, under Minnesota Statutes, section 462A.2066. If the agency does not receive fundable applications for this program by June 30, 1999, that will use the entire appropriation, the remaining amount is transferred to the community rehabilitation program.

$75,000 in 1999 is appropriated for the housing rehabilitation loan program under Minnesota Statutes, section 462A.05, subdivision 14a, for loans to households which include a member diagnosed with chemical sensitivity. Notwithstanding section 462A.05, subdivision 14a, loans may be made to households which include a member diagnosed with chemical sensitivity for the lesser of the actual cost of improvements or $25,000. This is a one-time appropriation and is not added to the agency's permanent budget base.

Sec. 3. ADMINISTRATION -0- 125,000

Sec. 4. Laws 1997, chapter 200, article 1, section 6, is amended to read:

Sec. 6. HOUSING FINANCE AGENCY 33,380,000 24,976,000

The amounts that may be spent from this appropriation for certain programs are specified below.

This appropriation is for transfer to the housing development fund for the programs specified. Except as otherwise indicated, this transfer is part of the agency's permanent budget base.

Spending limit on cost of general administration of agency programs:

1998 1999

11,017,000 11,684,000 11,678,000 13,278,000

$1,550,000 the first year and $1,550,000 the second year is for a rental housing assistance program for persons with a mental illness or families with an adult member with a mental illness under Minnesota Statutes, section 462A.2097.

A biennial appropriation of $5,750,000 is made in the first year and is for the family homeless prevention and assistance program under Minnesota Statutes, section 462A.204, and is available until June 30, 1999.

Grants to organizations made under the family homeless prevention and assistance program may include grants (1) to organizations providing case management for persons that need assistance to rehabilitate their rent history and find rental housing, and (2) to organizations that will provide, and report on the success or failure of, innovative approaches to housing persons with poor rental histories, including, but not limited to, assisting tenants in correcting tenant screening reports, developing a single application fee and process acceptable to participating landlords, developing a certification of tenants program acceptable to participating landlords, expungement of unlawful detainer records, and creating a bonding program to encourage landlords to accept high-risk tenants with poor rent histories.

$583,000 the first year and $583,000 the second year is for the foreclosure prevention and assistance program under Minnesota Statutes, section 462A.207.

$2,348,000 the first year and $2,348,000 the second year is for the housing trust fund to be deposited in the housing trust fund account created under Minnesota Statutes, section 462A.201, and used for the purposes provided in that section. Of this amount, $550,000 each year must be used for transitional housing.

$8,118,000 the first year and $6,493,000 the second year is for the affordable rental investment fund program under Minnesota Statutes, section 462A.21, subdivision 8b. Of this amount, $1,625,000 the first year is a one-time appropriation and is not added to the agency's permanent base. Of the one-time appropriation, $125,000 the first year is for housing for people with HIV or AIDS outside of the Minneapolis-St. Paul metropolitan statistical area.

To the extent practicable, this appropriation shall be used so that an approximately equal number of housing units are financed in the metropolitan area, as defined in Minnesota Statutes, section 473.121, subdivision 2, and in the nonmetropolitan area.

(a) In the area of the state outside the metropolitan area, the agency must work with groups in the funding regions created under Minnesota Statutes, section 116J.415, to assist the agency in identifying the affordable housing needed in each region in connection with economic development and redevelopment efforts and in establishing priorities for uses of the affordable rental investment fund. The groups must include the regional development commissioners, the regional organization selected under Minnesota Statutes, section 116J.415, the private industry councils, units of local government, community action agencies, the Minnesota housing partnership network groups, local lenders, for-profit and nonprofit developers, and realtors. In addition to priorities developed by the group, the agency must give a preference to economically viable projects in which units of local government, area employers, and the private sector contribute financial assistance.

(b) In the metropolitan area, the commissioner shall collaborate with the metropolitan council to identify the priorities for use of the affordable rental investment fund. Funds distributed in the metropolitan area must be used consistent with the objectives of the metropolitan development guide, adopted under Minnesota Statutes, section 473.145. In addition to the priorities identified in conjunction with the metropolitan council, the agency shall give preference to economically viable projects that:

(1) include a contribution of financial resources from units of local government and area employers;

(2) take into account the availability of transportation in the community; and

(3) take into account the job training efforts in the community.

$1,683,000 the first year and $1,683,000 the second year is for the tribal Indian housing program under Minnesota Statutes, section 462A.07, subdivision 14.

$186,000 the first year and $186,000 the second year is for the Minnesota rural and urban homesteading program under Minnesota Statutes, section 462A.057.

$340,000 the first year and $240,000 the second year is for nonprofit capacity building grants under Minnesota Statutes, section 462A.21, subdivision 3b. Of this amount, $80,000 is for a grant to the Minnesota housing partnership. Of this amount, $150,000 is for equal grants to an organization in each of the six regions established under Minnesota Statutes, section 116J.415, for capacity building grants. Of this amount, $50,000 is for a grant in the metropolitan area, as defined in Minnesota Statutes, section 473.121, subdivision 2. Of this amount, $100,000 the first year is to develop projects under the neighborhood land trust program under Minnesota Statutes, sections 462A.30 and 462A.31, and is available until June 30, 1999. The appropriation in the first year for the neighborhood land trust program is a one-time appropriation and is not added to the agency's permanent base.

$4,368,000 the first year and $3,569,000 the second year is for the community rehabilitation program under Minnesota Statutes, section 462A.206. Of this amount, $250,000 the first year and $250,000 the second year is for full-cycle home ownership and purchase-rehabilitation lending initiatives. Of this amount, $1,218,000 the first year and $419,000 the second year are one-time appropriations and are not added to the agency's permanent base.

Of the one-time appropriation for the community rehabilitation program, $375,000 the first year and $375,000 the second year is for grants to acquire, demolish, and remove substandard multiple-unit residential rental property or acquire, rehabilitate, and reconfigure multiple-unit residential rental property. No more than one-half of money available in a year shall be given to a single project. Priority must be given to projects that result in the creation of housing opportunities that will diversify the housing stock and promote the creation of life-cycle housing opportunities within the community. For the purposes of this paragraph, "substandard multiple-unit residential rental property" is property that meets the definition of Minnesota Statutes 1996, section 273.1316, subdivision 2. Displaced residents must be provided relocation assistance, as provided in Minnesota Statutes, sections 117.50 to 117.56. To the extent allowed by federal law, a public agency administering a federal rent subsidy program shall give priority to persons displaced by grants under this section.

comprehensive community planning process that creates a long-term plan to revitalize a neighborhood and must include compact development with linkages to employment, transit, and affordable life-cycle housing.

Of the one-time appropriation for the community rehabilitation program, up to $550,000 the first year is for a grant to the city of Landfall to purchase a portion of real property in the city owned by the Washington county housing and redevelopment authority. The agency shall not make the grant until the city of Landfall has secured the balance of the funds necessary to purchase the real property from the Washington county housing and redevelopment authority. The agency shall require that the land purchased be restricted to use by current residents or for affordable housing for the term of the bonds issued by the city to purchase the land. "Affordable" is as defined by the metropolitan council for the purposes of the metropolitan livable communities program.

A recipient of funds from the community rehabilitation program for a project in a historic preservation district in St. Paul, must provide assurances to the agency that the project will conform to the written historic preservation guidelines for the district and that the funding recipient will not seek any variance to the guidelines.

$4,287,000 the first year and $4,287,000 the second year is for the housing rehabilitation and accessibility program under Minnesota Statutes, section 462A.05, subdivisions 14a and 15a.

$1,075,000 the first year and $1,075,000 the second year is for the home ownership assistance fund under Minnesota Statutes, section 462A.21, subdivision 8. Of this amount, $175,000 each year is a one-time appropriation and is not added to the agency's permanent base.

$25,000 the first year and $25,000 the second year is for home equity conversion counseling grants under Minnesota Statutes, section 462A.28. The money must be used for a counseling service which only counsels for home equity conversions.

$50,000 is for the costs of the advisory task force on lead hazard reduction, established in article 4, section 1. This is a one-time appropriation and is not added to the agency's permanent base.

$80,000 is for the affordable neighborhood design and development initiative, in Laws 1995, chapter 224, section 122. This is a one-time appropriation and is not added to the agency's permanent base.

Sec. 5. [HEALTHY HOMES PILOT PROJECT.]

technical assistance to be replicated statewide. The project must be implemented in up to four demonstration sites (two urban, one suburban, and one in greater Minnesota) and work with building code officials from the selected municipalities, and selected low-income housing developers and their building contractors. The project must:

(1) provide up to four low-income housing developers with education and implementation guidelines to produce healthy homes, including on-site training during the actual construction phase;

(2) demonstrate the use of mechanical ventilation systems as a strategy for healthy indoor air while allowing for a tightly constructed building, including design, installation, and testing of this approach;

(3) conduct classroom and on-site training at designated building sites to provide inspectors and builders with practical training and experience from the ground up;

(4) conduct integrated performance testing of homes throughout the construction process;

(5) establish a protocol utilizing the results of the pilot project, which can be used statewide as a guideline for healthy home construction;

(6) develop an educational program for homeowners in the pilot communities on how to operate and maintain their homes in order to prevent contributing to indoor air quality problems that lead to unhealthy houses; and

(7) report to the house and senate finance and policy committees with jurisdiction over housing on the progress and results of the pilot project by March 15, 1999.

(b) The commissioner of administration shall make a grant to Sustainable Resources Center, a nonprofit organization with expertise and certification in indoor air quality diagnostics and remediating sick homes, to design, implement, and manage the pilot project.

(c) This section is effective the day following final enactment.

Sec. 6. [METRO STATE UNIVERSITY HOUSING PROJECT.]

The housing finance agency shall consult with the Minnesota state colleges and universities system, the city of St. Paul, the Dayton's Bluff neighborhood housing service, the district 4 council, the east side neighborhood development corporation, the swede hollow land trust organization, east metro women's resource center, and other interested parties concerning the feasibility of a project to acquire and/or rehabilitate existing housing structures for use as rental housing for low-income students at Metro State University. The housing finance agency shall report to the house and senate finance and policy committees with jurisdiction over housing and education during the 1999 legislative session on the feasibility of the project, and identify the barriers to the project and the potential sources of funding.

Sec. 7. Minnesota Statutes 1996, section 462A.05, subdivision 14, is amended to read:

standards. Except for accessibility improvements under this subdivision and subdivisions 14a and 24, clause (1), no secured loan for rehabilitation of any property shall be made in an amount which, with all other existing indebtedness secured by the property, would exceed 110 percent of its market value, as determined by the agency. No loan under this subdivision shall be denied solely because the loan will not be used for placing the residential housing in full compliance with all state, county, or municipal building, housing maintenance, fire, health, or similar codes and standards applicable to housing. Rehabilitation loans shall be made only when the agency determines that financing is not otherwise available, in whole or in part, from private lenders upon equivalent terms and conditions. Accessibility rehabilitation loans authorized under this subdivision may be made to eligible persons and families without limitations relating to the maximum incomes of the borrowers if:

(1) the borrower or a member of the borrower's family requires a level of care provided in a hospital, skilled nursing facility, or intermediate care facility for persons with mental retardation or related conditions;

(2) home care is appropriate; and

(3) the improvement will enable the borrower or a member of the borrower's family to reside in the housing.

Sec. 8. Minnesota Statutes 1997 Supplement, section 462A.05, subdivision 39, is amended to read:

Subd. 39. [EQUITY TAKE-OUT LOANS.] The agency may make equity take-out loans to owners of section 8 project-based and section 236 federally assisted rental property upon which the agency holds a first mortgage. The owner of a section 8 project-based federally assisted rental property must agree to participate in the section 8 federal assistance program and extend the low-income affordability restrictions on the housing for the maximum term of the section 8 federal assistance contract. The owner of section 236 rental property must agree to participate in the section 236 interest reduction payments program, to extend any existing low-income affordability restrictions on the housing, and to extend any rental assistance payments for the maximum term permitted under the agreement for rental assistance payments. The equity take-out loan must be secured by a subordinate loan on the property and may include additional appropriate security determined necessary by the agency.

Sec. 9. Minnesota Statutes 1997 Supplement, section 462A.205, subdivision 1, is amended to read:

Subdivision 1. [FAMILY STABILIZATION DEMONSTRATION PROJECT.] The agency, in consultation with the department of human services, may establish a rent assistance for family stabilization demonstration project. The purpose of the project is to provide rental assistance to families who, at the time of initial eligibility for rental assistance under this section, were receiving public assistance, and had a caretaker parent participating in a self-sufficiency program who was complying with the parent's job search support plan or employment plan and at least one minor child and to provide rental assistance to families who, at the time of initial eligibility for rental assistance under this section, were receiving public assistance, and had a caretaker parent who had earned income and with at least one minor child. The demonstration project is limited to counties with high average housing costs. The program must offer two options: a voucher option and a project-based voucher option. The funds may be distributed on a request for proposal basis.

Sec. 10. Minnesota Statutes 1997 Supplement, section 462A.205, subdivision 2, is amended to read:

Subd. 2. [DEFINITIONS.] For the purposes of this section, the following terms have the meanings given them.

(a) "Caretaker parent" means a parent, relative caretaker, or minor caretaker as defined by the aid to families with dependent children program, sections 256.72 to 256.87, or its successor program.

(b) "County agency" means the agency designated by the county board to implement financial assistance for current public assistance programs and for the Minnesota family investment program statewide.

(d) "Designated rental property" is rental property (1) that is made available by a self-sufficiency program for use by participating families and meets federal section 8 existing quality standards, or (2) that has received federal, state, or local rental rehabilitation assistance since January 1, 1987, and meets federal section 8 existing housing quality standards.

(e) "Earned income" for a family receiving rental assistance under this section means cash or in-kind income earned through the receipt of wages, salary, commissions, profit from employment activities, net profit from self-employment activities, payments made by an employer for regularly accrued vacation or sick leave, and any other profit from activity earned through effort or labor.

(f) "Employment and training service provider" means a provider as defined in chapter 256J.

(g) "Employment plan" means a plan as defined in chapter 256J.

(h) "Family or participating family" means:

(1) a family with a caretaker parent who is participating in a self-sufficiency program complying with the parent's job search support plan or employment plan and with at least one minor child;

(2) a family that, at the time it began receiving rent assistance under this section, had a caretaker parent participating in a self-sufficiency program complying with the parent's job search support plan or employment plan and had at least one minor child;

(3) a family with a caretaker parent who is receiving public assistance and has earned income and with at least one minor child; or

(4) a family that, at the time it began receiving rent assistance under this section, had a caretaker parent who had earned income and at least one minor child; and

(5) a family that has at least one member who is a recipient of public assistance.

(g) (i) "Gross family income" for a family receiving rental assistance under this section means the gross amount of the wages, salaries, social security payments, pensions, workers' compensation, reemployment insurance, the cash assistance portion of public assistance payments, alimony, and child support, and income from assets received by the family.

(h) (j) "Local housing organization" means the agency of local government responsible for administering the Department of Housing and Urban Development's section 8 existing voucher and certificate program or a nonprofit or for-profit organization experienced in housing management.

(i) (k) "Public assistance" means aid to families with dependent children, or its successor program, family general assistance, or its successor program, or family work readiness, or its successor program.

(j) "Self-sufficiency program" means a program operated by an employment and training service provider as defined in chapter 256J, an employability program administered by a community action agency, or courses of study at an accredited institution of higher education pursued with at least half-time student status.

Sec. 11. Minnesota Statutes 1997 Supplement, section 462A.205, subdivision 5, is amended to read:

Sec. 12. Minnesota Statutes 1997 Supplement, section 462A.205, subdivision 6, is amended to read:

Subd. 6. [PROJECT-BASED VOUCHER OPTION.] A portion of the appropriated funds must be made available for a project-based voucher option. Under the project-based voucher option, the Minnesota housing finance agency, in consultation with the department of human services, will award a number of vouchers to self-sufficiency program administrators and to county agencies employment and training service providers for participating families who live in designated rental property that is certified by a local housing organization as meeting section 8 existing housing quality standards.

Sec. 13. Minnesota Statutes 1997 Supplement, section 462A.205, subdivision 9, is amended to read:

Subd. 9. [VOUCHERS FOR FAMILIES WITH A CARETAKER PARENT WITH EARNED INCOME.] (a) Applications to provide the rental assistance for families with a caretaker parent with earned income under either the voucher or project-based option must be submitted jointly by a local housing organization and a county agency an employment and training service provider. The application must include a description of how the caretaker parent participants will be selected.

(b) County agencies Employment and training service providers awarded vouchers must select the caretaker parents with earned income whose families will receive the rental assistance. The county agency employment and training service provider must notify the local housing organization and the agency if:

(1) at the time of annual recertification, the caretaker parent no longer has earned income and is not in compliance with the caretaker parent's employment plan or job search plan; and

(2) for a period of six months after the annual recertification, the caretaker parent has no earned income and has failed to comply with the job search support plan or employment plan.

(c) The county agency employment and training service provider must provide the caretaker parent who, at the time of annual recertification, has no earned income and is not in compliance with the job search support plan or employment plan with the notice specified in Minnesota Rules, part 4900.3379. The county agency employment and training service provider must send a subsequent notice to the caretaker parent, the local housing organization, and the Minnesota housing finance agency 60 days before the termination of rental assistance.

(d) If the local housing organization receives notice from a county agency an employment and training service provider that a caretaker parent whose initial eligibility for rental assistance was based on the receipt of earned income no longer has earned income and for a period of six months after the termination of earned income the annual recertification has failed to comply with the caretaker parent's job search plan or employment plan, the local housing organization must notify the property owner that rental assistance may terminate and notify the caretaker parent of the termination of rental assistance under Minnesota Rules, part 4900.3380.

(e) The county agency employment and training service provider awarded vouchers for families with a caretaker parent with earned income must comply with the provisions of Minnesota Rules, part 4900.3377.

(f) For families whose initial eligibility for rental assistance was based on the receipt of earned income, rental assistance must be terminated under any of the following conditions:

(1) the family is evicted from the property for cause;

(2) the caretaker parent no longer has earned income and, after six months after an annual recertification, is not in compliance with the parent's job search or employment plan;

(3) 30 percent of the family's gross income equals or exceeds the amount of the housing costs for two or more consecutive months;

(5) the rental unit no longer meets federal section 8 existing housing quality standards, the owner refused to make necessary repairs or alterations to bring the rental unit into compliance within a reasonable time, and the caretaker parent refused to relocate to a qualifying unit.

(g) If a county agency an employment and training service provider determines that a caretaker parent no longer has earned income and is not in compliance with the parent's job search or employment plan, the county agency employment and training service provider must notify the caretaker parent of that determination. The notice must be in writing and must explain the effect of not having earned income or failing to be in compliance with the job search or employment plan will have on the rental assistance. The notice must:

(1) state that rental assistance will end six months after earned income has ended an annual recertification;

(2) specify the date the rental assistance will end;

(3) explain that after the date specified, the caretaker parent will be responsible for the total housing costs;

(4) describe the actions the caretaker parent may take to avoid termination of rental assistance; and

(5) inform the caretaker parent of the caretaker parent's responsibility to notify the county agency employment and training service provider if the caretaker parent has earned income.

Sec. 14. [462A.2066] [HOMEOWNERSHIP ZONES PROGRAM.]

Subdivision 1. [ACCOUNT.] The homeownership zones fund account is established as a separate account in the housing development fund. Money in the account is appropriated to the agency for the purposes specified in this section.

Subd. 2. [COMPLEMENTARY TO FEDERAL PROGRAM.] In implementing the state homeownership zones program, the agency shall follow, to the extent practicable and not inconsistent with provisions in this section, the federal program guidelines for homeownership zones, established in the Federal Register, volume 62, number 129, July 7, 1997.

Subd. 3. [ELIGIBILITY; GRANTS AND LOANS.] The agency may make grants or loans to cities, counties, or nonprofit organizations for the purposes of this section. In awarding grants and loans, the agency shall take into account the amount of money that the applicant leverages from other sources, including the federal homeownership zones program. The applicant must indicate in its application how the proposed project is consistent with the consolidated housing plan. Not less than ten days before submitting its application to the agency, a county or nonprofit organization must notify the city in which the project will be located of its intent to apply for funds. The city may submit to the agency its written comments on the county's or nonprofit organization's application and the agency shall consider the city's comments in reviewing the application.

Subd. 4. [SPECIAL PROJECT CHARACTERISTICS.] A homeownership zone project may include scattered sites of less than 300 units in an identified zone as well as a single contiguous tract. A homeownership zone project must incorporate energy conservation design and measures into the project.

Sec. 15. Minnesota Statutes 1996, section 462A.21, is amended by adding a subdivision to read:

Subd. 24. [HOMEOWNERSHIP ZONES.] The agency may spend money for the purposes of the homeownership zones program under section 462A.2066, and may pay the costs and expenses necessary and incidental to the development and operation of the program. It may approve allocations of more than $300,000 to individual projects.

Sec. 16. Minnesota Statutes 1996, section 462A.21, is amended by adding a subdivision to read:

Sec. 17. Minnesota Statutes 1996, section 462A.222, subdivision 3, is amended to read:

Subd. 3. [ALLOCATION PROCEDURE.] (a) Projects will be awarded tax credits in three competitive rounds on an annual basis. The date for applications for each round must be determined by the agency. No allocating agency may award tax credits prior to the application dates established by the agency.

(b) Each allocating agency must meet the requirements of section 42(m) of the Internal Revenue Code of 1986, as amended through December 31, 1989, for the allocation of tax credits and the selection of projects.

(c) For projects that are eligible for an allocation of credits pursuant to section 42(h)(4) of the Internal Revenue Code of 1986, as amended, tax credits may only be allocated if the project satisfies the requirements of the allocating agency's qualified allocation plan. For projects that are eligible for an allocation of credits pursuant to section 42(h)(4) of the Internal Revenue Code of 1986, as amended, for which the agency is the issuer of the bonds for the project, or the issuer of the bonds for the project is located outside the jurisdiction of a city or county that has received reserved tax credits, the applicable allocation plan is the agency's qualified allocation plan.

(d) For applications submitted for the first round, an allocating agency may allocate tax credits only to the following types of projects:

(1) in the metropolitan area:

(i) new construction or substantial rehabilitation of projects in which, for the term of the extended use period, at least 75 percent of the total tax credit units are single-room occupancy, efficiency, or one bedroom units and which are affordable by households whose income does not exceed 30 percent of the median income;

(ii) new construction or substantial rehabilitation family housing projects that are not restricted to persons who are 55 years of age or older and in which, for the term of the extended use period, at least 75 percent of the tax credit units contain two or more bedrooms and at least one-third of the 75 percent contain three or more bedrooms; or

(iii) substantial rehabilitation projects in neighborhoods targeted by the city for revitalization;

(2) outside the metropolitan area, projects which meet a locally identified housing need and which are in short supply in the local housing market as evidenced by credible data submitted with the application;

(3) projects that are not restricted to persons of a particular age group and in which, for the term of the extended use period, a percentage of the units are set aside and rented to persons:

(i) with a serious and persistent mental illness as defined in section 245.462, subdivision 20, paragraph (c);

(ii) with a developmental disability as defined in United States Code, title 42, section 6001, paragraph (5), as amended through December 31, 1990;

(iii) who have been assessed as drug dependent persons as defined in section 254A.02, subdivision 5, and are receiving or will receive care and treatment services provided by an approved treatment program as defined in section 254A.02, subdivision 2;

(iv) with a brain injury as defined in section 256B.093, subdivision 4, paragraph (a); or

(v) with permanent physical disabilities that substantially limit one or more major life activities, if at least 50 percent of the units in the project are accessible as provided under Minnesota Rules, chapter 1340;

(4) projects, whether or not restricted to persons of a particular age group, which preserve existing subsidized housing which is subject to prepayment if the use of tax credits is necessary to prevent conversion to market rate use; or

(e) Before the date for applications for the second round, the allocating agencies other than the agency shall return all uncommitted and unallocated tax credits to the pool from which they were allocated, along with copies of any allocation or commitment. In the second round, the agency shall allocate the remaining credits from the regional pools to projects from the respective regions.

(f) In the third round, all unallocated tax credits must be transferred to a unified pool for allocation by the agency on a statewide basis.

(g) Unused portions of the state ceiling for low-income housing tax credits reserved to cities and counties for allocation may be returned at any time to the agency for allocation.

(h) If an allocating agency determines, at any time after the initial commitment or allocation for a specific project, that a project is no longer eligible for all or a portion of the low-income housing tax credits committed or allocated to the project, the credits must be transferred to the agency to be reallocated pursuant to the procedures established in paragraphs (e) to (g); provided that if the tax credits for which the project is no longer eligible are from the current year's annual ceiling and the allocating agency maintains a waiting list, the allocating agency may continue to commit or allocate the credits until not later than October 1, at which time any uncommitted credits must be transferred to the agency.

Sec. 18. [471.9997] [FEDERALLY ASSISTED RENTAL HOUSING; IMPACT STATEMENT.]

At least 12 months before termination of participation in a federally assisted rental housing program, including project-based section 8 and section 236 rental housing, the owner of the federally assisted rental housing must submit a statement regarding the impact of termination on the residents of the rental housing to the governing body of the local government unit in which the housing is located. The impact statement must identify the number of units that will no longer be subject to rent restrictions imposed by the federal program, the estimated rents that will be charged as compared to rents charged under the federal program, and actions the owner will take to assist displaced tenants in obtaining other housing. A copy of the impact statement must be provided to each resident of the affected building, the Minnesota housing finance agency, and, if the property is located in the metropolitan area as defined in section 473.121, subdivision 2, the metropolitan council.

Sec. 19. Minnesota Statutes 1996, section 474A.061, subdivision 2a, is amended to read:

Subd. 2a. [HOUSING POOL ALLOCATION.] (a) On the first business day that falls on a Monday of the calendar year and the first Monday in February, the commissioner shall allocate available bonding authority in the housing pool to applications received by the Monday of the previous week for residential rental projects that are not restricted to persons who are 55 years of age or older and that meet the eligibility criteria under section 474A.047, except that allocations may be made to projects that are restricted to persons who are 55 years of age or older if the project preserves existing federally assisted rental housing. Projects that preserve existing federally assisted rental housing shall be allocated available bonding authority in the housing pool prior to the allocation of available bonding authority to other eligible residential rental projects. If an issuer that receives an allocation under this paragraph does not issue obligations equal to all or a portion of the allocation received within 120 days of the allocation or returns the allocation to the commissioner, the amount of the allocation is canceled and returned for reallocation through the housing pool.

(b) After February 1, and through February 15, the Minnesota housing finance agency may accept applications from cities for single-family housing programs which meet program requirements as follows:

(1) the housing program must meet a locally identified housing need and be economically viable;

(2) the adjusted income of home buyers may not exceed the greater of the agency's income limits or 80 percent of the area median income as published by the Department of Housing and Urban Development;

(3) house price limits may not exceed:

(i) the greater of agency house price limits or the federal price limits for housing up to a maximum of $95,000; or

Data establishing the median purchase price in the city must be included in the application by a city requesting house price limits higher than the housing finance agency's house price limits; and

(4) an application deposit equal to one percent of the requested allocation must be submitted before the agency forwards the list specifying the amounts allocated to the commissioner under paragraph (c). The agency shall submit the city's application and application deposit to the commissioner when requesting an allocation from the housing pool.

Applications by a consortium shall include the name of each member of the consortium and the amount of allocation requested by each member.

The Minnesota housing finance agency may accept applications from June 15 through June 30 from cities for single-family housing programs which meet program requirements specified under clauses (1) to (4) if bonding authority is available in the housing pool. The agency must allot available bonding authority. For purposes of paragraphs (a) to (g), "city" means a county or a consortium of local government units that agree through a joint powers agreement to apply together for single-family housing programs, and has the meaning given it in section 462C.02, subdivision 6. "Agency" means the Minnesota housing finance agency.

(c) The total amount of allocation for mortgage bonds for one city is limited to the lesser of: (i) the amount requested, or (ii) the product of the total amount available for mortgage bonds from the housing pool, multiplied by the ratio of each applicant's population as determined by the most recent estimate of the city's population released by the state demographer's office to the total of all the applicants' population, except that each applicant shall be allocated a minimum of $100,000 regardless of the amount requested or the amount determined under the formula in clause (ii). If a city applying for an allocation is located within a county that has also applied for an allocation, the city's population will be deducted from the county's population in calculating the amount of allocations under this paragraph.

Upon determining the amount of each applicant's allocation, the agency shall forward a list specifying the amounts allotted to each application and application deposit checks to the commissioner.

(d) The agency may issue bonds on behalf of participating cities. The agency shall request an allocation from the commissioner for all applicants who choose to have the agency issue bonds on their behalf and the commissioner shall allocate the requested amount to the agency. The agency may request an allocation at any time after the first Monday in February and through the last Monday in July, but may request an allocation no later than the last Monday in July. The commissioner shall return any application deposit to a city that paid an application deposit under paragraph (b), clause (4), but was not part of the list forwarded to the commissioner under paragraph (c).

(e) A city may choose to issue bonds on its own behalf or through a joint powers agreement or may use bonding authority for mortgage credit certificates and may request an allocation from the commissioner. If the total amount requested by all applicants exceeds the amount available in the pool, the city may not receive a greater allocation than the amount it would have received under the list forwarded by the Minnesota housing finance agency to the commissioner. No city may request or receive an allocation from the commissioner until the list under paragraph (c) has been forwarded to the commissioner. A city must request an allocation from the commissioner no later than 14 days before the unified pool is created pursuant to section 474A.091, subdivision 1. On and after the first Monday in February and through the last Monday in July, no city may receive an allocation from the housing pool which has not first applied to the Minnesota housing finance agency. The commissioner shall allocate the requested amount to the city or cities subject to the limitations under this paragraph.

If a city issues mortgage bonds from an allocation received under this paragraph, the issuer must provide for the recycling of funds into new loans. If the issuer is not able to provide for recycling, the issuer must notify the commissioner in writing of the reason that recycling was not possible and the reason the issuer elected not to have the Minnesota housing finance agency issue the bonds. "Recycling" means the use of money generated from the repayment and prepayment of loans for further eligible loans or for the redemption of bonds and the issuance of current refunding bonds.

(g) A city that does not use at least 50 percent of their allotment by the date applications are due for the first allocation that is made from the housing pool for single-family housing programs in the immediately succeeding calendar year may not apply to the housing pool for a single-family mortgage bond or mortgage credit certificate program allocation or receive an allotment from the housing pool in the succeeding two calendar years. Each local government unit in a consortium must meet the requirements of this paragraph.

Sec. 20. Laws 1997, Second Special Session chapter 2, section 4, subdivision 3, is amended to read:

Subd. 3. Community Rehabilitation Fund Program 4,500,000

This is a one-time appropriation from the general fund for the community rehabilitation fund program under Minnesota Statutes, section 462A.206. Of this amount, up to $500,000 is available for grants for damages occurring after June 10, 1997, in an area designated under a presidential declaration of major disaster. Pursuant to a plan approved by the agency, grants or loans may be made without regard to the income of the borrower in communities where at least 20 percent of the housing stock is subject to acquisition and buyout as a result of the 1997 flooding. The grants or loans made without regard to the borrower's income shall not exceed the maximum grant or loan amount available to buyout households. This appropriation is available until expended."

Delete the title and insert:

"A bill for an act relating to economic development; appropriating money for economic development, housing, and related purposes; modifying provisions of a study; requiring reports; establishing pilot projects; providing an exemption from grant limits; defining terms; setting requirements for wastewater financial assistance; modifying loan criteria; modifying supplemental assistance provisions; establishing a revolving loan fund; modifying warranty provisions; requiring builders to make certain disclosures; establishing a public education campaign for homeowners' rights; providing for an employee notice of rights; modifying false statement provisions; providing exemptions from reemployment insurance requirements; modifying labor provisions for city attorneys; modifying reinvestment program provisions; extending boundaries; modifying a public utility mandate; creating and changing programs and projects; imposing terms and conditions; amending Minnesota Statutes 1996, sections 16B.06, subdivision 2; 16B.08, subdivision 7; 16B.65, subdivision 7; 115C.09, by adding a subdivision; 116.182, subdivision 1, and by adding a subdivision; 116J.415, subdivision 5; 116J.553, subdivision 2; 116L.03, subdivision 5; 179A.16, subdivisions 1, 3, 9, and by adding a subdivision; 179A.18, subdivision 1; 181.64; 216B.2423, subdivision 1; 326.87, subdivision 2; 326.975, subdivision 1; 327A.01, subdivisions 2 and 5; 327A.02, subdivisions 1 and 3; 327A.03; 383B.79, subdivision 1, and by adding a subdivision; 446A.072, subdivisions 2 and 4; 462A.05, subdivision 14; 462A.21, by adding subdivisions; 462A.222, subdivision 3; 469.303; 474A.061, subdivision 2a; 541.051, subdivisions 1 and 4; Minnesota Statutes 1997 Supplement, sections 115C.09, subdivision 3f; 414.11; 462A.05, subdivision 39; and 462A.205, subdivisions 1, 2, 5, 6, and 9; Laws 1997, chapter 85, article 1, section 39, subdivision 4; Laws 1997, chapter 200, article 1, sections 2, subdivision 2; 6; 12, subdivision 2; and 33, subdivision 1, and by adding subdivisions; Laws 1997, Second Special Session chapter 2, section 4, subdivision 3; proposing coding for new law in Minnesota Statutes, chapters 116J; 181; 462A; and 471; repealing Minnesota Statutes 1996, section 116C.80; Minnesota Statutes 1997 Supplement, section 446A.072, subdivision 4a; Laws 1991, chapter 275, section 3."

With the recommendation that when so amended the bill pass.

The report was adopted.

H. F. No. 2507 was read for the second time.

S. F. Nos. 3346, 3353 and 3367 were read for the second time.

The following House Files were introduced:

Olson, M.; Kuisle; Molnau and Stang introduced:

H. F. No. 3818, A bill for an act relating to insurance; automobile; requiring a premium discount for seat belt use; proposing coding for new law in Minnesota Statutes, chapter 65B.

The bill was read for the first time and referred to the Committee on Financial Institutions and Insurance.

Paulsen; Commers; Anderson, B.; Krinkie and Molnau introduced:

H. F. No. 3819, A bill for an act relating to state government; requiring deposit in the general fund of certain lawsuit proceeds.

The bill was read for the first time and referred to the Committee on Ways and Means.

Milbert introduced:

H. F. No. 3820, A bill for an act relating to taxation; exempting certain personal property from taxation; providing for state aid payments to local governments; requiring rate reductions for customers of rate regulated utilities; providing for state guarantee of local bond obligations; appropriating money; amending Minnesota Statutes 1996, sections 124A.24; 272.02, by adding a subdivision; and 273.1398, subdivision 6, and by adding subdivisions; Minnesota Statutes 1997 Supplement, sections 272.02, subdivision 1; and 273.13, subdivision 31; proposing coding for new law in Minnesota Statutes, chapters 216B; and 475A.

The bill was read for the first time and referred to the Committee on Taxes.

The following messages were received from the Senate:

Mr. Speaker:

I hereby announce the passage by the Senate of the following House File, herewith returned:

H. F. No. 3095, A bill for an act relating to veterans; designating a date in February as Chaplains Day in honor of four United States army chaplains who sacrificed their lives at sea for other service members; proposing coding for new law in Minnesota Statutes, chapter 10.

Mr. Speaker:

I hereby announce that the Senate refuses to concur in the House amendments to the following Senate File:

S. F. No. 3298, A bill for an act relating to the organization and operation of state government; appropriating money for transportation, public safety, and other purposes; redistributing five percent of highway user tax distribution fund; creating flexible highway, town road, and town bridge accounts; exempting air ambulance aircraft from registration and tax; establishing midtown planning and coordination board; establishing dealer licensing and motor vehicle registration enforcement task force; requiring vehicle registration and insurance study; amending Minnesota Statutes 1996, sections 161.081, subdivision 1, and by adding a subdivision; 161.082, subdivisions 1 and 2a; 162.081, subdivision 1; 169.733, subdivision 1; 169.825, subdivision 8; and 360.653; Laws 1997, chapter 159, article 1, section 2, subdivision 2; proposing coding for new law in Minnesota Statutes, chapter 473.

The Senate respectfully requests that a Conference Committee be appointed thereon. The Senate has appointed as such committee:

Mses. Johnson, J. B.; Flynn and Hanson; Mr. Ourada and Mrs. Robling.

Said Senate File is herewith transmitted to the House with the request that the House appoint a like committee.

Patrick E. Flahaven, Secretary of the Senate

Lieder moved that the House accede to the request of the Senate and that the Speaker appoint a Conference Committee of 5 members of the House to meet with a like committee appointed by the Senate on the disagreeing votes of the two houses on S. F. No. 3298. The motion prevailed.

Mr. Speaker:

I hereby announce that the Senate refuses to concur in the House amendments to the following Senate File:

S. F. No. 3297, A bill for an act relating to appropriations; appropriating money for higher education and related purposes, with certain conditions; requiring a study; amending Minnesota Statutes 1996, section 136A.101, subdivision 7b; Minnesota Statutes 1997 Supplement, section 136A.121, subdivision 5; Laws 1996, chapter 366, section 6, as amended; Laws 1997, chapter 183, article 1, section 2, subdivisions 6, 9, and 13; and article 2, section 19.

The Senate respectfully requests that a Conference Committee be appointed thereon. The Senate has appointed as such committee:

Messrs. Stumpf, Solon and Larsen; Ms. Wiener and Mr. Kleis.

Said Senate File is herewith transmitted to the House with the request that the House appoint a like committee.

Patrick E. Flahaven, Secretary of the Senate

Mr. Speaker:

I hereby announce that the Senate refuses to concur in the House amendments to the following Senate File:

S. F. No. 2532, A bill for an act relating to children; clarifying certain terms and applicability of certain programs; providing for licensing assistance, outreach, and training; allowing grants for school-age child care programs; allowing certain grants for statewide adult basic education; changing child care licensing requirements for employers; providing for review of certain orders by the commissioner of children, families, and learning; establishing a cash flow account for energy assistance funds; allowing migrant and seasonal farmworkers to carry out community action programs; changing provisions for family day care licensure; appropriating money; amending Minnesota Statutes 1996, sections 119B.10, by adding a subdivision; 119B.13, subdivision 3; 119B.18, subdivision 2, and by adding subdivisions; 119B.19, subdivisions 1, 4, and by adding subdivisions; 120.1701, subdivision 5; 121.8355, by adding a subdivision; 124.26, subdivision 1c; 245A.14, subdivision 4; 256.045, subdivision 6, and by adding a subdivision; 268.52, subdivisions 1 and 2; and 268.54, subdivision 2; Minnesota Statutes 1997 Supplement, sections 119B.01, subdivision 16; 119B.061, subdivisions 1, 2, 3, and 4; 119B.075; 119B.10, subdivision 1; 119B.13, subdivision 6; 119B.21, subdivisions 2, 4, 5, and 11; 256.045, subdivision 7; 268.53, subdivision 5; and 466.01, subdivision 1; Laws 1997, chapters 162, article 1, section 18, subdivision 8; article 3, section 8, subdivision 3; and article 4, section 63, subdivisions 2 and 3; 248, section 47, subdivision 1; proposing coding for new law in Minnesota Statutes, chapters 119B; and 268.

The Senate respectfully requests that a Conference Committee be appointed thereon. The Senate has appointed as such committee:

Ms. Piper; Messrs. Marty, Foley and Terwilliger; and Ms. Lesewski.

Said Senate File is herewith transmitted to the House with the request that the House appoint a like committee.

Patrick E. Flahaven, Secretary of the Senate

Kinkel moved that the House accede to the request of the Senate and that the Speaker appoint a Conference Committee of 5 members of the House to meet with a like committee appointed by the Senate on the disagreeing votes of the two houses on S. F. No. 2532. The motion prevailed.

Mr. Speaker:

I hereby announce the passage by the Senate of the following Senate File, herewith transmitted:

S. F. No. 2892.

Patrick E. Flahaven, Secretary of the Senate

S. F. No. 2892, A bill for an act relating to state lands; modifying the terms of a tax-forfeited land sale in Carlton county; authorizing the private sale of certain land in Aitkin county; authorizing the conveyance of certain state land to the city of Faribault; authorizing the public sale of certain tax-forfeited land that borders public water in Douglas county; amending Laws 1997, chapter 207, section 7.

The bill was read for the first time and referred to the Committee on Environment and Natural Resources.

Pursuant to rule 1.10 Solberg requested immediate consideration of S. F. No. 3345.

S. F. No. 3345 was reported to the House.

Broecker, Stanek, McGuire, Larsen and Weaver moved to amend S. F. No. 3345, the second unofficial engrossment, as follows:

Page 9, line 25, after the period, insert "The commissioner shall ensure that each local law enforcement agency receiving a grant has made a good faith effort to provide a funding match from private donations. The commissioner has discretion to award the grant even if the match is not available."

The motion prevailed and the amendment was adopted.

Larsen, Weaver, Murphy, Biernat, Dawkins, Broecker, Stanek, Sykora, Mullery, Chaudhary, Vandeveer, Paymar and Leighton moved to amend S. F. No. 3345, the second unofficial engrossment, as amended, as follows:

Page 13, after line 26, insert:

"Sec. 16. [REVIEW OF CRIMINAL JUSTICE PROJECTS AND PROGRAMS.]

The legislative audit commission is requested to direct the legislative auditor to conduct a review of the criminal justice projects and criminal justice programs that have received an appropriation from the legislature at any time from 1989 to 1998. This review must include, for each program:

(1) a description of the project or program;

(2) a summary of the project's or program's stated objectives at the time each appropriation was made;

(3) a summary of the project's or program's stated objectives after the appropriation was made, if different than the project's or program's stated objectives at the time each appropriation was made;

(4) a record showing the appropriation the project or program received from the legislature each year, if any, and a record showing the total amount of appropriations received in the past ten years;

(5) an evaluation of each project's or program's performance, including, but not limited to, the success or failure of the program in meeting the objectives the project or program identified at the time the appropriation was made; and

(6) any other related issues that the auditor believes will contribute to an accurate assessment of projects and programs that have received appropriations from the legislature.

The review also shall include information on the number of projects and programs receiving an appropriation each year, the amount of money appropriated for these projects and programs each year, and the total amount of money appropriated for these projects and programs in the past ten years.

If the commission directs the auditor to conduct this study, the auditor shall report its findings to the chairs of the house and senate committees and divisions with jurisdiction over criminal justice policy and funding by January 15, 1999."

Renumber the sections in sequence and correct internal references

Amend the title accordingly

Sviggum moved to amend S. F. No. 3345, the second unofficial engrossment, as amended, as follows:

Page 6, delete lines 42 to 55

Page 7, delete lines 9 to 15

Page 9, delete lines 19 to 21

Adjust the subtotals and totals accordingly

A roll call was requested and properly seconded.

The question was taken on the Sviggum amendment and the roll was called. There were 56 yeas and 76 nays as follows:

Those who voted in the affirmative were:

Abrams	Dehler	Knight	Molnau	Rostberg	Van Dellen
Anderson, B.	Dempsey	Knoblach	Mulder	Seagren	Weaver
Bettermann	Erhardt	Kraus	Ness	Seifert	Westfall
Bishop	Erickson	Krinkie	Nornes	Smith	Westrom
Boudreau	Finseth	Kuisle	Olson, M.	Stang	Wolf
Bradley	Goodno	Leppik	Osskopp	Sviggum	Workman
Clark, J.	Gunther	Lindner	Paulsen	Swenson, H.
Commers	Harder	Macklin	Pawlenty	Sykora
Daggett	Holsten	Mares	Reuter	Tingelstad
Davids	Kielkucki	McElroy	Rifenberg	Tompkins

Those who voted in the negative were:

Anderson, I.	Folliard	Johnson, R.	Mariani	Paymar	Stanek
Bakk	Garcia	Juhnke	Marko	Pelowski	Tomassoni
Biernat	Greenfield	Kahn	McCollum	Peterson	Trimble
Broecker	Greiling	Kalis	McGuire	Pugh	Tuma
Carlson	Haas	Kelso	Milbert	Rest	Tunheim
Chaudhary	Hasskamp	Kinkel	Mullery	Rhodes	Vandeveer
Clark, K.	Hausman	Koskinen	Munger	Rukavina	Wagenius
Dawkins	Hilty	Kubly	Murphy	Schumacher	Wejcman
Delmont	Huntley	Larsen	Opatz	Sekhon	Wenzel
Dorn	Jaros	Leighton	Orfield	Skare	Winter
Entenza	Jefferson	Lieder	Osthoff	Skoglund	Spk. Carruthers
Evans	Jennings	Long	Otremba, M.	Slawik
Farrell	Johnson, A.	Mahon	Ozment	Solberg

The motion did not prevail and the amendment was not adopted.

Weaver; Molnau; Holsten; Harder; Macklin; Long; Broecker; Workman; Rukavina; Van Dellen; Tingelstad; Paulsen; Nornes; Daggett; Rifenberg; Tomassoni; Larsen; Delmont; Marko; Milbert; Johnson, A.; Haas and Swenson, H., moved to amend S. F. No. 3345, the second unofficial engrossment, as amended, as follows:

Page 161, after line 4, insert:

Subd. 3a. [CERTAIN PUBLIC ACCOMMODATIONS.] It is an unfair discriminatory practice to discriminate against an individual with respect to access or admission to a place of public accommodation solely because of the individual's mode of transportation or solely because the individual has, on the individual's clothing, the name of an organization or association other than a criminal gang as defined in section in section 609.229, subdivision 1."

Renumber the sections in sequence and correct internal references

Amend the title accordingly

A roll call was requested and properly seconded.

Skoglund raised a point of order pursuant to rule 3.09 that the Weaver et al amendment was not in order. The Speaker ruled the point of order not well taken and the Weaver et al amendment in order.

The question recurred on the Weaver et al amendment and the roll was called. There were 129 yeas and 1 nay as follows:

Those who voted in the affirmative were:

Abrams	Erhardt	Johnson, R.	Mares	Paymar	Sykora
Anderson, B.	Erickson	Juhnke	Mariani	Pelowski	Tingelstad
Anderson, I.	Evans	Kahn	Marko	Peterson	Tomassoni
Bakk	Farrell	Kalis	McCollum	Pugh	Tompkins
Bettermann	Finseth	Kelso	McElroy	Rest	Trimble
Biernat	Folliard	Kielkucki	McGuire	Reuter	Tuma
Bishop	Garcia	Kinkel	Milbert	Rhodes	Tunheim
Boudreau	Goodno	Knight	Molnau	Rifenberg	Van Dellen
Bradley	Greenfield	Knoblach	Mulder	Rostberg	Vandeveer
Broecker	Greiling	Koskinen	Mullery	Rukavina	Wagenius
Carlson	Gunther	Kraus	Munger	Schumacher	Weaver
Chaudhary	Haas	Krinkie	Murphy	Seagren	Wejcman
Clark, J.	Harder	Kubly	Ness	Seifert	Wenzel
Clark, K.	Hasskamp	Kuisle	Nornes	Sekhon	Westfall
Commers	Hausman	Larsen	Olson, M.	Skare	Westrom
Daggett	Hilty	Leighton	Opatz	Slawik	Winter
Davids	Holsten	Leppik	Osskopp	Smith	Wolf
Dehler	Huntley	Lieder	Osthoff	Solberg	Workman
Delmont	Jaros	Lindner	Otremba, M.	Stanek	Spk. Carruthers
Dempsey	Jefferson	Long	Ozment	Stang
Dorn	Jennings	Macklin	Paulsen	Sviggum
Entenza	Johnson, A.	Mahon	Pawlenty	Swenson, H.

Those who voted in the negative were:

Skoglund

Wenzel, Garcia, Slawik, Evans, Koskinen, Schumacher, Bakk and Otremba, M., moved to amend S. F. No. 3345, the second unofficial engrossment, as amended, as follows:

Page 16, after line 11, insert:

"Sec. 4. Minnesota Statutes 1996, section 609.184, subdivision 2, is amended to read:

Subd. 2. [LIFE WITHOUT RELEASE.] The court shall sentence a person to life imprisonment without possibility of release under the following circumstances:

(1) the person is convicted of first degree murder under section 609.185, clause (2) or (4); or

(2) the person is convicted of committing first degree murder in the course of a kidnapping under section 609.185, clause (3); or

(3) the person is convicted of first degree murder under section 609.185, clause (1), (3), (5), or (6), and the court determines on the record at the time of sentencing that the person has one or more previous convictions for a heinous crime."

Renumber the sections in sequence and correct internal references

Amend the title accordingly

A roll call was requested and properly seconded.

The question was taken on the Wenzel et al amendment and the roll was called. There were 127 yeas and 4 nays as follows:

Those who voted in the affirmative were:

Abrams	Erhardt	Juhnke	Marko	Pelowski	Tingelstad
Anderson, B.	Erickson	Kalis	McCollum	Peterson	Tomassoni
Anderson, I.	Evans	Kelso	McElroy	Pugh	Tompkins
Bakk	Farrell	Kielkucki	McGuire	Rest	Trimble
Bettermann	Finseth	Kinkel	Milbert	Reuter	Tuma
Biernat	Folliard	Knight	Molnau	Rhodes	Tunheim
Bishop	Garcia	Knoblach	Mulder	Rifenberg	Van Dellen
Boudreau	Goodno	Koskinen	Mullery	Rostberg	Vandeveer
Bradley	Greenfield	Kraus	Munger	Schumacher	Wagenius
Broecker	Greiling	Krinkie	Murphy	Seagren	Weaver
Carlson	Gunther	Kubly	Ness	Seifert	Wenzel
Chaudhary	Haas	Kuisle	Nornes	Sekhon	Westfall
Clark, J.	Harder	Larsen	Olson, M.	Skare	Westrom
Clark, K.	Hasskamp	Leighton	Opatz	Skoglund	Winter
Commers	Hilty	Leppik	Orfield	Slawik	Wolf
Daggett	Holsten	Lieder	Osskopp	Smith	Workman
Davids	Huntley	Lindner	Osthoff	Solberg	Spk. Carruthers
Dehler	Jaros	Long	Otremba, M.	Stanek
Delmont	Jefferson	Macklin	Ozment	Stang
Dempsey	Jennings	Mahon	Paulsen	Sviggum
Dorn	Johnson, A.	Mares	Pawlenty	Swenson, H.
Entenza	Johnson, R.	Mariani	Paymar	Sykora

Those who voted in the negative were:

Dawkins	Kahn	Rukavina	Wejcman

Rukavina and Gunther offered an amendment to S. F. No. 3345, the second unofficial engrossment, as amended.

Skoglund raised a point of order pursuant to rule 3.09 that the Rukavina and Gunther amendment was not in order. The Speaker ruled the point of order well taken and the Rukavina and Gunther amendment out of order.

Skoglund moved to amend S. F. No. 3345, the second unofficial engrossment, as amended, as follows:

Page 28, after line 17, insert:

"Sec. 22. Laws 1997, chapter 239, article 3, section 26, is amended to read:

Sec. 26. EFFECTIVE DATE.

Sections 1 to 20, and 25 are effective August 1, 1997, and apply to crimes committed on or after that date. Sections 21 to 23 are effective August 1, 1997, and apply to proceedings conducted on or after that date, even if the crime was committed before that date. Section 24 is effective July 1, 1997."

Renumber the sections in sequence and correct internal references

Amend the title accordingly

The motion prevailed and the amendment was adopted.

Marko; Weaver; Rukavina; Molnau; Schumacher; Johnson, A.; Tomassoni; Bakk; Workman; Delmont; Swenson, H.; Tuma; Juhnke; Davids; Hasskamp; Milbert and Pugh offered an amendment to S. F. No. 3345, the second unofficial engrossment, as amended.

Dawkins raised a point of order pursuant to rule 3.09 that the Marko et al amendment was not in order. The Speaker ruled the point of order well taken and the Marko et al amendment out of order.

subdivision 2; 168.042, subdivision 11a; 171.29, subdivision 2; 241.277, subdivisions 6, 9, and by adding a subdivision; 357.021, subdivision 2; 363.073, subdivision 1; 401.13; 609.101, subdivision 5; 609.113, subdivision 3; and 611.25, subdivision 3; amending Laws 1996, chapter 408, article 2, section 16; and Laws 1997, chapter 239, article 1, sections 7 and 12; proposing coding for new law in Minnesota Statutes, chapters 169; 241; 299C; 609; and 611A; repealing Minnesota Statutes 1996, sections 609.101, subdivision 1; 609.563, subdivision 2; 611.216, subdivision 1a; 611.26, subdivision 9; 611.27, subdivision 2; and 626.861; Minnesota Statutes 1997 Supplement, section 611.27, subdivision 4.

The bill was read for the third time, as amended, and placed upon its final passage.

The question was taken on the passage of the bill and the roll was called. There were 74 yeas and 56 nays as follows:

Those who voted in the affirmative were:

Abrams	Dorn	Holsten	Long	Pugh	Tingelstad
Anderson, I.	Entenza	Jaros	Macklin	Rest	Tunheim
Bettermann	Erhardt	Jennings	Mares	Rhodes	Vandeveer
Biernat	Evans	Johnson, A.	Marko	Schumacher	Wagenius
Boudreau	Farrell	Johnson, R.	McCollum	Seagren	Weaver
Broecker	Finseth	Juhnke	McGuire	Seifert	Wenzel
Carlson	Folliard	Kalis	Mullery	Sekhon	Winter
Chaudhary	Goodno	Kinkel	Murphy	Skare	Wolf
Clark, J.	Greenfield	Knoblach	Opatz	Skoglund	Spk. Carruthers
Clark, K.	Haas	Koskinen	Otremba, M.	Slawik
Daggett	Harder	Kubly	Pawlenty	Smith
Delmont	Hasskamp	Larsen	Pelowski	Solberg
Dempsey	Hilty	Lieder	Peterson	Stanek

Those who voted in the negative were:

Anderson, B.	Gunther	Kuisle	Munger	Rifenberg	Tuma
Bakk	Hausman	Leighton	Ness	Rostberg	Van Dellen
Bradley	Huntley	Leppik	Nornes	Rukavina	Wejcman
Commers	Jefferson	Lindner	Orfield	Stang	Westfall
Davids	Kahn	Mahon	Osskopp	Sviggum	Westrom
Dawkins	Kelso	Mariani	Osthoff	Swenson, H.	Workman
Dehler	Kielkucki	McElroy	Ozment	Sykora
Erickson	Knight	Milbert	Paulsen	Tomassoni
Garcia	Kraus	Molnau	Paymar	Tompkins
Greiling	Krinkie	Mulder	Reuter	Trimble

The bill was passed, as amended, and its title agreed to.

Winter from the Committee on Rules and Legislative Administration, pursuant to rule 1.09, designated the following bills as Special Orders to be acted upon today:

S. F. No. 2477; and H. F. Nos. 1965, 3442, 3324, 2500, 2708, 2786 and 668.

S. F. No. 2477 was reported to the House.

Kinkel moved to amend S. F. No. 2477 as follows:

Delete everything after the enacting clause and insert the following language of H. F. No. 2866, the first engrossment:

"Section 1. Minnesota Statutes 1996, section 13.99, subdivision 81, is amended to read:

Subd. 81. [TRANSITIONAL HOUSING DATA.] Certain data collected, used, or maintained by the recipient of a grant to provide transitional housing are classified under section 268.38 119A.43, subdivision 9.

Sec. 2. Minnesota Statutes 1997 Supplement, section 119A.15, subdivision 5a, is amended to read:

Subd. 5a. [EXCLUDED PROGRAMS.] Programs transferred to the department of children, families, and learning from the department of economic security may not be included in the consolidated funding account and are ineligible for local consolidation. The commissioner may not apply for federal waivers to include these programs in funding consolidation initiatives. The programs include the following:

(1) programs for the homeless under sections 268.365, 268.38, and 268.39 119A.43;

(2) emergency energy assistance and energy conservation programs under sections 4.071 119A.40 and 268.371 119A.42;

(3) weatherization programs under section 268.37 119A.41;

(4) foodshelf programs under section 268.55 119A.44 and the emergency food assistance program; and

(5) lead abatement programs under section 268.92 119A.45.

Sec. 3. [119A.40] [OIL OVERCHARGE MONEY FOR ENERGY CONSERVATION.]

The oil overcharge money that is not otherwise appropriated by law or dedicated by court order is appropriated to the commissioner for energy conservation projects that directly serve low-income Minnesotans. This appropriation is available until spent.

Sec. 4. [119A.41] [COORDINATION OF FEDERAL AND STATE RESIDENTIAL WEATHERIZATION PROGRAMS.]

Subdivision 1. [AGENCY DESIGNATION.] The department is the state agency to apply for, receive, and disburse money made available to the state by federal law for the purpose of weatherizing the residences of low-income persons. The commissioner must coordinate available federal money with state money appropriated for this purpose.

Subd. 2. [GRANTS.] The commissioner must make grants of federal and state money to community action agencies and other public or private nonprofit agencies for the purpose of weatherizing the residences of low-income persons. Grant applications must be submitted in accordance with rules promulgated by the commissioner.

Subd. 4. [RULES.] The commissioner must promulgate rules that describe procedures for the administration of grants, data to be reported by grant recipients, and compliance with relevant federal regulations. The commissioner must require that a rental unit weatherized under this section be rented to a household meeting the income limits of the program for 24 of the 36 months after weatherization is complete. In applying this restriction to multiunit buildings weatherized under this section, the commissioner must require that occupancy continue to reflect the proportion of eligible households in the building at the time of weatherization.

Subd. 5. [GRANT ALLOCATION.] The commissioner must distribute supplementary state grants in a manner consistent with the goal of producing the maximum number of weatherized units. Supplementary state grants are provided primarily for the payment of additional labor costs for the federal weatherization program, and as an incentive for the increased production of weatherized units.

Criteria for the allocation of state grants to local agencies include existing local agency production levels, emergency needs, and the potential for maintaining or increasing acceptable levels of production in the area.

An eligible local agency may receive advance funding for 90 days' production, but thereafter must receive grants solely on the basis of program criteria.

Subd. 6. [ELIGIBILITY CRITERIA.] To the extent allowed by federal regulations, the commissioner must ensure that the same income eligibility criteria apply to both the weatherization program and the energy assistance program.

Sec. 5. [119A.42] [EMERGENCY ENERGY ASSISTANCE; FUEL FUNDS.]

Subdivision 1. [DEFINITIONS.] (a) The definitions in this subdivision apply to this section.

(b) "Energy provider" means a person who provides heating fuel, including natural gas, electricity, fuel oil, propane, wood, or other form of heating fuel, to residences at retail.

(c) "Fuel fund" means a fund established by an energy provider, the state, or any other entity that collects and distributes money for low-income emergency energy assistance and meets the minimum criteria, including income eligibility criteria, for receiving money from the federal Low-Income Home Energy Assistance Program and the program's Incentive Fund for Leveraging Non-Federal Resources.

Subd. 2. [ENERGY PROVIDERS; REQUIREMENT.] Each energy provider may solicit contributions from its energy customers for deposit in a fuel fund established by the energy provider, a fuel fund established by another energy provider or other entity, or the statewide fuel account established in subdivision 3, for the purpose of providing emergency energy assistance to low-income households that qualify under the federal eligibility criteria of the federal Low-Income Home Energy Assistance Program. Solicitation of contributions from customers may be made at least annually and may provide each customer an opportunity to contribute as part of payment of bills for provision of service or provide an alternate, convenient way for customers to contribute.

Subd. 3. [STATEWIDE FUEL ACCOUNT; APPROPRIATION.] The commissioner must establish a statewide fuel account. The commissioner may develop and implement a program to solicit contributions, manage the receipts, and distribute emergency energy assistance to low-income households, as defined in the federal Low-Income Home Energy Assistance Program, on a statewide basis. All money remitted to the commissioner for deposit in the statewide fuel account is appropriated to the commissioner for the purpose of developing and implementing the program. No more than ten percent of the money received in the first two years of the program may be used for the administrative expenses of the commissioner to implement the program and no more than five percent of the money received in any subsequent year may be used for administration of the program.

Sec. 6. [119A.425] [DATA PRIVACY; ENERGY PROGRAMS.]

Data on individuals collected, maintained, or created because an individual applies for benefits or services provided by the energy assistance and weatherization programs is private data on individuals and must not be disseminated except pursuant to section 13.05, subdivisions 3 and 4.

Sec. 7. [119A.43] [TRANSITIONAL HOUSING PROGRAMS.]

Subdivision 1. [DEFINITIONS.] (a) The definitions in this subdivision apply to this section.

(b) "Transitional housing" means housing designed for independent living and provided to a homeless person or family at a rental rate of at least 25 percent of the family income for a period of up to 24 months. If a transitional housing program is associated with a licensed facility or shelter, it must be located in a separate facility or a specified section of the main facility where residents can be responsible for their own meals and other daily needs.

(c) "Support services" means an assessment service that identifies the needs of individuals for independent living and arranges or provides for the appropriate educational, social, legal, advocacy, child care, employment, financial, health care, or information and referral services to meet these needs.

Subd. 2. [ESTABLISHMENT AND ADMINISTRATION.] A transitional housing program is established to be administered by the commissioner. The commissioner may make grants to eligible recipients or enter into agreements with community action agencies or other public or private nonprofit agencies to make grants to eligible recipients to initiate, maintain, or expand programs to provide transitional housing and support services for persons in need of transitional housing, which may include up to six months of follow-up support services for persons who complete transitional housing as they stabilize in permanent housing. The commissioner must ensure that money appropriated to implement this section is distributed as soon as practicable. The commissioner may make grants directly to eligible recipients.

Subd. 3. [ELIGIBLE RECIPIENTS.] A housing and redevelopment authority established under section 469.003 or a community action agency recognized under section 268.53 is eligible for assistance under the program. In addition, a partnership, joint venture, corporation, or association that meets the following requirements is also eligible:

(1) it is established for a purpose not involving pecuniary gain to its members, partners, or shareholders;

(2) it does not pay dividends or other pecuniary remuneration, directly or indirectly, to its members, partners, or shareholders; and

(3) in the case of a private, nonprofit corporation, it is established under and in compliance with chapter 317A.

Subd. 4. [APPLICATIONS.] An eligible recipient may apply to the commissioner, or to a nonprofit agency designated by the commissioner, for a grant to initiate, maintain, or expand a program providing transitional housing and support services for persons in need of transitional housing. The application must include:

(1) a proposal for the provision of transitional housing and support services, including program objectives, availability of adequate funding, appropriateness of the proposed program for the population to be served, and how the program will help individuals to move into permanent housing;

(2) a proposed budget;

(3) a plan for collection of required data and the method to be used for program evaluation; and

Subd. 5. [CRITERIA FOR GRANT AWARDS.] Criteria for the award of grants must include:

(1) evidence that the application meets all program requirements;

(2) evidence of the need of the applicant for state assistance and of the need for the particular program;

(3) indication of long-range plans for future funding if the need continues to exist for the service; and

(4) assurance that grants are awarded to as wide a variety of programs as possible, with emphasis on programs that concentrate on long-term solutions to individual housing problems.

Subd. 6. [PROGRAMS DESIGNATED.] At least two programs funded must be located in the seven-county metropolitan area and at least one program must be located outside of the metropolitan area. The commissioner may fund programs designed primarily to serve families with children, single persons, and persons leaving a shelter for family abuse.

Subd. 7. [FUNDING COORDINATION.] Grant recipients must combine funds awarded under this section with other funds from public and private sources.

Subd. 8. [PROGRAM INFORMATION.] In order to collect uniform data to better measure the nature and extent of the need for transitional housing, grant recipients must collect and make available to the commissioner the following information:

(1) the number of requests received for transitional housing, including the number of persons requiring assistance;

(2) the number of persons for whom services are provided, listed by age;

(3) reasons for seeking assistance;

(4) length of stay;

(5) reasons for leaving the housing program;

(6) demand for support services;

(7) follow-up information on status of persons assisted, including source of income and whether living independently, employed, or in treatment, unless the information is not available; and

(8) source of income on entering the program, prior residence, race, and sex of persons assisted.

Subd. 9. [PRIVATE DATA.] Personal history information and other information collected, used, or maintained by a grant recipient from which the identity of any individual receiving services may be determined is private data on individuals, as defined in section 13.02, subdivision 12, and the grant recipient must maintain the data in accordance with the provisions of chapter 13.

Subd. 10. [LICENSING REQUIREMENTS NOT APPLICABLE.] The requirements of sections 245A.01 to 245A.16 do not apply to transitional housing and support services funded under this section unless the commissioner of human services determines that the program is primarily a residential program within the meaning of section 245A.02, subdivision 14.

Sec. 8. [119A.44] [FOODSHELF.]

Subdivision 1. [DISTRIBUTION OF APPROPRIATION.] The commissioner must distribute funds appropriated to the commissioner by law for that purpose to the Minnesota Foodshelf Association, a statewide association of foodshelves organized as a nonprofit corporation as defined under section 501(c)(3) of the Internal Revenue Code of 1986, to distribute to qualifying foodshelves. A foodshelf qualifies under this section if:

(2) it distributes standard food orders without charge to needy individuals. The standard food order must consist of at least a two-day supply or six pounds per person of nutritionally balanced food items;

(3) it does not limit food distributions to individuals of a particular religious affiliation, race, or other criteria unrelated to need or to requirements necessary to administration of a fair and orderly distribution system;

(4) it does not use the money received or the food distribution program to foster or advance religious or political views; and

(5) it has a stable address and directly serves individuals.

Subd. 2. [APPLICATION.] In order to receive money appropriated under this section, the Minnesota Foodshelf Association must apply to the commissioner. The application must be in a form prescribed by the commissioner and must indicate the proportion of money each qualifying foodshelf shall receive. Applications must be filed at the times and for the periods determined by the commissioner.

Subd. 3. [DISTRIBUTION FORMULA.] The Minnesota Foodshelf Association must distribute money distributed to it by the department to foodshelf programs in proportion to the number of individuals served by each foodshelf program. The commissioner must gather data from the Minnesota Foodshelf Association or other appropriate sources to determine the proportionate amount each qualifying foodshelf program is entitled to receive. The commissioner may increase or decrease the qualifying foodshelf program's proportionate amount if the commissioner determines the increase or decrease is necessary or appropriate to meet changing needs or demands.

Subd. 4. [USE OF MONEY.] At least 96 percent of the money distributed to the Minnesota Foodshelf Association under this section must be distributed to foodshelf programs to purchase, transport and coordinate the distribution of nutritious food to needy individuals and families. No more than four percent of the money may be expended for other expenses, such as rent, salaries, and other administrative expenses of the Minnesota Foodshelf Association.

Subd. 5. [ENFORCEMENT.] The Minnesota Foodshelf Association must retain records documenting expenditure of the money and comply with any additional requirements imposed by the commissioner. The commissioner may require the Minnesota Foodshelf Association to report on its use of the funds. The commissioner may require that the report contain an independent audit. If ineligible expenditures are made by the Minnesota Foodshelf Association, the ineligible amount must be repaid to the commissioner and deposited in the general fund.

Subd. 6. [ADMINISTRATIVE EXPENSES.] All funds appropriated under this section must be distributed to the Minnesota Foodshelf Association as provided under this section with deduction by the commissioner for administrative expenses limited to 1.8 percent.

Sec. 9. [119A.45] [EARLY CHILDHOOD LEARNING AND CHILD PROTECTION FACILITIES.]

Sec. 10. [119A.46] [LEAD ABATEMENT PROGRAM.]

Subdivision 1. [DEFINITIONS.] (a) The definitions in section 144.9501 and in this subdivision apply to this section.

(b) "Eligible organization" means a lead contractor, city, board of health, community health department, community action agency as defined in section 268.52, or community development corporation.

(c) "Commissioner" means the commissioner of children, families, and learning, or the commissioner of the Minnesota housing finance agency as authorized by section 462A.05, subdivision 15c.

Subd. 2. [GRANTS; ADMINISTRATION.] Within the limits of the available appropriation, the commissioner must develop a swab team services program which may make demonstration and training grants to eligible organizations to train workers to provide swab team services and swab team services for residential property. Grants may be awarded to nonprofit organizations to provide technical assistance and training to ensure quality and consistency within the statewide program. Grants must be awarded to help ensure full-time employment to workers providing swab team services and must be awarded for a two-year period.

Grants awarded under this section must be made in consultation with the commissioners of the department of health and the housing finance agency, and representatives of neighborhood groups from areas at high risk for toxic lead exposure, a labor organization, the lead coalition, community action agencies, and the legal aid society. The consulting team must review grant applications and recommend awards to eligible organizations that meet requirements for receiving a grant under this section.

Subd. 3. [APPLICANTS.] (a) Interested eligible organizations may apply to the commissioner for grants under this section. Two or more eligible organizations may jointly apply for a grant. Priority shall be given to community action agencies in greater Minnesota and to either community action agencies or neighborhood based nonprofit organizations in cities of the first class. Of the total annual appropriation, 12.5 percent may be used for administrative purposes. The commissioner may deviate from this percentage if a grantee can justify the need for a larger administrative allowance. Of this amount, up to five percent may be used by the commissioner for state administrative purposes. Applications must provide information requested by the commissioner, including at least the information required to assess the factors listed in paragraph (d).

(b) The commissioner must coordinate with the commissioner of health who must consult with boards of health to provide swab team services for purposes of secondary prevention. The priority for swab teams created by grants to eligible organizations under this section must be work assigned by the commissioner of health, or by a board of health if so designated by the commissioner of health, to provide secondary prevention swab team services to fulfill the requirements of section 144.9504, subdivision 6, in response to a lead order. Swab teams assigned work under this section by the commissioner, that are not engaged daily in fulfilling the requirements of section 144.9504, subdivision 6, must deliver swab team services in response to elevated blood lead levels as defined in section 144.9501, subdivision 9, where lead orders were not issued, and for purposes of primary prevention in census tracts known to be in areas at high risk for toxic lead exposure as described in section 144.9503, subdivision 2.

(c) Any additional money must be used for grants to establish swab teams for primary prevention under section 144.9503, in census tracts in areas at high risk for toxic lead exposure as determined under section 144.9503, subdivision 2.

(d) In evaluating grant applications, the commissioner must consider the following criteria:

(1) the use of lead contractors and lead workers for residential swab team services;

(2) the participation of neighborhood groups and individuals, as swab team workers, in areas at high risk for toxic lead exposure;

(4) plans for supervision, training, career development, and postprogram placement of swab team members;

(5) plans for resident and property owner education on lead safety;

(6) plans for distributing cleaning supplies to area residents and educating residents and property owners on cleaning techniques;

(7) sources of other funding and cost estimates for training, lead inspections, swab team services, equipment, monitoring, testing, and administration;

(8) measures of program effectiveness;

(9) coordination of program activities with other federal, state, and local public health, job training, apprenticeship, and housing renovation programs including the emergency jobs program under sections 268.672 to 268.881; and

(10) prior experience in providing swab team services.

Subd. 4. [LEAD CONTRACTORS.] (a) Eligible organizations and lead contractors may participate in the swab team program. An eligible organization receiving a grant under this section must assure that all participating lead contractors are licensed and that all swab team workers are certified by the department of health under section 144.9505. Eligible organizations and lead contractors may distinguish between interior and exterior services in assigning duties and may participate in the program by:

(1) providing on-the-job training for swab team workers;

(2) providing swab team services to meet the requirements of sections 144.9503, subdivision 4, and 144.9504, subdivision 6;

(3) providing a removal and replacement component using skilled craft workers under subdivision 7;

(4) providing lead testing according to subdivision 8;

(5) providing lead dust cleaning supplies, as described in section 144.9503, subdivision 5, paragraph (b), to residents; or

(6) having a swab team worker instruct residents and property owners on appropriate lead control techniques, including the lead-safe directives developed by the commissioner of health.

(b) Participating lead contractors must:

(1) demonstrate proof of workers' compensation and general liability insurance coverage;

(2) be knowledgeable about lead abatement requirements established by the Department of Housing and Urban Development and the Occupational Safety and Health Administration and lead hazard reduction requirements and lead-safe directives of the commissioner of health;

(3) demonstrate experience with on-the-job training programs;

(4) demonstrate an ability to recruit employees from areas at high risk for toxic lead exposure; and

(5) demonstrate experience in working with low-income clients.

assure that all swab team workers meet the standards established in this subdivision. Grantees must use appropriate workplace procedures including following the lead-safe directives developed by the commissioner of health to reduce risk of elevated blood lead levels. Grantees and participating contractors must report all employee blood lead levels that exceed 15 micrograms of lead per deciliter of whole blood to the commissioner of health.

Subd. 6. [ON-THE-JOB TRAINING COMPONENT.] (a) Programs established under this section must provide on-the-job training for swab team workers. Training methods must follow procedures established under section 144.9506.

(b) Swab team workers must receive monetary compensation equal to the prevailing wage as defined in section 177.42, subdivision 6, for comparable jobs in the licensed contractor's principal business.

Subd. 7. [REMOVAL AND REPLACEMENT COMPONENT.] (a) Within the limits of the available appropriation and if a need is identified by a lead inspector, the commissioner may establish a component for removal and replacement of deteriorated paint in residential properties according to the following criteria:

(1) components within a residence must have both deteriorated lead-based paint and substrate damage beyond repair or rotting wooden framework to be eligible for removal and replacement;

(2) all removal and replacement must be done using least-cost methods and following lead-safe directives;

(3) whenever windows and doors or other components covered with deteriorated lead-based paint have sound substrate or are not rotting, those components should be repaired, sent out for stripping, planed down to remove deteriorated lead-based paint, or covered with protective guards instead of being replaced, provided that such an activity is the least cost method of providing the swab team service;

(4) removal and replacement or repair must be done by lead contractors using skilled craft workers or trained swab team members; and

(5) all craft work that requires a state license must be supervised by a person with a state license in the craft work being supervised. The grant recipient may contract for this supervision.

(b) The program design must:

(1) identify the need for on-the-job training of swab team workers to be removal and replacement workers; and

(2) describe plans to involve appropriate groups in designing methods to meet the need for training swab team workers.

Subd. 8. [TESTING AND EVALUATION.] (a) Testing of the environment is not necessary by swab teams whose work is assigned by the commissioner of health or a designated board of health under section 144.9504. The commissioner of health or designated board of health must share the analytical testing data collected on each residence for purposes of secondary prevention under section 144.9504 with the swab team workers in order to provide constructive feedback on their work and to the commissioner for the purposes set forth in paragraph (c).

(b) For purposes of primary prevention evaluation, the following samples must be collected: pretesting and posttesting of one noncarpeted floor dust lead sample and a notation of the extent and location of bare soil and of deteriorated lead-based paint. The analytical testing data collected on each residence for purposes of primary prevention under section 144.9503, must be shared with the swab team workers in order to provide constructive feedback on their work and to the commissioner for the purposes set forth in paragraph (c).

and collect and analyze one noncarpeted floor dust lead sample. The data collected must be evaluated to determine the efficacy of providing swab team services as a method of reducing lead exposure in young children. In evaluating this data, the commissioner of health must consider city size, community location, historic traffic flow, soil lead level of the property by area or census tract, distance to industrial point sources that emit lead, season of the year, age of the housing, age, and number of children living at the residence, the presence of pets that move in and out of the residence, and other relevant factors as the commissioner of health may determine. This evaluation of the swab team program may be paid from amounts appropriated to the department of economic security for providing swab team services.

Subd. 9. [PROGRAM BENEFITS.] As a condition of providing swab team services under this section, an organization may require a property owner to not increase rents on a property solely as a result of a substantial improvement made with public funds under the programs in this section.

Subd. 10. [REQUIREMENTS OF ORGANIZATIONS RECEIVING GRANTS.] An eligible organization that is awarded a training and demonstration grant under this section must prepare and submit a quarterly progress report to the commissioner beginning three months after receipt of the grant.

Sec. 11. Minnesota Statutes 1996, section 216B.241, subdivision 2a, is amended to read:

Subd. 2a. [ENERGY AND CONSERVATION ACCOUNT.] The commissioner shall must deposit money contributed under subdivisions 1a and 1b in the energy and conservation account in the general fund. Money in the account is appropriated to the department for programs designed to meet the energy conservation needs of low-income persons and to make energy conservation improvements in areas not adequately served under subdivision 2. Interest on money in the account accrues to the account. Using information collected under section 216C.02, subdivision 1, paragraph (b), the commissioner shall must, to the extent possible, allocate enough money to programs for low-income persons to assure that their needs are being adequately addressed. The commissioner shall must request the commissioner of finance to transfer money from the account to the commissioner of economic security children, families, and learning for an energy conservation program for low-income persons. In establishing programs, the commissioner shall must consult political subdivisions and nonprofit and community organizations, especially organizations engaged in providing energy and weatherization assistance to low-income persons. At least one program must address the need for energy conservation improvements in areas in which a high percentage of residents use fuel oil or propane to fuel their source of home heating. The commissioner may contract with a political subdivision, a nonprofit or community organization, a public utility, a municipality, or a cooperative electric association to implement its programs.

Sec. 12. Minnesota Statutes 1996, section 239.785, subdivision 6, is amended to read:

Subd. 6. [LIQUEFIED PETROLEUM GAS ACCOUNT.] A liquefied petroleum gas account in the special revenue fund is established in the state treasury. Fees and penalties collected under this section must be deposited in the state treasury and credited to the liquefied petroleum gas account. Money in that account, including interest earned, is appropriated to the commissioner of economic security children, families, and learning for programs to improve the energy efficiency of residential liquefied petroleum gas heating equipment in low-income households, and, when necessary, to provide weatherization services to the homes.

Sec. 13. Minnesota Statutes 1997 Supplement, section 268.19, is amended to read:

268.19 [INFORMATION.]

Except as hereinafter otherwise provided, data gathered from any employing unit or individual pursuant to the administration of sections 268.03 to 268.23, and from any determination as to the benefit rights of any individual are private data on individuals or nonpublic data not on individuals as defined in section 13.02, subdivisions 9 and 12, and may not be disclosed except pursuant to a court order or section 13.05. These data may be disseminated to and used by the following agencies without the consent of the subject of the data:

(a) state and federal agencies specifically authorized access to the data by state or federal law;

(c) local human rights groups within the state which have enforcement powers;

(d) the department of revenue shall must have access to department of economic security private data on individuals and nonpublic data not on individuals only to the extent necessary for enforcement of Minnesota tax laws;

(e) public and private agencies responsible for administering publicly financed assistance programs for the purpose of monitoring the eligibility of the program's recipients;

(f) the department of labor and industry on an interchangeable basis with the department of economic security subject to the following limitations and notwithstanding any law to the contrary:

(1) the department of economic security shall must have access to private data on individuals and nonpublic data not on individuals for uses consistent with the administration of its duties under sections 268.03 to 268.23; and

(2) the department of labor and industry shall must have access to private data on individuals and nonpublic data not on individuals for uses consistent with the administration of its duties under state law;

(g) the department of trade and economic development may have access to private data on individual employing units and nonpublic data not on individual employing units for its internal use only; when received by the department of trade and economic development, the data remain private data on individuals or nonpublic data;

(h) local and state welfare agencies for monitoring the eligibility of the data subject for assistance programs, or for any employment or training program administered by those agencies, whether alone, in combination with another welfare agency, or in conjunction with the department of economic security;

(i) local, state, and federal law enforcement agencies for the sole purpose of ascertaining the last known address and employment location of the data subject, provided the data subject is the subject of a criminal investigation; and

(j) the department of health may have access to private data on individuals and nonpublic data not on individuals solely for the purposes of epidemiologic investigations.

Data on individuals and employing units which are collected, maintained, or used by the department in an investigation pursuant to section 268.182 are confidential as to data on individuals and protected nonpublic data not on individuals as defined in section 13.02, subdivisions 3 and 13, and shall must not be disclosed except pursuant to statute or court order or to a party named in a criminal proceeding, administrative or judicial, for preparation of a defense.

Tape recordings and transcripts of recordings of proceedings conducted in accordance with section 268.105 and exhibits received into evidence at those proceedings are private data on individuals and nonpublic data not on individuals and shall must be disclosed only pursuant to the administration of section 268.105, or pursuant to a court order.

Aggregate data about employers compiled from individual job orders placed with the department of economic security are private data on individuals and nonpublic data not on individuals as defined in section 13.02, subdivisions 9 and 12, if the commissioner determines that divulging the data would result in disclosure of the identity of the employer. The general aptitude test battery and the nonverbal aptitude test battery as administered by the department are also classified as private data on individuals or nonpublic data.

Data on individuals collected, maintained, or created because an individual applies for benefits or services provided by the energy assistance and weatherization programs administered by the department of economic security is private data on individuals and shall not be disseminated except pursuant to section 13.05, subdivisions 3 and 4.

Sec. 14. Minnesota Statutes 1996, section 462A.05, subdivision 15c, is amended to read:

Subd. 15c. [RESIDENTIAL LEAD ABATEMENT.] (a) It may make or purchase loans or grants for the abatement of hazardous levels of lead paint in residential buildings and lead contaminated soil on the property of residential buildings occupied by low- and moderate-income persons. Hazardous levels are as determined by the department of health or the pollution control agency. The agency must establish criteria for a residential lead paint and lead contaminated soil abatement program, including the terms of loans and grants under this section, a maximum amount for loans or grants, eligible borrowers or grantees, eligible contractors, and eligible buildings. The agency may make grants to cities, local units of government, registered lead abatement contractors, and nonprofit organizations for the purpose of administering a residential lead paint and contaminated lead soil abatement program. The agency must establish standards for the relocation of families where necessary and the payment of relocation expenses. To the extent possible, the agency must coordinate loans and grants under this section with existing housing programs.

The agency, in consultation with the department of health, shall must report to the legislature by January 1996 on the costs and benefits of subsidized lead abatement and the extent of the childhood lead exposure problem. The agency shall must review the effectiveness of its existing loan and grant programs in providing funds for residential lead abatement and report to the legislature with examples, case studies and recommendations.

(b) The agency may also make grants to eligible organizations, as defined in section 268.92 119A.46, subdivision 1, for the purposes of section 268.92 119A.46.

Sec. 15. [REPEALER.]

Minnesota Statutes 1996, sections 4.071, subdivision 3; 268.37; 268.371; 268.38, subdivisions 1, 2, 3, 4, 5, 6, 8, 9, and 12; 268.55; and 268.92; and Minnesota Statutes 1997 Supplement, sections 268.38, subdivision 7; and 268.917, are repealed."

The motion prevailed and the amendment was adopted.

S. F. No. 2477, A bill for an act relating to state government; codifying reorganization order number 179 with respect to the departments of children, families, and learning and economic security; amending Minnesota Statutes 1996, sections 13.99, subdivision 81; 216B.241, subdivision 2a; 239.785, subdivision 6; and 462A.05, subdivision 15c; Minnesota Statutes 1997 Supplement, sections 119A.15, subdivision 5a; and 268.19; proposing coding for new law in Minnesota Statutes, chapters 119A; repealing Minnesota Statutes 1996, sections 4.071, subdivision 3; 268.37; 268.371; 268.38, subdivisions1, 2, 3, 4, 5, 6, 8, 9, and 12; 268.55; and 268.92; Minnesota Statutes 1997 Supplement, sections 268.38, subdivision 7; and 268.917.

The bill was read for the third time, as amended, and placed upon its final passage.

The question was taken on the passage of the bill and the roll was called. There were 125 yeas and 6 nays as follows:

Those who voted in the affirmative were:

Abrams	Entenza	Johnson, A.	Mahon	Paulsen	Stanek
Anderson, I.	Erhardt	Johnson, R.	Mares	Pawlenty	Stang
Bakk	Erickson	Juhnke	Mariani	Paymar	Sviggum
Bettermann	Evans	Kahn	Marko	Pelowski	Swenson, H.
Biernat	Farrell	Kalis	McCollum	Peterson	Sykora
Bishop	Finseth	Kelso	McElroy	Pugh	Tingelstad
Boudreau	Folliard	Kielkucki	McGuire	Rest	Tomassoni
Bradley	Garcia	Kinkel	Milbert	Reuter	Tompkins
Broecker	Goodno	Knoblach	Molnau	Rhodes	Tuma
Carlson	Greenfield	Koskinen	Mulder	Rifenberg	Tunheim
Chaudhary	Greiling	Kraus	Mullery	Rostberg	Van Dellen
Clark, J.	Gunther	Krinkie	Munger	Rukavina	Vandeveer
Clark, K.	Haas	Kubly	Murphy	Schumacher	Wagenius
Commers	Harder	Kuisle	Ness	Seagren	Weaver
Daggett	Hasskamp	Larsen	Nornes	Seifert	Wejcman
Davids	Hausman	Leighton	Opatz	Sekhon	Wenzel
Dawkins	Hilty	Leppik	Orfield	Skare	Westfall
Dehler	Holsten	Lieder	Osskopp	Skoglund	Winter
Journal of the House - 83rd Day - Monday, March 2, 1998 - Top of Page 7926
Delmont	Huntley	Lindner	Osthoff	Slawik	Wolf
Dempsey	Jefferson	Long	Otremba, M.	Smith	Spk. Carruthers
Dorn	Jennings	Macklin	Ozment	Solberg

Those who voted in the negative were:

Anderson, B.	Jaros	Knight	Olson, M.	Westrom	Workman

The bill was passed, as amended, and its title agreed to.

H. F. No. 1965, A bill for an act relating to state agencies; codifying reorganization orders relating to the office of environmental assistance and the public service department; amending Minnesota Statutes 1996, sections 115D.08; and 216C.41, subdivision 2.

The bill was read for the third time and placed upon its final passage.

The question was taken on the passage of the bill and the roll was called. There were 132 yeas and 0 nays as follows:

Those who voted in the affirmative were:

Abrams	Entenza	Johnson, A.	Mahon	Paulsen	Stang
Anderson, B.	Erhardt	Johnson, R.	Mares	Pawlenty	Sviggum
Anderson, I.	Erickson	Juhnke	Mariani	Paymar	Swenson, H.
Bakk	Evans	Kahn	Marko	Pelowski	Sykora
Bettermann	Farrell	Kalis	McCollum	Peterson	Tingelstad
Biernat	Finseth	Kelso	McElroy	Pugh	Tomassoni
Bishop	Folliard	Kielkucki	McGuire	Rest	Tompkins
Boudreau	Garcia	Kinkel	Milbert	Reuter	Trimble
Bradley	Goodno	Knight	Molnau	Rhodes	Tuma
Broecker	Greenfield	Knoblach	Mulder	Rifenberg	Tunheim
Carlson	Greiling	Koskinen	Mullery	Rostberg	Van Dellen
Chaudhary	Gunther	Kraus	Munger	Rukavina	Vandeveer
Clark, J.	Haas	Krinkie	Murphy	Schumacher	Wagenius
Clark, K.	Harder	Kubly	Ness	Seagren	Weaver
Commers	Hasskamp	Kuisle	Nornes	Seifert	Wejcman
Daggett	Hausman	Larsen	Olson, M.	Sekhon	Wenzel
Davids	Hilty	Leighton	Opatz	Skare	Westfall
Dawkins	Holsten	Leppik	Orfield	Skoglund	Westrom
Dehler	Huntley	Lieder	Osskopp	Slawik	Winter
Delmont	Jaros	Lindner	Osthoff	Smith	Wolf
Dempsey	Jefferson	Long	Otremba, M.	Solberg	Workman
Dorn	Jennings	Macklin	Ozment	Stanek	Spk. Carruthers

H. F. No. 3442 was reported to the House.

Wenzel moved that H. F. No. 3442 be continued on Special Orders until Wednesday, March 4, 1998,. The motion prevailed.

H. F. No. 3324 was reported to the House.

Ozment moved that H. F. No. 3324 be continued on Special Orders. The motion prevailed.

H. F. No. 2500, A bill for an act relating to financial institutions; limiting customer liability for loss or theft of a debit card; amending Minnesota Statutes 1996, section 47.69, subdivision 3.

The bill was read for the third time and placed upon its final passage.

The question was taken on the passage of the bill and the roll was called. There were 132 yeas and 0 nays as follows:

Those who voted in the affirmative were:

Abrams	Entenza	Johnson, A.	Mahon	Paulsen	Stang
Anderson, B.	Erhardt	Johnson, R.	Mares	Pawlenty	Sviggum
Anderson, I.	Erickson	Juhnke	Mariani	Paymar	Swenson, H.
Bakk	Evans	Kahn	Marko	Pelowski	Sykora
Bettermann	Farrell	Kalis	McCollum	Peterson	Tingelstad
Biernat	Finseth	Kelso	McElroy	Pugh	Tomassoni
Bishop	Folliard	Kielkucki	McGuire	Rest	Tompkins
Boudreau	Garcia	Kinkel	Milbert	Reuter	Trimble
Bradley	Goodno	Knight	Molnau	Rhodes	Tuma
Broecker	Greenfield	Knoblach	Mulder	Rifenberg	Tunheim
Carlson	Greiling	Koskinen	Mullery	Rostberg	Van Dellen
Chaudhary	Gunther	Kraus	Munger	Rukavina	Vandeveer
Clark, J.	Haas	Krinkie	Murphy	Schumacher	Wagenius
Clark, K.	Harder	Kubly	Ness	Seagren	Weaver
Commers	Hasskamp	Kuisle	Nornes	Seifert	Wejcman
Daggett	Hausman	Larsen	Olson, M.	Sekhon	Wenzel
Davids	Hilty	Leighton	Opatz	Skare	Westfall
Dawkins	Holsten	Leppik	Orfield	Skoglund	Westrom
Dehler	Huntley	Lieder	Osskopp	Slawik	Winter
Delmont	Jaros	Lindner	Osthoff	Smith	Wolf
Dempsey	Jefferson	Long	Otremba, M.	Solberg	Workman
Dorn	Jennings	Macklin	Ozment	Stanek	Spk. Carruthers

The bill was passed and its title agreed to.

H. F. No. 2708 was reported to the House.

Juhnke and Kahn moved to amend H. F. No. 2708 as follows:

Page 17, line 11, delete everything after the period

Page 17, delete line 12

Page 17, line 13, delete "upon request by the commissioner."

H. F. No. 2708, A bill for an act relating to agriculture; providing for associations of producers; setting dispute resolution procedures; establishing an advisory committee; amending Minnesota Statutes 1996, sections 17.692; 17.693, subdivisions 1, 2, and 6; 17.694, subdivisions 1, 2, 3, 6, and 7; 17.696, subdivision 2; 17.697; 17.698; 17.70, subdivisions 1, 2, and 3; 17.701; proposing coding for new law in Minnesota Statutes, chapter 17; repealing Minnesota Statutes 1996, section 17.699.

The bill was read for the third time, as amended, and placed upon its final passage.

The question was taken on the passage of the bill and the roll was called. There were 132 yeas and 0 nays as follows:

Those who voted in the affirmative were:

Abrams	Entenza	Johnson, A.	Mahon	Paulsen	Stang
Anderson, B.	Erhardt	Johnson, R.	Mares	Pawlenty	Sviggum
Anderson, I.	Erickson	Juhnke	Mariani	Paymar	Swenson, H.
Bakk	Evans	Kahn	Marko	Pelowski	Sykora
Bettermann	Farrell	Kalis	McCollum	Peterson	Tingelstad
Biernat	Finseth	Kelso	McElroy	Pugh	Tomassoni
Bishop	Folliard	Kielkucki	McGuire	Rest	Tompkins
Boudreau	Garcia	Kinkel	Milbert	Reuter	Trimble
Bradley	Goodno	Knight	Molnau	Rhodes	Tuma
Broecker	Greenfield	Knoblach	Mulder	Rifenberg	Tunheim
Carlson	Greiling	Koskinen	Mullery	Rostberg	Van Dellen
Chaudhary	Gunther	Kraus	Munger	Rukavina	Vandeveer
Clark, J.	Haas	Krinkie	Murphy	Schumacher	Wagenius
Clark, K.	Harder	Kubly	Ness	Seagren	Weaver
Commers	Hasskamp	Kuisle	Nornes	Seifert	Wejcman
Daggett	Hausman	Larsen	Olson, M.	Sekhon	Wenzel
Davids	Hilty	Leighton	Opatz	Skare	Westfall
Dawkins	Holsten	Leppik	Orfield	Skoglund	Westrom
Dehler	Huntley	Lieder	Osskopp	Slawik	Winter
Delmont	Jaros	Lindner	Osthoff	Smith	Wolf
Dempsey	Jefferson	Long	Otremba, M.	Solberg	Workman
Dorn	Jennings	Macklin	Ozment	Stanek	Spk. Carruthers

The bill was passed, as amended, and its title agreed to.

H. F. No. 2786 was reported to the House.

Wejcman moved that H. F. No. 2786 be continued on Special Orders. The motion prevailed.

H. F. No. 668, A bill for an act relating to occupations; enacting the Industrial Hygienist and Safety Professional Title Protection Act; providing title protection to the professions of industrial hygiene and safety; proposing coding for new law as Minnesota Statutes, chapter 182A.

The bill was read for the third time and placed upon its final passage.

The question was taken on the passage of the bill and the roll was called. There were 110 yeas and 21 nays as follows:

Those who voted in the affirmative were:

Abrams	Erhardt	Johnson, A.	Marko	Pugh	Tingelstad
Anderson, I.	Erickson	Johnson, R.	McCollum	Rest	Tomassoni
Bakk	Evans	Juhnke	McGuire	Reuter	Tompkins
Bettermann	Farrell	Kahn	Milbert	Rhodes	Trimble
Biernat	Folliard	Kalis	Molnau	Rifenberg	Tuma
Boudreau	Garcia	Kelso	Mullery	Rostberg	Tunheim
Broecker	Greenfield	Kielkucki	Munger	Rukavina	Van Dellen
Carlson	Greiling	Kinkel	Murphy	Schumacher	Wagenius
Chaudhary	Gunther	Koskinen	Ness	Seagren	Weaver
Clark, J.	Haas	Kubly	Opatz	Seifert	Wejcman
Clark, K.	Harder	Larsen	Orfield	Sekhon	Wenzel
Commers	Hasskamp	Leighton	Osthoff	Skare	Westrom
Daggett	Hausman	Leppik	Otremba, M.	Skoglund	Winter
Davids	Hilty	Lieder	Ozment	Slawik	Wolf
Dawkins	Holsten	Long	Paulsen	Smith	Spk. Carruthers
Delmont	Huntley	Macklin	Pawlenty	Solberg
Dempsey	Jaros	Mahon	Paymar	Stanek
Dorn	Jefferson	Mares	Pelowski	Stang
Journal of the House - 83rd Day - Monday, March 2, 1998 - Top of Page 7929
Entenza	Jennings	Mariani	Peterson	Sykora

Those who voted in the negative were:

Anderson, B.	Goodno	Krinkie	Mulder	Sviggum	Workman
Bradley	Knight	Kuisle	Nornes	Swenson, H.
Dehler	Knoblach	Lindner	Olson, M.	Vandeveer
Finseth	Kraus	McElroy	Osskopp	Westfall

The bill was passed and its title agreed to.

Winter moved that the bills on General Orders for today be continued. The motion prevailed.

Mares moved that the name of Larsen be added as an author on H. F. No. 2759. The motion prevailed.

Tunheim moved that H. F. No. 3283, now on General Orders, be re-referred to the Committee on Taxes. The motion prevailed.

Jennings moved that H. F. No. 2692 be returned to its author. The motion prevailed.

Kuisle moved that H. F. No. 2822 be returned to its author. The motion prevailed.

Jennings moved that H. F. No. 3123 be returned to its author. The motion prevailed.

Lieder, Wagenius, Marko, Molnau and Kuisle.

Winter moved that when the House adjourns today it adjourn until 12:00 noon, Wednesday, March 4, 1998. The motion prevailed.

Winter moved that the House adjourn. The motion prevailed, and the Speaker declared the House stands adjourned until 12:00 noon, Wednesday, March 4, 1998.

Edward A. Burdick, Chief Clerk, House of Representatives