87-1154 - CITV CLERK �
- FINANCE GITY OF SAINT PAUL Council
_nNARV - DEPARTMENT � F�le NO. ��/�
BLUE - MAVOR
City Attny/JTH . . `
cil esolution 1�
�_ _.," . ,
Presented By _
Referred To Committee: Date
Out of Committee By Date
RESOLVED, by the City Council of the City of Saint Paul ,
P�'Iinnesota, that Chapter 386 , Article 6, Sections 4 to 11 , Laws
of Minnesota for 1987 entitled:
An Act relating to economic development ;
providing a grogram for revitalization
of the cities of Saint Paul and Minneapolis
a certified copy to which is filed herewith, shall be and said
Act �iereby is in all things approved; and be it
FrJP.TI�ER RESOL�1;��, �c�iat the City Council directs the City
Cl�rk of the �ouYicil o�� tsie City of Saint Paul to forthtaith
iile ���ith t�ie `'ecr��t�r;� of State a certificate in form prescribed
b;� tne �t�.or��c�� ^e�.eral stating the essential facts necessary to
�aid «=->�rov�l of said Act hereunder and including a copy of this
::esolution of approval of said Act.
COUNCILMEN Requested by De ent of:
Yeas D�2W Nays � -��
Nicosia
Rettman [n Favor
Scheibel �
�� Against BY
Weida
WilsOri Form Appr by City Att n
Adopted by Council: Date AUG � � �,
Certified Pas ouncil S et BY
By
A►ppro y A+lavor: Date � � � 4 ��� Approve y Mayor for Submission to Council
B BY
�ilty�e F'I�,;�. . _ �d'�S i�_
. � ,mtr �� �j�
� ��x�-' °=`w- CITY OF SAENT PA L
r��v ������ OffICE OF THE CtTY CLERK
_� ��ma ;'
'�' "p` ALBERT B. OLSON, C17Y CLERK
�`'�o, �... .�
"4i""",•"�� 386 Ciry Hali,Saint Paul.Minnesota 55102
GEORCE UITIMER 6�2_���
MAYOR
August 24, 1987
O
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S�c:��.:Y of S�tE's Gffice /
Attention: JoAnn Silver
Room 180, State Office Building
St. Paul, Minnesota 55155
Dear Ms. Silver:
Attached for filing in the Office of Secretary of State is a Certificate
of Approval by the City of St. Paul for Article 6, Sections 4 to lI,
Chapter 386, Laws of Minnesota for 1987 as approved by Council File
87-1154� adopted on August 11, 1987.
Will you please time stamp a copy of this letter and return it to
the City Clerk's Office at 386 City Hall, St. Paul, Minnesota, 55IO2.
V „ ` y yo
, J
rt B. Olson
City Clerk
ABO:th
�►tt=..H�ri+.
!�'ATE OF M1NN�p�
FILED
A U G 2 5 i987
�v��av,�r
Sec�etary of 8tat� �
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' CERTIFICATE OF APPROVAL OF SPECIAL LAW
BY GOVERNING BODY _
(Pursuant to Minnesota Statutes, 645.02 and 645.021)
STATE OF MINNESOTA
County of �eY
TO THE SECRETARY OF STATE OF MINNESOTA: �
PLEASE TAKE NOTICE, That the undersigned chief clerical officer of the
City of Saint Paul
(nawe of goverameatal uait) '
DOES HEREBY CERTIFY, that in compliance with the provisions of Laws, 19 87 . Chapter
38� requiring approval by a * majority vote of the governing body of said local goveramental
unit before it becomes effective, the Citv Council
_.�_.....
(designate governing body)
at a meeting duly held on the llth day of August , 19 87 , by resolutian
Council File 87-1154 did approve said Laws, 19 87 , Chapter 386
(If other than resoluuon,sp��y� Article 6, Section 4 to 11
- by a majority vote of all of the members thereof
(Ayes 6 ; Noes � ; Absent or not voting 1 ) and the following additional steps, if any,
required by statute or charter were taken:
Resolution published in the official paper of the City
A copy of the resolution is hereto annexed and made a part of this certificate by reference.
Si�;�ed:
SEAL
City Clerk
(Official desi�adan of ofCicer)
(This form prescribed by the Attorney General and furnished by
the Secretary of State as required in Minnesota Statutes 645.021)
*If extraordinary majority is required by the specia! law, insert fraction or percentage here.
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S.F. No. 1
AN ACT CHAPTER No.
38 �
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2 relating to economic development; rural development;
3 renaming and providing powers to the agricultural
4 resource loan guaranty board; establishing a mineral
5 resources program; establishing duties for the •
6 community development division in the department of
7 energy and economic development; transferring the
8 independent wastewater treatment grant program from
9 the pollution control agency to the Minnesota-.public
10 finance authority; changing the membership of' the
11 Minnesota job skills partnership board; establishing
12 the rural development board; establishing the
13 � challenge grant program; establishing the Greater
14 Minnesota Corporation; establishing the state
15 supplemental education grant program; establishing the
� 16 Minnesota public finance authority; providing a
17 program for revitalization of the cities of St. Paul
18 and Minneapolis; creating a program for funding
19 economic development projects in the taconite tax
20 relief area; permitting investment of earnings of the
21 northeast Minnesota economic protection trust in
22 venture capital enterprises; appropriating money;
23 amending Minnesota Statutes 1986, sections 15. 039, by
24 adding a subdivision; 16A.80, subdivision 2a; 41A.01;
25 41A.02, subdivisions 3, 4, 6, 11, and by adding
26 subdivisions; 41A.04, subdivision l; 41A.05,
27 subdivisions 1 and 2; 41A.08; 116.16, subdivisions 2,
28 4, 5, 9, and by adding subdivisions; 116 .18,
29 subdivisions 2a and 3a; 116J.36, subdivisions 2, 3b,
30 3c, 8, 8a, and 11; 116J. 37, subdivision 1, and by
31 adding a subdivision; 116J.955, subdivisions 1 and 2;
32 116L.02; 116L.03, subdivisions 1, 2, 5, and 7 ; 281.17;
33 298 . 292; 298. 296, subdivision 2; 429 .061, subdivision
34 2; 462.445, subdivision 1; and Laws 1983, chapter 334,
35 section 7; proposing coding for new law in Minnesota
36 Statutes, chapters 41A; 93; 116; 116J; 116L; and 136A;
37 proposing coding for new law as Minnesota Statutes,
38 chapters 116N; 116P; and 446A; repealing Minnesota
39 Statutes 1986, sections 116.167; 116J.951; 116J.9b1;
40 116J.965; 116L.03, subdivision 6; 116M.01; 116M. 02;
41 116M.03; 116M.04; 116M.05; 116M.06; 116M.07; 116M. 08;
42 116M.09; 116M.10; 116M.11; 116M.12; 116M.13; 472. 11,
43 subdivisions 3, 5, 6, 7, 8, and 9; 472 .12,
44 subdivisions 2, 3, and 4; 472.125; 472.13 ,
45 subdivisions 2, 3, and 4; and Laws 1969, chapters 833
46 and 984.
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1
2 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
3 ARTICLE 1
4 RURAL DEVELOPMENT BOARD
5 Section 1. Minnesota Statutes 1986, section 116J. 955,
6 subdivision 1, is amended to read:
7 116J. 955 (RURAL REHABILITATION REVOLVING FUND. ]
8 Subdivision 1. [ESTABLISHMENT. J The rural rehabilitation
9 revolving fund is established as an account in the state
14 treasury. The money transferred to the state as a result of
11 liquidating the rural rehabilitation corporation trust, and
12 money derived from transfer of the trust to the state, must be
13 credited to the rural rehabilitation revolving fund. The
14 principal amount of the rural rehabilitation revolving fund;
15 $9T368?99A=-n�ap-r�et-be-�pent-aad must be invested by the state
16 investment board. The income attributable to investment of the
17 principal is appropriated to the commissioner for the aetieittea
18 purposes of tke-rtsre�-deve�epment-eee�aei� this article.
19 Sec. 2. Minnesota Statutes 1986, section 116J.955,
20 subdivision 2, is amended to read:
21 Subd. 2. [EXPENDITURE OF �i�i8£S�MEN�-�N@6ME FUND. ] The
22 commissioner may ea�y use the-inee�e-fre�-the-t�deat�ent-ef the
23 rural rehabilitation revolving fund for the purposes that are
24 allowed under the Minnesota rural rehabilitation corporation' s
25 charter and agreement with the United States Secretary of
26 Agriculture as provided in Public Law Number 499, 81st Congress,
27 enacted May 3, 1950 and as allowed under aeetien-��6�,-g6��
28 a�bdrdr�ier�-8 this article. Not more than three percent of the
29 book value of the Minnesota rural rehabilitation corporation' s
30 assets may be used for administrative purposes in a year without
31 approval of the United States Secretary of Agriculture. The
32 commissioner may create separate accounts within the fund for
33 use in accordance with the fund' s purposes.
34 Sec. 3 . [116N.01] [DEFINITIONS. ]
35 Subdivision 1. [TERMS. ] For the purposes of sections 3 to
36 10, the following terms have the meaning given them.
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1 Subd. 2. [HOARD. ] "Board" means the rural development
2 board.
3 Subd. 3. [COMMISSIONER. ] "Commissioner" means the
4 commissioner of energy and economic development.
5 Subd. 4. [LOCAL GOVERNMENTAL UNIT. ] "Local governmental
6 unit" means a home rule charter or statutory city when the
7 project is located in an incorporated area, a county when the
8 project is located in an unincorporated area, or an American
9 Indian tribal council when the project is located within a
10 federally recognized American Indian reservation or community.
11 Subd. 5. [LOW INCOME. J "Low income" means equal to or
12 below the nonmetropolitan median household income.
13 Subd. 6. [PRINCIPALLY. j "Principally" means more than half_.
14 Subd. 7. [REGIONAL ORGANIZATION. ] "Regional organization"
15 or "organization" means an organization selected under section
16 10, subdivision 3.
17 Subd. 8 . [RURAL. ] "Rural" means the area of Minnesota
18 located outside of the metropolitan area as defined in section
19 473.121, subd.ivision 2.
20 Sec. 4. (116N.02] [RURAL DEVELOPMENT BOARD. J
21 Subdivision 1. [MEMBERSHIP. � The rural development board �
22 consists of the commissioner of energy and economic development,
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23 the commissioner of jobs and training, the commissioner of
24 agriculture, the president of the Greater Minnesota Corporation
25 board, the state director of vocational technical education, the
26 chancellor of the state university board, the chancellor of the
27 state board for community colleges, the president of the
28 Universitv of Minnesota or the president ' s designee, the chair
29 of the regional advisory committee, and six members from the
30 �eneral public appointed by the governor, with at least one
31 public member from each of the regions established in section
32 10. Two of the ublic members must be locaY elected officials.
33 Two of the public members must be members of farm
34 organizations. One public member must represent the interests
35 of business, and one public member must represent the interests
36 of organized labor. .
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1 Subd. 2 . [MEMBERSHIP TERMS. J The membership terms,
2 compensation, removal, and filling of vacancies of ublic
3 members of the board are as provided in section 15. 0575.
4 Subd. 3. [CHAIR; OTHER OFFICERS. ] The commissioner of
5 energy and economic development shall serve as chair of the
6 board. The board may elect other officers as necessary from its
7 members.
8 Subd. 4. [ADVISORY TASK FORCES. j The board may establish
9 advisory task forces under section 15. 014 to advise or assist
10 the board in identifying and working with rural development
11 issues.
12 Subd. 5. [STAFF. ] The commissioner of energy and economic
13 development shall provide statf, consultant support, materials,
14 and administrative services necessarv for the board' s
15 activities. The services must include personnel, budqet,
16 payroll, and contract administration. The board mav request
17 staff support from other agencies of state qovernment as needed
18 for the execution of the responsibilities of the board, and the
19 other agencies shall furnish the staff sup ort upon request.
20 Subd. 6. [FUND ALLOCATION. ] The commissioner shall
21 allocate $6,000,000 from the rural rehabilitation revolvina fund
22 to be used for the challenge, grant program.
23 Sec. 5. [116N.03] [POWERS. ]
24 Subdivision 1. [CONTRP,CTS. J The board may enter into
25 contracts and grant agreements necessary to carry out its
26 responsibilities.
27 Subd. 2. [GIFTS; GRANTS. ] The board may apply for, accept,
28 and disburse gifts, grants, loans, or other pro ertv from the
29 United States, the state, private foundations, or anv other
30 source. It may enter into an agreement required for the qifts,
31 grants, or loans and mav hold, use, and dispose of its assets in
32 accordance with the terms of the qift, grant, loan, or
33 agreement. Money received by the board under this subdivision
34 must be deposited in the state treasury. The amount de osited
35 is appropriated to the board to carry out its duties .
36 Sec. 6. [116N.04] [DUTIES. ]
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1 Subdivision 1. [GENERAL DUTIES. ] The board shall
, 2 investigate and evaluate new met,hods to enhance rural
3 development, particularly methods relating to economic
4 diversification through private enterprises, including
5 technologically innovative industries, value-added
6 manufacturing, agriprocessing, information industries, and
7 agricultural marketing.
8 Subd. 2. �ESTABLISH PROGRAM. ] The board shall establish a
9 rural rehabilitation pilot project program to award up to
10 $500,000 from the rural rehabilitation revolving fund in grants
11 to public, nonprofit, or private organizations to support
12 farm-related pilot projects for rural development . Projects
13 must be designed to principally benefit low-income persons.
14 Subd. 3. [TECHNICAL ASSISTANCE. ) The board shall provide
15 technical assistance and rural development information services
16 to state agencies, regional agencies, special districts, local
17 governments, and the public.
18 Subd. 4. [BUDGET. ) The board shall adopt an annual budget
19 and work program and a biennial budget.
20 Subd. 5. [LEGISLATIVE REPORT. ] The board shall submit a
21 report to the legislature by January 31 of each year. The
22 report must include a review of rural development in the state,
23 a review of the regional advisory committee activities, an
24 accounting of loans made under the challenge grant program, an
25 evaluation of rural development initiatives, and recommendations
26 concerning state support for rural development .
27 Sec. 7. (116N.05 ] [REGIONAL ADVISORY COMMITTEE. ]
28 Subdivision 1. [MEMBERS. ] The regional advisory committee
29 consists of one representative from each of the state' s
30 development regions. Members representing the state' s
31 development regions must be selected by a majority vote of the
32 regional development commissions. In regions that have
33 dissolved their development commissions, members must be
34 selected by a majority vote of the chairs of the respective
35 county boards of commissioners in the region. Members must
36 reside within the region they represent. The county boards of
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1 commissioners and the regional development commissions selectinq
2 members are encouraged to give preference to persons that hold
3 an elected office. The county boards of commissioners and the
4 regional development commissions shall give public notice of
5 vacancies on the committee and make a selection of a member from
6 applications received for the positions.
7 Subd. 2. [TERMS; COMPENSATION; OFFICERS. ] The terms,
8 compensation, and expiration of the committee and its members
9 are as provided in section 15.059. A member may not serve more
10 than two consecutive terms. The regional advisory committee
11 shall elect a chair and may elect a vice-chair and other
12 officers as is necessary from its members.
13 Subd. 3 . [DUTIES. ] (a) The regional advisory committee
14 shall:
15 (1) administer the rural rehabilitation pilot project
16 program established in section 6, including the establishment of
17 grant eligibility criteria, solicitation and review of -grant
18 applications, and determination of projects to be funded;
19 ( 2) develop priorities for state projects and activities
20 related to rural development;
21 ( 3) advise the rural development board regarding the
22 challenge grant program; and
23 ( 4) coordinate the plans and programs of the regional
24 development commissions that have an effect upon the activities
25 of the rural development board.
26 .�b� The commissioner shall make agreements or contracts to
27 distribute grant funds to projects selected by the regional
28 advisory committee.
29 Sec. 8. [116N.06] [RURAL iNVESTMENT GUIDE. ]
30 The board, after appropriate study and public hearings as
31 necessary, shall adopt a comprehensive state rural investment
32 guide consisting of policy statements, objectives, standards,
33 and program criteria to guide state agencies in establishing and
34 implementing programs relating to rural development. The guide
35 must recognize the community and economic needs, the food and
36 a�ricultural policy, and the resources of rural Minnesota, and
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1 provide a plan to coordinate and allocate public and private
2 resources to the rural areas of �he state. The board shall
3 submit the guide to the appropriate committees of the
4 legislature. '
5 Sec. 9. [116N. 07 ] [HOP,RD REVIEW. J
6 The board may require state agencies to submit for review
7 any state program relating to rural development. The board may
8 comment on the program and may recommend changes consistent with
9 the rural investment guide.
10 Sec. 10. (116N.08] [CHALLENGE GRANT PROGRAM. ]
11 Subdivision 1. [ORGANIZATION. J The board shall make
12 challenge grants to regional organizations to encourage private
13 investment, to provide jobs for low-income persons, and to
14 promote economic development in the rural areas of the state.
15 Subd. 2. [FUNDING REGIONS. ] The board shall divide the
16 state outside of the metropolitan area as defined in section
17 473.121, subdivision 2, into six regions. A region' s boundaries
18 must be coterminous with the boundaries of one or more of the
19 development regions established under section 462.385. The
20 board shall designate up to $1,000,000 for each region, to be
21 awarded over a period of three years. The money designated to
22 each region must be used for revolving loans authorized in this
23 section.
24 Subd. 3. [SELECTION OF ORGANIZATIONS TO RECEIVE CHALLENGE
25 GRANTS. J The board shall select at least one organization for
26 each region to receive the challenge grants and shall enter into
27 grant agreements with the organizations. An organization must
28 be a nonprofit' corporation and must demonstrate that:
29 (1) its board of directors includes citizens experienced in
30 rural development, representatives of the regional development
31 commissions, and representatives from all geographic areas in
32 the region;
33 ( 2) it has the technical skills to analyze pr�ects;
34 ( 3) it is familiar with other available public and private
35 funding sources and economic development programs;
36 ( 4) it can initiate and implement economic development
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1 projects; and
2 ( 5) it can establish and administer a revolving loan fund.
3 Subd. 4. [REVOLVING LOAN FUND. J A regional organization
4 shall establish a board certified revolving loan fund to provide
5 loans to new and expanding businesses in rural Minnesota to
6 promote economic development. Eligible business enterprises
7 include technologically innovative industries, value-added
8 manufacturing, agriprocessing, information industries, and
9 agricultural marketing. L�an applications given preliminarv
10 approval by the organization must be forwarded to the
11 commissioner for final approval. The amount of state money
12� allocated for each loan is appropriated from the rural
13 rehabilitation revolving fund established in section 116J. 955 to
14 the organization' s reqional revolving loan fund when the
15 commissioner gives final approval for each loan. The amount of
16 money appropriated from the rural rehabilitation revolving fund
17 may not exceed 50 percent for each loan. The amount of
18 nonpublic money must equal at least 50 percent for each loan.
19 Subd. 5. [LOAN CRITERIA. ] The following criteria apply to
20 loans made under the challenge grant program:
21 (a) Loans must be made to businesses that are not likely
22 to undertake a project for which loans are sought without
23 assistance from the challenge grant program.
24 �_b1 A loan must be used for a project designed principally
25 to benefit low-income persons through the creation of job
26 opportunities for them. Among loan applicants, priority must be
27 given on the basis of the number of permanent jobs created or
28 reta'ined by the project and the proportion of nonstate money
29 leveraged by the revolving loan.
30 (c) The minimum loan is $5,000 and the maximum is $100,000 .
31 (d) With the approval of the commissioner , a loan may be
32 used to provide up to 50 percent of the private investment
33 required to qualify for a grant from the economic recovery fund.
34 (e) A loan may not exceed 50 percent of the total cost of
35 an individual project.
36 �f� A loan may not be used for a retail development project.
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1 (g) A business applying for a loan must be s onsored by a
2 resolution of the governing bod_v_., of the local governmental unit
3 within whose jurisdiction the ro 'ect is located.
4 Subd. 6. [REVOLVING FUND ADMINISTRATION. ] (a) The board
5 shall establish a minimum interest rate for loans to ensure that
6 necessary management costs are covered.
7 �b) Loan repayment amounts equal to one-half of the
8 principal and interest must be de osited in the rural
9 rehabilitation revolving fund for challenqe grants to the reqion
10 from which the money was originallv designated. The remaining
11 amount of the loan repayment mav be deposited in the reqional
12 revolving loan fund for further distribution by the regional
13 organization, consistent with the loan criteria specified in
14 subdivisions 4 and 5.
15 (c) The first $1,000,000 of revolving loans for each region
16 must be matched by nonstate sources. The matchinq reQuirement
17 does not apply to loans made under subdivision 6, clause (b) .
18 (d) The first '$1,000,000 of revolving loans for each region
19 must be matched by nonstate sources. The matchinq requirement
20 does not apply to loans made under subdivision 6, clause (b) .
21 (e) Administrative expenses of each orctanization may be
22 paid out of the interest earned on loans. '
23 Subd. 7 . [RULES. ] The board shall adopt rules to implement
24 the duties specified in this section.
25 Subd. 8. [LOCAL GOVERNMENTAL UNIT LOANS. ] A local
26 governmental unit may receive a loan under this section if the
27 local governmental unit has established a local revolving loan
28 fund and can provide at least an� ectual match to the loan
29 received from a regional organization. The maximum loan
30 available to a local governmental unit under this section is
31 $50,000. The money loaned to a local governmental unit by a
32 regional organization must be matched by the local revolving
33 loan fund and used to provide loans to businesses to promote
34 local economic development. One-half of the money loaned to a
35 local governmental unit under this section bv a regional
36 organization must be repaid to the rural rehabilitation
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1 revolving fund. One-half of the money may be retained bv the
2 local governmental unit ' s revolving loan fund for further
3 distribution by the local governmental unit.
4 Subd. 9. [REGIONAL COOPERP,TION. J An organization that
5 receives a challenge grant shall cooperate with other reqional
6 organizations, including regional development commissions,
7 community development corporations, community action agencies,
8 and the Minnesota small business development centers and
9 satellites, in carrying out challenge grant program and
10 technical assistance responsibilities.
11 Subd. 10. [REPORTING REQUIREMENTS. ] An organization that
12 receives a challenge grant shall:
13 ( 1) submit an annual report to the board by February 15 of
14 each year that includes a description of projects supported by
15 the challenge grant program, an account of loans made during the
16 calendar year, the source and amount of money collected and
17 distributed by the challenge grant program, the program' s assets
18 and liabilities, and an explanation of administrative expenses;
19 and
20 ( 2) provide for an independent annual audit to be performed
21 in accordance with generally accepted accounting practices and
22 auditing standards and submit a copy of each annual audit report
23 to the board.
24 Sec. �ll. [RURAL DEVELOPMENT BOARD COMPLEMENT. ]
25 The_approved complement of the rural development board is
26 six and one-half positions, with six positions in the
27 unclassified service and one-half position in the classified
28 service, one of which is an executive director position.
29 Sec. 12. [FAMILY FP,RM LOANS. ]
30 The participant ' s interest in a family farm loan guarantee
31 executed before the effective date of this article may be
32 assigned to a new participant.
33 Sec. 13. (REPEP,LER. ]
34 Minnesota Statutes 1986, sections 116J.951; 116J.961;
35 116J.965; and 116M.05, are repealed.
36 Sec. 14. [APPROPRIATION. ]
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1 $600,000 is appropriated from the economic development fund
2 to the commissioner of energy and economic development to
3 administer programs under the rural development board. $300,000
4 is for fiscal year 1988 and $300,000 is for fiscal year 1989 .
5 $200,000 is transferred from the economic development fund
6 to the commissioner of energy and economic development to
7 provide grants to the regional organizations selected under
8 section 10, subdivision 3, for technical assistance to
9 businesses in each region. Technical assistance includes
10 providing information to businesses regarding federal, state,
11 and local government economic development programs.
12 $1,000,000 is transferred from the general fund to the
13 rural rehabilitation revolving fund, to be used for the
14 challenge grant program.
15 � ARTICLE 2
16 GREATER MINNESOTA CORPORATION
17 Section 1. [ 1160.01] [CITATION. ]
18 Sections 1 to 10 may be cited as the "Greater Minnesota
19 Corporation act. "
20 Sec. 2. (1160.02] [DEFINITIONS. ]
21 Subdivision l. [APPLICABILITY. ] The definitions in this
22 section apply to sections 1 to 15.
23 Subd. 2. [BOARD. j "Board" means the board of directors of
24 the Greater Minnesota Corporation.
25 Subd. 3. [CORPORATION. ] "Corporation" means the Greater
26 Minnesota Corporation.
27 Subd. 4. [FUND. ] "Fund" means the greater Minnesota fund.
28 Subd. 5. [GREATER MINNESOTA. ] ] "Greater Minnesota" means
29 the area of Minnesota located outside of the metropolitan area
30 as defined in section 473 . 121, subdivision 2.
31 Sec. 3. ( 1160.03J [CORPORATION; BOARD OF DIRECTORS;
32 POWERS. J
33 Subdivision 1 . [NAME. J The Greater Minnesota Corporation
34 is a public corporation of the state and is not subject to the
35 laws governing a state agency except as provided in this
36 chapter . The business of the corporation must be conducted
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1 under the name "Greater Minnesota Corporation. "
2 Subd. 2 . [BOARD OF DIRECTORS. ] The corporation is governed
3 by a board of 11 directors. The term of a director is six years_.
4 Vacancies on the board are filled by appointment of the board,
5 subject to the advice and consent of the senate. The board may
6 determine the compensation of its members.
7 Subd. 3. [HYLAWS. ] The board of directors shall adopt
8 bylaws necessarv for the conduct of the business of the
9 corporation, consistent with this chapter .
10 Subd. 4. [PLACES OF BUSINESS. ] The board shall locate and
11 maintain the corporation' s places of business within the state.
12 Subd. 5. [MEETINGS AND ACTIONS OF THE BOARD. ] The board
13 shall meet at least twice a year and may hold additional
14 meetings upon giving notice in accordance with the bylaws of the
15 corporation. Board meetings are subject to section 471.705 ,
16 exce t when•data described in subdivision 7 is discussed.
17 Subd. 6. [CLOSED MEETINGS; RECORDING. ] The board of
18 directors may by a majority vote in a public meeting decide to
19 hold a closed meeting authorized under subdivision 5. The time
20 and place of the closed meeting must be announced at the public
21 meeting. A written roll of inembers present at the closed
22 meeting must be made available to the public after the closed
23 meeting. The proc�edings of a closed meeting must be tape
24 recorded at the expense of the board and must be preserved by
25 the board for two years. The data on the tape is nonpublic data
26 under section 13.02, subdivision 9. .
27 Subd. 7. [APPLICATION AND INVESTIGATIVE DATA. J The
28 following data is classified as private data with regard to data
29 on individuals under section 13 .02, subdivision 12, or as
30 nonpublic data with regard to data not on individuals under
31 section 13 . 02, subdivision 9, whichever is applicable:
32 ( 1) financial data, statistics, and information furnished
33 in connection with assistance or proposed assistance under
34 section 6, including credit reports, financial statements,
35 statements of net worth, income tax returns, either personal or
36 corporate, and any other business and personal financial
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1 records; or
2 ( 2) security information, �'rade secret information, or
3 labor relations information, as defined in section 13 . 37,
4 subdivision 1, disclosed to members of the corporation board or
5 employees of the corporation under section 6.
6 Subd. 8. [CONFLICT OF INTEREST. ] A director, employee, or
7 officer of the corporation may not participate in or vote on a
8 decision of the board relating to an orqanization in which the
9 director has either a direct or indirect financial interest .
10 Subd. 9. [CONTRIBUTIONS TO PUBLIC OFFICIALS; DISCLOSURE. ]
11 Each dir•ector shall file a statement with the ethical ractices
12 board disclosing the nature, amount, date, and recipient of anv
13 contribution made to a public official, olitical committee,
14 political fund, or political partv, as defined in cha ter 10A,
15 that:
16 �1� was made within the four years preceding appointment to
17 the Greater Minnesota board; and
18 �(2) was subject to the reporting requirements of chapter
19 10A.
20 The statement must be updated annuallv during the
21 director ' s term to reflect contributions made to ublic
22 officials during the appointed director ' s tenure.
23 Sec. 4. [1160.04J [CORPORATE PERSONNEL. ]
24 Subdivision 1. [GENERP,LLY. j The board shall appoint and
25 set the compensation for a president, who serves as chief
26 executive officer of the corporation, and who mav appoint
27 subordinate officers. The board mav designate the president as
28 its general agent. Subject to the control of the board, the
29 president shall emplov employees, consultants, and agents the
30 president considers necessarv. The staff of the corporation
31 must include individuals knowledgeable in commercial and
32 industrial financing, research and development, economic
33 development, and general fiscal affairs . The board shall define
34 the duties and designate the titles of the emplovees and agents.
35 Subd. 2. [STATUS OF EMPLOYEES. � Employees, officers, and
36 directors of the corporation are not state employees, but, at
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1 the option of the board, mav participate in the state retirement
2 plan and the state deferred compensation plan for em loyees in
3 the unclassified service and an insurance plan administered by
4 the commissioner of employee relations.
5 Subd. 3 . [CONTRIHUTIONS TO PUBLIC OFFICIALS; DISCLOSURE. ]
6 The president shall file a statement with the ethical practices
7 board disclosing the nature, amount, date, and reci ient of anv
8 contribution made to a public official which:
9 ( 1) was made within the four years precedinq em lovment
10 with the greater Minnesota board; and
11 ( 2) was subject to the reporting requirements of chapter
12 10A.
13 The statement must be updated annually durinq the
14 president ' s employment to reflect contributions made to public
15 officials during the president ' s tenure.
16 Sec. 5. [1160.05] [POWERS OF THE CORPORATION. J
17 (a) Except as otherwise provided in this article, the
18 corporation has the powers granted to a business corporation bv
19 section 302A.161, subdivisions 3; 4; 5; 7; 8; 9; 11; 12; 13,
20 except that the corporation mav not act as a eneral artner in
21 any partnership; 14; 15; 16; 17; 18 ; and 22.
22 (b) The state is not liable for the obliqations of the
23 corporation.
24 (c) Section 302A.041 applies to this article and the
25 corporation in the same manner that it a lies to business
26 corporations established under chapter 302A.
27 Sec. 6. [ 1160. 06] [FINANCIAL ASSISTANCE. ]
28 Subdivision� 1. [FINANCIAL ASSISTANCE; TYPES. � The
29 corporation may provide financial assistance to sole
30 proprietorships, businesses, or for-profit or nonprofit
31 organizations. Financial assistance includes, but is not
32 limited to, loan guarantees or insurance, direct loans, and
33 interest subsidy payments. The corporation may participate in
34 loans by purchasing from a lender up to 50 percent of each loan.
35 Subd. 2 . [EQUITY INVESTMENTS. ] The corporation may acquire
36 an interest in a product or a private business entitv, except
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1 that the corporation may not acquire an interest in a business
2 entity engaged in a trade or industry whose profits are directly
3 regulated by the commissioner of commerce or the department of
4 public service. The corporation may enter into joint venture
5 agreements with other private corporations to promote economic
6 development and job creation.
7 Subd. 3 . [GREP,TER MINNESOTA FINANCE AUTHORITY. ] The board
8 may designate the greater Minnesota finance authority to provide
9 financial assistance. The authority, if established, consists
10 of seven members, five of whom are members of the general public
11 appointed by the board with experience in business development,
. 12 finance, banking, or venture capital. The president of the
13 corporation and one board member must be members of the
14 authority. Members of the authority shall serve without
15 compensation, but shall receive necessary and actual expenses
16 while engaged in the business of the corporation.
17 Subd. 4. [STANDP,RDS. ] •The board may establish minimum
18 interest rates, security requirements, restrictions on the
19 amount of the corporation' s financial participation in a
20 project, and other 'financial standards the board determines
21 necessary to establish in providing financial assistance.
22 Subd. 5. [PREFERENCE. � In providing financial assistance,
23 the corporation must give preference to sole proprietorships,
24 businesses, or organizations that are starting or expanding
25 their operations in greater Minnesota.
26 Sec. 7 . [�1160. 07 ] [ON-SITE RESEARCH. J
27 The corporation may construct, acquire, lease, own, or
28 operate one or more on-site� research facilities in Minnesota. �
i
29 Sec. 8. [ 1160.08] [REGIONAL RESEARCH INSTITUTES. J
30 Subdivision 1. [ESTABLISHMENT. ] The board may establish up
31 to four regional research institutes in greater Minnesota. Each
32 institute shall be located at or near a post-secondary education
33 institution whose primary focus is comparable to the mission of
34 the institute.
35 Subd. 2. [PURPOSE. J The purpose of the institutes is to
36 provide applied research and development services to
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1 individuals, businesses, or organizations for the purposes of
2 developing the region' s economy through the utilization of the
3 region' s resources and the development of technology. Research
4 and development services may include on-site research, product
5 development grants, testing of production techniques and product
6 quality, marketing and business management assistance, and
7 feasibility studies.
8 Subd. 3 . [ INSTITUTE ADMINISTRATION; STAFF. ] The board
9 shall appoint a director to manage the operation of the
10 institute. The director may employ employees and enter into
11 contracts with post-secondary education governing boards for
12 research services of post-secondary institution staff,
13 facilities, or equipment.
14 Subd. 4. [RESEARCH CONTRACTS. � The director of each
15 institute may enter into contracts with individuals, businesses,
16 or organizations to provide research and development assistance
17 at institute facilities or at other sites the director
18 determines appropriate. The board shall establish the overall
19 contract guidelines. �
20 Subd. 5. [PRODUCT DEVELOPMENT GRANTS. ] The director of
21 each institute may provide product development qrants to those
22 individuals, businesses, or for-profit or nonprofit
23 organizations that, without financial assistance, would not be
24 able to undertake the development of a product or
25 technology-related service. The board shall establish
26 eligibility criteria and the terms of the product development
27 grants.
28 Subd. 6. [ INSTITUTE ADVISORY BOARD. ] A regional, research
29 institute advisory board may be appointed by the board. The
30 advisory board may consist of representatives of public
31 �ost-secondary institutions in the area surrounding the
32 institute, business owners, and members of the general public.
33 Terms and removal of inembers must be set by the board and the
34 members of each advisory board shall serve without compensation
35 but shall receive their necessarv and actual expenses. The
36 purpose of the advisory board is to provide the institute
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1 director assistance in operating the institute, review contract
2 proposals and provide recommendations relatin to product
3 development grants.
4 Subd. 7 . [DESIGNATED RESEP,RCH INSTITUTE. ] The agricultural
5 utilization research institute established in section 9 is
6 designated as one of the regional research institutes authorized
7 under this section.
8 Sec. 9. [1160.09 ] [AGRICULTURAL UTILIZATION RESEARCH
9 INSTITUTE. ]
10 Subdivision 1. [ESTABLISHMENT. ] The corporation shall
11 establish an agricultural utilization research institute �to
12 promote the establishment of new products and product uses and
13 the expansion of existing markets for the state' s a4ricultural
14 commodities and products. The institute must be located near an
15 existing agricultural research facilitv in the aqricultural
16 region of the state.
17 Subd. 2. [DUTIES. J In addition to the duties and powers
18 assigned to the institutes in section 8, the aaricultural
19 utilization research institute shall:
20 (1) identify the various market seqments characterized by
21 Minnesota' s agricultural industrv, address each segment ' s
22 individual needs, and identify development opportunities in each
23 segment;
24 ( 2) develop and implement a utilization program for each
25 segment that addresses its development needs and identifies
26 techniques to meet those needs;
27 ( 3) coordinate research among the public and private
28 organizations and individuals specifically addressing procedures
29 to transfer new technology to businesses, farmers and
30 individuals; and
31 ( 4) provide research grants to public and private
32 educational institutions and other organizations that are
33 undertaking basic and applied research that would promote the
34 development of the various agricultural industries.
35 Subd. 3. [STAFF. ] The corporation shall provide staff to
36 the agricultural utilization research institute and assist in
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1 carrying out the duties of the agricultural utilization research
2 institute.
3 Subd. 4. [AGRICULTURAL RESEARCH GRANTS. ] The institute may
4 make matching grants for agricultural product utilization
5 research to the University of Minnesota, a state universitv, a
6 community college, a Minnesota private colleqe or universitv, an
7 area vocational technical institute, a private corporation, or a
8 person. Grants may be matched from private sources, includinq
9 farm commodity groups and farm organizations.
10 Subd. 5 . [ADVISORY BOP,RD. ] A 26-member advisory board is
11 established to identify priorities for the agricultural
12 utilization research institute. Members of the advisory board
13 are appointed by the board. The advisory board consists of:
14 the chair of the Minnesota house of representatives agricultural
15 committee; the chair of the Minnesota senate aqricultural
16 committee; a representative from each of the 10 larqest
17 agricultural-related businesses in the state as determined bv
18 the corporation; a member from each of the a ro riate trade
19 organizations representing producers of beef cattle, dairv,
20 corn, soybeans, pork, wheat, turkey, barlev, wild rice, edible
21 beans, eggs, and potatoes; a member of the Farmers ' s Union; and
22 a member of the Farm Bureau. Terms and removal of inembers must
23 be set by the board and members of the advisory board serve
24 without compensation but shall receive their necessarv and
25 actual expenses.
26 The advisory board shall annuallv provide a list of
27 Qriorities and suggested research and marketing studies that
28 should be performed by the agricultural utilization research
29 institute.
30 Sec. 10 . [1160. 10 ] [RESEP,RCH ADVISORY BOARD. ]
31 Subdivision l. [ESTABLISHMENT. J The board shall establish
32 a research advisory board to provide advisorv assistance to the
33 board and the research institutes. The research advisory board
34 consists of seven members appointed by the board. Terms and
35 removal of inembers must be set by the board and research
36 advisory board members shall serve without compensation but
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1 shall receive their necessary and actual expenses while enqaged
2 in the business of the corporation. The membership of the
3 advisory board must have representatives that are experienced or
4 have expertise in technology, applied research, agriculture,
5 business, labor, or productivity.
6 Subd. 2. [DUTIES. ] The research advisory board has the
7 following duties and responsibilities:
8 (a) Identify specific areas where research and development
9 will contribute to the productivity of the state' s businesses
10 and farms.
11 (b) Determine specific areas where financial assistance for
12 research and developmen� could assist the development of
13 businesses and create new employment opportunities.
14 (c) Advise the board in the development and establishment
15 of the regional research institutes and the research grants to
16 public and private post-secondary education institutions.
17 (d) Advise public and private post-secondary education
18 institutions on the research and development needs of businesses
19 in Minnesota. �
20 (e) Review the applications and make recommendations to the
�
21 board for research grants to public and private post-secondary
22 education institutions.
23 (f) Develop guidelines for an effective peer review process
24 for evaluating scientifically- or technologically-related
25 financial assistance.
26 Sec. 11. [1160.11) [RESEARCH GRANTS TO EDUCATION UNITS. J
27 Subdivision 1. (GRANTS GENERALLY. j The board may make
28 matching� grants to public and private post-secondary education
29 institutions or units within those institutions, including the
30 natural resource research institute, for applied research and
31 development. Grants are to be made for projects which will
32 likely result in assisting economic and employment development
33 in greater Minnesota. The corporation board shall not give
34 final approval to a research grant until it has received an
35 evaluation and recommendation from the research advisory board
36 established in section 10.
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1 Sec. 12. (1160.12] [GREATER MINNESOTA FUND. ]
2 �a) The greater Minnesota fund is created in the state
3 treasury. The board may require the commissioner of finance to
4 create separate accounts within the fund for use in accordance
5 with the fund' s purposes. Monev in the fund not needed for the
6 immediate purposes of the corporation mav be invested by the
7 corporation in any way authorized bv section 11A. 24. Money in
8 the fund is appropriated to the corporation to be used as
9 provided in this chapter.
10 (b) The fund consists of:
11 (1) money appropriated and transferred from other state
12 funds;
13 ( 2) fees and charges collected bv the corporation;
14 ( 3) income from investments and purchases;
15 (4) revenue from loans, rentals, rovalties, dividends, and
16 other proceeds collected in connection with lawful corporate
17 purposes; and
18 (5) gifts, donations, and beQUests made to the corporation.
19 Sec. 13. [1160.13 ] [AGRICULTURAL PROJECT UTILIZATION
20 FUND. ]
21 The agricultural project utilization fund is a fund in the
22 state treasury. Money in the fund is appropriated to the
23 agricultural utilization research institute to be used for
24 agricultural research grants as rovided in section 9,
25 subdivision 4, and for the agricultural utilization research
26 institute. •
27 Sec. 14. [1160.14 ] [AUDITS. ]
� 28 The corporation board shall contract with a certified
29 public accounting firm to do a financial and compliance audit of
30 the corporation and any subsidiary annually in accordance with
31 generally accepted accountinq standards.
32 The books and records of the corporation and anv
33 subsidiary, fund, or entity to be administered or governed by
34 the corporation are subject to audit without previous notice by
35 the legislative auditor .
36 Sec. 15. [1160.15] [REPORTS. J
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1 The board shall report to the appro riate committees of the
2 legislature and the governor on the activities of the
3 corporation by January 1 of each year . The report must include,
4 at least, a description of projects supported by the
5 corporation, an account of all grants made bv the corporation
6 during the calendar year, the source and amount of all monev
7 collected and distributed by the corporation, the corporation' s
8 assets and liabilities, an explanation of administrative
9 expenses, and any amendments to the operational plan. Reports
10 must be made to the legislature as required by section 3 .195.
11 Sec. 16 . [REGISTERED NAME. J
12 Notwithstanding Minnesota Statutes, section 302A.117, the
13 secretary of state shall register the name "Greater Minnesota
14 Corporation" on behalf of the corporation.
15 Sec. 17. [ INITIAL APPOINTMENTS. ]
16 Notwithstanding section 3, subdivision 2, the governor
17 shall appoint the initial members of the board of directors of
18 the Greater Minnesota Corporation, subject to the advice and
19 consent of the senate, as follows: four to� six-year terms, four
20 to four-year terms, and three to two-year terms. As the terms
Z1 of the initial appointments expire, appointments must be made by
22 the board, subject to the advice and consent of the senate.
23 Sec. 18. (NATURAL RESOURSES RESEARCH INSTITUTE. J
24 The Greater Minnesota Corporation board and the University
25 of Minnesota board of reqents may examine the feasibility of
26 entering into a formal agreement for joint administration or
27 transfer of the natural resources research institute from the
28 University to the corporation. The corporation and board of
29 regents shall report to the governor and legislative by January
30 15, 1988. The report must include recommendations for the
31 structure for administrating the institution, the potential use
32 of university staff and facilities, funding sources and whether
33 the institute should be tran�ferred to the Greater Minnesota
34 Corporation. The corporation may not establish a regional
35 institute whose research focus is comparable to the present
36 research undertaken at the natural resources research institute.
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1 Sec. 19. [VENTURE CAPITAL STUDY. ]
2 The Greater Minnesota Corporation shall study the effect
3 and the possible administrative and legal structure of the •
4 establishment of a for-profit venture capital corporation. This
5 venture capital corporation may be capitalized by a state
6 appropriation that in turn may be converted into shares of stock
7 owned by every resident of the state. This corporation would
8 invest only in Minnesota companies or production facilities
9 located in the state with a preference to ventures that utilize
10 the state' s resources and intermediate products and services.
11 The venture capital corporation would invest in local capital
12 venture pools that are managed by experienced private venture
. 13 capital firms and this corporation would only provide investment
14 capital for product development and start-up business
15 development. The venture capital corporation would target its
16 investment capital to products and businesses that reduce costs
17 to the state' s residents and government jurisdictions such as
18 products that improve resource efficiency or products that
19 improve the independence of the physically disabled.
20 The study may be completed directly by the Greater
21 Minnesota Corporation or the corporation may contract with a
22 business, state agency, organization, or individual to complete
23 the study. The study must include the examination of at least
24 the following:
25 ( 1) the anticipated demand for venture capital that meets
26 the investment criteria of the venture capital corporation;
27 ( 2) an estimation of the start-up costs of the venture
28 capital corporation;
29 ( 3) an estimation of on-going administrative costs of the
30 venture capital corporation including shareholder-related costs;
31 ( 4) the most appropriate legal structure for the venture
32 capital corporation including recommendations for the enabling
33 legislation for the corporation;
34 ( 5) an estimation of the potential additional investment
35 through stock purchases by Minnesota residents;
36 (6) an inventory of experienced and interested local
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1 venture capital firms that the corporation would utilize in
2 distributing its venture capital; and
3 (7) an analysis of the type of products that meet the
4 investment criteria of the venture capital corporation.
5 The Greater Minnesota Corporation shall submit the study to
6 the legislature and the governor by July 1, 1988 .
7 Sec. 20. [DISSOLUTION. J
8 In the event of dissolution of the Greater Minnesota
9 Corporation for any reason, the state of Minnesota, upon action
10 by the governor, and after consultation with the legislative
11 advisory commission, may require the liquidation of all holdings
12 and investments and the return of the proceeds of that
13 liquidation and any wholly-owned assets of the corporation to
14 the state, in exchange for the assumption of all outstanding
15 obligations of the corporation.
16 If the corporation is dissolved, or certain of its
17 functions transferred to another entity, the assets and
18 liabi�lities and property associated with the dissolved or
19 transferred functions must return to the state or to the entity
20 designated by law.
21 Sec. 21. [OPERATIONAL PLAN. ]
22 The board of directors of the Greater Minnesota Corporation
23 shall prepare a comprehensive operational plan and submit the
24 plan to the governor and the legislature by November 15, 1987 .
25 The operational plan must at least include operating procedures,
26 accounting procedures, grant procedures, loan procedures,
27 personnel procedures, investment procedures, and board conduct
28 and 2thics.
29 If the board proposes to make equity investments under
30 section 6, subdivision 2, the board shall explain in the report
31 how the investments will be made, how much money will be
32 invested in them, how much private money is expected to be
33 invested in the same investments, and why equity investments
34 would be more desirable and effective than the other means of
35 promoting development that are available to the board. No
36 equity investments may be made unless the board has first
23 .
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1 submitted the information required bv this section.
2 In addition, the operational plan must include a budqet
3 proposal and a five-year strateqic plan settin out its
4 objectives and general strateg_y for achievin the ob 'ectives.
5 It must identify sources and amounts of available
6 nongovernmental money and the purposes for which the money mav
7 be used.
8 Sec. 22. [LOAN PROGRAMS TERMINATED; ADMINISTRP,TION; CREDIT
9 OF REPAYMENTS. ]
10 The following loan programs administered bv the Minnesota
11 energy and economic development authoritv are terminated: the
12 special assistance program under section 116M.07, subdivision
13 11, except for the small business development loans; the
14 technology product loan program; the tourism loan program
15 created under section 116M.07; the enerqv loan insurance program
16 under section 116M.11; the energv development fund proqram under
17 section 116M.12; and the Minnesota fund program under sections
18 472.11 to 472.13 . Loan repavments, earnings, releases from
19 insurance reserve accounts, and other income from these rograms
20 must be paid to the commissioner of enerqy and economic
21 development, who shall deposit them in the state treasurv and
22 credit them to the greater Minnesota fund. "
23 Sec. 23. [LOAN PROGRAM ADMINISTRATION. J
24 Subdivision 1. [POWERS. ] To administer the loan proqrams
25 transferred to the department of energv and economic develo ment
26 by section 22, the commissioner of energv and economic
27 development has the powers in this section.
28 Subd. 2. [PERSONAL PROPERTY. � The commissioner may
29 acquire, hold, and dispose of personal property where necessarv
30 or appropriate to protect a loan in which the department has an
31 interest.
32 Subd. 3. [REAL PROPERTY. ] The commissioner may acquire
33 real property, or an interest in real propertv, in the
34 department ' s name, by purchase or foreclosure, where the
35 acquisition is necessar_v or appropriate to protect a loan in
36 which the department has an interest and mav sell, transfer, and
24
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1 convey the property to a buyer and, in the event the sale,
2 transfer, or conveyance cannot be effected with reasonable
3 promptness or at a reasonable price, may lease the property to a
4 tenant.
. 5 Subd. 4. [ INSURANCE. ] The commissioner may procure
6 insurance against a loss in connection with the department ' s
7 property in the amounts, and from the insurers, as may be
8 necessary or desirable.
9 Subd. 5. [LOAN TERMS; MODIFICATION. ] The commissioner may
10 consent, whenever it is considered necessary or desirable to
11 increase the probability that the loan will be repaid, to the
12 modification of the rate of interest, time of payment, or
13 installment of principal or interest, or other term, of a
14 contract or agreement to which the department is a party.
15 Subd. 6. [FINANCIAL INFORMATION. ] Financial information,
16 including credit reports, financial statements, and net worth
17 calculations, received or prepared by the department regarding a
18 department loan, financial assistance, or insurance is private
19 data with r@gard to data on individuals as defined in section
20 13.02, subdivision 12 and nonpublic data with regard to data not
21 on individuals as defined in section 13.02, subdivision 9.
22 Subd. 7. [ROYALTY PAYMENTS. ] The department may receive
23 payments in the form of royalties, dividends, or other proceeds
24 in connection with technology-related products, energy
25 conservation products, or other equipment which it has purchased
26 or in which it has participated.
27 Sec. 24. [REPEALER. ]
28 Minnesota Statutes 1986, sections 116M.1]�; 116M.12; 472.11,
29 subdivisions 3, 5, 6, 7, 8, and 9; 472.12, subdivisions 2, 3,
30 and 4; 472.125; and 472.13 , subdivisions 2, 3, and 4, are
31 repealed.
32 Sec. 25. [APPROPRIATION. ]
33 $6,500,000 is appropriated from the general fund for
34 transfer to the greater Minnesota fund, to be available until
35 expended. $3, 500,000 is appropriated from the rural
36 rehabilitation revolving fund for transfer to the agricultural•
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1 product utilization fund, to be available until expended.
2 Sec. 26. [EFFECTIVE DATE. ]
3 This article is effective the day following final
4 enactment, except that sections 19 to 22 are effective July 1,
5 1987; and section 6, subdivisions 1 to 3, are effective July 1,
6 1988.
7 P,RTICLE 3
8 MINNESOTA PUHLIC FACILITIES AUTHORITY
9 Section 1. Minnesota Statutes 1986, section 116. 16,
10 subdivision 2, is amended to read:
11 Subd. 2. [DEFINITIONS. � In this section and sections
12 116.17 and 116.18:
13 (1) Agency means the Minnesota pollution control agency
14 created by this chapter;
15 ( 2) Municipality means any county, city, and town, the
16 metropolitan waste control commission established in chapter 473
17 and the metropolitan council when acting under the provisions of
18 that chapter or an Indian tribe or an authorized Indian tribal
19 organization, and any other governmental subdivision of the
20 s�ate responsible by law for the prevention, control, and
21 abatement of water pollution in any area of the state;
22 (3) Pollution control fund means the Minnesota state water
23 pollution control fund created by subdivision 1;
24 ( 4) Hond account means the Minnesota state water pollution
25 control bond account created in the state bond fund by section
26 116.17, subdivision 4;
27 ( 5) Terms defined in section 115.01 have the meanings
28 therein given them; �
29 (6) The eligible cost of any municipal project, except as
30 otherwise provided in clauses (7) and ( 8) , includes (a)
31 preliminary planning to determine the economic, engineering, and
32 environmental feasibility of the project; (b) engineering,
33 architectural, legal, fiscal, economic, sociological, project
34 administrative costs of the agency and the municipality, and
35 other investigations and studies; (c) surveys, designs, plans,
36 working drawings, specifications, procedures, and other actions
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1 necessary to the planning, design, and construction of the
2 project; (d) erection, building, acquisition, alteration,
3 remodeling, improvement, and extension of disposal systems; (e)
4 inspection and supervision of construction; and (f) all other
5 expenses of the kinds enumerated in section 475.65.
6 (7) For state independent grant and matching grant purposes
7 hereunder, the eligible cost for grant applicants shall be the
8 eligible cost as determined by the United States environmental
9 protection agency under the Federal Water Pollution Control Act,
10 aa-a���a�aT United States Code, title 33, aeetien-�3�4=-et-seq
11 sections 1281 to 1299 . �
12 ( 8) Notwithstanding clause (7) , for state grants under the
13 state independent grants program, the eligible cost includes the
14 acquisition of land for stabilization ponds, the construction of
15 collector sewers for totally unsewered statutory and home rule
16 charter cities and towns described under section 368.01,
17 subdivision 1 or la, that are in existence on January 1, 19.85,
18 and the provision of reserve capacity sufficient to serve the
19 reasonable needs of the municipality for 20 years in the case of
20 treatment works and 40 years in the case of sewer, systems.
21 Notwithstanding clause (7) , for state grants under the state
22 independent grants program, the eligible cost does not include
23 the provision of service to seasonal homes, or cost increases
24 from contingencies that exceed three percent of as-bid costs or
25 cost increases from unanticipated site conditions that exceed an
26 additional two percent of as-bid costs.
27 (9) Authority means the Minnesota public facilities
28 authority established in section 20.
29 Sec. 2. Minnesota Statutes 198b, section 116.16,
30 subdivision 4, is amended to read:
31 Subd. 4 . [DISHURSEMENTS. � Disbursements from the fund
32 shall be made by the state treasurer upon order of the
33 commissioner of finance at the times and in the amounts
34 requested by the agency or the Minnesota public facilities
35 authority in accordance with the applicable state and federal
36 law governing such disbursements; except that no appropriation
27
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1 or loan of state funds for any project shall be disbursed to any
2 municipality until and unless the agency has by resolution
3 determined the total estimated cost of the project, and
4 ascertained that financing of the project is assured by:
5 (1) A grant to the municipality by an agency of the federal
6 government within the amount of funds then appropriated to that
7 agency and allocated by it to projects within the state; or
8 ( 2) A grant of funds appropriated by state law; or
9 (3) A loan authorized by state law; or
10 (4) The appropriation of proceeds of bonds or other funds
11 of the municipality to a fund for the construction of the
12 project; or
13 ( 5) Any or all of the means referred to in paragraphs ( 1)
14 to ( 4) ; and
15 (6) An irrevocable undertaking, by resolution of the
16 governing body of the municipality, to use all funds so made
17 available exclusively for the construction of the project, and
18 to pay any additional amount by which the cost of the project
19 exceeds the estimate, by the appropriation to the construction
20 fund of additional municipal funds or the proceeds of additional
21 bonds to be issued by the municipality; and
22 ('7) Conformity of the project and of the loan or grant
23 application with the state water pollution control plan as
24 certified to the federal government and with all other
25 conditions under applicable state and federal law for a grant of
26 state or federal funds of the nature and in the amount involved.
27 Sec. 3. Minnesota Statutes 1986, section 116.16,
28 subdivision 5, is amended to read:
29 � Subd. 5. [RULES. ] (a) The agency shall promulgate
30 permanent rules and may promulgate emergency rules for the
31 administration of grants and loans authorized to be made from
32 the fund or from federal funds under the Federal Water Pollution
33 Control Act, a�-a�e�dedT which rules, however, shall not be
34 applicable to the issuance of bonds by the commissioner of
35 finance as provided in section 116.17. The rules shall contain
36 as a minimum:
28
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� S.F. No. 1
1 ( 1) procedures for application by municipalities;
2 ( 2) conditions for the� administration of the grant or loan;
3 ( 3) criteria for the ranking of projects in order of
4 priority for grants or loans, based on factors including the
5 extent and nature of pollution, technological feasibility,
6 assurance of proper operation, maintenance and replacement, and
7 participation in multimunicipal systems; and
8 ( 4) such other matters as the agency and the director find
9 necessary to the proper administration of the grant program.
10 (b) Except as otherwise provided in sections 116.16 to
11 116.18, the rules for the administration of state independent
12 grants must comply, to the extent practicable, with provisions
13 relating directly to protection of the envirortment contained in
14 the Federal Water Pollution Control Act, as amended, and
15 regulations and guidelines of the United States environmental
16 protection agency promulgated under the act, except provisions
17 regarding allocation contained in section 205 of the act and
18 regulations and guidelines promulgated under section 205 of the
19 act. This provision does not require approval from federal
20 agencies for the issuance of grants or for the construction of
21 projects under the state independent grants program. �
22 (c) For purposes of awarding independent state grants, the
23 agency may by rule waive the federal 20-year planning
24 requirement for municipalities with a population of less than
25 1,500.
26 Sec. 4. Minnesota Statutes 1986, section 116.16,
27 subdivision 9, is amended to read:
28 Subd. 9. [APPLICATIONS. ] Applications by municipalities
29 for grants or loans from the fund shall be made to the direeter
30 ef-tke-ageney authority on forms requiring information
31 prescribed by rules of the agency. The authority shall send the
32 application to the agency within ten days of receipt. The
33 director shall certify to the egeney authority those
34 applications which appear to meet the criteria set forth in
35 sections 116.16 to 116.18 and the rules promulgated hereunder ,
36 and the egeney authority shall award the grants or loans on the
29
S.F. No. 1 �
1 basis of the criteria and priorities established by the agency
2 in its rules and in sections 116.16 to 116.18. A municipality
3 that is designated under agency rules to receive state or
4 federal funding for a project and that does not make a timely
5 application for or that refuses the funding is not eligible for
6 either state or federal funding for that project in that fiscal
7 year or the subsequent year.
8 Sec. 5. Minnesota Statutes 1986, section 116.16, is
9 amended by adding a subdivision to read:
10 Subd. 11. (AWARDS OF GRP,NTS AND LOANS. ] Upon certification
11 by the director of the pollution control agency, the authority
12 shall notify a municipality that is to receive a grant or loan
13 and advise the municipality of the grant agreement or loan form
14 or other document that must be executed to complete the grant or
15 loan. Upon certification from the director that the work has
16 been completed and that payment is proper, the authority shall
17 pay to the municipality the periodic grant or loan payment.
18 Sec. 6. Minnesota Statutes 1986, section 116.16, is
19 amended by adding a subdivision to read: �
20 Subd. 12. [AMENDMENTS. ] A municipality that seeks an
21 amendment to a previously awarded grant or loan shall follow the
22 procedure in subdivision 9 for applying to the authority. The
23 request for a grant or loan amendment must be forwarded by the
24 authority to the director of the pollution control agency for
25 consideration, and the authority shall process a grant or loan
26 amendment that is approved by the director.
27 Sec. 7. Minnesota Statutes 1986, section 116.18,
28 subdivision 2a, is amended to read:
29 Subd. 2a. [STATE MP,TCHING GRANTS PROGRAM BEGINNING OCTOBER
30 l, �984 1987 . ] For projects tendered, on or after October
31 1, �98# 1987, a grant of federal money under section 201(g) ,
32 section 202, 203, or 206(f) of the Federal Water Pollution
33 Control Act, as amended, United States Code, title 33, sections
34 1251 to 1376, at 55 percent or more of the eligible cost for
35 construction of the treatment works, state money appropriated
36 under subdivision l must be expended for �p-to-39 50 percent of
30
� �-���«y
' S.F. No. 1
1 the nonfederal share of the eligible cost of construction for
2 municipalities fer-ahtek-the-eenatrt�etten-aers�d-otkerai�e-i�peae
3 aignifiear�t-ftnaneta�-herd�htp--proerded;-thet-r�et-�esa-tkan-tert
4 pereent-ef-the-e�igtb�e-eeat-�nnat-be-paid-by-the-�tsnteipe�ttq-er
5 egeney-eenatrtsetrr�g-the-pre7eet.---�f-e-n��a�eipa�itp-t�-tendered
6 federa�-and-atete-grent�-tr�-e-pereentage-e��n�atide�y-exeeedtreg
7 96-pereent-ef-the-e�igtb�e-eoat-ef-eenatr�etren;-tke-atate
8 pe���tten-ee�tre�-ageney-aha��-redtsee-the-grant-te-the
9 n�nrtieipQ�ity-�sr�e2er-thia-ehapter-te-the-extent-r�eee�aary-te
10 en��re-tket-not-�eaa-than-tea-pereent-ef-the-e�igib�e-eeat-at�}
11 be-paid-by-the-�tsnietpa�ity.---4�ke-en�et�nta-of-tke-matehtng-granta
12 n���t-be-bet�ed-en-per-eenneetien-eaptta�-eeat�-�ediQn-he�aehe�d
13 ineen�e:-nr�d-per-eepita-ed�+��ted-Qa�eaaed-de�natten with
14 populations of 25,000 or less.
15 Sec. 8. Minnesota Statutes 1986, section 116.18,
16 subdivision 3a, is amended to read:
17 Subd. 3a. [STATE INDEPENDENT GRANTS PROGRAM. ] (a) The
18 ageaey Minnesota public facilities authoritv may award
19 independent grants for projects certified by the state pollution
20 control director for 50 percent or, if the ageney-req�ire�
21 aatia���a-treatn�entT-65 population of the municipality is 25,000 �
22 or less, 80 percent of the eligible cost of construction. �ke
23 egenep-�ay-aevard-rr�dependent-grer�ta-for-�p-te-an-addtttena�-39
24 perees�t-erT-if-the-ager�ey-reqtsirea-adver�eed-treet�entT-ssp-te-an
25 additiene�-�5-pereent-ef-tke-e�igib�e-eest-ef-eenatrnetior�-te
26 �esn�eipa�tttes-fer-ahiek-the-eenatraetten-aen�d-etheraiae-i�peae
27 aignifteant-fsnanete�-hardahip;-the-an�o�r�ta-ef-the-additiona�
28 grenta-ahe��-be-baaed-en-per-eenneetion-eapita�-eeat?-�edten
29 heasehe�d-=nee�ne�-and-per-eaprtn-adj�ated-Qa�eaaed-ee��etien.-
30 These grants may be awarded in separate steps for planning and
31 design in addition to actual construction. Until December 31,
32 1990, not more than 20 percent of the total amount of grants
33 awarded under this subdivision in any single fiscal year may be
34 awarded to a single grantee.
35 (b) Up to ten percent of the money to be awarded as grants
36 under this subdivision in any single fiscal year shall be set
31
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1 aside for municipalities having substantial economic development
2 projects that cannot come to fruition without municipal
3 wastewater treatment improvements. The agency shall forward its
4 municipal needs list to the eonu�ta�tener-ef-energp-end-eeeae�re
5 dede�ep�ent authority at the beginning of each fiscal year, and
6 the eeauniaatener authority shall review the list and identify
7 those municipalities having substantial economic development
8 projects. After the first 90 percent of the total available
9 money is allocated to municipalities in accordance with agency
10 priorities, the set-aside shall be used by the ageney authority
11 to award grants to remaining municipalities that have been
12 identified.
13 (c) Grants �may also be awarded under this subdivision to
14 reimburse municipalities willing to proceed with projects and be
15 reimbursed in a subsequent year conditioned upon appropriation
16 of sufficient money under subdivision 1 for that year . �he
17 �ext���-a�e�nt-ef-the-res�bnrae�ent-the-nge�ey-may-ee�unit-tn-any
18 atng�e-ftaea�-pear-is-eq�e�-te-the-a�o�nt-nea�y-appreprrated-te
19 the-atate-grnnt�-pregra��-fer-that-qear.-
20 (d) A municipality that applies for a state independent
21 grant to be reimbursed for a project must receive an additional
22 five percent of the total eligible cost of construction beyond
23 the normal percentage to which the municipality is entitled
24 under paragraph (a) .
25 Sec. 9. �STATE INDEPENDENT GRP,NTS PROGRAM. ]
26 (a) The state pollution control agency may award
27 independent grants for projects for 50 percent or, if the
28 population of the municipality is 25,000 or less, 80 percent of
29 the eliaible cost of construction. These grants may be awarded
30 in separate steps for planning and design in addition to actual
31 construction. Until December 31, 1990, not more than 20 percent
32 of the total amount of grants awarded under this section in a
33 fiscal year may be awarded to a single grantee.
34 (b) Up to ten percent of the money to be awarded as grants
35 under this section in a fiscal year must be set aside for
36 municipalities having substantial economic development projects
- .
32
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. S.F. No. 1
1 that cannot come to fruition without municipal wastewater
2 treatment improvements. The agency shall forward its municipal
3 needs list to the authority at the beginning of each fiscal
4 year, and the authority shal� review the list and identify those
5 municipalities having substantial economic development projects.
6 After the first 90 percent of the total available money is
7 allocated to municipalities in accordance with agency
8 priorities, the set-aside must be used by the authority to award
9 grants to remaining municipalities that have been identified.
10 (c) Grants may also be awarded under this section to
11 reimburse municipalities willing to proceed with projects and be
12 reimbursed in a subsequent year conditioned upon appropriation
13 of sufficient money under Minnesota Statutes, section 116 . 18,
14 subdivision 1, for that year.
15 �d) A municipality that applies for a state independent
16 grant to be reimbursed for a project must receive an additional
17 five percent of the total eligible cost of construction beyond
18 the normal percentage to which the municipality is entitled
19 under paragraph (a) .
20 Sec. I0. Minnesota Statutes 1986, section 116J.36,
21 subdivision 2, is amended to read:
22 Subd. 2. [DEFINITIONS. ] In this section:
23 (a) "Authority" means the Minnesota public facilities
24 authority.
25 � "Construction costs" means all costs associated with
26 the construction, modification or expansion of a district
27 heating system except for preliminary planning costs and
. 28 detailed design costs. Construction costs include the cost of
29 debt service from the time a construction loan is made until
30 five years after the begir�ning of the operation of the district
31 heating system constructed or the part of the system being
32 modified or expanded.
33 fb} � "District heating" means the use of a central
34 energy conversion facility to produce hot water or steam for a
35 district heating system. District heating facilities may also
36 produce electricity in addition to hot water or steam.
33
S.F. No. 1 -
1 fe} � "Municipality" means any county, home rule charter
2 or statutory city, town, school district or a municipal power
3 agency formed pursuant to sections 453. 53 to 453. 62. �
4 Municipality also means a public utility, as defined in section
5 452.01, subdivision 3, owned and operated by a city, however
6 organized. For purposes of a district heating system only,
7 municipality also means a nonprofit corporation organized
8 pursuant to the provisions of chapter 317 whose membership is
9 limited to the mayor and governing body of the city in which the
10 district heating system is located.
11 fd� � "District heating system" means any existing or
12 proposed facility for (1) the production, through cogeneration
13 or otherwise, of hot water or steam to be used for district
14 heating, or ( 2) the transmission and distribution of hot water
15 or steam for district heating either directly to heating
16 consumers or to another facility or facilities for transmission
17 and distribution, or (3) any part or �combination of the
18 foregoing facilities.
19 fe} � "Qualified energy improvement" means a
20 cost-effective capital improvement to public land, buildings, or
21 energy using systems, other than a district heating system,
22 _ including the purchase or installation of equipment to reduce
23 the usage of conventional energy sources or to use alternative
24 energy resources. Qualified energy improvements also include
25 waste-to-energy facilities that meet the criteria specified in
26 subdivision 8a and any rule adopted under that subdivision.
27 Qualified energy improvements shall meet all environmental and
28 permitting stanc�ards established by state and federal law.
29 Sec. 11. Minnesota Statutes 1986, section 116J. 36,
30 subdivision 3b, is amended to read: �
31 Subd. 3b. [GRANT ELIGIBILITY, DISTRICT HEP,TING. J The
32 een�t��iener-ef-energy-ar�d-eeonen�te-deee�eprnent authority may
33 provide district heating system planning grants to
34 municipalities fer-p�annsng-re�ated-te-the-deve�ep�ent-ef
35 di�triet-heettng-ayate�a certified by the director of public
36 service as eligible to receive lannin qrants. The
34
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S.F. No. 1
1 municipality must demonstrate that a community heatload survey
2 and map have been successfully completed, that potential
3 district heating load is sufficiently large to justify further
4 consideration, and that sufficient resources are available for
5 the municipality to meet its financial requirements. Eligible
6 planning grant costs include project definition, development of
7 preliminary financing and distribution system plans, and
8 obtaining commitment for detailed planning or design and
9 preparation of a final report. The amount of the grant to a
10 municipality is limited to 90 percent of eligible planning costs
11 and shall not exceed $70,000 as established by rule or emergency
12 rule.
13 Sec. 12. Minnesota Statutes 1986, section 116J. 36,
14 subdivision 3c, is amended to read:
15 Subd. 3c. [GRANT EL�GIBILITY, QUALIFIED ENERGY
16 IMPROVEMENTS. ] The eenu�ia�ioner-ef-energy-ead-eeene�ie
17 dede�ep�eat authority may provide gualified energy improvement
18 planning grants to municipalities fer-p�ttnntng-re�ated-te-the
19 dede�ep�ent-of-q�a�tfted-energy-impreaen�ent� certified by the
20 director of public service as eligible to receive planning
21 rg ants. The municipality must demonstrate that sufficient
22 resources are available for the municipality to meet its
23 financial requirements. Eligible planning grant costs include
24 definition of the improvement, development of preliminary
25 financing plans, and obtaining commitment for detailed planning
26 or design and preparation of a final report. The amount of a
27 grant to a municipality is limited to 90 percent of eligible
28 planning costs and must not exceed �$100,000 as established by
29 rule or emergency rule.
30 Sec. 13. Minnesota Statutes 1986, section 116J. 36,
31 subdivision 8, is amended to read:
32 Subd. 8. [LOAN APPROVAL. J The eeauata�ier�er-ef-energy-e�n8
33 eeer�e�ie-dede�epn+eat director of public service shall prepare
34 and submit to the energp-end-eeene�se-dede�op�ner�t authority
35 separate priority lists of loan requests for district heating
36 systems and qualified energy improvements. The priority list
35
S.F. No. 1 �
1 for district heating loans �he��-eentat�-tke-s�ppertrng
2 infer�atsen-req�ired-by must be based on the requirements under
3 subdivisions 3, 4, 5, 6, and 7 . The priority list for qualified
4 energy improvements aha��-eentatn-the-��pperting-tnfor�atte�
5 req�rred-by must be based on the requirements under subdivisions
6 3a, 3c, 4a, 5, and 6 . �he-reee�endatten-ef-the-a�therstp-aha}}
7 be-tran��ttted-te-the-eenu�ia�te�er-ef-finanee.- The commissioner
8 of finance shall sell bonds and the authority shall make loans
9 for district heating projects and qualified energy improvements
10 only upon the recommendation of the a�therrty director of public
11 service.
12 Sec. 14. Minnesota Statutes 1986, section 116J. 36 ,
13 subdivision 8a, is amended to read:
14 Subd. 8a. (CRITERIA FOR QUALIFIED ENERGY IMPROVEMENTS. ]
15 Qualified energy improvements eligible for loans must meet
16 criteria established in rule by the eenu�taarener-ef-energy-and
17 eeene�ie-deee�ep�ent director of public service. Rules shall
18 include criteria for analyzing the cost-effectiveness of
19 improvements. Rules relating to qualified energy improvements
20 involving a waste-to-energy facility must be adopted in
21 consultation with the waste management board, the authority, and
22 the pollution control agency. An improvement involving a
23 waste-to-energy facility must be part of a solid waste
24 management plan approved by the pollution control agency or a
25 plan approved under section 473.803.
26 Sec. 15 . Minnesota Statutes 1986, section 116J. 36,
27 subdivision 11, is amended to read:
28 Subd. 11. [RULES. ] The commissioner of energy and economic
29 development shall adopt rules and may adopt emergency rules
30 necessary to carry out the programs of this section. The
31 director of public service shall adopt rules for the
32 administration of programs under this section. The ee�iaare�er
33 ef-energy-n�d-eeene�te-deee�ep�eat director of public service
34 may adopt emergency rules pursuant to sections 14.29 to 14.36,
35 meeting the requirements of this section. The rules shall
36 contain as a minimum:
36
� ` �� �y li��`(
� S.F. No. � l
1 (a) Procedures for application by municipalities; and
2 (b) Criteria for reviewing grant and loan applications.
3 Sec. 16. Minnesota Statutes 1986, section 116J. 37,
4 subdivision 1, is amended to read:
5 Subdivision 1. [DEFINITIONS. ] In this section:
6 (a) "Commissioner" means the commissioner of energy and
7 economic development. Upon passage of legislation creating a
8 body known as the Minnesota eaergy public facilities authority,
9 the duties assigned to the commissioner in this section are
10 delegated to the authority.
11 (b) "Maxi-audit" has the meaning given in section 116J.06,
12 subdivision 12.
13 (c) "Energy conservation investments" mean all capital
14 expenditures that are associated with conservation measures
15 identified in a maxi-audit and that have a ten-year or less
16 payback period. Public school districts that recei,ved a federal
17 institutional building grant in 1984 to convert a heating system
18 to wood, and that apply for an energy conservation investment
19 loan to match a federal grant for wood conversion, shall be
20 allowed to calculate payback of conservation measures based on
21 the costs of the traditional fuel in use prior to the wood
22 conversion.
23 . Sec. 17. Minnesota Statutes 1986, section 116J.37, is
24 amended by adding a subdivision to read:
25 Subd. 8. [TECHNICAL SUPPORT. ] The director of public
26 service shall prepare and submit to the authority the technical
27 evaluation of all applicants under this section.
28 Sec. 18. [446A.O1J [MINNESOTA PUBLIC FACILITIES AUTHORITY
29 ACT. ]
30 Sections 18 to 26 may be cited as the "Minnesota public
31 facilities authority act. "
32 Sec. 19 . [446A.02J [DEFINITIONS. J
33 Subdivision 1. [P,PPLICABILITY. J For the purposes of
34 sections 18 to 26, the terms in this section have the meanings
35 given them.
36 Subd. 2. [AUTHORITY. ] "Authority" means the Minnesota
37
S.F. No. 1 "
1 public facilities authority.
2 Subd. 3 . [COMMISSIONER. ] "Commissioner" means the
3 commissioner of energy and economic development.
4 Subd. 4. [FEDERP,L WATER POLLUTION CONTROL ACT. ] "Federal
5 Water Pollution Control Act" means the Federal Water Pollution
6 Control Act, as amended, United States Code, title 33, sections
7 1281 to 1299.
8 Subd. 5. [GOVERNMENTAL UNIT. ] "Governmental unit" means a
9 state agency, home rule charter or statutory city, county,
10 sanitary district, or other governmental subdivision.
11 Subd. 6. [PROJECT. ] "Project" means the acquisition,
12 construction, improvement, expansion, repair , or rehabilitation
13 of all or part of any structure, facility, or equipment
14 necessary for a wastewater treatment system or water supply
15 system.
16 Sec. 20. [ 446A.03� [MINNESOTA PUBLIC FACILITIES
17 AUTHORITY. ]
18 Subdivision 1. {MEMBERSHIP. ] The Minnesota public
19 facilities authority consists of the commissioner of energy and
20 economic development, the commissioner of finance, the director
21 of public service, the director of the pollution control agency,
22 and three additional members appointed by the governor from the
23 general public with the advice and consent of the senate.
24 Subd. 2. [CHAIR; OTHER OFFICERS. ] The commissioner of
25 energy and economic development shall serve as the chair and
26 chief executive officer of the authority. The authority may
27 elect other officers as necessary from its members.
28 � Subd. 3. [MEMBERSHIP TERMS. ] The membership terms,
29 compensation, removal, and filling of vacancies of public
30 members of the authority are as provided in section 15.0575.
31 Subd. 4. [BOARD ACTIONS. ] A majority of the authority,
32 excludinq vacancies, constitutes a quorum to conduct its
33 business, to exercise its powers, and for all other purposes .
34 Subd. 5. [EXECUTIVE DIRECTOR. ] The commissioner $hall
35 employ, with the concurrence of the authority, an executive
36 director . The director shall perform duties that the authority
38
. - � �G,�-�--�i�.�y
� S.F. No. 1
1 may require in carrying out its responsibilities. The executive
2 director ' s position is in the unclassified service.
3 Subd. 6. [ADMINISTRP,TIVE SERVICES. ] The commissioner shall
4 provide administrative services to the authority.
5 Subd. 7. [PERSONAL LIABILITY. ] Members and officers of the
6 authority are not liable personally for any debt or obligation
7 of the authority.
8 Sec. 21. [ 446A.04] [POWERS; DUTIES. J
9 Subdivision 1 . [BYLAWS; RULES. ] The authority shall adopt
10 bylaws for its organization and internal management. The
11 commissioner may adopt rules covering the authority' s
12 operations, properties, and facilities.
13 Subd. 2. [POWER TO SUE; ENTER CONTRACTS. ] The authority
14 may sue and be sued. The authority may make and enter into
15 contracts, leases, and agreements necessary to perform its
16 duties and exercise its powers. --
17 Subd. 3 . [GIFTS; GRANTS. ] The authority may apply for,
18 accept, and disburse gifts, grants, loans, or other property
19 from the United States, the state, private sources, or any other
20 source for any of its purposes. Money received by the authority
21 under this subdivision must be deposited in the state treasu�
22 and is appropriated to the authority to carry out its duties.
23 Subd. 4. [CONTRACT FOR SERVICES. � The authority may retain
24 or contract for the services of accountants, financial advisors,
25 and other consultants or agents needed to perform its duties and
26 exercise its powers.
27 Subd. 5. [FEES. ] The authority may set and collect fees
28 for costs incurred by the authority for its financings and the
29 establishment and maintenance of reserve funds.
30 Sec. 22. ( 446A.05J [PROJECT LOANS. ]
31 Subdivision 1 . [LOANS. ] The authority may make and
32 contract to make loans to governmental units to finance projects
33 that the aovernmental unit may construct or acquire. A loan may
34 not be used to pay current expenses or obligations, except for
35 temporary financing. A loan must be secured by notes or bonds
36 of the borrowing governmental unit.
39
S.F. No. 1 -
1 Subd. 2. [RULES. ] The commissioner mav adopt rules
J
2 governing loans awarded under this section.
3 Sec. 23. [ 446A.06� [ INDEPENDENT WASTEWATER TREATMENT
4 GRANTS. ]
5 Subdivision 1. [AWARD OF GRANTS. ] The authority shall
6 award independent state grants to municipalities selected by the
7 pollution control agency upon certification by the aqencv that
8 the municipalities ' projects and applications have been reviewed
9 and approved by the agency in accordance with sections 116.16 to
10 116.18 and agency rules.
11 Subd. 2. [RULES. J The commissioner shall adopt rules
12 containing procedures for the administration of the authoritv' s
13 duties as provided in subdivision 1.
14 Sec. 24. [ 446A.07] [WATER POLLUTION CONTROL REVOLVING
15 FUND. ]
16 Subdivision 1. [ESTABLISHMENT OF FUND. ] The authority
17 shall establish a water pollution control revolvinq fund to
18 provide loans for the purposes and eliqible costs authorized
19 under title VI of the Federal Wa�ter Pollution Control Act. The
20 fund must be credited with repavments.
21 Subd. 2. [STATE FUNDS. ] A state matching fund is
22 established to be used in compliance with fede�al matchinq
23 requirements specified in the Federal Water Pollution Control
24 Act. A state grant and loan fund is established to rovide
25 grants and loans to governmental units for the plannin and
26 construction of treatment works as specified in section 116.16,
27 subdivision 2, paragraphs (6) , (7) , and ( 8) .
28 Subd 3 . [CAPITALIZATION GRANT AGREEMENT. ] The authority
29 shall enter an aqreement with the administrator of the United
30 States Environmental Protection Agency to receive ca italization
31 grants for the revolving fund. The authoritv mav exercise
32 powers necessary to complv with the requirements specified in
33 the agreement, which must be in compliance with the Federal
34 Water Pollution Control Act.
35 Subd. 4. [ INTENDED USE PLAN. ] The pollution control agency
36 shall annually prepare and submit to the United States
40
. ���x-i�5�
' S.F. No. 1
1 Environmental Protection Agency an intended use plan. The lan
2 must identify the intended uses of the amounts available to the
3 water pollution control revolvinq fund, includinq a list of
4 wastewater treatment projects and other eliqible activities to
5 be funded during the fiscal vear. The aaency may not submit the
6 plan until it has received the review and comment of the
7 authority or until 30 davs have elapsed since the plan was
8 submitted to the authoritv, whichever occurs first.
9 Subd. 5. [APPLICATIONS. ] Applications by municipalities
10 and other entities identified in the annual intended use plan
11 for loans from the water pollution control revolvin fund must
12 be made to the authority on forms reQUirinq information
13 prescribed by the rules of the acrency ado ted under this
14 section. The authority shall send the ap lications to the
15 agency within ten days of receipt. The director shall certifv
16 to the authority those applications that ap ear to meet the
17 criteria set forth in the Federal Water Pollution Control Act,
18 this section, and rules of the agencv. .
19 Subd. 6. [AWARD AND TERMS OF LOANS. ] The authority shall
20 award loans to those municipalities and other entities certified
21 by the. agency. The terms and conditions of the loans must be in
22 conformance with the Federal Water Pollution Control Act, this
23 section, and rules of the agencv, and authority adopted under
24 this section.
25 Subd. 7. [LOAN CONDITIONS. � When making loans from the
26 revolving fund, the authoritv shall comply with the conditions
27 of the Federal Water Pollution Control Act, including:
28 (a) Loans must be made at or below market interest rates,
29 including interest-free loans, at terms not to exceed 20 years .
30 (b) The annual principal and interest payments must begin
31 no later than one year after completion of a project. Loans
32 must be fully amortized no later than 20 vears after project
33 completion.
34 (c) A loan recipient shall establish a dedicated source of
35 revenue for repayment of the loan.
36 (d) The fund must be credited with all payments of
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1 principal and interest on all loans.
2 Subd. 8. (OTHER USES OF REVOLVING FUND. ] The water
3 pollution control revolving fund may be used as provided in
4 title VI of the Federal Water Pollution Control Act, includinq
5 the following uses:
6 ( 1) to buy or refinance the debt obligation of qovernmental
7 units for treatment works incurred after March 7, 1985, at or
8 below market rates;
9 ( 2) to guarantee or purchase insurance for local
10 obligations to improve credit market access or reduce interest
11 rates; '
12 ( 3) to provide a source of revenue or securitv for the
13 payment of principal and interest on revenue or general
14 obligation bonds issued by the authority if the bond proceeds
15 are deposited in the fund;
16 ( 4) to provide loan guarantees for similar revolving funds
17 established by a governmental unit other than state agencies;
18 ( 5) to earn interest on fund accounts; and
19 (6) to pay the reasonable costs incurred by the authority
20 and the agency of administering the fund and conducting
21 activities required under the Federal Water Pollution Control
22 Act, including water quality management planning under section
23 205( j ) of the act and water quality standards continuing
24 planning under section 303(e) of the act.
25 Amounts spent under clause ( 6) may not exceed the amount
26 allowed under the Federal Water Pollution Control Act. Five
27 percent of the revolving loan fund repayments mav be used bv the
28 agency and the authority for the purposes listed in clau�e (6) .
29 Subd. 9. [PAYMENTS. ] Payments from the fund must be made
30 in accordance with the applicable state and federal law
31 governing the payments, except that no payment for a project may
32 be made to a governmental unit until and unless the authority
33 has determined the total estimated cost of the project and
34` ascertained that financing of the project is assured by:
35 ( 1) a loan authorized by state law or the appropriation of
36 proceeds of bonds or other money of the governmental unit to a
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1 fund for the construction of the project; and
2 ( 2) an_ irrevocable undertakinq, b_y resolution of the
3 qoverning body of the governmental unit, to use all monev made �
4 available for the project exclusivelv for the project, and to
5 pay any additional amount bv which the cost of the roject
6 exceeds the estimate bv the appropriation to the construction
7 fund of additional monev or the proceeds of additional bonds to
. 8 be issued by the governmental unit.
9 Subd. 10. [RULES OF THE AUTHORITY. ] The commissioner shall
10 adopt rules containing procedures for the administration of the
11 authority' s duties as provided in this section, including loan
� 12 interest rates, the amounts of loans, and municipal financial
13 need.
14 Subd. 11. [RULES OF THE AGENCY. ] The agency shall adopt
15 rules relating to the procedure for reparation of the annual
16 intended use plan and other matters that the aaencv considers
17 necessary for proper loan administration.
18 Sec. 25. [446A.08 ] [HEALTH CP,RE EQUIPMENT LOANS. ]
1� Subdivision 1. [AUTHORITY. ] The authority may make or
20 participate in making health care eQUipment loans. The loans
21 may be made only from the proceeds of bonds or notes issued
22 under subdivision 2. Before makinq a commitment for a loan, the
23 authority shall forward the application to the commissioner of
24 health for review under subdivision 3. The authoritv mav not
2S approve or enter into a commitment for a loan unless the
26 application has been approved bv the commissioner of health.
27 Subd. 2. [BONDS AND NOTES. J The authority may issue its
28 bonds and notes to provide monev for the purposes specified in
29 subdivision 1. The principal amount of bonds and notes issued
30 and outstanding under this subdivision at anv time may not
31 exceed $95,000,000. The bonds and notes issued to make the
32 loans may not be insured by the authoritv but must be insured by
33 a letter of credit or bond insurance issued by a private insurer .
34 Subd. 3. [ADMINISTRATION. ] (a) The commissioner of health
35 shall review each loan application received from the authority
36 to determine whether the a lication is an eliqible
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1 application. An application is eligible if the followin
2 criteria are satisfied:
3 (1) the hospital is owned and o erated by a countv,
4 district, municipality, or nonprofit cor oration;
5 ( 2) the loan would not be used to refinance existin debt ;
6 ( 3) the hospital was unable to obtain suitable financing
7 from other sources;
8 (4) the loan is necessary to establish or maintain patient
9 access to an essential health care service that would not
10 otherwise be available within a reasonable distance from the
11 facility; and
12 ( 5) the equipment to be financed bv the loan is
13 cost-effective and efficient.
14 (b) The authority shall determine whether the allocation
15 available for the health care equipment loan proqram is
16 sufficient for all eligible applications received durin a
17 specified time. If the allocations are sufficient, the
18 authority shall approve all eligible applications. If the
19 allocations are not sufficient, the authoritv shall compare the
20 relative merits of the eligible applications with respect to the
21 criteria in paragraph (a) , clauses (4) and ( 5) , rank the
22 applications in order of priority, and approve the applications
23 in order of priority to the. extent possible within the available
24 allocation.
25 (c) The authority may charge a reasonable fee under section
26 16A.128 to an applicant for the costs of review of the
27 �plication. The authority shall transfer to the commissioner
28 of health from the fees collected an amount sufficient to pav
29 the costs of the commissioner of health in the review of
30 applications. The commissioner of health and the authority may
31 each adopt permanent rules to implement subdivisions 1 to 3.
32 Sec. 26 . [ 446A.09 ] [REPORT; AUDIT. J
33 The authority shall report to the legislature and the
34 qovernor by January 1 of each year . The report must include a
35 complete operating and financial statement covering the
36 authority' s operations durina the year, including amounts of
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1 income from all sources. Books and records of the authoritv are
2 subject to audit by the legislative auditor in the manner
3 prescribed for state agencies.
4 Sec. 27. [GOVERNOR' S ACTION. ]
5 The governor may recruest the administrator of the
6 environmental protection aaency to make available to the state,
7 capitalization grants to be deposited in the water ollution
8 control revolving fund, for the fiscal vear beginning October 1,
9 1987. The governor may recxuest that up to 75 percent of the
10 amount allotted to the state for the fiscal vear beginninq ,
11 October 1, 1987, be made available for de osit in the water
12 pollution control revolving fund.
13 Sec. 28. [TRANSFER OF AUTHORITY. ]
14 Subdivision 1. [WATER POLLUTION CONTROL GRANTS. ] a The
15 responsibilities of the pollution control agency for the state
16 independent wastewater treatment grant program under Minnesota
17 Statutes, section 116.18, subdivision 3a, are transferred on
18 July 1, 1988, to the Minnesota public facilities authoritv under
19 Minnesota Statutes, section 15.039, except that the commissioner
20 of energy and economic development and the director of the
21 pollution control agency shall determine which classified and
22 unclassified positions associated with these responsibilities
23 are transferred.
24 (b) Any continuing obligation with respect to grants made
25 before September 30, 1984, under Minnesota Statutes 1984,
26 section 116.18, subdivision 2, remains with the pollution
27 control agency.
28 (c) The pollution control agencv shall continue to
29 administer the combined sewer overflow program under Minnesota
30 Statutes, section 116 .162, and the appropriations for the
31 program.
32 Subd. 2 . [OTHER RESPONSIHILITIES. ] (a) The responsibilities
33 for the health care equipment loan program under section
34 116M. 07, subdivisions 7a, 7b, and 7c; the public school energy
35 conservation loan program under section 116J. 37; and the
36 district heating and qualified energv improvement loan program
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1 under section 116J.36, are transferred from the Minnesota ener y
2 and economic development authority to the Minnesota ublic
3 facilities authority. The director of public service shall
4 continue to administer the municipal enerqy grant and loan
5 programs under section 116J. 36 and the school energy loan
6 program under section 116J. 37 until t�e commissioner of ener v
7 and econo�ic development has adopted rules to implement the
8 financial administration of the programs as rovided under
9 sections 10 to 17.
10 (b) Except as otherwise provided in this paragraph, section
11 15.039 applies to the transfer of responsibilities. The
12 transfer includes eight and one-half positions from the
13 financial management division of the department of enerqv and
14 economic development to the community development division of
15 the department of energy and economic development. The
16 commissioner of energy and economic development and the director
17 of public service shall determine which classified and
18 unclassified positions associated with the responsibilities of
19 the grant and loan programs under section 116J.36 and the school
20 energy loan program under section 116J.37 are transferred to the
21 director of public service and which positions are transferred
22 to the commissioner of energy and economic development in order
23 to carry out the purposes of this article.
24 Sec. 29 . [PROGRAM P,DMINISTRP,TION. ]
25 Subdivision 1. [POWERS. ] In implementing the purposes and
26 the programs transferred to the authoritv bv section 28,
27 s_ubdivision 2, the authoritv has the powers in this section.
28 Subd. 2. [RULES. ] It may adopt, amend, and repeal rules,
29 including emergency rules, necessary to effectuate its purposes.
30 Subd. 3. (PERSONAL PROPERTY. ] It may acquire, hold, and
31 dispose of personal property for its corporate purposes.
32 Subd. 4. [REAL PROPERTY. J It may acquire real property, or
33 an interest in real property, in its own name, by purchase or
34 foreclosure, where the acquisition is necessarv or appropriate
35 to protect a loan in which the authoritv has an interest and may
36 sell, transfer, and convev the ro erty to a buver and, in the
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1 event the sale, transfer , or conveyance cannot be effected with
2 reasonable promptness or at a reasonable price, may lease the
3 property to a tenant.
4 Subd. 5. [NOTES; MORTGAGES; OBLIGATIONS; SALE OF. J It may
5 sell, at public or private sale, any note, mortgage or other
6 instrument or obligation evidencing or securing a loan.
7 Subd. 6. [ INSURANCE. ] It may procure insurance against a
8 loss in connection with its property in the amounts, and from
9 the insurers, as may be necessary or desirable.
10 Subd. 7. [LOAN TERMS; MODIFICATION. ] It may consent,
11 whenever it considers it necessary or desirable in the �
12 fulfillment of its purpose, to the modification of the rate of
13 interest, time of payment, installment of principal or interest,
14 or other term, of a contract or agreement to which the authority
15 is a party.
16 Subd. 8. [LOAN PAYMENTS; INTEREST AND AMORTIZATION. ] It
17 may establish and collect reasonable interest and amortization
18 payments on loans, and in connection with them may establish and
19 collect or authorize the collect�ion of reasonable fees and
20 charges or require money to be placed in escrow, sufficient to
21 provide for the payment and security of its bonds, notes,
22 commitments and other obligations and for their servicing, to
23 provide reasonable allowances for or insurance against losses
24 which may be incurred and to cover the cost of issuance of
25 obligations and technical, consultative, and project assistance
26 services.
27 Subd. 9. ( INVESTMENTS. ] �a) It may cause any money not
28 required for immediate disbursement, including the general
29 reserve account, to be invested in direct obligations of or
30 obligations guaranteed as to principal and interest by the
31 United States, or in insured savings accounts, up to the amount
32 of the insurance, in anv institution the accounts of which are
33 insured by the federal savings and loan insurance corporation or
34 to be deposited in a savings or other account in a bank insured
35 by the federal deposit insurance corporation or to be invested
36 in time certificates of deposit issued by a bank insured by the
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1 federal deposit insurance corporation and maturinq within one
2 year or less and in the investments described in section 11A. 24,
3 subdivision 4, except clause (d) of subdivision 4. It mav
4 deposit money in excess of the amount insured with security as
5 provided in chapter 118.
6 (b) Notwithstanding paragraph (a) , it mav invest and
7 deposit money into accounts established pursuant to resolutions
8 or indentures securing its bonds or notes in investments and
9 deposit accounts or certificates, and with securitv, agreed u on
10 with the holders or a trustee for the holders.
11 Subd. 10. (CONSULTATIVE AND TECHNICAL SERVICES. ) It may
12 provide general consultative and technical services to assist in
13 financing the entities to which loans may be made. It may enter
14 into agreements or other transactions concerninQ the recei t or
15 provision of those services.
16 Subd. 11. [FINANCIAL INFORMATION. J Financial information,
17 including credit reports, financial statements and net worth
18 calculations, received or prepared bv the suthoritv regarding an
19 authority loan, financial assistance, or insurance is rivate
20 data with regard to data on individuals as defined in section
21 13.02, subdivision 12 and nonpublic data with reqard to data not
22 on individuals as defined in section 13. 02, subdivision 9 .
23 Subd. 12. �APPROPRIATIONS; GIFTS; GRANTS. ] The authority
24 may accept appropriations, gifts, qrants, beauests, and devises
25 and use or dispose of them for its purposes. All qifts, grants,
26 bequests, and revenues from those sources are appropriated to
27 the authority.
28 ' Subd. 13 . (PROCEEDS APPROPRIATED TO AUTHORITY. � Proceeds
29 of the authority' s bonds, notes, and other obligations; amounts �
30 granted or appropriated to the authority for the making or
31 purchase or the insurance or guarantv of loans or for bond
32 reserves; income from investment; monev in the funds; and all
33 revenues from loans, fees, and charges of the authority
34 including rentals, royalties, dividends, or other proceeds in
35 connection with technology-related products, energy conservation
36 products, or other equipment are annually a ropriated to the
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1 authority for the accomplishment of its corporate purposes and
2 must be spent, administered, and accounted for in accordance
3 with the applicable provisions of all bond and note resolutions,
4 indentures, and other instruments, contracts, and agreements of
5 the agency. Notwithstanding section 16A. 28, these
6 appropriations are available until expended.
7 Subd. 14. (GENERAL PURPOSE. J The authority may do all
8 things necessary and proper to fulfill its purpose.
9 Sec. 30. [REPEALER. ]
10 Minnesota Statutes 1986, section 116.167, is repealed.
11 Sec. 31. [APPROPRIATION. ]
12 $800,000 is appropriated from the economic development fund
13 to the commissioner of energy and economic development to
14 administer programs under the Minnesota public facilities
15 authority. $400,000 is for fiscal year 1988 and $400,000 is for
16 fiscal year 1989. •
17 Sec. 32. [EFFECTIVE DATE. J
28 Sections 1, 2, 4, 5, 6, 8, 23, and 28, subdivision 1, are
19 effective on July 1, 1988.
20 Section 9 is repealed July 1, 1988.
21 ARTICLE 4
22 COMMUNITY DEVELOPMENT
23 Section 1. [116J.874] [COMMUNITY DEVELOPMENT DIVISION. J
24 Subdivision 1. [DUTIES. J The community development
25 division is a division within the department of energy and
26 economic development. It shall:
27 (1) be responsible for administering all state community
28 development and assistance programs, including the economic
29 recovery fund, the outdoor recreation grant program, the rural
30 development board programs, the community development
31 corporation program, the urban r�evitalization program, the
32 Minnesota public facilities authority loan and grant programs,
33 and the enterprise zone program;
34 ( 2) be responsible for state administration of federally
35 funded community development and assistance programs, including
36 the small cities development grant program and land and water
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1 conservation program;
2 (3) provide technical assistance to rural communities for
3 community development in cooperation with regional develo ment
4 commissions;
5 �4) coordinate the development and review of state rural
6 development policies;
7 �5) provide staff and consultant services to the rural
8 development board; and
9 �6) be responsible for coordinating communitv assistance
10 and development proqrams in cooperation with reaional
11 development commissions.
12 Subd. 2. [GENERAL COMPLEMENT AUTHORITY. ] The community
13 development division mav combine all related state and federal
14 complement positions into general fund positions, to carrv out
15 the responsibilities under subdivision 1. The number of general
16 fund positions must not exceed the aagreqate number of all state
17 and federal positions that are to be combined. Records of the
18 actual number of employee hours charaed to each state and
19 federal account must be� maintained for each aeneral fund
20 position.
21 Sec. 2. [116J.874Ij [MAIN STREET PROGRAM. ]
22 The commissioner stiall .develop and administer a main street
23 �rogram to assist cities in the revitalization of their
24 businesses. The purpose of the proaram is to strenvthen local
25 organization and local manaaement of business districts so that
26 cities become more self-reliant and not de endent on future
27 state financial assistance. The• staff dedicated for this
28 �roqram shall as�sist cities that reQUest assistance in the
29 followinQ manner:
30 �1_� improving the oraanization of a citv's business
31 district includina the leadership skills of business owners and
32 city officials;
33 ( 2) establishing a marketina strategv to promote a city' s
34 business district to residents of the surroundina trade area;
35 �3) providina technical assistance in the desian and
36 rehabilitation of buildings in a city' s business district
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1 including historic preservation; and
2 � 4) establishing a strategy to strengthen existing
3 businesses, recruit new businesses, diversify the mix of
4 businesses, and develop vacant property in a city' s business
5 district.
6 Sec. 3 . [116J.970 ] [COMMUNITY DEVELOPMENT CORPORP,TIONS. ]
7 Subdivision 1. [DEFINITIONS. ] For the purposes of this
8 section, the terms in this subdivision have the meanings given
9 them:
10 �a) "Commissioner" means the commissioner of energy and
11 economic development .
12 (b) "Economic development region" means an area so
13 designated in the governor ' s executive order number 60, dated
14 June 12, 1970, as amended.
15 (c) "Federal poverty level" means the income level
16 established by the United States Community Services
17 Administration in Code of Federal Regulations, title 45, section
18 1060.2-2.
19 Sd) "Low income" means an annual income below the federal
20 poverty level. �
21 Subd. 2. [ADMINiSTRP,TION. ] The commissioner shall
22 administer this section and shall enforce the rules related to '
23 the community development corporations adopted by the
24 commissioner. The commissioner may amend, suspend, repeal or
25 otherwise modify these rules as provided for in chapter 14.
26 Subd. 3. [GRANTS; CORPORATIONS ELIGIBLE. ] a The
27 commissioner shall designate a community development corporation
28 as eligible to receive arants under this section if the
29 corporation is a nonprofit corporation incorporated under
30 chapter 317 and meets the other criteria in this subdivision.
31 (b) The corporation, in its articles of incorporation or
32 bvlaws, shall designate a specific geographic community withi_n
33 which it will operate. As least ten percent of the population
34 within the designated community must have low incomes. Within
35 the metropolitan area as defined in section 473 .121, subdivision
36 2, a designated communitv must be an identifiable neighborhood
, —
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1 or a combination of neighborhoods or home rule charter or
2 statutory cities, townships, unincor orated areas, or
3 combinations of those entities. Outside the metropolitan area,
4 designated communities, so far as possible, mav not cross
5 existing economic development boundaries. If a roposed
6 geographic area overlaps the designated communitv of a communit�
7 development corporation existing bef�ore August 1, 1987, the
8 proposed community develo ment cor oration shall obtain the
9 written consent of the existing community development
10 corporation before the proposed corporation mav be desi nated as
11 eligible to receive grants under this section. �
12 (c) The corporation shall limit votinq membership to
13 residents of its designated area.
14 (d) The corporation shall have a board of directors with 15
15 to 30 members unless the corporation can demonstrate to the
16 satisfaction of the commissioner that a smaller or larqer board
17 is more advantageous. At least 40 percent of the directors must
18 have incomes that do not exceed 80 percent of the countv median
19 family income or 80 percent of the statewide median familv
20 income as determined bv the state demographer, whichever is
Z1 less, and the remaining directors must be members of the
22 business or financial communitv and the communitv at large. To
23 the greatest extent possible, and at least 60 percent of, the
24 directors must be residents of the designated communitv.
25 Directors who meet the income limitations of this ara raph must
26 be elected by the members of the cor oration. The remainin
27 directors may be elected bv the members or ap ointed by the
28 directors who meet the income limitations of this araqraph. I
29 �e) The corporation shall hire low-income residents of the
30 designated community to fill nonmanagerial and nonprofessional
31 positions.
32 �f Z The corporation shall demonstrate that it has or will
33 have the technical skills to analyze projects, that it is
34 familiar with other available public and private funding sources
35 and economic development programs, and that it is ca able of
36 , packaging economic development rojects.
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1 Subd. 4. [GRANT APPROVAL FOR PROJECTS. ] The commissioner
2 shall approve a grant to a community development corporation
3 only for a project carried on within the designated community,
4 except when the corporation demonstrates that a project carried
5 on outside will have a significant impact inside the designated
6 community.
7 Subd. 5. [USE OF GRANT. � The commissioner may approve a
_ 8 grant to a community development corporation for planning,
9 including organization of the corporation, training of the
10 directors, creation of a comprehensive community economic
11 development plan, and development of a proposal for a venture
12 grant, or for establishment of a business venture, including
13 assistance to an existing business venture, purchase of partial
14 or full ownership of a business venture, or development of
15 resources or facilities necessary for the establishment of a
16 business venture.
17 Subd. 6. [ASSIGNEE. ] The commissioner must be named as an
18 assignee of the rights of a state-funded community development
19 corporation on any loan or other evidence of debt provided by a
20 community development corporation to a private enterprise. The
21 assignment of rights must provide that it will be effective upon
22 the dormancy or cessation of existence of the community
23 development corporation. "Dormancy" for the purpose of this
24 section means the continuation of the corporation� in name only
25 without any functioning officers or activities. Upon the
26 cessation of the activities of a state-funded community
27 development corporation, any assigned money paid to the
28 commissioner must be deposited in the state treasury and
29 credited to the general fund.
30 Subd. 7. [FACTORS FOR GRANT P,PPROVAL. ] Factors considered
31 by the commissioner in approving a grant to a community
32 development corporation must include the creation of employment
33 opportunities, the maximization� of profit, and the effect on
34 securing money from sources other than the state.
35 Subd. 8. [PROHIBITION. ] Grants under this section are not
36 available for programs conducted by churches or religious
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1 organizations or for securing or developinq social services .
2 Subd. 9. [NO EXCLUSION. ] A person may not be excluded from
3 participation in a program funded under this section because of
4 race, color, religion, sex, age, or national oriqin.
5 Sec. 4. [TRANSFER OF RESPONSIBILITIES. ]
6 Subdivision 1. [COMMUNITY DEVELOPMENT CORPORATIONS. ] The
7 responsibilities of the Minnesota energy and economic
8 development authority for community development corporations
9 under Minnesota Statutes, section 116M.04, are transferred under
10 Minnesota Statutes, section 15. 039, to the commissioner of
11 energy and economic development.
12 Subd. 2. [OTHER PROGRAMS. ] The main street program, the
13 Minnesota community improvement rogram, the governor ' s desi n
14 team, and the Minnesota beautiful program are transferred under
15 Minnesota Statutes, section 15.039, from the state planning
16 agency to the department of energy and economic development.
17 The four incumbents of the state planning agency responsible for
18 the administration of these programs are transferred to the
19 department of energy and economic development.
20 Sec. 5. [REPEALER. J
21 Minnesota Statutes, section 116M.04, is repealed.
22 Sec. 6. [EFFECTIVE DATE. ]
23 This article is effective July 1, 1987 .
24 ARTICLE 5
25 MINNESOTA ENERGY AND ECONOMIC DEVELOPMENT AUTHORITY
26 Section 1. Minnesota Statutes 1986, section 15.039 , is
27 amended by adding a subdivision to read:
28 Subd. Sa. [OBLIGATIONS. ] The new agency is the legal
29 successor in all respects of the aqency whose responsibilities
30 are transferred. The bonds, resolutions, contracts, and
31 liabilities of the agency whose responsibilities are transferred
32 become the bonds, resolutions, contracts, and liabilities of the
33 new agency.
34 Sec. 2. Minnesota Statutes 1986, section 16A.80,
35 subdivision 2a, is amended to read:
36 Subd. 2a. [EXEMPT AGENCIES. ] This section does not apply
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1 to:
2 ( 1) the housing finance agency;
3 ( 2) the state board of investment;
4 ( 3) the iron range resources and rehabilitation board;
5 ( 4) the higher education coordinating board; and
6 ( 5) the higher education facilities authority;-ar�d
7 t6}-the-energy-ene3-eeenen+se-dede�ep�er�t-antherity.
8 Sec. 3. [116. 55) [WASTE TIRE RECYCLING LOANS AND GRANTS. ]
9 The pollution control agency may make waste tire recycling
10 loans to businesses. Applications for the loans are not
11 complete unless the waste tire recycling project for which the
12 loan is to be made is certified to be technically feasible by
13 the director of the pollution control agency. The agency may
14 make grants from the waste tire recycling account for studies
15 necessary to demonstrate the technical and economic feasibility
16 of a proposed waste tire recycling project. A grant must be
17 less than $30,000 and may not exceed 75 percent of the costs of
18 the study. The agency shall adopt rules for administration of
19 waste tire recycling grants and loans.
20 Sec. 4. [RESPONSIBILITIES TRP,NSFERRED TO POLLUTION CONTROL
21 AGENCY. ] -
22 The responsibilities for the waste tire recycling loan and
23 grant_program under section 116M.07, subdivision 3, are
24 transferred from the Minnesota energy and economic development
25 authority to the pollution control agency. Minnesota Statutes,
26 section 15.039, applies to the transfer of responsibilities.
27 Sec. 5. [TRANSFER OF RESPONSIHILITIES. ]
28 The responsibilities of the Minnesota energy and economic
29 development authority that are not transferred to any other
30 agency are transferred to the commissioner of energy and
31 economic development under Minnesota Statutes, section 15.039 .
32 Sec. 6. [REPEALER. ]
33 Minnesota Statutes 1986, sections �116M.01; 116M.02;
34 116M.03; 116M. 06; 116M.07; 116M.08; 116M.09; 116M.10; 116M. 105;
35 and 116M.13, are repealed.
36 Sec. 7 . [EFFECTIVE DATE. ]
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1 This article is effective July 1, 1987 .
2 ARTICLE 6
3 URBAN REVITALIZATION PROGRAMS
4 Section 1. Minnesota Statutes 1986 , section 281.17 , is
5 amended to read:
6 281.17 [PERIOD FOR REDEMPTION. ]
7 The period of redemption for all lands sold to the state at
8 a tax judgment sale shall be three years from the date of sale
9 to the state of Minnesota if the land is within an incorporated
10 ar.ea unless it is: (a) nonagricultural homesteaded land as
11 defined in section 273.13, subdivision 22, (b) homesteaded
12 agricultural land as defined in section 273 .13, subdivision 23,
13 paragraph (a) , or (c) seasonal recreational land as defined in
14 section 273.13, subdivision 27, paragraph (a) , or subdivision
15 22, paragraph (c) , in which event the period of redemption is
16 five years from the date of sale to the state of Minnesota.
17 The period of redemption for homesteaded lands as defined
18 in section 273.13, subdivision 22, located in a targeted
19 neighborhood as defined in section 4 and sold to the state at a
20 tax judgment sale is two years from the date of sale. The
21 period of redemption for other lands in a targeted neighborhood
22 as defined in section 4 and sold to the state at a tax judgment
23 sale is one year from the date of sale.
24 The period of redemption for all other lands sold to the
25 state at a tax judgment sale shall be five years from the date
26 of sale.
27 Sec. 2. Minnesota Statutes 1986, section 429.061,
28 subdivision 2, is amended to read:
29 Subd. 2. [ADOPTION; INTEREST. ] At such meeting or at any
30 adjournment thereof the council shall hear and pass upon all
31 objections to the proposed assessment, whether presented orally
32 or in writing. The council may amend the proposed assessment as
33 to any parcel and by resolution adopt the same as the special
34 assessment against the lands named in the assessment roll.
35 Notice of any adjournment of the hearing shall be adequate if
36 the minutes of the meeting so adjourned show the time and place
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1 when and where the hearing is to be continued.
2 The council may consider any objection to the amount of a
3 proposed assessment as to a specific parcel of land at an
4 adjourned hearing upon , further notice to the affected property
5 owner as it deems advisable. At the adjourned hearing the
6 council or a committee of it may hear further written or oral
7 testimony on behalf of the objecting property owner and may
8 consider further written or oral testimony from appropriate city
9 officials and other witnesses as to the amount of the
10 assessment. The council or committee shall prepare a record of
11 the proceedings at the adjourned hearing and written findings as
12 to the amount of the assessment. The amount of the assessment
13 as finally determined by the council shall become a part of the
14 adopted assessment roll. No appeal may be taken as to the
15 amount of any assessment adopted under this section unless
16 written objection signed by the affected property owner is filed
17 with the municipal clerk prior to the assessment hearing or
18 presented to the presiding officer at the hearing. All
19 objections to the assessments not received at the assessment
20 hearinq in the manner prescribed by this subdivision are waived,
21 unless the failure to object at the assessment hearing is due to
22 a reasonable cause.
23 If the adopted assessment differs from the proposed
24 assessment as to any particular lot, piece, or parcel of land,
25 the clerk must mail to the owner a notice stating the amount of
26 the adopted assessment. Owners must also be notified by mail of
27 any changes adopted by the council in interest rates or
28 prepayment requirements from those contained in the notice of
29 the proposed assessment.
30 The assessment, with accruing interest, shall be a lien
31 upon all private and public property included therein, from the
32 date of the resolution adopting the assessment, concurrent with
33 general taxes; but the lien shall not be enforceable against
34 public property as long as it is publicly owned, and during such
35 period the assessment shall be recoverable from the owner of
36 such property only in the manner and to the extent provided in
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1 section 435.19. Except as provided below , all assessments
2 shall be payable in equal annual installments extending over
3 such period, not exceeding 30 years, as the resolution
4 determines, payable on the first Monday in January in each year,
5 but the number of installments need not be uniform for all
6 assessments included in a single assessment roll if a uniform
7 criterion for determining the number of installments is provided
8 by the resolution. Assessments on property located in a
9 targeted neighborhood as defined in section 4 mav be pavable in
10 variable annual installments if the resolution rovides for a
11 variable payment. The first installment of each assessment
12 shall be included in the first tax rolls completed after its
13 adoption and shall be payable in the same year as the taxes
14 contained therein; except that the payment of the first
15 installment of any assessment levied upon unimproved property
16 may be deferred until a designated future year, or until the
17 platting of the property or the construction of improvements
18 thereon, upon such terms and conditions and based upon such
19 standards and criteria as may be provided by resolution of the
20 council. If special assessments against the property have been
21 deferred pursuant to this subdivision, the governmental unit
22 shall file with the county recorder in the county in which the
23 property is located a certificate containing the legal
24 description of the affected property and of the amount
25 deferred. In any event, every assessment the payment of which
26 is so deferred, when it becomes payable, shall be divided into a
27 number of installments such that the last installment thereof
28 will 'be payable not more than 30 years after the levy of the
29 assessment. All assessments shall bear interest at such rate as
30 the resolution determines, not exceeding eight percent per
31 annum, except that the rate may in any event equal the average
32 annual interest rate on bonds issued to finance the improvement
33 for which the assessments are levied. To the first installment
34 of each assessment shall be added interest on the entire
35 assessment from a date specified in the resolution levying the
36 assessment, not earlier than the date of the resolution, until
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1 December 31 of the year in which the first installment is
2 payable, and to each subsequent installment shall be added
3 interest for one year on all unpaid installments; or
4 alternatively, any assessment may be made payable in equal
5 annual installments including principal and interest, each in
6 the amount annually required to pay the principal over such
7 period with interest at such rate as the resolution determines,
8 not exceeding the maximum period and rate specified above. In
9 the latter event no prepayment shall be accepted under
10 subdivision 3 without payment of all installments due to and
11 including December 31 of the year of prepayment, together with
12 the original principal amount reduced only by the amounts of
13 principal included in such installments, computed on an annual
14 amortization basis. When payment of an assessment is deferred,
15 as authorized in this subdivision, interest thereon for the
16 period of deferment may be made payable annually at the same
17 times as the principal installments of the assessment would have
18 been payable if not deferred; or interest for this period may be
19 added to the principal amount of the assessment when it tiecomes
20 payable; or, if so provided in the resolution levying the
21 assessment, interest thereon to December 31 of the year before
22 the first installment is payable may be forgiven.
23 Sec. 3. Minnesota Statutes 1986, section 462. 445,
24 subdivision 1, is amended to read:
25 Subdivision 1. [SCHEDULE OF POWERS. j An authority shall be
26 a public body corporate and politic and shall have all the
27 powers necessary or convenient to carry out the purposes of
28 sections 462.415 to 462.705 (but not the power to levy and
29 collect taxes or special assessments except as provided in
30 sections 462. 515 to 462. 545 with respect to redevelopment
31 projects only) including the following powers in addition to
32 others granted in these sections:
33 ( 1) To sue and be sued; to have a seal, which shall be
34 judicially noticed, and to alter the same at pleasure; to have
35 perpetual succession; and to make, and from time to time to
36 amend and repeal, rules and regulations not inconsistent with
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1 these sections;
2 � ( 2) To employ an executive director, technical experts, and
3 such officers, agents, and employees, permanent and temporary,
4 as it may require, and determine their qualifications, duties,
S and compensation; for such legal services as it may require, to
6 call upon the chief law officer of the municipality or to employ
7 its own counsel and legal staff; so far as practicable, to use
8 the services of local public bodies, in its area of operation,
9 such local public bodies, if requested, to make such services
10 available;
11 (3) To delegate to one or more of its agents or employees
12 such powers or duties as it may deem proper;
13 (4) Within its area of operation to undertake, prepare,
14 carry out, and operate projects and to provide for the
15 construction, reconstruction, improvement, extension,
16 alteration, or repair of any project or part thereof;
17 ( 5) Subject to the provisions of section 462. 511, to give,
18 sell, transfer, convey, or otherwise dispose of real or personal
19 property or any interest therein and to execute such leases,
20 deeds, conveyances, negotiable instruments, purchase agreements,
21 and other contracts or instruments, and take such action, as may
22 be necessary or convenient to carry out the purposes of these
23 sections;
24 (6) Within its area of operation to acquire real or
25 personal property or any interest therein by gifts, grant,
26 purchase, exchange, lease, transfer, bequest, devise, or
27 otherwise, and by the exercise of the power of eminent domain,
28 in the manner provided by Minnesota Statutes 1945, chapter 117,
29 and any amendments thereof or supplements thereto, to acquire
30 real property which it may deem necessary for its purposes under
31 these sections, after the adoption by it of a resolution
32 declaring that� the acquisition of the real property is necessary
33 to eliminate one or more of the conditions found to exist in the
34 resolution adopted pursuant to section 462. 425 or found to exist
35 by section 462 .415, subdivision 5, or is necessary to carry out
36 a redevelopment project as defined in section 462. 421,
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1 subdivision 13;
2 (7) Within its area of operation, and without the adoption
3 of an urban renewal plan, to acquire, by all means as set forth
4 in clause (6) of this subdivision, including by the exercise .of
5 the power of eminent domain, in the manner provided by chapter
6 117, and without the adoption of a resolution provided for in
7 subdivision 1, clause (6) , real property, and to demolish,
8 remove, rehabilitate or reconstruct the buildings and
9 improvements or construct new buildings and improvements
10 thereon, or to so provide through other means as set forth in
11 Laws 1974, chapter 228, or to grade, fill and construct
12 foundations or otherwise prepare the site for improvements, and
13 to dispose of said property pursuant to section 462 . 525,
14 provided that the provisions of section 462 .525 requiring
15 conformance to an urban renewal plan shall not apply, and to
16 finance such activities by means of the redevelopment project
17 fund or by means of tax increments or tax increment bonds or by
18 the methods of financing provided for in section 462. 545 or by
19 means of contributions from the municipality provided for in
20 section 462.581, clause (9) , or by any combination of such
21 means; provided that, real property with buildings or
22 improvements thereon shall only be acquired when the buildings
23 or improvements are substandard; and provided further that the
24 exercise of the power of eminent domain under this clause shall
25 be limited to real property which contains buildings and
26 improvements which are vacated and substandard. For the purpose
27 of this subparagraph, substandard buildings or improvements mean
28 hazardous buildings as defined in section 463.15, subdivision � 3 ,
29 or buildings or improvements that are dilapidated or
30 obsolescent, faultily designed, lack adequate ventilation,
31 light, or sanitary facilities, or any combination of these or
32 other factors that are detrimental to the safety or health of
33 the community.
34 (8) Within its area of operation to determine the level of
35 income constituting low or moderate family income. Such income
36 level shall be that level below which there is not available
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1 within the area of operation a substantial supply of decent,
2 safe and sanitary housing provided by private enterprise without
3 subsidy at prices or rents within the financial means of persons
4 and families of such incomes. The authority may establish
5 various income levels for various family sizes. In making its
6 determination the authority may consider income levels which may
7 be established by the federal housing administration or a
8 similar or successor federal agency for the purpose of federal
9 loan guarantees or subsidies for persons of low or moderate
10 income. The authority may use such determination as a basis for
11 the maximurn amount of income for admissions to housing
12 development projects owned or operated by it;
13 (9) To provide in federa�lly assisted projects such
14 relocation payments and assistance as may be necessary to comply
15 with the requirements of the Federal Uniform Relocation
16 Assistance and Real Property Acquisition Policies Act of 1970,
17 and any amendments or supplements thereto.
18 Sec. 4. [DEFINITIONS. j
19 Subdivision 1. [APPLICABILITY. J The definitions in this
20 section apply to sections 4 to 10.
21 Subd. 2. [CITY. ] "City" means the city of Minneapolis or
22 the city of Saint Paul. For each city, a port authoritv,
23 housing and redevelopment authority, or other agencv or
24 instrumentality, the jurisdiction of which is the territory of
25 the city, is included within the meaning of city.
26 Subd. 3. [CITY COUNCIL. J "City council" means either the
27 city council of Minneapolis or the city council of Saint Paul .
28 Subd. 4. [�CITY MP,TCAING MONEY. ] "City �hatching money" .
29 means the money of a city specified in a revitalization and
30 financing program to be spent to implement a revitalization
31 Qroqram. The sources of city matching money may include:
32 ( 1) money from the general fund or a special fund of a city
33 used to implement a revitalization program;
34 ( 2) money paid or repaid to a city from the proceeds of a
35 grant that a city has received from the federal government, a
36 profit or nonprofit corporation, or another entity or
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1 individual, that is to be used to implement a revitalization
2 program;
3 ( 3) tax increments received by a city under sections 273.71
4 to 273.78 or other law, if eligible, to be spent in the targeted
5 neighborhood;
6 �4) the greater of the fair market value or the cost to the
7 citv of acquiring land, buildings, equipment, or other real or
8 personal property that a city contributes, grants, or loans to a
9 profit or nonprofit corporation, or other entity or individual
10 in connection with the implementation of a revitalization
11 program;
12 ( 5) citv money to be used to install, reinstall, repair, or
13 improve the infrastructure facilities of a targeted neighborhood;
14 (6) money contributed by a city to pay issuance costs or to
15 otherwise provide financial support for revenue bonds or
16 obligations issued by a city for a project or program related to
17 the implementation of a revitalization program;
18 (7) monev derived from fees received by a city in
19 connection with its community development activities that are to
20 be used in implementing a revitalization program.
21 City matching money does not include:
22 (1) city money used to provide a service or exercise a
23 function that is ordinarily provided throughout the city, unless
� 24 an increased level of the service or function is to be provided
25 in a targeted neighborhood in accordance with a revitalization
26 program;
27 (2) the roceeds of revenue bonds issued by the city under
28 chapter 458, 462C, 472, or 474; or
29 �3) administrative expenses that are incurred in connection ,
30 with the planning or implementation of sections 4 to 10.
31 Subd. 5. [COMMISSIONER. j "Commissioner" means the
32 commissioner of energy and economic development.
33 Subd. 6. (LOST UNIT. ] "Lost unit" means a rental housing
34 unit that is lost as a result of revitalization activities
35 because it is demolished, converted to an owner-occupied unit
36 that is not a cooperative, converted to a nonresidential use, or
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1 if the gross rent to be charaed exceeds 125 percent of the gross
2 rent charged for the unit six months before the start of
3 rehabilitation.
4 Subd. 7. [TARGETED NEIGHBORHOOD. ] "Targeted neighborhood"
5 means an area including one or more census tracts as determined
6 and measured by the bureau of census of the United States
7 Department of Commerce that meet the criteria of section 5,
8 subdivision 2, and any additional area desiqnated under section �
9 5, subdivision 3 .
10 Subd. 8. [TARGETED NEIGHBORHOOD MONEY. ] "Targeted
11 neighborhood monev" means the monev desiqnated in the
12 revitalization program to be used to implement the
13 revitalization program.
14 Subd. 9 . [TARGETED NEIGHBORHOOD REVITALIZATION AND
15 FINANCING PROGRAM. J "Targeted neighborhood revitalization and
16 financing program, " "revitalization program, " or " ro ram" means
17 the targeted neighborhood revitalization and financinq program
18 adopted in accordance with section 6.
19 Sec. 5. [DESIGNATION OF TARGETED NEIGHBORHOODS. ]
20 Subdivision 1. [CITY AUTHORITY. J A city may by resolution
21 designate targeted neiahborhoods within its borders after
22 adopting detailed findincts that the desi nated neighborhoods
23 meet the eligibility reQUirements in subdivision 2 or 3 .
24 Subd. 2. [ELIGIBILITY REQUIREMENTS FOR TARGETED
25 NEIGHBORHOODS. ] An area within a city is eligible for �
26 designation as a targeted neighborhood if the area meets two of
27 the following three reauirements : -
28 (_a) The area had an unemplovment rate that was twice the
29 unemployment rate for the Minneapolis and Saint Paul standard
30 metropolitan statistical area as determined bv the 1980 federal
31 decennial census.
32 (b) The median household income in the area was no more
33 than half the median household income for the Minneapolis and
34 Saint Paul standard metropolitan statistical area as determined
35 by the 1980 federal decennial census.
36 (c) The area is characterized bv residential dwellin units
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1 in need of substantial rehabilitation. An area qualifies under
2 this clause if 25 percent or more of the residential dwellinq
3 units are in substandard condition as determined by the citv or
4 70 percent or more of the residential dwellinQ units in the area
5 were built before 1940 as determined bv the 1980 federal
6 decennial census.
7 Subd. 3 . [ADDITIONAL AREA ELIGIBLE FOR INCLUSION IN
8 TARGETED NEIGHBORFi00D. ] The city may add to the area designated
9 as a targeted neighborhood under subdivision 2 additional area
10 extending up to four contiguous citv blocks in all directions
11 from the designated targeted neighborhood. For the ur ose of
].2 this subdivision, "city block" has the meaning determined by the
13 city•
14 Sec. 6. [TP,RGETED NEIGHBORHOOD REVITALIZATION AND
15 FINANCING PROGRAM REQUIREMENTS. �
16 Subdivision l. [COMPREHENSIVE REVITALIZATION AND FINANCING
17 PROGRAM. ] (a) For each targeted neighborhood for which a citv
18 requests state financial assistance under section 7, the citv
19 must prepare a comprehensive revitalization and financinq
20 program that includes the following:
21 (1) the revitalization objectives of the city for the
22 targeted neighborhood;
23 ( 2) the specific activities or means bv which the citv
24 intends to pursue and implement the revitalization objectives;
25 ( 3) the extent to which the activities identified in clause
26 ( 2) will benefit low and moderate income families, will
27 alleviate the blighted condition of the taraeted neighborhood,
28 .or will otherwise assist in the revitalization of the taraeted
29 neighborhood;
30 (4) a statement of the intended outcomes to be achieved by
31 implementation of the revitalization program, how the outcomes
32 will be measured both qualitativelv and quantitatively, and the
33 estimated time over which they will occur; and
34 ( 5) a financing program and budget that identifies the
35 financial resources necessary to implement the revitalization
36 program. '
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1 �b� The financing program and budget must include the
2 following items:
3 ( 1) the estimated total cost to implement the
4 revitalization program;
5 ( 2) the estimated cost to implement each activity in the '
6 revitalization program identified in paraqraph (a) , clause ( 2) ;
7 ( 3) the estimated amount of financial resources that will
8 be available from all sources other than from the appropriation
9 available under section 7 to implement the revitalization
10 program;
11 ( 4) the estimated amount of the appropriation available
12 under section 7 that will be necessary to implement the
13 revitalization program;
14 ( 5) a description of the activities identified in the
15 revitalization program for which the state appropriation will be
16 used and the time or times at which the state appropriation will
17 be committed or spent; and
18 ( 6) a statement of how the city intends to meet the
19 requirement for a financial contribution matching the state
20 appropriation from city matching money in accordance with
21 section 7, subdivision 3.
22 Subd. 2. [TP,RGETED NEIGHBORHOOD PARTICIPATION IN
23 REVITALIZATION PROGRAM DEVELOPMENT. � The city shall develop a
24 process to consult the residents in the targeted neighborhood
25 concerninq the development, drafting, and implementation of the
26 revitalization program. The process may include the
27 establishment of an advisory board in each city. The process
28 must include at least one public hearing in addition to a public
29 hearing held by the advisory board.
30 Subd. 3. [ADVISORY BOP,RD. ] The governing body of the city
31 may establish a nine-member advisory board to assist the city in
32 implementing the revitalization program. The advisory board
33 shall consist of two city council members appointed by the city
34 council, one county commissioner appointed by the county board
35 of the county in which the city is located, two legislators
36 appointed by the city legislative delegation, and four residents
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1 who reside in a targeted neiahborhood ap ointed by the city
2 council. The advisory board shall advise the citv on the
3 preparation of the revitalization program including the
4 conversion from absent-owner rental housing to home ownershi ,
5 the promotion of commercial and industrial growth in targeted
6 neighborhoods, and the integration of human service rograms and
7 the redevelopment in targeted neighborhoods.
8 Subd. 4. [PRELIMINARY CITY REVIEW; STATE AGENCY
9 REVIEW. ] Before adoption of the revitalization program under
10 subdivision 5, the citv must submit a draft program to the
11 commissioner and the Minnesota housin finance aqencv for their
12 comment. The city may not adopt the revitalization program
13 until comments have been received from the state agencies or 30
14 days have elapsed without response after the proqram was sent to
15 them. Comments received bv the citv from the state agencies
16 within the 30-day period must be responded to in writing bv the
17 city before adoption of the program bv the citv.
18 Subd. 5. [CITY APPROVAL. ] The city may adopt the
19 revitalization program onlv after holding a public hearing after
20 the program has been prepared. Notice of the hearinq must be
21 provided in a newspaper of general circulation in the citv and
22 in the targeted neighborhood not less than ten days nor more
23 than 30 days before the date of the hearing.
24 Subd. 6. [PROGRAM CERTIFICATION. j A certification by the
25 city that a revitalization program has been approved by the city
26 council for the targeted neiqhborhood must be provided to the
27 commissioner together with a copy of the program. A copv of the
28 program must also be provided to the Minnesota housing finance
29 agency.
30 Subd. 7. [REVITALIZATION PROGRAM MODIFICATION. ] The
31 revitalization program may be modified at anv time by the city
32 council after a public hearing, notice of which is published in
33 a newspaper of general circulation in the city and in the
34 targeted neighborhood not less than ten days nor more than 30
35 days before the date of the hearina. If the city council
36 determines that the proposed modification is a significant
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� modification to the program originally certified under
2 subdivision 6, it must implement the revitalization program
3 approval and certification process of subdivisions 3 to 6 for
4 the proposed modification.
� Sec. 7. [PAYMENT; CITY MATCHING MONEY; DRAWDOWN; USES OF
6 STATE MONEY. J
7 Subdivision 1. [PAYMENT OF STATE MONEY. � Upon receipt from
8 a city of the certification that a revitalization program has
9 been adopted or modified, the commissioner shall, within 30
IO days, pay to the city the amount of state money identified as
11 necessary to implement the revitalization program or program
12 modification. State money may be paid to the citv onlv to the
13 extent that the appropriation limit for the cit_y specified in
14 subdivision 2 is not exceeded. Once the state monev has been
15 paid to the city, it becomes targeted neighborhood monev for use
16 by the city in accordance with an adopted revitalization program
17 and subject only to the restrictions on its use in sections 4 to
18 10 .
19 Subd. 2. [ALLOCATION. ] A city may receive a part of the
. 20 appropriations made available that is the proportion that the
21 population of the city bears to the combined population of
22 Minneapolis and Saint Paul. One city may agree to reduce its
23 entitlement amount so that the other may receive an amount more
24 than its entitlement amount. The population of each city for
25 the purposes of this subdivision is determined according to the
26 most recent estimates available to the commissioner . Interest
27 earned by a city from money paid to the city must be repaid to
28 the �ommissioner annually unless the revitalization program
29 identifies the interest as necessary to implement the
30 revitalization program and the requirement for city matching
31 money is satisfied with respect to the interest .
32 Subd. 3. [CITY MP,TCHING MONEY; DRAWDOWN OF STATE MONEY;
33 RESTRICTION ON USE OF STATE MONEY. ] A city may spend state money
34 onl�_ if the revitalization program identifies city matching
35 money to be used to implement the program in an amount equal to
36 the state appropriation. A citv must keep the state monev in a
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1 segregated fund for accounting purposes. No state money may be
2 used to pay the general administrative expenses of a city that
3 are incurred in connection with the planninq or implementation
4 of sections 4 to 10 .
5 Sec. 8. (CITY POWERS AND ELiGiBLE USES OF TARGETED
6 NEIGHBORHOOD MONEY. ]
7 Subdivision 1. [CONSOLIDATION OF EXISTING POWERS IN
8 TARGETED NEIGHBORHOODS. ] A city may exercise any of its
9 corporate powers within a targeted neighborhood including, but
10 not limited to, all of the powers enumerated and granted by
11 chapters 458, 462, 462C, 472, 472A, and 474. For the purposes
12 of chapter 458, a targeted neighborhood is considered an
13 industrial development district. A city may exercise the powers
14 of chapter 458 in conjunction with, and in addition to,
15 exercising the powers granted by chapters 462 and 462C in order
16 to promote and assist housing construction and rehabilitation
17 within a targeted neighborhood. For the purposes of section
18 462C.02, subdivision 9, a targeted neighborhood is considered a
19 "targeted area. °
20 Subd. 2. [GRANTS AND LOANS. ] In addition to the authority
21 granted by other law, a city may make grants and loans to
22 individuals, for-profit and nonprofit corporations, and other
23 organizations to implement a revitalization program. The grants
24 and loans must contain the terms concerning use of money,
25 repayment, and other conditions the city deems proper to
26 implement a revitalization program.
27 Subd. 3. [ELIGIBLE USES OF TARGETED NEIGHBORHOOD
28 MONEY. ] The city may spend targeted neighborhood money for any
29 purpose authorized by subdivision 1 or 2. Use of targeted
30 neighborhood monev must be authorized in a revitalization
31 program. '
32 Sec. 9. [HAZARDOUS BUILDING PENALTY. �
33 A citv mav assess a penalty equal to one percent of the
34 assessed value of a building located in a targeted neighborhood
35 defined in section 4 that the city determined to be hazardous as
36 defined in section 463. 15, subdivision 3 . The city shall send a
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1 written notice to the address to which the property tax
Z statement is sent at least 90 days before it mav assess the
3 penalty. If the owner of the building has not aid the enaltv
4 and fixed the property within 30 davs after receivinq notice of
� the penalty, the penalty is considered delinQUent and is
� increased by 25 percent each 60 davs the penaltv is not paid and
7 the property remains hazardous. For the purposes of this
� section, a penalty that is delinquent is considered a delinquent
� property tax and subject to Minnesota Statutes, cha ters 279,
Z� 280, and 281, in the same manner as delinQUent propertv taxes.
1T Sec. 10 . [ANNUAL AUDIT AND REPORT. ]
T.Z Subdivision 1. [ANNUAL FINANCIAL AUDIT. J In 1988 and
13 subsequent years, at the end of each calendar vear, the
1� legislative auditor shall conduct a financial audit to review
�� the spending of state money under sections 4 to 10. Before
l� spending state money .to implement a revitalization pro ram, the
ZT city must consult with the leqislative auditor to determine
I� appropriate accounting methods and princi les that will assist
I� the legislative auditor� in conductinq its financial audit . The
�Q results of the financial audit must be submitted to the
�1 legislative audit commission, the commissioner, and the
�2 Minnesota housing finance agencv.
�3 Subd. 2. [ANNUAL REPORT. ] A city that begins to implement
Z4 a revitalization program in a calendar vear must, bv March 1 of
�� the succeeding calendar vear, provide a detailed re ort on the
Z6 revitalization program or programs being implemented in the
�7 city. The report must describe the status of the pro ram
�8 implementation and analyze whether the intended outcomes
2�9 identified in section 6, subdivision 1, paragraph (a) , clause
30 ( 4) , are being achieved. The report must include at least the
31 following:
3:2. ( 1) the number of housing units removed, created, lost,
33 replaced, relocated, and assisted as a result of the program.
34 The level of rent of the units and the income of the households
3:5 affected must be included in the re ort;
3� (2) the number and type of commercial establishments
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1 removed, created, and assisted as a result of a revitalization
2 program. The report must include information regarding the
3 number of new jobs created by category, whether the jobs are
4 full time or part time, and the salary or wage levels of both
5 new and expanded jobs in the affected commercial establishments;
6 ( 3) a description of a statement of the cost of the public
7 improvement projects that are part of the program and the number
8 of jobs created per each $20,000 of funds expended on commercial
9 projects and applicable public improvement projects;
10 (4) the increase in the assessed valuation for the city as
11 a result of the assistance to commercial and housing assistance;
12 and
13 � 5) the amount of private investment that is a result of
14 the use of public money in a targeted neighborhood.
15 The report must be submitted to the commissioner, the
16 Minnesota housing finance agency, and the legislative audit
17 commission, and must be available to the public.
18 Sec. 11. [APPROPRIATION; DISTRIBUTION. J
19 $9,000,000 is appropriated from the general fund to the
20 commissioner of energy and economic development for payment to
21 the cities of Minneapolis and Saint Paul as provided in section
22 7. $4,500,000 is for fiscal year 1988 and $4,500,000 is for
23 fiscal year 1989.
24 Sec. 12. [REPEALER. J
25 Laws 1969, ctiapters 833 and 984, are repealed.
26 Sec. 13. [EFFECTIVE DATE; LOCAL P,PPROVAL. J
27 Sections 4 to 11 are effective for the city of Minneapolis
28 the da after com liance with section 645.021, subdivision 3, b
29 the governing body of the city of Minneapolis._
30 Sections 4 to 11 are effective for the city of Saint Paul
31 the dav after compliance with section 645.021, subdivision 3, by
32 the governing body of the city of Saint Paul.
33 ARTICLE 7
34 NATURP,L RESOURCES
35 Section 1. [93.001] [POLICY FOR MINERAL DEVELOPMENT. J
36 It is the policy of the state to provide for the
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1 diversification of the state ' s mineral economy throuqh lonq-term
2 support of mineral exploration, evaluation, develo ment,
3 production, and commercialization.
4 Sec. 2 . [93.002J [MINERAL COORDINATING COMMITTEE. ]
5 Subdivision 1. �ESTABLISHMENT. ] The mineral coordinating
6 committee is established to plan for diversified mineral
7 development. The mineral coordinatinq committee consists of the
8 director of the minerals division of the department of natural
9 resources, the director of the Minnesota geolo ical survev, the
10 director of the Universitv of Minnesota mineral resources
11 research center, and the director of the natural resources
12 research institute. The director of the minerals division of
13 the department of natural resources shall serve as chair . A
14 member of the committee may designate another person of the
15 member ' s organization to act in the member ' s place. The '
16 commissioner of natural resources shall rovide staff and
17 administrative services necessarv for the committee ' s activities. '
18 Subd. 2. [MINERAL DIVERSIFICATION PLAN. ] The mineral
19 coordinatinq committee shall prepare and adopt a ten-vear plan
20 for mineral diversification. The plan must include a strateqv
21 to:
22 (1) increase the knowledge of the state' s mineral potential;
23 ( 2) stimulate the development of mineral resources in the
24 state; and
25 (3) promote basic minerals research.
26 The plan must also include a two-year plan that establishes
27 funding priorities for the minerals programs under subdivision
28 3. The funding prio�ities must be updated every two years.
29 Subd. 3. (MINERALS PROGRAMS. ] The mineral diversification
30 plan must address at least the followinq: aeromagnetic surveys,
31 glacial till geochemistry surveys, qeologic drillinq and
32 mapping, LMIC minerals data base, drill core examination and
33 assay, industrial minerals characterization and research,
34 bedrock_geochemistry, nonferrous minerals research, reclamation
35 studies, economic evaluation of mineral resources, improved
36 geophysical and remote sensing base, acquisition of sampling
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1 equipment and analyses, determination of mineral rights
2 ownership, ferrous minerals research, evaluation of mineral
3 resource occurrence, � evaluation of value added processes, ore
4 deposit modeling, and basic mineral research.
5 Subd. 4. [SUBMISSION OF PLAN AND FUNDING PRIORITIES. ] �
6 The minerals coordinating committee shall submit the minerals
7 diversification plan to the legislature by December 31, 1987 .
8 (b) Hy January 15 of each odd-numbered year, the minerals
9 coordinating committee shall submit the two-vear funding
10 priority plan required under subdivision 2 to the chairs of the
11 house appropriations and environment and natural resources
12 committees and the chairs of the senate finance and environment
13 and natural resources committees.
14 Sec. 3. [APPROPRIATION. ]
15 Subdivision 1. [MINERALS PROGRAMS. � $1,000,000 is
16 appropriated from the general fund to the commissioner of
17 natural resources to accelerate geological mapping of the state,
18 accelerate evaluation of the state' s mineral potential and other
19 natural resources, and provide analytical support for the
20 minerals industry according to the mineral diversification plan
21 or a minerals industry acceleration plan developed by the
22 minerals coordinating committee. $500,000 is for fiscal year
23 1988 and $500,000 is for fiscal year 1989.
24 Subd. 2. [COUNTY FORESTRY ASSISTANCE PROGRAMS. ] $1,750 ,000
25 is appropriated from the general fund to the commissioner of
26 natural resources for grants to counties or groups of counties
27 for county forestry assistance programs. $875,000 is for fiscal
28 year ' 1988 and $875,000 is for fiscal year 1989. The
29 commissioner of natural resources shall make the appropriation
30 available to counties with the amount proportional to the
31 acreage of commercial tax-forfeited forested land managed by the
32 county. As a condition of receiving money, the commissioner of
33 natural resources shall require work plans, semiannual progress
34 reports, and final project reports.
35 Subd. 3. [FORESTRY MANAGEMENT. ] $250,000 is appropriated
36 from the general fund to the commissioner of natural resources
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1 for implementation of the forestry management plan required in
2 Minnesota Statutes, section 89 .011, on land that is not manaqed
3 for the school trust fund. $125,000 is for fiscal vear 1988 and
4 $125,000 is for fiscal year 1989 .
5 Sec. 4. [EFFECTIVE DATE. ]
6 This article is effective the dav following final enactment.
7 ARTICLE 8
8 IRON RANGE RESOURCES AND REHABILITATION
9 Section 1. [NORTHEAST MINNESOTA ECONOMIC DEVELOPMENT
10 FUND. ]
11 Subdivision 1. [APPROPRIATION. J $4,000,000 is appropriated
12 from the general fund to the commissioner of iron ran e
13 resources and rehabilitation. $300,000 of this ap ropriation
14 must be used in the same manner as money appropriated under
15 Minnesota Statutes, section 298.17.
16 Subd. 2. [PURPOSE OF EXPENDITURES. ] The money appropriated
17 in this section may be used for projects and programs for which
18 technological and economic feasibilitv have been demonstrated
19 and that have the following purposes: .
20 (1) creating and maintaining productive, permanent, skilled
21 employment, including employment in technologicallv innovative -
22 businesses; and
23 ( 2) eacouraging diversification of the economy and
24 promoting the development of minerals, alternative energy
25 sources utilizing indigenous fuels, forestry, small business,
26 and tourism.
27 Subd. 3. [USE OF MONEY. ] The money appropriated under this
28 section may be used to provide loans, loan guarantees, interest
29 buy-downs, and other forms of participation with private sources
30 of financing, provided that a loan to a private enterprise must
31 be for a principal amount not to exceed one-half of the cost of
32 the project for which financing is sought, and the rate of
33 interest on a loan must be no less than the lesser of eight
34 percent or the rate of interest set bv the Minnesota development
35 board for comparable small business development loans at that
36 time.
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1 Money appropriated in this section must be expended only in
2 or for the benefit of the tax relief area defined in Minnesota
3 Statutes, section 273 .134, and as otherwise provided in this
4 section.
5 Subd. 4. [PROJECT APPROVAL. ] The board shall by August 1,
6 1987, and each year thereafter prepare a list of projects to be
7 funded from the money appropriated in this section with
8 necessary supporting information includinq descriptions of the
9 projects, plans, and cost estimates. A project must not be
10 approved by the board unless it finds that:
T1 ( 1) the project will materially assist, directly or
12 indirectly, the creation of additional long-term emplovment
13 opportunities;
T4 ( 2) the prospective benefits of the expenditure exceed the
15 anticipated costs; and
16 (3) in the case of assistance to private enterprise, the
17 project will serve a sound business purpose.
18 To be proposed by the board, a project must be approved b_y
19 at least eight iron range resources �and rehabilitation board
ZO members and the commissioner of iron ranqe resources and
21 rehabilitation. The list of projects must be submitted to the
22 legislative advisory commission for its review. The list with
23 the recommendation of the legislative advisory commission must
24 be submitted to the governor, who shall, by November 15 of each
25 year, approve, disapprove, or return for further consideration,
Z6 each project. The money for a project may be spent only upon
27 approval of the project by the governor.
28 The board may submit supplemental projects for approval at
29 any time. Supplemental projects must be 'submitted to the
30 members of the legislative advisory commission for their review
31 and recommendations of further review. If a recommendation is
32 not provided within ten days, no further review by the
33 legislative advisory commission is required, and the governor
34 shall approve or disapprove each project or return it for
' 35 further consideration. If the recommendation by a member is for
36 further review, the governor shall submit the request to the
. 75
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1 legislative advisory commission for its review and �
2 recommendation. Failure or refusal of the commission to make a
3 recommendation promptly is a negative recommendation.
4 Subd. 5. [ADVISORY COMMITTEES. ] Before submission to the
5 board of a proposal for a project for expenditure of money
6 appropriated under this section, the commissioner of iron range
7 resources and rehabilitation shall appoint a technical advisory
8 committee consisting of at least seven persons who are
9 knowledgeable in areas related to the objectives of the
10 proposal. If the project involves investment in a scientific
11 research proposal, at least four of the committee members must
12 be knowledgeable in the specific scientific research area
13 relating to the project. Members of the committees must be
14 compensated as provided in Minnesota Statutes, section 15.059 ,
15 subdivision 3. The board shall not act on a proposal until it
16 has received the evaluation and recommendations of the technical
17 advisory committee.
18 Subd. 6. [USE OF REPAYMENTS AND EP,RNINGS. J Principal and
19 interest received in repayment of loans made under this section
20 must be deposited in the state treasury and are appropriated to
�
21 the board for the purposes of this section.
22 Sec. 2. Minnesota Statutes 1986, section 298. 292, is
23 amended to read:
24 298.292 [POLICY. ]
25 Subdivision 1. [PURPOSES. j The legislature is cognizant of
26 the severe economic dislocations and widespread unemployment
27 that result when a single industry on which an area is largely
28 dependent, experiences a drastic reduction in activity. The
29 northeast Minnesota economic protection trust fund is hereby
30 created to be devoted to economic rehabilitation and
31 diversification of industrial enterprises where these conditions
32 ensue as the result of the decline of such a single industry.
33 Priority shall be given to using the northeast Minnesota
34 economic protection trust fund for the following purposes:
35 fa} � project.s and programs that are designed to create
36 and maintain productive, permanent, skilled employment,
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1 including employment in technologically innovative businesses;
2 fb� � projects and programs to encourage diversification
3 of the economy and to promote the development of minerals,
4 alternative energy sources utilizing indigenous fuels, forestry,
5 small business, and tourism; and
6 fe� � projects and programs for which technological and
7 economic feasibility have been demonstrated;.
8 fd} Subd. 2. [USE OF MONEY. J Monev in the northeast
9 Minnesota economic protection trust fund may be used for the
10 following purposes:
11 �,1) to provide loans, loan guarantees, interest buy-downs
12 and other forms of participation with private sources of
13 financing, but a loan to a private enterprise shall be for a
14 principal amount not to exceed one-half of the cost of the .
15 project for which financing is sought, and the rate of interest
16 on a loan shall be no less than the lesser of eight percent or
17 an interest rate three percentage points less than a full faith
18 and credit obligation of the United States government of
19 comparable maturity, at the time that the loan is approved;
20 fe}-fesndiag (2) to fund reserve accounts established to
21 secure the payment when due of the principal of and interest on �
22 bonds issued pursuant to section 298.2211; end
23 ff} � to pay in periodic payments or in a lump sum
24 payment any or all of the interest on bonds issued pursuant to
25 chapter 474 for the purpose of constructing, converting, or
26 retrofitting heating facilities in connection with district
27 heating systems or systems utilizing alternative energy sources;
28 and
29 � 4) to invest in a venture capital fund or enterprise that
30 will provide capital to other entities that are engaging in, or
31 that will engage in, projects or programs that have the purposes_
32 set forth in subdivision 1. No investments may be made in a
33 venture capital fund or enterprise unless at least two other
34 unrelated investors make investments of at least $500,000 in the
35 venture capital fund or enterprise, and the investment by the
36 northeast Minnesota economic protection trust fund may not
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1 exceed the amount of the largest investment bv an unrelated
2 investor in the venture capital fund or enter rise. For
3 purposes of this subdivision, an "unrelated investor" is a
4 person or entity that is not related to the entity in which the
S investment is made or to any individual who owns more than 40
6 percent of the value of the entitv, in any of the followin
7 relationships: spouse, parent, child, siblinq, emplovee, or
8 owner of an interest in the entity that exceeds ten percent of
9 the value of all interests in it. For purposes of determininq
10 the limitations under this clause, the amount of investments
11 made by an investor other than the northeast Minnesota economic
12 protection trust fund is the sum of all investments made in the
13 venture capital fund or enterprise during the period beqinning
14 one year before the date of the investment by the northeast
15 Minnesota economic protection trust fund.
16 Money from the trust fund shall be expended only in or for
17 the benefit of the tax relief area defined in section 273 .134.
18 Sec. 3. Minnesota Statutes 1986, section 298. 296,
19 subdivision 2, is amended to read: �
20 Subd. 2. [EXPENDITURE OF FUNDS. J� Before January 1, 2002,
21 funds may be expended on projects and for administration of the
22 trust fund only from the net interest, earnings, and dividends
23 arising from the investment of the trust at any time, including
24 net interest, earnings, and dividends that have arisen prior to
25 July 13, 1982, plus $10,000,000 made available for use in fiscal
26 year 1983, except that any amount required to be paid out of the
27 trust fund to provide the property tax relief specified in Laws
28 1977; chapter 423, article X, section 4, and to make school bond
� 29 payments and payments to recipients of taconite production tax
30 proceeds pursuant to section 298. 225, may be taken from the
31 corpus of the trust. On and after January 1, 2002, funds may be
32 expended on projects and for administration from any assets of
33 the trust. Annual administrative costs, not including detailed
34 engineering expenses for the projects, shall not exceed five
35 percent of the net interest, dividends, and earnings arising
36 from the trust in the preceding fiscal year.
.
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1 Principal and interest received in repayment of loans made
2 pursuant to this section, and earnings on other investments made
3 under section 298.292, subdivision 2, clause ( 4) , shall be
4 deposited in the state treasury and credited to the trust.
5 These receipts are appropriated to the board for the purposes of
6 sections 298.291 to 298. 298.
7 Sec. 4. (EFFECTIVE DATE. ]
8 Section 2 is effective the dav followinq final enactment.
9 ARTICLE 9
10 MINNESOTA AGRICULTURAL AND ECONOMIC DEVELOPMENT PROGRAM
11 Section 1. Minnesota Statutes 1986, section 41A.01, is
12 amended to read: �
13 41A.01 [PURPOSE. ]
14 Sections 41A.01 to 4�P�.-96 41A. 08 provide a-fren�eaork for aa
15 agricultural reaeesree-�een-gnareaty-pregren�=-the-pt�rpe�es-ef
16 Mhieh-are-te-f�rther-the-dede�ep�ner�t-ef-the-�tetel�-egriees�ttsre�
17 re�eareea-and-in�preve-the-�arfset-fer-tt�-egrte��t�re�
18 pred�ceta and economic development in the state. All credit
19 advanced pursuant to loan guaranty commitments is to be secured
20 by subrogation of the state to mortgage security and other
21 security interests granted to the private lender, in proportion
22 to the amount advanced by the state. A �ean-gnaranty board is
23 established to investigate the feasibility of each project, its
24 conformity to public policy and to environmental standards, the
25 qualifications of the owners, operators, and lenders, and the
26 nature and extent of the security, prior to commitment. The
27 board shall also seek to secure financial participation by
28 private persons not supported by the guaranty, to assure that in
29 these respects each project satisfies and will continue to
30 satisfy criteria which are adequate in the judgment of the board.
31 Sec. 2. Minnesota Statutes 1986, section 41A.02,
32 subdivision 3, is amended to read:
3 3 Subd. 3. [fi8R�2ET��PHRP�i�-R�38AHR@$-�9AN-BHARAN�� MINNESOTA
34 AGRICULTURAL AND ECONOMIC DEVELOPMENT HOP,RD; HOARD. ]
35 "Agriea�t�ra�-reseesree-�ean-gnerer�ty Minnesota agricultural and
36 economic development board" or "board" n�een� consists of the
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1 commissioner of finance as chair, the commissioner of
2 agriculture, the-ee�seatener-ef-eon+�eree; the commissioner of
3 energy and economic development, and the director of the
4 pollution control agency, the president of the Greater Minnesota
5 Corporation, and two public members with experience in finance,
6 appointed by the Greater Minnesota Corporation.
7 Sec. 3. Minnesota Statutes 1986, section 41A.02,
8 subdivision 4, is amended to read:
9 Subd. 4. [A6R�@����RP►�-R$S6E3R@E-�9P�i-BH�N�� MINNESOTA
10 AGRICULTURAL AND ECONOMIC DEVELOPMENT FUND; BHARAN�P� DEVELOPMENT
11 FUND. ] "Agrtees�tt�re�-reaet�ree-�ena-gt�ararcty Minnesota
12 agricultural and economic development fund" or "gaarsnty
13 development fund" means the fund created by section 41A.05.
14 Sec. 4. Minnesota Statutes 1986, section 41A.02,
15 subdivision 6, is amended to read:
16 Subd. 6. [AGRICULTURAL RESOURCE PROJECT; PROJECT. J
17 "Agricultural Fesource project" or "project" means � any
18 facility, or portion of a facility, located in the state which
19 is operated or � to be operated primarily for the production from
20 agricultural resources of marketable products, ( 2) buildings,
21 equipment, and land used for the commercial production of
. 22 turkeys or turkey products, ( 3) a facility or portion of a
23 facility used for the commercial production of fish or of
24 products made from commercially-produced fish or rough fish, as
25 defined in section 97A.015, subdivision 43, that are not
26 commerciallv produced, or (4) real or personal property used or
27 useful in connection with a revenue-producing enterprise, or a
28 combination of two or more revenue-producing enterprises engaged
29 in a business, that is not used for the production of livestock,
30 other than poultry, or for the production of crops, plants, or
31 milk. The land in clause ( 2) is limited to land on which
32 buildings and equipment are situated and immediately surrounding
33 land used for storage, waste disposal, or other functions
34 directly related to the commercial production of turkeys or
35 turkey products at that project site. The land in clause ( 2)
36 does not include land used for the growing or raising of crops
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1 or the grazing of livestock other than poultry. A project
2 includes a facility or portion of a facility for mixing or
3 producing substances to be mixed with other substances for use
4 as a fuel or as a substitute for petroleum or petrochemical
5 feedstocks.
6 Sec. 5. Minnesota Statutes 1986, section 41A.02,
7 subdivision 11, is amended to read:
8 Subd. 11. [LENDER. J "Lender" means a corporation or any
9 investment or commercial banking institution, savings and loan
10 institution, insurance company, investment company, er other
11 financial institution or institutional investor making,
12 purchasing, or participating in a loan or any part of a loan, or
13 a public entity authorized to make agricultural loans.
14 Sec. 6. Minnesota Statutes 1986, section 41A.02, is
15 amended by adding a subdivision to read:
16 Subd. 16. [ELIGIBLE SMALL BUSINESS. ] "Eligible small
�7 business" means:
18 (1) an enterprise determined by the board to constitute a
19 small business concern as defined in regulations of the United
20 States Small Business Administration under IInited States Code,
21 title 15, sections 631 to 647; or
Z2 ( 2) a business eligible to receive assistance under section
23 12.
24 Sec. 7. Minnesota Statutes 1986, section 41A.02, is
25 amended by adding a subdivision to read:
26 Subd. 17. [SMP,LL BUSINESS DEVELOPMENT LOAN. ] "Small
27 business development loan" means a loan to a business that is_ an
28 "eligible smal�. business" to finance capital expenditures on an
29 interim or long-term basis to acquire or improve land, acquire_,
30 construct, rehabilitate, remove, or improve buildings, or to
31 acquire and install fixtures and equipment useful to conduct a
32 small business, including facilities of a capital nature useful
33 or suitable for a business engaged in an enterprise promoting
34 emplovment including, without limitation, facilities included
35 within the meaning of the term "project" as defined in sections
36 474.02, subdivisions 1 to lf, and 474.03, subdivision 4.
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1 Sec. 8. [41A.021] [SUCCESSOR STATUS. ]
2 The board is the legal successor in. all respects of the
3 agricultural resource loan uarantv board established bv Laws
4 1984, chapter 502, article 10, and all bonds, resolutions,
5 contracts, and liabilities of the aqricultural resource loan
6 quaranty board are the bonds, resolutions, contracts, and
7 liabilities of the board as renamed and reconstituted bv section
8 41A.02, subdivision 3 .
9 Sec. 9. (41A.022] [MINNESOTA ENERGY AND ECONOMIC
10 DEVELOPMENT AUTHORITY; SUCCESSOR STATUS. ]
11 The board is the legal successor in all res ects of the
12 Minnesota energy and economic development authoritv under the
13 general bond resolution for the Minnesota small business
14 development loan program, as amended and restated by the
15 authority on September 24, 1986. All bonds, resolutions,
16 contracts, and liabilities of the Minnesota ener y and economic
17 development authoritv relating to the Minnesota small business
18 development loan program are the bonds, resolutions, contracts,
19 and liabilities of the Minnesota agricultural and economic
20 development board.
21 Sec. 10. [41A.023J [POWERS. ]
22 In addition to other powers granted bv this cha ter , the
23 board may:
24 (1) sue and be sued;
25 ( 2) acquire, hold, lease, and transfer anv interest in real
26 and personal propertv for its cor orate ur oses;
Z7 �3) sell at public or private sale anv instrument or
2� obligation evidencing a loan; �
29 ( 4) obtain insurance on its propertv;
30 ( 5) obtain municipal bond insurance, letters of credit,
31 surety obligations, or similar a4reements from financial
32 institutions;
33 ( 6) enter into other agreements or transactions, without
34 regard to chapter 16B, that the board considers necessary or
35 appropriate to carry out the purposes of this chapter with
36 federal or state agencies, political subdivisions of the state,
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1 or other persons, firms, or corporations;
2 (7) establish and collect fees without regard to cha ter 14
3 and section 16A.128;
4 (8) accept appropriations, gifts, rants, and bequests;
5 (9) use money received from anv source for any legal
6 purpose or program of the board;
7 (10) participate in loans for agricultural resource
8 projects in accordance with section 11;
9 (11) provide small business development loans in accordance
10 with section 12; and
11 �1_2__) guarantee or insure bonds or notes issued bv the board.
12 Sec. 11. [41A.035 ] [AGRICULTURAL RESOURCES LOAN
13 PP,RTICIPATION. ]
14 The board may participate in loans made to finance
15 agricultural resource projects by purchasing from a lender up to
16 75 percent of the amount of each eligible loan. If the loan
17 Qarticipated in is for $500,000 or less, the loan mav be for 100
18 pe_rcent of the cost of the project. If the loan participated in
19 exceeds $500,000, the loan mav not exceed 80 percent of the cost
,
20 of the project. The lender shall service the loan or cause it
21 to be serviced in a manner that equallv rotects the lender ' s
22 and the board' s interests. ,
23 Sec. 12. [41A.036] [SMALL BUSINESS DEVELOPMENT LOANS. ]
24 Subdivision 1. (LOANS; LIMITATIONS. ] (a) The board may
25 make, purchase, or participate with financial institutions in
26 making or purchasing small business development loans not
27 exceeding $1,000,000 in principal amount with respect to small
28 busiriess loans made or purchased by the board and not exceeding
29 $1,000,000 principal amount with respect to the board' s share
30 when the board participates in makinQ or purchasing small
31 business loans.
32 �Z_ With respect to loans that the board makes or purchases
33 or participates in, the board mav determine or provide for their
34 servicing, the percentage of board participation, if any, the
35 times the loans or participations are pavable and the amounts of
36 payment, their amount and interest rates, their security, if
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1 any, and other terms, conditions, and provisions necessarv or
2 convenient in connection with them and mav enter into all
3 necessary contracts and securitv instruments in connection with
4 them. The board may enter into commitments to purchase or
5 participate with financial institutions or other ersons u on
6 the terms, conditions, and provisions determined bv it. Loans
7 or participations may be serviced by financial institutions or
8 other persons designated by the board.
9 (c) The board shall obtain the best available securitv for
10 all loans. The board may provide for or require the insurance
11 or guaranteeing of the loans or board participations in whole or
12 in part by the federal government or a department, aaencv, or
13 instrumentality of it, by an appropriate board account, or by a
14 private insurer.
15 Subd. 2. [SMALL BUSINESS DEVELOPMENT LOANS;
16 PREFERENCES. ] The following eligible small businesses have
17 preference among all business applicants for small business
18 development loans:
19 (1) businesses located in rural areas of the state that are
,
20 experiencing � the most severe unemployment rates in the state;
21 ( 2) businesses that are likely to expand and provide
22 additional permanent employment in rural areas of the state;
23 ( 3) businesses located in border communities that
24 experience a competitive disadvantage due to location;
25 { 4) businesses that have been unable to obtain traditional
26 financial assistance due to a disadvantageous location, minority
27 ownership, or other factors rather than due to the business
28 � having been considered a poor financial risk;
29 �5) businesses that utilize state resources and reduce
30 state dependence on outside resources, and that produce products
31 or services consistent with the long-term social and economic
32 needs of the state; and
33 �6) businesses located in designated enterprise zones, as
34 described in section 273.1312, subdivision 4.
35 Subd. 3. [LOCAL GOVERNMENTAL UNIT SPONSOR; RESOLUTION. ] A
36 business applying for a loan must be sponsored by a resolution
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1 of the governing body of the local governmental unit within
2 whose jurisdiction the project is located. For purposes of this
3 paragraph, "loc.al governmental unit" means a home rule charter
4 or statutory city when the project is located in an incorporated
5 area, a county when the project is located in an unincorporated
6 area, or an American Indian tribal council when the project is
� 7 located within a federally recognized American Indian
8 reservation or community.
9 Sec. 13 . Minnesota Statutes 1986, section 41A.04,
10 subdivision 1, is amended to read:
11 Subdivision 1. [REQUIREMENTS. ] (a) Any applicant may file
12 a written application with the state commissioner of energy and
13 economic development on behalf of the board, to be considered by
14 the agriett�t�ra�-reaersree-�eaa-g�Qranty board, for a guaranty by
15 the state of a portion of a loan or for issuance of bonds for an
16 agricultural resource project. In general, the application must
17 provide information similar to that required by an investment
18 banking or other financial institution considering such a
19 project for debt financing. Specifically, each application must
20 include in brief but precise form the following information, as
21 supplied by the applicant, the borrower, or the lender:
22 (1) a description of the scope, nature, extent, and
23 location of the proposed project, including the identity of the
24 borrower and a preliminary or conceptual design of the project;
25 ( 2) a description of the technology to be used in the
26 project and the prior construction and operating experience of
27 the borrower with such projects;
28 (3) a detailed estimate of the items comprising the total
29 cost of the project, including escalation and contingencies,
30 with explanation of the assumptions underlying the estimate;
31 ( 4) a general description of the financial plan for the
32 project, including the mortgage and security interests to be
33 granted for the security of the guaranteed loan or the bonds,
34 and all sources of equity, grants, or contributions or of
35 borrowing the repayment of which is not to be secured by the
36 mortgage and security interests, or, if so secured, is expressly
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1 subordinated to the guaranteed loan;
2 ( 5) an environmental report analyzing potential
3 environmental effects of the project, any necessary or proposed
� 4 mitigation measures, and other relevant data available to the
5 applicant to enable the board to make an environmental
6 assessment;
7 (6) a list of applications to be filed and estimated dates
8 of approvals of permits required by federal, state, and local
9 government agencies as conditions for construction and
10 commencement of operation of the project;
11 (7) an estimated construction schedule;
12 (8) an analysis of the estimated cost of production of and
13 market for the product, including economic factors justifying
14 the analysis and proposed and actual marketing contracts,
15 letters of intent, and contracts for the supply of feedstock;
16 (9) a description of the management experience of the
17 borrower in organizing and undertaking similar projects;
18 (10) pro forma cash flow statements for the first five
19 years of project operation including income statements and
20 balance sheets;
21 (11) a description of the borrower ' s organization and,
22 where applicable, a copy of its articles of incorporation or
23 partnership agreement and bylaws;
24 (12) the estimated amount of the loan or bonds and
25 percentage of the guaranty requested, the proposed repayment
26 schedule, and other terms and conditions and security provisions
27 of the loan;
28 (13) an estimate of the amounts and times of receipt of
29 guaranty fees, sales and use taxes, property tax increments, and
30 any other governmental charges which may be available for the
31 support of the �tete-g�eranty agricultural development fund as a
32 result of the construction of the project, with an analysis of
33 the assumptions on which the estimate is based;
34 (14) a copy of any lending commitment issued by a lender to
35 the borrower;
36 ( 15) a statement from the lender, if identified, as to its
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1 general experience in financing and servicing debt incurred for
2 projects of the size and general type of the project, and its
3 proposed servicing and monitoring plan; and
4 (16) additional information required by the board.
5 (b) �he-app�ieant-she��-pey-�pen-ft�tng-ef-the-app�teatten
6 a-fee-eqna�-te-.-�5-pereer�t-ef-the-Q�ocsnt-ef-the-�een-gnarar�tp-er
7 bercd-reqneated.---�he-fee-�ha��-be-petd-te-the-een+n+ts�tener-ef
8 ftnanee-arcd-depeasted-tn-the-gercera�-fand.---�f-the-beerd
9 8eter�is�es-net-te-iaa�e-a-eenu�stn�ent-fer-tke-pre�eet=-tke-fee
10 ahn��-be-refnnded-te-the-epp�teantT-�eaa-the-beardla-ee�t-ef
11 proee��tng=-reeteatag;-and-eve��atirtg-the-epp�teatien.---�f-the
12 beetrd-iaatses-a-ee�it�nent-for-the-pre�eet-a�d-the-npp�seatten
13 fee-exeeeda-the=beard�a-eeat-ef-preeeaair�gT-redieatrcg=-and
14 ede��etrng-the-epp�teatiercY-tke-bet�er�ee-ahe��-be-tran�ferred
15 fren�-the-geaera�-f�ad-te-the-pre�eet-Qeee�nt-in-the-g�ara�tp
16 fund-and-eredited-egaiaat-the-an�e�nt-ef-the-ee�tt�ent-fee
17 req�ired-in-aeetien-4�Ar93;-a�bdtdi�ion-3T-e�attae-f�}.---�he
18 eeanty-er-r�ra�-dede�ep�ent-finanee-a�therity-�ay-req�ire-the
19 prepesed-borreaer-�nder-tke-pre�eet-te-pay-tke-epp�4eatte�-fee.-
20 fe� If the application is made by an applicant other than
21 the county or rural development finance authority and tax
22 increment financing is to be used for the project, the
23 application must include a copy of a resolution adopted by the
24 governing body of the county or rural development finance
25 authority in which the project is located. The resolution must
26 authorize the use of tax increment financing for the project as
27 required by section 41A.06, subdivision 5.
28 Sec. 14. Minnesota Statutes 1986, section 41A.05,
29 subdivision 1, is amended to read:
30 Subdivision l. �ESTABLISHMENT OF FUND. ] Per-tke-pe�rpeae-ef
31 dede�eptr�g-the-atatey�-agriets�ttsrtt�-reae�ree�-by-extercdtng
32 eredst-en-ree�-e�tate-�eenrtty=-the-ngrte��t�ra�-reso�ree-�een
33 gaeraaty The Minnesota agricultural and economic development
34 fund is established as a special and dedicated fund to be held
35 and invested separately from all other funds of the state. All
36 money appropriated to the fund, and all guaranty fees, retail
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S.F. No. 1 �
1 sales taxes, property tax increments, and other money from any
2 source which may be credited to the fund para�ant-te-�Qa-er
3 p�ranant-te-the-ter�a-ef-graata;-ee�trib�ttena=-er-ee�traeta are
4 appropriated and-ahe��-�e�at�-aeai�ab�e-fer-the-p�rpeaea-ef-the
5 f��d-�nti�-the�e-pnrpeaea-hade-been-fn��y-aeee�p�iahed to the
6 board to carry out the purposes of this cha ter. The board
7 may maintain or establish within the g�arantp Minnesota
8 agricultural and economic develo ment fund reserve
9 fa�da accounts, project accounts, trustee accounts, special
10 guaranty fund accounts, or other restrictions it determines
11 necessary or appropriate te-earry-e�t-the-pnrpeaea-ef-tkta
12 ehapter.---$xeept-as-etherai�e-prevtded-��-thr�-aeetsen;-tke-f�nd
13 �ap-be-�aed-en�y-fer-paytng-a�e�nta-dae-n�der-�oan-ganrantiea
14 a�8-pri�eipa�-a�d-tntere�t-aaaiatanee-eentrnet�-e�tered-tnte-by
15 the-�tate;-p�r��ant-te-tke-agrie��t�ra�-reae�ree-�ean-gnarantp
16 pregra�. The board may enter into pledge and escrow aqreements
17 or indentures of trust with a trustee for the pur ose of
18 maintaining the accounts.
19 Sec. 15. Minnesota Statutes 1986, section 41A.05,
20 subdivision 2, is amended to read:
21 Subd. 2. [ ISSUANCE OF HONDS. J (a) Snb?eet-te-�eetten
22 �6A.-88;-�pe�-epp�ieatte�-p�ra�aat-te-aeetien-���.-94= The board
23 by resolution may exercise the powers of a rural development
24 authority under sections 362A.01 to 362A.05 and the powers of a
25 municipality under chapter 474 for the purposes of predidtng
26 �eney-te-pap-the-eeat�-ef financing a project, including the
27 issuance of bonds and the �enn application of the bond proceeds
28 pursuant to a lease, loan, loan guaranty, loan participation, or
29 other agreement. The bonds must be issued, sold, and secured on
30 the terms and conditions and in the manner determined by
31 resolution of the board. Seetiena Section 16A.80 and-4�4.-�3-de
32 does not apply to the bonds. Notwithstanding subdivision 1, a
33 reserve established for the bonds provided by the borrower,
34 including out of bond proceeds, may be deposited and held in a
35 separate account in the g�aranty Minnesota agricultural and
36 economic development fund and applied to the last installments
88
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1 of principal or interest on the bonds, subject to the reserves
2 being withdrawn for any purpose permitted by subdivision 1. The
3 board may by resolution or indenture pledge any or all amounts
4 in the gtcereRty fund, including any reserves and investment
5 income on amounts in the fund, to secure the payment of
6 principal and interest on any or all series of bonds, upon the
7 terms and conditions as provided in the resolution or
8 indenture. To the extent the board deems necessary or desirable
9 to prevent interest on bonds from becoming subject to federal
10 income taxation, (1) the amounts in the g�arQnty fund shall be �
11 invested in obligations or securities with restricted yields and
12 ( 2) the investment income on the amounts are released from the
13 pledge securing the bonds or loan guaranty and appropriately
14 applied to prevent taxation.
15 (b) Bonds issued pursuant to this chapter are not general
16 obligations of the state or the board. The full faith and
17 credit and taxing powers of the state and tlie board are not and
18 may not be pledged for the payment of the bonds. No person may
19 compel the levy of a tax for the payment or �compel the
20 appropriation of money of the state or the board for the payment
21 of the bonds, except as specifically provided in this chapter. �
22 (c) �he-iaae�aaee-ef-bercd�-p�ra�ar�t-te-thia-�tsbdidi�ter�-ia
23 at�b�eet-te-�eetien�-4�4.-�8-te-4�4.-��.- For purposes of
24 sections 4�+�.-�6 474A.01 to 4�4.-�9 474A. 21, the board is a local
25 issuer and may apply for allocations of authority to issue
26 private activity obligations and may enter into an agreement for
27 the issuance of obligations by another issuer.
28 Sec. 16. [41A.065] [CERTIFIED DEVELOPMENT COMPANY. ]
29 � Subdivision 1. [PURPOSE; OBJECTIVES. ] The board may
30 create, promote, and assist a development company that will
31 qualify as a certified development company for the purposes of
32 United States Code, title 15, section 697, and Code of Federal
33 Regulations, title 13, section 108.503.
34 The board shall utilize the development company program to
35 stimulate the state' s economic activity.
36 The development company and its directors and officers
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1 shall comply with the organizational, operational, re ulatorv,
2 and reporting requirements as promulgated bv the United States
3 Small Business Administration and the guidelines contained in
4 the bylaws, articles of incorporation, and standard operatin
5 procedure prescribed by the Small Business Administration.
6 Subd. 2. [CAPITAL, LOAN LIMITS; MEMBERSHIP REQUIREMENTS. ]
7 The capital for a certified development company must be derived
8 from corporate holders or members, each of whom must not have
9 more than ten percent of the voting control of the development
10 company. The company must have a minimum of ten members. The
11 members of the company from each economic development rection
12 must represent, to the greatest extent practical, the same
13 �roQortion of the membership of the companv as the population of
14 the economic development region is of the population of the
15 state. The loan limit of each member must be established at the
16 time of its acceptance as a member and must be com uted on the
17 basis of the financial information contained in or made a art
18 of its application for membership. Loan limits must be
19 established at the thousand dollar amount nearest the amount
20 computed in accordance with the provisions of the articTes of
21 incorporation and this section.
22 Subd. 3. [MEMBERS. ] Members must be representatives of
23 local government, community organizations, financial
24 institutions, and businesses in Minnesota and must, upon
25 application, have been accepted for membership by a majoritv
26 vote of the members of the board of directors present at a
27 regular or special meeting of the board at which there is a
28 quorum. A "financial institution" is a business organization
29 recognized under Minnesota or federal law as a banking
30 institution, trust company, savings and loan association,
31 insurance company, or a corporation, partnership, foundation or
32 other institution licensed to do business in the state of
33 Minnesota and engaged primarily in lending or investing money.
34 Subd. 4. [MEMBERSHIP APPLICATIONS. J Applications for
35 membership must be submitted to the development company' s board
36 of directors on forms provided by the corporation and
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1 accompanied by additional information as the form may require.
2 Application forms must provide that if the application is
3 approved and the applicant accepted for membership by the
4 development company' s board of directors before withdrawal of
5 the application, the applicant agrees to become a member upon
6 the acceptance and to assume the rights and obligations of a
7 member. Notice of approval or rejection of an application must
8 be forwarded, by certified or registered United States mail, to
9 the applicant for the attention of the person signing the
10 application, within 15 days following the date when the approval
11 or rejection is made. Approval of the application constitutes
12 acceptance of the applicant as a member of the corporation.
13 Subd. 5. [OFFICERS. ] The executive officers of the
14 development company are a president, one or more vice presidents
15 including the executive vice president, a secretary, and a
16 treasurer. None of the officers, except the president, need be
17 directors. One person may hold the offices and perform the
18 duties of any two or more of the offices. The development
19 company' s board of directors by majority vote may leave unfilled
20 for any period it may fix any office except that of president,
21 treasurer, or secretary.
22 Subd. 6. [ASSISTANCE. � The commissioner of energy and
23 economic development shall make available the prof�essional staff
24 of the department to provide services to the development company
25 including, but not limited to, accounting, legal, and business
26 assistance services. The staff must have the capability to
27 package, process, close and service loans made through the
I 28 development company. � ,
29 Subd. 7. [REPORTS. ] The development company shall submit
30 to the Small Business Administration annual reports on its
31 operation. When requested bv the Small Business Administration,
32 interim reports of a similar nature must be provided. The
33 re orts must be provided in accordance with the instructions and
34 attachments set forth by the Small Business Administration. The
35 development companv shall complv with all regulations issued
36 under the small business investment act of 1958, as amended, as
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Il well as applicable state and federal laws affecting its
Z operation.
3 Subd. 8. [REVOLVING ACCOUNT. ] The development company may
4 charge a one-time processing fee up to the maximum allowed by
S the Small Business Administration on a debenture issued for loan
6 purposes. In addition, a fee for servicing loans may be imposed
7 up to the maximum allowed by the Small Business Administration
8 based on the unpaid balance of each debenture. These fees must
9 be deposited in the state treasury and credited to a s ecial
]:A� account. Money in the account is appropriated to the board to
11: pay the costs of administering the proqram, including ersonnel
]:Z' costs; compensate members of the board of directors under
T.3 section 15.0575, subdivision 3, and to create and operate a pool
l'4- of money for investment in projects that further the purposes of
1'�= this section.
].:fi� Sec. 17. Minnesota Statutes 1986, section 41A.08, is
L'7% amended to read:
1:�3 41A.08 [STAFF. J
193 Subdivision 1. [EMPLOYEES. ] Subject to all other
ZD; applicable laws governing employees of or employment by a
2� department or agency of the state, the commissioner of energy
2� and economic development, on behalf of the board, may retain or
23: employ the officers, employees, agents, contractors, and
� consultants the commissioner determines necessary or appropriate
2�; to discharge tlie functions of the board in respect to the
2� agricultural resource loan program. The commissioner shall
Z.:T' define their duties and responsibilities.
2�; Subd. 2. [EXECUTIVE DIRECTOR. ] The commissioner shall
2J: emQloy, with the concurrence of the board, an executive
30: director. The executive director shall perform the duties that
3� the board may require in carrying out its responsibilities. The
3� executive director ' s position is in the unclassified service.
33' Sec. 18. [RESPONSIBILITIES TRANSFERRED TO MINNESOTA
33�. DEVELOPMENT HOARD. ]
3�� Subdivision 1 . [TRP,NSFER. J The responsibilities under the
3�6 general bond resolution for the Minnesota small business
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1 development loan program, as amended and restated by the
2 authority on September 24, 1986, and the responsibilities for
3 the certified development companv pro ram under section 116M. 05
4 are transferred from the Minnesota enerqv and economic
5 development authoritv to the Minnesota agricultural and economic
6 development board. Monev desiQnated or committed to the small
7 business development loan program is transferred to the
8 Minnesota agricultural and economic development fund, to be
9 credited to a separate account to be used to carrv out the
10 purposes specified in section 9. This transfer includes four
11 classified positions and one unclassified osition from the
12 financial management division of the de artment of enerqv and
13 economic development. Minnesota Statutes, section 15.039
14 applies to the transfer of responsibilities.
15 Subd. 2. [POWERS CONTINUED. ] To carry out the purposes
16 specified in sections 9 and 19, the board may exercise the
17 powers granted to the Minnesota ener v and economic development
18 authority under Minnesota Statutes 1986, sections 116M.06,
19 116M.07, and 116M.08, notwithstandin the re eal of those
20 sections.
21 Sec. 19. [LOAN REPAYMENTS. ]
22 The commissioner of energv and economic develo ment shall
23 credit money received before Jul_y 1, 1987, from loan re ayments,
24 earnings, releases from insurance reserve accounts, and other
25 income from the followina programs to the Minnesota agricultural
26 and economic development fund: the s ecial assistance program
27 under section 116M.07, subdivision 11, exce t for the small
28 business development loans; the technologv product loan program;
29 the tourism loan proqram created under section 116M.07; the
30 energy loan insurance program under section 116M.11; the energy
31 development fund proctram under section 116M.12; and the
32 Minnesota fund program under sections 472.11 to 472 .13. The
33 commissioner of enerqv and economic development shall credit
34 money received on or after July 1, 1987, to the greater
35 Minnesota fund.
36 Sec. 20. [HAZARDOUS WASTE PROCESSING FACILITY LOANS. ]
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1 Subdivision 1 . [AUTHORITY TO MP,KE LOANS. ] The Minnesota
2 agricultural and economic development board may make, purchase,
3 or participate in making or purchasing hazardous waste
4 processing facility loans in any amount, and may enter into
5 commitments therefor. A private person proposing to develop and
6 operate a hazardous waste processing facility is eligible to
7 apply for a loan under this subdivision. Applications must be
8 made to the Minnesota agricultural and economic development
9 board. The Minnesota agricultural and economic development
10 board shall forward the applications to the waste management
11 board for review pursuant to section 115A.162. If the waste
12 management board does not certify the application, the Minnesota
13 agricultural and economic development board may not approve the
14 application nor make the loan. If the waste management board
15 certifies the application, the Minnesota agricultural and
16 economic development board shall approve the application and
17 make the loan if money is available for it and if the Minnesota
18 agricultural and economic development board finds that:
19 (1) development and operation of the facility as proposed
20 by the applicant is economically feasible;
21 (2) there is a reasonable expectation that the principal
22 and interest on the loan will be fully repaid; and
23 ( 3) the facility is unlikely to be developed and operated
24 without a loan from the Minnesota agricultural and economic
25 development board. .
26 The Minnesota agricultural and economic development board
27 and the waste management board shall establish coordinated
28 procedures for loan application, certification, and approval.
29 The Minnesota agricultural and economic development board
30 may use the Minnesota agricultural and economic development fund
31 to provide financial assistance to any person whose hazardous
32 waste processing facility loan application has been certified by
33 the waste management board and approved by the Minnesota
34 agricultural and economic development board, and for this
35 purpose may exercise the powers granted in Minnesota Statutes
36 1986, section 116M.06, subdivision 2, with respect to any loans
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1 made or bonds issued under this subdivision regardless of
2 whether the applicant is an eligible small business.
3 The Minnesota agricultural and economic development board
4 may issue bonds and notes in the aggregate principal amount of �
5 $10,000,000 for the purpose of making, purchasing, or
6 participating in making or purchasing hazardous waste processing
7 facility loans.
8 The Minnesota agricultural and economic development board
9 may adopt emergency rules under sections 14.29 to 14. 36 to
10 implement the loan program under this subdivision. Emergency
11 rules adopted by the Minnesota agricultural and economic
12 development board remain in effect for 360 days or until
13 permanent rules are adopted, whichever occurs first.
14 Subd. 2. [MINNESOTA ENERGY AND ECONOMIC DEVELOPMENT
15 AUTHORITY; SUCCESSOR STATUS. ] Notwithstanding the repeal of
16 section 116M.07, subdivision 9, the Minnesota agricultural and
17 economic development board is the legal successor� in all
18 respects of the Minnesota energy and economic development
19 authority for the hazardous waste processing facility loan
20 program for a project o� facility described under Minnesota
21 Statutes 1986, section 116M.03, subdivision 15, with respect to
22 which the Minnesota energy and economic development authority
23 passed a preliminary resolution before May 1, 1987 . All
24 resolutions of the Minnesota energy and economic development
25 authority relating to the projects or facilities are the
26 resolutions of the Minnesota agricultural and economic
27 development board.
28 Sec. 20. [INSTRUCTION TO REVISOR. ]
29 The revisor of statutes is directed to change the phrase
� 30 "agricultural resource loan guaranty board" wherever it appears
31 in Minnesota Statutes to "Minnesota agricultural and economic
32 development board" in the next and subsequent editions of the
33 statutes.
34 Sec. 21. [INSTRUCTION TO REVISOR. ]
35 The revisor of statutes is directed to change the phrase
36 "aqricultural resource loan guaranty fund" wherever it appears
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S.F. No. 1
1 in Minnesota Statutes to "Minnesota aqricultural and economic
2 development fund" in the next and subseQuent editions of the
3 statutes.
4 Sec. 22. [APPROPRIATION. �
5 $400,000 is transferred from the economic development fund
6 to the Minnesota agricultural and economic develo ment fund.
7 $200,000 is for fiscal year 1988 and $200,000 is for fiscal vear
8 1989.
9 Sec. 23. [EFFECTIVE DATE. J
10 Sections 18 and 19 are effective the day followinq final
11 enactment.
12 ARTICLE 10
13 EDUCATION AND TRAINING PROGRAMS
14 Section l. Minnesota Statutes 1986, section 116L.02, is
15 amended to read:
16 116L.02 [3685 JOB SKILLS PARTNERSHIP PROGRAM. ]
17 The Minnesota job skills partnership program is created to
18 act as a catalyst to bring together employers with specific
19 training needs with educational or other nonprofit institutions
20 which can design programs to fill those needs. The partnership
21 shall work closely with employers to train and place workers in
22 identifiable positions as well as assisting educational or other
23 nonprofit institutions in developing training programs that
24 coincide with current and future employer requirements. The
25 partnership shall provide grants to educational or other
26 nonprofit institutions for the purpose of training displaced
27 workers. A participating business must match the grant-in-aid
28 made by the Minnesota job skills partnership. Preference must
29 be given to a business located in a rural area. The match may
30 be in the form of funding, equipment, or faculty.
31 Sec. 2. Minnesota Statutes 1986, section 116L.03,
32 subdivision 2, is amended to read:
33 Subd. 2. [APPOINTMENT. ] Me�ber�-aha��-be-appeiated-aa
34 fe��eas---fe�r-�e�bera-appei�ted-by-tke-apeaker-ef-the-ke�ae;
35 ene-�e�ber-eppetntea-by-the-�inorttp-�eeder-ef-the-he�ae;-fo�r
36 �e�bera-appor�ted-b�-tke-�ajorrtp-�eeder-ef-the-aenate;-ene
96
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1 n+en�ber-appeinted-by-the-n�iaerity-�eeder-ef-the-aenate- The
2 Minnesota job skills partnership board consists of: eight
3 members appointed by the governor;-and, the eenu�i�ateeers-ef-the
4 departn�enta commissioner of energy and economic development,
5 ed�eatren=-and-�eb�-end-trair�ing the commissioner of jobs and
6 training, and the state director of vocational technical
7 education.
8 Sec. 3. Minnesota Statutes 1986, section 116L.03,
9 subdivision 1, is amended to read:
10 Subdivision 1. [MEMBERS. J The partnership shall be
11 governed by a board of �� 11 directors. �
12 Sec. 4. Minnesota Statutes 1986, section 116L.03,
13 subdivision 5, i�s amended to read:
14 Subd. 5. [TERMS. ] The terms of appointed members shall be
15 for four years except for the initial appointments. �he-initta�
16 appetntme�ta-ef-the-�peaker-aad-�a�erity-�eeder-�ha��-be-ea
17 fe��ea�---tae-n�en�ber�-fer-tMe-yeera=-tae-n�e�nber�-fer-three-yeer�
18 and-ene-n►e�ber-fer-fenr-yeera.- The initial appointments of the
19 governor shall have the following terms: two members each for
20 one, two, three, and four years.
21 Sec. 5. Minnesota Statutes 1986, section 116L.03,
22 subdivision 7, is amended to read:
23 Subd. 7. [OFFICES. ] The ee�i��tener-ef-�eba-end-training
24 higher education coordinating board sha11T-tspeR-req�e�t� provide
25 effiee-apaee-ead-��ppert staff and administrative services for
26 the board.
27 Sec. 6. [136A.134] [GRANTS TO DISLOCATED RURAL WORKERS. �
Z8 Subdivision 1. [ESTABLISHMENT OF PROGRAM. ] The higher
29 education coordinating board shall develop policies and
30 procedures to administer a dislocated rural worker grant program
31 and to allocate program money to eligible institutions and shall
32 supervise the operation of the program.
33 Subd. 2. [ELIGIBLE INSTITUTIONS. ] For purposes of this
34 section, "eligible institution" has the meaning given it in
35 section 136A.101.
36 Subd. 3. [APPLICANTS. ] An applicant may be considered for
97 �
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1 a dislocated rural worker grant if the a licant :
2 (1) is a resident of rural Minnesota;
3 (_2) is enrolled in an adult farm manaqement ro ram or a
4 program designed to provide preparation for available em lovment
5 within the local labor market or in an area to which the
6 individual is willing to relocate;
7 �3) has met the financial need criteria established bv the
8 board; and
9 ( 4) can demonstrate that one of the followin criteria has
10 been met:
11 ( i) the applicant or applicant ' s spouse has been separated
12 from employment or has received a notice of se aration from
13 employment as a result of job obsolescence, plant shutdown,
14 regional decline in the applicant 's customarv occu ation, or
15 industry slowdown, and the applicant or the a licant ' s s ouse
16 is unlikely to return to work for that em lover or in that
17 occupation within 12 months following separat-ion from em lovment;
18 ( ii) the applicant is a displaced homemaker; or
19 (_iii) the applicant or the applicant' s s ouse is a farmer
20 who can demonstrate severe household financial need.
21 Subd. 4. [PROGRAM RECIPIENTS. ] An eligible institution
22 shall select a recipient of a dislocated rural worker grant in
23 accordance with guidelines, policies, and rules established by
24 the board. The board may adopt emer encv rules for awarding .
25 grants only for the fiscal vear beginninq Julv 1, 1987 .
26 Subd. 5. [PROGRAM COORDINATION; INFORMP,TION. ] The board
27 shall develop and provide information to dislocated workers in
28 rural� areas about post-secondary education op ortunities and
29 student financial aid programs. The board shall also provide
30 for the coordination of dislocated rural worker rants with
31 other available student financial aid rograms. Dislocated
32 rural worker grants must be awarded in a manner that maximizes
33 the use of existinq federal and state student financial aid
34 programs.
35 Sec. 7. [REPEALER. ]
36 Minnesota Statutes 1986, section 116L. 03, subdivision 6, is
98
<
�/�"�7/%5�(
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S.F. No. 1
1 repealed.
2 Sec. 8. Laws 1983, chapter 334, section 7, is amended to
3 read:
4 Sec. 7. [REPEALER. ]
5 Sections �-te-6 116L.01; 116L.02; 116L.03, subdivisions 1,
6 2� 3� 4� 5� and 7� 17.6L.04; and 116L.05� 1� 2� 3� 4� 5� 3t1d 7
7 are repealed June 30, �98� 1989.
8 Sec. 9. [SUPPLEMENTAL EDUCATION GRANT PROGRAM FUNDING. ]
9 $500,000 is appropriated from the general fund to the
10 higher education coordinating board for the dislocated rural
11 worker grant rogram established in section 3, to be available
12 until June 30, 1989.
13 �51,000,000 is appropriated from the general fund to the
14 higher education coordinatinq board for the Minnesota job skills
15 partnership proqram. $500,00 is for fiscal year 1988 and
16 $500,000 is for fiscal year 1989.
� � � � � i
. 99 '
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• S. F. :�10. 1
J ome �� Hughes
Pnaident o/'the Senate.
\
Fred C. tionon
SPsa'Es►af du Xor�se ojBsA►poimave:.
Passed the Senate this 16 th daq of May in the year of Our Lord one thousand
• nine hundred and eighty-seven.
` .
. Pacrick E. Flahaven
Sernmry o/r/u Seriau.
Paased the House cf Be�reseatatives tbia 18th dap of May m the year of Our Lord
one thouasad nme hundred aad eighty-aeven.
.
ard A. Burdick
� CltiejCler�E,House of Repnsrrttanves.
APProved v� �� � 1�1
. '
Rudy P p' h
Governor o�tlu Stau of ire sota.
Fil � �
, STATE QF MINwESOTa
,�' DEPARTMENT OF STATE
'' 1 hereby, cettif�►:that this is. a
t�ue and-cctmpl�te" copy of th� Joan Anderson Growe
dowmeixt �as filed cecord in s«nr�ry ofs��.
this ��fice.�.
DA7ED: ` / 19�=,�
,�� �
Y
, .�e�t'EL82T ` at�,
_,�
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�
BY •
WHITE - C�TV CLERK
PINK - FINANG�E C I TY O F SA I NT PA U L Council
CANARV - DEPARTMENT � Flle NO. ��j�
BLUE - MAVOR
City Attny/JTH . .
cil esolution 1;
t .�" . .
Presented By
Referred To Committee: Date
Out of Committee By Date
RESOLVED, by the City Council of the City of Saint Paul,
i�ginnesota, that Chapter 386 , Article 6 , Sections 4 to 11 , Laws
of Minnesota for I987 entitled:
An Act relating to economic development;
providing a pro�ram for revitalization
of the cities of Saint Paul and Minneapolis
a certified copy to which is filed herewith, shall be and said
Act Izereby is in all things approved; and be it
F�JF'.TI3ER RES�LV,�"�, �c�iat the City Council directs the City
Cl�rk of the �ouzicil os �ciie City of Saint Paul to forth�aith
iile t�ith t��e "ecr���ar�; of State a certificate in form prescribed
b;� tn.e :'-_t�.orilc�� �:eneral stating the essential facts necessary to
^aid «��>:�rav�l of said Act hereunder and including a copy of this
::�solution of approval of said Act .
COUNCILMEN F Requested by De ent of:
Yeas Drew Nays � ���„�,,,�,-1
Nicosia ��� �
Rettman In Favor
Scheibel �
�� Against BY
Weida
Wilson A
Adopted by Council: Date HU�7 � 1 ��� Form Appr by City Att n
Certified Pas ouncil S t BY
By-
Appro y �Vlavor: Date • ~ � 4 �U� Approve y Mayor for Submission to Council
B BY
���%�:�"�.�. : _ ���5 i_
. r,�,mti �7-- r�J
'`�"' °="w- CITY OF SAENT PA L
.���
��• ��� OfFI C
�'' '' CE OF THE CITY LERK
:. .,;
_:� uwa ,'
?�' " �c� /1LBERT B. OLSON, C17Y CLERK
"'�, �... .�'
"""'"""'"'°c 386 City Hall,Saint Paul,Minnesota 55102
GEORCE LATIMER 6�2_298-4232
MAYOR
August 24� 1987
O
�
S�c::�:a�Y of S���e's Cffice /
Attention: JoAnn Silver
Room 180, State Office Building
St. Paul, Minnesota 55155
Dear Ms. Silver:
Attached for filing in the Office of Secretary of State is a Certificate
of Approval by the City of St. Paul for Article 6, Sections 4 to lI,
Chapter 386� Laws of Minnesota for 1987 as approved by Council File
87-1154, ac3opted on August 11, 1987.
Will you please time stamp a copy of this letter an�d return it to
the City Clerk's Office at 386 City Aall� St. Paul� Minnesota, 55IO2.
v r Y Yo
. J ,
� rt B. Olson
City Clerk
ABO:th
�tty`h.�,��
!�'�►ATE OF M1NN�'Q�, � ;
FI LED '
A U G 2 5 �987
�vQ��av,�er�y
Secretary of Stgt�
___�,.�..,..-,�.,..,.,�..�..,,-_.�..._ _
- ���r�-�
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' CERTIFICATE OF APPROVAL OF SPECIAL LAW �
BY GOVERNING BODY _
(Pursuant to Minnesota Statutes, 645.02 and 645.021)
STATE OF MINNESOTA
County of �eY
TO THE SECRETARY OF STATE OF MINNESOTA: �
PLEASE TAKE NOTICE, That the undersigned chief clerical officer of the
City of Saint Paul
(nazne of goveramental unit) '
DOES HEREBY CERTIFY, that in compliance with the provisions of Laws, 19 87 . �pter
38� requiring approval by a * majority vote of the governing body of said local goverameataP
unit before it becomes effective, the Citv Council
(designate goveming body) ^
at a meeting duly held on the li� day of August , lg 8_� by �olutiorc
Council File 87-1154 did approve said Laws, 19 $� , Chapter �6
(If other than resolution,sP�cify) Article 6� Section 4 to 1�.
- • by a majority vote of all of the members thereof
(Ayes 6 ; Noes � ; Absent or not voting 1 ) and the following additional steps, if any,
required by statute or charter were taken:
Resolution published in the official paper of the City
�_
A copy of the resolution is hereto annexed and made a part of this certificate by reference.
Sign��:
SEAL
City Clerk
(OfScial designation of ofPicer)
(This form prescribed by the Attorney General and fumished by
the Secretary of State as required in Minnesota Statutes 645.021)
*If extraordinary majority is required by the special law, insert fraction or percentage here.
;
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S.F. No. 1
AN ACT CHAPTER No.
38 �
�
2 relating to economic development; rural development;
3 renaming and providing powers to the agricultural
4 resource loan guaranty board; establishing a mineral
5 resources program; establishing duties for the -
6 community development division in the department of
7 energy and economic development; transferring the
8 independent wastewater treatment grant program from
9 the pollution control agency to the Minnesota-_public
10 finance authority; changing the membership of ' the
11 Minnesota job skills partnership board; establishing
12 the rural development board; establishing the
13 challenge grant program; establishing the Greater
14 Minnesota Corporation; establishing the state
15 supplemental education grant program; establishing the
� 16 Minnesota public finance authority; providing a
17 program for revitalization of the cities of St. Paul
18 and Minneapolis; creating a program for funding
19 economic development projects in the taconite tax
20 relief area; permitting investment of earnings of the
21 northeast Minnesota economic protection trust in
22 venture capital enterprises; appropriating money;
23 amending Minnesota Statutes 1986, sections 15.039, by
24 adding a subdivision; 16A.80, subdivision 2a; 41A.01;
25 41A.02, subdivisions 3, 4, 6, 11, and by adding
26 subdivisions; 41A.04, subdivision 1; 41A.05,
27 subdivisions 1 and 2; 41A. 08; 116.16, subdivisions 2,
28 4, 5, 9, and by adding subdivisions; 116 .18,
29 subdivisions 2a and 3a; 116J.36, subdivisions 2, 3b,
30 3c, 8, 8a, and 11; 116J. 37, subdivision 1, and by
31 adding a subdivision; 116J.955, subdivisions 1 and 2;
32 116L.02; 116L.03, subdivisions 1, 2, 5, and 7 ; 281. 17;
33 298. 292; 298. 296, subdivision 2; 429 .061, subdivision
34 2; 462. 445, subdivision 1; and Laws 1983, chapter 334,
35 section 7; proposing coding for new law in Minnesota
36 Statutes, chapters 41A; 93; 116; 116J; 116L; and 136A;
37 proposing coding for new law as Minnesota Statutes,
38 chapters 116N; 116P; and 446A; repealing Minnesota
39 Statutes 1986, sections 116.167; 116J.951; 116J.961;
40 116J.965; 116L.03, subdivision 6; 116M.01; 116M. 02;
41 116M. 03; 116M.04; 116M.05; 116M.06; 116M.07; 116M. 08 ;
42 116M. 09; 116M.10; 116M.11; 116M.12; 116M.13; 472. 11,
43 subdivisions 3, 5, 6, 7, 8, and 9; 472.12,
44 subdivisions 2, 3, and 4; 472.125; 472.13,
45 subdivisions 2, 3, and 4; and Laws 1969 , chapters 833
46 and 984.
1
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S.F. No. 1 �
1
2 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
3 ARTICLE 1
4 RURAL DEVELOPMENT BOARD
5 Section 1. Minnesota Statutes 1986, section 116J. 955,
6 subdivision 1, is amended to read:
7 116J. 955 [RURAL REHABILITATION REVOLVING FUND. ]
8 Subdivision 1. [ESTABLISHMENT. ] The rural rehabilitation
9 revolving fund is established as an account in the state
10 treasury. The money transferred to the state as a result of
11 liquidating the rural rehabilitation corporation trust, and
12 money derived from transfer of the trust to the state, must be
13 credited to the rural rehabilitation revolving fund. The
14 principal amount of the rural rehabilitation revolving fund;
15 $9?398;999;-n�ey-net-be-spent-ane3 must be invested by the state
16 investment board. The income attributable to investment of the
17 principal is appropriated to the commissioner for the eetieitte�
18 purposes of tke-rnra�-deve�ep�ent-ee�aet� this article,.
� 19 Sec. 2. Minnesota Statutes 1986, section 116J.955,
20 subdivision 2, is amended to read:
21 Subd. 2. [EXPENDITURE OF �i�ii3�S�M$N�P-�N@6ME FUND. ] The
22 commissioner may or��p use the-rnee�e-fren�-the-rndeat�ent-ef the
23 rural rehabilitation revolving fund for the purposes that are
24 allowed under the Minnesota rural rehabilitation corporation' s
25 charter and agreement with the United States Secretary of
26 Agriculture as provided in Public Law Number 499, 81st Congress,
27 enacted May 3, 1950 and as all.owed under aeetrere-��63,-g6�;
28 aabdidt�ien-8 this article. Not more than three percent of the
29 book value of the Minnesota rural rehabilitation corporation' s
30 assets may be used for administrative purposes in a year without
31 approval of the United States Secretary of Agriculture. The
32 commissioner mav create separate accounts within the fund for
33 use in accordance with the fund' s purposes.
34 Sec. 3 . [116N.O1J [DEFINITIONS. ]
35 Subdivision 1. [TERMS. � For the purposes of sections 3 to
36 10, the following terms have the meaning given them.
2
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' S.F. No. 1
1 Subd. 2. [BOP,RD. ] "Hoard" means the rural development
2 board.
3 Subd. 3 . [COMMISSIONER. ] "Commissioner" means the
4 commissioner of energy and economic development.
5 Subd. 4. [LOCAL GOVERNMENTAL UNIT. J "Local governmental
6 unit" means a home rule charter or statutorv city when the
7 project is located in an incorporated area, a countv when the
8 project is located in an unincorporated area, or an American
9 Indian tribal council when the project is located within a
10 federally recognized American Indian reservation or community.
11 Subd. 5. [LOW INCOME. ] "Low income" means equal to or
12 below the nonmetropolitan median household income. .
13 Subd. 6. [PRINCIPALLY. ] "Principally" means more than half.
14 Subd. 7. [REGIONAL ORGANIZATION. ] "Regional organization"
15 or "organization" means an organization selected under section
16 10, subdivision 3 .
17 Subd. 8 . [RURAL. ] "Rural" means the area of Minnesota
18 located outside of the metropolitan area as defined in section
19 473.121, subdivision 2.
20 Sec. 4. [116N.02] [RURAL DEVELOPMENT HOARD. ]
21 Subdivision 1. [MEMBERSHIP. J The rural development board �
22 consists of the commissioner of energy and economic development,
�
23 the commissioner of jobs and training, the commissioner of
24 agriculture, the president of the Greater Minnesota Corporation
25 board, the state director of vocational technical education, the
26 chancellor of the state university board, the chancellor of the
27 state board for community colleges., the president of the
28 University of Minnesota or the president ' s designee, the chair
29 of the regional advisory committee, and six members from the
30 �eneral public appointed by the governor, with at least one
31 public member from each of the regions established in section
32 10. Two of the public members must be locaY elected officials.
33 Two of the public members must be members of farm
34 organizations. One public member must represent the interests
35 of business, and one public member must represent the interests
36 of organized labor .
3
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S.F. No. 1 �
1 Subd. 2. [MEMHERSHIP TERMS. ] The membership terms,
2 compensation, removal, and filling of vacancies of public
3 members oF the board are as provided in section 15 . 0575.
4 Subd. 3. [CHAIR; OTHER OFFICERS. ] The commissioner of
5 energy and economic development shall serve as chair of the
6 board. The board may elect other officers as necessary from its
7 members.
8 Subd. 4. [ADVISORY TASK FORCES. � The board may establish
9 advisory task forces under section 15.014 to advise or assist
10 the board in identifying and working with rural development
11 issues.
12 Subd. 5. [STAFF. ] The commissioner of energy and economic
13 development shall provide staff, consultant support, materials,
14 and administrative services necessary for the board' s
15 activities. The services must include personnel, budqet,
16 payroll, and contract administration. The board mav reQuest
17 staff support from other agencies of state government as needed
18 for the execution of the responsibilities of the board, and the
19 other agencies shall furnish the staff support upon request.
20 Subd. 6. [FUND ALLOCATION. J The commissioner shall
21 allocate $6,000,000 from the rural rehabilitation revolving fund.
22 to be used for the challenge, grant program.
23 Sec. 5. [ 116N.03] [POWERS. ]
24 Subdivision 1. [CONTRP,CTS. ] The board may enter into
25 contracts and grant agreements necessary to carry out its
26 responsibilities.
27 Subd. 2. [GIFTS; GRANTS. ] The board may apply for, accept,
28 and disburse gifts, grants, loans, or other propertv from the
29 United States, the state, private foundations, or any other
30 source. It may enter into an agreement required for the qifts,
31 grants, or loans and may hold, use, and dispose of its assets in
32 accordance with the terms of the qift, grant, loan, or
33 agreement. Money received by the board under this subdivision
34 must be deposited in the state treasury. The amount deposited
35 is appropriated to the board to carry out its duties .
36 Sec. 6. [116N.04] [DUTIES. ]
4
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� S.F. No. 1
1 Subdivision 1. [GENERAL DUTIES. ] The board shall
. 2 investigate and evaluate new methods to enhance rural
3 development, particularly methods relatinq to economic
4 diversification through private enterprises, includinq
5 technologically innovative industries, value-added
6 manufacturing, agriprocessing, information industries, and
7 agricultural marketing.
8 Subd. 2. [ESTABLISH PROGRAM. ] The board shall establish a
9 rural rehabilitation pilot project program to award u to
10 $500,000 from the rural rehabilitation revolvinq fund in qrants
11 to public, nonprofit, or private organizations to sup ort
12 farm-related pilot projects for rural develo ment. Proiects
�
13 must be designed to principall_y benefit low-income ersons.
14 Subd. 3. [TECHNICAL ASSISTANCE. ] The board shall provide
15 technical assistance and rural development information services
16 to state agencies, regional aqencies, special districts, local
17 governments, and the public.
18 Subd. 4. (BUDGET. ] The board shall adopt an annual budget
19 and work program and a biennial bud et.
20 Subd. 5. [LEGISLATIVE REPORT. ] The board shall submit a
21 report to the legislature bv Januarv 31 of each vear. The
22 report must include a review of rural development in the state,
23 a review of the regional advisorv committee activities, an
24 accounting of loans made under the challenge grant program, an
25 evaluation of rural development initiatives, and recommendations
26 concerning state support for rural development .
27 Sec. 7. [116N.05 ] [REGIONAL ADVISORY COMMITTEE. J
28 Subdivision 1. [MEMBERS. ] The regional advisory committee
29 consists of one representative from each of the state' s
30 development regions. Members representing the state' s
31 development regions must be selected by a majority vote of the
32 regional development commissions. In reqions that have
33 dissolved their development commissions, members must be
34 selected by a majority vote of the chairs of the respective
35 county boards of commissioners in the reqion. Members must
36 reside within the region thev represent. The county boards of
5
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S.F. No. 1
1 commissioners and the regional development commissions selecting
2 members are encouraged to give preference to persons that hold
3 an elected office. The county boards of commissioners and the
4 regional development commissions shall give public notice of
5 vacancies on the committee and make a selection of a member from
6 applications received for the positions.
7 Subd. 2. [TERMS; COMPENSATION; OFFICERS. ) The terms,
8 compensation, and expiration of the committee and its members
9 are as provided in section 15.059 . A member may not serve more
10 than two consecutive terms. The regional advisory committee
11 shall elect a chair and may elect a vice-chair and other
12 officers as is necessary from its members.
13 Subd. 3. [DUTIES. ] (a) The regional advisory committee
14 shall:
15 (1) administer the rural rehabilitation pilot project
16 program established in section 6, including the establishment of
17 grant eligibility criteria, solicitation and review of •grant
18 applications, and determination of projects to be funded;
19 ( 2) develop priorities for state projects and activities
20 related to rural development;
21 ( 3) advise the rural development board regarding the
22 challenge grant program; and
23 ( 4) coordinate the plans and programs of the regional
24 development commissions that have an effect upon the activities
25 of the rural development board.
26 Sb) The commissioner shall make agreements or contracts to
27 distribute grant funds to projects selected by the regional
28 advisory committee.
29 Sec. 8. (116N.06] [RURAL INVESTMENT GUIDE. ]
30 The board, after appropriate study and public hearings as
31 necessary, shall adopt a comprehensive state rural investment
32 guide consisting of policy statements, objectives, standards,
33 and proqram criteria to guide state agencies in establishing and
34 implementing programs relating to rural development . The guide
35 must recognize the community and economic needs , the food and
36 agricultural policy, and the resources of rural Minnesota, and
6
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� S.F. No. 1
1 provide a plan to coordinate and allocate public and private
2 resources to the rural areas of the state. The board shall
3 submit the guide to the appropriate committees of the
4 legislature. '
5 Sec. 9. [ 116N. 07 ] [HOARD REVIEW. J
6 The board may require state agencies to submit for review .
7 any state program relating to rural development. The board mav
8 comment on the program and may recommend chanqes consistent with
9 the rural investment guide.
10 Sec. 10. [116N.08 ] [CHALLENGE GRANT PROGRAM. ]
11 Subdivision 1. [ORGANIZATION. ] The board shall make
12 challenge grants to regional organizations to encourage private
13 investment, to provide jobs for low-income persons, and to
14 promote economic development in the rural areas of the state.
15 Subd. 2. [FUNDING REGIONS. ] The board shall divide the
16 state outside of the metropolitan area as defined in section
17 473.121, subdivision 2, into six regions. A region' s boundaries
18 must be coterminous with the boundaries of one or more of the
19 development reqions established under section 462.385. The
20 board shall designate up to $1,000,000 for each region, to be
21 awarded over a period of three years. The money designated to
22 each region must be used for revolving loans authorized in this
23 section.
24 Subd. 3. [SELECTION OF ORGANIZATIONS TO RECEIVE CHALLENGE
25 GRANTS. J The board shall select at least one organization for
26 each region to receive the challenge grants and shall enter into
27 grant agreements with the organizations. An organization must
28 be a nonprofit' corporation and must demonstrate that :
29 ( 1) its board of directors includes citizens experienced in
30 rural development, representatives of the regional development
31 commissions, and representatives from all geographic areas in
32 the region;
33 ( 2) it has the technical skills to analyze projects;
34 ( 3) it is familiar with other available public and private
35 funding sources and economic development programs;
36 ( 4) it can initiate and implement economic development
7
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S.F. No. 1
1 projects; and
2 ( 5) it can establish and administer a revolving loan fund.
3 Subd. 4. [REVOLVING LOAN FUND. ] A regional organization
4 shall establish a board certified revolving loan fund to provide
5 loans to new and expanding businesses in rural Minnesota to
6 promote economic development. Eligible business enterprises
7 include technologically innovative industries, value-added
8 manufacturing, agriprocessing, information industries, and
9 agricultural marketing. Lc�an applications given preliminary
10 approval by the organization must be forwarded to the
11 commissioner for final approval. The amount of state money
12� allocated for each loan is appropriated from the rural
13 rehabilitation revolving fund established in section 116J.955 to
14 the organization' s regional revolving loan fund when the
15 commissioner gives final approval for each loan. The amount of
16 money appropriated from the rural rehabilitation revolving fund
17 may not exceed 50 percent for each loan. The amount of
18 nonpublic money must equal at least 50 percent for each loan.
19 Subd. 5. [LOAN CRITERIA. ] The following criteria apply to
20 loans made under the challenge grant program:
21 (a) Loans must be made to businesses that are not likely
22 to undertake a project for which loans are sought without
23 assistance from the challenge grant program.
24 (b) A loan must be used for a project designed principally
25 to benefit low-income persons through the creation of job
26 opportunities for them. Among loan applicants, priority must be
27 qiven on the basis of the number of permanent jobs created or
28 retained by the project and the proportion of nonstate money
29 leveraged by the revolving loan.
30 (c) The minimum loan is $5,000 and the maximum is $100 ,000 .
31 Sd) With the approval of the commissioner , a loan may be
32 used to provide up to 50 percent of the private investment
33 required to qualify for a grant from the economic recovery fund.
34 �e) A loan may not exceed 50 percent of the total cost of
35 an individual project.
36 ( f) A loan may not be used for a retail development project .
8
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� S.F. No. 1
1 (g) A business applying for a loan must be s onsored by a
2 resolution of the governing bod_v_, of the local governmental unit
3 within whose jurisdiction the ro 'ect is located.
4 Subd. 6. (REVOLVING FUND ADMINISTRATION. ] (a) The board
5 shall establish a minimum interest rate for loans to ensure that
6 necessary management costs are covered.
7 �b� Loan repayment amounts equal to one-half of the
8 principal and interest must be deposited in the rural
9 rehabilitation revolving fund for challenge grants to the re ion
10 from which the money was originallv designated. The remaining
11 amount of the loan repayment may be deposited in the rectional
12 revolving loan fund for further distribution by the regional
13 organization, consistent with the loan criteria specified in
14 subdivisions 4 and 5.
15 (c) The first $1,000 ,000 of revolvinq loans for each reqion
16 must be matched by nonstate sources. The matchinq recruirement
17 does not apply to loans made under subdivision 6, clause (b) .
18 (d) The first $1,000,000 of revolving loans for each region
19 must be matched by nonstate sources. The matching requirement
20 does not apply to loans made under subdivision 6, clause (b) .
21 (e) Administrative expenses of each organization may be
22 paid out of the interest earned on loans. '
23 Subd. 7 . [RULES. ] The board shall adopt rules to implement
24 the duties specified in this section.
25 Subd. 8. [LOCAL GOVERNMENTAL UNIT LOANS. ] A local
26 governmental unit may receive a loan under this section if the
27 local governmental unit has established a local revolving loan
28 fund and can provide at least an� ecrual match to the loan
29 received from a regional organization. The maximum loan
30 available to a local governmental unit under this section is
31 $50,000. The money loaned to a local governmental unit by a
32 regional organization must be matched by the local revolving
33 loan fund and used to provide loans to businesses to promote
34 local economic development. One-half of the money loaned to a
35 local governmental unit under this section by a regional
36 organization must be repaid to the rural rehabilitation
9 .
S.F. No. 1 '
1 revolving fund. One-half of the money mav be retained bv the
2 local governmental unit ' s revolving loan fund for further
3 distribution by the local governmental unit.
4 Subd. 9. [REGIONAL COOPERATION. J An organization that
5 receives a challenge grant shall cooperate with other reaional
6 organizations, including regional development commissions,
7 community development corporations, communitv action a encies,
8 and the Minnesota small business development centers and
9 satellites, in carrying out challenge grant proqram and
10 technical assistance responsibilities.
11 Subd. 10. (REPORTING REQUIREMENTS. j An organization that
12 receives a challenge grant shall:
13 ( 1) submit an annual report to the board bv Februarv 15 of
14 each year that includes a description of projects supported bv
15 the challenge grant program, an account of loans made during the
16 calendar year, the source and amount of money collected and
17 distributed by the challenge grant program, the program' s assets
18 and liabilities, and an explanation of administrative expenses;
19 and
20 ( 2) provide for an independent annual audit to be performed
21 in accordance with generally accepted accountinq practices and
22 auditing standards and submit a copy of each annual audit report
23 to the board.
24 Sec. �ll. [RURAL DEVELOPMENT BOARD COMPLEMENT. ]
25 The approved complement of the rural development board is
26 six and one-half positions, with six positions in the
27 unclassified service and one-half position in the classified
28 service, one of which is an executive director position.
29 Sec. 12. [FAMILY FP,RM LOANS. ]
30 The participant ' s interest in a family farm loan guarantee
31 executed before the effective date of this article may be
32 assigned to a new participant.
33 Sec. 13. [REPEALER. J
34 Minnesota Statutes 1986, sections 116J. 951; 116J.961;
35 116J.965; and 116M.05, are repealed.
36 Sec. 14. [APPROPRIATION. ]
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1 $600,000 is appropriated from the economic development fund
2 to the commissioner of enerqy and economic develo ment to
3 administer programs under the rural development board. $300 ,000
4 is for fiscal year 1988 and $300,000 is for fiscal year 1989 .
5 $200,000 is transferred from the economic develo ment fund
6 to the commissioner of energv and economic development to
7 provide grants to the regional organizations selected under
8 section 10, subdivision 3, for technical assistance to
9 businesses in each region. Technical assistance includes
10 providing information to businesses regarding federal, state,
11 and local government economic development programs.
12 $1,000,000 is transferred from the general fund to the
13 rural rehabilitation revolving fund, to be used for the
14 challenge grant program.
15 � ARTICLE 2
16 GREATER MINNESOTA CORPORP,TION
17 Section 1 . [ 1160.01] [CITATION. ]
18 Sections 1 to 10 may be cited as the "Greater Minnesota
19 Corporation act. "
20 Sec. 2. [1160.02 ] [DEFINITIONS. ]
21 Subdivision 1. [APPLICAHILITY. ] The definitions in this
22 section apply to sections 1 to 15.
23 Subd. 2. [BOARD. ] "Hoard" means the board of directors of
24 the Greater Minnesota Corporation.
25 Subd. 3. [CORPORATION. ] "Corporation" means the Greater
26 Minnesota Corporation.
27 Subd. 4. [FUND. ] "Fund" means the greater Minnesota fund.
28 Subd. 5. [GREATER MINNESOTA. ] ] "Greater Minnesota" means
29 the area of Minnesota located outside of the metropolitan area
30 as defined in section 473 . 121, subdivision 2.
31 Sec. 3. [1160.03J [CORPORATION; BOARD OF DIRECTORS;
32 POWERS. J
33 Subdivision 1. [NAME. ] The Greater Minnesota Corporation
34 is a public corporation of the state and is not subject to the
35 laws governing a state agency except as provided in this
36 chapter. The business of the corporation must be conducted
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1 under the name "Greater Minnesota Corporation. "
2 Subd. 2. [BOARD OF DIRECTORS. ] The corporation is governed
3 by a board of 11 directors. The term of a director is six years.
4 Vacancies on the board are filled by appointment of the board,
5 subject to the advice and consent of the senate. The board may
6 determine the compensation of its members.
7 Subd. 3 . [HYLAWS. ] The board of directors shall adopt
8 bylaws necessary for the conduct of the business of the
9 corporation, consistent with this chapter .
10 Subd. 4. [PLACES OF BUSINESS. ] The board shall locate and
11 maintain the corporation' s places of business within the state.
12 Subd. 5. [MEETINGS AND ACTIONS OF THE BOARD. ] The board
13 shall meet at least twice a year and may hold additional
14 meetings upon giving notice in accordance with the bylaws of the
15 corporation. Board meetings are subject to section 471 .705 ,
_ �
16 except when data described in subdivision 7 is discussed.
17 Subd. 6. [CLOSED MEETINGS; RECORDING. ] The board of
18 directors may bv a majority vote in a public meeting decide to
19 hold a closed meeting authorized under subdivision 5. The time
20 and place of the closed meeting must be announced at the public
21 meeting. A written roll of inembers present at the closed
22 meeting must be made available to the public after the closed
23 meeting. The proceedings of a closed meeting must be tape
24 recorded at the expense of the board and must be preserved by
25 the board for two years. The data on the tape is nonpublic data
26 under section 13.02, subdivision 9 . .
27 Subd. 7. [APPLICATION AND INVESTIGATIVE DATA. ] The
28 following data is classified as private data with regard to data
29 on individuals under section 13.02, subdivision 12 , or as
30 nonpublic data with regard to data not on individuals under
31 section 13 .02, subdivision 9, whichever is applicable:
32 ( 1) financial data, statistics, and information furnished
33 in connection with assistance or proposed assistance under
34 section 6, including credit reports, financial statements,
35 statements of net worth, income tax returns, either personal or
36 cor orate, and any other business and personal financial
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1 records; or
2 ( 2) security information, �rade secret information, or
3 labor relations information, as defined in section 13.37,
4 subdivision 1, disclosed to members of the corporation board or
5 employees of the cor oration under section 6.
6 Subd. 8. [CONFLICT OF INTEREST. ] A director, employee, or
7 officer of the corporation mav not participate in or vote on a
8 decision of the board relatinQ to an orQanization in which the
9 director has either a direct or indirect financial interest.
10 Subd. 9. [CONTRIBUTIONS TO PUBLIC OFFICIALS; DISCLOSURE. ]
11 Each dir•ector shall file a statement with the ethical ractices
12 board disclosina the nature, amount, date, and recipient of anv
13 contribution made to a public official, olitical committee,
14 political fund, or political partv, as defined in cha ter 10A,
15 that:
16 �_1) was made within the four vears receding appointment to
17 the Greater Minnesota board; and
18 �(2) was subject to the reportinct reQUirements of cha ter
19 10A.
20 The statement must be updated annually durinq the
21 director ' s term to reflect contributions made to public
22 officials during the appointed director ' s tenure.
23 Sec. 4. [1160.04J [CORPORATE PERSONNEL. J
24 Subdivision 1. [GENERALLY. ] The board shall appoint and
25 set the compensation for a president, who serves as chief
26 executive officer of the corporation, and who mav appoint
27 subordinate officers. The board mav designate the resident as
28 its _general agent . Subject to the control of the board, the
29 president shall emplov emplovees, consultants, and agents the
30 president considers necessarv. The staff of the corporation
31 must include individuals knowledgeable in commercial and
32 industrial financing, research and development, economic
33 development, and general fiscal affairs. The board shall define
34 the duties and designate the titles of the em loyees and agents.
35 Subd. 2. [STATUS OF EMPLOYEES. ] Employees, officers, and
36 directors of the corporation are not state em loyees, but, at
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1 the option of the board, may participate in the state retirement
2 plan and the state deferred com ensation lan for em loyees in
3 the unclassified service and an insurance lan administered by
4 the commissioner of employee relations.
5 Subd. 3 . [CONTRIBUTIONS TO PUBLIC OFFICIALS; DISCLOSURE. ]
6 The president shall file a statement with the ethical practices
7 board disclosing the nature, amount, date, and recipient of any
8 contribution made to a public official which:
9 (1) was made within the four years preceding emplovment
10 with the greater Minnesota board; and
11 ( 2) was subject to the reporting requirements of chapter
12 10A.
13 The statement must be updated annually durina the
14 president ' s employment to reflect contributions made to ublic
15 officials during the president ' s tenure.
16 Sec. 5. [1160.05] (POWERS OF THE CORPORATION. ]
17 (a) Except as otherwise provided in this article, the
18 corporation has the powers granted to a business corporation by
19 section 302A.161, subdivisions 3; 4; 5; 7; 8; 9; 11; 12; 13,
20 except that the corporation may not act as a general artner in
21 any partnership; 14; 15; 16; 17; 18; and 22.
22 (b) The state is not liable for the obligations of the
23 corporation.
24 (c) Section 302A.041 applies to this article and the
25 corporation in the same manner that it applies to business
26 corporations established under chapter 302A.
27 Sec. 6. [1160. 06] [FINANCIAL ASSISTANCE. ]
28 Subdivision 1. [FINANCIAL ASSZSTANCE; TYPES. ] The
29 corporation may provide financial assistance to sole
30 proprietorships, businesses, or for-profit or nonprofit
31 organizations. Financial assistance includes, but is not
32 limited to, loan guarantees or insurance, direct loans, and
33 interest subsidy payments. The corporation mav participate in
34 loans by purchasing from a lender up to 50 percent of each loan.
35 Subd. 2 . [EQUITY INVESTMENTS. ] The corporation may acquire
36 an interest in a product or a private business entitv, except
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1 that the corporation may not acQUire an interest in a business
2 entity engaged in a trade or industrv whose profits are directiv
3 regulated by the commissioner of commerce or the de artment of
4 public service. The corporation mav enter into 'oint venture
5 agreements with other private corporations to romote economic
6 development and job creation.
7 Subd. 3 . [GREATER MINNESOTA FINANCE AUTHORITY. J The board
8 may designate the greater Minnesota finance authoritv to provide
9 financial assistance. The authoritv, if established, consists
10 of seven members, five of whom are members of the general public
11 appointed by the board with experience in business development,
. 12 finance, banking, or venture capital. The president of the
13 corporation and one board member must be members of the
14 authority. Members of the authoritv shall serve without
15 compensation, but shall receive necessary and actual ex enses
16 while engaged in the business of the corporation.
17 Subd. 4. [STANDARDS. ] •The board may establish minimum
18 interest rates, security requirements, restrictions on the
19 amount of the corporation' s financial participation in a
20 project, and other 'financial standards the board determines
21 necessary to establish in providin financial assistance.
22 Subd. 5. [PREFERENCE. J In providing financial assistance,
23 the corporation must give preference to sole proprietorships,
24 businesses, or organizations that are starting or expanding
25 their operations in greater Minnesota.
26 Sec. 7 . [�1160. 07 ] [ON-SITE RESEARCH. ]
27 The corporation may construct, aequire, lease, own, or
28 operate one or more on-site- research facilities in Minnesota. i
i
29 Sec. 8. [1160.08] [REGIONAL RESEP,RCH INSTITUTES. j
30 Subdivision 1. [ESTABLISHMENT. ) The board may establish up
31 to four regional research institutes in greater Minnesota. Each
32 institute shall be located at or near a post-secondary education
33 institution whose primary focus is comparable to the mission of
34 the institute.
35 Subd. 2 . [PURPOSE. J The purpose of the institutes is to
36 provide applied research and development services to
,
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1 individuals, businesses, or organizations for the purposes of
2 developing the region' s economy through the utilization of the
3 region' s resources and the development of technology. Research
4 and development services may include on-site research, product
5 development grants, testing of production techniques and product
6 quality, marketing and business management assistance, and
7 feasibility studies.
8 Subd. 3 . [ INSTITUTE ADMINISTRATION; STAFF. ] The board
9 shall appoint a director to manage the operation of the
10 institute. The director may employ employees and enter into
11 contracts with post-secondary education governing boards for
12 research services of post-secondary institution staff,
13 facilities, or equipment.
14 Subd. 4. [RESEARCH CONTRACTS. ] The director of each
15 institute may enter into contracts with individuals, businesses ,
16 or organizations to provide research and development assistance
17 at institute facilities or at other sites the director
18 determines appropriate. The board shall establish the overall
19 contract guidelines. �
20 Subd. 5. [PRODUCT DEVELOPMENT GRANT$. ] The director of
21 each institute may provide product development grants to those
22 individuals, businesses, or for-profit or nonprofit
23 organizations that, without financial assistance, would not be
24 able to undertake the development of a product or
25 technology-related service. The board shall establish
26 eligibility criteria and the terms of the product development
27 grants.
28 Subd. 6 . [INSTITUTE ADVISORY BOARD. ] A regional; research
29 institute advisory board may be appointed by the board. The
30 advisory board may consist of representatives of public
31 post-secondary institutions in the area surrounding the
32 institute, business owners, and members of the general public.
33 Terms and removal of inembers must be set by the board and the
34 members of each advisory board shall serve without compensat_ion
35 but shall receive their necessary and actual expenses. The
36 purpose of the advisory board is to provide the institute
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1 director assistance in operatinq the institute, review contract
2 proposals and provide recommendations relatina to product
3 development grants.
4 Subd. 7 . [DESIGNATED RESEARCH INSTITUTE. ] The agricultural
5 utilization research institute established in section 9 is
6 designated as one of the regional research institutes authorized
7 under this section.
8 Sec. 9. [1160.09] [AGRICULTURAL UTILIZATION RESEARCH
9 INSTITUTE. ]
10 Subdivision 1. [ESTABLISHMENT. J The corporation shall
11 establish an agricultural utilization research institute �to
12 promote the establishment of new products and product uses and
13 the expansion of existing markets for the state' s aqricultural
14 commodities and products. The institute must be located near an
15 existing agricultural research facilitv in the aqricultural
16 region of the state.
17 Subd. 2. [DUTIES. ] In addition to the duties and powers
18 assigned to the institutes in section 8, the aaricultural
19 utilization research institute shall:
20 (1) identify the various market seqments characterized by
21 Minnesota' s agricultural industry, address each seament ' s
22 individual needs, and identifv development op ortunities in each
23 segment;
24 (2) develop and implement a utilization program for each
25 segment that addresses its development needs and identifies
26 techniques to meet those needs;
27 ( 3) coordinate research among the ublic and private
28 organizations and individuals specifically addressing procedures
29 to transfer new technoloav to businesses, farmers and
30 individuals; and
31 (4) provide research grants to public and private
32 educational institutions and other orqanizations that are
33 undertaking basic and applied research that would promote the
34 development of the various agricultural industries .
35 Subd. 3. [STAFF. ] The corporation shall provide staff to
36 the agricultural utilization research institute and assist in
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1 carrying out the duties of the agricultural utilization research
2 institute.
3 Subd. 4. (AGRICULTURP,L RESEARCH GRANTS. ] The institute may
4 make matching grants for agricultural product utilization
5 research to the University of Minnesota, a state university, a
6 community college, a Minnesota private college or university, an
7 area vocational technical institute, a private corporation, or a
8 person. Grants may be matched from private sources, including
9 farm commodity groups and farm organizations.
10 Subd. 5 . [ADVISORY HOARD. ] A 26-member advisory board is
11 established to identify priorities for the agricultural
12 utilization research institute. Members of the advisory board
13 are appointed by the board. The advisory board consists of:
14 the chair of the Minnesota house of representatives agricultural
15 committee; the chair of the Minnesota senate agricultural
16 committee; a representative from each of the 10 largest
17 agricultural-related businesses in the state as determined by
18 the corporation; a member from each of the appropriate trade
19 organizations representing producers of beef cattle, dairy,
20 corn, soybeans, pork, wheat, turkey, barley, wild rice, edible
21 beans, eggs, and potatoes; a member of the Farmers ' s Union; and
22 a member of the Farm Hureau. Terms and removal of inembers must
23 be set by the board and members of the advisory board serve
24 without compensation but shall receive their necessary and
25 actual expenses.
26 The advisory board shall annually provide a list of
27 priorities and suggested research and marketing studies that
28 should be performed by the agricultural utilization research
29 institute.
30 Sec. 10 . [1160. 1OJ [RESEP,RCH ADVISORY BOARD. ]
31 Subdivision 1. [ESTABLISHMENT. J The board shall establish
32 a research advisory board to provide advisory assistance to the
33 board and the research institutes. The research advisory board
34 consists of seven members appointed by the board. Terms and
35 removal of inembers must be set by the board and research
36 advisory board members shall serve without compensation but
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1 shall receive their necessarv and actual expenses while enqaged
2 in the business of the corporation. The membershi of the
3 advisory board must have representatives that are experienced or
4 have expertise in technologv, applied research, aqriculture,
5 business, labor, or productivitv.
6 Subd. 2. [DUTIES. ] The research advisory board has the
7 following duties and responsibilities:
8 (a) Identify specific areas where research and develo ment
9 will contribute to the productivity of the state' s businesses
10 and farms.
11 (b) Determine specific areas where financial assistance for
12 research and developmen� could assist the development of
13 businesses and create new employment opportunities .
14 (c) Advise the board in the development and establishment
15 of the regional research institutes and the research grants to
16 public and private post-secondary education institutions.
17 (d) Advise pubTic and private post-secondary education
18 institutions on the research and development needs of businesses
19 in Minnesota. �
20 (e) Review the �applications and make recommendations to the
21 board for research grants to public and private post-secondary
22 education institutions.
23 (f) Develop guidelines for an effective peer review process
24 for evaluating scientifically- or technologicallQ-related
25 financial assistance.
26 Sec. 11. �1160.11) [RESEARCH GRANTS TO EDUCATION UNITS. �
27 Subdivision 1. [GRANTS GENERALLY. J The board may make
28 matching� grants to public and private post-secondary education
29 institutions or units within those institutions, including the
30 natural resource research institute, for applied research and
31 development. Grants are to be made for projects which will
32 likely result in assisting economic and employment development
33 in greater Minnesota. The corporation board shall not give
34 final approval to a research grant until it has received an
35 evaluation and recommendation from the research advisory board
36 established in section 10.
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1 Sec. 12. [1160.12 ] [GREATER MINNESOTA FUND. J
2 (a) The greater Minnesota fund is created in the state
3 treasury. The board may require the commissioner of finance to
4 create separate accounts within the fund for use in accordance
5 with the fund' s purposes. Money in the fund not needed for the
6 immediate purposes of the corporation may be invested bv the
7 corporation in any way authorized by section 11A. 24. Money in
8 the fund is appropriated to the corporation to be used as
9 provided in this chapter.
10 (b) The fund consists of:
11 ( 1) money appropriated and transferred from other state
12 funds;
13 ( 2) fees and charges collected by the corporation;
14 ( 3) income from investments and purchases;
15 ( 4) revenue from loans, rentals, royalties, dividends, and
16 other proceeds collected in connection with lawful corporate
17 purposes; and
18 ( 5) gifts, donations, and bequests made to the corporation.
19 Sec. 13. [1160.13 ] [AGRICULTURAL PROJECT UTILIZATION
20 FUND. ]
21 The agricultural project utilization fund is a fund in the
22 state treasury. Money in the fund is appropriated to the
23 agricultural utilization research institute to be used for
24 agricultural research grants as provided in section 9,
25 subdivision 4, and for the agricultural utilization research
26 institute. �
27 Sec. 14. [1160.14] [AUDITS. ]
� 28 The corporation board shall contract with a certified
29 public accounting firm to do a financial and compliance audit of
30 the corporation and any subsidiary annually in accordance with
31 generally accepted accounting standards.
32 The books and records of the corporation and any
33 subsidiary, fund, or entity to be administered or governed by
34 the corporation are subject to audit without previous notice by
35 the legislative auditor .
36 Sec. 15 . ( 1160.15J [REPORTS. ]
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1 The board shall report to the appropriate committees of the
2 legislature and the governor on the activities of the
3 corporation by January 1 of each year . The re ort must include,
4 at least, a description of projects supported bv the
5 corporation, an account of all grants made bv the corporation
6 during the calendar year, the source and amount of all monev
7 collected and distributed by the corporation, the corporation' s
8 assets and liabilities, an explanation of administrative
9 expenses, and any amendments to the operational lan. Reports
10 must be made to the legislature as required by section 3 .195.
11 Sec. 16. [REGISTERED NAME. ]
12 Notwithstanding Minnesota Statutes, section 302A.117, the
13 secretary of state shall register the name "Greater Minnesota
14 Corporation" on behalf of the corporation.
15 Sec. 17. (INITIAL APPOINTMENTS. ]
16 Notwithstanding section 3, subdivision 2, the governor
17 shall appoint the initial members of the board of directors of
18 the Greater Minnesota Corporation, subject to the advice and
19 consent of the senate, as follows: four to� six-year terms, four
20 to four-year terms, and three to two-year terms. As the terms
21 of the initial appointments expire, appointments must be made by
22 the board, subject to the advice and consent of the senate.
23 Sec. 18. [NATURAL RESOURSES RESEARCH INSTITUTE. ]
24 The Greater Minnesota Corporation board and the University
25 of Minnesota board of regents may examine the feasibility of
26 entering into a formal agreement for joint administration or
27 transfer of the natural resources research institute from the
28 University to the corporation. The corporation and board of
29 regents shall report to the governor and legislative by January
30 15, 1988. The report must include recommendations for the
31 structure for administrating the institution, the potential use
32 of university staff and facilities, funding sources and whether
33 the institute should be transferred to the Greater Minnesota
34 Corporation. The corporation may not establish a regional
35 institute whose research focus is comparable to the present
36 research undertaken at the natural resources research institute.
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1 Sec. 19 . [VENTURE CAPITAL STUDY. ]
2 The Greater Minnesota Corporation shall study the effect
3 and the possible administrative and legal structure of the •
4 establishment of a for-profit venture capital corporation. This
5 venture capital corporation may be capitalized by a state
6 appropriation that in turn may be converted into shares of stock
7 owned by every resident of the state. This corporation would
8 invest only in Minnesota companies or production facilities
9 located in the state with a preference to ventures that utilize
10 the state' s resources and intermediate products and services.
11 The venture capital corporation would invest in local capital
12 venture pools that are managed by experienced private venture
. 13 capital firms and this corporation would only provide investment
14 capital for product development and start-up business
15 development. The venture capital corporation would target its
16 investment capital to products and businesses that reduce costs
17 to the state's residents and government jurisdictions such as
18 products that improve resource efficiency or products that
19 improve the independence of the physically disabled.
20 The study may be completed directly by the Greater
21 Minnesota Corporation or the corporation may contract with a
22 business, state agency, organization, or individual to complete
23 the study. The study must include the examination of at least
24 the following:
25 S1) the anticipated demand for venture capital that meets
26 the investment criteria of the venture capital corporation;
27 ( 2) an estimation of the start-up costs of the venture
28 capital corporation;
29 ( 3) an estimation of on-going administrative costs of the
30 venture capital corporation including shareholder-related costs;
31 ( 4) the most appropriate legal structure for the venture
32 capital corporation including recommendations for the enabling
33 legislation for the corporation;
34 ( 5) an estimation of the potential additional investment
35 through stock purchases by Minnesota residents;
36 ( 6) an inventory of experienced and interested local
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1 venture capital firms that the corporation would utilize in
2 distributing its venture capital�; and
3 (7) an analysis of the type of products that meet the
4 investment criteria of the venture capital cor oration.
5 The Greater Minnesota Corporation shall submit the study to
6 the legislature and the governor by July 1, 1988.
7 Sec. 20. (DISSOLUTION. ]
8 In the event of dissolution of the Greater Minnesota
9 Corporation for any reason, the state of Minnesota, upon action
10 by the governor, and after consultation with the legislative
11 advisory commission, may require the liquidation of all holdinqs
12 and investments and the return of the proceeds of that
13 liquidation and any wholly-owned assets of the corporation to
14 the state, in exchange for the assumption of all outstandin
15 obligations of the corporation.
16 If the corporation is dissolved, or certain of its
17 functions transferred to another entitv, the assets and
18 liabi�lities and propertv associated with the dissolved or
19 transferred functions must return to the state or to the entitv
20 designated by law.
21 Sec. 21. [OPERATIONAL PLAN. j
22 The board of directors of the Greater Minnesota Corporation
23 shall prepare a comprehensive o erational lan and submit the
24 plan to the governor and the legislature by November 15, 1987 .
25 The operational plan must at least include operating procedures,
26 accounting procedures, ctrant procedures, loan procedures,
27 personnel procedures, investment procedures, and board conduct
28 and �thics.
29 If the board proposes to make eauity investments under
30 section 6, subdivision 2, the board shall explain in the report
31 how the investments will be made, how much monev will be
32 invested in them, how much private monev is expected to be
33 invested in the same investments, and whv equitv investments
34 would be more desirable and effective than the other means of
35 promoting development that are available to the board. No
36 e�uity investments may be made unless the board has first
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1 submitted the information required by this section.
2 In addition, the operational plan must include a budget
3 proposal and a five-year strategic plan setting out its
4 objectives and qeneral strategy for achieving the objectives.
5 It must identify sources and amounts of available
6 nongovernmental money and the purposes for which the money may
7 be used.
8 Sec. 22. [LOAN PROGRAMS TERMINATED; ADMINISTRP,TION; CREDIT
9 OF REPAYMENTS. �
10 The following loan programs administered by the Minnesota
11 energy and economic development authority are terminated: the
12 special assistance program under section 116M.07, subdivision
13 11, except for the small business development loans; the
14 technology product loan program; the tourism loan program
15 created under section 116M. 07; the energy loan insurance program
16 under section 116M.11; the energy development fund program under
17 section 116M.12; and the Minnesota fund program under sections
18 472.11 to 472.13 . Loan repayments, earnings, releases from
19 insurance reserve accounts, and other income from these programs
20 must be paid to the commissioner of energy and economic
21 development, who shall deposit them in the state treasury and
22 credit them to the greater Minnesota fund.
23 Sec. 23. [LOAN PROGRAM ADMINiSTRP,TION. ]
24 Subdivision 1. [POWERS. ] To administer the loan programs
25 transferred to the department of energy and economic development
26 by section 22, the commissioner of energy and economic
27 development has the powers in this section.
28 Subd. 2. [PERSONAL PROPERTY. J The commissioner may
29 acquire, hold, and dispose of personal property where necessary
30 or appropriate to protect a loan in which the department has an
31 interest.
32 Subd. 3. [REAL PROPERTY. ] The commissioner may acquire
33 real property, or an interest in real property, in the
34 department ' s name, by purchase or foreclosure, where the
35 acquisition is necessary or appropriate to protect a loan in
36 which the department has an interest and may sell, transfer , and
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1 convey the property to a buyer and, in the event the sale,
2 transfer , or conveyance cannot be effected with reasonable
3 �romptness or at a reasonable price, may lease the propertv to a
4 tenant.
. 5 Subd. 4. [ INSURP,NCE. ] The commissioner may procure
6 insurance against a loss in connection with the department ' s
7 property in the amounts, and from the insurers, as may be
8 necessary or desirable.
9 Subd. 5. [LOAN TERMS; MODIFICATION. ] The commissioner may
10 consent, whenever it is considered necessary or desirable to
11 increase the probability that the loan will be repaid, to the
12 modification of the rate of interest, time of payment, or
13 installment of principal or interest, or other term, of a
14 contract or agreement to which the department is a party.
15 Subd. 6. [FINANCIAL INFORMATION. ] Financial information,
16 including credit reports, financial statements, and net worth
17 calculations, received or prepared by the department regarding a
18 department loan, financial assistance, or insurance is private
19 data with r@gard to data on individuals as defined in section
20 13.02, subdivision 12 and nonpublic data with regard to data not
21 on individuals as defined in section 13.02, subdivision 9 .
22 Subd. 7. [ROYALTY PAYMENTS. � The department may receive
23 payments in the form of royalties, dividends, or other proceeds
24 in connection with technology-related products, energy
25 conservation products, or other equipment which it has purchased
26 or in which it has participated.
27 Sec. 24. [REPEALER. J
28 Minnesota Statutes 1986, sections 116M.11�; 116M.12; 472.11,
29 subdivisions 3, 5, 6, 7, 8, and 9 ; 472.12, subdivisions 2, 3,
30 and 4; 472.125; and 472.13 , subdivisions 2, 3, and 4, are
31 repealed.
32 Sec. 25. [APPROPRIATION. ]
33 $6,500,000 is appropriated from the general fund for
34 transfer to the greater Minnesota fund, to be available until
35 expended. $3,500,000 is appropriated from the rural
36 rehabilitation revolving fund for transfer to the agricultural•
25
S.F. No. 1 "
1 product utilization fund, to be available until expended.
2 Sec. 26. [EFFECTIVE DATE. ]
3 This article is effective the day following final
4 enactment, except that sections 19 to 22 are effective July 1,
5 1987; and section 6, subdivisions 1 to 3, are effective July 1,
6 1988.
7 P,RTICLE 3
8 MINNESOTA PUHLIC FACILITIES AUTHORITY
9 Section 1. Minnesota Statutes 1986, section 116.16,
10 subdivision 2, is amended to read:
11 Subd. 2. (DEFINITIONS. ] In this section and sections
12 116.17 and 116 .18:
13 (1) Agency means the Minnesota pollution control. agency
14 created by this chapter;
15 (2) Municipality means any county, city, and town, the
16 metropolitan waste control commission established in chapter 473
17 and the metropolitan council when acting under the provisions of
18 that chapter or an Indian tribe or an authorized Indian tribal
19 organization, and any other governmental subdivision of the
20 s�ate responsible by law for the prevention, control, and
21 abatement of water pollution in any area of the state;
22 (3) Pollution control fund means the Minnesota state water
23 pollution control fund created by subdivision 1;
24 ( 4) Bond account means the Minnesota state water pollution
25 control bond account created in the state bond fund by section
26 116.17, subdivision 4;
27 ( 5) Terms defined in section 115.01 have the meanings
28 therein given them; I
29 (6) The eligible cost of any municipal project, except as
30 otherwise provided in clauses (7) and (8) , includes (a)
31 preliminary planning to determine the economic, engineering, and
32 environmental feasibility of the project; (b) engineering, �
33 architectural, legal, fiscal, economic, sociological, project
34 administrative costs of the agency and the municipality, and
35 other investigations and studies; (c) surveys, designs, plans,
36 working drawings, specifications, procedures, and other actions
26
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' S.F. No. 1
1 necessary to the planning, design, and construction of the
2 project; (d) erection, building, acquisition, alteration,
3 remodeling, improvement, and extension of disposal systems; (e)
4 inspection and supervision of construction; and (f) all other
5 expenses of the kinds enumerated in section 475.65.
6 (7) For state independent grant and matching grant purposes
7 hereunder, the eligible cost for grant applicants shall be the
8 eligible cost as determined by the United States environmental
9 protection agency under the Federal Water Pollution Control Act,
10 a�-e�er�ded= United States Code, title 33, aeetien-�3��T-et-aeq
11 sections 1281 to 1299. �
12 (8) Notwithstanding clause (7) , for state grants under the
13 state independent grants program, the eligible cost includes the
14 acquisition of land for stabilization ponds, the construction of
15 collector sewers for totally unsewered statutory and home rule
16 charter cities and towns described under section 368.01,
17 subdivision 1 or la, that are in existence on January 1, 1985,
18 and the provision of reserve capacity sufficient to serve the
19 reasonable needs of the municipality for 20 years in the case of
20 treatment works and 40 years in the case of sewer, systems.
21 Notwithstanding clause (7) , for state grants under the state
22 independent grants program, the eligible cost does not include
23 the provision of service to seasonal homes, or cost increases
24 from contingencies that exceed three percent of as-bid costs or
25 cost increases from unanticipated site conditions that exceed an
26 additional two percent of as-bid costs.
27 (9) Authority means the Minnesota public facilities
28 authority established in section 20 .
29 Sec. 2. Minnesota Statutes 1986, section 116.16,
30 subdivision 4, is amended to read:
31 Subd. 4. [DISBURSEMENTS. ] Disbursements from the fund
32 shall be made by the state treasurer upon order of the
33 commissioner of finance at the times and in the amounts
34 requested by the agency or the Minnesota public facilities
35 authority in accordance with the applicable state and federal
36 law governing such disbursements; except that no appropriation
27
S.F. No. 1 '
1 or loan of state funds for any project shall be disbursed to any
2 municipality until and unless the agency has by resolution
3 determined the total estimated cost of the project, and
4 ascertained that financing of the project is assured by:
5 (1) A grant to the municipality by an agency of the federal
6 government within the amount of funds then appropriated to that
7 agency and allocated by it to projects within the state; or
8 ( 2) A grant of funds appropriated by state law; or
9 (3) A loan authorized by state law; or
10 (4) The appropriation of proceeds of bonds or other funds
11 of the municipality to a fund for the construction of the
12 project; or
13 ( 5) Any or all of the means referred to in paragraphs ( 1)
14 to ( 4) ; and
15 (6) An irrevocable undertaking, by resolution of the
16 governing body of the municipality, to use all funds so made
17 available exclusively for the construction of the project, and
18 to pay any additional amount by which the cost of the project
19 exceeds the estimate, by the appropriation to the construction
20 fund of additional municipal funds or the proceeds of additional
21 bonds to be issued by the municipality; and
22 ('7) Conformity of the project and of the loan or grant
23 application with the state water pollution control plan as
24 certified to the federal government and with all other
25 conditions under applicable state and federal law for a grant of
26 state or federal funds of the nature and in the amount involved.
27 Sec. 3. Minnesota Statutes 1986, section 116 .16,
28 subdivision 5, is amended to read:
29 � Subd. 5. [RULES. ] (a) The agency shall promulgate
30 permanent rules and may promulgate emergency rules for the
31 administration of grants and loans authorized to be made from
32 the fund or from federal funds under the Federal Water Pollution
33 Control Act, aa-a�ended= which rules, however, shall not be
34 applicable to the issuance of bonds by the commissioner of
35 finance as provided in section 116. 17. The rules shall contain
36 as a minimum:
28
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� S.F. No. 1
1 (1) procedures for application by municipalities;
2 ( 2) conditions for the� administration of the grant or loan;
3 ( 3) criteria for the ranking of projects in order of
4 priority for grants or loans, based on factors including the
5 extent and nature of pollution, technological feasibility,
6 assurance of proper operation, maintenance and replacement, and
7 participation in multimunicipal systems; and
8 ( 4) such other matters as the agency and the director find
9 necessary to the proper administration of the grant program.
10 (b) Except as otherwise provided in sections 116.16 to
11 116.18, the rules for the administration of state independent
12 grants must comply, to the extent practicable, with provisions
13 relating directly to protection of the environment contained in
14 the Federal Water Pollution Control Act, as amended, and
15 regulations and guidelines of the United States environmental
16 protection agency promulgated under the act, except provisions
17 regarding allocation contained in section 205 of the act and
18 regulations and guidelines promulgated under section 205 of the
19 act. This provision does not require approval from federal
20 agencies for the issuance of grants or for the construction of
21 projects under the state independent qrants program. �
22 (c) For purposes of awarding independent state grants, the
23 agency may by rule waive the federal 20-vear planning
24 requirement for municipalities with a population of less than
25 1,500.
26 Sec. 4. Minnesota Statutes 1986, section 116.16,
27 subdivision 9, is amended to read:
28 Subd. 9. [APPLICATIONS. � Applications by municipalities
29 for grants or loans from the fund shall be made to the direeter
30 ef-the-ageney authority on forms requiring information
31 prescribed by rules of the agency. The authority shall send the
32 application to the agency within ten days of receipt. The
33 director shall certify to the ege�ep authority those
34 applications which appear to meet the criteria set forth in
35 sections 116.16 to 116. 18 and the rules promulgated hereunder,
36 and the ager�ey authority shall award the grants or loans on the
29
S.F. No. 1 �
1 basis of the criteria and priorities established by the agency
2 in its rules and in sections 116. 16 to 116.18. A municipality
3 that is designated under agency rules to receive state or
4 federal funding for a project and that does not make a timely
5 application for or that refuses the funding is not eligible for
6 either state or federal funding for that project in that fiscal
7 year or the subsequent year.
8 Sec. 5. Minnesota Statutes 1986, section 116.16, is
9 amended by adding a subdivision to read:
10 Subd. 11. [AWARDS OF GRANTS AND LOANS. j Upon certification
11 by the director of the pollution control agency, the authority
12 shall notify a municipality that is to receive a grant or loan
13 and advise the municipality of the grant aqreement or loan form
14 or other document that must be executed to complete the grant or
15 loan. Upon certification from the director that the work has
16 been completed and that payment is proper, the authority shall
17 pay to the municipality the periodic grant or loan payment.
18 Sec. 6. Minnesota Statutes 1986, section 116.16, is
19 amended by adding a subdivision to read:
20 Subd. 12. [AMENDMENTS. ] A municipality that seeks an
21 amendment to a previously awarded grant or loan shall follow the
22 procedure in subdivision 9 for applying to the authority. The
23 request for a grant or loan amendment must be forwarded by the
24 authority to the director of the pollution control agency for
25 consideration, and the authority shall process a grant or loan
26 amendment that is approved by the director.
27 Sec. 7. Minnesota Statutes 1986, section 116.18,
28 subdivision 2a, is amended to read:
29 Subd. 2a. [STATE MATCHING GRANTS PROGRAM BEGINNING OCTOBER
30 1, �984 1987. ] For projects tendered, on or after October
31 1, �984 1987, a grant of federal money under section 201(g) ,
32 section 202, 203, or 206( f) of the Federal Water Pollution
33 Control Act, as amended, United States Code, title 33, sections
34 1251 to 1376, at 55 percent or more of the eligible cost for
35 construction of the treatment works, state money appropriated
36 under subdivision l must be expended for �p-to-36 50 percent of
30
� ������y
' S.F. No. 1
1 the nonfederal share of the eligible cost of construction for
2 municipalities fer-al�iek-tke-eert�trtsettes�-aet��a-etkeratae-impeae
3 �igntfteant-fis�eaeia�-keerdahtp;-previded;-thet-net-�ea�-thar�-te�
4 pereer�t-ef-the-e�rgib�e-eeat-n��at-be-patd-by-the-n�anietpe�itp-er
5 ager�ey-een�trnetsng-the-pre?eet.---�f-Q-��nieipe�itp-ta-tendered
6 federa�-and-atete-granta-ia-Q-pereentege-e��ts�atsae�y-exeeedtrcg
7 96-pereent-ef-the-e�rgsb�e-ee�t-ef-eenstrrsetter�;-tke-�tate
g pe�}�tien-eentre�-agenep-ai�e��-redesee-the-gre�t-te-tke
9 n�a�ieipet�itp-�nder-thra-ekapter-te-the-exte�t-r�eeeaaarp-te
10 en�nre-thet-net-�e�a-tha�-tea-pereent-ef-the-e�igib�e-eeat-ai}}
11 be-paid-by-the-�nnteipa�rty.---�Pke-e�ec�nta-ef-the-�atehtng-granta
12 n�ts�t-be-baae8-en-per-eenneetien-eapita�-ee�t=-�edian-he�aehe�d
13 inee�e=-and-per-eapita-ad?�eated-eaaeaaed-ea��etien with
14 populations of 25,000 or less.
15 Sec. 8. Minnesota Statutes 1986, section 116.18,
16 subdivision 3a, is amended to read:
17 Subd. 3a. [STATE INDEPENDENT GRANTS PROGRAM. j (a) The
18 ageney Minnesota public facilities authoritv may award
19 independent grants for projects certified by the state pollution
20 control director for 50 percent or, if the agercey-reqairea
21 edeeeeed-treatn�entT-65 Qopulation of the municipalitv is 25,000
22 or less, 80 percent of the eligible cost of construction. �Pi�e
23 agenep-�ay-aaard-tndeper�derct-grer�ta-fer-np-te-an-additiene�-39
24 pereent-erT-tf-the-ageney-reqrsire�-addar�eed-treQtn�entT-esp-te-an
25 additiena�-�5-pereent-ef-the-e�igib�e-eeat-ef-een�tr�etren-te
26 n��r�ierpa�tttea-fer-akreh-the-een�trtsetien-Men�d-etheraiae-r�peae
27 �ignifteant-fir�anete�-hnrdahtp;-the-e�e�nta-ef-the-addstteaa�
28 grenta-�ha��-be-baaed-en-per-eenneetien-eapite�-eoat?-�edterc
29 kersaehe�a-=nee�e=-ead-per-eapita-ad�n�ted-aa�e�aed-de�esetten.-
30 These grants may be awarded in separate steps for planning and
31 design in addition to actual construction. Until December 31,
32 1990, not more than 20 percent of the total amount of grants
33 awarded under this subdivision in any single fiscal year may be
34 awarded to a single grantee.
35 (b) Up to ten percent of the money to be awarded as grants
36 under this subdivision in any single fiscal year shall be set
31
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1 aside for municipalities having substantial economic development
2 projects that cannot come to fruition without municipal
3 wastewater treatment improvements. The agency shall forward its
4 municipal needs list to the eenu�taateRer-ef-energp-nad-eeoRe�te
5 de�e�ep�ent authority at the beginning of each fiscal year, and
6 the eo�unisarener authority shall review the list and identify
7 those municipalities having substantial economic development
8 projects. After the first 90 percent of the total available
9 money is allocated to municipalities in accordance with agency
10 priorities, the set-aside shall be used by the agenep authority
11 to award grants to remaining municipalities that have been
12 identified.
13 (c) Grants may also be awarded under this subdivision to
14 reimburse municipalities willing to proceed with projects and be
15 reimbursed in a subsequent year conditioned upon appropriation
16 of sufficient money under subdivision 1 for that year . �he
17 �axt���-n�e��t-ef-the-rei�b�rae�e�t-the-age�ey-�ay-eentntit-tn-any
18 aing�e-ft�ea�-pear-r�-eq�e�-te-tke-a�e�nt-nea�y-eppreprtated-te
19 the-atate-grant�-pregra��-for-that-yeer.-
20 (d) A municipality that applies for a state independent
21 grant to be reimbursed for a project must receive an additional
22 five percent of the total eligible cost of construction beyond
23 the normal percentage to which the municipality is entitled
24 under paragraph (a) .
25 Sec. 9. [STATE INDEPENDENT GRANTS PROGRAM. ]
26 Sa) The state pollution control agency may award
27 independent grants for projects for 50 percent or, if the
28 population of the municipality is 25,000 or less, 80 percent of
29 the eligible cost of construction. These grants may be awarded
30 in separate steps for planning and design in addition to actual
31 construction. Until December 31, 1990, not more than 20 percent
32 of the total amount of grants awarded under this section in a
33 fiscal year may be awarded to a single qrantee.
34 (b) Up to ten percent of the money to be awarded as grants
35 under this section in a fiscal year must be set aside for
36 municipalities having substantial economic development projects
32
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- S.F. No. 1
1 that cannot come to fruition without munici al wastewater
2 treatment improvements. The agency shall forward its municipal
3 needs list to the authority at the beginning of each fiscal
4 year, and the authority shal� review the list and identifv those
5 municipalities having substantial economic develo ment rojects.
6 After the first 90 percent of the total available money is
7 allocated to municipalities in accordance with agencv
8 priorities, the set-aside must be used by the authority to award
9 grants to remaining municipalities that have been identified.
10 (c) Grants may also be awarded under this section to
11 reimburse municipalities willing to proceed with projects and be
12 reimbursed in a subsequent year conditioned upon appropriation
13 of sufficient money under Minnesota Statutes, section 116. 18,
14 subdivision 1, for that year.
15 (d) A municipality that applies for a state independent
16 grant to be reimbursed for a project must receive an additional
17 five percent of the total eligible cost of construction beyond
18 the normal percentage to which the municipality is entitled
19 under paragraph (a) .
20 Sec. I0. Minnesota Statutes 1986, section 116J.36,
21 subdivision 2, is amended to read:
22 Subd. 2. [DEFINITIONS. ] In this section:
23 (a) "Authority" means the Minnesota public facilities
24 authority.
25 � "Construction costs" means all costs associated with
26 the construction, modification or expansion of a district
27 heating system except for preliminary planning costs and
. 28 detailed design costs. Construction costs include the cost of
29 debt service from the time a construction loan is made until
30 five years after the begiRning of the operation of the district
31 heating system constructed or the part of the system being
32 modified or expanded.
33 fb� � "District heating" means the use of a central
34 energy conversion facility to produce hot water or steam for a
35 district heating system. District heating facilities may also
36 produce electricity in addition to hot water or steam.
33
S.F. No. 1 �
1 fe} � "Municipality" means any county, home rule charter
2 or statutory city, town, school district or a municipal power
3 agency formed pursuant to sections 453. 53 to 453 .62 . �
4 Municipality also means a public utility, as defined in section
5 452.01, subdivision 3, owned and operated by a city, however
6 organized. For purposes of a district heating system only,
,
7 municipality also means a nonprofit corporation organized
8 pursuant to the provisions of chapter 317 whose membership is
9 limited to the mayor and governing body of the city in which the
10 district heating system is located.
11 fd� � "District heating system" means any existing or
12 proposed facility for (1) the production, through cogeneration
13 or otherwise, of hot water or steam to be used for district
14 heating, or ( 2) the transmission and distribution of hot water
15 or steam for district heating either directly to heating
16 consumers or to another facility or facilities for transmission
17 and distribution, or ( 3) any part or �combination of the
18 foregoing facilities.
19 fe} � "Qualified energy improvement" means a
20 cost-effective capital improvement to public land, buildings, or
21 energy using systems, other than a district heating system,
22 . including the purchase or installation of equipment to reduce
23 the usage of conventional energy sources or to use alternative
24 energy resources. Qualified energy improvements also include
25 waste-to-energy facilities that meet the criteria specified in
26 subdivision 8a and any rule adopted under that subdivision.
27 Qualified energy improvements shall meet all environmental and
28 permitting stan�ards established by state and federal law.
29 Sec. 11 . Minnesota Statutes 1986, section 116J. 36,
30 subdivision 3b, is amended to read:
31 Subd. 3b. (GRANT ELIGIBILITY, DISTRICT HEATING. ] The
32 eenu�i��iener-ef-energp-aad-eeene�ie-dede�opment authority may
33 provide district heating system planning grants to
34 municipalities fer-p�annt�g-re�ated-te-the-dede�ep�ent-ef
35 8s�triet-heQttng-ayate�a certified by the director of public
36 service as eligible to receive planning grants. The
34
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S.F. No. 1
1 municipality must demonstrate that a community heatload survey
2 and map have been successfully completed, that potential
3 district heating load is sufficiently large to justify further
4 consideration, and that sufficient resources are available for
5 the municipality to meet its financial requirements. Eligible
6 planning grant costs include project definition, development of
7 preliminary financing and distribution system plans, and
8 obtaining commitment for detailed planning or design and
9 preparation of a final report. The amount of the grant to a
10 municipality is limited to 90 percent of eligible planning costs
11 and shall not exceed $70,000 as established by rule or emergency
12 rule.
13 Sec. 12. Minnesota Statutes 1986, section 116J. 36,
14 subdivision 3c, is amended to read:
15 Subd. 3c. [GRANT EL�GIBILITY, QUALIFIED ENERGY
16 IMPROVEMENTS. ] The eenutti��iener-ef-energy-and-eeeRe�ie
17 dede�ep�er�t authority may provide qualified energy improvement
18 planning grants to municipalities fer-p�aaatng-re�ated-te-the
19 deve�ep�ent-ef-q�a�ified-es�ergy-t�prede�ent� certified by the
20 director of public service as eligible to receive planning
21 rg ants. The municipality must demonstrate that sufficient
22 resources are available for the municipality to meet its
23 financial requirements. Eligible planning grant costs include
24 definition of the improvement, development of preliminary
25 financing plans, and obtaining conunitment for detailed planning
26 or design and preparation of a final repart. The amount of a
27 grant to a municipality is limited to 90 percent of eligible
28 planning costs and must not exceed �$100,000 as established by
29 rule or emergency rule.
30 Sec. 13. Minnesota Statutes 1986, section 116J. 36,
31 subdivision 8, is amended to read:
32 Subd. 8. [LOAN APPROVAL. ] The ee�iaaioner-ef-er�ergy-a�d
33 eeene�se-dede�ep�ent director of public service shall prepare
34 and submit to the energp-and-eeeno�te-detie�epmer�t authority
35 separate priority lists of loan requests for district heating
36 systems and qualified energy improvements. The pri`_ ority list
35
S.F. No. 1 �
1 for district heating loans ahe��-eentat�-the-��pperttng
2 infer�atie�-req�tred-by must be based on the requirements under
3 subdivisions 3, 4, 5, 6, and 7 . The priority list for qualified
4 energy improvements aha��-eentain-the-s�ppertrng-tafer�atien
5 reqasred-by must be based on the requirements under subdivisions
6 3a, 3c, 4a, 5, and 6. �ke-reee�utteadatten-ef-tke-a�therttp-ahe}}
7 be-trana�rtted-te-the-eo�ia�te�er-ef-fi�anee.- The commissioner
8 of finance shall sell bonds and the authority shall make loans
9 for district heating projects and qualified energy improvements
10 only upon the recommendation of the a�thertty director of public
11 service.
12 Sec. 14. Minnesota Statutes 1986, section 116J. 36,
13 subdivision 8a, is amended to read:
14 Subd. 8a. [CRITERIA FOR QUALIFIED ENERGY IMPROVEMENTS. ]
15 Qualified energy improvements eligible for loans must meet
16 criteria established in rule by the ee�iaare�er-ef-energy-and
17 eeeno�ie-dede�ep�ent director of public service. Rules shall
18 include criteria for analyzing the cost-effectiveness of
19 improvements. Rules relating to qualified energy improvements
20 involving a waste-to-energy facility must be adopted in
21 consultation with the waste management board, the authority, and
22 the pollution control agency. An improvement involving a
23 waste-to-energy facility must be part of a solid waste
24 management plan approved by the pollution control agency or a
25 plan approved under section 473.803 .
26 Sec. 15 . Minnesota Statutes 1986, section 116J. 36,
27 subdivision 11, is amended to read:
28 Subd. 11. [RULES. ] The commissioner of energy and economic
29 development shall adopt rules and may adopt emergency rules
30 necessary to carry out the programs of this section. The
31 director of public service shall adopt rules for the
32 administration of programs under this section. The ee�iaatoner
33 ef-e�ergy-aad-eeene�te-dede�ep�ent director of public service
34 may adopt emergency rules pursuant to sections 14.29 to 14. 36,
35 meeting the requirements of this section. The rules shall
36 contain as a minimum:
36
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S.F. No. � l
1 (a) Procedures for application by municipalities; and
2 (b) Criteria for reviewing grant and loan applications.
3 Sec. 16. Minnesota Statutes 1986, section 116J.37,
4 subdivision 1, is amended to read:
5 Subdivision 1. [DEFINITIONS. ] In this section:
6 (a) "Commissioner" means the commissioner of energy and
7 economic development. Upon passage of legislation creating a
8 body known as the Minnesota energy public facilities authority,
9 the duties assigned to the commissioner in this section are
10 delegated to the authority.
11 (b) "Maxi-audit" has the meaning given in section 116J.06,
12 subdivision 12.
13 (c) "Energy conservation investments" mean all capital
14 expenditures that are associated with conservation measures
15 identified in a maxi-audit and that have a ten-year or less
16 payback period. Public school districts that recei,ved a federal
17 institutional building grant in 1984 to convert a heating system
18 to wood, and that apply for an energy conservation investment
19 loan to match a federal grant for wood conversion, shall be
20 allowed to calculate payback of conservation measures based on
21 the costs of the traditional fuel in use prior to the wood
22 conversion.
23 . Sec. 17. Minnesota Statutes 1986, section 116J.37, is
24 amended by adding a subdivision to read:
25 Subd. 8. [TECHNICAL SUPPORT. J The director of public
26 service shall prepare and submit to the authority the technical
27 evaluation of all applicants under this section.
28 Sec. 18. [446A.01) [MINNESOTA PUBLIC FACILITIES AUTHORITY
29 ACT. J
30 Sections 18 to 26 may be cited as the "Minnesota public
31 facilities authority act. "
32 Sec. 19. [446A.02] [DEFINITIONS. ]
33 Subdivision 1. [APPLICABILITY. ) For the purposes of
34 s_ections 18 to 26, the terms in this section have the meanings
35 qiven them.
36 Subd. 2. [AUTHORITY. ] "Authority" means the Minnesota
37
S.F. No. 1 "
1 public facilities authority.
2 Subd. 3 . [COMMISSIONER. ] "Commissioner" means the
3 commissioner of energy and economic development.
4 Subd. 4 . [FEDERAL WATER POLLUTION CONTROL ACT. ] "Federal
5 Water Pollution Control Act" means the Federal Water Pollution
6 Control Act, as amended, United States Code, title 33, sections
7 1281 to 1299.
8 Subd. 5. [GOVERNMENTAL UNIT. � "Governmental unit" means a
9 state agency, home rule charter or statutory city, county,
10 sanitary district, or other governmental subdivision.
11 Subd. 6 . [PROJECT. ] "Project" means the acquisition,
12 construction, improvement, expansion, repair, or rehabilitation
13 of all or part of any structure, facility, or equipment
14 necessary for a wastewater treatment system or water supply
15 system.
16 Sec. 20. [ 446A.03 ] [MINNESOTA PUBLIC FACILITIES
17 AUTHORITY. �
18 Subdivision 1. {MEMBERSHIP. ] The Minnesota public
19 facilities authority consists of the commissioner of energy and
20 economic development, the commissioner of finance, the director
21 of public service, the director of the pollution control agency,
22 and three additional members appointed by the governor from the
23 aeneral public with the advice and consent of the senate.
24 Subd. 2. [CHAIR; OTHER OFFICERS. ) The commissioner of
25 energv and economic development shall serve as the chair and
26 chief executive officer of the authority. The authority may
27 elect other officers as necessary from its members.
28 � Subd. 3. [MEMBERSHIP TERMS. ] The membership terms,
29 compensation, removal, and filling of vacancies of public
30 members of the authority are as provided in section 15.0575.
31 Subd. 4. [BOARD ACTIONS. ] A majority of the authority,
32 excluding vacancies, constitutes a quorum to conduct its
33 business, to exercise its powers, and for all other purposes .
34 Subd. 5. [EXECUTIVE DIRECTOR. ] The commissioner �hall
35 employ, with the concurrence of the authority, an executive
36 director. The director shall perform duties that the authori�
38
. � ����y
' S.F. No. 1
1 may require in carrying out its responsibilities. The executive
2 director ' s position is in the unclassified service.
3 Subd. 6. [P,DMINISTRP,TIVE SERVICES. ] The commissioner shall
4 provide administrative services to the authority.
5 Subd. 7. [PERSONAL LIABILITY. J Members and officers of the
6 authority are not liable personally for any debt or obligation
7 of the authority.
8 Sec. 21. [ 446A.04 ] [POWERS; DUTIES. ]
9 Subdivision 1. [BYLAWS; RULES. ] The authority shall adopt
10 bylaws for its organization and internal management. The
11 commissioner may adopt rules covering the authority' s
12 operations, properties, and facilities.
13 Subd. 2. [POWER TO SUE; ENTER CONTRACTS. J The authority
14 may sue and be sued. The authority may make and enter into
15 contracts, leases, and agreements necessary to perform its
16 duties and exercise its powers.
17 Subd. 3 . (GIFTS; GRANTS. J The authority may apply for,
18 accept, and disburse gifts, grants, loans, or other property
19 from the United States, the state, private sources, or any other
20 source for any of its purposes. Money received by the authority
21 under this subdivision must be deposited in the state treasury
22 and is appropriated to the authority to carry out its duties.
23 Subd. 4. [CONTRACT FOR SERVICES. ] The authority may retain
24 or contract for the services of accountants, financial advisors,
25 and other consultants or agents needed to perform its duties _and
26 exercise its powers.
27 Subd. 5. (FEES. ] The authority may set and collect fees
28 for costs incurred by the authority for its financings and the
29 establishment and maintenance of reserve funds.
30 Sec. 22. [ 446A.05� [PROJECT LOANS. ]
31 Subdivision 1 . [LOANS. ] The authority may make and
32 contract to make loans to governmental units to finance projects
33 that the governmental unit may construct or acquire. A loan maY
34 not be used to pay current expenses or obligations, except for
35 temporary financing. A loan must be secured by notes or bonds
36 of the borrowing governmental unit.
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1 Subd. 2. [RULES. J The commissioner may adopt rules
2� governing loans awarded under this section.
3 Sec. 23 . [ 446A.06 ] [ INDEPENDENT WASTEWATER TREATMENT
4 GRANTS. ]
5 Subdivision 1. [AWARD OF GRANTS. ] The authority shall
6 award independent state grants to municipalities selected bv the
7 pollution control agencv upon certification by the agency that
8 the municipalities ' projects and applications have been reviewed
9 and approved by the agency in accordance with sections 116 .16 to
10 116.18 and agency rules.
11 Subd. 2. [RULES. ] The commissioner shall adopt rules
12 containing procedures for the administration of the authority' s
13 duties as provided in subdivision 1.
14 Sec. 24. [ 446A.07] [WATER POLLUTION CONTROL REVOLVING
15 FUND. J
16 Subdivision 1. (ESTABLISHMENT OF FUND. J The authority
17 shall establish a water pollution control revolving fund to
18 provide loans for the purposes and eliaible costs authorized
19 under title VI of the Federal Wa�ter Pollution Control Act. The
20 fund must be credited with repayments.
21 Subd. 2. [STATE FUNDS. J A state matching fund is
22 established to be used in compliance with federal matching
23 requirements specified in the Federal Water Pollution Control
24 Act. A state grant and loan fund is established to provide
25 c�rants and loans to governmental units for the planning and
26 construction of treatment works as specified in section 116.16,
27 subdivision 2, paragraphs (6) , (7) , and ( 8) .
28 Subd 3. [CAPITALIZATION GRANT AGREEMENT. ] The authority
29 shall enter an agreement with the administrator of the United
30 States Environmental Protection Agencv to receive ca italization
31 grants for the revolving fund. The authority may exercise
32 powers necessary to comply with the requirements specified in
33 the agreement, which must be in compliance with the Federal
34 Water Pollution Control Act.
35 Subd. 4. [ INTENDED USE PLAN. ] The pollution control agency
36 shall annually prepare and submit to the United States
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1 Environmental Protection Aqency an intended use lan. The lan
2 must identify the intended uses of the amounts available to the
3 water pollution control revolvinq fund, includinq a list of
4 wastewater treatment projects and other eliaible activities to
5 be funded during the fiscal vear . The aaency may not submit the
6 plan until it has received the review and comment of the
7 authority or until 30 davs have elapsed since the lan was
8 submitted to the authoritv, whichever occurs first.
9 Subd. 5. [APPLICATIONS. ] Applications by municipalities
10 and other entities identified in the annual intended use lan
11 for loans from the water pollution control revolving fund must
12 be made to the authority on forms reQuirin information
13 prescribed by the rules of the agency adopted under this
14 section. The authority shall send the applications to the
15 agency within ten days of receipt. The director shall certify
16 to the authority those applications that appear to meet the
17 criteria set forth in the Federal Water Pollution Control Act,
18 this section, and rules of the agencv. .
19 Subd. 6. [AWARD AND TERMS OF LOANS. ] The authority shall
20 award loans to those munici alities and other entities certified
21 by the__aqency. The terms and conditions of the loans must be in
22 conformance with the Federal Water Pollution Control Act, this
23 section, and rules of the aqencv, and authoritv adopted under
24 this section.
25 Subd. 7. [LOAN CONDITIONS. J When making loans from the
26 revolving fund, the authoritv shall complv with the conditions
27 of the Federal Water Pollution Control Act, including:
28 (a) Loans must be made at or below market interest rates,
29 including interest-free loans, at terms not to exceed 20 vears .
30 (b) The annual principal and interest payments must begin
31 no later than one year after completion of a project. Loans
32 must be fully amortized no later than 20 vears after project
33 completion.
34 (c) A loan recipient shall establish a dedicated source of
35 revenue for repayment of the loan.
36 (d) The fund must be credited with all pavments of
.
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1 principal and interest on all loans.
2 Subd. 8. (OTHER USES OF REVOLVING FUND. ] The water
3 pollution control revolving fund may be used as provided in
4 title VI of the Federal Water Pollution Control Act, includinq
5 the following uses :
6 ( 1) to buy or refinance the debt obligation of governmental
7 units for treatment works incurred after March 7, 1985, at or
8 below market rates;
9 ( 2) to guarantee or purchase insurance for local
10 obligations to improve credit market access or reduce interest
11 rates; '
12 ( 3) to provide a source of revenue or security for the
13 payment of principal and interest on revenue or general
14 obligation bonds issued by the authority if the bond proceeds
15 are deposited in the fund;
16 ( 4) to provide loan guarantees for similar revolving funds
17 established by a governmental unit other than state agencies;
18 ( 5) to earn interest on fund accounts; and
19 (6) to pay the reasonable costs incurred by the authority
20 and the agency of administering the fund and conducting
21 activities required under the Federal Water Pollution Control
22 Act, including water quality management planning under section
23 205( j ) of the act and water quality standards continuing
24 planning under section 303(e) of the act.
25 Amounts spent under clause ( 6) may not exceed the amount
26 allowed under the Federal Water Pollution Control Act. Five
27 percent of the revolving loan fund repayments may be used by the
28 agency and the authority for the purposes listed in clau�e (6) .
29 Subd. 9 . [PAYMENTS. ] Payments from the fund must be made
30 in accordance with the applicable state and federal law
31 governing the payments, except that no payment for a project may
32 be made to a governmental unit until and unless the authority
33 has determined the total estimated cost of the project and
34` ascertained that financing of the project is assured by:
35 (1) a loan authorized by state law or the appropriation of
36 proceeds of bonds or other money of the governmental unit to a
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1 fund for the construction of the project; and
2 ( 2) an irrevocable undertakinq, by resolution of the
3 governing body of the governmental unit, to use all money made �
4 available for the project exclusivelv for the pro 'ect, and to
5 pay any additional amount bv which the cost of the pro 'ect
6 exceeds the estimate bv the appropriation to the construction
7 fund of additional monev or the proceeds of additional bonds to
8 be issued by the governmental unit.
9 Subd. 10. [RULES OF THE AUTHORITY. ] The commissioner shall
10 adopt rules containing procedures for the administration of the
11 authority' s duties as provided in this section, including loan
� 12 interest rates, the amounts of loans, and munici al financial
13 need.
14 Subd. 11. [RULES OF THE AGENCY. ] The agency shall adopt
15 rules relating to the procedure for preparation of the annual
16 intended use plan and other matters that the a ency considers
17 necessary for proper loan administration.
18 Sec. 25. [ 446A.08 ] [HEALTH CARE EQUIPMENT LOANS. ]
lg Subdivision 1. [AUTHORITY. ] The authority may make or
20 participate in making health care eQUi ment loans. The loans
21 may _be made only from the nroceeds of bonds or notes issued
22 under subdivision 2. Before making a commitment for a loan, the
23 authority shall forward the ap lication to the commissioner of
24 health for review under subdivision 3. The authoritv may not
2S approve or enter into a commitment for a loan unless the
26 application has been approved bv the commissioner of health.
27 Subd. 2. [BONDS AND NOTES. j The authority may issue its
28 bonds and notes to provide monev for the purposes specified in
29 subdivision 1. The principal amount of bonds and notes issued
30 and outstanding under this subdivision at any time mav not
31 exceed $95,000,000 . The bonds and notes issued to make the
32 loans may not be insured bv the authoritv but must be insured by
33 a letter of credit or bond insurance issued by a private insurer .
34 Subd. 3. [ADMINISTRATION. J (a) The commissioner of health
35 shall review each loan application received from the authority
36 to determine whether the application is an eliaible
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1 application. An application is eliqible if the following
2 criteria are satisfied:
3 (1) the hospital is owned and operated by a countv,
4 district, municipality, or nonprofit corporation;
5 ( 2) the loan would not be used to refinance existing debt ;
6 ( 3) the hospital was unable to obtain suitable financing
7 from other sources;
8 (4) the loan is necessary to establish or maintain patient
9 access to an essential health care service that would not
10 otherwise be available within a reasonable distance from the
11 facility; and
1Z ( 5) the equipment to be financed by the loan is
13 cost-effective and efficient.
14 (b) The authority shall determine whether the allocation
15 available for the health care equipment loan program is
16 sufficient for all eligible applications received during a
17 specified time. If the allocations are sufficient, the
18 authority shall approve all eligible applications. If the
19 allocations are not sufficient, the authority shall compare the
20 relative merits of the eligible applications with respect to the
21 criteria in paragraph (a) , clauses ( 4) and ( 5) , rank the
22 applications in order of priority, and approve the applications
23 in order of priority to the extent possible within the available
24 allocation.
25 (c) The authority may charge a reasonable fee under section
26 16A.128 to an applicant for the costs of review of the
27 application. The authority shall transfer to the commissioner
28 of health from the fees collected an amount sufficient to pay
29 the costs of the commissioner of health in the review of
30 applications. The commissioner of health and the authority may
31 each adopt permanent rules to implement subdivisions 1 to 3.
32 Sec. 26. [446A.09 ] [REPORT; AUDIT. ]
33 The authority shall report to the legislature and the
34 governor by January 1 of each year . The report must include a
35 complete operating and financial statement covering the
36 authority' s operations during the year, including amounts of
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1 income from all sources. Books and records of the authoritv are
2 subject to audit bv the leqislative auditor in the manner
3 prescribed for state aaencies.
4 Sec. 27. [GOVERNOR' S ACTION. ]
5 The governor may reQUest the administrator of the
6 environmental protection aqencv to make available to the state,
7 capitalization grants to be deposited in the water ollution
8 control revolvinq fund, for the fiscal vear beginninq October 1,
9 1987. The governor may request that up to 75 percent of the
10 amount allotted to the state for the fiscal vear beginnin ,
11 October 1, 1987, be made available for de osit in the water
12 pollution control revolvinq fund.
13 Sec. 28. [TRANSFER OF AUTHORITY. ]
14 Subdivision 1. [WATER POLLUTION CONTROL GRANTS. � a The
15 responsibilities of the pollution control agency for the state
16 independent wastewater treatment arant rogram under Minnesota
17 Statutes, section 116.18, subdivision 3a, are transferred on
18 July 1, 1988, to the Minnesota public facilities authoritv under
19 Minnesota Statutes, section 15.039, except that the commissioner
20 of energy and economic development and the director of the
21 pollution control aqencv shall determine which classified and
22 unclassified positions associated with these responsibilities
23 are transferred.
24 �b) Any continuing obligation with res ect to grants made
25 before September 30, 1984, under Minnesota Statutes 1984,
26 section 116 .18, subdivision 2, remains with the ollution
27 control agency.
28 �c) The pollution control agency shall continue to
29 administer the combined sewer overflow rogram under Minnesota
30 Statutes, section 116 .162, and the appropriations for the
31 program.
32 Subd. 2. [OTHER RESPONSIBILITIES. ��a) The responsibilities
33 for the health care eQUipment loan program under section
34 116M. 07, subdivisions 7a, 7b, and 7c; the public school energy
35 conservation loan program under section 116J. 37; and the
36 district heating and qualified ener y improvement loan program
45
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1 under section 116J. 36, are transferred from the Minnesota energy
2 and economic development authority to the Minnesota public
3 facilities authority. The director of public service shall
4 continue to administer the municipal energy grant and loan
5 programs under section 116J. 36 and the school energy loan
6 program under section 116J. 37 until t�e commissioner of energy
7 and econo�ic development has adopted rules to implement the
8 financial administration of the programs as provided under
9 sections 10 to 17.
10 (b) Except as otherwise provided in this paragraph, section
11 15.039 applies to the transfer of responsibilities. The
12 transfer includes eight and one-half positions from the
13 financial management division of the department of energy and
14 economic development to the community development division of
15 the department of energy and economic development. The
16 commissioner of energy and economic development and the director
17 of public service shall determine which classified and
18 unclassified positions associated with the responsibilities of
19 the qrant and loan programs under section 116J.36 and the school
20 energy loan program under section 116J.37 are transferred to the
21 director of public service and which positions are transferred
22 to the commissioner of energy and economic development in order
23 to carry out the purposes of this article.
24 Sec. 29. [PROGRAM ADMINISTRP,TION. ]
25 Subdivision 1. [POWERS. ] In implementing the purposes and
26 the programs transferred to the authority by section 28,
27 subdivision 2, the authority has the powers in this section.
� 28 Subd. 2. [RULES. ] It may adopt, amend, and repeal rules,
29 including emergency rules, necessary to effectuate its purposes.
30 Subd. 3. [PERSONAL PROPERTY. ] It may acquire, hold, and
31 dispose of personal property for its corporate purposes.
32 Subd. 4. [REAL PROPERTY. J It may acquire real property, or
33 an interest in real property, in its own name, by purchase or
34 foreclosure, where the acquisition is necessary or appropriate
35 to protect a loan in which the authority has an interest and may
36 sell, transfer , and convey the property to a buyer and, in the
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1 event the sale, transfer , or convevance cannot be effected with
2 reasonable promptness or at a reasonable price, mav lease the
3 property to a tenant.
4 Subd. 5. [NOTES; MORTGAGES; OBLIGATIONS; SALE OF. ] It may
5 sell, at public or private sale, any note, mortQage or other
6 instrument or obligation evidencinq or securinq a loan.
7 Subd. 6. [INSURP,NCE. ] It may procure insurance against a
8 loss in connection with its property in the amounts, and from
9 the insurers, as mav be necessary or desirable.
10 Subd. 7. [LOAN TERMS; MODIFICATION. ] It may consent,
11 whenever it considers it necessary or desirable in the '
12 fulfillment of its purpose, to the modification of the rate of
13 interest, time of payment, installment of princi al or interest,
14 or other term, of a contract or aqreement to which the authoritv
15 is a party.
16 Subd. 8. [LOAN PAYMENTS; INTEREST AND AMORTIZATION. J It
17 may establish and collect reasonable interest and amortization
18 �ayments on loans, and in connection with them mav establish and
19 collect or authorize the collection of reasonable fees and
20 charges or require money to be placed in escrow, sufficient to
21 provide for the pavment and securitv of its bonds, notes,
22 commitments and other obligations and for their servicina, to
23 provide reasonable allowances for or insurance aaainst losses
24 which may be incurred and to cover the cost of issuance of
25 obligations and technical, consultative, and project assistance
26 services.
27 Subd. 9. ( INVESTMENTS. ] (a) It may cause any money not
28 required for immediate disbursement, including the general
29 reserve account, to be invested in direct obli ations of or
30 obliqations guaranteed as to principal and interest bv the
31 United States, or in insured savincts accounts, up to the amount
32 of the insurance, in anv institution the accounts of which are
33 insured by the federal savinqs and loan insurance corporation or
34 to be deposited in a savings or other account in a bank insured
35 by the federal deposit insurance corporation or to be invested
36 in time certificates of deposit issued by a bank insured by the
47
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1 federal deposit insurance corporation and maturing within one
2 year or less and in the investments described in section 11A. 24,
3 subdivision 4, except clause (d) of subdivision 4. It may
4 deposit money in excess of the amount insured with security as
5 provided in chapter 118.
6 (b) Notwithstanding paragraph (a) , it may invest and
7 deposit money into accounts established pursuant to resolutions
8 or indentures securing its bonds or notes in investments and
9 deposit accounts or certificates, and with security, agreed upon
10 with the holders or a trustee for the holders.
11 Subd. 10. [CONSULTATIVE AND TECHNICAL SERVICES. ] It may
12 provide general consultative and technical services to assist in
13 financing the entities to which loans may be made. It may enter
14 into agreements or other transactions concerning the receipt or
15 provision of those services.
16 Subd. 11. [FINANCIAL INFORMATION. ] Financial information,
17 including credit reports, financial statements and net worth
18 calculations, received or prepared by the authority regarding an
19 authority loan, financial assistance, or insurance is private
20 data with regard to data on individuals as defined in section
21 13.02, subdivision 12 and nonpublic data with regard to data not
22 on individuals as defined in section 13.02, subdivision 9 .
23 Subd. 12. [APPROPRIATIONS; GIFTS; GRANTS. ] The authority
24 may accept appropriations, gifts, grants, bequests, and devises
25 and use or dispose of them for its purposes. All gifts, grants,
26 bequests, and revenues from those sources are appropriated to
27 the authority.
28 " Subd. 13 . [PROCEEDS APPROPRIATED TO AUTHORITY. J Proceeds
29 of the authority' s bonds, notes, and other obligations; amounts
30 granted or appropriated to the authority for the making or
31 purchase or the insurance or guaranty of loans or for bond
32 reserves; income from investment; money in the funds; and all
33 revenues from loans, fees, and charges of the authority
34 including rentals, royalties, dividends, or other proceeds in
35 connection with technologv-related products, energy conservation
36 products, or other equipment are annually appropriated to the
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1 authority for the accomplishment of its corporate ur oses and
2 must be spent, administered, and accounted for in accordance
3 with the applicable provisions of all bond and note resolutions,
4 indentures, and other instruments, contracts, and aqreements of
5 the agency. Notwithstanding section 16A. 28, these
6 appropriations are available until expended.
7 Subd. 14. [GENERAL PURPOSE. ] The authority may do all
8 things necessary and proper to fulfill its urpose.
9 Sec. 30. [REPEALER. J
10 Minnesota Statutes 1986, section 116.167, is re ealed.
11 Sec. 31. [APPROPRIATION. ]
12 $800,000 is appropriated from the economic development fund
13 to the commissioner of energv and economic development to
14 administer programs under the Minnesota public facilities
15 authority. $400,000 is for fiscal vear 1988 and $400,000 is for
16 fiscal year 1989. •
17 Sec. 32. [EFFECTIVE DATE. ]
18 Sections 1, 2, 4, 5, 6, 8, 23, and 28, subdivision 1, are
19 effective on July 1, 1988.
20 Section 9 is repealed July l, 1988.
21 ARTICLE 4
22 COMMUNITY DEVELOPMENT
23 Section 1. [116J.874 ] [COMMUNITY DEVELOPMENT DIVISION. ]
24 Subdivision 1. [DUTIES. j The community development
25 division is a division within the department of energy and
26 economic development. It shall:
27 (1) be responsible for administering all state community
28 development and assistance programs, including the economic
29 recovery fund, the outdoor recreation arant program, the rural
30 development board proctrams, the communitv development
31 corporation program, the urban revitalization program, the
32 Minnesota public facilities authority loan and grant programs,
33 and the enterprise zone proqram;
34 ( 2) be responsible for state administration of federally
35 funded community development and assistance programs, including
36 the small cities development grant program and land and water
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1 conservation program;
2 (3) provide technical assistance to rural communities for
3 community development in cooperation with reqional development
4 commissions;
5 �_Z_ coordinate the development and review of state rural
6 development policies;
7 (5) provide staff and consultant services to the rural
8 development board; and
9 (6) be responsible for coordinating community assistance
10 and development programs in cooperation with re ional
11 development commissions.
12 Subd. 2. [GENERAL COMPLEMENT AUTHORITY. J The community
13 development division may combine all related state and federal
14 complement positions into general fund positions, to carrv out
15 the responsibilities under subdivision 1. The number of general
16 fund positions must not exceed the aggreqate number of all state
17 and federal positions that are to be combined. Records of the
18 actual number of employee hours charged to each state and
19 federal account must be� maintained for each general fund
20 Qosition.
21 Sec. 2. [116J.874I] [MAIN STREET PROGRAM. ]
22 The commissioner shall .develop and administer a main street
23 �rogram to assist cities in the revitalization of their
24 businesses. The purpose of the proqram is to strengthen local
25 o�anization and local management of business districts so that
26 cities become more self-reliant and not dependent on future
27 state financial assistance. The• staff dedicated for this
28 �ro_gram shall as�sist cities that request assistance in the
29 following manner:
30 (1) improving the organization of a city's business
31 d_istrict includinq the leadership skills of business owners and
32 city officials;
33 ( 2) establishing a marketinq strateav to promote a city's
34 business district to residents of the surroundina trade area;
35 �� providing technical assistance in the desian and
36 rehabilitation of buildings in a citv' s business district
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1 including historic preservation; and
2 ( 4) establishing a strategy to strengthen existing
3 businesses, recruit new businesses, diversifv the mix of
4 businesses, and develop vacant property in a city' s business
5 district.
6 Sec. 3 . [116J. 970 ] [COMMUNITY DEVELOPMENT CORPORATIONS. ]
7 Subdivision 1. [DEFINITIONS. ] For the purposes of this
8 section, the terms in this subdivision have the meaninas qiven
9 them:
10 (a) "Commissioner" means the commissioner of enerav and
11 economic development .
12 (b) "Economic development region" means an area so
13 designated in the governor ' s executive order number 60, dated
14 June 12, 1970, as amended.
15 (c) "Federal poverty level" means the income level
16 established by the United States Communitv Services
17 Administration in Code of Federal Regulations, title 45, section
18 1060.2-2.
19 (d) "Low income" means an annual income below the federal
20 poverty level.
21 Subd. 2. [P,DMZNISTRP,TION. ] The commissioner shall
22 administer this section and shall enforce the rules related to '
23 the community development corporations adopted by the
24 commissioner. The commissioner mav amend, suspend, repeal or
25 otherwise modify these rules as provided for in chapter 14.
26 Subd. 3. [GRANTS; CORPORP,TIONS ELIGIBLE. J a The
27 commissioner shall desiqnate a communitv development corporation
28 as eligible to receive grants under this section if the
29 corporation is a nonprofit corporation incorporated under
30 chapter 317 and meets the other criteria in this subdivision.
31 (b) The corporation, in its articles of incorporation or
32 bylaws, shall designate a specific geoqraphic communitv within
33 which it will operate. As least ten percent of the population
34 within the designated communitv must have low incomes. Within
35 the metropolitan area as defined in section 473.121, subdivision
36 2, a designated communitv must be an identifiable neighborhood
.
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1 or a combination of neighborhoods or home rule charter or
2 statutory cities, townships, unincorporated areas, or
3 combinations of those entities. Outside the metropolitan area,
4 designated communities, so far as possible, may not cross
5 existing economic development boundaries. If a proposed
6 geographic area overlaps the designated community of a community
7 development corporation existing bef�ore August 1, 1987, the
8 proposed community development corporation shall obtain the
9 written consent of the existing community development
10 corporation before the proposed corporation may be designated as
11 eligible to receive grants under this section.
12 (c) The corporation shall limit voting membership to
13 residents of its designated area.
14 (d) The corporation shall have a board of directors with 15
15 to 30 members unless the corporation can demonstrate to the
16 satisfaction of the commissioner that a smaller or larger board
17 is more advantageous. At least 40 percent of the directors must
18 have incomes that do not exceed 80 percent of the county median
19 family income or 80 percent of the statewide median family
20 income as determined by the state demographer, whichever is
21 less, and the remaining directors must be members of the
22 business or financial community and the community at large. To
23 the greatest extent possible, and at least 60 percent of, the
24 directors must be residents of the designated community.
25 Directors who meet the income limitations of this paragraph must
26 be elected by the members of the corporation. The remaining
27 directors may be elected by the members or appointed by the
28 directors who meet the income limitations of this paragraph. I
29 (e) The corporation shall hire low-income residents of the
30 designated community to fill nonmanagerial and nonprofessional
31 positions.
32 ( f) The corporation shall demonstrate that it has or will
33 have the technical skills to analyze projects, that it is
34 familiar with other available public and private funding sources
35 and economic development programs, and that it is capable of
36 packaging economic development projects.
.
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1 Subd. 4. [GRANT APPROVAL FOR PROJECTS. J '�he commissioner
2 shall approve a grant to a communitv development corporation
3 only for a project carried on within the desictnated community,
4 except when the corporation demonstrates that a project carried
5 on outside will have a siqnificant impact inside the desi nated
6 community.
7 Subd. 5. [USE OF GRANT. ] The commissioner may approve a
. 8 grant to a community development corporation for lanninq,
9 including organization of the corporation, traininq of the
10 directors, creation of a comprehensive communitv economic
11 development plan, and development of a proposal for a venture
12 grant, or for establishment of a business venture, includinq
13 assistance to an existinq business venture, purchase of artial
14 or full ownership of a business venture, or develo ment of
15 resources or facilities necessary for the establishment of a
16 business venture.
17 Subd. 6. [ASSIGNEE. J The commissioner must be named as an
18 assignee of the rights of a state-funded community develo ment
19 corporation on any loan or other evidence of debt provided by a
20 community development corporation to a private enterprise. The
21 assignment of rights must provide that it will be effective u on
22 the dormancy or cessation of existence of the communitv
23 development corporation. "Dormancv" for the urpose of this
24 section means the continuation of the corporation� in name only
25 without any functioning officers or activities. Upon the
26 cessation of the activities of a state-funded communitv
27 development corporation, anv assigned monev paid to the
28 commissioner must be deposited in the state treasury and
29 credited to the general fund.
30 Subd. 7. [FACTORS FOR GRANT P,PPROVAL. ] Factors considered
31 by the commissioner in approvinq a grant to a community
32 development corporation must include the creation of emplovment
33 �portunities, the maximization� of profit, and the effect on
34 securing money from sources other than the state.
35 Subd. 8. [PROHIHITION. J Grants under this section are not
36 available for programs conducted bv churches or reli ious
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1 organizations or for securing or developing social services .
2 Subd. 9. (NO EXCLUSION. ] A person may not be excluded from
3 participation in a program funded under this section because of
4 race, color, religion, sex, age, or national origin.
5 Sec. 4. [TRP,NSFER OF RESFONSIBILITIES. ]
6 Subdivision 1. [COMMUNITY DEVELOPMENT CORPORATIONS. ] The
7 responsibilities of the Minnesota energy and economic
8 development authority for community development corporations
9 under Minnesota Statutes, section 116M.04, are transferred under
10 Minnesota Statutes, section 15. 039, to the commissioner of
11 energy and economic development.
12 Subd. 2. [OTHER PROGRAMS. ] The main street program, the
13 Minnesota community improvement program, the governor ' s design
14 team, and the Minnesota beautiful program are transferred under
15 Minnesota Statutes, section 15.039, from the state planning
16 agency to the department of energy and economic development.
17 The four incumbents of the state planning agency responsible for
18 the administration of these programs are transferred to the
19 department of energy and economic development.
20 Sec. 5. [REPEALER. j
21 Minnesota Statutes, section 116M.04, is repealed.
22 Sec. 6. [EFFECTIVE DATE. ]
23 This article is effective July 1, 1987 .
24 ARTICLE 5
25 MINNESOTA ENERGY AND ECONOMIC DEVELOPMENT AUTHORITY
26 Section 1. Minnesota Statutes 1986, section 15.039, is
27 amended by adding a subdivision to read:
28 Subd. 5a. [OBLIGATIONS. ] The new agency is the legal
29 successor in all respects of the agency whose responsibilities
30 are transferred. The bonds, resolutions, contracts, and
31 liabilities of the agency whose responsibilities are transferred
32 become the bonds, resolutions, contracts, and liabilities of the
33 new agency.
34 Sec. 2. Minnesota Statutes 1986, section 16A.80,
35 subdivision 2a, is amended to read:
36 Subd. 2a. [EXEMPT AGENCIES. ] This section does not apply
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1 to:
2 (1) the housing finance agency;
3 ( 2) the state board of investment;
4 ( 3) the iron range resources and rehabilitation board;
5 ( 4) the higher education coordinating board; and
6 ( 5) the higher education facilities authority;-end
7 f6}-tke-energy-end-eeene�te-deee�epn�eret-aestherity.
8 Sec. 3. [116. 55) [WASTE TiRE RECYCLING LOANS AND GRANTS. ]
9 The pollution control agency may make waste tire recycling
10 loans to businesses. Applications for the loans are not
11 complete unless the waste tire recycling project for which the
12 loan is to be made is certified to be technically feasible by
13 the director of the pollution control agency. The agency may
14 make grants from the waste tire recycling account for studies
15 necessary to demonstrate the technical and economic feasibility
16 of a proposed waste tire recycling project. A grant must be
17 less than $30,000 and may not exceed 75 percent of the costs of
18 the study. The agency shall adopt rules for administration of
19 waste tire recycling grants and loans.
20 Sec. 4. �RESPONSIBILITIES TRANSFERRED TO POLLUTION CONTROL
21 AGENCY. ] -
22 The responsibilities for the waste tire recycling loan and
23 grant program under section 116M.07, subdivision 3, are
24 transferred from the Minnesota energy and economic development
25 authority to the pollution control agency. Minnesota Statutes,
26 section 15.039, applies to the transfer of responsibilities.
27 Sec. 5. (TRANSFER OF RESPONSIBILITIES. ]
28 The responsibilities of the Minnesota energy and economic
29 development authority that are not transferred to any other
30 agency are transferred to the commissioner of energy and
31 economic development under Minnesota Statutes, section 15.039.
32 Sec. 6. [REPEALER. ]
33 Minnesota Statutes 1986, sections 116M.01; 116M.02;
34 116M.03; 116M.06; 116M.07; 116M.08; 116M.09; 116M.10; 116M. 105;
35 and 116M.13, are repealed.
36 Sec. 7. [EFFECTIVE DATE. ]
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1 This article is effective July 1, 1987 .
2 ARTICLE 6
3 URBAN REVITALIZATION PROGRAMS
4 Section 1. Minnesota Statutes 1986, section 281.17 , is
5 amended to read:
6 281.17 [PERIOD FOR REDEMPTION. ]
7 The period of redemption for all lands sold to the state at
8 a tax judgment sale shall be three years from the date of sale
9 to the state of Minnesota if the land is within an incorporated
10 ar.ea unless it is: (a) nonagricultural homesteaded land as
11 defined in section 273.13, subdivision 22, (b) homesteaded
12 agricultural land as defined in section 273.13, subdivision 23,
13 paragraph (a) , or (c) seasonal recreational land as defined in
14 section 273.13, subdivision 27, paragraph (a) , or subdivision
15 22, paragraph (c) , in which event the period of redemption is
16 five years from the date of sale to the state of Minnesota.
17 The period of redemption for homesteaded lands as defined
18 in section 273.13, subdivision 22, located in a targeted
19 neighborhood as defined in section 4 and sold to the state at a
20 tax judgment sale is two years from the date of sale. The
21 period of redemption for other lands in a targeted neighborhood
22 as defined in section 4 and sold to the state at a tax judgment
23 sale is one year from the date of sale.
24 The period of redemption for all other lands sold to the
25 state at a tax judgment sale shall be five years from the date
26 of sale.
27 Sec. 2. Minnesota Statutes 1986, section 429.061,
28 subdivision 2, is amended to read:
29 Subd. 2. [ADOPTION; INTEREST. ] At such meeting or at any
30 adjournment thereof the council shall hear and pass upon all
31 objections to the proposed assessment, whether presented orally
32 or in writing. The council may amend the proposed assessment as
33 to any parcel and by resolution adopt the same as the special
34 assessment against the lands named in the assessment roll.
35 Notice of any adjournment of the hearing shall be adequate if
36 the minutes of the meeting so adjourned show the time and place
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1 when and where the hearing is to be continued.
2 The council may consider any objection to the amount of a
3 proposed assessment as to a specific parcel of land at an
4 adjourned hearing upon . further notice to the affected property
5 owner as it deems advisable. At the adjourned hearing the
6 council or a committee of it may hear further written or oral
7 testimony on behalf of the objecting property owner and may
8 consider further written or oral testimony from appropriate city ,
9 officials and other witnesses as to the amount of the
10 assessment. The council or committee shall prepare a record of
11 the proceedings at the adjourned hearing and written findings as
12 to the amount of the assessment. The amount of the assessment
13 as finally determined by the council shall become a part of the
14 adopted assessment roll. No appeal may be taken as to the
15 amount of any assessment adopted under this section unless
16 written objection signed by the affected property owner is filed
17 with the municipal clerk prior to the assessment hearing or
18 presented to the presiding officer at the hearing. All
19 objections to the assessments not received at the assessment
20 hearing in the manner prescribed by this subdivision are waived,
21 unless the failure to object at the assessment hearing is due to
22 a reasonable cause.
23 If the adopted assessment differs from the proposed
24 assessment as to any particular lot, piece, or parcel of land,
25 the clerk must mail to the owner a notice stating the amount of
26 the adopted assessment. Owners must also be notified by mail of
27 any changes adopted by the council in interest rates or
28 prepayment requirements from those contained in the notice of
29 the proposed assessment.
30 The assessment, with accruing interest, shall be a lien
31 upon all private and public property included therein, from the
32 date of the resolution adopting the assessment, concurrent with
33 general taxes; but the lien shall not be enforceable against
34 public property as long as it is publicly owned, and during such
35 period the assessment shall be recoverable from the owner of
36 such property only in the manner and to the extent provided in
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1 section 435.19. Except as provided below , all assessments
2 shall be payable in equal annual installments extending over
3 such period, not exceeding 30 years, as the resolution
4 determines, payable on the first Monday in January in each year,
5 but the number of installments need not be uniform for all
6 assessments included in a single assessment roll if a uniform
7 criterion for determining the number of installments is provided
8 by the resolution. Assessments on property located in a
9 targeted neighborhood as defined in section 4 may be payable in
10 variable annual installments if the resolution provides for a
11 variable payment. The first installment of each assessment
12 shall be included in the first tax rolls completed after its
13 adoption and shall be payable in the same year as the taxes
14 contained therein; except that the payment of the first
15 installment of any assessment levied upon unimproved property
16 may be deferred until a designated future year, or until the
17 platting of the property or the construction of improvements
18 thereon, upon such terms and conditions and based upon such
19 standards and criteria as may be provided by resolution of the
20 council. If special assessments against the property have been
21 deferred pursuant to this subdivision, the governmeatal unit
22 shall file with the county recorder in the county in which the
23 property is located a certificate containing the legal
24 description of the affected property and of the amount
25 deferred. In any event, every assessment the payment of which
26 is so deferred, when it becomes payable, shall be divided into a
27 number of installments such that the last installment thereof
28 will "be payable not more than 30 years after the levy of the
29 assessment. All assessments shall bear interest at such rate as
30 the resolution determines, not exceeding eight percent per
31 annum, except that the rate may in any event equal the average
32 annual interest rate on bonds issued to finance the improvement
33 for which the assessments are levied. To the first installment
34 of each assessment shall be added interest on the entire
35 assessment from a date specified in the resolution levying the
36 assessment, not earlier than the date of the resolution, until
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1 December 31 of the year in which the first installment is
2 payable, and to each subsequent installment shall be added
3 interest for one year on all unpaid installments; or
4 alternatively, any assessment may be made payable in equal
5 annual installments including principal and interest, each in
6 the amount annually required to pay the principal over such
7 period with interest at such rate as the resolution determines,
8 not exceeding the maximum period and rate specified above. In
9 the latter event no prepayment shall be accepted under
10 subdivision 3 without payment of all installments due to and
11 including December 31 of the year of prepayment, together with
12 the original principal amount reduced only by the amounts of
13 principal included in such installments, computed on an annual
14 amortization basis. When payment of an assessment is deferred,
15 as authorized in this subdivision, interest thereon for the
16 period of deferment may be made payable annually at the same
17 times as the principal installments of the assessment would have
18 been payable if not deferred; or interest for this period may be
19 added to the principal amount of the assessment when it becomes
20 payable; or, if so provided in the resolution levying the
21 assessment, interest thereon to December 31 of the year before
22 the first installment is payable may be forgiven.
23 Sec. 3. Minnesota Statutes 1986, section 462.445,
24 subdivision 1, is amended to read:
25 Subdivision 1. [SCHEDULE OF POWERS. ] An authority shall be
26 a public body corporate and politic and shall have all the
27 powers necessary or convenient to carry out the purposes of
28 sections 462.415 to 462.705 (but not the power to levy and
29 collect taxes or special assessments except as provided in
30 sections 462. 515 to 462. 545 with respect to redevelopment
31 projects only) including the following powers in addition to
32 others granted in these sections:
33 ( 1) To sue and be sued; to have a seal, which shall be
34 judicially noticed, and to alter the same at pleasure; to have
35 perpetual succession; and to make, and from time to time to
36 amend and repeal, rules and regulations not inconsistent with
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1 these sections;
2 � ( 2) To employ an executive director, technical experts, and
3 such officers, agents, and employees, permanent and temporary,
4 as it may require, and determine their qualifications, duties,
5 and compensation; for such legal services as it may require, to
6 call upon the chief law officer of the municipality or to employ
7 its own counsel and legal staff; so far as practicable, to use
8 the services of local public bodies, in its area of operation,
9 such local public bodies, if requested, to make such services
10 available;
11 ( 3) To delegate to one or more of its agents or employees
12 such powers or duties as it may deem proper;
13 (4) Within its area of operation to undertake, prepare,
14 carry out, and operate projects and to provide for the
15 construction, reconstruction, improvement, extension,
16 alteration, or repair of any project or part thereof;
17 ( 5) Subject to the provisions of section 462. 511, to give,
18 sell, transfer, convey, or otherwise dispose of real or personal
19 property or any interest therein and to execute such leases,
20 deeds, conveyances, negotiable instruments, purchase agreements,
21 and other contracts or instruments, and take such action, as may
22 be necessary or convenient to carry out the purposes of these
23 sections;
24 (6) Within its area of operation to acquire real or
25 personal property or any interest therein by gifts, grant,
26 purchase, exchange, lease, transfer, bequest, devise, or .
27 otherwise, and by the exercise of the power of eminent domain,
28 in the manner provided by Minnesota Statutes 1945, chapter 117,
29 and any amendments thereof or supplements thereto, to acquire
30 real property which it may deem necessary for its purposes under
31 these sections, after the adoption by it of a resolution
32 declaring that� the acquisition of the real property is necessary
33 to eliminate one or more of the conditions found to exist in the
34 resolution adopted pursuant to section 462. 425 or found to exist
35 by section 462. 415, subdivision 5, or is necessary to carry out
36 a redevelopment project as defined in section 462. 421,
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1 subdivision 13;
2 (7) Within its area of operation, and without the adoption
3 of an urban renewal plan, to acquire, by all means as set Forth
4 in clause (6) of this subdivision, including by the exercise .of
5 ttie power of eminent domain, in the manner provided by chapter
6 117, and without the adoption of a resolution provided for in
7 subdivision 1, clause (6) , real property, and to demolish,
8 remove, rehabilitate or reconstruct the buildings and
9 improvements or construct new buildings and improvements
10 thereon, or to so provide through other means as set forth in
11 Laws 1974, chapter 228, or to grade, fill and construct
12 foundations or otherwise prepare the site for improvements, and
13 to dispose of said property pursuant to section 462. 525,
14 provided that the provisions of section 462 .525 requiring
15 conformance to an urban renewal plan shall not apply, and to
16 finance such activities by means of the redevelopment project
17 fund or by means of tax increments or tax increment bonds or by
18 the methods of financing provided for in section 462. 545 or by
19 means of contributions from the municipality provided for in
20 section 462.581, clause (9) , or by any combination of such
21 means; provided that, real property with buildings ar
22 improvements thereon shall only be acquired when the buildings
23 or improvements are substandard; and provided further that the
24 exercise of the power of eminent domain under this clause shall
25 be limited to real property which contains buildings and
26 improvements which are vacated and substandard. For the purpose
27 of this subparagraph, substandard buildings or improvements mean
28 hazardous buildings as defined in section 463.15, subdivision � 3,
29 or buildings or improvements that are dilapidated or
30 obsolescent, faultily designed, lack adequate ventilation,
31 light, or sanitary facilities, or any combination of these or
32 other factors that are detrimental to the safety or health of
33 the community.
34 (8) Within its area of operation to determine the level of
35 income constituting low or moderate family income. Such income
36 level shall be that level below which there is not available
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1 within the area of operation a substantial supply of decent,
2 safe and sanitary housing provided by private enterprise without
3 subsidy at prices or rents within the financial means of persons
4 and families of such incomes. The authority may establish
5 various income levels for various family sizes. In making its
6 determination the authority may consider income levels which may
7 be established by the federal housing administration or a
8 similar or successor federal agency for the purpose of federal
9 loan guarantees or subsidies for persons of low or moderate
10 income. The authority may use such determination as a basis for
11 the maximum amount of income for admissions to housing
12 development projects owned or operated by it;
13 ( 9) To provide in federa.11y assisted projects such
14 relocation payments and assistance as may be necessary to comply
15 with the requirements of the Federal Uniform Relocation
16 Assistance and Real Property Acquisition Policies Act of 1970,
17 and any amendments or supplements thereto.
18 Sec. 4. [DEFINITIONS. ]
19 Subdivision 1. [APPLICABILITY. ] The definitions in this
20 section apply to sections 4 to 10 .
21 Subd. 2. [CITY. J "City" means the city of Minneapolis or
22 the city of Saint Paul. For each citv, a port authoritv,
23 housing and redevelopment authority, or other aqencv or
24 instrumentality, the jurisdiction of which is the territory of
25 the city, is included within the meaning of citv.
26 Subd. 3. [CITY COUNCIL. J "City council" means either the
27 ci_ty council of Minneapolis or the citv council of Saint Paul.
28 Subd. 4. [�CITY MP,TCFiING MONEY. J "City �natching money" .
29 means the money of a city specified in a revitalization and
30 financing program to be spen� to implement a revitalization
31 �roqram. The sources of city matching money may include:
32 �1) money from the general fund or a special fund of a city
33 used to implement a revitalization program;
34 ( 2) money paid or repaid to a city from the proceeds of a
35 grant that a city has received from the federal government, a
36 profit or nonprofit corporation, or another entitv or
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1 individual, that is to be used to implement a revitalization
2 program;
3 ( 3) tax increments received by a city under sections 273.71
4 to 273.78 or other law, if eligible, to be spent in the targeted
5 neighborhood;
6 (4) the greater of the fair market value or the cost to the
7 city of acquiring land, buildings, equipment, or other real or
8 personal property that a city contributes, grants, or loans to a
9 profit or nonprofit corporation, or other entity or individual
10 in connection with the implementation of a revitalization
11 program;
12 � 5) citv money to be used to install, reinstall, repair, or
13 improve the infrastructure facilities of a targeted neighborhood;
14 (6) money contributed by a citv to pay issuance costs or to
15 otherwise provide financial support for revenue bonds or
16 obligations issued bv a city for a project or program related to
17 the implementation of a revitalization program;
18 (7) money derived from fees received by a city in
19 connection with its community development activities that are to
20 be used in implementing a revitalization program.
21 City matching money does not include:
22 S1) citv monev used to provide a service or exercise a
23 function that is ordinarily provided throughout the city, unless
� 24 an increased level of the service or function is to be provided
25 in a targeted neighborhood in accordance with a revitalization
26 program;
27 ( 2) the proceeds of revenue bonds issued by the city under
28 chapEer 458, 462C, 472, or 474; or
29 (3) administrative expenses that are incurred in connection ,
30 with the planning or implementation of sections 4 to 10.
31 Subd. 5. [COMMISSIONER. ] "Commissioner" means the
32 commissioner of enerqy and economic development.
33 Subd. 6. [LOST UNIT. ] "Lost unit" means a rental housing
34 unit that is lost as a result of revitalization activities
35 because it is demolished, converted to an owner-occupied unit
36 that is not a cooperative, converted to a nonresidential use, or
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1 if the gross rent to be charged exceeds 125 ercent of the ross
2 rent charged for the unit six months before the start of
3 rehabilitation.
4 Subd. 7. [TARGETED NEIGHBORHOOD. ] "Targeted neighborhood"
5 means an area includinq one or more census tracts as determined
6 and measured by the bureau of census of the United States
7 Department of Commerce that meet the criteria of section 5,
8 subdivision 2, and any additional area desiqnated under section �
9 5, subdivision 3.
10 Subd. 8. [TP,RGETED NEIGHBORHOOD MONEY. ] "Targeted
11 neighborhood money" means the money desianated in the
12 revitalization program to be used to implement the
13 revitalization program.
14 Subd. 9 . [TARGETED NEIGHBORHOOD REVITALIZATION AND
15 FINANCING PROGRAM. ] "Targeted neighborhood revitalization and
16 financing program, " "revitalization rogram, " or " rogram" means
17 the targeted neighborhood revitalization and financinQ rogram
18 adopted in accordance with section 6.
19 Sec. 5. [DESIGNATION OF TARGETED NEIGHBORHOODS. J
20 Subdivision 1. [CITY AUTHORITY. J A city may by resolution
21 designate targeted neighborhoods within its borders after
22 adopting detailed findings that the desianated neiahborhoods
23 meet the eligibility requirements in subdivision 2 or 3 .
24 Subd. 2 . [ELIGIHILITY REQUIREMENTS FOR TARGETED
25 NEIGHBORHOODS. ] An area within a city is eliaible for
26 designation as a targeted neighborhood if the area meets two of
27 the following three rectuirements: -
28 (a) The area had an unemployment rate that was twice the
29 unemployment rate for the Minneapolis and Saint Paul standard
30 metropolitan statistical area as determined bv the 1980 federal
31 decennial census.
32 (b) The median household income in the area was no more
33 than half the median household income for the Minnea olis and
34 Saint Paul standard metropolitan statistical area as determined
35 by the 1980 federal decennial census.
36 (c) The area is characterized bv residential dwellin units
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1 in need of substantial rehabilitation. An area qualifies under
2 this clause if 25 percent or more of the residential dwellin
3 units are in substandard condition as determined bv the citv or
4 70 percent or more of the residential dwellinq units in the area
5 were built before 1940 as determined bv the 1980 federal
6 decennial census.
7 Subd. 3. [ADDITIONAL AREA ELIGIBLE FOR INCLUSION IN
8 TARGETED NEIGHBORHOOD. ] The city may add to the area desiqnated
9 as a targeted neighborhood under subdivision 2 additional area
10 extending up to four contiguous citv blocks in all directions
11 from the designated tarqeted neiqhborhood. For the ur ose of
12 this subdivision, "city block" has the meaning determined bv the
13 city•
14 Sec. 6. [TARGETED NEIGHBORHOOD REVITALIZATION AND
15 FINANCING PROGRAM REQUIREMENTS. ]
16 Subdivision 1. [COMPREHENSIVE REVITALIZATION AND FINANCING
17 PROGRAM. ) (a) For each targeted neighborhood for which a citv
18 requests state financial assistance under section 7, the city
19 � must prepare a comprehensive revitalization and financin
20 program that includes the followin :
21 �1) the revitalization objectives of the citv for the
22 targeted neighborhood;
23 �2) the specific activities or means bv which the city
24 intends to pursue and implement the revitalization ob 'ectives;
25 ( 3) the extent to which the activities identified in clause
26 ( 2) will benefit low and moderate income families, will
27 alleviate the blicthted condition of the tarqeted neighborhood,
28 .or will otherwise assist in the revitalization of the tar eted
29 neighborhood;
30 �4) a statement of the intended outcomes to be achieved bv
31 implementation of the revitalization rogram, how the outcomes
32 will be measured both qualitativelv and quantitativelv, and the
33 estimated time over which thev will occur; and
34 � 5_) a financing program and budctet that identifies the
35 financial resources necessary to im lement the revitalization
36 program. '
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1 (b) The financing program and budget must include the
2 following items:
3 ( 1) the estimated total cost to implement the
4 revitalization program;
5 ( 2) the estimated cost to implement each activity in the '
6 revitalization program identified in paragraph (a) , clause ( 2) ;
7 �3) the estimated amount of financial resources that will
8 be available from all sources other than from the appropriation
9 available under section 7 to implement the revitalization
10 program;
11 ( 4) the estimated amount of the appropriation available
12 under section 7 that will be necessary to implement the
13 revitalization program;
14 ( 5) a description of the activities identified in the
15 revitalization program for which the state appropriation will be
16 used and the time or times at which the state appropriation will
17 be committed or spent; and
18 ( 6) a statement of how the city intends to meet the
19 requirement for a financial contribution matching the state
20 appropriation from city matching money in accordance with
21 section 7, subdivision 3.
22 Subd. 2. [TARGETED NEIGHBORHOOD PARTICIPATION IN
23 REVITALIZATION PROGRAM DEVELOPMENT. ] The city shall develop a
24 process to consult the residents in the targeted neighborhood
25 concerning the development, drafting, and implementation of the
26 revitalization program. The process may include the
27 establishment of an advisory board in each city. The process
28 must include at least one public hearing in addition to a public
29 hearing held by the advisory board.
30 Subd. 3. [ADVISORY BOP,RD. � The governing body of the city
31 may establish a nine-member advisory board to assist the city in
32 implementing the revitalization program. The advisory board
33 shall consist of two city council members appointed by the city
34 council, one county commissioner appointed by the county boar_d
35 of the countv in which the city is located, t�o legislators
36 appointed bv the city legislative delegation, and four residents
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1 who reside in a targeted neighborhood appointed by the city
2 council. The advisory board shall advise the citv on the
3 preparation of the revitalization program including the
4 conversion from absent-owner rental housing to home ownership,
5 the promotion of commercial and industrial growth in targeted
6 neighborhoods, and the integration of human service programs and
7 the redevelopment in targeted neighborhoods.
8 Subd. 4. [PRELIMINARY CITY REVIEW; STATE AGENCY
9 REVIEW. ] Before adoption of the revitalization program under
10 subdivision 5, the city must submit a draft program to the
11 commissioner and the Minnesota housing finance agency for their
12 comment. The city may not adopt the revitalization program
13 until comments have been received from the state agencies or 30
14 days have elapsed without response after the program was sent to
15 them. Comments received by the city from the state agencies
16 within the 30-day period must be responded to in writing by the
17 city before adoption of the program by the city.
18 Subd. 5. [CITY APPROVAL. ] The city may adopt the
19 revitalization program only after holding a public hearing after
20 the program has been prepared. Notice of the hearing must b�
21 provided in a newspaper of general circulation in the city and
22 in the targeted neighborhood not less than ten days nor more
23 than 30 days before the date of the hearing.
24 Subd. 6. (PROGRAM CERTIFICATION. ] A certification by the
25 city that a revitalization program has been approved by the city
26 council for the targeted neighborhood must be provided to the
27 commissioner together with a copy of the program. A copy of the
28 program must also be provided to the Minnesota housing finance
29 agency.
30 Subd. 7. [REVITALIZATION PROGRAM MODIFICATION. ] The
31 revitalization program may be modified at any time by the city
32 council after a public hearing, notice of which is published in
33 a newspaper of general circulation in the city and in the
34 targeted neighborhood not less than ten days nor more than 30
35 days before the date of the hearing. If the city council
36 determines that the proposed modification is a significant
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L modification to the program oriqinally certified under
2 subdivision 6, it must implement the revitalization rogram
3 approval and certification process of subdivisions 3 to 6 for
4 the proposed modification.
� Sec. 7. [PAYMENT; CITY MATCHING MONEY; DRAWDOWN; USES OF
6 STATE MONEY. j
7 Subdivision 1. [PAYMENT OF STATE MONEY. J Upon receipt from
8 a city of the certification that a revitalization ro ram has
9 been adopted or modified, the commissioner shall, within 30
IO days, pay to the city the amount of state monev identified as
11 necessary to implement the revitalization program or program
12 modification. State monev mav be paid to the citv only to the
13 extent that the appropriation limit for the citv specified in
14 subdivision 2 is not exceeded. Once the state monev has been
15 paid to the city, it becomes tarQeted neighborhood monev for use
16 by the city in accordance with an adopted revitalization rogram
17 and subject only to the restrictions on its use in sections 4 to
18 10.
19 Subd. 2. [ALLOCATION. ] A city may receive a part of the
. 20 appropriations rnade available that is the pro ortion that the
21 population of the city bears to the combined po ulation of
22 Minneapolis and Saint Paul. One citv mav agree to reduce its
23 entitlement amount so that the other mav receive an amount more
24 than its entitlement amount. The population of each city for
25 the purposes of this subdivision is determined according to the
26 most recent estimates available to the commissioner . Interest
27 earned by a city from monev paid to the citv must be repaid to
28 the tommissioner annuallv unless the revitalization rogram
29 identifies the interest as necessarv to implement the
30 revitalization program and the requirement for citv matchinq
31 money is satisfied with respect to the interest .
32 Subd. 3. [CITY MP,TCHING MONEY; DRAWDOWN OF STATE MONEY;
33 RESTRICTION ON USE OF STATE MONEY. ] A city may spend state money
34 only if the revitalization program identifies city matching
35 money to be used to implement the rogram in an amount eQual to
36 the state appropriation. A citv must keep the state monev in a
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1 segregated fund for accounting purposes. No state money may be
2 used to pay the general administrative expenses of a city that
3 are incurred in connection with the planning or implementation
4 of sections 4 to 10 .
5 Sec. 8. [CITY POWERS AND ELIGIBLE USES OF TARGETED
6 NEIGHBORHOOD MONEY. ]
7 Subdivision 1. [CONSOLIDATION OF EXISTING POWERS IN
8 TARGETED NEIGHBORHOODS. ] A city may exercise any of its
9 corporate powers within a targeted neighborhood including, but
10 not limited to, all of the powers enumerated and granted by
11 chapters 458, 462, 462C, 472, 472A, and 474. For the purposes
12 of chapter 458, a targeted neighborhood is considered an
13 industrial development district. A city may exercise the powers
14 of chapter 458 in conjunction with, and in addition to,
15 exercising the powers granted by chapters 462 and 462C in order
16 to promote and assist housing construction and rehabilitation
17 within a targeted neighborhood. For the purposes of section
18 462C.02, subdivision 9, a targeted neighborhood is considered a
19 "targeted area. "
20 Subd. 2. [GRANTS AND LOANS. � In addition to the authority
21 granted by other law, a city may make grants and loans to
22 individuals, for-profit and nonprofit corporations, and other
23 organizations to implement a revitalization program. The grants
24 and loans must contain the terms concerning use of money,
25 repayment, and other conditions the city deems proper to
26 implement a revitalization program.
27 Subd. 3. [ELIGIBLE USES OF TARGETED NEIGHBORHOOD
28 MONEY. ] The city may spend targeted neighborhood money for any
29 purpose authorized by subdivision 1 or 2. Use of targeted
30 neighborhood monev must be authorized in a revitalization
31 program. '
32 Sec. 9. [HAZARDOUS BUILDING PENALTY. J
33 A citv mav assess a penalty equal to one percent of the
34 assessed value of a building located in a targeted neighborhood
35 defined in section 4 that the city determined to be hazardous as
36 defined in section 463 .15, subdivision 3. The city shall send a
69 '
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Il written notice to the address to which the ro ertv tax
Z statement is sent at least 90 davs before it mav assess the
3 penalty. If the owner of the buildin has not aid the enalty
4 and fixed the property within 30 davs after receivinq notice of
� the penalty, the penalty is considered delinquent and is
fi increased by 25 percent each 60 davs the penaltv is not aid and
7, the property remains hazardous. For the purposes of this
8 section, a penaltv that is delinquent is considered a delinQUent
� property tax and subject to Minnesota Statutes, chapters 279,
Z� 280, and 281, in the same manner as delinquent propertv taxes.
IT Sec. 10. [ANNUAL AUDIT AND REPORT. J
TZ Subdivision l. [ANNUAL FINANCIAL AUDIT. ] In 1988 and
13 subsequent years, at the end of each calendar year, the
I.� legislative auditor shall conduct a financial audit to review
L� the spending of state monev under sections 4 to 10. Before
l� spending state money ,to implement a revitalization pro ram, the
T? city must consult with the leqislative auditor to determine
Z� appropriate accounting methods and rinciples that will assist
I� the legislative auditor in conducting its financial audit. The
�� results of the financia� audit must be submitted to the
�l legislative audit commission, the commissioner, and the
ZZ Minnesota housing finance agency.
23 Subd. 2. [ANNUAL REPORT. ] A city that begins to implement
Z4 a revitalization program in a calendar vear must, by March 1 of
2� the succeeding calendar vear, provide a detailed report on the
�6 revitalization program or programs beinq implemented in the
�7 city. The report must describe the status of the rogram
�8 implementation and analvze whether the intended outcomes
2�9 identified in section 6, subdivision 1, paragra h (a) , clause
30 �4) , are being achieved. The re ort must include at least the
31 following:
3:2. �1) the number of housing units removed, created, lost,
3:3 replaced, relocated, and assisted as a result of the rogram.
34 The level of rent of the units and the income of the households
35 affected must be included in the report;
3� �2) the number and type of commercial establishments
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1 removed, created, and assisted as a result of a revitalization
2 program. The report must include information regarding the
3 number of new jobs created by category, whether the jobs are
4 full time or part time, and the salary or wage levels of both
5 new and expanded jobs in the affected commercial establishments;
6 ( 3) a description of a statement of the cost of the public
7 improvement projects that are part of the program and the number
8 of jobs created per each $20,000 of funds expended on commercial
9 projects and applicable public improvement projects;
10 ( 4) the increase in the assessed valuation for the city as
11 a result of the assistance to commercial and housing assistance;
12 and
13 � 5) the amount of private investment that is a result of
14 the use of public money in a targeted neighborhood.
15 The report must be submitted to the commissioner, the
16 Minnesota housing finance agency, and the legislative audit
17 commission, and must be available to the public._
18 Sec. lI. (APPROPRIATION; DISTRIBUTION. ]
19 $9,000�000 is appropriated from the general fund to the
20 commissioner of energy and economic development for payment to
21 the cities of Minneapolis and Saint Paul as provided in section
22 7. $4,500,000 is for fiscal vear 1988 and $4,500,000 is for
23 fiscal year 1989.
24 Sec. 12. (REPEP,LER. J
25 Laws 1969, cliapters 833 and 984, are repealed.
26 Sec. 13. [EFFECTIVE DATE; LOCAL P,PPROVAL. ]
27 Sections 4 to 11 are effective for the city of Minneapolis
28 the da after com liance with section 645.021, subdivision 3, b
29 the governing body of the city of Minneapolis._
30 Sections 4 to 11 are effective for the city of Saint Paul
31 the day after compliance with section 645.021, subdivision 3, by
32 the governing body of the city of Saint Paul.
33 ARTICLE 7
34 NATURAL RESOURCES
35 Section 1. [ 93. 001] [POLICY FOR MINERAL DEVELOPMENT. J
36 It is the policy of the state to provide for the
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1 diversification of the state ' s mineral economy through lonQ-term
2 support of mineral exploration, evaluation, develo ment,
3 production, and commercialization.
4 Sec. 2. [93.002 ] [MINERAL COORDINATING COMMITTEE. ]
5 Subdivision 1. [ESTABLISHMENT. � The mineral coordinatinq
6 committee is established to plan for diversified mineral
7 development . The mineral coordinatinq committee consists of the
8 director of the minerals division of the de artment of natural
9 resources, the director of the Minnesota eological survey, the
10 director of the Universitv of Minnesota mineral resources
11 research center, and the director of the natural resources
12 research institute. The director of the minerals division of
13 the department of natural resources shall serve as chair . A
14 member of the committee mav designate another erson of the
15 member ' s organization to act in the member 's place. The '
16 commissioner of natural resources shall provide staff and
17 administrative services necessarv for the committee' s activities. '
18 Subd. 2. [MINERAL DIVERSIFICATION PLAN. ] The mineral
19 coordinating committee shall prepare and adopt a ten-vear plan
20 for mineral diversification. The plan must include a strateqv
21 to: .
22 (1) increase the knowledge of the state ' s mineral otential;
23 ( 2) stimulate the development of mineral resources in the
24 state; and
25 ( 3) promote basic minerals research.
26 The plan must also include a two-year plan that establishes
27 funding priorities for the minerals programs under subdivision
28 3. The funding priozities must be updated every two years.
29 Subd. 3. [MINERP,LS PROGRAMS. ] The mineral diversification
30 plan must address at least the following: aeromagnetic survevs,
31 glacial till geochemistry survevs, geologic drillin and
32 mapping, LMIC minerals data base, drill core examination and
33 assay, industrial minerals characterization and research,
34 bedrock geochemistry, nonferrous minerals research, reclamation
35 studies, economic evaluation of mineral resources, improved
36 geophysical and remote sensing base, acquisition of sampling
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1 equipment and analyses, determination of mineral rights
2 ownership, ferrous minerals research, evaluation of mineral
3 resource occurrence, � evaluation of value added processes, ore
4 c�eposit modeling, and basic mineral research.
5 Subd. 4. [SUHMISSION OF PLAN AND FUNDING PRIORITIES. ] �
6 The minerals coordinating committee shall submit the minerals
7 diversification plan to the legislature by December 31, 1987 .
8 (b) By January 15 of each odd-numbered year, the minerals
9 coordinating committee shall submit the two-year funding
10 Qriority plan required under subdivision 2 to the chairs of the
11 house appropriations and environment and natural resources
12 committees and the chairs of the senate finance and environment
13 and natural resources committees.
14 Sec. 3. [APPROPRIATION. ]
15 Subdivision 1. [MINERP,LS PROGRAMS. ] $1,000,000 is
16 appropriated from the general fund to the commissioner of
17 natural resources to accelerate geological mapping of the state,
18 accelerate evaluation of the state' s mineral potential and other
19 natural resources, and provide analytical support for the
20 minerals industry according to the mineral diversification plan
21 or a minerals industry acceleration plan developed by the
22 minerals coordinating committee. $500,000 is for fiscal year
23 1988 and $500,000 is for fiscal year 1989.
24 Subd. 2. [COUNTY FORESTRY ASSISTANCE PROGRAMS. J $1,750,000
25 is appropriated from the general fund to the commissioner of
26 natural resources for grants to counties or groups of counties
27 for county forestry assistance programs. $875,000 is for fiscal
28 Year � 1988 and $875,000 is for fiscal year 1989. The
29 commissioner of natural resources shall make the appropriation
30 available to counties with the amount proportional to the
31 acreage of commercial tax-forfeited forested land managed by the
32 county. As a condition of receiving money, the commissioner of
33 natural resources shall require work plans, semiannual progress
34 reports, and final project reports.
35 Subd. 3. [FORESTRY MANAGEMENT. � $250,000 is appropriated
36 from the general fund to the commissioner of natural resources
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1 for implementation of the forestr_y management lan reQUired in
2 Minnesota Statutes, section 89.011, on land that is not manaqed
3 for the school trust fund. $125,000 is for fiscal year 1988 and
4 $125,000 is for fiscal year 1989 .
5 Sec. 4. [EFFECTIVE DATE. ]
6 This article is effective the dav following final enactment .
7 ARTICLE 8
8 IRON RANGE RESOURCES AND REHABILITATION
9 Section 1. [NORTHEAST MINNESOTA ECONOMIC DEVELOPMENT
10 FUND. ]
11 Subdivision 1. [APPROPRIATION. J $4,000,000 is appropriated
12 from the general fund to the commissioner of iron ranqe
13 resources and rehabilitation. $300,000 of this appropriation
14 must be used in the same manner as monev appropriated under
15 Minnesota Statutes, section 298.17.
16 Subd. 2. [PURPOSE OF EXPENDITURES. � The money appropriated
17 in this section may be used for projects and programs for which
18 technological and economic feasibility have been demonstrated
19 and that have the following purposes: .
20 (1) creating and maintaining productive, permanent, skilled
21 employment, including employment in technologicallv innovative
22 businesses; and
23 ( 2) encouraging diversification of the economv and
24 promoting the development of minerals, alternative ener v
25 sources utilizing indigenous fuels, forestrv, small business,
26 and tourism.
27 Subd. 3. [USE OF MONEY. ] The money appropriated under this
28 section may be used to provide loans, loan guarantees, interest
29 buy-downs, and other forms of participation with private sources
30 of financing, provided that a loan to a private enterprise must
31 be for a principal amount not to exceed one-half of the cost of
32 the project for which financing is sought, and the rate of
33 interest on a loan must be no less than the lesser of eight
34 percent or the rate of interest set by the Minnesota development
35 board for comparable small business development loans at that
36 time.
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1 Money appropriated in this section must be expended only in
2 or for the benefit of the tax relief area defined in Minnesota
3 Statutes, section 273 .134, and as otherwise provided in this
4 section.
5 Subd. 4. (PROJECT APPROVAL. J The board shall by August 1,
6 1987, and each year thereafter prepare a list of projects to be
7 funded from the money appropriated in this section with
8 necessary supporting information including descriptions of the
9 projects, plans, and cost estimates. A project must not be
10 approved by the board unless it finds that:
11 (1) the project will materially assist, directly or
12 indirectly, the creation of additional long-term employment
13 opportunities;
14 ( 2) the prospective benefits of the expenditure exceed the
15 anticipated costs; and
16 ( 3) in the case of assistance to private enterprise, the
17 project will serve a sound business purpose.
18 To be proposed by the board, a project must be approved by
19 at least eight iron range resources �and rehabilitation board
ZO members and the commissioner of iron range resources and
21 rehabilitation. The list of projects must be submitted to the
22 legislative advisory commission for its review. The list with
Z3 the recommendation of the legislative advisory commission must
24 be submitted to the governor, who shall, by November 15 of each
25 year, approve, disapprove, or return for further consideration,
Z6 each project. The money for a project may be spent only upon
27 approval of the project by the governor.
28 The board may submit supplemental projects for approval at
29 any time. Supplemental projects must be 'submitted to the
30 members of the legislative advisory commission for their review
31 and recommendations of further review. If a recommendation is
32 not provided within ten days, no further review by the
33 legislative advisory commission is required, and the governor
34 shall approve or disapprove each project or return it for
�35 further consideration. If the recommendation by a member is for
36 further review, the governor shall submit the request to the
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1 legislative advisory commission for its review and -
2 recommendation. Failure or refusal of the commission to make a
3 recommendation promptly is a negative recommendation.
4 Subd. 5. [ADVISORY COMMITTEES. J Before submission to the
5 board of a proposal for a project for expenditure of monev
6 appropriated under this section, the commissioner of iron range
7 resources and rehabilitation shall appoint a technical advisorv
8 committee consisting of at least seven persons who are
9 knowledgeable in areas related to the objectives of the
10 proposal. If the project involves investment in a scientific
11 research proposal, at least four of the committee members must
12 be knowledgeable in the specific scientific research area
13 relating to the project . Members of the committees must be
14 compensated as provided in Minnesota Statutes, section 15.059,
15 subdivision 3. The board shall not act on a proposal until it
16 has received the evaluation and recommendations of the technical
17 advisory committee.
18 Subd. 6. [USE OF REPAYMENTS AND EARNINGS. ] Principal and
19 interest received in repayment of loans made under this section
20 must be deposited in the state treasurv and are appropriated to
�
21 the board for the purposes of this section.
22 Sec. 2. Minnesota Statutes 1986, section 298. 292, is
23 amended to read:
24 298. 292 [POLICY. J
25 Subdivision 1. [PURPOSES. ] The legislature is cognizant of
26 the severe economic dislocations and widespread unemployment
27 that result when a single industry on which an area is largely
28 dependent, experiences a drastic reduction in activity. The
29 northeast Minnesota economic protection trust fund is hereby
30 created to be devoted to economic rehabilitation and
31 diversification of industrial enterprises where these conditions
32 ensue as the result of the decline of such a single industry.
33 Priority shall be given to using the northeast Minnesota
34 economic protection trust fund for the following purposes:
35 fa� � projects and programs that are designed to create
36 and maintain productive, permanent, skilled employment,
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1 including employment in technologically innovative businesses;
2 fb} 2� projects and programs to encourage diversification
3 of the economy and to promote the development of minerals,
4 alternative energy sources utilizing indigenous fuels, forestry,
5 small business, and tourism; and
6 fe} � projects and programs for which technological and
7 economic feasibility have been demonstrated-.
8 fd} Subd. 2. [USE OF MONEY. J Monev in the northeast
9 Minnesota economic protection trust fund may be used for the
10 following purposes:
11 ( 1) to provide loans, loan guarantees, interest buy-downs
12 and other forms of participation with private sources of
13 financing, but a loan to a private enterprise shall be for a
14 principal amount not to exceed one-half of the cost of the .
15 project for which financing is sought, and the rate of interest
16 on a loan shall be no less than the lesser of eight percent or
17 an interest rate three percentage points less than a full faith
18 and credit obligation of the United States government of
19 comparable maturity, at the time that the loan is approved;
20 fe}-f�nding S2) to fund reserve accounts established to
21 secure the payment when due of the principal of and interest on �
22 bonds issued pursuant to section 298.2211; as�d
23 ff� � to pay in periodic payments or in a lump sum
24 payment any or all of the interest on bonds issued pursuant to
25 chapter 474 for the purpose of constructing, converting, or
26 retrofitting heating facilities in connection with district
27 heating systems or systems utilizing alternative energy sources;
28 and
29 (4) to invest in a venture capital fund or enterprise that
30 will provide capital to other entities that are engaging in, or
31 that will engage in, projects or programs that have the purposes_
32 set forth in subdivision 1. No investments may be made in a
33 venture capital fund or enterprise unless at least two other
34 unrelated investors make investments of at least $500,000 in the
35 venture capital fund or enterprise, and the investment by the
36 northeast Minnesota economic protection trust fund may not
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1 exceed the amount of the larqest investment by an unrelated
2 investor in the venture capital fund or enter rise. For
3 purposes of this subdivision, an "unrelated investor" is a
4 person or entity that is not related to the entity in which the
5 investment is made or to any individual who owns more than 40
6 percent of the value of the entitv, in any of the following
7 relationships: spouse, parent, child, siblinq, emplovee, or
8 owner of an interest in the entitv that exceeds ten percent of
9 the value of all interests in it. For purposes of determinin
10 the limitations under this clause, the amount of investments
11 made by an investor other than the northeast Minnesota economic
12 protection trust fund is the sum of all investments made in the
13 venture capital fund or enterprise durinq the period beqinning
14 one year before the date of the investment by the northeast
15 Minnesota economic protection trust fund.
16 Money from the trust fund shall be expended only in or for
17 the benefit of the tax relief area defined in section 273.134.
18 Sec. 3. Minnesota Statutes 1986, section 298.296,
19 subdivision 2, is amended to read: �
20 Subd. 2. [EXPENDITURE OF FUNDS. ]� Before January 1, 2002,
21 funds may be expended on projects and for administration of the
22 trust fund only from the net interest, earnings, and dividends
23 arising from the investment of the trust at any time, including
24 net interest, earnings, and dividends that have arisen prior to
25 July 13, 1982, plus $10,000,000 made available for use in fiscal
26 year 1983, except that any amount required to be paid out of the
27 trust fund to provide the property tax relief specified in Laws
28 1977; chapter 423, article X, section 4, and to make school bond
� 29 payments and payments to recipients of taconite production tax
30 proceeds pursuant to section 298.225, may be taken from the
31 corpus of the trust. On and after January 1, 2002, funds may be
32 expended on projects and for administration from any assets of
33 the trust. Annual administrative costs, not including detailed
34 engineering expenses for the projects, shall not exceed five
35 percent of the net interest, dividends, and earnings arising
36 from the trust in the preceding fiscal year.
.
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1 Principal and interest received in repayment of loans made
2 pursuant to this section, and earnings on other investments made
3 under section 298.292, subdivision 2, clause ( 4) , shall be
4 deposited in the state treasury and credited to the trust.
5 These receipts are appropriated to the board for the purposes of
6 sections 298. 291 to 298. 298.
7 Sec. 4. [EFFECTIVE DATE. ]
8 Section 2 is effective the dsy following final enactment.
9 ARTICLE 9
10 MINNESOTA AGRICULTURAL AND ECONOMIC DEVELOPMENT PROGRAM
11 Section 1. Minnesota Statutes 1986, section 41A.01, is
12 amended to read: �
13 41A.01 [PURPOSE. J
14 Sections 41A.01 to 4�A.-96 41A.08 provide a-fran�eaerk for an
15 agricultural reae�ree-�ean-gt�arer�ty-pregra�=-the-ptsrpeaea-ef
16 Mhtek-ere-te-f�rtker-the-dede�ep�nent-ef-the-stete1�-agrie��t�re�
17 re�e�ree�-aad-in�preve-the-n�arket-fer-tt�-egrten�tnre�
18 prod�et� and economic development in the state. All credit
19 advanced pursuant to loan guaranty commitments is to be secured
20 by subrogation of the state to mortgage security and other
21 security interests granted to the private lender, in proportion
22 to the amount advanced by the state. A �ear�-g�areretp board is
23 established to investigate the feasibility of each project, its
24 conformity to public policy and to environmental standards, the
25 qualifications of the owners, operators, and lenders, and the
26 nature and extent of the security, prior to cammitment. The
27 board shall also seek to secure financial participation by
28 private persons not supported by the guaranty, to assure that in
29 these respects each project satisfies and will continue to
30 satisfy criteria which are adequate in the judgment of the board.
31 Sec. 2. Minnesota Statutes 1986, section 41A.02,
32 subdivision 3, is amended to read:
3 3 Subd. 3 . [A6R�@H��PEJRA�-R$9AHR2£-�9AN-8T3ARliN�� MINNESOTA
34 AGRICULTURAL AND ECONOMIC DEVELOPMENT HOARD; HOARD. ]
35 "Agrie��tnra�-reaee�ree-�ean-gaarenty Minnesota agricultural and
36 economic development board" or "board" �ean� consists of the
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1 commissioner of finance as chair, the commissioner of
2 agriculture, the-ee�iaaiener-ef-eo�eree; the commissioner of
3 energy and economic development, a�d the director of the
4 pollution control agency, the president of the Greater Minnesota
5 Corporation, and two public members with experience in finance,
6 appointed by the Greater Minnesota Corporation.
7 Sec. 3. Minnesota Statutes 1986, section 41A.02,
8 subdivision 4, is amended to read:
9 Subd. 4. [�6R�@����RA�-R£S6�ReE-�6�i�i-6H�N�� MINNESOTA
10 AGRICULTURAL AND ECONOMIC DEVELOPMENT FUND; BHARAN�� DEVELOPMENT
11 FUND. ] "Agrien�tnre�-reaettree-�eQn-gt�aranty Minnesota
12 agricultural and economic development fund" or "gtsarer�ty
13 development fund" means the fund created by section 41A.05.
14 Sec. 4. Minnesota Statutes 1986, section 41A.02,
15 subdivision 6, is amended to read:
16 Subd. 6. [AGRICULTURAL RESOURCE PROJECT; PROJECT. ]
17 "Agricultural resource project" or "project" means � any
18 facility, or portion of a facility, located in the state which
19 is operated or to be operated primarily for the production from
20 agricultural resources of marketable products, ( 2) buildings,
21 equipment, and land used for the commercial production of
. 22 turkeys or turkey products, ( 3) a facility or portion of a
23 facility used for the commercial production of fish or of
24 products made from commercially-produced fish or rough fish, as
25 defined in section 97A.015, subdivision 43, that are not
26 commercially produced, or ( 4) real or personal property used or
27 useful in connection with a revenue-producing enterprise, or a
28 combination of two or more revenue-producing enterprises engaged
29 in a business, that is not used for the production of livestock,
30 other than poultry, or for the production of crops, plants, or
31 milk. The land in clause ( 2) is limited to land on which
32 buildings and equipment are situated and immediately surrounding
33 land used for storage, waste disposal, or other functions
34 directly related to the commercial production of turkeys or
35 turkey products at that project site. The land in clause ( 2)
36 does not include land used for the growing or raising of crops
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1 or the grazing of livestock other than poultry. A project
2 includes a facility or portion of a facility for mixing or
3 producing substances to be mixed with other substances for use
4 as a fuel or as a substitute for petroleum or petrochemical
5 feedstocks.
6 Sec. 5. Minnesota Statutes 1986, section 41A.02,
7 subdivision 11, is amended to read:
8 Subd. 11. [LENDER. ] "Lender" means a corporation or any
9 investment or commercial banking institution, savings and loan
10 institution, insurance company, investment company, er other
11 financial institution or institutional investor making,
12 purchasing, or participating in a loan or any part of a loan, or
13 a public entity authorized to make agricultural loans.
14 Sec. 6. Minnesota Statutes 1986, section 41A.02, is
15 amended by adding a subdivision to read:
16 Subd. 16. [ELIGIBLE SMALL BUSINESS. � "Eligible small
I7 business" means:
18 (1) an enterprise determined by the board to constitute a
19 small business concern as defined in regulations of the United
20 States Small Husiness Administration under Onited States Code,
21 title 15, sections 631 to 647; or
2�2 �2) a business eligible to receive assistance under section
23 12.
24 Sec. 7. Minnesota Statutes 1986, section 41A.02, is
25 amended by adding a subdivision to read:
26 Subd. 17. [SMALL BUSINESS DEVELOPMENT LOAN. ] "Small
27 business development loan" means a loan to a business that is an
28 "eligible smal� business" to finance capital expenditures on an
29 interim or long-term basis to acquire or improve land, acquire,
30 construct, rehabilitate, remove, or improve buildings, or to
31 acquire and install fixtures and equipment useful to conduct a
32 small business, including facilities of a capital nature useful
33 or suitable for a business engaged in an enterprise promoting
34 employment including, without limitation, facilities included
35 within the meaning of the term "project" as defined in sections
36 474.02, subdivisions 1 to lf, and 474.03, subdivision 4.
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1 Sec. 8. [ 41A.021] [SUCCESSOR STATUS. ]
2 The board is the leqal successor in all respects of the
3 agricultural resource loan guarantv board established bv Laws
4 1984, chapter 502, article 10, and all bonds, resolutions,
5 contracts, and liabilities of the aqricultural resource loan
6 cluaranty board are the bonds, resolutions, contracts, and
7 liabilities of the board as renamed and reconstituted bv section
8 41A.02, subdivision 3 .
9 Sec. 9. [41A.022] [MINNESOTA ENERGY AND ECONOMIC
10 DEVELOPMENT AUTHORITY; SUCCESSOR STATUS. ]
11 The board is the legal successor in all respects of the
12 Minnesota energy and economic development authoritv under the
13 general bond resolution for the Minnesota small business
14 development loan program, as amended and restated by the
15 authority on September 24, 1986. All bonds, resolutions,
16 contracts, and liabilities of the Minnesota ener y and economic
17 development authority relating to the Minnesota small business
18 development loan program are the bonds, resolutions, contracts,
19 and liabilities of the Minnesota agricultural and economic
20 development board.
21 Sec. 10. [41A.023J [POWERS. ]
22 In addition to other powers granted bv �his cha ter, the
23 board may:
24 ( 1) sue and be sued;
25 ( 2) acquire, hold, lease, and transfer any interest in real
26 and personal propertv for its corporate pur oses;
Z7 �3) sell at public or private sale anv instrument or
2� obligation evidencing a loan;
29 ( 4) obtain insurance on its property;
30 (5) obtain municipal bond insurance, letters of credit,
31 surety obligations, or similar agreements from financial
32 institutions;
33 ( 6) enter into other agreements or transactions, without
34 regard to chapter 16H, that the board considers necessarv or
35 appropriate to carry out the pur oses of this cha ter with
36 federal or state agencies, political subdivisions of the state,
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1 or other persons, firms, or corporations;
2 (7) establish and collect fees without regard to chapter 14
3 and section 16A.128;
4 (8) accept appropriations, gifts, grants, and bequests;
5 (9) use money received from any source for any legal
6 purpose or program of the board;
7 (10) participate in loans for agricultural resource
8 projects in accordance with section 11;
9 (11) provide small business development loans in accordance
10 with section 12; and
11 (12) guarantee or insure bonds or notes issued by the board.
12 Sec. 11. [41A.035 ] [AGRICULTURAL RESOURCES LOAN
13 PARTICIPATION. ]
14 The board may participate in loans made to finance
15 agricultural resource projects by purchasing from a lender up to
16 75 percent of the amount of each eligible loan. If the loan
17 participated in is for $500,000 or less, the loan may be for 100
18 percent of the cost of the project. If the loan participated in
19 exceeds $500,000, the loan may not exceed 80 percent of the cost
,
20 of the project. The lender shall service the loan or cause it
21 to be serviced in a manner that equally protects the lender ' s
22 and the board' s interests. .
23 Sec. 12. [41A.036] [SMALL BUSINESS DEVELOPMENT LOANS. ]
24 Subdivision 1. [LOANS; LIMITATIONS. ] (a) The board may
25 make, purchase, or participate with financial institutions in
26 making or purchasing small business development loans not
27 exceeding $1,000,000 in principal amount with respect to small
28 busiriess loans made or purchased by the board and not exceeding
29 $1,000,000 principal amount with respect to the board' s share
30 when the board participates in making or purchasing small
31 business loans.
32 (b) With respect to loans that the board makes or purchases
33 or participates in, the board may determine or provide for their
34 servicing, the percentage of board participation, if any, the
35 times the loans or participations are payable and the amounts of
36 payment, their amount and interest rates, their security, if
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1 any, and other terms, conditions, and rovisions necessarv or
2 convenient in connection with them and mav enter into all
3 necessary contracts and security instruments in connection with
4 them. The board may enter into commitments to purchase or
5 participate with financial institutions or other persons upon
6 the terms, conditions, and provisions determined by it. Loans
7 or participations may be serviced bv financial institutions or
8 other persons designated by the board.
9 (c) The board shall obtain the best available security for
10 all loans. The board mav provide for or require the insurance
11 or_guaranteeing of the loans or board partici ations in whole or
12 in part by the federal government or a department, aqency, or
13 instrumentality of it, by an appropriate board account, or by a
14 private insurer.
15 Subd. 2 . [SMALL BUSINESS DEVELOPMENT LOANS;
16 PREFERENCES. ] The following eligible small businesses have
17 preference among all business applicants for small business
18 development loans:
19 (1) businesses located in rural areas of the state that are
20 experiencing �the most severe unemplovment rates in the state;
21 ( 2) businesses that are likelv to expand and provide
22 additional permanent emplovment in rural areas of the state;
23 �3) businesses located in border communities that
24 experience a competitive disadvantaqe due to location;
25 ( 4) businesses that have been unable to obtain traditional
26 financial assistance due to a disadvantaaeous location, minoritv
27 ownership, or other factors rather than due to the business
28 having been considered a poor financial risk;
29 ( 5) businesses that utilize state resources and reduce
30 state dependence on outside resources, and that produce products
31 or services consistent with the long-term social and economic
32 needs of the state; and
33 (6) businesses located in designated enterprise zones, as
34 described in section 273.1312, subdivision 4.
35 Subd. 3. [LOCAL GOVERNMENTAL UNIT SPONSOR; RESOLUTION. ] A
36 business applying for a loan must be sponsored by a resolution
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1 of the governing body of the local governmental unit within
2 whose jurisdiction the project is located. For purposes of this
3 paragraph, "loc.al governmental unit" means a home rule charter
4 or statutory city when the project is located in an incorporated
5 area, a county when the project is located in an unincorporated
6 area, or an American Indian tribal council when the project is
� 7 located within a federally recognized American Indian
8 reservation or community.
9 Sec. 13 . Minnesota Statutes 1986, section 41A.04,
10 subdivision 1, is amended to read:
11 Subdivision 1. [REQUIREMENTS. � (a) Any applicant may file
12 a written application with the state commissioner of energy and
13 economic development on behalf of the board, to be considered by
14 the egrrees�t�ra�-reaenree-�ean-g�aranty board, for a guaranty by
15 the state of a portion of a loan or for issuance of bonds for an
16 agricultural resource project. In general, the application must
17 provide information similar to that required by an investment
18 banking or other financial institution considering such a
19 project for debt financing. Specifically, each application must
20 include in brief but precise form the following information, as
21 supplied by the applicant, the borrower, or the lender:
22 (1) a description of the scope, nature, extent, and
23 location of the proposed project, including the identity of the
24 borrower and a preliminary or conceptual design of the project;
25 ( 2) a description of the technology to be used in the
26 project and the prior construction and operating experience of
27 the borrower with such projects;
28 (3) a detailed estimate of the items comprising the total
29 cost of the project, including escalation and contingencies,
30 with explanation of the assumptions underlying the estimate;
31 ( 4) a general description of the financial plan for the
32 project, including the mortgage and security interests to be
33 granted for the security of the guaranteed loan or the bonds,
34 and all sources of equity, grants, or contributions or of
35 borrowing the repayment of which is not to be secured by the
36 mortgage and security interests, or, if so secured, is expressly
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1 subordinated to the guaranteed loan;
2 ( 5) an environmental report analyzing potential
3 environmental effects of the project, any necessary or proposed
� 4 mitigation measures, and other relevant data available to the
5 applicant to enable the board to make an environmental
6 assessment;
7 (6) a list of applications to be filed and estimated dates
8 of approvals of permits required by federal, state, and local
9 government agencies as conditions for construction and
10 commencement of operation of the project;
11 (7) an estimated construction schedule;
12 (8) an analysis of the estimated cost of production of and
13 market for the product, including economic factors justifying
14 the analysis and proposed and actual marketing contracts,
15 letters of intent, and contracts for the supply of feedstock;
16 (9) a description of the management experience of the
17 borrower in organizing and undertaking similar projects;
18 (10) pro forma cash flow statements for the first five
19 years of project operation including income statements and
20 balance sheets;
21 (11) a description of the borrower ' s organization and,
22 where applicable, a copy of its articles of incorporation or
23 partnership agreement and bylaws;
24 (12) the estimated amount of the loan or bonds and
25 percentage of the guaranty requested, the proposed repayment
26 schedule, and other terms and conditions and security provisions
27 of the loan;
28 (13) an estimate of the amounts and times of receipt of
29 guaranty fees, sales and use taxes, property tax increments, and
30 any other governmental charges which may be available for the
31 support of the �tate-g�arentp agricultural development fund as a
32 result of the construction of the project, with an analysis of
33 the assumptions on which the estimate is based;
34 ( 14) a copy of any lending commitment issued by a lender to
35 the borrower;
36 (15) a statement from the lender, if identified, as to its
86
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1 general experience in financing and servicing debt incurred for
2 projects of the size and general type of the project, and its
3 proposed servicing and monitoring plan; and
4 ( 16) additional information required by the board.
5 (b) �he-app�ieant-aha��-pay-�pea-fi�ing-ef-the-epp�teatten
6 et-fee-eqtsa�-te-.-�5-pereent-ef-the-an�ettnt-ef-the-�ean-grsara�ty-er
7 bend-req�eate8.---�Pke-fee-aha��-be-patd-te-tke-ee�i�atener-ef
8 ftr�anee-ared-depeaitee2-tn-the-genera�-ft�nd.---�f-the-beard
9 deter�ir�ea-not-te-iaat�e-a-eenutitmer�t-fer-the-pre�eet=-the-fee
10 ahet��-be-refttnded-te-the-app�ieantT-�eaa-the-beerd��-eest-ef
11 preee��tng?-reertewing;-and-ede��ating-the-epp�seatien.---�f-the
12 beard-saactes-a-ee�unitn�er�t-fer-the-pre�eet-er�d-the-epp�teatten
13 fee-exeeed�-the=beere2�a-eeat-ef-preeeaaing�-redtearng=-ar�d
14 eee�tstttsr�g-the-app�seatienT-the-be�er�ee-sha��-be-trarcaferre8
15 fren�-the-genera�-f�ad-te-the-pre�eet-aeee�nt-ia-the-gtserentp
16 f�nd-end-eredited-agair�at-tke-an�eant-ef-the-een�n�tt�erct-fee
17 reqtsired-ia-�eetien-4�A:93=-arsbdidraten-3�-e�a�t�e-f��.---�he
18 eetsrty-er-rtsre�-deae�epuent-finanee-atstherrty-�ey-req�cire-tke
19 propeaed-berrearer-nrcder-the-pre�eet-te-pay-the-epp�ieatten-fee.-
20 fe� If the application is made by an appTicant other than
21 the county or rural development finance authority and tax
22 increment financing is to be used for the project, the
23 application must include a copy of a resolution adopted by the
24 governing body of the county or rural development finance
25 authority in which the project is located. The resolution must
26 authorize the use of tax increment financing for the project as
27 required by section 41A.06, subdivision 5.
28 Sec. 14. Minnesota Statutes 1986, section 41A.05,
29 subdivision 1, is amended to read:
30 Subdivision 1. [ESTABLISHMENT OF FUND. ] Per-the-p�rpe�e-ef
31 dede�opircg-the-atete�a-agrie��t�ra�-reaenreea-by-extendtag
32 eredit-en-ree�-e�tate-aee�rttp=-the-agrie��t�ra�-reae�ree-�oan
33 gaeraaty The Minnesota agricultural and economic development
34 fund is established as a special and dedicated fund to be held
35 and invested separately from all other funds of the state. All
36 money appropriated to the fund, and all guaranty fees, retail
87
S.F. No. 1 '
1 sales taxes, property tax increments, and other money from any
2 source which may be credited to the fund p�ra�ant-te-�aa-er
3 p�r��ant-te-the-ter�a-ef-gre�ta7-eontrtb�ttena;-er-eentreeta are
4 appropriated aad-aha��-re�at�-adaz�ab�e-fer-the-p�rpeaea-ef-the
5 f��d-�nti�-theae-pnrpeaea-hede-bee�-fn��p-aeee�p�tahed to the
6 board to carry out the purposes of this cha ter. The board
7 may maintain or establish within the g�aranty Minnesota
8 agricultural and economic development fund reserve
9 f�nd� accounts, project accounts, trustee accounts, special
10 guaranty fund accounts, or other restrictions it determines
11 necessary or appropriate te-earry-e�t-the-pnrpeaea-ef-thia
12 ehepter.---$xeept-Qa-etkeratae-prevtded-t�-thr�-aeetien=-tke-f��d
13 �ay-be-�aed-en�y-fer-paping-Q�e�nta-d�e-�nder-�een-gnaranttea
14 and-prinetpa�-and-rntereat-aaatatanee-eontraeta-entered-tnte-by
15 the-atate=-p�raaa�t-te-the-agrre��t�ra�-reae�ree-�ean-g�arQnty
16 pregra�. The board may enter into pledge and escrow agreements
17 or indentures of trust with a trustee for the purpose of
18 maintaining the accounts.
19 Sec. 15. Minnesota Statutes 1986, section 41A.05,
20 subdivision 2, is amended to read:
21 Subd. 2. [ ISSUANCE OF BONDS. ] (a) S�b�eet-te-�eette�
22 �6A.-98=-npon-app�ieatte�-p�ra�nat-to-aeetten-4�A:84= The board
23 by resolution may exercise the powers of a rural development
24 authority under sections 362A.01 to 362A.05 and the powers of a
25 municipality under chapter 474 for the purposes of predtding
26 �eney-te-pey-the-eeat�-ef financing a project, including the
27 issuance of bonds and the �ean application of the bond proceeds
28 pursuant to a lease, loan, loan guaranty, loan participation, or
29 other agreement. The bonds must be issued, sold, and secured on
30 the terms and conditions and in the manner determined by
31 resolution of the board. Seetie�� Section 16A.80 end-4�4.-�3-de
32 does not apply to the bonds. Notwithstanding subdivision 1, a
33 reserve established for the bonds provided by the borrower,
34 including out of bond proceeds, may be deposited and held in a
35 separate account in the g�araaty Minnesota agricultural and
36 economic development fund and applied to the last installments
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1 of principal or interest on the bonds, subject to the reserves
2 being withdrawn for any purpose permitted by subdivision 1. The
3 board may by resolution or indenture pledge any or all amounts
4 in the g�arerctp fund, including any reserves and investment
5 income on amounts in the fund, to secure the payment of
6 principal and interest on any or all series of bonds, upon the
7 terms and conditions as provided in the resolution or
8 indenture. To the extent the board deems necessary or desirable
9 to prevent interest on bonds from becoming subject to federal
10 income taxation, ( 1) the amounts in the g�arenty fund shall be �
11 invested in obligations or securities with restricted yields and
12 ( 2) the investment income on the amounts are released from the
13 pledge securing the bonds or loan guaranty and appropriately
14 applied to prevent taxation.
15 (b) Bonds issued pursuant to this chapter are not general
16 obligations of the state or the board. The full faith and
17 credit and taxing powers of the state and tHe board are not and
18 may not be pledged for the payment of the bonds. No person may
19 compel the levy of a tax for the payment or �compel the
20 appropriation of money of the state or the board for the payment
21 of the bonds, except as specifically provided in this chapter. �
22 (c) �he-iaa�enee-ef-bend�-ptsr��ar�t-te-tkia-�nbdtdi�ier�-ta
23 attb�eet-te-aeetien�-4�4:�8-te-4�4r�5.- For purposes of
24 sections 4��4.-�6 474A.01 to 4�4.-�9 474A. 21, the board is a local
25 issuer and may apply for allocations of authority to issue
26 private activity obligations and may enter into an agreement for
27 the issuance of obligations by another issuer.
28 Sec. 16. [41A.065] [CERTIFIED DEVELOPMENT COMPANY. ]
29 � Subdivision 1. (PURPOSE; OBJECTIVES. ] The board may
30 create, promote, and assist a development company that will
31 qualify as a certified development company for the purposes of
32 United States Code, title 15, section 697, and Code of Federal
33 Regulations, title 13, section 108. 503 .
34 The board shall utilize the development company program to
35 stimulate the state' s economic activity.
36 The development company and its directors and officers
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1 shall comply with the organizational, operational, regulatory,
2 and reporting requirements as promulgated by the United States
3 Small Business Administration and the guidelines contained in
4 the bylaws, articles of incorporation, and standard operatinq
5 procedure prescribed by the Small Business Administration.
6 Subd. 2. [CAPITAL, LOAN LIMITS; MEMBERSHIP REQUIREMENTS. ]
7 The capital for a certified development com any must be derived
8 from corporate holders or members, each of whom must not have
9 more than ten percent of the votinq control of the develo ment
10 company. The company must have a minimum of ten members. The
11 members of the compan_y from each economic develo ment reaion
12 must represent, to the greatest extent ractical, the same
13 proportion of the membership of the companv as the population of
14 the economic development reqion is of the population of the
15 state. The loan limit of each member must be established at the
16 time of its acceptance as a member and must be com uted on the
17 basis of the financial information contained in or made a art
18 of its application for membership. Loan limits must be
19 established at the thousand dollar amount nearest the amount
20 computed in accordance with the provisions of the articles of
21 incorporation and this section.
22 Subd. 3. [MEMBERS. � Members must be representatives of
23 local government, communitv organizations, financial
24 institutions, and businesses in Minnesota and must, upon
25 application, have been accepted for membership b� a majority
26 vote of the members of the board of directors present at a
27 regular or special meetina of the board at which there is a
28 quorum. A "financial institution" is a business organization
29 recognized under Minnesota or federal law as a banking
30 institution, trust company, savings and loan association,
31 insurance companv, or a corporation, partnership, foundation or
32 other institution licensed to do business in the state of
33 Minnesota and engaged primarilv in lending or investinq monev.
34 Subd. 4. [MEMBERSHIP APPLICATIONS. � Applications for
35 membership must be submitted to the development company' s board
36 of directors on forms provided by the cor oration and
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1 accompanied by additional information as the form may require.
2 Application forms must provide that if the application is
3 approved and the applicant accepted for membership by the
4 development company' s board of directors before withdrawal of
5 the application, the applicant agrees to become a member upon
6 the acceptance and to assume the rights and obligations of a
7 member. Notice of approval or rejection of an application must
8 be forwarded, by certified or registered United States mail, to
9 the applicant for the attention of the person signing the
10 application, within 15 days following the date when the approval
11 or rejection is made. Approval of the application constitutes
12 acceptance of the applicant as a member of the corporation.
13 Subd. 5. [OFFICERS. J The executive officers of the
14 development company are a president, one or more vice presidents
15 including the executive vice president, a secretary, and a
16 treasurer. None of the officers, except the president, need be
17 directors. One person may hold the offices and perform the
18 duties of any two or more of the offices. The development
19 companv' s board of directors bv majority vote may leave unfilled
20 for any period it may fix any office except that of president,_
21 treasurer, or secretary.
22 Subd. 6. [ASSISTANCE. ] The commissioner of energy and
23 economic development shall make available the prof�essional staff
24 of the department to provide services to the development compan�
25 including, but not limited to, accounting, legal, and business
26 assistance services. The staff must have the capability to
27 package, process, close and service loans made through the
I 28 development company. � .
29 Subd. 7. [REPORTS. ] The development company shall submit
30 to the Small Business Administration annual reports on its
31 operation. When requested by the Small Business Administration,
32 interim reports of a similar nature must be provided. The
33 re orts must be provided in accordance with the instructions and
34 attachments set forth bv the Small Business Administration. The
35 development company shall comply with all regulations_issued
36 under the small business investment act of 1958, as amended, as
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Il well as applicable state and federal laws affecting its
Z operation.
3 Subd. 8. [REVOLVING ACCOUNT. � The development company mav
4 charge a one-time processing fee up to the maximum allowed by
5 the Small Business Administration on a debenture issued for loan
6 purposes. In addition, a fee for servicing loans may be imposed
7 up to the maxfmum allowed by the Small Husiness Administration
8 based on the unpaid balance of each debenture. These fees must
9 be deposited in the state treasury and credited to a special
1D; account. Money in the account is appropriated to the board to
]:T�. pay the costs of administering the program, including ersonnel
T.� costs; compensate members of the board of directors under
l3 section 15. 0575,� subdivision 3, and to create and operate a pool
L4- of money for investment in projects that further the purposes of
]�5�: this section.
1.6� Sec. 17. Minnesota Statutes 1986, section 41A.08, is
l'?% amended to read:
1:8d 41A.08 [STAFF. J
193 Subdivision 1. [EMPLOYEES. ] Subject to all other
2Di applicable laws governing employees of or employment by a
�'1': department or agency of the state, the commissioner of energy
22 and economic development, on behalf of the board, may retain or
Z�: employ the officers, employees, agents, contractors, and
� consultants the commissioner determines necessary or appropriate
2�: to discharge the functions of the board in respect to the
2� agricultural resource loan program. The commissioner shall
2fi define their duties and responsibilities.
2�; Subd. 2. [EXECUTIVE DIRECTOR. ] The commissioner shall
2�: employ, with the concurrence of the board, an executive
30:: director. The executive director shall perform the duties that
31a the board may require in carrying out its responsibilities. The
3� executive director ' s position is in the unclassified service.
33' Sec. 18. [RESPONSIBILITIES TRANSFERRED TO MINNESOTA
3#-� DEVELOPMENT BOARD. j
3�� Subdivision 1. [TRP,NSFER. ] The responsibilities under the
3�6 general bond resolution for the Minnesota small business
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1 development loan program, as amended and restated by the
2 authority on September 24, 1986, and the responsibilities for
3 the certified development company program under section 116M.05
4 are transferred from the Minnesota energy and economic
5 development authority to the Minnesota agricultural and economic
6 development board. Money designated or committed to the small
7 business development loan program is transferred to the
8 Minnesota agricultural and economic development fund, to be
9 credited to a separate account to be used to carry out the
10 Qurposes specified in section 9. This transfer includes four
11 classified positions and one unclassified position from the
12 financial management division of the department of energy and
13 economic development. Minnesota Statutes, section 15.039
14 applies to the transfer of responsibilities.
15 Subd. 2. [POWERS CONTINUED. ] To carry out the purposes
16 specified in sections 9 and 19, the board may exercise the
17 powers granted to the Minnesota energy and economic development
18 authority under Minnesota Statutes 1986, sections 116M.06,
19 116M.07, and 116M.08, notwithstanding the repeal of those
20 sections.
21 Sec. 19. [LOAN REPAYMENTS. ]
22 The commissioner of energy and economic development shall
23 credit money received before July 1, 1987, from loan repayments,
24 earnings, releases from insurance reserve accounts, and other
25 income from the following programs to the Minnesota agricultural
26 and economic development fund: the special assistance program
27 under section 116M.07, subdivision 11, except for the small
28 business development loans; the technology product loan program;
29 the tourism loan program created under section 116M.07; the
30 energy loan insurance program under section 116M.11; the energy
31 development fund program under section 116M.12; and the
32 Minnesota fund program under sections 472.11 to 472 .13. The
33 commissioner of energy and economic development shall credit
34 money received on or after July 1, 1987, to the greater
35 Minnesota fund.
36 Sec. 20. [HP,ZARDOUS WASTE PROCESSING FACILITY LOANS. ]
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1 Subdivision 1 . [AUTHORITY TO MAKE LOANS. ] The Minnesota
2 agricultural and economic development board may make, urchase,
3 or participate in making or purchasinq hazardous waste
4 processing facility loans in any amount, and may enter into
5 commitments therefor . A private person ro osinq to develo and
6 operate a hazardous waste processing facility is eli ible to
7 apply for a loan under this subdivision. A lications must be
8 made to the Minnesota aqricultural and economic development
9 board. The Minnesota agricultural and economic development
10 board shall forward the applications to the waste management
11 board for review pursuant to section 115A.162. If the waste
12 management board does not certifv the application, the Minnesota
13 agricultural and economic development board may not a rove the
14 application nor make the loan. If the waste manaqement board
15 certifies the application, the Minnesota agricultural and
16 economic development board shall approve the ap lication and
17 make the loan if money is available for it and if the Minnesota
18 agricultural and economic development board finds that:
. 19 (1) development and operation of the facilitv as roposed
20 by the applicant is economicallv feasible;
21 (2) there is a reasonable expectation that the princi al
22 and interest on the loan will be fullv re aid; and
23 (3) the facility is unlikely to be developed and o erated
24 without a loan from the Minnesota agricultural and economic
25 development board. .
26 The Minnesota agricultural and economic development board
27 and the waste management board shall establish coordinated
28 procedures for loan application, certification, and a roval.
29 The Minnesota agricultural and economic development board
30 may use the Minnesota agricultural and economic development fund
31 to_ provide financial assistance to anv person whose hazardous
32 waste processing facility loan application has been certified bv
33 the waste management board and ap roved bv the Minnesota
34 agricultural and economic development board, and for this
35 purpose may exercise the powers granted in Minnesota Statutes
36 1986, section 116M. 06, subdivision 2, with respect to anv loans
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1 made or bonds issued under this subdivision regardless of
2 whether the applicant is an eligible small business.
3 The Minnesota agricultural and economic development board
4 may issue bonds and notes in the aggregate principal amount of �
5 $10,000,000 for the purpose of making, purchasing, or
6 participating in making or purchasing hazardous waste processing
7 facility loans.
8 The Minnesota agricultural and economic development board
9 may adopt emergency rules under sections 14.29 to 14.36 to
10 implement the loan program under this subdivision. Emergency
11 rules adopted by the Minnesota agricultural and economic
12 development board remain in effect for 360 days or until
13 permanent rules are adopted, whichever occurs first.
14 Subd. 2. [MINNESOTA ENERGY AND ECONOMIC DEVELOPMENT
15 AUTHORITY; SUCCESSOR STATUS. ] Notwithstanding the repeal of
16 section 116M.07, subdivision 9, the Minnesota agricultural and
17 economic development board is the legal successor� in all
18 respects of the Minnesota energy and economic development
19 authority for the hazardous waste processing facility loan
20 program for a project o� facility described under Minnesota
21 Statutes 1986, section 116M.03, subdivision 15, with respect to
22 which the Minnesota energy and economic development authority
23 passed a preliminary resolution before May 1, 1987. All
24 resolutions of the Minnesota energy and economic development
25 authority relating to the projects or facilities are the
26 resolutions of the Minnesota agricultural and economic
27 development board.
28 Sec. 20. [INSTRUCTION TO REVISOR. ]
29 The revisor of statutes is directed to change the phrase
� 30 "agricultural resource loan guaranty board" wherever it appears
31 in Minnesota Statutes to "Minnesota agricultural and economic
32 development board" in the next and subsequent editions of the
33 statutes.
34 Sec. 21. [ INSTRUCTION TO REVISOR. ]
35 The revisor of statutes is directed to change the phrase
36 "agricultural resource loan guarantv fund" wherever it appears
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S.F. No. 1
1 in Minnesota Statutes to "Minnesota aqricultural and economic
2 development fund" in the next and subseQUent editions of the
3 statutes.
4 Sec. 22. [P,PPROPRIATION. ]
5 $400,000 is transferred from the economic develo ment fund
6 to the Minnesota agricultural and economic develo ment fund.
7 $200,000 is for fiscal year 1988 and $200,000 is for fiscal year
8 1989.
9 Sec. 23. [EFFECTIVE DATE. ]
10 Sections 18 and 19 are effective the dav followina final
11 enactment.
12 ARTICLE 10
13 EDUCATION AND TRAINING PROGRAMS
14 Section 1. Minnesota Statutes 1986, section 116L.02, is
15 amended to read:
16 116L.02 [d6HS JOB SKILLS PARTNERSHIP PROGRAM. )
17 The Minnesota job skills partnership program is created to
18 act as a catalyst to bring together employers with specific
19 training needs with educational or other nonprofit institutions
20 which can design proqrams to fill those needs. The partnership
21 shall work closely with employers to train and place workers in
22 identifiable positions as well as assisting educational or other
23 nonprofit institutions in developing training programs that
24 coincide with current and future employer requirements. The
25 partnership shall provide grants to educational or other
26 nonprofit institutions for the purpose of training displaced
27 workers. A participating business must match the grant-in-aid
28 made by the Minnesota job skills partnership. Preference must
29 be given to a business located in a rural area. The match may
30 be in the form of funding, equipment, or faculty.
31 Sec. 2. Minnesota Statutes 1986, section 116L.03,
32 subdivision 2, is amended to read:
33 Subd. 2. [APPOINTMENT. ] Me�bera-ahe��-be-appetnted-aa
34 fe��easr--fe�r-me�bera-appeinted-by-tke-apeaker-ef-the-hoa�e;
35 ene-�e�ber-eppetnted-by-the-�inority-�ender-ef-the-he�ae;-fe�r
36 �e�bera-appei�ted-by-tke-�a�er=tp-�eeder-ef-the-�enate;-ene
96
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1 �e�nber-appetnted-by-tke-�nts�ortty-�eader-ef-the-aenete- The
2 Minnesota job skills partnership board consists of: eight
3 members appointed by the governor--eRd, the eenu�i�arer�er�-ef-tke
4 depart�eat� commissioner of energy and economic development,
5 ed�eatienT-and-?eb�-and-training the commissioner of jobs and
6 training, and the state director of vocational technical
7 education.
8 Sec. 3. Minnesota Statutes 1986, section 116L.03,
9 subdivision 1, is amended to read:
10 Subdivision 1. [MEMBERS. J The partnership shall be
11 governed by a board of �� 11 directors. �
12 Sec. 4. Minnesota Statutes 1986, section 116L.03,
13 subdivision 5, i�s amended to read:
14 Subd. 5. [TERMS. J The terms of appointed members shall be
15 for four years except for the initial appointments. �he-initsa�
16 appeintn�ent�-ef-the-apeaker-a�d-n�a�errty-�eader-aha��-be-Qa
17 fe��eM�---tae-n�e�bere-fer-tae-yeer�;-tae-n�en�ber�-fer-three-yeera
18 and-ene-n�e�nber-fer-fe�r-yeer�: The initial appointments of the
19 governor shall have the following terms: two members each for
20 oae, two, three, and four years.
21 Sec. 5. Minnesota Statutes 1986, section 116L.03,
22 subdivision 7, is amended to read:
23 Subd. 7. [OFFICES. ] The eenuei��sener-ef-�eba-and-trasning
24 higher education coordinating board sha11T-apen-req�estT provide
25 effiee-apaee-eae3-��sppert staff and administrative services for
26 the board.
27 Sec. 6. [136A.134J [GRANTS TO DISLOCATED RURAL WORKERS. ]
28 Subdivision 1. [ESTABLISHMENT OF PROGRAM. ] The higher
29 education coordinating board shall develop policies and
30 procedures to administer a dislocated rural worker grant progr_am
31 and to allocate proaram monev to eligible institutions and shall
32 supervise the operation of the program.
33 Subd. 2. [ELIGIBLE INSTITUTIONS. ] For purposes of this
34 section, "eligible institution" has the meaning given it in
35 section 136A. 101.
36 Subd. 3 . [P,PPLICANTS. ] A��licant may be considered for
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1 a dislocated rural worker grant if the applicant :
2 (1) is a resident of rural Minnesota;
3 ( 2) is enrolled in an adult farm manaqement proqram or a
4 program designed to provide preparation for available em lovment
5 within the local labor market or in an area to which the
6 individual is willing to relocate;
7 ( 3) has met the financial need criteria established bv the
8 board; and
9 ( 4) can demonstrate that one of the following criteria has
10 been met:
11 ( i) the applicant or applicant ' s spouse has been separated
12 from employment or has received a notice of separation from
13 employment as a result of job obsolescence, plant shutdown,
14 regional decline in the applicant ' s customarv occupation, or
15 industry slowdown, and the applicant or the a licant ' s s ouse
16 is unlikely to return to work for that employer or in that
17 occupation within 12 months following separat-ion from emplovment;
18 ( ii) the applicant is a displaced homemaker; or
19 (iii) the applicant or the applicant ' s spouse is a farmer
20 who can demonstrate severe household financial need.
21 Subd. 4. [PROGRAM RECIPIENTS. ] An eligible institution
22 shall select a recipient of a dislocated rural worker grant in
23 accordance with guidelines, policies, and rules established by
24 the board. The board may adopt emergencv rules for awardinq .
25 grants only for the fiscal vear beginning July 1, 1987.
26 Subd. 5. [PROGRAM COORDINATION; INFORMATION. J The board
27 shall develop and provide information to dislocated workers in
28 rural� areas about post-secondarv education opportunities and
29 student financial aid programs. The board shall also rovide
30 for the coordination of dislocated rural worker qrants with
31 other available student financial aid proqrams. Dislocated
32 rural worker grants must be awarded in a manner that maximizes
33 the use of existing federal and state student financial aid
34 programs.
35 Sec. 7. [REPEALER. ]
36 Minnesota Statutes 1986, section 116L. 03, subdivision 6, is
98 .
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' S.F. No. 1
1 repealed.
2 Sec. 8. Laws 1983, chapter 334, section 7, is amended to
3 read:
4 Sec. 7. [REPEALER. ]
5 Sections �-te-6 116L.01; 116L.02; 116L.03, subdivisions 1,
6 2, 3, 4, 5, and 7; 116L.04; and 116L.05, 1, 2, 3, 4, 5, and 7
7 are repealed June 30, �98� 1989.
8 Sec. 9. [SUPPLEMENTAL EDUCATION GRANT PROGRAM FUNDING. ]
9 $500,000 is appropriated from the general fund to the
10 higher education coordinating board for the dislocated rural
11 worker grant program established in section 3, to be available
12 until June 30, 1989. �
13 $1,000,000 is appropriated from the general fund to the
14 higher education coordinating board for the Minnesota job skills
15 partnership program. $500,00 is for fiscal year 1988 and
16 $500,000 is for fiscal year 1989.
�
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• s. F. :v0. �.
J ome �� Hughes
Pnsident of rhe Senata.
\
Fred C. tionon
Spsalter ojdu Hor�se oj8eprese�aaives,
Passed the Senate this 16 th daq of May in the year of Our Lord one thousand
• nine hundred and eighty-sevea. .
,
. Patrick E. Flahaven
Serntary of the Sennarre.
Paaaed the House of Be�reseatatives tl;is 18 th day of 1Kay m the pear of Our Lord
one thouaand nme hundred aad eightp•sevea.
.
srd �. Burdick
� CJtief Clerle,Xouse o�Repnsentetives.
APProved v� �.,�C� ����
. '
Rudy P p' h
Gouernor oj tlu State oj in sora.
Fil � �
, STATE QF MINNESOTA
� DEPARTMENT OF STA7E
'�' 1 hereby_ tertif�►,that this is. a
true and �campl�te copy of the Joan Anderson Growe
documen�t �es filed� � cecord in s«nr�ry ois�u.
this �€fice.�.
DATED: ` / ` 19��
.��
1 , se�reta ' �
r7 a at�.
_„
� � �. 100 .
.
BY �