The House of Representatives convened at 9:00 a.m. and was called to order by Phil Carruthers, Speaker of the House.

Prayer was offered by Harry J. Flynn, Archbishop of the Archdiocese of St. Paul and Minneapolis, St. Paul, Minnesota.

The roll was called and the following members were present:

Abrams	Erhardt	Johnson, R.	McCollum	Pelowski	Sykora
Anderson, B.	Erickson	Juhnke	McElroy	Peterson	Tingelstad
Anderson, I.	Evans	Kahn	McGuire	Pugh	Tomassoni
Bakk	Farrell	Kalis	Milbert	Rest	Tompkins
Bettermann	Finseth	Kelso	Molnau	Reuter	Trimble
Biernat	Folliard	Kielkucki	Mulder	Rhodes	Tuma
Bishop	Garcia	Kinkel	Mullery	Rifenberg	Tunheim
Boudreau	Goodno	Knoblach	Munger	Rostberg	Van Dellen
Bradley	Greenfield	Koskinen	Murphy	Rukavina	Vandeveer
Broecker	Greiling	Kraus	Ness	Schumacher	Wagenius
Carlson	Gunther	Krinkie	Nornes	Seagren	Weaver
Chaudhary	Haas	Kubly	Olson, E.	Seifert	Wejcman
Clark, K.	Harder	Kuisle	Olson, M.	Sekhon	Wenzel
Commers	Hasskamp	Larsen	Opatz	Skare	Westfall
Daggett	Hausman	Leighton	Orfield	Skoglund	Westrom
Davids	Hilty	Leppik	Osskopp	Slawik	Winter
Dawkins	Holsten	Lieder	Osthoff	Smith	Wolf
Dehler	Huntley	Lindner	Otremba, M.	Solberg	Spk. Carruthers
Delmont	Jaros	Long	Ozment	Stanek
Dempsey	Jefferson	Mahon	Paulsen	Stang
Dorn	Jennings	Mares	Pawlenty	Sviggum
Entenza	Johnson, A.	Mariani	Paymar	Swenson, H.

A quorum was present.

Clark, J.; Knight; Luther and Marko were excused.

Macklin was excused until 9:30 a.m. Workman was excused until 10:15 a.m.

The Chief Clerk proceeded to read the Journal of the preceding day. Juhnke moved that further reading of the Journal be suspended and that the Journal be approved as corrected by the Chief Clerk. The motion prevailed.

The following House Files were introduced:

Johnson, R.; Winter; Carruthers; Harder and Solberg introduced:

H. F. No. 3862, A bill for an act relating to public safety; providing for matching funds for federal disaster relief; appropriating money.

The bill was read for the first time and referred to the Committee on Ways and Means.

Dorn and Swenson, H., introduced:

H. F. No. 3863, A bill for an act relating to public safety; providing for matching funds for federal disaster relief; appropriating money.

The bill was read for the first time and referred to the Committee on Ways and Means.

McCollum, Greiling, Farrell, Kahn and Koskinen introduced:

H. F. No. 3864, A bill for an act proposing an amendment to the Minnesota Constitution, article I, sections 2, 6, 7, 8, 16, and 17; article IV, sections 5, 8, 21, 23, and 24; article V, sections 2, 3, 5, and 6; article VI, sections 4, 6, 9, 10, and 13; article VII, sections 1, 2, 3, 6, and 8; article VIII, sections 3 and 4; article XI, sections 7 and 13; and article XIII, sections 7 and 11; changing gender-specific language to gender-neutral language in the constitution.

The bill was read for the first time and referred to the Committee on Judiciary.

The following messages were received from the Senate:

Mr. Speaker:

I hereby announce the passage by the Senate of the following House File, herewith returned:

H. F. No. 2673, A bill for an act relating to public employment; increasing compensation for state employees on leave to serve as certified disaster service volunteers of the American Red Cross; amending Minnesota Statutes 1996, section 43A.185, subdivision 1.

Patrick E. Flahaven, Secretary of the Senate

Mr. Speaker:

I hereby announce that the Senate has concurred in and adopted the report of the Conference Committee on:

S. F. No. 2192.

The Senate has repassed said bill in accordance with the recommendation and report of the Conference Committee. Said Senate File is herewith transmitted to the House.

Patrick E. Flahaven, Secretary of the Senate

A bill for an act relating to corporations; clarifying the application of certain statutory requirements for corporations created by political subdivisions; authorizing the ratification of a nonprofit corporation by Brown county; amending Minnesota Statutes 1997 Supplement, section 465.715, subdivision 1.

March 25, 1998

The Honorable Allan H. Spear

President of the Senate

The Honorable Phil Carruthers

Speaker of the House of Representatives

We, the undersigned conferees for S. F. No. 2192, report that we have agreed upon the items in dispute and recommend as follows:

That the House recede from its amendment and that S. F. No. 2192 be further amended as follows:

Page 1, delete section 1 and insert:

"Section 1. Minnesota Statutes 1997 Supplement, section 465.715, is amended by adding a subdivision to read:

Subd. 1a. [APPLICATION.] Except as provided by subdivision 2, subdivision 1 only applies to a corporation for which a certificate of incorporation is issued by the secretary of state on or after June 1, 1997. A corporation that had been issued a certificate of incorporation before June 1, 1997, may continue to operate as if it had been created in compliance with subdivision 1. This subdivision expires July 1, 1999."

Amend the title as follows:

Page 1, line 7, delete "subdivision 1" and insert "by adding a subdivision"

We request adoption of this report and repassage of the bill.

Senate Conferees: Dennis R. Frederickson, Jim Vickerman and Steve Kelley.

House Conferees: Elaine Harder, Ann H. Rest and Ron Erhardt.

Harder moved that the report of the Conference Committee on S. F. No. 2192 be adopted and that the bill be repassed as amended by the Conference Committee. The motion prevailed.

S. F. No. 2192, A bill for an act relating to corporations; clarifying the application of certain statutory requirements for corporations created by political subdivisions; authorizing the ratification of a nonprofit corporation by Brown county; amending Minnesota Statutes 1997 Supplement, section 465.715, subdivision 1.

The bill was read for the third time, as amended by Conference, and placed upon its repassage.

The question was taken on the repassage of the bill and the roll was called. There were 90 yeas and 25 nays as follows:

Those who voted in the affirmative were:

Abrams	Erickson	Knoblach	Ness	Rhodes	Sykora
Anderson, B.	Finseth	Kraus	Nornes	Rifenberg	Tingelstad
Anderson, I.	Folliard	Kubly	Olson, E.	Rostberg	Tomassoni
Bakk	Goodno	Larsen	Olson, M.	Rukavina	Tompkins
Bettermann	Gunther	Leppik	Osskopp	Schumacher	Trimble
Biernat	Haas	Lieder	Osthoff	Seagren	Tuma
Boudreau	Harder	Lindner	Otremba, M.	Seifert	Tunheim
Bradley	Hasskamp	Mares	Ozment	Sekhon	Van Dellen
Broecker	Holsten	McElroy	Paulsen	Skare	Vandeveer
Carlson	Jaros	McGuire	Pawlenty	Slawik	Weaver
Daggett	Jennings	Milbert	Pelowski	Smith	Wenzel
Davids	Johnson, R.	Molnau	Peterson	Stanek	Westfall
Dehler	Juhnke	Mulder	Pugh	Stang	Westrom
Dempsey	Kalis	Munger	Rest	Sviggum	Winter
Erhardt	Kielkucki	Murphy	Reuter	Swenson, H.	Wolf

Those who voted in the negative were:

Clark, K.	Greenfield	Johnson, A.	Mahon	Paymar	Spk. Carruthers
Dawkins	Greiling	Kelso	McCollum	Skoglund
Delmont	Hausman	Koskinen	Mullery	Solberg
Dorn	Huntley	Leighton	Opatz	Wagenius
Entenza	Jefferson	Long	Orfield

The bill was repassed, as amended by Conference, and its title agreed to.

Mr. Speaker:

I hereby announce the passage by the Senate of the following House File, herewith returned, as amended by the Senate, in which amendments the concurrence of the House is respectfully requested:

H. F. No. 3184, A bill for an act relating to health; providing for voluntary reporting of alcohol abuse by a pregnant woman; requiring a report; proposing coding for new law in Minnesota Statutes, chapter 626.

Patrick E. Flahaven, Secretary of the Senate

Skoglund moved that the House concur in the Senate amendments to H. F. No. 3184 and that the bill be repassed as amended by the Senate. The motion prevailed.

H. F. No. 3184, A bill for an act relating to health; providing for voluntary reporting of alcohol abuse by a pregnant woman; providing for assessments and services; amending Minnesota Statutes 1996, section 13.99, by adding a subdivision; proposing coding for new law in Minnesota Statutes, chapter 626.

The bill was read for the third time, as amended by the Senate, and placed upon its repassage.

The question was taken on the repassage of the bill and the roll was called. There were 124 yeas and 0 nays as follows:

Those who voted in the affirmative were:

Abrams	Erhardt	Kahn	McElroy	Pelowski	Swenson, H.
Anderson, B.	Erickson	Kalis	McGuire	Peterson	Sykora
Anderson, I.	Evans	Kelso	Milbert	Pugh	Tingelstad
Bakk	Finseth	Kielkucki	Molnau	Rest	Tomassoni
Bettermann	Folliard	Kinkel	Mulder	Reuter	Tompkins
Biernat	Goodno	Knoblach	Mullery	Rhodes	Trimble
Boudreau	Greenfield	Koskinen	Munger	Rifenberg	Tuma
Bradley	Greiling	Kraus	Murphy	Rostberg	Tunheim
Broecker	Gunther	Kubly	Ness	Rukavina	Van Dellen
Carlson	Haas	Kuisle	Nornes	Schumacher	Vandeveer
Chaudhary	Harder	Larsen	Olson, E.	Seagren	Wagenius
Clark, K.	Hasskamp	Leighton	Olson, M.	Seifert	Weaver
Commers	Hausman	Leppik	Opatz	Sekhon	Wejcman
Daggett	Holsten	Lieder	Orfield	Skare	Wenzel
Davids	Huntley	Lindner	Osskopp	Skoglund	Westfall
Dawkins	Jaros	Long	Osthoff	Slawik	Westrom
Dehler	Jefferson	Macklin	Otremba, M.	Smith	Winter
Delmont	Jennings	Mahon	Ozment	Solberg	Wolf
Dempsey	Johnson, A.	Mares	Paulsen	Stanek	Spk. Carruthers
Dorn	Johnson, R.	Mariani	Pawlenty	Stang
Entenza	Juhnke	McCollum	Paymar	Sviggum

The bill was repassed, as amended by the Senate, and its title agreed to.

The following Conference Committee Report was received:

A bill for an act relating to housing; providing for review of certain allocations and compliance monitoring by the Minnesota housing finance agency; amending Minnesota Statutes 1996, section 462A.223, by adding subdivisions.

March 27, 1998

The Honorable Phil Carruthers

Speaker of the House of Representatives

The Honorable Allan H. Spear

President of the Senate

We, the undersigned conferees for H. F. No. 3145, report that we have agreed upon the items in dispute and recommend as follows:

That the Senate recede from its amendment and that H. F. No. 3145 be further amended as follows:

Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 1996, section 462A.223, is amended by adding a subdivision to read:

Subd. 3. [SUBMISSION DEADLINES.] In order to assist the Minnesota housing finance agency to comply with the reporting requirements of section 42 of the Internal Revenue Code of 1986, as amended, cities and counties to which low-income housing tax credits are reserved under section 462A.222, subdivision 1, shall submit required documents

relating to compliance, allocation or commitment, carryover, issuance, and audit or review and shall return unused tax credits to the Minnesota housing finance agency by the deadlines established in the agency's qualified allocation plan. Cities and counties to which low-income housing tax credits are reserved under section 462A.222 that fail to meet the deadlines established by the agency for the submission of required documents relating to allocation or commitment, carryover, issuance, and allocation reporting shall pay the fees established in the agency's qualified allocation plan. Pursuant to the qualified allocation plan, the agency may waive fees imposed for failure to meet the deadlines for submission of required documents.

Sec. 2. Minnesota Statutes 1996, section 462A.223, is amended by adding a subdivision to read:

Subd. 4. [REVIEW OF ALLOCATIONS, COMPLIANCE MONITORING.] The agency may review the allocation and compliance monitoring processes established by a city or county to which low-income tax credits are reserved under section 462A.222, subdivision 1, and may review documentation related to the allocations made to and the compliance monitoring of projects allocated credits from a city or county to which low-income tax credits are reserved under section 462A.222, subdivision 1.

Sec. 3. Minnesota Statutes 1996, section 474A.045, is amended to read:

474A.045 [SCORING SYSTEM FOR MANUFACTURING PROJECTS.]

The following criteria must be used in determining the allocation of small issue bonds for manufacturing projects. The issuer must prepare and submit to the commissioner a public purpose scoring worksheet that presents the data and methods used in determining the total score under this section. The total score is the sum of the following:

(1) the number of net direct new jobs in the state generated by the proposed project for the next two years per $100,000 of proposed allocation multiplied by 15;

(2) the number of direct jobs retained in the state due to the proposed project per $100,000 of proposed allocation multiplied by 15;

(3) the quotient of the total increase in net payroll generated in the state by the proposed project divided by the proposed bond allocation, multiplied by 100;

(4) the quotient of the estimated total net increase in property taxes generated in the state by the project in the first full year of operation divided by the proposed bond allocation, multiplied by 500; and

(5) the seasonally unadjusted unemployment rate in the community where the proposed project is located measured as a percent of the state's unemployment rate, multiplied by ten.

The community seasonally unadjusted unemployment rate used in determining the points under clause (5) must be the rate for the county in which the proposed project is located unless an accurate rate may be estimated for a smaller geographic area or census tract. The commissioner of economic security must approve the rate used when an unemployment rate other than that for a county is used.

If the manufacturing project will retain jobs and the total score includes points calculated under clause (2), the issuer must certify to the commissioner that the proceeds of the small issue bonds are required to retain those jobs. The commissioner shall submit the information relating to the retaining of jobs to the commissioner of trade and economic development. The commissioner of trade and economic development must verify that the proceeds of the small issue bonds are required to retain the jobs referred to in the certification prior to the awarding of any points under this section.

Sec. 4. Minnesota Statutes 1996, section 474A.061, subdivision 1, is amended to read:

Subdivision 1. [APPLICATION.] (a) An issuer may apply for an allocation under this section by submitting to the department an application on forms provided by the department, accompanied by (1) a preliminary resolution, (2) a statement of bond counsel that the proposed issue of obligations requires an allocation under this chapter, (3) the type of qualified

bonds to be issued, (4) an application deposit in the amount of one percent of the requested allocation before the last Monday in July, or in the amount of two percent of the requested allocation on or after the last Monday in July, and (5) a public purpose scoring worksheet for manufacturing project applications, and (6) a statement from the applicant or bond counsel as to whether the project preserves existing federally subsidized housing for residential rental project applications. The issuer must pay the application deposit by a check made payable to the department of finance. The Minnesota housing finance agency, the Minnesota rural finance authority, and the Minnesota higher education services office may apply for and receive an allocation under this section without submitting an application deposit.

(b) An entitlement issuer may not apply for an allocation from the housing pool or from the public facilities pool unless it has either permanently issued bonds equal to the amount of its entitlement allocation for the current year plus any amount of bonding authority carried forward from previous years or returned for reallocation all of its unused entitlement allocation. For purposes of this subdivision, its entitlement allocation includes an amount obtained under section 474A.04, subdivision 6. This paragraph does not apply to an application from the Minnesota housing finance agency for an allocation under subdivision 2a for cities who choose to have the agency issue bonds on their behalf.

(c) If an application is rejected under this section, the commissioner must notify the applicant and return the application deposit to the applicant within 30 days unless the applicant requests in writing that the application be resubmitted. The granting of an allocation of bonding authority under this section must be evidenced by a certificate of allocation.

Sec. 5. Minnesota Statutes 1996, section 474A.061, subdivision 2a, is amended to read:

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

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

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

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

(3) house price limits may not exceed:

(i) the greater of agency house price limits or the federal price limits for housing up to a maximum of $95,000; or

(ii) for a new construction affordability initiative, the greater of 115 percent of agency house price limits or 90 percent of the median purchase price in the city for which the bonds are to be sold up to a maximum of $95,000.;

(iii) for new construction housing affordability initiatives located in the metropolitan area, as defined by section 473.121, subdivision 2, the lesser of the federal price limits or the amount determined by the metropolitan council as the maximum affordable house price under the Metropolitan Livable Communities Act. New construction housing affordability initiatives in the metropolitan area must meet one or more of the following criteria:

(A) the initiative provides financial resources unrelated to the costs of completion of the mortgage revenue bond sale to reduce the cost of the housing or to improve the terms of the mortgage loans provided through the bond sale. A financial contribution must be equal to or exceeding ten percent of the purchase price of each newly constructed home to be financed;

(B) the initiative provides that the local unit of government in the jurisdiction in which the housing is to be constructed takes affirmative steps to change local regulations in order to improve housing affordability. The steps must demonstrably reduce the cost of the housing by at least ten percent. The financial contribution and the affirmative steps to change regulation may be combined to meet the ten percent requirement; or

(C) the initiative supports the efforts of housing groups that support self-help or owner-built housing initiatives in which at least 15 percent of the labor or materials or both needed to complete the new housing is acquired or donated through the efforts of such groups; or

(iv) for a community revitalization initiative for existing housing in the metropolitan area, as defined by section 473.121, subdivision 2, the federal price limits for existing housing, provided the community revitalization initiative meets the following criteria:

(A) the community revitalization initiative is targeted to a specific geographic area within the community which is less than the entire community;

(B) the community revitalization initiative is located in a community in which the most recently available data establishes that the median purchase price for an existing home in the community exceeds the agency house price limits; and

(C) the community revitalization initiative provides financial resources unrelated to the costs of completion of the mortgage revenue bond sale to reduce the cost of the housing or to improve the terms of the mortgage loans provided through the bond sale. A financial contribution must be equal to or exceeding ten percent of the purchase price of each existing home to be financed.

Data establishing the median purchase price in the city must be included in the application by a city requesting house price limits higher than the housing finance agency's house price limits; and

(4) an application deposit equal to one percent of the requested allocation must be submitted before the agency forwards the list specifying the amounts allocated to the commissioner under paragraph (c). The agency shall submit the city's application and application deposit to the commissioner when requesting an allocation from the housing pool.

Applications by a consortium shall include the name of each member of the consortium and the amount of allocation requested by each member.

The Minnesota housing finance agency may accept applications from June 15 through June 30 from cities for single-family housing programs which meet program requirements specified under clauses (1) to (4) if bonding authority is available in the housing pool. Applications will be accepted from June 15 to June 30 only from cities that received an allotment in the same calendar year and used at least 75 percent of their allotment by June 1. Allocations will be made loan by loan, on a first come, first served basis among applicant cities. The agency must allot available bonding authority. For purposes of paragraphs (a) to (g), "city" means a county or a consortium of local government units that agree through a joint powers agreement to apply together for single-family housing programs, and has the meaning given it in section 462C.02, subdivision 6. "Agency" means the Minnesota housing finance agency.

(c) The total amount of allocation for mortgage bonds for one city is limited to the lesser of: (i) the amount requested, or (ii) the product of the total amount available for mortgage bonds from the housing pool, multiplied by the ratio of each applicant's population as determined by the most recent estimate of the city's population released by the state demographer's office to the total of all the applicants' population, except that each applicant shall be allocated a minimum of $100,000 regardless of the amount requested or the amount determined under the formula in clause (ii). If a city applying for an allocation is located within a county that has also applied for an allocation, the city's population will be deducted from the county's population in calculating the amount of allocations under this paragraph.

Upon determining the amount of each applicant's allocation, the agency shall forward a list specifying the amounts allotted to each application and application deposit checks to the commissioner.

(d) The agency may issue bonds on behalf of participating cities. The agency shall request an allocation from the commissioner for all applicants who choose to have the agency issue bonds on their behalf and the commissioner shall allocate the requested amount to the agency. The agency may request an allocation at any time after the first Monday in February and through the last Monday in July, but may request an allocation no later than the last Monday in July. The commissioner shall return any application deposit to a city that paid an application deposit under paragraph (b), clause (4), but was not part of the list forwarded to the commissioner under paragraph (c).

(e) A city may choose to issue bonds on its own behalf or through a joint powers agreement or may use bonding authority for mortgage credit certificates and may request an allocation from the commissioner. If the total amount requested by all applicants exceeds the amount available in the pool, the city may not receive a greater allocation than the amount it would have received under the list forwarded by the Minnesota housing finance agency to the commissioner. No city may request or receive an allocation from the commissioner until the list under paragraph (c) has been forwarded to the commissioner. A city must request an allocation from the commissioner no later than 14 days before the unified pool is created pursuant to section 474A.091, subdivision 1. On and after the first Monday in February and through the last Monday in July, no city may receive an allocation from the housing pool which has not first applied to the Minnesota housing finance agency. The commissioner shall allocate the requested amount to the city or cities subject to the limitations under this paragraph.

If a city issues mortgage bonds from an allocation received under this paragraph, the issuer must provide for the recycling of funds into new loans. If the issuer is not able to provide for recycling, the issuer must notify the commissioner in writing of the reason that recycling was not possible and the reason the issuer elected not to have the Minnesota housing finance agency issue the bonds. "Recycling" means the use of money generated from the repayment and prepayment of loans for further eligible loans or for the redemption of bonds and the issuance of current refunding bonds.

(f) No entitlement city or county or city in an entitlement county may apply for or be allocated authority to issue bonds or use mortgage credit certificates from the housing pool.

(g) A city that does not use at least 50 percent of their allotment by the date applications are due for the first allocation that is made from the housing pool for single-family housing programs in the immediately succeeding calendar year may not apply to the housing pool for a single-family mortgage bond or mortgage credit certificate program allocation or receive an allotment from the housing pool in the succeeding two calendar years. Each local government unit in a consortium must meet the requirements of this paragraph.

Sec. 6. Minnesota Statutes 1996, section 474A.061, subdivision 6, is amended to read:

Subd. 6. [DEADLINE FOR ISSUANCE OF SMALL ISSUE QUALIFIED BONDS.] If an issuer fails to notify the department before the last Monday in December of issuance of obligations pursuant to an allocation received for a small issue any qualified bond project, the allocation is canceled and the bonding authority is allocated to the department of finance for reallocation under section 474A.091, subdivision 6.

Sec. 7. Minnesota Statutes 1997 Supplement, section 474A.091, subdivision 3, is amended to read:

Subd. 3. [ALLOCATION PROCEDURE.] (a) The commissioner shall allocate available bonding authority under this section on the Monday of every other week beginning with the first Monday in August through and on the last Monday in November. Applications for allocations must be received by the department by the Monday preceding the Monday on which allocations are to be made. If a Monday falls on a holiday, the allocation will be made or the applications must be received by the next business day after the holiday.

(b) On or before September 1, allocations shall be awarded from the unified pool in the following order of priority:

(1) applications for enterprise zone facility bonds;

(2) applications for small issue bonds for manufacturing projects;

(3) applications for small issue bonds for agricultural development bond loan projects;

(4) applications for residential rental project bonds;

(4) (5) applications for public facility projects funded by public facility bonds;

(5) (6) applications for redevelopment bonds;

(6) (7) applications for mortgage bonds; and

(7) (8) applications for governmental bonds.

Allocations for residential rental projects may only be made during the first allocation in August. The amount of allocation provided to an issuer for a specific manufacturing project will be based on the number of points received for the proposed project under the scoring system under section 474A.045. Proposed manufacturing projects that receive 50 points or more are eligible for all of the proposed allocation. Proposed manufacturing projects that receive less than 50 points under section 474A.045 are only eligible to receive a proportionally reduced share of the proposed authority, based upon the number of points received. If there are two or more applications for manufacturing projects from the unified pool and there is insufficient bonding authority to provide allocations for all manufacturing projects in any one allocation period, the available bonding authority shall be awarded based on the number of points awarded a project under section 474A.045 with those projects receiving the greatest number of points receiving allocation first. If two or more applications receive an equal amount of points, available bonding authority shall be awarded by lot unless otherwise agreed to by the respective issuers.

(c)(1) From the first Monday in August through the last Monday in November, $20,000,000 of bonding authority or an amount equal to the total annual amount of bonding authority allocated to the small issue pool under section 474A.03, subdivision 1, less the amount allocated to issuers from the small issue pool for that year, whichever is less, is reserved within the unified pool for small issue bonds to the extent such amounts are available within the unified pool. On the first Monday in September through the last Monday in November, $2,500,000 of bonding authority or an amount equal to the total annual amount of bonding authority allocated to the public facilities pool under section 474A.03, subdivision 1, less the amount allocated to issuers from the public facilities pool for that year, whichever is less, is reserved within the unified pool for public facility bonds to the extent such amounts are available within the unified pool.

(2) The total amount of allocations for mortgage bonds from the housing pool and the unified pool may not exceed:

(i) $10,000,000 for any one city; or

(ii) $20,000,000 for any number of cities in any one county.

An allocation for mortgage bonds may be used for mortgage credit certificates.

(d) After September 1, allocations shall be awarded from the unified pool only for the following types of qualified bonds: small issue bonds, public facility bonds to finance publicly owned facility projects, residential rental project bonds, and enterprise zone facility bonds.

If there is insufficient bonding authority to fund all projects within any qualified bond category, allocations shall be awarded by lot unless otherwise agreed to by the respective issuers. If an application is rejected, the commissioner must notify the applicant and return the application deposit to the applicant within 30 days unless the applicant requests in writing that the application be resubmitted. The granting of an allocation of bonding authority under this section must be evidenced by issuance of a certificate of allocation.

Sec. 8. Minnesota Statutes 1997 Supplement, section 474A.091, subdivision 6, is amended to read:

Subd. 6. [FINAL ALLOCATION; CARRYFORWARD.] Any bonding authority remaining unissued by the Minnesota housing finance agency after the last Monday in December shall be carried forward into the next calendar year by the Minnesota housing finance agency in accordance with section 474A.131, subdivision 2.

Sec. 9. [REPEALER.]

Minnesota Statutes 1996, section 474A.061, subdivision 3, is repealed. "

Delete the title and insert:

A bill for an act relating to bond allocations; providing for certain applications, housing pool allocations, scoring systems, deadlines, procedures, the carrying forward of bond allocations, and the review of allocations and compliance monitoring; amending Minnesota Statutes 1996, sections 462A.223, by adding subdivisions; 474A.045; 474A.061, subdivisions 1, 2a, and 6; Minnesota Statutes 1997 Supplement, section 474A.091, subdivisions 3 and 6; repealing Minnesota Statutes 1996, section 474A.061, subdivision 3.

We request adoption of this report and repassage of the bill.

House Conferees: Ann H. Rest, Ron Abrams and Barbara Sykora.

Senate Conferees: Steven G. Novak, Lawrence J. Pogemiller and Dennis R. Frederickson.

Rest moved that the report of the Conference Committee on H. F. No. 3145 be adopted and that the bill be repassed as amended by the Conference Committee. The motion prevailed.

H. F. No. 3145, A bill for an act relating to housing; providing for review of certain allocations and compliance monitoring by the Minnesota housing finance agency; amending Minnesota Statutes 1996, section 462A.223, by adding subdivisions.

The bill was read for the third time, as amended by Conference, and placed upon its repassage.

The question was taken on the repassage of the bill and the roll was called. There were 125 yeas and 0 nays as follows:

Those who voted in the affirmative were:

Abrams	Entenza	Johnson, R.	Mariani	Paymar	Sviggum
Anderson, B.	Erhardt	Juhnke	McCollum	Pelowski	Swenson, H.
Anderson, I.	Erickson	Kahn	McGuire	Peterson	Sykora
Bakk	Evans	Kalis	Milbert	Pugh	Tingelstad
Bettermann	Farrell	Kielkucki	Molnau	Rest	Tomassoni
Biernat	Finseth	Kinkel	Mulder	Reuter	Tompkins
Bishop	Folliard	Knoblach	Mullery	Rhodes	Trimble
Boudreau	Garcia	Koskinen	Munger	Rifenberg	Tuma
Bradley	Goodno	Kraus	Murphy	Rostberg	Tunheim
Broecker	Greiling	Krinkie	Ness	Rukavina	Van Dellen
Carlson	Gunther	Kubly	Nornes	Schumacher	Vandeveer
Chaudhary	Haas	Kuisle	Olson, E.	Seagren	Wagenius
Clark, K.	Harder	Larsen	Olson, M.	Seifert	Weaver
Commers	Hasskamp	Leighton	Opatz	Sekhon	Wejcman
Daggett	Hausman	Leppik	Orfield	Skare	Wenzel
Davids	Holsten	Lieder	Osskopp	Skoglund	Westfall
Dawkins	Huntley	Lindner	Osthoff	Slawik	Westrom
Dehler	Jaros	Long	Otremba, M.	Smith	Winter
Delmont	Jefferson	Macklin	Ozment	Solberg	Wolf
Dempsey	Jennings	Mahon	Paulsen	Stanek	Spk. Carruthers
Dorn	Johnson, A.	Mares	Pawlenty	Stang

The bill was repassed, as amended by Conference, and its title agreed to.

Winter from the Committee on Rules and Legislative Administration, pursuant to rule 1.09, designated the following bill as a Special Order to be acted upon today:

S. F. No. 1169.

S. F. No. 1169 was reported to the House.

Hasskamp moved to amend S. F. No. 1169, the unofficial engrossment, as follows:

Delete everything after the enacting clause and insert:

"Section 1. [TITLE.]

This act shall be called the "Personal Watercraft Safety and Courtesy Act."

Sec. 2. Minnesota Statutes 1996, section 86B.313, subdivision 1, is amended to read:

Subdivision 1. [GENERAL REQUIREMENTS.] In addition to requirements of other laws relating to watercraft, it is unlawful to operate or to permit the operation of a personal watercraft:

(1) without each person on board the personal watercraft wearing a United States Coast Guard approved Type I, II, III, or V personal flotation device;

(2) between sunset 8:30 p.m. and 8:00 9:30 a.m.;

(3) at greater than slow-no wake speed within 100 150 feet of:

(i) a shoreline,;

(ii) a dock,;

(iii) a swimmer, or;

(iv) a raft used for swimming or diving raft; or

(v) a moored, anchored, or nonmotorized watercraft at greater than slow-no wake speed;

(4) while towing a person on water skis, a kneeboard, an inflatable craft, or any other device unless:

(i) an observer is on board; or

(ii) the personal watercraft is equipped with factory-installed or factory-specified accessory mirrors that give the operator a wide field of vision to the rear;

(5) without the lanyard-type engine cutoff switch being attached to the person, clothing, or personal flotation device of the operator, if the personal watercraft is equipped by the manufacturer with such a device;

(6) if any part of the spring-loaded throttle mechanism has been removed, altered, or tampered with so as to interfere with the return-to-idle system;

(7) to chase or harass wildlife;

(8) through emergent or floating vegetation at other than a slow-no wake speed;

(9) in a manner that unreasonably or unnecessarily endangers life, limb, or property, including weaving through congested watercraft traffic, jumping the wake of another watercraft within 100 150 feet of the other watercraft, or operating the watercraft while facing backwards; or

(10) in any other manner that is not reasonable and prudent.

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

Subd. 5. [CITIZEN COMPLAINTS.] An owner of lakeshore in this state, or other persons lawfully on shoreline property, may register a complaint for appropriate action with a local law enforcement officer if any personal watercraft is operated in violation of section 86B.3136 or a local noise ordinance.

Sec. 4. [86B.3136] [CIVIL PENALTIES.]

Subdivision 1. [DEFINITION.] For purposes of this section, "a single area of a lake" means an area of a lake which is so small that the noise emanating from personal watercraft operated continuously within it is liable to be a nuisance or cause substantial annoyance to occupants of adjacent shoreline during the time of the continuous operation.

Subd. 2. [VIOLATIONS.] Any of the following acts constitutes a civil violation:

(1) operation of a personal watercraft in a single area of a lake within 150 feet of an occupied lake shoreline for more than 30 continuous minutes, with a penalty of $75 for the first violation and $100 for the second and each subsequent violation;

(2) operation of a personal watercraft at times, locations, or in a manner other than allowed by law, rule, or ordinance, with a penalty of $50 for the first violation and $75 for the second and each subsequent violation;

(3) operation of a personal watercraft in a "slow-no wake" zone, within 150 feet of shore, or in any other regulated zone in excess of allowable speed, with a penalty of $50 for the first violation and $75 for the second and each subsequent violation; and

(4) operation of a personal watercraft following cancellation of operator privileges, with a penalty of $100 for the first violation and $250 for the second and each subsequent violation.

Subd. 3. [OTHER PENALTIES.] Issuance of a civil penalty does not eliminate any other penalty or sanction provided by law, rule, or ordinance, except that a single course of conduct may result in either criminal or civil sanctions but not both.

Subd. 4. [PAYMENT.] Civil penalties shall be payable to the commissioner of natural resources within 30 days. Funds derived from civil penalties shall be deposited in the water recreation account of the natural resources fund.

Subd. 5. [APPEALS.] Civil penalties may be appealed provided a written appeal is filed with the commissioner of natural resources within 15 days of the issuance of the civil penalty demand. Appeal procedures shall be pursuant to section 116.072, subdivision 6. If a hearing is not requested within the 15-day period, the citation becomes a final order not subject to further review.

Subd. 6. [AUTHORITY TO ISSUE.] Civil citations under this section may be issued by all peace officers. The authority to issue civil citations is in addition to other remedies available under law, rule, or ordinance, except that a peace officer may not seek both criminal and civil penalties for the same incident.

Subd. 7. [ENFORCEMENT; REVOCATION.] Civil citations may be enforced under section 116.072, subdivision 9. If a person fails to pay a penalty owed under this section, the person may not operate a personal watercraft until the penalty is paid and the person is notified in writing by the commissioner that the person may resume operation of a personal watercraft.

Sec. 5. [EFFECTIVE DATE.]

Sections 1 to 4 are effective July 1, 1998."

Amend the title accordingly

Weaver moved to amend the Hasskamp amendment to S. F. No. 1169, the unofficial engrossment, as follows:

Pages 2 to 4, delete sections 3 and 4

Renumber the sections in sequence and correct internal references

A roll call was requested and properly seconded.

Hasskamp moved that S. F. No. 1169 be temporarily laid over on Special Orders. The motion prevailed.

Winter moved that the House recess subject to the call of the Chair. The motion prevailed.

The House reconvened and was called to order by the Speaker.

On the motion of Winter and on the demand of 10 members, a call of the House was ordered. The following members answered to their names:

Abrams	Erhardt	Kahn	McCollum	Peterson	Tingelstad
Anderson, B.	Erickson	Kalis	McElroy	Pugh	Tomassoni
Anderson, I.	Evans	Kelso	McGuire	Rest	Tompkins
Journal of the House - 102nd Day - Tuesday, March 31, 1998 - Top of Page 8705
Bakk	Farrell	Kielkucki	Milbert	Reuter	Tuma
Bettermann	Finseth	Kinkel	Molnau	Rhodes	Tunheim
Biernat	Folliard	Knoblach	Mulder	Rifenberg	Van Dellen
Boudreau	Garcia	Koskinen	Mullery	Rostberg	Vandeveer
Bradley	Goodno	Kraus	Munger	Rukavina	Wagenius
Broecker	Greenfield	Krinkie	Murphy	Schumacher	Weaver
Carlson	Greiling	Kubly	Ness	Seagren	Wejcman
Chaudhary	Gunther	Kuisle	Nornes	Seifert	Wenzel
Clark, K.	Haas	Larsen	Olson, E.	Sekhon	Westfall
Commers	Hasskamp	Leighton	Olson, M.	Skare	Westrom
Daggett	Hausman	Leppik	Opatz	Skoglund	Winter
Davids	Hilty	Lieder	Orfield	Slawik	Wolf
Dawkins	Huntley	Lindner	Osskopp	Smith	Workman
Dehler	Jefferson	Long	Osthoff	Solberg	Spk. Carruthers
Delmont	Jennings	Macklin	Otremba, M.	Stanek
Dempsey	Johnson, A.	Mahon	Paulsen	Stang
Dorn	Johnson, R.	Mares	Pawlenty	Sviggum
Entenza	Juhnke	Mariani	Paymar	Sykora

Winter moved that further proceedings of the roll call be suspended and that the Sergeant at Arms be instructed to bring in the absentees. The motion prevailed and it was so ordered.

Pursuant to rule 1.10 Solberg requested immediate consideration of S. F. No. 2775.

S. F. No. 2775 was reported to the House.

Slawik moved to amend S. F. No. 2775, the unofficial engrossment, as follows:

Pages 2 to 4, delete sections 3 to 9

Amend the title accordingly

The motion prevailed and the amendment was adopted.

S. F. No. 2775, A bill for an act relating to children; proposing an amendment to the Minnesota Constitution by adding a new article XV, and by renumbering certain sections; renaming the permanent school fund as the children's endowment fund; maximizing the long-term total return to the fund; requiring a work group to propose a governance structure for the endowment; proposing coding for new law as Minnesota Statutes, chapter 119C.

The bill was read for the third time, as amended, and placed upon its final passage.

The question was taken on the passage of the bill and the roll was called. There were 68 yeas and 62 nays as follows:

Those who voted in the affirmative were:

Anderson, I.	Folliard	Johnson, R.	Mariani	Paymar	Tomassoni
Bakk	Garcia	Juhnke	McCollum	Pelowski	Trimble
Biernat	Greenfield	Kahn	McGuire	Peterson	Tunheim
Carlson	Greiling	Kalis	Milbert	Pugh	Wagenius
Chaudhary	Hasskamp	Kelso	Mullery	Rest	Wejcman
Clark, K.	Hausman	Kinkel	Munger	Rukavina	Wenzel
Dawkins	Hilty	Koskinen	Murphy	Schumacher	Winter
Delmont	Huntley	Kubly	Olson, E.	Sekhon	Spk. Carruthers
Dorn	Jaros	Leighton	Opatz	Skare
Entenza	Jefferson	Lieder	Orfield	Skoglund
Evans	Jennings	Long	Osthoff	Slawik
Farrell	Johnson, A.	Mahon	Otremba, M.	Solberg

Those who voted in the negative were:

Abrams	Dempsey	Kraus	Ness	Seagren	Van Dellen
Anderson, B.	Erhardt	Krinkie	Nornes	Seifert	Vandeveer
Bettermann	Erickson	Kuisle	Olson, M.	Smith	Weaver
Bishop	Finseth	Larsen	Osskopp	Stanek	Westfall
Boudreau	Goodno	Leppik	Ozment	Stang	Westrom
Bradley	Gunther	Lindner	Paulsen	Sviggum	Wolf
Broecker	Haas	Macklin	Pawlenty	Swenson, H.	Workman
Journal of the House - 102nd Day - Tuesday, March 31, 1998 - Top of Page 8706
Commers	Harder	Mares	Reuter	Sykora
Daggett	Holsten	McElroy	Rhodes	Tingelstad
Davids	Kielkucki	Molnau	Rifenberg	Tompkins
Dehler	Knoblach	Mulder	Rostberg	Tuma

The bill was passed, as amended, and its title agreed to.

Winter moved that the remaining bill on Special Orders for today be continued. The motion prevailed.

Winter moved that the bills on General Orders for today be continued. The motion prevailed.

Pawlenty moved that his name be stricken as an author on H. F. No. 2034. The motion prevailed.

Folliard moved that the following statement be printed in the Journal of the House: "It was my intention to vote in the affirmative on Monday, March 30, 1998, when the vote was taken on the repassage of H. F. No. 3332, as amended by the Senate." The motion prevailed.

Peterson moved that the following statement be printed in the Journal of the House: "It was my intention to vote in the affirmative on Monday, March 30, 1998, when the vote was taken on the repassage of H. F. No. 3332, as amended by the Senate." The motion prevailed.

Wenzel moved that H. F. No. 3381 be returned to its author. The motion prevailed.

Winter moved that when the House adjourns today it adjourn until 9:00 a.m., Wednesday, April 1, 1998. The motion prevailed.

Winter moved that the House adjourn. The motion prevailed, and the Speaker declared the House stands adjourned until 9:00 a.m., Wednesday, April 1, 1998.

Edward A. Burdick, Chief Clerk, House of Representatives