Speaker of the House of Representatives

The Honorable Allan H. Spear

President of the Senate

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

S.F. No.	H.F. No.	Session Laws Chapter No.	Time and Date Approved 1997	Date Filed 1997

Sincerely,

Joan Anderson Growe
Secretary of State

The Honorable Phil Carruthers

Speaker of the House of Representatives

The State of Minnesota

Dear Speaker Carruthers:

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

Speaker of the House of Representatives

The Honorable Allan H. Spear

President of the Senate

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

S.F. No.	H.F. No.	Session Laws Chapter No.	Time and Date Approved 1997	Date Filed 1997
	661	253	2:20 p.m. February 18	February 18
	2524	254	2:25 p.m. February 18	February 18

Sincerely,

Joan Anderson Growe
Secretary of State

Speaker of the House of Representatives

The Honorable Allan H. Spear

President of the Senate

Rest from the Committee on Local Government and Metropolitan Affairs to which was referred:

H. F. No. 2894, A bill for an act relating to local government; the town of Wyoming and the city of Chisago City; exempting the town and the city from a limitation on the duration of reimbursement paid to the town for orderly annexed property; appropriating money for planning a joint commercial and business park.

Reported the same back with the recommendation that the bill pass and be re-referred to the Committee on Economic Development and International Trade.

The report was adopted.

Kahn from the Committee on Governmental Operations to which was referred:

H. F. No. 2935, A bill for an act relating to agriculture; providing rulemaking authority in the warehouse and grain storage laws; proposing coding for new law in Minnesota Statutes, chapters 231; and 232.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. [231.40] [RULES.]

The commissioner may adopt rules on the following topics relating to warehouses:

(1) warehouse receipts;

(2) liability limitations for goods;

(3) tenders for storage and labeling;

(4) rates and charges;

(5) fire protection;

(6) floor load;

(7) opening and abandonment;

(8) storage conditions; and

(9) surety bonds.

Sec. 2. [232.26] [RULES.]

The commissioner may adopt rules on the following topics relating to grain storage warehouses:

(1) licensing requirements, including termination of licenses;

(2) bonds, claims against bonds, and bond coverages;

(3) fees;

(5) voluntary extension of credit contracts;

(6) warehouse examinations;

(7) receipts and scale tickets, including lost, stolen, or destroyed receipts;

(8) determination of grade;

(9) charges and rates;

(10) shortages; and

(11) movement of encumbered grain."

With the recommendation that when so amended the bill pass and be placed on the Consent Calendar.

The report was adopted.

Osthoff from the Committee on Environment, Natural Resources and Agriculture Finance to which was referred:

H. F. No. 2949, A bill for an act relating to environment; modifying provisions relating to prohibitions on disposal of motor vehicle antifreeze; amending Minnesota Statutes 1997 Supplement, section 115A.916.

Reported the same back with the recommendation that the bill pass.

The report was adopted.

Kahn from the Committee on Governmental Operations to which was referred:

H. F. No. 2970, A bill for an act relating to state employment; increasing salaries for judges; modifying employee and employer contribution rates for certain judges retirement plans; amending Minnesota Statutes 1996, section 490.123, subdivisions 1a and 1b; Laws 1997, Second Special Session chapter 3, section 16.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

Section 1. [LUVERNE COMMUNITY HOSPITAL; PENSION COVERAGE FOR TRANSFERRED EMPLOYEES.]

Subd. 2. [TREATMENT OF TERMINATED, NONVESTED EMPLOYEES; ELIGIBILITY.] (a) An eligible individual is an individual who:

(1) is an employee of the Luverne Community Hospital immediately prior to the sale, lease, or transfer of that facility to a private entity, nonprofit corporation, or public corporation;

(2) is terminated at the time of the sale, lease, or transfer; and

(3) had less than three years of service credit in the public employees retirement association plan at the date of termination.

(b) For an eligible individual under paragraph (a), the city may make a member contribution equivalent payment under subdivision 3.

Subd. 3. [MEMBER CONTRIBUTION EQUIVALENT PAYMENT.] The member contribution equivalent payment is an amount equal to the total refund provided by Minnesota Statutes, section 353.34, subdivisions 1 and 2. To be eligible for the member contribution equivalent payment, the individual in subdivision 2, paragraph (a), must apply for a refund under Minnesota Statutes, section 353.34, subdivisions 1 and 2, within one year of termination. A member contribution equivalent amount exceeding $200 must be made directly to an individual retirement account under section 408(a) of the Internal Revenue Code, as amended, or to another qualified plan. A member contribution equivalent amount of $200 or less may, at the preference of the individual, be made to the individual or to an individual retirement account under section 408(a) of the Internal Revenue Code, as amended, or to another qualified plan.

Sec. 2. [ARNOLD MEMORIAL HOSPITAL, ADRIAN, MINNESOTA; PENSION COVERAGE FOR TRANSFERRED EMPLOYEES.]

Subdivision 1. [AUTHORIZATION.] This section applies if the Arnold Memorial Hospital in Adrian is sold, leased, or transferred to a private entity, nonprofit corporation, or public corporation. Notwithstanding Minnesota Statutes, sections 356.24 and 356.25, to facilitate the orderly transition of employees affected by the sale, lease, or transfer, the city may, at its discretion, make, from assets to be transferred to the private entity, nonprofit corporation, or public corporation, payments to a qualified pension plan established for the transferred employees by the private entity, nonprofit corporation, or public corporation, to provide benefits substantially similar to those the employees would have been entitled to under the provisions of the public employees retirement association applicable to nonpublic safety employees under Minnesota Statutes, chapter 353, as amended, in effect on the date of the sale, lease, or transfer.

Subd. 2. [TREATMENT OF TERMINATED, NONVESTED EMPLOYEES; ELIGIBILITY.] (a) An eligible individual is an individual who:

(1) is an employee of the Arnold Memorial Hospital in Adrian immediately prior to the sale, lease, or transfer of that facility to a private entity, nonprofit corporation, or public corporation;

(2) is terminated at the time of the sale, lease, or transfer; and

(3) had less than three years of service credit in the public employees retirement association plan at the date of termination.

(b) For an eligible individual under paragraph (a), the city may make a member contribution equivalent payment under subdivision 3.

Sec. 3. [EFFECTIVE DATE.]

(a) Section 1 is effective on the day following approval by the Luverne city council and compliance with Minnesota Statutes, section 645.021.

(b) Section 2 is effective on the day following approval by the Adrian city council and compliance with Minnesota Statutes, section 645.021.

Section 1. Minnesota Statutes 1996, section 136F.45, is amended by adding a subdivision to read:

Subd. 3a. [SHARING OF FEES.] (a) For purposes of this subdivision, a gross fee amount is defined as the fees, commissions, and other charges which an annuity investment provider or vendor would charge a typical consumer of those services for identical or similar products. A net fee amount is an amount below the gross fee amount reflecting a negotiated reduction below gross fees.

(b) To offset the board's necessary and reasonable expenses incurred under subdivisions 1 and 2, the Minnesota state colleges and universities system is authorized to negotiate with an annuity investment provider or vendor to establish a net fee amount.

(c) Under the negotiated arrangements, the Minnesota state colleges and universities system is authorized to either make arrangements to recapture the difference between gross and net fee amounts through a rebate from the annuity investment provider or vendor, or deduct those amounts prior to transmitting the contributions or premiums.

(d) The revenues collected or retained under these negotiated arrangements must be used to offset the board's necessary and reasonable expenses incurred under this section. Any excess above the necessary and reasonable expenses must be allocated annually to the accounts of the participants.

Sec. 2. Minnesota Statutes 1996, section 136F.48, is amended to read:

136F.48 [EMPLOYER-PAID HEALTH INSURANCE.]

(a) This section applies to a person who:

(1) retires from the state university system, the technical college system, or the community college system, or from a successor system employing state university, technical college, or community college faculty, with at least ten years of combined service credit in a system under the jurisdiction of the board of trustees of the Minnesota state colleges and universities;

(2) was employed on a full-time basis immediately preceding retirement as a state university, technical college, or community college faculty member or as an unclassified administrator in one of those systems;

(3) begins drawing an annuity from the teachers retirement association or from a first class city teacher plan; and

(4) returns to work on not less than a one-third time basis and not more than a two-thirds time basis in the system from which the person retired under an agreement in which the person may not earn a salary of more than $35,000 in a calendar year from employment after retirement in the system from which the person retired.

(c) For a person eligible under paragraphs (a) and (b), the employing board shall make the same employer contribution for hospital, medical, and dental benefits as would be made if the person were employed full time.

(d) For work under paragraph (a), a person must receive a percentage of the person's salary at the time of retirement that is equal to the percentage of time the person works compared to full-time work.

(e) If a collective bargaining agreement covering a person provides for an early retirement incentive that is based on age, the incentive provided to the person must be based on the person's age at the time employment under this section ends. However, the salary used to determine the amount of the incentive must be the salary that would have been paid if the person had been employed full time for the year immediately preceding the time employment under this section ends.

(f) A person who returns to work under this section is a member of the appropriate bargaining unit and is covered by the appropriate collective bargaining contract. Except as provided in this section, the person's coverage is subject to any part of the contract limiting rights of part-time employees.

Sec. 3. Minnesota Statutes 1996, section 352.96, subdivision 4, is amended to read:

Subd. 4. [EXECUTIVE DIRECTOR TO ESTABLISH RULES.] The executive director of the system with the advice and consent of the board of directors shall establish rules and procedures to carry out this section including allocation of administrative costs against the assets accumulated under this section. Funds to pay these costs are appropriated from the fund or account in which the assets accumulated under this section are placed of the plan to participants. Fees cannot be charged on contributions and investment returns attributable to contributions made to the Minnesota supplemental investment funds before July 1, 1992. Annual total fees charged for plan administration for the Minnesota supplemental investment funds cannot exceed 40/100 of one percent of the contributions and investment returns attributable to contributions made on or after July 1, 1992. The rules established by the executive director must conform to federal and state tax laws, regulations, and rulings, and are not subject to the administrative procedure act. Except for the marketing rules, rules relating to the options provided under subdivision 2, clauses (2) and (3), must be approved by the state board of investment.

Sec. 4. Minnesota Statutes 1996, section 352D.09, subdivision 7, is amended to read:

Subd. 7. Up to one-tenth of one percent of salary shall be deducted from the employee contributions and up to one-tenth of one percent of salary from the employer contributions authorized by section 352D.04, subdivision 2, The board of directors shall establish a budget and charge participants a fee to pay the administrative expenses of the unclassified program. Fees cannot be charged on contributions and investment returns attributable to contributions made before July 1, 1992. Annual total fees charged for plan administration cannot exceed 10/100 of one percent of the contributions and investment returns attributable to contributions made on or after July 1, 1992.

Sec. 5. Minnesota Statutes 1996, section 353D.05, subdivision 3, is amended to read:

Subd. 3. [ADMINISTRATIVE EXPENSES.] The executive director of the association with the advice and consent of the board shall annually set an amount to recover the costs of the association in administering the public employees defined contribution plan that are not met by the amount recovered under section 11A.17.

Sec. 6. Minnesota Statutes 1996, section 354.445, is amended to read:

354.445 [NO ANNUITY REDUCTION.]

(a) The annuity reduction provisions of section 354.44, subdivision 5, do not apply to a person who:

(1) retires from the state university system, technical college system, or the community college system, or from a successor system employing state university, technical college, or community college faculty, with at least ten years of combined service credit in a system under the jurisdiction of the board of trustees of the Minnesota state colleges and universities;

(3) begins drawing an annuity from the teachers retirement association; and

(4) returns to work on not less than a one-third time basis and not more than a two-thirds time basis in the system from which the person retired under an agreement in which the person may not earn a salary of more than $35,000 in a calendar year from employment after retirement in the system from which the person retired.

(b) Initial participation, the amount of time worked, and the duration of participation under this section must be mutually agreed upon by the employer president of the institution where the person returns to work and the employee. The employer president may require up to one-year notice of intent to participate in the program as a condition of participation under this section. The employer president shall determine the time of year the employee shall work. The employer or the president may not require a person to waive any rights under a collective bargaining agreement as a condition of participation under this section.

(c) Notwithstanding any law to the contrary, a person eligible under paragraphs (a) and (b) may not earn further service credit in the teachers retirement association and is not eligible to participate in the individual retirement account plan or the supplemental retirement plan established in chapter 354B as a result of service under this section. No employer or employee contribution to any of these plans may be made on behalf of such a person.

(d) For a person eligible under paragraphs (a) and (b) who earns more than $35,000 in a calendar year from employment after retirement in the system from which the person retired, the annuity reduction provisions of section 354.44, subdivision 5, apply only to income over $35,000.

(e) A person who returns to work under this section is a member of the appropriate bargaining unit and is covered by the appropriate collective bargaining contract. Except as provided in this section, the person's coverage is subject to any part of the contract limiting rights of part-time employees.

Sec. 7. Minnesota Statutes 1996, section 354B.23, is amended by adding a subdivision to read:

Subd. 5a. [EXCESS CONTRIBUTIONS.] (a) When contributions to the plan exceed limits imposed by federal law or regulation and it is necessary to return contributions to comply with the federal limits, excess contributions must be returned to the employee and to the employer in the same proportions as the contributions were made.

(b) When an employer contribution required under section 354B.24 due to a sabbatical leave is made after completion of the leave or an employer contribution is made due to omitted deductions under subdivision 5, and these employer contributions cause or would cause total contributions to the plan to exceed limits imposed by federal law or regulation, the employer must make that portion of the contribution that would exceed the federal limit during the next calendar year.

Sec. 8. Minnesota Statutes 1997 Supplement, section 354B.25, subdivision 1a, is amended to read:

Subd. 1a. [ADVISORY COMMITTEE.] (a) A committee is created to advise the state board of investment and the board of trustees of the Minnesota state colleges and universities concerning administration of the individual retirement account plan and the supplemental retirement plan established in chapter 354C. The committee shall adopt recommendations by majority vote of those members voting on each issue. The exclusive representatives of the state university instructional unit, the community college instructional unit, and the technical college instructional unit shall each appoint two members to the committee. The exclusive representatives of the general professional unit, the supervisory employees unit and the state university administrative unit shall each appoint one member to the committee. The chancellor of the Minnesota state colleges and universities shall appoint three members, at least one of whom shall be a personnel administrator. No member of the committee shall be retired. Members serve at the pleasure of the applicable appointing authority, but no member shall serve for more than a total of five years. Members shall be reimbursed from the administrative expense account of the individual retirement account plan for expenses as provided in section 15.059, subdivision 3.

(b) The committee shall:

(2) along with any other consultants selected by the board, advise the state board of investment on selection of financial institutions and on the type of investment products to be offered by these institutions for the plans;

(3) advise the board of trustees of the Minnesota state colleges and universities on administration of the plans, including selection of a third-party plan administrator, if any, for the individual retirement account plan.

(c) The board of trustees of the Minnesota state colleges and universities shall provide the advisory committee with meeting space and other administrative support.

(d) Expenses of the advisory committee are considered administrative expenses of the plans under subdivision 5 and section 354C.12, subdivision 4, and must be allocated between the two plans in proportion to the market value of the total assets of the plans as of the most recent prior audited annual financial report.

Sec. 9. Minnesota Statutes 1997 Supplement, section 354B.25, subdivision 5, is amended to read:

Subd. 5. [INDIVIDUAL RETIREMENT ACCOUNT PLAN ADMINISTRATIVE EXPENSES.] (a) The reasonable and necessary administrative expenses of the individual retirement account plan must be paid by plan participants in the following manner:

(1) from plan participants with amounts invested in the Minnesota supplemental investment fund, the plan administrator may charge an administrative expense assessment as provided in section 11A.17, subdivisions 10a and 14 in an amount such that annual total fees charged for plan administration cannot exceed 40/100 of one percent of the assets of the Minnesota supplemental investment funds; and

(2) from plan participants with amounts through annuity contracts and custodial accounts purchased under subdivision 2, paragraph (a), the plan administrator may charge an administrative expense assessment of a designated amount, not to exceed two percent of member and employer contributions, as those contributions are made.

(b) Any administrative expense charge that is not actually needed for the administrative expenses of the individual retirement account plan must be refunded to member accounts.

(c) The board of trustees shall report annually, before October 1, to the advisory committee created in subdivision 1a on administrative expenses of the plan. The report must include a detailed accounting of charges for administrative expenses collected from plan participants and expenditure of the administrative expense charges. The administrative expense charges collected from plan participants must be kept in a separate account from any other funds under control of the board of trustees and may be used only for the necessary and reasonable administrative expenses of the plan.

Sec. 10. Minnesota Statutes 1996, section 354C.12, is amended by adding a subdivision to read:

Subd. 1a. [EXCESS CONTRIBUTIONS.] (a) When contributions to the plan exceed limits imposed by federal law or regulation and it is necessary to return contributions to comply with the federal limits, one-half of the excess contributions must be returned to the employee and half to the employer.

(b) When an employer contribution is made due to omitted deductions under subdivision 2, and these employer contributions cause or would cause total contributions to the plan to exceed limits imposed by federal law or regulation, the employer must make that portion of the contribution that would exceed the federal limit during the next calendar year.

Sec. 11. Minnesota Statutes 1997 Supplement, section 354C.12, subdivision 4, is amended to read:

Subd. 4. [ADMINISTRATIVE EXPENSES.] The board of trustees of the Minnesota state colleges and universities is authorized to pay the necessary and reasonable administrative expenses of the supplemental retirement plan. The administrative fees or charges must be paid by participants in the following manner:

Minnesota state colleges and universities in an amount such that annual total fees charged for plan administration cannot exceed 40/100 of one percent of the assets of the Minnesota supplemental investment funds; or

(2) from participants where contributions are invested through contracts purchased from any other authorized source, the plan administrator may assess an amount of up to two percent of the employee and employer contributions.

Any recovered or assessed amounts that are not needed for the necessary and reasonable administrative expenses of the plan must be refunded to member accounts.

The board of trustees shall report annually, before October 1, to the advisory committee created in section 354B.25, subdivision 1a, on administrative expenses of the plan. The report must include a detailed accounting of charges for administrative expenses collected from plan participants and expenditure of the administrative expense charges. The administrative expense charges collected from plan participants must be kept in a separate account from any other funds under control of the board of trustees and may be used only for the necessary and reasonable administrative expenses of the plan.

Sec. 12. Minnesota Statutes 1996, section 383B.52, is amended to read:

383B.52 [ADMINISTRATION COSTS.]

The board of county commissioners of Hennepin county is hereby authorized to appropriate money for the administration of the supplementary benefit program created by sections 383B.46 to 383B.52. The board of county commissioners of Hennepin county may charge participants a fee to recover the administrative expenses of the supplementary benefit program. Annual total fees charged to administer the supplementary benefit program may not exceed 40/100 of one percent of the assets of the program.

Sec. 13. Minnesota Statutes 1996, section 422A.23, subdivision 2, is amended to read:

Subd. 2. [SHORT-SERVICE SURVIVOR BENEFIT.] Upon the death of a contributing (a) If an active member after having been in the city service not less than dies prior to termination of service with at least 18 months but before the effective date of retirement, the board shall in lieu of the settlement hereinbefore provided pay to the surviving spouse and/or children of the member under the age of 18, or under the age of 22 if a full-time student at an accredited school, college or university, and single, the following monthly benefit:

(a) Surviving spouse $325 per month, except for benefits beginning after July 1, 1983, which shall be 30 percent of member's average salary in effect over the last six months of allowable service preceding the month in which the death occurred.

(b) Each surviving child $150 per month, except for benefits beginning after July 1, 1983, which shall be ten percent of the member's average salary in effect over the last six months of allowable service preceding the month in which the death occurred but less than 20 years of service credit, the surviving spouse or surviving child or children is eligible to receive the survivor benefit specified in paragraph (b) or (c), as applicable. Payments for the Payment of a benefit of for any surviving child under the age of 18 years shall be made to the surviving parent, or if there be none, to the legal guardian of such the surviving child. The maximum monthly benefit shall not exceed a total of $750.

(b) If the surviving spouse or surviving child benefit commenced before July 1, 1983, the surviving spouse benefit is $750 per month and the surviving child benefit is $225 per month, beginning with the first monthly payment payable after the effective date of this section. The sum of surviving spouse and surviving child benefits payable under this paragraph shall not exceed $900 per month. The increased cost resulting from the benefit increases under this paragraph must be allocated to each employing unit listed in section 422A.101, subdivisions 1a, 2, and 2a, on the basis of the additional accrued liability resulting from increased benefits paid to the survivors of employees from that unit.

(c) If the surviving spouse or surviving child benefit commences after June 30, 1983, the surviving spouse benefit is 30 percent of the member's average salary in effect over the last six months of allowable service preceding the month in which death occurs. The surviving child benefit is ten percent of the member's average salary in effect over the last six months of allowable service preceding the month in which death occurs. The sum of surviving spouse and surviving child benefits payable under this paragraph shall not exceed 50 percent of the member's average salary in effect over the last six months of allowable service.

(d) Any surviving child benefit or surviving spouse benefit computed under paragraph (c) and in effect for the month immediately prior to the effective date of this section is increased by 15 percent as of the first payment on or after the effective date of this section.

(e) Surviving child benefits under this subdivision terminate when the child no longer meets the definition of surviving child.

Sec. 14. [PUBLIC EMPLOYEES RETIREMENT ASSOCIATION; SPECIAL SURVIVING SPOUSE BENEFIT ELIGIBILITY.]

(a) Notwithstanding any provision of law to the contrary, the surviving spouse of a deceased qualified public employee who died as a result of an alleged homicide in the line of duty within one month of eligibility for normal retirement is entitled to receive the second portion of a 100 percent joint and survivor optional annuity under Minnesota Statutes, section 353.31, subdivision 1b, calculated as if the deceased qualified public employee had qualified for the "rule of 90" early normal retirement annuity on the date of death.

(b) A deceased qualified public employee is a person who:

(1) was born on August 18, 1941;

(2) became a member of the public employees retirement association on July 7, 1964;

(3) was a member of the basic program of the public employees retirement association;

(4) was employed as a building inspector by the city of St. Paul;

(5) died during the course of employment duties on December 24, 1997; and

(6) would have been eligible to retire under the "rule of 90" early normal retirement provision on or before February 1, 1998.

(c) The benefit under paragraph (a) is payable in lieu of any other survivor benefit from the public employee retirement association. The benefit under paragraph (a) accrues on January 1, 1998, and the initial payment of the benefit must include any applicable retroactive payment amounts. The benefit under paragraph (a) must be elected by the surviving spouse on a form prescribed by the executive director of the public employee retirement association.

Sec. 15. [REIMBURSEMENT OF ACTUARIAL COST BY CITY OF ST. PAUL.]

Sec. 16. [PUBLIC EMPLOYEES RETIREMENT ASSOCIATION COVERAGE TERMINATION.]

Subdivision 1. [ELIGIBILITY.] (a) An eligible member specified in paragraph (b) is authorized to apply for a retirement annuity, provided necessary age and service requirements are met, under Minnesota Statutes, section 353.29 or 353.30, as applicable, as further specified under subdivision 2.

(b) An eligible member is an individual who:

(1) is an active member of the public employees retirement association coordinated plan;

(2) contributes to that plan based on employment by the suburban Hennepin county regional park district and as an elected member of the Minneapolis park and recreation board; and

(3) was born on February 25, 1936.

Subd. 2. [RETIREMENT ANNUITY.] (a) Notwithstanding Minnesota Statutes, section 353.01, subdivision 2a, clause (3), and continuation of elected service, an eligible individual under subdivision 1, paragraph (b), is deemed to have terminated membership under Minnesota Statutes, section 353.01, subdivision 11b, following termination of the suburban Hennepin county regional park district employment and meeting applicable length of separation requirements.

(b) If the requirements of paragraph (a) are satisfied, the eligible individual may apply for a retirement annuity under Minnesota Statutes, section 353.29 or 353.30, whichever applies. In computing the annuity, the public employees retirement association must exclude salary due to appointed and elected Minneapolis park and recreation board service.

Subd. 3. [TREATMENT OF MINNEAPOLIS PARK AND RECREATION BOARD CONTRIBUTION TO THE PUBLIC EMPLOYEES RETIREMENT ASSOCIATION.] (a) Upon termination of the suburban Hennepin county regional park district employment, all employee contributions to the public employees retirement association coordinated plan by an eligible individual in subdivision 1, paragraph (b), due to Minneapolis park and recreation board appointed and elected service, and all corresponding employer contributions, terminate.

(b) Following termination of contributions under paragraph (a), an eligible member under subdivision 1, paragraph (b), must elect, within one year of termination of contributions under paragraph (a) or termination of elective service, whichever is earlier, a refund under Minnesota Statutes, section 353.34, subdivision 2, or coverage by the public employees defined contribution plan under Minnesota Statutes, chapter 353D, as further specified in paragraph (c).

(c) If public employee defined contribution plan coverage is elected under this paragraph, contributions to that plan commence as of the first day of the pay period following this election. Notwithstanding Minnesota Statutes, section 353D.12, accumulated employee contributions made by an eligible member as specified in subdivision 1, paragraph (b), and corresponding employer contributions, due to the Minneapolis park and recreation board appointed and elected service, must be transferred with six percent annual interest to an account for an eligible member in the public employees defined contribution plan.

(d) If no election is made by an eligible member by the required date in paragraph (b), the individual is assumed to have elected the refund indicated in paragraph (b).

(e) Upon an election under paragraph (b), or a mandatory refund under paragraph (d), all rights in the public employees retirement association coordinated plan due to elected and appointed service are forfeited and may not be reestablished.

Sec. 17. [LEGISLATIVE COMMISSION ON PENSIONS AND RETIREMENT; STUDY OF THE APPROPRIATE MANNER FOR ESTABLISHING THE ACTUARIAL VALUE OF RETIREMENT PLAN ASSETS.]

(b) A report summarizing the study and discussing the recommendation for the most appropriate retirement plan actuarial asset valuation method, including the required proposed legislation, must be transmitted to the chair of the committee on governmental operations of the house of representatives and to the chair of the committee on governmental operations and veterans of the senate. The report must be transmitted on or before February 15, 1999.

Sec. 18. [STATE BOARD OF INVESTMENT STUDY.]

(a) The state board of investment shall study the issue of increasing the frequency of the valuation and purchase of shares in the Minnesota supplemental investment fund under Minnesota Statutes, section 11A.17, subdivision 7. The study must include an assessment of any increase in the administrative expenses of the fund that would result from an increase in the share valuation and purchase frequency, the consistency of the current valuation and purchase timing with the timing of routine contributions to the retirement plans invested through the Minnesota supplemental investment fund, and the extent of investment income loss borne by retirement plan contributors who make contributions under alternate time frames or through nonelectronic transmittal mechanisms.

(b) The study results must be reported to the chair of the legislative commission on pensions and retirement, the chair of the committee on governmental operations of the house of representatives, and the chair of the committee on governmental operations and veterans of the senate. The study report must be filed on or before February 1, 1999.

Sec. 19. [REPEALER.]

(a) Minnesota Statutes 1996, sections 11A.17, subdivisions 10a and 14; and 352D.09, subdivision 8, are repealed.

(b) Minnesota Statutes 1997 Supplement, section 136F.45, subdivision 3, is repealed.

Sec. 20. [EFFECTIVE DATE.]

(a) Sections 1 and 19, paragraph (b), are effective on the day following final enactment.

(b) Sections 2, 6, 7, 8, 10, and 16 are effective on the day following final enactment.

(c) Sections 3, 4, 5, 9, 11, 12, and 19, paragraph (a), are effective July 1, 1999.

(d) Section 13 is effective upon approval by the Minneapolis city council and compliance with Minnesota Statutes, section 645.021.

(e) Sections 14 and 15 are effective on the day following approval by the city council of the city of St. Paul and compliance with Minnesota Statutes, section 645.021.

Section 1. Minnesota Statutes 1996, section 354.66, subdivision 2, is amended to read:

before October 1 of the year for which the teacher requests to make retirement contributions under subdivision 4. A copy of the executed agreement must be filed with the executive director of the association. If the copy of the executed agreement is filed with the association after October 1 of the year for which the teacher requests to make retirement contributions under subdivision 4, the employing unit shall pay the fine specified in section 354.52, subdivision 6, for each calendar day that elapsed since the October 1 due date. The association may not accept an executed agreement that is received by the association more than 15 months late. The association may not waive the fine required by this section.

Sec. 2. Minnesota Statutes 1996, section 354.66, subdivision 3, is amended to read:

Subd. 3. [PART-TIME TEACHING POSITION, DEFINED.] For purposes of this section, the term "part-time teaching position" shall mean a teaching position within the district in which the teacher is employed for at least 50 full days or a fractional equivalent thereof as prescribed in section 354.091, and for which the teacher is compensated in an amount not exceeding 67 80 percent of the compensation established by the board for a full-time teacher with identical education and experience with the employing unit. The compensation of a teacher in the state colleges and university system may exceed the 67 80 percent limit if the teacher does not teach just one of the three quarters in the system's full school year, provided no additional services are performed while the teacher participates in the program.

Sec. 3. Minnesota Statutes 1996, section 354A.094, subdivision 2, is amended to read:

Subd. 2. [PART-TIME TEACHING POSITION, DEFINED.] For purposes of this section, the term "part-time teaching position" shall mean a teaching position within the district in which the teacher is employed for at least 50 full days or a fractional equivalent of 50 full days calculated using the appropriate minimum number of hours which would result in a full day of service credit by the appropriate association and for which the teacher is compensated in an amount not to exceed 67 80 percent of the compensation rate established by the board for a full-time teacher with identical education and experience within the district.

Sec. 4. Minnesota Statutes 1996, section 354A.094, subdivision 3, is amended to read:

Subd. 3. [QUALIFIED PART-TIME TEACHER PROGRAM PARTICIPATION REQUIREMENTS.] A teacher in the public schools of a city of the first class who has three years or more allowable service in the applicable retirement fund association or three years or more of full-time teaching service in Minnesota public elementary schools, Minnesota secondary schools, and technical Minnesota state colleges and universities system may, by agreement with the board of the employing district, be assigned to teaching service within the district in a part-time teaching position. The agreement must be executed before October 1 of the year for which the teacher requests to make retirement contributions under subdivision 4. A copy of the executed agreement must be filed with the executive director of the retirement fund association. If the copy of the executed agreement is filed with the association after October 1 of the year for which the teacher requests to make retirement contributions under subdivision 4, the employing school district shall pay a fine of $5 for each calendar day that elapsed since the October 1 due date. The association may not accept an executed agreement that is received by the association more than 15 months late. The association may not waive the fine required by this section.

Sec. 5. [EFFECTIVE DATE.]

(a) Sections 1 and 4 are effective on the day following final enactment.

(b) Sections 2 and 3 are effective on July 1, 1998.

Section 1. [356.55] [PRIOR SERVICE CREDIT PURCHASE PAYMENT AMOUNT DETERMINATION PROCEDURE.]

Subd. 2. [DETERMINATION.] (a) Unless the prior service credit purchase minimum amount determined under paragraph (d) is greater, the prior service credit purchase amount is the result obtained by subtracting the amount determined under paragraph (c) from the amount determined under paragraph (b).

(b) The present value of the unreduced single life retirement annuity, with the purchase of the additional service credit included, must be calculated as follows:

(1) the age at first eligibility for an unreduced single life retirement annuity, including the purchase of the additional service credit, must be determined;

(2) the length of total service credit, including the period of the purchase of the additional service credit, at the age determined under clause (1) must be determined;

(3) the highest five successive years average salary at the age determined under clause (1), assuming five percent annual compounding salary increases from the most current annual salary amount at the age determined under clause (1), must be determined;

(4) using the benefit accrual rate or rates applicable to the prospective purchaser of the service credit based on the prospective purchaser's actual date of entry into covered service, the length of service determined under clause (2), and the final average salary determined under clause (3), the annual unreduced single life retirement annuity amount must be determined;

(5) the actuarial present value of the projected annual unreduced single life retirement annuity amount determined under clause (4) at the age determined under clause (1), using the same actuarial factor that the plan would use to determine actuarial equivalence for optional annuity forms and related purposes, must be determined; and

(6) the discounted value of the amount determined under clause (5) to the date of the prospective purchase, using an interest rate of 8.5 percent and no mortality probability decrement, must be determined.

(c) The present value of the unreduced single life retirement annuity, without the purchase of the additional service credit included, must be calculated as follows:

(1) the age at first eligibility for an unreduced single life retirement annuity, not including the purchase of additional service credit, must be determined;

(2) the length of accrued service credit, without the period of of the purchase of the additional service credit, at the age determined under clause (1), must be determined;

(3) the highest five successive years average salary at the age determined under clause (1), assuming five percent annual compounding salary increases from the must current annual salary amount to the age determined under clause (1), must be determined;

(4) using the benefit accrual rate or rates applicable to the prospective purchaser of the service credit based on the prospective purchaser's actual date of entry into covered service the length of service credit determined under clause (2), and the final average salary determined under clause (3), the annual unreduced single life retirement annuity amount must be determined;

(5) the actuarial present value of the projected annual unreduced single life retirement annuity amount determined under clause (4) at the age determined under clause (1), using the same actuarial factor that the plan would use to determined actuarial equivalence for optional annuity forms and related purposes, must be determined;

(7) the net value of the discounted value determined under clause (6), must be determined by applying a service ratio, where the numerator is the total length of credited service determined under paragraph (b), clause (2), reduced by the period of the additional service credit proposed to be purchased, and where the denominator is the total length of service credit determined under clause (2).

(d) The minimum prior service credit purchase amount is the amount determined by multiplying the most current annual salary of the prospective purchaser by the combined current employee, employer, and any additional employer contribution rates for the applicable pension plan and by multiplying that results by the number of years of service or fractions of years of service of the potential service credit purchase.

Subd. 3. [SOURCE OF DETERMINATION.] The prior service credit purchase amounts under subdivision 2 must be calculated by the chief administrative officer of the public pension plan using a prior service credit purchase amount determination process that has been verified for accuracy and consistency under this section by the commission-retained actuary. That verification must be in writing and must occur before the first prior service credit purchase for the plan under this section is accepted and every five years thereafter or whenever the preretirement interest rate, postretirement interest rate, payroll growth, or mortality actuarial assumption for the applicable pension plan is modified under section 356.215, whichever occurs first.

Subd. 4. [PRIOR SERVICE CREDIT PURCHASE PROCESSING FEE.] A public pension plan may establish a fee to be charged to the prospective purchaser for processing a prior service credit purchase application and the prior service credit payment amount calculation. The fee must be established by the governing board of the pension plan and must be uniform for comparable service credit purchase situations or actuarial calculation requests. The prior service credit purchase processing fee structure must be published by the chief administrative officer of the applicable retirement plan in the State Register.

Subd. 5. [PAYMENT RESPONSIBILITY; EMPLOYER OPTION.] Unless the prior service credit purchase authorization special law or general statute provision explicitly specifies otherwise, the prior service credit purchase payment amount determined under subdivision 2 is payable by the purchaser, but the former employer of the purchaser or the current employer of the purchaser may, at its discretion, pay all or a portion of the purchase payment amount in excess of an amount equal to the employee contribution rate or rates in effect during the prior service period applied to the actual salary rates in effect during the prior service period, plus annual compound interest at the rate of 8.5 percent from the date on which the contributions would have been made if made contemporaneous with the service period to the date on which the payment is actually made.

Subd. 6. [REPORT ON PRIOR SERVICE CREDIT PURCHASES.] (a) As part of the regular data reporting to the consulting actuary retained by the legislative commission on pensions and retirement annually, the chief administrative officer of each public pension plan that has accepted a prior service credit purchase payment under this section shall report for any purchase, the purchaser, the purchaser's employer, the age of the purchaser, the period of the purchase, the purchaser's prepurchase accrued service credit, the purchaser's postpurchase accrued service credit, the purchaser's prior service credit payment, the prior service credit payment made by the purchaser's employer, and the amount of the additional benefit or annuity purchased.

(b) As part of the regular annual actuarial valuation for the applicable public pension plan prepared by the consulting actuary retained by the legislative commission on pensions and retirement, there must be an exhibit comparing for each purchase the total prior service credit payment received from all sources and the increased public pension plan actuarial accrued liability resulting from each purchase.

Subd. 7. [EXPIRATION OF PURCHASE PAYMENT DETERMINATION PROCEDURE.] (a) This section expires and is repealed on July 1, 2001.

Sec. 2. [356.551] [POST-JULY 1, 2001, PRIOR SERVICE CREDIT PURCHASE PAYMENT AMOUNT DETERMINATION PROCEDURE.]

(a) Unless the prior service credit purchase authorization special law or general statute provision explicitly specifies a different purchase payment amount determination procedure, and if section 356.55 has expired, this section governs the determination of the prior service credit purchase payment amount of any prior service credit purchase.

(b) The prior service credit purchase amount is an amount equal to the actuarial present value, on the date of payment, as calculated by the chief administrative officer of the pension plan and reviewed by the actuary retained by the legislative commission on pensions and retirement, of the amount of the additional retirement annuity obtained by the acquisition of the additional service credit in this section. Calculation of this amount must be made using the preretirement interest rate applicable to the public pension plan specified in section 356.215, subdivision 4d, and the mortality table adopted for the public pension plan. The calculation must assume continuous future service in the public pension plan until, and retirement at, the age at which the minimum requirements of the fund for normal retirement or retirement with an annuity unreduced for retirement at an early age, including section 356.30, are met with the additional service credit purchased. The calculation must also assume a full-time equivalent salary, or actual salary, whichever is greater, and a future salary history that includes annual salary increases at the applicable salary increase rate for the plan specified in section 356.215, subdivision 4d. Payment must be made in one lump sum within one year of the prior service credit authorization. Payment of the amount calculated under this subdivision must be made by the applicable eligible person. However, the current employer or the prior employer may, at its discretion, pay all or any portion of the payment amount that exceeds an amount equal to the employee contribution rates in effect during the period or periods of prior service applied to the actual salary rates in effect during the period or periods of prior service, plus interest at the rate of 8.5 percent a year compounded annually from the date on which the contributions would otherwise have been made to the date on which the payment is made. If the employer agrees to payments under this paragraph, the purchaser must make the employee payments required under this paragraph within 290 days of the prior service credit authorization. If that employee payment is made, the employer payment under this paragraph must be remitted to the chief administrative officer of the public pension plan within 60 days of receipt by the chief administrative officer of the employee payments specified under this paragraph.

(c) The prospective purchaser must provide any relevant documentation required by the chief administrative officer of the public pension plan to determine eligibility for the prior service credit under this section.

(d) Service credit for the purchase period must be granted by the public pension plan to the purchaser upon receipt of the purchase payment amount specified in paragraph (b).

Sec. 3. [PRIOR SERVICE CREDIT PURCHASE AUTHORIZATION.]

Subdivision 1. [INDEPENDENT SCHOOL DISTRICT NO. 77, MANKATO, TEACHER.] (a) Notwithstanding any provision of Minnesota Statutes, section 354.094, or other law to the contrary, an eligible person described in paragraph (b) is entitled to obtain allowable and formula service credit in the teachers retirement association for the period described in paragraph (c) upon the payment of the full service credit purchase amount specified in Minnesota Statutes, section 356.55.

(b) An eligible person is a person who was:

(1) born on June 23, 1946;

(2) granted an extended leave of absence from employment under the teacher mobility program by independent school district No. 77, Mankato, on March 3, 1986, for the period July 1, 1986, to June 30, 1989; and

(3) granted a leave which was erroneously characterized in the "other" category on the leave of absence report submitted to the teachers retirement association.

(d) Notwithstanding Minnesota Statutes, section 356.55, subdivision 5, the eligible person must pay, on or before September 1, 1998, an amount equal to the employee contribution rate or rates in effect during the prior service period applied to the actual salary rates in effect during the prior service period, plus annual compound interest at the rate of 8.5 percent from the date on which the contributions would have been made if made contemporaneous with the service period to the date on which the payment is actually made and independent school district No. 77, Mankato, must pay the balance of the prior service credit purchase payment amount calculated under Minnesota Statutes, section 356.55, within 30 days of the payment by the eligible person. The executive director of the teachers retirement association must notify the superintendent of independent school district No. 77, Mankato, of its payment amount and payment due date if the eligible person makes the required payment.

(e) If independent school district No. 77, Mankato, fails to pay its portion of the required prior service credit purchase payment amount, the executive director may notify the commissioner of finance of that fact and the commissioner of finance may order that the required school district payment be deducted from the next subsequent payment or payments of state education aid to the school district and be transmitted to the teachers retirement association.

Subd. 2. [INDEPENDENT SCHOOL DISTRICT NO. 199, INVER GROVE HEIGHTS, TEACHER.] (a) Notwithstanding Minnesota Statutes, section 354.096, an eligible person described in paragraph (b) is entitled to purchase allowable service credit in the teachers retirement association for the period described in paragraph (c) by paying the amount specified in Minnesota Statutes, section 356.55, subdivision 2.

(b) An eligible person is a person who:

(1) was on medical leave for multiple sclerosis in the fall of 1990;

(2) was employed by independent school district No. 199, Inver Grove Heights, during the period that the medical leave was taken; and

(3) was not properly notified of the deadline to purchase service credit for the medical leave period.

(c) The period for service credit purchase is 18 days of a period of medical leave during the fall of 1990.

(d) Notwithstanding Minnesota Statutes, section 356.55, subdivision 5, the eligible person must pay, on or before September 1, 1998, an amount equal to the employee contribution rate or rates in effect during the prior service period applied to the actual salary rates in effect during the prior service period, plus annual compound interest at the rate of 8.5 percent from the date on which the contributions would have been made if made contemporaneous with the service period to the date on which the payment is actually made and independent school district No. 199, Inver Grove Heights, must pay the balance of the prior service credit purchase payment amount calculated under Minnesota Statutes, section 356.55, within 30 days of the payment by the eligible person. The executive director of the teachers retirement association must notify the superintendent of independent school district No. 199, Inver Grove Heights, of its payment amount and payment due date if the eligible person makes the required payment.

(e) If independent school district No. 199, Inver Grove Heights, fails to pay its portion of the required prior service credit purchase payment amount, the executive director may notify the commissioner of finance of that fact and the commissioner of finance may order that the required school district payment be deducted from the next subsequent payment or payments of state education aid to the school district and be transmitted to the teachers retirement association.

Subd. 3. [PRE-JANUARY 1, 1998, LATE REPORTED QUALIFIED PART-TIME TEACHER PROGRAM AGREEMENT PERIODS.] (a) Notwithstanding any provision of Minnesota Statutes, section 354.66, to the contrary, an eligible person described in paragraph (b) is entitled to obtain allowable and formula service credit in the teachers retirement association for the period described in paragraph (c) upon the payment of the full service credit purchase amount specified in Minnesota Statutes, section 356.55.

(c) The period for service credit purchase is the uncredited portion of a full year of service credit during the 1994-1995, 1995-1996, 1996-1997, and 1997-1998 school years where the uncredited period of service resulted solely from a failure of the employing unit to file the part-time teaching participation agreement with the teachers retirement association in a timely fashion.

(d) Notwithstanding Minnesota Statutes, section 356.55, subdivision 5, the eligible person must pay, on or before November 30, 1998, an amount equal to the employee contribution rate or rates in effect during the prior service period applied to the actual salary rates in effect during the prior service period, plus annual compound interest at the rate of 8.5 percent from the date on which the contributions would have been made if made contemporaneous with the service period to the date on which the payment is actually made and the employing unit that agreed to the part-time teaching service participation program must pay the balance of the prior service credit purchase payment amount calculated under Minnesota Statutes, section 356.55, within 30 days of the payment by the eligible person. The executive director of the teachers retirement association must notify the chief administrative officer of the applicable employing unit of its payment amount and payment due date if the eligible person makes the required payment.

(e) If the applicable employing unit fails to pay its portion of the required prior service credit purchase payment amount, the executive director may notify the commissioner of finance of that fact and the commissioner of finance may order that the required employer payment be deducted from the next subsequent payment or payments of any state education or other aid to that employing unit and be transmitted to the teachers retirement association.

Subd. 4. [PURCHASE OF SERVICE CREDIT AUTHORIZATION; MIDDLE MANAGEMENT ASSOCIATION EMPLOYEE.] (a) Notwithstanding Minnesota Statutes, sections 352.01, subdivision 2, and 352.029, subdivision 1, and Minnesota Statutes 1997 Supplement, section 352.01, subdivision 2a, an eligible employee described in paragraph (b) is eligible for membership in the Minnesota state retirement system general plan and is eligible to purchase service credit in that plan as specified in paragraph (d).

(b) An eligible employee is a person who:

(1) has been employed by the middle management association since February 14, 1994; and

(2) was born on September 13, 1958.

(c) An eligible employee in paragraph (b) remains eligible for membership in the Minnesota state retirement system general plan, under this subdivision, while the individual remains employed by the middle management association or a successor organization providing contribution requirements and other general requirements for membership are met.

(d) An eligible employee under paragraph (b) is entitled to purchase service credit in the Minnesota state retirement system general plan for the period of service prior to the effective date of this act for service with the middle management association. An eligible employee may not purchase service credit for any period during which the employer has made contributions on behalf of the employee to a defined contribution pension plan or for any period during which the employee or the employer have made contributions to a defined benefit pension plan covering public, nonprofit, or private sector employees, other than a volunteer firefighter relief association governed by Minnesota Statutes, chapter 424A. Authority to make the payment terminates on July 1, 1999, or upon termination of employment with the middle management association, whichever is earlier.

Subd. 5. [INDEPENDENT SCHOOL DISTRICT NO. 13, COLUMBIA HEIGHTS, TEACHER.] (a) Notwithstanding Minnesota Statutes, section 354.094, an eligible person described in paragraph (b) is entitled to purchase allowable and formula service credit in the teachers retirement association for the period described in paragraph (c) by paying the amount specified in Minnesota Statutes, section 356.55, subdivision 2.

(c) The period for service credit purchase is the extended leave of absence for the 1996-1997 school year.

(d) Notwithstanding Minnesota Statutes, section 356.55, subdivision 5, the eligible person must pay, on or before September 1, 1998, an amount equal to the employee, employer, and employer additional contribution rates in effect during the prior service period applied to the actual salary rates in effect during the prior service period, plus annual compound interest at the rate of 8.5 percent from the date on which the contributions would have been made if made contemporaneous with the service period to the date on which the payment is actually made and independent school district No. 13, Columbia Heights, must pay the balance of the prior service credit purchase payment amount calculated under Minnesota Statutes, section 356.55, within 30 days of the payment by the eligible person. The executive director of the teachers retirement association must notify the superintendent of independent school district No. 13, Columbia Heights, of its payment amount and payment due date if the eligible person makes the required payment.

(e) If independent school district No. 13, Columbia Heights, fails to pay its portion of the required prior service credit purchase payment amount, the executive director may notify the commissioner of finance of that fact and the commissioner of finance may order that the required employer payment be deducted from any state education or other aid payable to independent school district No. 13, Columbia Heights, and be transmitted to the teachers retirement association.

Subd. 6. [WINONA STATE UNIVERSITY FACULTY MEMBER.] (a) Notwithstanding Minnesota Statutes, section 354.094, an eligible person described in paragraph (b) is entitled to purchase allowable service credit in the teachers retirement association for the period described in paragraph (c) by paying the amount specified in Minnesota Statutes, section 356.55, subdivision 2.

(b) An eligible person for purposes of paragraph (a) is a person who was born on September 5, 1943, was initially hired by Winona state university on September 4, 1979, was granted an extended leave of absence by Winona state university on March 18, 1996, and was unable to make contributions under Minnesota Statutes, section 354.094, subdivision 1, because of the failure of Winona state university to timely submit the leave of absence report to the teachers retirement association.

(c) The period for service credit purchase is the first year of a three year extended leave of absence that began with the 1996-1997 school year.

(d) Notwithstanding Minnesota Statutes, section 356.55, subdivision 5, the eligible person must pay, on or before September 1, 1998, an amount equal to the employee, employer, and employer additional contribution rates in effect during the prior service period applied to the actual salary rates in effect during the prior service period, plus annual compound interest at the rate of 8.5 percent from the date on which the contributions would have been made if made contemporaneous with the service period to the date on which the payment is actually made and Winona state university must pay the balance of the prior service credit purchase payment amount calculated under Minnesota Statutes, section 356.55, within 30 days of the payment by the eligible person. The executive director of the teachers retirement association must notify the president of Winona state university of its payment amount and payment due date if the eligible person makes the required payment.

(e) If Winona state university fails to pay its portion of the required prior service credit purchase payment amount, the executive director may notify the commissioner of finance of that fact and the commissioner of finance may order that the required employer payment be deducted from any appropriation to the Minnesota state colleges and universities system and be transmitted to the teachers retirement association.

Subd. 7. [INDEPENDENT SCHOOL DISTRICT NO. 621, MOUNDS VIEW, TEACHER.] (a) Notwithstanding Minnesota Statutes, section 354.092, an eligible person described in paragraph (b) is entitled to purchase allowable service credit in the teachers retirement association for the period described in paragraph (c) by paying the amount specified in Minnesota Statutes, section 356.55, subdivision 2.

(b) An eligible person for purposes of paragraph (a) is a person who was born on December 19, 1940, was initially employed as a teacher on August 27, 1968, and is employed by independent school district No. 621, Mounds View.

(d) Notwithstanding Minnesota Statutes, section 356.55, subdivision 5, the eligible person must pay, on or before September 1, 1998, an amount equal to the employee contribution rate or rates in effect during the prior service period applied to the actual salary rates in effect during the prior service period, plus annual compound interest at the rate of 8.5 percent from the date on which the contributions would have been made if made contemporaneous with the service period to the date on which the payment is actually made. Independent school district No. 621, Mounds View, must pay the balance of the prior service credit purchase payment amount calculated under Minnesota Statutes, section 356.55, within 30 days of the payment by the eligible person. The executive director of the teachers retirement association must notify the superintendent of independent school district No. 621, Mounds View, of its payment amount and payment due date if the eligible person makes the required payment.

(e) If independent school district No. 621, Mounds View, fails to pay its portion of the required prior service credit purchase payment amount, the executive director may notify the commissioner of finance of that fact and the commissioner of finance may order that the required employer payment be deducted from the next subsequent payment or payments of state education aid to the school district be transmitted to the teachers retirement association.

Subd. 8. [INDEPENDENT SCHOOL DISTRICT NO. 709, DULUTH, TEACHER.] (a) Notwithstanding any provision of Minnesota Statutes, chapter 354A, the articles of incorporation of the Duluth teachers retirement fund association, or the Duluth teachers retirement fund association bylaws to the contrary, an eligible person described in paragraph (b) is entitled to purchase allowable service credit in the Duluth teachers retirement fund association for the periods described in paragraph (c) by paying the amount specified in Minnesota Statutes, section 356.55, subdivision 2.

(b) An eligible person for purposes of paragraph (a) is a person who was born on October 29, 1942, was first employed by independent school district No. 709, Duluth, on September 7, 1966, was granted a maternity leave that began on February 26, 1968, was employed by independent school district No. 709, Duluth, on a less-than-full-time basis during the 1970-1971 and 1971-1972 school years, and was employed on a full-time contract basis from September 4, 1972, through the 1997-1998 school year.

(c) The period for service credit purchase is any portion of the period February 26, 1968, to September 4, 1972, that was not previously credited as allowable service by the Duluth teachers retirement fund association, but not to exceed one year of service credit for any school year.

Subd. 9. [INDEPENDENT SCHOOL DISTRICT NO. 200, HASTINGS, TEACHER.] (a) Notwithstanding Minnesota Statutes, section 354.094, an eligible person described in paragraph (b) is entitled to purchase allowable and formula service credit in the teachers retirement association for the period described in paragraph (c) by paying the amount specified in Minnesota Statutes, section 356.55, subdivision 2.

(b) An eligible person for purposes of paragraph (a) is a person who was born on December 17, 1941, was initially employed by independent school district No. 200, Hastings, and was first granted an extended leave of absence for the 1996-1997 school year.

(c) The period for service credit purchase is the 1996-1997 school year.

(d) Notwithstanding Minnesota Statutes, section 356.55, subdivision 5, the eligible person must pay, on or before September 1, 1998, an amount equal to the employee contribution rate or rates in effect during the prior service period applied to the actual salary rates in effect during the prior service period, plus annual compound interest at the rate of 8.5 percent from the date on which the contributions would have been made if made contemporaneous with the service period to the date on which the payment is actually made. Independent school district No. 200, Hastings, must pay the balance of the prior service credit purchase payment amount calculated under Minnesota Statutes, section 356.55, within 30 days of the payment by the eligible person. The executive director of the teachers retirement association must notify the superintendent of independent school district No. 200, Hastings, of its payment amount and payment due date if the eligible person makes the required payment.

Sec. 4. [EFFECTIVE DATE.]

Sections 1, 2, and 3 are effective on the day following final enactment.

Section 1. Minnesota Statutes 1997 Supplement, section 15A.083, subdivision 5, is amended to read:

Subd. 5. [TAX COURT.] The salary of a judge of the tax court is the same as 98.52 percent of the salary for a district court judge. The salary of the chief tax court judge is the same as 98.52 percent of the salary for a chief district court judge.

Sec. 2. Minnesota Statutes 1997 Supplement, section 15A.083, subdivision 6a, is amended to read:

Subd. 6a. [ADMINISTRATIVE LAW JUDGE; SALARIES.] The salary of the chief administrative law judge is the same as 98.52 percent of the salary of a district court judge. The salaries of the assistant chief administrative law judge and administrative law judge supervisors are 95 93.60 percent of the salary of a district court judge. The salary of an administrative law judge employed by the office of administrative hearings is 90 88.67 percent of the salary of a district court judge as set under section 15A.082, subdivision 3.

Sec. 3. Minnesota Statutes 1997 Supplement, section 15A.083, subdivision 7, is amended to read:

Subd. 7. [WORKERS' COMPENSATION COURT OF APPEALS AND COMPENSATION JUDGES.] Salaries of judges of the workers' compensation court of appeals are the same as 98.52 percent of the salary for district court judges. The salary of the chief judge of the workers' compensation court of appeals is the same as 98.52 percent of the salary for a chief district court judge. Salaries of compensation judges are 90 88.67 percent of the salary of district court judges. The chief workers' compensation settlement judge at the department of labor and industry may be paid an annual salary that is up to five percent greater than the salary of workers' compensation settlement judges at the department of labor and industry.

Sec. 4. Minnesota Statutes 1996, section 490.123, subdivision 1a, is amended to read:

Subd. 1a. [MEMBER CONTRIBUTION RATES.] (a) A judge who is covered by the federal old age, survivors, disability, and health insurance program shall contribute to the fund from each salary payment a sum equal to 6.27 8.00 percent of salary.

(b) A judge not so covered shall contribute to the fund from each salary payment a sum equal to 8.15 percent of salary.

(c) The contribution under this subdivision is payable by salary deduction.

Sec. 5. Minnesota Statutes 1996, section 490.123, subdivision 1b, is amended to read:

Subd. 1b. [EMPLOYER CONTRIBUTION RATE.] The employer contribution rate on behalf of a judge is 22 20.5 percent of salary.

The employer contribution must be paid by the state court administrator and is payable at the same time as member contributions under subdivision 1a are remitted.

Sec. 6. Laws 1997, Second Special Session chapter 3, section 16, is amended to read:

Sec. 16. [SALARIES OF CONSTITUTIONAL OFFICERS, LEGISLATORS, AND JUDGES.]

(b) The salaries of legislators are increased by 5.0 percent effective January 4, 1999.

(c) The salaries of the judges of the supreme court, court of appeals, and district court are increased by 4.0 percent effective July 1, 1997, and by 5.0 percent effective January 1, 1998, and by 1.5 percent effective July 1, 1998.

(d) Effective July 1, 1999, the salaries of judges of the supreme court, court of appeals, and district court are increased by the average of the general salary adjustments for state employees in fiscal year 1998 provided by negotiated collective bargaining agreements or arbitration awards ratified by the legislature in the 1998 legislative session.

(e) Effective January 1, 2000, the salaries of judges of the supreme court, court of appeals, and district court are increased by the average of the general salary adjustments for state employees in fiscal year 1999 provided by negotiated collective bargaining agreements or arbitration awards ratified by the legislature in the 1998 legislative session.

(f) The commissioner of employee relations shall calculate the average of the general salary adjustments provided by negotiated collective bargaining agreements or arbitration awards ratified by the legislature in the 1998 legislative session. Negotiated collective bargaining agreements or arbitration awards that do not include general salary adjustments may not be included in these calculations. The commissioner shall weigh the general salary adjustments by the number of full-time equivalent employees covered by each agreement or arbitration award. The commissioner shall calculate the average general salary adjustment for each fiscal year covered by the agreements or arbitration awards. The results of these calculations must be expressed as percentages, rounded to the nearest one-tenth of one percent. The commissioner shall calculate the new salaries for the positions listed in paragraphs (d) and (e) using the applicable percentages from the calculations in this paragraph and report them to the speaker of the house, the president of the senate, the chief justice of the supreme court, and the governor.

Sec. 7. [SALARY INCREASE CONDITIONED ON MEMBER CONTRIBUTION INCREASE.]

The increase in judicial salaries under section 6 is not applicable to a judge if the member contribution rate increase under section 4, paragraph (a), is not also deducted from the salary of the judge.

Sec. 8. [EFFECTIVE DATE.]

Sections 1 to 7 are effective on July 1, 1998.

Section 1. Minnesota Statutes 1996, section 352D.12, is amended to read:

352D.12 [TRANSFER OF PRIOR SERVICE CONTRIBUTIONS.]

(a) An employee who is a participant in the unclassified program and who has prior service credit in a covered plan under chapters 3A, 352, 352C, 353, 354, 354A, and 422A may, within the time limits specified in this section, elect to transfer to the unclassified program prior service contributions to one or more of those plans. Participants with six or more years of prior service credit in a plan governed by chapter 3A or 352C on July 1, 1998, may not transfer prior service contributions. Participants with less than six years of prior service credit in a plan governed by chapter 3A or 352C on July 1, 1998, must be contributing to the unclassified plan on or after January 5, 1999, in order to transfer prior contributions.

(c) If a participant has taken a refund from a fund retirement plan listed in this section, the participant may repay the refund to that fund plan, notwithstanding any restrictions on repayment to that fund plan, plus 8.5 percent interest compounded annually and have the accumulated employee and equal employer contributions transferred to the unclassified program with interest at an annual rate of 8.5 percent compounded annually based on fiscal year balances. If a person repays a refund and subsequently elects to have the money transferred to the unclassified program, the repayment amount, including interest, is added to the fiscal year balance in the year which the repayment was made.

(d) A participant electing to transfer prior service contributions credited to a retirement plan governed by chapter 352, 353, 354, 354A, or 422A as provided under this section must complete the application for the transfer and repay any refund within one year of July 1, 1985 or the commencement of the employee's participation in the unclassified program, whichever is later. A participant electing to transfer prior service contributions credited to a retirement plan governed by chapter 3A or 352C as provided under this section must complete the application for the transfer and repay any refund between January 5, 1999, and June 1, 1999, if the employee commenced participation in the unclassified program before January 5, 1999, or within one year of the commencement of the employee's participation in the unclassified program if the employee commenced participation in the unclassified program after January 4, 1999.

Sec. 2. [FUNDING.]

Money appropriated in Laws 1997, chapter 202, article 1, section 31, may be used to make transfers of funds on behalf of legislators and constitutional officers under section 1.

Sec. 3. [EFFECTIVE DATE.]

Sections 1 and 2 are effective July 1, 1998.

Section 1. [COLUMBIA HEIGHTS VOLUNTEER FIRE DEPARTMENT RELIEF ASSOCIATION; INCORPORATION AND PLAN RESTRUCTURING.]

Subdivision 1. [ORGANIZATION AND PLAN RESTRUCTURING.] Notwithstanding the provisions of Laws 1977, chapter 374, sections 38 to 60, as amended, the entity currently known as the "Columbia Heights fire department relief association, volunteer division" shall become incorporated under Minnesota Statutes, chapter 317A, and be known as the "Columbia Heights volunteer fire department relief association." The new entity will be governed by Minnesota Statutes, chapters 69, 317A, 356, 356A, and 424A, and any other laws applicable to volunteer fire department relief associations. The Columbia Heights volunteer fire department relief association may adopt the existing bylaws of the "Columbia Heights fire department relief association, volunteer division"; provided, however, that the bylaws must provide that future benefits payable to any member of the association are defined contribution lump sum service pensions under Minnesota Statutes, section 424A.02, subdivision 4.

Subd. 2. [BOARD RESTRUCTURING.] The board must be reconstituted in conformance with Minnesota Statutes, section 424A.04 within 90 days after the effective date of this section.

Sec. 2. [MINNEAPOLIS FIRE; OPTIONAL ANNUITY EXTENSION TO CERTAIN SURVIVORS.]

(a) Notwithstanding Laws 1997, chapter 233, article 4, section 18, the surviving spouse of any service pensioner or disability benefit recipient of the Minneapolis fire department relief association who died between July 1, 1997, and October 1, 1997, is entitled to a surviving spouse benefit equal to the 100 percent joint and survivor annuity amount which the decedent would have been eligible to select if the decedent had been entitled and able to select an optional annuity form on the date of death.

(c) The benefit under this section accrues as of October 1, 1997, and is payable on the first day of the month next following the effective date of this section. The initial benefit payment must include the increase amounts retroactive to October 1, 1997.

Sec. 3. [EFFECTIVE DATE.]

(a) Section 1 is effective the day after approval by the Columbia Heights city council and compliance with Minnesota Statutes, section 645.021.

(b) Section 2 is effective upon approval by the city council of the city of Minneapolis and compliance with Minnesota Statutes, section 645.021, subdivision 3."

Delete the title and insert:

"A bill for an act relating to retirement; various retirement plans; adjusting pension coverage for certain privatized public hospital employees; providing for increased survivor benefits relating to certain public employees murdered in the line of duty; authorizing certain service credit purchases; specifying prior service credit purchase payment amount determination procedures increasing salaries of various judges; modifying other judicial salaries; modifying the judges retirement plan member and employer contribution rates; authorizing the transfer of certain prior retirement contributions from the legislators retirement plan and from the elective state officers retirement plan; creating a contribution transfer account in the general fund of the state; appropriating money; reformulating the Columbia Heights volunteer firefighters relief association plan as a defined contribution plan under the general volunteer fire law; restructuring the Columbia Heights volunteer firefighter relief association board; modifying various higher education retirement plan provisions; modifying administrative expense provisions for various public pension plans; expanding the teacher retirement plans part-time teaching positions eligible to participate in the qualified full-time service credit for part-time teaching service program; making certain Minneapolis fire department relief association survivor benefit options retroactive; providing increased disability benefit coverage for certain local government correctional facility employees; increasing local government correctional employee and employer contribution rates; providing increased survivor benefits to certain Minneapolis employee retirement fund survivors; authorizing certain Hennepin county regional park employees to change retirement plan membership; amending Minnesota Statutes 1996, sections 136.45, by adding a subdivision; 136F.48; 352.96, subdivision 4; 352D.09, subdivision 7; 352D.12; 353D.05, subdivision 3; 354.445; 354.66, subdivisions 2 and 3; 354A.094, subdivisions 2 and 3; 354B.23, by adding a subdivision; 354C.12, by adding a subdivision; 383B.52; 422A.23, subdivision 2; and 490.123, subdivisions 1a and 1b; Minnesota Statutes 1997 Supplement, sections 15A.083, subdivisions 5, 6a, and 7; 354B.25, subdivisions 1a and 5; and 354C.12, subdivision 4, and by adding a subdivision; and Laws 1997 Second Special Session, chapter 3, section 16; proposing new law for coding in Minnesota Statutes, chapter 356; repealing Minnesota Statutes 1996, sections 11A.17, subdivision 10a; and 352D.09, subdivision 8; Minnesota Statutes 1997 Supplement, section 136F.45."

With the recommendation that when so amended the bill pass and be re-referred to the Committee on Ways an Means.

The report was adopted.

Long from the Committee on Taxes to which was referred:

H. F. No. 2983, A bill for an act relating to mortgages; enacting the Minnesota Residential Mortgage Originator and Servicer Licensing Act; establishing licensing and enforcement mechanisms; amending Minnesota Statutes 1996, sections 47.206, subdivision 1; 82.17, subdivision 4; 82.18; and 82.27, subdivision 1; proposing coding for new law as Minnesota Statutes, chapter 58; repealing Minnesota Statutes 1996, section 82.175.

Reported the same back with the recommendation that the bill pass and be re-referred to the Committee on Ways and Means.

Long from the Committee on Taxes to which was referred:

H. F. No. 2986, A bill for an act relating to taxation; income; requiring the commissioner of revenue to calculate the Minnesota working family credit for certain taxpayers; amending Minnesota Statutes 1996, section 290.0671, subdivision 5.

Reported the same back with the recommendation that the bill pass and be placed on the Consent Calendar.

The report was adopted.

Jennings from the Committee on Regulated Industries and Energy to which was referred:

H. F. No. 3064, A bill for an act relating to telecommunications; amending the state telephone assistance program to match federal requirements; requiring the department of human services to automatically enroll eligible persons based on information in state information systems; increasing the TAP surcharge; requiring public utilities commission to develop and implement state universal service fund by December 31, 2000; amending Minnesota Statutes 1996, sections 237.69, subdivision 5; and 237.70, subdivision 6, and by adding a subdivision; Minnesota Statutes 1997 Supplement, section 237.70, subdivisions 4a and 7; proposing coding for new law in Minnesota Statutes, chapter 237; repealing Minnesota Statutes 1996, section 237.69, subdivision 9.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 1996, section 237.69, subdivision 5, is amended to read:

Subd. 5. [ACCESS LINE.] "Access line" means telephone company-owned facilities furnished to permit switched access to the telecommunications network that extend from a central office to the demarcation point on the property where the subscriber is served. The term "Access line" includes access lines provided to residential and business subscribers, includes centrex access lines on a trunk-equivalent basis, but and cellular and other nonwire access services or nonwire access line equivalents. "Access line" does not include private nonswitched or wide area telephone service access lines.

Sec. 2. Minnesota Statutes 1997 Supplement, section 237.70, subdivision 4a, is amended to read:

Subd. 4a. [HOUSEHOLDS ELIGIBLE ELIGIBILITY FOR CREDITS; INCORPORATING REVISED FEDERAL STANDARDS.] The telephone assistance plan must provide telephone assistance credit for a residential household in Minnesota that meets each of the following criteria:

(1) has a household member who:

(i) subscribes to local exchange service; and

(ii) is either disabled or 65 years of age or older;

(2) whose household income is 150 percent or less of federal poverty guidelines or is currently eligible for:

(i) aid to families with dependent children or Minnesota family investment program-statewide;

(ii) medical assistance;

(iii) general assistance;

(v) food stamps;

(vi) refugee cash assistance or refugee medical assistance;

(vii) energy assistance; or

(viii) supplemental security income; and

(3) who has been certified as eligible for telephone assistance plan credits.

Sec. 3. Minnesota Statutes 1996, section 237.70, is amended by adding a subdivision to read:

Subd. 4b. [ELIGIBILITY FOR CREDITS; EXISTING RECIPIENTS] A residential household in Minnesota that participated in the telephone assistance plan during the service provider's billing cycle immediately prior to the effective date of this act is entitled to receive continued telephone assistance credits, regardless of whether the household meets the criteria in subdivision 4a, provided the residential household currently meets the income criteria for:

(i) aid to families with dependent children or Minnesota family investment program-statewide;

(ii) medical assistance;

(iii) general assistance;

(iv) Minnesota supplemental aid;

(v) food stamps;

(vi) refugee cash assistance or refugee medical assistance;

(vii) energy assistance; or

(viii) supplemental security income.

Sec. 4. Minnesota Statutes 1996, section 237.70, subdivision 6, is amended to read:

Subd. 6. [FUNDING.] The commission shall provide for the funding of the telephone assistance plan by assessing a uniform recurring monthly surcharge, not to exceed ten cents per access line, applicable to all classes and grades of access lines provided by each telephone company in the state. Prior to July 1, 1998, the monthly surcharge must not exceed ten cents per access line. After July 1, 1998, the monthly surcharge must be equal to ten cents per access line. This section expires December 31, 1999. If the legislature provides funding for the telephone assistance plan after December 31, 1999, the funding shall be by appropriation from the general fund.

Sec. 5. Minnesota Statutes 1997 Supplement, section 237.70, subdivision 7, is amended to read:

Subd. 7. [ADMINISTRATION.] The telephone assistance plan must be administered jointly by the commission, the department of human services, and the telephone companies in accordance with the following guidelines:

household income, or other documentation of income deemed acceptable by the department of human services. The application form must state that failure to submit proof this documentation with the application will result in the applicant being found ineligible. Each telephone company shall annually mail a notice of the availability of the telephone assistance plan to each residential subscriber in a regular billing and shall mail the application form to customers when requested.

The notice must state the following:

YOU MAY BE ELIGIBLE FOR ASSISTANCE IN PAYING YOUR TELEPHONE BILL IF YOU ARE 65 YEARS OF AGE OR OLDER OR ARE DISABLED AND IF YOU MEET CERTAIN HOUSEHOLD INCOME LIMITS. FOR MORE INFORMATION OR AN APPLICATION ENROLLMENT FORM PLEASE CONTACT . . . . .

(b) The department of human services shall determine the eligibility for telephone assistance plan credits at least annually according to the criteria contained in subdivision subdivisions 4a and 4b.

(c) An application The enrollment form may be made submitted by the telephone service subscriber, the subscriber's spouse, or a person authorized by the subscriber to act on the subscriber's behalf. On completing the application certifying that the statutory criteria for eligibility are satisfied enrollment form, the applicant must return the application form to an office of the department of human services specially designated to process telephone assistance plan applications enrollments. On receiving a completed application enrollment form and documentation demonstrating income eligibility from an applicant, the department of human services shall determine the applicant's eligibility or ineligibility within 120 days. If the department fails to do so, it shall within three working days provide written notice to the applicant's telephone company that the company shall provide telephone assistance plan credits against monthly charges in the earliest possible month following receipt of the written notice. The applicant must receive telephone assistance plan credits until the earliest possible month following the company's receipt of notice from the department that the applicant is ineligible enroll the applicant in the telephone assistance plan.

If the income documentation provided by the applicant does not demonstrate income eligibility for the telephone assistance plan, the department of human services determines shall determine that an the applicant is not eligible to receive telephone assistance plan credits, it and shall notify the applicant within ten working days of that determination.

Within ten working days of determining that an applicant is eligible to receive telephone assistance plan credits, the department of human services shall provide written notification to the telephone company that serves the applicant. The notice must include the applicant's name, address, and telephone number and the date enrolled in the telephone assistance program.

Each telephone company shall provide telephone assistance plan credits against monthly charges in the earliest possible month following receipt of notice from the department of human services.

By December 31 April 15 of each year, all enrollees, including those automatically enrolled under subdivision 8, shall provide the department of human services with updated income documentation. The department of human services shall review each enrollee's updated documentation and shall redetermine eligibility of each person receiving telephone assistance plan credits, as required in paragraph (b). The department of human services shall submit an annual report to the commission by January 15 of each year showing that the department has determined the eligibility for telephone assistance plan credits of each person receiving the credits or explaining why the determination has not been made and showing how and when the determination will be completed. Any enrollee who fails to provide regular updates of income documentation as required under this paragraph may be deemed ineligible for continued assistance.

If the department of human services determines that a current recipient of telephone assistance plan credits an enrollee's updated income information demonstrates that the enrollee is not eligible to receive the credits, it the department of human services shall notify, in writing, the recipient within ten working days and the telephone company serving the recipient within 20 working days of the determination. The notice must include the recipient's name, address, and telephone number.

Each telephone company that disconnects a subscriber receiving the telephone assistance plan credit shall report the disconnection to the department of human services. The reports must be submitted monthly, identifying the subscribers disconnected. Telephone companies that do not disconnect a subscriber receiving the telephone assistance plan credit are not required to report.

If the telephone assistance plan credit is not itemized on the subscriber's monthly charges bill for local telephone service, the telephone company must notify the subscriber of the approval for the telephone assistance plan credit.

(d) The commission shall serve as the coordinator of the telephone assistance plan and be reimbursed for its administrative expenses from the surcharge revenue pool. As the coordinator, the commission shall:

(1) establish a uniform statewide surcharge in accordance with subdivision 6;

(2) establish a uniform statewide level of telephone assistance plan credit that each telephone company shall extend to each eligible household in its service area first participating in the telephone assistance plan on or after the effective date of this bill;

(3) establish a statewide level of telephone assistance plan credit that each telephone company shall extend to each eligible household in its service area that was also a participant in the telephone assistance plan during the service provider's billing cycle immediately prior to the effective date of this act. The credit amount under this clause shall not be lower than the statewide level of telephone assistance plan credit the residential household was receiving during the billing cycle immediately prior to the effective date of this act unless a lower credit amount is required in a final order of the Federal Communications Commission;

(3) (4) require each telephone company to account to the commission on a periodic basis for surcharge revenues collected by the company, expenses incurred by the company, not to include expenses of collecting surcharges, and credits extended by the company under the telephone assistance plan;

(4) (5) require each telephone company to remit surcharge revenues to the department of administration for deposit in the fund; and

(5) (6) remit to each telephone company from the surcharge revenue pool the amount necessary to compensate the company for expenses, not including expenses of collecting the surcharges, and telephone assistance plan credits. When it appears that the revenue generated by the maximum surcharge permitted under subdivision 6 will be inadequate to fund any particular established level of telephone assistance plan credits, the commission shall reduce the credits to a level that can be adequately funded by the maximum surcharge. Similarly, the commission may increase the level of the telephone assistance plan credit that is available or reduce the surcharge to a level and for a period of time that will prevent an unreasonable overcollection of surcharge revenues.

(e) Each telephone company shall maintain adequate records of surcharge revenues, expenses, and credits related to the telephone assistance plan and shall, as part of its annual report or separately, provide the commission and the department of public service with a financial report of its experience under the telephone assistance plan for the previous year. That report must also be adequate to satisfy the reporting requirements of the federal matching plan.

(f) The department of public service shall investigate complaints against telephone companies with regard to the telephone assistance plan and shall report the results of its investigation to the commission.

Sec. 6. Minnesota Statutes 1996, section 237.70, is amended by adding a subdivision to read:

(b) The department of human services shall automatically enroll eligible persons in the telephone assistance program on a random basis according to the following schedule:

(1) by July 1, 1999, one-third of the total number of persons eligible for automatic enrollment as of July 1, 1998;

(2) by July 1, 2000, two-thirds of that total; and

(3) by July 1, 2001, all persons eligible for automatic enrollment.

(c) The departments of human services; children, families, and learning; and revenue are authorized to share income information contained in state automated information systems for purposes consistent with this section.

Sec. 7. [EFFECTIVE DATE.]

Sections 1 to 6 are effective the day following final enactment."

Delete the title and insert:

"A bill for an act relating to telecommunications; amending the state telephone assistance program to match federal requirements; modifying TAP eligibility criteria; requiring the department of human services to automatically enroll eligible persons based on information in state information systems; setting and abolishing TAP surcharge; amending Minnesota Statutes 1996, sections 237.69, subdivision 5; and 237.70, subdivision 6, and by adding subdivisions; Minnesota Statutes 1997 Supplement, section 237.70, subdivisions 4a and 7."

With the recommendation that when so amended the bill pass and be re-referred to the Committee on Rules and Legislative Administration.

The report was adopted.

Osthoff from the Committee on Environment, Natural Resources and Agriculture Finance to which was referred:

H. F. No. 3069, A bill for an act relating to the environment; authorizing petroleum fund reimbursement to eligible small business owners; modifying reimbursement for small gasoline retailers; amending Minnesota Statutes 1996, section 115C.09, by adding a subdivision; Minnesota Statutes 1997 Supplement, section 115C.09, subdivision 3f.

Reported the same back with the following amendments:

Page 1, line 25, reinstate "1997" and delete "1995"

With the recommendation that when so amended the bill pass and be re-referred to the Committee on Economic Development and International Trade.

The report was adopted.

Kahn from the Committee on Governmental Operations to which was referred:

commissions; amending Minnesota Statutes 1996, section 349A.06, by adding a subdivision; 349A.09, subdivision 2; 349A.10, subdivision 3; and 349A.11; proposing coding for new law in Minnesota Statutes, chapter 349A.

Reported the same back with the following amendments:

Page 3, line 11, reinstate the stricken language and delete "four"

Page 4, lines 1 and 2, reinstate the stricken language

Page 4, delete line 10 and insert "misdemeanor. A violation of paragraph (a) subdivision 1, clause (3), is a"

Page 4, lines 11 to 13, reinstate the stricken language

With the recommendation that when so amended the bill pass and be re-referred to the Committee on Ways and Means.

The report was adopted.

Osthoff from the Committee on Environment, Natural Resources and Agriculture Finance to which was referred:

H. F. No. 3140, A bill for an act relating to natural resources; adding to state parks; creating a new recreation area; providing for a state park permit exemption; amending Minnesota Statutes 1996, section 85.054, by adding a subdivision.

Reported the same back with the following amendments:

Page 5, line 23, delete everything after the period

Page 5, delete line 24

With the recommendation that when so amended the bill pass.

The report was adopted.

Rest from the Committee on Local Government and Metropolitan Affairs to which was referred:

H. F. No. 3309, A bill for an act relating to the city of Richfield; authorizing establishment of tax increment financing districts subject to special rules.

Reported the same back with the following amendments:

Page 1, after line 10, insert:

"Subd. 2. [AIRPORT IMPACT ZONE.] "Airport impact zone" means that portion of the project that:

(1) is located within the 60 DNL contour surrounding the Minneapolis-St. Paul international airport; or

(2) is located within 1,600 feet, a distance representing the 75db of low frequency noise, of a runway planned or used by aircraft at the Minneapolis-St. Paul international airport; or

Page 1, line 11, delete "2" and insert "3"

Page 1, line 12, delete "3" and insert "4"

Page 1, delete lines 18 to 23

Page 2, delete lines 1 to 6

Page 2, line 8, delete "(a)"

Page 2, delete lines 13 to 21

Page 2, line 25, delete "special" and insert "housing development account which must be maintained as a separate"

Page 3, line 1, after "(1)" insert "with regard to districts in the airport impact zone,"

Page 3, after line 6, insert:

"(b)(1) The governing body of the city may elect to compute the original net tax capacity for a district within the airport impact zone as the tax capacity of each parcel minus the product resulting from multiplying the estimated cost of acquisition, demolition, and relocation, as applicable for the parcel and as provided by the authority, by the class rate for the parcel. The resulting amount may not be less than zero.

(2) The governing body of the city may not exercise the authority under clause (1) unless the following has occurred before certification of original net tax capacity is requested:

(i) the metropolitan airports commission has informed the governing body of the city, in writing, that it has obtained all the necessary permits and approvals to construct a north-south runway; and

(ii) the metropolitan council has made a finding, by resolution, that the project area is in need of noise mitigation, including measures such as redevelopment activities."

Page 3, line 7, delete "(b)" and insert "(c)"

Page 3, line 30, after "469.1782" insert ", and apply to any tax increment financing district approved by the authority after June 30, 1996"

And when so amended be re-referred to the Committee on Taxes without further recommendation.

The report was adopted.

Kahn from the Committee on Governmental Operations to which was referred:

H. F. No. 3343, A bill for an act relating to health; providing for the prevention of fetal alcohol syndrome; establishing intervention and grant programs; requiring a study; appropriating money; amending Minnesota Statutes 1996, section 254A.17, subdivision 1, and by adding a subdivision; proposing coding for new law in Minnesota Statutes, chapter 145.

Reported the same back with the following amendments:

Page 3, delete lines 22 to 36 and insert:

"Subd. 6. [FETAL ALCOHOL COORDINATING BOARD; DUTIES.] (a) The fetal alcohol coordinating board consists of:

(2) the director of the office of strategic and long-range planning;

(3) the chair of the maternal and child health advisory task force established by section 145.881, or the chair's designee;

(4) a representative of the University of Minnesota academic health center, appointed by the provost;

(5) five members from the general public appointed by the governor, one of whom must be a family member of an individual with fetal alcohol syndrome or fetal alcohol effect; and

(6) one member from the judiciary appointed by the chief justice of the supreme court.

Terms, compensation, removal, and filling of vacancies of appointed members are governed by section 15.0575. The board shall elect a chair from its membership to serve a one-year term. The commissioner of health shall provide staff and consultant support for the board. Support must be provided based on an annual budget and work plan developed by the board. The board shall contract with the department of health for necessary administrative services. Administrative services include personnel, budget, payroll, and contract administration. The board shall adopt an annual budget and work program.

(b) Board duties include:

(1) reviewing programs of state agencies that involve fetal alcohol syndrome and coordinating those that are interdepartmental in nature;

(2) providing an integrated and comprehensive approach to fetal alcohol syndrome prevention and intervention strategies both at a local and statewide level;

(3) approving on an annual basis the statewide public awareness campaign as designed and implemented by the commissioner of health under subdivision 1;

(4) reviewing fetal alcohol syndrome community grants administered by the commissioner of health under subdivision 4; and

(5) submitting a report to the governor on January 15 of each odd-numbered year summarizing board operations, activities, findings, and recommendations, and fetal alcohol syndrome activities throughout the state.

(c) The board expires on January 1, 2001."

Page 4, delete lines 1 to 16

With the recommendation that when so amended the bill pass and be re-referred to the Committee on Health and Human Services.

The report was adopted.

Anderson, I., from the Committee on Financial Institutions and Insurance to which was referred:

H. F. No. 3355, A bill for an act relating to insurance; regulating investments of certain insurers; proposing coding for new law as Minnesota Statutes, chapter 60L.

Reported the same back with the following amendments:

Page 1, after line 10, insert:

"Subd. 2. [ADMITTED ASSETS.] "Admitted assets" means the assets as shown by an insurer's financial statement most recently required to be filed with the commissioner, or such other financial statement required to be filed with the commissioner as the context may require, but excluding assets allocated to separate accounts. For these purposes, assets must be valued according to valuation regulations prescribed by the National Association of Insurance Commissioners and procedures adopted by the National Association of Insurance Commissioners' financial condition Ex.4 subcommittee if not addressed in another section, unless the commissioner requires or finds another method of valuation reasonable under the circumstances."

Page 1, line 11, delete "2" and insert "3"

Page 1, line 13, delete "3" and insert "4"

Page 1, line 15, delete the third comma

Page 1, line 19, delete "4" and insert "5"

Page 1, after line 21, insert:

"Subd. 6. [GOVERNMENT SPONSORED ENTERPRISE.] "Government sponsored enterprise" means a governmental agency, a corporation, limited liability company, association, partnership, joint stock company, joint venture, trust, or other entity or instrumentality organized under the federal laws of the United States to accomplish a public policy or other governmental purpose."

Page 1, line 22, delete "5" and insert "7"

Page 2, line 1, delete "6" and insert "8"

Page 2, line 2, after the first "company" insert ", including a fraternal benefit society,"

Page 2, line 4, delete "7" and insert "9"

Page 2, line 9, delete "8" and insert "10"

Page 2, line 14, delete "9" and insert "11"

Page 2, line 15, after "means" insert ": (1) in the case of an insurer other than a life insurer,"

Page 2, line 16, after "benchmark" insert "; and (2) in the case of a life insurer, the sum of the insurer's liabilities, other than the asset valuation reserve, voluntary investment reserves and liabilities on separate accounts, and its minimum financial security benchmark"

Page 2, line 17, delete "10" and insert "12"

Page 2, line 20, delete "11" and insert "13"

Page 2, line 28, delete "12" and insert "14"

Page 2, line 32, after "the" insert "Securities Valuation Office of the"

Page 3, delete lines 1 to 7 and insert:

"Subdivision 1. [LIFE INSURERS.] In order to be eligible to be governed by sections 60L.01 to 60L.16, a life insurer must meet the following requirements:

(a) For each calendar year during which sections 60L.01 to 60L.16 apply to the insurer, the insurer shall have had, as of the end of the immediately preceding calendar year:

(1) total admitted assets of at least $2,000,000,000;

(2) a total amount of capital plus surplus of at least $200,000,000; and

(3) a total amount of capital plus surplus plus asset valuation reserve of at least $250,000,000.

(b) For each calendar year during which sections 60L.01 to 60L.16 apply to the insurer, the insurer shall have had, as of the end of the immediately preceding calendar year, total adjusted capital equal to or greater than 200 percent of company action level risk-based capital, as defined in section 60A.60, subdivision 11. For purposes of this subdivision, "total adjusted capital" means total adjusted capital as defined in section 60A.60, subdivision 14, adjusted to deduct the value of capital and surplus notes as provided in the risk-based instructions as defined in section 60A.60, subdivision 10.

(c) For each calendar year during which sections 60L.01 to 60L.16 apply to the insurer, the mean of the ratio, calculated as of the end of each of the five immediately preceding calendar years, of total adjusted capital to company action level risk-based capital, as defined in section 60A.60, subdivision 11, must equal at least 2.0.

(d) The insurer shall:

(1) have been in continuous operation for a minimum of five years; and

(2) maintain a minimum claims-paying or equivalent rating from at least one nationally recognized statistical rating organization in one of the organization's three highest rating categories for the time period during which sections 60L.01 to 60L.16 apply to the insurer.

(e) The insurer or an affiliate, as defined in section 60D.15, subdivision 2, of the insurer shall employ at least one individual or group of individuals as a professional investment manager for the insurer's investments whom the board of directors or trustees of the insurer finds is qualified on the basis of experience, education or training, competence, personal integrity, and who conducts professional investment management activities in accordance with the code of ethics and standards of professional conduct of the association for investment management and research.

(f) The board of directors of the insurer must annually adopt a resolution finding that the insurer or an affiliate, as defined in section 60D.15, subdivision 2, of the insurer has employed a professional investment manager for the insurer's investments with sufficient expertise and has sufficient other resources to implement and monitor the insurer's investment policies and strategies.

(g) In the report required under section 60A.129, subdivision 3, paragraph (j), the insurer's independent auditor shall not have identified any material deficiencies in the insurer's systems of internal controls related to investments during any of the five years immediately preceding the date on which sections 60L.01 to 60L.16 begin to apply to the insurer, and as long as sections 60L.01 to 60L.16 apply to the insurer."

Page 3, after line 15, insert:

Page 3, delete lines 16 to 24 and insert:

"Subd. 3. [RESOLUTIONS.] Before sections 60L.01 to 60L.16 apply to an insurer, the board of directors of the insurer must adopt the following resolutions:

(1) a resolution finding that the insurer or an affiliate, as defined in section 60D.15, subdivision 2, of the insurer has employed a professional investment manager for the insurer's investments with sufficient expertise and has sufficient other resources to implement and monitor the insurer's investment policies and strategies; and

(2) a resolution electing that sections 60L.01 to 60L.16 apply to the insurer.

Subd. 4. [COMMISSIONER REVIEW.] Sections 60L.01 to 60L.16 do not govern an insurer unless the insurer has notified the commissioner in writing of its intention that sections 60L.01 to 60L.16 will govern the insurer at least 30 days before applying sections 60L.01 to 60L.16 to its investment policies, or a shorter period of time as the commissioner permits, and the commissioner has not disapproved the governing of the insurer by sections 60L.01 to 60L.16 within this period.

Subd. 5. [SUBSTITUTION OF LAW.] When sections 60L.01 to 60L.16 begin to govern an insurer, sections 61A.28; 61A.282, subdivision 2; 61A.283; 61A.29; 61A.31; and in the case of a life insurer, section 61A.315, do not apply to an insurer.

Subd. 6. [TERMINATION.] (a) After sections 60L.01 to 60L.16 begin to govern an insurer, sections 60L.01 to 60L.16 apply to the insurer unless:

(1) the insurer has ceased to comply with the requirements of subdivision 1, if the insurer is a life insurer, or subdivision 2, if the insurer is other than a life insurer, and has failed to bring itself back into compliance with the requirements within 30 days of ceasing to comply; or

(2) the commissioner has issued an order under section 60L.14, subdivision 2, that sections 60L.01 to 60L.16 no longer govern the insurer, regardless of whether the insurer is contesting the order; or"

Page 3, line 25, delete "(1)" and insert "(i)"

Page 3, line 28, delete "(2)" and insert "(ii)"

Page 3, line 31, delete "(3)" and insert "(iii)"

Page 4, after line 1, insert:

"(c) An investment which is held as an admitted asset by an insurer on the date on which sections 60L.01 to 60L.16 cease to govern the insurer and which qualified as an admitted asset immediately before the date remains qualified as an admitted asset of the insurer.

(d) When sections 60L.01 to 60L.16 cease to govern an insurer, then sections 61A.28; 61A.282, subdivision 2; 61A.283; 61A.29; 61A.31; and, in the case of a life insurer, section 61A.315, apply to the insurer."

Page 4, line 2, delete "5" and insert "7"

Page 4, line 7, delete "(a)"

Page 4, line 9, delete ", other than life insurers,"

Page 4, delete lines 16 to 25

Page 7, line 9, delete "Subdivision 1. [FACTORS.]"

Page 7, line 15, delete everything after "prudent"

Page 7, delete lines 16 and 17

Page 7, line 18, delete "following factors"

Page 7, line 34, after "60L.06" insert ", clause (8)"

Page 9, line 16, delete "debt,"

Page 9, line 27, delete the comma

Page 10, line 15, after "investments" insert "authorized by" and delete "authorizes by rule"

Page 10, lines 31, 33, and 35, delete "its" and insert "the insurer's"

Page 11, lines 1 and 5, delete "its" and insert "the insurer's"

Page 11, line 4, delete "treasury" and insert "United States Treasury"

Page 11, line 12, delete "chapter 60D" and insert "section 60A.11, subdivision 18, paragraph (a), clause (4); 60D.16; or 61A.281"

Page 11, line 35, after "securities" insert "issued, assumed, insured, or guaranteed by a government-sponsored enterprise and"

Page 12, line 6, after "60D.16" insert ", subdivision 2, paragraph (b)"

Page 12, line 14, delete "(11)" and insert "(12)"

Page 13, line 3, delete "by rule"

Page 13, line 23, delete "applicable rules adopted and"

Page 13, line 27, after "investment" insert "which is"

Page 13, line 28, delete "effective" and delete "of" and insert "on which"

Page 13, line 29, after "60L.16" insert "begin to govern the insurer and"

Page 13, line 30, delete "the effective" and insert "this"

Page 13, line 32, delete "necessarily"

Page 14, line 9, delete "or" and insert a semicolon and after "60B.20" insert "; or 60G.20"

Page 15, line 10, delete "may" and insert "shall"

Page 16, delete section 16 and insert:

"Sec. 16. Minnesota Statutes 1996, section 61A.14, subdivision 4, is amended to read:

Subd. 4. [OTHER INVESTMENTS.] For purposes of determining whether the capital, surplus and other funds of a domestic life insurance company, other than assets held in a separate account pursuant to this section, are invested in accordance with sections 60A.11 and, 61A.28 to 61A.31, and 60L.01 to 60L.16, assets held by the company in a separate account in accordance with this section shall be disregarded.

Sec. 17. Minnesota Statutes 1996, section 61A.276, subdivision 4, is amended to read:

Subd. 4. [ALLOCATION TO SEPARATE ACCOUNTS.] Amounts paid to the insurer, and proceeds applied under optional modes of settlement, under the funding agreements may be allocated by the insurer to one or more separate accounts pursuant to section sections 61A.275 or, 61A.14, or 60L.01 to 60L.16. Notwithstanding the provisions of section 61A.275, subdivision 1, a separate account for funding agreement proceeds may include funds from any source authorized to purchase a funding agreement pursuant to this section."

Amend the title as follows:

Page 1, line 3, after the semicolon, insert "amending Minnesota Statutes 1996, sections 61A.14, subdivision 4; and 61A.276, subdivision 4;"

With the recommendation that when so amended the bill pass.

The report was adopted.

Osthoff from the Committee on Environment, Natural Resources and Agriculture Finance to which was referred:

H. F. No. 3357, A bill for an act relating to court fees and fines; revising and consolidating laws relating to surcharges and assessments on fines; amending Minnesota Statutes 1996, sections 169.121, subdivision 5a; 171.16, subdivision 3; 357.021, by adding subdivisions; 588.01, subdivision 3; and 609.3241; Minnesota Statutes 1997 Supplement, sections 97A.065, subdivision 2; 169.14, subdivision 5d; 357.021, subdivision 2; and 609.101, subdivision 5; repealing Minnesota Statutes 1996, sections 609.101, subdivision 1; and 626.861.

Reported the same back with the recommendation that the bill pass and be re-referred to the Committee on Judiciary.

The report was adopted.

Kahn from the Committee on Governmental Operations to which was referred:

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. [214.38] [OCCUPATIONAL REGULATORY COORDINATING COUNCIL.]

The occupational regulatory coordinating council consists of members appointed by the commissioners of health and commerce after consultation with the commissioner of human services and the attorney general. The council shall facilitate and coordinate the work of executive branch agencies and boards charged with the regulation of health-related and non-health-related occupations. It shall perform the duties and have the powers prescribed by law. The council may consist of two or more subunits.

Sec. 2. [INTERAGENCY TASK FORCE.]

Subdivision 1. [APPOINTMENTS.] The commissioners of health and commerce, after consultation with the commissioner of human services, the attorney general, and the entities listed in subdivision 2, shall appoint an interagency task force to develop detailed proposals for the organization, membership, duties, powers, financing, and operation of the council established by Minnesota Statutes, section 214.38. The commissioners of health and commerce shall determine the membership of the task force, and the commissioners, or their designees, shall serve as its cochairs. The task force must consist of two committees, one chaired by the commissioner of commerce, or the commissioner's designee, and dealing with non-health-related occupations, and the other chaired by the commissioner of health, or the commissioner's designee, and dealing with health-related occupations. Each committee may appoint advisory subcommittees. The task force expires June 30, 1999.

Subd. 2. [ADDITIONAL CONSULTATION.] In appointing the task force, the commissioners of health and commerce shall also consult with existing state executive branch occupational regulatory agencies and boards, occupations currently regulated, occupations seeking state regulation, health care providers, and organizations representing consumers. Representatives of entities listed in this subdivision may be appointed to the task force or to advisory subcommittees.

Subd. 3. [DUTIES.] Each task force committee, addressing occupations within its jurisdiction, shall consider how the permanent council established by Minnesota Statutes, section 214.38, can best provide coordination and oversight of state occupational regulation and make recommendations to the legislature regarding improvements in the existing regulatory system. In identifying the duties of the permanent council, each task force committee shall consider, at a minimum, those listed in section 3. If a committee and, subsequently, the task force concludes that a duty listed in section 3 should be omitted or modified, the report required by this subdivision must include the reasons for the proposed omission or modification. Each committee shall complete its work by December 1, 1998. The commissioners of health and commerce shall then coordinate the findings and recommendations of each committee. The commissioners may modify committee findings and recommendations to avoid conflicts and assure consistency in the regulation and oversight of health-related and non-health-related occupations. The committees shall review any modifications and adopt the findings and recommendations of the task force as a whole. The commissioners shall submit those findings and recommendations to the legislature by January 5, 1999.

Sec. 3. [INTERAGENCY TASK FORCE; MINIMUM DUTIES.]

The interagency task force and committees established by section 2 shall consider, at a minimum:

(1) establishing and maintaining a systematic method of reviewing and evaluating requests for new occupational regulation;

(2) advising the legislature regarding requests for new regulation, identifying the need for regulation, the appropriate level of any needed regulation, and the appropriate regulatory body;

(4) reviewing the application of Minnesota Statutes, chapter 13, to the occupational regulatory and enforcement system and, in consultation with the commissioner of administration, recommending to the legislature any changes that the council may identify as being desirable.

Sec. 4. [LEGISLATIVE INTENT.]

It is the intention of the legislature not to consider or enact occupational regulation legislation during the 1998 session unless the legislature finds that specific legislation would be in the best interests of the state and its citizens. For purposes of this section, "occupational regulation" means the extension of state regulation to a new occupation, the modification of any existing regulation of an occupation except to clarify existing language or to improve regulatory efficiency or effectiveness, a change in the mode of regulation or in the scope of practice of a regulated occupation, or the establishment of a new regulatory body or advisory body.

Sec. 5. [STUDY.]

The legislative coordinating commission must study the current system for executive and legislative review of occupational regulation proposals and must make recommendations for any changes needed to ensure: (1) effective executive and legislative review of proposed and existing occupational regulation; and (2) compliance with policies in Minnesota Statutes, section 214.001. The study must be done using existing legislative staff. The commission shall report to the legislature by January 15, 1999.

Sec. 6. [APPROPRIATION.]

$50,000 is appropriated to the commissioner of commerce and $50,000 is appropriated to the commissioner of health to implement section 2. The license fees of currently licensed occupations shall not be used to fund the permanent or temporary council activities.

Sec. 7. [EFFECTIVE DATES.]

Section 1 is effective July 1, 1999. Sections 2 to 6 are effective the day following final enactment."

Delete the title and insert:

"A bill for an act relating to the organization of state government; establishing an occupational regulatory coordinating council to facilitate and coordinate the work of executive branch agencies and boards charged with the regulation of health-related and non-health-related occupations; directing the commissioners of health and commerce to develop detailed proposals for the organization and operation of the council; establishing two task forces; requiring a report to the legislature; requiring a study of legislative review of occupational regulation; appropriating money; proposing coding for new law in Minnesota Statutes, chapter 214."

With the recommendation that when so amended the bill pass and be re-referred to the Committee on Ways and Means.

The report was adopted.

Skoglund from the Committee on Judiciary to which was referred:

H. F. No. 3360, A bill for an act relating to domestic abuse; clarifying provisions for recognition of orders for protection from other jurisdictions; providing that certain mutual orders are not entitled to full faith and credit; amending Minnesota Statutes 1997 Supplement, section 518B.01, subdivision 14.

Reported the same back with the following amendments:

Page 6, delete lines 3 to 15

Amend the title as follows:

Page 1, line 5, delete everything before "amending"

With the recommendation that when so amended the bill pass.

The report was adopted.

Skoglund from the Committee on Judiciary to which was referred:

H. F. No. 3389, A bill for an act relating to civil actions; limiting liability of financial institutions providing data for the criminal alert network; amending Minnesota Statutes 1996, section 299A.61, by adding a subdivision.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 1996, section 299A.61, is amended by adding a subdivision to read:

Subd. 3. [LIMIT ON LIABILITY OF FINANCIAL INSTITUTIONS.] A financial institution that provides or reasonably attempts to provide stolen, forged, or fraudulent check information for use by the crime alert network or law enforcement agencies investigating a crime is not liable to any person for disclosing the information, provided that the financial institution is acting in good faith."

With the recommendation that when so amended the bill pass.

The report was adopted.

Osthoff from the Committee on Environment, Natural Resources and Agriculture Finance to which was referred:

H. F. No. 3416, A bill for an act relating to agriculture; appropriating money for wheat and barley scab research.

Reported the same back with the recommendation that the bill pass and be re-referred to the Committee on Education.

The report was adopted.

Skoglund from the Committee on Judiciary to which was referred:

H. F. No. 3590, A bill for an act relating to crime prevention; expressly approving an addition to the sentencing guidelines commentary.

Reported the same back with the recommendation that the bill pass.

Jennings from the Committee on Regulated Industries and Energy to which was referred:

H. F. No. 3654, A bill for an act relating to utilities; requiring legislative electric energy task force to establish technical advisory committee on electric restructuring; requiring advisory committee to issue reports; establishing duties for public utilities commission and department of public service.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. [LEGISLATIVE ELECTRIC ENERGY TASK FORCE; ELECTRIC RESTRUCTURING TECHNICAL ASSISTANCE.]

Subdivision 1. [ESTABLISHMENT OF TECHNICAL ADVISORY COMMITTEE.] The legislature finds that, in addition to the considerable legislative resources committed to the study of electric industry restructuring through the electric energy task force and the energy subcommittees of the house and senate standing policy committees, the legislature is in need of technical assistance on electric industry deregulation issues. Therefore, the legislative electric energy task force shall establish through the joint action of its chairs a technical advisory committee to assist the legislature in analyzing these issues. Unless terminated earlier by the task force, the technical advisory committee expires January 31, 2000.

Subd. 2. [MEMBERSHIP OF TECHNICAL ADVISORY COMMITTEE.] The chairs of the legislative electric energy task force shall appoint 15 members to the advisory committee that:

(1) reflect the broad array of interests affected by electric industry restructuring;

(2) include a representative of low-income energy consumers; a representative of commercial energy consumers; a representative of industrial energy consumers; a representative of an investor-owned utility serving primarily urban areas; a representative of an investor-owned utility serving primarily rural areas; a representative of a cooperative utility; a representative of a municipal utility; a representative of a small business; a representative of organized labor; a representative of a host community; a representative of an environmental advocacy group; and a representative of renewable energy developers and advocates;

(3) have technical expertise in one or more of the following areas: energy marketing; energy efficiency; energy procurement and purchasing; utility regulation; electricity production; market economics; electric system operation and reliability; and the provision of universal electric service, especially to low-income or rural consumers; and

(4) include the chair of the public utilities commission or the chair's designee, a representative of the department of public service, and a representative of the office of the attorney general.

In addition to these 15 members, the chairs of the task force shall serve as ex officio members of the advisory committee.

Subd. 3. [DUTIES OF TECHNICAL ADVISORY COMMITTEE.] (a) The advisory committee shall examine, consult with experts, analyze, and report on the policy and technical issues described in section 2. The reports of the advisory committee must be based on professional expertise in utility operations, economics, regulatory law, and public policy and shall endeavor to provide the legislative electric energy task force with objective and balanced information.

(b) In fulfilling its duties under this section, the advisory committee may establish subgroups or subcommittees which may seek the advice, recommendations, and expertise of parties not members of the advisory committee including, among others, individuals or groups representing industry, academic, and consumer interests.

Subd. 5. [DUTIES OF DEPARTMENT OF PUBLIC SERVICE.] The commissioner of the department of public service, or the commissioner's designee, shall chair the advisory committee. The department of public service shall provide technical assistance to the advisory committee, shall provide the advisory committee with an initial technical analysis of the issue described in section 4, and shall conduct technical analyses as directed by the advisory committee.

Sec. 2. [SPECIFIC RESTRUCTURING ISSUES; TECHNICAL ADVISORY COMMITTEE ON ELECTRIC RESTRUCTURING.]

Subdivision 1. [BULK POWER SYSTEM RELIABILITY, INFRASTRUCTURE, AND REGULATION.] By January 1, 1999, the technical advisory committee shall solicit information and report to the legislative electric energy task force on the following issues relating to bulk system reliability, infrastructure, and regulation:

(1) When will the bulk power system be capable of reliably supporting the volume of power transactions that would result from implementation of retail competition?

(2) What modifications to the bulk power system and its management are necessary to ensure that retail competition in the state's electric industry does not diminish the reliability of electric service, and what is the estimated cost of those modifications?

(3) What options and alternatives can customers and power suppliers in the state and in the region use to ensure the independent operation and competitively neutral management of the bulk power grid, and what are the advantages and disadvantages associated with each option or alternative?

(4) What market infrastructure developments are necessary or useful in supporting trade and competition in a reliable electricity market, and what are the advantages and disadvantages associated with each approach?

(5) What are the regulatory and legal means the state could use to ensure the low cost, competitively neutral, and fair utilization of the bulk power system and any market infrastructure created or sanctioned by the state, and how should the state address issues of overlapping state, federal, and international jurisdictions in a regional electricity market?

Subd. 2. [RELIABILITY, SAFETY, AND MAINTENANCE.] By January 1, 1999, the technical advisory committee shall analyze and report to the legislative electric energy task force on the following issues relating to distribution reliability, safety, and maintenance in a competitive electric market:

(1) What safety standards should be used to ensure reliability, safety, and efficient operation of the distribution system?

(2) What options are available to identify and establish the respective rights and responsibilities of distribution utilities, consumers, and competitive power suppliers regarding electric reliability and continuity of service?

(3) What alternatives can be used, or standards developed, to address issues relating to the provision of billing, metering, and customer service?

(4) What regional alliances need to be taken into consideration to ensure reliability, safety, and efficient operation of the distribution system?

Subd. 3. [ENERGY PRICES AND PRICE PROTECTION MECHANISMS.] By January 1, 1999, the technical advisory committee shall provide the legislative electric energy task force with:

(1) a reliable quantification of the potential net benefits of the implementation of retail competition in the state, as well as an evaluation and analysis as to how costs and benefits might be distributed, and might be expected to change over time;

(2) a comparison and evaluation of alternative mechanisms to protect consumers from unwarranted potential price increases that may be attributable to electric deregulation during a transition to a competitive energy market; and

Subd. 4. [UNIVERSAL SERVICE.] By January 1, 1999, the technical advisory committee shall analyze issues relating to the provision of universal energy service in the state, with special emphasis on ensuring affordable service for rural and low-income energy consumers, and shall provide the legislative electric energy task force with:

(1) a needs assessment of the number of low-income individuals and households at or below 150 percent of the federal poverty guidelines and the average energy burden of these individuals and households, expressed as the percentage of overall income dedicated to the payment of energy costs;

(2) an evaluation of alternative nonbypassable competitively neutral funding mechanisms to finance programs to reduce the energy burden of low-income customers;

(3) alternatives regarding program design, administration, outreach, and participation goals for bill payment and energy conservation assistance;

(4) an evaluation of alternatives for ensuring affordable service for individuals who do not or cannot choose an alternate energy supplier, including default supplier and provider of last resort options; and

(5) an evaluation of options to ensure that rural energy consumers continue to receive affordable high-quality energy service and participate in any benefits attributable to increased competition.

Subd. 5. [OTHER RESTRUCTURING ISSUES.] The task force shall establish additional priorities or assign additional issues for the advisory committee to analyze, including:

(1) the potential for competition in Minnesota to result in net stranded costs; the magnitude and incidence of those costs; and alternatives for cost recovery;

(2) issues relating to the need for consumers to be informed about competitive options and protected from deceptive business practices;

(3) issues relating to renewable energy development, energy efficiency, and environmental sustainability, including questions relating to potential renewable energy portfolio requirements, system benefits charges, or green marketing of electricity;

(4) issues relating to access to the retail marketplace by competitors and methods to prevent the exercise of market power;

(5) issues relating to employment impacts on utility workers resulting from electric industry competition; and

(6) any other issues the task force deems important or necessary to assist the legislature in analyzing the effects of electric industry restructuring in Minnesota.

Sec. 3. [SPECIFIC RESTRUCTURING ISSUES; PUBLIC UTILITIES COMMISSION.]

Subdivision 1. [INFORMATION DISCLOSURE AND CONSUMER PROTECTION.] By November 1, 1998, the public utilities commission shall conduct an initial technical analysis of issues relating to information disclosure and consumer protection and provide the technical advisory committee with:

(1) an evaluation of alternative standards and means of providing all consumers with information sufficient to support an informed choice of electric provider in a competitive environment regarding: (i) price, terms, and conditions of service; and (ii) environmental information; and

(2) recommendations regarding consumer protection standards and practices sufficient to prevent consumer fraud and abuse while supporting effective competition.

alternatives the state could take, whether alone or as part of a regional compact, or as part of a national mandate, to encourage energy efficiency, renewable energy development, and decreased pollution in the context of a competitive electric industry. In assessing alternatives for renewable energy development, the commission shall consider questions relating to potential renewable energy portfolio requirements, system benefits charges, or green marketing of electricity. The commission's analysis shall also include an assessment of alternative energy's effect on business and the state's economy, and how renewable requirements can be implemented in a competitively neutral manner.

(b) In conducting the initial technical analysis under this subdivision, the public utilities commission shall convene a working group which includes the department of public service, utility representatives, community action agency representatives, and other energy efficiency advocates and service providers to investigate the energy conservation improvement program under Minnesota Statutes, section 216B.241, and to provide recommendations to the technical advisory committee regarding how energy efficiency and related services could best be provided in a more competitive electricity market. The commission shall give particular attention to assessing the success of these projects on meeting the goals of Minnesota Statutes, section 216B.241.

Subd. 3. [UNBUNDLED RATES.] The public utilities commission shall convene a working group of private, public, and cooperative utilities; national and regional energy marketers; consumers and their advocates; and other interested parties to develop a timeline and recommended procedures for separating the charges for electric generation services, including electric energy and capacity, from the charges for distribution services, transmission services, and other services on customers' bills. The commission shall report the progress of this working group to the legislative electric energy task force by January 15, 1999.

Subd. 4. [COMPETITIVE PARITY.] By November 1, 1998, the public utilities commission shall conduct an analysis of those laws and regulations that could prevent Minnesota utilities from competing fairly in a competitive electric market, and shall make recommendations as to how those requirements could be fulfilled in a competitively neutral manner.

Sec. 4. [SPECIFIC RESTRUCTURING DUTIES; DEPARTMENT OF PUBLIC SERVICE.]

By November 1, 1998, the department of public service shall conduct an initial technical analysis of issues relating to stranded costs and shall provide the technical advisory committee with:

(1) a sensitivity analysis of the magnitude and duration of net stranded costs, and include in its analysis the potential for stranded benefits or negative stranded costs that may result from market prices that are higher than regulated prices;

(2) a report on whether and how net stranded cost recovery by utilities could affect competition, consumers, utilities, and utility investors;

(3) a comparison and evaluation of potential difficulties stranded costs could create for private, public, and cooperative utilities, and alternative means to ensure that customers receive at least as much assurance of negative stranded cost recovery as utility owners would of stranded cost recovery;

(4) recommendations on alternatives for the mitigation and elimination of stranded costs and on mechanisms for recovery of net stranded costs;

(5) an analysis of the advantages and disadvantages of prior versus periodic evaluation, determination, and assessment of stranded costs; and

(6) an analysis of the advantages and disadvantages of securitization and other means of requiring customers to pay for utility stranded costs.

Sec. 5. [COST ALLOCATION.]

this act. The department of public service and the public utilities commission shall ascertain the expenses and the department shall render a bill for those expenses to the parties at the conclusion of the activities under this act. The department is authorized to submit billings to parties at intervals selected by the department during the course of these activities. Entities providing more than one type of energy shall only be billed as a single entity.

Sec. 6. [EFFECTIVE DATE.]

Sections 1 to 5 are effective on the day following final enactment."

Delete the title and insert:

"A bill for an act relating to utilities; requiring legislative electric energy task force to establish technical advisory committee on electric restructuring; requiring advisory committee to issue reports; establishing duties for public utilities commission and department of public service."

With the recommendation that when so amended the bill pass and be re-referred to the Committee on Rules and Legislative Administration.

The report was adopted.

Long from the Committee on Taxes to which was referred:

H. F. No. 3691, A bill for an act relating to income taxation and higher education; extending the number of years of education provided by the state to 13; proposing coding for new law in Minnesota Statutes, chapters 135A; and 290.

Reported the same back with the following amendments:

Page 2, line 23, before the colon, insert "located in Minnesota"

Page 2, line 29, delete "located in Minnesota"

Page 2, line 32, after "tuition" insert "and fees" and after "paid" insert "during the taxable year"

Page 2, line 34, before the period, insert "for the student's first year of post-secondary education, net of any refunds of tuition and fees received from the institution. In tax years in which the taxpayer pays qualifying higher education expenses that relate to only the first year of the student's post-secondary education, the taxpayer must subtract from qualifying higher education expenses any federal HOPE scholarship credit under section 25A of the Internal Revenue Code for which the student is eligible. Otherwise the taxpayer must subtract from qualifying higher education expenses any federal HOPE scholarship credit under section 25A of the Internal Revenue Code for which the student is eligible, net of tuition and fees paid for the second year of the student's post-secondary education"

Page 3, line 18, after the period, insert "In no case is the credit less than zero. This credit is allowed for only one taxable year with respect to each eligible student."

With the recommendation that when so amended the bill pass and be re-referred to the Committee on Ways and Means.

Kahn from the Committee on Governmental Operations to which was referred:

H. F. No. 3734, A bill for an act relating to employee relations; modifying provisions governing the public employees insurance program; amending Minnesota Statutes 1996, section 43A.316, subdivision 2.

Reported the same back with the recommendation that the bill pass and be placed on the Consent Calendar.

The report was adopted.

Kahn from the Committee on Governmental Operations to which was referred:

S. F. No. 90, A bill for an act relating to legislative committees and commissions; updating statutory references to legislative committees; requiring certain appointments of members of the senate to be made by the subcommittee on committees of the committee on rules and administration; repealing references to abolished legislative commissions; amending Minnesota Statutes 1996, sections 3.30, subdivision 2; 3.303, subdivision 2; 3.754; 3.885, subdivision 1; 3.97, subdivision 2; 3.98, subdivisions 1 and 3; 8.15, subdivisions 3 and 4; 11A.041; 15.065; 15.16, subdivision 5; 15.161; 15.50, subdivisions 1 and 2; 15.95, subdivision 1; 15A.082, subdivision 2; 16A.011, subdivision 13; 16A.152, subdivision 6; 16A.19, subdivision 1; 16B.24, subdivisions 3, 3a, and 6; 16B.31, subdivision 3; 16B.335, subdivisions 1, 2, and 5; 16B.41, subdivision 2; 16B.87, subdivision 4; 16D.03, subdivision 3; 17B.15, subdivision 1; 18E.06; 43A.191, subdivision 3; 62R.25; 97A.0453; 115A.07, subdivisions 2 and 3; 115A.15, subdivision 5; 115A.158, subdivision 2; 115A.411, subdivision 1; 115A.55, subdivision 4; 115A.5501, subdivision 2; 115A.551, subdivisions 4 and 5; 115A.557, subdivision 4; 115A.965, subdivision 7; 115A.9651, subdivision 2; 115A.981, subdivision 3; 115B.20, subdivisions 1 and 6; 115B.43, subdivision 4; 115C.093; 115D.10; 116.072, subdivision 12; 116.125; 116C.712, subdivision 5; 116J.555, subdivision 2; 116J.581, subdivision 1; 116J.693, subdivision 2; 116O.03, subdivision 2; 116O.071, subdivision 3; 116O.09, subdivision 2; 116P.05, subdivision 1; 116P.08, subdivision 3; 116P.09, subdivision 7; 119B.17, subdivision 1; 121.703, subdivision 2; 124.078; 124.2131, subdivision 1; 135A.046, subdivision 3; 136F.60, subdivision 1; 136F.98, subdivision 1; 137.02, subdivision 3a; 138.763, subdivision 1; 144.056; 144.701, subdivision 4; 144A.071, subdivision 5; 144E.01, subdivision 2; 169.832, subdivision 13; 174.02, subdivision 6; 192.52; 240.18, subdivision 2; 240A.03, subdivision 15; 241.01, subdivision 5; 245.90; 252.50, subdivision 2; 253.015, subdivision 2; 256.014, subdivision 3; 256.031, subdivision 3; 256.736, subdivision 9; 256.9352, subdivision 3; 256.9657, subdivision 1c; 256B.0629, subdivision 3; 256B.69, subdivision 3a; 268.665, subdivision 2; 268.916; 270.0604, subdivision 4; 270.063; 270.0681, subdivision 2; 270.0682, subdivision 2; 270.71; 270.74; 273.1398, subdivision 2c; 299C.65, subdivision 2; 352.04, subdivision 3; 352B.02, subdivision 1c; 354.42, subdivision 5; 354A.12, subdivision 2b; 355.50; 356.88, subdivision 1; 393.07, subdivision 5; 446A.072, subdivision 11; 473.149, subdivision 6; 473.598, subdivision 3; 473.608, subdivision 12a; 473.845, subdivision 4; 473.846; and 473.848, subdivision 4; repealing Minnesota Statutes 1996, sections 3.873; 3.887; and 241.275, subdivision 5.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. [STUDY.]

The legislative coordinating commission must study the current system for legislative review of administrative rulemaking and must make recommendations for any changes needed to ensure effective legislative review of proposed and existing state agency rules. The study must be done using existing legislative staff. The commission shall report to the legislature by January 15, 1999."

Delete the title and insert:

"A bill for an act relating to state government; requiring a study of legislative review of administrative rulemaking."

With the recommendation that when so amended the bill pass and be re-referred to the Committee on Ways and Means.

Skoglund from the Committee on Judiciary to which was referred:

S. F. No. 154, A bill for an act relating to civil actions; limiting liability for injury related to certain food donations to the state and political subdivisions; amending Minnesota Statutes 1996, section 604A.10, subdivision 2.

Reported the same back with the following amendments:

Page 1, line 22, delete "1997" and insert "1998"

With the recommendation that when so amended the bill pass.

The report was adopted.

Skoglund from the Committee on Judiciary to which was referred:

S. F. No. 330, A bill for an act relating to civil actions; providing limits on liability of certain private corrections treatment facilities that receive patients under court or administrative order; proposing coding for new law in Minnesota Statutes, chapter 604A.

Reported the same back with the following amendments:

Page 1, line 19, after "program" insert ", if the treatment facility procures insurance against liability for claims described under this section, which insurance is in an amount equal to the greater of $500,000 per claim or occurrence or the amounts specified for the state under section 3.736, subdivision 4"

Page 2, line 4, delete "1997" and insert "1998"

With the recommendation that when so amended the bill pass.

The report was adopted.

Anderson, I., from the Committee on Financial Institutions and Insurance to which was referred:

and 2; 79A.24, subdivisions 1, 2, and 4; 79A.26, subdivision 2; and 79A.31, subdivision 1; proposing coding for new law in Minnesota Statutes, chapters 60B; 62A; and 65B; repealing Minnesota Statutes 1996, sections 60A.11, subdivision 24a; 60B.36; 60B.44, subdivision 3; 65A.29, subdivision 12; and 79A.04, subdivision 8.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 1996, section 60A.02, subdivision 1a, is amended to read:

Subd. 1a. [ASSOCIATION OR ASSOCIATIONS.] (a) "Association" or "associations" means an organized body of people who have some interest in common and that has at the onset a minimum of 100 persons; is organized and maintained in good faith for purposes other than that of obtaining insurance; and has a constitution and bylaws which provide that: (1) the association or associations hold regular meetings not less frequently than annually to further purposes of the members; (2) except for credit unions, the association or associations collect dues or solicit contributions from members; (3) the members have voting privileges and representation on the governing board and committees, which provide the members with control of the association including the purchase and administration of insurance products offered to members; and (4) the members are not, within the first 30 days of membership, directly solicited, offered, or sold an insurance policy if the policy is available as an association benefit.

(b) An association may apply to the commissioner for a waiver of the 30-day waiting period to that association. The commissioner may grant the waiver upon a finding of all at least three of the following: (1) the association is in full compliance with this subdivision; (2) sanctions have not been imposed against the association as a result of significant disciplinary action by the commissioner; and (3) at least 80 percent of the association's income comes from dues, contributions, or sources other than income from the sale of insurance; or (4) the association has been organized and maintained for at least ten years.

Sec. 2. Minnesota Statutes 1996, section 60A.02, is amended by adding a subdivision to read:

Subd. 2b. [FILED.] In cases where a law requires documents to be filed with the commissioner, the documents will be considered filed when they are received by the department of commerce.

Sec. 3. Minnesota Statutes 1996, section 60A.052, subdivision 2, is amended to read:

Subd. 2. [SUSPENSION OR REVOCATION OF AUTHORITY OR CENSURE.] If the commissioner determines that one of the conditions listed in subdivision 1 exists, the commissioner may issue an order requiring the insurance company to show cause why any or all of the following should not occur: (1) revocation or suspension of any or all certificates of authority granted to the foreign or domestic insurance company or its agent; (2) censuring of the insurance company; or (3) cancellation of all or some of the company's insurance contracts then in force in this state; or (4) the imposition of a civil penalty. The order shall be calculated to give reasonable notice of the time and place for hearing thereon, and shall state the reasons for the entry of the order. All hearings shall be conducted in accordance with chapter 14. The insurer may waive its right to the hearing. If the insurer is under the supervision or control of the insurance department of the insurer's state of domicile, that insurance department, acting on behalf of the insurer, may waive the insurer's right to the hearing. After the hearing, the commissioner shall enter an order disposing of the matter as the facts require. If the insurance company fails to appear at a hearing after having been duly notified of it, the company shall be considered in default, and the proceeding may be determined against the company upon consideration of the order to show cause, the allegations of which may be considered to be true.

Sec. 4. Minnesota Statutes 1996, section 60A.052, is amended by adding a subdivision to read:

Sec. 5. Minnesota Statutes 1996, section 60A.06, subdivision 1, is amended to read:

Subdivision 1. [STATUTORY LINES.] Insurance corporations may be authorized to transact in any state or territory in the United States, in the Dominion of Canada, and in foreign countries, when specified in their charters or certificates of incorporation, either as originally granted or as thereafter amended, any of the following kinds of business, upon the stock plan, or upon the mutual plan when the formation of such mutual companies is otherwise authorized by law; and business trusts as authorized by law of this state shall only be authorized to transact in this state the following kind of business hereinafter specified in clause (7) hereof when specified in their "declaration of trust":

(1) To insure against loss or damage to property on land and against loss of rents and rental values, leaseholds of buildings, use and occupancy and direct or consequential loss or damage caused by fire, smoke or smudge, water or other fluid or substance, lightning, windstorm, tornado, cyclone, earthquake, collapse and slippage, rain, hail, frost, snow, freeze, change of temperature, weather or climatic conditions, excess or deficiency of moisture, floods, the rising of waters, oceans, lakes, rivers or their tributaries, bombardment, invasion, insurrection, riot, civil war or commotion, military or usurped power, electrical power interruption or electrical breakdown from any cause, railroad equipment, motor vehicles or aircraft, accidental injury to sprinklers, pumps, conduits or containers or other apparatus erected for extinguishing fires, explosion, whether fire ensues or not, except explosions on risks specified in clause (3); provided, however, that there may be insured hereunder the following: (a) explosion of any kind originating outside the insured building or outside of the building containing the property insured, (b) explosion of pressure vessels which do not contain steam or which are not operated with steam coils or steam jackets; and (c) risks under home owners multiple peril policies;

(2)(a) To insure vessels, freight, goods, wares, merchandise, specie, bullion, jewels, profits, commissions, bank notes, bills of exchange, and other evidences of debt, bottomry and respondentia interest, and every insurance appertaining to or connected with risks of transportation and navigation on and under water, on land or in the air;

(b) To insure all personal property floater risks;

(3) To insure against any loss from either direct or indirect damage to any property or interest of the assured or of another, resulting from the explosion of or injury to (a) any boiler, heater or other fired pressure vessel; (b) any unfired pressure vessel; (c) pipes or containers connected with any of said boilers or vessels; (d) any engine, turbine, compressor, pump or wheel; (e) any apparatus generating, transmitting or using electricity; (f) any other machinery or apparatus connected with or operated by any of the previously named boilers, vessels or machines; and including the incidental power to make inspections of and to issue certificates of inspection upon, any such boilers, apparatus, and machinery, whether insured or otherwise;

(4) To make contracts of life and endowment insurance, to grant, purchase, or dispose of annuities or endowments of any kind; and, in such contracts, or in contracts supplemental thereto to provide for additional benefits in event of death of the insured by accidental means, total permanent disability of the insured, or specific dismemberment or disablement suffered by the insured, or acceleration of life or endowment or annuity benefits in advance of the time they would otherwise be payable;

(5)(a) To insure against loss or damage by the sickness, bodily injury or death by accident of the assured or dependents or, through stop-loss insurance, those for whom the assured has assumed a portion of the liability for the loss or damage, including liability for payment of medical care costs or for provisions of medical care;

(b) To insure against the legal liability, whether imposed by common law or by statute or assumed by contract, of employers for the death or disablement of, or injury to, employees;

(6) To guarantee the fidelity of persons in fiduciary positions, public or private, or to act as surety on official and other bonds, and for the performance of official or other obligations;

(7) To insure owners and others interested in real estate against loss or damage, by reason of defective titles, encumbrances, or otherwise;

(9)(a) To insure against loss by burglary, theft, or forgery;

(b) To insure against loss of or damage to moneys, coins, bullion, securities, notes, drafts, acceptance or any other valuable paper or document, resulting from any cause, except while in the custody or possession of and being transported by any carrier for hire or in the mail;

(c) To insure individuals by means of an all risk type of policy commonly known as the "personal property floater" against any kind and all kinds of loss of or damage to, or loss of use of, any personal property other than merchandise;

(d) To insure against loss or damage by water or other fluid or substance;

(10) To insure against loss from death of domestic animals and to furnish veterinary service;

(11) To guarantee merchants and those engaged in business, and giving credit, from loss by reason of giving credit to those dealing with them; this shall be known as credit insurance;

(12) To insure against loss or damage to automobiles or other vehicles or aircraft and their contents, by collision, fire, burglary, or theft, and other perils of operation, and against liability for damage to persons, or property of others, by collision with such vehicles or aircraft, and to insure against any loss or hazard incident to the ownership, operation, or use of motor or other vehicles or aircraft;

(13) To insure against liability for loss or damage to the property or person of another caused by the insured or by those for whom the insured is responsible, including insurance of medical, hospital, surgical, funeral or other related expense of the insured or other person injured, irrespective of legal liability of the insured, when issued with or supplemental to policies of liability insurance;

(14) To insure against loss of or damage to any property of the insured, resulting from the ownership, maintenance or use of elevators, except loss or damage by fire;

(15) To insure against attorneys fees, court costs, witness fees and incidental expenses incurred in connection with the use of the professional services of attorneys at law.

Sec. 6. Minnesota Statutes 1996, section 60A.06, subdivision 2, is amended to read:

Subd. 2. [OTHER LINES.] Any insurance corporation or association heretofore or hereafter licensed to transact within the state any of the kinds or classes of insurance specifically authorized under the laws of this state may, when authorized by its charter, transact within and without the state any lines of insurance germane to its charter powers and not specifically provided for under the laws of this state when these lines, or combinations of lines, of insurance are not in violation of the constitution or the laws of the state and, in the opinion of the commissioner, not contrary to public policy, provided the company or association shall first obtain authority of the commissioner and meet such requirements as to capital or surplus, or both, and other solvency and policy form requirements as the commissioner shall prescribe. These additional hazards may be insured against by attachment to, or in extension of, any policy which the company may be authorized to issue under the laws of this state. This subdivision shall apply to companies operating upon the stock or mutual plan, reciprocal or interinsurance exchanges.

Sec. 7. Minnesota Statutes 1996, section 60A.092, subdivision 6, is amended to read:

Sec. 8. Minnesota Statutes 1996, section 60A.10, subdivision 1, is amended to read:

Subdivision 1. [DOMESTIC COMPANIES.] (1) [DEPOSIT AS SECURITY FOR ALL POLICYHOLDERS REQUIRED.] No company in this state, other than farmers' mutual, or real estate title insurance companies, shall do business in this state unless it has on deposit with the commissioner, for the protection of both its resident and nonresident policyholders, securities to an amount, the actual market value of which, exclusive of interest, shall never be less than $200,000 until July 1, 1986, $300,000 until July 1, 1987, $400,000 until July 1, 1988, and $500,000 on and after July 1, 1988 or one-half the applicable financial requirement set forth in section 60A.07, whichever is less. The securities shall be retained under the control of the commissioner as long as any policies of the depositing company remain in force.

(2) [SECURITIES DEFINED.] For the purpose of this subdivision, the word "securities" means bonds or other obligations of, or bonds or other obligations insured or guaranteed by, the United States, any state of the United States, any municipality of this state, or any agency or instrumentality of the foregoing.

(3) [PROTECTION OF DEPOSIT FROM LEVY.] No judgment creditor or other claimant may levy upon any securities held on deposit with, or for the account of, the commissioner. Upon the entry of an order by a court of competent jurisdiction for the rehabilitation, liquidation or conservation of any depositing company as provided in chapter 60B, that company's deposit together with any accrued income thereon shall be transferred to the commissioner as rehabilitator, liquidator, or conservator.

Sec. 9. Minnesota Statutes 1996, section 60A.111, subdivision 1, is amended to read:

Subdivision 1. [REPORT.] Annually, or more frequently if determined by the commissioner to be necessary for the protection of policyholders, each foreign, alien and domestic insurance company other than a life insurance company shall report to the commissioner the ratio of its qualified assets to its required liabilities.

Sec. 10. Minnesota Statutes 1996, section 60A.13, subdivision 1, is amended to read:

Subdivision 1. [ANNUAL STATEMENTS REQUIRED.] Every insurance company, including fraternal benefit societies, and reciprocal exchanges, doing business in this state, shall transmit to file with the commissioner, annually, on or before March 1, the appropriate verified National Association of Insurance Commissioners' annual statement blank, prepared in accordance with the association's instructions handbook and following those accounting procedures and practices prescribed by the association's accounting practices and procedures manual, unless the commissioner requires or finds another method of valuation reasonable under the circumstances. Another method of valuation permitted by the commissioner must be at least as conservative as those prescribed in the association's manual. All companies required to file an annual statement under this subdivision must also file with the commissioner a copy of their annual statement on computer diskette. All Minnesota domestic insurers required to file annual statements under this subdivision must also file quarterly statements with the commissioner for the first, second, and third calendar quarter on or before 45 days after the end of the applicable quarter, prepared in accordance with the association's instruction handbook. All companies required to file quarterly statements under this subdivision must also file a copy of their quarterly statement on computer diskette. In addition, the commissioner may require the filing of any other information determined to be reasonably necessary for the continual enforcement of these laws. The statement may be limited to the insurer's business and condition in the United States unless the commissioner finds that the business conducted outside the United States may detrimentally affect the interests of policyholders in this state. The statements shall also contain a verified schedule showing all details required by law for assessment and taxation. The statement or schedules shall be in the form and shall contain all matters the commissioner may prescribe, and it may be varied as to different types of insurers so as to elicit a true exhibit of the condition of each insurer.

Sec. 11. Minnesota Statutes 1996, section 60A.171, subdivision 7, is amended to read:

Sec. 12. Minnesota Statutes 1996, section 60A.19, subdivision 1, is amended to read:

Subdivision 1. [REQUIREMENTS.] Any insurance company of another state, upon compliance with all laws governing such corporations in general and with the foregoing provisions so far as applicable and the following requirements, shall be admitted to do business in this state:

(1) It shall deposit with the commissioner a certified copy of its charter or certificate of incorporation and its bylaws, and a statement showing its financial condition and business, verified by its president and secretary or other proper officers;

(2) It shall furnish the commissioner satisfactory evidence of its legal organization and authority to transact the proposed business and that its capital, assets, deposits with the proper official of its own state, amount insured, number of risks, reserve and other securities, and guaranties for protection of policyholders, creditors, and the public, comply with those required of like domestic companies;

(3) By a duly executed instrument filed in the office of the commissioner, it shall appoint the commissioner and successors in office its lawful attorneys in fact and therein irrevocably agree that legal process in any action or proceeding against it may be served upon them with the same force and effect as if personally served upon it, so long as any of its liability exists in this state;

(4) It shall appoint, as its agents in this state, residents thereof, and obtain from the commissioner a license to transact business;

(5) Regardless of what lines of business an insurer of another state is seeking to write in this state, the lines of business it is licensed to write in its state of incorporation shall be the basis for establishing the financial requirements it must meet for admission in this state or for continuance of its authority to write business in this state;

(6) No insurer of another state shall be admitted to do business in this state for a line of business that it is not authorized to write in its state of incorporation, unless the statutes of that state prohibit all insurers from writing that line of business.

Sec. 13. Minnesota Statutes 1996, section 60B.04, is amended by adding a subdivision to read:

Subd. 7. [JURISDICTION.] If there is a delinquency proceeding under this chapter, the provisions of this chapter govern those proceedings, and all conflicting contractual provisions contained in a contract between the insurer that is subject to the delinquency proceeding and a third party, including, but not limited to, the choice of law or arbitration provisions, are subordinated to the provisions of this chapter.

Sec. 14. Minnesota Statutes 1996, section 60B.21, subdivision 2, is amended to read:

Subd. 2. [FIXING OF RIGHTS.] Upon issuance of the order, the rights and liabilities of any such insurer and of its creditors, policyholders, shareholders, members, and all other persons interested in its estate are fixed as of the date of filing of the petition for liquidation, except as provided in sections 60B.22, 60B.25, clause (22), and 60B.39.

Sec. 15. Minnesota Statutes 1996, section 60B.25, is amended to read:

60B.25 [POWERS OF LIQUIDATOR.]

The liquidator shall report to the court monthly, or at other intervals specified by the court, on the progress of the liquidation in whatever detail the court orders. The liquidator shall coordinate activities with those of each guaranty association having an interest in the liquidation and shall submit a report detailing how coordination will be achieved to the court for its approval within 30 days following appointment, or within the time which the court, in its discretion, may establish. Subject to the court's control, the liquidator may:

(2) Appoint or engage employees and agents, actuaries, accountants, appraisers, consultants, and other personnel deemed necessary to assist in the liquidation without regard to chapter 14.

(3) Fix the compensation of persons under clause (2), subject to the control of the court.

(4) Defray all expenses of taking possession of, conserving, conducting, liquidating, disposing of, or otherwise dealing with the business and property of the insurer. If the property of the insurer does not contain sufficient cash or liquid assets to defray the costs incurred, the liquidator may advance the costs so incurred out of the appropriation made to the department of commerce. Any amounts so paid shall be deemed expense of administration and shall be repaid for the credit of the department of commerce out of the first available money of the insurer.

(5) Hold hearings, subpoena witnesses and compel their attendance, administer oaths, examine any person under oath and compel any person to subscribe to testimony after it has been correctly reduced to writing, and in connection therewith require the production of any books, papers, records, or other documents which the liquidator deems relevant to the inquiry.

(6) Collect all debts and money due and claims belonging to the insurer, wherever located, and for this purpose institute timely action in other jurisdictions, in order to forestall garnishment and attachment proceedings against such debts; do such other acts as are necessary or expedient to collect, conserve, or protect its assets or property, including sell, compound, compromise, or assign for purposes of collection, upon such terms and conditions as the liquidator deems best, any bad or doubtful debts; and pursue any creditor's remedies available to enforce claims.

(7) Conduct public and private sales of the property of the insurer in a manner prescribed by the court.

(8) Use assets of the estate to transfer coverage obligations to a solvent assuming insurer, if the transfer can be arranged wihout prejudice to applicable priorities under section 60B.44.

(9) Acquire, hypothecate, encumber, lease, improve, sell, transfer, abandon, or otherwise dispose of or deal with any property of the insurer at its market value or upon such terms and conditions as are fair and reasonable, except that no transaction involving property the market value of which exceeds $10,000 shall be concluded without express permission of the court. The liquidator may also execute, acknowledge, and deliver any deeds, assignments, releases, and other instruments necessary or proper to effectuate any sale of property or other transaction in connection with the liquidation. In cases where real property sold by the liquidator is located other than in the county where the liquidation is pending, the liquidator shall cause to be filed with the county recorder for the county in which the property is located a certified copy of the order of appointment.

(10) Borrow money on the security of the insurer's assets or without security and execute and deliver all documents necessary to that transaction for the purpose of facilitating the liquidation.

(11) Enter into such contracts as are necessary to carry out the order to liquidate, and affirm or disavow any contracts to which the insurer is a party.

(12) Continue to prosecute and institute in the name of the insurer or in the liquidator's own name any suits and other legal proceedings, in this state or elsewhere, and abandon the prosecution of claims the liquidator deems unprofitable to pursue further. If the insurer is dissolved under section 60B.23, the liquidator may apply to any court in this state or elsewhere for leave to be substituted for the insurer as plaintiff.

(13) Prosecute any action which may exist in behalf of the creditors, members, policyholders, or shareholders of the insurer against any officer of the insurer, or any other person.

(14) Remove any records and property of the insurer to the offices of the commissioner or to such other place as is convenient for the purposes of efficient and orderly execution of the liquidation.

(16) Deposit with the state board of investment for investment pursuant to section 11A.24, all sums not currently needed, unless the court orders otherwise.

(17) File any necessary documents for record in the office of any county recorder or record office in this state or elsewhere where property of the insurer is located.

(18) Assert all defenses available to the insurer as against third persons, including statutes of limitations, statutes of frauds, and the defense of usury. A waiver of any defense by the insurer after a petition for liquidation has been filed shall not bind the liquidator.

(19) Exercise and enforce all the rights, remedies, and powers of any creditor, shareholder, policyholder, or member, including any power to avoid any transfer or lien that may be given by law and that is not included within sections 60B.30 and 60B.32.

(20) Intervene in any proceeding wherever instituted that might lead to the appointment of a receiver or trustee, and act as the receiver or trustee whenever the appointment is offered.

(21) Enter into agreements with any receiver or commissioner of any other state relating to the rehabilitation, liquidation, conservation, or dissolution of an insurer doing business in both states.

(22) Collect from an insured any unpaid earned premium or retrospectively rated premium due the insurer based on the termination of coverage under section 60B.22. Premium on surety business is considered earned at inception if no policy term can be determined. All other premium will be considered earned and will be prorated over the determined policy term, regardless of any provision in the bond, guaranty, contract, or other agreement.

(22) (23) Exercise all powers now held or hereafter conferred upon receivers by the laws of this state not inconsistent with sections 60B.01 to 60B.61.

(23) (24) The enumeration in this section of the powers and authority of the liquidator is not a limitation, nor does it exclude the right to do such other acts not herein specifically enumerated or otherwise provided for as are necessary or expedient for the accomplishment of or in aid of the purpose of liquidation.

(24) (25) The power of the liquidator of a health maintenance organization includes the power to transfer coverage obligations to a solvent and voluntary health maintenance organization, insurer, or nonprofit health service plan, and to assign provider contracts of the insolvent health maintenance organization to an assuming health maintenance organization, insurer, or nonprofit health service plan permitted to enter into such agreements. The liquidator is not required to meet the notice requirements of section 62D.121. Transferees of coverage obligations or provider contracts shall have no liability to creditors or obligees of the health maintenance organization except those liabilities expressly assumed.

Sec. 16. [60B.365] [REINSURER'S LIABILITY.]

Subdivision 1. [GENERALLY.] The amount recoverable by the liquidator from reinsurers must not be reduced as a result of the delinquency proceedings, regardless of any provision in the reinsurance contract or other agreement.

Subd. 2. [REQUIRED CONTRACT PROVISIONS.] All reinsurance contracts to which an insurer domiciled in this state is a ceding party that do not contain the following provisions required with respect to the obligation of reinsurers in the event of insolvency of the reinsured in order to obtain credit for reinsurance or other applicable statutes, must be construed to contain the following provisions:

(1) in the event of insolvency and the appointment of a receiver, the reinsurance obligation is payable to the receiver, with reasonable provision for verification, without diminution because of the insolvency or because the receiver has failed to pay all or a portion of any claims. Payments by the reinsurer must be made directly to the ceding insurer or to its receiver; and

responsible for the adjustment and settlement of the reinsured company's claims. Failure to give notice does not excuse the obligation of the reinsurer unless it is substantially prejudiced by the failure of the receiver to give notice. The reinsurer may interpose, at its own expense, in the proceeding where the claim is to be adjudicated, any defense or defenses that it may consider available to the reinsured company or its receiver.

Subd. 3. [PAYMENTS.] Payments by the reinsurer must be made directly to the ceding insurer or its receiver, except where the contract of insurance or reinsurance specifically provides for another payee for the reinsurance in the event of insolvency of the ceding insurer according to the applicable requirements of statutes, rules, or orders of the domiciliary state of the ceding insurer. The receiver and the reinsurer are entitled to recover from a person who unsuccessfully makes a claim directly against the reinsurer the receiver's attorneys' fees and expenses incurred in preventing any collection by the person.

Sec. 17. Minnesota Statutes 1996, section 60B.44, subdivision 2, is amended to read:

Subd. 2. [ADMINISTRATION COSTS.] The costs and expenses of administration, including but not limited to the following: The actual and necessary costs of preserving or recovering the assets of the insurer; compensation for all services rendered in the liquidation; any necessary filing fees; the fees and mileage payable to witnesses; and reasonable attorney's fees. This includes qualifying expenses incurred by the guaranty association.

Sec. 18. Minnesota Statutes 1996, section 60B.44, subdivision 4, is amended to read:

Subd. 4. [LOSS CLAIMS; INCLUDING CLAIMS NOT COVERED BY A GUARANTY ASSOCIATION.] All claims under policies or contracts of coverage for losses incurred including third party claims, and all claims against the insurer for liability for bodily injury or for injury to or destruction of tangible property which are not under policies or contracts. All claims under life insurance and annuity policies, whether for death proceeds, annuity proceeds, or investment values, shall be treated as loss claims. That portion of any loss for which indemnification is provided by other benefits or advantages recovered or recoverable by the claimant shall not be included in this class, other than benefits or advantages recovered or recoverable in discharge of familial obligations of support or by way of succession at death or as proceeds of life insurance, or as gratuities. No payment made by an employer to an employee shall be treated as a gratuity. Claims not covered by a guaranty association are loss claims. If any portion of a claim is covered by a reinsurance treaty or similar contractual obligation, that claim shall be entitled to a pro rata share, based upon the relationship the claim amount bears to all claims payable under the treaty or contract, of the proceeds received under that treaty or contractual obligation.

Claims receiving pro rata payments shall not, as to any remaining unpaid portion of their claim, be treated in a different manner than if no such payment had been received.

Sec. 19. Minnesota Statutes 1996, section 60B.44, is amended by adding a subdivision to read:

Subd. 4a. [FEDERAL CLAIMS.] Claims of the federal government.

Sec. 20. Minnesota Statutes 1996, section 60B.44, is amended by adding a subdivision to read:

Subd. 4b. [WAGES.] (a) Debts due to employees for services performed, not to exceed $1,000 to each employee, which have been earned within one year before the filing of the petition for liquidation, subject to payment of applicable federal, state, or local government taxes required by law to be withheld from the debts. Officers are not entitled to the benefit of this priority. In cases where there are no claims and no potential claims of the federal government in the estate, these claims will have priority over claims in subdivision 4.

(b) The priority in paragraph (a) is in lieu of any other similar priority authorized by law as to wages or compensation of employees.

Sec. 21. Minnesota Statutes 1996, section 60B.44, subdivision 6, is amended to read:

Sec. 22. Minnesota Statutes 1996, section 60D.20, subdivision 2, is amended to read:

Subd. 2. [DIVIDENDS AND OTHER DISTRIBUTIONS.] (a) Subject to the limitations and requirements of this subdivision, the board of directors of any domestic insurer within an insurance holding company system may authorize and cause the insurer to declare and pay any dividend or distribution to its shareholders as the directors deem prudent from the earned surplus of the insurer. An insurer's earned surplus, also known as unassigned funds, shall be determined in accordance with the accounting procedures and practices governing preparation of its annual statement, minus 25 percent of earned surplus attributable to net unrealized capital gains. Dividends which are paid from sources other than an insurer's earned surplus as of the end of the immediately preceding quarter for which the insurer has filed a quarterly or annual statement as appropriate, or are extraordinary dividends or distributions may be paid only as provided in paragraphs (d), (e), and (f).

(b) The insurer shall notify the commissioner within five business days following declaration of a dividend declared pursuant to paragraph (a) and at least ten days prior to its payment. The commissioner shall promptly consider the notification filed pursuant to this paragraph, taking into consideration the factors described in subdivision 4.

(c) The commissioner shall review at least annually the dividends paid by an insurer pursuant to paragraph (a) for the purpose of determining if the dividends are reasonable based upon (1) the adequacy of the level of surplus as regards policyholders remaining after the dividend payments, and (2) the quality of the insurer's earnings and extent to which the reported earnings include extraordinary items, such as surplus relief reinsurance transactions and reserve destrengthening.

(d) No domestic insurer shall pay any extraordinary dividend or make any other extraordinary distribution to its shareholders until: (1) 30 days after the commissioner has received notice of the declaration of it and has not within the period disapproved the payment; or (2) the commissioner has approved the payment within the 30-day period.

(e) For purposes of this section, an extraordinary dividend or distribution includes any dividend or distribution of cash or other property, whose fair market value together with that of other dividends or distributions made within the preceding 12 months exceeds the greater of (1) ten percent of the insurer's surplus as regards policyholders as of the 31st day of December next preceding on December 31 of the preceding year; or (2) the net gain from operations of the insurer, if the insurer is a life insurer, or the net income, if the insurer is not a life insurer, not including realized capital gains, for the 12-month period ending the 31st day of December next preceding on December 31 of the preceding year, but does not include pro rata distributions of any class of the insurer's own securities.

(f) Notwithstanding any other provision of law, an insurer may declare an extraordinary dividend or distribution that is conditional upon the commissioner's approval, and the declaration shall confer no rights upon shareholders until: (1) the commissioner has approved the payment of such a dividend or distribution; or (2) the commissioner has not disapproved the payment within the 30-day period referred to above.

Sec. 23. Minnesota Statutes 1996, section 60K.02, subdivision 1, is amended to read:

Subdivision 1. [REQUIREMENT.] No person shall act or assume to act as an insurance agent in the solicitation or procurement of applications for insurance, nor in the sale of insurance or policies of insurance, nor in any manner aid as an insurance agent in the negotiation of insurance by or with an insurer, including resident agents or reciprocal or interinsurance exchanges and fraternal benefit societies, until that person obtains from the commissioner a license for that purpose. The license must specifically set forth the name of the person authorized to act as an agent and the class or classes of insurance for which that person is authorized to solicit or countersign policies. An insurance agent may qualify for a license in the following classes to sell: (1) life and health; and (2) life and health and variable contracts; (3) property and casualty; (4) travel baggage; (5) bail bonds; (6) title insurance; and (7) farm property and liability.

Sec. 24. Minnesota Statutes 1996, section 60K.03, subdivision 2, is amended to read:

Subd. 2. [RESIDENT AGENT.] The commissioner shall issue a resident insurance agent's license to a qualified resident of this state as follows:

(a) A person may qualify as a resident of this state if that person resides in this state or the principal place of business of that person is maintained in this state. Application for a license claiming residency in this state for licensing purposes constitutes an election of residency in this state. A license issued upon an application claiming residency in this state is void if the licensee, while holding a resident license in this state, also holds, or makes application for, a resident license in, or thereafter claims to be a resident of, any other state or jurisdiction or if the licensee ceases to be a resident of this state; provided, however, if the applicant is a resident of a community or trade area, the border of which is contiguous with the state line of this state, the applicant may qualify for a resident license in this state and at the same time hold a resident license from the contiguous state.

(b) The commissioner shall subject each applicant who is a natural person to a written examination as to the applicant's competence to act as an insurance agent. The examination must be held at a reasonable time and place designated by the commissioner.

(c) The examination shall be approved for use by the commissioner and shall test the applicant's knowledge of the lines of insurance, policies, and transactions to be handled under the class of license applied for, of the duties and responsibilities of the licensee, and pertinent insurance laws of this state.

(d) The examination shall be given only after the applicant has completed a program of classroom studies in a school, which shall not include a school sponsored by, offered by, or affiliated with an insurance company or its agents; except that this limitation does not preclude a bona fide professional association of agents, not acting on behalf of an insurer, from offering courses. The course of study shall consist of 30 hours of classroom study devoted to the basic fundamentals of insurance for those seeking a Minnesota license for the first time,; three hours devoted to state laws, regulations, and rules applicable to the line or lines of insurance for which licensure is being applied; 15 hours devoted to specific life and health topics for those seeking a life and health license,; and 15 hours devoted to specific property and casualty topics for those seeking a property and casualty license. The program of studies or study course shall have been approved by the commissioner in order to qualify under this paragraph. If the applicant has been previously licensed for the particular line of insurance in the state of Minnesota, the requirement of a program of studies or a study course shall be waived. A certification of compliance by the organization offering the course shall accompany the applicant's license application. This program of studies in a school or a study course shall not apply to farm property perils and farm liability applicants, or to agents writing such other lines of insurance as the commissioner may exempt from examination by order.

(e) The applicant must pass the examination with a grade determined by the commissioner to indicate satisfactory knowledge and understanding of the class or classes of insurance for which the applicant seeks qualification. The commissioner shall inform the applicant as to whether or not the applicant has passed. Examination results are valid for a period of three years from the date of the examination. The applicant must pass the examination with a grade determined by the commissioner.

(f) An applicant who has failed to pass an examination may take subsequent examinations. Examination fees for subsequent examinations shall not be waived.

(g) Any applicant for a license covering the same class or classes of insurance for which the applicant was licensed under a similar license in this state, other than a temporary license, within the three years preceding the date of the application shall be exempt from the requirement of a written examination, unless the previous license was revoked or suspended by the commissioner. An applicant whose license is not renewed under section 60K.12 is exempt from the requirement of a written examination.

Sec. 25. Minnesota Statutes 1996, section 60K.03, subdivision 3, is amended to read:

Subd. 3. [NONRESIDENT AGENT.] The commissioner shall issue a nonresident insurance agent's license to a qualified person who is a resident of another state or country as follows:

(b) The commissioner shall not issue a license to a nonresident applicant until that person files with the commissioner a designation of the commissioner and the commissioner's successors in office as the applicant's true and lawful attorney upon whom may be served all lawful process in an action, suit, or proceeding instituted by or on behalf of an interested person arising out of the applicant's insurance business in this state. This designation constitutes an agreement that this service of process is of the same legal force and validity as personal service of process in this state upon that applicant.

Service of process upon a licensee in an action or proceeding begun in a court of competent jurisdiction of this state may be made in compliance with section 45.028, subdivision 2.

(c) A nonresident agent shall be held to the same knowledge of insurance law, regulations, and rules as that required of a resident agent according to subdivision 2, paragraph (d).

(c) (d) A nonresident license terminates automatically when the resident license for that class of license in the state, province, or foreign country in which the licensee is a resident is terminated for any reason.

Sec. 26. Minnesota Statutes 1996, section 60K.14, subdivision 4, is amended to read:

Subd. 4. [SUITABILITY OF INSURANCE.] In recommending the purchase of any life, endowment, individual accident and sickness, long-term care, annuity, life-endowment, or Medicare supplement insurance to a customer, an agent must have reasonable grounds for believing that the recommendation is suitable for the customer and must make reasonable inquiries to determine suitability. The suitability of a recommended purchase of insurance will be determined by reference to the totality of the particular customer's circumstances upon the basis of the facts disclosed by the customer as to the customer's other insurance and financial situation and needs, including, but not limited to, the customer's income financial status, the customer's need for insurance, and the values, benefits, and costs of the customer's existing insurance program, if any, when compared to the values, benefits, and costs of the recommended policy or policies.

Sec. 27. Minnesota Statutes 1996, section 60K.19, subdivision 7, is amended to read:

Subd. 7. [CRITERIA FOR COURSE ACCREDITATION.] (a) The commissioner may accredit a course only to the extent it is designed to impart substantive and procedural knowledge of the insurance field. The burden of demonstrating that the course satisfies this requirement is on the individual or organization seeking accreditation. The commissioner shall approve any educational program approved by Minnesota Continuing Legal Education relating to the insurance field. The commissioner is authorized to establish a procedure for renewal of course accreditation.

(b) The commissioner shall approve or disapprove professional designation examinations that are recommended for approval by the advisory task force. In order for an agent to receive full continuing education credit for a professional designation examination, the agent must pass the examination. An agent may not receive credit for classroom instruction preparing for the professional designation examination and also receive continuing education credit for passing the professional designation examination.

(c) The commissioner may not accredit a course:

(1) that is designed to prepare students for a license examination;

(2) in mechanical office or business skills, including typing, speedreading, use of calculators, or other machines or equipment;

(3) in sales promotion, including meetings held in conjunction with the general business of the licensed agent;

(4) in motivation, the art of selling, psychology, or time management; or

(d) The commissioner has discretion to establish a pilot program to explore delivery of accredited courses using new delivery technology, including interactive technology. This pilot program expires August 1, 2001.

Sec. 28. Minnesota Statutes 1996, section 60K.19, subdivision 8, is amended to read:

Subd. 8. [MINIMUM EDUCATION REQUIREMENT.] Each person subject to this section shall complete a minimum of 30 credit hours of courses accredited by the commissioner during each 24-month licensing period after the expiration of the person's initial licensing period, two hours of which must be devoted to state law, regulations, and rules applicable to the line or lines of insurance for which the agent is licensed. At least 15 of the 30 credit hours must be completed during the first 12 months of the 24-month licensing period. Any person whose initial licensing period extends more than six months shall complete 15 hours of courses accredited by the commissioner during the initial license period. Any person teaching or lecturing at an accredited course qualifies for 1-1/2 times the number of credit hours that would be granted to a person completing the accredited course. No more than 15 credit hours per licensing period may be credited to a person for courses sponsored by, offered by, or affiliated with an insurance company or its agents. Courses sponsored by, offered by, or affiliated with an insurance company or agent may restrict its students to agents of the company or agency.

Sec. 29. Minnesota Statutes 1996, section 61A.32, is amended to read:

61A.32 [DOMESTIC MUTUAL AND STOCK AND MUTUAL COMPANIES; VOTING RIGHTS OF MEMBERS.]

Every person insured by a domestic mutual life insurance company, and every participating policyholder of a domestic stock and mutual life insurance company as defined in sections 61A.33 to 61A.36, shall be a member, entitled to one vote and one vote additional for each $1,000 of insurance in excess of the first $1,000; provided, that no member shall be entitled to more than 100 votes; and, provided, further, that in the case of group insurance on employees such group shall be deemed to be a single member and the employer shall be deemed to be such member for the purpose of voting, having not to exceed 100 votes, provided, that in cases where the employees pay all or any part of the premium, either directly or by payroll deductions, the employees shall be allowed to choose their representative, who shall exercise a voting power in proportion to the percentage of premium paid by such employees. Every member shall be notified of its annual meetings by a written notice mailed to the member's address, or by an imprint on the back of the policy, premium notice, receipt or certificate of renewal, as follows:

"The insured is hereby notified that by virtue of this policy the insured is a member of the . . . . . Insurance Company, and that the annual meetings of said company are held at its home office on the . . . day of . . . in each year, at . . . . . o'clock."

The blanks shall be duly filled in print. Any such member may vote by proxy by filing written proxy appointment with the secretary of the company at its home office at least five days before the first meeting at which it is to be used. Such proxy appointment may be for a specified period of time not to exceed one year. A proxy may be revoked by a member at any time by written notice to the secretary of the company or by executing a new proxy appointment and filing it as required herein: provided, however, that any member may always appear personally and exercise rights as a member at any meeting of the company.

No person or group of persons other than the chief executive officer of a domestic mutual life insurance company, or the officer's designee, shall seek to obtain proxies from the members of the domestic mutual life insurance company for the purposes of affecting a change of control of the domestic mutual life insurance company unless that person or group has filed with the commissioner and has sent to the domestic mutual life insurance company a statement containing the information required by section 60D.17. Section 60D.17, subdivisions 2 to 7, applies in the event of any such solicitation.

Sec. 30. Minnesota Statutes 1996, section 61A.60, subdivision 1, is amended to read:

Subdivision 1. [NOTICE FORM; AGENT SALES.] The notice required where sections 61A.53 to 61A.60 refer to this subdivision is as follows:

DEFINITION REPLACEMENT is any transaction where, in connection with the purchase of New Insurance or a New Annuity, you LAPSE, SURRENDER, CONVERT to Paid-up Insurance, Place on Extended Term, or BORROW all or part of the policy loan values on an existing insurance policy or an annuity.

(See reverse side for DEFINITIONS.)

IF YOU INTEND In connection with the purchase of this insurance or annuity, if you have REPLACED TO REPLACE or intend to REPLACE your present life insurance coverage or annuity(ies), you should

COVERAGE be certain that you understand all the relevant factors involved.

You should BE AWARE that you may be required to provide EVIDENCE OF INSURABILITY and

(1) If your HEALTH condition has CHANGED since the application was taken on your present policies, you may be required to pay ADDITIONAL PREMIUMS under the NEW POLICY, or be DENIED coverage.

(2) Your present occupation or activities may not be covered or could require additional premiums.

(3) The INCONTESTABLE and SUICIDE CLAUSE will begin anew in a new policy. This could RESULT in a CLAIM under the new policy BEING DENIED that would otherwise have been paid.

(4) Current law DOES MAY NOT REQUIRE your present insurer(s) to REFUND any premiums.

(5) It is to your advantage to OBTAIN INFORMATION regarding your existing policies or annuity contracts [FROM THE INSURER OR AGENT FROM WHOM YOU PURCHASED THE POLICY OR ANNUITY CONTRACT.]

(If you are purchasing an annuity, clauses (1), (2), and (3) above would not apply to the new annuity contract.)

THE INSURANCE OR ANNUITY I INTEND TO PURCHASE FROM_______________________________________INSURANCE CO. MAY REPLACE OR ALTER EXISTING LIFE INSURANCE POLICY(IES) OR ANNUITY CONTRACT(S).

The following policy(ies) or annuity contract(s) may be replaced as a result of this transaction:

Insurer Insured

as it appears on the policy as it appears on the policy

or contract or contract

______________________________ ______________________________

______________________________ ______________________________

______________________________ ______________________________

Policy or contract number Insured birthdate

______________________________ ______________________________

______________________________ ______________________________

______________________________ ______________________________

______________________________ ______________________________

The proposed policy or contract is:

_____________________________ $________________________

type of policy- or contract-generic nameface amount

_______________________________________________________

signature of applicant date

_______________________________________________________

address of applicant city state

I certify that this form was given to and completed by

_______________________________________________________

(applicant-please print or type)

prior to taking an application and that I am leaving a signed copy for the applicant.

_______________________________________________________

agent's signature date

_______________________________________________________

address

_______________________________________________________

city state

Sec. 31. Minnesota Statutes 1996, section 61B.19, subdivision 3, is amended to read:

Subd. 3. [LIMITATION OF COVERAGE.] Sections 61B.18 to 61B.32 do not provide coverage for:

(1) a portion of a policy or contract under which the investment risk is borne by the policy or contract holder;

(2) a policy or contract of reinsurance, unless assumption certificates have been issued and the insured has consented to the assumption as provided under section 60A.09, subdivision 4a;

(3) a policy or contract issued by an assessment benefit association operating under section 61A.39, or a fraternal benefit society operating under chapter 64B;

(4) any obligation to nonresident participants of a covered retirement plan or to the plan sponsor, employer, trustee, or other party who owns the contract; in these cases, the association is obligated under this chapter only to participants in a covered plan who are residents of the state of Minnesota on the date of impairment or insolvency;

(5) an annuity contract issued in connection with and for the purpose of funding a structured settlement of a liability claim, where the liability insurer remains liable;

(6) a portion of an unallocated annuity contract which is not issued to or in connection with a specific employee, union, or association of natural persons benefit plan or a governmental lottery, including but not limited to, a contract issued to, or purchased at the direction of, any governmental bonding authority, such as a municipal guaranteed investment contract;

(7) a plan or program of an employer, association, or similar entity to provide life, health, or annuity benefits to its employees or members to the extent that the plan or program is self-funded or uninsured, including benefits payable by an employer, association, or similar entity under:

(ii) a minimum premium group insurance plan;

(iii) a stop-loss group insurance plan; or

(iv) an administrative services only contract;

(8) any policy or contract issued by an insurer at a time when it was not licensed or did not have a certificate of authority to issue the policy or contract in this state;

(9) an unallocated annuity contract issued to an employee benefit plan protected under the federal Pension Benefit Guaranty Corporation; and

(10) a portion of a policy or contract to the extent that it provides dividends or experience rating credits except to the extent the dividends or experience rating credits have actually become due and payable or have been credited to the policy or contract before the date of impairment or insolvency, or provides that a fee or allowance be paid to a person, including the policy or contract holder, in connection with the service to, or administration of, the policy or contract.; and

(11) a contractual agreement that establishes the member insurer's obligations to provide a book value accounting guaranty for defined contribution benefit plan participants by reference to a portfolio of assets that is owned by the benefit plan or its trustee, which in each case is not an affiliate of the member insurer.

Sec. 32. Minnesota Statutes 1996, section 62A.04, subdivision 3, is amended to read:

Subd. 3. [OPTIONAL PROVISIONS.] Except as provided in subdivision 4, no such policy delivered or issued for delivery to any person in this state shall contain provisions respecting the matters set forth below unless such provisions are in the words in which the same appear in this section. The insurer may, at its option, use in lieu of any such provision a corresponding provision of different wording approved by the commissioner which is not less favorable in any respect to the insured or the beneficiary. Any such provision contained in the policy shall be preceded individually by the appropriate caption appearing in this subdivision or, at the option of the insurer, by such appropriate individual or group captions or subcaptions as the commissioner may approve.

(1) A provision as follows:

CHANGE OF OCCUPATION: If the insured be injured or contract sickness after having changed occupations to one classified by the insurer as more hazardous than that stated in this policy or while doing for compensation anything pertaining to an occupation so classified, the insurer will pay only such portion of the indemnities provided in this policy as the premiums paid would have purchased at the rates and within the limits fixed by the insurer for such more hazardous occupation. If the insured changes occupations to one classified by the insurer as less hazardous than that stated in this policy, the insurer, upon receipt of proof of such change of occupation will reduce the premium rate accordingly, and will return the excess pro rata unearned premium from the date of change of occupation or from the policy anniversary date immediately preceding receipt of such proof, whichever is the more recent. In applying this provision, the classification of occupational risk and the premium rates shall be such as have been last filed by the insurer prior to the occurrence of the loss for which the insurer is liable or prior to date of proof of change in occupation with the state official having supervision of insurance in the state where the insured resided at the time this policy was issued; but if such filing was not required, then the classification of occupational risk and the premium rates shall be those last made effective by the insurer in such state prior to the occurrence of the loss or prior to the date of proof of change of occupation.

(2) A provision as follows:

(3) A provision as follows:

OTHER INSURANCE IN THIS INSURER: If an accident or sickness or accident and sickness policy or policies previously issued by the insurer to the insured be in force concurrently herewith, making the aggregate indemnity for . . . (insert type of coverage or coverages) in excess of $. . . (insert maximum limit of indemnity or indemnities) the excess insurance shall be void and all premiums paid for such excess shall be returned to the insured or to the insured's estate, or, in lieu thereof:

Insurance effective at any one time on the insured under a like policy or policies in this insurer is limited to the one such policy elected by the insured, or the insured's beneficiary or estate, as the case may be, and the insurer will return all premiums paid for all other such policies.

(4) A provision as follows:

INSURANCE WITH OTHER INSURERS: If there be other valid coverage, not with this insurer, providing benefits for the same loss on a provision of service basis or on an expense incurred basis and of which this insurer has not been given written notice prior to the occurrence or commencement of loss, the only liability under any expense incurred coverage of this policy shall be for such proportion of the loss as the amount which would otherwise have been payable hereunder plus the total of the like amounts under all such other valid coverages for the same loss of which this insurer had notice bears to the total like amounts under all valid coverages for such loss, and for the return of such portion of the premiums paid as shall exceed the pro rata portion for the amount so determined. For the purpose of applying this provision when other coverage is on a provision of service basis, the "like amount" of such other coverage shall be taken as the amount which the services rendered would have cost in the absence of such coverage.

If the foregoing policy provision is included in a policy which also contains the next following policy provision there shall be added to the caption of the foregoing provision the phrase "EXPENSE INCURRED BENEFITS." The insurer may, at its option, include in this provision a definition of "other valid coverage," approved as to form by the commissioner, which definition shall be limited in subject matter to coverage provided by organizations subject to regulation by insurance law or by insurance authorities of this or any other state of the United States or any province of Canada, and by hospital or medical service organizations, and to any other coverage the inclusion of which may be approved by the commissioner. In the absence of such definition such term shall not include group insurance, automobile medical payments insurance, or coverage provided by hospital or medical service organizations or by union welfare plans or employer or employee benefit organizations. For the purpose of applying the foregoing policy provision with respect to any insured, any amount of benefit provided for such insured pursuant to any compulsory benefit statute (including any workers' compensation or employer's liability statute) whether provided by a governmental agency or otherwise shall in all cases be deemed to be "other valid coverage" of which the insurer has had notice. In applying the foregoing policy provision no third party liability coverage shall be included as "other valid coverage."

(5) A provision as follows:

INSURANCE WITH OTHER INSURERS: If there be other valid coverage, not with this insurer, providing benefits for the same loss on other than an expense incurred basis and of which this insurer has not been given written notice prior to the occurrence or commencement of loss, the only liability for such benefits under this policy shall be for such proportion of the indemnities otherwise provided hereunder for such loss as the like indemnities of which the insurer had notice (including the indemnities under this policy) bear to the total amount of all like indemnities for such loss, and for the return of such portion of the premium paid as shall exceed the pro rata portion for the indemnities thus determined.

insured pursuant to any compulsory benefit statute (including any workers' compensation or employer's liability statute) whether provided by a governmental agency or otherwise shall in all cases be deemed to be "other valid coverage" of which the insurer has had notice. In applying the foregoing policy provision no third party liability coverage shall be included as "other valid coverage."

(6) A provision as follows:

RELATION OF EARNINGS TO INSURANCE: If the total monthly amount of loss of time benefits promised for the same loss under all valid loss of time coverage upon the insured, whether payable on a weekly or monthly basis, shall exceed the monthly earnings of the insured at the time disability commenced or the insured's average monthly earnings for the period of two years immediately preceding a disability for which claim is made, whichever is the greater, the insurer will be liable only for such proportionate amount of such benefits under this policy as the amount of such monthly earnings or such average monthly earnings of the insured bears to the total amount of monthly benefits for the same loss under all such coverage upon the insured at the time such disability commences and for the return of such part of the premiums paid during such two years as shall exceed the pro rata amount of the premiums for the benefits actually paid hereunder; but this shall not operate to reduce the total monthly amount of benefits payable under all such coverage upon the insured below the sum of $200 or the sum of the monthly benefits specified in such coverages, whichever is the lesser, nor shall it operate to reduce benefits other than those payable for loss of time.

The foregoing policy provision may be inserted only in a policy which the insured has the right to continue in force subject to its terms by the timely payment of premiums (1) until at least age 50, or, (2) in the case of a policy issued after age 44, for at least five years from its date of issue. The insurer may, at its option, include in this provision a definition of "valid loss of time coverage," approved as to form by the commissioner, which definition shall be limited in subject matter to coverage provided by governmental agencies or by organizations subject to regulation by insurance law or by insurance authorities of this or any other state of the United States or any province of Canada, or to any other coverage the inclusion of which may be approved by the commissioner or any combination of such coverages. In the absence of such definition such term shall not include any coverage provided for such insured pursuant to any compulsory benefit statute (including any workers' compensation or employer's liability statute), or benefits provided by union welfare plans or by employer or employee benefit organizations.

(7) A provision as follows:

UNPAID PREMIUM: Upon the payment of a claim under this policy, any premium then due and unpaid or covered by any note or written order may be deducted therefrom.

(8) A provision as follows:

CANCELLATION: The insurer may cancel this policy at any time by written notice delivered to the insured or mailed to the insured's last address as shown by the records of the insurer, stating when, not less than five days thereafter, such cancellation shall be effective; and after the policy has been continued beyond its original term the insured may cancel this policy at any time by written notice delivered or mailed to the insurer, effective upon receipt or on such later date as may be specified in such notice. In the event of cancellation, the insurer will return promptly the unearned portion of any premium paid. If Regardless of whether it is the insurer or the insured who cancels, the earned premium shall be computed by the use of the short-rate table last filed with the state official having supervision of insurance in the state where the insured resided when the policy was issued. If the insurer cancels, the earned premium shall be computed pro rata, unless the mode of payment is monthly or less, or if the unearned amount is for more than one month. Cancellation shall be without prejudice to any claim originating prior to the effective date of cancellation.

(9) A provision as follows:

(10) A provision as follows:

ILLEGAL OCCUPATION: The insurer shall not be liable for any loss to which a contributing cause was the insured's commission of or attempt to commit a felony or to which a contributing cause was the insured's being engaged in an illegal occupation.

(11) A provision as follows:

NARCOTICS: The insurer shall not be liable for any loss sustained or contracted in consequence of the insured's being under the influence of any narcotic unless administered on the advice of a physician.

Sec. 33. Minnesota Statutes 1996, section 62A.096, is amended to read:

62A.096 [NOTICE OF SUBROGATION CLAIM REQUIRED.]

(a) A person covered by a health carrier who makes a claim against a collateral source for damages that include repayment for medical and medically related expenses incurred for the covered person's benefit shall provide timely notice, in writing, to the health carrier of the pending or potential claim. Notwithstanding any other law to the contrary, the statute of limitations applicable to the rights with respect to reimbursement or subrogation by the health carrier against the covered person does not commence to run until the notice has been given.

(b) Upon receipt of payment on a subrogation claim, the health carrier shall promptly provide written notice to the covered person, or the person's attorney, indicating the amount received, the date it was received, the person from whom it was received, and a telephone number that the covered person or the attorney may call for more information.

(c) For purposes of this section, "covered person" and "a person covered" include a person formerly covered by the health carrier.

Sec. 34. Minnesota Statutes 1996, section 62A.135, subdivision 5, is amended to read:

Subd. 5. [SUPPLEMENT TO ANNUAL STATEMENTS SUPPLEMENTAL FILINGS.] Each insurer that has fixed indemnity policies in force in this state shall, as a supplement to the annual statement required by section 60A.13 upon request by the commissioner, submit, in a form prescribed by the commissioner, the experience data for the calendar year showing its incurred claims, earned premiums, incurred to earned loss ratio, and the ratio of the actual loss ratio to the expected loss ratio for each fixed indemnity policy form in force in Minnesota. The experience data must be provided on both a Minnesota only and a national basis. If in the opinion of the company's actuary, the deviation of the actual loss ratio from the expected loss ratio for a policy form is due to unusual reserve fluctuations, economic conditions, or other nonrecurring conditions, the insurer should also file that opinion with appropriate justification.

If the data submitted does not confirm that the insurer has satisfied the loss ratio requirements of this section, the commissioner shall notify the insurer in writing of the deficiency. The insurer shall have 30 days from the date of receipt of the commissioner's notice to file amended rates that comply with this section or a request for an exemption with appropriate justification. If the insurer fails to file amended rates within the prescribed time and the commissioner does not exempt the policy form from the need for a rate revision, the commissioner shall order that the insurer's filed rates for the nonconforming policy be reduced to an amount that would have resulted in a loss ratio that complied with this section had it been in effect for the reporting period of the supplement. The insurer's failure to file amended rates within the specified time of the issuance of the commissioner's order amending the rates does not preclude the insurer from filing an amendment of its rates at a later time.

Sec. 35. Minnesota Statutes 1996, section 62A.50, subdivision 3, is amended to read:

Subd. 3. [DISCLOSURES.] No long-term care policy shall be offered or delivered in this state, whether or not the policy is issued in this state, and no certificate of coverage under a group long-term care policy shall be offered or delivered in this state, unless a statement containing at least the following information is delivered to the applicant at the time the application is made:

(2) a statement of the exceptions and limitations in the policy including the following language, as applicable, in bold print: "THIS POLICY DOES NOT COVER ALL NURSING CARE FACILITIES OR NURSING HOME, HOME CARE, OR ADULT DAY CARE EXPENSES AND DOES NOT COVER RESIDENTIAL CARE. READ YOUR POLICY CAREFULLY TO DETERMINE WHICH FACILITIES AND EXPENSES ARE COVERED BY YOUR POLICY.";

(3) a statement of the renewal provisions including any reservation by the insurer of the right to change premiums;

(4) a statement that the outline of coverage is a summary of the policy issued or applied for and that the policy should be consulted to determine governing contractual provisions;

(5) an explanation of the policy's loss ratio including at least the following language: "This means that, on the average, policyholders may expect that $. . . . of every $100 in premium will be returned as benefits to policyholders over the life of the contract.";

(6) a statement of the out-of-pocket expenses, including deductibles and copayments for which the insured is responsible, and an explanation of the specific out-of-pocket expenses that may be accumulated toward any out-of-pocket maximum as specified in the policy;

(7) the following language, in bold print: "YOUR PREMIUMS CAN BE INCREASED IN THE FUTURE. THE RATE SCHEDULE THAT LISTS YOUR PREMIUM NOW CAN CHANGE.";

(8) the following language, if applicable, in bold print: "IF YOU ARE NOT HOSPITALIZED PRIOR TO ENTERING A NURSING HOME OR NEEDING HOME CARE, YOU WILL NOT BE ABLE TO COLLECT ANY BENEFITS UNDER THIS PARTICULAR POLICY.";

(9) (8) the following language in bold print, with any provisions that are inapplicable to the particular policy omitted or crossed out: "THIS POLICY HAS A WAITING PERIOD OF . . . (CALENDAR OR BENEFIT) DAYS FOR NURSING CARE SERVICES AND A WAITING PERIOD OF . . . (CALENDAR OR BENEFIT) DAYS FOR HOME CARE SERVICES. THIS MEANS THAT THIS POLICY WILL NOT COVER YOUR CARE FOR THE FIRST . . . (CALENDAR OR BENEFIT) DAYS AFTER YOU ENTER A NURSING HOME, OR THE FIRST . . . (CALENDAR OR BENEFIT) DAYS AFTER YOU BEGIN TO USE HOME CARE SERVICES. YOU WOULD NEED TO PAY FOR YOUR CARE FROM OTHER SOURCES FOR THOSE WAITING PERIODS."; and

(10) (9) a signed and completed copy of the application for insurance is left with the applicant at the time the application is made.

Sec. 36. Minnesota Statutes 1996, section 65A.01, subdivision 3, is amended to read:

Subd. 3. [POLICY PROVISIONS.] On said policy following such matter as provided in subdivisions 1 and 2, printed in the English language in type of such size or sizes and arranged in such manner, as is approved by the commissioner of commerce, the following provisions and subject matter shall be stated in the following words and in the following sequence, but with the convenient placing, if desired, of such matter as will act as a cover or back for such policy when folded, with the blanks below indicated being left to be filled in at the time of the issuing of the policy, to wit:

(Space for listing the amounts of insurance, rates and premiums for the basic coverages provided under the standard form of policy and for additional coverages or perils provided under endorsements attached. The description and location of the property covered and the insurable value(s) of any building(s) or structure(s) covered by the policy or its attached endorsements; also in the above space may be stated whether other insurance is limited and if limited the total amount permitted.)

In consideration of the provisions and stipulations herein or added hereto and of the premium above specified this company, for a term of . . . from . . . (At 12:01 a.m. Standard Time) to . . . (At 12:01 a.m. Standard Time) at location of property involved, to an amount not exceeding the amount(s) above specified does insure . . . and legal representatives . . . . . . . . . . . . . . . . . . . . . .

(In above space may be stated whether other insurance is limited.) (And if limited the total amount permitted.)

This policy is made and accepted subject to the foregoing provisions and stipulations and those hereinafter stated, which are hereby made a part of this policy, together with such provisions, stipulations and agreements as may be added hereto as provided in this policy.

The insurance effected above is granted against all loss or damage by fire originating from any cause, except as hereinafter provided, also any damage by lightning and by removal from premises endangered by the perils insured against in this policy, to the property described hereinafter while located or contained as described in this policy, or pro rata for five days at each proper place to which any of the property shall necessarily be removed for preservation from the perils insured against in this policy, but not elsewhere. The amount of said loss or damage, except in case of total loss on buildings, to be estimated according to the actual value of the insured property at the time when such loss or damage happens.

If the insured property shall be exposed to loss or damage from the perils insured against, the insured shall make all reasonable exertions to save and protect same.

This entire policy shall be void if, whether before a loss, the insured has willfully, or after a loss, the insured has willfully and with intent to defraud, concealed or misrepresented any material fact or circumstance concerning this insurance or the subject thereof, or the interests of the insured therein.

This policy shall not cover accounts, bills, currency, deeds, evidences of debt, money or securities; nor, unless specifically named hereon in writing, bullion, or manuscripts.

This company shall not be liable for loss by fire or other perils insured against in this policy caused, directly or indirectly by: (a) enemy attack by armed forces, including action taken by military, naval or air forces in resisting an actual or immediately impending enemy attack; (b) invasion; (c) insurrection; (d) rebellion; (e) revolution; (f) civil war; (g) usurped power; (h) order of any civil authority except acts of destruction at the time of and for the purpose of preventing the spread of fire, providing that such fire did not originate from any of the perils excluded by this policy.

Other insurance may be prohibited or the amount of insurance may be limited by so providing in the policy or an endorsement, rider or form attached thereto.

Unless otherwise provided in writing added hereto this company shall not be liable for loss occurring:

(a) while the hazard is increased by any means within the control or knowledge of the insured; or

(b) while the described premises, whether intended for occupancy by owner or tenant, are vacant or unoccupied beyond a period of 60 consecutive days; or

(c) as a result of explosion or riot, unless fire ensue, and in that event for loss by fire only.

Any other peril to be insured against or subject of insurance to be covered in this policy shall be by endorsement in writing hereon or added hereto.

The extent of the application of insurance under this policy and the contributions to be made by this company in case of loss, and any other provision or agreement not inconsistent with the provisions of this policy, may be provided for in writing added hereto, but no provision may be waived except such as by the terms of this policy is subject to change.

No permission affecting this insurance shall exist, or waiver of any provision be valid, unless granted herein or expressed in writing added hereto. No provision, stipulation or forfeiture shall be held to be waived by any requirements or proceeding on the part of this company relating to appraisal or to any examination provided for herein.

If loss hereunder is made payable, in whole or in part, to a designated mortgagee or contract for deed vendor not named herein as insured, such interest in this policy may be canceled by giving to such mortgagee or vendor a ten days' written notice of cancellation.

Notwithstanding any other provisions of this policy, if this policy shall be made payable to a mortgagee or contract for deed vendor of the covered real estate, no act or default of any person other than such mortgagee or vendor or the mortgagee's or vendor's agent or those claiming under the mortgagee or vendor, whether the same occurs before or during the term of this policy, shall render this policy void as to such mortgagee or vendor nor affect such mortgagee's or vendor's right to recover in case of loss on such real estate; provided, that the mortgagee or vendor shall on demand pay according to the established scale of rates for any increase of risks not paid for by the insured; and whenever this company shall be liable to a mortgagee or vendor for any sum for loss under this policy for which no liability exists as to the mortgagor, vendee, or owner, and this company shall elect by itself, or with others, to pay the mortgagee or vendor the full amount secured by such mortgage or contract for deed, then the mortgagee or vendor shall assign and transfer to the company the mortgagee's or vendor's interest, upon such payment, in the said mortgage or contract for deed together with the note and debts thereby secured.

This company shall not be liable for a greater proportion of any loss than the amount hereby insured shall bear to the whole insurance covering the property against the peril involved.

In case of any loss under this policy the insured shall give immediate written notice to this company of any loss, protect the property from further damage, and a statement in writing, signed and sworn to by the insured, shall within 60 days be rendered to the company, setting forth the value of the property insured, except in case of total loss on buildings the value of said buildings need not be stated, the interest of the insured therein, all other insurance thereon, in detail, the purposes for which and the persons by whom the building insured, or containing the property insured, was used, and the time at which and manner in which the fire originated, so far as known to the insured.

The insured, as often as may be reasonably required, shall exhibit to any person designated by this company all that remains of any property herein described, and, after being informed of the right to counsel and that any answers may be used against the insured in later civil or criminal proceedings, the insured shall, within a reasonable period after demand by this company, submit to examinations under oath by any person named by this company, and subscribe the oath. The insured, as often as may be reasonably required, shall produce for examination all records and documents reasonably related to the loss, or certified copies thereof if originals are lost, at a reasonable time and place designated by this company or its representatives, and shall permit extracts and copies thereof to be made.

In case the insured and this company, except in case of total loss on buildings, shall fail to agree as to the actual cash value or the amount of loss, then, on the written demand of either, each shall select a competent and disinterested appraiser and notify the other of the appraiser selected within 20 days of such demand. In case either fails to select an appraiser within the time provided, then a presiding judge of the district court of the county wherein the loss occurs may appoint such appraiser for such party upon application of the other party in writing by giving five days' notice thereof in writing to the party failing to appoint. The appraisers shall first select a competent and disinterested umpire; and failing for 15 days to agree upon such umpire, then a presiding judge of the above mentioned court may appoint such an umpire upon application of party in writing by giving five days' notice thereof in writing to the other party. The appraisers shall then appraise the loss, stating separately actual value and loss to each item; and, failing to agree, shall submit their differences, only, to the umpire. An award in writing, so itemized, of any two when filed with this company shall determine the amount of actual value and loss. Each appraiser shall be paid by the selecting party, or the party for whom selected, and the expense of the appraisal and umpire shall be paid by the parties equally.

It shall be optional with this company to take all of the property at the agreed or appraised value, and also to repair, rebuild or replace the property destroyed or damaged with other of like kind and quality within a reasonable time, on giving notice of its intention so to do within 30 days after the receipt of the proof of loss herein required.

The amount of loss for which this company may be liable shall be payable 60 days after proof of loss, as herein provided, is received by this company and ascertainment of the loss is made either by agreement between the insured and this company expressed in writing or by the filing with this company of an award as herein provided. It is moreover understood that there can be no abandonment of the property insured to the company, and that the company will not in any case be liable for more than the sum insured, with interest thereon from the time when the loss shall become payable, as above provided.

No suit or action on this policy for the recovery of any claim shall be sustainable in any court of law or equity unless all he requirements of this policy have been complied with, and unless commenced within two years after inception of the loss.

This company is subrogated to, and may require from the insured an assignment of all right of recovery against any party for loss to the extent that payment therefor is made by this company; and the insurer may prosecute therefor in the name of the insured retaining such amount as the insurer has paid.

Assignment of this policy shall not be valid except with the written consent of this company.

IN WITNESS WHEREOF, this company has executed and attested these presents.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(Signature) (Signature)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(Name of office) (Name of office)

Sec. 37. Minnesota Statutes 1996, section 65A.01, is amended by adding a subdivision to read:

Subd. 3c. [TIME REQUIREMENTS.] (a) In the event of a policy less than 60 days old that is not being renewed, or a policy that it is being canceled for nonpayment of premium, the notice must be mailed to the insured so that it is received at least ten days before the effective cancellation date, as shown by a dated and signed certified mail receipt. If a policy is being canceled for underwriting considerations, the insured must be informed of the source from which the information was received.

(b) In the event of a mid-term cancellation, for reasons listed in subdivision 3a, or according to policy provisions, the insured must receive a 30-day notice.

(c) In the event of a nonrenewal, a 60-day notice must be sent to the insured, containing the specific underwriting or other reason for the indicated actions.

This subdivision does not apply to commercial policies regulated under sections 60A.36 and 60A.37.

Sec. 38. Minnesota Statutes 1996, section 65A.27, subdivision 4, is amended to read:

Subd. 4. "Homeowner's insurance" means insurance coverage, as provided in section 60A.06, subdivision 1, clause (1)(c), normally written by the insurer as a standard homeowner's package policy or as a standard residential renter's package policy. This definition includes, but is not limited to, policies that are generally described as homeowners' policies, mobile/manufactured homeowners' policies, dwelling owner policies, condominium owner policies, and tenant policies.

Sec. 39. Minnesota Statutes 1996, section 65A.29, subdivision 4, is amended to read:

Subd. 4. [FORM REQUIREMENTS.] Any notice or statement required by subdivisions 1 to 3, or any other notice canceling a homeowner's insurance policy must be written in language which is easily readable and understandable by a person of average intelligence and understanding. The statement of reason must be sufficiently specific to convey, clearly and without further inquiry, the basis for the insurer's refusal to renew or to write the insurance coverage.

The notice or statement must also inform the insured of:

(2) the right to object to the commissioner under subdivision 9; and

(3) the right to the return of unearned premium in appropriate situations under subdivision 10.

Sec. 40. Minnesota Statutes 1996, section 65B.133, subdivision 5, is amended to read:

Subd. 5. [LIMITATION ON CHARGEABLE TRAFFIC VIOLATIONS.] No traffic violation is chargeable to a driver unless the driver is convicted of, or forfeits bail for, the offense, or the driver's license is revoked pursuant to section 169.123. If a surcharge is applied because bail is forfeited and if the driver is later acquitted of the offense, the insurer shall rebate the surcharge. A violation of section 169.685, subdivision 5 is not chargeable. No traffic violation is chargeable if the person's only traffic violations within the preceding three-year period are two or fewer petty misdemeanor violations of chapter 169.

Sec. 41. Minnesota Statutes 1996, section 65B.14, subdivision 5, is amended to read:

Subd. 5. [VIOLATIONS.] "Violations" means all moving traffic violations that are recorded by the department of public safety on a household member's motor vehicle record, and violations reported by a similar authority in another state or moving traffic violations reported by the insured. A person shall be deemed to have no violations if the person's only traffic violations within the preceding three-year period are two or fewer petty misdemeanor violations of chapter 169.

Sec. 42. Minnesota Statutes 1996, section 65B.44, subdivision 3, is amended to read:

Subd. 3. [DISABILITY AND INCOME LOSS BENEFITS.] Disability and income loss benefits shall provide compensation for 85 percent of the injured person's loss of present and future gross income from inability to work proximately caused by the nonfatal injury subject to a maximum of $250 $500 per week. Loss of income includes the costs incurred by a self-employed person to hire substitute employees to perform tasks which are necessary to maintain the income of the injured person, which are normally performed by the injured person, and which cannot be performed because of the injury.

If the injured person is unemployed at the time of injury and is receiving or is eligible to receive unemployment benefits under chapter 268, but the injured person loses eligibility for those benefits because of inability to work caused by the injury, disability and income loss benefits shall provide compensation for the lost benefits in an amount equal to the unemployment benefits which otherwise would have been payable, subject to a maximum of $250 $500 per week.

Compensation under this subdivision shall be reduced by any income from substitute work actually performed by the injured person or by income the injured person would have earned in available appropriate substitute work which the injured person was capable of performing but unreasonably failed to undertake.

For the purposes of this section "inability to work" means disability which prevents the injured person from engaging in any substantial gainful occupation or employment on a regular basis, for wage or profit, for which the injured person is or may by training become reasonably qualified. If the injured person returns to employment and is unable by reason of the injury to work continuously, compensation for lost income shall be reduced by the income received while the injured person is actually able to work. The weekly maximums may not be prorated to arrive at a daily maximum, even if the injured person does not incur loss of income for a full week.

For the purposes of this section, an injured person who is "unable by reason of the injury to work continuously" includes, but is not limited to, a person who misses time from work, including reasonable travel time, and loses income, vacation, or sick leave benefits, to obtain medical treatment for an injury arising out of the maintenance or use of a motor vehicle.

Sec. 43. Minnesota Statutes 1996, section 65B.48, subdivision 5, is amended to read:

Subd. 5. (a) Every owner of a motorcycle registered or required to be registered in this state or operated in this state by the owner or with the owner's permission shall provide and maintain security for the payment of tort liabilities arising out of the maintenance or use of the motorcycle in this state. Security may be provided by a contract of liability insurance complying with section 65B.49, subdivision 3, or by qualifying as a self insurer in the manner provided in subdivision 3.

(b) At the time an application for motorcycle insurance without personal injury protection coverage is completed, there must be attached to the application a separate form containing a written notice in at least 10-point bold type, if printed, or in capital letters, if typewritten that states:

"Under Minnesota law, a policy of motorcycle coverage issued in the State of Minnesota must provide liability coverage only, and there is no requirement that the policy provide personal injury protection (PIP) coverage in the case of injury sustained by the insured. No PIP coverage provided by an automobile insurance policy you may have in force will extend to provide coverage in the event of a motorcycle accident."

Sec. 44. [65B.492] [TOTAL DISABILITY; WAIVER OF WAGE LOSS REIMBURSEMENT.]

A plan of reparation security issued to or renewed with a person who is totally disabled may contain a waiver of wage loss reimbursement coverage, provided that the rate for any plan for which this coverage has been excluded or reduced must be reduced accordingly. For purposes of this section, the term "total disability" means the inability of an insured who is ill or injured to engage in any paid employment or work. The reparation obligor may request the insured to provide written certification of the disability by a licensed practicing physician so long as the written certification is required no more frequently than on an annual basis. This section applies to self-insurance.

Sec. 45. Minnesota Statutes 1996, section 72A.20, subdivision 23, is amended to read:

Subd. 23. [DISCRIMINATION IN AUTOMOBILE INSURANCE POLICIES.] (a) No insurer that offers an automobile insurance policy in this state shall:

(1) use the employment status of the applicant as an underwriting standard or guideline; or

(2) deny coverage to a policyholder for the same reason.

(b) No insurer that offers an automobile insurance policy in this state shall:

(1) use the applicant's status as a tenant, as the term is defined in section 566.18, subdivision 2, as an underwriting standard or guideline; or

(2) deny coverage to a policyholder for the same reason; or

(3) make any discrimination in offering or establishing rates, premiums, dividends, or benefits of any kind, or by way of rebate, for the same reason.

(c) No insurer that offers an automobile insurance policy in this state shall:

(1) use the failure of the applicant to have an automobile policy in force during any period of time before the application is made as an underwriting standard or guideline; or

(2) deny coverage to a policyholder for the same reason.

An insurer may require reasonable proof that the applicant did not fail to maintain this coverage. The insurer is not required to accept the mere lack of a conviction or citation for failure to maintain this coverage as proof of failure to maintain coverage. The insurer must provide the applicant with information identifying the documentation that is required to establish reasonable proof that the applicant did not fail to maintain the coverage.

(d) No insurer that offers an automobile insurance policy in this state shall use an applicant's prior claims for benefits paid under section 65B.44 as an underwriting standard or guideline if the applicant was 50 percent or less negligent in the accident or accidents causing the claims.

(e) No insurer that offers an automobile insurance policy in this state shall use an applicant's traffic violations as an underwriting standard or guideline if the applicant's only traffic violations within the preceding three-year period are two or fewer petty misdemeanor violations of chapter 169.

Sec. 46. Minnesota Statutes 1996, section 72A.20, subdivision 34, is amended to read:

Subd. 34. [SUITABILITY OF INSURANCE FOR CUSTOMER.] In recommending or issuing life, endowment, individual accident and sickness, long-term care, annuity, life-endowment, or Medicare supplement insurance to a customer, an insurer, either directly or through its agent, must have reasonable grounds for believing that the recommendation is suitable for the customer, upon the basis of facts disclosed by the customer as to the customer's other insurance and financial situation and needs, including, but not limited to, the customer's financial status, the customer's need for insurance, and the values, benefits, and costs of the customer's existing insurance program, if any, when compared to the values, benefits, and costs of the recommended policy or policies.

In the case of group insurance marketed on a direct response basis without the use of direct agent contact, this subdivision is satisfied if the insurer has reasonable grounds to believe that the insurance offered is generally suitable for the group to whom the offer is made.

Sec. 47. Minnesota Statutes 1997 Supplement, section 72B.04, subdivision 10, is amended to read:

Subd. 10. [FEES.] A fee of $40 is imposed for each initial license or temporary permit and $25 for each renewal thereof or amendment thereto. A fee of $20 is imposed for the registration of each nonlicensed adjuster who is required to register under section 72B.06. All fees shall be transmitted to the commissioner and shall be payable to the state treasurer department of commerce. If a fee is paid for an examination and if within one year from the date of that payment no written request for a refund is received by the commissioner or the examination for which the fee was paid is not taken, the fee is forfeited to the state of Minnesota.

Sec. 48. Minnesota Statutes 1996, section 79A.01, subdivision 10, is amended to read:

Subd. 10. [COMMON CLAIMS FUND.] "Common claims fund," with respect to group self-insurers, means the cash, cash equivalents, or investment accounts maintained by the mutual self-insurance group to pay its workers' compensation liabilities.

Sec. 49. Minnesota Statutes 1996, section 79A.01, is amended by adding a subdivision to read:

Subd. 11. [DIMINUTIVE APPLICANTS.] "Diminutive applicants" to group self-insurance means applicants to existing self-insurance groups whose equity and premium are both less than five percent of the total group's equity and premium.

Sec. 50. Minnesota Statutes 1996, section 79A.02, subdivision 1, is amended to read:

Sec. 51. Minnesota Statutes 1996, section 79A.02, subdivision 4, is amended to read:

Subd. 4. [RECOMMENDATIONS TO COMMISSIONER REGARDING REVOCATION.] After each fifth anniversary from the date each individual and group self-insurer becomes certified to self-insure, the committee shall review all relevant financial data filed with the department of commerce that is otherwise available to the public and make a recommendation to the commissioner about whether each self-insurer's certificate should be revoked. For group self-insurers who have been in existence for five years or more and have been granted renewal authority, a level of funding in the common claims fund must be maintained at not less than the greater of either: (1) one year's claim losses paid in the most recent year; or (2) one-third of the security deposit posted with the department of commerce according to section 79A.04, subdivision 2. This provision supersedes any requirements under section 79A.03, subdivision 10, and Minnesota Rules, part 2780.5000.

Sec. 52. Minnesota Statutes 1996, section 79A.03, subdivision 6, is amended to read:

Subd. 6. [APPLICATIONS FOR GROUP SELF-INSURANCE.] (a) Two or more employers may apply to the commissioner for the authority to self-insure as a group, using forms available from the commissioner. This initial application shall be accompanied by a copy of the bylaws or plan of operation adopted by the group. Such bylaws or plan of operation shall conform to the conditions prescribed by law or rule. The commissioner shall approve or disapprove the bylaws within 60 days unless a question as to the legality of a specific bylaw or plan provision has been referred to the attorney general's office. The commissioner shall make a determination as to the application within 15 days after receipt of the requested response from the attorney general's office.

(b) After the initial application and the bylaws or plan of operation have been approved by the commissioner or at the time of the initial application, the group shall submit the names of employers that will be members of the group; an indemnity agreement providing for joint and several liability for all group members for any and all workers' compensation claims incurred by any member of the group, as set forth in Minnesota Rules, part 2780.9920, signed by an officer of each member; and an accounting review performed by a certified public accountant. A certified financial audit may be filed in lieu of an accounting review.

(c) When a group has obtained its authority to self-insure, additional applicants who wish to join the group must apply for approval by submitting: (1) an application; (2) an indemnity agreement providing for joint and several liability as set forth in Minnesota Rules, part 2780.9920, signed by an officer of the applicant; and (3) a certified financial audit performed by a certified public accountant at least 45 days before joining the group. An accounting review performed by a certified public accountant may be filed in lieu of a certified audit.

New diminutive applicants to the group, as defined in section 79A.01, subdivision 11, applying for membership in groups in existence longer than one year, who have a combined equity of all group members in excess of 15 times the last retention limit selected by the group with the workers' compensation reinsurance association, and have posted 125 percent of the group's total estimated future liability, must submit the items in this paragraph at least ten days before joining the group.

If the cumulative total of premium added to the group by diminutive new members is greater than 50 percent in a fiscal year of the group, all subsequent new members' applications must be submitted at least 45 days before joining the group.

In all cases of new membership, evidence that cash premiums equal to not less than 20 percent of the current year's modified premium of each applicant have been paid into a common claims fund, maintained by the group in a designated depository must be filed with the department at least ten days before joining the group.

Sec. 53. Minnesota Statutes 1996, section 79A.03, subdivision 7, is amended to read:

Subd. 7. [FINANCIAL STANDARDS.] A self-insurer group proposing to self-insure shall have and maintain:

(b) Sufficient assets, net worth, and liquidity to promptly and completely meet all obligations of its members under chapter 176 or this chapter. In determining whether a group is in sound financial condition, consideration shall be given to the combined net worth of the member companies; the consolidated long-term and short-term debt to equity ratios of the member companies; any excess insurance other than reinsurance with the workers' compensation reinsurance association, purchased by the group from an insurer licensed in Minnesota or from an authorized surplus line carrier; other financial data requested by the commissioner or submitted by the group; and the combined workers' compensation experience of the group for the last four years.

Sec. 54. Minnesota Statutes 1996, section 79A.03, subdivision 9, is amended to read:

Subd. 9. [FILING REPORTS.] (a) Incurred losses, paid and unpaid, specifying indemnity and medical losses by classification, payroll by classification, and current estimated outstanding liability for workers' compensation shall be reported to the commissioner by each self-insurer on a calendar year basis, in a manner and on forms available from the commissioner. Payroll information must be filed by April 1 of the following year, and loss information and total workers' compensation liability must be filed by August 1 of the following year.

(b) Each self-insurer shall, under oath, attest to the accuracy of each report submitted pursuant to paragraph (a). Upon sufficient cause, the commissioner shall require the self-insurer to submit a certified audit of payroll and claim records conducted by an independent auditor approved by the commissioner, based on generally accepted accounting principles and generally accepted auditing standards, and supported by an actuarial review and opinion of the future contingent liabilities. The basis for sufficient cause shall include the following factors: where the losses reported appear significantly different from similar types of businesses; where major changes in the reports exist from year to year, which are not solely attributable to economic factors; or where the commissioner has reason to believe that the losses and payroll in the report do not accurately reflect the losses and payroll of that employer. If any discrepancy is found, the commissioner shall require changes in the self-insurer's or workers' compensation service company record keeping practices.

(c) With the An annual loss status report due August 1, by each self-insurer shall report to the commissioner any workers' compensation claim from the previous year where the full, undiscounted value is estimated to exceed $50,000, be filed in a manner and on forms prescribed by the commissioner.

(d) Each individual self-insurer shall, within four months after the end of its fiscal year, annually file with the commissioner its latest 10K report required by the Securities and Exchange Commission. If an individual self-insurer does not prepare a 10K report, it shall file an annual certified financial statement, together with such other financial information as the commissioner may require to substantiate data in the financial statement.

(e) Each member of the group shall, within four months after the end of each fiscal year for that group, file the most recent annual financial statement, reviewed by a certified public accountant in accordance with the Statements on Standards for Accounting and Review Services, Volume 2, the American Institute of Certified Public Accountants Professional Standards, or audited in accordance with generally accepted auditing standards, together with such other financial information the commissioner may require. In addition, the group shall file, within four months after the end of each fiscal year for that group, combining financial statements of the group members, compiled by a certified public accountant in accordance with the Statements on Standards for Accounting and Review Services, Volume 2, the American Institute of Certified Public Accountants Professional Standards. The combining financial statements shall include, but not be limited to, a balance sheet, income statement, statement of changes in net worth, and statement of cash flow. Each combining financial statement shall include a column for each individual group member along with a total column.

Where a group has 50 or more members, the group shall file, in lieu of the combining financial statements, a combined financial statement showing only the total column for the entire group's balance sheet, income statement, statement of changes in net worth, and statement of cash flow. Additionally, the group shall disclose, for each member, the total assets, net worth, revenue, and income for the most recent fiscal year. The combining and combined financial statements may omit all footnote disclosures.

net loss of income, the downgrading of the company's bond rating, or any other significant change that may adversely affect the self-insurer's ability to pay expected losses. Any self-insurer that files an 8K report with the Securities and Exchange Commission shall also file a copy of the report with the commissioner within 30 days of the filing with the Securities and Exchange Commission.

Sec. 55. Minnesota Statutes 1996, section 79A.03, subdivision 10, is amended to read:

Subd. 10. [ANNUAL AUDIT AND REFUNDS.] (a) The accounts and records of the group self-insurer's fund shall be audited annually. Audits shall be made by certified public accountants, based on generally accepted accounting principles and generally accepted auditing standards, and supported by actuarial review and opinion of the future contingent liabilities, in order to determine the solvency of the self-insurer's fund. All audits required by this subdivision shall be filed with the commissioner 90 days after the close of the fiscal year for the group self-insurer. The commissioner may require a special audit to be made at other times if the financial stability of the fund or the adequacy of its monetary reserves is in question.

(b) One hundred percent of any surplus money for a fund year in excess of 125 percent of the amount necessary to fulfill all obligations under chapter 176 for that fund year may be declared refundable to a member at any time after 18 months following the end of such fund year. There can be no more than one refund in any 12-month period. When all claims of any one fund year have been fully paid, as certified by an actuary, all surplus money from that fund year may be declared refundable.

Sec. 56. Minnesota Statutes 1996, section 79A.03, is amended by adding a subdivision to read:

Subd. 13. [ANNUAL REQUIREMENTS.] The financial requirements set forth in subdivisions 3, 4, 5, and 7 must be met on an annual basis.

Sec. 57. Minnesota Statutes 1996, section 79A.21, subdivision 2, is amended to read:

Subd. 2. [REQUIRED DOCUMENTS.] All first year applications must be accompanied by the following:

(a) A detailed business plan including the risk profile of the proposed membership, underwriting guidelines, marketing plan, minimum financial criteria for each member, and financial projections for the first year of operation.

(b) A plan describing the method in which premiums are to be charged to the employer members. The plan shall be accompanied by copies of the member's workers' compensation insurance policies in force at the time of application. In developing the premium for the group, the commercial self-insurance group shall base its premium on the Minnesota workers' compensation insurers association's manual of rules, loss costs, and classifications approved for use in Minnesota by the commissioner. Each member applicant shall, on a form approved by the commissioner, complete estimated payrolls for the first 12-month period that the applicant will be self-insured. Premium volume discounts per the plan will be permitted if they can be shown to be consistent with actuarial standards.

(c) A schedule indicating actual or anticipated operational expenses of the commercial self-insurance group. No authority to self-insure will be granted unless, over the term of the policy year, at least 65 percent of total revenues from all sources for the year are available for the payment of its claim and assessment obligations. For purposes of this calculation, claim and assessment obligations include the cost of allocated loss expenses as well as special compensation fund and commercial self-insurance group security fund assessments but exclude the cost of unallocated loss expenses.

(d) An indemnity agreement from each member who will participate in the commercial self-insurance group, signed by an officer of each member, providing for joint and several liability for all claims and expenses of all of the members of the commercial self-insurance group arising in any fund year in which the member was a participant on a form approved by the commissioner. The indemnity agreement shall provide for assessments according to the group's bylaws on an individual and proportionate basis.

(e) A copy of the commercial self-insurance group bylaws.

(g) Each initial member of the commercial self-insurance group shall submit to the commercial self-insurance group accountant its most recent annual financial statement. Financial statements for a period ending more than six months prior to the date of the application must be accompanied by an affidavit, signed by a company officer under oath, stating that there has been no material lessening of the net worth nor other adverse changes in its financial condition since the end of the period. Individual group members constituting at least 75 percent of the group's annual premium shall submit reviewed or audited financial statements. The remaining members may submit compilation level statements. Statements for a period ending more than 12 months prior to the date of application cannot be accepted.

(h) A compiled combined financial statement of all group members prepared by the commercial self-insurance group's accountant and a list of members included in such statements.

(i) A copy of each member's accountant's report letter from the reports used in compiling the combined financial statements.

(j) A list of all members and the percentage of premium each represents to the total group's annual premium for the policy year.

Sec. 58. Laws 1996, chapter 446, article 1, section 72, is amended to read:

Sec. 72. [REPEALER.]

(a) Minnesota Statutes 1994, sections 60A.40; 60B.27; 62I.20; 65A.25; and 72A.205, are repealed.

(b) Laws 1995, chapter 140, section 1, is repealed.

(c) Section 51 is repealed effective August 1, 1998.

Sec. 59. [WARRANTY PRODUCTS AND EXTENDED SERVICE CONTRACTS; STUDY.]

The commissioner of commerce shall conduct a study to determine the appropriate regulatory framework for warranty products and extended service contracts offered for sale in Minnesota.

The commissioner shall make a written report to the legislature on or before February 15, 1999, discussing the types of warranty and extended service contracts available to Minnesota consumers. The report must also include recommendations as to how these products should be regulated in Minnesota, including a discussion as to when these products should be regulated as insurance. In examining these issues, the commissioner may seek the advice of representatives from the attorney general's office, the retail merchants industry, public utilities, and the insurance industry.

Sec. 60. [APPLICATION.]

Section 16 applies to all contracts entered into, renewed, extended, or amended on or after its effective date and to obligations arising from any business written or transaction occurring covered by reinsurance after the effective date according to any contract including those in existence before the effective date.

Sec. 61. [REPEALER.]

Minnesota Statutes 1996, sections 60A.11, subdivision 24a; 60B.36; 60B.44, subdivision 3; 65A.29, subdivision 12; and 79A.04, subdivision 8, are repealed.

Sec. 62. [EFFECTIVE DATE.]

Sections 1, 2, 10, 13, 23, 27, 30, 32, 35, 36, 38, 47, and 58 are effective the day after final enactment.

Sections 24, 25, and 28 are effective January 1, 1998.

Section 33 is effective August 1, 1998, and applies to recoveries received on or after that date.

Sections 40, 41, and 45 are effective January 1, 1999.

Section 42 is effective January 1, 1999, and applies to plans of reparation security issued, renewed, or continued as defined in Minnesota Statutes, section 60A.02, subdivision 2a, on or after that date."

Delete the title and insert:

"A bill for an act relating to insurance; regulating companies and agents; regulating coverages; providing certain notices and filing requirements; providing for a study; making certain technical changes; amending Minnesota Statutes 1996, sections 60A.02, subdivision 1a, and by adding a subdivision; 60A.052, subdivision 2, and by adding a subdivision; 60A.06, subdivisions 1 and 2; 60A.092, subdivision 6; 60A.10, subdivision 1; 60A.111, subdivision 1; 60A.13, subdivision 1; 60A.171, subdivision 7; 60A.19, subdivision 1; 60B.04, by adding a subdivision; 60B.21, subdivision 2; 60B.25; 60B.44, subdivisions 2, 4, 6, and by adding subdivisions; 60D.20, subdivision 2; 60K.02, subdivision 1; 60K.03, subdivisions 2 and 3; 60K.14, subdivision 4; 60K.19, subdivisions 7 and 8; 61A.32; 61A.60, subdivision 1; 61B.19, subdivision 3; 62A.04, subdivision 3; 62A.096; 62A.135, subdivision 5; 62A.50, subdivision 3; 65A.01, subdivision 3, and by adding a subdivision; 65A.27, subdivision 4; 65A.29, subdivision 4; 65B.133, subdivision 5; 65B.14, subdivision 5; 65B.44, subdivision 3; 65B.48, subdivision 5; 72A.20, subdivisions 23 and 34; 79A.01, subdivision 10, and by adding a subdivision; 79A.02, subdivisions 1 and 4; 79A.03, subdivisions 6, 7, 9, 10, and by adding a subdivision; and 79A.21, subdivision 2; Minnesota Statutes 1997 Supplement, section 72B.04, subdivision 10; Laws 1996, chapter 446, article 1, section 72; proposing coding for new law in Minnesota Statutes, chapters 60B; and 65B; repealing Minnesota Statutes 1996, sections 60A.11, subdivision 24a; 60B.36; 60B.44, subdivision 3; 65A.29, subdivision 12; and 79A.04, subdivision 8."

With the recommendation that when so amended the bill pass.

The report was adopted.

Kahn from the Committee on Governmental Operations to which was referred:

S. F. No. 1363, A bill for an act relating to economic development; creating a commission to examine and make recommendations on state subsidy programs and tax laws related to economic development.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. [STUDY.]

The legislative commission on planning and fiscal policy must study and report to the legislature on the policy arguments for and against using public funds to construct additional regional convention centers or improve existing regional convention centers in the state. The study must be done using existing legislative staff. The commission shall report to the legislature by January 15, 1999."

Delete the title and insert:

"A bill for an act relating to state government; requiring a study of use of public funds for regional convention centers."

With the recommendation that when so amended the bill pass and be re-referred to the Committee on Ways and Means.

Skoglund from the Committee on Judiciary to which was referred:

S. F. No. 1480, A bill for an act relating to evidence; fixing the conditions for the disclosure of certain information subject to the Minnesota Free Flow of Information Act; amending Minnesota Statutes 1996, sections 595.023; and 595.024, subdivision 2.

Reported the same back with the following amendments:

Page 1, line 11, before "No" insert "Except as provided in section 595.024,"

Page 2, line 8, after "misdemeanor" insert ", or to a misdemeanor violation, unless the specific information sought would tend to identify the person or means through which any information was obtained"

Page 2, line 9, strike "any"

Page 2, line 10, strike "remedy" and insert "remedies"

With the recommendation that when so amended the bill pass.

The report was adopted.

Skoglund from the Committee on Judiciary to which was referred:

S. F. No. 2040, A bill for an act relating to family law; modifying provisions dealing with the procedure for proceeding directly to hearing in the administrative process; modifying terminology to comport with the rules of court; amending Minnesota Statutes 1997 Supplement, sections 518.5511, subdivisions 1, 3, 3a, and 4; and 518.5512, subdivisions 2, 3, and 4; repealing Minnesota Statutes 1997 Supplement, section 518.5512, subdivision 3a.

Reported the same back with the recommendation that the bill pass.

The report was adopted.

Skoglund from the Committee on Judiciary to which was referred:

S. F. No. 2230, A bill for an act relating to human rights; modifying the definition of housing for the elderly; amending Minnesota Statutes 1996, section 363.02, subdivision 2.

Reported the same back with the recommendation that the bill pass.

The report was adopted.

Rest from the Committee on Local Government and Metropolitan Affairs to which was referred:

S. F. No. 2281, A bill for an act relating to Dakota county; clarifying the employment status of certain employees; amending Minnesota Statutes 1996, section 383D.41, by adding a subdivision.

Reported the same back with the recommendation that the bill pass.

Rest from the Committee on Local Government and Metropolitan Affairs to which was referred:

S. F. No. 2302, A bill for an act relating to local government; clarifying the conduct of certain county elections; amending Minnesota Statutes 1996, section 375A.12, subdivision 4.

Reported the same back with the recommendation that the bill pass and be placed on the Consent Calendar.

The report was adopted.

Kahn from the Committee on Governmental Operations to which was referred:

S. F. No. 2315, A bill for an act relating to technology; making technical changes to show director of office of technology as member of various organizations; amending Minnesota Statutes 1996, sections 62J.451, subdivision 9; and 116O.03, subdivision 2; Minnesota Statutes 1997 Supplement, section 44A.01, subdivision 2; and Laws 1995, First Special Session chapter 3, article 12, section 7, subdivision 1, as amended.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 1997 Supplement, section 44A.01, subdivision 2, is amended to read:

Subd. 2. [BOARD MEMBERSHIP.] The corporation is governed by a board of directors consisting of:

(1) four members, representing the international business community, elected to three-year terms by the association of members established under section 44A.023, subdivision 2, clause (5);

(2) four members, representing the international business community, appointed by the governor, to serve at the governor's pleasure;

(3) the mayor of St. Paul or the mayor's designee;

(4) the commissioners of trade and economic development, agriculture, and commerce; and

(5) the director of the office of technology; and

(6) three members of the house appointed by the speaker of the house and three members of the senate appointed under the rules of the senate, who serve as nonvoting members. One member from each house must be a member of the minority party of that house. Legislative members are appointed at the beginning of each regular session of the legislature for two-year terms. A legislator who remains a member of the body from which the legislator was appointed may serve until a successor is appointed and qualifies. A vacancy in a legislator member's term is filled for the unexpired portion of the term in the same manner as the original appointment.

Members appointed by the governor must be knowledgeable or experienced in international trade in products or services.

Sec. 2. Minnesota Statutes 1996, section 62J.451, subdivision 9, is amended to read:

Subd. 9. [BOARD OF DIRECTORS.] (a) The health data institute is governed by a 20-member 21-member board of directors consisting of the following 20 voting members:

(2) four representatives of health carriers, two appointed by the Minnesota council of health maintenance organizations, one appointed by Blue Cross and Blue Shield of Minnesota, and one appointed by the Insurance Federation of Minnesota;

(3) two consumer members, one appointed by the commissioner, and one appointed by the AFL-CIO as a labor union representative;

(4) five group purchaser representatives appointed by the Minnesota consortium of health care purchasers to reflect a mix of urban and rural, large and small, and self-insured purchasers;

(5) two physicians appointed by the Minnesota Medical Association, to reflect a mix of urban and rural practitioners;

(6) one representative of teaching and research institutions, appointed jointly by the Mayo Foundation and the Minnesota Association of Public Teaching Hospitals;

(7) one nursing representative appointed by the Minnesota Nurses Association; and

(8) three representatives of state agencies, one member representing the department of employee relations, one member representing the department of human services, and one member representing the department of health.

(b) In addition, the board consists of one nonvoting member, the director of the office of technology.

Sec. 3. Minnesota Statutes 1996, section 116O.03, subdivision 2, is amended to read:

Subd. 2. [BOARD OF DIRECTORS.] The corporation is governed by a board of 14 15 directors. The membership terms, compensation, removal, and filling of vacancies of public members of the board are as provided in section 15.0575. Membership of the board consists of the following:

(1) a person from the private sector, appointed by the governor, who shall act as chair and serve as chief science advisor to the governor and the legislature;

(2) the dean of the institute of technology of the University of Minnesota;

(3) the dean of the graduate school of the University of Minnesota;

(4) the commissioner of the department of trade and economic development;

(5) the director of the office of technology;

(6) six members appointed by the governor, at least one of whom must be a person from a public post-secondary system other than the University of Minnesota; and

(6) (7) one member who is not a member of the legislature appointed by each of the following: the speaker of the house of representatives, the house of representatives minority leader, the senate majority leader, and the senate minority leader.

At least 50 percent of the members described in clauses (5) (6) and (6) (7) must live outside the metropolitan area as defined in section 473.121, subdivision 2, and must have experience in manufacturing, the technology industry, or research and development.

Sec. 4. Laws 1995, First Special Session chapter 3, article 12, section 7, subdivision 1, as amended by Laws 1997, First Special Session chapter 4, article 9, section 2, is amended to read:

education services offices; one representative appointed by the private college council; eight representatives selected by the commissioner of children, families, and learning, at least one of which must come from each of the six higher education telecommunication regions; a representative from the director of the information policy office of technology; two members each from the senate and the house of representatives selected by the subcommittee on committees of the committee on rules and administration of the senate and the speaker of the house, one member from each body must be a member of the minority party; and three representatives of libraries, one representing regional public libraries, one representing multitype libraries, and one representing community libraries, selected by the governor. The council shall:

(1) develop a statewide vision and plans for the use of distance learning technologies and provide leadership in implementing the use of such technologies;

(2) recommend to the commissioner and the legislature by December 15, 1996, a plan for long-term governance and a proposed structure for statewide and regional telecommunications;

(3) recommend educational policy relating to telecommunications;

(4) determine priorities for use;

(5) oversee coordination of networks for post-secondary campuses, K-12 education, and regional and community libraries;

(6) review application for telecommunications access grants under Minnesota Statutes, section 124C.74, and recommend to the department grants for funding;

(7) determine priorities for grant funding proposals; and

(8) work with the information policy office of technology to ensure consistency of the operation of the learning network with standards of an open system architecture.

The council shall consult with representatives of the telecommunication industry in implementing this section.

Sec. 5. [EFFECTIVE DATE.]

Sections 1 to 4 are effective retroactively to July 1, 1997."

With the recommendation that when so amended the bill pass and be placed on the Consent Calendar.

The report was adopted.

Rest from the Committee on Local Government and Metropolitan Affairs to which was referred:

S. F. No. 2384, A bill for an act relating to Chisago county; permitting the appointment of the county recorder.

Reported the same back with the following amendments:

Page 1, line 10, after the period, insert "Before the county board may adopt a resolution under this section, the board must hold a public hearing on the proposal to appoint the county recorder."

Page 2, line 14, delete "at least ten percent of the registered" and insert "a number of voters equal to at least ten percent of those who voted in the county at the last general election"

Page 2, after line 18, insert:

"Sec. 5. [EASEMENTS TO RUSH CITY.]

(a) Notwithstanding Minnesota Statutes, section 16B.26, or any other law to the contrary, the commissioner of administration may grant to the city of Rush City an easement for airport building restriction and glide slope purposes over, under and across that part of the Southeast Quarter of the Southwest Quarter, the Southwest Quarter of the Southeast Quarter, and the Southeast Quarter of the Southeast Quarter of Section 10, Township 37 North, Range 21 West located in Chisago county, Minnesota, which lies within the following legally described area:

Beginning at the southwest corner of the South Half of the Southeast Quarter of Section 10, Township 37 North, Range 21 West; thence on an assumed bearing of South 87 degrees 36 minutes 18 seconds East along the south line of said South Half of the Southeast Quarter a distance of 249.38 feet; thence North 71 degrees 58 minutes 12 seconds East a distance of 2522.23 feet to the east line of said South Half of the Southeast Quarter; thence North 0 degrees 02 minutes 58 seconds West along said east line of the South Half of the Southeast Quarter a distance of 107.97 feet; thence South 71 degrees 58 minutes 12 seconds West a distance of 2837.39 feet to the south line of the Southeast Quarter of the Southwest Quarter of said Section 10; thence on a bearing of East a distance of 50.62 feet along the south line of said Southeast Quarter of the Southwest Quarter to the point of beginning.

Containing 274,945 square feet (6.312 acres) more or less.

(b) Notwithstanding Minnesota Statutes, section 16B.26, or any other law to the contrary, the commissioner of administration may grant to the city of Rush City an easement for drainage, utility, and elevated storage tank purposes over, under and across that part of the Southwest Quarter of the Southeast Quarter of Section 10, Township 37 North, Range 21 West, located in Chisago county, Minnesota, which lies within the following legally described area:

Commencing at the southwest corner of the Southwest Quarter of the Southeast Quarter of Section 10, Township 37 North, Range 21 West; thence on an assumed bearing of South 87 degrees 36 minutes 18 seconds East along the south line of said Southwest Quarter of the Southeast Quarter of Section 10, a distance of 747.64 feet; thence North 0 degrees 02 minutes 58 seconds West a distance of 1058.78 feet to the point of beginning; thence South 89 degrees 57 minutes 02 seconds West a distance of 55 feet; thence North 0 degrees 02 minutes 58 seconds West a distance of 90.00 feet; thence North 89 degrees 57 minutes 02 seconds East a distance of 110.00 feet; thence South 0 degrees 02 minutes 58 seconds East a distance of 90.00 feet; thence South 89 degrees 57 minutes 02 seconds West a distance of 55.00 feet to the point of beginning.

Containing 9,900 square feet (0.227 acres) more or less.

(c) Notwithstanding Minnesota Statutes, section 16B.26, or any other law to the contrary, the commissioner of administration may grant to the city of Rush City an easement for drainage and utility purposes over, under and across that part of the Southeast Quarter of the Southwest Quarter, and the Southwest Quarter of the Southeast Quarter of Section 10, Township 37 North, Range 21 West located in Chisago county, Minnesota, which lies within the following legally described area:

The East 70.00 feet of the South 100.00 feet of the Southeast Quarter of the Southwest Quarter of Section 10, Township 37 North, Range 21 West, and the West 45.00 feet of the South 100.00 feet of the Southwest Quarter of the Southeast Quarter of Section 10, Township 37 North, Range 21 West.

Containing 11,500 square feet (0.0264 acres) more or less."

Page 2, line 19, delete "5" and insert "6"

Amend the title as follows:

Page 1, line 3, before the period, insert "and the granting of certain easements to Rush City"

With the recommendation that when so amended the bill pass.

The report was adopted.

Rest from the Committee on Local Government and Metropolitan Affairs to which was referred:

S. F. No. 2525, A bill for an act relating to Ramsey county; authorizing the county to make certain purchases from or through a health care cooperative; proposing coding for new law in Minnesota Statutes, chapter 383A.

Reported the same back with the recommendation that the bill pass and be placed on the Consent Calendar.

The report was adopted.

Carlson from the Committee on Education to which was referred:

S. F. No. 2532, A bill for an act relating to children; clarifying certain terms and applicability of certain programs; providing for licensing assistance, outreach, and training; allowing grants for school-age child care programs; allowing certain grants for statewide adult basic education; changing child care licensing requirements for employers; providing for review of certain orders by the commissioner of children, families, and learning; establishing a cash flow account for energy assistance funds; allowing migrant and seasonal farmworkers to carry out community action programs; changing provisions for family day care licensure; appropriating money; amending Minnesota Statutes 1996, sections 119B.10, by adding a subdivision; 119B.13, subdivision 3; 119B.18, subdivision 2, and by adding subdivisions; 119B.19, subdivisions 1, 4, and by adding subdivisions; 120.1701, subdivision 5; 121.8355, by adding a subdivision; 124.26, subdivision 1c; 245A.14, subdivision 4; 256.045, subdivision 6, and by adding a subdivision; 268.52, subdivisions 1 and 2; and 268.54, subdivision 2; Minnesota Statutes 1997 Supplement, sections 119B.01, subdivision 16; 119B.061, subdivisions 1, 2, 3, and 4; 119B.075; 119B.10, subdivision 1; 119B.13, subdivision 6; 119B.21, subdivisions 2, 4, 5, and 11; 256.045, subdivision 7; 268.53, subdivision 5; and 466.01, subdivision 1; Laws 1997, chapters 162, article 1, section 18, subdivision 8; article 3, section 8, subdivision 3; and article 4, section 63, subdivisions 2 and 3; 248, section 47, subdivision 1; proposing coding for new law in Minnesota Statutes, chapters 119B; and 268.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

Section 1. Minnesota Statutes 1997 Supplement, section 119B.01, subdivision 16, is amended to read:

Sec. 2. Minnesota Statutes 1997 Supplement, section 119B.02, is amended to read:

119B.02 [DUTIES OF COMMISSIONER.]

Subdivision 1. [RESPONSIBILITY FOR CHILD CARE SERVICES.] The commissioner shall develop standards for county and human services boards to provide child care services to enable eligible families to participate in employment, training, or education programs. Within the limits of available appropriations, the commissioner shall distribute money to counties to reduce the costs of child care for eligible families. The commissioner shall adopt rules to govern the program in accordance with this section. The rules must establish a sliding schedule of fees for parents receiving child care services. The rules shall provide that funds received as a lump sum payment of child support arrearages shall not be counted as income to a family in the month received but shall be prorated over the 12 months following receipt and added to the family income during those months. In the rules adopted under this section, county and human services boards shall be authorized to establish policies for payment of child care spaces for absent children, when the payment is required by the child's regular provider. The rules shall not set a maximum number of days for which absence payments can be made, but instead shall direct the county agency to set limits and pay for absences according to the prevailing market practice in the county. County policies for payment of absences shall be subject to the approval of the commissioner. The commissioner shall maximize the use of federal money in section 256.736 and other programs that provide federal or state reimbursement for child care services for low-income families who are in education, training, job search, or other activities allowed under those programs. Money appropriated under this section must be coordinated with the programs that provide federal reimbursement for child care services to accomplish this purpose. Federal reimbursement obtained must be allocated to the county that spent money for child care that is federally reimbursable under programs that provide federal reimbursement for child care services. The counties shall use the federal money to expand child care services. The commissioner may adopt rules under chapter 14 to implement and coordinate federal program requirements.

Subd. 2. [SUPERVISION OF COUNTIES.] The commissioner shall supervise child care programs administered by the counties through standard-setting, technical assistance to the counties, approval of county plans and distribution of public money for services. The commissioner shall provide training and other support services to assist counties in planning for and implementing child care assistance programs. The commissioner shall establish minimum administrative and service standards for the provision of child care social services by county boards of commissioners, by the promulgation of a permanent administrative rule under chapter 14.

Sec. 3. Minnesota Statutes 1997 Supplement, section 119B.061, subdivision 1, is amended to read:

Subdivision 1. [ESTABLISHMENT.] Beginning July 1, 1998, a family receiving or eligible to in which a parent provides care for the family's infant child may receive a subsidy in lieu of assistance if the family is eligible for, or is receiving assistance under the basic sliding fee program is eligible for assistance for a parent to provide short-term child care for the family's infant child. An eligible family must meet the eligibility factors under section 119B.09, the income criteria under section 119B.12, and the requirements of this section. The commissioner shall establish a pool of up to seven percent of the annual appropriation for the basic sliding fee program to provide assistance under the at-home infant child care program. At the end of the fiscal year, any unspent funds must be used for assistance under the basic sliding fee program.

Sec. 4. Minnesota Statutes 1997 Supplement, section 119B.061, subdivision 2, is amended to read:

Subd. 2. [ELIGIBLE FAMILIES.] A family with an infant under the age of one year is eligible for assistance if:

(1) the family is not receiving MFIP-S, other cash assistance, or other child care assistance;

(2) the family has not previously received all of the one-year exemption from the work requirement for infant care under the MFIP-S program;

(3) the family has not previously received a life-long total of 12 months of assistance under this section; and

Sec. 5. Minnesota Statutes 1997 Supplement, section 119B.061, subdivision 3, is amended to read:

Subd. 3. [ELIGIBLE PARENT.] Only A family is eligible for assistance under this section if one parent, in a two-parent family, is eligible for assistance cares for the family's infant child. The eligible parent must:

(1) be over the age of 18;

(2) provide care for the infant full-time care for the child in the child's home; and

(3) provide child care for any other children in the family that who are eligible for child care assistance under chapter 119B.

Sec. 6. Minnesota Statutes 1997 Supplement, section 119B.061, subdivision 4, is amended to read:

Subd. 4. [ASSISTANCE.] (a) A family is limited to a lifetime total of 12 months of assistance under this section. The maximum rate of assistance must be at 75 percent of the rate established under section 119B.13 for care of infants in licensed family day care in the applicant's county of residence. Assistance must be calculated to reflect the copay requirement and the family's income level.

(b) A participating family must continue to report income and other family changes as specified in the county's plan under section 119B.08, subdivision 3. The family must treat any assistance received under this section as unearned income.

(c) Participation in the at-home infant child care program must be considered participation in the basic sliding fee program for purposes of continuing eligibility under section 119B.03, subdivision 3.

(d) The time that a family that receives assistance under this section is ineligible for must be deducted from the one-year exemption from work requirements under the MFIP-S program.

(e) Assistance under this section does not establish an employer-employee relationship between any member of the assisted family and the county or state.

Sec. 7. Minnesota Statutes 1997 Supplement, section 119B.10, subdivision 1, is amended to read:

Subdivision 1. [ASSISTANCE FOR PERSONS SEEKING AND RETAINING EMPLOYMENT.] (a) Persons who are seeking employment and who are eligible for assistance under this section are eligible to receive up to 240 hours of child care assistance per calendar year.

(b) Employed persons who work at least an average of 20 and full-time students who work at least an average of ten hours a week and receive at least a minimum wage for all hours worked are eligible for continued child care assistance for employment. Child care assistance during employment must be authorized as provided in paragraphs (c) and (d).

(c) When the caregiver works for an hourly wage and the hourly wage is equal to or greater than the applicable minimum wage, child care assistance shall be provided for the actual hours of employment, break, and mealtime during the employment and travel time up to two hours per day.

(d) When the caregiver does not work for an hourly wage, child care assistance must be provided for the lesser of:

(1) the amount of child care determined by dividing gross earned income by the applicable minimum wage, up to one hour every eight hours for meals and break time, plus up to two hours per day for travel time; or

Sec. 8. Minnesota Statutes 1996, section 119B.10, is amended by adding a subdivision to read:

Subd. 3. [SELF-EMPLOYMENT EXCEPTION.] For assistance under section 119B.03, a caregiver who has a business plan for self-employment is exempt for up to six months from the minimum wage requirements under subdivision 1, paragraph (d), clause (1). The caregiver must demonstrate that the business plan has been developed and reviewed by an organization that specializes in business assistance including, but not limited to, a community development corporation, a small business assistance center, or an organization affiliated with the Minnesota Micro Enterprise Association. The caregiver must meet all other eligibility requirements for assistance under the basic sliding fee program.

Sec. 9. Minnesota Statutes 1997 Supplement, section 119B.13, subdivision 1, is amended to read:

Subdivision 1. [SUBSIDY RESTRICTIONS.] Effective July 1, 1991, the maximum rate paid for child care assistance under the child care fund is the maximum rate eligible for federal reimbursement. The rate may not exceed the 75th percentile rate for like-care arrangements in the county as surveyed by the commissioner. A rate which includes a provider bonus paid under subdivision 2 or a special needs rate paid under subdivision 3 may be in excess of the maximum rate allowed under this subdivision. The department of children, families, and learning shall monitor the effect of this paragraph on provider rates. The county shall pay the provider's full charges for every child in care up to the maximum established. The commissioner shall determine the maximum rate for each type of care, including special needs and handicapped care. Not less than once every two years, the county shall evaluate rates market practices for payment of absent spaces absences and shall establish policies for payment of absent days that reflect current market practice.

When the provider charge is greater than the maximum provider rate allowed, the parent is responsible for payment of the difference in the rates in addition to any family copayment fee.

Sec. 10. Minnesota Statutes 1997 Supplement, section 119B.13, subdivision 6, is amended to read:

Subd. 6. [PROVIDER PAYMENTS.] Counties shall make vendor payments to the child care provider, or may pay the parent directly for eligible child care expenses if the county has established procedures and requires documentation to ensure that the payment is used for child care. A parent who receives a direct child care payment must provide the documentation, as required by the county, that the payment was used for eligible child care expenses. If payments for child care assistance are made to providers, the provider shall bill the county for services provided within ten days of the end of the month of service. If bills are submitted in accordance with the provisions of this subdivision, a county shall issue payment to the provider of child care under the child care fund within 30 days of receiving an invoice from the provider. Counties may establish policies that make payments on a more frequent basis. A county's payment policies must be included in the county's child care plan under section 119B.08, subdivision 3.

Sec. 11. Minnesota Statutes 1996, section 119B.18, subdivision 2, is amended to read:

Subd. 2. [DUTIES.] The regional resource and referral program shall have the duties specified in section 119B.19. In addition, the regional program shall be responsible for establishing new or collaborating with existing community-based committees such as interagency early intervention committees or neighborhood groups to advocate for child care needs in the community, including school-age care needs, as well as serve as important local resources for children and their families.

Sec. 12. Minnesota Statutes 1996, section 119B.18, is amended by adding a subdivision to read:

Subd. 4. [BUSINESS PRACTICES ASSISTANCE.] The regional resource and referral programs may provide technical assistance on sound business practices to start-up and established child care providers. The assistance may include business planning and effective business management practices for family child care providers, business-based providers, providers who offer care during nontraditional hours, and other child care facilities.

Sec. 13. Minnesota Statutes 1996, section 119B.18, is amended by adding a subdivision to read:

Sec. 14. Minnesota Statutes 1996, section 119B.18, is amended by adding a subdivision to read:

Subd. 6. [MULTICULTURAL OUTREACH.] The commissioner shall contract for or provide child care licensing information and child care application and selection information in all of the predominant non-English languages in Minnesota. The commissioner shall coordinate or contract for services to provide technical assistance and training to legally unlicensed child care providers in Minnesota's communities of color. The commissioner shall also coordinate or provide developmental training, business support and assist providers in becoming licensed.

Sec. 15. Minnesota Statutes 1996, section 119B.19, subdivision 1, is amended to read:

Subdivision 1. [AUTHORITY.] The commissioner of children, families, and learning may make grants to public or private nonprofit agencies for the planning, establishment, expansion, improvement, or operation of child care resource and referral programs and child care services, including school-age care programs, according to the provisions of this section and may make grants to county boards to carry out the purposes of sections 119B.19 to 119B.21.

Sec. 16. Minnesota Statutes 1996, section 119B.19, is amended by adding a subdivision to read:

Subd. 3a. [PROGRAM SERVICES; SCHOOL-AGE CARE.] The commissioner may make grants to public or private nonprofit entities to fund school-age care programs. School-age care programs shall meet the requirements of section 121.88, subdivision 10.

Sec. 17. Minnesota Statutes 1996, section 119B.19, subdivision 4, is amended to read:

Subd. 4. [GRANT REQUIREMENTS AND PRIORITY.] Priority for awarding resource and referral grants shall be given in the following order:

(1) start up resource and referral programs in areas of the state where they do not exist; and

(2) improve resource and referral programs.

Resource and referral programs shall meet the following requirements:

(a) Each program shall identify all existing child care services through information provided by all relevant public and private agencies in the areas of service, and shall develop a resource file of the services which shall be maintained and updated at least quarterly. These services must include family day care homes; public and private day care programs; full-time and part-time programs; infant, preschool, and extended care programs; and programs for school-age children.

The resource file must include: the type of program, hours of program service, ages of children served, fees, location of the program, eligibility requirements for enrollment, special needs services, and transportation available to the program. The file may also include program information and special program features.

(b) Each resource and referral program shall establish a referral process which responds to parental need for information and which fully recognizes confidentiality rights of parents. The referral process must afford parents maximum access to all referral information. This access must include telephone referral available for no less than 20 hours per week.

Each child care resource and referral agency shall publicize its services through popular media sources, agencies, employers, and other appropriate methods.

(c) Each resource and referral program shall maintain ongoing documentation of requests for service. All child care resource and referral agencies must maintain documentation of the number of calls and contacts to the child care information and referral agency or component. A resource and referral program shall collect and maintain the following information:

(1) ages of children served;

(3) special time category, such as nights, weekends, and swing shift; and

(4) reason that the child care is needed.

(d) Each resource and referral program shall make available the following information as an educational aid to parents:

(1) information on aspects of evaluating the quality and suitability of child care services, including licensing regulation, financial assistance available, child abuse reporting procedures, appropriate child development information;

(2) information on available parent, early childhood, and family education programs in the community.

(e) On or after one year of operation a resource and referral program shall provide technical assistance to employers and existing and potential providers of all types of child care services. This assistance shall include:

(1) information on all aspects of initiating new child care services including licensing, zoning, program and budget development, and assistance in finding information from other sources;

(2) information and resources which help existing child care providers to maximize their ability to serve the children and parents of their community;

(3) dissemination of information on current public issues affecting the local and state delivery of child care services;

(4) facilitation of communication between existing child care providers and child-related services in the community served;

(5) recruitment of licensed providers; and

(6) options, and the benefits available to employers utilizing the various options, to expand child care services to employees.

Services prescribed by this section must be designed to maximize parental choice in the selection of child care and to facilitate the maintenance and development of child care services and resources.

(f) Child care resource and referral information must be provided to all persons requesting services and to all types of child care providers and employers.

(g) Each resource and referral program shall coordinate early childhood training for child care providers in that program's service delivery area. The resource and referral program shall convene an early childhood care and education training advisory committee to assist in the following activities:

(1) assess the early childhood care and education training needs of child care center staff and family and group family child care providers, including both the needs related to early childhood development and to the development of school-age children;

(2) coordinate existing both early childhood and school-age care and education training;

(3) develop new early childhood and school-age care and education training opportunities; and

(4) publicize all early childhood and school-age training classes and workshops to child care center staff and family and group family child care providers in the service delivery area.

Sec. 18. Minnesota Statutes 1996, section 119B.19, is amended by adding a subdivision to read:

Subd. 4a. [GRANT REQUIREMENTS.] (a) Each school-age care program shall work with the resource and referral program in the geographic region to coordinate training for school-age care providers in that program's service delivery area.

(b) Public or private entities may apply to the commissioner for funding. A local match of up to 25 percent is required.

Sec. 19. Minnesota Statutes 1997 Supplement, section 119B.21, subdivision 2, is amended to read:

Subd. 2. [DISTRIBUTION OF FUNDS.] (a) The commissioner shall allocate grant money appropriated for child care service development among the development regions designated by the governor under section 462.385, considering the following factors for each economic development region:

(1) the number of children under 13 14 years of age needing child care in the service area;

(2) the geographic area served by the agency;

(3) the ratio of children under 13 14 years of age needing child care to the number of licensed spaces in the service area;

(4) the number of licensed child care providers and extended day school-age child care programs in the service area; and

(5) other related factors determined by the commissioner.

(b) Out of the amount allocated for each economic development region, the commissioner shall award grants based on the recommendation of the child care regional advisory committees. In addition, the commissioner shall award no more than 75 percent of the money either to child care facilities for the purpose of facility improvement or interim financing or to child care workers for staff training expenses.

(c) Any funds unobligated may be used by the commissioner to award grants to proposals that received funding recommendations by the regional advisory committees but were not awarded due to insufficient funds.

(d) The commissioner may allocate grants under this section for a two-year period and may carry forward funds from the first year as necessary.

Sec. 20. Minnesota Statutes 1997 Supplement, section 119B.21, subdivision 4, is amended to read:

Subd. 4. [DISTRIBUTION OF FUNDS FOR CHILD CARE RESOURCE AND REFERRAL PROGRAMS.] (a) The commissioner shall allocate funds appropriated for child care resource and referral services considering the following factors for each economic development region served by the child care resource and referral agency:

(1) the number of children under 13 14 years of age needing child care in the service area;

(2) the geographic area served by the agency;

(3) the ratio of children under 13 14 years of age needing care to the number of licensed spaces in the service area;

(4) the number of licensed child care providers and extended day school-age child care programs in the service area; and

(5) other related factors determined by the commissioner.

Sec. 21. Minnesota Statutes 1997 Supplement, section 119B.21, subdivision 5, is amended to read:

Subd. 5. [PURPOSES FOR WHICH A CHILD CARE SERVICES GRANT MAY BE AWARDED.] The commissioner may award grants for:

(1) child care service development grants for the following purposes:

(i) for creating new licensed day care facilities and expanding existing facilities, including, but not limited to, supplies, equipment, facility renovation, and remodeling;

(ii) for improving licensed day care facility programs, including, but not limited to, staff specialists, staff training, supplies, equipment, and facility renovation and remodeling;

(iii) for supportive child development services including, but not limited to, in-service training, curriculum development, consulting specialist, resource centers, and program and resource materials;

(iv) for carrying out programs including, but not limited to, staff, supplies, equipment, facility renovation, and training;

(v) for interim financing;

(vi) family child care technical assistance awards; and

(vii) for capacity building through the purchase of appropriate technology and software, and staff training to create, enhance, and maintain financial systems for facilities;

(2) child care resource and referral program services identified in section 119B.19, subdivision 3; or

(3) targeted recruitment initiatives to expand and build capacity of the child care system; or

(4) school-age care programs.

Sec. 22. Minnesota Statutes 1997 Supplement, section 119B.21, subdivision 11, is amended to read:

Subd. 11. [ADVISORY TASK FORCE.] The commissioner may convene a statewide advisory task force which shall advise the commissioner on grants or other child care issues. The following constituent groups must be represented: family child care providers, center providers, school-age care providers, parent users, health services, social services, Head Start, public schools, employers, and other citizens with demonstrated interest in child care issues. Each regional grant review committee formed under subdivision 3, shall appoint a representative to the advisory task force. Additional members may be appointed by the commissioner. The commissioner may convene meetings of the task force as needed. Terms of office and removal from office are governed by the appointing body. The commissioner may compensate members for their travel, child care, and child care provider substitute expenses for meetings of the task force.

Sec. 23. Minnesota Statutes 1996, section 120.1701, subdivision 5, is amended to read:

Subd. 5. [INTERAGENCY EARLY INTERVENTION COMMITTEES.] (a) A school district, group of districts, or special education cooperative, in cooperation with the health and human service agencies located in the county or counties in which the district or cooperative is located, shall establish an interagency early intervention committee for children with disabilities under age five and their families. Committees shall include representatives of local and regional health, education, and county human service agencies; county boards; school boards; early childhood family education programs; child care resource and referral programs; child care providers; parents of young children with disabilities under age 12; current service providers; and may also include representatives from other private or public agencies such as family service collaboratives. The committee shall elect a chair from among its members and shall meet at least quarterly.

(b) The committee shall develop and implement interagency policies and procedures concerning the following ongoing duties:

(2) implement interagency child find systems designed to actively seek out, identify, and refer infants and young children with, or at risk of, disabilities and their families;

(3) establish and evaluate the identification, referral, child and family assessment systems, procedural safeguard process, and community learning systems to recommend, where necessary, alterations and improvements;

(4) assure the development of individualized family service plans for all eligible infants and toddlers with disabilities from birth through age two, and their families, and individual education plans and individual service plans when necessary to appropriately serve children with disabilities, age three and older, and their families and recommend assignment of financial responsibilities to the appropriate agencies. Agencies are encouraged to develop individual family service plans for children with disabilities, age three and older;

(5) implement a process for assuring that services involve cooperating agencies at all steps leading to individualized programs;

(6) facilitate the development of a transitional plan if a service provider is not recommended to continue to provide services;

(7) identify the current services and funding being provided within the community for children with disabilities under age five and their families;

(8) develop a plan for the allocation and expenditure of additional state and federal early intervention funds under United States Code, title 20, section 1471 et seq., (Part H, Public Law Number 102-119) and United States Code, title 20, section 631, et seq., (Chapter I, Public Law Number 89-313); and

(9) develop a policy that is consistent with section 13.05, subdivision 9, and federal law to enable a member of an interagency early intervention committee to allow another member access to data classified as not public.; and

(10) identify the child care services available in the community for children with disabilities and facilitate a process for the integration and coordination of child care services with other services provided to children with disabilities.

(c) The local committee shall also:

(1) participate in needs assessments and program planning activities conducted by local social service, health and education agencies for young children with disabilities and their families;

(2) review and comment on the early intervention section of the total special education system for the district, the county social service plan, the section or sections of the community health services plan that address needs of and service activities targeted to children with special health care needs, and the section of the maternal and child health special project grants that address needs of and service activities targeted to children with chronic illness and disabilities; and

(3) prepare a yearly summary on the progress of the community in serving young children with disabilities, and their families, including the expenditure of funds, the identification of unmet service needs identified on the individual family services plan and other individualized plans, and local, state, and federal policies impeding the implementation of this section.

(d) The summary must be organized following a format prescribed by the commissioner of the state lead agency and must be submitted to each of the local agencies and to the state interagency coordinating council by October 1 of each year.

Sec. 24. Minnesota Statutes 1997 Supplement, section 121.88, subdivision 10, is amended to read:

Subd. 10. [EXTENDED DAY SCHOOL-AGE CARE PROGRAMS.] (a) A school board may offer, as part of a community education program, an extended day a school-age care program for children from kindergarten through grade 6 for the purpose of expanding students' learning opportunities. If the school board chooses not to offer a school-age care program, it may allow an appropriate insured community group, for profit entity or nonprofit organization to use available school facilities for the purpose of offering a school-age care program.

(b) A school-age care program must include the following:

(1) adult supervised programs while school is not in session;

(2) parental involvement in program design and direction;

(3) partnerships with the K-12 system, and other public, private, or nonprofit entities; and

(4) opportunities for trained secondary school pupils to work with younger children in a supervised setting as part of a community service program.; and

(5) access to available school facilities, including the gymnasium, sports equipment, computer labs, and media centers, when not otherwise in use as part of the operation of the school;

(b) (c) The district may charge a sliding fee based upon family income for extended day school-age care programs. The district may receive money from other public or private sources for the extended day school-age care program. The school board of the district shall develop standards for school- age child care programs. Districts with programs in operation before July 1, 1990, must adopt standards before October 1, 1991. All other districts must adopt standards Within one year after the district first offers services under a program authorized by this subdivision., the state board of education may not adopt rules for extended day school-age care programs.

(c) (d) The district shall maintain a separate account within the community services fund for all funds related to the extended day school-age care program.

(e) A district is encouraged to coordinate the school-age care program with its special education, vocational education, adult basic education, early childhood family education programs, K-12 instruction and curriculum services, youth development and youth service agencies, and with related services provided by other governmental agencies and nonprofit agencies.

Sec. 25. Minnesota Statutes 1996, section 245A.06, subdivision 2, is amended to read:

Subd. 2. [RECONSIDERATION OF CORRECTION ORDERS.] If the applicant or license holder believes that the contents of the commissioner's correction order are in error, the applicant or license holder may ask the department of human services to reconsider the parts of the correction order that are alleged to be in error. The commissioner's correction order given to the applicant or license holder must inform the applicant or license holder of the right to request reconsideration by the commissioner. The request for reconsideration must be in writing and received by the commissioner within 20 calendar days after receipt of the correction order by the applicant or license holder, and:

(1) specify the parts of the correction order that are alleged to be in error;

(2) explain why they are in error; and

(3) include documentation to support the allegation of error.

Sec. 26. Minnesota Statutes 1996, section 256.045, is amended by adding a subdivision to read:

Subd. 3c. [FINAL ORDER IN HEARING UNDER SECTION 119B.16.] The state human services referee shall recommend an order to the commissioner of children, families, and learning in an appeal under section 119B.16. The commissioner shall affirm, reverse, or modify the order. An order issued under this subdivision is conclusive on the parties unless an appeal is taken under subdivision 7.

Sec. 27. Minnesota Statutes 1996, section 256.045, subdivision 6, is amended to read:

Subd. 6. [ADDITIONAL POWERS OF THE COMMISSIONER; SUBPOENAS.] (a) The commissioner of human services, or the commissioner of health for matters within the commissioner's jurisdiction under subdivision 3b, or the commissioner of children, families, and learning for matters within the commissioner's jurisdiction under subdivision 3, may initiate a review of any action or decision of a county agency and direct that the matter be presented to a state human services referee for a hearing held under subdivision 3, 3a, 3b, or 4a. In all matters dealing with human services committed by law to the discretion of the county agency, the commissioner's judgment may be substituted for that of the county agency. The commissioner may order an independent examination when appropriate.

(b) Any party to a hearing held pursuant to subdivision 3, 3a, 3b, or 4a may request that the commissioner issue a subpoena to compel the attendance of witnesses at the hearing. The issuance, service, and enforcement of subpoenas under this subdivision is governed by section 357.22 and the Minnesota Rules of Civil Procedure.

(c) The commissioner may issue a temporary order staying a proposed demission by a residential facility licensed under chapter 245A while an appeal by a recipient under subdivision 3 is pending or for the period of time necessary for the county agency to implement the commissioner's order.

Sec. 28. Minnesota Statutes 1997 Supplement, section 256.045, subdivision 7, is amended to read:

Subd. 7. [JUDICIAL REVIEW.] Except for a prepaid health plan, any party who is aggrieved by an order of the commissioner of human services, or the commissioner of health in appeals within the commissioner's jurisdiction under subdivision 3b, or the commissioner of children, families, and learning in appeals within the commissioner's jurisdiction under subdivision 3, may appeal the order to the district court of the county responsible for furnishing assistance, or, in appeals under subdivision 3b, the county where the maltreatment occurred, by serving a written copy of a notice of appeal upon the commissioner and any adverse party of record within 30 days after the date the commissioner issued the order, the amended order, or order affirming the original order, and by filing the original notice and proof of service with the court administrator of the district court. Service may be made personally or by mail; service by mail is complete upon mailing; no filing fee shall be required by the court administrator in appeals taken pursuant to this subdivision, with the exception of appeals taken under subdivision 3b. The commissioner may elect to become a party to the proceedings in the district court. Except for appeals under subdivision 3b, any party may demand that the commissioner furnish all parties to the proceedings with a copy of the decision, and a transcript of any testimony, evidence, or other supporting papers from the hearing held before the human services referee, by serving a written demand upon the commissioner within 30 days after service of the notice of appeal. Any party aggrieved by the failure of an adverse party to obey an order issued by the commissioner under subdivision 5 may compel performance according to the order in the manner prescribed in sections 586.01 to 586.12.

Sec. 29. Laws 1997, chapter 162, article 4, section 63, subdivision 3, is amended to read:

Subd. 3. [TANF CHILD CARE.] For child care assistance according to Minnesota Statutes, section 119B.05:

$34,331,000 $22,468,000 . . . 1998

$64,838,000 $83,119,000 . . . 1999

Up to $500,000 of the fiscal year 1998 appropriation may be used for grants under section 23.

Sec. 30. [NONSTANDARD HOUR CHILD CARE PILOT PROJECT.]

The commissioner of children, families, and learning shall establish a program to develop family child care during nonstandard hours. The program may pay a guaranteed subsidy for up to one year of providing nonstandard hour child care in a family child care home. Any subsidy must be reduced by the amount of income the provider receives from nonstandard hour child care. The program must include start-up assistance for new nonstandard hour child care providers, including mentoring, technical assistance, marketing, and provider training. The program may also make start-up grants to participating nonstandard hour providers to purchase toys and equipment for nonstandard hour care. The commissioner may provide grants for developing nonstandard hour child care under this section.

Sec. 31. [INTERGENERATIONAL CARE.]

The commissioners of children, families, and learning and of human services shall encourage licensed nursing homes to establish licensed child care programs that emphasize intergenerational activities for seniors and young children.

Sec. 32. [FEASIBILITY OF PREPAID CHILD CARE ASSISTANCE.]

The commissioner of children, families, and learning must consider ways to ensure full payment to child care providers while maintaining fiscal accountability to county, state, and federal governments, including the feasibility of:

(1) providing prepayment of child care assistance to parents so that they may prepay child care expenses;

(2) standardizing county billing forms and billing cycles;

(3) improving and streamlining approval and reauthorization process; and

(4) allowing providers to use accrediting bodies other than N.A.E.Y.C. to qualify for the reimbursement bonus.

Sec. 33. [FEDERAL TANF TRANSFERS.]

Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND LEARNING.] The sums indicated in this section are transferred from the federal TANF fund to the child care and development fund and appropriated to the department of children, families, and learning for fiscal year 1999.

Subd. 2. [LOAN FORGIVENESS.] To provide funds to forgive all or part of child development education and training loans under Minnesota Statutes, section 119B.18, subdivision 3:

$ 300,000 . . . 1999

This is a one-time appropriation.

Subd. 3. [CHILD CARE BUSINESS PRACTICES ASSISTANCE.] For the regional resource and referral programs to provide business practices assistance to start-up and established child care facilities and family child care providers under Minnesota Statutes, section 119B.18, subdivision 4:

$ 300,000 . . . 1999

This is a one-time appropriation.

Subd. 4. [PRELICENSING ASSISTANCE.] For grants to resource and referral programs to provide prelicensing assistance under section 13:

$ 150,000 . . . 1999

Subd. 5. [CHILD CARE DEVELOPMENT.] For grants to public and private agencies to: (1) respond to locally determined needs to increase child care capacity including nonstandard hour care and care for specific groups of children; and (2) to collect, analyze and report data to support research to guide the development of child care and welfare reform policy:

$1,000,000 . . . 1999

Of this amount, up to $100,000 is for grants to develop nonstandard hour family child care under section 30.

This is a one-time appropriation.

Subd. 6. [CHILD CARE QUALITY IMPROVEMENT GRANTS.] For grants to public and private agencies to improve the quality of child care:

$1,100,000 . . . 1999

Grants may be made for the following purposes:

(1) research-based child development training for child care providers;

(2) assistance for providers to achieve accreditation;

(3) incentives for staff retention; and

(4) training for new providers with emphasis on care for children with special needs.

This is a one-time appropriation.

Subd. 7. [MULTICULTURAL CHILD CARE ASSISTANCE.] To provide assistance to child care providers in communities of color under section 14:

$ 150,000 . . 1999

This is a one-time appropriation.

Subd. 8. [SCHOOL-AGE COOPERATION GRANTS.] For grants to promote cooperation and coordination in school-age child care programs between school districts, community education, park boards, after school programs, and other entities and programs serving school-age children:

$ 500,000 . . . 1999

Of this amount up to $200,000 is for grants to start-up school-age child care programs and $150,000 is for grants to resource and referral programs to provide prelicensing technical assistance for child care facilities and family child care providers.

This is a one-time appropriation.

Subd. 9. [CHILD CARE DATA MANAGEMENT PROJECT.] For the design and implementation of a statewide child care data management system for child care assistance programs:

$1,500,000 . . . 1999

Sec. 34. [REVISOR'S INSTRUCTION.]

The revisor of statutes shall change the phrase "school-age child care" to "school-age care" wherever it appears in the next edition of Minnesota Statutes and Minnesota Rules.

Sec. 35. [REPEALER WITHOUT EFFECT.]

The repeal of Minnesota Statutes, section 119B.03, subdivision 7, by Laws 1997, chapter 162, article 1, section 19, is without effect and Minnesota Statutes, section 119B.03, subdivision 7, remains in effect after June 30, 1997, as amended by Laws 1997, chapter 162, article 4, section 14.

Sec. 36. [REPEALER.]

Minnesota Statutes 1997 Supplement, section 119B.075, is repealed.

Sec. 37. [EFFECTIVE DATE.]

Sections 29 and 36 are effective the day following final enactment.

Section 35 is effective July 1, 1997.

Section 1. [119C.01] [ESTABLISHMENT.]

The Minnesota family assets for independence initiative is established to provide incentives for low-income families to accrue assets for education, housing, and economic development purposes.

Sec. 2. [119C.02] [DEFINITIONS.]

Subdivision 1. [FAMILY ASSET ACCOUNT.] "Family asset account" means a savings account opened by a household participating in the Minnesota family assets for independence initiative.

Subd. 2. [COMMISSIONER.] "Commissioner" means the commissioner of children, families, and learning.

Subd. 3. [FIDUCIARY ORGANIZATION.] "Fiduciary organization" means:

(1) a community action agency that has obtained recognition under section 268.53;

(2) a community development credit union that:

(i) has a dual mission of promoting community development and providing high quality services to predominantly low-income people;

(ii) serves an investment area or targeted population;

(iii) provides development services in conjunction with equity investments or loans, directly or through a subsidiary or affiliate;

(v) is not an agency or instrumentality of the United States, or of the state or a political subdivision of the state; or

(3) a women-oriented economic development agency experienced in areas of micro-enterprise programs and job development issues that:

(i) is a 501 (c)(3) organization;

(ii) provides a broad range of services including business loans, training and technical assistance, assistance with personal finances, employment assessment, and training, placement and retention services;

(iii) serves low-income residents of at least eight Minnesota counties; and

(iv) is not an agency or instrumentality of the United States, the state of Minnesota or any of its political subdivisions.

Subd. 4. [ELIGIBLE EDUCATIONAL INSTITUTION.] "Eligible educational institution" means:

(1) an institution described in United States Code, title 20, section 1088(a)(1) or 1141(a); and

(2) an area vocational education school as defined in United States Code, title 20, section 2471(4)(C) or (D).

Subd. 5. [FINANCIAL INSTITUTION.] "Financial institution" means a bank, bank and trust, savings bank, savings association, or credit union, the deposits of which are insured by the Federal Deposit Insurance Corporation or the National Credit Union Administration.

Subd. 6. [POST-SECONDARY EDUCATIONAL EXPENSES.] "Post-secondary educational expenses" means:

(1) tuition and fees required for the enrollment or attendance of a student at an eligible educational institution; and

(2) fees, books, supplies, and equipment required for courses of instruction at an eligible educational institution.

Subd. 7. [QUALIFIED ACQUISITION COSTS.] "Qualified acquisition costs" means the costs of acquiring, constructing, or reconstructing a residence, including any usual or reasonable settlement, financing, or other closing costs.

Subd. 8. [QUALIFIED BUSINESS.] "Qualified business" means any business that does not contravene any law or public policy.

Subd. 9. [QUALIFIED BUSINESS CAPITALIZATION EXPENSES.] "Qualified business capitalization expenses" means qualified expenditures for the capitalization of a business pursuant to a qualified plan.

Subd. 10. [QUALIFIED EXPENDITURES.] "Qualified expenditures" means expenditures included in a qualified plan, including capital, plant, equipment, working capital, and inventory expenses.

Subd. 11. [QUALIFIED PLAN.] "Qualified plan" means a business plan that:

(1) is approved by a financial institution, or by a nonprofit loan fund or microenterprise program that has demonstrated fiduciary integrity;

(2) includes a description of services or goods to be sold, a marketing plan, and projected financial statements; and

(3) may require the participant to obtain the assistance of an experienced entrepreneurial adviser.

Subd. 13. [FEDERAL POVERTY LEVEL.] "Federal poverty level" means the poverty income guidelines published in the most recent calendar year by the United States Department of Health and Human Services.

Subd. 14. [HOUSEHOLD.] "Household" means all individuals who share use of a dwelling unit as primary quarters for living and eating separate from other individuals.

Sec. 3. [119C.03] [GRANTS APPLICATION.]

Subdivision 1. [GRANTS AWARDED.] The commissioner shall award grants to fiduciary organizations to provide family asset services under this chapter for up to four years.

The commissioner will apportion available state and federal grant funds among applicants in proportion to the size of the poverty level population in the agency's service area compared to the size of the poverty level population in the state. For fiduciary organizations which are not community action agencies under section 268.53, the commissioner will identify the organization's service population for purposes of apportioning grant funds.

Subd. 2. [APPLICATIONS.] A fiduciary organization may apply to the commissioner for a grant to provide family asset services. The application must be submitted in a form approved by the commissioner and must include:

(1) a proposal for the provision of family asset services, including program objectives, number of participating households, match rate, availability of adequate funding, appropriateness of the proposed services for the population to be served, and outreach activities;

(2) a proposed budget;

(3) a plan for collection of required data and the method to be used for program evaluation;

(4) evidence of the participation in the development of the application of any agency or governmental body that will provide services or assistance to the program; and

(5) any other information the commissioner may require.

Subd. 3. [DUTIES.] A fiduciary organization that receives a grant under this chapter shall:

(1) establish an account in which all funds provided to the organization for the purpose of the family assets for independence initiative are deposited;

(2) determine whether an applicant household is eligible to participate in the family assets for independence initiative;

(3) select, from eligible households, the households best suited to participate, with preference given to individuals residing within neighborhoods or communities that experience low rates of income or employment;

(4) develop, with the household, a family asset agreement;

(5) provide households with economic literacy education, including information on budgeting, use of credit, homeownership, and long-term financial planning;

(6) provide households with information on early childhood family education and if appropriate, include participation in ECFE classes as part of the family asset agreement;

(7) provide matching deposits for households selected to participate;

(9) establish a grievance committee and a procedure to hear, review, and decide in writing any grievance made by a household; and

(10) comply with all requirements of this chapter and of the commissioner related to administration of the grants.

Sec. 4. [119C.04] [HOUSEHOLD ELIGIBILITY; PARTICIPATION.]

Subdivision 1. [INITIAL ELIGIBILITY.] To be eligible for the family assets for independence initiative, the household's income must be below 200 percent of the federal poverty level and the household must have assets of $25,000 or less as determined by the asset eligibility requirements under the Minnesota plan for low-income household energy assistance. An individual who is a dependent of another person for federal income tax purposes may not be a separate eligible household for purposes of this chapter, but may be included in the household of the taxpayer who claims the individual as a dependent if they meet the definition of household in section 119C.02, subdivision 14. An individual may not participate in programs under this chapter if the individual is a debtor for a judgment resulting from nonpayment of a court-ordered child support obligation. In verifying income eligibility, the fiduciary organization shall apply procedures and policies consistent with procedures and policies used under the low-income home energy assistance program.

Subd. 2. [PARTICIPATION.] To participate in the family assets for independence initiative, a household must:

(1) be selected by a fiduciary organization;

(2) enter into a family asset agreement with a fiduciary organization; and

(3) open a savings account at a financial institution.

Subd. 3. [CONTINUED PARTICIPATION.] A household participating in the family asset for independence initiative may continue to make contributions to the savings account established under subdivision 5 as long as family income is below 250 percent of the federal poverty level. The amount of any contributions made during the time when a participating household's income is between 200 and 250 percent of the poverty level is not eligible for the match under section 119C.05.

Subd. 4. [FAMILY ASSET AGREEMENT; CONTENTS.] The fiduciary organization and the household must develop a family asset agreement for the household. The family asset agreement must include the amount of the household's regularly scheduled contribution to their savings account, the household's savings goal, and how the household will use savings and matching funds for one or more permissible uses. The household must agree to complete an economic literacy training program. A family asset agreement may be amended upon agreement by the household and the agency.

Subd. 5. [INDIVIDUAL CONTRIBUTIONS.] A household may only deposit money in a family asset account that is derived from earned income of members of the household and income from state and federal earned income credits of members of the household.

Sec. 5. [119C.05] [WITHDRAWAL; MATCHING; PERMISSIBLE USES.]

Subdivision 1. [WITHDRAWAL OF FUNDS.] To receive a match upon withdrawal of funds from a family asset account, a participant must make a request for withdrawal of funds and agree to transfer withdrawn funds to the fiduciary organization. The fiduciary organization must determine whether the request for withdrawal of funds is for a permissible use consistent with this section and the household's family asset agreement. A "permissible use" means using funds to pay for:

(1) post-secondary educational expenses;

(2) qualified home acquisition costs;

(3) qualified business capitalization expenses; or

Subd. 2. [MATCHING.] If the request for withdrawal is approved, a household's account will be matched at the time of withdrawal based on the balance in the household's account, including interest, at the time of withdrawal. Matches must be provided as follows:

(1) from the funds provided by the commissioner, a matching contribution of $2 for every $1 of funds withdrawn from the family asset account;

(2) from funds other than those provided by the commissioner, a matching contribution of no less than $2 for every $1 of funds withdrawn from the family asset account.

Subd. 3. [VENDOR PAYMENT OF WITHDRAWN FUNDS.] Upon receipt of withdrawn funds, the agency shall make a direct payment to the vendor of the goods or services being purchased by the household.

Sec. 6. [119C.07] [REPORTING; EVALUATION.]

Subdivision 1. [PROGRAM REPORTING.] Each fiduciary organization operating a family assets for independence initiative shall report annually to the commissioner of children, families, and learning the number of accounts, the amount of savings and matches for each account, the uses of the account, and the number of businesses, homes, and educational services paid for with money from the account, as well as other information that may be required for the state to operate the program effectively.

Subd. 2. [EVALUATION.] The commissioner shall conduct an evaluation of the family assets for independence initiative that analyzes the initiative's impact on savings rates, homeownership, level of education attained, and self-employment, and how such impacts vary among different populations and communities. The commissioner shall report to the legislature on the evaluation by January 15, 2003.

Sec. 7. [119C.08] [ECONOMIC LITERACY CURRICULUM.]

The fiduciary organization shall develop an economic literacy curriculum for use by agencies participating in the family assets for independence initiative.

Sec. 8. Minnesota Statutes 1996, section 124.26, subdivision 1c, is amended to read:

Subd. 1c. [PROGRAM APPROVAL.] (a) To receive aid under this section, a district, a consortium of districts, or a private nonprofit organization must submit an application by June 1 describing the program, on a form provided by the department. The program must be approved by the commissioner according to the following criteria:

(1) how the needs of different levels of learning will be met;

(2) for continuing programs, an evaluation of results;

(3) anticipated number and education level of participants;

(4) coordination with other resources and services;

(5) participation in a consortium, if any, and money available from other participants;

(6) management and program design;

(7) volunteer training and use of volunteers;

(8) staff development services;

(9) program sites and schedules; and

(b) The commissioner may grant adult basic education funds to a private, nonprofit organization to provide services that are not offered by a district or that are supplemental to a district's program. The A program provided under this provision must be approved and funded according to the same criteria used for district programs under paragraph (c).

(c) The commissioner may use up to two percent of the annual state appropriation for adult basic education for grants to nonprofit organizations to provide statewide support services, including but not limited to:

(1) training literacy volunteers;

(2) coordinating volunteer literacy programs in schools and other locations;

(3) operating a toll-free telephone referral service for adult students and volunteers; and

(4) promoting literacy awareness.

In making a grant under this paragraph, the commissioner shall consider an organization's prior experience and capacity to provide services throughout the state.

(d) Adult basic education programs may be approved under this subdivision for up to five years. Five-year program approval shall be granted to an applicant who has demonstrated the capacity to:

(1) offer comprehensive learning opportunities and support service choices appropriate for and accessible to adults at all basic skill need levels;

(2) provide a participatory and experiential learning approach based on the strengths, interests, and needs of each adult, that enables adults with basic skill needs to:

(i) identify, plan for, and evaluate their own progress toward achieving their defined educational and occupational goals;

(ii) master the basic academic reading, writing, and computational skills, as well as the problem-solving, decision making, interpersonal effectiveness, and other life and learning skills they need to function effectively in a changing society;

(iii) locate and be able to use the health, governmental, and social services and resources they need to improve their own and their families' lives; and

(iv) continue their education, if they desire, to at least the level of secondary school completion, with the ability to secure and benefit from continuing education that will enable them to become more employable, productive, and responsible citizens;

(3) plan, coordinate, and develop cooperative agreements with community resources to address the needs that the adults have for support services, such as transportation, flexible course scheduling, convenient class locations, and child care;

(4) collaborate with business, industry, labor unions, and employment-training agencies, as well as with family and occupational education providers, to arrange for resources and services through which adults can attain economic self-sufficiency;

(5) provide sensitive and well trained adult education personnel who participate in local, regional, and statewide adult basic education staff development events to master effective adult learning and teaching techniques;

(6) participate in regional adult basic education peer program reviews and evaluations; and

Sec. 9. Minnesota Statutes 1996, section 216B.241, subdivision 2a, is amended to read:

Subd. 2a. [ENERGY AND CONSERVATION ACCOUNT.] The commissioner shall deposit money contributed under subdivisions 1a and 1b in the energy and conservation account in the general fund. Money in the account is appropriated to the department for programs designed to meet the energy conservation needs of low-income persons and to make energy conservation improvements in areas not adequately served under subdivision 2. Interest on money in the account accrues to the account. Using information collected under section 216C.02, subdivision 1, paragraph (b), the commissioner shall, to the extent possible, allocate enough money to programs for low-income persons to assure that their needs are being adequately addressed. The commissioner shall request the commissioner of finance to transfer money from the account to the commissioner of economic security children, families, and learning for an energy conservation program for low-income persons. In establishing programs, the commissioner shall consult political subdivisions and nonprofit and community organizations, especially organizations engaged in providing energy and weatherization assistance to low-income persons. At least one program must address the need for energy conservation improvements in areas in which a high percentage of residents use fuel oil or propane to fuel their source of home heating. The commissioner may contract with a political subdivision, a nonprofit or community organization, a public utility, a municipality, or a cooperative electric association to implement its programs.

Sec. 10. Minnesota Statutes 1996, section 239.785, subdivision 6, is amended to read:

Subd. 6. [LIQUEFIED PETROLEUM GAS ACCOUNT.] A liquefied petroleum gas account in the special revenue fund is established in the state treasury. Fees and penalties collected under this section must be deposited in the state treasury and credited to the liquefied petroleum gas account. Money in that account, including interest earned, is appropriated to the commissioner of economic security children, families, and learning for programs to improve the energy efficiency of residential liquefied petroleum gas heating equipment in low-income households, and, when necessary, to provide weatherization services to the homes.

Sec. 11. [268.372] [DELIVERED FUEL CASH FLOW ACCOUNT.]

Subdivision 1. [ESTABLISHMENT.] There is established a cash flow account in the state treasury where the commissioner of finance may use general fund reserves. These reserves may only be used to meet cash demands of increasing energy assistance for low-income households who receive energy assistance through the federal energy assistance program. The commissioner of finance shall administer this account according to the provisions of section 16A.129. Money in the account from anticipated receivables is available to the commissioner of children, families, and learning for the biennium for the purposes in this section.

Subd. 2. [USES OF THE ACCOUNT.] The commissioner may advance money from the delivered fuel account to participating energy assistance delivery agencies to establish a voluntary preseason fuel purchase program. All money advanced from the account must be used for preseason fuel purchases or contracts.

Subd. 3. [DELIVERY AGENCY DUTIES.] Energy assistance delivery agencies may request advances from the account to obtain preseason delivered fuels through participating fuel vendors. The agencies must ensure that any money advanced from the account is used to benefit households that are eligible for the federal low-income energy assistance program. The energy assistance delivery agencies must recruit local fuel vendors to participate in the prepurchase program, negotiate fuel price and delivery terms, and coordinate services for low-income households. Nothing in this section requires fuel vendors to participate in a preseason purchase program.

Sec. 12. Laws 1997, chapter 162, article 3, section 8, subdivision 3, is amended to read:

Subd. 3. [TRANSITIONAL HOUSING PROGRAMS.] For transitional housing programs according to Minnesota Statutes, section 268.38:

$1,728,000 . . . 1998

$1,728,000 $2,041,000 . . . 1999

Any balance in the first year does not cancel but is available in the second year.

Of this appropriation, up to five percent each year may be used for administrative costs. A portion of this appropriation may be used for the emergency services grant program under section 7.

The base appropriation for fiscal year 2000 for the transitional housing program is equal to the fiscal year 1999 appropriation under this subdivision.

Sec. 13. Laws 1997, First Special Session chapter 4, article 10, section 3, subdivision 2, is amended to read:

Subd. 2. [DEPARTMENT.] For the department of children, families, and learning:

$24,360,000 . . . 1998

$23,978,000 . . . 1999

(a) Any balance in the first year does not cancel but is available in the second year.

(b) $21,000 each year is from the trunk highway fund.

(c) $622,000 in 1998 and $627,000 in 1999 is for the academic excellence foundation.

Up to $50,000 each year is contingent upon the match of $1 in the previous year from private sources consisting of either direct monetary contributions or in-kind contributions of related goods or services, for each $1 of the appropriation. The commissioner of children, families, and learning must certify receipt of the money or documentation for the private matching funds or in-kind contributions. The unencumbered balance from the amount actually appropriated from the contingent amount in 1998 does not cancel but is available in 1999. The amount carried forward must not be used to establish a larger annual base appropriation for later fiscal years.

(d) $207,000 in 1998 and $210,000 in 1999 is for the state board of education.

(e) $230,000 in 1998 and $234,000 in 1999 is for the board of teaching.

(f) The expenditures of federal grants and aids as shown in the biennial budget document and its supplements are approved and appropriated and shall be spent as indicated.

(g) The department of children, families, and learning shall develop a performance report on the quality of its programs and services. The report must be consistent with the process specified in Minnesota Statutes, sections 15.90 to 15.92. The goals, objectives, and measures of this report must be developed in cooperation with the chairs of the finance divisions of the education committees of the house of representatives and senate, the department of finance, and the office of legislative auditor. The report must include data to indicate the progress of the department in meeting its goals and objectives.

(i) Notwithstanding Minnesota Statutes, section 15.53, subdivision 2, the commissioner of children, families, and learning may contract with a school district for a period no longer than five consecutive years to work in the development or implementation of the graduation rule. The commissioner may contract for services and expertise as necessary. The contracts are not subject to Minnesota Statutes, sections 16B.06 to 16B.08.

(j) In preparing the department budget for fiscal years 2000-2001, the department shall shift all administrative funding from aids appropriations into the appropriation for the department.

(k) Reallocations of excesses under Minnesota Statutes, section 124.14, subdivision 7, from appropriations within this act shall only be made to deficiencies in programs with appropriations contained within this act.

(l) (k) $850,000 each year is for litigation costs and may only be used for those purposes. These appropriations are one-time only.

(m) (l) Collaborative efforts between the department of children, families, and learning and the office of technology, as specified in Minnesota Statutes, section 237A.015, include:

(1) advising the commissioner of children, families, and learning on new and emerging technologies, potential business partnerships, and technical standards;

(2) assisting the commissioner of children, families, and learning in the sharing of data between state agencies relative to children's programs; and

(3) as requested by the commissioner of children, families, and learning, assisting in collaborative efforts for joint prekindergarten through grade 12 and higher education projects, including the learning network.

The commissioner of children, families, and learning shall have final approval for prekindergarten through grade 12 programs and lifelong learning programs, grant awards, and funding decisions.

Sec. 14. Laws 1997, First Special Session chapter 5, section 29, is amended to read:

Sec. 29. [CORRECTION 45.] Laws 1997, chapter 162, article 2, section 31, subdivision 9, is amended to read:

Subd. 9. [DRUG POLICY AND VIOLENCE PREVENTION PROGRAMS.] For drug policy, violence prevention, and family visitation programs:

$3,000,000 . . . 1998

$3,000,000 . . . 1999

Any balance in the first year does not cancel but is available in the second year.

$197,000 $192,000 is appropriated from the state government special revenue fund to the commissioner of children, families, and learning for visitation facilities under Minnesota Statutes, sections 256F.09 and 517.08, subdivision 1c. $96,000 is available for the fiscal year beginning July 1, 1997, and $96,000 is available for the fiscal year beginning July 1, 1998.

Any balance in the first year does not cancel, but is available in the second year.

Up to $400,000 each year is for grants for mentoring at-risk youth. Of the fiscal year 1998 appropriation, up to $138,000 and of the fiscal year 1999 appropriation up to $100,000 is for grants under Laws 1995, chapter 226, article 3, section 62.

Sec. 15. [GANG PREVENTION AND INTERVENTION PROGRAM.]

Subdivision 1. [GANG PREVENTION AND INTERVENTION.] The commissioner of children, families, and learning shall develop and administer a gang prevention and intervention program to provide services (1) to young people who are at risk for criminal gang involvement; and (2) to young people who are interested in terminating their gang affiliation.

Subd. 2. [GRANT APPLICATION.] The department of children, families, and learning, in consultation with the department of public safety, department of corrections, office of drug policy and violence prevention, the criminal gang strike force, one or more representatives of community-based programs that have conducted research on street gang culture, and one or more individuals having direct experience in gang life, shall develop a grant application that specifies the eligibility criteria for receiving grants. A committee selected by this group also must evaluate applications for grants received by the commissioner of children, families, and learning and make recommendations to the commissioner of children, families, and learning on the awarding of grants.

Subd. 3. [ELIGIBILITY FOR GRANTS.] A local organization must meet the following criteria to be eligible for a grant under the program:

(1) it must be a private, nonprofit organization or local public agency; and

(2) it must offer and provide services to young people to prevent gang involvement or to intervene in and end gang involvement, including, but not limited to, after-school activities, educational opportunities, job skill development, community service, life skills, medical services, social services, and counseling.

Subd. 4. [ELIGIBILITY FOR SERVICES.] A person who is eligible for services must be at least seven years old and not more than 25 years old, at the time the person first receives services, unless the organization receiving a grant receives advance approval from the commissioner of children, families, and learning to provide services outside of this age range.

Sec. 16. [STATEWIDE COMMUNITY SERVICES INFORMATION AND REFERRAL GRANT PROGRAM.]

Subdivision 1. [FAMILY AND COMMUNITY SERVICES ASSISTANCE.] The commissioner of the department of children, families, and learning shall develop a grant program to fund a statewide system of information and referral for community services, through the nonprofit corporation First Call Minnesota. The system must be designed to assist Minnesota families in accessing needed community services, including health services, social services, educational programs, housing, and employment and training services.

Subd. 2. [GRANTEE'S DUTIES.] The grantee shall:

(1) develop a statewide computer database containing a comprehensive listing of community services available throughout Minnesota;

(2) support up to 11 regional centers to collect and coordinate regional data and develop standards to ensure that regional data is updated every six months;

(3) establish standards for existing regional information and referral services to access data, provide public access, and establish licensing standards;

(4) establish a state data services center to assist existing regional information and referral centers with data publication and subscription, administration of public access to the data, and management and maintenance of resource data;

(5) provide ongoing support for a single statewide toll-free phone number for public access;

(6) manage the installation of software applications and Internet access to the statewide computer database;

(8) coordinate with existing information and referral agencies in each region, including the senior linkage service through the Minnesota board on aging and child care resource and referral programs.

Subd. 3. [FUNDING.] The commissioner shall assist the grantee and other state agencies to identify federal funds to support the statewide system. The grantee shall seek contributions from profit and not-for-profit entities to augment state grant funds received under this section.

Subd. 4. [COUNTY COOPERATION.] In developing the information and referral system, the grantee shall coordinate with county social service agencies established under Minnesota Statutes, chapter 393, the Minnesota board on aging, and other public agencies that provide services.

Subd. 5. [EVALUATION AND REPORT.] The grantee shall arrange for an independent evaluation of the information and referral services developed under the grant. The grantee shall track requests for services from callers to determine unmet community service needs in each region. The grantee shall submit a report to the commissioner of children, families, and learning prior to February 15, 1999, with a preliminary evaluation of the information and referral system, a summary analysis of the unmet needs in each region, and recommendations on future funding needs of the information and referral system.

Sec. 17. [ACCESS TO EDUCATION TAX CREDITS.]

The department of children, families, and learning must explore a mechanism through which low income children, from families with incomes below 200 percent of the federal poverty guidelines can access funds to purchase supplies and resources allowed under the education tax credit in which funds for these purposes could be returned to the account after the household applies for and receives the education tax credit.

Sec. 18. [PROGRAM TRANSFER.]

The homeless youth facilities grants under Minnesota Statutes, section 268.918 are transferred from the department of economic security to the department of children, families, and learning. This grant program must be transferred according to the requirements of Minnesota Statutes, sections 119A.04, subdivisions 6 and 7; and 119A.15, subdivision 5a.

Sec. 19. [APPROPRIATION; ADMINISTRATION OF ABUSED CHILDREN PROGRAMS.]

Of the amount appropriated under Laws 1997, chapter 162, article 2, section 31, subdivision 8, up to $134,000 for fiscal year 1998 and up to $134,000 for fiscal year 1999 may be used for state costs to administer abused children programs under Minnesota Statutes, sections 119A.20 to 119A.23.

Sec. 20. [APPROPRIATION; ADMINISTRATION OF DRUG POLICY AND VIOLENCE PREVENTION PROGRAMS.]

Of the amount appropriated under Laws 1997, chapter 162, article 2, section 31, subdivision 9, up to $305,000 for fiscal year 1998 and up to $305,000 for fiscal year 1999 may be used for state costs to administer drug policy and violence prevention programs under Minnesota Statutes, sections 119A.25 to 119A.29 and 119A.32 to 119A.34.

Sec. 21. [APPROPRIATION; ADMINISTRATION OF THE CHILDREN'S TRUST FUND.]

Of the amount appropriated under Laws 1997, chapter 162, article 2, section 31, subdivision 10, up to $22,000 for fiscal year 1998 and up to $22,000 for fiscal year 1999 may be used for state costs to administer the children's trust fund under Minnesota Statutes, sections 119A.10 to 119A.17.

Of the amount in the special revenue account from fees under Minnesota Statutes, section 144.226, subdivision 3, up to $120,000 for fiscal year 1998 and $120,000 for fiscal year 1999 may be used for operating costs of the children's trust fund.

Sec. 22. [APPROPRIATION.]

Subd. 2. [EMERGENCY SERVICES GRANTS.] For emergency services grants under Laws 1997, chapter 162, article 3, section 7:

$ 313,000 . . . 1999

The base appropriation for fiscal year 2000 for emergency services grants is equal to the fiscal year 1999 appropriation under this subdivision.

Subd. 3. [FAMILY ASSETS FOR INDEPENDENCE.] To establish the Minnesota family assets for independence initiative under sections 1 to 7:

$ 875,000 . . . 1999

No more than five percent of the appropriation may be expended for the cost of administration of this program by the fiduciary organizations.

Subd. 4. [LEAD HAZARD REDUCTION PROGRAM.] For the lead abatement program under Minnesota Statutes, section 268.92:

$ 150,000 . . . 1999

This appropriation must be used for the swab team service program to provide lead clean-up and lead hazard reduction services in geographic areas where the residents have a high risk of elevated blood lead levels.

Of this appropriation, up to 25 percent is for a grant to the city of St. Louis Park to conduct lead testing and clean up in the residential neighborhoods contaminated by an industrial lead site. The remaining amount is for grants to nonprofit organizations that are operating lead hazard reduction projects.

Subd. 5. [CHILD GUIDE PREVENTION PROGRAM.] For a grant to the southwest and west central service cooperative to operate the child guide prevention program for children in kindergarten through grade six at additional regional sites established by the Minnesota service cooperatives:

$ 225,000 . . . 1999

The grantee may choose to operate one training site. This is a one-time appropriation.

Subd. 6. [GANG PREVENTION GRANT PROGRAM.] To develop a gang prevention and intervention grant program under section 15 to be administered in conjunction with the crime prevention grant program:

$ 225,000 . . . 1999

Subd. 7. [STATEWIDE COMMUNITY INFORMATION AND REFERRAL GRANT PROGRAM.] For a grant to First Call Minnesota to fund a statewide system of information and referral for community service under section 16:

$ 100,000 . . . 1999

Sec. 23. [EFFECTIVE DATE.]

Sections 11 and 18 to 21 are effective the day following final enactment."

Delete the title and insert:

a subdivision; 119B.18, subdivision 2, and by adding subdivisions; 119B.19, subdivisions 1, 4, and by adding subdivisions; 120.1701, subdivision 5; 124.26, subdivision 1c; 216B.241, subdivision 2a; 239.785, subdivision 6; 245A.06, subdivision 2; 256.045, subdivision 6, and by adding a subdivision; Minnesota Statutes 1997 Supplement, sections 119B.01, subdivision 16; 119B.02; 119B.061, subdivisions 1, 2, 3, and 4; 119B.10, subdivision 1; 119B.13, subdivisions 1 and 6; 119B.21, subdivisions 2, 4, 5, and 11; 121.88, subdivision 10; 256.045, subdivision 7; Laws 1997, chapter 162, articles 3, section 8, subdivision 3; and 4, section 63, subdivision 3; Laws 1997, First Special Session chapters 4, article 10, section 3, subdivision 2; and 5, section 29; proposing coding for new law in Minnesota Statutes, chapter 268; proposing coding for new law as Minnesota Statutes, chapter 119C; repealing Minnesota Statutes 1997 Supplement, section 119B.075."

With the recommendation that when so amended the bill pass and be re-referred to the Committee on Ways and Means.

The report was adopted.

Rest from the Committee on Local Government and Metropolitan Affairs to which was referred:

S. F. No. 2645, A bill for an act relating to metropolitan government; modifying requirement for affirmative action plans by certain contractors; amending Minnesota Statutes 1996, section 473.144.

Reported the same back with the recommendation that the bill pass.

The report was adopted.

Rest from the Committee on Local Government and Metropolitan Affairs to which was referred:

S. F. No. 2685, A bill for an act relating to local government; allowing an officer of a local governmental unit to contract with the unit in certain circumstances; amending Minnesota Statutes 1996, section 471.88, subdivision 12.

Reported the same back with the recommendation that the bill pass and be placed on the Consent Calendar.

The report was adopted.

Carlson from the Committee on Education to which was referred:

S. F. No. 3297, A bill for an act relating to appropriations; appropriating money for higher education and related purposes, with certain conditions; requiring a study; amending Minnesota Statutes 1996, section 136A.101, subdivision 7b; Minnesota Statutes 1997 Supplement, section 136A.121, subdivision 5; Laws 1996, chapter 366, section 6, as amended; Laws 1997, chapter 183, article 1, section 2, subdivisions 6, 9, and 13; and article 2, section 19.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. [HIGHER EDUCATION APPROPRIATIONS.]

1998 1999 TOTAL

Higher Education Services Office -0- $ 4,500,000 $ 4,500,000

Board of Trustees of the Minnesota State

Colleges and Universities -0- 39,000,000 39,000,000

Board of Regents of the University of

Minnesota -0- 38,500,000 38,500,000

APPROPRIATIONS

Available for the Year

Ending June 30

1998 1999

Sec. 2. HIGHER EDUCATION SERVICES OFFICE $ -0- $ 4,500,000

(a) State Grants

-0- 3,000,000

This appropriation is added to the appropriation in Laws 1997, chapter 183, article 1, section 2, subdivision 2, to increase the tuition maximum in the second year for private four-year institutions to $8,550.

(b) Work Study

-0- 1,500,000

This appropriation is added to the appropriation in Laws 1997, chapter 183, article 1, section 2, subdivision 4.

Sec. 3. MINNESOTA STATE COLLEGES AND

UNIVERSITIES (MnSCU)

$ -0- $ 39,000,000

(a) Enhancing Allocations

-0- 21,500,000

This appropriation is to reduce the funding variances per full year equivalent student among MnSCU institutions. Variances shall be addressed within categories of institutions of the same type. The allocation method used to address the variances may also take into account other contributing factors including, but not limited to, campus size, types and costs of programs, and instructional/program level.

(b) Libraries

-0- 3,000,000

This appropriation is for the acquisition of library materials and equipment necessary to further develop regional library centers at the state universities.

(c) Business and Industry Partnerships

-0- 11,500,000

This appropriation is for activities to enhance partnerships between colleges and business and industry. This appropriation includes $450,000 for equipment to upgrade the aviation maintenance programs at Minneapolis Community and Technical College, Northland Community Technical College, and Winona/Red Wing Technical College to support new industry and FAA requirements; and $200,000 to plan for a facility to support specialized needs of the new composite fiber and avionics training program planned at Lake Superior College. This appropriation is nonrecurring.

(d) Colleges of Education Curriculum Redesign and Technology

-0- 3,000,000

This appropriation is for colleges of education to redesign their curriculum, develop new programs, and improve the delivery of teacher preparation. The legislature intends that the universities link with their local school districts to ensure that the college of education faculty, district teachers, and students preparing to be future teachers are prepared for K-12 conditions and demands, including having technological skills necessary for the classroom and in implementing the graduation rule. This appropriation is nonrecurring.

Sec. 4. UNIVERSITY OF MINNESOTA -0- 38,500,000

(a) Faculty and Academic Initiatives

-0- 24,250,000

This appropriation is for strategic academic initiatives in digital technology, molecular and cellular biology, design, new media, and agricultural research and outreach, and for faculty and staff compensation.

(b) Law Clinics

This appropriation is for the law clinic programs in the law school. The appropriation must be used to increase the number of students and faculty who participate in the clinics, expand support services, and acquire supplies necessary to provide legal services to a greater number of Minnesota citizens with limited incomes.

(c) Facilities and Equipment

-0- 13,750,000

This appropriation is for classroom improvements and for developing facilities and equipment for faculty research. This appropriation is nonrecurring.

(d) Project Inform

-0- 250,000

This appropriation is to enhance and expand the work of Project Inform in providing outreach and information to K-12 students and their families, particularly in schools without counselors. This program shall be coordinated by the University, but shall be operated in conjunction with the Minnesota State Colleges and Universities. Private colleges are requested to participate. This appropriation is nonrecurring.

Sec. 5. POST-SECONDARY SYSTEMS

The board of trustees and the board of regents jointly shall evaluate the costs and benefits and need throughout the state for additional practitioner-oriented doctoral degree opportunities. The boards shall report their recommendations as part of their 2000-2001 biennial budget request.

Sec. 6. Minnesota Statutes 1997 Supplement, section 41D.03, subdivision 4, is amended to read:

Subd. 4. [EMPLOYEES.] (a) The council shall employ persons who shall serve in the unclassified service.

(b) The employees hired under this subdivision and any other necessary employees hired by the council shall be state employees in the executive branch of the University of Minnesota.

Sec. 7. Minnesota Statutes 1997 Supplement, section 136A.121, subdivision 5, is amended to read:

Subd. 5. [GRANT STIPENDS.] The grant stipend shall be based on a sharing of responsibility for covering the recognized cost of attendance by the applicant, the applicant's family, and the government. The amount of a financial stipend must not exceed a grant applicant's recognized cost of attendance, as defined in subdivision 6, after deducting the following:

(1) the assigned student responsibility of at least 50 percent of the cost of attending the institution of the applicant's choosing;

(3) the amount of a federal Pell grant award, calculated as if the maximum Pell grant were $2,700, for which the grant applicant is eligible.

The minimum financial stipend is $300 per academic year.

Sec. 8. Minnesota Statutes 1996, section 136F.46, subdivision 1, is amended to read:

Subdivision 1. [REQUEST; WARRANT.] The commissioner of finance, upon the written request of an employee of the board, may deduct from an employee's salary or wages the amount requested for payment to a nonprofit state college or university foundation meeting the requirements in subdivision 2. The commissioner shall issue a warrant for the deducted amount to the nonprofit foundation. The Penny fellowship and the Nellie Stone Johnson scholarship program of the Minnesota state university student association shall be considered a nonprofit state college and university foundation foundations for purposes of this section.

Sec. 9. [137.0241] [REGENT RESIDENCE.]

In electing regents, the legislature must reflect the distinctive parts of the state by maintaining geographical balance. To this end, at least five members of the board shall reside in the seven-county metropolitan area, and at least five members shall reside outside the seven-county metropolitan area.

Sec. 10. Minnesota Statutes 1996, section 137.0245, subdivision 2, is amended to read:

Subd. 2. [MEMBERSHIP.] The regent candidate advisory council shall consist of 24 15 members. Twelve Six members shall be appointed by the subcommittee on committees of the committee on rules and administration of the senate, four by the majority leader and two by the minority leader. Twelve Six members shall be appointed by the speaker of the house of representatives, four by the speaker and two by the minority leader. No more than one-third of the members appointed by each appointing authority may be current or former legislators. No more than two-thirds of the members appointed by each appointing authority may belong to the same political party; however, political activity or affiliation is not required for the appointment of any member Three members shall be appointed by the governor. Geographical representation must be taken into consideration when making appointments. Section 15.0575 shall govern the advisory council, except that the members shall be appointed to six-year terms with one-third appointed each even-numbered year.

Sec. 11. Minnesota Statutes 1996, section 137.0245, subdivision 4, is amended to read:

Subd. 4. [RECOMMENDATIONS.] The advisory council shall recommend at least two and not more than four candidates for each vacancy. By March 15 February 1 of each odd-numbered year, the advisory council shall submit its recommendations to the president of the senate and the speaker of the house of representatives. The governor is encouraged to endorse regent candidates and to communicate this endorsement to the house and senate education committees. The legislature shall not be bound by these recommendations.

Sec. 12. Laws 1996, chapter 366, section 6, as amended by Laws 1997, chapter 183, article 3, section 31, is amended to read:

Sec. 6. [MORATORIUM.]

Notwithstanding any law to the contrary, until June 30, 1998 1999, an educational institution that was licensed under Minnesota Statutes, chapter 141, on December 31, 1995, must continue to comply with the provisions of that chapter and may not use any of the exemptions available under Minnesota Statutes, section 141.35.

Sec. 13. [TRANSITION OF ADVISORY COUNCIL MEMBERS.]

The minority leaders shall each appoint one member to an initial two-year term and one member to an initial four-year term. The governor shall appoint one member to an initial two-year term, one member to an initial four-year term, and one member to an initial six-year term.

Sec. 14. [REPEALER.]

Minnesota Statutes 1996, sections 137.01; and 137.024 are repealed.

Sec. 15. [EFFECTIVE DATE.]

Sections 6, 9, 10, 11, and 13 are effective the day following final enactment."

Delete the title and insert:

"A bill for an act relating to appropriations; appropriating money for higher education and related purposes, with certain conditions; amending Minnesota Statutes 1996, sections 136F.46, subdivision 1; and 137.0245, subdivisions 2 and 4; Minnesota Statutes 1997 Supplement, sections 41D.03, subdivision 4; and 136A.121, subdivision 5; Laws 1996, chapter 366, section 6, as amended; proposing coding for new law in Minnesota Statutes, chapter 137; repealing Minnesota Statutes 1996, sections 137.01; and 137.024."

With the recommendation that when so amended the bill pass and be re-referred to the Committee on Ways and Means.

The report was adopted.

H. F. Nos. 1351, 1882, 2692, 2785, 2935, 2949, 2986, 3140, 3355, 3360, 3389, 3590 and 3734 were read for the second time.

S. F. Nos. 154, 330, 349, 1480, 2040, 2230, 2281, 2302, 2315, 2384, 2525, 2645 and 2685 were read for the second time.

The following House Files were introduced:

Jennings introduced:

H. F. No. 3779, A bill for an act relating to cemeteries; clarifying and reorganizing the law on cemeteries; amending Minnesota Statutes 1996, section 525.14; proposing coding for new law as Minnesota Statutes, chapter 306A; repealing Minnesota Statutes 1996, sections 306.01; 306.02; 306.023; 306.025; 306.027; 306.03; 306.04; 306.05; 306.06; 306.07; 306.08; 306.09; 306.10; 306.11; 306.111; 306.12; 306.13; 306.14; 306.141; 306.15; 306.16; 306.17; 306.18; 306.19; 306.20; 306.21; 306.22; 306.23; 306.24; 306.241; 306.242; 306.243; 306.245; 306.246; 306.25; 306.26; 306.27; 306.28; 306.29; 306.31; 306.32; 306.33; 306.34; 306.35; 306.36; 306.37; 306.38; 306.39; 306.40; 306.41; 306.42; 306.43; 306.44; 306.45; 306.46; 306.47; 306.48; 306.49; 306.50; 306.51; 306.52; 306.53; 306.54; 306.55; 306.56; 306.57; 306.58; 306.59; 306.60; 306.61; 306.62; 306.63; 306.64; 306.65; 306.66; 306.67; 306.68; 306.69; 306.70; 306.71; 306.72; 306.73; 306.74; 306.75; 306.76; 306.761; 306.762; 306.77; 306.773; 306.78; 306.79; 306.80; 306.81; 306.82; 306.83; 306.84; 306.85; 306.851; 306.86; 306.87; 306.88; 306.90; 306.93; 306.95; 306.97; and 306.99.

Anderson, I.; Solberg and Rukavina introduced:

H. F. No. 3780, A bill for an act relating to natural resources; modifying fees for cross-country ski pass; amending Minnesota Statutes 1996, section 85.42.

The bill was read for the first time and referred to the Committee on Environment, Natural Resources and Agriculture Finance.

Orfield, Rest and Abrams introduced:

H. F. No. 3781, A bill for an act relating to taxation; apportioning mortgage and deed registration taxes for property tax relief and other purposes; amending Minnesota Statutes 1996, sections 287.12; and 287.21, subdivision 2.

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

Kubly introduced:

H. F. No. 3782, A bill for an act relating to education; authorizing a grant for districts participating in the enhanced pairing program; appropriating money.

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

Seifert introduced:

H. F. No. 3783, A bill for an act relating to taxation; providing an income tax subtraction for personal and dependent exemptions; amending Minnesota Statutes 1997 Supplement, section 290.01, subdivision 19b.

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

Erhardt, Macklin, Sykora and Van Dellen introduced:

H. F. No. 3784, A bill for an act relating to taxation; updating estate taxes to changes in the Internal Revenue Code; amending Minnesota Statutes 1997 Supplement, section 291.005, subdivision 1.

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

Kinkel introduced:

H. F. No. 3785, A bill for an act relating to taxation; property; providing for tax exempt status of certain municipal-owned wastewater treatment facilities; amending Minnesota Statutes 1997 Supplement, section 272.02, subdivision 1.

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

Davids introduced:

H. F. No. 3786, A bill for an act relating to taxation; providing an income tax deduction for post-secondary tuition; amending Minnesota Statutes 1997 Supplement, section 290.01, subdivision 19b.

Stanek and Lindner introduced:

H. F. No. 3787, A bill for an act relating to highways; requiring commissioner of transportation to expand capacity on a segment of marked interstate highway 94.

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

Bettermann and Tingelstad introduced:

H. F. No. 3788, A bill for an act relating to health occupations; prohibiting health-related licensing boards from disciplining a regulated person based on a professional opinion; proposing coding for new law in Minnesota Statutes, chapter 214.

The bill was read for the first time and referred to the Committee on Health and Human Services.

Winter introduced:

H. F. No. 3789, A bill for an act relating to taxes; sales and use taxes; changing an effective date for the exemption for wind energy conversion systems; amending Laws 1997, chapter 231, article 7, section 47.

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

Rukavina, Bakk and Tomassoni introduced:

H. F. No. 3790, A bill for an act relating to local government; permitting Carlton and St. Louis counties to establish a special nursing home district.

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

Jennings and Wolf introduced:

H. F. No. 3791, A bill for an act relating to property taxation; exempting electric utility generation attached machinery; establishing a temporary in-lieu tax; establishing temporary surcharge; providing a state guarantee and appropriation for certain local bonds; amending Minnesota Statutes 1996, section 124A.24; Minnesota Statutes 1997 Supplement, sections 272.02, subdivision 1; and 273.13, subdivision 31; proposing coding for new law in Minnesota Statutes, chapters 216B; 275; and 475A.

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

The following messages were received from the Senate:

Mr. Speaker:

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

H. F. No. 2417, A resolution memorializing Congress to support the admission of Poland, the Czech Republic, and the Republic of Hungary to the North Atlantic Treaty Organization.

Patrick E. Flahaven, Secretary of the Senate

Mr. Speaker:

I hereby announce the passage by the Senate of the following Senate Files, herewith transmitted:

S. F. Nos. 2902, 2695, 2047 and 2192.

Patrick E. Flahaven, Secretary of the Senate

Mr. Speaker:

I hereby announce the passage by the Senate of the following Senate Files, herewith transmitted:

S. F. Nos. 2608, 2516, 2605, 2570, 2659 and 2266.

Patrick E. Flahaven, Secretary of the Senate

S. F. No. 2902, A bill for an act relating to criminal procedure; providing that an interpreter may be present when the grand jury is deliberating; amending Minnesota Statutes 1996, section 628.63.

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

S. F. No. 2695, A bill for an act relating to crime; clarifying repeat offender penalties for theft crimes; amending Minnesota Statutes 1997 Supplement, section 609.52, subdivision 3.

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

S. F. No. 2047, A bill for an act relating to commerce; regulating sales of manufactured homes; authorizing limited dealer's licenses in certain circumstances; amending Minnesota Statutes 1996, section 327B.04, by adding a subdivision.

The bill was read for the first time.

Kubly moved that S. F. No. 2047 and H. F. No. 3148, now on General Orders, be referred to the Chief Clerk for comparison. 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 first time.

S. F. No. 2608, A bill for an act relating to insurance; providing basic Medicare supplement plan coverage for diabetes equipment and supplies; increasing the maximum lifetime benefit for policies of the comprehensive health insurance plan; amending Minnesota Statutes 1996, section 62E.12; and Minnesota Statutes 1997 Supplement, section 62A.316.

The bill was read for the first time.

Dorn moved that S. F. No. 2608 and H. F. No. 3065, now on General Orders, be referred to the Chief Clerk for comparison. The motion prevailed.

S. F. No. 2516, A bill for an act relating to employee relations; modifying provisions on experimental or research projects in the department of employee relations; amending Minnesota Statutes 1997 Supplement, section 43A.04, subdivision 9.

The bill was read for the first time.

Jefferson moved that S. F. No. 2516 and H. F. No. 2777, now on General Orders, be referred to the Chief Clerk for comparison. The motion prevailed.

S. F. No. 2605, A bill for an act relating to health; authorizing the governor to enter into an agreement with the United States Nuclear Regulatory Commission.

The bill was read for the first time and referred to the Committee on Health and Human Services.

S. F. No. 2570, A bill for an act relating to taxation; making technical changes to income, franchise, sales, excise, property, healthcare provider, and gambling taxes; making technical changes to tax administrative provisions; requiring mandate explanations be attached to legislative bills before committee hearings; amending Minnesota Statutes 1996, sections 270.06; 270.069, subdivision 1; 270.70, subdivision 15; 278.10; 289A.42, subdivision 2; 289A.65, subdivisions 7 and 8; 297E.15, subdivisions 8 and 9; Minnesota Statutes 1997 Supplement, sections 3.987, subdivision 2; 270.701, subdivision 2; 289A.09, subdivision 2; 289A.20, subdivision 2; 289A.38, subdivision 7; 290.0673, subdivisions 4, 5, and 7; 290.92, subdivision 30; 295.53, subdivision 4a; 297A.01, subdivisions 3 and 11; 297F.22, subdivisions 6 and 7; and 297G.21, subdivisions 6 and 7.

The bill was read for the first time.

Olson, E., moved that S. F. No. 2570 and H. F. No. 2659, now on General Orders, be referred to the Chief Clerk for comparison. The motion prevailed.

S. F. No. 2659, A bill for an act relating to insurance; regulating life insurance company investments and financial transactions; regulating qualified long-term care policies; modifying the definition of chronically ill individual; amending Minnesota Statutes 1996, section 61A.28, subdivisions 6, 9a, and 12; Minnesota Statutes 1997 Supplement, section 62S.01, subdivision 8.

The bill was read for the first time.

Wenzel moved that S. F. No. 2659 and H. F. No. 3432, now on General Orders, be referred to the Chief Clerk for comparison. The motion prevailed.

296.16, subdivisions 1a and 2; 296.165; 296.17, subdivisions 1, 3, 5, 6, 7, 8, 9, 10, 11, 14, 15, 16, 17, 19, 20, 21, and 22; 296.171, subdivisions 1, 2, 3, 5, 6, 7, 8, 9, and 10; 296.18, subdivisions 2, 3, 4, 5, 6, and 8; 296.19; 296.20; 296.21; 296.23; 296.25; 296.26; 296.27; and 296.421; Minnesota Statutes 1997 Supplement, sections 296.141, subdivision 4; 296.16, subdivision 1; 296.17, subdivision 18; 296.171, subdivision 4; and 296.18, subdivision 1.

The bill was read for the first time.

Johnson, A., moved that S. F. No. 2266 and H. F. No. 2523, now on General Orders, be referred to the Chief Clerk for comparison. 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.

There being no objection, the order of business reverted to Reports of Standing Committees.

Wagenius from the Committee on Transportation and Transit to which was referred:

H. F. No. 3057, A bill for an act relating to transportation; redefining road or highway; imposing requirements and restrictions on transportation expenditures from the trunk highway fund and general fund; establishing spending goals for transportation; requiring expenditures for operations of the state patrol to be from the general fund; specifying compensation to be included in prevailing wage rate; providing for periodic adjustments in motor fuel tax rate; authorizing issuance of bonds for local bridge replacement and reconstruction; appropriating money; amending Minnesota Statutes 1996, sections 160.02, subdivision 7, and by adding a subdivision; 161.04, by adding a subdivision; 174.01, by adding a subdivision; 174.02, by adding a subdivision; 177.42, subdivision 6; 299D.01, by adding a subdivision; and 299D.03, subdivision 5.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

Section 1. [TRANSPORTATION AND OTHER AGENCIES; APPROPRIATIONS.]

1998 1999

General Fund $ -0- $ 344,000

Trunk Highway Fund 200,000 52,297,000

Highway User Tax Distribution Fund -0- 50,000

APPROPRIATIONS

Available for the Year

Ending June 30

1998 1999

Sec. 2. DEPARTMENT OF PUBLIC SAFETY $ 200,000 $ 5,830,000

General -0- 294,000

Trunk Highway 200,000 5,486,000

Highway User Tax -0- 50,000

Distribution Fund

(a) State Patrol

General -0- 294,000

Trunk Highway -0- 5,251,000

These appropriations are added to the appropriation in Laws 1997, chapter 159, article 1, section 4, subdivision 3.

$294,000 from the general fund for fiscal year 1999 is for additional capitol complex security staff and for additional state patrol flight time to enhance law enforcement efforts through airborne enforcement.

$4,557,000 from the trunk highway fund for fiscal year 1999 is for 40 additional state troopers and related support staff.

$694,000 from the trunk highway fund for fiscal year 1999 is for equipment to replace and maintain the statewide emergency communications system infrastructure of the patrol.

(b) Driver and Vehicle Services

200,000 285,000

Trunk Highway 200,000 235,000

Highway User Tax

$200,000 for fiscal year 1998 and $235,000 for fiscal year 1999 are added to the appropriations in Laws 1997, chapter 159, article 1, section 4, subdivision 4, for driver's license and identification card cost increases. This appropriation is from the trunk highway fund.

$50,000 for fiscal year 1999 is for the vehicle registration and uninsured motorist study under section 6. This appropriation is from the highway user tax distribution fund.

Sec. 3. DEPARTMENT OF TRANSPORTATION -0- 46,861,000

General -0- 50,000

Trunk Highway -0- 46,811,000

(a) State Road Construction

-0- 40,000,000

$40,000,000 is appropriated from the trunk highway fund for state road construction in fiscal year 1999 and is added to the appropriation in Laws 1997, chapter 159, article 1, section 2, subdivision 7, clause (a).

(b) Design Engineering and Construction Engineering

-0- 6,800,000

$6,800,000 is appropriated in fiscal year 1999 from the trunk highway fund for design engineering and construction engineering and is added to the appropriations in Laws 1997, chapter 159, article 1, section 2, subdivision 7, clauses (d) and (e), as needed.

(c) Aeronautics

-0- 61,000

General -0- 50,000

Trunk Highway -0- 11,000

$50,000 from the general fund and $11,000 from the trunk highway fund for fiscal year 1999 are appropriated for transfer to the state airports fund to reimburse the fund for air transportation services.

Sec. 4. [STUDY; BLUE LIGHTS ON EMERGENCY VEHICLES.]

(a) The commissioner of public safety shall study the feasibility and desirability of allowing emergency vehicles to display blue lights to the front and rear of the vehicle, and of prohibiting any other type of vehicle from displaying blue lights. The study must include:

(2) the safety implications of various lighting configurations for emergency vehicles and road maintenance equipment; and

(3) the cost to the department of transportation and local road authorities of discontinuing the use of blue lights on road maintenance equipment.

(b) The commissioner shall report to the governor and legislature on the results of the study not later than January 15, 1999.

Sec. 5. [DEALER LICENSING AND MOTOR VEHICLE REGISTRATION ENFORCEMENT TASK FORCE.]

Subdivision 1. [ESTABLISHED IN DEPARTMENT OF PUBLIC SAFETY.] The dealer licensing and motor vehicle registration enforcement task force is established in the department of public safety. In consultation with the chief of the state patrol, the commissioner of public safety shall designate four members of the patrol to carry out the investigatory responsibilities of the task force. The commissioner shall provide the task force with necessary staff and equipment support.

Subd. 2. [INVESTIGATIONS.] The task force shall investigate activity by persons engaged in the sale and registration of motor vehicles in violation of Minnesota law, specifically Minnesota Statutes, sections 168.27; 168A.30; 297B.035, subdivision 3; and 325F.664 to 325F.6643.

Sec. 6. [VEHICLE REGISTRATION AND INSURANCE STUDY.]

Subdivision 1. [PURPOSE OF STUDY.] The commissioner of public safety, in conjunction with the dealer licensing and motor vehicle registration enforcement task force, and with representatives of the insurance industry, shall conduct a study to determine:

(1) the incidence of private passenger vehicles domiciled in this state but registered in other states in violation of Minnesota vehicle registration laws; and

(2) the number of uninsured motorists in this state.

Subd. 2. [STUDY ELEMENTS.] The study must include an evaluation of the cost effectiveness and feasibility of:

(1) exchanging tax, vehicle registration, and driver's license information with other states;

(2) utilizing a private vendor computer database to enforce the state's vehicle registration and mandatory automobile insurance laws; and

(3) ensuring that vehicles domiciled in this state are registered in this state.

Subd. 3. [REPORT.] The commissioner shall report to the governor and legislature by February 15, 1999.

Sec. 7. Minnesota Statutes 1996, section 169.733, subdivision 1, is amended to read:

Subdivision 1. [VEHICLES GENERALLY.] Every truck, truck-tractor, trailer, semitrailer, pole trailer, and rear-end dump truck, excepting rear-end dump farm trucks and military vehicles of the United States, shall be provided with wheel flaps or other suitable protection above and behind the rearmost wheels of the vehicle or combination of vehicles to prevent, as far as practicable, such wheels from throwing dirt, water, or other materials on the windshields of vehicles which follow. Such flaps or protectors shall be at least as wide as the tires they are protecting and shall have a ground clearance of not more than one-fifth of the horizontal distance from the center of the rearmost axle to the flap under any conditions of loading or operation of the motor vehicle.

Sec. 8. Minnesota Statutes 1996, section 169.825, subdivision 8, is amended to read:

Subd. 8. [PNEUMATIC-TIRED VEHICLES.] No vehicle or combination of vehicles equipped with pneumatic tires shall be operated upon the highways of this state:

(b) Where the gross weight on any single axle exceeds 18,000 pounds, except that on designated local routes and state trunk highways the gross weight on any single axle shall not exceed 20,000 pounds;

(c) Where the maximum wheel load:

(1) on the foremost and rearmost steering axles, exceeds 600 pounds per inch of tire width or the manufacturer's recommended load, whichever is less; or

(2) on other axles, exceeds 500 pounds per inch of tire width or the manufacturer's recommended load, whichever is less;

Clause (2) applies to new vehicles manufactured after August 1, 1991. For vehicles manufactured before August 2, 1991, the maximum weight per inch of tire width is 600 pounds per inch or the manufacturer's recommended load, whichever is less, until August 1, 1996. After July 31, 1996, clause (2) applies to all vehicles regardless of date of manufacture.

(d) Where the gross weight on any axle of a tridem exceeds 15,000 pounds, except that for vehicles to which an additional axle has been added prior to June 1, 1981, the maximum gross weight on any axle of a tridem may be up to 16,000 pounds provided the gross weight of the tridem combination does not exceed 39,900 pounds where the first and third axles of the tridem are spaced nine feet apart.

(e) Where the gross weight on any group of axles exceeds the weights permitted under this section with any or all of the interior axles disregarded, and with an exterior axle disregarded if the exterior axle is a variable load axle that is not carrying its intended weight, and their gross weights subtracted from the gross weight of all axles of the group under consideration.

Sec. 9. Minnesota Statutes 1996, section 360.024, is amended to read:

360.024 [AIR TRANSPORTATION SERVICES, COST REIMBURSEMENT SERVICE CHARGES.]

The commissioner shall charge users of air transportation services provided by the commissioner for all direct operating costs, including salaries and acquisition of excluding pilot salary and aircraft acquisition costs. All receipts for these services shall be deposited in the air transportation services account in the state airports fund and are appropriated to the commissioner to pay all these direct air service operating costs , including salaries. Receipts to cover the cost of acquisition of aircraft must be transferred and credited to the account or fund whose assets were used for the acquisition.

Sec. 10. Minnesota Statutes 1996, section 360.653, is amended to read:

360.653 [AIRCRAFT, EXEMPTIONS.]

The following aircraft, under the conditions specified, shall be exempt from the registration and the tax provided by sections 360.511 to 360.67.

(1) Any aircraft held by a dealer listed and used as provided in section 360.63, except that aircraft held by dealers on October 1, of each year, shall be registered and the entire tax provided by sections 360.511 to 360.67 shall be paid for the portion of the fiscal year, prorated on a monthly basis remaining after the aircraft came into the possession of the dealer. It is further provided that a dealer who has previously had aircraft on withholding may register such aircraft in September of each fiscal year by payment of an amount equal to one-third of the annual tax, which tax shall be applicable for the months of September through December and in January the dealer may again list these aircraft on the dealer's withholding form.

(2) Aircraft remaining in the possession of aircraft manufacturers ten months after completion shall become subject to the tax provided by sections 360.511 to 360.67. The tax shall be computed from the expiration of the ten months period and shall be prorated on a monthly basis.

(3) Aircraft while in the hands of aircraft refitters for the purpose of being refitted or modified or both, and while being refitted or modified or both.

Sec. 11. Laws 1997, chapter 159, article 1, section 2, subdivision 2, is amended to read:

Subd. 2. Aeronautics 18,296,000 17,958,000

Airports 17,896,000 17,958,000

General 400,000 -0-

The amounts that may be spent from this appropriation for each activity are as follows:

(a) Airport Development and Assistance

1998 1999

12,948,000 12,948,000

$12,846,000 the first year and $12,846,000 the second year are for navigational aids, construction grants, and maintenance grants. If the appropriation for either year is insufficient, the appropriation for the other year is available for it.

These appropriations must be spent in accordance with Minnesota Statutes, section 360.305, subdivision 4.

$12,000 the first year and $12,000 the second year are for maintenance of the Pine Creek Airport.

$90,000 the first year and $90,000 the second year are for air service grants. If the appropriation for either year is insufficient the appropriation for the other year is available.

(b) Aviation Support

4,880,000 4,941,000

$65,000 the first year and $65,000 the second year are for the civil air patrol.

$200,000 the first year and $200,000 the second year are for the air service marketing program under Minnesota Statutes, section 360.0151.

(c) Air Transportation Services

468,000 69,000

Airports 68,000 69,000

General 400,000 -0-

$400,000 the first year is from the general fund for refurbishing a federal surplus jet airplane for state ownership and use.

Sec. 12. [EFFECTIVE DATE.]

Section 1. Minnesota Statutes 1996, section 160.02, subdivision 7, is amended to read:

Subd. 7. [ROAD OR HIGHWAY.] "Road" or "highway" means a corridor used primarily for the transportation of persons or goods and includes, unless otherwise specified, the several kinds of highways as defined in this section, including roads designated as minimum-maintenance roads, and also cartways, together with all bridges or other structures thereon which form a part of the same.

Sec. 2. Minnesota Statutes 1996, section 160.02, is amended by adding a subdivision to read:

Subd. 7a. [HIGHWAY PURPOSE.] "Highway purpose" means a purpose that is substantially related to the establishment, preservation, construction, reconstruction, maintenance, or administration of a road or highway.

Sec. 3. Minnesota Statutes 1996, section 161.04, is amended by adding a subdivision to read:

Subd. 4. [EXPENDITURES FROM FUND.] Not less than 60 percent of total expenditures in any fiscal year from the trunk highway fund must be for the preservation, construction and reconstruction of trunk highways, including engineering and right-of-way acquisition.

Sec. 4. Minnesota Statutes 1996, section 174.01, is amended by adding a subdivision to read:

Subd. 3. [TRANSPORTATION SPENDING GOALS.] The following transportation spending goals are established:

(1) total spending per fiscal year from the trunk highway fund for construction and reconstruction of state trunk highways, not less than $500,000,000 by fiscal year 2002;

(2) total state spending per fiscal year on public transit outside the seven-county metropolitan area, not less than $15,000,000 for capital improvements and $17,000,000 for operating assistance by fiscal year 1999; and

(3) total state spending per fiscal year on public transit in the seven-county metropolitan area, not less than $32,000,000 for capital improvements and $60,000,000 for operating assistance by fiscal year 1999.

Sec. 5. Minnesota Statutes 1996, section 174.02, is amended by adding a subdivision to read:

Subd. 7. [RECOMMENDED APPROPRIATIONS FROM GENERAL FUND.] The commissioner of transportation shall include in each biennial budget submitted to the legislature a plan, developed by area transportation partnerships, of recommended expenditures from the general fund for trunk highway purposes and public transit purposes. For purposes of this subdivision only, "trunk highway purposes" means (1) acquiring new trunk highway corridors, (2) substantially expanding existing trunk highway corridors by adding traffic capacity, or (3) substantially expanding traffic capacity on existing trunk highway corridors.

Sec. 6. Minnesota Statutes 1996, section 299D.01, is amended by adding a subdivision to read:

Subd. 9. [APPROPRIATIONS.] Appropriations for the operations of the state patrol, other than commercial motor vehicle inspection and enforcement activities, must be from the general fund.

Sec. 7. Minnesota Statutes 1996, section 299D.03, subdivision 5, is amended to read:

Three-eighths of these receipts shall be credited to the general revenue fund of the county. The other five-eighths of these receipts shall be transmitted by that officer to the state treasurer and shall be credited as follows:

(1) In the fiscal year ending June 30, 1991, the first $275,000 in money received by the state treasurer after June 4, 1991, must be credited to the transportation services fund, and the remainder in the fiscal year credited to the trunk highway fund.

(2) In fiscal year 1992, the first $215,000 in money received by the state treasurer in the fiscal year must be credited to the transportation services fund, and the remainder credited to the trunk highway fund.

(3) In fiscal years 1993 and subsequent years, the entire amount received by the state treasurer must be credited to the trunk highway general fund. If, however, the violation occurs within a municipality and the city attorney prosecutes the offense, and a plea of not guilty is entered, one-third of the receipts shall be credited to the general revenue fund of the county, one-third of the receipts shall be paid to the municipality prosecuting the offense, and one-third shall be transmitted to the state treasurer as provided in this subdivision. All costs of participation in a nationwide police communication system chargeable to the state of Minnesota shall be paid from appropriations for that purpose.

(b) Notwithstanding any other provisions of law, all fines and forfeited bail money from violations of statutes governing the maximum weight of motor vehicles, collected from persons apprehended or arrested by employees of the state of Minnesota, by means of stationary or portable scales operated by these employees, shall be paid by the person or officer collecting the fines or forfeited bail money, on or before the tenth day after the last day of the month in which the collections were made, to the county treasurer of the county where the violation occurred. Five-eighths of these receipts shall be transmitted by that officer to the state treasurer and shall be credited to the highway user tax distribution fund. Three-eighths of these receipts shall be credited to the general revenue fund of the county.

Sec. 8. [APPROPRIATIONS.]

(a) $. . . . is appropriated for fiscal year 1999 from the general fund to the commissioner of transportation. The commissioner shall spend this amount as follows:

(1) $. . . . for the construction of trunk highways on new corridors or alignments, and for substantial capacity improvements to trunk highways on existing alignments;

(2) $. . . . for restoration of former trunk highways that have reverted to a statutory or home rule charter city or county and have become part of a state-aid system;

(3) $. . . . for capital improvements for public transit outside the seven-county metropolitan area; and

(4) $. . . . for operating assistance for public transit outside the seven-county metropolitan area.

(b) $. . . . is appropriated for fiscal year 1999 from the general fund to the metropolitan council. The council shall spend this amount as follows:

(1) $. . . . for capital improvements for regular route transit operated by the council and transit operated as replacement transit service eligible for assistance under Minnesota Statutes, section 473.388; and

(2) $. . . . for operating assistance for regular route transit operated by the council.

(c) The appropriations in this section are in addition to any other appropriations for those purposes for fiscal year 1999.

Sec. 9. [REVENUE FOR HIGHWAYS; ANNUAL PROJECTIONS.]

Sec. 10. [EFFECTIVE DATE.]

Sections 1, 2, 4, 8, and 9 are effective July 1, 1998. Sections 3, 5, 6, and 7 are effective July 1, 1999."

Delete the title and insert:

"A bill for an act relating to the organization and operation of state government; appropriating money for transportation, public safety, and other purposes; requiring studies; establishing a task force on dealer licensing and motor vehicle registration enforcement in the state patrol; requiring wheel flaps on truck-tractors; regulating weight restrictions on vehicle axles; providing an exemption from aircraft registration; regulating state air transportation charges; defining road or highway; requiring certain expenditures from the trunk highway fund; establishing transportation spending goals; requiring expenditures for activities of the state patrol to be from the general fund; amending Minnesota Statutes 1996, sections 160.02, subdivision 7, and by adding a subdivision; 161.04, by adding a subdivision; 169.733, subdivision 1; 169.825, subdivision 8; 174.01, by adding a subdivision; 174.02, by adding a subdivision; 299D.01, by adding a subdivision; 299D.03, subdivision 5; 360.024; and 360.653; Laws 1997, chapter 159, article 1, section 2, subdivision 2."

With the recommendation that when so amended the bill pass and be re-referred to the Committee on Ways and Means.

The report was adopted.

H. F. No. 2654 was reported to the House.

Macklin moved to amend H. F. No. 2654, the second engrossment, as follows:

Page 3, after line 4, insert:

"Sec. 2. Minnesota Statutes 1996, section 168.12, subdivision 2b, is amended to read:

Subd. 2b. [FIREFIGHTERS; SPECIAL LICENSE PLATE.] The registrar shall issue special license plates to any applicant who is both (1) either a member of a fire department receiving state aid under chapter 69 or a retired firefighter eligible to receive a pension pursuant to chapter 424 or 424A and (2) an owner or joint owner of a passenger automobile, or truck with a manufacturer's nominal rated capacity of one ton and resembling a pickup truck, upon payment of a fee of $10 and upon payment of the registration tax required by law for the vehicle and compliance with other laws of this state relating to registration and licensing of motor vehicles and drivers. In lieu of the identification required under subdivision 1, the special license plates shall be inscribed with a symbol of a Maltese Cross together with five numbers. No applicant shall receive more than two sets of plates for vehicles owned or jointly owned by the applicant.

Special plates issued under this subdivision may only be used during the period that the owner or joint owner of the vehicle is a member of a fire department or a retired firefighter as specified in this subdivision. When (1) the person to whom the special plates were issued is both no longer a member of a fire department and is not a retired firefighter or (2) when the vehicle ownership is transferred, the special license plates shall be removed from the vehicle and returned to the registrar. Upon return of the special plates, the owner or purchaser of the vehicle is entitled to receive regular plates for the vehicle without cost for the remainder of the registration period for which the special plates were issued. Firefighter license plates issued pursuant to this subdivision may be transferred to another motor vehicle upon payment of $5, which fee shall be paid into the state treasury and credited to the highway user tax distribution fund.

Page 8, line 27, delete "2, 3, and 5" and insert "3, 4, and 6"

Renumber the sections in sequence

Amend the title as follows:

Page 1, line 4, after the semicolon, insert "authorizing special license plates for retired firefighters;"

Page 1, line 13, delete "subdivision 2a" and insert "subdivisions 2a and 2b"

The motion prevailed and the amendment was adopted.

H. F. No. 2654, A bill for an act relating to public safety; allowing personalized license plates to be issued for certain trucks resembling pickup trucks; authorizing special license plates for retired firefighters; providing for separate form for assignment of vehicle title; clarifying that juvenile's age as it relates to DWI-related driver's license revocation refers to the date of violation instead of the date of conviction; providing reasonable time to petition for driver's license reinstatement; ensuring uniformity of amount of handling charge allowed for certain driver's license reinstatements; amending Minnesota Statutes 1996, sections 168.12, subdivisions 2a and 2b; 168A.01, by adding a subdivision; and 168A.11, subdivision 1; Minnesota Statutes 1997 Supplement, sections 169.121, subdivision 4; 171.19; 171.20, subdivision 4; and 171.29, subdivision 2.

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 130 yeas and 0 nays as follows:

Those who voted in the affirmative were:

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

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

H. F. No. 3332, A bill for an act relating to adoption; modifying conditions for open adoption agreements; amending Minnesota Statutes 1997 Supplement, section 259.58.

The question was taken on the passage of the bill and the roll was called. There were 132 yeas and 0 nays as follows:

Those who voted in the affirmative were:

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

The bill was passed and its title agreed to.

S. F. No. 1006 was reported to the House.

Upon objection of ten members, S. F. No. 1006 was stricken from the Consent Calendar and placed on General Orders.

S. F. No. 2031, A bill for an act relating to commerce; regulating conveyances and other transactions relating to real and personal property; making corrective and conforming changes to the Uniform Partnership Act of 1994; amending Minnesota Statutes 1996, sections 501B.57, subdivision 1, and by adding a subdivision; 507.24; and 580.24; Minnesota Statutes 1997 Supplement, sections 315.121; 322A.88; 323A.1-04; 323A.3-06; and 524.2-403; Laws 1997, chapter 174, article 12, sections 67 and 68; proposing coding for new law in Minnesota Statutes, chapter 507.

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

The question was taken on the passage of the bill and the roll was called. There were 131 yeas and 0 nays as follows:

Those who voted in the affirmative were:

Abrams	Erhardt	Johnson, R.	Mares	Paulsen	Sviggum
Anderson, B.	Erickson	Juhnke	Mariani	Pawlenty	Swenson, H.
Anderson, I.	Evans	Kahn	Marko	Paymar	Sykora
Bakk	Farrell	Kalis	McCollum	Pelowski	Tingelstad
Bettermann	Finseth	Kelso	McElroy	Peterson	Tomassoni
Biernat	Folliard	Kielkucki	McGuire	Pugh	Tompkins
Bishop	Garcia	Kinkel	Milbert	Rest	Trimble
Boudreau	Goodno	Knight	Molnau	Reuter	Tuma
Bradley	Greenfield	Knoblach	Mulder	Rhodes	Tunheim
Broecker	Greiling	Koskinen	Mullery	Rifenberg	Van Dellen
Carlson	Gunther	Kraus	Munger	Rostberg	Vandeveer
Chaudhary	Haas	Krinkie	Murphy	Rukavina	Wagenius
Clark, J.	Harder	Kubly	Ness	Schumacher	Weaver
Clark, K.	Hasskamp	Kuisle	Nornes	Seagren	Wejcman
Commers	Hausman	Larsen	Olson, E.	Seifert	Wenzel
Daggett	Hilty	Leighton	Olson, M.	Sekhon	Westfall
Journal of the House - 78th Day - Monday, February 23, 1998 - Top of Page 7242
Davids	Holsten	Leppik	Opatz	Skare	Westrom
Dawkins	Huntley	Lieder	Orfield	Skoglund	Winter
Dehler	Jaros	Lindner	Osskopp	Slawik	Wolf
Delmont	Jefferson	Long	Osthoff	Solberg	Workman
Dempsey	Jennings	Macklin	Otremba, M.	Stanek	Spk. Carruthers
Dorn	Johnson, A.	Mahon	Ozment	Stang

The bill was passed and its title agreed to.

H. F. No. 3040, A bill for an act relating to human services; modifying requirements for documentation of long-term care facility payrolls; amending Minnesota Statutes 1996, section 256B.432, subdivision 8.

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

The question was taken on the passage of the bill and the roll was called. There were 132 yeas and 0 nays as follows:

Those who voted in the affirmative were:

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

The bill was passed and its title agreed to.

S. F. No. 2028, A bill for an act relating to traffic regulations; requiring medical emergency vehicle to sound both audible signal and display lighted red light when responding to emergency; amending Minnesota Statutes 1997 Supplement, section 169.17.

The question was taken on the passage of the bill and the roll was called. There were 132 yeas and 0 nays as follows:

Those who voted in the affirmative were:

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

The bill was passed and its title agreed to.

S. F. No. 2170, A bill for an act relating to recreational vehicles; exempting licensed sellers of boat and snowmobile trailers from certain contract or franchise requirements; exempting watercraft trailers and all-terrain vehicle trailers from the prohibition against sale of motor vehicles on Sunday; amending Minnesota Statutes 1996, sections 168.27, subdivision 22; and 168.275.

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

The question was taken on the passage of the bill and the roll was called. There were 132 yeas and 0 nays as follows:

Those who voted in the affirmative were:

Abrams	Entenza	Johnson, A.	Mahon	Ozment	Stang
Anderson, B.	Erhardt	Johnson, R.	Mares	Paulsen	Sviggum
Anderson, I.	Erickson	Juhnke	Mariani	Pawlenty	Swenson, H.
Bakk	Evans	Kahn	Marko	Paymar	Sykora
Bettermann	Farrell	Kalis	McCollum	Pelowski	Tingelstad
Biernat	Finseth	Kelso	McElroy	Peterson	Tomassoni
Bishop	Folliard	Kielkucki	McGuire	Pugh	Tompkins
Boudreau	Garcia	Kinkel	Milbert	Rest	Trimble
Journal of the House - 78th Day - Monday, February 23, 1998 - Top of Page 7244
Bradley	Goodno	Knight	Molnau	Reuter	Tuma
Broecker	Greenfield	Knoblach	Mulder	Rhodes	Tunheim
Carlson	Greiling	Koskinen	Mullery	Rifenberg	Van Dellen
Chaudhary	Gunther	Kraus	Munger	Rostberg	Vandeveer
Clark, J.	Haas	Krinkie	Murphy	Rukavina	Wagenius
Clark, K.	Harder	Kubly	Ness	Schumacher	Weaver
Commers	Hasskamp	Kuisle	Nornes	Seagren	Wejcman
Daggett	Hausman	Larsen	Olson, E.	Seifert	Wenzel
Davids	Hilty	Leighton	Olson, M.	Sekhon	Westfall
Dawkins	Holsten	Leppik	Opatz	Skare	Westrom
Dehler	Huntley	Lieder	Orfield	Skoglund	Winter
Delmont	Jaros	Lindner	Osskopp	Slawik	Wolf
Dempsey	Jefferson	Long	Osthoff	Solberg	Workman
Dorn	Jennings	Macklin	Otremba, M.	Stanek	Spk. Carruthers

The bill was passed and its title agreed to.

S. F. No. 2379, A bill for an act relating to the board of government innovation and cooperation; clarifying the distribution of cooperation and combination aid in certain circumstances when an entire township is annexed by two or more contiguous cities; amending Minnesota Statutes 1997 Supplement, section 465.87, subdivision 1a.

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

The question was taken on the passage of the bill and the roll was called. There were 131 yeas and 0 nays as follows:

Those who voted in the affirmative were:

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

The bill was passed and its title agreed to.

H. F. No. 3201 was reported to the House.

Otremba, M., moved that H. F. No. 3201 be continued on Special Orders. The motion prevailed.

268.051; 268.057, subdivisions 1, 5, 6, and 7; 268.059; 268.063; 268.064, subdivision 2; 268.066; 268.067; 268.07; 268.09, subdivisions 1a, 10, 13, 16, and 17; 268.105, subdivision 3a; 268.125; 268.13, subdivisions 1 and 2; 268.182; 268.184; 268.192, subdivision 1; 268.194, subdivisions 2, 3, and 6; and 268.196, subdivision 2; proposing coding for new law in Minnesota Statutes, chapter 268; repealing Minnesota Statutes 1996, sections 268.04, as amended; 268.08, subdivision 5a; 268.13, subdivisions 3 and 5; and 268.25; Minnesota Statutes 1997 Supplement, sections 268.042, subdivision 2; and 268.054.

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

The question was taken on the passage of the bill and the roll was called. There were 132 yeas and 0 nays as follows:

Those who voted in the affirmative were:

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

The bill was passed and its title agreed to.

H. F. No. 2309 was reported to the House.

Leppik moved to amend H. F. No. 2309, the first engrossment, as follows:

Delete everything after the enacting clause and insert:

"Section 1. [325G.042] [CONSUMER CREDIT; EQUAL TREATMENT OF SPOUSES.]

Subdivision 1. [CONSIDERATION REQUIRED; SPOUSAL CREDIT HISTORY.] To the extent that a creditor considers credit history in evaluating the credit worthiness of similarly qualified applicants for a similar type and amount of credit, in evaluating an applicant's credit worthiness, a creditor shall consider:

(1) the credit history, when available, of accounts designated as accounts that the applicant and the applicant's spouse are permitted to use or for which both are contractually liable;

(3) at the applicant's request, the credit history, when available, of any account reported in the name of the applicant's spouse or former spouse that the applicant can demonstrate accurately reflects the applicant's credit worthiness.

Subd. 2. [CREDIT REPORTING; EQUAL TREATMENT OF SPOUSES.] (a) A creditor that furnishes credit information shall designate:

(1) any new credit account to reflect the participation of both spouses if the applicant's spouse is contractually liable on the account, other than as a guarantor, surety, endorser, or similar party; and

(2) any existing credit account to reflect such participation, within 90 days after receiving a written request to do so from one of the spouses.

(b) If a creditor furnishes credit information to a consumer reporting agency concerning a credit account designated to reflect the participation of both spouses, the creditor shall furnish the information in a manner that will enable the agency to provide access to the information in the name of each spouse.

(c) If a creditor furnishes credit information in response to an inquiry concerning a credit account designated to reflect the participation of both spouses, the creditor shall furnish the information in the name of the spouse about whom the information is requested.

Subd. 3. [DEFENSE.] A creditor's failure to comply with this section is not a violation if it results from an inadvertent error, provided that the creditor promptly, and at no cost to the applicant or borrower, rectified the error after it was brought to the creditor's attention.

Subd. 4. [ENFORCEMENT.] (a) Enforcement of this section is under section 8.31, except that in a private cause of action under section 8.31, subdivision 3a, the damages are limited to $1,000 and the plaintiff has no right to recover costs of investigation and attorney fees.

(b) No one may bring a private cause of action under this section unless the individual has first in good faith attempted to correct the problem with the party violating the section.

Subd. 5. [COMPLIANCE WITH FEDERAL LAW.] Compliance with the requirements of the Federal Consumer Credit Protection Act, title VII (Equal Credit Opportunity), United States Code, title 15, section 1691 et seq., as amended and the regulations promulgated under those sections dealing with the subject matter of this section, shall be deemed to be compliance with this section.

Subd. 6. [DEFINITION OF ACCOUNT.] For purposes of this section, the term "account" means an extension of consumer credit and the word "use" in relation to an account refers only to open-end credit.

Sec. 2. [EFFECTIVE DATE.]

Section 1 is effective January 1, 1999."

Amend the title accordingly

The motion prevailed and the amendment was adopted.

H. F. No. 2309, A bill for an act relating to financial institutions; regulating use of spousal credit history; requiring that creditors consider a credit history in the name of the applicant's spouse; requiring that creditors report a credit history in the names of both spouses; amending Minnesota Statutes 1996, section 325G.02, subdivision 1; proposing coding for new law in Minnesota Statutes, chapter 325G.

The question was taken on the passage of the bill and the roll was called. There were 128 yeas and 0 nays as follows:

Those who voted in the affirmative were:

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

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

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

Mulder moved that his name be stricken as an author on H. F. No. 1322. The motion prevailed.

Orfield moved that the name of Larsen be stricken as an author on H. F. No. 2588. The motion prevailed.

Rifenberg moved that the name of Larsen be added as an author on H. F. No. 2592. The motion prevailed.

Entenza moved that the names of Evans; Johnson, R.; Juhnke and Delmont be added as authors on H. F. No. 3017. The motion prevailed.

Murphy moved that the name of Otremba, M., be added as an author on H. F. No. 3228. The motion prevailed.

Mullery moved that the name of Evans be added as an author on H. F. No. 3552. The motion prevailed.

Tunheim moved that the name of Otremba, M., be added as an author on H. F. No. 3573. The motion prevailed.

Mares moved that the names of Swenson, H., and Westrom be added as authors on H. F. No. 3734. The motion prevailed.

Sviggum moved that the name of Vandeveer be added as an author on H. F. No. 3759. The motion prevailed.

Otremba, M., moved that the name of Rest be added as an author on H. F. No. 3760. The motion prevailed.

Carlson moved that H. F. No. 2364 be recalled from the Committee on Education and be re-referred to the Committee on Taxes. The motion prevailed.

Munger moved that H. F. No. 3200 be recalled from the Committee on Transportation and Transit and be re-referred to the Committee on Economic Development and International Trade. The motion prevailed.

Lieder moved that H. F. No. 3246 be recalled from the Committee on Economic Development and International Trade and be re-referred to the Committee on Health and Human Services. The motion prevailed.

McElroy moved that H. F. No. 3436 be recalled from the Committee on Transportation and Transit and be re-referred to the Committee on Taxes. The motion prevailed.

Kahn moved that H. F. No. 3693 be recalled from the Committee on Commerce, Tourism and Consumer Affairs and be re-referred to the Committee on Taxes. The motion prevailed.

Tunheim moved that H. F. No. 875 be returned to its author. The motion prevailed.

Tunheim moved that H. F. No. 2216 be returned to its author. The motion prevailed.

Milbert moved that H. F. No. 2617 be returned to its author. The motion prevailed.

Mulder moved that H. F. No. 2704 be returned to its author. The motion prevailed.

Tunheim moved that H. F. No. 2773 be returned to its author. The motion prevailed.

The Speaker announced the following temporary appointments and changes in committee assignments:

Capital Investment: Delete the name of Luther and add the name of Rest.

Education: Delete the name of Luther and add the name of Solberg.

Governmental Operations: Delete the name of Luther and add the name of Leighton.

Governmental Operations/State Government Finance Division: Delete the name of Luther and add the name of Leighton.

.

Winter moved that when the House adjourns today it adjourn until 2:30 p.m., Wednesday, February 25, 1998. The motion prevailed.

Winter moved that the House adjourn. The motion prevailed, and the Speaker declared the House stands adjourned until 2:30 p.m., Wednesday, February 25, 1998.

Edward A. Burdick, Chief Clerk, House of Representatives