Journal of the House - 29th Day - Top of Page 1393

STATE OF MINNESOTA

Journal of the House

EIGHTIETH SESSION 1997

__________________

TWENTY-NINTH DAY

Saint Paul, Minnesota, Tuesday, April 1, 1997

 

The House of Representatives convened at 2:30 p.m. and was called to order by Phil Carruthers, Speaker of the House.

Prayer was offered by Major Roger Senn, The Salvation Army, St. Paul, Minnesota.

The members of the House gave the pledge of allegiance to the flag of the United States of America.

The roll was called and the following members were present:

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

A quorum was present.

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


Journal of the House - 29th Day - Top of Page 1394

PETITIONS AND COMMUNICATIONS

The following communication was received:

STATE OF MINNESOTA

OFFICE OF THE SECRETARY OF STATE

ST. PAUL 55155

The Honorable Phil Carruthers

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 1997 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
4171510:18 a.m. March 26March 26
1241610:21 a.m. March 26March 26

Sincerely,

Joan Anderson Growe
Secretary of State

REPORTS OF STANDING COMMITTEES

Skoglund from the Committee on Judiciary to which was referred:

H. F. No. 25, A bill for an act relating to criminal justice; crime prevention; appropriating money for various judicial branch, public safety, children, families, and learning, and corrections crime prevention initiatives and programs, and other related purposes; establishing teen court programs as a sentencing alternative in certain cases involving youthful offenders; providing definitions; specifying program criteria and operating procedures for teen courts; clarifying elements of harassment and stalking crimes; amending Minnesota Statutes 1996, section 609.749, subdivisions 1, 2, and by adding a subdivision; Laws 1996, chapter 412, article 4, section 30, subdivision 4; proposing coding for new law in Minnesota Statutes, chapter 260.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. [APPROPRIATIONS.]

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


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SUMMARY BY FUND

1998 1999

General $ 11,202,000$ 10,573,000

Trunk Highway 8,881,0005,422,000

Sec. 2. OFFICE OF STRATEGIC AND LONG-RANGE PLANNING

Subdivision 1. Teen Court 1,500,000 1,500,000

This appropriation is for a teen court program.

Sec. 3. PUBLIC SAFETY

Subdivision 1. Total Appropriation 11,643,000 7,555,000

SUMMARY BY FUND

1998 1999

General 2,762,0002,133,000

Trunk Highway 8,881,000 5,422,000

The amounts that may be spent from this appropriation for each program are specified in the following subdivisions.

Subd. 2. Administration and Related Services

1,803,000 1,803,000

Summary by Fund

General 1,228,000 1,228,000

Trunk Highway 575,000 575,000

$1,703,000 the first year and $1,703,000 the second year are to develop and implement the infrastructure for a coordinated and integrated statewide criminal and juvenile justice information system; and to develop the processes and automated functionality that will provide statewide access to existing and future criminal and juvenile justice-oriented databases.

$100,000 the first year and $100,000 the second year are for soft body armor reimbursements under Minnesota Statutes, section 299A.38.

Subd. 3. State Patrol

9,840,000 5,752,000

Summary by Fund

General 1,534,000 905,000

Trunk Highway 8,306,000 4,847,000


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$1,441,000 the first year and $883,000 the second year from the general fund and $6,631,000 the first year and $4,423,000 the second year from the trunk highway fund are to increase the complement of the state patrol.

The complement of the state patrol is increased by 75 troopers, 11 radio communications operators, 12 clerical positions, one personnel representative, and two information officers. Fifteen troopers must be assigned to the special response team to assist local and county agencies in combating crime and in other special circumstances upon request.

$93,000 the first year and $22,000 the second year from the general fund and $1,675,000 the first year and $424,000 the second year from the trunk highway fund are to develop and implement a computer-aided dispatching, records management, and station office automation systems.

Sec. 4. DEPARTMENT OF CHILDREN, FAMILIES, AND LEARNING

After-School Enrichment Program 5,000,000 5,000,000

This appropriation is for youth enrichment grants.

Sec. 5. DEPARTMENT OF MILITARY AFFAIRS 1,940,000 1,940,000

This appropriation is for administrative costs associated with youth activities at National Guard training and community centers (armories) throughout the state."

Delete the title and insert:

"A bill for an act relating to criminal justice; appropriating money for a teen court program and various public safety, departments of military affairs and children, families, and learning crime prevention programs, and other related purposes."

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

The report was adopted.

Skoglund from the Committee on Judiciary to which was referred:

H. F. No. 98, A bill for an act relating to law enforcement; authorizing the use of the department of public safety's helicopters and aircraft for general law enforcement purposes; amending Minnesota Statutes 1996, section 299D.07.

Reported the same back with the following amendments:

Page 1, after line 16, insert:

"Sec. 2. [APPROPRIATION.]

$250,000 is appropriated from the trunk highway fund each year of the fiscal biennium ending June 30, 1999, to be used to pay the costs of using the department of public safety's helicopters and aircraft for law enforcement purposes. "


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Amend the title as follows:

Page 1, line 4, after the semicolon, insert "appropriating money;"

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

The report was adopted.

Carlson from the Committee on Education to which was referred:

H. F. No. 375, A bill for an act relating to education; providing for education investment; amending Minnesota Statutes 1996, sections 290.01, subdivisions 19a and 19b; and 290.091, subdivisions 2 and 6; proposing coding for new law in Minnesota Statutes, chapters 11A; 136A; and 290.

Reported the same back with the following amendments:

Pages 1 and 2, delete sections 1 and 2 and insert:

"Section 1. Minnesota Statutes 1996, section 47.75, subdivision 1, is amended to read:

Subdivision 1. [RETIREMENT AND HIGHER EDUCATION SAVINGS ACCOUNTS.] A commercial bank, savings bank, savings association, credit union, or industrial loan and thrift company may act as trustee or custodian under the Federal Self-Employed Individual Tax Retirement Act of 1962, as amended, of a higher education trust account under section 290.0803, and also under the Federal Employee Retirement Income Security Act of 1974, as amended. The trustee or custodian may accept the trust funds if the funds are invested only in savings accounts or time deposits in the commercial bank, savings bank, savings association, credit union, or industrial loan and thrift company. All funds held in the fiduciary capacity may be commingled by the financial institution in the conduct of its business, but individual records shall be maintained by the fiduciary for each participant and shall show in detail all transactions engaged under authority of this subdivision.

Sec. 2. Minnesota Statutes 1996, section 48.15, subdivision 4, is amended to read:

Subd. 4. [RETIREMENT AND HIGHER EDUCATION SAVINGS ACCOUNTS.] A state bank may act as trustee or custodian of a self-employed retirement plan under the Federal Self-Employed Individual Tax Retirement Act of 1962, as amended, higher education trust under section 290.0803, and of an individual retirement account under the Federal Employee Retirement Income Security Act of 1974, as amended, if the bank's duties as trustee or custodian are essentially ministerial or custodial in nature and the funds are invested only (1) in the bank's own savings or time deposits; or (2) in any other assets at the direction of the customer if the bank does not exercise any investment discretion, invest the funds in collective investment funds administered by it, or provide any investment advice with respect to those account assets.

Affiliated discount brokers may be utilized by the bank acting as trustee or custodian for self-directed IRAs, if specifically authorized and directed in appropriate documents. The relationship between the affiliated broker and the bank must be fully disclosed. Brokerage commissions to be charged to the IRA by the affiliated broker should be accurately disclosed. Provisions should be made for disclosure of any changes in commission rates prior to their becoming effective. The affiliated broker may not provide investment advice to the customer. All funds held in the fiduciary capacity may be commingled by the financial institution in the conduct of its business, but individual records shall be maintained by the fiduciary for each participant and shall show in detail all transactions engaged under authority of this subdivision. The authority granted by this section is in addition to, and not limited by, section 47.75.

Sec. 3. [136A.1211] [EFFECT OF HIGHER EDUCATION TRUSTS ON STATE GRANTS.]

The first $25,000 of the amount in a higher education trust under section 290.0803 must not be considered in determining the eligibility of an applicant for the state grant program under section 136A.121, provided that no asset exclusion is given to the same applicant through the Edvest savings program under section 136A.90.


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Sec. 4. [136A.90] [EDVEST PROGRAM ESTABLISHED.]

An Edvest savings program is established. In establishing this program, the legislature seeks to encourage individuals to save for post-secondary education by:

(1) providing a qualified state tuition program under federal tax law;

(2) providing matching grants for contributions to the program; and

(3) encouraging individuals, foundations, and businesses to provide additional grants to participating students.

Sec. 5. [136A.91] [DEFINITIONS.]

Subdivision 1. [GENERAL.] For purposes of sections 136A.90 to 136A.94, the following terms have the meanings given.

Subd. 2. [BENEFICIARY.] "Beneficiary" means the designated beneficiary for the account, as defined in section 529(e)(1) of the Internal Revenue Code.

Subd. 3. [BOARD.] "Board" means the state board of investment.

Subd. 4. [DIRECTOR.] "Director" means the director of the higher education services office.

Subd. 5. [EXECUTIVE DIRECTOR.] "Executive director" means the executive director of the state board of investment.

Subd. 6. [HESO OR OFFICE.] "HESO" or "office" means the higher education services office.

Subd. 7. [INTERNAL REVENUE CODE.] "Internal Revenue Code" means the Internal Revenue Code of 1986, as amended.

Subd. 8. [PROGRAM OR EDVEST.] "Program" or "Edvest" refers to the program established under section 136A.90.

Sec. 6. [136A.92] [HESO'S RESPONSIBILITIES.]

Subdivision 1. [ESTABLISH TERMS.] (a) The director shall establish the rules, terms, and conditions for the program, subject to the requirements of sections 136A.90 to 136A.94.

(b) The director shall prescribe the application forms, procedures, and other requirements that apply to the program.

Subd. 2. [ACCOUNTS TYPE PROGRAM.] The office must establish the program and the program must be operated as an accounts type program that permits individuals to save for qualified higher education costs incurred at any institution, regardless of whether it is private or public or whether it is located within or outside of this state. A separate account must be maintained for each beneficiary for whom contributions are made.

Subd. 3. [CONSULTATION WITH STATE BOARD OF INVESTMENT.] In designing and establishing the program's requirements and in negotiating or entering contracts with third parties under subdivision 8, the director shall consult with the executive director.

Subd. 4. [PROGRAM TO COMPLY WITH FEDERAL LAW.] The director shall take steps to ensure that the program meets the requirements for a qualified state tuition program under section 529 of the Internal Revenue Code. The director may request a private letter ruling or rulings from the Internal Revenue Service or take any other steps to ensure that the program qualifies under section 529 of the Internal Revenue Code or other relevant provisions of federal law.


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Subd. 5. [MINIMUM PENALTY.] In establishing the terms of the program, the office must provide that refunds of amounts in an account are subject to a minimum penalty, as required by section 529(b)(3) of the Internal Revenue Code. If the refunds or payments are not used for qualified higher education expenses of the designated beneficiary, this penalty must equal, at least, the proportionate amount of any matching grants deposited in the account under section 136A.94 and the investment return on the grants, plus an additional penalty that meets the requirement of federal law.

Subd. 6. [THREE-YEAR PERIOD FOR WITHDRAWAL OF GRANTS.] A matching grant deposited in the account under section 136A.94 may not be withdrawn within three years of the establishment of the account of the beneficiary. In calculating the three-year period, the period held in another account is included, if the account includes a rollover from another account under section 529(c)(3)(C) of the Internal Revenue Code.

Subd. 7. [MARKETING.] The director shall make parents and other interested individuals aware of the availability and advantages of the program as a way to save for higher education costs. The cost of these promotional efforts must be paid entirely from state general fund appropriations and may not be funded with fees imposed on participants.

Subd. 8. [ADMINISTRATION.] The director shall administer the program, including accepting and processing applications, maintaining account records, making payments, making matching grants under section 136A.94, and undertaking any other necessary tasks to administer the program. The office may contract with one or more third parties to carry out some or all of these administrative duties, including promotion and marketing of the program. The office and the board may jointly contract with third-party providers, if the office and board determine that it is desirable to contract with the same entity or entities for administration and investment management.

Subd. 9. [EFFECT ON STUDENT GRANTS.] The first $25,000 of the amount in an account under the program must not be considered in determining the financial aid of an applicant for the state grant program under section 136A.121, provided that no asset exclusion is given to the same applicant through a higher education trust under section 290.0803.

Subd. 10. [AUTHORITY TO IMPOSE FEES.] The office may impose fees on participants in the program to recover the costs of administration. The office must use its best efforts to keep these fees as low as possible, consistent with efficient administration, so that the returns on savings invested in the program will be as high as possible.

Subd. 11. [RULEMAKING.] (a) The office may adopt administrative rules under chapter 14 to carry out the provisions of sections 136A.90 to 136A.94.

(b) The office may adopt emergency rules under chapter 14. Any emergency rules adopted under this authority expire on July 1, 1998.

Sec. 7. [136A.93] [INVESTMENT OF ACCOUNTS.]

Subdivision 1. [STATE BOARD TO INVEST.] The state board of investment shall invest the money deposited in accounts in the program.

Subd. 2. [PERMITTED INVESTMENTS.] The board may invest the accounts in any permitted investment under section 11A.24. The legislature intends that each account be invested in a mix of investments that is appropriate to the number of years remaining before the funds will be withdrawn, if this is feasible given the costs and any other relevant factors.

Subd. 3. [CONTRACTING AUTHORITY.] The board may contract with one or more third parties for investment management, recordkeeping, or other services in connection with investing the accounts. The board and office may jointly contract with third-party providers, if the office and board determine that it is desirable to contract with the same entity or entities for administration and investment management.

Subd. 4. [FEES.] The board may impose fees on participants in the program to recover the cost of investment management and related tasks for the program. The board must use its best efforts to keep these fees as low as possible, consistent with high quality investment management, so that the returns on savings invested in the program will be as high as possible.


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Sec. 8. [136A.94] [MATCHING GRANTS.]

Subdivision 1. [MATCHING GRANT QUALIFICATION.] A state matching grant must be added to each account established under the program by March 1 of each year, if the following conditions are met:

(1) the contributor applies, in writing in a form prescribed by the director, for a matching grant;

(2) a minimum contribution of $200 was made during the preceding calendar year; and

(3) the contributor did not make and agrees not to make a contribution during the year to a higher education trust under section 290.0803.

Subd. 2. [AMOUNT OF MATCHING GRANT.] The amount of the matching grant for a beneficiary equals 15 percent of the sum of the contributions made to the beneficiary's account during the calendar year not to exceed $300.

Subd. 3. [BUDGET LIMIT.] If the amount of matching grants determined under subdivision 2 exceed the amount of the appropriation for the fiscal year, the director shall proportionately reduce each grant so that the total equals the available appropriation.

Subd. 4. [PRIVATE CONTRIBUTIONS.] (a) The office may solicit and accept contributions from private corporations, other businesses, foundations, or individuals to provide:

(1) matching grants under this section in addition to those funded with direct appropriations; or

(2) grants to students who withdraw money from accounts established under the program.

(b) Amounts contributed may only be used for those purposes. Amounts contributed are appropriated to the director to make grants.

(c) Contributors may designate a specific field of study, geographic area, or other criteria that govern use of the grants funded with their contributions, but may not discriminate on the basis of race, ethnicity, or gender. The office may refuse contributions that are subject, in the judgment of the director, to unacceptable conditions on their use."

Page 12, after line 30, insert:

"Sec. 14. [APPROPRIATION.]

$....... is appropriated from the general fund for the 1998-1999 biennium for the purposes of sections 4 to 8. This appropriation is allocated as follows:

(a) To the director of higher education services:

(1) $....... for matching grants under section 136A.94;

(2) $....... for start-up costs for the program; and

(3) $....... for marketing and promotion of the program.

(b) To the executive director of the state board of investment for initial start-up investment management and related costs, $........

Any amount of this appropriation that remains unexpended may be carried forward to the 2000-2001 biennium."

Page 12, line 32, delete "3 to 7" and insert "9 to 13 "


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Renumber the sections in sequence

Amend the title as follows:

Page 1, line 3, after the semicolon, insert "appropriating money;"

Page 1, line 4, before "290.01" insert "47.75, subdivision 1; 48.15, subdivision 4;"

Page 1, line 6, delete "11A;"

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

The report was adopted.

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

H. F. No. 406, A bill for an act relating to snowmobiles; modifying registration fees; requiring liability insurance; modifying rulemaking authority; establishing night speed limit; requiring a safety certificate; modifying youth restrictions; providing civil and criminal penalties; amending Minnesota Statutes 1996, sections 84.82, subdivision 3; 84.86, subdivision 1; 84.87, subdivision 2; and 84.872, subdivisions 1, 3, and by adding a subdivision; proposing coding for new law in Minnesota Statutes, chapter 84.

Reported the same back with the recommendation that the bill pass and be re-referred to the Committee on Environment, Natural Resources and Agriculture Finance.

The report was adopted.

Wagenius from the Committee on Transportation and Transit to which was referred:

H. F. No. 407, A bill for an act relating to natural resources; increasing snowmobile registration fees; increasing unrefunded gasoline tax revenues attributable to snowmobiles; requiring a permit to use state snowmobile trails; providing an appropriation for snowmobile grants-in-aid; appropriating money; amending Minnesota Statutes 1996, sections 84.82, subdivision 3; and 296.16, subdivision 1; proposing coding for new law in Minnesota Statutes, chapter 84.

Reported the same back with the following amendments:

Page 2, line 26, after "percent" insert "in fiscal year 1998, and three-fourths of one percent thereafter,"

Page 2, line 32, after "percent" insert "in fiscal year 1998, and three-fourths of one percent thereafter,"

Page 3, after line 33, insert:

"(d) $25,000 is appropriated from the highway user tax distribution fund to the commissioner of administration. The commissioner shall spend this appropriation for a study by a qualified consultant to determine the actual percent of all gasoline received in and produced or brought into the state, except gasoline used for aviation purposes, that is being used as fuel for snowmobiles in the state. The commissioner shall consult with the commissioners of revenue, transportation, and natural resources in preparing the request for proposals for the study and in selecting the consultant to perform the study. The commissioner shall report to the legislature on the results of the study by February 1, 1998."

With the recommendation that when so amended the bill pass and be re-referred to the Committee on Environment, Natural Resources and Agriculture Finance.

The report was adopted.


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Munger from the Committee on Environment and Natural Resources to which was referred:

H. F. No. 435, A bill for an act relating to the environment; amending the Minnesota Environmental Response and Liability Act; providing for the use of institutional controls to assure protectiveness of cleanup remedies; authorizing the pollution control agency to enter into certain cleanup settlements; changing a report date; appropriating money; amending Minnesota Statutes 1996, sections 115B.02, subdivision 16, and by adding a subdivision; 115B.17, subdivision 15, and by adding subdivisions; and 115B.412, subdivision 10.

Reported the same back with the following amendments:

Page 3, after line 9, insert:

"Sec. 3. Minnesota Statutes 1996, section 115B.17, subdivision 14, is amended to read:

Subd. 14. [REQUESTS FOR REVIEW, INVESTIGATION, AND OVERSIGHT.] (a) The commissioner may, upon request, assist a person in determining whether real property has been the site of a release or threatened release of a hazardous substance, pollutant, or contaminant. The commissioner may also assist in, or supervise, the development and implementation of reasonable and necessary response actions. Assistance may include review of agency records and files, and review and approval of a requester's investigation plans and reports and response action plans and implementation.

(b) Except as otherwise provided in this paragraph, the person requesting assistance under this subdivision shall pay the agency for the agency's cost, as determined by the commissioner, of providing assistance. A state agency or political subdivision is not required to pay for the agency's cost to review agency records and files. Money received by the agency for assistance under this section must be deposited in the environmental response, compensation, and compliance fund.

(c) When a person investigates a release or threatened release in accordance with an investigation plan approved by the commissioner under this subdivision, the investigation does not associate that person with the release or threatened release for the purpose of section 115B.03, subdivision 3, paragraph (d)."

Page 7, after line 11, insert:

"Sec. 9. Minnesota Statutes 1996, section 115B.17, is amended by adding a subdivision to read:

Subd. 21. [OFFICIAL CONTROLS ADOPTED BY POLITICAL SUBDIVISION.] Nothing in sections 115B.01 to 115B.18 authorizes the agency or the commissioner to adopt any land use plan, zoning requirement, building code requirement, official map, or similar control for any site or facility. However, the agency or commissioner may incorporate official controls adopted by a political subdivision as institutional controls associated with remedial action."

Page 7, line 22, delete "to 7" and insert ", 2, and 4 to 8" and delete "1996" and insert "1997" and delete "3" and insert "4"

Page 7, line 26, delete "3" and insert "4"

Renumber the sections in sequence

Amend the title as follows:

Page 1, line 10, delete "subdivision" and insert "subdivisions 14,"

With the recommendation that when so amended the bill pass and be re-referred to the Committee on Environment and Natural Resources Finance.

The report was adopted.


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Skoglund from the Committee on Judiciary to which was referred:

H. F. No. 445, A bill for an act relating to the military; adding an exclusion to the tort claims act; amending Minnesota Statutes 1996, section 3.736, subdivision 3.

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

The report was adopted.

Tunheim from the Committee on Commerce, Tourism and Consumer Affairs to which was referred:

H. F. No. 524, A bill for an act relating to liquor; requiring a permit for importing malt liquor to a central warehouse or holding area; proposing coding for new law in Minnesota Statutes, chapter 340A.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"ARTICLE 1

ALCOHOLIC BEVERAGE REGULATION

Section 1. [340A.3021] [IMPORTATION RESTRICTIONS.]

Subdivision 1. [DELIVERY TO WHOLESALER ONLY.] (a) No person may consign, ship, or deliver alcoholic beverages to any place in Minnesota except to a licensed wholesaler's warehouse, if the alcoholic beverages:

(1) were manufactured outside Minnesota; and

(2) have not previously been unloaded into a licensed wholesaler's warehouse in Minnesota.

(b) No person may ship or consign into Minnesota any alcoholic beverages manufactured outside the state unless the alcoholic beverages are continuously in the possession of a motor carrier of property as defined in section 221.011, subdivision 47, or are carried in a motor vehicle owned, leased, or rented by a wholesaler licensed under this chapter, between the time the alcoholic beverages are introduced into Minnesota and the time they are unloaded into a licensed wholesaler's warehouse.

Subd. 2. [EXCEPTIONS.] Subdivision 1 does not apply to:

(1) alcoholic beverages passing through Minnesota in interstate commerce, while in the custody and under the control of a motor carrier of property;

(2) alcoholic beverages imported into Minnesota by individuals for personal use in the amounts permitted under section 297C.09 or 340A.417; and

(3) a holder of a manufacturer's warehouse permit.

Subd. 3. [CONFORMITY WITH FEDERAL AND STATE REGULATIONS.] No manufacturer, importer, or wholesaler licensed under this chapter may introduce into Minnesota any bottle or other container containing alcoholic beverages unless the alcoholic beverages are packaged and labeled in conformity with all applicable federal and state labeling regulations.


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Subd. 4. [SOLICITATIONS PROHIBITED.] No person may send or mail, or cause to be sent or mailed, any letter, postcard, circular, catalog, pamphlet, or similar publication for delivery into Minnesota that is intended to solicit an order for alcoholic beverages to be shipped to any location into Minnesota other than a licensed wholesaler's warehouse.

Subd. 5. [CAUSE OF ACTION.] In addition to any penalties provided in this chapter, a person who is adversely affected by a violation of this section may bring an action in a court of appropriate jurisdiction to seek damages or injunctive relief. On a finding by the court that a person has violated or is violating this section, the court may enjoin the violation or violations. Any person licensed under this chapter is presumed to be adversely affected by a violation of this section.

Sec. 2. [340A.3055] [MANUFACTURER'S WAREHOUSE PERMIT.]

Subdivision 1. [PERMIT REQUIRED.] No brewer, malt liquor manufacturer, or intoxicating liquor manufacturer may import alcoholic beverages to a central warehouse, central distribution center, or holding area in Minnesota that the brewer or manufacturer owns or leases unless the brewer or manufacturer has obtained from the commissioner a manufacturer's warehouse permit for the facility. A manufacturer's warehouse permit allows a brewer or manufacturer to import alcoholic beverages for storage at the facility for which the permit is issued. No person other than a licensed wholesaler or a motor carrier of property as defined in section 221.011, subdivision 47, acting on behalf of a brewer, malt liquor manufacturer, intoxicating liquor manufacturer, or licensed wholesaler, may accept delivery from or pick up alcoholic beverages from the facility. A licensed wholesaler may distribute alcoholic beverages only from the wholesaler's warehouse.

Subd. 2. [ELIGIBILITY.] A permit under this section may be issued only to a brewer, malt liquor manufacturer, or intoxicating liquor manufacturer (1) whose manufacturing facility or facilities are located outside Minnesota, and (2) who holds a valid importer's license under section 340A.302.

Subd. 3. [FEE.] The annual fee for a permit under this section is $1,000.

Subd. 4. [RESTRICTION ON SALE AND DELIVERIES.] A holder of a permit under this section may sell alcoholic beverages stored in a facility to which a permit has been issued under this section only to (1) a wholesaler licensed under this chapter, (2) a wholesaler licensed in another state, or (3) an agency of another state or a province of Canada that sells alcoholic beverages at wholesale or retail.

Subd. 5. [REPORTS.] A holder of a permit under this section must report monthly to the commissioner of revenue, in a form and at a time the commissioner prescribes, (1) all alcoholic beverages imported into Minnesota and delivered to the permit holder's facility, and (2) all sales of alcoholic beverages made from the facility.

Sec. 3. Minnesota Statutes 1996, section 340A.404, subdivision 4, is amended to read:

Subd. 4. [SPECIAL PROVISIONS; SPORTS, CONVENTIONS, OR CULTURAL FACILITIES; COMMUNITY FESTIVALS.] (a) The governing body of a municipality may authorize a holder of a retail on-sale intoxicating liquor license issued by the municipality or by an adjacent municipality to dispense intoxicating liquor at any convention, banquet, conference, meeting, or social affair conducted on the premises of a sports, convention, or cultural facility owned by the municipality or instrumentality thereof having independent policy making and appropriating authority and located within the municipality. The licensee must be engaged to dispense intoxicating liquor at an event held by a person or organization permitted to use the premises, and may dispense intoxicating liquor only to persons attending the event. The licensee may not dispense intoxicating liquor to any person attending or participating in an amateur athletic event held on the premises.

(b) The governing body of a municipality may authorize a holder of a retail on-sale intoxicating liquor license issued by the municipality to dispense intoxicating liquor off premises at a community festival held within the municipality. The authorization shall specify the area in which the intoxicating liquor must be dispensed and consumed, and shall not be issued unless the licensee demonstrates that it has liability insurance as prescribed by section 340A.409 to cover the event.

Sec. 4. Minnesota Statutes 1996, section 340A.404, is amended by adding a subdivision to read:

Subd. 13. [HOLDERS OF MULTIPLE ON-SALE LICENSES; UNIFORM LICENSING PERIODS.] Notwithstanding any local ordinance or other law, a local government unit may adjust the licensing period for any holder of multiple on-sale alcoholic beverage licenses in the state, upon request of the licensee. The local government unit may charge a fee for an adjustment of the licensing period.


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Sec. 5. Minnesota Statutes 1996, section 340A.409, subdivision 1, is amended to read:

Subdivision 1. [INSURANCE REQUIRED.] No retail license may be issued, maintained or renewed unless the applicant demonstrates proof of financial responsibility with regard to liability imposed by section 340A.801. The issuing authority must submit to the commissioner the applicant's proof of financial responsibility. This subdivision does not prohibit a local unit of government from requiring higher insurance or bond coverages, or a larger deposit of cash or securities. The minimum requirement for proof of financial responsibility may be given by filing:

(1) a certificate that there is in effect for the license period an insurance policy issued by an insurer required to be licensed under section 60A.07, subdivision 4, or by an insurer recognized as an eligible surplus lines carrier pursuant to section 60A.206 or pool providing at least $50,000 of coverage because of bodily injury to any one person in any one occurrence, $100,000 because of bodily injury to two or more persons in any one occurrence, $10,000 because of injury to or destruction of property of others in any one occurrence, $50,000 for loss of means of support of any one person in any one occurrence, and $100,000 for loss of means of support of two or more persons in any one occurrence;

(2) a bond of a surety company with minimum coverages as provided in clause (1); or

(3) a certificate of the state treasurer that the licensee has deposited with the state treasurer $100,000 in cash or securities which may legally be purchased by savings banks or for trust funds having a market value of $100,000.

This subdivision does not prohibit an insurer from providing the coverage required by this subdivision in combination with other insurance coverage.

An annual aggregate policy limit for dram shop insurance of not less than $300,000 per policy year may be included in the policy provisions.

A liability insurance policy required by this section must provide that it may not be canceled for:

(1) any cause, except for nonpayment of premium, by either the insured or the insurer unless the canceling party has first given 30 days' notice in writing to the issuing authority of intent to cancel the policy; and

(2) nonpayment of premium unless the canceling party has first given ten days' notice in writing to the issuing authority of intent to cancel the policy.

Sec. 6. Minnesota Statutes 1996, section 340A.417, is amended to read:

340A.417 [SHIPMENTS INTO MINNESOTA.]

(a) Notwithstanding section 297C.09 or any provision of this chapter, a winery licensed in a state which affords Minnesota wineries an equal reciprocal shipping privilege may ship, for personal use and not for resale, not more than two cases of wine, containing a maximum of nine liters per case, in any calendar year to any resident of Minnesota age 21 or over. Delivery of a shipment under this section may not be deemed a sale in this state.

(b) The shipping container of any wine sent into or out of Minnesota under this section must be clearly labeled to indicate that the package cannot be delivered to a person under the age of 21 years.

(c) No person may (1) advertise shipments authorized under this section, or (2) by advertisement or otherwise, solicit shipments authorized by this section, or (3) accept orders for shipments authorized by this section by use of the Internet. No shipper located outside Minnesota may advertise such interstate reciprocal wine shipments in Minnesota.

(d) It is not the intent of this section to impair the distribution of wine through distributors or importing distributors, but only to permit shipments of wine for personal use.


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(e) No criminal penalty may be imposed on a person for a violation of this section other than a violation described in paragraph (f) or (g). Whenever it appears to the commissioner that any person has engaged in any act or practice constituting a violation of this section, and the violation is not within two years of any previous violation of this section, the commissioner shall issue and cause to be served upon the person an order requiring the person to cease and desist from violating this section. The order must give reasonable notice of the rights of the person to request a hearing and must state the reason for the entry of the order. Unless otherwise agreed between the parties, a hearing shall be held not later than seven days after the request for the hearing is received by the commissioner after which and within 20 days after the receipt of the administrative law judge's report and subsequent exceptions and argument, the commissioner shall issue an order vacating the cease and desist order, modifying it, or making it permanent as the facts require. If no hearing is requested within 30 days of the service of the order, the order becomes final and remains in effect until modified or vacated by the commissioner. All hearings shall be conducted in accordance with the provisions of chapter 14. If the person to whom a cease and desist order is issued fails to appear at the hearing after being duly notified, the person shall be deemed in default, and the proceeding may be determined against the person upon consideration of the cease and desist order, the allegations of which may be deemed to be true.

(f) Any person who violates this section within two years of a violation for which a cease and desist order was issued under paragraph (e), is guilty of a misdemeanor.

(g) Any person who commits a third or subsequent violation of this section, including a violation for which a cease and desist order was issued under paragraph (c), within any subsequent two-year period is guilty of a gross misdemeanor.

Sec. 7. Minnesota Statutes 1996, section 340A.504, subdivision 3, is amended to read:

Subd. 3. [INTOXICATING LIQUOR; SUNDAY SALES; ON-SALE.] (a) A restaurant, club, bowling center, or hotel with a seating capacity for at least 30 persons and which holds an on-sale intoxicating liquor license may sell intoxicating liquor for consumption on the premises in conjunction with the sale of food between the hours of 12:00 noon on Sundays and 1:00 a.m. on Mondays.

(b) The governing body of a municipality may after one public hearing by ordinance permit a restaurant, hotel, bowling center, or club to sell intoxicating liquor alcoholic beverages for consumption on the premises in conjunction with the sale of food between the hours of 10:00 a.m. on Sundays and 1:00 a.m. on Mondays, provided that the licensee is in conformance with the Minnesota clean air act.

(c) An establishment serving intoxicating liquor on Sundays must obtain a Sunday license. The license must be issued by the governing body of the municipality for a period of one year, and the fee for the license may not exceed $200.

(d) A city may issue a Sunday intoxicating liquor license only if authorized to do so by the voters of the city voting on the question at a general or special election. A county may issue a Sunday intoxicating liquor license in a town only if authorized to do so by the voters of the town as provided in paragraph (e). A county may issue a Sunday intoxicating liquor license in unorganized territory only if authorized to do so by the voters of the election precinct that contains the licensed premises, voting on the question at a general or special election.

(e) An election conducted in a town on the question of the issuance by the county of Sunday sales licenses to establishments located in the town must be held on the day of the annual election of town officers.

(f) Voter approval is not required for licenses issued by the metropolitan airports commission or common carrier licenses issued by the commissioner. Common carriers serving intoxicating liquor on Sunday must obtain a Sunday license from the commissioner at an annual fee of $50, plus $20 for each duplicate.

Sec. 8. Minnesota Statutes 1996, section 340A.504, subdivision 4, is amended to read:

Subd. 4. [INTOXICATING LIQUOR; OFF-SALE.] No sale of intoxicating liquor may be made by an off-sale licensee:

(1) on Sundays;

(2) before 8:00 a.m. on Monday through Saturday;


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(3) after 10:00 p.m. on Monday through Saturday at an establishment located in a city other than a city of the first class or within a city located within 15 miles of a city of the first class in the same county and as provided in clause (4);

(4) after 8:00 p.m. on Monday through Thursday and after 10:00 p.m. on Friday and Saturday at an establishment located in a city of the first class or within a city located within 15 miles of a city of the first class in the same county, provided that an establishment may sell intoxicating liquor until 10:00 p.m. on December 31 and July 3, and on the day preceding Thanksgiving day, unless otherwise prohibited under clause (1) and an establishment may sell intoxicating liquor until 10:00 p.m. on Monday through Saturday if it is a municipal liquor store located in a city with a population of less than 5,000 people and the city is within 15 miles of a first class city that borders another state;

(5) on Thanksgiving Day;

(6) on Christmas Day, December 25; or

(7) after 8:00 p.m. on Christmas Eve, December 24.

Sec. 9. Laws 1969, chapter 783, section 1, subdivision 1, as amended by Laws 1971, chapter 498, section 1, as amended by Laws 1973, chapter 396, section 1, is amended to read:

Section 1. [ST. PAUL, CITY OF; CIVIC CENTER; LIQUOR LICENSE.]

Subdivision 1. In addition to the licenses now authorized by law, and notwithstanding any provision of law to the contrary contained in the charter or ordinances of such city, or statutes applicable to such city, the city of St. Paul is authorized to issue an "on sale" liquor license for the premises known and used as the St. Paul civic center. The license so authorized may be vested, with the prior approval of the civic center authority, in any person, firm or corporation who has contracted for the use of the civic center premises for an event or a caterer of such person, firm or corporation approved by the civic center authority. The license may be vested in such person, firm, corporation or caterer notwithstanding the fact that such person, firm, corporation or caterer may hold another "on sale" license in its own right, but such license vested by the authority shall expire upon termination of the contracted event. The fee for such license to the authority shall be fixed by the governing body of the city of St. Paul. Such liquor license shall be issued in accordance with the statutes applicable to the issuance of "on sale" liquor licenses in cities of the first class not inconsistent herewith and in accordance with the charter and ordinances of the city of St. Paul not inconsistent herewith and shall limit the sale of intoxicating liquor to patrons of the entire civic center complex who gather therein for any convention, banquet, conference, meeting, professional athletic or sporting event, theatrical event or social affair, but shall prohibit the sale of intoxicating liquor to the public or to any persons attending or participating in any amateur athletic event being held on the civic center premises other than an intercollegiate athletic event, and prohibit the sale of intoxicating liquor other than malt liquor to persons attending an intercollegiate athletic event at the civic center premises.

Sec. 10. Laws 1990, chapter 554, section 19, is amended to read:

Sec. 19. [CITY OF ST. PAUL; WINE AND BEER LICENSES.]

Subdivision 1. [LICENSE AUTHORIZED.] The city of St. Paul may issue on-sale nonintoxicating malt liquor licenses and, on-sale wine licenses, and on-sale intoxicating liquor licenses to the city's division of parks and recreation. The licenses authorize the sale or service of wine or, nonintoxicating malt liquor, or intoxicating liquor on property owned by the city and under the jurisdiction of the division by:

(1) employees of the city;

(2) persons holding a permit from the division to conduct an event and sell or serve wine or, nonintoxicating malt liquor, or intoxicating liquor to persons attending the event; or

(3) persons who have contracted with the city to sell or serve wine or, nonintoxicating malt liquor, or intoxicating liquor on such property.


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Subd. 2. [PERMITS; CONTRACTS.] (a) Permits issued by the city under subdivision 1, clause (2), and contracts entered into by the city under subdivision 1, clause (3), must provide for:

(1) the duration of the permit or contract;

(2) the premises or area in which sales or service of wine or, nonintoxicating malt liquor, or intoxicating liquor will be made;

(3) the persons to whom such sales or service will be made;

(4) the days and hours in which such sales or service will be made; and

(5) obtaining by the permit holder or contracted vendor of such liquor liability insurance or bond, or both, as the city considers necessary to protect the city's interest as the holder of the license.

(b) A permit may be issued or a contract entered into under this section with a person who does not hold a license issued under Minnesota Statutes, chapter 340A, for the retail sale of alcoholic beverages.

(c) The division may, without notice or hearing, refuse to issue a permit under subdivision 1, clause (2).

Subd. 3. [CITY COUNCIL APPROVAL.] The St. Paul city council must approve each:

(1) facility at which wine or, nonintoxicating malt liquor, or intoxicating liquor will be sold or served by city employees;

(2) permit issued under subdivision 1, clause (2); and

(3) contract entered into under subdivision 1, clause (3).

Subd. 4. [APPLICABILITY OF GENERAL LAW.] All provisions of Minnesota Statutes, chapter 340A, not inconsistent with this section apply to licenses issued under this section. Licenses authorized by this section are in addition to any other licenses authorized by law.

Sec. 11. [CITY OF MOORHEAD; LIQUOR LICENSES.]

The city of Moorhead may issue three on-sale intoxicating liquor licenses in addition to the number authorized by law. All provisions of Minnesota Statutes, chapter 340A, not inconsistent with this section, apply to the licenses authorized under this section.

Sec. 12. [CITY OF SPRING LAKE PARK; LIQUOR LICENSES.]

The city of Spring Lake Park may issue one on-sale intoxicating liquor license in addition to the number authorized by law. All provisions of Minnesota Statutes, chapter 340A, not inconsistent with this section, apply to the license authorized under this section.

Sec. 13. [EFFECTIVE DATE.]

Sections 2, 4, 7, and 8 are effective the day following final enactment. Sections 9 and 10 are effective on approval by the St. Paul city council and compliance with Minnesota Statutes, section 645.021. Section 11 is effective on approval by the Moorhead city council and compliance with Minnesota Statutes, section 645.021. Section 12 is effective on approval by the Spring Lake Park city council and compliance with Minnesota Statutes, section 645.021.


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ARTICLE 2

ALCOHOL AND GAMBLING ENFORCEMENT

Section 1. Minnesota Statutes 1996, section 16B.54, subdivision 2, is amended to read:

Subd. 2. [VEHICLES.] (a) [ACQUISITION FROM AGENCY; APPROPRIATION.] The commissioner may direct an agency to make a transfer of a passenger motor vehicle or truck currently assigned to it. The transfer must be made to the commissioner for use in the central motor pool. The commissioner shall reimburse an agency whose motor vehicles have been paid for with funds dedicated by the constitution for a special purpose and which are assigned to the central motor pool. The amount of reimbursement for a motor vehicle is its average wholesale price as determined from the midwest edition of the National Automobile Dealers Association official used car guide.

(b) [PURCHASE.] To the extent that funds are available for the purpose, the commissioner may purchase or otherwise acquire additional passenger motor vehicles and trucks necessary for the central motor pool. The title to all motor vehicles assigned to or purchased or acquired for the central motor pool is in the name of the department of administration.

(c) [TRANSFER AT AGENCY REQUEST.] On the request of an agency, the commissioner may transfer to the central motor pool any passenger motor vehicle or truck for the purpose of disposing of it. The department or agency transferring the vehicle or truck must be paid for it from the motor pool revolving account established by this section in an amount equal to two-thirds of the average wholesale price of the vehicle or truck as determined from the midwest edition of the National Automobile Dealers Association official used car guide.

(d) [VEHICLES; MARKING.] The commissioner shall provide for the uniform marking of all motor vehicles. Motor vehicle colors must be selected from the regular color chart provided by the manufacturer each year. The commissioner may further provide for the use of motor vehicles without marking by:

(1) the governor;

(2) the lieutenant governor;

(3) the division of criminal apprehension, the division of liquor control, the division of alcohol and gambling enforcement, and arson investigators of the division of fire marshal in the department of public safety;

(4) the financial institutions division of the department of commerce;

(5) the division of disease prevention and control of the department of health;

(6) the state lottery;

(7) criminal investigators of the department of revenue;

(8) state-owned community service facilities in the department of human services;

(9) the investigative staff of the department of economic security; and

(10) the office of the attorney general.

Sec. 2. Minnesota Statutes 1996, section 43A.34, subdivision 4, is amended to read:

Subd. 4. [STATE PATROL, CONSERVATION AND CRIME BUREAU OFFICERS EXEMPTED.] Notwithstanding any provision to the contrary, (a) conservation officers and crime bureau officers who were first employed on or after July 1, 1973, and who are members of the state patrol retirement fund by reason of their employment, and members of the Minnesota state patrol division and alcohol and gambling enforcement divisions division of the department of public safety who are members of the state patrol retirement association by reason of their employment, shall not continue employment


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after attaining the age of 60 years, except for a fractional portion of one year that will enable the employee to complete the employee's next full year of allowable service as defined pursuant to section 352B.01, subdivision 3; and (b) conservation officers and crime bureau officers who were first employed and are members of the state patrol retirement fund by reason of their employment before July 1, 1973, shall not continue employment after attaining the age of 70 years.

Sec. 3. Minnesota Statutes 1996, section 299A.02, subdivision 1, is amended to read:

Subdivision 1. [DIRECTOR OF DIVISION OF LIQUOR CONTROL CONFLICT OF INTEREST.] No employee of the department of public safety or the department of revenue having any responsibility for the administration or enforcement of Laws 1985, chapter 305, articles 2 to 11 chapter 297C or 340A shall have a direct or indirect interest, except through ownership or investment in pension or mutual funds, in the manufacture, transportation or sale of intoxicating liquor or any malt or vinous beverages, intoxicating, nonintoxicating, or commercial or industrial alcohol. The commissioner of public safety or the commissioner of revenue may remove an employee in the unclassified civil service for any intentional violation of any provision in Laws 1985, chapter 305, articles 2 to 11 of chapter 297C or 340A. Intentional violation of the preceding sections a provision of chapter 297C or 340A by a classified employee of one of the departments may be grounds for removal of that employee pursuant to section 43A.33.

Sec. 4. Minnesota Statutes 1996, section 299A.02, subdivision 2, is amended to read:

Subd. 2. [GENERAL POWERS.] The commissioner shall administer and enforce the provisions of Laws 1985, chapter 305, articles 2 to 11 chapters 297C and 340A through the director of alcohol and gambling enforcement, except for those provisions thereof for which administration and enforcement are reserved to the commissioner of revenue.

Sec. 5. Minnesota Statutes 1996, section 299A.02, subdivision 3, is amended to read:

Subd. 3. [REPORTS; RULES.] The commissioner shall have power to require periodic factual reports from all licensed importers, manufacturers, wholesalers and retailers of intoxicating liquors and to make all reasonable rules to effect the object of Laws 1985, chapter 305, articles 2 to 11 chapters 297C and 340A. The rules shall include provisions for assuring the purity of intoxicating liquors and the true statement of its contents and proper labeling thereof with regard to all forms of sale. No rule may require the use of new containers in aging whiskey. No rule may require cordials or liqueurs to contain in excess of 2-1/2 percent by weight of sugar or dextrose or both.

Sec. 6. Minnesota Statutes 1996, section 299L.01, subdivision 1, is amended to read:

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

(b) "Division" means the division of alcohol and gambling enforcement.

(c) "Commissioner" means the commissioner of public safety.

(d) "Director" means the director of alcohol and gambling enforcement.

(e) "Manufacturer" means a person who assembles from raw materials or subparts a gambling device for sale or use in Minnesota.

(f) "Distributor" means a person who sells, offers to sell, or otherwise provides a gambling device to a person in Minnesota.

(g) "Used gambling device" means a gambling device five or more years old from the date of manufacture.

(h) "Test" means the process of examining a gambling device to determine its characteristics or compliance with the established requirements of any jurisdiction.

(i) "Testing facility" means a person in Minnesota who is engaged in the testing of gambling devices for use in any jurisdiction.


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Sec. 7. Minnesota Statutes 1996, section 299L.01, subdivision 2, is amended to read:

Subd. 2. [ESTABLISHED; CONSOLIDATION WITH LIQUOR CONTROL.] Effective October 1, 1996, the duties and powers of the division of gambling enforcement is a are transferred to the division of alcohol and gambling enforcement in the department of public safety, under the control and supervision of a director, appointed by the commissioner and serving at the commissioner's pleasure in the unclassified service. The director must be a person who is licensed or eligible to be licensed as a peace officer under sections 626.84 to 626.863.

Sec. 8. Minnesota Statutes 1996, section 299L.02, subdivision 4, is amended to read:

Subd. 4. [OTHER GAMBLING.] The director of gambling enforcement shall cooperate with all state and local agencies in the detection and apprehension of unlawful gambling.

Sec. 9. Minnesota Statutes 1996, section 299L.02, subdivision 5, is amended to read:

Subd. 5. [BACKGROUND CHECKS.] In any background check required to be conducted by the division of gambling enforcement under this chapter, chapter 240, 349, 349A, or section 3.9221, the director may, or shall when required by law, require that fingerprints be taken and the director may forward the fingerprints to the Federal Bureau of Investigation for the conducting of a national criminal history check. The director may charge a fee for fingerprint recording and investigation under section 3.9221.

Sec. 10. Minnesota Statutes 1996, section 299L.03, subdivision 1, is amended to read:

Subdivision 1. [INSPECTIONS; ACCESS.] In conducting any inspection authorized under this chapter or chapter 240, 349, or 349A, the employees of the division of gambling enforcement employees have free and open access to all parts of the regulated business premises, and may conduct the inspection at any reasonable time without notice and without a search warrant. For purposes of this subdivision, "regulated business premises" means premises where:

(1) lawful gambling is conducted by an organization licensed under chapter 349 or by an organization exempt from licensing under section 349.166;

(2) gambling equipment is manufactured, sold, distributed, or serviced by a manufacturer or distributor licensed under chapter 349;

(3) records required to be maintained under chapter 240, 297E, 349, or 349A are prepared or retained;

(4) lottery tickets are sold by a lottery retailer under chapter 340A;

(5) races are conducted by a person licensed under chapter 240; or

(6) gambling devices are manufactured, distributed, or tested, including places of storage under section 299L.07.

Sec. 11. Minnesota Statutes 1996, section 299L.03, subdivision 5, is amended to read:

Subd. 5. [ARREST POWERS.] The director may designate certain division employees within the division of gambling enforcement who are authorized to arrest or investigate any person who is suspected of violating any provision of chapter 240, 349, or 349A, or is suspected of committing any crime involving gambling, and to conduct searches and seizures to enforce any of those laws. Any employee authorized by this subdivision to make an arrest must be licensed under sections 626.84 to 626.863.

Sec. 12. Minnesota Statutes 1996, section 299L.03, subdivision 7, is amended to read:

Subd. 7. [OTHER POWERS.] Nothing in this chapter limits the authority of the division of gambling enforcement to exercise any other power specified under chapter 240, 340A, 349, or 349A.


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Sec. 13. Minnesota Statutes 1996, section 340A.201, is amended to read:

340A.201 [LIQUOR CONTROL AUTHORITY.]

Subdivision 1. [1976 SUCCESSOR.] The commissioner of public safety is the successor to the commissioner of liquor control with respect to the powers and duties vested in the latter as of February 6, 1976, except for those powers and duties transferred to the commissioner of revenue. Any proceeding, court action, prosecution, or other business undertaken or commenced as of February 6, 1976, by the commissioner of liquor control is assigned to the commissioners of public safety and revenue as appropriate and may be completed by them.

Subd. 2. [DELEGATION; 1996 CONSOLIDATION; DIVISION DIRECTOR.] Effective October 1, 1996, the duties and powers vested previously in the commissioner of public safety and delegated to the department's division of liquor control are delegated and transferred to, and consolidated with, the division of alcohol and gambling enforcement of the department of public safety, under the supervision of a director appointed by the commissioner and serving in the unclassified service at the pleasure of the commissioner.

Sec. 14. [RESPONSIBILITIES TRANSFERRED AND CONSOLIDATED INTO DIVISION OF ALCOHOL AND GAMBLING ENFORCEMENT.]

Subdivision 1. [RESPONSIBILITIES TRANSFERRED.] The responsibilities of the division of liquor control and the division of gambling enforcement are transferred and consolidated into the division of alcohol and gambling enforcement in the department of public safety, under the supervision of a director in the unclassified service appointed by the commissioner of public safety and serving at the commissioner's pleasure. The term "responsibilities" includes powers, duties, rights, obligations, and other authority imposed by law on the former divisions. The term "new division" means the division of alcohol and gambling enforcement and "former divisions" means the division of liquor control and the division of gambling enforcement.

Subd. 2. [CONTINUATION.] The new division is a continuation of the former divisions as to those responsibilities and matters within the jurisdiction of the former divisions that are transferred to the new division. Following a transfer the new division shall carry out the assigned responsibilities as though the responsibilities of the former division had not been transferred. A transfer is not a new authority for the purpose of succession to all responsibilities of the former divisions as constituted at the time of the transfer.

Subd. 3. [RULES.] Rules adopted pursuant to responsibilities that are transferred to the new division remain effective and shall be enforced until amended or repealed in accordance with law by the commissioner of public safety. The rulemaking authority of the commissioner of public safety, that existed to implement the responsibilities that are transferred from the former divisions, is retained by the commissioner.

Subd. 4. [COURT ACTIONS.] Any proceeding, court action, prosecution, or other business or matter pending on the effective date of a transfer of responsibilities may be conducted and completed under the authority of the commissioner of public safety in the same manner, under the same terms and conditions, and with the same effect as though it involved or were commenced and conducted or completed prior to the transfer.

Subd. 5. [CONTRACTS; RECORDS.] The former divisions whose responsibilities are transferred shall give all contracts, books, maps, plans, papers, records, and property of every description relating to the transferred responsibilities and within its jurisdiction or control to the new division. The new division shall accept the material presented. The transfer shall be made in accordance with the directions of the new division.

Subd. 6. [UNEXPENDED FUNDS.] The unexpended balance of any appropriation to a former division for the purposes of any responsibilities that are transferred to the new division are reappropriated to the new division under the same conditions as the original appropriation, effective retroactively to October 1, 1996.

Subd. 7. [PERSONNEL.] The position of director of the division of liquor control is abolished. The person occupying the position of director of gambling enforcement becomes the director of alcohol and gambling enforcement, a position in the unclassified service. The director serves at the pleasure of the commissioner of public safety. All other classified and


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unclassified positions associated with the responsibilities being transferred are transferred with their incumbents to the new division. Personnel changes are effective retroactively to October 1, 1996. Nothing in this subdivision abrogates or modifies the rights now enjoyed by affected employees under the managerial or commissioner's plan under Minnesota Statutes, section 43A.18, or the terms of an agreement between an exclusive representative of public employees and the state or one of its appointing authorities.

Subd. 8. [TRANSFER OF PROPERTY; SALES TAX.] Transfers of motor vehicles or other tangible personal property between divisions under this section are exempt from the motor vehicle sales tax under Minnesota Statutes, chapter 297B, and the general sales tax under Minnesota Statutes, chapter 297A.

Sec. 15. [INSTRUCTION TO REVISOR.]

The revisor of statutes shall change the terms "division of gambling enforcement," "division of liquor control," "director of gambling enforcement," "director of the division of liquor control," and similar terms referring to either of those divisions or directors to "division of alcohol and gambling enforcement" or "director of alcohol and gambling enforcement," as appropriate:

(1) where found in Minnesota Statutes, chapters 299L, 340A, 349, and 349A, and Minnesota Statutes, sections 10A.01, subdivision 18; 13.99, subdivision 92a; 240.06, subdivisions 3 and 8; 240.07, subdivision 2; 240.08, subdivision 3; 240.09, subdivision 3a; 240.21; 297E.13, subdivision 5; 297E.16, subdivision 2; 352B.01, subdivision 2; 626.05, subdivision 2; 626.13; and 626.84, subdivision 1; and

(2) where found in Minnesota Rules.

Sec. 16. [EFFECTIVE DATE.]

Sections 1 to 14 are effective retroactively to October 1, 1996."

Delete the title and insert:

"A bill for an act relating to alcoholic beverages; restricting importation of alcoholic beverages into the state; authorizing manufacturer's warehouse permits; authorizing off-premise sales by on-sale retailers at community festivals; modifying liability insurance requirements for liquor retailers; providing penalties for violation of law governing reciprocal wine shipments; allowing municipalities to authorize on-sale of 3.2 percent malt liquor at 10 a.m. on Sundays; modifying time of day requirements for the off-sale of intoxicating liquor at a certain municipal liquor store; authorizing sale of intoxicating liquor at professional athletic events, and sale of intoxicating malt liquor at intercollegiate athletic events, at the St. Paul civic center; authorizing issuance of intoxicating liquor licenses to the St. Paul division of parks and recreation; authorizing Moorhead to issue up to three additional on-sale licenses; authorizing Spring Lake Park to issue one additional on-sale license; consolidating divisions of liquor control and gambling enforcement into division of alcohol and gambling enforcement in the department of public safety; amending Minnesota Statutes 1996, sections 16B.54, subdivision 2; 43A.34, subdivision 4; 299A.02, subdivisions 1, 2, and 3; 299L.01, subdivisions 1 and 2; 299L.02, subdivisions 4 and 5; 299L.03, subdivisions 1, 5, and 7; 340A.201; 340A.404, subdivision 4, and by adding a subdivision; 340A.409, subdivision 1; 340A.417; 340A.504, subdivisions 3 and 4; Laws 1969, chapter 783, section 1, subdivision 1, as amended; and Laws 1990, chapter 554, section 19; proposing coding for new law in Minnesota Statutes, chapter 340A."

With the recommendation that when so amended the bill pass.

The report was adopted.


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Wagenius from the Committee on Transportation and Transit to which was referred:

H. F. No. 591, A bill for an act relating to highways; requiring the commissioner of transportation to transfer certain easements to the city of Faribault.

Reported the same back with the following amendments:

Page 1, delete lines 8 to 12, and insert:

"Notwithstanding any law to the contrary, the commissioner of transportation, after reaching agreement with the city on the terms and conditions of the transfer, but not later than December 31, 1997, shall transfer to the city of Faribault all easements within the city that the commissioner acquired to relocate marked trunk highway No. 218 within the city but that are no longer needed for that purpose."

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

The report was adopted.

Jaros from the Committee on Economic Development and International Trade to which was referred:

H. F. No. 599, A bill for an act relating to historic preservation; appropriating money to the Minnesota historical society for a grant to the city of Bemidji for purchase of a historic railroad depot and its conversion to a historical museum and facility.

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

The report was adopted.

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

H. F. No. 613, A bill for an act relating to gambling; permitting tournaments or contests involving certain card games; amending Minnesota Statutes 1996, section 609.761, by adding a subdivision.

Reported the same back with the following amendments:

Page 1, line 12, delete the second "of"

Page 1, line 13, delete "chance"

Page 1, line 14, delete everything after "whist"

Page 1, line 15, delete everything before the semicolon and after the semicolon, insert "and"

Page 1, delete lines 16 to 19 and insert:

"(2) the promoter or organizer of the tournament or contest does not receive any share of an entry fee, wagers, or winnings related to the tournament or contest."

With the recommendation that when so amended the bill pass.

The report was adopted.


Journal of the House - 29th Day - Top of Page 1415

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

H. F. No. 630, A bill for an act relating to public employment; requiring notice before dissolution of certain self insured employee benefit plans; amending Minnesota Statutes 1996, section 471.617, subdivision 4.

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

The report was adopted.

Jaros from the Committee on Economic Development and International Trade to which was referred:

H. F. No. 686, A bill for an act relating to landlord and tenant; prohibiting landlords from penalizing tenants solely for seeking police or emergency assistance; superseding inconsistent local regulation; authorizing the attorney general to investigate and prosecute violations; providing civil penalties; proposing coding for new law in Minnesota Statutes, chapter 504.

Reported the same back with the following amendments:

Page 2, line 13, delete "not"

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. 687, A bill for an act relating to traffic regulations; prohibiting admission of motorcycle helmet use by operators and passengers age 18 or older in litigation involving damages arising from use or operation of a motor vehicle; amending Minnesota Statutes 1996, section 169.685, by adding a subdivision; repealing Minnesota Statutes 1996, section 169.974, subdivision 6.

Reported the same back with the following amendments:

Page 1, line 13, before "Proof" insert "(a)"

Page 1, after line 17, insert:

"(b) Paragraph (a) does not affect the right of a person to bring an action for damages arising out of an incident that involves a defectively designed or manufactured motorcycle helmet. Paragraph (a) does not prohibit the introduction of evidence pertaining to the use of a motorcycle helmet in such an action."

With the recommendation that when so amended the bill pass.

The report was adopted.

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

H. F. No. 700, A bill for an act relating to lawful gambling; increasing percentages of gross profit from lawful gambling that may be expended on expenses directly related to lawful gambling; placing restrictions on rules of the gambling control board relating to illegal gambling on premises where lawful gambling is permitted; removing limits on number


Journal of the House - 29th Day - Top of Page 1416

of paddletickets that may be included in a sealed grouping; removing certain restrictions on bingo prizes; amending Minnesota Statutes 1996, sections 349.15, subdivision 1; 349.151, subdivision 13; 349.163, subdivision 8; and 349.211, subdivisions 1 and 2.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 1996, section 297E.04, subdivision 3, is amended to read:

Subd. 3. [PADDLETICKET CARD MASTER FLARES.] Each sealed grouping of 100 or fewer paddleticket cards must have its own individual master flare. The manufacturer of the paddleticket cards must affix to or imprint at the bottom of each master flare a bar code that provides:

(1) the name of the manufacturer;

(2) the first paddleticket card number in the group;

(3) the number of paddletickets attached to each paddleticket card in the group; and

(4) all other information required by the commissioner. This subdivision applies to paddleticket cards (i) sold by a manufacturer after June 30, 1995, for use or resale in Minnesota or (ii) shipped into or caused to be shipped into Minnesota by a manufacturer after June 30, 1995. Paddleticket cards that are subject to this subdivision may not have a registration stamp affixed to the master flare.

Sec. 2. Minnesota Statutes 1996, section 349.12, subdivision 25, is amended to read:

Subd. 25. [LAWFUL PURPOSE.] (a) "Lawful purpose" means one or more of the following:

(1) any expenditure by or contribution to a 501(c)(3) or festival organization, as defined in subdivision 15a, provided that the organization and expenditure or contribution are in conformity with standards prescribed by the board under section 349.154, which standards must apply to both types of organizations in the same manner and to the same extent;

(2) a contribution to an individual or family suffering from poverty, homelessness, or physical or mental disability, which is used to relieve the effects of that poverty, homelessness, or disability;

(3) a contribution to an individual for treatment for delayed posttraumatic stress syndrome or a contribution to a program recognized by the Minnesota department of human services for the education, prevention, or treatment of compulsive gambling;

(4) a contribution to or expenditure on a public or private nonprofit educational institution registered with or accredited by this state or any other state;

(5) a contribution to a scholarship fund for defraying the cost of education to individuals where the funds are awarded through an open and fair selection process;

(6) activities by an organization or a government entity which recognize humanitarian or military service to the United States, the state of Minnesota, or a community, subject to rules of the board, provided that the rules must not include mileage reimbursements in the computation of the per occasion reimbursement limit and must impose no aggregate annual limit on the amount of reasonable and necessary expenditures made to support:

(i) members of a military marching or colorguard unit for activities conducted within the state; or

(ii) members of an organization solely for services performed by the members at funeral services;


Journal of the House - 29th Day - Top of Page 1417

(7) recreational, community, and athletic facilities and activities intended primarily for persons under age 21, provided that such facilities and activities do not discriminate on the basis of gender and the organization complies with section 349.154;

(8) payment of local taxes authorized under this chapter, taxes imposed by the United States on receipts from lawful gambling, the taxes imposed by section 297E.02, subdivisions 1, 4, 5, and 6, and the tax imposed on unrelated business income by section 290.05, subdivision 3;

(9) payment of real estate taxes and assessments on permitted gambling premises wholly owned by the licensed organization paying the taxes, not to exceed:

(i) for premises used for bingo, the amount that an organization may expend under board rules on rent for bingo; and

(ii) $35,000 per year for premises used for other forms of lawful gambling;

(10) a contribution to the United States, this state or any of its political subdivisions, or any agency or instrumentality thereof other than a direct contribution to a law enforcement or prosecutorial agency;

(11) a contribution to or expenditure by a nonprofit organization which is a church or body of communicants gathered in common membership for mutual support and edification in piety, worship, or religious observances;

(12) payment of one-half of the reasonable costs of an audit required in section 297E.06, subdivision 4;

(13) a contribution to or expenditure on a wildlife management project that benefits the public at-large, provided that the state agency with authority over that wildlife management project approves the project before the contribution or expenditure is made; or

(14) expenditures, approved by the commissioner of natural resources, by an organization for grooming and maintaining snowmobile trails that are (1) grant-in-aid trails established under section 85.019, or (2) other trails open to public use, including purchase or lease of equipment for this purpose.

(b) Notwithstanding paragraph (a), "lawful purpose" does not include:

(1) any expenditure made or incurred for the purpose of influencing the nomination or election of a candidate for public office or for the purpose of promoting or defeating a ballot question;

(2) any activity intended to influence an election or a governmental decision-making process;

(3) the erection, acquisition, improvement, expansion, repair, or maintenance of real property or capital assets owned or leased by an organization, unless the board has first specifically authorized the expenditures after finding that

(i) the real property or capital assets will be used exclusively for one or more of the purposes in paragraph (a);

(ii) with respect to expenditures for repair or maintenance only, that the property is or will be used extensively as a meeting place or event location by other nonprofit organizations or community or service groups and that no rental fee is charged for the use;

(iii) with respect to expenditures, including a mortgage payment or other debt service payment, for erection or acquisition only, that the erection or acquisition is necessary to replace with a comparable building, a building owned by the organization and destroyed or made uninhabitable by fire or natural disaster, provided that the expenditure may be only for that part of the replacement cost not reimbursed by insurance; or

(iv) with respect to expenditures, including a mortgage payment or other debt service payment, for erection or acquisition only, that the erection or acquisition is necessary to replace with a comparable building a building owned by the organization either that (A) was acquired from the organization by eminent domain or, (B) was sold by the organization to a purchaser


Journal of the House - 29th Day - Top of Page 1418

that the organization reasonably believed would otherwise have acquired the building by eminent domain, provided that or (C) is under threat of acquisition by eminent domain because of hazardous conditions in the building if the cost to erect or acquire the new building does not exceed the cost of repair or removal of the hazardous conditions by more than 30 percent, in which case the board shall consider the new building to be comparable to the building being replaced. The expenditure under this clause (iv) may be only for that part of the replacement cost that exceeds the compensation received by the organization for the building being replaced;

(4) an expenditure by an organization which is a contribution to a parent organization, foundation, or affiliate of the contributing organization, if the parent organization, foundation, or affiliate has provided to the contributing organization within one year of the contribution any money, grants, property, or other thing of value;

(5) a contribution by a licensed organization to another licensed organization unless the board has specifically authorized the contribution. The board must authorize such a contribution when requested to do so by the contributing organization unless it makes an affirmative finding that the contribution will not be used by the recipient organization for one or more of the purposes in paragraph (a); or

(6) a contribution to a statutory or home rule charter city, county, or town by a licensed organization with the knowledge that the governmental unit intends to use the contribution for a pension or retirement fund.

Sec. 3. Minnesota Statutes 1996, section 349.12, subdivision 26a, is amended to read:

Subd. 26a. [MASTER FLARE.] "Master flare" is the posted display, with registration stamp affixed or bar code imprinted or affixed, that is used in conjunction with sealed groupings of 100 or fewer sequentially numbered paddleticket cards.

Sec. 4. Minnesota Statutes 1996, section 349.15, subdivision 1, is amended to read:

Subdivision 1. [EXPENDITURE RESTRICTIONS.] Gross profits from lawful gambling may be expended only for lawful purposes or allowable expenses as authorized by the membership of the conducting organization at a monthly meeting of the organization's membership. Provided that no more than 60 65 percent of the gross profit less the tax imposed under section 297E.02, subdivision 1, from bingo, and no more than 50 55 percent of the gross profit from other forms of lawful gambling, may be expended for allowable expenses related to lawful gambling.

Sec. 5. Minnesota Statutes 1996, section 349.155, is amended by adding a subdivision to read:

Subd. 4a. [ILLEGAL GAMBLING.] The board may not deny, suspend, revoke, or refuse to renew an organization's premises permit because illegal gambling occurred at the site for which the premises permit was issued, unless the board determines that (i) the organization knowingly participated in the illegal gambling, or (ii) the organization knew or reasonably should have known of the illegal gambling and did not notify the lessor of the premises, in writing and with specificity, that illegal gambling was being conducted on the premises and requesting that the lessor take appropriate action.

Sec. 6. Minnesota Statutes 1996, section 349.16, is amended by adding a subdivision to read:

Subd. 10. [LICENSE RENEWAL TO MERGED FIRE RELIEF ASSOCIATIONS.] A new relief association formed from the merger of the relief associations of two separate city fire departments, mandated under Laws 1995, chapter 262, article 11, may apply for a license renewal under this section. The board shall consider the application as a license renewal of one of the relief associations that is a licensed organization and was merged to form the new relief association.

Sec. 7. Minnesota Statutes 1996, section 349.163, subdivision 8, is amended to read:

Subd. 8. [PADDLETICKET CARD MASTER FLARES.] Each sealed grouping of 100 or fewer paddleticket cards must have its own individual master flare. The manufacturer must affix to or imprint at the bottom of the master flare a bar code that provides all information required by the commissioner of revenue under section 297E.04, subdivision 3.

This subdivision applies to paddleticket cards sold by a manufacturer after June 30, 1995, for use or resale in Minnesota or shipped into or caused to be shipped into Minnesota by a manufacturer after June 30, 1995. Paddleticket cards which are subject to this subdivision shall not have a registration stamp affixed to the master flare.


Journal of the House - 29th Day - Top of Page 1419

Sec. 8. Minnesota Statutes 1996, section 349.211, subdivision 1, is amended to read:

Subdivision 1. [BINGO.] Except as provided in subdivision 2, prizes for a single bingo game may not exceed $100 $200 except prizes for a cover-all game, which may exceed $100 $200 if the aggregate value of all cover-all prizes in a bingo occasion does not exceed $1,000. Total prizes awarded at a bingo occasion may not exceed $2,500, unless a cover-all game is played in which case the limit is $3,500. A prize may be determined based on the value of the bingo packet sold to the player. For purposes of this subdivision, a cover-all game is one in which a player must cover all spaces except a single free space to win.

Sec. 9. Minnesota Statutes 1996, section 349.211, subdivision 2, is amended to read:

Subd. 2. [PROGRESSIVE BINGO GAMES.] A prize of up to $1,000 $2,000 may be awarded for a progressive bingo game, including a cover-all game. The prize for a progressive bingo game may start at $300 and be increased by up to $100 for each occasion during which the progressive bingo game is played. A consolation prize of up to $100 for a progressive bingo game may be awarded in each occasion during which the progressive bingo game is played and the accumulated prize is not won. The total amount awarded in progressive bingo game prizes in any calendar year may not exceed $36,000.

Sec. 10. [EFFECTIVE DATE.]

Sections 1, 2, 3, 5, 6, and 7 are effective the day following final enactment."

Delete the title and insert:

"A bill for an act relating to lawful gambling; authorizing certain groupings of paddleticket cards; allowing certain expenditures of net profits; increasing percentage of lawful gambling gross profits that may be spent for expenses; restricting authority of gambling control board to impose sanctions against lawful gambling premises permits for illegal gambling; increasing maximum bingo prices; authorizing the renewal of a license to an association comprised of merged fire relief associations; amending Minnesota Statutes 1996, sections 297E.04, subdivision 3; 349.12, subdivisions 25 and 26a; 349.15, subdivision 1; 349.155, by adding a subdivision; 349.16, by adding a subdivision; 349.163, subdivision 8; and 349.211, subdivisions 1 and 2."

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. 758, A bill for an act relating to local government; regulating the development, imposition, and management of state mandates upon local political subdivisions; proposing coding for new law in Minnesota Statutes, chapters 3; and 14; repealing Minnesota Statutes 1996, section 3.982.

Reported the same back with the following amendments:

Page 3, line 29, delete "school district,"

Page 4, line 16, delete "A division" and insert "An office" and delete "office of the"

Page 4, line 17, delete "state auditor" and insert "department of finance" and delete "division" and insert "commissioner"

Page 4, lines 21 and 26, delete "division" and insert "commissioner of finance"

Page 4, line 29, delete "division" and insert "commissioner"


Journal of the House - 29th Day - Top of Page 1420

Page 6, line 15, delete "other"

Page 6, line 16, delete everything before the semicolon

Page 7, lines 25 and 26, delete "division of state and local mandates shall submit to the department of finance" and insert "commissioner of finance shall prepare"

Page 7, line 30, delete "department of finance" and insert " commissioner"

Page 7, lines 35 and 36, delete "division of state and local mandates" and insert "commissioner of finance"

Page 8, line 5, delete "division" and insert "commissioner"

Page 8, line 6, delete "department of finance and the"

Page 8, lines 20 and 21, delete "division of state and local mandates in the office of state auditor" and insert "commissioner of finance"

Page 8, line 27, delete "division" and insert "commissioner"

Page 8, after line 31, insert:

"Sec. 6. Minnesota Statutes 1996, section 477A.014, subdivision 4, is amended to read:

Subd. 4. [COSTS.] The director of the office of strategic and long-range planning shall annually bill the commissioner of revenue for one-half of the costs incurred by the state demographer in the preparation of materials required by section 4A.02. The state auditor shall bill the commissioner of revenue for the costs of the services provided by the government information division and the parts of the constitutional office that are related to the government information function, not to exceed $217,000 in fiscal year 1992 and $217,000 in fiscal year 1993 and thereafter. The commissioner of administration shall bill the commissioner of revenue for the costs of the local government records program and the intergovernmental information systems activity, not to exceed $201,100 in fiscal year 1992 and $205,800 in fiscal year 1993 and thereafter. The commissioner of employee relations shall bill the commissioner of revenue for the costs of administering the local government pay equity function, not to exceed $56,000 in fiscal year 1992 and $55,000 in fiscal year 1993 and thereafter. The commissioner of finance shall bill the commissioner of revenue for the cost of preparation of fiscal notes as required by section 3.897 only to the extent to which those costs exceed those costs incurred in fiscal year 1997 and for any other new costs attributable to the operation of the state and local mandates office required by section 3.897, not to exceed $....... in fiscal year 1998 and thereafter."

Page 8, line 32, delete "6" and insert "7"

Amend the title as follows:

Page 1, line 4, after the semicolon, insert "amending Minnesota Statutes 1996, section 477A.014, subdivision 4;"

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

The report was adopted.

Wagenius from the Committee on Transportation and Transit to which was referred:

H. F. No. 770, A bill for an act relating to recreational vehicles; increasing fees; requiring a snowmobile safety certificate; imposing night speed limit; requiring a driver's license to operate certain snowmobiles; permitting local control of snowmobile speeds; requiring certain posting of snowmobile trails; requiring a report to the legislature; appropriating


Journal of the House - 29th Day - Top of Page 1421

money; amending Minnesota Statutes 1996, sections 84.82, subdivisions 2 and 3; 84.83, subdivision 3; 84.87, subdivisions 2, 2c, 3, and by adding a subdivision; and 84.872, by adding a subdivision; proposing coding for new law in Minnesota Statutes, chapters 84; and 85.

Reported the same back with the following amendments:

Page 4, line 14, delete "30" and insert "40"

Page 5, line 24, delete "the county, town, or city may establish a" and insert "the"

Page 5, line 25, delete "that"

Page 5, delete section 10

Page 6, line 9, delete everything before "The"

Page 6, line 10, delete "post" and insert "set standards for posting grant-in-aid and"

Page 6, line 11, delete "in accordance with this section"

Page 6, line 12, delete "shall post" and delete "trails" and insert "trail"

Page 6, delete lines 13 to 29 and insert "is encouraged to improve snowmobile safety posting under standards of the commissioner."

Renumber the sections in sequence

Amend the title as follows:

Page 1, line 10, after the semicolon, insert "and"

Page 1, line 11, delete everything after the semicolon

Page 1, line 12, delete "subdivision;"

With the recommendation that when so amended the bill pass and be re-referred to the Committee on Environment, Natural Resources and Agriculture Finance.

The report was adopted.

Skoglund from the Committee on Judiciary to which was referred:

H. F. No. 787, A bill for an act relating to human rights; specifying certain unfair employment practices by employers; amending Minnesota Statutes 1996, section 363.03, subdivision 1.

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

The report was adopted.

Jaros from the Committee on Economic Development and International Trade to which was referred:

H. F. No. 827, A bill for an act relating to the University of Minnesota; establishing a center for research on grapes and wine; appropriating money; amending Minnesota Statutes 1996, section 297C.08; proposing coding for new law in Minnesota Statutes, chapter 137.

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

The report was adopted.


Journal of the House - 29th Day - Top of Page 1422

Dorn from the Committee on Health and Human Services to which was referred:

H. F. No. 835, A bill for an act relating to human services; creating an exception for a separate annual audit of a county operated day training and habilitation program; amending Minnesota Statutes 1996, section 252.46, subdivision 10.

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

The report was adopted.

Dorn from the Committee on Health and Human Services to which was referred:

H. F. No. 861, A bill for an act relating to health professions; establishing licensure requirements for part-time practitioners of psychology and for emeritus registrants; amending Minnesota Statutes 1996, sections 148.89, subdivision 4; and 148.96, subdivision 3; proposing coding for new law in Minnesota Statutes, chapter 148.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 1996, section 148.907, subdivision 2, is amended to read:

Subd. 2. [REQUIREMENTS FOR LICENSURE AS A LICENSED PSYCHOLOGIST.] To become licensed by the board as a licensed psychologist, an applicant shall comply with the following requirements:

(1) pass an examination in psychology;

(2) pass a professional responsibility examination on the practice of psychology;

(3) pass any other examinations as required by board rules;

(4) pay nonrefundable fees to the board for applications, processing, testing, renewals, and materials;

(5) have attained the age of majority, be of good moral character, and have no unresolved disciplinary action or complaints pending in the state of Minnesota or any other jurisdiction;

(6) have a doctoral degree with a major in psychology from a regionally accredited educational institution meeting the standards the board has established by rule; and

(7) have completed at least two one full years year or the equivalent of postdoctoral supervised psychological employment.

Sec. 2. Minnesota Statutes 1996, section 148.907, subdivision 3, is amended to read:

Subd. 3. [MASTER'S LEVEL LICENSURE AS A LICENSED PSYCHOLOGIST AFTER AUGUST 1, 1991.] (a) A person licensed in this state as a licensed consulting psychologist or a licensed psychologist before August 1, 1991, qualifies for licensure as a licensed psychologist, as described in subdivision 2, at the time of license renewal.

(b) Providing all other licensure requirements have been satisfactorily met, the board shall grant licensure as a licensed psychologist to a person who:

(1) before November 1, 1991, entered a graduate program at a regionally accredited educational institution granting a master's or doctoral degree with a major in psychology which meets the standards the board has established by rule;


Journal of the House - 29th Day - Top of Page 1423

(2) before December 31, 1997, earned a master's degree or a master's equivalent in a doctoral program at a regionally accredited educational institution and complied with requirements of subdivision 2, clauses (1) to (5), except that the nonrefundable fees for licensure are payable at the time an application for licensure is submitted; and

(3) before December 31, 1998, completed at least two one full years year or the equivalent of post-master's supervised psychological employment, which may include a predoctoral internship.

(c) Notwithstanding paragraph (b), the board shall not grant licensure as a licensed psychologist under this subdivision unless the applicant demonstrates that the applicant was a resident of Minnesota on October 31, 1992, and meets all the requirements for licensure under this subdivision.

Sec. 3. Minnesota Statutes 1996, section 148.907, subdivision 4, is amended to read:

Subd. 4. [CONVERTING FROM MASTER'S TO DOCTORAL LEVEL LICENSURE.] To convert from licensure as a licensed psychologist at the master's or master's equivalent level to licensure at the doctoral level, a licensed psychologist shall have:

(1) completed an application provided by the board;

(2) had an official transcript documenting the conferral of the doctoral degree sent directly from the educational institution to the board;

(3) paid a nonrefundable fee;

(4) successfully completed two one full years year or the equivalent of supervised psychological employment, which shall not include a predoctoral internship, after earning a master's degree or a master's equivalent in a doctoral program;

(5) successfully completed a predoctoral internship meeting the standards the board has established by rule; and

(6) received a doctoral degree with a major in psychology from a regionally accredited educational institution meeting the standards the board has established by rule.

Sec. 4. [148.909] [LICENSURE FOR VOLUNTEER PRACTICE.]

The board, at its discretion, may grant licensure for volunteer practice to an applicant who:

(1) is a former licensee who is completely retired from the practice of psychology;

(2) has no unresolved disciplinary action or complaints pending in the state of Minnesota or any other jurisdiction; and

(3) has held a license, certificate, or registration to practice psychology in any jurisdiction for at least 15 years.

Sec. 5. Minnesota Statutes 1996, section 148.96, subdivision 1, is amended to read:

Subdivision 1. [REQUIREMENTS FOR PROFESSIONAL IDENTIFICATION.] All licensees, when representing themselves in activities relating to the practice of psychology, including in written materials or advertising, shall identify the academic degree upon which their licensure is based, as well as their level of licensure. Individuals licensed on the basis of the equivalent of a master's degree in a doctoral program shall similarly use the designation "M. Eq." to identify the educational status on which their licensure is based, as well as their level of licensure.

Sec. 6. Minnesota Statutes 1996, section 148.96, subdivision 3, is amended to read:

Subd. 3. [REQUIREMENTS FOR REPRESENTATIONS TO THE PUBLIC.] (a) Unless licensed under sections 148.88 to 148.98, except as provided in paragraphs (b) through (d) (e), persons shall not present represent themselves or permit themselves to be presented represented to the public by:


Journal of the House - 29th Day - Top of Page 1424

(1) using any title or description of services incorporating the words "psychology," "psychological," "psychological practitioner," or "psychologist"; or

(2) representing that the person has expert qualifications in an area of psychology.

(b) Psychologically trained individuals who are employed by an educational institution recognized by a regional accrediting organization, by a federal, state, county, or local government institution, agencies, or research facilities, may represent themselves by the title designated by that organization.

(c) A psychologically trained individual from an institution described in paragraph (b) may offer lecture services and is exempt from the provisions of this section.

(d) A person who is preparing for the practice of psychology under supervision in accordance with board statutes and rules may be designated as a "psychological intern," "psychological trainee," or by other terms clearly describing the person's training status.

(e) Former licensees who are completely retired from the practice of psychology may represent themselves using the descriptions in paragraph (a), clauses (1) and (2), but shall not represent themselves or allow themselves to be represented as current licensees of the board.

(f) Nothing in this section shall be construed to prohibit the practice of school psychology by a person licensed in accordance with chapter 125.

Sec. 7. [EFFECTIVE DATE.]

Sections 1 to 3 are effective the day following final enactment."

Delete the title and insert:

"A bill for an act relating to health professions; establishing licensure requirements for volunteer practitioners of psychology; modifying requirements for licensure as licensed psychologists and for professional identification; amending Minnesota Statutes 1996, sections 148.907, subdivisions 2, 3, and 4; and 148.96, subdivisions 1 and 3; proposing coding for new law in Minnesota Statutes, chapter 148."

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. 914, A bill for an act relating to taxation; allowing cities, towns, and counties to abate property taxes on certain improvements made to commercial property; proposing coding for new law in Minnesota Statutes, chapter 469.

Reported the same back with the following amendments:

Page 2, line 21, delete "three" and insert "five"

Page 4, delete lines 9 to 14, and insert:

"The total amount of abatements granted by the governmental subdivision under sections 469.21 to 469.217 for the current year may not exceed the greater of (1) five percent of the current year's levy, excluding any current amount for abatements, or (2) $100,000."

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

The report was adopted.


Journal of the House - 29th Day - Top of Page 1425

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

H. F. No. 959, A bill for an act relating to insurance; regulating health care policy rates; amending Minnesota Statutes 1996, section 62A.021, subdivision 1.

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

The report was adopted.

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

H. F. No. 987, A bill for an act relating to taxation; providing that personal property used in generation and transmission of biomass electric energy is exempt from taxation; amending Minnesota Statutes 1996, section 272.02, subdivision 1.

Reported the same back with the following amendments:

Page 1, after line 6, insert:

"Section 1. Minnesota Statutes 1996, section 216B.16, is amended by adding a subdivision to read:

Subd. 16. [WIND AND BIOMASS MANDATES.] Upon the petition of a public utility, the commission shall approve or disapprove power purchase contracts or investments entered into or made by the utility to satisfy the wind and biomass mandates contained in sections 216B.2423 and 216B.2424. The contract expenses incurred and investments made by a public utility with the approval of the commission shall be fully recognized for the entire term of the contract or investment period without reduction and shall be included by the commission in its determination of just and reasonable rates. The commission shall permit a public utility to file rate schedules providing for recovery of the costs of the wind and biomass mandates."

Page 10, line 16, delete ", as well as"

Page 10, line 17, delete everything before the period

Page 10, line 19, delete "1" and insert "2"

Renumber the sections in sequence

Amend the title as follows:

Page 1, line 4, after the semicolon, insert "providing for recovery of the costs of wind and biomass mandates;"

Page 1, line 5, delete "section" and insert "sections 216B.16, by adding a subdivision; and"

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

The report was adopted.

Skoglund from the Committee on Judiciary to which was referred:

H. F. No. 1038, A bill for an act relating to employment; providing for a wage protection program; providing penalties; appropriating money; proposing coding for new law in Minnesota Statutes, chapter 181.

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.


Journal of the House - 29th Day - Top of Page 1426

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

H. F. No. 1060, A bill for an act relating to insurance; providing that nonrenewals on homeowner's policies must be based on the total amount paid by the insurer on claims and not the number of claims; amending Minnesota Statutes 1996, section 65A.29, subdivision 8.

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

The report was adopted.

Dorn from the Committee on Health and Human Services to which was referred:

H. F. No. 1071, A bill for an act relating to professions; modifying certain board of psychology requirements relating to education, supervision, and disclosure of patient confidences; amending Minnesota Statutes 1996, section 148.907, subdivisions 2 and 4; 148.908, subdivision 2; and 148.925, subdivision 7; repealing Minnesota Statutes 1996, section 148.976.

Reported the same back with the following amendments:

Page 4, delete section 6

Amend the title as follows:

Page 1, line 3, delete the comma and insert "and"

Page 1, line 4, delete ", and disclosure of patient confidences"

Page 1, line 7, delete everything after "7" and insert a period

Page 1, delete line 8

With the recommendation that when so amended the bill pass.

The report was adopted.

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

H. F. No. 1123, A bill for an act relating to telecommunications; establishing the practices of slamming and loading as consumer fraud; providing penalties and remedies; making permanent the requirement to disclose local telecommunications service options; amending Minnesota Statutes 1996, sections 237.121; 237.16, subdivision 5; and 237.5799; proposing coding for new law in Minnesota Statutes, chapter 325F.

Reported the same back with the following amendments:

Page 3, line 12, delete "provider" and insert "carrier"


Journal of the House - 29th Day - Top of Page 1427

Page 3, line 25, after "(1)" delete the comma and insert ":

(1)"

Page 3, line 28, after "regulation" insert ";

(2) compliance with applicable federal law and regulation, or state law and rule, whichever is more stringent, is a complete defense to an allegation of consumer fraud under paragraph (a), clause (1); and

(3) it is the responsibility of the carrier requesting a change in a telephone service subscriber's carrier to verify that the subscriber has authorized the change. A local exchange carrier who has been requested by a carrier to process a change in a subscriber's carrier is not liable under this section for processing a requested change that is unauthorized"

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. 1144, A bill for an act relating to county officers; authorizing the county board to assign certain duties of the county auditor and treasurer; proposing coding for new law in Minnesota Statutes, chapter 375A.

Reported the same back with the following amendments:

Page 1, line 7, delete "[375A.121]" and after "OF" insert "LAKE OF THE WOODS"

Page 1, line 9, delete "a" and insert "the Lake of the Woods"

Page 1, line 14, delete "a" and insert "the"

Page 1, line 20, delete "A" and insert "The"

Page 2, line 4, delete "final enactment" and insert "compliance by the Lake of the Woods county board with Minnesota Statutes, section 645.021, subdivision 3"

Amend the title as follows:

Page 1, line 2, after "to" insert "Lake of the Woods" and delete "officers"

Page 1, line 4, delete everything after "treasurer" and insert a period

Page 1, delete line 5

With the recommendation that when so amended the bill pass.

The report was adopted.


Journal of the House - 29th Day - Top of Page 1428

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

H. F. No. 1148, A bill for an act relating to Scott county; permitting the appointment of the auditor, recorder, and treasurer.

Reported the same back with the following amendments:

Page 1, after line 12, insert:

"Sec. 2. [PUBLISHING RESOLUTION, PETITION, REFERENDUM.]

The Scott county board, after adopting a resolution permitted by section 1, must publish the resolution once each week for two consecutive weeks in the official publication of the county. The resolution may be implemented without the submission of the question to the voters of the county, unless within 21 days after the second publication of the resolution, a petition requesting a referendum, signed by at least ten percent of the registered voters of the county, is filed with the county auditor. If a petition is filed, the resolution may be implemented, unless disapproved by a majority of the voters of the county, voting on the question at a regular or special election."

Page 1, line 13, delete "2" and insert "3"

Page 1, line 14, delete "Section 1 is" and insert "Sections 1 and 2 are"

Amend the title as follows:

Page 1, line 3, before the period, insert "; providing for a reverse referendum"

With the recommendation that when so amended the bill pass.

The report was adopted.

Tunheim from the Committee on Commerce, Tourism and Consumer Affairs to which was referred:

H. F. No. 1179, A bill for an act relating to the environment; petroleum release compensation fund; authorizing reimbursement for certain costs; amending Minnesota Statutes 1996, section 115C.09, subdivision 3.

Reported the same back with the following amendments:

Page 2, line 9, after "costs" insert ", regardless of whether a release has occurred at the site"

Page 2, line 10, after "and" insert ", if a release has occurred at the site, any"

Page 2, line 11, after "1" insert ". This clause applies only if the tank or tanks involved are underground tanks, and"

Page 2, line 12, delete "240,000" and insert "400,000"

With the recommendation that when so amended the bill pass.

The report was adopted.


Journal of the House - 29th Day - Top of Page 1429

Jaros from the Committee on Economic Development and International Trade to which was referred:

H. F. No. 1203, A bill for an act relating to tourism; appropriating money for the design and planning of an upper Minnesota valley regional visitors center.

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

The report was adopted.

Carlson from the Committee on Education to which was referred:

H. F. No. 1213, A bill for an act relating to state lands; authorizing a land transfer.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. [AUTHORIZATION FOR CONVEYANCE OF LAND.]

(a) Notwithstanding the provisions of Minnesota Statutes, sections 94.09 to 94.16 and 103F.535, the board of trustees of Minnesota state colleges and universities may convey all or any part of the land in Clay county described in this section to the city of Moorhead or Moorhead public service. The conveyance may be for fair market value or less than fair market value, as determined by the board of trustees of Minnesota state colleges and universities, and shall be subject to terms and conditions required by the board of trustees of Minnesota state colleges and universities. The quit claim deed conveying said land must be in a form approved by the attorney general, reserve all minerals and mineral rights to the state of Minnesota, and contain a reverter and such other reservations, covenants, easements, restrictions, terms, and conditions required by the board of trustees of Minnesota state colleges and universities.

(b) The land that may be conveyed is described as follows: That part of the Southeast Quarter of Section 9, Township 139 North, Range 48 West, described as follows:

Beginning at a point on the North-South quarter line of said Section 9, said point being located 356.47 feet South of the center of said Section 9; thence South along said North-South quarter line in said Section 9 a distance of 1152.05 feet; thence North 89 degrees, 36 minutes, 30 seconds East on a line which parallels an existing fence line and is 10 feet North of said existing fence line a distance of 1050.78 feet; thence North 36 degrees, 44 minutes, 30 seconds West along the South right-of-way of trunk Highway No. 52 a distance of 1428.62 feet; thence North 89 degrees, 59 minutes West a distance of 196.04 feet to the point of beginning.

(c) The description may be revised in accordance with a survey of the land prepared by a licensed land surveyor if necessary to correct any deficiencies in the description. Any such revised description must be approved by the attorney general."

Delete the title and insert:

"A bill for an act relating to state lands; authorizing the board of trustees of Minnesota state colleges and universities to convey certain land."

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

The report was adopted.


Journal of the House - 29th Day - Top of Page 1430

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

H. F. No. 1330, A bill for an act relating to the city of Coon Rapids; providing for the extension of the duration of certain tax increment financing districts of the Coon Rapids economic development authority.

Reported the same back with the following amendments:

Page 2, delete lines 8 to 14

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

The report was adopted.

Munger from the Committee on Environment and Natural Resources to which was referred:

H. F. No. 1393, A bill for an act relating to the environment; establishing the office of brownfields coordination.

Reported the same back with the following amendments:

Page 1, line 5, delete the headnote and insert "[REPORT ON COORDINATION OF CLEANUP AND REDEVELOPMENT OF CONTAMINATED PROPERTIES.]"

Page 1, delete lines 6 to 24

Page 2, delete lines 1 to 19

Page 2, line 20, delete "(d)"

Page 2, line 25, delete "an update of the agencies' progress in" and insert "recommendations from the agencies with regard to"

Page 2, line 26, delete "the office described in paragraph (a)" and insert "an office to provide for the coordination of programs providing state and regional assistance in the cleanup and redevelopment of contaminated properties"

Page 2, line 27, delete "a more" and insert "an"

Delete the title and insert:

"A bill for an act relating to the environment; requiring a report to the legislature on coordination of cleanup and redevelopment of contaminated properties."

With the recommendation that when so amended the bill pass.

The report was adopted.


Journal of the House - 29th Day - Top of Page 1431

Jaros from the Committee on Economic Development and International Trade to which was referred:

H. F. No. 1395, A bill for an act relating to taxation; providing an income tax credit for contributions by an employer for employee housing; proposing coding for new law in Minnesota Statutes, chapter 290.

Reported the same back with the following amendments:

Page 2, line 1, delete "employee" and insert "employer"

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

The report was adopted.

Munger from the Committee on Environment and Natural Resources to which was referred:

H. F. No. 1397, A bill for an act relating to the environment; providing for cleanup of petroleum-contaminated sites that are not associated with a release from a tank; extending the authority of the commissioner of the pollution control agency to issue liability assurances in certain situations; appropriating money; amending Minnesota Statutes 1996, sections 115C.02, subdivision 1; 115C.03, subdivision 9; 115C.08, subdivisions 2 and 4; 115C.09, subdivision 1; and 116J.554, by adding a subdivision.

Reported the same back with the following amendments:

Page 1, delete section 1

Page 1, line 16, delete "Sec. 2." and insert "Section 1."

Page 1, line 26, delete "reasonable and necessary"

Pages 2 to 5, delete sections 3 to 7 and insert:

"Sec. 2. Minnesota Statutes 1996, section 115C.08, subdivision 4, is amended to read:

Subd. 4. [EXPENDITURES.] (a) Money in the fund may only be spent:

(1) to administer the petroleum tank release cleanup program established in this chapter;

(2) for agency administrative costs under sections 116.46 to 116.50, sections 115C.03 to 115C.06, and costs of corrective action taken by the agency under section 115C.03, including investigations;

(3) for costs of recovering expenses of corrective actions under section 115C.04;

(4) for training, certification, and rulemaking under sections 116.46 to 116.50;

(5) for agency administrative costs of enforcing rules governing the construction, installation, operation, and closure of aboveground and underground petroleum storage tanks;

(6) for reimbursement of the harmful substance compensation account under subdivision 5 and section 115B.26, subdivision 4;

(7) for administrative and staff costs as set by the board to administer the petroleum tank release program established in this chapter; and


Journal of the House - 29th Day - Top of Page 1432

(8) for corrective action performance audits under section 115C.093; and

(9) for contamination cleanup grants, as provided in paragraph (c).

(b) Except as provided in paragraph (c), money in the fund is appropriated to the board to make reimbursements or payments under this section.

(c) $6,200,000 is annually appropriated from the fund to the commissioner of trade and economic development for contamination cleanup grants under section 116J.554, provided that money appropriated in this paragraph may be used only for cleanup costs attributable to petroleum contamination, as determined by the commissioner of the pollution control agency.

Sec. 3. Minnesota Statutes 1996, section 115C.13, is amended to read:

115C.13 [REPEALER.]

Sections 115C.01, 115C.02, 115C.021, 115C.03, 115C.04, 115C.045, 115C.05, 115C.06, 115C.065, 115C.07, 115C.08, 115C.09, 115C.092, 115C.10, 115C.11, and 115C.12, are repealed effective June 30, 2000 2005.

Sec. 4. Minnesota Statutes 1996, section 116J.552, subdivision 4, is amended to read:

Subd. 4. [DEVELOPMENT AUTHORITY.] "Development authority" includes a statutory or home rule charter city, county, housing and redevelopment authority, economic development authority, and a port authority."

Delete the title and insert:

"A bill for an act relating to the environment; providing for cleanup of petroleum-contaminated sites that are not associated with a release from a tank; extending the authority of the commissioner of the pollution control agency to issue liability assurances in certain situations; extending the repealer of the program; modifying a definition; appropriating money; amending Minnesota Statutes 1996, sections 115C.03, subdivision 9; 115C.08, subdivision 4; 115C.13; and 116J.552, subdivision 4."

With the recommendation that when so amended the bill pass and be re-referred to the Committee on Environment and Natural Resources Finance.

The report was adopted.

Skoglund from the Committee on Judiciary to which was referred:

H. F. No. 1404, A bill for an act relating to civil actions; modifying and expanding provisions for sanctions in civil actions; amending Minnesota Statutes 1996, sections 336.2A-108; 566.25; 570.041, subdivision 1; 571.932, subdivision 6; and 609.5314, subdivision 3; proposing coding for new law in Minnesota Statutes, chapter 549; repealing Minnesota Statutes 1996, section 549.21.

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:

H. F. No. 1460, A bill for an act relating to privacy; providing for the classification of and access to government data; eliminating the requirement that government agencies pay a fee for commissioner's opinions; amending Minnesota Statutes 1996, sections 13.99, by adding subdivisions; and 53A.081, by adding a subdivision; repealing Minnesota Statutes 1996, sections 13.072, subdivision 3; 13.71, subdivisions 18, 19, 20, and 21; and 13.99, subdivision 21d.

Reported the same back with the following amendments:


Journal of the House - 29th Day - Top of Page 1433

Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 1996, section 13.41, is amended by adding a subdivision to read:

Subd. 6. [RESIDENCE ADDRESS AND TELEPHONE.] Notwithstanding subdivision 2 or 4, access to the residence address and telephone number of an applicant or licensee who is subject to the health-related licensing boards is governed by section 214.065.

Sec. 2. Minnesota Statutes 1996, section 13.46, subdivision 2, is amended to read:

Subd. 2. [GENERAL.] (a) Unless the data is summary data or a statute specifically provides a different classification, data on individuals collected, maintained, used, or disseminated by the welfare system is private data on individuals, and shall not be disclosed except:

(1) pursuant to section 13.05;

(2) pursuant to court order;

(3) pursuant to a statute specifically authorizing access to the private data;

(4) to an agent of the welfare system, including a law enforcement person, attorney, or investigator acting for it in the investigation or prosecution of a criminal or civil proceeding relating to the administration of a program;

(5) to personnel of the welfare system who require the data to determine eligibility, amount of assistance, and the need to provide services of additional programs to the individual;

(6) to administer federal funds or programs;

(7) between personnel of the welfare system working in the same program;

(8) the amounts of cash public assistance and relief paid to welfare recipients in this state, including their names, social security numbers, income, addresses, and other data as required, upon request by the department of revenue to administer the property tax refund law, supplemental housing allowance, early refund of refundable tax credits, and the income tax. "Refundable tax credits" means the dependent care credit under section 290.067, the Minnesota working family credit under section 290.0671, the property tax refund under section 290A.04, and, if the required federal waiver or waivers are granted, the federal earned income tax credit under section 32 of the Internal Revenue Code;

(9) to the Minnesota department of economic security for the purpose of monitoring the eligibility of the data subject for reemployment insurance, for any employment or training program administered, supervised, or certified by that agency, or for the purpose of administering any rehabilitation program, whether alone or in conjunction with the welfare system, and to verify receipt of energy assistance for the telephone assistance plan;

(10) to appropriate parties in connection with an emergency if knowledge of the information is necessary to protect the health or safety of the individual or other individuals or persons;

(11) data maintained by residential programs as defined in section 245A.02 may be disclosed to the protection and advocacy system established in this state pursuant to Part C of Public Law Number 98-527 to protect the legal and human rights of persons with mental retardation or other related conditions who live in residential facilities for these persons if the protection and advocacy system receives a complaint by or on behalf of that person and the person does not have a legal guardian or the state or a designee of the state is the legal guardian of the person;

(12) to the county medical examiner or the county coroner for identifying or locating relatives or friends of a deceased person;

(13) data on a child support obligor who makes payments to the public agency may be disclosed to the higher education services office to the extent necessary to determine eligibility under section 136A.121, subdivision 2, clause (5);


Journal of the House - 29th Day - Top of Page 1434

(14) participant social security numbers and names collected by the telephone assistance program may be disclosed to the department of revenue to conduct an electronic data match with the property tax refund database to determine eligibility under section 237.70, subdivision 4a;

(15) the current address of a recipient of aid to families with dependent children in effect until January 1, 1998, or MFIP-S may be disclosed to law enforcement officers who provide the name and social security number of the recipient and satisfactorily demonstrate notify the agency that:

(i) the recipient is:

(A) is a fugitive felon, including the grounds for this determination; fleeing to avoid prosecution, or custody or confinement after conviction, for a crime or attempt to commit a crime that is a felony under the laws of the jurisdiction from which the individual is fleeing;

(B) is violating a condition of probation or parole imposed under state or federal law; or

(C) has information that is necessary for the officer in the conduct of the officer's official duties;

(ii) the location or apprehension of the felon is within the law enforcement officer's official duties; and

(iii) the request is made in writing and in the proper exercise of those duties;

(16) the current address of a recipient of general assistance, work readiness, or general assistance medical care may be disclosed to probation officers and corrections agents who are supervising the recipient, and to law enforcement officers who are investigating the recipient in connection with a felony level offense;

(17) information obtained from food stamp applicant or recipient households may be disclosed to local, state, or federal law enforcement officials, upon their written request, for the purpose of investigating an alleged violation of the food stamp act, in accordance with Code of Federal Regulations, title 7, section 272.1(c);

(18) the address, social security number, and, if available, photograph of any member of a household receiving food stamps shall be made available, on request, to a local, state, or federal law enforcement officer if the officer furnishes the agency with the name of the member and notifies the agency that:

(i) the member:

(A) is fleeing to avoid prosecution, or custody or confinement after conviction, for a crime or attempt to commit a crime that is a felony in the jurisdiction the member is fleeing;

(B) is violating a condition of probation or parole imposed under state or federal law; or

(C) has information that is necessary for the officer to conduct an official duty related to conduct described in subclause (A) or (B);

(ii) locating or apprehending the member is within the officer's official duties; and

(iii) the request is made in writing and in the proper exercise of the officer's official duty;

(19) data on a child support obligor who is in arrears may be disclosed for purposes of publishing the data pursuant to section 518.575;

(19) (20) data on child support payments made by a child support obligor may be disclosed to the obligee;

(20) (21) data in the work reporting system may be disclosed under section 256.998, subdivision 7;


Journal of the House - 29th Day - Top of Page 1435

(21) (22) to the department of children, families, and learning for the purpose of matching department of children, families, and learning student data with public assistance data to determine students eligible for free and reduced price meals, meal supplements, and free milk pursuant to United States Code, title 42, sections 1758, 1761, 1766, 1766a, 1772, and 1773; to produce accurate numbers of students receiving aid to families with dependent children in effect until January 1, 1998, as required by section 124.175; and to allocate federal and state funds that are distributed based on income of the student's family; or

(22) (23) the current address and telephone number of program recipients and emergency contacts may be released to the commissioner of health or a local board of health as defined in section 145A.02, subdivision 2, when the commissioner or local board of health has reason to believe that a program recipient is a disease case, carrier, suspect case, or at risk of illness, and the data are necessary to locate the person.

(b) Information on persons who have been treated for drug or alcohol abuse may only be disclosed in accordance with the requirements of Code of Federal Regulations, title 42, sections 2.1 to 2.67.

(c) Data provided to law enforcement agencies under paragraph (a), clause (15), (16), or (17), or (18), or paragraph (b), are investigative data and are confidential or protected nonpublic while the investigation is active. The data are private after the investigation becomes inactive under section 13.82, subdivision 5, paragraph (a) or (b).

(d) Mental health data shall be treated as provided in subdivisions 7, 8, and 9, but is not subject to the access provisions of subdivision 10, paragraph (b).

Sec. 3. Minnesota Statutes 1996, section 13.54, is amended by adding a subdivision to read:

Subd. 6. [LAW ENFORCEMENT ACCESS TO CERTAIN DATA.] A public housing agency that enters a contract for assistance under United States Code, title 42, sections 1437 to 1440, shall furnish a local, state, or federal law enforcement officer, upon the officer's request, with the current address, social security number, and photograph, if available, of a recipient of assistance under United States Code, title 42, sections 1437 to 1440, if the officer:

(1) provides the name of the recipient to the housing agency; and

(2) notifies the agency that:

(i) the recipient:

(A) is fleeing to avoid prosecution, or custody or confinement after conviction, under the laws of the jurisdiction from which the individual is fleeing, for a crime which is a felony under the laws of that jurisdiction;

(B) is violating a condition of probation or parole imposed under state or federal law; or

(C) has information necessary for the officer to conduct the officer's official duties;

(ii) the location or apprehension of the individual is within the officer's official duties; and

(iii) the request is made in writing and in the proper exercise of the officer's official duties.

Sec. 4. Minnesota Statutes 1996, section 13.65, subdivision 2, is amended to read:

Subd. 2. [CONFIDENTIAL DATA; PROTECTED NONPUBLIC DATA.] The following data created, collected and maintained by the office of the attorney general are classified as confidential, pursuant to section 13.02, subdivision 3, or as protected nonpublic, pursuant to section 13.02, subdivision 13:

(1) data acquired through communications made in official confidence to members of the attorney general's staff where the public interest would suffer by disclosure of the data; and

(2) communications and noninvestigative files regarding administrative or policy matters which do not evidence final public actions, except that the office of the attorney general may disclose any such data to any person, agency, or the public.


Journal of the House - 29th Day - Top of Page 1436

Sec. 5. Minnesota Statutes 1996, section 13.87, subdivision 2, is amended to read:

Subd. 2. [CLASSIFICATION.] Criminal history data maintained by agencies, political subdivisions and statewide systems are classified as private, pursuant to section 13.02, subdivision 12, except that data created, collected, or maintained by the bureau of criminal apprehension that identify an individual who was convicted of a crime and the offense of which the individual was convicted are public data for 15 years following the discharge of the sentence imposed for the offense.

The bureau of criminal apprehension shall provide to the public at the central office of the bureau the ability to inspect in person, at no charge, through a computer monitor the criminal conviction data classified as public under this subdivision. By July 1, 1999, the bureau also shall make these data available through the Internet.

Sec. 6. Minnesota Statutes 1996, section 13.99, is amended by adding a subdivision to read:

Subd. 6e. [AGRICULTURAL COMMODITIES PROMOTION COUNCIL.] Financial information on producers of agricultural commodities that is provided to the agricultural commodities promotion council is governed by section 17.62.

Sec. 7. Minnesota Statutes 1996, section 13.99, is amended by adding a subdivision to read:

Subd. 13a. [LICENSED CURRENCY EXCHANGES.] Financial information in annual reports submitted to the commissioner of commerce by currency exchanges is classified in section 53A.081, subdivision 4.

Sec. 8. Minnesota Statutes 1996, section 13.99, is amended by adding a subdivision to read:

Subd. 14b. [MATERIAL TRANSACTION REPORTS.] Reports required to be filed by insurers regarding certain material transactions are classified under section 60A.135, subdivision 4.

Sec. 9. Minnesota Statutes 1996, section 13.99, is amended by adding a subdivision to read:

Subd. 14c. [RISK-BASED CAPITAL DATA.] Risk-based capital reports and related reports, data, and orders maintained by the commissioner of commerce are classified under section 60A.67.

Sec. 10. Minnesota Statutes 1996, section 13.99, is amended by adding a subdivision to read:

Subd. 15a. [VIATICAL SETTLEMENTS DATA.] Viatical settlements data provided to the commissioner of commerce are classified under section 60A.968, subdivision 2.

Sec. 11. Minnesota Statutes 1996, section 13.99, is amended by adding a subdivision to read:

Subd. 19k. [PREFERRED PROVIDER AGREEMENTS.] The terms and conditions of certain preferred provider agreements are classified in section 62E.13, subdivision 11.

Sec. 12. Minnesota Statutes 1996, section 13.99, is amended by adding a subdivision to read:

Subd. 19l. [MINNESOTA RISK ADJUSTMENT ASSOCIATION.] Data privacy issues concerning the Minnesota risk adjustment association are governed by section 62Q.03, subdivision 9.

Sec. 13. Minnesota Statutes 1996, section 13.99, subdivision 53b, is amended to read:

Subd. 53b. [VETERINARY RECORDS.] Veterinary records on clients when a veterinarian is under investigation are classified under section 156.082. Records on the veterinarian are classified under section 156.125.

Sec. 14. Minnesota Statutes 1996, section 13.99, is amended by adding a subdivision to read:

Subd. 59b. [IDENTITY OF EMPLOYEES MAKING COMPLAINTS.] The disclosure of the identity of employees making certain complaints is governed by section 181.932, subdivision 2.


Journal of the House - 29th Day - Top of Page 1437

Sec. 15. Minnesota Statutes 1996, section 13.99, is amended by adding a subdivision to read:

Subd. 63a. [REGISTERED VOTER LISTS.] Access to registered voter lists is governed by section 201.091.

Sec. 16. Minnesota Statutes 1996, section 13.99, is amended by adding a subdivision to read:

Subd. 95a. [MEDICAL EXAMINER INVESTIGATIONS.] Certain data on deceased persons collected or created by the Hennepin county medical examiner are classified under section 383B.225.

Sec. 17. Minnesota Statutes 1996, section 123.70, subdivision 5, is amended to read:

Subd. 5. If a person transfers from one elementary or secondary school to another, the person shall be allowed school board of a public school district or the administrator of a nonpublic school may allow the person up to a maximum of 30 days to submit one or more of the statements as specified in subdivision 1 or 3, during which time the person may enroll in and attend the school. If a person enrolls in a child care facility in which at least 75 percent of children in the facility participate on a one-time only or occasional basis to a maximum of 45 hours per child, per month, or is placed in a facility by a crisis nursery, the person shall be exempt from all requirements of this section for up to five consecutive days, starting from the first day of attendance.

Sec. 18. Minnesota Statutes 1996, section 123.70, subdivision 7, is amended to read:

Subd. 7. Each school or child care facility shall maintain on file immunization records for all persons in attendance that contain the information required by subdivisions 1, 2, and 3. The school shall maintain the records for at least five years after the person attains the age of majority. The department of health and the board of health, as defined in section 145A.02, subdivision 2, in whose jurisdiction the school or child care facility is located, shall have access to the files maintained pursuant to this subdivision. When a person transfers to another elementary or secondary school or child care facility, the administrator or other person having general control and supervision of the school or child care facility shall assist the person's parent or guardian in the transfer of the immunization file to the person's new school or child care facility within 30 days of the transfer. Upon the request of a public or private post-secondary educational institution, as defined in section 135A.14, the administrator or other person having general control or supervision of a school shall assist in the transfer of a student's immunization file to the post-secondary institution.

Sec. 19. Minnesota Statutes 1996, section 123.70, subdivision 10, is amended to read:

Subd. 10. A statement required to be submitted under subdivisions 1, 2, and 4 to document evidence of immunization shall include month, day, and year for immunizations administered after January 1, 1990.

(a) For persons enrolled in grades 7 and 12 during the 1996-1997 school term, the statement must indicate that the person has received a dose of tetanus and diphtheria toxoid no earlier than 11 years of age.

(b) Except as specified in paragraph (e), for persons enrolled in grades 7, 8, and 12 during the 1997-1998 school term, the statement must indicate that the person has received a dose of tetanus and diphtheria toxoid no earlier than 11 years of age.

(c) Except as specified in paragraph (e), for persons enrolled in grades 7, 8, 9, and through 12 during the 1998-1999 school term and for each year thereafter, the statement must indicate that the person has received a dose of tetanus and diphtheria toxoid no earlier than 11 years of age.

(d) for persons enrolled in grades 7, 8, 9, 10, and 12 during the 1999-2000 school term, the statement must indicate that the person has received a dose of tetanus and diphtheria toxoid no earlier than 11 years of age.

(e) for persons enrolled in grades 7 through 12 during the 2000-2001 school term and for each year thereafter, the statement must indicate that the person has received a dose of tetanus and diphtheria toxoid no earlier than 11 years of age.


Journal of the House - 29th Day - Top of Page 1438

(f) (d) For persons enrolled in grades 7 through 12 during the 1996-1997 school year and for each year thereafter, the statement must indicate that the person has received at least two doses of vaccine against measles, mumps, and rubella, given alone or separately and given not less than one month apart.

(e) A person who has received at least three doses of tetanus and diphtheria toxoids, with the most recent dose given after age six and before age 11, is not required to have additional immunization against diphtheria and tetanus until ten years have elapsed from the person's most recent dose of tetanus and diphtheria toxoid.

Sec. 20. Minnesota Statutes 1996, section 144.225, subdivision 2, is amended to read:

Subd. 2. [DATA ABOUT BIRTHS.] (a) Except as otherwise provided in this subdivision, data pertaining to the birth of a child, to a woman who was not married to the child's father when the child was conceived nor when the child was born, including the original certificate of birth and the certified copy, are confidential data. At the time of the birth of a child to a woman who was not married to the child's father when the child was conceived nor when the child was born, the mother may designate on the birth registration form whether data pertaining to the birth will be public data. Notwithstanding the designation of the data as confidential, it may be disclosed to a parent or guardian of the child, to the child when the child is 18 years of age or older, pursuant to a court order, or under paragraph (b).

(b) Unless the child is adopted, data pertaining to the birth of a child that are not accessible to the public become public data if 100 years have elapsed since the birth of the child who is the subject of the data, or as provided under section 13.10, whichever occurs first.

(c) If a child is adopted, data pertaining to the child's birth are governed by the provisions relating to adoption records, including sections 13.10, subdivision 5; 144.1761; 144.218, subdivision 1; and 259.89. The birth and death records of the commissioner of health shall be open to inspection by the commissioner of human services and it shall not be necessary for the commissioner of human services to obtain an order of the court in order to inspect records or to secure certified copies of them.

(d) The name and address of a mother under paragraph (a) and the child's date of birth may be disclosed to the county social services or public health member of a family services collaborative for purposes of providing services under section 121.8355. The county social services or public health member may disclose the data to a representative of the family services collaborative who is assisting them in providing services to the mother.

Sec. 21. Minnesota Statutes 1996, section 144.29, is amended to read:

144.29 [HEALTH RECORDS; CHILDREN OF SCHOOL AGE.]

It shall be the duty of every school nurse, school physician, school attendance officer, superintendent of schools, principal, teacher, and of the persons charged with the duty of compiling and keeping the school census records, to cause a permanent public health record to be kept for each child of school age. Such record shall be kept in such form that it may be transferred with the child to any school which the child shall attend within the state and transferred to the commissioner when the child ceases to attend school. It shall contain a record of such health matters as shall be prescribed by the commissioner, and of all mental and physical defects and handicaps which might permanently cripple or handicap the child student health data as defined in section 13.32, subdivision 2, paragraph (a), and shall be classified as private data as defined in section 13.32, subdivision 3. Nothing in sections 144.29 to 144.32 shall be construed to require any child whose parent or guardian objects in writing thereto to undergo a physical or medical examination or treatment. A copy shall be forwarded to the proper department of any state to which the child shall remove. Each district shall assign a teacher, school nurse, or other professional person to review, at the beginning of each school year, the health record of all pupils under the assignee's direction. Growth, results of vision and hearing screening, and findings obtained from health assessments must be entered periodically on the pupil's health record.

Sec. 22. Minnesota Statutes 1996, section 144.335, subdivision 3a, is amended to read:

Subd. 3a. [PATIENT CONSENT TO RELEASE OF RECORDS; LIABILITY.] (a) A provider, or a person who receives health records from a provider, may not release a patient's health records to a person without a signed and dated consent from the patient or the patient's legally authorized representative authorizing the release, unless the release is specifically authorized by law. Except as provided in paragraph (c) or (d), a consent is valid for one year or for a lesser period specified in the consent or for a different period provided by law.


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(b) This subdivision does not prohibit the release of health records:

(1) for a medical emergency when the provider is unable to obtain the patient's consent due to the patient's condition or the nature of the medical emergency; or

(2) to other providers within related health care entities when necessary for the current treatment of the patient.

(c) Notwithstanding paragraph (a), if a patient explicitly gives informed consent to the release of health records for the purposes and pursuant to the restrictions in clauses (1) and (2), the consent does not expire after one year for:

(1) the release of health records to a provider who is being advised or consulted with in connection with the current treatment of the patient;

(2) the release of health records to an accident and health insurer, health service plan corporation, health maintenance organization, or third-party administrator for purposes of payment of claims, fraud investigation, or quality of care review and studies, provided that:

(i) the use or release of the records complies with sections 72A.49 to 72A.505;

(ii) further use or release of the records in individually identifiable form to a person other than the patient without the patient's consent is prohibited; and

(iii) the recipient establishes adequate safeguards to protect the records from unauthorized disclosure, including a procedure for removal or destruction of information that identifies the patient.

(d) Notwithstanding paragraph (a), health records may be released to a researcher solely for purposes of medical or scientific research only as follows:

(1) health records generated before January 1, 1997, may be released if the patient has not objected or does not elect to object after that date;

(2) for health records generated on or after January 1, 1997, the provider must:

(i) disclose in writing to patients currently being treated by the provider that health records, regardless of when generated, may be released and that the patient may object, in which case the records will not be released; and

(ii) use reasonable efforts as defined in Minnesota Rules, part 1205.1400, subpart 4, item C, to obtain the patient's written general authorization that describes the release of records in item (i), which does not expire but may be revoked or limited in writing at any time by the patient or the patient's authorized representative; and

(3) the provider must, at the request of the patient, provide information on how the patient may contact an external researcher to whom the health record was released and the date it was released.

In making a release for research purposes the provider shall make a reasonable effort to determine that:

(i) the use or disclosure does not violate any limitations under which the record was collected;

(ii) the use or disclosure in individually identifiable form is necessary to accomplish the research or statistical purpose for which the use or disclosure is to be made;

(iii) the recipient has established and maintains adequate safeguards to protect the records from unauthorized disclosure, including a procedure for removal or destruction of information that identifies the patient; and

(iv) further use or release of the records in individually identifiable form to a person other than the patient without the patient's consent is prohibited.


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(e) A person who negligently or intentionally releases a health record in violation of this subdivision, or who forges a signature on a consent form, or who obtains under false pretenses the consent form or health records of another person, or who, without the person's consent, alters a consent form, is liable to the patient for compensatory damages caused by an unauthorized release, plus costs and reasonable attorney's fees.

(f) Upon the written request of a spouse, parent, child, or sibling of a patient being evaluated for or diagnosed with mental illness, a provider shall inquire of a patient whether the patient wishes to authorize a specific individual to receive information regarding the patient's current and proposed course of treatment. If the patient so authorizes, the provider shall communicate to the designated individual the patient's current and proposed course of treatment. Paragraph (a) applies to consents given under this paragraph.

(g) In cases where a provider releases health records without patient consent as authorized by law, the release must be documented in the patient's health record.

Sec. 23. Minnesota Statutes 1996, section 144.335, is amended by adding a subdivision to read:

Subd. 5b. [DESTRUCTION OF RECORDS ON DECEASED PATIENTS.] Except as provided in section 145.32, a provider may destroy health records on a patient if at least seven years have elapsed since the death of the patient.

Sec. 24. Minnesota Statutes 1996, section 201.091, subdivision 4, is amended to read:

Subd. 4. [PUBLIC INFORMATION LISTS.] The county auditor shall make available for inspection a public information list which must contain the name, address, year of birth, and voting history of each registered voter in the county, except as otherwise provided by this subdivision. The list shall omit the residence address of a licensed peace officer or a judge who requests the county auditor to omit the individual's residence address from the public information list. The telephone number must be included on the list if provided by the voter. The public information list may also include information on voting districts. The county auditor may adopt reasonable rules governing access to the list. No individual inspecting the public information list shall tamper with or alter it in any manner. No individual who inspects the public information list or who acquires a list of registered voters prepared from the public information list may use any information contained in the list for purposes unrelated to elections, political activities, or law enforcement. The secretary of state may provide copies of the public information lists and other information from the statewide registration system for uses related to elections, political activities, or in response to a law enforcement inquiry from a public official concerning a failure to comply with any criminal statute or any state or local tax statute.

Before inspecting the public information list or obtaining a list of voters or other information from the list, the individual shall provide identification to the public official having custody of the public information list and shall state in writing that any information obtained from the list will not be used for purposes unrelated to elections, political activities, or law enforcement. Requests to examine or obtain information from the public information lists or the statewide registration system must be made and processed in the manner provided in the rules of the secretary of state.

Upon receipt of a written request and a copy of the court order, the secretary of state may withhold from the public information list the name of any registered voter placed under court-ordered protection.

Sec. 25. [214.065] [WITHHOLDING ACCESS TO CERTAIN ADDRESSES AND TELEPHONE NUMBERS.]

(a) Notwithstanding section 13.41, subdivision 2 or 4, the health-related licensing boards may withhold the residence address and telephone number of an applicant or licensee if the applicant or licensee so requests.

(b) An applicant or licensee making a request under paragraph (a) shall include a designated alternate address and telephone number.

Sec. 26. Minnesota Statutes 1996, section 214.10, subdivision 1, is amended to read:

Subdivision 1. [RECEIPT OF COMPLAINT; NOTICE.] The executive director or executive secretary of a board, a board member or any other person who performs services for the board who receives a complaint or other communication, whether oral or written, which complaint or communication alleges or implies a violation of a statute or rule which the board


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is empowered to enforce, shall promptly forward the substance of the communication on a form prepared by the attorney general to the designee of the attorney general responsible for providing legal services to the board. Before proceeding further with the communication, the designee of the attorney general may require the complaining party to state the complaint in writing on a form prepared by the attorney general. Complaints which relate to matters within the jurisdiction of another governmental agency shall be forwarded to that agency by the executive director or executive secretary. An officer of that agency shall advise the executive director or executive secretary of the disposition of that complaint. A complaint received by another agency which relates to a statute or rule which a licensing board is empowered to enforce shall be forwarded to the executive director or executive secretary of the board to be processed in accordance with this section. No complaint alleging a matter within the jurisdiction of the board shall be dismissed by a board unless at least two board members have reviewed the matter. If a board makes a determination to investigate a complaint, it shall notify a licensee who is the subject of an investigation that an investigation has been initiated at a time when such notice will not compromise the investigation.

Sec. 27. Minnesota Statutes 1996, section 260.161, subdivision 1a, is amended to read:

Subd. 1a. [RECORD OF FINDINGS.] (a) The juvenile court shall forward to the bureau of criminal apprehension the following data in juvenile petitions involving felony- or gross misdemeanor-level offenses:

(1) the name and birthdate of the juvenile, including any of the juvenile's known aliases or street names;

(2) the act for which the juvenile was petitioned and date of the offense; and

(3) the date and county where the petition was filed.

(b) Upon completion of the court proceedings, the court shall forward the court's finding and case disposition to the bureau. Notwithstanding section 138.17, if the petition was dismissed or the juvenile was not found to have committed a gross misdemeanor or felony-level offense, the bureau and a person who received the data from the bureau shall destroy all data relating to the petition collected under paragraph (a). The bureau shall notify a person who received the data that the data must be destroyed.

(c) The bureau shall retain data on a juvenile found to have committed a felony- or gross misdemeanor-level offense until the offender reaches the age of 28. If the offender commits a felony violation as an adult, the bureau shall retain the data for as long as the data would have been retained if the offender had been an adult at the time of the juvenile offense. The court shall specify whether the:

(1) juvenile was referred to a diversion program;

(2) petition was dismissed, continued for dismissal, or continued without adjudication; or

(3) juvenile was adjudicated delinquent.

(d) (c) The juvenile court shall forward to the bureau, the sentencing guidelines commission, and the department of corrections the following data on individuals convicted as extended jurisdiction juveniles:

(1) the name and birthdate of the offender, including any of the juvenile's known aliases or street names;

(2) the crime committed by the offender and the date of the crime;

(3) the date and county of the conviction; and

(4) the case disposition.

The court shall notify the bureau, the sentencing guidelines commission, and the department of corrections whenever it executes an extended jurisdiction juvenile's adult sentence under section 260.126, subdivision 5.


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(e) (d) The bureau, sentencing guidelines commission, and the department of corrections shall retain the extended jurisdiction juvenile data for as long as the data would have been retained if the offender had been an adult at the time of the offense. Data retained on individuals under this subdivision are private data under section 13.02, except that extended jurisdiction juvenile data becomes public data under section 13.87, subdivision 2, when the juvenile court notifies the bureau that the individual's adult sentence has been executed under section 260.126, subdivision 5.

Sec. 28. Minnesota Statutes 1996, section 270.66, subdivision 3, is amended to read:

Subd. 3. [AGENCIES SHALL MAINTAIN RECORDS.] Notwithstanding any provision to the contrary, every person, organization, or corporation doing business (hereafter called vendor) with the state of Minnesota or any of its departments, agencies, or educational institutions including the University of Minnesota (all hereafter called agency) shall provide that agency with either their social security number, federal taxpayer identification number, or Minnesota tax identification number. The commissioner may verify to the agency the identifying information provided by a vendor. The agency shall maintain records of this information, and shall make these records available, on request, to the commissioner for the sole purpose of identifying people who have not filed state tax returns or who have not paid uncontested state tax liabilities (hereafter called delinquent taxpayer). When an agency is notified by the commissioner that a vendor is a delinquent taxpayer, payments shall not be made by the agency to the vendor until the commissioner notifies the agency that the vendor no longer is a delinquent taxpayer. Furthermore, if the vendor has an uncontested delinquent tax liability, the setoff provided in subdivision 1 may be implemented. The commissioner shall determine that a vendor no longer is a delinquent taxpayer when the vendor has filed all delinquent state tax returns, paid all uncontested state tax liabilities or entered into an agreement with the commissioner which provides for the payment of these liabilities.

Sec. 29. Minnesota Statutes 1996, section 270B.01, subdivision 8, is amended to read:

Subd. 8. [MINNESOTA TAX LAWS.] For purposes of this chapter only, "Minnesota tax laws" means the taxes, refunds, and fees administered by or paid to the commissioner under chapters 115B (except taxes imposed under sections 115B.21 to 115B.24), 289A (except taxes imposed under sections 298.01, 298.015, and 298.24), 290, 290A, 291, and 297A and sections 295.50 to 295.59, or any similar Indian tribal tax administered by the commissioner pursuant to any tax agreement between the state and the Indian tribal government, and includes any laws for the assessment, collection, and enforcement of those taxes, refunds, and fees.

Sec. 30. Minnesota Statutes 1996, section 270B.03, subdivision 1, is amended to read:

Subdivision 1. [WHO MAY INSPECT.] Returns and return information must, on written request, be made open to inspection by or disclosure to the data subject. For purposes of this chapter, the following are the data subject:

(1) in the case of an individual return, that individual;

(2) in the case of an income tax return filed jointly, either of the individuals with respect to whom the return is filed;

(3) in the case of a partnership return, any person who was a member of the partnership during any part of the period covered by the return;

(4) in the case of the return of a corporation or its subsidiary:

(i) any person designated by resolution of the board of directors or other similar governing body;

(ii) any officer or employee of the corporation upon written request signed by any officer and attested to by the secretary or another officer;

(iii) any bona fide shareholder of record owning one percent or more of the outstanding stock of the corporation;

(iv) if the corporation is a corporation that has made an election under section 1362 of the Internal Revenue Code of 1986, as amended through December 31, 1988, any person who was a shareholder during any part of the period covered by the return during which an election was in effect; or


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(v) if the corporation has been dissolved, any person authorized by state law to act for the corporation or any person who would have been authorized if the corporation had not been dissolved;

(5) in the case of an estate return:

(i) the personal representative or trustee of the estate; and

(ii) any heir at law, next of kin, or beneficiary of the estate, but only if the commissioner finds that the heir at law, next of kin, or beneficiary has a material interest that will be affected by information contained in the return;

(6) in the case of a trust return:

(i) the trustee or trustees, jointly or separately; and

(ii) any beneficiary of the trust, but only if the commissioner finds that the beneficiary has a material interest that will be affected by information contained in the return;

(7) if liability has been assessed to a transferee under section 289A.31, subdivision 3, the transferee is the data subject with regard to the returns and return information relating to the assessed liability;

(8) in the case of an Indian tribal government or an Indian tribal government-owned entity,

(i) the chair of the tribal government, or

(ii) any person authorized by the tribal government; and

(9) in the case of a successor as defined in section 270.102, subdivision 1, paragraph (b), the successor is the data subject and information may be disclosed as provided by section 270.102, subdivision 4.

Sec. 31. Minnesota Statutes 1996, section 270B.03, subdivision 3, is amended to read:

Subd. 3. [DECEASED INDIVIDUALS.] Notwithstanding section 13.10, a return filed by or on behalf of a decedent is open to inspection by or disclosure to:

(1) the personal representative of the decedent's estate or trustee appointed under section 573.02, subdivision 3, or a similar law of another state; and

(2) any heir at law, next of kin, or beneficiary under the will of the decedent, or a donee of property, but only if the commissioner finds that the heir at law, next of kin, beneficiary, or donee has a material interest that will be affected by information contained in the return a claimant under section 290A.18, subdivision 1.

Sec. 32. Minnesota Statutes 1996, section 270B.03, subdivision 4, is amended to read:

Subd. 4. [TITLE 11 OF THE UNITED STATES CODE AND RECEIVERSHIP PROCEEDINGS.] (a) If the commissioner finds that the trustee or receiver, in that person's fiduciary capacity, has a material interest that will be affected by information contained in the return, A return is open to inspection by or disclosure to the trustee or receiver if:

(1) there is a trustee in a title 11 (United States Bankruptcy Code) case in which the debtor is the person with respect to whom the return is filed; or

(2) substantially all of the property of the person with respect to whom the return is filed is in the hands of a receiver.

(b) In an involuntary bankruptcy case of an individual, no disclosure may be made under paragraph (a) until the order for relief has been entered by the court having jurisdiction of the case, unless the court finds that disclosure is appropriate for purposes of determining whether an order for relief should be entered.


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Sec. 33. Minnesota Statutes 1996, section 270B.08, subdivision 1, is amended to read:

Subdivision 1. [PERMIT INFORMATION.] The commissioner may disclose to any person making an inquiry regarding the issuance of a sales tax permit to a specific retailer whether a permit has been issued to the retailer, the name and address of the permit holder, the business name and location, the sales and use tax account number, and the date of issuance of the permit, and whether the permit has been canceled under section 297A.065.

Sec. 34. [270B.081] [SALES TAX EXEMPTION CERTIFICATES.]

The commissioner may disclose to any person making inquiry regarding the issuance of direct pay permits or certificates of exemption issued by the commissioner to a taxpayer whether the permit or certificate has been issued to the taxpayer, the business name and location, the permit or certificate number, the date of issuance of the permit or certificate, and whether the certificate is currently valid.

Sec. 35. Minnesota Statutes 1996, section 270B.085, subdivision 1, is amended to read:

Subdivision 1. [SEIZURE INFORMATION.] Following the execution of a writ of entry under section 16D.08, subdivision 2, or 270.70, the commissioner may disclose information identifying the individual or business subject to the writ, the basis for the writ, and the results of the execution, including lists of property seized.

Sec. 36. Minnesota Statutes 1996, section 270B.09, is amended to read:

270B.09 [CONTRACTS WITH THE STATE; SETOFF.]

The commissioner may disclose to the department of finance or any state agency or political or governmental subdivision of the state making payment to a vendor as described in section 270.66 or a contractor or subcontractor as described in section 290.97 whether the vendor, contractor, or subcontractor has an uncontested delinquent tax liability owed to the commissioner and the amount of any liability. The commissioner may also disclose taxpayer identity information to the department of finance, to the department of human services, to an agency requesting verification pursuant to section 270.66, subdivision 3, and to the University of Minnesota, solely for vendor setoff purposes.

Sec. 37. Minnesota Statutes 1996, section 270B.12, subdivision 7, is amended to read:

Subd. 7. [LOTTERY DIVISION.] (a) The commissioner of revenue may disclose to the lottery the amount of delinquent state taxes, or debt as defined in section 270A.03, subdivision 5, of a winner of a lottery prize of $1,000 $600 or more, to the extent necessary to administer section 349A.08, subdivision 8.

(b) The commissioner of revenue may disclose to the lottery division that a retailer owes $500 or more in delinquent taxes as defined in section 270.72, to the extent necessary to administer section 349A.06, subdivision 2.

Sec. 38. Minnesota Statutes 1996, section 270B.14, subdivision 1, is amended to read:

Subdivision 1. [DISCLOSURE TO COMMISSIONER OF HUMAN SERVICES.] (a) On the request of the commissioner of human services, the commissioner shall disclose return information regarding taxes imposed by chapter 290, and claims for refunds under chapter 290A, to the extent provided in paragraph (b) and for the purposes set forth in paragraph (c).

(b) Data that may be disclosed are limited to data relating to the identity, whereabouts, employment, income, and property of a person owing or alleged to be owing an obligation of child support.

(c) The commissioner of human services may request data only for the purposes of carrying out the child support enforcement program and to assist in the location of parents who have, or appear to have, deserted their children. Data received may be used only as set forth in section 256.978.

(d) The commissioner shall provide the records and information necessary to administer the supplemental housing allowance to the commissioner of human services.


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(e) At the request of the commissioner of human services, the commissioner of revenue shall electronically match the social security numbers and names of participants in the telephone assistance plan operated under sections 237.69 to 237.711, with those of property tax refund filers, and determine whether each participant's household income is within the eligibility standards for the telephone assistance plan.

(f) The commissioner may provide records and information collected under sections 295.50 to 295.59 to the commissioner of human services for purposes of the Medicaid Voluntary Contribution and Provider-Specific Tax Amendments of 1991, Public Law Number 102-234. Upon the written agreement by the United States Department of Health and Human Services to maintain the confidentiality of the data, the commissioner may provide records and information collected under sections 295.50 to 295.59 to the Health Care Financing Administration section of the United States Department of Health and Human Services for purposes of meeting federal reporting requirements.

(g) The commissioner may provide records and information to the commissioner of human services as necessary to administer the early refund of refundable tax credits.

(h) The commissioner may disclose information to the commissioner of human services necessary to verify income for eligibility and premium payment under the MinnesotaCare program, pursuant to section 256.9355, subdivision 2.

Sec. 39. Minnesota Statutes 1996, section 270B.14, is amended by adding a subdivision to read:

Subd. 15. [DISCLOSURE TO COMMISSIONER OF THE POLLUTION CONTROL AGENCY.] For purposes of administering and enforcing the dry cleaning and environmental response and reimbursement law of sections 115B.47 to 115B.51, the commissioner may disclose to the commissioner of the pollution control agency the names and addresses of the facilities, owners, and operators collected by the commissioner under section 115B.49, subdivision 4.

Sec. 40. Minnesota Statutes 1996, section 270B.14, is amended by adding a subdivision to read:

Subd. 16. [DISCLOSURE TO LAW ENFORCEMENT AUTHORITIES.] Under circumstances involving threat of death or physical injury to any individual, the commissioner may disclose return information to the extent necessary to apprise appropriate federal, state, or local law enforcement authorities of such circumstances. Data disclosed under this subdivision are classified under section 13.82 once they are received by the law enforcement authority.

Sec. 41. Minnesota Statutes 1996, section 270B.16, is amended to read:

270B.16 [DISCOVERY OF REVENUE DATA.]

Notwithstanding any law to the contrary, data collected by the department of revenue are not subject to discovery or subpoena in a legal action, other than an action or proceeding in connection with tax administration, unless disclosure of the data is authorized under this chapter.

Sec. 42. Minnesota Statutes 1996, section 287.34, is amended to read:

287.34 [VIOLATIONS.]

Any person who in any manner knowingly intentionally attempts to evade the a tax imposed by sections 287.21 to 287.33 this chapter, or who knowingly intentionally aids or abets in the evasion or attempted evasion of the such tax or who knowingly violates the provisions of sections 287.21 to 287.33 shall be guilty of a gross misdemeanor.

Sec. 43. Minnesota Statutes 1996, section 299C.095, is amended to read:

299C.095 [SYSTEM FOR IDENTIFICATION OF JUVENILE OFFENDERS.]

Subdivision 1. [ACCESS.] (a) The bureau shall administer and maintain the computerized juvenile history record system based on section 260.161 and other statutes requiring the reporting of data on juveniles. The data in the system are private data as defined in section 13.02, subdivision 12, but are accessible to criminal justice agencies as defined in section 13.02, subdivision 3a, to all trial courts and appellate courts, to a person who has access to the juvenile court records as provided in section 260.161 or under court rule and to criminal justice agencies in other states in the conduct of their official duties.


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(b) Except for access authorized under paragraph (a), the bureau shall only disseminate a juvenile adjudication history record in connection with a background check required by statute or rule and performed on a licensee, license applicant, or employment applicant or performed under section 624.713. A consent for release of information from an individual who is the subject of a juvenile adjudication history is not effective and the bureau shall not release a juvenile adjudication history record and shall not release information in a manner that reveals the existence of the record.

Subd. 2. [RETENTION.] (a) Notwithstanding section 138.17, the bureau shall retain juvenile history records for the time periods provided in this subdivision. Notwithstanding contrary provisions of paragraphs (b) to (e), all data in a juvenile history record must be retained for the longest time period applicable to any item in the individual juvenile history record. If, before data are destroyed under this subdivision, the subject of the data is convicted of a felony as an adult, the individual's juvenile history record must be retained for the same time period as an adult criminal history record.

(b) Juvenile history data on a child who was arrested must be destroyed six months after the arrest if the child has not been referred to a diversion program and no petition has been filed against the child by that time.

(c) Juvenile history data on a child against whom a delinquency petition was filed and subsequently dismissed must be destroyed upon receiving notice from the court that the petition was dismissed.

(d) Juvenile history data on a child who was referred to a diversion program or against whom a delinquency petition has been filed and continued for dismissal must be destroyed when the child reaches age 21.

(e) Juvenile history data on a child against whom a delinquency petition was filed and continued without adjudication, or a child who was found to have committed a felony or gross misdemeanor-level offense, must be destroyed when the child reaches age 28. If the offender commits a felony violation as an adult, the bureau shall retain the data for as long as the data would have been retained if the offender had been an adult at the time of the juvenile offense.

(f) The bureau shall retain extended jurisdiction juvenile data on an individual received under section 260.161, subdivision 1a, paragraph (c), for as long as the data would have been retained if the offender had been an adult at the time of the offense.

(g) Data retained on individuals under this subdivision are private data under section 13.02, except that extended jurisdiction juvenile data becomes public data under section 13.87, subdivision 2, when the juvenile court notifies the bureau that the individual's adult sentence has been executed under section 260.126, subdivision 5.

(h) A person who receives data on a juvenile under paragraphs (b) to (e) from the bureau shall destroy the data according to the schedule in this subdivision. The bureau shall include a notice of the destruction schedule with all data it disseminates on juveniles.

Sec. 44. Minnesota Statutes 1996, section 299C.10, subdivision 1, is amended to read:

Subdivision 1. [LAW ENFORCEMENT DUTY.] (a) It is hereby made the duty of the sheriffs of the respective counties, of the police officers in cities of the first, second, and third classes, under the direction of the chiefs of police in such cities, and of community corrections agencies operating secure juvenile detention facilities to take or cause to be taken immediately finger and thumb prints, photographs, distinctive physical mark identification data, and such other identification data as may be requested or required by the superintendent of the bureau; of all the following:

(1) persons arrested for a felony, or gross misdemeanor, of all;

(2) juveniles committing felonies as distinguished from those committed by adult offenders, of all;

(3) persons reasonably believed by the arresting officer to be fugitives from justice, of all;

(4) persons in whose possession, when arrested, are found concealed firearms or other dangerous weapons, burglar tools or outfits, high-power explosives, or articles, machines, or appliances usable for an unlawful purpose and reasonably believed by the arresting officer to be intended for such purposes,; and

(5) juveniles referred by a law enforcement agency to a diversion program for a felony or gross misdemeanor offense.


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Within 24 hours thereafter to forward such the fingerprint records and other identification data specified under this paragraph must be forwarded to the bureau of criminal apprehension on such forms and in such manner as may be prescribed by the superintendent of the bureau of criminal apprehension.

(b) Effective August 1, 1997, the identification reporting requirements shall also apply to persons committing targeted misdemeanor offenses, including violent and enhanceable crimes, and juveniles committing gross misdemeanors. In addition, the reporting requirements shall include any known aliases or street names of the offenders.

For purposes of this section, a targeted misdemeanor is a misdemeanor violation of section 169.121 (driving while intoxicated); 518B.01 (order for protection violation); 609.224 (fifth degree assault); 609.2242 (domestic assault); 609.746 (interference with privacy); 609.748 (harassment or restraining order violation); or 617.23 (indecent exposure).

Sec. 45. Minnesota Statutes 1996, section 299C.13, is amended to read:

299C.13 [INFORMATION FURNISHED TO PEACE OFFICERS.]

Upon receipt of information data as to any arrested person, the bureau shall immediately ascertain whether the person arrested has a criminal record or is a fugitive from justice, and shall at once inform the arresting officer of the facts ascertained, including references to any adult court disposition data that is not in the criminal history system. Upon application by any sheriff, chief of police, or other peace officer in the state, or by an officer of the United States or by an officer of another state, territory, or government duly authorized to receive the same and effecting reciprocal interchange of similar information with the division, it shall be the duty of the bureau to furnish all information in its possession pertaining to the identification of any person. If the bureau has a sealed record on the arrested person, it shall notify the requesting peace officer of that fact and of the right to seek a court order to open the record for purposes of law enforcement. A criminal justice agency shall be notified, upon request, of the existence and contents of a sealed record containing conviction information about an applicant for employment. For purposes of this section a "criminal justice agency" means courts or a government agency that performs the administration of criminal justice under statutory authority.

Sec. 46. [PUBLIC DEFENDER ACCESS TO CRIMINAL HISTORY DATA.]

The criminal and juvenile justice information policy group shall facilitate remote electronic access to public criminal history data by public defenders.

Sec. 47. [REPEALER.]

Minnesota Statutes 1996, sections 13.072, subdivision 3; 13.71, subdivisions 18, 19, 20, and 21; and 13.99, subdivision 21d, are repealed.

Sec. 48. [EFFECTIVE DATE.]

Sections 28 to 41 are effective the day following final enactment. Section 42 is effective for deeds executed and delivered, and mortgages submitted for recording, on or after July 1, 1997."

Delete the title and insert:

"A bill for an act relating to government data practices; making certain welfare and housing data available to law enforcement agencies; requiring certain criminal conviction data to be available through the Internet; eliminating the requirement that government agencies pay a fee for commissioner's opinions; modifying access to the identity of unmarried mothers by family services collaboratives; modifying school immunization and health record provisions; modifying patient consent to release of records for research; authorizing destruction of records of deceased patients; allowing certain voters to prevent public dissemination of their residence addresses; requiring notice of investigations to health board licensees; providing for retention of juvenile history records; providing for misdemeanor offense reports and access to certain adult criminal history data; providing for disclosure or inspection of certain tax data or return information; limiting disclosure of certain tax data under subpoena; providing criminal penalties; amending Minnesota Statutes 1996, sections 13.41, by adding a subdivision; 13.46, subdivision 2; 13.54, by adding a subdivision; 13.65, subdivision 2; 13.87, subdivision 2; 13.99,


Journal of the House - 29th Day - Top of Page 1448

subdivision 53b, and by adding subdivisions; 123.70, subdivisions 5, 7, and 10; 144.225, subdivision 2; 144.29; 144.335, subdivision 3a, and by adding a subdivision; 201.091, subdivision 4; 214.10, subdivision 1; 260.161, subdivision 1a; 270.66, subdivision 3; 270B.01, subdivision 8; 270B.03, subdivisions 1, 3, and 4; 270B.08, subdivision 1; 270B.085, subdivision 1; 270B.09; 270B.12, subdivision 7; 270B.14, subdivision 1, and by adding subdivisions; 270B.16; 287.34; 299C.095; 299C.10, subdivision 1; and 299C.13; proposing coding for new law in Minnesota Statutes, chapters 214; and 270B; repealing Minnesota Statutes 1996, sections 13.072, subdivision 3; 13.71, subdivisions 18, 19, 20, and 21; and 13.99, subdivision 21d."

With the recommendation that when so amended the bill pass.

The report was adopted.

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

H. F. No. 1464, A bill for an act relating to utilities; authorizing municipal and cooperative utilities to form joint ventures for the provision of utility services; proposing coding for new law as Minnesota Statutes, chapter 453B; repealing Laws 1996, chapter 300, section 1.

Reported the same back with the following amendments:

Page 4, after line 11, insert:

"Nothing in this section shall be construed to supersede or affect:

(1) the power of a city council conferred by charter to overrule or override any action of a governing body;

(2) section 216B.42; or

(3) any referendum requirements applicable to the creation of a municipal utility, or the acquisition of utility property, under sections 216B.46, 237.19, and 412.321."

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. 1489, A bill for an act relating to tort liability; municipalities; clarifying the liability for torts of officers, employees, and agents; amending Minnesota Statutes 1996, sections 466.02; and 466.04, subdivisions 1 and 3.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 1996, section 3.736, subdivision 4, is amended to read:

Subd. 4. [LIMITS.] The total liability of the state and its employees acting within the scope of their employment on any tort claim shall not exceed:

(a) $200,000 $300,000 when the claim is one for death by wrongful act or omission and $200,000 $300,000 to any claimant in any other case;


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(b) $600,000 $750,000 for any number of claims arising out of a single occurrence, for claims arising on or after January 1, 1998, and before January 1, 2000; or

(c) $1,000,000 for any number of claims arising out of a single occurrence, for claims arising on or after January 1, 2000.

If the amount awarded to or settled upon multiple claimants exceeds $600,000 the applicable limit under clause (b) or (c), any party may apply to the district court to apportion to each claimant a proper share of the $600,000 amount available under the applicable limit under clause (b) or (c). The share apportioned to each claimant shall be in the proportion that the ratio of the award or settlement bears to the aggregate awards and settlements for all claims arising out of the occurrence.

The limitation imposed by this subdivision on individual claimants includes damages claimed for loss of services or loss of support arising out of the same tort.

Sec. 2. Minnesota Statutes 1996, section 466.04, subdivision 1, is amended to read:

Subdivision 1. [LIMITS; PUNITIVE DAMAGES.] (a) Liability of any municipality on any claim within the scope of sections 466.01 to 466.15 shall not exceed:

(1) $200,000 $300,000 when the claim is one for death by wrongful act or omission and $200,000 $300,000 to any claimant in any other case;

(2) $600,000 $750,000 for any number of claims arising out of a single occurrence, for claims arising on or after January 1, 1998, and before January 1, 2000; or

(3) $1,000,000 for any number of claims arising out of a single occurrence, for claims arising on or after January 1, 2000; or

(4) twice the limits provided in clauses (1) and (2) to (3) when the claim arises out of the release or threatened release of a hazardous substance, whether the claim is brought under sections 115B.01 to 115B.15 or under any other law.

(b) No award for damages on any such claim shall include punitive damages.

Sec. 3. Minnesota Statutes 1996, section 466.04, subdivision 3, is amended to read:

Subd. 3. [DISPOSITION OF MULTIPLE CLAIMS.] Where the amount awarded to or settled upon multiple claimants exceeds $600,000 the applicable limit under subdivision 1, clauses (2) to (4), any party may apply to any district court to apportion to each claimant a proper share of the total amount limited by subdivision 1. The share apportioned each claimant shall be in the proportion that the ratio of the award or settlement made to each bears to the aggregate awards and settlements for all claims arising out of the occurrence.

Sec. 4. [EFFECTIVE DATE.]

Sections 1 to 3 are effective January 1, 1998, for claims arising from acts or omissions taking place on or after that date."

Delete the title and insert:

"A bill for an act relating to claims against governmental units; increasing tort liability limits; amending Minnesota Statutes 1996, sections 3.736, subdivision 4; and 466.04, subdivisions 1 and 3."

With the recommendation that when so amended the bill pass.

The report was adopted.


Journal of the House - 29th Day - Top of Page 1450

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

H. F. No. 1499, A bill for an act relating to gambling; modifying the combined receipts tax schedule; amending Minnesota Statutes 1996, section 297E.02, subdivision 6.

Reported the same back with the following amendments:

Page 1, after line 5, insert:

"Section 1. Minnesota Statutes 1996, section 289A.20, subdivision 4, is amended to read:

Subd. 4. [SALES AND USE TAX.] (a) The taxes imposed by chapter 297A are due and payable to the commissioner monthly on or before the 20th day of the month following the month in which the taxable event occurred or following another reporting period as the commissioner prescribes, except that use taxes due on an annual use tax return as provided under section 289A.11, subdivision 1, are payable by April 15 following the close of the calendar year.

(b) A vendor having a liability of $120,000 or more during a fiscal year ending June 30 must remit the June liability for the next year in the following manner:

(1) Two business days before June 30 of the year, the vendor must remit 75 percent of the estimated June liability to the commissioner.

(2) On or before August 14 of the year, the vendor must pay any additional amount of tax not remitted in June.

(c) A vendor having a liability of $120,000 or more during a fiscal year ending June 30 must remit all liabilities in the subsequent calendar year by means of a funds transfer as defined in section 336.4A-104, paragraph (a). The funds transfer payment date, as defined in section 336.4A-401, must be on or before the 14th day of the month following the month in which the taxable event occurred, except for 75 percent of the estimated June liability, which is due two business days before June 30. The remaining amount of the June liability is due on August 14. If the date the tax is due is not a funds transfer business day, as defined in section 336.4A-105, paragraph (a), clause (4), the payment date must be on or before the funds transfer business day next following the date the tax is due.

(d) If the vendor required to remit by electronic funds transfer as provided in paragraph (c) is unable due to reasonable cause to determine the actual sales and use tax due on or before the due date for payment, the vendor may remit an estimate of the tax owed using one of the following options:

(1) 100 percent of the tax reported on the previous month's sales and use tax return;

(2) 100 percent of the tax reported on the sales and use tax return for the same month in the previous calendar year; or

(3) 95 percent of the actual tax due.

Any additional amount of tax that is not remitted on or before the due date for payment, must be remitted with the return. If a vendor fails to remit the actual liability or does not remit using one of the estimate options by the due date for payment, the vendor must remit actual liability as provided in paragraph (c) in all subsequent periods. This paragraph does not apply to the June sales and use tax liability.

(e) Notwithstanding paragraph (a), the taxes imposed by chapter 297A on sales of gambling equipment as defined in section 349.12, subdivision 18, are due and payable to the commissioner monthly on or before the fifth day of the second month following the month in which the taxable event occurred.

Sec. 2. Minnesota Statutes 1996, section 297E.02, subdivision 3, is amended to read:

Subd. 3. [COLLECTION; DISPOSITION.] Taxes imposed by this section are due and payable to the commissioner when the gambling tax return is required to be filed. Returns covering the taxes imposed under this section must be filed with the commissioner on or before the 20th fifth day of the second month following the close of the previous calendar month. The


Journal of the House - 29th Day - Top of Page 1451

commissioner may require that the returns be filed via magnetic media or electronic data transfer. The proceeds, along with the revenue received from all license fees and other fees under sections 349.11 to 349.191, 349.211, and 349.213, must be paid to the state treasurer for deposit in the general fund."

Page 2, after line 19, insert:

"Sec. 4. Minnesota Statutes 1996, section 349.191, subdivision 1b, is amended to read:

Subd. 1b. [CREDIT AND SALES TO DELINQUENT DISTRIBUTORS.] (a) If a manufacturer does not receive payment in full from a distributor within 30 35 days of the delivery of gambling equipment, the manufacturer must notify the board in writing of the delinquency.

(b) If a manufacturer who has notified the board under paragraph (a) has not received payment in full from the distributor within 60 days of the notification under paragraph (a), the manufacturer must notify the board of the continuing delinquency.

(c) On receipt of a notice under paragraph (a), the board shall order all manufacturers that until further notice from the board, they may sell gambling equipment to the delinquent distributor only on a cash basis with no credit extended. On receipt of a notice under paragraph (b), the board shall order all manufacturers not to sell any gambling equipment to the delinquent distributor.

(d) No manufacturer may extend credit or sell gambling equipment to a distributor in violation of an order under paragraph (c) until the board has authorized such credit or sale."

Page 2, line 21, delete "1" and insert "3"

Renumber the sections in sequence

Amend the title as follows:

Page 1, line 2, after the semicolon, insert "providing for the payment of certain taxes; regulating gambling equipment sales;"

Page 1, delete line 4 and insert "sections 289A.20, subdivision 4; 297E.02, subdivisions 3 and 6; and 349.191, subdivision 1b."

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

The report was adopted.

Skoglund from the Committee on Judiciary to which was referred:

H. F. No. 1516, A bill for an act relating to nuisance; providing mediation in the housing calendar program; providing a lessor and lessee covenant against unlawful activity on residential premises; providing an expedited process for certain unlawful detainer actions; imposing civil penalties; appropriating money; amending Minnesota Statutes 1996, sections 504.181, subdivision 1; 566.05; 566.18, subdivision 6; 617.82; and 617.85; proposing coding for new law in Minnesota Statutes, chapter 484.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. [484.014] [HOUSING CALENDAR MEDIATION.]

Subdivision 1. [SCOPE.] A mediation program is established in the housing calendar program to address disputes over nonpayment of rent and other breaches of a lease not involving a violation of covenants under section 504.181.


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Subd. 2. [PROCEDURE.] (a) A landlord or tenant may initiate mediation under this section by sending a first class letter with return receipt to the other party, describing the dispute and requesting that the other party agree to attempt to resolve the dispute through mediation. If the other party agrees to mediate the dispute, either party may contact the housing court administrator to schedule a mediation session with a referee or a qualified mediator within seven days of the date of the request. The clerk shall issue a notice of mediation stating the date, time, and place for the mediation session. The clerk shall serve notice of the mediation session on the other party by first class mail with return receipt. The notice of mediation must advise that the party may want to consult with an attorney before the mediation session and that the proceedings will not appear on a public record maintained by a state agency. The court administrator must also provide information about available legal services if a party is unable to afford an attorney.

(b) The court administrator may charge a filing fee in the amount of the conciliation court filing fee.

(c) Upon agreement, the parties may request that the court reschedule the mediation session.

(d) If either party fails to appear, the mediation session shall be canceled, and if the appearing party files a subsequent action in district court based on the same factual dispute, the party's filing fee for that action shall be reduced by the fee paid under paragraph (b).

Subd. 3. [EFFECT OF AGREEMENT; BREACH.] (a) If the parties reach an agreement through mediation, it must be put in writing and each party must be provided with copies of the agreement. The original shall be retained on file with the court. To be enforceable by the court, the agreement must:

(1) be signed by all parties and the mediator;

(2) specify each party's obligations under the terms of the agreement and also specify the remedies each party agrees to in the event a party fails to comply with the terms of the agreement;

(3) include the mailing address for each party and state that an agreement may be sent to each of them at that address by first class mail;

(4) not contain any agreement that would waive or modify the covenants in section 504.18 or that would violate local, state, or federal law; and

(5) be reviewed in the parties' presence by a referee or judge.

The agreement shall be approved if it is found to be the agreement of the parties and complies with this subdivision.

(b) If either party fails to comply with the terms of the agreement, the other party may file with the court administrator the agreement and an affidavit specifying the alleged breach and the relief requested. Upon filing the mediation agreement and affidavit, the court administrator shall schedule a hearing not less than ten nor more than 14 days from the date the agreement and affidavit were filed. The notice of hearing must state that failure to appear at the hearing may result in a court order being entered for the relief requested in the affidavit.

(c) The party requesting the hearing must serve the affidavit and notice of hearing on the other party by first class mail with return receipt or by personal service in the manner provided in the rules of civil procedure for personal service of a summons of the district court. An affidavit of service must be filed with the court prior to the hearing to enforce the agreement.

(d) The hearing shall be conducted by the court without a jury. The court may not enforce or require performance of any terms in the mediation agreement that violate federal, state, or local law. Upon finding that one or both parties failed to perform as required by the enforceable terms of the agreement, the court may enter an order for the relief requested, or other relief it finds would be in the interests of justice.


Journal of the House - 29th Day - Top of Page 1453

Sec. 2. Minnesota Statutes 1996, section 504.181, subdivision 1, is amended to read:

504.181 [COVENANT OF LESSOR AND LESSEE NOT TO ALLOW DRUGS UNLAWFUL ACTIVITIES.]

Subdivision 1. [COVENANT NOT TO ALLOW DRUGS TERMS OF COVENANT.] In every lease or license of residential premises, whether in writing or parol, the lessor or licensor and the lessee or licensee covenants covenant that:

(1) the lessee or licensee neither will not:

(i) unlawfully allow controlled substances in those premises or in the common area and curtilage of the premises;

(ii) allow prostitution or prostitution-related activity as defined in section 617.80, subdivision 4, to occur on the premises or in the common area and curtilage of the premises; or

(iii) allow the unlawful use or possession of a firearm in violation of section 609.66, subdivision 1a, 609.67, or 624.713, on the premises or in the common area and curtilage of the premises; and

(2) the common area and curtilage of the premises will not be used by either the lessor or licensor or the lessee or licensee or others acting under the lessee's or licensee's control of either to manufacture, sell, give away, barter, deliver, exchange, distribute, purchase, or possess a controlled substance in violation of any criminal provision of chapter 152.

The covenant is not violated when a person other than the lessor or licensor or the lessee or licensee possesses or allows controlled substances in the premises, common area, or curtilage, unless the lessor or licensor or the lessee or licensee knew or had reason to know of that activity.

Sec. 3. Minnesota Statutes 1996, section 566.05, is amended to read:

566.05 [COMPLAINT AND SUMMONS.]

(a) The person complaining shall file a complaint with the court, stating the full name and date of birth of the person against whom the complaint is made, unless it is not known, describing the premises of which possession is claimed, stating the facts which authorize the recovery, and praying for restitution thereof. The lack of the full name and date of birth of the person against whom the complaint is made does not deprive the court of jurisdiction or make the complaint invalid. The court shall issue a summons, commanding the person against whom the complaint is made to appear before the court on a day and at a place stated in the summons. The appearance shall be not less than seven nor more than 14 days from the day of issuing the summons. In scheduling appearances under this section, the court shall give priority to any unlawful detainer brought under section 504.181, or on the basis that the tenant is causing a nuisance or seriously endangers the safety of other residents, their property, or the landlord's property, except as provided by paragraph (b). A copy of the complaint shall be attached to the summons, which shall state that the copy is attached and that the original has been filed.

(b) In an unlawful detainer action brought under section 504.181 or on the basis that the tenant is causing a nuisance or other illegal behavior that seriously endangers the safety of other residents, their property, or the landlord's property, the person filing the complaint shall file an affidavit stating specific facts and instances in support of why an expedited hearing is required. The complaint and affidavit shall be reviewed by a referee or judge and scheduled for an expedited hearing only if sufficient supporting facts are stated and they meet the requirements of this paragraph. The appearance in an expedited hearing shall be not less than five days nor more than seven days from the date the summons is issued. If the court determines that the person seeking an expedited hearing did so without sufficient basis under the requirements of this paragraph, the court shall impose a civil penalty of up to $500 for abuse of the expedited hearing process.

Sec. 4. Minnesota Statutes 1996, section 566.09, subdivision 1, is amended to read:

Subdivision 1. [GENERAL.] If the court or jury finds for the plaintiff, or the court orders a writ of restitution to issue under section 484.014, subdivision 3, the court shall immediately enter judgment that the plaintiff have restitution of the premises and tax the costs for the plaintiff. The court shall issue execution in favor of the plaintiff for the costs and also immediately issue a writ of restitution. The court shall give priority in issuing a writ of restitution for any unlawful detainer


Journal of the House - 29th Day - Top of Page 1454

brought under section 504.181 or on the basis that the tenant is causing a nuisance or seriously endangers the safety of other residents, their property, or the landlord's property. Except in actions brought under (1) section 566.02 as required by section 609.5317, subdivision 1, (2) under section 504.181, or (3) on the basis that the tenant is causing a nuisance or seriously endangers the safety of other residents, their property, or the landlord's property, upon a showing by the defendant that immediate restitution of the premises would work a substantial hardship upon the defendant or the defendant's family, the court shall stay the writ of restitution for a reasonable period, not to exceed seven days. If the court or jury finds for the defendant, the court shall enter judgment for the defendant, tax the costs against the plaintiff, and issue execution therefor.

Sec. 5. Minnesota Statutes 1996, section 566.18, subdivision 6, is amended to read:

Subd. 6. [VIOLATION.] "Violation" means:

(a) a violation of any state, county or city health, safety, housing, building, fire prevention, or housing maintenance code applicable to the building;

(b) a violation of any of the covenants set forth in section 504.18, subdivision 1, clauses (a) or (b), or in section 504.181, subdivision 1;

(c) a violation of an oral or written agreement, lease or contract for the rental of a dwelling in a building.

Sec. 6. Minnesota Statutes 1996, section 617.82, is amended to read:

617.82 [AGREED ABATEMENT PLANS; TEMPORARY ORDER.]

(a) If the recipient of a notice under section 617.81, subdivision 4, either abates the conduct constituting a nuisance or enters into an agreed abatement plan within 30 days of service of the notice, and complies with the agreement within the stipulated time period, the prosecuting attorney may not file a nuisance action on the specified property regarding the nuisance activity described in the notice.

(b) If the recipient fails to comply with the agreed abatement plan, the prosecuting attorney may initiate a complaint for relief in the district court consistent with paragraph (c).

(c) Whenever a prosecuting attorney has cause to believe that a nuisance described in section 617.81, subdivision 2, exists within the jurisdiction the attorney serves, the prosecuting attorney may by verified petition seek a temporary injunction in district court in the county in which the alleged public nuisance exists, provided that at least 30 days have expired since service of the notice required under section 617.81, subdivision 4. No temporary injunction may be issued without a prior show cause notice of hearing to the respondents named in the petition and an opportunity for the respondents to be heard. Upon proof of a nuisance described in section 617.81, subdivision 2, the court shall issue a temporary injunction. Any temporary injunction issued must describe the conduct to be enjoined.

Sec. 7. Minnesota Statutes 1996, section 617.85, is amended to read:

617.85 [NUISANCE; MOTION TO CANCEL LEASE.]

Where notice is provided under section 617.81, subdivision 4, that an abatement of a nuisance is sought and the circumstances that are the basis for the requested abatement involved the acts of a commercial or residential tenant or lessee of part or all of a building, the owner of the building that is subject to the abatement proceeding may file before the court that has jurisdiction over the abatement proceeding a motion to cancel the lease or otherwise secure restitution of the premises from the tenant or lessee who has maintained or conducted the nuisance. The owner may assign to the prosecuting attorney the right to file this motion. In addition to the grounds provided in chapter 566, the maintaining or conducting of a nuisance as defined in section 617.81, subdivision 2, by a tenant or lessee, is an additional ground authorized by law for seeking the cancellation of a lease or the restitution of the premises. Service of motion brought under this section must be served in a manner that is sufficient under Rule 3 of the Rules of Civil Procedure and chapter 566.

It is no defense to a motion under this section by the owner or the prosecuting attorney that the lease or other agreement controlling the tenancy or leasehold does not provide for eviction or cancellation of the lease upon the ground provided in this section.


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Upon a finding by the court that the tenant or lessee has maintained or conducted a nuisance in any portion of the building, the court shall order cancellation of the lease or tenancy and grant restitution of the premises to the owner. The court must not order abatement of the premises if the court:

(a) cancels a lease or tenancy and grants restitution of that portion of the premises to the owner; and

(b) further finds that the acts constituting the nuisance as defined in section 617.81, subdivision 2, were committed by the tenant or lessee whose lease or tenancy has been canceled pursuant to this section and the tenant or lessee was not committing the acts in conjunction with or under the control of the owner.

Sec. 8. [LANDLORD TENANT RESPONSIBILITIES PILOT PROJECT; PURPOSE.]

(a) The purpose of the landlord tenant responsibilities pilot project is to improve the education of landlords and tenants on best practices in the rental market.

(b) The pilot shall include the development of a training course for landlords and managers of small rental properties, development of community standards for landlords and tenants of residential rental properties, development of curriculum for high school seniors addressing the responsibilities and etiquette of rental property living, design and distribution of literature for renters describing opportunities for neighborhood involvement, and resources for consulting an experienced residential property manager to develop and review nuisance cessation plans for complex problem properties.

Sec. 9. [NEIGHBORHOOD RESPONSIBILITY PILOT PROJECT; PURPOSE; APPROPRIATION.]

The purpose of the neighborhood responsibility pilot project is to develop programs that use the restorative justice model to address nuisance crimes. At least two of the projects shall encompass juvenile offenders.

Sec. 10. [LANDLORD TENANT INFORMATION.]

The state court administrator shall develop and provide information on videotape or other appropriate media in conjunction with relevant organizations outlining rights and privileges of landlords and tenants. The information may be provided in multilingual formats.

Sec. 11. [APPROPRIATIONS.]

$....... is appropriated from the general fund for the biennium ending June 30, 1999, to the state court administrator to implement the housing calendar mediation program, to train mediators in the law of nuisance and unlawful detainer, to provide mediators in the housing calendar program, to update the computer systems used by the housing calendar program in the second and fourth judicial districts, and for the purposes of section 10.

The following amounts are appropriated from the general fund to the commissioner of corrections for the biennium ending June 30, 1999: $55,000 for the Hennepin and Ramsey county attorneys' offices to implement section 8, and $500,000 for the development and implementation of the initial phase of the projects in sections 8 and 9."

Amend the title as follows:

Page 1, line 9, after "566.05;" insert "566.09, subdivision 1;"

With the recommendation that when so amended the bill pass.

The report was adopted.


Journal of the House - 29th Day - Top of Page 1456

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

H. F. No. 1525, A bill for an act relating to utilities; providing for customer-specific terms in electric utility service contracts; amending Minnesota Statutes 1996, sections 216B.05; and 216B.162, subdivisions 1, 4, and by adding subdivisions.

Reported the same back with the following amendments:

Page 1, after line 7, insert:

"ARTICLE 1

Section 1. Minnesota Statutes 1996, section 116C.771, is amended to read:

116C.771 [ADDITIONAL CASK LIMITATIONS.]

(a) Five casks may be filled and used at Prairie Island on May 11, 1994.

(b) An additional four casks may be filled and used at Prairie Island if the environmental quality board determines that, by December 31, 1996, the public utility operating the Prairie Island plant has filed a license application with the United States Nuclear Regulatory Commission for a spent nuclear fuel storage facility off of Prairie Island in Goodhue county, is continuing to make a good faith effort to implement the site, and has constructed, contracted for construction and operation, or purchased installed capacity of 100 megawatts of wind power in addition to wind power under construction or contract on May 11, 1994.

(c)(1) An additional eight casks may be filled and placed at Prairie Island if the legislature has not revoked the authorization under clause (2) or the public utility has satisfied the wind power and biomass mandate requirements in sections 216B.2423, subdivision 1, clause (1), and 216B.2424, clause (1), and the alternative site in Goodhue county is operational or under construction. (2) If the site is not under construction or operational or the wind mandates are not satisfied, the legislature may revoke the authorization for the additional eight casks by a law enacted prior to June 1, 1999.

(d) Except as provided under paragraph (e), dry cask storage capacity for high-level nuclear waste within the state may not be increased beyond the casks authorized by section 116C.77 or their equivalent storage capacity.

(e) This section does not prohibit a public utility from applying for or the public utilities commission from granting a certificate of need for dry cask storage to accommodate the decommissioning of a nuclear power plant within this state."

Page 1, lines 22 and 23, reinstate the stricken language

Page 1, line 26, after "direct" insert "; provided that contracts and agreements for electric service must be filed as required by subdivision 2a of this section"

Page 5, after line 12, insert:

"Sec. 7. Minnesota Statutes 1996, section 216C.051, subdivision 2, is amended to read:

Subd. 2. [ESTABLISHMENT.] (a) There is established a legislative electric energy task force to study future electric energy sources and costs and to make recommendations for legislation for an environmentally and economically sustainable and advantageous electric energy supply.

(b) The task force consists of:

(1) eight ten members of the house of representatives including the chairs of the environment and natural resources and regulated industries and energy committees and six members to be appointed by the speaker of the house, two four of whom must be from the minority caucus;


Journal of the House - 29th Day - Top of Page 1457

(2) eight ten members of the senate including the chairs of the environment and natural resources and jobs, energy, and community development committees and six members to be appointed by the subcommittee on committees, two four of whom must be from the minority caucus.

(c) The task force may shall employ staff, and may contract for consulting services, and may reimburse the expenses of persons requested to assist it in its duties other than state employees or employees of electric utilities. The director of the legislative coordinating commission shall assist the task force in administrative matters. The task force shall elect cochairs, one member of the house and one member of the senate from among the committee chairs members named to the committee. The task force members from the house shall elect the house cochair, and the task force members from the senate shall elect the senate cochair.

Sec. 8. Minnesota Statutes 1996, section 216C.051, subdivision 6, is amended to read:

Subd. 6. [ASSESSMENT; APPROPRIATION.] On request by the cochairs of the legislative task force and after approval of the legislative coordinating commission, the commissioner of the department of public service shall assess from electric utilities, in addition to assessments made under section 216B.62, the amount requested for the studies and analysis required in subdivisions 3 and 4 and for operation of the task force not to exceed $350,000. This authority to assess continues until the commissioner has assessed a total of $350,000. The amount assessed under this section is appropriated to the director of the legislative coordinating commission for those purposes, and is available until expended.

Sec. 9. [LEGISLATIVE ELECTRIC ENERGY TASK FORCE; ELECTRIC INDUSTRY RESTRUCTURING.]

The legislative electric energy task force shall review and analyze issues relating to the restructuring of the electric industry. At a minimum, the task force shall study the potential costs and benefits of restructuring on:

(1) low-income, residential, small business and large commercial, and industrial electric consumer rates and services, including the ability of all customers to participate in and benefit from a restructured industry;

(2) the overall state's economy, as well as the economy of regions within the state, and the cost of doing business in the state;

(3) the reliability and safety of the electricity system, including system planning and operation;

(4) the state's environment, including the cost-effective promotion of conservation and renewable energy; and

(5) public, private, and cooperative utilities, and alternative electricity suppliers, including the development of competitively neutral markets.

The task force shall present recommendations to the legislature regarding electric industry restructuring by January 15, 1998.

Sec. 10. Minnesota Statutes 1996, section 216C.19, subdivision 5, is amended to read:

Subd. 5. [NATURAL GAS OUTDOOR LIGHTING PROHIBITED; EXCEPTION.] After July 1, 1974, no new natural gas outdoor lighting shall be installed in the state. However, the installation and use of natural gas outdoor lighting that is equipped with either an automatic daytime shutoff device or is otherwise capable of being switched on and off, is permitted.

Sec. 11. Minnesota Statutes 1996, section 272.02, subdivision 1, is amended to read:

Subdivision 1. All property described in this section to the extent herein limited shall be exempt from taxation:

(1) All public burying grounds.

(2) All public schoolhouses.


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(3) All public hospitals.

(4) All academies, colleges, and universities, and all seminaries of learning.

(5) All churches, church property, and houses of worship.

(6) Institutions of purely public charity except parcels of property containing structures and the structures described in section 273.13, subdivision 25, paragraph (c), clauses (1), (2), and (3), or paragraph (d), other than those that qualify for exemption under clause (25).

(7) All public property exclusively used for any public purpose.

(8) Except for the taxable personal property enumerated below, all personal property and the property described in section 272.03, subdivision 1, paragraphs (c) and (d), shall be exempt.

The following personal property shall be taxable:

(a) personal property which is part of an electric generating, transmission, or distribution system or a pipeline system transporting or distributing water, gas, crude oil, or petroleum products or mains and pipes used in the distribution of steam or hot or chilled water for heating or cooling buildings and structures;

(b) railroad docks and wharves which are part of the operating property of a railroad company as defined in section 270.80;

(c) personal property defined in section 272.03, subdivision 2, clause (3);

(d) leasehold or other personal property interests which are taxed pursuant to section 272.01, subdivision 2; 273.124, subdivision 7; or 273.19, subdivision 1; or any other law providing the property is taxable as if the lessee or user were the fee owner;

(e) manufactured homes and sectional structures, including storage sheds, decks, and similar removable improvements constructed on the site of a manufactured home, sectional structure, park trailer or travel trailer as provided in section 273.125, subdivision 8, paragraph (f); and

(f) flight property as defined in section 270.071.

(9) Personal property used primarily for the abatement and control of air, water, or land pollution to the extent that it is so used, and real property which is used primarily for abatement and control of air, water, or land pollution as part of an agricultural operation, as a part of a centralized treatment and recovery facility operating under a permit issued by the Minnesota pollution control agency pursuant to chapters 115 and 116 and Minnesota Rules, parts 7001.0500 to 7001.0730, and 7045.0020 to 7045.1260, as a wastewater treatment facility and for the treatment, recovery, and stabilization of metals, oils, chemicals, water, sludges, or inorganic materials from hazardous industrial wastes, or as part of an electric generation system. For purposes of this clause, personal property includes ponderous machinery and equipment used in a business or production activity that at common law is considered real property.

Any taxpayer requesting exemption of all or a portion of any real property or any equipment or device, or part thereof, operated primarily for the control or abatement of air or water pollution shall file an application with the commissioner of revenue. The equipment or device shall meet standards, rules, or criteria prescribed by the Minnesota pollution control agency, and must be installed or operated in accordance with a permit or order issued by that agency. The Minnesota pollution control agency shall upon request of the commissioner furnish information or advice to the commissioner. On determining that property qualifies for exemption, the commissioner shall issue an order exempting the property from taxation. The equipment or device shall continue to be exempt from taxation as long as the permit issued by the Minnesota pollution control agency remains in effect.


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(10) Wetlands. For purposes of this subdivision, "wetlands" means: (i) land described in section 103G.005, subdivision 15a; (ii) land which is mostly under water, produces little if any income, and has no use except for wildlife or water conservation purposes, provided it is preserved in its natural condition and drainage of it would be legal, feasible, and economically practical for the production of livestock, dairy animals, poultry, fruit, vegetables, forage and grains, except wild rice; or (iii) land in a wetland preservation area under sections 103F.612 to 103F.616. "Wetlands" under items (i) and (ii) include adjacent land which is not suitable for agricultural purposes due to the presence of the wetlands, but do not include woody swamps containing shrubs or trees, wet meadows, meandered water, streams, rivers, and floodplains or river bottoms. Exemption of wetlands from taxation pursuant to this section shall not grant the public any additional or greater right of access to the wetlands or diminish any right of ownership to the wetlands.

(11) Native prairie. The commissioner of the department of natural resources shall determine lands in the state which are native prairie and shall notify the county assessor of each county in which the lands are located. Pasture land used for livestock grazing purposes shall not be considered native prairie for the purposes of this clause. Upon receipt of an application for the exemption provided in this clause for lands for which the assessor has no determination from the commissioner of natural resources, the assessor shall refer the application to the commissioner of natural resources who shall determine within 30 days whether the land is native prairie and notify the county assessor of the decision. Exemption of native prairie pursuant to this clause shall not grant the public any additional or greater right of access to the native prairie or diminish any right of ownership to it.

(12) Property used in a continuous program to provide emergency shelter for victims of domestic abuse, provided the organization that owns and sponsors the shelter is exempt from federal income taxation pursuant to section 501(c)(3) of the Internal Revenue Code of 1986, as amended through December 31, 1992, notwithstanding the fact that the sponsoring organization receives funding under section 8 of the United States Housing Act of 1937, as amended.

(13) If approved by the governing body of the municipality in which the property is located, property not exceeding one acre which is owned and operated by any senior citizen group or association of groups that in general limits membership to persons age 55 or older and is organized and operated exclusively for pleasure, recreation, and other nonprofit purposes, no part of the net earnings of which inures to the benefit of any private shareholders; provided the property is used primarily as a clubhouse, meeting facility, or recreational facility by the group or association and the property is not used for residential purposes on either a temporary or permanent basis.

(14) To the extent provided by section 295.44, real and personal property used or to be used primarily for the production of hydroelectric or hydromechanical power on a site owned by the federal government, the state, or a local governmental unit which is developed and operated pursuant to the provisions of section 103G.535.

(15) If approved by the governing body of the municipality in which the property is located, and if construction is commenced after June 30, 1983:

(a) a "direct satellite broadcasting facility" operated by a corporation licensed by the federal communications commission to provide direct satellite broadcasting services using direct broadcast satellites operating in the 12-ghz. band; and

(b) a "fixed satellite regional or national program service facility" operated by a corporation licensed by the federal communications commission to provide fixed satellite-transmitted regularly scheduled broadcasting services using satellites operating in the 6-ghz. band.

An exemption provided by clause (15) shall apply for a period not to exceed five years. When the facility no longer qualifies for exemption, it shall be placed on the assessment rolls as provided in subdivision 4. Before approving a tax exemption pursuant to this paragraph, the governing body of the municipality shall provide an opportunity to the members of the county board of commissioners of the county in which the facility is proposed to be located and the members of the school board of the school district in which the facility is proposed to be located to meet with the governing body. The governing body shall present to the members of those boards its estimate of the fiscal impact of the proposed property tax exemption. The tax exemption shall not be approved by the governing body until the county board of commissioners has presented its written comment on the proposal to the governing body or 30 days have passed from the date of the transmittal by the governing body to the board of the information on the fiscal impact, whichever occurs first.


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(16) Real and personal property owned and operated by a private, nonprofit corporation exempt from federal income taxation pursuant to United States Code, title 26, section 501(c)(3), primarily used in the generation and distribution of hot water for heating buildings and structures.

(17) Notwithstanding section 273.19, state lands that are leased from the department of natural resources under section 92.46.

(18) Electric power distribution lines and their attachments and appurtenances, that are used primarily for supplying electricity to farmers at retail.

(19) Transitional housing facilities. "Transitional housing facility" means a facility that meets the following requirements. (i) It provides temporary housing to individuals, couples, or families. (ii) It has the purpose of reuniting families and enabling parents or individuals to obtain self-sufficiency, advance their education, get job training, or become employed in jobs that provide a living wage. (iii) It provides support services such as child care, work readiness training, and career development counseling; and a self-sufficiency program with periodic monitoring of each resident's progress in completing the program's goals. (iv) It provides services to a resident of the facility for at least three months but no longer than three years, except residents enrolled in an educational or vocational institution or job training program. These residents may receive services during the time they are enrolled but in no event longer than four years. (v) It is owned and operated or under lease from a unit of government or governmental agency under a property disposition program and operated by one or more organizations exempt from federal income tax under section 501(c)(3) of the Internal Revenue Code of 1986, as amended through December 31, 1992. This exemption applies notwithstanding the fact that the sponsoring organization receives financing by a direct federal loan or federally insured loan or a loan made by the Minnesota housing finance agency under the provisions of either Title II of the National Housing Act or the Minnesota housing finance agency law of 1971 or rules promulgated by the agency pursuant to it, and notwithstanding the fact that the sponsoring organization receives funding under Section 8 of the United States Housing Act of 1937, as amended.

(20) Real and personal property, including leasehold or other personal property interests, owned and operated by a corporation if more than 50 percent of the total voting power of the stock of the corporation is owned collectively by: (i) the board of regents of the University of Minnesota, (ii) the University of Minnesota Foundation, an organization exempt from federal income taxation under section 501(c)(3) of the Internal Revenue Code of 1986, as amended through December 31, 1992, and (iii) a corporation organized under chapter 317A, which by its articles of incorporation is prohibited from providing pecuniary gain to any person or entity other than the regents of the University of Minnesota; which property is used primarily to manage or provide goods, services, or facilities utilizing or relating to large-scale advanced scientific computing resources to the regents of the University of Minnesota and others.

(21)(a) Wind energy conversion systems, as defined in section 216C.06, subdivision 12, installed after January 1, 1991, and before January 2, 1995, and used as an electric power source, are exempt.

(b) Wind energy conversion systems, as defined in section 216C.06, subdivision 12, installed after January 1, 1995, including the foundation or support pad, which are (i) used as an electric power source; (ii) located within one county and owned by the same owner; and (iii) produce two megawatts or less of electricity as measured by nameplate ratings, are exempt.

(c) Wind energy conversion systems, as defined in section 216C.06, subdivision 12, installed after January 1, 1995, and used as an electric power source but not exempt under item (b), are treated as follows: (i) the foundation and support pad are taxable; (ii) the associated supporting and protective structures are exempt for the first five assessment years after they have been constructed, and thereafter, 30 percent of the market value of the associated supporting and protective structures are taxable; and (iii) the turbines, blades, transformers, and its related equipment, are exempt.

(22) Containment tanks, cache basins, and that portion of the structure needed for the containment facility used to confine agricultural chemicals as defined in section 18D.01, subdivision 3, as required by the commissioner of agriculture under chapter 18B or 18C.

(23) Photovoltaic devices, as defined in section 216C.06, subdivision 13, installed after January 1, 1992, and used to produce or store electric power.


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(24) Real and personal property owned and operated by a private, nonprofit corporation exempt from federal income taxation pursuant to United States Code, title 26, section 501(c)(3), primarily used for an ice arena or ice rink, and used primarily for youth and high school programs.

(25) A structure that is situated on real property that is used for:

(i) housing for the elderly or for low- and moderate-income families as defined in Title II of the National Housing Act, as amended through December 31, 1990, and funded by a direct federal loan or federally insured loan made pursuant to Title II of the act; or

(ii) housing lower income families or elderly or handicapped persons, as defined in Section 8 of the United States Housing Act of 1937, as amended.

In order for a structure to be exempt under (i) or (ii), it must also meet each of the following criteria:

(A) is owned by an entity which is operated as a nonprofit corporation organized under chapter 317A;

(B) is owned by an entity which has not entered into a housing assistance payments contract under Section 8 of the United States Housing Act of 1937, or, if the entity which owns the structure has entered into a housing assistance payments contract under Section 8 of the United States Housing Act of 1937, the contract provides assistance for less than 90 percent of the dwelling units in the structure, excluding dwelling units intended for management or maintenance personnel;

(C) operates an on-site congregate dining program in which participation by residents is mandatory, and provides assisted living or similar social and physical support services for residents; and

(D) was not assessed and did not pay tax under chapter 273 prior to the 1991 levy, while meeting the other conditions of this clause.

An exemption under this clause remains in effect for taxes levied in each year or partial year of the term of its permanent financing.

(26) Real and personal property that is located in the Superior National Forest, and owned or leased and operated by a nonprofit organization that is exempt from federal income taxation under section 501(c)(3) of the Internal Revenue Code of 1986, as amended through December 31, 1992, and primarily used to provide recreational opportunities for disabled veterans and their families.

(27) Manure pits and appurtenances, which may include slatted floors and pipes, installed or operated in accordance with a permit, order, or certificate of compliance issued by the Minnesota pollution control agency. The exemption shall continue for as long as the permit, order, or certificate issued by the Minnesota pollution control agency remains in effect.

(28) Notwithstanding clause (8), item (a), attached machinery and other personal property which is part of a facility containing a cogeneration system as described in section 216B.166, subdivision 2, paragraph (a), if the cogeneration system has met the following criteria: (i) the system utilizes natural gas as a primary fuel and the cogenerated steam initially replaces steam generated from existing thermal boilers utilizing coal; (ii) the facility developer is selected as a result of a procurement process ordered by the public utilities commission; and (iii) construction of the facility is commenced after July 1, 1994, and before July 1, 1997.

(29) Real property acquired by a home rule charter city, statutory city, county, town, or school district under a lease purchase agreement or an installment purchase contract during the term of the lease purchase agreement as long as and to the extent that the property is used by the city, county, town, or school district and devoted to a public use and to the extent it is not subleased to any private individual, entity, association, or corporation in connection with a business or enterprise operated for profit.


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Sec. 12. Minnesota Statutes 1996, section 295.44, subdivision 1, is amended to read:

Subdivision 1. [EXEMPTION.] Notwithstanding the provisions of sections 272.01, subdivision 2, 272.02, subdivision 5, and 273.19, subdivision 1, real or personal property used or to be used primarily for the production of hydroelectric or hydromechanical power on a site owned by the federal government, the state, or a local governmental unit and developed and operated pursuant to section 103G.535 may be exempt from property taxation for all years during which the site is developed and operated under the terms of a lease or agreement authorized by section 103G.535.

Sec. 13. [ASSESSMENT FOR OFFICE OF ATTORNEY GENERAL.]

The department of public service shall assess from a natural gas utility submitting a plan under Minnesota Statutes, section 216B.1675, to the commission for the commission's approval:

(1) $15,000 in the first year from the date the plan is submitted; and

(2) $15,000 in the second year from that date.

The amounts assessed under this section are appropriated to the attorney general to offset the costs the office of attorney general will incur in reviewing, analyzing, and advocating for modifications to the plan and, once the plan is approved, monitoring, evaluating, and ensuring that the plan achieves the requirements of Minnesota Statutes, section 216B.1675, and is in the interest of residential and small business ratepayers. The amounts appropriated under this section are available until spent.

Sec. 14. [CONSERVATION IMPROVEMENTS PROGRAM; REVIEW AND REPORT.]

(a) The legislative electric energy task force shall conduct a review and analysis of issues specific to retail electric customers having a connected load of 10,000 kilowatts or more regarding the applicability of provisions of the energy conservation improvements program under Minnesota Statutes, section 216B.241.

(b) Not later than February 1, 1998, the task force shall report its findings and legislative recommendations to the senate and house of representatives committees that deal with energy and utility regulation policy.

Sec. 15. [REPEALER.]

Minnesota Statutes 1996, section 116C.80, is repealed.

Sec. 16. [EFFECTIVE DATE.]

Sections 1, 10, and 15 are effective the day following final enactment. Sections 11 and 12 are effective for taxes payable in 1998 and thereafter.

ARTICLE 2

Section 1. [TITLE.]

Section 2 may be referred to as the Mercury Emissions Consumer Information Act of 1997.

Sec. 2. [116.925] [ELECTRIC ENERGY; MERCURY EMISSIONS REPORT.]

Subdivision 1. [REPORT.] To address the shared responsibility between the providers and consumers of electricity for the protection of Minnesota's lakes, each electric utility, as defined in section 216B.38, subdivision 5, and each person that generates electricity in this state for that person's own use or for sale at retail or wholesale shall provide the commissioner an annual report of the amount of mercury emitted in generating that electricity at that person's facilities.


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Subd. 2. [TERMS AND CONDITIONS.] (a) The report referenced in subdivision 1 must be made to the commissioner annually. This report must include:

(1) a list of all generation facilities owned or operated by the utility or person subject to subdivision 1;

(2) all readily available information regarding the amount of electricity purchased by the utility or person subject to subdivision 1, for use in the state; and

(3) information for each facility owned or operated by the utility or person subject to subdivision 1, stating: (i) the amount of electricity generated at the facility for use or for sale in this state at retail or wholesale; (ii) the amount of fuel used to generate that electricity at the facility; and (iii) the amount of mercury emitted in generating that electricity in the previous calendar year, using an emission factor for a given fuel type for up to five years after a stack test at the facility or the average mercury concentration in each fuel used at that facility, either determined by the facility or certified by the fuel supplier.

(b) The report, as well as the calculation of mercury emissions, shall be made under terms and conditions established by the commissioner. The commissioner shall incorporate into these terms and conditions the following de minimis standard for small and little-used generation facilities:

(1) less than 120 hours of operation by the generation facility per year; and

(2) a capacity output at the facility of less than 50 million British thermal units per hour.

A utility or person subject to this section who owns or operates a generation facility that qualifies under this de minimis standard is not required to provide the information described in subdivision 2, paragraph (a), for that facility.

(c) The establishment of the terms and conditions for the report is subject to chapter 14.

Subd. 3. [REPORT TO CONSUMERS.] (a) By April 1, 1999, and biennially thereafter in the report on air toxics required under section 115D.15, the commissioner shall report the amount of mercury emitted in the generation of electricity, based on the information in the reports under this section.

(b) The commissioner shall issue an interim report, based on the voluntary reporting by Minnesota Good Neighbors, Clean Lakes Energy Producers under subdivision 4, by April 1, 1998.

Subd. 4. [GOOD NEIGHBORS, CLEAN LAKES; VOLUNTARY DISCLOSURE.] An electric utility, as defined in section 216B.38, subdivision 5, or a person that generates electricity in the state for that person's own use or for sale at retail or wholesale, may identify themselves as a "Minnesota Good Neighbors, Clean Lakes Energy Producer" in the person's advertising, marketing, and other communications to customers if:

(1) beginning January 1, 1998, and annually thereafter, the person voluntarily provides the commissioner with the information described in subdivision 2, paragraph (a), based on best available data; or

(2) after the adoption of the terms and conditions for required reports under this section, the person demonstrates a 25 percent reduction in mercury emissions.

Sec. 3. [INITIAL REPORT.]

The commissioner shall issue the terms and conditions for the required disclosure under section 2, subdivision 2, by July 1, 1998. Persons subject to section 2 shall make the initial report and all subsequent reports in accordance with those terms and conditions.


Journal of the House - 29th Day - Top of Page 1464

Sec. 4. [ASSESSMENT FOR RULEMAKING.]

Unless private entities voluntarily reimburse the pollution control agency for the cost of rulemaking under section 2, subdivision 2, paragraph (b), by July 1, 1998, the commissioner of the pollution control agency shall certify to the department of public service the costs the agency has incurred in developing and adopting the rules required under section 2, subdivision 2, paragraph (b). The department shall assess the utilities and persons referenced in section 2, subdivision 2, the amount certified to the department by the commissioner under this section. Proportional assessments against electric utilities shall be in addition to assessments made under Minnesota Statutes, section 216B.62. Amounts assessed under this section are appropriated to the commissioner of the pollution control agency and are available until spent.

Sec. 5. [EFFECTIVE DATE.]

Sections 1 to 4 are effective the day following final enactment. Section 2, subdivision 4, expires June 30, 2002."

Renumber the sections in sequence

Delete the title and insert:

"A bill for an act relating to utilities; eliminating requirement for alternative storage site for spent nuclear fuel in Goodhue county; providing for customer-specific terms in electric utility service contracts; modifying provisions relating to the legislative electric energy task force; requiring study on restructuring the electric industry; allowing exception to prohibition on natural gas outdoor lighting; exempting property that produces hydroelectric or hydromechanical power on federal land from property taxation; requiring study of energy conservation improvement program as it relates to large retail electric customers; requiring reports on mercury emissions resulting from generation of electricity and authorizing rules; amending Minnesota Statutes 1996, sections 116C.771; 216B.05; 216B.162, subdivisions 1, 4, and by adding subdivisions; 216C.051, subdivisions 2 and 6; 216C.19, subdivision 5; 272.02, subdivision 1; and 295.44, subdivision 1; proposing coding for new law in Minnesota Statutes, chapter 116; repealing Minnesota Statutes 1996, section 116C.80."

With the recommendation that when so amended the bill pass.

The report was adopted.

Wagenius from the Committee on Transportation and Transit to which was referred:

H. F. No. 1540, A bill for an act relating to traffic regulations; requiring drivers to reduce speed when approaching authorized emergency vehicles stopped on the roadway or shoulder; amending Minnesota Statutes 1996, section 169.14, subdivision 3.

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:

H. F. No. 1549, A bill for an act relating to tax increment financing; allowing use of economic development districts for certain retail facilities; amending Minnesota Statutes 1996, section 469.176, subdivision 4c.

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

The report was adopted.


Journal of the House - 29th Day - Top of Page 1465

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

H. F. No. 1556, A bill for an act relating to local government; providing a maximum rate for municipal water sales to another municipality; proposing coding for new law in Minnesota Statutes, chapter 444.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. [MUNICIPAL WATER SALES TO ANOTHER MUNICIPALITY.]

A city of the first class outside of the metropolitan area as defined in Minnesota Statutes, section 473.121, subdivision 2, that provides water to another municipality must provide the water at no more than 20 percent over the cost that city charges its own residents."

Delete the title and insert:

"A bill for an act relating to local government; providing a maximum rate for certain municipal water sales to another municipality."

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:

H. F. No. 1605, A bill for an act relating to insurance; Minnesota comprehensive health insurance association; modifying eligibility for coverage under the state plan; providing funding for the expenses of the association; prohibiting unfair referrals; amending Minnesota Statutes 1996, sections 62E.10, subdivision 7; 62E.11, by adding a subdivision; 62E.14, by adding a subdivision; 256B.0625, subdivision 15; 256D.03, subdivision 3b; and 268.022, subdivision 2.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"ARTICLE 1

INDIVIDUAL MARKET CHANGES (MCHA)

Section 1. Minnesota Statutes 1996, section 62E.02, subdivision 13, is amended to read:

Subd. 13. [ELIGIBLE PERSON.] "Eligible person" means an individual who is currently and has been a resident of Minnesota for the six months immediately preceding the date of receipt by the association or its writing carrier of a completed certificate of eligibility and who meets the enrollment requirements of section 62E.14. For purposes of eligibility under section 62E.14, subdivision 4c, paragraph (b), this definition is modified as provided in that paragraph.

Sec. 2. Minnesota Statutes 1996, section 62E.14, subdivision 3, is amended to read:

Subd. 3. [PREEXISTING CONDITIONS.] No person who obtains coverage pursuant to this section shall be covered for any preexisting condition during the first six months of coverage under the state plan if the person was diagnosed or treated for that condition during the 90 days immediately preceding the filing of an application except as provided under subdivisions 4, 4a, 4b, 4c, 4d, 5, and 6, and 7 and section 62E.18.


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Sec. 3. Minnesota Statutes 1996, section 62E.14, subdivision 4c, is amended to read:

Subd. 4c. [WAIVER OF PREEXISTING CONDITIONS FOR PERSONS WHOSE COVERAGE IS TERMINATED OR WHO EXCEED THE MAXIMUM LIFETIME BENEFIT.] (a) A Minnesota resident may enroll in the comprehensive health plan with a waiver of the preexisting condition limitation described in subdivision 3 if that person applies for coverage within 90 days of termination of prior coverage and if the termination is for reasons other than fraud or nonpayment of premiums.

For purposes of this subdivision paragraph, termination of prior coverage includes exceeding the maximum lifetime benefit of existing coverage.

Coverage in the comprehensive health plan is effective on the date of termination of prior coverage. The availability of conversion rights does not affect a person's rights under this subdivision paragraph.

This section does not apply to prior coverage provided under policies designed primarily to provide coverage payable on a per diem, fixed indemnity, or nonexpense incurred basis, or policies providing only accident coverage.

(b) An eligible individual, as defined in the federal Health Insurance Portability and Accountability Act of 1996, section 111 (to be codified as United States Code, chapter 42, section 2741(b)) may enroll in the comprehensive health insurance plan with a waiver of the preexisting condition limitation described in subdivision 3 and a waiver of the evidence of rejection or similar events described in subdivision 1, clause (c). The eligible individual must apply for enrollment under this paragraph within 63 days of termination of prior coverage, and coverage under the comprehensive health insurance plan is effective as of the date of receipt of the complete application. The six month durational residency requirement provided in section 62E.02, subdivision 13, does not apply with respect to eligibility for enrollment under this paragraph, but the applicant must be a Minnesota resident as of the date of application. A person's eligibility to enroll under this paragraph does not affect the person's eligibility to enroll under any other provision.

Sec. 4. [EFFECTIVE DATE.]

Sections 1 to 3 are effective January 1, 1998.

ARTICLE 2

SMALL EMPLOYER MARKET CHANGES

Section 1. Minnesota Statutes 1996, section 62L.02, subdivision 9, is amended to read:

Subd. 9. [CONTINUOUS COVERAGE.] "Continuous coverage" means the maintenance of continuous and uninterrupted qualifying coverage. An individual is considered to have maintained continuous coverage if the individual requests enrollment in qualifying coverage within 30 63 days of termination of qualifying coverage.

Sec. 2. Minnesota Statutes 1996, section 62L.02, subdivision 11, is amended to read:

Subd. 11. [DEPENDENT.] "Dependent" means an eligible employee's spouse, unmarried child who is under the age of 19 years, unmarried child under the age of 25 years who is a full-time student as defined in section 62A.301, dependent child of any age who is handicapped and who meets the eligibility criteria in section 62A.14, subdivision 2, or any other person whom state or federal law requires to be treated as a dependent for purposes of health plans. For the purpose of this definition, a child includes a child for whom the employee or the employee's spouse has been appointed legal guardian and an adoptive child as provided in section 62A.27.

Sec. 3. Minnesota Statutes 1996, section 62L.02, is amended by adding a subdivision to read:

Subd. 13b. [ENROLLMENT DATE.] "Enrollment date" means, with respect to a covered individual, the date of enrollment of the individual in the health benefit plan or, if earlier, the first day of the waiting period for the individual's enrollment.


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Sec. 4. Minnesota Statutes 1996, section 62L.02, subdivision 15, is amended to read:

Subd. 15. [HEALTH BENEFIT PLAN.] "Health benefit plan" means a policy, contract, or certificate offered, sold, issued, or renewed by a health carrier to a small employer for the coverage of medical and hospital benefits. Health benefit plan includes a small employer plan. Health benefit plan does not include coverage, including any combination of the following coverages, that is:

(1) limited to disability or income protection coverage;

(2) automobile medical payment coverage;

(3) liability insurance or supplemental to liability insurance;

(4) designed solely to provide coverage for a specified disease or illness or to provide payments on a per diem, fixed indemnity, or non-expense-incurred basis, if offered as independent, noncoordinated coverage;

(5) credit accident and health insurance as defined in section 62B.02;

(6) designed solely to provide dental or vision care;

(7) blanket accident and sickness insurance as defined in section 62A.11;

(8) accident-only coverage;

(9) a long-term care policy as defined in section 62A.46;

(10) issued as a supplement to Medicare, as defined in sections 62A.31 to 62A.44, or policies, contracts, or certificates that supplement Medicare issued by health maintenance organizations or those policies, contracts, or certificates governed by section 1833 or 1876 of the federal Social Security Act, United States Code, title 42, section 1395, et seq., as amended Medicare-related coverage as defined in section 62Q.01, subdivision 6;

(11) workers' compensation insurance; or

(12) issued solely as a companion to a health maintenance contract as described in section 62D.12, subdivision 1a, so long as the health maintenance contract meets the definition of a health benefit plan limited to care provided at on-site medical clinics operated by an employer for the benefit of the employer's employees and their dependents, in connection with which the employer does not transfer risk.

For the purpose of this chapter, a health benefit plan issued to eligible employees of a small employer who meets the participation requirements of section 62L.03, subdivision 3, is considered to have been issued to a small employer. A health benefit plan issued on behalf of a health carrier is considered to be issued by the health carrier.

Sec. 5. Minnesota Statutes 1996, section 62L.02, subdivision 19, is amended to read:

Subd. 19. [LATE ENTRANT.] "Late entrant" means an eligible employee or dependent who requests enrollment in a health benefit plan of a small employer following the initial enrollment period applicable to the employee or dependent under the terms of the health benefit plan, provided that the initial enrollment period must be a period of at least 30 days. However, an eligible employee or dependent must not be considered a late entrant if:

(1) the individual was covered under qualifying coverage at the time the individual was eligible to enroll in the health benefit plan, declined enrollment on that basis, and presents to the health carrier a certificate of termination of the qualifying coverage, due to loss of eligibility for that coverage, or proof of the termination of employer contributions toward that coverage, provided that the individual maintains continuous coverage. and requests enrollment within 30 days of termination of qualifying coverage or termination of the employer's contribution toward that coverage. For purposes of this clause, loss of eligibility includes loss of eligibility as a result of legal separation, divorce, death, termination of employment, or reduction


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in the number of hours of employment. For purposes of this clause, an individual is not a late entrant if the individual elects coverage under the health benefit plan rather than accepting continuation coverage for which the individual is eligible under state or federal law with respect to the individual's previous qualifying coverage;

(2) the individual has lost coverage under another group health plan due to the expiration of benefits available under the Consolidated Omnibus Budget Reconciliation Act of 1985, Public Law Number 99-272, as amended, and any state continuation laws applicable to the employer or health carrier, provided that the individual maintains continuous coverage and requests enrollment within 30 days of the loss of coverage;

(3) the individual is a new spouse of an eligible employee, provided that enrollment is requested within 30 days of becoming legally married;

(4) the individual is a new dependent child of an eligible employee, provided that enrollment is requested within 30 days of becoming a dependent;

(5) the individual is employed by an employer that offers multiple health benefit plans and the individual elects a different plan during an open enrollment period; or

(6) a court has ordered that coverage be provided for a former spouse or dependent child under a covered employee's health benefit plan and request for enrollment is made within 30 days after issuance of the court order.

Sec. 6. Minnesota Statutes 1996, section 62L.02, subdivision 23, is amended to read:

Subd. 23. [PREEXISTING CONDITION.] "Preexisting condition" means, with respect to coverage, a condition manifesting in a manner that causes an ordinarily prudent person to seek medical advice, diagnosis, care, or treatment or present before the individual's enrollment date for the coverage, for which medical advice, diagnosis, care, or treatment was recommended or received during the six months immediately preceding the effective date of coverage, or a pregnancy existing as of the effective date of coverage of a health benefit plan enrollment date.

Sec. 7. Minnesota Statutes 1996, section 62L.02, subdivision 24, is amended to read:

Subd. 24. [QUALIFYING COVERAGE.] "Qualifying coverage" means health benefits or health coverage provided under:

(1) a health benefit plan, as defined in this section, but without regard to whether it is issued to a small employer and including blanket accident and sickness insurance, other than accident-only coverage, as defined in section 62A.11;

(2) part A or part B of Medicare;

(3) medical assistance under chapter 256B;

(4) general assistance medical care under chapter 256D;

(5) MCHA;

(6) a self-insured health plan;

(7) the MinnesotaCare program established under section 256.9352, when the plan includes inpatient hospital services as provided in section 256.9353;

(8) a plan provided under section 43A.316, 43A.317, or 471.617;

(9) the Civilian Health and Medical Program of the Uniformed Services (CHAMPUS) or other coverage provided under United States Code, title 10, chapter 55;


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(10) coverage provided by a health care network cooperative under chapter 62R or by a health provider cooperative under section 62R.17; or

(11) a medical care program of the Indian Health Service or of a tribal organization;

(12) the federal Employees Health Benefits Plan, or other coverage provided under United States Code, title 5, chapter 89;

(13) a health benefit plan under section 5(e) of the Peace Corps Act, codified as United States Code, title 32, section 2504(e); or

(14) a plan similar to any of the above plans provided in this state or in another state as determined by the commissioner.

Sec. 8. Minnesota Statutes 1996, section 62L.02, subdivision 26, is amended to read:

Subd. 26. [SMALL EMPLOYER.] (a) "Small employer" means, with respect to a calendar year and a plan year, a person, firm, corporation, partnership, association, or other entity actively engaged in business, including a political subdivision of the state, that, on at least 50 percent of its working days during the preceding 12 months, employed an average of no fewer than two nor more than 29, or after June 30, 1995, more than 49, 50 current employees, the majority of whom were employed in this state. If an employer has only two eligible employees and one is the spouse, child, sibling, parent, or grandparent of the other, the employer must be a Minnesota domiciled employer and have paid social security or self-employment tax on behalf of both eligible employees on business days during the preceding calendar year and that employs at least two current employees on the first day of the plan year. If an employer has only one eligible employee who has not waived coverage, the sale of a health plan to or for that eligible employee is not a sale to a small employer and is not subject to this chapter and may be treated as the sale of an individual health plan. A small employer plan may be offered through a domiciled association to self-employed individuals and small employers who are members of the association, even if the self-employed individual or small employer has fewer than two current employees. Entities that are eligible to file a combined tax return for purposes of state tax laws treated as a single employer under subsection (b), (c), (m), or (o) of section 414 of the federal Internal Revenue Code are considered a single employer for purposes of determining the number of current employees. Small employer status must be determined on an annual basis as of the renewal date of the health benefit plan. The provisions of this chapter continue to apply to an employer who no longer meets the requirements of this definition until the annual renewal date of the employer's health benefit plan. If an employer was not in existence throughout the preceding calendar year, the determination of whether the employer is a small employer is based upon the average number of current employees that it is reasonably expected that the employer will employ on business days in the current calendar year. For purposes of this definition, the term employer includes any predecessor of the employer. An employer that has more than 50 current employees but has 50 or fewer employees, as "employee" is defined under section 3(6) of the federal Employee Retirement Income Security Act of 1974, is a small employer under this subdivision.

(b) Where an association, as defined in section 62L.045, comprised of employers contracts with a health carrier to provide coverage to its members who are small employers, the association and health benefit plans it provides to small employers, are subject to section 62L.045, with respect to small employers in the association, even though the association also provides coverage to its members that do not qualify as small employers.

(c) If an employer has employees covered under a trust specified in a collective bargaining agreement under the federal Labor-Management Relations Act of 1947, United States Code, title 29, section 141, et seq., as amended, or employees whose health coverage is determined by a collective bargaining agreement and, as a result of the collective bargaining agreement, is purchased separately from the health plan provided to other employees, those employees are excluded in determining whether the employer qualifies as a small employer. Those employees are considered to be a separate small employer if they constitute a group that would qualify as a small employer in the absence of the employees who are not subject to the collective bargaining agreement.

Sec. 9. Minnesota Statutes 1996, section 62L.02, is amended by adding a subdivision to read:

Subd. 29. [WAITING PERIOD.] "Waiting period" means, with respect to an individual who is a potential enrollee under a health benefit plan, the period that must pass with respect to the individual before the individual is eligible, under the employer's eligibility requirements, for coverage under the health benefit plan.


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Sec. 10. Minnesota Statutes 1996, section 62L.03, subdivision 1, is amended to read:

Subdivision 1. [GUARANTEED ISSUE AND REISSUE.] (a) Every health carrier shall, as a condition of authority to transact business in this state in the small employer market, affirmatively market, offer, sell, issue, and renew any of its health benefit plans, on a guaranteed issue basis, to any small employer that meets the participation and contribution requirements of subdivision 3, as provided in this chapter.

(b) Notwithstanding paragraph (a), a health carrier may, at the time of coverage renewal, modify the health coverage for a product offered in the small employer market if the modification is consistent with state law, approved by the commissioner, and effective on a uniform basis for all small employers purchasing that product other than through a qualified association in compliance with section 62L.045, subdivision 2.

This requirement Paragraph (a) does not apply to a health benefit plan designed for a small employer to comply with a collective bargaining agreement, provided that the health benefit plan otherwise complies with this chapter and is not offered to other small employers, except for other small employers that need it for the same reason. This paragraph applies only with respect to collective bargaining agreements entered into prior to August 21, 1996, and only with respect to plan years beginning before the later of July 1, 1997, or the date upon which the last of the collective bargaining agreements relating to the plan terminates determined without regard to any extension agreed to after August 21, 1996.

(c) Every health carrier participating in the small employer market shall make available both of the plans described in section 62L.05 to small employers and shall fully comply with the underwriting and the rate restrictions specified in this chapter for all health benefit plans issued to small employers.

(d) A health carrier may cease to transact business in the small employer market as provided under section 62L.09.

Sec. 11. Minnesota Statutes 1996, section 62L.03, subdivision 2, is amended to read:

Subd. 2. [EXCEPTIONS.] (a) No health maintenance organization is required to offer coverage or accept applications under subdivision 1 in the case of the following:

(1) with respect to a small employer, where the worksite of the employees of the small employer is not physically located does not have eligible employees who work or reside in the health maintenance organization's approved service areas; or

(2) with respect to an employee, when the employee does not work or reside within the health maintenance organization's approved service areas.

(b) A health carrier participating in the small employer market shall not be required to offer coverage or accept applications pursuant to subdivision 1 where the commissioner finds that the acceptance of an application or applications would place the health carrier participating in the small employer market in a financially impaired condition, provided, however, that a health carrier participating in the small employer market that has not offered coverage or accepted applications pursuant to this paragraph shall not offer coverage or accept applications for any health benefit plan until 180 days following a determination by the commissioner that the health carrier is not financially impaired and that offering coverage or accepting applications under subdivision 1 would not cause the health carrier to become financially impaired.

Sec. 12. Minnesota Statutes 1996, section 62L.03, subdivision 3, is amended to read:

Subd. 3. [MINIMUM PARTICIPATION AND CONTRIBUTION.] (a) A small employer that has at least 75 percent of its eligible employees who have not waived coverage participating in a health benefit plan and that contributes at least 50 percent toward the cost of coverage of each eligible employee must be guaranteed coverage on a guaranteed issue basis from any health carrier participating in the small employer market. The participation level of eligible employees must be determined at the initial offering of coverage and at the renewal date of coverage. A health carrier must not increase the participation requirements applicable to a small employer at any time after the small employer has been accepted for coverage. For the purposes of this subdivision, waiver of coverage includes only waivers due to: (1) coverage under another group health plan; (2) coverage under Medicare Parts A and B; (3) coverage under MCHA permitted under section 62E.141; or (4) coverage under medical assistance under chapter 256B or general assistance medical care under chapter 256D.


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(b) If a small employer does not satisfy the contribution or participation requirements under this subdivision, a health carrier may voluntarily issue or renew individual health plans, or a health benefit plan which must fully comply with this chapter. A health carrier that provides a health benefit plan to a small employer that does not meet the contribution or participation requirements of this subdivision must maintain this information in its files for audit by the commissioner. A health carrier may not offer an individual health plan, purchased through an arrangement between the employer and the health carrier, to any employee unless the health carrier also offers the individual health plan, on a guaranteed issue basis, to all other employees of the same employer.

(c) Nothing in this section obligates a health carrier to issue coverage to a small employer that currently offers coverage through a health benefit plan from another health carrier, unless the new coverage will replace the existing coverage and not serve as one of two or more health benefit plans offered by the employer. This paragraph does not apply if the small employer will meet the required participation level with respect to the new coverage.

Sec. 13. Minnesota Statutes 1996, section 62L.03, subdivision 4, is amended to read:

Subd. 4. [UNDERWRITING RESTRICTIONS.] (a) Health carriers may apply underwriting restrictions to coverage for health benefit plans for small employers, including any preexisting condition limitations, only as expressly permitted under this chapter. For purposes of this section, "underwriting restrictions" means any refusal of the health carrier to issue or renew coverage, any premium rate higher than the lowest rate charged by the health carrier for the same coverage, any preexisting condition limitation, preexisting condition exclusion, or any exclusionary rider.

(b) Health carriers may collect information relating to the case characteristics and demographic composition of small employers, as well as health status and health history information about employees, and dependents of employees, of small employers.

(c) Except as otherwise authorized for late entrants, preexisting conditions may be excluded by a health carrier for a period not to exceed 12 months from the effective enrollment date of coverage of an eligible employee or dependent, but exclusionary riders must not be used. When calculating a preexisting condition limitation, a health carrier shall credit the time period an eligible employee or dependent was previously covered by qualifying coverage, provided that the individual maintains continuous coverage. Late entrants may be subject to a preexisting condition limitation not to exceed 18 months from the effective enrollment date of coverage of the late entrant, but must not be subject to any exclusionary rider or preexisting condition exclusion. When calculating any length of preexisting condition limitation, a health carrier shall credit the time period an eligible employee or dependent was previously covered by qualifying coverage, provided that the individual maintains continuous coverage. The credit must be given for all qualifying coverage with respect to all preexisting conditions, regardless of whether the conditions were preexisting with respect to any previous qualifying coverage. Section 60A.082, relating to replacement of group coverage, and the rules adopted under that section apply to this chapter, and this chapter's requirements are in addition to the requirements of that section and the rules adopted under it. A health carrier shall, at the time of first issuance or renewal of a health benefit plan on or after July 1, 1993, credit against any preexisting condition limitation or exclusion permitted under this section, the time period prior to July 1, 1993, during which an eligible employee or dependent was covered by qualifying coverage, if the person has maintained continuous coverage.

(d) Health carriers shall not use pregnancy as a preexisting condition under this chapter.

Sec. 14. Minnesota Statutes 1996, section 62L.03, subdivision 5, is amended to read:

Subd. 5. [CANCELLATIONS AND FAILURES TO RENEW.] (a) No health carrier shall cancel, decline to issue, or fail to renew a health benefit plan as a result of the claim experience or health status of the persons covered or to be covered by the health benefit plan. For purposes of this subdivision, a failure to renew does not include a uniform modification of coverage at time of renewal, as described in subdivision 1.

(b) A health carrier may cancel or fail to renew a health benefit plan:

(1) for nonpayment of the required premium;

(2) for fraud or misrepresentation by the small employer, or, with respect to coverage of an individual eligible employee or dependent, fraud or misrepresentation by the eligible employee or dependent, with respect to eligibility for coverage or any other material fact;


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(3) if the employer fails to comply with the minimum contribution percentage required under subdivision 3; or

(4) for any other reasons or grounds expressly permitted by the respective licensing laws and regulations governing a health carrier, including, but not limited to, service area restrictions imposed on health maintenance organizations under section 62D.03, subdivision 4, paragraph (m), to the extent that these grounds are not expressly inconsistent with this chapter.

(c) A health carrier may fail to renew a health benefit plan:

(1) if eligible employee participation during the preceding calendar year declines to less than 75 percent, subject to the waiver of coverage provision in subdivision 3;

(2) if the health carrier ceases to do business in the small employer market under section 62L.09; or

(3) if a failure to renew is based upon the health carrier's decision to discontinue the health benefit plan form previously issued to the small employer, but only if the health carrier permits each small employer covered under the prior form to switch to its choice of any other health benefit plan offered by the health carrier, without any underwriting restrictions that would not have been permitted for renewal purposes.

(d) A health carrier need not renew a health benefit plan, and shall not renew a small employer plan, if an employer ceases to qualify as a small employer as defined in section 62L.02. If a health benefit plan, other than a small employer plan, provides terms of renewal that do not exclude an employer that is no longer a small employer, the health benefit plan may be renewed according to its own terms. If a health carrier issues or renews a health plan to an employer that is no longer a small employer, without interruption of coverage, the health plan is subject to section 60A.082. Between July 1, 1994, and June 30, 1995, a health benefit plan in force during this time may be renewed, if the number of employees exceeds two, but does not exceed 49 employees.

Sec. 15. [EFFECTIVE DATE.]

Sections 1 to 14 are effective July 1, 1997, and apply to coverage issued or renewed on or after that date.

ARTICLE 3

LARGE EMPLOYER MARKET CHANGES

Section 1. Minnesota Statutes 1996, section 62Q.18, subdivision 1, is amended to read:

Subdivision 1. [DEFINITION.] For purposes of this section,

(1) "continuous coverage" has the meaning given in section 62L.02, subdivision 9;

(2) "guaranteed issue" means:

(i) for individual health plans, that a health plan company shall not decline an application by an individual for any individual health plan offered by that health plan company, including coverage for a dependent of the individual to whom the health plan has been or would be issued; and

(ii) for group health plans, that a health plan company shall not decline an application by a group for any group health plan offered by that health plan company and shall not decline to cover under the group health plan any person eligible for coverage under the group's eligibility requirements, including persons who become eligible after initial issuance of the group health plan; and

(3) "large employer" means an entity that would be a small employer, as defined in section 62L.02, subdivision 26, except that the entity has more than 50 current employees, based upon the method provided in that subdivision for determining the number of current employees;


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(4) "preexisting condition" has the meaning given in section 62L.02, subdivision 23; and

(3) (5) "qualifying coverage" has the meaning given in section 62L.02, subdivision 24.

Sec. 2. Minnesota Statutes 1996, section 62Q.18, subdivision 7, is amended to read:

Subd. 7. [PORTABILITY OF COVERAGE.] Effective July 1, 1994, no health plan company shall offer, sell, issue, or renew any group health plan that does not, with respect to individuals who maintain continuous coverage and who qualify under the group's eligibility requirements:

(1) make coverage available on a guaranteed issue basis; and

(2) give full credit for previous continuous coverage against any applicable preexisting condition limitation or preexisting condition exclusion.; and

(3) with respect to a group health plan offered, sold, issued, or renewed to a large employer, impose preexisting condition limitations or preexisting condition exclusions except to the extent that would be permitted under chapter 62L if the group sponsor were a small employer as defined in section 62L.02, subdivision 26.

To the extent that this subdivision conflicts with chapter 62L, chapter 62L governs, regardless of whether the group sponsor is a small employer as defined in section 62L.02, except that for group health plans issued to groups that are not small employers, this subdivision's requirement that the individual have maintained continuous coverage applies. An individual who has maintained continuous coverage, but would be considered a late entrant under chapter 62L, may be treated as a late entrant in the same manner under this subdivision as permitted under chapter 62L.

Sec. 3. [62Q.185] [GUARANTEED RENEWABILITY; LARGE EMPLOYER GROUP HEALTH COVERAGE.]

(a) No health plan company, as defined in section 62Q.01, subdivision 4, shall refuse to renew a health benefit plan, as defined in section 62L.02, subdivision 15, but issued to a large employer, as defined in section 62Q.18, subdivision 1.

(b) This section does not require renewal if:

(1) the large employer has failed to pay premiums or contributions as required under the terms of the health benefit plan, or the health plan company has not received timely premium payments unless the late payments were received within a grace period provided under state law;

(2) the large employer has performed an act or practice that constitutes fraud or misrepresentation of material fact under the terms of the health benefit plan;

(3) the large employer has failed to comply with a material plan provision relating to employer contribution or group participation rules not prohibited by state law;

(4) the health plan company is ceasing to offer coverage in the large employer market in this state in compliance with United States Code, title 42, section 2712(c), and applicable state law;

(5) in the case of a health maintenance organization, there is no longer any enrollee in the large employer's health benefit plan who lives, resides, or works in the approved service area; or

(6) in the case of a health benefit plan made available to large employers only through one or more bona fide associations, the membership of the large employer in the association ceases, but only if such coverage is terminated uniformly without regard to any health-related factor relating to any covered individual.

(c) This section does not prohibit a health plan company from modifying the premium rate or from modifying the coverage for purposes of renewal.


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Sec. 4. [EFFECTIVE DATE.]

Sections 1 to 3 are effective July 1, 1997, and apply to health benefit plans offered, sold, issued, or renewed on or after that date.

ARTICLE 4

GENERAL PROVISIONS

Section 1. Minnesota Statutes 1996, section 62D.12, subdivision 1a, is amended to read:

Subd. 1a. [SWING-OUT PRODUCTS.] Notwithstanding subdivision 1, nothing in sections 62A.049, 62A.60, and 72A.201, subdivision 4a, applies to a commercial health policy issued under this chapter as a companion to a health maintenance contract. The commissioner has approval authority with respect to the commercial health policy.

Sec. 2. Minnesota Statutes 1996, section 62H.01, is amended to read:

62H.01 [JOINT SELF-INSURANCE EMPLOYEE HEALTH PLAN.]

Any two or more employers, excluding the state and its political subdivisions as described in section 471.617, subdivision 1, who are authorized to transact business in Minnesota may jointly self-insure employee health, dental, short-term disability benefits, or other benefits permitted under the Employee Retirement Income Security Act of 1974, United States Code, title 29, sections 1001 et seq. Joint plans must have a minimum of 100 covered employees and meet all conditions and terms of sections 62H.01 to 62H.08. Joint plans covering employers not resident in Minnesota must meet the requirements of sections 62H.01 to 62H.08 as if the portion of the plan covering Minnesota resident employees was treated as a separate plan. A plan may cover employees resident in other states only if the plan complies with the applicable laws of that state.

A multiple employer welfare arrangement as defined in United States Code, title 29, section 1002(40)(a), is subject to this chapter to the extent authorized by the Employee Retirement Income Security Act of 1974, United States Code, title 29, sections 1001 et seq. The commissioner of commerce may, on behalf of the state, enter into an agreement with the United States Secretary of Labor for delegation to the state of some or all of the secretary's enforcement authority with respect to multiple employer welfare arrangements, as described in United States Code, title 29, section 1136, subsection (c).

Sec. 3. [62Q.021] [FEDERAL ACT; COMPLIANCE REQUIRED.]

Each health plan company shall comply with the federal Health Insurance Portability and Accountability Act of 1996, to the extent that it imposes a requirement that applies in this state and that is not also required by the laws of this state. This section does not require compliance with any provision of the federal act prior to the effective date provided for that provision in the federal act. The commissioner shall enforce this section.

Sec. 4. [62Q.181] [WRITTEN CERTIFICATION OF COVERAGE.]

A health plan company shall provide the written certifications of coverage required under United States Code, title 42, sections 300gg and 300gg-43, as amended through November 1996. This section applies only to coverage that is subject to regulation under state law and only to the extent that the certification of coverage is required under federal law. The commissioner shall enforce this section.

Sec. 5. [EFFECTIVE DATE.]

Sections 2 and 3 are effective the day following final enactment. Sections 1 and 4 are effective July 1, 1997."


Journal of the House - 29th Day - Top of Page 1475

Delete the title and insert:

"A bill for an act relating to insurance; making changes in response to the federal Health Insurance Portability and Accountability Act of 1996; amending Minnesota Statutes 1996, sections 62D.12, subdivision 1a; 62E.02, subdivision 13; 62E.14, subdivisions 3 and 4c; 62H.01; 62L.02, subdivisions 9, 11, 15, 19, 23, 24, 26, and by adding subdivisions; 62L.03, subdivisions 1, 2, 3, 4, and 5; and 62Q.18, subdivisions 1 and 7; proposing coding for new law in Minnesota Statutes, chapter 62Q."

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. 1620, A bill for an act relating to counties; providing that issuance of a certain permit does not make a county liable for certain injuries; amending Minnesota Statutes 1996, section 86B.121.

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

The report was adopted.

Jaros from the Committee on Economic Development and International Trade to which was referred:

H. F. No. 1625, A bill for an act relating to the city of St. Paul; appropriating money to fund the Harriet Island Redevelopment.

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

The report was adopted.

Wenzel from the Committee on Agriculture to which was referred:

H. F. No. 1646, A bill for an act relating to agriculture; providing for competition and economic fairness in the marketing of dairy products; allowing retail price flexibility in sales of milk and milk products; repealing Minnesota Statutes 1996, sections 32.70; 32.71; 32.72; 32.73; and 32.74.

Reported the same back with the following amendments:

Page 2, after line 1, insert:

"Sec. 3. [REPEALER.]

Section 2 is repealed and Minnesota Statutes 1996, sections 32.70; 32.71; 32.72; 32.73; and 32.74, are revived effective July 1, 1998."

Page 2, line 2, delete "3" and insert "4"

Page 2, line 3, delete "July 1, 1997" and insert "30 days after final enactment"

With the recommendation that when so amended the bill pass and be re-referred to the Committee on Environment and Natural Resources Finance.

The report was adopted.


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Munger from the Committee on Environment and Natural Resources to which was referred:

H. F. No. 1719, A bill for an act relating to natural resources; appropriating money for a grant to Chippewa county for design and engineering specifications for certain recreational facilities.

Reported the same back with the recommendation that the bill pass and be re-referred to the Committee on Environment, Natural Resources and Agriculture Finance.

The report was adopted.

Jaros from the Committee on Economic Development and International Trade to which was referred:

H. F. No. 1766, A bill for an act relating to economic development; requiring the commissioner of trade and economic development to designate Koochiching county as an enterprise zone.

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

The report was adopted.

Jaros from the Committee on Economic Development and International Trade to which was referred:

H. F. No. 1796, A bill for an act relating to housing and redevelopment; removing a limitation on the uses of a levy by housing and redevelopment authority for certain project costs; amending Minnesota Statutes 1996, section 469.033, subdivision 6.

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

The report was adopted.

Munger from the Committee on Environment and Natural Resources to which was referred:

H. F. No. 1805, A bill for an act relating to natural resources; appropriating a road right-of-way for recreation in Washington county; appropriating money.

Reported the same back with the recommendation that the bill be re-referred to the Committee on Environment, Natural Resources and Agriculture Finance without further recommendation.

The report was adopted.

Jaros from the Committee on Economic Development and International Trade to which was referred:

H. F. No. 1811, A bill for an act relating to housing; appropriating money for the St. Louis Park Meadowbrook Collaborative Housing Project.

Reported the same back with the following amendments:

Page 2, line 2, after "a" insert "50 percent"

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

The report was adopted.


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Wagenius from the Committee on Transportation and Transit to which was referred:

H. F. No. 1851, A bill for an act relating to the environment; preserving prairies; limiting the application of pesticides; providing criminal penalties; appropriating money; proposing coding for new law in Minnesota Statutes, chapter 219.

Reported the same back with the following amendments:

Page 1, line 8, delete "January" and insert "November"

Page 1, line 16, after the comma, insert "and on similar inventories already conducted by the department of natural resources and other state or federal agencies," and after "commissioner" insert "of natural resources"

Page 1, line 18, delete "July 1, 1998" and insert "October 1, 1999"

Page 1, line 19, after the period, insert "Prior to completion of the plan, the department must issue management guidelines that railroads must implement immediately. The preservation plan shall supersede any management guidelines previously issued."

Page 2, after line 9, insert:

"(2) commercial application of pesticides on farmland and farm right-of-way;"

Page 2, line 10, delete "(2)" and insert "(3)"

Page 2, line 11, delete "(3)" and insert "(4)"

Page 2, line 12, delete "(4)" and insert "(5)"

Page 2, line 13, delete "(5)" and insert "(6)" and delete "obnoxious" and insert "noxious"

Page 2, line 16, delete "(6)" and insert "(7)"

Page 2, line 22, delete "application"

Page 2, delete lines 24 to 26

Page 2, line 31, after "companies" insert ", proportionately based on the number of railroad track miles each company maintains in the state."

Page 2, delete line 32

Page 2, line 35, delete "July" and insert "April" and before the period, insert ", except that subdivision 3 is effective March 15, 1998"

Amend the title as follows:

Page 1, lines 3 and 4, delete "providing criminal penalties;"

With the recommendation that when so amended the bill pass and be re-referred to the Committee on Environment, Natural Resources and Agriculture Finance.

The report was adopted.


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

H. F. No. 1894, A bill for an act relating to the city of Hibbing; authorizing the use of tax increments.

Reported the same back with the following amendments:

Page 1, line 10, delete everything after "to" and insert "elect that the district is subject to Minnesota Statutes, section 469.1763, subdivisions 1 and 2."

Page 1, delete lines 11 to 13

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

The report was adopted.

Carlson from the Committee on Education to which was referred:

H. F. No. 1899, A bill for an act relating to education; modifying the payment of state aids to school districts; amending Minnesota Statutes 1996, sections 124.155, subdivision 1; and 124.195, subdivisions 2, 7, 10, and 11; repealing Minnesota Statutes 1996, section 121.904, subdivision 4d.

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:

H. F. No. 1922, A bill for an act relating to tax increment financing; allowing the city of Columbia Heights to operate housing replacement districts; amending Laws 1995, chapter 264, article 5, sections 44, subdivision 4, as amended; and 45, subdivision 1, as amended.

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

The report was adopted.

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

H. F. No. 1927, A bill for an act relating to the city of Buffalo Lake; allowing an extension to certify an ethanol facility for purposes of tax increment financing.

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

The report was adopted.

Munger from the Committee on Environment and Natural Resources to which was referred:

H. F. No. 1955, A bill for an act relating to the environment; regulating emissions from certain electric generating power plants; proposing coding for new law in Minnesota Statutes, chapter 116.

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

The report was adopted.


Journal of the House - 29th Day - Top of Page 1479

Munger from the Committee on Environment and Natural Resources to which was referred:

H. F. No. 1983, A bill for an act relating to state lands; authorizing the sale of certain tax-forfeited land that borders public water in Blue Earth, Cass, Crow Wing, Becker, Aitkin, Mille Lacs, and Washington counties.

Reported the same back with the following amendments:

Page 6, line 16, before the period, insert ", and sold only to an adjacent landowner"

Page 7, after line 11, insert:

"Sec. 8. [PRIVATE SALE OF SURPLUS STATE LAND; HOUSTON COUNTY.]

(a) Notwithstanding Minnesota Statutes, sections 94.09 and 94.10, or any other law to the contrary, the commissioner of natural resources may convey by private sale the surplus state land described in paragraph (c).

(b) The land described in paragraph (c) may be sold by private sale to Pat White of Houston county, Minnesota. The conveyance must be in a form approved by the attorney general.

(c) The land to be conveyed is located in Houston county, consists of about .14 acre, and is described as:

All that part of the CMC Real Estate Corporation's (the former Chicago, Milwaukee, St. Paul and Pacific Railroad Company) real property in Government Lot 2, Section 25, Township 102 North, Range 4 West, Houston county, Minnesota, lying northwesterly of a line parallel with and 50 feet perpendicularly distant northwesterly of the center line of the Soo Line Railroad Company's main track, and being a strip of land 40 feet in width, lying northerly of, adjacent and contiguous to the following described line:

Commencing at the southwest corner of said Government Lot 2 from which the northwest corner of said Government Lot 2 bears North 01 degree 37 minutes 43 seconds East, bearing based on the Houston County Coordinate System of 1983; thence North 14 degrees 32 minutes 00 seconds East 536.38 feet to the west line of said CMC Real Estate Corporation's real property and the point of beginning of the line to be described; thence South 66 degrees 33 minutes 17 seconds East 150.00 feet to a point on a line parallel with and 50 feet perpendicularly distant northwesterly of the center line of the said Soo Line Railroad Company's main track and there terminating.

(d) The commissioner of natural resources has determined that the land conveyance would have no impact on the adjacent public access site and that the land would be put to better use if returned to private use.

Sec. 9. [PRIVATE SALE OF TAX-FORFEITED LAND BORDERING ON PUBLIC WATERS; COOK COUNTY.]

(a) Notwithstanding Minnesota Statutes, sections 92.45 and 282.018, subdivision 1, and the public sale provisions of Minnesota Statutes, chapter 282, Cook county may sell by private sale the tax-forfeited lands bordering public waters that are described in paragraph (c), under the remaining provisions of Minnesota Statutes, chapter 282.

(b) The conveyances must be in a form approved by the attorney general.

(c) The parcels of land that may be conveyed are located in Cook county and are described as:

(1) an undivided 1/3 interest in Government Lot 5, Section 28, Township 63 North, Range 1 East, containing approximately 14.08 acres; and

(2) an undivided 1/4 interest in the South one-half of the SW 1/4, the NW 1/4 of the SW 1/4, and Government Lot 4, Section 23, Township 63 North, Range 4 East.

(d) The county has determined that the county's land management interests would best be served if the lands were returned to private ownership.


Journal of the House - 29th Day - Top of Page 1480

Sec. 10. [PUBLIC SALE OF TAX-FORFEITED LAND BORDERING ON PUBLIC WATERS; COOK COUNTY.]

(a) Notwithstanding Minnesota Statutes, sections 92.45 and 282.018, subdivision 1, Cook county may sell the tax-forfeited lands bordering public waters that are described in paragraph (c), under the remaining provisions of Minnesota Statutes, chapter 282.

(b) The conveyance must be in a form approved by the attorney general.

(c) The parcel of land that may be conveyed is located in Cook county and is described as:

Part of Lot 2 and part of the NE 1/4 of SE 1/4, Section 22, Township 63 North, Range 3 East, containing approximately 65 acres.

(d) The county has determined that the county's land management interests would best be served if the lands were returned to private ownership.

Sec. 11. [TRANSFER OF TAX-FORFEITED LAND BORDERING PUBLIC WATER; WASHINGTON COUNTY.]

(a) Notwithstanding Minnesota Statutes, sections 92.45 and 282.018, subdivision 1, Washington county shall transfer the tax-forfeited land bordering public water that is described in paragraph (c) to the city of Oakdale, under the remaining provisions of Minnesota Statutes, chapter 282.

(b) The conveyance must be in a form approved by the attorney general.

(c) The land to be conveyed is located in Washington county and is described as follows: Outlot A, Oakpond Terrace, Washington county, Minnesota.

(d) Washington county has determined that the land is needed by the city of Oakdale for construction of a new fire station.

(e) Development of this parcel is limited to the north 230 feet of Outlot A.

Sec. 12. [PRIVATE SALE OF TAX-FORFEITED LAND; CARLTON COUNTY.]

(a) Notwithstanding Minnesota Statutes, section 92.45, the public sale provisions of Minnesota Statutes, chapter 282, or other law to the contrary, Carlton county may convey by private sale the tax-forfeited land described in paragraph (c).

(b) The land described in paragraph (c) may be sold by private sale to Interfaith Social Services of Carlton, Minnesota. The conveyance must be in a form approved by the attorney general for a consideration of taxes due on the property and any penalties, interest, and costs.

(c) The land to be conveyed is located in Carlton county and is described as:

North 6.66 acres of the West Half of the Northeast Quarter of the Southwest Quarter, subject to pipeline easement, Section 6, Township 48 North, Range 16 West, City of Carlton.

(d) A conservation easement, in a form prescribed by the commissioner of natural resources, must be reserved to the state within 100 feet of the ordinary high water mark of Slaughterhouse creek for public angler access and stream habitat protection and enhancement.

(e) Carlton county finds that the property would be put to better use if returned to private use."

Page 7, delete lines 13 and 14 and insert:

"Sections 1, 3 to 7, 9, 10, and 12 are effective the day following final enactment. Sections 2 and 11 are effective 30 days after final enactment."


Journal of the House - 29th Day - Top of Page 1481

Renumber the sections in sequence

Amend the title as follows:

Page 1, line 5, after the comma, insert, "Cook, Carlton," and before the period, insert "; authorizing the private sale of surplus state land in Houston county"

With the recommendation that when so amended the bill pass.

The report was adopted.

SECOND READING OF HOUSE BILLS

H. F. Nos. 445, 524, 591, 613, 630, 686, 687, 700, 787, 835, 861, 959, 1060, 1071, 1123, 1144, 1148, 1179, 1393, 1404, 1460, 1464, 1489, 1516, 1525, 1540, 1556, 1605, 1620, 1766, 1899 and 1983 were read for the second time.

INTRODUCTION AND FIRST READING OF HOUSE BILLS

The following House Files were introduced:

Workman, Kalis, Tunheim, Gunther and Goodno introduced:

H. F. No. 2029, A bill for an act relating to taxation; changing the taxation of solid waste management services; repealing the SCORE tax and the solid waste generator assessment fee; replacing those taxes and fees with a single tax; amending Minnesota Statutes 1996, sections 270B.01, subdivision 8; 297A.01, subdivision 3; 297A.25, subdivisions 11 and 16; and 297A.44, subdivision 1; proposing coding for new law as Minnesota Statutes, chapter 297F; repealing Minnesota Statutes 1996, sections 116.07, subdivision 10; 297A.01, subdivision 21; and 297A.45.

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

Huntley, Munger and Jaros introduced:

H. F. No. 2030, A bill for an act relating to appropriations; appropriating money for the state's share of the cost of the new Poe Lock at Sault Ste. Marie Narrows.

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

Mariani introduced:

H. F. No. 2031, A bill for an act relating to state government; requiring state agencies, educational institutions, and businesses to include a multiracial classification on all forms requesting information on racial identification; proposing coding for new law in Minnesota Statutes, chapter 15.

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

Koppendrayer, Hilty, Hasskamp, Wenzel and Rostberg introduced:

H. F. No. 2032, A bill for an act relating to economic development; appropriating money to reimburse resort owners for economic hardship due to enforcement of the 1837 Mille Lacs treaty.

The bill was read for the first time and referred to the Committee on Economic Development and International Trade.


Journal of the House - 29th Day - Top of Page 1482

Gunther, Solberg and Trimble introduced:

H. F. No. 2033, A bill for an act relating to the state fund mutual insurance company; providing for the board of directors at a certain time; amending Minnesota Statutes 1996, section 176A.02, subdivision 2.

The bill was read for the first time and referred to the Committee on Labor-Management Relations.

Winter, Sviggum, Solberg, Pawlenty and Delmont introduced:

H. F. No. 2034, A bill for an act relating to legislative committees and commissions; updating statutory references to legislative committees; repealing references to abolished legislative commissions; amending Minnesota Statutes 1996, sections 3.30, subdivision 2; 3.754; 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, 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; 116O.071, subdivision 3; 116O.09, subdivision 2; 116P.05, subdivision 1; 116P.08, subdivision 3; 116P.09, subdivision 7; 124.078; 124.2131, subdivision 1; 135A.046, subdivision 3; 136F.60, subdivision 1; 136F.98, subdivision 1; 137.02, subdivision 3a; 144.056; 144.701, subdivision 4; 144A.071, subdivision 5; 169.832, subdivision 13; 174.02, subdivision 6; 192.52; 240.18, subdivision 2; 240A.03, subdivision 15; 241.01, subdivision 5; 241.275, subdivision 5; 245.90; 246.64, subdivision 3; 252.035; 252.50, subdivision 2; 253.015, subdivision 2; 256.014, subdivision 3; 256.016; 256.031, subdivision 3; 256.736, subdivisions 3a and 9; 256.9352, subdivision 3; 256.9657, subdivision 1c; 256B.0629, subdivision 3; 256B.69, subdivision 3a; 268.916; 270.0604, subdivision 4; 270.063; 270.0681, subdivision 2; 270.0682, subdivision 2; 270.71; 270.74; 273.1398, subdivision 2c; 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; 473.3994, subdivision 9; 473.598, subdivision 3; 473.608, subdivision 12a; 473.845, subdivision 4; 473.846; and 473.848, subdivision 4; repealing Minnesota Statutes 1996, sections 3.841; 3.842; 3.843; 3.844; 3.845; 3.873; and 3.887.

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

Wenzel introduced:

H. F. No. 2035, A bill for an act relating to environment finance; appropriating money for the scientific and natural areas fund and providing for acquisition of Lake Alexander Woods.

The bill was read for the first time and referred to the Committee on Environment, Natural Resources and Agriculture Finance.

Johnson, A.; Carlson; Entenza and Tunheim introduced:

H. F. No. 2036, A bill for an act relating to education; appropriating money for telecommunications access grants.

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

Van Dellen, Stanek and Abrams introduced:

H. F. No. 2037, A bill for an act relating to traffic regulations; authorizing cities to establish maximum speed limits below 30 miles per hour on streets; amending Minnesota Statutes 1996, section 169.04.

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


Journal of the House - 29th Day - Top of Page 1483

Wenzel introduced:

H. F. No. 2038, A bill for an act relating to education; increasing the base budget of the Minnesota state colleges and universities; appropriating money.

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

Entenza introduced:

H. F. No. 2039, A bill for an act relating to education; appropriating money for a collaborative urban educator program.

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

Huntley, Munger and Jaros introduced:

H. F. No. 2040, A bill for an act relating to natural resources; appropriating money to assess the health of game fish populations and residue levels in the ten major river basins.

The bill was read for the first time and referred to the Committee on Environment and Natural Resources.

Ozment, Rukavina, Murphy, Smith and Winter introduced:

H. F. No. 2041, A bill for an act relating to retirement; revising investment reporting requirements; modifying penalty provisions; amending Minnesota Statutes 1996, sections 69.051, subdivisions 1, 1a, and 1b; 356.20, by adding a subdivision; 356.219; and 424A.02, subdivision 10; repealing Minnesota Statutes 1996, section 356.218.

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

Delmont, Goodno, Haas, Vickerman and Bradley introduced:

H. F. No. 2042, A bill for an act relating to professions and occupations; defining pharmacy technician; amending Minnesota Statutes 1996, section 151.01, by adding a subdivision; proposing coding for new law in Minnesota Statutes, chapter 151.

The bill was read for the first time and referred to the Committee on Health and Human Services.

Pugh; Greiling; Anderson, B.; Farrell and Knoblach introduced:

H. F. No. 2043, A bill for an act relating to state government; setting state policy for regulatory rules and programs of agencies; regulating obsolete, unnecessary, or duplicative rules; amending Minnesota Statutes 1996, sections 14.05, subdivision 5; and 14.131; proposing coding for new law in Minnesota Statutes, chapter 14.

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

McCollum introduced:

H. F. No. 2044, A bill for an act relating to human services; adding services paid by medical assistance under home care services; establishing qualification requirements for case management services under the alternative care program; establishing the statewide maximum rate for Ramsey county's homemaker services; requiring federal waiver for needs-based definition of elderly for the elderly waiver program; amending Minnesota Statutes 1996, sections 256B.0627, subdivision 5; 256B.0913, subdivision 7, and by adding a subdivision; and 256B.0915, subdivision 1b, and by adding a subdivision.

The bill was read for the first time and referred to the Committee on Health and Human Services.


Journal of the House - 29th Day - Top of Page 1484

Anderson, B., and Olson, M., introduced:

H. F. No. 2045, A bill for an act relating to education; making certain changes affecting school district election procedures; amending Minnesota Statutes 1996, section 205A.12, subdivisions 2, 3, and 5.

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

Nornes introduced:

H. F. No. 2046, A bill for an act relating to early childhood programs; appropriating money for a grant to independent school district No. 544, Fergus Falls.

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

Winter and Mulder introduced:

H. F. No. 2047, A bill for an act relating to adult education; appropriating money for a grant for televised GED programming.

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

Rostberg and Jennings introduced:

H. F. No. 2048, A bill for an act relating to the city of Cambridge; modifying a tax increment district to permit expenditures in the development district.

The bill was read for the first time and referred to the Committee on Local Government and Metropolitan Affairs.

Anderson, B.; Tuma and Olson, M., introduced:

H. F. No. 2049, A bill for an act relating to education; making certain changes affecting school district election procedures; amending Minnesota Statutes 1996, sections 205A.12; and 205A.13; proposing coding for new law in Minnesota Statutes, chapter 205A.

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

Anderson, B., introduced:

H. F. No. 2050, A bill for an act relating to education; making certain changes affecting school district election procedures; amending Minnesota Statutes 1996, section 205A.13.

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

Anderson, B., introduced:

H. F. No. 2051, A bill for an act relating to education; making certain changes affecting school district election procedures; proposing coding for new law in Minnesota Statutes, chapter 205A.

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


Journal of the House - 29th Day - Top of Page 1485

Rifenberg, Paulsen, Stang, Commers and Tingelstad introduced:

H. F. No. 2052, A bill for an act relating to taxation; individual income; providing a nonrefundable personal and dependent credit for the 1996 tax year; amending Minnesota Statutes 1996, section 290.06, by adding a subdivision.

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

McGuire introduced:

H. F. No. 2053, A bill for an act relating to crime prevention; ending the state's operation of the Minnesota correctional facility-Sauk Centre; requiring the commissioner of administration to issue a request for proposals and select a vendor to operate the facility; requiring the commissioner of corrections to charge counties for juveniles placed at the Minnesota correctional facility-Red Wing and to develop admissions criteria for the facility; striking the requirement that the Minnesota correctional facility-Red Wing accept all juveniles; requiring a report to the legislature; establishing a state policy discouraging the out-of-state placement of juveniles; appropriating money; amending Minnesota Statutes 1996, sections 242.19, subdivision 2; 242.55; and 401.13; proposing coding for new law in Minnesota Statutes, chapter 242; repealing Minnesota Statutes 1996, section 242.51.

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

Johnson, R., and Kelso introduced:

H. F. No. 2054, A bill for an act relating to education; placing college students in K-12 schools through state work study; appropriating money; amending Minnesota Statutes 1996, section 136A.233, by adding a subdivision.

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

Stanek introduced:

H. F. No. 2055, A bill for an act relating to local government; repealing authority for certain local residency requirements; repealing Laws 1993, chapter 260; and Laws 1994, chapter 570.

The bill was read for the first time and referred to the Committee on Local Government and Metropolitan Affairs.

Osthoff introduced:

H. F. No. 2056, A bill for an act relating to crime prevention; appropriating money for a joint use police storefront and youth activity center.

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

Skoglund, for the Committee on Judiciary, introduced:

H. F. No. 2057, A bill for an act relating to landlords and tenants; recodifying, clarifying, and relocating landlord tenant law; proposing coding for new law as Minnesota Statutes, chapter 504A; repealing Minnesota Statutes 1996, sections 504.01; 504.012; 504.015; 504.02; 504.03; 504.04; 504.05; 504.06; 504.07; 504.08; 504.09; 504.18; 504.181; 504.183; 504.185; 504.20; 504.201; 504.21; 504.22; 504.23; 504.24; 504.245; 504.246; 504.25; 504.255; 504.257; 504.26; 504.265; 504.27; 504.28; 504.29; 504.30; 504.31; 504.32; 504.36; 566.01; 566.02; 566.021; 566.03; 566.04; 566.05; 566.051; 566.06; 566.07; 566.08; 566.09; 566.10; 566.11; 566.12; 566.13; 566.14; 566.15; 566.16; 566.17; 566.175; 566.18; 566.19; 566.20; 566.205; 566.21; 566.22; 566.23; 566.24; 566.25; 566.26; 566.27; 566.28; 566.29; 566.291; 566.30; 566.31; 566.32; 566.33; 566.34; and 566.35.

The bill was read for the first time and laid over one day.


Journal of the House - 29th Day - Top of Page 1486

Greenfield, Long and Huntley introduced:

H. F. No. 2058, A bill for an act relating to taxes; exempting premiums received from the federal government for Medicare-related coverage from the premium tax; amending Minnesota Statutes 1996, section 60A.15, subdivision 1.

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

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

RECESS

RECONVENED

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

CONSIDERATION UNDER RULE 1.10

Pursuant to rule 1.10, Solberg requested immediate consideration of S. F. No. 1.

S. F. No. 1 was reported to the House.

Macklin moved to amend S. F. No. 1, the unofficial engrossment, as follows:

Pages 219 to 226, delete section 8

Page 228, delete section 12

Page 231, delete section 16

Page 232, delete section 18

Pages 232 to 233, delete section 19

Pages 234 to 235, delete section 21

Renumber sections in article 4

Correct internal references

Page 256, lines 24 to 25, delete the new language and insert ", Minnesota family investment program-statewide"

Page 256, line 29, after "assistance" insert ", MFIP-S,"

Page 256, lines 29 to 30, delete the new language

Page 256, lines 33 to 34, delete the new language and insert ", MFIP-S"

Page 256, line 34, delete "program" and reinstate the stricken language

Page 264, line 24, before "Any" insert "Except for agency error claims,"


Journal of the House - 29th Day - Top of Page 1487

Page 264, line 27, delete everything after "program" and insert a semicolon

Page 264, line 28, delete "claims,"

Page 267, line 29, delete "in effect until January 1, 1998"

Page 269, lines 13 to 14, delete "in effect until January 1, 1998"

Page 272, line 21, reinstate "AFDC"

Page 272, line 22, before "MFIP-S" insert a comma

The motion prevailed and the amendment was adopted.

Jennings moved to amend S. F. No. 1, the unofficial engrossment, as amended, as follows:

Page 16, line 31, delete everything before "Subdivisions"

Page 20, line 3, after "MFIP-S," insert "whichever is in effect,"

Page 21, line 9, after "MFIP-S," insert "whichever is in effect,"

Page 87, line 33, after "LANGUAGE" insert "PROGRAM" and after "language" insert "program"

Page 99, line 11, delete "in the participant's employment plan"

Page 167, after line 5, insert:

"Sec. 7. Minnesota Statutes 1996, section 256.74, is amended by adding a subdivision to read:

Subd. 1c. [MFIP AND MFIP-R COMPARISON GROUP FAMILIES.] Notwithstanding subdivision 1, the limitations of this subdivision apply to MFIP and MFIP-R comparison group families under sections 256.031 to 256.0361. The disregard of thirty dollars plus one-third of earned income in this clause shall be applied to the individual's income for a period not to exceed four consecutive months. Any month in which the individual loses this disregard because of the provisions of subclauses (a) to (c) of subdivision 1 shall be considered as one of the four months. An additional $30 work incentive must be available for an eight month period beginning in the month following the last month of the combined $30 and one-third work incentive. This period must be in effect whether or not the person has earned income or is eligible for AFDC. To again qualify for the earned income disregards under this clause, the individual must not be a recipient of and for a period of 12 consecutive months. When an assistance unit becomes ineligible for aid due to the fact that these disregards are no longer applied to income, the assistance unit shall be eligible for medical assistance benefits for a 12 month period beginning with the first month of AFDC ineligibility."

Page 185, line 16, delete "January 1, 1998" and insert "July 1, 1997"

Page 207, line 3, after "Subd. 2b." insert "[DISABILITY VERIFICATION; DRUG OR ALCOHOL DEPENDENCY.]"

Page 208, line 30, delete "in effect on"

Page 211, line 10, delete ", 22, and 25" and insert "and 22"

Renumber the sections in sequence and correct internal references

Amend the title accordingly

The motion prevailed and the amendment was adopted.


Journal of the House - 29th Day - Top of Page 1488

Jennings moved to amend S. F. No. 1, the unofficial engrossment, as amended, as follows:

Page 5, line 5, after the first comma insert "program participants"

Page 39, line 18, after "parole" insert "or supervised release"

Page 39, line 18, delete the second "or" and insert "law or the law of any"

Page 39, line 19, delete "law"

Page 89, line 18, after "volunteer work," insert "literacy programs and related activities,"

Page 185, line 34, after "parole" insert "or supervised release"

Page 185, line 34, delete the second "or" and insert "law or the law of any"

Page 185, line 35, delete "law"

Page 277, after line 17, insert:

"Sec. 25. Minnesota Statutes 1996, section 375.21, subdivision 1, is amended to read:

Subdivision 1. [PROCEDURE, CONDITIONS.] When required by the dollar limitations of section 471.345, a contract for work or labor, or to purchase furniture, fixtures, or other property, or to construct or repair roads, bridges, or buildings shall be made by a county board only after advertising for bids or proposals in a qualified legal newspaper of the county. For the purchase of property or for work and labor, two weeks published notice that proposals will be received, stating the time and place, shall be given. For the construction or repair of roads, bridges, or buildings, three weeks published notice shall be given. The notice shall state the time and place of awarding the contract and contain a brief description of the work. Every contract shall be awarded to the lowest responsible bidder and duly executed in writing. The county may, by board resolution, determine a wage rate that must be met or exceeded for a bidder to be a responsible bidder. The wage rate may be calculated so that it is sufficient, on a full-time basis, to allow the bidder's employees to live without public assistance. The person to whom a contract is awarded for work or labor or for the construction or repair of roads, bridges, or buildings shall give a sufficient bond to the board for its faithful performance. If no satisfactory bid is received, the board may readvertise.

An advertised standard requirement price contract for supplies or services established by competitive bids may contain an escalation clause and may provide for a negotiated price increase or decrease. The escalation or negotiated change shall be based upon a demonstrable industrywide or regional increase or decrease in the vendor's costs.

Every contract made without compliance with this section is void.

In case of an emergency arising from the destruction or impassability of roads or bridges by floods, rain or snow, or other casualty, or from the breaking or damaging of any property in the county, if the public health, safety, or welfare would suffer by delay, contracts for purchase or repairs may be made without advertising for bids, but in that case the action of the board shall be recorded in its official proceedings."

Renumber the sections in sequence and correct internal references

Amend the title accordingly

The motion prevailed and the amendment was adopted.


Journal of the House - 29th Day - Top of Page 1489

Goodno and Jennings moved to amend S. F. No. 1, the unofficial engrossment, as amended, as follows:

Page 59, line 26, after the period insert "For purposes of this subdivision "sponsor" means an individual or organization."

Page 75, after line 4, insert:

"(g) Applicants must provide verification of their state of immediate prior residence, in the form of tax statements, a driver's license, automobile registration, rent receipts, or other forms of verification approved by the commissioner."

Page 76, line 6, delete everything after the period and insert "The caregiver must attend the orientation."

Page 76, delete lines 7 to 9

Page 101, line 19, delete everything after the period and insert "The department plan must require the caregiver to accept any suitable employment."

Page 101, delete lines 20 to 23

Page 176, line 35, after the period insert "For purposes of this subdivision "sponsor" means an individual or organization."

Page 194, line 34, after the period insert "For purposes of this subdivision "sponsor" means an individual or organization."

Page 205, after line 31, insert:

"(e) Applicants must provide verification of their state of immediate prior residence, in the form of tax statements, a driver's license, automobile registration, rent receipts, or other forms of verification approved by the commissioner."

Page 205, line 32, delete "(e)" and insert "(f)"

The motion prevailed and the amendment was adopted.

Goodno and Jennings moved to amend S. F. No. 1, the unofficial engrossment, as amended, as follows:

Page 21, line 8, before "RESIDENCY" insert "SIMPLE"

Page 21, line 9, before the period insert "which means the family is present in the state and intends to remain here"

Page 21, line 10, before "A" insert "Subd. 1a. [30-DAY RESIDENCY REQUIREMENT.]"

Page 21, line 11, after "state" insert "only"

Page 21, after line 36, insert:

"Subd. 4. [SEVERABILITY CLAUSE.] If any subdivision in this section is enjoined from implementation or found unconstitutional by any court of competent jurisdiction, the remaining subdivisions shall remain valid and shall be given full effect."

Page 38, after line 35, insert:

"Sec. 15. [256J.25] [RETURN OF UTILITY DEPOSIT.]

A county may require that assistance paid under MFIP-S in the form of a utility deposit less any amount retained to satisfy outstanding utility costs be returned to the county when the person vacates the premises or be paid for the person's new housing unit as a vendor payment.


Journal of the House - 29th Day - Top of Page 1490

Section 15 is effective January 1, 1998, except the transitional provision in section 72 applies."

Page 40, line 13, after "assistance" insert "shall not be paid in cash, and"

Page 84, line 19, after "DAMAGE" insert "OR UTILITY"

Page 84, line 20, after "damage" insert "or utility"

Page 84, line 21, after the period insert "The county may require that assistance paid in the form of a damage deposit or a utility deposit, less any amount retained by the landlord to remedy a tenant's default in payment of rent or other funds due to the landlord pursuant to a rental agreement, or to restore the premises to the condition at the commencement of the tenancy, ordinary wear and tear excepted, be returned to the county when the individual vacates the premises or be paid to the recipient's new landlord as a vendor payment. The vendor payment of returned funds shall not be considered a new use of emergency assistance."

Renumber the sections in Article 1 in sequence and correct internal references

Page 97, after line 26, insert:

"Subd. 9. [SELF-EMPLOYMENT; ANNUAL REVIEW.] If the participant's work activity includes self-employment, after each twelve month period of self-employment the job counselor must review the participant's circumstances to determine if the participant is making adequate progress towards self-sufficiency.

If after the review the job counselor determines that the participant is not making adequate progress towards self-sufficiency, the job counselor must work with the participant to amend the participant's employment plan as necessary to address the problem. If no employment plan is in effect, the participant, county agency, or job counselor may request a secondary assessment at this time."

Page 132, line 1, after the comma insert "the simple residency requirement of section 256J.12 shall continue to be in effect and"

Page 167, after line 5, insert:

"Sec. 7. Minnesota Statutes 1996, section 256.81, is amended to read:

256.81 [COUNTY AGENCY, DUTIES.]

(1) The county agency shall keep such records, accounts, and statistics in relation to aid to families with dependent children as the state agency shall prescribe.

(2) Each grant of aid to families with dependent children shall be paid to the recipient by the county agency unless paid by the state agency. Payment must be in the form of a warrant immediately redeemable in cash, electronic benefits transfer, or by direct deposit into the recipient's account in a financial institution, except in those instances in which the county agency, subject to the rules of the state agency, determines that payments for care shall be made to an individual other than the parent or relative with whom the dependent child is living or to vendors of goods and services for the benefit of the child because such parent or relative is unable to properly manage the funds in the best interests and welfare of the child. There is a presumption of mismanagement of funds whenever a recipient is more than 30 days in arrears on payment of rent, except when the recipient has withheld rent to enforce the recipient's right to withhold the rent in accordance with federal, state, or local housing laws. In cases of mismanagement based solely on failure to pay rent, the county may vendor the rent payments to the landlord. At the request of a recipient, the state or county may make payments directly to vendors of goods and services, but only for goods and services appropriate to maintain the health and safety of the child, as determined by the county.


Journal of the House - 29th Day - Top of Page 1491

(3) The state or county may ask the recipient to give written consent authorizing the state or county to provide advance notice to a vendor before vendor payments of rent are reduced or terminated. Whenever possible under state and federal laws and regulations and if the recipient consents, the state or county shall provide at least 30 days notice to vendors before vendor payments of rent are reduced or terminated. If 30 days notice cannot be given, the state or county shall notify the vendor within three working days after the date the state or county becomes aware that vendor payments of rent will be reduced or terminated. When the county notifies a vendor that vendor payments of rent will be reduced or terminated, the county shall include in the notice that it is illegal to discriminate on the grounds that a person is receiving public assistance and the penalties for violation. The county shall also notify the recipient that it is illegal to discriminate on the grounds that a person is receiving public assistance and the procedures for filing a complaint. The county agency may develop procedures, including using the MAXIS system, to implement vendor notice and may charge vendors a fee not exceeding $5 to cover notification costs.

(4) A vendor payment arrangement is not a guarantee that a vendor will be paid by the state or county for rent, goods, or services furnished to a recipient, and the state and county are not liable for any damages claimed by a vendor due to failure of the state or county to pay or to notify the vendor on behalf of a recipient, except under a specific written agreement between the state or county and the vendor or when the state or county has provided a voucher guaranteeing payment under certain conditions.

(5) The county shall be paid from state and federal funds available therefor the amount provided for in section 256.82.

(6) Federal funds available for administrative purposes shall be distributed between the state and the counties in the same proportion that expenditures were made except as provided for in section 256.017.

(7) The affected county may require that assistance paid under the AFDC emergency assistance program in the form of a utility deposit or rental unit damage deposit, less any amount retained by the landlord to remedy a tenant's default in payment of rent or other funds due to the landlord pursuant to a rental agreement, or to restore the premises to the condition at the commencement of the tenancy, ordinary wear and tear excepted, be returned to the county when the individual vacates the premises or paid to the recipient's new landlord as a vendor payment. The vendor payment of returned funds shall not be considered a new use of emergency assistance.

Section 7 is effective July 1, 1997."

Renumber the sections in Article 3 in sequence and correct internal references

Page 183, line 27, after "a" insert "person must be a resident of this state."

Page 183, line 28, before "resident" insert "(b) A"

Page 184, line 9, strike "(b)" and insert "(c)"

Page 185, line 4, delete "(c)" and insert "(d)" and delete "(b)" and insert "(c)"

Page 185, line 13, delete "(d)" and insert "(e)"

Page 185, line 14, delete "(a)" and insert "(b)"

Page 185, after line 15, insert:

"(f) If any provision of this subdivision is enjoined from implementation or found unconstitutional by any court of competent jurisdiction, the remaining provisions shall remain valid and shall be given full effect."

Page 185, line 16, delete "January 1, 1998" and insert "July 1, 1997"

Page 210, line 28, after "shall" insert "continue to require that applicants meet the simple residency requirement of presence in the state with the intent to make a permanent home here, and shall"


Journal of the House - 29th Day - Top of Page 1492

Page 211, line 10, before "22" insert "and" and delete ", and 25"

The motion prevailed and the amendment was adopted.

Mariani, Koskinen, Clark, Hausman, Kinkel, Garcia, Luther, Greenfield, and Wejcman moved to amend S. F. No. 1, the unofficial engrossment, as amended, as follows:

Page 104, line 9, delete "12 weeks" and insert "one year"

A roll call was requested and properly seconded.

The question was taken on the Mariani et al amendment and the roll was called. There were 74 yeas and 59 nays as follows:

Those who voted in the affirmative were:

Anderson, I. Finseth Kahn McGuire Pelowski Sykora
Bakk Folliard Kalis Milbert Peterson Tomassoni
Biernat Garcia Kelso Mulder Pugh Trimble
Carlson Greenfield Kinkel Mullery Rest Tuma
Chaudhary Greiling Koskinen Munger Rhodes Wagenius
Clark Hasskamp Kubly Murphy Rostberg Wejcman
Dawkins Hausman Leighton Nornes Rukavina Wenzel
Dehler Hilty Leppik Olson, E. Schumacher Winter
Delmont Huntley Lieder Opatz Sekhon Spk. Carruthers
Dorn Jaros Long Osskopp Skare
Entenza Jennings Luther Osthoff Skoglund
Evans Johnson, R. Mariani Otremba Slawik
Farrell Juhnke Marko Paymar Solberg

Those who voted in the negative were:

Abrams Dempsey Knight Mares Rifenberg Tompkins
Anderson, B. Erhardt Knoblach McCollum Seagren Tunheim
Bettermann Goodno Koppendrayer McElroy Seifert Van Dellen
Bishop Gunther Kraus Molnau Smith Vickerman
Boudreau Haas Krinkie Ness Stanek Weaver
Bradley Harder Kuisle Olson, M. Stang Westfall
Broecker Holsten Larsen Ozment Sviggum Westrom
Commers Jefferson Lindner Paulsen Swenson, D. Wolf
Daggett Johnson, A. Macklin Pawlenty Swenson, H. Workman
Davids Kielkucki Mahon Reuter Tingelstad

The motion prevailed and the amendment was adopted.

Smith and Davids moved to amend S. F. No. 1, the unofficial engrossment, as amended, as follows:

Page 281, after line 5, insert:

"ARTICLE 8

REPORT REQUIRED

Section 1. Minnesota Statutes 1996, section 145.411, is amended by adding a subdivision to read:

Subd. 6. [COMMISSIONER.] "Commissioner" means the commissioner of health.


Journal of the House - 29th Day - Top of Page 1493

Sec. 2. [145.4131] [RECORDING AND REPORTING ABORTION DATA.]

Subdivision 1. [FORMS.] (a) Within 90 days of the effective date of this section, the commissioner shall prepare a reporting form for physicians performing abortions. A copy of this section shall be attached to the form. A physician performing an abortion shall obtain a form from the commissioner.

(b) The form shall require the following information:

(1) the number of abortions performed by the physician in the previous calendar year, reported by month;

(2) the method used for each abortion;

(3) the approximate gestational age of each child subject to abortion, expressed in one of the following increments:

(i) less than nine weeks;

(ii) nine to ten weeks;

(iii) 11 to 12 weeks;

(iv) 13 to 15 weeks;

(v) 16 to 20 weeks;

(vi) 21 to 24 weeks;

(vii) 25 to 30 weeks;

(viii) 31 to 36 weeks; or

(ix) 37 weeks to term;

(4) the age of the mother on whom the abortion was performed at the time the abortion was performed;

(5) the specific reason for the abortion, including, but not limited to, the following:

(i) the pregnancy was a result of rape;

(ii) the pregnancy was a result of incest;

(iii) the mother cannot afford the child;

(iv) the mother does not want the child;

(v) the mother's emotional health is at stake;

(vi) the mother will suffer substantial and irreversible impairment of a major bodily function if the pregnancy continues; or

(vii) other;

(6) whether the abortion was paid for by:

(i) private insurance;


Journal of the House - 29th Day - Top of Page 1494

(ii) a public health plan; or

(iii) another form of payment;

(7) whether coverage was under:

(i) a fee-for-service insurance company;

(ii) a managed care company; or

(iii) another type of health carrier;

(8) complications, if any, for each abortion and for the aftermath of each abortion. Space for a description of any complications shall be available on the form;

(9) the fee collected for each abortion;

(10) the type of anesthetic used, if any, for each abortion;

(11) the method used to dispose of fetal tissue and remains;

(12) the medical specialty of the physician performing the abortion; and

(13) whether the physician performing the abortion has had a physician's license suspended or revoked or has had other professional sanctions in this or another state.

Subd. 2. [SUBMISSION.] A physician performing an abortion shall complete and submit the form to the commissioner no later than April 1 for abortions performed in the previous calendar year.

Subd. 3. [ADDITIONAL REPORTING.] Nothing in this section shall be construed to preclude the voluntary or required submission of other reports or forms regarding abortions.

Sec. 3. [145.4132] [RECORDING AND REPORTING ABORTION COMPLICATION DATA.]

Subdivision 1. [FORMS.] (a) Within 90 days of the effective date of this section, the commissioner shall prepare an abortion complication reporting form for all physicians licensed and practicing in the state. A copy of this section shall be attached to the form.

(b) The board of medical practice shall ensure that the abortion complication reporting form is distributed:

(1) to all physicians licensed to practice in the state, within 120 days after the effective date of this section and by December 1 of each subsequent year; and

(2) to a physician who is newly licensed to practice in the state, at the same time as official notification to the physician that the physician is so licensed.

Subd. 2. [REQUIRED REPORTING.] A physician licensed and practicing in the state who encounters an illness or injury that is related to an induced abortion shall complete and submit an abortion complication reporting form to the commissioner.

Subd. 3. [SUBMISSION.] A physician required to submit an abortion complication reporting form to the commissioner shall do so as soon as practicable after the encounter with the abortion related illness or injury, but in no case more than 60 days after the encounter.

Subd. 4. [ADDITIONAL REPORTING.] Nothing in this section shall be construed to preclude the voluntary or required submission of other reports or forms regarding abortion complications.


Journal of the House - 29th Day - Top of Page 1495

Sec. 4. [145.4133] [REPORTING OUT-OF-STATE ABORTIONS.]

The commissioner of human services shall report to the commissioner by April 1 each year the following information regarding abortions paid for with state funds and performed out of state in the previous calendar year:

(1) the total number of abortions performed out of state and partially or fully paid for with state funds through the medical assistance, general assistance medical care, or MinnesotaCare program or any other program;

(2) the total amount of state funds used to pay for the abortions and expenses incidental to the abortions; and

(3) the gestational age of each unborn child at the time of abortion.

Sec. 5. [145.4134] [COMMISSIONER'S PUBLIC REPORT.]

(a) By July 1 of each year, the commissioner shall issue a public report providing statistics for the previous calendar year compiled from the data submitted under sections 145.4131 to 145.4133. Each report shall provide the statistics for all previous calendar years, adjusted to reflect any additional information from late or corrected reports. The commissioner shall ensure that none of the information included in the public reports can reasonably lead to identification of an individual having performed or having had an abortion. All data included on the forms under sections 145.4131 to 145.4133 must be included in the public report. The commissioner shall submit the report to the senate health care committee and the house health and human services committee.

(b) The commissioner may, by rules adopted under chapter 14, alter the submission dates established under sections 145.4131 to 145.4133 for administrative convenience, fiscal savings, or other valid reason, provided that physicians and the commissioner of health submit the required information once each year and the commissioner issues a report once each year.

Sec. 6. [145.4135] [ENFORCEMENT; PENALTIES.]

(a) A physician who fails to submit the required forms under sections 145.4131 and 145.4132 within 30 days following the due date is subject to a late fee of $500 for each 30-day period, or portion thereof, that the forms are overdue. A physician required to report under this section who does not submit a report, or submits only an incomplete report, more than one year following the due date, may be fined and, in an action brought by the commissioner, be directed by a court of competent jurisdiction to submit a complete report within a period stated by court order or be subject to sanctions for civil contempt.

(b) If the commissioner fails to issue the public report required under this section, or fails in any way to enforce this section, a group of ten or more citizens of the state may seek an injunction in a court of competent jurisdiction against the commissioner requiring that a complete report be issued within a period stated by court order or requiring that enforcement action be taken. Failure to abide by an injunction shall subject the commissioner to sanctions for civil contempt.

(c) A physician who knowingly or recklessly submits a false report under this section is guilty of a misdemeanor.

(d) The commissioner may take reasonable steps to ensure compliance with sections 145.4131 to 145.4133 and to verify data provided, including but not limited to inspection of places where abortions are performed in accordance with chapter 14.

Sec. 7. [145.4136] [SEVERABILITY.]

If any one or more provision, section, subsection, sentence, clause, phrase, or word of sections 145.4131 to 145.4135, or the application thereof to any person or circumstance is found to be unconstitutional, the same is hereby declared to be severable and the balance of sections 145.4131 to 145.4135 shall remain effective notwithstanding such unconstitutionality.


Journal of the House - 29th Day - Top of Page 1496

The legislature hereby declares that it would have passed sections 145.4131 to 145.4135, and each provision, section, subsection, sentence, clause, phrase, or word thereof, irrespective of the fact that any one or more provision, section, subsection, sentence, clause, phrase, or word be declared unconstitutional."

Renumber the sections in sequence and correct internal references

Amend the title accordingly

A roll call was requested and properly seconded.

POINT OF ORDER

Abrams raised a point of order pursuant to rule 3.09 that the Smith and Davids amendment was not in order.

Pursuant to Rule 1.10, Solberg withdrew his request for immediate consideration of S. F. No. 1, as amended.

MESSAGES FROM THE SENATE

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. 1088, A bill for an act relating to elections; allowing towns to rotate names of candidates on town ballots; amending Minnesota Statutes 1996, section 205.17, subdivision 1.

H. F. No. 1093, A bill for an act relating to elections; authorizing the electors of a metropolitan town to move the town election from March to November; amending Minnesota Statutes 1996, section 205.075, subdivision 2.

Patrick E. Flahaven, Secretary of the Senate

Mr. Speaker:

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

H. F. No. 473, A bill for an act relating to metropolitan government; permitting the metropolitan council to operate preventive health and employee recognition programs; amending Minnesota Statutes 1996, section 473.129, by adding a subdivision.

Patrick E. Flahaven, Secretary of the Senate

Chaudhary moved that the House refuse to concur in the Senate amendments to H. F. No. 473, that the Speaker appoint a Conference Committee of 3 members of the House, and that the House requests that a like committee be appointed by the Senate to confer on the disagreeing votes of the two houses. The motion prevailed.


Journal of the House - 29th Day - Top of Page 1497

Mr. Speaker:

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

H. F. No. 219, A bill for an act relating to employment; requiring leaves of absence without pay for employees rendering services as members of the civil air patrol; proposing coding for new law in Minnesota Statutes, chapter 181.

Patrick E. Flahaven, Secretary of the Senate

CONCURRENCE AND REPASSAGE

Hasskamp moved that the House concur in the Senate amendments to H. F. No. 219 and that the bill be repassed as amended by the Senate. The motion prevailed.

H. F. No. 219, A bill for an act relating to employment; requiring leaves of absence without pay for employees rendering services as members of the civil air patrol; proposing coding for new law in Minnesota Statutes, chapter 181.

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

The question was taken on the repassage of the bill and the roll was called. There were 133 yeas and 0 nays as follows:

Those who voted in the affirmative were:

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

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


Journal of the House - 29th Day - Top of Page 1498

Mr. Speaker:

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

H. F. No. 268, A bill for an act relating to corrections; modifying multiple occupancy requirements applicable to state prisons; amending the appropriation to build a close-custody correctional facility of at least 800 beds; providing that the new facility shall be at level four; deleting certain construction bid requirements; amending Minnesota Statutes 1996, section 243.53, subdivision 1; Laws 1996, chapter 463, section 16, subdivision 3; repealing Minnesota Statutes 1996, section 243.53, subdivision 2.

Patrick E. Flahaven, Secretary of the Senate

Murphy moved that the House refuse to concur in the Senate amendments to H. F. No. 268, that the Speaker appoint a Conference Committee of 5 members of the House, and that the House requests that a like committee be appointed by the Senate to confer on the disagreeing votes of the two houses.

A roll call was requested and properly seconded.

The question was taken on the Murphy motion and the roll was called. There were 77 yeas and 55 nays as follows:

Those who voted in the affirmative were:

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

Those who voted in the negative were:

Abrams Finseth Krinkie Nornes Smith Vickerman
Anderson, B. Goodno Kuisle Olson, M. Stanek Weaver
Bettermann Gunther Leppik Osskopp Stang Westfall
Boudreau Haas Lindner Paulsen Sviggum Westrom
Bradley Harder Macklin Pawlenty Swenson, H. Wolf
Chaudhary Kielkucki Mares Reuter Sykora
Commers Knight McElroy Rhodes Tingelstad
Daggett Knoblach Molnau Rifenberg Tompkins
Davids Koppendrayer Mulder Seagren Tuma
Erhardt Kraus Ness Seifert Van Dellen

The motion prevailed.


Journal of the House - 29th Day - Top of Page 1499

CONSENT CALENDAR

Winter moved that the bills on the Consent Calendar for today be continued. The motion prevailed.

GENERAL ORDERS

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

MOTIONS AND RESOLUTIONS

Farrell moved that his name be stricken as an author on H. F. No. 634. The motion prevailed.

Smith moved that the names of Mariani and Abrams be added as authors on H. F. No. 1060. The motion prevailed.

Trimble moved that the name of Koskinen be added as an author on H. F. No. 1646. The motion prevailed.

Bakk moved that his name be stricken as an author on H. F. No. 1847. The motion prevailed.

Davids moved that the name of Leighton be added as an author on H. F. No. 1849. The motion prevailed.

Leighton moved that the name of Mulder be added as an author on H. F. No. 2024. The motion prevailed.

Mariani moved that H. F. No. 1625 be recalled from the Committee on Capital Investment and be re-referred to the Committee on Environment, Natural Resources and Agriculture Finance. The motion prevailed.

Osthoff moved that H. F. No. 1179, now on Technical General Orders, be re-referred to the Committee on Environment, Natural Resources and Agriculture Finance. The motion prevailed.

Bakk moved that H. F. No. 1696 be returned to its author. The motion prevailed.

ANNOUNCEMENT BY THE SPEAKER

The Speaker announced the appointment of the following members of the House to a Conference Committee on H. F. No. 268:

Murphy, Pugh, Solberg, Kalis and Swenson, D.

ADJOURNMENT

Winter moved that when the House adjourns today it adjourn until 2:30 p.m., Wednesday, April 2, 1997. 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, April 2, 1997.

Edward A. Burdick, Chief Clerk, House of Representatives


Journal of the House - 29th Day - Top of Page 1500