Journal of the House - 34th Day - Monday, April 7, 2003 - Top of Page 1223

 

STATE OF MINNESOTA

 

 

EIGHTY-THIRD SESSION - 2003

 

_____________________

 

THIRTY-FOURTH DAY

 

Saint Paul, Minnesota, Monday, April 7, 2003

 

 

The House of Representatives convened at 3:00 p.m. and was called to order by Steve Sviggum, Speaker of the House.

 

Prayer was offered by Rabbi Marcia Zimmerman, Temple Israel, Minneapolis, 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:

 


Abeler

Abrams

Adolphson

Anderson, B.

Anderson, I.

Anderson, J.

Atkins

Beard

Bernardy

Biernat

Blaine

Borrell

Boudreau

Bradley

Brod

Buesgens

Carlson

Clark

Cornish

Cox

Davids

Davnie

DeLaForest

Demmer

Dempsey

Dill

Dorman

Dorn

Eastlund

Eken

Ellison

Entenza

Erhardt

Erickson

Finstad

Fuller

Gerlach

Goodwin

Greiling

Gunther

Haas

Hackbarth

Harder

Hausman

Heidgerken

Hilstrom

Hilty

Holberg

Hoppe

Hornstein

Howes

Huntley

Jacobson

Jaros

Johnson, J.

Johnson, S.

Juhnke

Kahn

Kelliher

Kielkucki

Klinzing

Knoblach

Koenen

Kohls

Krinkie

Kuisle

Lanning

Larson

Latz

Lenczewski

Lesch

Lieder

Lindgren

Lindner

Lipman

Magnus

Mahoney

Mariani

Marquart

McNamara

Meslow

Mullery

Murphy

Nelson, C.

Nelson, M.

Nelson, P.

Nornes

Olsen, S.

Olson, M.

Opatz

Osterman

Otremba

Otto

Ozment

Paulsen

Pelowski

Penas

Peterson

Powell

Pugh

Rhodes

Rukavina

Ruth

Samuelson

Seagren

Seifert

Severson

Sieben

Simpson

Slawik

Smith

Soderstrom

Solberg

Stang

Strachan

Swenson

Sykora

Thao

Thissen

Tingelstad

Urdahl

Vandeveer

Wagenius

Walker

Walz

Wardlow

Wasiluk

Westerberg

Westrom

Wilkin

Zellers

Spk. Sviggum


 

A quorum was present.

 

Paymar and Sertich were excused.

 

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


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PETITIONS AND COMMUNICATIONS

 

 

The following communication was received:

 

 

STATE OF MINNESOTA

OFFICE OF THE SECRETARY OF STATE

ST. PAUL 55155

 

 

The Honorable Steve Sviggum

Speaker of the House of Representatives

 

The Honorable James P. Metzen

President of the Senate

 

I have the honor to inform you that the following enrolled Acts of the 2003 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

2003

 

Date Filed

2003

 

726 6 12:55 p.m. April 3 April 3

512 8 2:30 p.m. April 2 April 3

 

 

Sincerely,

 

Mary Kiffmeyer

Secretary of State

 

 

REPORTS OF STANDING COMMITTEES

 

 

Holberg from the Committee on Civil Law to which was referred:

 

H. F. No. 30, A bill for an act relating to the metropolitan council; limiting the council to requiring a change of a local comprehensive plan only when the plan will have a substantial, demonstrable, and adverse impact on the infrastructure of a metropolitan system; amending Minnesota Statutes 2002, section 473.175, subdivision 1.

 

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

 

The report was adopted.


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Rhodes from the Committee on Governmental Operations and Veterans Affairs Policy to which was referred:

 

H. F. No. 230, A bill for an act relating to professions; establishing the board of licensed professional counseling; requiring professional counselors to be licensed; requiring rulemaking; appropriating money; amending Minnesota Statutes 2002, sections 116J.70, subdivision 2a; 148A.01, subdivision 5; 148B.60, subdivision 3; 214.01, subdivision 2; 214.04, subdivision 3; 214.10, subdivision 9; 609.341, subdivision 17; proposing coding for new law in Minnesota Statutes, chapter 148B.

 

Reported the same back with the following amendments:

 

Page 12, line 28, after "of" insert "licensed"

 

 

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

 

The report was adopted.

 

 

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

 

H. F. No. 261, A bill for an act relating to public safety; enacting the Minnesota Citizens' Personal Protection Act of 2003; recognizing the inherent right of law-abiding citizens to self-protection through the lawful use of self-defense; providing a system under which responsible, competent adults can exercise their right to self-protection by authorizing them to obtain a permit to carry a pistol; providing criminal penalties; appropriating money; amending Minnesota Statutes 2002, sections 13.871, by adding a subdivision; 609.66, subdivision 1d; 624.712, by adding a subdivision; 624.714, subdivisions 2, 3, 4, 6, 7, 8, 10, 12, by adding subdivisions; proposing coding for new law in Minnesota Statutes, chapter 624; repealing Minnesota Statutes 2002, section 624.714, subdivisions 1, 5.

 

Reported the same back with the following amendments:

 

Delete everything after the enacting clause and insert:

 

"Section 1. Minnesota Statutes 2002, section 13.871, is amended by adding a subdivision to read:

 

Subd. 9. [PISTOL PERMIT DATA.] Data on persons permitted to carry pistols under the terms of a permit must be shared as required by section 624.714, subdivision 6.

 

Sec. 2. Minnesota Statutes 2002, section 609.66, subdivision 1d, is amended to read:

 

Subd. 1d. [FELONY; POSSESSION ON SCHOOL PROPERTY; PENALTY.] (a) Except as provided under paragraphs (c) and (e), whoever possesses, stores, or keeps a dangerous weapon or uses or brandishes a replica firearm or a BB gun while knowingly on school property is guilty of a felony and may be sentenced to imprisonment for not more than two years or to payment of a fine of not more than $5,000, or both.

 

(b) Whoever possesses, stores, or keeps a replica firearm or a BB gun on school property is guilty of a gross misdemeanor.


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(c) Notwithstanding paragraph (a) or (b), it is a petty misdemeanor for a person authorized to carry a firearm under the provisions of a permit or otherwise to carry a firearm on or about the person's clothes or person in a location the person knows is school property. Notwithstanding section 609.531, a firearm carried in violation of this paragraph is not subject to forfeiture.

 

(d) As used in this subdivision:

 

(1) "BB gun" means a device that fires or ejects a shot measuring .18 of an inch or less in diameter;

 

(2) "dangerous weapon" has the meaning given it in section 609.02, subdivision 6;

 

(3) "replica firearm" has the meaning given it in section 609.713; and

 

(4) "school property" means:

 

(i) a public or private elementary, middle, or secondary school building and its improved grounds, whether leased or owned by the school; and

 

(ii) a child care center licensed under chapter 245A during the period children are present and participating in a child care program;

 

(iii) the area within a school bus when that bus is being used by a school to transport one or more elementary, middle, or secondary school students to and from school-related activities, including curricular, cocurricular, noncurricular, extracurricular, and supplementary activities; and

 

(iv) that portion of a building or facility under the temporary, exclusive control of a public or private school, a school district, or an association of such entities where conspicuous signs are prominently posted at each entrance that give actual notice to persons of the school-related use.

 

(d) (e) This subdivision does not apply to:

 

(1) licensed peace officers, military personnel, or students participating in military training, who are on-duty, performing official duties;

 

(2) persons who carry pistols according to the terms of a permit authorized to carry a pistol under section 624.714 while in a motor vehicle or outside of a motor vehicle to directly place a firearm in, or retrieve it from, the trunk or rear area of the vehicle;

 

(3) persons who keep or store in a motor vehicle pistols in accordance with sections section 624.714 and or 624.715 or other firearms in accordance with section 97B.045;

 

(4) firearm safety or marksmanship courses or activities conducted on school property;

 

(5) possession of dangerous weapons, BB guns, or replica firearms by a ceremonial color guard;

 

(6) a gun or knife show held on school property; or


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(7) possession of dangerous weapons, BB guns, or replica firearms with written permission of the principal or other person having general control and supervision of the school or the director of a child care center; or

 

(8) persons who are on unimproved property owned or leased by a child care center, school, or school district unless the person knows that a student is currently present on the land for a school-related activity.

 

(f) Notwithstanding section 471.634, a school district or other entity composed exclusively of school districts may not regulate firearms, ammunition, or their respective components, when possessed or carried by nonstudents or nonemployees, in a manner that is inconsistent with this subdivision.

 

Sec. 3. Minnesota Statutes 2002, section 624.712, is amended by adding a subdivision to read:

 

Subd. 11. [COMMISSIONER.] "Commissioner" means the commissioner of public safety unless otherwise indicated.

 

Sec. 4. Minnesota Statutes 2002, section 624.714, is amended by adding a subdivision to read:

 

Subd. 1a. [PERMIT REQUIRED; PENALTY.] A person, other than a peace officer, as defined in section 626.84, subdivision 1, who carries, holds, or possesses a pistol in a motor vehicle, snowmobile, or boat, or on or about the person's clothes or the person, or otherwise in possession or control in a public place, as defined in section 624.7181, subdivision 1, paragraph (c), without first having obtained a permit to carry the pistol is guilty of a gross misdemeanor. A person who is convicted a second or subsequent time is guilty of a felony.

 

Sec. 5. Minnesota Statutes 2002, section 624.714, is amended by adding a subdivision to read:

 

Subd. 1b. [DISPLAY OF PERMIT; PENALTY.] (a) The holder of a permit to carry must have the permit card and a driver's license, state identification card, or other government-issued photo identification in immediate possession at all times when carrying a pistol and must display the permit card and identification document upon lawful demand by a peace officer, as defined in section 626.84, subdivision 1. A violation of this paragraph is a petty misdemeanor. The fine for a first offense must not exceed $25. Notwithstanding section 609.531, a firearm carried in violation of this paragraph is not subject to forfeiture.

 

(b) A citation issued for violating paragraph (a) must be dismissed if the person demonstrates, in court or in the office of the arresting officer, that the person was authorized to carry the pistol at the time of the alleged violation.

 

(c) Upon the request of a peace officer, a permit holder must write a sample signature in the officer's presence to aid in verifying the person's identity.

 

Sec. 6. Minnesota Statutes 2002, section 624.714, subdivision 2, is amended to read:

 

Subd. 2. [WHERE APPLICATION MADE; AUTHORITY TO ISSUE PERMIT; CRITERIA; SCOPE.] (a) Applications by Minnesota residents for permits to carry shall be made to the chief of police of an organized full-time police department of the municipality where the applicant resides or to the county sheriff where there is no such local chief of police where the applicant resides. At the time of application, the local police authority shall provide the applicant with a dated receipt for the application. Nonresidents, as defined in section 171.01, subdivision 42, may apply to any sheriff.

 

(b) Unless a sheriff denies a permit under the exception set forth in subdivision 6, paragraph (a), clause (3), a sheriff must issue a permit to an applicant if the person:


Journal of the House - 34th Day - Monday, April 7, 2003 - Top of Page 1228

(1) has training in the safe use of a pistol;

 

(2) is at least 21 years old and a citizen or a permanent resident of the United States;

 

(3) completes an application for a permit;

 

(4) is not prohibited from possessing a firearm under the following sections:

 

(i) 518B.01, subdivision 14;

 

(ii) 609.224, subdivision 3;

 

(iii) 609.2242, subdivision 3;

 

(iv) 609.749, subdivision 8;

 

(v) 624.713;

 

(vi) 624.719;

 

(vii) 629.715, subdivision 2; or

 

(viii) 629.72, subdivision 2; and

 

(5) is not listed in the criminal gang investigative data system under section 299C.091.

 

(c) A permit to carry a pistol issued or recognized under this section is a state permit and is effective throughout the state.

 

(d) A sheriff may contract with a police chief to process permit applications under this section. If a sheriff contracts with a police chief, the sheriff remains the issuing authority and the police chief acts as the sheriff's agent. If a sheriff contracts with a police chief, all of the provisions of this section will apply.

 

Sec. 7. Minnesota Statutes 2002, section 624.714, is amended by adding a subdivision to read:

 

Subd. 2a. [TRAINING IN THE SAFE USE OF A PISTOL.] (a) An applicant must present evidence that the applicant received training in the safe use of a pistol within one year of the date of an original or renewal application. Training may be demonstrated by:

 

(1) employment as a peace officer in the state of Minnesota within the past year; or

 

(2) completion of a firearms safety or training course providing basic training in the safe use of a pistol and conducted by a certified instructor.

 

(b) Basic training must include:

 

(1) instruction in the fundamentals of pistol use;

 

(2) successful completion of an actual shooting qualification exercise; and


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(3) instruction in the fundamental legal aspects of pistol possession, carry, and use, including self-defense and the restrictions on the use of deadly force.

 

(c) A person qualifies as a certified instructor if the person is certified as a firearms instructor within the past five years by:

 

(1) the bureau of criminal apprehension, training and development section;

 

(2) the Minnesota Association of Law Enforcement Firearms Instructors;

 

(3) the National Rifle Association;

 

(4) the American Association of Certified Firearms Instructors;

 

(5) the peace officer standards and training board of this state or a similar agency of another state that certifies firearms instructors; or

 

(6) the department of public safety of this state or a similar agency of another state that certifies firearms instructors.

 

(d) A sheriff must accept the training described in this subdivision as meeting the requirement in subdivision 2, paragraph (b), for training in the safe use of a pistol. A sheriff may also accept other satisfactory evidence of training in the safe use of a pistol.

 

Sec. 8. Minnesota Statutes 2002, section 624.714, subdivision 3, is amended to read:

 

Subd. 3. [FORM AND CONTENTS OF APPLICATION.] (a) Applications for permits to carry shall must be an official, standardized application form, adopted under section 624.7151, and must set forth in writing only the following information:

 

(1) the applicant's name, residence, telephone number, if any, and driver's license number or nonqualification certificate number, if any, of the applicant or state identification card number;

 

(2) the applicant's sex, date of birth, height, weight, and color of eyes and hair, and distinguishing physical characteristics, if any, of the applicant;

 

(3) all states of residence of the applicant in the last ten years, though not including specific addresses;

 

(4) a statement that the applicant authorizes the release to the local police authority sheriff of commitment information about the applicant maintained by the commissioner of human services or any similar agency or department of another state where the applicant has resided, to the extent that the information relates to the applicant's eligibility to possess a pistol or semiautomatic military-style assault weapon under section 624.713, subdivision 1 firearm; and

 

(4) (5) a statement by the applicant that, to the best of the applicant's knowledge and belief, the applicant is not prohibited by section 624.713 from possessing a pistol or semiautomatic military-style assault weapon; and law from possessing a firearm.

 

(5) a recent color photograph of the applicant.


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The application shall be signed and dated by the applicant. (b) The statement under paragraph (a), clause (3) (4), must comply with any applicable requirements of Code of Federal Regulations, title 42, sections 2.31 to 2.35, with respect to consent to disclosure of alcohol or drug abuse patient records.

 

(c) An applicant must submit to the sheriff an application packet consisting only of the following items:

 

(1) a completed application form, signed and dated by the applicant;

 

(2) an accurate photocopy of a certificate, affidavit, or other document that is submitted as the applicant's evidence of training in the safe use of a pistol; and

 

(3) an accurate photocopy of the applicant's current driver's license, state identification card, or the photo page of the applicant's passport.

 

(d) Applications must be submitted in person.

 

(e) The sheriff may charge a new application processing fee in an amount not to exceed the actual and reasonable direct cost of processing the application or $100, whichever is less. Of this amount, $10 must be submitted to the commissioner of public safety and deposited into the general fund.

 

(f) This subdivision prescribes the complete and exclusive set of items an applicant is required to submit in order to apply for a new or renewal permit to carry. The applicant must not be asked or required to submit, voluntarily or involuntarily, any information, fees, or documentation beyond that specifically required by this subdivision. This paragraph does not apply to alternate training evidence accepted by the sheriff under subdivision 2a, paragraph (d).

 

(g) Forms for new and renewal applications must be available at all sheriffs' offices and the commissioner of public safety must make the forms available on the Internet.

 

(h) Application forms must clearly display a notice that a permit, if granted, is void and must be immediately returned to the sheriff if the permit holder is or becomes prohibited by law from possessing a firearm. The notice must list the applicable state criminal offenses and civil categories that prohibit a person from possessing a firearm.

 

(i) Upon receipt of an application packet and any required fee, the sheriff must provide a signed receipt indicating the date of submission.

 

Sec. 9. Minnesota Statutes 2002, section 624.714, subdivision 4, is amended to read:

 

Subd. 4. [INVESTIGATION.] (a) The application authority shall sheriff must check, by means of electronic data transfer, criminal records, histories, and warrant information on each applicant through the Minnesota Crime Information System. The chief of police or sheriff shall and, to the extent necessary, the National Instant Check System. The sheriff shall also make a reasonable effort to check other available and relevant federal, state, or local record keeping systems. The sheriff must obtain commitment information from the commissioner of human services as provided in section 245.041 or, if the information is reasonably available, as provided by a similar statute from another state.

 

(b) When an application for a permit is filed under this section, the sheriff must notify the chief of police, if any, of the municipality where the applicant resides. The police chief may provide the sheriff with any information relevant to the issuance of the permit.

 

(c) The sheriff must conduct a background check by means of electronic data transfer on a permit holder through the Minnesota Crime Information System and, to the extent necessary, the National Instant Check System at least yearly to ensure continuing eligibility. The sheriff may conduct additional background checks by means of electronic data transfer on a permit holder at any time during the period that a permit is in effect.


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Sec. 10. Minnesota Statutes 2002, section 624.714, subdivision 6, is amended to read:

 

Subd. 6. [FAILURE TO GRANT GRANTING AND DENIAL OF PERMITS.] (a) The sheriff must, within 30 days after the date of receipt of the application packet described in subdivision 3:

 

(1) issue the permit to carry;

 

(2) deny the application for a permit to carry solely on the grounds that the applicant failed to qualify under the criteria described in subdivision 2, paragraph (b); or

 

(3) deny the application on the grounds that there exists a substantial likelihood that the applicant is a danger to self or the public if authorized to carry a pistol under a permit.

 

(b) Failure of the chief police officer or the county sheriff to deny the application or issue a permit to carry a pistol notify the applicant of the denial of the application within 21 30 days of after the date of receipt of the application shall be deemed to be a grant thereof. packet constitutes issuance of the permit to carry and the sheriff must promptly fulfill the requirements under paragraph (c). To deny the application, the local police authority shall sheriff must provide an the applicant with written notification of a denial and the specific reason for factual basis justifying the denial under paragraph (a), clause (2) or (3), including the source of the factual basis. The sheriff must inform the applicant of the applicant's right to submit, within 20 business days, any additional documentation relating to the propriety of the denial. A chief of police or a sheriff may charge a fee to cover the cost of conducting a background check, not to exceed $10. The permit shall specify the activities for which it shall be valid. Upon receiving any additional documentation, the sheriff must reconsider the denial and inform the applicant within 15 business days of the result of the reconsideration. Any denial after reconsideration must be in the same form and substance as the original denial and must specifically address any continued deficiencies in light of the additional documentation submitted by the applicant. The applicant must be informed of the right to seek de novo review of the denial as provided in subdivision 12.

 

(c) Upon issuing a permit to carry, the sheriff must provide a laminated permit card to the applicant by first class mail unless personal delivery has been made. Within five business days, the sheriff must submit the information specified in subdivision 7, paragraph (a), to the commissioner of public safety for inclusion solely in the database required under subdivision 15, paragraph (a). The sheriff must transmit the information in a manner and format prescribed by the commissioner.

 

(d) Within five business days of learning that a permit to carry has been suspended or revoked, the sheriff must submit information to the commissioner of public safety regarding the suspension or revocation for inclusion solely in the databases required or permitted under subdivision 15.

 

(e) Notwithstanding paragraphs (a) to (c), the sheriff may suspend the application process if a charge is pending against the applicant that, if resulting in conviction, will prohibit the applicant from possessing a firearm.

 

Sec. 11. Minnesota Statutes 2002, section 624.714, subdivision 7, is amended to read:

 

Subd. 7. [PERMIT CARD CONTENTS; EXPIRATION; RENEWAL.] Permits to carry a pistol issued pursuant to this section shall expire after one year and shall thereafter be renewed in the same manner and subject to the same provisions by which the original permit was obtained, except that all renewed permits must comply with the standards adopted by the commissioner of public safety under section 624.7161. (a) Permits to carry must be on an official, standardized permit card adopted by the commissioner of public safety, containing only the name, residence, and driver's license number or state identification card number of the permit holder, if any.


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(b) The permit card must also identify the issuing sheriff and state the expiration date of the permit. The permit card must clearly display a notice that a permit, if granted, is void and must be immediately returned to the sheriff if the permit holder becomes prohibited by law from possessing a firearm.

 

(c) A permit to carry a pistol issued under this section expires five years after the date of issue. It may be renewed in the same manner and under the same criteria which the original permit was obtained, subject to the following procedures:

 

(1) no earlier than 90 days prior to the expiration date on the permit, the permit holder may renew the permit by submitting to the appropriate sheriff the application packet described in subdivision 3 and a renewal processing fee not to exceed the actual and reasonable direct cost of processing the application or $75, whichever is less. Of this amount, $5 must be submitted to the commissioner of public safety and deposited into the general fund. The sheriff must process the renewal application in accordance with subdivisions 4 and 6; and

 

(2) a permit holder who submits a renewal application packet after the expiration date of the permit, but within 30 days after expiration, may renew the permit as provided in clause (1) by paying an additional late fee of $10.

 

(d) The renewal permit is effective beginning on the expiration date of the prior permit to carry.

 

Sec. 12. Minnesota Statutes 2002, section 624.714, is amended by adding a subdivision to read:

 

Subd. 7a. [CHANGE OF ADDRESS; LOSS OR DESTRUCTION OF PERMIT.] (a) Within 30 days after changing permanent address, or within 30 days of having lost or destroyed the permit card, the permit holder must notify the issuing sheriff of the change, loss, or destruction. Failure to provide notification as required by this subdivision is a petty misdemeanor. The fine for a first offense must not exceed $25. Notwithstanding section 609.531, a firearm carried in violation of this paragraph is not subject to forfeiture.

 

(b) After notice is given under paragraph (a), a permit holder may obtain a replacement permit card by paying $10 to the sheriff. The request for a replacement permit card must be made on an official, standardized application adopted for this purpose under section 624.7151, and, except in the case of an address change, must include a notarized statement that the permit card has been lost or destroyed.

 

Sec. 13. Minnesota Statutes 2002, section 624.714, subdivision 8, is amended to read:

 

Subd. 8. [PERMIT TO CARRY VOIDED.] (a) The permit to carry shall be is void and must be revoked at the time that the holder becomes prohibited by law from possessing a pistol under section 624.713 firearm, in which event the holder shall must return the permit card to the issuing sheriff within five business days to the application authority after the holder knows or should know that the holder is a prohibited person. If a permit is revoked under this subdivision, the sheriff must give notice to the permit holder in writing in the same manner as a denial. Failure of the holder to return the permit within the five days is a gross misdemeanor unless the court finds that the circumstances or the physical or mental condition of the permit holder prevented the holder from complying with the return requirement.

 

(b) When a permit holder is convicted of an offense that prohibits the permit holder from possessing a firearm, the court must revoke the permit and, if it is available, take possession of it and send it to the issuing sheriff.

 

(c) The sheriff of the county where the application was submitted, or of the county of the permit holder's current residence, may file a petition with the district court therein, for an order revoking a permit to carry on the grounds set forth in subdivision 6, paragraph (a), clause (3). An order shall be issued only if the sheriff meets the burden of proof and criteria set forth in subdivision 12. If the court denies the petition, the court must award the permit holder reasonable costs and expenses, including attorney fees.

 

(d) A permit revocation must be promptly reported to the issuing sheriff.


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Sec. 14. Minnesota Statutes 2002, section 624.714, is amended by adding a subdivision to read:

 

Subd. 8a. [PROSECUTOR'S DUTY.] Whenever a person is charged with an offense that would, upon conviction, prohibit the person from possessing a firearm, the prosecuting attorney must ascertain whether the person is a permit holder under this section. If the person is a permit holder, the prosecutor must notify the issuing sheriff that the person has been charged with a prohibiting offense. The prosecutor must also notify the sheriff of the final disposition of the case.

 

Sec. 15. Minnesota Statutes 2002, section 624.714, subdivision 10, is amended to read:

 

Subd. 10. [FALSE REPRESENTATIONS.] A person who gives or causes to be given any false material information in applying for a permit to carry, knowing or having reason to know the information is false, is guilty of a gross misdemeanor.

 

Sec. 16. Minnesota Statutes 2002, section 624.714, is amended by adding a subdivision to read:

 

Subd. 11a. [EMERGENCY ISSUANCE OF PERMITS.] A sheriff may immediately issue an emergency permit to a person if the sheriff determines that the person is in an emergency situation that may constitute an immediate risk to the safety of the person or someone residing in the person's household. A person seeking an emergency permit must complete an application form and must sign an affidavit describing the emergency situation. An emergency permit applicant does not need to provide evidence of training. An emergency permit is valid for 30 days, may not be renewed, and may be revoked without a hearing. No fee may be charged for an emergency permit. An emergency permit holder may seek a regular permit under subdivision 3 and is subject to the other applicable provisions of this section.

 

Sec. 17. Minnesota Statutes 2002, section 624.714, subdivision 12, is amended to read:

 

Subd. 12. [HEARING UPON DENIAL OR REVOCATION.] (a) Any person aggrieved by denial or revocation of a permit to carry may appeal the denial by petition to the district court having jurisdiction over the county or municipality wherein the notification or denial occurred where the application was submitted. The petition must list the sheriff as the respondent. The district court must hold a hearing at the earliest practicable date and in any event no later than 60 days following the filing of the petition for review. The court may not grant or deny any relief before the completion of the hearing. The record of the hearing must be sealed. The matter shall must be heard de novo without a jury.

 

(b) The court must issue its writ of mandamus directing that the permit be issued and order other appropriate relief unless the sheriff establishes by clear and convincing evidence:

 

(1) that the applicant is disqualified under the criteria described in subdivision 2, paragraph (b); or

 

(2) that there exists a substantial likelihood that the applicant is a danger to self or the public if authorized to carry a pistol under a permit. Incidents of alleged criminal misconduct that are not investigated and documented, and incidents for which the applicant was charged and acquitted, may not be considered.

 

(c) If an applicant is denied a permit on the grounds that the applicant is listed in the criminal gang investigative data system under section 299C.091, the person may challenge the denial, after disclosure under court supervision of the reason for that listing, based on grounds that the person:

 

(1) was erroneously identified as a person in the data system;


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(2) was improperly included in the data system according to the criteria outlined in section 299C.091, subdivision 2, paragraph (b); or

 

(3) has demonstrably withdrawn from the activities and associations that led to inclusion in the data system.

 

(d) If the court grants a petition brought under paragraph (a), the court must award the applicant or permit holder reasonable costs and expenses including attorney fees.

 

Sec. 18. Minnesota Statutes 2002, section 624.714, is amended by adding a subdivision to read:

 

Subd. 12a. [SUSPENSION AS CONDITION OF RELEASE.] The district court may order suspension of the application process for a permit or suspend the permit of a permit holder as a condition of release pursuant to the same criteria as the surrender of firearms under section 629.715. A permit suspension must be promptly reported to the issuing sheriff. If the permit holder has an out-of-state permit recognized under subdivision 16, the court must promptly report the suspension to the commissioner of public safety for inclusion solely in the database under subdivision 15, paragraph (a).

 

Sec. 19. Minnesota Statutes 2002, section 624.714, is amended by adding a subdivision to read:

 

Subd. 14. [RECORDS.] (a) A sheriff must not maintain records or data collected, made, or held under this section concerning any applicant or permit holder that are not necessary under this section to support a permit that is outstanding or eligible for renewal under subdivision 7, paragraph (b). Notwithstanding section 138.163, sheriffs must completely purge all files and databases by March 1 of each year to delete all information collected under this section concerning all persons who are no longer current permit holders or currently eligible to renew their permit.

 

(b) Paragraph (a) does not apply to records or data concerning an applicant or permit holder who has had a permit denied or revoked under the criteria established in subdivision 2, paragraph (b), clause (1), or subdivision 6, paragraph (a), clause (3), for a period of six years from the date of the denial or revocation.

 

Sec. 20. Minnesota Statutes 2002, section 624.714, is amended by adding a subdivision to read:

 

Subd. 15. [COMMISSIONER OF PUBLIC SAFETY; CONTRACTS; DATABASE.] (a) The commissioner of public safety must maintain an automated database of persons authorized to carry pistols under this section that is available 24 hours a day, seven days a week, only to law enforcement agencies, including prosecutors carrying out their duties under subdivision 8a, to verify the validity of a permit.

 

(b) The commissioner of public safety may maintain a separate automated database of denied applications for permits to carry and of revoked permits that is available only to sheriffs performing their duties under this section containing the date of, the statutory basis for, and the initiating agency for any permit application denied or permit revoked for a period of six years from the date of the denial or revocation.

 

(c) The commissioner of public safety may contract with one or more vendors to implement the commissioner's duties under this section.

 

Sec. 21. Minnesota Statutes 2002, section 624.714, is amended by adding a subdivision to read:

 

Subd. 16. [RECOGNITION OF PERMITS FROM OTHER STATES.] (a) The commissioner of public safety must annually establish and publish a list of other states that have laws governing the issuance of permits to carry weapons that are not substantially similar to this section. The list must be available on the Internet. A person holding a carry permit from a state not on the list may use the license or permit in this state subject to the rights, privileges, and requirements of this section.


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(b) Notwithstanding paragraph (a), no license or permit from another state is valid in this state if the holder is or becomes prohibited by law from possessing a firearm.

 

(c) Any sheriff or police chief may file a petition under subdivision 12 seeking an order suspending or revoking an out-of-state permit holder's authority to carry a pistol in this state on the grounds set forth in subdivision 6, paragraph (a), clause (3). An order shall only be issued if the petitioner meets the burden of proof and criteria set forth in subdivision 12. If the court denies the petition, the court must award the permit holder reasonable costs and expenses including attorney fees. The petition may be filed in any county in the state where a person holding a license or permit from another state can be found.

 

(d) The commissioner of public safety must, when necessary, execute reciprocity agreements regarding carry permits with jurisdictions whose carry permits are recognized under paragraph (c).

 

Sec. 22. Minnesota Statutes 2002, section 624.714, is amended by adding a subdivision to read:

 

Subd. 17. [POSTING; TRESPASS.] (a) A person carrying a firearm on or about his or her person or clothes under a permit or otherwise who remains at a private establishment knowing that the operator of the establishment or its agent has made a reasonable request that firearms not be brought into the establishment may be ordered to leave the premises. A person who fails to leave when so requested is guilty of a petty misdemeanor. The fine for a first offense must not exceed $25. Notwithstanding section 609.531, a firearm carried in violation of this subdivision is not subject to forfeiture.

 

(b) As used in this subdivision, the terms in this paragraph have the meanings given.

 

(1) "Reasonable request" means a request made under the following circumstances:

 

(i) the requester has prominently posted a conspicuous sign at every entrance to the establishment or event containing the following language: "(INDICATE IDENTITY OF OPERATOR) ALLOWS NO FIREARMS WITHIN THESE PREMISES."; and

 

(ii) the requester or its agent personally informs the person of the posted request and demands compliance.

 

(2) "Prominently" means readily visible and within four feet laterally of the entrance with the bottom of the sign at a height of four to six feet above the floor.

 

(3) "Conspicuous" means lettering in black block letters at least 1-1/2 inches in height against a contrasting background that is at least 216 square inches in area.

 

(4) "Private establishment" means a building, structure, or portion thereof that is owned, leased, controlled, or operated by a nongovernmental entity for a nongovernmental purpose, but does not include a parking facility, parking area, or private residence.

 

(c) This subdivision does not affect the rights of employers and employees to define the terms of their employment relationship while the employee is acting in the course and scope of that employment.

 

(d) Notwithstanding any inconsistent provisions in section 609.605, this subdivision sets forth the exclusive criteria to notify a person that firearm possession is not allowed in a private establishment and sets forth the exclusive penalty for such activity.

 

(e) This subdivision does not apply to an on-duty peace officer or security guard acting in the course and scope of employment.


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Sec. 23. Minnesota Statutes 2002, section 624.714, is amended by adding a subdivision to read:

 

Subd. 18. [IMMUNITY.] Neither a sheriff, police chief, any employee of a sheriff or police chief involved in the permit issuing process, nor any certified instructor is liable for damages resulting or arising from acts with a firearm committed by a permit holder, unless the person had actual knowledge at the time the permit was issued or the instruction was given that the applicant was prohibited by law from possessing a firearm.

 

Sec. 24. Minnesota Statutes 2002, section 624.714, is amended by adding a subdivision to read:

 

Subd. 19. [MONITORING.] (a) By March 1, 2004, and each year thereafter, the commissioner of public safety must report to the legislature on:

 

(1) the number of permits applied for, issued, suspended, revoked, and denied, further categorized by the age, sex, and zip code of the applicant or permit holder, since the previous submission, and in total;

 

(2) the number of permits currently valid;

 

(3) the specific reasons for each suspension, revocation, and denial and the number of reversed, canceled, or corrected actions;

 

(4) the number of convictions and types of crimes committed since the previous submission, and in total, by individuals with permits including data as to whether a firearm lawfully carried solely by virtue of a permit was actually used in furtherance of the crime;

 

(5) to the extent known or determinable, data on the lawful and justifiable use of firearms by permit holders; and

 

(6) the status of the segregated funds reported to the commissioner under subdivision 19.

 

(b) Sheriffs and police chiefs must supply the department of public safety with the basic data the department requires to complete the report under paragraph (a). Sheriffs and police chiefs may submit data classified as private to the department of public safety under this paragraph.

 

(c) Copies of the report under paragraph (a) must be made available to the public at the actual cost of duplication.

 

(d) Nothing contained in any provision of this section or any other law requires or authorizes the registration, documentation, collection, or providing of serial numbers or other data on firearms or on firearms' owners.

 

Sec. 25. Minnesota Statutes 2002, section 624.714, is amended by adding a subdivision to read:

 

Subd. 20. [USE OF FEES.] Fees collected by sheriffs under this section and not forwarded to the commissioner of public safety must be used only to pay the direct costs of administering this section. Fee money may be used to pay the costs of appeals of prevailing applicants or permit holders under subdivision 8, paragraph (c); subdivision 12, paragraph (e); and subdivision 16, paragraph (c). The revenues must be maintained in a segregated fund. Fund balances must be carried over from year to year and do not revert to any other fund. As part of the information supplied under subdivision 19, paragraph (b), by January 31 of each year, a sheriff must report to the commissioner on the sheriff's segregated fund for the preceding calendar year, including information regarding:

 

(1) nature and amount of revenues;

 

(2) nature and amount of expenditures; and

 

(3) nature and amount of balances.


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Sec. 26. Minnesota Statutes 2002, section 624.714, is amended by adding a subdivision to read:

 

Subd. 21. [SHORT TITLE; CONSTRUCTION; SEVERABILITY.] This section may be cited as the Minnesota Citizens' Personal Protection Act of 2003. The legislature of the state of Minnesota recognizes and declares that the second amendment of the United States Constitution guarantees the fundamental, individual right to keep and bear arms. The provisions of this section are declared to be necessary to accomplish compelling state interests in regulation of those rights. The terms of this section must be construed according to the compelling state interest test. The invalidation of any provision of this section shall not invalidate any other provision.

 

Sec. 27. Minnesota Statutes 2002, section 624.714, is amended by adding a subdivision to read:

 

Subd. 22. [EXCLUSIVITY.] This section sets forth the complete and exclusive criteria and procedures for the issuance of permits to carry and establishes their nature and scope. No sheriff, police chief, governmental unit, government official, government employee, or other person or body acting under color of law or governmental authority may change, modify, or supplement these criteria or procedures, or limit the exercise of a permit to carry.

 

Sec. 28. [624.7142] [CARRYING WHILE UNDER THE INFLUENCE OF ALCOHOL OR A CONTROLLED SUBSTANCE.]

 

Subdivision 1. [ACTS PROHIBITED.] A person may not carry a pistol on or about the person's clothes or person in a public place:

 

(1) when the person is under the influence of a controlled substance, as defined in section 152.01, subdivision 4;

 

(2) when the person is under the influence of a combination of any two or more of the elements named in clauses (1) and (4);

 

(3) when the person is knowingly under the influence of any chemical compound or combination of chemical compounds that is listed as a hazardous substance in rules adopted under section 182.655 and that affects the nervous system, brain, or muscles of the person so as to impair the person's clearness of intellect or physical control;

 

(4) when the person is under the influence of alcohol;

 

(5) when the person's alcohol concentration is 0.10 or more; or

 

(6) when the person's alcohol concentration is less than 0.10, but more than 0.04.

 

Subd. 2. [ARREST.] A peace officer may arrest a person for a violation under subdivision 1 without a warrant upon probable cause, without regard to whether the violation was committed in the officer's presence.

 

Subd. 3. [PRELIMINARY SCREENING TEST.] When an officer authorized under subdivision 2 to make arrests has reason to believe that the person may be violating or has violated subdivision 1, the officer may require the person to provide a breath sample for a preliminary screening test using a device approved by the commissioner of public safety for this purpose. The results of the preliminary screening test must be used for the purpose of deciding whether an arrest should be made under this section and whether to require the chemical tests authorized in section 624.7143, but may not be used in any court action except: (1) to prove that the test was properly required of a person under section 624.7143, or (2) in a civil action arising out of the use of the pistol. Following the preliminary screening test, additional tests may be required of the person as provided under section 624.7143. A person who refuses a breath sample is subject to the provisions of section 624.7143 unless, in compliance with that section, the person submits to a blood, breath, or urine test to determine the presence of alcohol or a controlled substance.


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Subd. 4. [EVIDENCE.] In a prosecution for a violation of subdivision 1, the admission of evidence of the amount of alcohol or a controlled substance in the person's blood, breath, or urine is governed by section 169A.45.

 

Subd. 5. [SUSPENSION.] A person who is charged with a violation under this section may have their authority to carry a pistol in a public place on or about the person's clothes or person under the provisions of a permit or otherwise suspended by the court as a condition of release.

 

Subd. 6. [PENALTIES.] (a) A person who violates a prohibition under subdivision 1, clauses (1) to (5), is guilty of a misdemeanor. A second or subsequent violation is a gross misdemeanor.

 

(b) A person who violates subdivision 1, clause (6), is guilty of a misdemeanor.

 

(c) In addition to the penalty imposed under paragraph (a), if a person violates subdivision 1, clauses (1) to (5), the person's authority to carry a pistol in a public place on or about the person's clothes or person under the provisions of a permit or otherwise is revoked and the person may not reapply for a period of one year from the date of conviction.

 

(d) In addition to the penalty imposed under paragraph (b), if a person violates subdivision 1, clause (6), the person's authority to carry a pistol in a public place on or about the person's clothes or person under the provisions of a permit or otherwise is suspended for 180 days from the date of conviction.

 

(e) Notwithstanding section 609.531, a firearm carried in violation of subdivision 1, clause (6), is not subject to forfeiture.

 

Subd. 7. [REPORTING.] Suspensions and revocations under this section must be reported in the same manner as in section 624.714, subdivision 12a.

 

Sec. 29. [624.7143] [CHEMICAL TESTING.]

 

Subdivision 1. [MANDATORY CHEMICAL TESTING.] A person who carries a pistol in a public place on or about the person's clothes or person is required, subject to the provisions of this section, to take or submit to a test of the person's blood, breath, or urine for the purpose of determining the presence and amount of alcohol or a controlled substance. The test shall be administered at the direction of an officer authorized to make arrests under section 624.7142. Taking or submitting to the test is mandatory when requested by an officer who has probable cause to believe the person was carrying a pistol in violation of section 624.7142, and one of the following conditions exists:

 

(1) the person has been lawfully placed under arrest for violating section 624.7142;

 

(2) the person has been involved while carrying a firearm in a firearms-related accident resulting in property damage, personal injury, or death;

 

(3) the person has refused to take the preliminary screening test provided for in section 624.7142; or

 

(4) the screening test was administered and indicated an alcohol concentration of 0.04 or more.

 

Subd. 2. [PENALTIES; REFUSAL; REVOCATION.] (a) If a person refuses to take a test required under subdivision 1, none must be given but the officer shall report the refusal to the sheriff and to the authority having responsibility for prosecution of misdemeanor offenses for the jurisdiction in which the incident occurred that gave rise to the test demand and refusal. On certification by the officer that probable cause existed to believe the person had been carrying a pistol on or about the person's clothes or person in a public place while under the influence of


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alcohol or a controlled substance, and that the person refused to submit to testing, a court may impose a civil penalty of $500 and may revoke the person's authority to carry a pistol in a public place on or about the person's clothes or person under the provisions of a permit or otherwise for a period of one year from the date of the refusal. The person shall be accorded notice and an opportunity to be heard prior to imposition of the civil penalty or the revocation.

 

(b) Revocations under this subdivision must be reported in the same manner as in section 624.714, subdivision 12a.

 

Subd. 3. [RIGHTS AND OBLIGATIONS.] At the time a test is requested, the person must be informed that:

 

(1) Minnesota law requires a person to take a test to determine if the person is under the influence of alcohol or a controlled substance;

 

(2) if the person refuses to take the test, the person is subject to a civil penalty of $500 and is prohibited for a period of one year from carrying a pistol in a public place on or about the person's clothes or person, as provided under subdivision 2; and

 

(3) that the person has the right to consult with an attorney, but that this right is limited to the extent it cannot unreasonably delay administration of the test or the person will be deemed to have refused the test.

 

Subd. 4. [REQUIREMENT OF BLOOD OR URINE TEST.] Notwithstanding subdivision 1, if there is probable cause to believe there is impairment by a controlled substance that is not subject to testing by a breath test, a blood or urine test may be required even after a breath test has been administered.

 

Subd. 5. [CHEMICAL TESTS.] Chemical tests administered under this section are governed by section 169A.51 in all aspects that are not inconsistent with this section.

 

Sec. 30. [APPROPRIATION.]

 

$1,071,000 is appropriated in fiscal year 2004 and $119,000 is appropriated in fiscal year 2005 from the general fund to the commissioner of public safety to implement the provisions of sections 1 to 29. The unencumbered balance in the first year does not cancel but is available for the second year.

 

Sec. 31. [TEMPORARY FEE PROVISION.]

 

Notwithstanding Minnesota Statutes, section 624.714, subdivision 3, paragraph (e), until July 1, 2004, the sheriff must submit $21.50 to the commissioner of public safety for deposit into the general fund for each permit application submitted under Minnesota Statutes, section 624.714.

 

Sec. 32. [GRANDFATHER CLAUSE.]

 

Permits to carry pistols issued prior to the effective date of sections 1 to 29 remain in effect and are valid under the terms of issuance until the date of expiration applicable at the time of issuance. However, a person holding a permit that was issued prior to the effective date of sections 1 to 29 may nevertheless apply for a permit under the terms and conditions of sections 1 to 29.

 

Sec. 33. [REVISOR'S INSTRUCTION.]

 

In Minnesota Statutes, sections 624.713 to 624.717, the revisor of statutes shall change the term "commissioner of public safety" to "commissioner" wherever the term appears.


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Sec. 34. [REPEALER.]

 

Minnesota Statutes 2002, section 624.714, subdivisions 1 and 5, are repealed.

 

Sec. 35. [EFFECTIVE DATE.]

 

Sections 1 to 34 are effective 30 days after final enactment and apply to crimes committed on or after that date, except that the commissioner of public safety must promulgate the list required under section 21 within 60 days of final enactment. The database required by section 20 must be operational within 180 days of the effective date."

 

 

With the recommendation that when so amended the bill pass.

 

The report was adopted.

 

 

Rhodes from the Committee on Governmental Operations and Veterans Affairs Policy to which was referred:

 

H. F. No. 283, A bill for an act relating to taxation; individual income; providing an income tax checkoff to fund benefits for survivors of law enforcement officers and firefighters and providing for maintenance of peace officer and firefighter memorials; proposing coding for new law in Minnesota Statutes, chapter 290.

 

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

 

The report was adopted.

 

 

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

 

H. F. No. 293, A bill for an act relating to municipalities; allowing the prescribing of certain fees by a fee schedule; amending Minnesota Statutes 2002, section 462.353, subdivision 4.

 

Reported the same back with the following amendments:

 

Delete everything after the enacting clause and insert:

 

"Section 1. Minnesota Statutes 2002, section 462.353, subdivision 4, is amended to read:

 

Subd. 4. [FEES.] A municipality may prescribe fees sufficient to defray the costs incurred by it in reviewing, investigating, and administering an application for an amendment to an official control established pursuant to sections 462.351 to 462.364 or an application for a permit or other approval required under an official control established pursuant to those sections. Except as provided in subdivision 4a, fees as prescribed must be by ordinance and. Fees must be fair, reasonable, and proportionate to the actual cost of the service for which the fee is imposed. A municipality shall adopt management and accounting procedures to ensure that fees are maintained and used only for the purpose for which they are collected.

 

If a dispute arises over a specific fee imposed by a municipality related to a specific application, the amount of the fee must be deposited and held in escrow, and the person aggrieved by the fee may appeal under section 462.361. An approved application may proceed as if the fee had been paid, pending a decision on the appeal.


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Sec. 2. Minnesota Statutes 2002, section 462.353, is amended by adding a subdivision to read:

 

Subd. 4a. [FEE SCHEDULE ALLOWED.] A municipality that collects an annual cumulative total of $5,000 or less in fees under this section may prescribe the fees or refer to a fee schedule in the ordinance governing the official control or permit. A municipality may adopt a fee schedule under this subdivision by ordinance or resolution, either annually or more frequently, following publication of notice of proposed action on a fee schedule at least ten days prior to a public hearing held to consider action on or approval of the fee schedule. A municipality that collects a cumulative total in excess of $5,000 in fees under this section may prescribe a fee schedule by ordinance by following the notice and hearing procedures specified in this subdivision."

 

Amend the title as follows:

 

Page 1, line 4, before the period, insert ", by adding a subdivision"

 

 

With the recommendation that when so amended the bill pass.

 

The report was adopted.

 

 

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

 

H. F. No. 389, A bill for an act relating to the city of Minneapolis; providing for the establishment of certain positions in the unclassified service of the city of Minneapolis by the Minneapolis city council.

 

Reported the same back with the following amendments:

 

Page 1, line 9, delete "the Veterans Preference Act,"

 

 

With the recommendation that when so amended the bill pass.

 

The report was adopted.

 

 

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

 

H. F. No. 414, A bill for an act relating to natural resources; updating soil and water conservation district law; changing requirements for petitions and elections relating to soil and water conservation districts; allowing counties the option to authorize soil and water conservation district levies; adding soil and water conservation districts to the definition of special taxing district; clarifying removal provisions for soil and water conservation district supervisors; amending Minnesota Statutes 2002, sections 103A.206; 103C.005; 103C.101, subdivisions 6, 9, by adding a subdivision; 103C.201, subdivisions 1, 2, 5, 6, 7, 8; 103C.205; 103C.211; 103C.225, subdivisions 1, 3, 4, 8; 103C.305, subdivision 1; 103C.311, subdivisions 1, 2; 103C.315, subdivisions 1, 2, 4, 5; 103C.331, subdivisions 11, 12, 16, 19, by adding a subdivision; 103C.401, subdivisions 1, 2; 275.066; 351.14, subdivision 5; proposing coding for new law in Minnesota Statutes, chapter 103C; repealing Minnesota Statutes 2002, section 103C.301.

 

Reported the same back with the following amendments:

 

Page 17, delete section 27


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Pages 18 to 20, delete section 30

 

Pages 22 and 23, delete section 33

 

Renumber the sections in sequence

 

Amend the title as follows:

 

Page 1, line 5, delete everything after the semicolon

 

Page 1, delete lines 6 to 8

 

Page 1, line 17, delete "16,"

 

Page 1, line 18, delete "275.066;"

 

Page 1, delete line 19

 

Page 1, line 20, delete "chapter 103C;"

 

 

With the recommendation that when so amended the bill pass.

 

The report was adopted.

 

 

Sykora from the Committee on Education Policy to which was referred:

 

H. F. No. 476, A bill for an act relating to education; enacting the American Heritage Education in Minnesota Public Schools Act; proposing coding for new law in Minnesota Statutes, chapter 120B.

 

Reported the same back with the following amendments:

 

Delete everything after the enacting clause and insert:

 

"Section 1. [120B.25] [AMERICAN HERITAGE EDUCATION.]

 

(a) School districts must develop and implement a policy of grade-level instruction to assure the maintenance of freedom and encourage and provide the opportunity for all students to read and study America's founding documents that contribute to understanding the principles, character, and world view of America's founders. The documents covered under this policy are those that have contributed to the founding or maintaining of America's republican form of limited government, natural law, the free-market system, and patriotism. Districts must allow a principal or teacher to use, read, or post in a public school classroom or building or at a public school-sponsored event any document or document excerpt, including a document or document excerpt that contains religious content, related to the history, heritage, or foundation of the country or Minnesota. Examples of such documents include, but are not limited to:

 

(1) the Mayflower compact;

 

(2) the Declaration of Independence;


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(3) the Constitutions of the United States and the state of Minnesota;

 

(4) the Northwest Ordinance of 1787;

 

(5) the Federalist Papers;

 

(6) the Pledge of Allegiance in its original and current forms;

 

(7) the national anthem and other patriotic songs;

 

(8) Patrick Henry's "give me liberty or give me death" speech, Washington's farewell address to the nation, Lincoln's Gettysburg address, and other writings such as those of George Washington Carver, Phyllis Wheatley, Florence Nightingale, and Reverend Doctor Martin Luther King Jr.;

 

(9) the acts and published records of Congress; and

 

(10) the United States Supreme Court decisions and records.

 

(b) Districts may not limit or restrain instruction in American or Minnesota state history or heritage based on religious references in documents, writings, speeches, proclamations, or records described under paragraph (a). These and any other materials must be used for educational purposes and not to establish any religion.

 

(c) Students may voluntarily choose to read, write, share, report, or otherwise study a topic which is religious in nature provided other students are provided with the same opportunity to freely choose a topic.

 

[EFFECTIVE DATE.] This section is effective the day following final enactment.

 

Sec. 2. [TITLE.]

 

Minnesota Statutes, section 120B.25, shall be known as the "American Heritage Education in Minnesota Public Schools Act."

 

[EFFECTIVE DATE.] This section is effective the day following final enactment."

 

 

With the recommendation that when so amended the bill pass.

 

The report was adopted.

 

 

Holberg from the Committee on Civil Law to which was referred:

 

H. F. No. 505, A bill for an act relating to courts; allowing for expungement of certain court records; amending Minnesota Statutes 2002, section 484.014, subdivision 2.

 

Reported the same back with the following amendments:

 

Delete everything after the enacting clause and insert:

 

"Section 1. Minnesota Statutes 2002, section 484.014, subdivision 2, is amended to read:


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Subd. 2. [DISCRETIONARY EXPUNGEMENT.] The court may order expungement of an eviction case court file only upon motion of a defendant and decision by the court, and only if the court finds makes an explicit written finding that the plaintiff's case is sufficiently without basis in fact or law, which may include lack of jurisdiction over the case, that expungement is clearly in the interests of justice and those interests are not outweighed by the public's interest in knowing about the record. A case's being stricken from the calendar, dismissed or settled, or any agreement between the parties to allow expungement are not determinative that the case was without basis in fact or law."

 

 

With the recommendation that when so amended the bill pass.

 

The report was adopted.

 

 

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

 

H. F. No. 517, A bill for an act relating to education; renaming the department of children, families, and learning to department of education; making conforming changes to reflect the department name change; amending Minnesota Statutes 2002, sections 15.01; 119A.01, subdivision 2; 119A.02, subdivisions 2, 3; 119B.011, subdivisions 8, 10; 120A.02; 120A.05, subdivisions 4, 7; 127A.05, subdivisions 1, 3; repealing Minnesota Statutes 2002, section 119A.01, subdivision 1.

 

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

 

The report was adopted.

 

 

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

 

H. F. No. 528, A bill for an act relating to emergency medical services; permitting four-year contracts for emergency medical services; modifying license plate provisions for volunteer ambulance attendants; permitting certain ambulance services to make claims against tax refunds; regulating use of police communication equipment; amending Minnesota Statutes 2002, sections 144E.50, subdivision 5; 168.12, subdivision 2e; 270A.03, subdivision 2; 299C.37, subdivision 1.

 

Reported the same back with the following amendments:

 

Delete everything after the enacting clause and insert:

 

"Section 1. Minnesota Statutes 2002, section 144E.01, subdivision 1, is amended to read:

 

Subdivision 1. [MEMBERSHIP.] (a) The emergency medical services regulatory board consists of the following members, all of whom must work in Minnesota, except for the person listed in clause (14):

 

(1) an emergency physician certified by the American board of emergency physicians;

 

(2) a representative of Minnesota hospitals;

 

(3) a representative of fire chiefs;


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(4) a full-time firefighter who serves as a first responder and who is a member of a professional firefighter's union;

 

(5) a volunteer firefighter who serves as a first responder;

 

(6) an attendant currently practicing on a licensed ambulance service who is a paramedic or an emergency medical technician;

 

(7) an ambulance director for a licensed ambulance service;

 

(8) a representative of sheriffs;

 

(9) a member of a local board of health to represent community health services;

 

(10) two representatives of regional emergency medical services programs, one of whom must be from the metropolitan regional emergency medical services program;

 

(11) a registered nurse currently practicing in a hospital emergency department;

 

(12) a pediatrician, certified by the American board of pediatrics, with experience in emergency medical services;

 

(13) a family practice physician who is currently involved in emergency medical services;

 

(14) a public member who resides in Minnesota and is at least 65 years of age; and

 

(15) the commissioners of health and public safety or their designees.

 

(b) The governor shall appoint members under paragraph (a). Appointments under clauses (1) to (9) and (11) to (13) are subject to the advice and consent of the senate. In making appointments under clauses (1) to (9) and (11) to (13), the governor shall consider recommendations of the American college of emergency physicians, the Minnesota hospital association, the Minnesota and state fire chief's association, the Minnesota ambulance association, the Minnesota emergency medical services association, the Minnesota state sheriff's association, the association of Minnesota counties, the Minnesota nurses association, and the Minnesota chapter of the academy of pediatrics.

 

(c) No member appointed under paragraph (a) may serve consecutive terms.

 

(d) At least seven members appointed under paragraph (a) must reside outside of the seven-county metropolitan area, as defined in section 473.121.

 

Sec. 2. Minnesota Statutes 2002, section 144E.27, subdivision 1, is amended to read:

 

Subdivision 1. [TRAINING PROGRAMS.] Curriculum for initial and refresher training programs must meet the current standards of the United States Department of Transportation first responder curriculum or its equivalent as determined by the board. A training program instructor must be a first responder, EMT, EMT-I, EMT-P, physician, physician assistant, or registered nurse.

 

Sec. 3. Minnesota Statutes 2002, section 144E.27, subdivision 2, is amended to read:

 

Subd. 2. [REGISTRATION.] To be eligible for registration with the board as a first responder, an individual shall register the following persons as first responders:


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(1) a person who successfully completes complete a board-approved initial or refresher first responder training program. Registration under this clause is valid for two years and expires at the end of the month in which the registration was issued; or

 

(2) a person who is be credentialed as a first responder by the National Registry of Emergency Medical Technicians. Registration under this clause expires the same day as the National Registry credential.

 

Sec. 4. Minnesota Statutes 2002, section 144E.27, subdivision 4, is amended to read:

 

Subd. 4. [EXPIRATION.] (a) A first responder registration issued by the board or the commissioner of health before August 1, 1997, expires in 1999 at the end of the month in which it was issued. as follows:

 

(1) for initial registration granted between January 1 and June 30 of an even-numbered year, the expiration date is September 30 of the next even-numbered year;

 

(2) for initial registration granted between July 1 and December 31 of an even-numbered year, the expiration date is September 30 of the second odd-numbered year;

 

(3) for initial registration granted between January 1 and June 30 of an odd-numbered year, the expiration date is September 30 of the next odd-numbered year; and

 

(4) for initial registration granted between July 1 and December 31 of an odd-numbered year, the expiration date is September 30 of the second even-numbered year.

 

(b) Subsequent registration renewals expire on September 30 and are valid for two years.

 

Sec. 5. Minnesota Statutes 2002, section 144E.286, is amended by adding a subdivision to read:

 

Subd. 3. [EXAMINER QUALIFICATIONS.] An examiner testing EMT, EMT-I, or EMT-P practical skills must be certified at or above the level the examiner is testing or must be a registered nurse, physician, or physician assistant. A physician must be available to answer questions relating to the evaluation of skill performance at the EMT-I and EMT-P practical examination.

 

Sec. 6. Minnesota Statutes 2002, section 144E.305, subdivision 2, is amended to read:

 

Subd. 2. [MANDATORY REPORTING.] (a) A licensee shall report to the board conduct by a first responder, EMT, EMT-I, or EMT-P that they reasonably believe constitutes grounds for disciplinary action under section 144E.27, subdivision 5, or 144E.28, subdivision 5. The licensee shall report to the board within 60 days of obtaining knowledge of the conduct constituting grounds for disciplinary action.

 

(b) A licensee shall report to the board any dismissal from employment of a first responder, EMT, EMT-I, or EMT-P. A licensee shall report the resignation of a first responder, EMT, EMT-I, or EMT-P before the conclusion of any disciplinary proceeding or before commencement of formal charges but after the first responder, EMT, EMT‑I, or EMT-P has knowledge that formal charges are contemplated or in preparation. The licensee shall report to the board within 60 days of the resignation or initial determination to dismiss. An individual's exercise of rights under a collective bargaining agreement does not extend the licensee's time period for reporting under this subdivision.


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Sec. 7. Minnesota Statutes 2002, section 144E.41, is amended to read:

 

144E.41 [PROGRAM ELIGIBILITY; QUALIFIED AMBULANCE SERVICE PERSONNEL.]

 

(a) Persons eligible to participate in the ambulance service personnel longevity award and incentive program are qualified ambulance service personnel.

 

(b) Qualified ambulance service personnel are ambulance attendants, ambulance drivers, and ambulance service medical directors or medical advisors who meet the following requirements:

 

(1) employment of the person by or provision by the person of service to an ambulance service that is licensed as such by the state of Minnesota and that provides ambulance services that are generally available to the public and are free of unfair discriminatory practices under chapter 363;

 

(2) performance by the person during the 12 months ending as of the immediately previous June 30 of all or a predominant portion of the person's services in the state of Minnesota or on behalf of Minnesota residents, as verified by August 1 annually in an affidavit from the chief administrative officer of the ambulance service;

 

(3) current certification of the person during the 12 months ending as of the immediately previous June 30 by the Minnesota department of health as an ambulance attendant, ambulance driver, or ambulance service medical director or medical advisor under section 144E.265 or 144E.28, and supporting rules, and current active ambulance service employment or service provision status of the person, as verified by August 1 annually in an affidavit from the chief administrative officer of the ambulance service; and

 

(4) conformance by the person with the definition of the phrase "volunteer ambulance attendant" under section 144E.001, subdivision 15, except that for the salary limit specified in that provision there must be substituted, for purposes of this section only, a limit of $3,000 for calendar year 1993, and $3,000 multiplied by the cumulative percentage increase in the national Consumer Price Index, all items, for urban wage earners and clerical workers, as published by the federal Department of Labor, Bureau of Labor Statistics, since December 31, 1993, and for an ambulance service medical director, conformance based solely on the person's hourly stipends or salary for service as a medical director.

 

(c) The term "active ambulance service employment or service provision status" means being in good standing with and on the active roster of the ambulance service making the certification.

 

(d) The maximum period of ambulance service employment or service provision for which a person may receive credit towards an award under this chapter, including prior service credit under section 144E.45, subdivision 2, paragraph (c), is 20 years.

 

(e) For a person who is employed by or provides service to more than one ambulance service concurrently during any period during the 12-month period, credit towards an award under this chapter is limited to one ambulance service during any period. The creditable period is with the ambulance service for which the person undertakes the greatest portion of employment or service hours.

 

Sec. 8. Minnesota Statutes 2002, section 144E.50, subdivision 5, is amended to read:

 

Subd. 5. [DISTRIBUTION.] Money from the fund shall be distributed according to this subdivision. Ninety-three and one-third percent of the fund shall be distributed annually on a contract for services basis with each of the eight regional emergency medical services systems designated by the board. Contracts with the eight regional emergency medical services systems shall be for four-year terms contingent upon appropriation of adequate funds. If the emergency medical services regulatory board does not accept a contract proposal from a current contract


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holder, the board shall initiate a contested case proceeding under sections 14.57 to 14.69, at the request of the current contract holder. The systems shall be governed by a body consisting of appointed representatives from each of the counties in that region and shall also include representatives from emergency medical services organizations. The board shall contract with a regional entity only if the contract proposal satisfactorily addresses proposed emergency medical services activities in the following areas: personnel training, transportation coordination, public safety agency cooperation, communications systems maintenance and development, public involvement, health care facilities involvement, and system management. If each of the regional emergency medical services systems submits a satisfactory contract proposal, then this part of the fund shall be distributed evenly among the regions. If one or more of the regions does not contract for the full amount of its even share or if its proposal is unsatisfactory, then the board may reallocate the unused funds to the remaining regions on a pro rata basis. Six and two-thirds percent of the fund shall be used by the board to support regionwide reporting systems and to provide other regional administration and technical assistance.

 

Sec. 9. Minnesota Statutes 2002, section 270A.03, subdivision 2, is amended to read:

 

Subd. 2. [CLAIMANT AGENCY.] "Claimant agency" means any state agency, as defined by section 14.02, subdivision 2, the regents of the University of Minnesota, any district court of the state, any county, any statutory or home rule charter city presenting a claim for a municipal hospital or a public library or a municipal an ambulance service licensed under chapter 144E, a hospital district, a private nonprofit hospital that leases its building from the county in which it is located, any public agency responsible for child support enforcement, any public agency responsible for the collection of court-ordered restitution, and any public agency established by general or special law that is responsible for the administration of a low-income housing program."

 

Delete the title and insert:

 

"A bill for an act relating to emergency medical services; modifying provisions relating to emergency medical services; permitting four-year contracts for emergency medical services; permitting certain ambulance services to make claims against tax refunds; amending Minnesota Statutes 2002, sections 144E.01, subdivision 1; 144E.27, subdivisions 1, 2, 4; 144E.286, by adding a subdivision; 144E.305, subdivision 2; 144E.41; 144E.50, subdivision 5; 270A.03, subdivision 2."

 

 

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

 

The report was adopted.

 

 

Holberg from the Committee on Civil Law to which was referred:

 

H. F. No. 561, A bill for an act relating to commerce; requiring uniform mandatory penalties against license holders and a licensee's employees for sales to minors; providing for mitigating circumstances in assessing penalties; amending Minnesota Statutes 2002, sections 461.12, subdivision 2; 461.19; repealing Minnesota Statutes 2002, section 461.12, subdivisions 2, 3.

 

Reported the same back with the following amendments:

 

Page 1, line 23, delete "must" and insert "may"

 

Page 1, line 25, after "and" insert "up to"


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Page 3, delete section 3

 

Page 3, line 20, delete "4" and insert "3"

 

Amend the title as follows:

 

Page 1, line 7, delete "; repealing Minnesota Statutes" and insert a period

 

Page 1, delete line 8

 

 

With the recommendation that when so amended the bill pass.

 

The report was adopted.

 

 

Davids from the Committee on Commerce, Jobs and Economic Development to which was referred:

 

H. F. No. 606, A bill for an act relating to health; modifying prior authorization requirements for health care services; establishing requirements for provider contracting; modifying provisions for payment of claims; regulating disclosure of profiling data; amending Minnesota Statutes 2002, sections 62M.07; 62Q.74; 62Q.75, subdivision 2; proposing coding for new law in Minnesota Statutes, chapter 62Q; repealing Minnesota Statutes 2002, section 62Q.745.

 

Reported the same back with the following amendments:

 

Delete everything after the enacting clause and insert:

 

"Section 1. Minnesota Statutes 2002, section 62M.07, is amended to read:

 

62M.07 [PRIOR AUTHORIZATION OF SERVICES.]

 

(a) Utilization review organizations conducting prior authorization of services must have written standards that meet at a minimum the following requirements:

 

(1) written procedures and criteria used to determine whether care is appropriate, reasonable, or medically necessary;

 

(2) a system for providing prompt notification of its determinations to enrollees and providers and for notifying the provider, enrollee, or enrollee's designee of appeal procedures under clause (4);

 

(3) compliance with section 62M.05, subdivisions 3a and 3b, regarding time frames for approving and disapproving prior authorization requests;

 

(4) written procedures for appeals of denials of prior authorization which specify the responsibilities of the enrollee and provider, and which meet the requirements of sections 62M.06 and 72A.285, regarding release of summary review findings; and

 

(5) procedures to ensure confidentiality of patient-specific information, consistent with applicable law.


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(b) No utilization review organization, health plan company, or claims administrator may conduct or require prior authorization of emergency confinement or emergency treatment. The enrollee or the enrollee's authorized representative may be required to notify the health plan company, claims administrator, or utilization review organization as soon after the beginning of the emergency confinement or emergency treatment as reasonably possible.

 

(c) If prior authorization for a health care service is required, the utilization review organization, health plan company, or claim administrator must allow providers to submit requests for prior authorization of such health care services without unreasonable delay by telephone, facsimile, voice mail, or through an electronic mechanism 24 hours a day, seven days a week. This paragraph does not apply to dental services covered under MinnesotaCare, general assistance medical care, or medical assistance.

 

Sec. 2. [62Q.732] [CITATION.]

 

Sections 62Q.732 to 62Q.752 may be cited as the "Minnesota Health Plan Contracting Act."

 

Sec. 3. [62Q.733] [DEFINITIONS.]

 

Subdivision 1. [APPLICABILITY.] For purposes of sections 62Q.732 to 62Q.752, the following definitions apply.

 

Subd. 2. [CONTRACT.] "Contract" means a written agreement between a health care provider and a health plan company to provide health care services.

 

Subd. 3. [HEALTH CARE PROVIDER OR PROVIDER.] "Health care provider" or "provider" means a physician, chiropractor, dentist, podiatrist, or other provider as defined under section 62J.03, other than hospitals.

 

Subd. 4. [HEALTH PLAN COMPANY.] (a) "Health plan company" means:

 

(1) a health maintenance organization operating under chapter 62D;

 

(2) a community integrated service network operating under chapter 62N;

 

(3) a preferred provider organization as defined in section 145.61, subdivision 4c; or

 

(4) an insurance company licensed under chapter 60A, nonprofit health service corporation operating under chapter 62C, fraternal benefit society operating under chapter 64B, or any other entity that establishes, operates, or maintains a health benefit plan or network of health care providers where the providers have entered into a contract with the entity to provide health care services.

 

(b) This subdivision does not apply to a health plan company with respect to coverage described in section 62A.011, subdivision 3, clauses (1) to (5) and (7) to (12).

 

Subd. 5. [FEE SCHEDULE.] "Fee schedule" means the total expected financial compensation paid to a health care provider for providing a health care service as determined by the contract between the health plan company and the provider, inclusive of withhold amounts and any amount for which the patient or other third party may be obligated to pay under the contract.


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Sec. 4. [62Q.734] [EXEMPTION.]

 

Sections 62Q.735 to 62Q.739, 62Q.74, and 62Q.752 do not apply to health plan companies whose annual Minnesota health premium revenues are less than three percent of the total annual Minnesota health premium revenues, as measured by the assessment base of the Minnesota comprehensive health association. For purposes of this percentage calculation, a health plan company's premiums include the Minnesota health premium revenues of its affiliates.

 

Sec. 5. [62Q.735] [PROVIDER CONTRACTING PROCEDURES.]

 

Subdivision 1. [CONTRACT DISCLOSURE.] (a) Before requiring a health care provider to sign a contract, a health plan company shall give to the provider a complete copy of the proposed contract, including:

 

(1) all attachments and exhibits;

 

(2) operating manuals;

 

(3) a general description of the health plan company's health service coding guidelines and requirements for procedures and diagnoses with modifiers, and multiple procedures; and

 

(4) all guidelines and treatment parameters incorporated or referenced in the contract.

 

(b) The health plan company shall make available to the provider the fee schedule or a method or process that allows the provider to determine the fee schedule for each health care service to be provided under the contract.

 

(c) Notwithstanding paragraph (b), a health plan company that is a dental plan organization, as defined in section 62Q.76, shall disclose information related to the individual contracted provider's expected reimbursement from the dental plan organization. Nothing in this section requires a dental plan organization to disclose the plan's aggregate maximum allowable fee table used to determine other providers' fees. The contracted provider must not release this information in any way that would violate any state or federal antitrust law.

 

Subd. 2. [PROPOSED AMENDMENTS.] (a) Any amendment or change in the terms of an existing contract between a health plan company and a provider must be disclosed to the provider at least 45 days prior to the effective date of the proposed change, with the exception of amendments required of the health plan company by law or governmental regulatory authority, when notice shall be given to the provider when the requirement is made known to the health plan company.

 

(b) Any amendment or change in the contract that alters the fee schedule or materially alters the written contractual policies and procedures governing the relationship between the provider and the health plan company must be disclosed to the provider not less than 45 days before the effective date of the proposed change and the provider must have the opportunity to terminate the contract before the amendment or change is deemed to be in effect.

 

(c) By mutual consent, evidenced in writing in amendments separate from the base contract and not contingent on participation, the parties may waive the disclosure requirements under paragraphs (a) and (b).

 

(d) Notwithstanding paragraphs (a) and (b), the effective date of contract termination shall comply with the terms of the contract when a provider terminates a contract.


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Sec. 6. [62Q.736] [PAYMENT RATES.]

 

A contract between a health plan company and a provider shall comply with section 62A.64.

 

Sec. 7. [62Q.737] [SERVICE CODE CHANGES.]

 

(a) For purposes of this section, "service code" means current procedural terminology (CPT), current dental terminology (CDT), ICD-CM, diagnosis-related groups (DRGs), or other coding system.

 

(b) The health plan company shall determine the manner in which it adjudicates claims. The provider may request a description of the general coding guidelines applicable to the health care services the provider is reasonably expected to render pursuant to the contract. The health plan company or its designee shall provide the coding guidelines not later than 30 days after the date the health plan receives the request. The health plan company shall provide notice of material changes to the coding guidelines not later than 45 days prior to the date the changes take effect and shall not make retroactive revision to the coding guidelines, but may issue new guidelines. A provider who receives information under this section may use or disclose the information only for the purpose of practice management, billing activities, or other business operations and may not disclose the information to third parties without the consent of the health plan company.

 

(c) The health plan company may correct an error in a submitted claim that prevents the claim from being processed, provided that the health plan company:

 

(1) notifies the provider of the change and reason for the change according to federal HIPAA transaction standards; and

 

(2) offers the provider the opportunity to appeal any changes.

 

(d) Nothing in this section shall be interpreted to require a health plan company to violate copyright or other law by disclosing proprietary licensed software. In addition to the above, the health plan company shall, upon request of a contracted provider, disclose the name, edition, and model version of the software that the health plan company uses to determine bundling and unbundling of claims.

 

(e) This section does not apply to government programs, including state public programs, Medicare, and Medicare-related coverage.

 

Sec. 8. [62Q.739] [UNILATERAL TERMS PROHIBITED.]

 

(a) A contract between a health plan company and a health care provider shall not contain or require unilateral terms regarding indemnification or arbitration. Notwithstanding any prohibitions in this section, a contract between a health plan company and a health care provider may be unilaterally terminated by either party in accordance with the terms of the contract.

 

(b) A health plan company may not terminate or fail to renew a health care provider's contract without cause unless the company has given the provider a written notice of the termination or nonrenewal 120 days before the effective date.


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Sec. 9. Minnesota Statutes 2002, section 62Q.74, is amended to read:

 

62Q.74 [NETWORK SHADOW CONTRACTING.]

 

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

 

(b) "category of coverage" means one of the following types of health-related coverage:

 

(1) health;

 

(2) no-fault automobile medical benefits; or

 

(3) workers' compensation medical benefits.

 

(c) "Health care provider" or "provider" means an individual licensed, registered, or regulated by the board of medical practice under chapter 147, a chiropractor licensed under sections 148.01 to 148.106, a dentist licensed under chapter 150A, or a hospital licensed under chapter 144.

 

(d) "Network organization" means a preferred provider organization as defined in section 145.61, subdivision 4c; a managed care organization as defined in section 62Q.01, subdivision 5; or other entity that uses or consists of a network of health care providers.

 

Subd. 2. [PROVIDER CONSENT REQUIRED.] (a) No network organization health plan company shall require a health care provider to participate in a network under a category of coverage that differs from the category or categories of coverage to which the existing contract between the network organization health plan company and the provider applies, without the affirmative consent of the provider obtained under subdivision 3.

 

(b) This section does not apply to situations in which the network organization wishes No health plan company shall require, as a condition of participation in any health plan, product, or other arrangement, the provider to participate in a new or different health plan, product, or other arrangement within a category of coverage that is already provided for in an existing contract between the network organization and the provider results in a different underlying financial reimbursement methodology without the affirmative consent of the provider obtained under subdivision 3. This paragraph does not apply to participation in health plan products or other arrangements that provide health care services to government programs, including state public programs, Medicare, and Medicare-related coverage.

 

(c) Compliance with this section may not be waived in a contract or otherwise.

 

Subd. 3. [CONSENT PROCEDURE.] (a) The network organization health plan company, if it wishes to apply an existing contract with a provider to a different category of coverage or health plan, product, or other arrangement within a category of coverage that results in a different underlying financial reimbursement methodology, shall first notify the provider in writing. The written notice must include at least the following:

 

(1) the network organization's health plan company's name, address, and telephone number, and the name of the specific network, if it differs from that of the network organization health plan company;

 

(2) a description of the proposed new category of coverage or health plan, product, or other arrangement within a category of coverage;


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(3) the names of all payers expected by the network organization health plan company to use the network for the new category of coverage or health plan, product, or other arrangement within a category of coverage;

 

(4) the approximate number of current enrollees of the network organization health plan company in that category of coverage or health plan, product, or other arrangement within a category of coverage within the provider's geographical area;

 

(5) a disclosure of all contract terms of the proposed new category of coverage or health plan, product, or other arrangement within a category of coverage, including the discount or reduced fees, care guidelines, utilization review criteria, prior notification process, prior authorization process, and dispute resolution process;

 

(6) a form for the provider's convenience in accepting or declining participation in the proposed new category of coverage or health plan, product, or other arrangement within a category of coverage, provided that the provider need not use that form in responding; and

 

(7) a statement informing the provider of the provisions of paragraph (b).

 

(b) Unless the provider has affirmatively agreed to participate within 60 days after the postmark date of the notice, the provider is deemed to have not accepted the proposed new category of coverage or health plan, product, or other arrangement within a category of coverage that results in a different underlying financial reimbursement methodology.

 

Subd. 4. [CONTRACT TERMINATION RESTRICTED.] A network organization health plan company must not terminate an existing contract with a provider, or fail to honor the contract in good faith, based solely on the provider's decision not to accept a proposed new category of coverage or health plan, product, or other arrangement within a category of coverage that results in a different underlying financial reimbursement methodology. The most recent agreed-upon contractual obligations remain in force until the existing contract's renewal or termination date.

 

Subd. 5. [REMEDY.] If a network organization health plan company violates this section by reimbursing a provider as if the provider had agreed under this section to participate in the network under a category of coverage or health plan, product, or other arrangement within a category of coverage that results in a different underlying financial reimbursement methodology to which the provider has not agreed, the provider has a cause of action against the network organization health plan company to recover two times the difference between the reasonable charges for claims affected by the violation and the amounts actually paid to the provider. The provider is also entitled to recover costs, disbursements, and reasonable attorney fees.

 

Sec. 10. Minnesota Statutes 2002, section 62Q.75, subdivision 2, is amended to read:

 

Subd. 2. [CLAIMS PAYMENTS.] (a) This section applies to clean claims submitted to a health plan company or third-party administrator for services provided by any:

 

(1) health care provider, except a provider licensed under chapter 151;

 

(2) home health care provider, as defined in section 144A.43, subdivision 4; or

 

(3) health care facility.

 

All health plan companies and third-party administrators must pay or deny claims that are clean claims within 30 calendar days after the date upon which the health plan company or third-party administrator received the claim.


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(b) The health plan company or third-party administrator shall, upon request, make available to the provider information about the status of a claim submitted by the provider consistent with section 62J.581.

 

(c) If a health plan company or third-party administrator does not pay or deny a clean claim within the period provided in paragraph (a), the health plan company or third-party administrator must pay interest on the claim for the period beginning on the day after the required payment date specified in paragraph (a) and ending on the date on which the health plan company or third-party administrator makes the payment or denies the claim. In any payment, the health plan company or third-party administrator must itemize any interest payment being made separately from other payments being made for services provided. The health plan company or third-party administrator may, at its discretion, require the health care provider to bill the health plan company or third-party administrator for the interest required under this section before any interest payment is made. Interest payments must be made to the health care provider no less frequently than quarterly.

 

(c) (d) The rate of interest paid by a health plan company or third-party administrator under this subdivision shall be 1.5 percent per month or any part of a month.

 

(d) (e) A health plan company or third-party administrator is not required to make an interest payment on a claim for which payment has been delayed for purposes of reviewing potentially fraudulent or abusive billing practices.

 

(e) The commissioner may not assess a financial administrative penalty against a health plan company for violation of this subdivision.

 

(f) The commissioner may assess a financial administrative penalty against a health plan company for violation of this subdivision when there is a pattern of abuse that demonstrates a lack of good faith effort and a systematic failure of the health plan company to comply with this subdivision.

 

Sec. 11. [62Q.752] [DISCLOSURE OF PROFILING DATA.]

 

Subdivision 1. [DISCLOSURE.] Before releasing provider identifiable profiling data to consumers or health plan members, health plan companies shall provide a provider with an opportunity to review the provider's identifiable data and a summary describing the underlying analysis and methodology. A provider shall be given 30 days after receipt of the identifiable data and summary to comment. This subdivision does not apply to the release of provider-identifiable data to plan sponsors, group purchasers, or government agencies.

 

Subd. 2. [RELEASE OF DATA; APPEAL.] Before a health plan company or health plan sponsor may release any data covered by this section, the health plan company or plan sponsor must provide the subject of the data the opportunity to provide the health plan company or plan sponsor with information supporting or critical to the methodology procedure or information utilized in assembling the data to be released. The health plan company or plan sponsor must consider any information provided by the data subject and provide a written response to the data subject before releasing the data. A health plan company or plan sponsor must provide the subject of the data with a timely appeal process if the subject of the data, after receiving the health plan company or plan sponsor's written response, continues to contest the methodology, procedure, or information utilized by the health plan company or plan sponsor.

 

Subd. 3. [DENTAL PROFILING.] Utilization profiling conducted by a dental plan organization is not affected by this section but is subject to section 62Q.78.

 

Sec. 12. [REPEALER.]

 

Minnesota Statutes 2002, section 62Q.745, is repealed.


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Sec. 13. [EFFECTIVE DATE.]

 

Sections 1 to 12 are effective July 1, 2003."

 

 

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

 

The report was adopted.

 

 

Erhardt from the Committee on Transportation Policy to which was referred:

 

H. F. No. 643, A bill for an act relating to motor vehicles; modifying definition of registered owner of motor vehicle; regulating temporary registration permits for vehicles; modifying registration renewal notice procedures; modifying procedures relating to vehicle transactions with dealers; clarifying regulatory responsibilities for vehicle insurance; requiring trucks weighing over 10,000 pounds to submit to weighing; modifying provisions governing expiration dates for drivers' licenses and identification cards; making clarifying changes; amending Minnesota Statutes 2002, sections 168.011, subdivision 5a; 168.09, subdivision 7; 168.11, subdivision 3; 168.187, by adding a subdivision; 168A.11; 169.798, subdivision 1; 169.85, subdivision 1; 171.07, subdivision 4; 171.27.

 

Reported the same back with the following amendments:

 

Page 4, line 10, reinstate "need" and delete "shall"

 

Page 5, line 3, delete "shall" and insert "may"

 

Page 5, line 7, after "time" insert "that is titled or registered in Minnesota"

 

 

With the recommendation that when so amended the bill pass.

 

The report was adopted.

 

 

Abrams from the Committee on Taxes to which was referred:

 

H. F. No. 646, A bill for an act relating to gambling; state lottery; providing for gaming machines; establishing horse racing purse payments; requiring a report; amending Minnesota Statutes 2002, sections 240.13, by adding a subdivision; 299L.07, subdivisions 2, 2a; 340A.410, subdivision 5; 349A.01, subdivision 10, by adding subdivisions; 349A.10, subdivision 3; 349A.13; 541.20; 541.21; 609.75, subdivision 3; 609.761, subdivision 2; proposing coding for new law in Minnesota Statutes, chapters 297A; 349A.

 

Reported the same back with the following amendments:

 

Page 2, line 12, after "by" insert "(1) until June 30, 2005, 51 percent, (2) from July 1, 2005 to June 30, 2007, 34 percent, and (3) on and after July 1, 2007,"


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Page 7, line 15, delete "45 percent" and insert "the following percentages"

 

Page 7, line 16, after "revenue" insert "; (1) until June 30, 2005, 34 percent, (2) from July 1, 2005, to June 30, 2007, 51 percent, and (3) on and after July 1, 2007, 45 percent"

 

 

With the recommendation that when so amended the bill be re-referred to the Committee on Ways and Means without further recommendation.

 

The report was adopted.

 

 

Holberg from the Committee on Civil Law to which was referred:

 

H. F. No. 676, A bill for an act relating to mental health; clarifying that persons who are voluntary patients for treatment of a mental illness are not subject to civil commitment; amending Minnesota Statutes 2002, sections 253B.04, subdivision 1; 253B.05, subdivision 3.

 

Reported the same back with the following amendments:

 

Page 2, line 18, delete "accepting" and insert "participating in"

 

Page 2, line 24, delete "accepting" and insert "participating in" and delete "reasonable" and insert "appropriate" and after "treatment" insert ", including clinically appropriate and lawful use of neuroleptic medication and electroconvulsive therapy"

 

 

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

 

The report was adopted.

 

 

Rhodes from the Committee on Governmental Operations and Veterans Affairs Policy to which was referred:

 

H. F. No. 687, A bill for an act relating to utilities; requiring at least two members of the public utilities commission to be from outside the metropolitan area; amending Minnesota Statutes 2002, section 216A.03, subdivision 1.

 

Reported the same back with the following amendments:

 

Page 1, line 17, after the period, insert "Of these two commissioners, at least one must be domiciled outside a city of the first or second class, as defined in section 410.01, at the time of initial appointment."

 

Page 2, after line 5, insert:

 

"Sec. 2. [UTILITY REGULATORY REVIEW; RURAL CONCERNS.]

 

(a) The chair of the public utilities commission and the commissioner of commerce shall jointly review the organizational structure and regulatory procedures by which energy and telecommunications service providers are regulated by the state. By January 15, 2004, the chair and the commissioner shall issue a report on that review to the


Journal of the House - 34th Day - Monday, April 7, 2003 - Top of Page 1258

chairs of the house and senate committees with jurisdiction over utility regulation, and shall include recommendations for executive and legislative action to ensure the state has the most representative, cost-effective, and efficient utility regulatory system possible.

 

(b) A primary focus of this review must be to consider and make recommendations for actions that could be taken to ensure the utility regulatory structure and process takes into account the issues and concerns of rural and center city service providers, residents, and businesses. Items for consideration must include:

 

(1) requiring the commission to hold hearings in rural Minnesota, both on a regular basis and when an issue of special concern to rural Minnesota is before the commission; and

 

(2) the establishment of a screening process for applicants for the public utilities commission to demonstrate their understanding and experience with regard to rural and center city utility service issues.

 

Sec. 3. [EFFECTIVE DATE.]

 

Section 1 is effective June 30, 2004. Section 2 is effective the day following final enactment."

 

Amend the title as follows:

 

Page 1, line 4, after the semicolon, insert "requiring utility regulatory review and report;"

 

 

With the recommendation that when so amended the bill pass.

 

The report was adopted.

 

 

Holberg from the Committee on Civil Law to which was referred:

 

H. F. No. 730, A bill for an act relating to real property; statutory home warranties; amending the exclusions for liability of the vendor and home improvement contractor; specifying limitation of actions based on breach; amending Minnesota Statutes 2002, sections 327A.03; 541.051, subdivision 4.

 

Reported the same back with the following amendments:

 

Delete everything after the enacting clause and insert:

 

"Section 1. Minnesota Statutes 2002, section 327A.02, is amended by adding a subdivision to read:

 

Subd. 4. [ACTION ALLOWED; LIMITATION.] An owner or vendee has one year following the expiration of each of the warranty periods provided in subdivisions 1 and 3, to discover a defect which has occurred within the warranty period. Notwithstanding any law to the contrary, no action under this section may be brought more than three years after the expiration of each of the warranty periods provided in subdivisions 1 and 3."

 

Delete the title and insert:

 

"A bill for an act relating to real property; statutory warranties; specifying limitation of certain actions and providing for a discovery period of defects; amending Minnesota Statutes 2002, section 327A.02, by adding a subdivision."

 

 

With the recommendation that when so amended the bill pass.

 

The report was adopted.


Journal of the House - 34th Day - Monday, April 7, 2003 - Top of Page 1259

Rhodes from the Committee on Governmental Operations and Veterans Affairs Policy to which was referred:

 

H. F. No. 772, A bill for an act relating to agriculture; eliminating the expiration date for the Minnesota agriculture education leadership council; repealing Minnesota Statutes 2002, section 41D.01, subdivision 4.

 

Reported the same back with the following amendments:

 

Page 1, delete section 1 and insert:

 

"Section 1. Minnesota Statutes 2002, section 41D.01, subdivision 4, is amended to read:

 

Subd. 4. [EXPIRATION.] This section expires on June 30, 2003 2006."

 

Amend the title as follows:

 

Page 1, line 2, delete "eliminating" and insert "extending"

 

Page 1, line 4, delete "repealing" and insert "amending"

 

 

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

 

The report was adopted.

 

 

Rhodes from the Committee on Governmental Operations and Veterans Affairs Policy to which was referred:

 

H. F. No. 793, A bill for an act relating to public employees; instituting a freeze on salaries and wage rates for government employees.

 

Reported the same back with the following amendments:

 

Delete everything after the enacting clause and insert:

 

"Section 1. [SALARY FREEZE.]

 

Subdivision 1. [SALARY INCREASES PROHIBITED.] (a) From the effective date of this section through June 30, 2005, a state employer must not increase the rate of salary or wages for any employee. This section prohibits any increase including, but not limited to, across-the-board increases, cost of living adjustments, increases based on longevity, increases as a result of step and lane changes, increases in the form of lump-sum payments, increases in employer contributions to deferred compensation plans, or any other pay grade adjustments of any kind. For purposes of this section, salary or wages does not include employer contributions toward the cost of medical or dental insurance premiums provided that employee contributions to the costs of medical or dental insurance premiums are not decreased.

 

(b) This section does not prohibit an increase in the rate of salary and wages for an employee who is promoted or transferred to a position that the employer determines has greater job responsibilities.


Journal of the House - 34th Day - Monday, April 7, 2003 - Top of Page 1260

(c) Notwithstanding any law to the contrary, the terms of a collective bargaining agreement in effect on June 30, 2003, may not be extended after that date if the extension would increase a salary in a manner prohibited by this section.

 

Subd. 2. [FUTURE CONTRACTS.] A contract or collective bargaining agreement or compensation plan entered into after June 30, 2005, must not provide a retroactive salary, or wage increase that applies to a period before June 30, 2005, if that increase would be prohibited by this section if granted before June 30, 2005.

 

Subd. 3. [ARBITRATION AND STRIKES.] Notwithstanding any law to the contrary:

 

(1) an employee may not legally strike due to a state employer's refusal to grant a salary or wage increase if the refusal is required to comply with this section; and

 

(2) neither a state employer nor an exclusive representative may request interest arbitration in relation to an increase in the rate of salary or wages that is prohibited by this section, and an arbitrator may not issue an award that would increase salary or wages in a manner prohibited by this section.

 

Subd. 4. [DEFINITIONS.] For purposes of this section:

 

(1) "state employer" means an appointing authority in the executive, legislative, or judicial branches as defined in Minnesota Statutes, section 43A.02, subdivisions 5, 22, 25, and 27; and

 

(2) "employee" has the meaning given in Minnesota Statutes, section 43A.02, subdivision 21.

 

Subd. 5. [RELATION TO OTHER LAW.] This section supersedes Minnesota Statutes, chapter 179A, and any other law to the contrary. It is not an unfair labor practice under Minnesota Statutes, chapter 179A, for a state employer to take any action required to comply with this section.

 

Sec. 2. [UNIVERSITY OF MINNESOTA; SALARY AND WAGE RATE FREEZE RECOMMENDED.]

 

The legislature strongly recommends that the University of Minnesota comply with section 1 as if it were defined as a state employer under that section.

 

Sec. 3. [EFFECTIVE DATE.]

 

Sections 1 and 2 are effective July 1, 2003."

 

Amend the title as follows:

 

Page 1, line 2, delete "public" and insert "state"

 

Page 1, line 3, delete "government" and insert "state"

 

 

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

 

The report was adopted.


Journal of the House - 34th Day - Monday, April 7, 2003 - Top of Page 1261

Rhodes from the Committee on Governmental Operations and Veterans Affairs Policy to which was referred:

 

H. F. No. 810, A bill for an act relating to state lands; providing for certain state land acquisition; modifying the Mississippi whitewater trail; modifying provisions of the outdoor recreation system; establishing a mineral coordinating committee; adding to and deleting from state parks, state recreation areas, state forests, and wildlife management areas; authorizing public and private sales and conveyances of certain state lands; requiring certain land exchanges; amending Minnesota Statutes 2002, sections 85.013, subdivision 1; 85.0156, subdivision 1; 86A.04; proposing coding for new law in Minnesota Statutes, chapter 93.

 

Reported the same back with the following amendments:

 

Page 3, after line 31, insert:

 

"Sec. 5. [GREENLEAF LAKE STATE PARK.]

 

Subdivision 1. [85.012] [Subd. 24b.] [GREENLEAF LAKE STATE PARK, MEEKER COUNTY.] Greenleaf Lake state park is established in Meeker county.

 

Subd. 2. [BOUNDARIES.] The following described lands are added to Greenleaf Lake state park, all in Township 118 North, Range 30 West, Meeker county:

 

(1) all of Government Lots 1 and 2, the East Half of the South 23.61 acres of Government Lot 3, and Government Lot 4, excepting that part described as follows: Beginning at a point 109 feet South of a point on the section line which is 4301.5 feet East of the northwest corner of Section 20; thence in a southwesterly direction South 14 degrees 36 seconds West 403.0 feet; thence in a southeasterly direction South 75 degrees 24 minutes East 402 feet, to a point on the meandered line of Sioux Lake; thence in a northeasterly direction along the meandered line North 14 degrees 36 minutes East 553 feet; thence in a southwesterly direction along the meandered line South 84 degrees 00 minutes West 431 feet, to the point of beginning, said exception containing 4.4 acres more or less; all in Section 20;

 

(2) all of Government Lot 2, the Southeast Quarter except that described as follows: Beginning at the northeast corner of said Southwest Quarter of the Southeast Quarter; thence on an assumed bearing of South 0 degrees 08 minutes 46 seconds West, along the east line of said Southwest Quarter of the Southeast Quarter, a distance of 306.24 feet; thence on a bearing of North 84 degrees 17 minutes 23 seconds West, 628.50 feet; thence on a bearing of North 0 degrees 08 minutes 46 seconds East, 338.05 feet; thence on a bearing of South 86 degrees 08 minutes East, 626.86 feet to the east line of the Northwest Quarter of the Southeast Quarter; thence on a bearing of South 0 degrees 08 minutes 46 seconds West, along last said line, 52.07 feet to the point of beginning. Containing 2.5 acres, more or less. Subject to the rights of the public in County Road No. 172; and excepting the north nine and eighty-four hundredths (9.84) acres of the Southeast Quarter of the Southeast Quarter described as follows: Beginning at the northeast corner of the Southeast Quarter of the Southeast Quarter and running; thence West nineteen and ninety-two hundredths chains (19.92) to the 1/16 section corner; thence South on the 1/16 section line four and sixty-four hundredths (4.64) chains; thence East nineteen and ninety-three hundredths (19.93) chains to the section line; thence North on section line five and twenty-four hundredths (5.24) chains to the place of beginning; all in Section 21;

 

(3) the Northeast Quarter of the Northeast Quarter, the Northwest Quarter of the Northeast Quarter, the Northeast Quarter of the Northwest Quarter, and the Northwest Quarter of the Northwest Quarter, all in Section 28;

 

(4) all of Section 29, except that part of Government Lot 4 bounded by the following described lines: Beginning at a point of intersection with the center line of County Road No. 169 and the north line of said Section 29; thence North 90 degrees 00 minutes East, 994.8 feet along the north line of said Section 29; thence South 00 degrees 00


Journal of the House - 34th Day - Monday, April 7, 2003 - Top of Page 1262

minutes West, 17.9 feet; thence South 75 degrees 28 minutes West, 1051.4 feet, to the center line of County Road No. 169; thence North 04 degrees 39 minutes East, 282.7 feet along the center line of County Road No. 169 to the point of beginning: Including all riparian rights to the contained 3.4 acres more or less and subject to existing road easements; all in Section 29;

 

(5) the Southeast Quarter of the Southeast Quarter, the Northeast Quarter of the Southeast Quarter, the Southeast Quarter of the Northeast Quarter, and the Northeast Quarter of the Northeast Quarter, all in Section 30; and

 

(6) the West 15 acres of the Northwest Quarter of the Northwest Quarter of Section 32."

 

Page 9, line 19, delete "21" and insert "22"

 

Page 21, after line 14, insert:

 

"Sec. 25. [PRIVATE SALE OF TAX-FORFEITED LAND BORDERING PUBLIC WATER; ST. LOUIS COUNTY.]

 

(a) Notwithstanding Minnesota Statutes, sections 92.45 and 282.018, subdivision 1, and the public sale provisions of Minnesota Statutes, chapter 282, St. Louis county may sell by private sale the tax-forfeited land bordering public water that is 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 for a consideration of taxes due on the property and any penalties, interest, and costs.

 

(c) The land to be sold is located in St. Louis county and is described as: Lots 54 and 55, Lake Nichols, town of Northland (parcel code 490-0020-00560).

 

(d) The county has determined that the county's land management interests would best be served if the lands were returned to private ownership."

 

Page 24, line 1, delete "27" and insert "29"

 

Page 24, line 5, delete "13 and 25" and insert "14 and 27"

 

Renumber the sections in sequence

 

Amend the title as follows:

 

Page 1, line 6, before "adding" insert "establishing a new state park;"

 

 

With the recommendation that when so amended the bill pass.

 

The report was adopted.


Journal of the House - 34th Day - Monday, April 7, 2003 - Top of Page 1263

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

 

H. F. No. 850, A bill for an act relating to natural resources; requiring the commissioner of natural resources to enter into an agreement for local management of the Rush river wayside unit of the Minnesota Valley state recreation area.

 

Reported the same back with the following amendments:

 

Delete everything after the enacting clause and insert:

 

"Section 1. [DELETIONS FROM MINNESOTA VALLEY STATE RECREATION AREA.] [85.013] [Subd. 17a.] [MINNESOTA VALLEY STATE RECREATION AREA; SIBLEY COUNTY.] The following areas are deleted from the Minnesota Valley state recreation area, Sibley county:

 

(1) Tract 43 (Sibley County to the State of Minnesota; 160 acres, more or less) Southeast Quarter (SE1/4) of Section Fifteen (15), Township One Hundred Twelve (112) North, of Range Twenty-Six (26) West;

 

(2) Tract 89 (Nagel to the State of Minnesota; 45.7 acres, more or less) The West One-half of the Northeast Quarter of the Northwest Quarter (W1/2 NE1/4 NW1/4), Section Twenty-three (23), Township One Hundred Twelve (112) North, Range Twenty-six (26) West;

 

(3) The South One-half of the North One-half of the Northeast Quarter (S1/2 N1/2 NE1/4), except the East 960 feet thereof, Section Twenty-three (23), Township One Hundred Twelve (112) North, Range Twenty-six (26) West;

 

(4) Tract 90 (Nagel to the State of Minnesota; 20 acres, more or less) The East One-half of the Northeast Quarter of the Northwest Quarter (E1/2 NE1/4 NW1/4), Section Twenty-three (23), Township One Hundred Twelve (112) North, Range Twenty-six (26) West; and

 

(5) Tract 91 (Nagel to the State of Minnesota; 60 acres, more or less) Southwest Quarter of the Southwest Quarter (SW1/4 SW1/4), Section Fourteen (14), Township One Hundred Twelve (112) North, Range Twenty-six (26) West, and the East One-half of the Northwest Quarter of the Northwest Quarter (E1/2 NW1/4 NW1/4), Section Twenty-three (23), Township One Hundred Twelve (112) North, Range Twenty-six (26) West, containing 60 acres, more or less.

 

Sec. 2. [CONVEYANCE OF LAND; SIBLEY COUNTY.]

 

(a) The commissioner of natural resources shall convey to Sibley county for no consideration the lands described in section 1, upon receipt of a resolution requesting the conveyance from Sibley county.

 

(b) The conveyance must be in a form approved by the attorney general and provide that the land reverts to the state if the owner does not keep it open to the general public, provided that the owner may manage the land in the manner it deems appropriate, including charging a fee for use of the land or certain services, and contracting with a private nonprofit organization for management of the park.

 

Sec. 3. [EFFECTIVE DATE.]

 

This act is effective the day following final enactment."


Journal of the House - 34th Day - Monday, April 7, 2003 - Top of Page 1264

Delete the title and insert:

 

"A bill for an act relating to natural resources; providing for a land conveyance in Sibley county."

 

 

With the recommendation that when so amended the bill pass.

 

The report was adopted.

 

 

Holberg from the Committee on Civil Law to which was referred:

 

H. F. No. 852, A bill for an act relating to commerce; regulating motor vehicle retail installment sales; amending Minnesota Statutes 2002, sections 168.66, subdivision 14; 168.71, subdivision 2; 168.75.

 

Reported the same back with the following amendments:

 

Page 1, after line 6, insert:

 

"Section 1. Minnesota Statutes 2002, section 47.59, subdivision 4a, is amended to read:

 

Subd. 4a. [FINANCE CHARGE FOR MOTOR VEHICLE RETAIL INSTALLMENT SALES.] A retail installment contract evidencing the retail installment sale of a motor vehicle as defined in section 168.66 is subject to the finance charge limitations in paragraphs (a) and (b).

 

(a) The finance charge authorized by this subdivision in a retail installment sale may not exceed the following annual percentage rates applied to the principal balance determined in the same manner as in section 168.71, subdivision 2, clause (5):

 

(1) Class 1. A motor vehicle designated by the manufacturer by a year model of the same or not more than one year before the year in which the sale is made, 18 percent per year.

 

(2) Class 2. A motor vehicle designated by the manufacturer by a year model of two to three years before the year in which the sale is made, 19.75 percent per year.

 

(3) Class 3. Any motor vehicle not in Class 1 or Class 2, 23.25 percent per year.

 

(b) A sale of a manufactured home made after July 31, 1983, is governed by this subdivision for purposes of determining the lawful finance charge rate, except that the maximum finance charge for a Class 1 manufactured home may not exceed 14.5 percent per year. A retail installment sale of a manufactured home that imposes a finance charge that is greater than the rate permitted by this subdivision is lawful and enforceable in accordance with its terms until the indebtedness is fully satisfied if the rate was lawful when the sale was made."

 

Page 1, line 7, delete "Section 1." and insert "Sec. 2."

 

Page 1, line 23, delete "2" and insert "3"

 

Page 3, line 2, delete "3" and insert "4"

 

Page 5, line 3, after "2" insert "or 3"


Journal of the House - 34th Day - Monday, April 7, 2003 - Top of Page 1265

Page 5, line 35, after "2" insert "or 3"

 

Page 6, line 24, delete "4" and insert "5"

 

Page 6, line 25, delete "and 2" and insert "to 3"

 

Page 6, line 26, delete "3" and insert "4"

 

Amend the title as follows:

 

Page 1, line 4, after "sections" insert "47.59, subdivision 4a;"

 

 

With the recommendation that when so amended the bill pass.

 

The report was adopted.

 

 

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

 

H. F. No. 859, A bill for an act relating to natural resources; modifying provisions for the sale of state timber; providing criminal penalties; amending Minnesota Statutes 2002, sections 90.01, by adding a subdivision; 90.101; 90.121; 90.14; 90.151, subdivisions 1, 2; 90.161, subdivision 1; 90.173; 90.191, subdivisions 3, 4; 90.251, subdivision 1; proposing coding for new law in Minnesota Statutes, chapter 90.

 

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

 

The report was adopted.

 

 

Rhodes from the Committee on Governmental Operations and Veterans Affairs Policy to which was referred:

 

H. F. No. 864, A bill for an act relating to higher education; making changes to the higher education services office; amending Minnesota Statutes 2002, sections 136A.03; 136A.031, subdivisions 2, 5; repealing Minnesota Statutes 2002, sections 15A.081, subdivision 7b; 136A.011; 136A.031, subdivisions 1, 3, 4; 136A.07.

 

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

 

The report was adopted.

 

 

Holberg from the Committee on Civil Law to which was referred:

 

H. F. No. 865, A bill for an act relating to health; modifying provisions relating to the board of psychology; amending Minnesota Statutes 2002, sections 13.383, subdivision 8; 148.89, subdivision 5; 148.925, subdivision 1; 148.941, by adding a subdivision; proposing coding for new law in Minnesota Statutes, chapter 148.

 

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

 

The report was adopted.


Journal of the House - 34th Day - Monday, April 7, 2003 - Top of Page 1266

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

 

H. F. No. 873, A bill for an act relating to counties; changing certain auditing requirements; amending Minnesota Statutes 2002, sections 6.48; 6.49; 6.54; 6.55; 6.64; 6.65; 6.66; 6.67; 6.68, subdivision 1; 6.70; 6.71.

 

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

 

The report was adopted.

 

 

Rhodes from the Committee on Governmental Operations and Veterans Affairs Policy to which was referred:

 

H. F. No. 885, A bill for an act relating to health; exempting certain food establishments from certain equipment design and construction rules; amending Minnesota Statutes 2002, section 157.011, by adding a subdivision.

 

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

 

The report was adopted.

 

 

Westrom from the Committee on Regulated Industries to which was referred:

 

H. F. No. 892, A bill for an act relating to telecommunications; deregulating independent telephone companies; amending Minnesota Statutes 2002, section 237.01, subdivision 3; proposing coding for new law in Minnesota Statutes, chapter 237.

 

Reported the same back with the following amendments:

 

Delete everything after the enacting clause and insert:

 

"Section 1. Minnesota Statutes 2002, section 237.01, subdivision 3, is amended to read:

 

Subd. 3. [INDEPENDENT TELEPHONE COMPANY.] "Independent telephone company" means a telephone company organized and operating under chapter 301 or 302A or authorized to do business in Minnesota under chapter 303 as of January 1, 1983, and providing local exchange service to fewer than 30,000 50,000 subscribers within the state.

 

Sec. 2. [237.414] [EXPANDED CALLING AREAS; TRANSPORT FACILITIES; TERMINATIONS.]

 

Subdivision 1. [EXPANDED CALLING AREAS.] An independent telephone company may expand the area to which it can provide calling to its customers upon filing with the commission any agreements between the independent telephone company and other telephone companies and telecommunications carriers entered into under subdivision 3. Calling to these expanded areas must be optional to customers. The independent telephone company may determine the quantity of expanded calling to provide, the prices for such calling, and whether to offer calling alone or in combination with one or more other telephone or unregulated services. Customers must be notified of local service options, including options that do not include expanded calling, as required under section 237.66. The independent telephone company is not required to offer unlimited flat-rate calling to these expanded calling areas.


Journal of the House - 34th Day - Monday, April 7, 2003 - Top of Page 1267

The independent telephone company shall file tariffs setting forth the expanded calling area along with the applicable prices and quantities of calling. This section does not apply to extended area service or to calling areas previously or hereafter established by order of the commission. This section does not limit the existing rights and obligations of telephone companies and telecommunications carriers to provide local calling or expanded calling.

 

Subd. 2. [OBTAINING TRANSPORT FACILITIES.] An independent telephone company may construct, purchase, lease, or rent transport facilities to provide the expanded calling. An independent telephone company may petition the commission to resolve issues regarding prices, terms, and conditions for use of any transport facilities that are subject to the jurisdiction of the commission if the independent telephone company is unable to reach agreement with other telephone companies or telecommunications carriers.

 

Subd. 3. [RESOLVING MULTIPLE LOCAL SERVICE PROVIDER ISSUES.] (a) An independent telephone company providing an expanded calling area under this section may enter into an agreement to terminate calls with telephone companies and telecommunications carriers providing local service within the expanded calling area. The rates paid by the independent telephone company to terminate expanded calling into such areas must be the intrastate access charges of the telephone company or telecommunications carrier providing local service in the expanded calling area or such other rates as the companies may mutually agree.

 

(b) If two telephone companies provide expanded calling between their respective areas, the telephone companies may also enter into "bill and keep" arrangements for exchange of the expanded calling traffic.

 

(c) The independent telephone company shall file with the commission any agreements for termination of calling by telephone companies and telecommunications carriers providing local service within the expanded calling area.

 

Subd. 4. [AMENDING OR TERMINATING EXPANDED CALLING SERVICE.] Except for calling areas that result from a prior or subsequent order of the commission, an independent telephone company may amend or terminate the expanded calling service upon 30 days' written notice to customers, the commission, and other telephone companies and telecommunications carriers providing local service in the expanded area.

 

Sec. 3. [237.43] [ANNUAL UNIVERSAL SERVICE FUNDING CERTIFICATION.]

 

In determining whether to provide the annual certification of any eligible telecommunications carrier for continued receipt of federal universal service funding, the commission shall apply the same standards and criteria to all eligible telecommunications carriers."

 

 

With the recommendation that when so amended the bill pass.

 

The report was adopted.

 

 

Erhardt from the Committee on Transportation Policy to which was referred:

 

H. F. No. 927, A bill for an act relating to traffic regulations; establishing the speed limit on a segment of I-35E; amending Minnesota Statutes 2002, section 169.14, by adding a subdivision.

 

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

 

The report was adopted.


Journal of the House - 34th Day - Monday, April 7, 2003 - Top of Page 1268

Holberg from the Committee on Civil Law to which was referred:

 

H. F. No. 929, A bill for an act relating to the metropolitan mosquito control district; including the rest of Carver county in the district; adding a second member for Carver county; providing for pesticide application for mosquito control; clarifying the exception to prohibiting entry upon private property if objected to; making the district subject to the Minnesota Uniform Municipal Contracting Law; eliminating per diems for commissioners; making expense payments permissive rather than mandatory; making conforming changes; amending Minnesota Statutes 2002, sections 18B.07, subdivision 2; 473.702; 473.703, subdivision 1; 473.704, subdivision 17; 473.705; 473.714, subdivision 1; repealing Minnesota Statutes 2002, section 473.714, subdivision 2.

 

Reported the same back with the following amendments:

 

Page 4, line 11, after the period, insert "The commission must make a reasonable attempt to contact the objecting property owner before entry."

 

 

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

 

The report was adopted.

 

 

Rhodes from the Committee on Governmental Operations and Veterans Affairs Policy to which was referred:

 

H. F. No. 943, A bill for an act relating to state government; modifying practices and procedures relating to state finance; transferring state treasurer duties to the commissioner of finance; amending Minnesota Statutes 2002, sections 7.26; 15.62, subdivisions 2, 3; 16A.10, subdivisions 1, 2; 16A.11, subdivision 3; 16A.127, subdivision 4; 16A.1285, subdivision 3; 16A.129, subdivision 3; 16A.133, subdivision 1; 16A.27, subdivision 5; 16A.46; 16A.626; 16A.642, subdivision 1; 16D.09, subdivision 1; 16D.13, subdivisions 1, 2; 35.08; 35.09, subdivision 3; 49.24, subdivisions 13, 16; 84A.11; 84A.23, subdivision 4; 84A.33, subdivision 4; 84A.40; 85A.05, subdivision 2; 94.53; 115A.58, subdivision 2; 116.16, subdivision 4; 116.17, subdivision 2; 122A.21; 126C.72, subdivision 2; 127A.40; 161.05, subdivision 3; 161.07; 167.50, subdivision 2; 174.51, subdivision 2; 176.181, subdivision 2; 176.581; 190.11; 241.08, subdivision 1; 241.10; 241.13, subdivision 1; 244.19, subdivision 7; 245.697, subdivision 2a; 246.15, subdivision 1; 246.18, subdivision 1; 246.21; 276.11, subdivision 1; 280.29; 293.06; 299D.03, subdivision 5; 352.05; 352B.03, subdivision 2; 354.06, subdivision 3; 354.52, subdivision 5; 385.05; 475A.04; 475A.06, subdivision 2; 481.01; 490.123, subdivision 2; 525.161; 525.841; proposing coding for new law in Minnesota Statutes, chapter 16A; repealing Minnesota Statutes 2002, sections 7.21; 16A.06, subdivision 10; 16A.131, subdivision 1; 16D.03, subdivision 3; 16D.09, subdivision 2.

 

Reported the same back with the following amendments:

 

Page 2, delete section 3

 

Page 5, lines 9 to 19, delete the new language and reinstate the stricken language

 

Page 5, line 20, reinstate everything before the second "the"

 

Page 5, line 21, after the stricken "numbered" insert "November 30 in each even-numbered" and reinstate the stricken "year and to"

 

Page 5, lines 22 to 26, reinstate the stricken language


Journal of the House - 34th Day - Monday, April 7, 2003 - Top of Page 1269

Page 6, after line 31, insert:

 

"Sec. 10. Minnesota Statutes 2002, section 16A.14, subdivision 3, is amended to read:

 

Subd. 3. [SPENDING PLAN.] An appropriation to an agency may not be made available for spending in the next allotment period until the agency has submitted met all the requirements related to the policies and procedures of the Minnesota accounting and procurement system. A spending plan shall be submitted by July 31 to the commissioner on the commissioner's form with. The spending plan must certify that: the amount required for each activity and each is accurate and is consistent with legislative intent; revenue estimates are reasonable; and the plan is structurally balanced, with all legal restrictions on spending having been met for the purpose for which money is to be spent. The spending plan must also be approved or modified by the commissioner and funds allotted for the plan before the money is made available.

 

Sec. 11. Minnesota Statutes 2002, section 16A.17, is amended by adding a subdivision to read:

 

Subd. 10. [DIRECT DEPOSIT.] Notwithstanding section 177.23, the commissioner may require direct deposit for all state employees who are being paid by the state payroll system.

 

Sec. 12. Minnesota Statutes 2002, section 16A.40, is amended to read:

 

16A.40 [WARRANTS AND ELECTRONIC FUND TRANSFERS.]

 

Money must not be paid out of the state treasury except upon the warrant of the commissioner or an electronic fund transfer approved by the commissioner. Warrants must be drawn on printed blanks that are in numerical order. The commissioner shall enter, in numerical order in a warrant register, the number, amount, date, and payee for every warrant issued.

 

The commissioner may require payees receiving more than ten payments or $10,000 per year must to supply the commissioner with their bank routing information to enable the payments to be made through an electronic fund transfer."

 

Page 7, after line 16, insert:

 

"Sec. 14. Minnesota Statutes 2002, section 16A.501, is amended to read:

 

16A.501 [REPORT ON EXPENDITURE OF BOND PROCEEDS.]

 

The commissioner of finance must report annually to the legislature on the degree to which entities receiving appropriations for capital projects in previous omnibus capital improvement acts have encumbered or expended that money. The report must be submitted to the chairs of the house of representatives ways and means committee and the senate finance committee by February January 1 of each year."

 

Page 7, line 27, strike "February" and insert "January"

 

Page 8, line 4, strike "February" and insert "January"


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Page 11, after line 5, insert:

 

"Sec. 20. [CARRYFORWARD.]

 

Notwithstanding Minnesota Statutes, section 16A.28, or other law to the contrary, funds encumbered by the judicial or executive branch for severance costs, unemployment compensation costs, and health, dental, and life insurance continuation costs resulting from state employee layoffs during the fiscal year ending June 30, 2003, may be carried forward and may be spent until January 1, 2004."

 

Renumber the sections in sequence

 

Amend the title as follows:

 

Page 1, line 9, after "1;" insert "16A.14, subdivision 3; 16A.17, by adding a subdivision;" and after "5;" insert "16A.40;" and after "16A.46;" insert "16A.501;"

 

Page 1, line 26, delete everything after the second semicolon

 

Page 1, line 27, delete everything before "repealing"

 

 

With the recommendation that when so amended the bill pass.

 

The report was adopted.

 

 

Westrom from the Committee on Regulated Industries to which was referred:

 

H. F. No. 958, A bill for an act relating to energy; declaring the goal of moving Minnesota to a hydrogen energy economy; providing incentive payments for producing qualified hydrogen; supporting research and development related to hydrogen energy; providing a sales tax exemption for hydrogen and hydrogen fuel cells; providing an exemption from the motor vehicle excise tax for hydrogen-fueled vehicles; amending Minnesota Statutes 2002, sections 116C.779; 216B.1691, subdivision 1; 216B.241, subdivisions 1, 2; 216B.2422, subdivision 1; 216C.41, subdivisions 1, 2, 3, 4, 5; 297A.67, by adding a subdivision; 297B.03; proposing coding for new law in Minnesota Statutes, chapter 216B.

 

Reported the same back with the following amendments:

 

Pages 11 to 14, delete sections 12 and 13

 

Page 14, line 16, before "The" insert "Subdivision 1. [DEVELOPMENT OF BUSINESSES ENGAGED IN HYDROGEN PRODUCTION.]"

 

Page 14, after line 26, insert:

 

"Subd. 2. [ENERGY INNOVATION ZONES.] (a) The commissioner of trade and economic development, in consultation with the commissioners of commerce and revenue, shall develop a plan to designate not more than three energy innovation zones to spur the development of fuel cells, fuel cell components, hydrogen infrastructure, and other energy efficiency and renewable energy technologies in the state. In developing the criteria for the designations, the commissioner shall consider:


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(1) the availability of business, academic, and government partners;

 

(2) the likelihood of establishing a distributed, renewable energy microgrid to power the zone, providing below-market electricity and heat to businesses, or greater reliability than is available from the grid, from within the zone;

 

(3) the prospect of tenants for the zone that will represent net new jobs to the state; and

 

(4) the likelihood of the production, storage, distribution, and use of hydrogen, including its use in fuel cells, for electricity and heat.

 

(b) Energy under paragraph (a), clause (2), must come from one or more of the following renewable sources: wind, water, sun, biomass, not including municipal solid waste, or hydrogen reformed from natural gas up to 2010.

 

(c) The plan must allow for interested parties to form energy innovation cooperatives. In addition, the commissioner shall consider the feasibility of the sale of energy innovation bonds for the construction of qualifying facilities.

 

(d) In drafting the plan, the commissioner shall consider incentives for investment in the zone, including:

 

(1) subsidization of construction of qualifying facilities;

 

(2) long-term contracts for market-rate heat and power;

 

(3) exemption from laws giving exclusive service territory;

 

(4) streamlined interconnection to the existing power grid;

 

(5) exemptions from property tax;

 

(6) expedited permitting;

 

(7) methods for providing technical assistance; and

 

(8) other methods of encouraging the development and use and development of fuel cell and hydrogen-generation technologies.

 

(e) The commissioner shall report to the legislature by January 15, 2004, on legislative changes and necessary funding to accomplish the purposes of this subdivision."

 

Page 15, line 10, delete "14" and insert "12" and delete "15" and insert "13"

 

Page 15, line 11, delete everything after the period

 

Page 15, delete line 12

 

Renumber the sections in sequence

 

Amend the title as follows:

 

Page 1, line 6, delete everything after the semicolon


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Page 1, delete lines 7 and 8

 

Page 1, line 9, delete everything before "amending" and insert "providing for energy innovation zones;"

 

Page 1, line 12, delete everything after the semicolon

 

Page 1, line 13, delete everything before "proposing"

 

 

With the recommendation that when so amended the bill pass.

 

The report was adopted.

 

 

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

 

H. F. No. 961, A bill for an act relating to human services; establishing hearing procedures; proposing coding for new law in Minnesota Statutes, chapter 256.

 

Reported the same back with the following amendments:

 

Delete everything after the enacting clause and insert:

 

"Section 1. [256.0451] [HEARING PROCEDURES.]

 

Subdivision 1. [SCOPE.] The requirements in this section apply to all fair hearings and appeals under section 256.045, subdivision 3, paragraph (a), clauses (1), (2), (3), (5), (6), and (7). Except as provided in subdivisions 3 and 19, the requirements under this section apply to fair hearings and appeals under section 256.045, subdivision 3, paragraph (a), clauses (4), (8), and (9).

 

The term "person" is used in this section to mean an individual who, on behalf of themselves or their household, is appealing or disputing or challenging an action, a decision, or a failure to act, by an agency in the human services system. When a person involved in a proceeding under this section is represented by an attorney or by an authorized representative, the term "person" also refers to the person's attorney or authorized representative. Any notice sent to the person involved in the hearing must also be sent to the person's attorney or authorized representative.

 

The term "agency" includes the county human services agency, the state human services agency, and, where applicable, any entity involved under a contract, subcontract, grant, or subgrant with the state agency or with a county agency, that provides or operates programs or services in which appeals are governed by section 256.045.

 

Subd. 2. [ACCESS TO FILES.] A person involved in a fair hearing appeal has the right of access to the person's complete case files and to examine all private welfare data on the person which has been generated, collected, stored, or disseminated by the agency. A person involved in a fair hearing appeal has the right to a free copy of all documents in the case file involved in a fair hearing appeal. "Case file" means the information, documents, and data, in whatever form, which have been generated, collected, stored, or disseminated by the agency in connection with the person and the program or service involved.

 

Subd. 3. [AGENCY APPEAL SUMMARY.] (a) Except in fair hearings and appeals under section 256.045, subdivision 3, paragraph (a), clauses (4), (8), and (9), the agency involved in an appeal must prepare a state agency appeal summary for each fair hearing appeal. The state agency appeal summary shall be mailed or otherwise


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delivered to the person who is involved in the appeal at least five working days before the date of the hearing. The state agency appeal summary must also be mailed or otherwise delivered to the department's appeals office at least five working days before the date of the fair hearing appeal.

 

(b) In addition, the appeals referee shall confirm that the state agency appeal summary is mailed or otherwise delivered to the person involved in the appeal as required under paragraph (a). The person involved in the fair hearing should be provided, through the state agency appeal summary or other reasonable methods, appropriate information about the procedures for the fair hearing and an adequate opportunity to prepare. These requirements apply equally to the state agency or an entity under contract when involved in the appeal.

 

(c) The contents of the state agency appeal summary must be adequate to support the factual and legal basis for the agency's action or determination.

 

Subd. 4. [ENFORCING ACCESS TO FILES.] A person involved in a fair hearing appeal may enforce the right of access to data and copies of the case file by making a request to the appeals referee. The appeals referee will make an appropriate order enforcing the person's rights under the Minnesota Government Data Practices Act, including but not limited to, ordering access to files, data, and documents; continuing a hearing to allow adequate time for access to data; or prohibiting use by the agency of files, data, or documents which have been generated, collected, stored, or disseminated without compliance with the Minnesota Government Data Practices Act and which have not been provided to the person involved in the appeal.

 

Subd. 5. [PREHEARING CONFERENCES.] (a) The appeals referee prior to a fair hearing appeal may hold a prehearing conference to further the interests of justice or efficiency and must include the person involved in the appeal. A person involved in a fair hearing appeal or the agency may request a prehearing conference. The prehearing conference may be conducted by telephone, in person, or in writing. The prehearing conference may address the following:

 

(1) disputes regarding access to files, evidence, subpoenas, or testimony;

 

(2) the time required for the hearing or any need for expedited procedures or decision;

 

(3) identification or clarification of legal or other issues that may arise at the hearing;

 

(4) identification of and possible agreement to factual issues; and

 

(5) scheduling and any other matter which will aid in the proper and fair functioning of the hearing.

 

(b) The appeals referee shall make a record or otherwise contemporaneously summarize the prehearing conference in writing, which shall be sent to both the person involved in the hearing, the person's attorney or authorized representative, and the agency.

 

Subd. 6. [APPEAL REQUEST FOR EMERGENCY ASSISTANCE OR URGENT MATTER.] (a) When an appeal involves an application for emergency assistance, the agency involved shall mail or otherwise deliver the state agency appeal summary to the department's appeals office within two working days of receiving the request for an appeal. A person may also request that a fair hearing be held on an emergency basis when the issue requires an immediate resolution. The appeals referee shall schedule the fair hearing on the earliest available date according to the urgency of the issue involved. Issuance of the recommended decision after an emergency hearing shall be expedited.


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(b) The commissioner shall issue a written decision within five working days of receiving the recommended decision, shall immediately inform the parties of the outcome by telephone, and shall mail the decision no later than two working days following the date of the decision.

 

Subd. 7. [CONTINUANCE; RESCHEDULING, OR ADJOURNING A HEARING.] (a) A person involved in a fair hearing, or the agency, may request a continuance, a rescheduling, or an adjournment of a hearing for a reasonable period of time. The grounds for granting a request for a continuance, a rescheduling, or adjournment of a hearing include, but are not limited to, the following:

 

(1) to reasonably accommodate the appearance of a witness;

 

(2) to implement the person's rights regarding choice of representative at the hearing;

 

(3) to ensure that the person has adequate opportunity for preparation and for presentation of evidence and argument;

 

(4) to ensure that the person or the agency has adequate opportunity to review, evaluate, and respond to new evidence, or where appropriate, to require that the person or agency review, evaluate, and respond to new evidence;

 

(5) to permit the person involved and the agency to negotiate toward resolution of some or all of the issues where both agree that additional time is needed;

 

(6) to permit the agency to reconsider a previous action or determination;

 

(7) to permit or to require the performance of actions not previously taken; and

 

(8) to provide additional time or to permit or require additional activity by the person or agency as the interests of fairness may require.

 

(b) Requests for continuances or for rescheduling may be made orally or in writing. The person or agency requesting the continuance or rescheduling must first make reasonable efforts to contact the other participants in the hearing or their representatives, and seek to obtain an agreement on the request. Requests for continuance or rescheduling should be made no later than three working days before the scheduled date of the hearing, unless there is a good cause as specified in subdivision 13. Granting a continuance or rescheduling may be conditioned upon a waiver by the requester of applicable time limits, but should not cause unreasonable delay.

 

Subd. 8. [SUBPOENAS.] A person involved in a fair hearing or the agency may request a subpoena for a witness, for evidence, or for both. A reasonable number of subpoenas shall be issued to require the attendance and the testimony of witnesses, and the production of evidence relating to any issue of fact in the appeal hearing. The request for a subpoena must show a need for the subpoena and the general relevance to the issues involved. The subpoena shall be issued in the name of the department, shall be served in any manner permitted by law, and shall be enforced in the same manner as in civil matters in court.

 

(c) An individual or entity served with a subpoena may petition the appeals referee in writing to vacate or modify a subpoena. The appeals referee shall resolve such a petition in a prehearing conference involving all parties and shall make a written decision. A subpoena may be vacated or modified if the appeals referee determines that the testimony or evidence sought does not relate with reasonable directness to the issues of the fair hearing appeal; that the subpoena is unreasonable, over broad, or oppressive; that the evidence sought is repetitious or cumulative; or that the subpoena has not been served reasonably in advance of the time when the appeal hearing will be held.


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Subd. 9. [NO EX PARTE CONTACT.] The appeals referee shall not have ex parte contact on substantive issues with the agency or with any participant or witness in a fair hearing appeal. No employee of the department or agency shall review, interfere with, change, or attempt to influence the recommended decision of the appeals referee in any fair hearing appeal, except through the procedure allowed in subdivision 18. The limitations in this subdivision do not affect the commissioner's authority to review or reconsider decisions or make final decisions.

 

Subd. 10. [TELEPHONE OR FACE-TO-FACE HEARING.] A fair hearing appeal may be conducted by telephone, by other electronic media, or by an in-person, face-to-face hearing. At the request of the person involved in a fair hearing appeal or their representative, a face-to-face hearing shall be conducted with all participants personally present before the appeals referee.

 

Subd. 11. [HEARING FACILITIES AND EQUIPMENT.] The appeals referee shall conduct the hearing in the county where the person involved resides, unless an alternate location is mutually agreed upon before the hearing, or unless the person has agreed to a hearing by telephone. The hearing room shall be of sufficient size and layout to adequately accommodate both the number of individuals participating in the hearing and any identified special needs of any individual participating in the hearing. The appeals referee shall ensure that all communication and recording equipment that is necessary to conduct the hearing and to create an adequate record is present and functioning properly. If any necessary communication or recording equipment fails or ceases to operate effectively, the appeals referee shall take any steps necessary, including stopping or adjourning the hearing, until the necessary equipment is present and functioning properly. All reasonable efforts shall be undertaken to prevent and avoid any delay in the hearing process caused by defective communication or recording equipment.

 

Subd. 12. [INTERPRETER AND TRANSLATION SERVICES.] The appeals referee has a duty to inquire and to determine whether any participant in the hearing needs the services of an interpreter or translator in order to participate in or to understand the hearing process. Necessary interpreter or translation services must be provided at no charge to the person involved in the hearing. If it appears that interpreter or translation services are needed but are not available for the scheduled hearing, the appeals referee shall continue or postpone the hearing until appropriate services can be provided.

 

Subd. 13. [FAILURE TO APPEAR; GOOD CAUSE.] If a person involved in a fair hearing appeal fails to appear at the hearing, the appeals referee may dismiss the appeal. The person may reopen the appeal if within ten working days the person submits information to the appeals referee to show good cause for not appearing. Good cause can be shown when there is:

 

(1) a death or serious illness in the person's family;

 

(2) a personal injury or illness which reasonably prevents the person from attending the hearing;

 

(3) an emergency, crisis, or unforeseen event which reasonably prevents the person from attending the hearing;

 

(4) an obligation or responsibility of the person which a reasonable person, in the conduct of one's affairs, could reasonably determine takes precedence over attending the hearing;

 

(5) lack of or failure to receive timely notice of the hearing in the preferred language of the person involved in the hearing; and

 

(6) excusable neglect, excusable inadvertence, excusable mistake, or other good cause as determined by the appeals referee.


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Subd. 14. [COMMENCEMENT OF HEARING.] The appeals referee shall begin each hearing by describing the process to be followed in the hearing, including the swearing-in of witnesses, how testimony and evidence are presented, the order of examining and cross-examining witnesses, and the opportunity for an opening statement and a closing statement. The appeals referee shall identify for the participants the issues to be addressed at the hearing and shall explain to the participants the burden of proof which applies to the person involved and the agency. The appeals referee shall confirm, prior to proceeding with the hearing, that the state agency appeal summary, if required under subdivision 3, has been properly completed and provided to the person involved in the hearing, and that the person has been provided documents and an opportunity to review the case file, as provided in this section.

 

Subd. 15. [HEARING CONDUCT.] The appeals referee shall act in a fair and impartial manner at all times. At the beginning of the hearing the agency must designate one person as their representative who shall be responsible for presenting the agency's evidence and questioning any witnesses. The appeals referee shall make sure that the person and the agency are provided sufficient time to present testimony and evidence, to confront and cross-examine all adverse witnesses, and to make any relevant statement at the hearing. The appeals referee shall make reasonable efforts to explain the hearing process to persons who are not represented, and shall ensure that the hearing is conducted fairly and efficiently. Upon the reasonable request of the person or the agency involved, the appeals referee may direct witnesses to remain outside the hearing room, except during their individual testimony. The appeals referee shall not terminate the hearing before affording the person and the agency a complete opportunity to submit all admissible evidence, and reasonable opportunity for oral or written statement. When a hearing extends beyond the time which was anticipated, the hearing shall be rescheduled or continued from day-to-day until completion. Hearings that have been continued shall be timely scheduled to minimize delay in the disposition of the appeal.

 

Subd. 16. [SCOPE OF ISSUES ADDRESSED AT HEARING.] The hearing shall address the correctness and legality of the agency's action and shall not be limited simply to a review of the propriety of the agency's action. The person involved may raise and present evidence on all legal claims or defenses arising under state or federal law as a basis for appealing or disputing an agency action. The appeals referee may take official notice of adjudicative facts.

 

Subd. 17. [BURDEN OF PERSUASION.] The burden of persuasion is governed by specific state or federal law and regulations that apply to the subject of the hearing. If there is no specific law, then the participant in the hearing who asserts the truth of a claim is under the burden to persuade the appeals referee that the claim is true.

 

Subd. 18. [INVITING COMMENT BY DEPARTMENT.] The appeals referee or the commissioner may determine that a written comment by the department about the policy implications of a specific legal issue could help resolve a pending appeal. Such a written policy comment from the department shall be obtained only by a written request that is also sent to the person involved and to the agency or its representative. When such a written comment is received, both the person involved in the hearing and the agency shall have adequate opportunity to review, evaluate, and respond to the written comment, including submission of additional testimony or evidence, and cross-examination concerning the written comment.

 

Subd. 19. [DEVELOPING THE RECORD.] The appeals referee shall accept all evidence, except evidence privileged by law, that is commonly accepted by reasonable people in the conduct of their affairs as having probative value on the issues to be addressed at the hearing. Except in fair hearings and appeals under section 256.045, subdivision 3, paragraph (a), clauses (4), (8), and (9), in cases involving medical issues such as a diagnosis, a physician's report, or a review team's decision, the appeals referee shall consider whether it is necessary to have a medical assessment other than that of the individual making the original decision. When necessary, the appeals referee shall require an additional assessment be obtained at agency expense and made part of the hearing record. The appeals referee shall ensure for all cases that the record is sufficiently complete to make a fair and accurate decision.


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Subd. 20. [UNREPRESENTED PERSONS.] In cases involving unrepresented persons, the appeals referee shall take appropriate steps to identify, obtain, and present in the hearing relevant facts necessary for making an informed and fair decision. These steps may include, but are not limited to, asking questions of witnesses, and referring the person to a legal services office. An unrepresented person shall be provided an adequate opportunity to respond to testimony or other evidence presented by the agency at the hearing. The appeals referee shall ensure that an unrepresented person has a full and reasonable opportunity at the hearing to establish a record for appeal.

 

Subd. 21. [CLOSING OF RECORD.] The agency must present its evidence prior to or at the hearing. The agency shall not be permitted to submit evidence after the hearing except by agreement at the hearing between the person involved, the agency, and the appeals referee. If evidence is submitted after the hearing, based on such an agreement, the person involved must be allowed sufficient opportunity to respond to the evidence. When necessary, the record shall remain open to permit a person to submit additional evidence on the issues presented at the hearing.

 

Subd. 22. [DECISIONS.] A timely, written decision must be issued in every appeal. Each decision must contain a clear ruling on the issues presented in the appeal hearing, and should contain a ruling only on questions directly presented by the appeal and the arguments raised in the appeal.

 

(a) A written decision must be issued within 90 days of the date the person involved requested the appeal unless a shorter time is required by law. An additional 30 days is provided in those cases where the commissioner refuses to accept the recommended decision.

 

(b) The decision must contain both findings of fact and conclusions of law, clearly separated and identified. The findings of fact must be based on the entire record. Each finding of fact made by the appeals referee shall be supported by a preponderance of the evidence unless a different standard is required under the regulations of a particular program. The "preponderance of the evidence" means, in light of the record as a whole, the evidence leads the appeals referee to believe that the finding of fact is more likely to be true than not true. The legal claims or arguments of a participant do not constitute either a finding of fact or a conclusion of law, except to the extent the appeals referee adopts an argument as a finding of fact or conclusion of law.

 

The decision shall contain at least the following:

 

(1) a listing of the date and place of the hearing and the participants at the hearing;

 

(2) a clear and precise statement of the issues, including the dispute under consideration and the specific points which must be resolved in order to decide the case;

 

(3) a listing of the material, including exhibits, records, reports, placed into evidence at the hearing, and upon which the hearing decision is based;

 

(4) the findings of fact based upon the entire hearing record. The findings of fact must be adequate to inform the participants and any interested person in the public of the basis of the decision. If the evidence is in conflict on an issue which must be resolved, the findings of fact must state the reasoning used in resolving the conflict;

 

(5) conclusions of law that address the legal authority for the hearing and the ruling, and which give appropriate attention to the claims of the participants to the hearing;

 

(6) a clear and precise statement of the decision made resolving the dispute under consideration in the hearing; and

 

(7) written notice of the right to appeal to district court or to request reconsideration, and of the actions required and the time limits for taking appropriate action to appeal to district court or to request a reconsideration.


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(c) The appeals referee shall not independently investigate facts or otherwise rely on information not presented at the hearing. The appeals referee may not contact other agency personnel, except as provided in subdivision 18. The appeals referee's recommended decision must be based exclusively on the testimony and evidence presented at the hearing, and legal arguments presented, and the appeals referee's research and knowledge of the law.

 

(d) The commissioner will review the recommended decision and accept or refuse to accept the decision according to section 256.045, subdivision 5.

 

Subd. 23. [REFUSAL TO ACCEPT RECOMMENDED ORDERS.] (a) If the commissioner refuses to accept the recommended order from the appeals referee, the person involved, the person's attorney or authorized representative, and the agency shall be sent a copy of the recommended order, a detailed explanation of the basis for refusing to accept the recommended order, and the proposed modified order.

 

(b) The person involved and the agency shall have at least ten business days to respond to the proposed modification of the recommended order. The person involved and the agency may submit a legal argument concerning the proposed modification, and may propose to submit additional evidence that relates to the proposed modified order.

 

Subd. 24. [RECONSIDERATION.] Reconsideration may be requested within 30 days of the date of the commissioner's final order. If reconsideration is requested, the other participants in the appeal shall be informed of the request. The person seeking reconsideration has the burden to demonstrate why the matter should be reconsidered. The request for reconsideration may include legal argument. A person may include proposed additional evidence supporting the request. The other participants shall be sent a copy of all material submitted in support of the request for reconsideration and must be given ten days to respond.

 

(a) When the requesting party raises a question as to the appropriateness of the findings of fact, the commissioner shall review the entire record.

 

(b) When the requesting party questions the appropriateness of a conclusion of law, the commissioner shall consider the recommended decision, the decision under reconsideration, and the material submitted in connection with the reconsideration. The commissioner shall review the remaining record as necessary to issue a reconsidered decision.

 

(c) The commissioner shall issue a written decision on reconsideration in a timely fashion. The decision must clearly inform the parties that this constitutes the final administrative decision, advise the participants of the right to seek judicial review, and the deadline for doing so.

 

Subd. 25. [ACCESS TO APPEAL DECISIONS.] Appeal decisions must be maintained in a manner so that the public has ready access to previous decisions on particular topics, subject to appropriate procedures for safeguarding names, personal identifying information, and other private data on the individual persons involved in the appeal."

 

 

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

 

The report was adopted.


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Westrom from the Committee on Regulated Industries to which was referred:

 

H. F. No. 964, A bill for an act relating to energy; establishing permanent pilot program for promoting cleaner, innovative energy sources and strategic economic development; providing financial and regulatory incentives, including tax exemptions and eminent domain power; authorizing customers to purchase power supply services from pilot projects.

 

Reported the same back with the following amendments:

 

Delete everything after the enacting clause and insert:

 

"Section 1. Minnesota Statutes 2002, section 216B.2422, is amended by adding a subdivision to read:

 

Subd. 7. [CONSIDERATION OF POWER SUPPLY OPTION.] (a) Prior to the approval of any arrangement to build or expand a fossil-fuel-fired generation facility, or enter into an agreement to purchase capacity or energy from such a facility for a term exceeding five years, the commission shall ensure that a supply proposal from an eligible project is considered, and shall take any action with respect to such supply proposal that it deems to be in the best interests of ratepayers. This provision applies to any entity subject to the resource planning requirements of this section, and whose most recent resource plan demonstrates a need for new generation capacity or energy resources.

 

(b) For the purposes of this section, the term "eligible project" means an energy generation facility:

 

(1) that makes use of an innovative generation technology utilizing coal as a primary fuel in a highly efficient combined-cycle configuration with significantly reduced sulfur dioxide, nitrogen oxide, particulate, and mercury emissions from those of traditional technologies;

 

(2) that the project developer or owner certifies is a project capable of offering a long-term supply contract at a hedged, predictable cost; and

 

(3) that is designated by the commissioner of the iron range resources and rehabilitation agency as a project that is located in the tax relief area on a site that has substantial real property with adequate infrastructure to support new or expanded development.

 

(c) The technology utilized by an eligible project constitutes an "eligible energy technology" for the purposes of section 216B.1691.

 

Sec. 2. Minnesota Statutes 2002, section 216B.2422, is amended by adding a subdivision to read:

 

Subd. 8. [REGULATORY INCENTIVES.] An eligible project:

 

(1) is granted a certificate of need under section 216B.243 for the generation facilities and transmission infrastructure associated with the generation facilities, but are subject to all applicable environmental review and permitting procedures of sections 116C.51 to 116C.69;

 

(2) once permitted and constructed, is eligible to increase the capacity of the associated transmission facilities without additional state review upon filing notice with the public utilities commission; and

 

(3) has the power of eminent domain, limited to the sites and routes approved by the environmental quality board for the project facilities.


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Sec. 3. Minnesota Statutes 2002, section 216B.2424, subdivision 5, is amended to read:

 

Subd. 5. [MANDATE.] (a) A public utility, as defined in section 216B.02, subdivision 4, that operates a nuclear-powered electric generating plant within this state must construct and operate, purchase, or contract to construct and operate (1) by December 31, 1998, 50 megawatts of electric energy installed capacity generated by farm-grown closed-loop biomass scheduled to be operational by December 31, 2001; and (2) by December 31, 1998, an additional 75 megawatts of installed capacity so generated scheduled to be operational by December 31, 2002.

 

(b) Of the 125 megawatts of biomass electricity installed capacity required under this subdivision, no more than 50 megawatts of this capacity may be provided by a facility that uses poultry litter as its primary fuel source and any such facility:

 

(1) need not use biomass that complies with the definition in subdivision 1;

 

(2) must enter into a contract with the public utility for such capacity, that has an average purchase price per megawatt hour over the life of the contract that is equal to or less than the average purchase price per megawatt hour over the life of the contract in contracts approved by the public utilities commission before April 1, 2000, to satisfy the mandate of this section, and file that contract with the public utilities commission prior to September 1, 2000; and

 

(3) must schedule such capacity to be operational by December 31, 2002.

 

(c) Of the total 125 megawatts of biomass electric energy installed capacity required under this section, no more than 75 megawatts may be provided by a single project.

 

(d) Of the 75 megawatts of biomass electric energy installed capacity required under paragraph (a), clause (2), no more than 25 megawatts of this capacity may be provided by a St. Paul district heating and cooling system cogeneration facility utilizing waste wood as a primary fuel source. The St. Paul district heating and cooling system cogeneration facility need not use biomass that complies with the definition in subdivision 1.

 

(e) The public utility must accept and consider on an equal basis with other biomass proposals:

 

(1) a proposal to satisfy the requirements of this section that includes a project that exceeds the megawatt capacity requirements of either paragraph (a), clause (1) or (2), and that proposes to sell the excess capacity to the public utility or to other purchasers; and

 

(2) a proposal for a new facility to satisfy more than ten but not more than 20 megawatts of the electrical generation requirements by a small business-sponsored independent power producer facility to be located within the northern quarter of the state, which means the area located north of Constitutional Route No. 8 as described in section 161.114, subdivision 2, and that utilizes biomass residue wood, sawdust, bark, chipped wood, or brush to generate electricity. A facility described in this clause is not required to utilize biomass complying with the definition in subdivision 1, but must have the capacity required by this clause operational in construction by December 31, 2002 June 30, 2004.

 

(f) If a public utility files a contract with the commission for electric energy installed capacity that uses poultry litter as its primary fuel source, the commission must do a preliminary review of the contract to determine if it meets the purchase price criteria provided in paragraph (b), clause (2), of this subdivision. The commission shall perform its review and advise the parties of its determination within 30 days of filing of such a contract by a public utility. A public utility may submit by September 1, 2000, a revised contract to address the commission's preliminary determination.


Journal of the House - 34th Day - Monday, April 7, 2003 - Top of Page 1281

(g) The commission shall finally approve, modify, or disapprove no later than July 1, 2001, all contracts submitted by a public utility as of September 1, 2000, to meet the mandate set forth in this subdivision.

 

(h) If a public utility subject to this section exercises an option to increase the generating capacity of a project in a contract approved by the commission prior to April 25, 2000, to satisfy the mandate in this subdivision, the public utility must notify the commission by September 1, 2000, that it has exercised the option and include in the notice the amount of additional megawatts to be generated under the option exercised. Any review by the commission of the project after exercise of such an option shall be based on the same criteria used to review the existing contract.

 

(i) A facility specified in this subdivision qualifies for exemption from property taxation under section 272.02, subdivision 43."

 

Delete the title and insert:

 

"A bill for an act relating to energy; promoting and providing incentives for the use of innovative generation technology by utilities; amending Minnesota Statutes 2002, sections 216B.2422, by adding subdivisions; 216B.2424, subdivision 5."

 

 

With the recommendation that when so amended the bill pass.

 

The report was adopted.

 

 

Holberg from the Committee on Civil Law to which was referred:

 

H. F. No. 971, A bill for an act relating to insurance; prohibiting certain insurers from transacting business in the state; proposing coding for new law in Minnesota Statutes, chapter 60A.

 

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

 

The report was adopted.

 

 

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

 

H. F. No. 975, A bill for an act relating to public employees; transferring responsibilities relating to local government pay equity to the state auditor; authorizing the state auditor to adopt rules and collect a fee; amending Minnesota Statutes 2002, sections 471.999; 477A.014, subdivision 4; proposing coding for new law in Minnesota Statutes, chapter 6; repealing Minnesota Statutes 2002, section 43A.04, subdivision 10.

 

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

 

The report was adopted.


Journal of the House - 34th Day - Monday, April 7, 2003 - Top of Page 1282

Holberg from the Committee on Civil Law to which was referred:

 

H. F. No. 996, A bill for an act relating to insurance; changing no-fault arbitration provisions; amending Minnesota Statutes 2002, section 65B.525.

 

Reported the same back with the following amendments:

 

Page 2, line 10, delete "is" and insert "are"

 

 

With the recommendation that when so amended the bill pass.

 

The report was adopted.

 

 

Rhodes from the Committee on Governmental Operations and Veterans Affairs Policy to which was referred:

 

H. F. No. 999, A bill for an act relating to higher education; adding students to the regent advisory council; amending Minnesota Statutes 2002, section 137.0245, subdivision 2.

 

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

 

The report was adopted.

 

 

Holberg from the Committee on Civil Law to which was referred:

 

H. F. No. 1006, A bill for an act relating to elections; providing for conformity with the federal Help America Vote Act; creating a complaint process; imposing a penalty; amending Minnesota Statutes 2002, sections 201.021; 201.022; 201.061, subdivisions 1, 3, by adding subdivisions; 201.071, subdivisions 1, 3, by adding subdivisions; 201.091, subdivisions 1, 4, 5, by adding a subdivision; 201.121, subdivision 1; 201.13, subdivision 1; 201.15; 201.155; 201.161; 201.171; 201.221, subdivisions 2, 3; 203B.06, subdivision 4; 203B.08, subdivision 3; 203B.12, subdivision 2; 203B.16, by adding a subdivision; 203B.17; 203B.19; 203B.24, subdivision 2; 203B.26; 204B.47; 204C.10; 206.57, by adding subdivisions; 206.81; proposing coding for new law in Minnesota Statutes, chapters 200; 201; 204C.

 

Reported the same back with the following amendments:

 

Page 14, line 23, after "person" insert "in which the court order provides that the ward does not retain the right to vote"

 

 

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

 

The report was adopted.


Journal of the House - 34th Day - Monday, April 7, 2003 - Top of Page 1283

Erhardt from the Committee on Transportation Policy to which was referred:

 

H. F. No. 1007, A bill for an act relating to highways; requiring that highway 62 be treated as interstate system highway for purposes of municipal approval.

 

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

 

The report was adopted.

 

 

Rhodes from the Committee on Governmental Operations and Veterans Affairs Policy to which was referred:

 

H. F. No. 1024, A bill for an act relating to state government; modifying provisions relating to state contracting and state printing services; amending Minnesota Statutes 2002, sections 16A.11, subdivision 3; 16B.465, subdivision 7; 16B.47; 16B.48, subdivision 2; 16B.49; 16C.05, subdivision 2; 16C.08, subdivisions 2, 3, 4, by adding a subdivision; 16C.09; 16E.07, subdivision 9; 116J.8771; 136F.77, subdivision 3; 256B.435, subdivision 2a; 268.186; proposing coding for new law in Minnesota Statutes, chapter 16C; repealing Minnesota Statutes 2002, sections 12.221, subdivision 5; 16B.50; 16C.07; 43A.047.

 

Reported the same back with the following amendments:

 

Page 9, line 18, before the period, insert ", and evaluate the extent to which the contract was a cost-effective way to enable the agency to provide its services or products better or more efficiently"

 

 

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

 

The report was adopted.

 

 

Rhodes from the Committee on Governmental Operations and Veterans Affairs Policy to which was referred:

 

H. F. No. 1032, A bill for an act relating to operation of state government; establishing the Minnesota False Claims Act; assessing penalties; proposing coding for new law as Minnesota Statutes, chapter 12A.

 

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

 

The report was adopted.

 

 

Rhodes from the Committee on Governmental Operations and Veterans Affairs Policy to which was referred:

 

H. F. No. 1035, A bill for an act relating to public safety; modifying provisions relating to DWI breath-testing instruments; amending Minnesota Statutes 2002, sections 169A.03, subdivision 11; 169A.45, subdivision 4; 169A.51, subdivision 5; 169A.75; 360.0753, subdivision 4; 634.16.

 

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

 

The report was adopted.


Journal of the House - 34th Day - Monday, April 7, 2003 - Top of Page 1284

Davids from the Committee on Commerce, Jobs and Economic Development to which was referred:

 

H. F. No. 1039, A bill for an act relating to commerce; regulating financial institution examinations, applications, loans, and organizational provisions; revising the standard nonforfeiture law for individual deferred annuities; making various technical changes; repealing obsolete rules; amending Minnesota Statutes 2002, sections 46.04, subdivision 1; 46.041, subdivision 2; 47.015, by adding a subdivision; 47.101, subdivision 2; 47.59, subdivision 2; 48.08; 48.24, subdivision 6; 52.06, subdivision 1; 61A.245, subdivisions 3, 4, 5, 6, 12; 300.025; 300.23; 332.29, subdivision 1; repealing Minnesota Rules, parts 2675.0300; 2675.2250; 2675.6400.

 

Reported the same back with the following amendments:

 

Page 4, line 7, after "24" insert "or on December 31"

 

Page 5, after line 23, insert:

 

"Sec. 6. Minnesota Statutes 2002, section 47.67, is amended to read:

 

47.67 [ADVERTISING.]

 

No advertisement by a person which relates to an electronic financial terminal may be inaccurate or misleading with respect to such a terminal. Except with respect to direct mailings by financial institutions to their customers, the advertising of rate of interest paid on accounts in connection with electronic financial terminals is prohibited. Any advertisement, either on or off the site of an electronic financial terminal, promoting the use or identifying the location of an electronic financial terminal, which identifies any financial institution, group or combination of financial institutions, or third parties as owning or providing for the use of its services is prohibited. The following shall be expressly permitted:

 

(a) a simple directory listing placed at the site of an electronic financial terminal identifying the particular financial institutions using its services;

 

(b) the use of a generic name, either on or off the site of an electronic financial terminal, which does not promote or identify any particular financial institution, group or combination of financial institutions, or any third parties;

 

(c) media advertising or direct mailing of information by a financial institution or retailer identifying locations of electronic financial terminals and promoting their usage;

 

(d) any advertising, whether on or off the site, relating to electronic financial terminals, or the services performed at the electronic financial terminals located on the premises of the main office, or any office or detached facility of any financial institution;

 

(e) a coupon or other promotional advertising that is printed upon the reverse side of the receipt or record of each transaction required under section 47.69, subdivision 6; and

 

(f) promotional advertising displayed on the electronic screen."

 

Page 9, line 32, before "Notwithstanding" insert "(b)"

 

Page 14, line 6, after the period, insert "In this instance, the operative date of this act is the date elected for the contract form."

 

Page 14, line 8, before the period, insert ", which then becomes the operative date of the act"


Journal of the House - 34th Day - Monday, April 7, 2003 - Top of Page 1285

Page 14, after line 8, insert:

 

"Sec. 15. Minnesota Statutes 2002, section 118A.03, subdivision 2, is amended to read:

 

Subd. 2. [IN LIEU OF SURETY BOND.] The following are the allowable forms of collateral in lieu of a corporate surety bond:

 

(1) United States government treasury bills, treasury notes, treasury bonds;

 

(2) issues of United States government agencies and instrumentalities as quoted by a recognized industry quotation service available to the government entity;

 

(3) general obligation securities of any state or local government with taxing powers which is rated "A" or better by a national bond rating service, or revenue obligation securities of any state or local government with taxing powers which is rated "AA" or better by a national bond rating service;

 

(4) unrated general obligation securities of a local government with taxing powers may be pledged as collateral against funds deposited by that same local government entity;

 

(5) irrevocable standby letters of credit issued by Federal Home Loan Banks to a municipality accompanied by written evidence that the bank's public debt is rated "AA" or better by Moody's Investors Service, Inc., or Standard & Poor's Corporation; and

 

(5) (6) time deposits that are fully insured by the Federal Deposit Insurance Corporation.

 

Sec. 16. Minnesota Statutes 2002, section 118A.03, subdivision 3, is amended to read:

 

Subd. 3. [AMOUNT.] The total amount of the collateral computed at its market value shall be at least ten percent more than the amount on deposit plus accrued interest at the close of the business day, except that where the collateral is irrevocable standby letters of credit issued by Federal Home Loan Banks, the amount of collateral shall be at least equal to the amount on deposit plus accrued interest at the close of the business day. The financial institution may furnish both a surety bond and collateral aggregating the required amount."

 

Page 14, line 32, delete "25" and insert "50"

 

Page 16, after line 8, insert:

 

"Sec. 21. [EFFECTIVE DATES.]

 

Sections 1 to 9, and 15 to 20 are effective the day following final enactment. Sections 10 to 14 are effective August 1, 2003, and apply to annuity contracts issued on or after that date."

 

Renumber the sections in sequence

 

Amend the title as follows:

 

Page 1, line 10, after the first semicolon, insert "47.67;"


Journal of the House - 34th Day - Monday, April 7, 2003 - Top of Page 1286

Page 1, line 11, after "12;" insert "118A.03, subdivisions 2, 3;"

 

 

With the recommendation that when so amended the bill pass.

 

The report was adopted.

 

 

Rhodes from the Committee on Governmental Operations and Veterans Affairs Policy to which was referred:

 

H. F. No. 1040, A bill for an act relating to public employment labor relations; defining health care nonprofessionals as "essential employees"; amending Minnesota Statutes 2002, section 179A.03, subdivision 7.

 

Reported the same back with the following amendments:

 

Page 1, line 17, after "nonprofessionals" insert "until June 30, 2005"

 

 

With the recommendation that when so amended the bill pass.

 

The report was adopted.

 

 

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

 

H. F. No. 1054, A bill for an act relating to environment; modifying requirements for solid waste plans; amending Minnesota Statutes 2002, section 115A.46, subdivision 1.

 

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

 

The report was adopted.

 

 

Gunther from the Committee on Jobs and Economic Development Finance to which was referred:

 

H. F. No. 1059, A bill for an act relating to housing; housing finance agency; making various clarifying, technical, and other changes to agency programs; increasing debt ceiling; extending civil service pilot project; amending Minnesota Statutes 2002, sections 462A.05, by adding a subdivision; 462A.057, subdivision 1; 462A.073, subdivision 2; 462A.22, subdivisions 1, 7; Laws 1993, chapter 301, section 1, subdivision 4, as amended; Laws 1995, chapter 248, article 12, section 2, as amended.

 

Reported the same back with the following amendments:

 

Page 2, line 17, after "than" insert "acquisition and"

 

Page 3, line 16, before the period, insert "or by a wastewater treatment system operated and maintained by a local unit of government"


Journal of the House - 34th Day - Monday, April 7, 2003 - Top of Page 1287

Page 3, after line 19, insert:

 

"Sec. 4. Minnesota Statutes 2002, section 462A.21, subdivision 3a, is amended to read:

 

Subd. 3a. [CAPACITY BUILDING REVOLVING LOAN FUND.] It may establish a revolving loan fund for predevelopment costs for nonprofit organizations and local government units engaged in the construction or rehabilitation of low- and moderate-income housing, and for the purposes specified in sections 462A.05, subdivision 5; and 462A.07, subdivisions 2, 3, 3a, 5, 5a, 6, 7, 11, and 16. The agency may delegate the authority to administer the revolving loan fund for designated areas in the state to existing nonprofit organizations. For purposes of the authority to administer the revolving loan fund under this subdivision, a nonprofit organization includes a private nonprofit corporation that is formed under laws other than the laws of this state, provided that the nonprofit corporation has an office located in this state. Nonprofit entities selected to exercise such delegated powers must have sufficient professional housing development expertise, as determined by the agency, to evaluate the economic feasibility of an applicant's proposed project. Loans to nonprofit organizations or local government units under this subdivision may be made with or without interest as determined by the agency."

 

Page 3, line 20, delete "4" and insert "5"

 

Page 3, line 28, delete "5" and insert "6"

 

Page 4, line 1, delete "6" and insert "7"

 

Page 4, line 26, delete "7" and insert "8"

 

Page 5, line 1, delete "8" and insert "9"

 

Page 5, line 2, delete "5 and 6" and insert "6 and 7"

 

Amend the title as follows:

 

Page 1, line 8, after "2;" insert "462A.21, subdivision 3a;"

 

 

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

 

The report was adopted.

 

 

Erhardt from the Committee on Transportation Policy to which was referred:

 

H. F. No. 1071, A bill for an act relating to traffic regulations; providing for speed limits of 65 miles per hour during daytime and 55 miles per hour during nighttime on paved two-lane highways; amending Minnesota Statutes 2002, sections 169.14, subdivision 2; 169.99, subdivision 1b; 171.12, subdivision 6.

 

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

 

The report was adopted.


Journal of the House - 34th Day - Monday, April 7, 2003 - Top of Page 1288

Sykora from the Committee on Education Policy to which was referred:

 

H. F. No. 1098, A bill for an act relating to governmental operations; prohibiting certain contracts between an executive branch agency and an agency of the federal government; proposing coding for new law in Minnesota Statutes, chapter 127A.

 

Reported the same back with the recommendation that the bill be re-referred to the Committee on Education Finance without further recommendation.

 

The report was adopted.

 

 

Haas from the Committee on State Government Finance to which was referred:

 

H. F. No. 1126, A bill for an act relating to state government; modifying provisions relating to shared technology systems funding; amending Minnesota Statutes 2002, section 16E.01, subdivision 3.

 

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

 

The report was adopted.

 

 

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

 

H. F. No. 1127, A bill for an act relating to human services; changing continuing care provisions; amending Minnesota Statutes 2002, sections 252.32, subdivisions 1, 1a, 3, 3c; 256B.0621, subdivision 4; 256B.0625, subdivision 19c; 256B.0627, subdivisions 1, 4, 9; 256B.0911, subdivision 4d; 256B.0915, by adding a subdivision; 256B.47, subdivision 2; repealing Minnesota Statutes 2002, section 252.32, subdivision 2.

 

Reported the same back with the following amendments:

 

Delete everything after the enacting clause and insert:

 

"ARTICLE 1

 

CONTINUING CARE

 

Section 1. Minnesota Statutes 2002, section 174.30, subdivision 1, is amended to read:

 

Subdivision 1. [APPLICABILITY.] (a) The operating standards for special transportation service adopted under this section do not apply to special transportation provided by:

 

(1) a common carrier operating on fixed routes and schedules;

 

(2) a volunteer driver using a private automobile;

 

(3) a school bus as defined in section 169.01, subdivision 6; or

 

(4) an emergency ambulance regulated under chapter 144.


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(b) The operating standards adopted under this section only apply to providers of special transportation service who receive grants or other financial assistance from either the state or the federal government, or both, to provide or assist in providing that service; except that the operating standards adopted under this section do not apply to any nursing home licensed under section 144A.02, to any board and care facility licensed under section 144.50, or to any day training and habilitation services, day care, or group home facility licensed under sections 245A.01 to 245A.19 unless the facility or program provides transportation to nonresidents on a regular basis and the facility receives reimbursement, other than per diem payments, for that service under rules promulgated by the commissioner of human services.

 

(c) Notwithstanding paragraph (b), the operating standards adopted under this section do not apply to any vendor of services licensed under chapter 245B that provides transportation services to consumers or residents of other vendors licensed under chapter 245B.

 

Sec. 2. Minnesota Statutes 2002, section 245B.07, subdivision 11, is amended to read:

 

Subd. 11. [TRAVEL TIME TO AND FROM A DAY TRAINING AND HABILITATION SITE.] Except in unusual circumstances, the license holder must not transport a consumer receiving services for longer than one hour 90 minutes per one-way trip.

 

Sec. 3. Minnesota Statutes 2002, section 252.27, subdivision 2a, is amended to read:

 

Subd. 2a. [CONTRIBUTION AMOUNT; PARENTAL COINSURANCE PAYMENTS.] (a) The natural or adoptive parents of a minor child, including a child determined eligible for medical assistance without consideration of parental income, must contribute monthly to the cost of services through parental coinsurance payments or a fixed monthly contribution, unless the child is married or has been married, parental rights have been terminated, or the child's adoption is subsidized according to section 259.67 or through title IV-E of the Social Security Act. Parental coinsurance payments are set at a percentage that is equal to the ratio between the parental contribution calculated under paragraph (b) and the projected cost of services under the child's care plan. Parental coinsurance payments apply each time a service is accessed, subject to a monthly coinsurance limit equal to the monthly parental contribution calculated under paragraph (b). Households that meet the criteria in paragraph (b), clause (1), are exempt from parental coinsurance payments and instead pay the fixed monthly contribution specified in that provision.

 

(b) For households with adjusted gross income equal to or greater than 100 percent of federal poverty guidelines, the parental contribution or fixed monthly contribution shall be the greater of a minimum monthly fee of $25 for households with adjusted gross income of $30,000 and over, or an amount to be computed by applying the following schedule of rates to the adjusted gross income of the natural or adoptive parents that exceeds 150 percent of the federal poverty guidelines for the applicable household size, the following schedule of rates:

 

(1) on the amount of adjusted gross income over 150 percent of poverty, but not over $50,000, ten percent if the adjusted gross income is equal to or greater than 100 percent of federal poverty guidelines and less than 175 percent of federal poverty guidelines, the fixed monthly contribution is $4 per month;

 

(2) on if the amount of adjusted gross income over 150 percent of poverty and over $50,000 but not over $60,000, 12 percent is equal to or greater than 175 percent of federal poverty guidelines and less than or equal to 375 percent of federal poverty guidelines, the parental contribution shall be determined using a sliding fee scale established by the commissioner of human services which begins at one percent of adjusted gross income at 175 percent of federal poverty guidelines and increases to 7.5 percent of adjusted gross income for those with adjusted gross income up to 375 percent of federal poverty guidelines;


Journal of the House - 34th Day - Monday, April 7, 2003 - Top of Page 1290

(3) on if the amount of adjusted gross income over 150 is greater than 375 percent of federal poverty, and over $60,000 but not over $75,000, 14 percent guidelines and less than 675 percent of federal poverty guidelines, the parental contribution shall be 7.5 percent of adjusted gross income; and

 

(4) on all if the adjusted gross income amounts over 150 is equal to or greater than 675 percent of federal poverty, and over $75,000, 15 percent guidelines and less than 975 percent of federal poverty guidelines, the parental contribution shall be ten percent of adjusted gross income; and

 

(5) if the adjusted gross income is equal to or greater than 975 percent of federal poverty guidelines, the parental contribution shall be 12.5 percent of adjusted gross income.

 

If the child lives with the parent, the parental contribution annual adjusted gross income is reduced by $200, except that the parent must pay the minimum monthly $25 fee under this paragraph $2,400 prior to calculating the parental contribution. If the child resides in an institution specified in section 256B.35, the parent is responsible for the personal needs allowance specified under that section in addition to the parental contribution determined under this section. The parental contribution is reduced by any amount required to be paid directly to the child pursuant to a court order, but only if actually paid.

 

(c) The household size to be used in determining the amount of contribution under paragraph (b) includes natural and adoptive parents and their dependents under age 21, including the child receiving services. Adjustments in the contribution amount due to annual changes in the federal poverty guidelines shall be implemented on the first day of July following publication of the changes.

 

(d) For purposes of paragraph (b), "income" means the adjusted gross income of the natural or adoptive parents determined according to the previous year's federal tax form.

 

(e) The contribution shall be explained in writing to the parents at the time eligibility for services is being determined. The contribution shall be made on a monthly basis effective with the first month in which the child receives services. Annually upon redetermination or at termination of eligibility, if the contribution exceeded the cost of services provided, the local agency or the state shall reimburse that excess amount to the parents, either by direct reimbursement if the parent is no longer required to pay a contribution, or by a reduction in or waiver of parental fees until the excess amount is exhausted.

 

(f) The monthly contribution amount must be reviewed at least every 12 months; when there is a change in household size; and when there is a loss of or gain in income from one month to another in excess of ten percent. The local agency shall mail a written notice 30 days in advance of the effective date of a change in the contribution amount. A decrease in the contribution amount is effective in the month that the parent verifies a reduction in income or change in household size.

 

(g) Parents of a minor child who do not live with each other shall each pay the contribution required under paragraph (a), except that a. An amount equal to the annual court-ordered child support payment actually paid on behalf of the child receiving services shall be deducted from the contribution adjusted gross income of the parent making the payment prior to calculating the parental contribution under paragraph (b).

 

(h) The contribution under paragraph (b) shall be increased by an additional five percent if the local agency determines that insurance coverage is available but not obtained for the child. For purposes of this section, "available" means the insurance is a benefit of employment for a family member at an annual cost of no more than five percent of the family's annual income. For purposes of this section, "insurance" means health and accident insurance coverage, enrollment in a nonprofit health service plan, health maintenance organization, self-insured plan, or preferred provider organization.


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Parents who have more than one child receiving services shall not be required to pay more than the amount for the child with the highest expenditures. There shall be no resource contribution from the parents. The parent shall not be required to pay a contribution in excess of the cost of the services provided to the child, not counting payments made to school districts for education-related services. Notice of an increase in fee payment must be given at least 30 days before the increased fee is due.

 

(i) The contribution under paragraph (b) shall be reduced by $300 per fiscal year if, in the 12 months prior to July 1:

 

(1) the parent applied for insurance for the child;

 

(2) the insurer denied insurance;

 

(3) the parents submitted a complaint or appeal, in writing to the insurer, submitted a complaint or appeal, in writing, to the commissioner of health or the commissioner of commerce, or litigated the complaint or appeal; and

 

(4) as a result of the dispute, the insurer reversed its decision and granted insurance.

 

For purposes of this section, "insurance" has the meaning given in paragraph (h).

 

A parent who has requested a reduction in the contribution amount under this paragraph shall submit proof in the form and manner prescribed by the commissioner or county agency, including, but not limited to, the insurer's denial of insurance, the written letter or complaint of the parents, court documents, and the written response of the insurer approving insurance. The determinations of the commissioner or county agency under this paragraph are not rules subject to chapter 14.

 

[EFFECTIVE DATE.] This section is effective July 1, 2004.

 

Sec. 4. Minnesota Statutes 2002, section 252.32, subdivision 1, is amended to read:

 

Subdivision 1. [PROGRAM ESTABLISHED.] In accordance with state policy established in section 256F.01 that all children are entitled to live in families that offer safe, nurturing, permanent relationships, and that public services be directed toward preventing the unnecessary separation of children from their families, and because many families who have children with mental retardation or related conditions disabilities have special needs and expenses that other families do not have, the commissioner of human services shall establish a program to assist families who have dependents dependent children with mental retardation or related conditions disabilities living in their home. The program shall make support grants available to the families.

 

Sec. 5. Minnesota Statutes 2002, section 252.32, subdivision 1a, is amended to read:

 

Subd. 1a. [SUPPORT GRANTS.] (a) Provision of support grants must be limited to families who require support and whose dependents are under the age of 22 21 and who have mental retardation or who have a related condition and who have been determined by a screening team established certified disabled under Minnesota Statutes, section 256B.092 to be at risk of institutionalization 256B.055, subdivision 12, paragraphs (a), (b), (c), (d), and (e). Families who are receiving home and community-based waivered services for persons with mental retardation or related conditions under United States Code, title 42, section 1396n(c), are not eligible for support grants.


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Families receiving grants who will be receiving home and community-based waiver services for persons with mental retardation or a related condition for their family member within the grant year, and who have ongoing payments for environmental or vehicle modifications which have been approved by the county as a grant expense and would have qualified for payment under this waiver may receive a onetime grant payment from the commissioner to reduce or eliminate the principal of the remaining debt for the modifications, not to exceed the maximum amount allowable for the remaining years of eligibility for a family support grant. The commissioner is authorized to use up to $20,000 annually from the grant appropriation for this purpose. Any amount unexpended at the end of the grant year shall be allocated by the commissioner in accordance with subdivision 3a, paragraph (b), clause (2). Families whose annual adjusted gross income is $60,000 or more are not eligible for support grants except in cases where extreme hardship is demonstrated. Beginning in state fiscal year 1994, the commissioner shall adjust the income ceiling annually to reflect the projected change in the average value in the United States Department of Labor Bureau of Labor Statistics consumer price index (all urban) for that year.

 

(b) Support grants may be made available as monthly subsidy grants and lump sum grants.

 

(c) Support grants may be issued in the form of cash, voucher, and direct county payment to a vendor.

 

(d) Applications for the support grant shall be made by the legal guardian to the county social service agency. The application shall specify the needs of the families, the form of the grant requested by the families, and that the families have agreed to use the support grant for items and services within the designated reimbursable expense categories and recommendations of the county to be reimbursed.

 

(e) Families who were receiving subsidies on the date of implementation of the $60,000 income limit in paragraph (a) continue to be eligible for a family support grant until December 31, 1991, if all other eligibility criteria are met. After December 31, 1991, these families are eligible for a grant in the amount of one-half the grant they would otherwise receive, for as long as they remain eligible under other eligibility criteria. Families cannot concurrently receive the consumer support grant under section 256.476.

 

Sec. 6. Minnesota Statutes 2002, section 252.32, subdivision 3, is amended to read:

 

Subd. 3. [AMOUNT OF SUPPORT GRANT; USE.] Support grant amounts shall be determined by the county social service agency. Each service Services and item items purchased with a support grant must:

 

(1) be over and above the normal costs of caring for the dependent if the dependent did not have a disability;

 

(2) be directly attributable to the dependent's disabling condition; and

 

(3) enable the family to delay or prevent the out-of-home placement of the dependent.

 

The design and delivery of services and items purchased under this section must suit the dependent's chronological age and be provided in the least restrictive environment possible, consistent with the needs identified in the individual service plan.

 

Items and services purchased with support grants must be those for which there are no other public or private funds available to the family. Fees assessed to parents for health or human services that are funded by federal, state, or county dollars are not reimbursable through this program.

 

In approving or denying applications, the county shall consider the following factors:

 

(1) the extent and areas of the functional limitations of the disabled child;


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(2) the degree of need in the home environment for additional support; and

 

(3) the potential effectiveness of the grant to maintain and support the person in the family environment.

 

The maximum monthly grant amount shall be $250 per eligible dependent, or $3,000 per eligible dependent per state fiscal year, within the limits of available funds. The county social service agency may consider the dependent's supplemental security income in determining the amount of the support grant. The county social service agency may exceed $3,000 per state fiscal year per eligible dependent for emergency circumstances in cases where exceptional resources of the family are required to meet the health, welfare-safety needs of the child.

 

County social service agencies shall continue to provide funds to families receiving state grants on June 30, 1997, if eligibility criteria continue to be met. Any adjustments to their monthly grant amount must be based on the needs of the family and funding availability.

 

Sec. 7. Minnesota Statutes 2002, section 252.32, subdivision 3c, is amended to read:

 

Subd. 3c. [COUNTY BOARD RESPONSIBILITIES.] County boards receiving funds under this section shall:

 

(1) determine the needs of families for services in accordance with section 256B.092 or 256E.08 and any rules adopted under those sections; submit a plan to the department for the management of the family support grant program. The plan must include the projected number of families the county will serve and policies and procedures for:

 

(i) identifying potential families for the program;

 

(ii) grant distribution;

 

(iii) waiting list procedures; and

 

(iv) prioritization of families to receive grants;

 

(2) determine the eligibility of all persons proposed for program participation;

 

(3) approve a plan for items and services to be reimbursed and inform families of the county's approval decision;

 

(4) issue support grants directly to, or on behalf of, eligible families;

 

(5) inform recipients of their right to appeal under subdivision 3e;

 

(6) submit quarterly financial reports under subdivision 3b and indicate on the screening documents the annual grant level for each family, the families denied grants, and the families eligible but waiting for funding; and

 

(7) coordinate services with other programs offered by the county.

 

Sec. 8. Minnesota Statutes 2002, section 252.41, subdivision 3, is amended to read:

 

Subd. 3. [DAY TRAINING AND HABILITATION SERVICES FOR ADULTS WITH MENTAL RETARDATION, RELATED CONDITIONS.] "Day training and habilitation services for adults with mental retardation and related conditions" means services that:


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(1) include supervision, training, assistance, and supported employment, work-related activities, or other community-integrated activities designed and implemented in accordance with the individual service and individual habilitation plans required under Minnesota Rules, parts 9525.0015 to 9525.0165, to help an adult reach and maintain the highest possible level of independence, productivity, and integration into the community; and

 

(2) are provided under contract with the county where the services are delivered by a vendor licensed under sections 245A.01 to 245A.16 and 252.28, subdivision 2, to provide day training and habilitation services; and

 

(3) are regularly provided to one or more adults with mental retardation or related conditions in a place other than the adult's own home or residence unless medically contraindicated.

 

Day training and habilitation services reimbursable under this section do not include special education and related services as defined in the Education of the Handicapped Act, United States Code, title 20, chapter 33, section 1401, clauses (6) and (17), or vocational services funded under section 110 of the Rehabilitation Act of 1973, United States Code, title 29, section 720, as amended.

 

Sec. 9. Minnesota Statutes 2002, section 252.46, subdivision 1, is amended to read:

 

Subdivision 1. [RATES.] (a) Payment rates to vendors, except regional centers, for county-funded day training and habilitation services and transportation provided to persons receiving day training and habilitation services established by a county board are governed by subdivisions 2 to 19. The commissioner shall approve the following three payment rates for services provided by a vendor:

 

(1) a full-day service rate for persons who receive at least six service hours a day, including the time it takes to transport the person to and from the service site;

 

(2) a partial-day service rate that must not exceed 75 percent of the full-day service rate for persons who receive less than a full day of service; and

 

(3) a transportation rate for providing, or arranging and paying for, transportation of a person to and from the person's residence to the service site.

 

(b) The commissioner may also approve an hourly job-coach, follow-along rate for services provided by one employee at or en route to or from community locations to supervise, support, and assist one person receiving the vendor's services to learn job-related skills necessary to obtain or retain employment when and where no other persons receiving services are present and when all the following criteria are met:

 

(1) the vendor requests and the county recommends the optional rate;

 

(2) the service is prior authorized by the county on the Medicaid Management Information System for no more than 414 hours in a 12-month period and the daily per person charge to medical assistance does not exceed the vendor's approved full day plus transportation rates;

 

(3) separate full day, partial day, and transportation rates are not billed for the same person on the same day;

 

(4) the approved hourly rate does not exceed the sum of the vendor's current average hourly direct service wage, including fringe benefits and taxes, plus a component equal to the vendor's average hourly nondirect service wage expenses; and


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(5) the actual revenue received for provision of hourly job-coach, follow-along services is subtracted from the vendor's total expenses for the same time period and those adjusted expenses are used for determining recommended full day and transportation payment rates under subdivision 5 in accordance with the limitations in subdivision 3.

 

(b) Notwithstanding any law or rule to the contrary, the commissioner may authorize county participation in a voluntary individualized payment rate structure for day training and habilitation services to allow a county the flexibility to change, after consulting with providers, from a site-based payment rate structure to an individual payment rate structure for the providers of day training and habilitation services in the county. The commissioner shall seek input from providers and consumers in establishing procedures for determining the structure of voluntary individualized payment rates to ensure that there is no additional cost to the state and that the rate structure is cost-neutral to providers of day training and habilitation services.

 

(c) Medical assistance rates for home and community-based service provided under section 256B.501, subdivision 4, by licensed vendors of day training and habilitation services must not be greater than the rates for the same services established by counties under sections 252.40 to 252.46. For very dependent persons with special needs the commissioner may approve an exception to the approved payment rate under section 256B.501, subdivision 4 or 8.

 

Sec. 10. Minnesota Statutes 2002, section 256.045, subdivision 3, is amended to read:

 

Subd. 3. [STATE AGENCY HEARINGS.] (a) State agency hearings are available for the following: (1) any person applying for, receiving or having received public assistance, medical care, or a program of social services granted by the state agency or a county agency or the federal Food Stamp Act whose application for assistance is denied, not acted upon with reasonable promptness, or whose assistance is suspended, reduced, terminated, or claimed to have been incorrectly paid; (2) any patient or relative aggrieved by an order of the commissioner under section 252.27; (3) a party aggrieved by a ruling of a prepaid health plan; (4) except as provided under chapter 245A, any individual or facility determined by a lead agency to have maltreated a vulnerable adult under section 626.557 after they have exercised their right to administrative reconsideration under section 626.557; (5) any person whose claim for foster care payment according to a placement of the child resulting from a child protection assessment under section 626.556 is denied or not acted upon with reasonable promptness, regardless of funding source; (6) any person to whom a right of appeal according to this section is given by other provision of law; (7) an applicant aggrieved by an adverse decision to an application for a hardship waiver under section 256B.15; (8) except as provided under chapter 245A, an individual or facility determined to have maltreated a minor under section 626.556, after the individual or facility has exercised the right to administrative reconsideration under section 626.556; or (9) except as provided under chapter 245A, an individual disqualified under section 245A.04, subdivision 3d, on the basis of serious or recurring maltreatment; a preponderance of the evidence that the individual has committed an act or acts that meet the definition of any of the crimes listed in section 245A.04, subdivision 3d, paragraph (a), clauses (1) to (4); or for failing to make reports required under section 626.556, subdivision 3, or 626.557, subdivision 3; or (10) a vendor of medical care as defined in section 256B.02, subdivision 7, or a vendor under contract to provide social services under section 256E.08, subdivision 4, to the extent permitted under subdivision 11. Hearings regarding a maltreatment determination under clause (4) or (8) and a disqualification under this clause in which the basis for a disqualification is serious or recurring maltreatment, which has not been set aside or rescinded under section 245A.04, subdivision 3b, shall be consolidated into a single fair hearing. In such cases, the scope of review by the human services referee shall include both the maltreatment determination and the disqualification. The failure to exercise the right to an administrative reconsideration shall not be a bar to a hearing under this section if federal law provides an individual the right to a hearing to dispute a finding of maltreatment. Individuals and organizations specified in this section may contest the specified action, decision, or final disposition before the state agency by submitting a written request for a hearing to the state agency within 30 days after receiving written notice of the action, decision, or final disposition, or within 90 days of such written notice if the applicant, recipient, patient, or relative shows good cause why the request was not submitted within the 30-day time limit.


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The hearing for an individual or facility under clause (4), (8), or (9) is the only administrative appeal to the final agency determination specifically, including a challenge to the accuracy and completeness of data under section 13.04. Hearings requested under clause (4) apply only to incidents of maltreatment that occur on or after October 1, 1995. Hearings requested by nursing assistants in nursing homes alleged to have maltreated a resident prior to October 1, 1995, shall be held as a contested case proceeding under the provisions of chapter 14. Hearings requested under clause (8) apply only to incidents of maltreatment that occur on or after July 1, 1997. A hearing for an individual or facility under clause (8) is only available when there is no juvenile court or adult criminal action pending. If such action is filed in either court while an administrative review is pending, the administrative review must be suspended until the judicial actions are completed. If the juvenile court action or criminal charge is dismissed or the criminal action overturned, the matter may be considered in an administrative hearing.

 

For purposes of this section, bargaining unit grievance procedures are not an administrative appeal.

 

The scope of hearings involving claims to foster care payments under clause (5) shall be limited to the issue of whether the county is legally responsible for a child's placement under court order or voluntary placement agreement and, if so, the correct amount of foster care payment to be made on the child's behalf and shall not include review of the propriety of the county's child protection determination or child placement decision.

 

(b) A vendor of medical care as defined in section 256B.02, subdivision 7, or a vendor under contract with a county agency to provide social services under section 256E.08, subdivision 4, is not a party and may not request a hearing under this section, except if assisting a recipient as provided in subdivision 4 or as provided under subdivision 11.

 

(c) An applicant or recipient is not entitled to receive social services beyond the services included in the amended community social services plan developed under section 256E.081, subdivision 3, if the county agency has met the requirements in section 256E.081.

 

(d) The commissioner may summarily affirm the county or state agency's proposed action without a hearing when the sole issue is an automatic change due to a change in state or federal law.

 

Sec. 11. Minnesota Statutes 2002, section 256.045, subdivision 5, is amended to read:

 

Subd. 5. [ORDERS OF THE COMMISSIONER OF HUMAN SERVICES.] A state human services referee shall conduct a hearing on the appeal and shall recommend an order to the commissioner of human services. The recommended order must be based on all relevant evidence and must not be limited to a review of the propriety of the state or county agency's action. A referee may take official notice of adjudicative facts. The commissioner of human services may accept the recommended order of a state human services referee and issue the order to the county agency and the applicant, recipient, former recipient, or prepaid health plan. The commissioner on refusing to accept the recommended order of the state human services referee, shall notify the petitioner, the agency, or prepaid health plan of that fact and shall state reasons therefor and shall allow each party ten days' time to submit additional written argument on the matter. After the expiration of the ten-day period, the commissioner shall issue an order on the matter to the petitioner, the agency, or prepaid health plan.

 

A party aggrieved by an order of the commissioner may appeal under subdivision 7, or request reconsideration by the commissioner within 30 days after the date the commissioner issues the order. The commissioner may reconsider an order upon request of any party or on the commissioner's own motion. A request for reconsideration does not stay implementation of the commissioner's order. Upon reconsideration, the commissioner may issue an amended order or an order affirming the original order.


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Any order of the commissioner issued under this subdivision shall be conclusive upon the parties unless appeal is taken in the manner provided by subdivision 7. Any order of the commissioner is binding on the parties and must be implemented by the state agency, a county agency, or a prepaid health plan according to subdivision 3a, until the order is reversed by the district court, or unless the commissioner or a district court orders monthly assistance or aid or services paid or provided under subdivision 10.

 

A vendor of medical care as defined in section 256B.02, subdivision 7, or a vendor under contract with a county agency to provide social services under section 256E.08, subdivision 4, is not a party and may not request a hearing or seek judicial review of an order issued under this section, unless assisting a recipient as provided in subdivision 4 or as provided in subdivision 11. A prepaid health plan is a party to an appeal under subdivision 3a, but cannot seek judicial review of an order issued under this section.

 

Sec. 12. Minnesota Statutes 2002, section 256.045, is amended by adding a subdivision to read:

 

Subd. 11. [VENDOR APPEAL PROCESS.] A vendor of medical care as defined in section 256B.02, subdivision 7, or a vendor under contract to provide social services under section 256E.08, subdivision 4, may appeal an action of a county board arising from the terms of a purchase of service agreement between the vendor and the county that is proposed or in effect, if the agreement:

 

(1) contains unreasonable or discriminatory outcome requirements, performance criteria, or program objectives; or

 

(2) provides a rate of reimbursement that is unfair or discriminatory when compared to the rates of reimbursement for other vendors in the county providing similar services.

 

Sec. 13. Minnesota Statutes 2002, section 256B.057, subdivision 9, is amended to read:

 

Subd. 9. [EMPLOYED PERSONS WITH DISABILITIES.] (a) Medical assistance may be paid for a person who is employed and who:

 

(1) meets the definition of disabled under the supplemental security income program;

 

(2) is at least 16 but less than 65 years of age;

 

(3) meets the asset limits in paragraph (b); and

 

(4) effective November 1, 2003, pays a premium, if required, and other obligations under paragraph (c) (d).

 

Any spousal income or assets shall be disregarded for purposes of eligibility and premium determinations.

 

After the month of enrollment, a person enrolled in medical assistance under this subdivision who:

 

(1) is temporarily unable to work and without receipt of earned income due to a medical condition, as verified by a physician, may retain eligibility for up to four calendar months; or

 

(2) effective January 1, 2004, loses employment for reasons not attributable to the enrollee, may retain eligibility for up to four consecutive months after the month of job loss. To receive a four-month extension, enrollees must verify the medical condition or provide notification of job loss. All other eligibility requirements must be met and the enrollee must pay all calculated premium costs for continued eligibility.


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(b) For purposes of determining eligibility under this subdivision, a person's assets must not exceed $20,000, excluding:

 

(1) all assets excluded under section 256B.056;

 

(2) retirement accounts, including individual accounts, 401(k) plans, 403(b) plans, Keogh plans, and pension plans; and

 

(3) medical expense accounts set up through the person's employer.

 

(c)(1) Effective January 1, 2004, for purposes of eligibility, there will be a $65 earned income disregard. To be eligible, a person applying for medical assistance under this subdivision must have earned income above the disregard level.

 

(2) Effective January 1, 2004, to be considered earned income, Medicare, social security, and applicable state and federal income taxes must be withheld. To be eligible, a person must document earned income tax withholding.

 

(d)(1) A person whose earned and unearned income is equal to or greater than 100 percent of federal poverty guidelines for the applicable family size must pay a premium to be eligible for medical assistance under this subdivision. The premium shall be based on the person's gross earned and unearned income and the applicable family size using a sliding fee scale established by the commissioner, which begins at one five percent of income at for a person whose income is equal to or greater than 100 percent but does not exceed 175 percent of the federal poverty guidelines and increases to 7.5 percent of income for those with incomes at or above 300 225 percent of the federal poverty guidelines. Annual adjustments in the premium schedule based upon changes in the federal poverty guidelines shall be effective for premiums due in July of each year.

 

(2) Effective January 1, 2004, all enrollees must pay a premium to be eligible for medical assistance under this subdivision. An enrollee shall pay the greater of a $35 premium or the premium calculated in clause (1).

 

(3) Effective November 1, 2003, notwithstanding section 256B.0625, subdivision 15, paragraph (a), the commissioner shall require enrollees with incomes greater than 150 percent of the federal poverty guidelines who are also enrolled in Medicare to pay the full cost of Medicare Part B premiums.

 

(d) (e) A person's eligibility and premium shall be determined by the local county agency. Premiums must be paid to the commissioner. All premiums are dedicated to the commissioner.

 

(e) (f) Any required premium shall be determined at application and redetermined annually at recertification at the enrollee's six-month income review or when a change in income or family household size occurs is reported. Enrollees must report any change in income or household size within ten days of when the change occurs. A decreased premium resulting from a reported change in income or household size shall be effective the first day of the next available billing month after the change is reported. Except for changes occurring from annual cost-of-living increases or verification of income under section 256B.061, paragraph (b), a change resulting in an increased premium shall not affect the premium amount until the next six-month review.

 

(f) (g) Premium payment is due upon notification from the commissioner of the premium amount required. Premiums may be paid in installments at the discretion of the commissioner.

 

(g) (h) Nonpayment of the premium shall result in denial or termination of medical assistance unless the person demonstrates good cause for nonpayment. Good cause exists if the requirements specified in Minnesota Rules, part 9506.0040, subpart 7, items B to D, are met. Except when an installment agreement is accepted by the commissioner, all persons disenrolled for nonpayment of a premium must pay any past due premiums as well as


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current premiums due prior to being reenrolled. Nonpayment shall include payment with a returned, refused, or dishonored instrument. The commissioner may require a guaranteed form of payment as the only means to replace a returned, refused, or dishonored instrument.

 

[EFFECTIVE DATE.] This section is effective November 1, 2003, except the amendment to Minnesota Statutes 2002, section 256B.057, subdivision 9, paragraph (d), is effective January 1, 2004, and the amendments to Minnesota Statutes 2002, section 256B.057, subdivision 9, paragraphs (f) and (h), are effective July 1, 2003.

 

Sec. 14. Minnesota Statutes 2002, section 256B.0625, subdivision 17, is amended to read:

 

Subd. 17. [TRANSPORTATION COSTS.] (a) Medical assistance covers transportation costs incurred solely for obtaining emergency medical care or transportation costs incurred by nonambulatory persons in obtaining emergency or nonemergency medical care when paid directly to an ambulance company, common carrier, or other recognized providers of transportation services. For the purpose of this subdivision, a person who is incapable of transport by taxicab or bus shall be considered to be nonambulatory.

 

(b) Medical assistance covers special transportation, as defined in Minnesota Rules, part 9505.0315, subpart 1, item F, if the provider receives and maintains a current physician's order by the recipient's attending physician certifying that the recipient has a physical or mental impairment that would prohibit the recipient from safely accessing and using a bus, taxi, other commercial transportation, or private automobile. and the recipient:

 

(1) requires a wheelchair-accessible van or a stretcher-accessible vehicle; or

 

(2) does not require a wheelchair-accessible van or a stretcher-accessible vehicle but:

 

(i) resides in a facility licensed by or registered with the commissioner of human services or the commissioner of health; or

 

(ii) needs special transportation service to access dialysis or radiation therapy services. Individuals certified as needing a wheelchair-accessible van or a stretcher-accessible vehicle must have the physician certification renewed every three years. All other individuals must have the physician certification renewed annually. Special transportation includes driver-assisted service to eligible individuals. Driver-assisted service includes passenger pickup at and return to the individual's residence or place of business, assistance with admittance of the individual to the medical facility, and assistance in passenger securement or in securing of wheelchairs or stretchers in the vehicle. The commissioner shall establish maximum medical assistance reimbursement rates for special transportation services for persons who need a wheelchair-accessible van or stretcher-accessible vehicle and for those who do not need a wheelchair-accessible van or stretcher-accessible vehicle. The average of these two rates per trip must not exceed $15 for the base rate and $1.40 per mile. Special transportation provided to nonambulatory persons who do not need a wheelchair-accessible van or stretcher-accessible vehicle, may be reimbursed at a lower rate than special transportation provided to persons who need a wheelchair-accessible van or stretcher-accessible vehicle.

 

(c) The maximum medical assistance reimbursement rates for special transportation services are:

 

(1) $18 for the base rate and $1.40 per mile for services to persons who need a wheelchair-accessible van;

 

(2) $36 for the base rate and $1.40 per mile for services to persons who need a stretcher-accessible vehicle;

 

(3) $9 per trip for the attendant rate for wheelchair-accessible vans or stretcher accessible vehicles; and


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(4) $12 for the base rate and $1.40 per mile for services provided to persons who do not need a wheelchair-accessible van or stretcher-accessible vehicle.

 

(d) In order to receive reimbursement under this subdivision, all providers must maintain a daily log book that is signed by an authorized representative of the emergency or nonemergency medical facility to which an individual is transported. The log book must list the date and time the nonambulatory person is received at the medical facility. All log books must be retained for at least five years. All providers of special transportation services must use a commercially available computer mapping software program selected by the commissioner to calculate mileage for purposes of reimbursement under this subdivision.

 

(e) A provider may not receive reimbursement under this subdivision for providing transportation solely for the purpose of transporting an individual to a pharmacy. A provider may receive reimbursement for transporting an individual to a pharmacy if the visit occurs following a visit to a medical facility at which a prescription was provided. A special transportation provider may not receive reimbursement under this subdivision for transporting a child to school, unless the special transportation service is needed to obtain nonemergency medical care at the school and a less costly alternative form of transportation is not available.

 

(f) The medical assistance benefit plan shall include a $1 co-payment for special transportation services provided to individuals who do not need a wheelchair-accessible van or stretcher-accessible vehicle, effective for services provided on or after October 1, 2003. Recipients of medical assistance are responsible for all co-payments in this subdivision. Co-payments shall be subject to the following exceptions:

 

(1) children under the age of 21;

 

(2) pregnant women for services that relate to the pregnancy or any other medical condition that may complicate the pregnancy;

 

(3) recipients expected to reside for at least 30 days in a hospital, nursing home, or intermediate care facility for the mentally retarded;

 

(4) recipients receiving hospice care;

 

(5) 100 percent federally funded services provided by an Indian health service;

 

(6) services that are paid by Medicare, resulting in the medical assistance program paying for the coinsurance and deductible; and

 

(7) co-payments that exceed one per day per provider.

 

The medical assistance reimbursement to the provider shall be reduced by the amount of the co-payment. The provider collects the co-payment from the recipient. Providers may not deny services to individuals who are unable to pay the co-payment. Providers must accept an assertion from the recipient that they are unable to pay.

 

(f) The commissioner is prohibited from using a broker or coordinator to manage special transportation services.

 

Sec. 15. Minnesota Statutes 2002, section 256B.092, subdivision 1a, is amended to read:

 

Subd. 1a. [CASE MANAGEMENT ADMINISTRATION AND SERVICES.] (a) The administrative functions of case management provided to or arranged for a person include:

 

(1) intake review of eligibility for services;


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(2) diagnosis screening;

 

(3) screening intake;

 

(4) service authorization diagnosis;

 

(5) review of eligibility for services individualized service plan development;

 

(6) service authorization; and

 

(6) (7) responding to requests for conciliation conferences and appeals according to section 256.045 made by the person, the person's legal guardian or conservator, or the parent if the person is a minor.

 

(b) Case management service activities provided to or arranged for a person include:

 

(1) development of the individual service plan;

 

(2) informing in consultation with the individual or and the individual's legal guardian or conservator, or parent if the person is a minor, of service options medical experts, and service providers;

 

(3) (2) assisting the person in the identification of potential providers;

 

(4) assisting the person to access services;

 

(5) (3) coordination of services, if coordination is not provided by the service provider;

 

(6) evaluation and monitoring of the services identified in the plan; and

 

(7) (4) annual reviews of service plans and services provided.

 

(c) Case management administration and service activities that are provided to the person with mental retardation or a related condition shall be provided directly by county agencies or under contract.

 

(d) Case managers are responsible for the administrative duties and service provisions listed in paragraphs (a) and (b). Case managers shall work with consumers, families, legal representatives, and relevant service providers in the development and annual review of the individualized service and habilitation plans.

 

(e) The department of human services shall offer ongoing education in case management to case managers. Case managers shall receive no less than ten hours of case management education and training each year.

 

Sec. 16. Minnesota Statutes 2002, section 256B.092, subdivision 5, is amended to read:

 

Subd. 5. [FEDERAL WAIVERS.] (a) The commissioner shall apply for any federal waivers necessary to secure, to the extent allowed by law, federal financial participation under United States Code, title 42, sections 1396 et seq., as amended, for the provision of services to persons who, in the absence of the services, would need the level of care provided in a regional treatment center or a community intermediate care facility for persons with mental retardation or related conditions. The commissioner may seek amendments to the waivers or apply for additional waivers under United States Code, title 42, sections 1396 et seq., as amended, to contain costs. The commissioner shall ensure that payment for the cost of providing home and community-based alternative services under the federal waiver plan shall not exceed the cost of intermediate care services including day training and habilitation services that would have been provided without the waivered services.


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(b) The commissioner, in administering home and community-based waivers for persons with mental retardation and related conditions, shall ensure that day services for eligible persons are not provided by the person's residential service provider, unless the person or the person's legal representative is offered a choice of providers and agrees in writing to provision of day services by the residential service provider. The individual service plan for individuals who choose to have their residential service provider provide their day services must describe how health, safety, and protection, and habilitation needs will be met by, including how frequent and regular contact with persons other than the residential service provider will occur. The individualized service plan must address the appropriateness of receiving habilitative services outside the residence on weekdays.

 

Sec. 17. [256B.492] [REGIONAL MANAGEMENT OF HOME AND COMMUNITY-BASED WAIVER SERVICES.]

 

Subdivision 1. [REGION.] For the purposes of this section, "region" means a county or a group of counties, with a population of 100,000 or more, that have formed a joint powers agreement to manage the home and community-based waiver services.

 

Subd. 2. [PURPOSE.] Counties may form joint powers agreements for the purpose of regionally managing the home and community-based waiver services under sections 256B.0916 and 256B.49. Counties with a population of less than 100,000 are encouraged to form joint powers agreements with other counties to regionally manage the home and community-based waiver services under sections 256B.0916 and 256B.49.

 

Subd. 3. [REGIONAL WAIVER AUTHORITY.] One of the parties to the joint powers agreement shall be designated the regional waiver authority and shall monitor regional authorizations and expenditures. The joint powers agreement shall specify how decisions are made on authorizations and expenditures from the home and community-based waiver allocation.

 

Subd. 4. [FISCAL MANAGEMENT.] A region may expend up to two percent more than its home and community-based allocation in a given fiscal year if the region underspends by the same amount the following fiscal year. A region may carry forward a resource allocation of unspent resources within its home and community-based waiver services allocation from year to year.

 

Subd. 5. [COMMISSIONER'S AUTHORITY.] When waiver resources are distributed to a group of counties, the commissioner may (1) require a joint powers agreement; (2) contract with a public or private agency; or (3) require both to administer the waiver program for that geographic area. The commissioner is responsible for assuring that funds are used properly within the amount allocated.

 

Sec. 18. Minnesota Statutes 2002, section 256B.501, subdivision 1, is amended to read:

 

Subdivision 1. [DEFINITIONS.] For the purposes of this section, the following terms have the meaning given them.

 

(a) "Commissioner" means the commissioner of human services.

 

(b) "Facility" means a facility licensed as a mental retardation residential facility under section 252.28, licensed as a supervised living facility under chapter 144, and certified as an intermediate care facility for persons with mental retardation or related conditions. The term does not include a state regional treatment center.

 

(c) "Habilitation services" means health and social services directed toward increasing and maintaining the physical, intellectual, emotional, and social functioning of persons with mental retardation or related conditions. Habilitation services include therapeutic activities, assistance, training, supervision, and monitoring in the areas of


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self-care, sensory and motor development, interpersonal skills, communication, socialization, reduction or elimination of maladaptive behavior, community living and mobility, health care, leisure and recreation, money management, and household chores.

 

(d) "Services during the day" means services or supports provided to a person that enables the person to be fully integrated into the community. Services during the day must include habilitation services, and may include a variety of supports to enable the person to exercise choices for community integration and inclusion activities. Services during the day may include, but are not limited to: supported work, support during community activities, community volunteer opportunities, adult day care, recreational activities, and other individualized integrated supports.

 

(e) "Waivered service" means home or community-based service authorized under United States Code, title 42, section 1396n(c), as amended through December 31, 1987, and defined in the Minnesota state plan for the provision of medical assistance services. Waivered services include, at a minimum, case management, family training and support, developmental training homes, supervised living arrangements, semi-independent living services, respite care, and training and habilitation services.

 

Sec. 19. Minnesota Statutes 2002, section 256B.501, is amended by adding a subdivision to read:

 

Subd. 3m. [SERVICES DURING THE DAY.] When establishing a rate for services during the day, the commissioner shall ensure that these services comply with active treatment requirements for persons residing in an ICF/MR as defined under federal regulations and shall ensure that day services for eligible persons are not provided by the person's residential service provider, unless the person or the person's legal representative is offered a choice of providers and agrees in writing to provision of day services by the residential service provider, consistent with the individual service plan. The individual service plan for individuals who choose to have their residential service provider provide their day services must describe how health, safety, protection, and habilitation needs will be met, including how frequent and regular contact with persons other than the residential service provider will occur.

 

Sec. 20. Minnesota Statutes 2002, section 256B.5013, subdivision 4, is amended to read:

 

Subd. 4. [TEMPORARY RATE ADJUSTMENTS TO ADDRESS OCCUPANCY AND ACCESS.] Beginning July 1, 2002, the commissioner shall adjust the total payment rate for up to 75 days for the remaining recipients for facilities in which the monthly occupancy rate of licensed beds is 75 percent or greater, if the vacancy or vacancies are due to a facility reserving beds for crisis respite care or respite care for medically fragile individuals. This mechanism shall not be used to pay for hospital or therapeutic leave days beyond the maximums allowed.

 

Sec. 21. Minnesota Statutes 2002, section 256B.5015, is amended to read:

 

256B.5015 [PASS-THROUGH OF TRAINING AND HABILITATION OTHER SERVICES COSTS.]

 

Subdivision 1. [DAY TRAINING AND HABILITATION SERVICES.] Day training and habilitation services costs shall be paid as a pass-through payment at the lowest rate paid for the comparable services at that site under sections 252.40 to 252.46. The pass-through payments for training and habilitation services shall be paid separately by the commissioner and shall not be included in the computation of the ICF/MR facility total payment rate.

 

Subd. 2. [SERVICES DURING THE DAY.] Services during the day, as defined in section 256B.501, but excluding day training and habilitation services, shall be paid as a pass-through payment no later than January 1, 2004. The commissioner shall establish rates for these services, other than day training and habilitation services, at levels that do not exceed 60 percent of a recipient's day training and habilitation costs prior to the service change.


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When establishing a rate for these services, the commissioner shall also consider an individual recipient's needs as identified in the individualized service plan and the person's need for active treatment as defined under federal regulations. The pass-through payments for services during the day shall be paid separately by the commissioner and may be included in the computation of the ICF/MR facility total payment rate.

 

Sec. 22. [256M.01] [CITATION.]

 

Sections 256M.01 to 256M.80 may be cited as the "Children and Community Services Act." This act establishes a fund to address the needs of children, adolescents, and young adults within each county in accordance with a service agreement entered into by the board of county commissioners of each county and the commissioner of human services. The service agreement shall specify the outcomes to be achieved, the general strategies to be employed, and the respective state and county roles. The service agreement shall be reviewed and updated every two years, or sooner if both the state and the county deem it necessary. Nothing in this act is intended to limit the ability of counties to provide services to adults over age 25.

 

Sec. 23. [256M.10] [DEFINITIONS.]

 

Subdivision 1. [SCOPE.] For the purposes of sections 256M.01 to 256M.80, the terms defined in this section have the meanings given them.

 

Subd. 2. [CHILDREN AND COMMUNITY SERVICES.] (a) "Children and community services" means services provided or arranged for by county boards for children, adolescents, and adults who experience dependency, abuse, neglect, poverty, disability, chronic health conditions, or other factors, including ethnicity and race, that may result in poor outcomes or disparities, as well as services for family members to support those individuals.

 

(b) Services eligible as allowable expenditures under sections 256M.01 to 256M.80 include, but are not limited to, services that:

 

(1) protect a person from harm;

 

(2) support permanent living arrangements;

 

(3) provide treatment;

 

(4) maintain family relationships;

 

(5) increase parenting skills;

 

(6) reduce substance abuse; and

 

(7) reduce domestic violence.

 

These services may be provided by professionals or nonprofessionals, including the person's natural supports in the community.

 

(c) Services shall, to the extent possible:

 

(1) build on family and community strengths;


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(2) help prevent crisis by meeting needs early;

 

(3) provide transitional supports to adolescents and young adults making the transition to adulthood;

 

(4) offer help in basic needs, special needs, and referrals;

 

(5) respond flexibly to the needs of the person and the family;

 

(6) be culturally sensitive and responsive to the needs of the person; and

 

(7) be offered in the family home as well as in other settings.

 

(d) Children and community services do not include services under the public assistance programs known as the Minnesota family investment program, Minnesota supplemental aid, medical assistance, general assistance, general assistance medical care, MinnesotaCare, or community health services.

 

Subd. 3. [COMMISSIONER.] "Commissioner" means the commissioner of human services.

 

Subd. 4. [COUNTY BOARD.] "County board" means the board of county commissioners in each county.

 

Subd. 5. [FORMER CHILDREN'S SERVICES AND COMMUNITY SERVICE GRANTS.] "Former children's services and community service grants" means allocations for the following grants:

 

(1) community social service grants under sections 252.24, 256E.06, and 256E.14;

 

(2) family preservation grants under section 256F.05, subdivision 3;

 

(3) concurrent permanency planning grants under section 260C.213, subdivision 5;

 

(4) social service block grants (Title XX) under section 256E.07; and

 

(5) children's mental health grants under sections 245.4886 and 260.152.

 

Subd. 6. [HUMAN SERVICES BOARD.] "Human services board" means a board established under section 402.02; Laws 1974, chapter 293; or Laws 1976, chapter 340.

 

Subd. 7. [YOUNG ADULT.] "Young adult" means a person between the ages of 18 and 25.

 

Sec. 24. [256M.70] [FISCAL LIMITATIONS.]

 

Subdivision 1. [SERVICE LIMITATION.] If the county has met the requirements in subdivisions 2 to 4, the county shall not be required to provide children and community services beyond requirements in federal or state law.

 

Subd. 2. [DEMONSTRATION OF REASONABLE EFFORT.] The county shall make reasonable efforts to comply with all children and community services requirements. For the purposes of this section, a county is making reasonable efforts if the county has made efforts to comply with requirements within the limits of available funding, including efforts to identify and apply for commonly available state and federal funding for services.


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Subd. 3. [IDENTIFICATION OF SERVICES TO BE PROVIDED.] If a county has made reasonable efforts to comply with all applicable administrative rule requirements and is unable to meet all requirements, the county must provide services using the following considerations:

 

(1) providing services needed to protect individuals from maltreatment, abuse, and neglect;

 

(2) providing emergency and crisis services needed to protect clients from physical, emotional, or psychological harm;

 

(3) assessing and documenting the needs of persons applying for services and referring to appropriate services when necessary;

 

(4) providing public guardianship services;

 

(5) fulfilling licensing responsibilities delegated to the county by the commissioner under section 245A.16;

 

(6) providing day training and habilitation services for children, adolescents, young adults, and adults over age 25 with developmental disabilities; and

 

(7) providing case management for persons with developmental disabilities, children with serious emotional disturbances, and adults with serious and persistent mental illness.

 

Subd. 4. [DENIAL, REDUCTION, OR TERMINATION OF SERVICES DUE TO FISCAL LIMITATIONS.] Before a county denies, reduces, or terminates services to an individual due to fiscal limitations, the county must meet the requirements in subdivisions 2 and 3. The county must notify the individual and the individual's guardian in writing of the reason for the denial, reduction, or termination of services and must inform the individual and the individual's guardian in writing that the county will, upon request, meet to discuss alternatives before services are terminated or reduced.

 

Subd. 5. [APPEAL RIGHTS.] An individual who applies for or receives children and community services under this chapter, whose application is denied, or whose services are reduced or terminated has the right to a fair hearing under section 256.045.

 

Subd. 6. [RIGHT TO PETITION FOR REVIEW.] Any individual who applies for or receives children and community services under this chapter, whose application is denied, or whose services are reduced or terminated may petition the commissioner to review the county's performance under the county service agreement. The petition must be in writing and must be specific as to what action the individual believes is inconsistent with the county service agreement, and what action the individual believes should be required. Upon receiving a petition, the commissioner shall have 60 days in which to make a reply in writing as to its determination and any corrective action required. Notwithstanding any state law to the contrary, and subject to provisions of federal law, during this time period, the denial of eligibility or reduction or termination of services shall take effect, unless the commissioner determines this would endanger the life or safety of the individual.

 

Sec. 25. [COST MANAGEMENT OF HOME AND COMMUNITY-BASED WAIVERED SERVICES.]

 

(a) The commissioner of human services shall efficiently allocate and manage limited home and community-based waiver services program resources to achieve the following outcomes:

 

(1) the establishment of feasible and viable alternatives for persons in institutional or hospital settings to relocate to home and community-based settings;


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(2) the availability of timely assistance to persons at imminent risk of institutional or hospital placement or whose health and safety is at immediate risk; and

 

(3) the maximum provision of essential community supports to eligible persons in need of and waiting for home and community-based service alternatives.

 

(b) The commissioner shall monitor the costs of home and community-based services, and may adjust home and community-based service allocations, as necessary, to assure that program costs are managed within available funding. When making this determination, the commissioner shall give consideration to offsets that may occur in other programs as a result of the availability and use of home and community-based services.

 

(c) The commissioner shall allocate home and community-based resources to local/regional entities in a manner that considers:

 

(1) the historical costs of serving individuals in a county or region;

 

(2) the individualized service plans for current recipients and eligible individuals expected to enter the waiver during the fiscal year; and

 

(3) the need for crisis services or other short-term services required because of unforeseen circumstances.

 

(d) The commissioner may reallocate resources from one county or region to another if available funding in that county or region is not likely to be spent and the reallocation is necessary to achieve the outcomes specified in paragraph (a).

 

Sec. 26. [SERVICE PRIORITIES.]

 

For the 2004-2005 biennium, the commissioner shall monitor all available home and community-based waiver resources to support the following priorities for service for eligible individuals:

 

(1) children or adults who cannot be maintained safely in their current living situation without waiver services;

 

(2) children or adults in unstable living situations due to significant needs, age, or incapacity of the primary caregiver; and

 

(3) other persons who have been screened and are eligible, including those living in an ICF/MR, who are on a waiting list maintained by the date of screening document.

 

Sec. 27. [HOME AND COMMUNITY-BASED WAIVER RESOURCE MANAGEMENT STATEWIDE.]

 

The commissioner shall manage program resources during the 2004-2005 biennium to assure that all available funds are allocated to meet the service priority needs and maintain a reserve statewide of no more than three percent of available funds. In order to effectively manage available resources to meet service priorities, the commissioner shall enable counties to manage resources on a regional basis.

 

Sec. 28. [DENIAL, REDUCTION, OR TERMINATION OF WAIVER SERVICES.]

 

For the 2004-2005 biennium, before a county denies, reduces, or terminates home and community-based services under sections 256B.0916 and 256B.49 for an individual, the case manager must meet with the individual or the individual's guardian and prioritize service needs based on the individualized service plan. The percentage reduction


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in the dollar value of authorized services for an individual due to waiver rebasing or reductions in waiver funding may not exceed twice the percentage reduction in total funding to the county for that waivered service due to waiver rebasing or a reduction in waiver funding.

 

Sec. 29. [DIRECTION TO THE COMMISSIONER; HOME AND COMMUNITY-BASED SERVICES RESOURCE ALLOCATION METHOD DEVELOPMENT.]

 

The commissioner shall consult with representatives of persons with disabilities, their families and guardians, counties, service providers, and advocacy organizations to develop recommendations for a statewide method of allocating resources sufficient to meet the identified needs of persons eligible for home and community-based waiver services under Minnesota Statutes, sections 256B.0916 and 256B.49. The recommendations shall include provisions that address the feasibility of offering incentives to persons with less urgent service needs who are receiving services or on the waiting list to postpone their access to home and community-based service options. The recommendations shall be provided to the legislative committees with jurisdiction over health and human services issues by January 15, 2004.

 

Sec. 30. [HOME AND COMMUNITY-BASED SERVICES FUNDING METHODOLOGY.]

 

Beginning July 1, 2003, before making significant changes in the funding methodology for the home and community-based waiver for persons with mental retardation or a related condition, the commissioner shall consult with representatives of counties, service providers, and persons with disabilities and their families to provide specific information about the funding formula and funding changes and the opportunity to comment at least 90 days before the changes become effective.

 

Sec. 31. [CASE MANAGEMENT ACCESS FOR HOME AND COMMUNITY-BASED WAIVER RECIPIENTS.]

 

For the 2004-2005 biennium, when a person requests case management services under Minnesota Statutes, section 256B.092 or 256B.49, subdivision 13, the county must determine whether the person qualifies and begin the screening process within ten working days and individualized service plan development and provide case management services to those eligible within a reasonable time. If a county is unable to provide case management services, the county shall contract for case management services to meet the obligation.

 

Sec. 32. [DIRECTION TO THE COMMISSIONER; CASE MANAGEMENT SERVICES.]

 

In consultation with representatives for consumers, consumer advocates, counties, and service providers, the commissioner shall develop proposed legislation for case management changes that will (1) streamline administration, (2) improve consumer access to case management services, (3) assess the feasibility of a comprehensive universal assessment protocol for persons seeking community supports, (4) establish accountability for funds and performance measures, and (5) provide for consumer choice of the case management service vendor. The proposed legislation shall be provided to the legislative committees with jurisdiction over health and human services issues by February 15, 2004.

 

Sec. 33. [DIRECTION TO THE COMMISSIONER; SEMI-INDEPENDENT LIVING SERVICES AND FAMILY SUPPORT GRANT CONSOLIDATION.]

 

The commissioner shall consolidate the semi-independent living services and family support grants, under Minnesota Statutes, sections 252.275 and 256.476, and require a county contribution equal to 20 percent of the total amount expended on the grant program, by January 1, 2004.


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Sec. 34. [STATE-OPERATED SERVICES STUDY.]

 

The commissioner of human services shall study alternate methods of providing services to persons with developmental disabilities served in state-operated community services (SOCS), including, but not limited to, how the services could be privatized by June 30, 2005. The commissioner also shall study the Minnesota extended treatment options, including an analysis of the population served by the program and the effectiveness of the program. The commissioner shall report on the results of the study under this section to the chairs of the house and senate committees with jurisdiction over state-operated services by January 15, 2004.

 

Sec. 35. [VACANCY LISTINGS.]

 

The commissioner of human services shall work with interested stakeholders on how provider and industry specific Web sites can provide useful information to consumers on bed vacancies for group residential housing providers and intermediate care facilities for persons with mental retardation and related conditions. Providers and industry trade organizations are responsible for all costs related to maintaining Web sites listing bed vacancies.

 

Sec. 36. [CASE MANAGEMENT SERVICES.]

 

Notwithstanding any other law or rule to the contrary, all case management services provided to individuals for nonwaivered services shall be paid by the state.

 

Sec. 37. [REVIEW OF SPECIAL TRANSPORTATION ELIGIBILITY CRITERIA.]

 

The commissioner of human services, in consultation with the commissioner of transportation and special transportation service providers, shall review eligibility criteria for medical assistance special transportation services and shall evaluate whether the level of special transportation services provided should be based on the degree of impairment of the client, as well as the medical diagnosis. The commissioner shall present recommendations for changes in the eligibility criteria for special transportation services to the chairs and ranking minority members of the house and senate committees with jurisdiction over health and human services spending by January 15, 2004.

 

Sec. 38. [HOMELESS SERVICES; STATE CONTRACTS.]

 

Nonprofit organizations providing homeless services in two or more counties may apply directly to the commissioner of human services for a contract to provide services. No more than two percent of Community Social Services Act funds are set aside to provide for contracts under this section.

 

Sec. 39. [REPEALER.]

 

(a) Minnesota Statutes 2002, sections 245.4886; 245.496; 252.32, subdivision 2; 254A.17; 256B.0945, subdivisions 6, 7, 8, 9, and 10; 256E.01; 256E.02; 256E.03; 256E.04; 256E.05; 256E.06; 256E.07; 256E.09; 256E.10; 256E.11; 256E.115; 256E.12; 256E.13; 256E.14; 256E.15; 256F.01; 256F.02; 256F.03; 256F.04; 256F.05; 256F.06; 256F.07; 256F.08; 256F.11; 256F.12; 256F.14; 257.075; 257.81; 260.152; and 626.562, are repealed.

 

(b) Minnesota Rules, parts 9550.0010; 9550.0020; 9550.0030; 9550.0040; 9550.0050; 9550.0060; 9550.0070; 9550.0080; 9550.0090; 9550.0091; 9550.0092; and 9550.0093, are repealed.


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ARTICLE 2

 

REDUCTION OF DUPLICATIVE HEALTH AND HUMAN SERVICES

LICENSING ACTIVITIES

 

Section 1. Minnesota Statutes 2002, section 144.057, subdivision 1, is amended to read:

 

Subdivision 1. [BACKGROUND STUDIES REQUIRED.] The commissioner of health shall contract with the commissioner of human services to conduct background studies of:

 

(1) individuals providing services which have direct contact, as defined under section 245A.04, subdivision 3, with patients and residents in hospitals, boarding care homes, outpatient surgical centers licensed under sections 144.50 to 144.58; nursing homes and home care agencies licensed under chapter 144A; ICF/MR certified by the commissioner of health as intermediate care facilities that provide services for persons with mental retardation or related conditions under Code of Federal Regulations, title 42, section 483; residential care homes licensed under chapter 144B, and board and lodging establishments that are registered to provide supportive or health supervision services under section 157.17;

 

(2) individuals specified in section 245A.04, subdivision 3, paragraph (c), who perform direct contact services in a nursing home or a home care agency licensed under chapter 144A or a boarding care home licensed under sections 144.50 to 144.58, and if the individual under study resides outside Minnesota, the study must be at least as comprehensive as that of a Minnesota resident and include a search of information from the criminal justice data communications network in the state where the subject of the study resides;

 

(3) beginning July 1, 1999, all other employees in nursing homes licensed under chapter 144A, and boarding care homes licensed under sections 144.50 to 144.58. A disqualification of an individual in this section shall disqualify the individual from positions allowing direct contact or access to patients or residents receiving services. "Access" means physical access to a client or the client's personal property without continuous, direct supervision as defined in section 245A.04, subdivision 3, paragraph (b), clause (2), when the employee's employment responsibilities do not include providing direct contact services;

 

(4) individuals employed by a supplemental nursing services agency, as defined under section 144A.70, who are providing services in health care facilities; and

 

(5) controlling persons of a supplemental nursing services agency, as defined under section 144A.70.

 

If a facility or program is licensed by the department of human services and subject to the background study provisions of chapter 245A and is also licensed by the department of health, the department of human services is solely responsible for the background studies of individuals in the jointly licensed programs.

 

Sec. 2. Minnesota Statutes 2002, section 144.50, subdivision 6, is amended to read:

 

Subd. 6. [SUPERVISED LIVING FACILITY LICENSES.] (a) The commissioner may license as a supervised living facility a facility seeking medical assistance certification as an intermediate care facility for persons with mental retardation or related conditions for four or more persons as authorized under section 252.291.

 

(b) Class B supervised living facilities shall be classified as follows for purposes of the State Building Code:

 

(1) Class B supervised living facilities for six or less persons must meet Group R, Division 3, occupancy requirements; and


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(2) Class B supervised living facilities for seven to 16 persons must meet Group R, Division 1, occupancy requirements.

 

(c) Class B facilities classified under paragraph (b), clauses (1) and (2), must meet the fire protection provisions of chapter 21 of the 1985 Life Safety Code, NFPA 101, for facilities housing persons with impractical evacuation capabilities, except that Class B facilities licensed prior to July 1, 1990, need only continue to meet institutional fire safety provisions. Class B supervised living facilities shall provide the necessary physical plant accommodations to meet the needs and functional disabilities of the residents. For Class B supervised living facilities licensed after July 1, 1990, and housing nonambulatory or nonmobile persons, the corridor access to bedrooms, common spaces, and other resident use spaces must be at least five feet in clear width, except that a waiver may be requested in accordance with Minnesota Rules, part 4665.0600.

 

(d) The commissioner may license as a Class A supervised living board and lodge facility under chapter 157 as a residential program for chemically dependent individuals that allows children to reside with the parent receiving treatment in the facility. The licensee of the program shall be responsible for the health, safety, and welfare of the children residing in the facility. The facility in which the program is located must be provided with a sprinkler system approved by the state fire marshal. The licensee shall also provide additional space and physical plant accommodations appropriate for the number and age of children residing in the facility. For purposes of license capacity, each child residing in the facility shall be considered to be a resident.

 

Sec. 3. [144.601] [ICF/MR; LICENSURE.]

 

Subdivision 1. [REQUIREMENTS GOVERNING ICF/MR.] (a) When certifying an intermediate care facility for persons with mental retardation or related conditions or ICF/MR, the commissioner shall:

 

(1) license the facility as a supervised living facility under sections 144.50 to 144.58;

 

(2) assure compliance with requirements set forth in the Code of Federal Regulations governing intermediate care facilities for persons with mental retardation or related conditions;

 

(3) enforce requirements governing the use of aversive and deprivation procedures set forth in Minnesota Rules, parts 9525.2700 to 9525.2810; and

 

(4) assure compliance with the psychotropic medication use checklist defined under section 245B.02, subdivision 19.

 

(b) The commissioner of health may not grant a variance to any requirements governing use of aversive and deprivation procedures under Minnesota Rules, parts 9525.2700 to 9525.2810; compliance with the psychotropic medication use checklist; or provisions governing data practices.

 

(c) The commissioner of health shall monitor compliance with the requirements governing ICFs/MR in subdivisions 2 to 14.

 

Subd. 2. [CONSUMER HEALTH.] The license holder is responsible for meeting a consumer's health service needs assigned to the license holder in the individual service plan and for bringing a consumer's health needs, as discovered by the license holder, promptly to the attention of the consumer, the consumer's legal representative, and the case manager.


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Subd. 3. [FIRST AID.] When the license holder is providing direct service and supervision to a consumer who requires a 24-hour plan of care and receives services at an ICF/MR, the license holder must have available a staff person trained in first aid and cardiopulmonary resuscitation from a qualified source, as determined by the commissioner.

 

Subd. 4. [REPORTING INCIDENTS.] (a) The license holder must maintain information about and report incidents to a consumer's legal representative, other licensed caregiver, if any, and case manager within 24 hours of the occurrence, or within 24 hours of receipt of the information unless the incident has been reported by another license holder.

 

(b) When the incident involves more than one consumer, the license holder must not disclose personally identifiable information about any other consumer when making the report to each consumer's legal representative, other licensed caregiver, if any, and case manager, unless the license holder has the consent of a consumer or a consumer's legal representative.

 

(c) Within 24 hours of reporting maltreatment as required under section 626.556 or 626.557, the license holder must inform the consumer's legal representative and case manager of the report unless there is reason to believe that the legal representative or case manager is involved in the suspected maltreatment. The information the license holder must disclose is the nature of the activity or occurrence reported, the agency that received the report, and the telephone number of the commissioner of health's office of health facility complaints.

 

(d) The license holder must report a consumer's death or serious injury to the commissioner of health and the ombudsman, as required under sections 245.91 and 245.94, subdivision 2a.

 

(e) For purposes of this subdivision, "incident" means any of the following:

 

(1) serious injury as determined by section 245.91, subdivision 6;

 

(2) a consumer's death;

 

(3) any medical emergencies, unexpected serious illnesses, or accidents that require physician treatment or hospitalization;

 

(4) a consumer's unauthorized absence;

 

(5) any fires or other circumstances involving a law enforcement agency;

 

(6) physical aggression by a consumer against another consumer that causes physical pain, injury, or persistent emotional distress, including, but not limited to, hitting, slapping, kicking, scratching, pinching, biting, pushing, and spitting;

 

(7) any sexual activity between consumers involving force or coercion as defined under section 609.341, subdivisions 3 and 14; or

 

(8) a report of child or vulnerable adult maltreatment under section 626.556 or 626.557.

 

Subd. 5. [PROGRESS REVIEWS.] The license holder must participate in progress review meetings following stated time lines established in the consumer's individual service plan or as requested in writing by the consumer, the consumer's legal representative, or the case manager, at a minimum of once a year. The license holder must summarize the progress toward achieving the desired outcomes and make recommendations in a written report sent to the consumer or the consumer's legal representative and case manager before the review meeting.


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Subd. 6. [LEAVING THE RESIDENCE.] As specified in each consumer's individual service plan, each consumer requiring a 24-hour plan of care must leave the residence to participate in regular education, employment, or community activities. License holders providing services to consumers living in a licensed site must ensure that they are prepared to care for consumers whenever they are at the residence during the day because of illness, work schedules, or other reasons.

 

Subd. 7. [PROHIBITION.] The license holder must not use psychotropic medication and the use of aversive and deprivation procedures, as referenced in section 245.825 and rules promulgated under that section, as a substitute for adequate staffing, as punishment, or for staff convenience.

 

Subd. 8. [CONSUMER DATA FILE.] The license holder must maintain the following information for each consumer:

 

(1) identifying information that includes date of birth, medications, legal representative, history, medical, and other individual-specific information, and names and telephone numbers of contacts;

 

(2) consumer health information, including individual medication administration and monitoring information;

 

(3) the consumer's individual service plan. When a consumer's case manager does not provide a current individual service plan, the license holder must make a written request to the case manager to provide a copy of the individual service plan and inform the consumer or the consumer's legal representative of the right to an individual service plan and the right to appeal under section 256.045;

 

(4) copies of assessments, analyses, summaries, and recommendations;

 

(5) progress review reports;

 

(6) incidents involving the consumer;

 

(7) reports required under subdivision 4;

 

(8) discharge summary, when applicable;

 

(9) record of other license holders serving the consumer that includes a contact person and telephone numbers, services being provided, services that require coordination between two license holders, and name of staff responsible for coordination;

 

(10) information about verbal aggression directed at the consumer by another consumer; and

 

(11) information about self-abuse.

 

Subd. 9. [ACCESS TO RECORDS.] The license holder must ensure that the following people have access to the information in subdivision 8:

 

(1) the consumer, the consumer's legal representative, and anyone properly authorized by the consumer or legal representative;

 

(2) the consumer's case manager; and

 

(3) staff providing direct services to the consumer unless the information is not relevant to carrying out the individual service plan.


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Subd. 10. [RETENTION OF CONSUMER'S RECORDS.] The license holder must retain the records required for consumers for at least three years following termination of services.

 

Subd. 11. [STAFF ORIENTATION.] (a) Within 60 days of hiring staff who provide direct service, the license holder must provide 30 hours of staff orientation. Direct care staff must complete 15 of the 30 hours of orientation before providing any unsupervised direct service to a consumer.

 

(b) The 30 hours of orientation must combine supervised on-the-job training with coverage of the following material:

 

(1) review of the consumer's service plans and risk management plan to achieve an understanding of the consumer as a unique individual;

 

(2) review and instruction on the license holder's policies and procedures, including their location and access;

 

(3) emergency procedures;

 

(4) explanation of specific job functions, including implementing objectives from the consumer's individual service plan;

 

(5) explanation of responsibilities related to sections 626.556 and 626.557, governing maltreatment reporting and service planning for children and vulnerable adults, and section 245.825, governing use of aversive and deprivation procedures;

 

(6) medication administration as it applies to the individual consumer, and when the consumer meets the criteria of having overriding health care needs, then medication administration taught by a health services professional. Staff may administer medications only after they demonstrate the ability, as defined in the license holder's medication administration policy and procedures. Once a consumer with overriding health care needs is admitted, the license holder must provide staff with remedial training as deemed necessary by the license holder and the health professional to meet the needs of that consumer. For purposes of this requirement, overriding health care needs means a health care condition that affects the service options available to the consumer because the condition requires:

 

(i) specialized or intensive medical or nursing supervision; and

 

(ii) nonmedical service providers to adapt their services to accommodate the health and safety needs of the consumer;

 

(7) consumer rights; and

 

(8) other topics necessary as determined by the consumer's individual service plan or other areas identified by the license holder.

 

(c) The license holder must document the orientation each employee receives.

 

Subd. 12. [STAFF TRAINING.] (a) The license holder must ensure that direct service staff annually complete hours of training equal to two percent of the number of hours the staff person worked. Direct service staff who have worked for the license holder for an average of at least 30 hours per week for 24 or more months must annually complete hours of training equal to one percent of the number of hours the staff person worked.

 

(b) The license holder must document the training completed by each employee.


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(c) Training must address staff competencies necessary to address the consumer's needs as identified in the consumer's individual service plan and ensure consumer health, safety, and protection of rights. Training may also include other areas identified by the license holder.

 

(d) For consumers requiring a 24-hour plan of care, the license holder must provide training in cardiopulmonary resuscitation from a qualified source determined by the commissioner if the consumer's health needs as determined by the consumer's physician indicate trained staff would be necessary to the consumer.

 

Subd. 13. [POLICIES AND PROCEDURES.] The license holder must develop and implement the following policies and procedures:

 

(1) psychotropic medication monitoring when the consumer is prescribed a psychotropic medication, including the use of the psychotropic medication use checklist. If the responsibility for implementing the psychotropic medication use checklist has not been assigned in the individual service plan and the consumer lives in a licensed site, the residential license holder must be designated;

 

(2) criteria for admission or service initiation developed by the license holder;

 

(3) policies and procedures that promote continuity and quality of consumer supports by ensuring:

 

(i) continuity of care and service coordination, including provisions for service termination, temporary service suspension, and efforts made by the license holder to coordinate services with other vendors who also provide support to the consumer. The policy must include the following requirements:

 

(A) the license holder must notify the consumer or consumer's legal representative and the consumer's case manager in writing of the intended termination or temporary service suspension and the consumer's right to seek a temporary order staying the termination or suspension of service according to the procedures in section 256.045, subdivision 4a, or subdivision 6, paragraph (c);

 

(B) notice of the proposed termination of services, including those situations that began with a temporary service suspension, must be given at least 60 days before the proposed termination is to become effective;

 

(C) the license holder must provide information requested by the consumer or consumer's legal representative or case manager when services are temporarily suspended or upon notice of termination;

 

(D) use of temporary service suspension procedures are restricted to situations in which the consumer's behavior causes immediate and serious danger to the health and safety of the individual or others;

 

(E) prior to giving notice of service termination or temporary service suspension, the license holder must document actions taken to minimize or eliminate the need for service termination or temporary service suspension; and

 

(F) during the period of temporary service suspension, the license holder will work with the appropriate county agency to develop reasonable alternatives to protect the individual and others; and

 

(ii) quality services measured through a program evaluation process including regular evaluations of consumer satisfaction and sharing the results of the evaluations with the consumers and legal representatives.

 

Subd. 14. [CONSUMER FUNDS.] (a) The license holder must ensure that consumers retain the use and availability of personal funds or property unless restrictions are justified in the consumer's individual service plan.


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(b) The license holder must ensure separation of consumer funds from funds of the license holder, the program, or program staff.

 

(c) Whenever the license holder assists a consumer with the safekeeping of funds or other property, the license holder must have written authorization to do so by the consumer or the consumer's legal representative, and the case manager. In addition, the license holder must:

 

(1) document receipt and disbursement of the consumer's funds or the property;

 

(2) annually survey, document, and implement the preferences of the consumer, consumer's legal representative, and the case manager for frequency of receiving a statement that itemizes receipts and disbursements of consumer funds or other property; and

 

(3) return to the consumer, upon the consumer's request, funds and property in the license holder's possession subject to restrictions in the consumer's individual service plan, as soon as possible, but no later than three working days after the date of the request.

 

(d) License holders and program staff must not:

 

(1) borrow money from a consumer;

 

(2) purchase personal items from a consumer;

 

(3) sell merchandise or personal services to a consumer;

 

(4) require a consumer to purchase items for which the license holder is eligible for reimbursement; or

 

(5) use consumer funds in a manner that would violate requirements under this subdivision.

 

Sec. 4. Minnesota Statutes 2002, section 245A.02, subdivision 14, is amended to read:

 

Subd. 14. [RESIDENTIAL PROGRAM.] "Residential program" means a program that provides 24-hour-a-day care, supervision, food, lodging, rehabilitation, training, education, habilitation, or treatment outside a person's own home, including a nursing home or hospital that receives public funds, administered by the commissioner, to provide services for five or more persons whose primary diagnosis is mental retardation or a related condition or mental illness and who do not have a significant physical or medical problem that necessitates nursing home care; a program in an intermediate care facility a board and lodging or supervised living facility for four or more persons with mental retardation or a related condition that is not an ICF/MR; a nursing home or hospital that was licensed by the commissioner on July 1, 1987, to provide a program for persons with a physical handicap that is not the result of the normal aging process and considered to be a chronic condition; and chemical dependency or chemical abuse programs that are located in a hospital or nursing home and receive public funds for providing chemical abuse or chemical dependency treatment services under chapter 254B. Residential programs include home and community-based services for persons with mental retardation or a related condition that are provided in or outside of a person's own home.

 

Sec. 5. Minnesota Statutes 2002, section 245A.02, is amended by adding a subdivision to read:

 

Subd. 20. [ICF/MR.] For purposes of this chapter, ICF/MR means an intermediate care facility for persons with mental retardation or related conditions as defined in section 256B.055, subdivision 12, paragraph (d).


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Sec. 6. Minnesota Statutes 2002, section 245A.03, is amended by adding a subdivision to read:

 

Subd. 1a. [LICENSING JURISDICTION; MINIMIZING DUPLICATION OF AGENCY LICENSING ACTIVITIES.] (a) To minimize the duplication of licensing activities between the commissioners of human services and health related to ICFs/MR and residential programs licensed by the commissioner of human services that also have a supervised living facility class A license issued by the commissioner of health, the commissioners' jurisdiction over licensing activities is determined under this subdivision.