Journal of the House - 57th Day - Sunday, May 17, 2009

A quorum was present.

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

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REPORTS OF CHIEF CLERK

S. F. No. 1623 and H. F. No. 1825, which had been referred to the Chief Clerk for comparison, were examined and found to be identical.

Urdahl moved that S. F. No. 1623 be substituted for H. F. No. 1825 and that the House File be indefinitely postponed. The motion prevailed.

SECOND READING OF SENATE BILLS

S. F. No. 1623 was read for the second time.

INTRODUCTION AND FIRST READING OF HOUSE BILLS

The following House Files were introduced:

Falk; Greiling; Hausman; Lieder; Johnson; Mahoney; Atkins; Slocum; Benson; Hilty; Anzelc; Kahn; Murphy, E.; Hornstein; Hosch; Ward; Knuth; Lesch; Solberg; Davnie; Clark; Eken; Sailer; Bly; Carlson; Peterson; Otremba; Koenen; Mullery; Nelson; Lillie; Persell; Slawik and Haws introduced:

H. F. No. 2395, A bill for an act relating to state government; repealing unallotment authority; repealing Minnesota Statutes 2008, section 16A.152, subdivision 4.

The bill was read for the first time and referred to the Committee on Rules and Legislative Administration.

Johnson and Atkins introduced:

H. F. No. 2396, A bill for an act relating to telecommunications; amending regulation of cable communications systems; providing regulation of state-authorized video service providers; amending Minnesota Statutes 2008, sections 238.02, by adding subdivisions; 238.03; proposing coding for new law in Minnesota Statutes, chapter 238.

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

Slawik introduced:

H. F. No. 2397, A bill for an act relating to education; requiring reports of financial and property losses involving theft in public schools; proposing coding for new law in Minnesota Statutes, chapter 123B.

The bill was read for the first time and referred to the Committee on K-12 Education Policy and Oversight.

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Urdahl introduced:

H. F. No. 2398, A bill for an act relating to capital improvements; authorizing the issuance of state bonds; appropriating money for Bertram Chain of Lakes Regional Park.

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

Mahoney, Urdahl, Mariani, Johnson and Dean introduced:

H. F. No. 2399, A bill for an act relating to capital improvements; authorizing the sale and issuance of state bonds; appropriating money for a grant to the city of St. Paul for a regional baseball facility.

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

Morrow introduced:

H. F. No. 2400, A bill for an act relating to taxation; providing a property tax credit for agricultural property used in a farm operation that has incurred economic losses due to the H1N1 virus; proposing coding for new law in Minnesota Statutes, chapter 273.

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

Gunther; Torkelson; Urdahl; Marquart; Magnus; Kelly; Cornish; Anderson, P.; Hamilton and Davids introduced:

H. F. No. 2401, A bill for an act relating to agriculture; appropriating money for grants to certain pork producers.

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

Gardner and Anzelc introduced:

H. F. No. 2402, A bill for an act relating to commerce; regulating the purchase, return, and collection for recycling of lead acid batteries; modifying certain charges; amending Minnesota Statutes 2008, sections 325E.115, subdivision 1; 325E.1151, subdivisions 1, 3, 4.

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

Dettmer; Reinert; Anderson, B.; Severson; Newton; Shimanski; Magnus; Hamilton; Lieder; Drazkowski and Seifert introduced:

H. F. No. 2403, A bill for an act relating to the legislature; proposing an amendment to the Minnesota Constitution, article IV, section 4; providing for temporary successors to members of the legislature called into active military service; providing for implementing statutory language; proposing coding for new law in Minnesota Statutes, chapter 3.

The bill was read for the first time and referred to the Committee on State and Local Government Operations Reform, Technology and Elections.

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Brod, Emmer, Buesgens, Dean, Zellers, Gunther, Peppin, Shimanski, Dettmer, Drazkowski, Gottwalt, Sanders, Loon, Hamilton and Torkelson introduced:

H. F. No. 2404, A bill for an act relating to taxes; individual income; allowing an additional personal exemption and providing an alternate even rate tax; amending Minnesota Statutes 2008, section 290.01, subdivision 19b, as amended; proposing coding for new law in Minnesota Statutes, chapter 290.

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

Reinert; Dettmer; Newton; Severson; Anderson, B.; Lieder; Norton; Ruud; Jackson; Rosenthal and Sterner introduced:

H. F. No. 2405, A bill for an act relating to the legislature; proposing an amendment to the Minnesota Constitution, article IV, section 4; providing for temporary successors to members of the legislature called into active military service; providing for implementing statutory language; proposing coding for new law in Minnesota Statutes, chapter 3.

The bill was read for the first time and referred to the Committee on State and Local Government Operations Reform, Technology and Elections.

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

RECESS

RECONVENED

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

There being no objection, the order of business reverted to Petitions and Communications.

PETITIONS AND COMMUNICATIONS

The following communications were received:

STATE OF MINNESOTA

OFFICE OF THE GOVERNOR

SAINT PAUL 55155

May 14, 2009

The Honorable Margaret Anderson Kelliher

Speaker of the House of Representatives

The State of Minnesota

Dear Speaker Kelliher:

Please be advised that I have received, approved, signed, and deposited in the Office of the Secretary of State Chapter No. 79, House File No. 1362, the omnibus health and human services bill, with the exception of the following line item veto:

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Page 373, line 11: A $381,081,000 appropriation for fiscal year 2011 for General Assistance Medical Care grants.

The rate of growth in health and human services spending is forecasted to grow by approximately 15 percent in the next biennium and approximately 30 percent in the following biennium, and that rate is unsustainable. In the 2010-2011 biennium, my budget recommendations for health and human services saved roughly $1.67 billion in the general fund. The budget adopted by the legislature in this bill saves substantially less — $613.4 million. I encourage legislators to continue working next session to slow the growth in the state's human services spending.

The impact of this item veto and related, anticipated unallotments will not occur immediately. As a result, the legislature will have an opportunity to address this change further if it chooses. Additionally, many individuals now eligible for GAMC may be eligible under the MinnesotaCare program.

Although I have approved this bill, significant concerns remain regarding provisions prohibiting a special transportation broker, as well as the provisions related to the automatic renewal of MinnesotaCare eligibility.

I am also disappointed in the county human services redesign provisions contained in the bill. They are timid and lack boldness. Counties can already do multi-county human services delivery, program by program, under current law. The bill's requirements for multiple binding agreements with the state simply add complexity and bureaucratic structure to the current process. I hope there will be legislative attention yet this session to improve upon the county human services redesign in the bill as well as other troubling provisions in the bill.

Sincerely,

Tim Pawlenty

Governor

MOTION TO OVERRIDE LINE ITEM VETO

Huntley moved that page 373, article 13, section 3, subdivision 6, line 11, of Chapter No. 79, H. F. No. 1362, be now reconsidered and repassed, the objections of the Governor notwithstanding, pursuant to Article IV, Section 23, of the Constitution of the state of Minnesota.

CALL OF THE HOUSE

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

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

Madam Speaker:

I hereby announce that the Senate refuses to concur in the House amendments to the following Senate File:

S. F. No. 1009, A bill for an act relating to public safety; clarifying the prostitution penalty enhancement provision for repeat offenders; broadening the prostitution in a public place crime; making driving records relating to prostitution offenses public for repeat offenders and ensuring that they are available to law enforcement for first-time offenders; amending Minnesota Statutes 2008, sections 609.321, subdivision 12; 609.324, subdivisions 2, 3, 5.

The Senate respectfully requests that a Conference Committee be appointed thereon. The Senate has appointed as such committee:

Senators Torres Ray, Higgins and Ingebrigtsen.

Said Senate File is herewith transmitted to the House with the request that the House appoint a like committee.

Colleen J. Pacheco, First Assistant Secretary of the Senate

Lesch moved that the House accede to the request of the Senate and that the Speaker appoint a Conference Committee of 3 members of the House to meet with a like committee appointed by the Senate on the disagreeing votes of the two houses on S. F. No. 1009. The motion prevailed.

Madam Speaker:

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

S. F. No. 657.

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

Colleen J. Pacheco, First Assistant Secretary of the Senate

CONFERENCE COMMITTEE REPORT ON S. F. NO. 657

A bill for an act relating to energy; providing direction for the use of federal stimulus money for energy programs; appropriating money; proposing coding for new law in Minnesota Statutes, chapter 216C.

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May 15, 2009

The Honorable James P. Metzen

President of the Senate

The Honorable Margaret Anderson Kelliher

Speaker of the House of Representatives

We, the undersigned conferees for S. F. No. 657 report that we have agreed upon the items in dispute and recommend as follows:

That the House recede from its amendments and that S. F. No. 657 be further amended as follows:

Delete everything after the enacting clause and insert:

"ARTICLE 1

DEFINITIONS; LEGISLATIVE NOTICE

Section 1. FEDERAL STIMULUS FUNDING.

Subdivision 1. Definitions. For the purposes of articles 1 to 6, the following terms have the meanings given them.

(a) "Act" means the American Recovery and Reinvestment Act of 2009, Public Law 111-5, unless the reference is to "this act," which refers to articles 1 to 7.

(b) "Commissioner" means the commissioner of commerce.

(1) energy efficiency and conservation block grants authorized under subtitle E of title V of the federal Energy Independence and Security Act of 2007, United States Code, title 42, section 17151, et seq.;

(2) the Weatherization Assistance Program authorized under part A of title IV of the federal Energy Conservation and Production Act, United States Code, title 42, section 6861, et seq.; and

(3) the State Energy Program authorized under part D of title III of the federal Energy Policy and Conservation Act, United States Code, title 42, section 6321, et seq.

(d) "Windows" or "energy-efficient windows" means new or replacement windows that are Energy Star qualified under federal guidelines or for windows for nonresidential structures it means windows of reasonably similar energy performance to Energy Star windows.

Subd. 2. Stimulus funding allocation. To the extent consistent with the act and other federal law and regulations, stimulus funding must be allocated and expended as provided under this act.

Subd. 3. Administrative costs. The commissioner may spend no more than five percent of the funds expended on programs under articles 2 to 4 for administrative costs of the programs.

Subd. 4. Contractors; bidding. Contracts funded in whole or in part under articles 2 to 4 must, to the extent practicable, ensure that bidding contractors are qualified and participate in available apprentice and training programs for all work performed. Bidding for contracts must, to the extent practicable, use the process established in Minnesota Statutes, section 16C.16, subdivisions 4, 5, 6, and 7, except that subdivision 12 does not apply.

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Sec. 2. LEGISLATIVE NOTICE.

The commissioner shall notify the chairs and ranking minority members of the senate and house of representatives committees with primary jurisdiction over energy policy and finance when releasing a request for proposals or awarding a grant greater than $25,000 for a grant program authorized under articles 2 to 4.

ARTICLE 2

ENERGY EFFICIENCY

Section 1. WEATHERIZATION.

Subdivision 1. Priority. Priority must be given to serving the largest number of new weatherization clients consistent with federal eligibility requirements.

Subd. 2. Rental units. The commissioner shall attempt to increase the number of low-income rental units weatherized.

Subd. 3. Shelters. A shelter, as defined in Code of Federal Regulations, title 10, section 440.3, is eligible to receive weatherization assistance under this section.

Subd. 4. Income eligibility. Income eligibility limits for participants in the weatherization assistance program shall be the highest level allowed under federal law. The commissioner shall in a timely manner take all actions necessary to implement this requirement.

Subd. 5. Solar heat. An individual who receives assistance to provide solar heat through the Renewable Energy Equipment Program is eligible for weatherization assistance under this section, provided that the individual meets all other eligibility requirements for receiving weatherization assistance.

Subd. 6. Federal waiver. The commissioner shall apply for a waiver or otherwise seek authority from the United States Department of Energy to use funds under this section to weatherize abandoned and foreclosed residential properties acquired and rehabilitated with funds provided through the federal Neighborhood Stabilization Program.

Subd. 7. Payments authorized. Notwithstanding Minnesota Statutes, section 16A.15, subdivision 3, the commissioner may make payment to a weatherization service provider for allowable and eligible costs incurred for planning, capacity expansion, workforce mobilization, and training activities. Payment may be made for costs incurred on or after the effective date of an amendment to the weatherization service provider's contract that obligates the provider to comply with the requirements of the act.

Sec. 2. RESIDENTIAL ENERGY EFFICIENCY PROGRAMS.

The commissioner shall coordinate with the Minnesota Housing Finance Agency to use stimulus funds in conjunction with the Minnesota Housing Finance Agency's financing programs, including, but not limited to, loans, grants, and rebates, and additional programs the Minnesota Housing Finance Agency or other entities may develop to finance energy efficiency improvements in dwellings, including the purchase and installation of energy efficient windows. Financing programs for which there is market demand must be prioritized.

Sec. 3. INNOVATIVE ENERGY RESIDENTIAL EFFICIENCY PROGRAM.

Subdivision 1. Program. The commissioner shall make a grant to a city of the first class located in the service area of Minnesota Power for an innovative residential energy efficiency program that must coordinate its activities with the state energy program, local government unit, weatherization program, utility conservation improvement

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program, and private nonprofit funding sources. Stimulus funds must be matched $1 for every $4 of stimulus funds granted under this section and are available to the extent of the match. The program must include the following elements:

(1) provision of basic residential energy conservation measures;

(2) provision of more comprehensive residential energy conservation measures, including extensive retrofits and appliance upgrades;

(3) a plan to establish a revolving loan fund so that the program is sustainable over time; and

(4) innovative financing options allowing residents to finance energy efficiency improvements, at least in part, with energy savings.

Subd. 2. Report. By January 15, 2010, and October 30, 2010, the city must submit a report measuring and assessing the program's effectiveness and energy savings to the commissioner and the chairs and ranking minority members of the senate and house of representatives committees with primary jurisdiction over energy policy and finance.

Sec. 4. SMALL CITY ENERGY EFFICIENCY GRANT.

Subdivision 1. Program. The commissioner shall make a grant for an innovative residential energy efficiency program in a small rural city with a population under 4,000 located in the service area of Minnesota Power that is currently working with that utility, the county housing and redevelopment authority, and other state and local housing organizations to enhance energy efficiency for residents and businesses. Stimulus funds must be matched $1 for every $4 of stimulus funds granted under this section and are available to the extent of the match. The program must include the following elements:

(1) provision of basic residential energy conservation measures;

(2) provision of more comprehensive residential energy conservation measures, including extensive retrofits and appliance upgrades;

(3) a plan to establish a revolving loan fund so that the program is sustainable over time; and

(4) innovative financing options allowing residents to finance energy efficiency improvements, at least in part, with energy savings.

Sec. 5. OUTREACH ACTIVITIES TO INCREASE RESIDENTIAL PARTICIPATION IN ENERGY EFFICIENCY ACTIVITIES.

In order to maximize the number of new households participating in programs delivering residential energy conservation services under this act, the commissioner shall use stimulus funds to award grants on a competitive basis by September 1, 2009, to one or more organizations that are experienced in conducting outreach activities to partner with nonprofit and community organizations. Outreach activities must include, without limitation, households in low-income areas, small cities, and rural communities, and must reach all regions of the state. The methods used to contact households may include, but are not limited to, direct contact with households, advertising

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in traditional and nontraditional media, distribution of literature, presence at community events, partnering with community organizations, and other innovative measures. The commissioner may contract to coordinate outreach efforts with a community-based organization with demonstrated regional or statewide capacity, including an organization established under Minnesota Statutes, section 216C.385.

Sec. 6. ENERGY EFFICIENCY AND CONSERVATION BLOCK GRANTS TO LOCAL GOVERNMENTS.

The commissioner shall award grants to local units of government to enhance energy efficiency and reduce energy use. Energy efficiency and conservation block grant funds may be used for grants for activities including, but not limited to, planning, consultant services, energy audits, implementing energy-efficient building codes and inspection services, and energy efficiency renovations, including window replacement, street lighting, and the installation of renewable energy devices used in public buildings. Grants may only be made to local units of government not receiving direct federal energy efficiency and conservation block grant stimulus funding.

Sec. 7. LOCAL GOVERNMENT AND SCHOOL DISTRICT RENOVATIONS.

(a) The commissioner shall award grants to local governments and school districts to make energy efficiency improvements in existing local government and school district facilities. The use of stimulus funds must be coordinated with the local public building enhanced energy efficiency program under Minnesota Statutes, section 216C.43, or other available financing programs.

(b) The commissioner shall prioritize lighting upgrades, energy-efficient windows, energy recommissioning, and other cost-effective energy projects that are ready for immediate implementation.

(c) The commissioner may require a local government or school district, as a condition of receiving a grant, to commit to implement future activities, including but not limited to staff training, that are designed to create additional energy or operating savings to the local government.

(d) The commissioner shall coordinate with the Department of Education to prioritize school district projects for funding under this section, consistent with the principles of statewide geographic distribution of projects, optimized energy savings, and an improved learning environment for schoolchildren.

Sec. 8. STATE GOVERNMENT BUILDING RENOVATIONS.

(a) The commissioner shall use stimulus funds to renovate state government buildings to enhance energy efficiency. The commissioner and the commissioner of administration shall select, fund, and implement state government building renovation projects using federal stimulus money. Priority must be given to lighting upgrades, window repair and replacement with energy-efficient windows, energy recommissioning, and other cost-effective energy projects that are ready for immediate implementation.

(b) In addition to other uses, funds may be used to advance public building enhanced energy efficiency program projects under Minnesota Statutes, section 16B.322, and for grants for a portion of costs incurred by state agencies in implementing energy efficiency improvements not part of that program.

(c) Funds may be used to develop a system and procedures to set energy-reduction goals for state buildings, to automate utility bill data and analysis, to develop a system for reporting monthly energy use relative to these state building energy-reduction goals, and to install individual metering devices for separate buildings.

(d) The Department of Administration may require a state agency, as a condition of receiving stimulus funds under this section, to commit to implement future energy-savings activities, including but not limited to staff training, that are designed to create additional energy or operating savings to the state agency.

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(e) By January 15, 2011, and annually thereafter, the commissioner, in consultation with the commissioner of administration, must issue a report to the chairs and ranking minority members of the senate and house of representatives committees having jurisdiction over energy policy and finance on the activities and energy savings under this section.

Sec. 9. Minnesota Statutes 2008, section 16B.322, is amended by adding a subdivision to read:

Subd. 4a. Financing agreement. The commissioner of administration may, in connection with a financing agreement, covenant in a master lease-purchase agreement that the state will abide by the terms and provisions that are customary in net lease or lease-purchase transactions including, but not limited to, covenants providing that the state:

(1) will maintain insurance as required under the terms of the lease agreement;

(2) is responsible to the lessor for any public liability or property damage claims or costs related to the selection, use, or maintenance of the leased equipment, to the extent of insurance or self-insurance maintained by the lessee, and for costs and expenses incurred by the lessor as a result of any default by the lessee;

(3) authorizes the lessor to exercise the rights of a secured party with respect to the equipment subject to the lease in the event of default by the lessee and, in addition, for the present recovery of lease rentals due during the current term of the lease as liquidated damages.

Sec. 10. Minnesota Statutes 2008, section 16B.322, is amended by adding a subdivision to read:

Subd. 4b. Master lease-purchase agreements not debt. A tax-exempt lease-purchase agreement related to a financing agreement does not constitute or create a general or moral obligation or indebtedness of the state in excess of the money from time to time appropriated or otherwise available for the payment of rent coming due under the lease, and the state has no continuing obligation to appropriate money for the payment of rent or other obligations under the lease. Rent due under a master lease-purchase agreement during a current lease term for which money has been appropriated is a current expense of the state.

Sec. 11. Minnesota Statutes 2008, section 16B.322, is amended by adding a subdivision to read:

Subd. 4c. Budget offset. The commissioner of finance shall reduce the operating budgets of state agencies that use the master lease-purchase program under a financial agreement. The amount of the reduction is the amount sufficient to make the actual master lease payments.

Sec. 12. ENERGY TECHNOLOGY TRANSFER CENTER.

The commissioner shall award a grant to a nonprofit organization with extensive experience in the delivery of energy-efficient programs and technical analysis to develop an energy technology transfer center in this state.

Sec. 13. NATIONAL ENERGY EFFICIENCY CENTER.

(a) The commissioner shall develop a plan for a national energy efficiency center in this state to test energy efficiency equipment and systems to measure actual energy savings performance, to provide an ongoing assessment of energy efficiency best practices, and to coordinate with appropriate public and private entities to disseminate information and provide training on technology developments and best practices. In developing a plan, the commissioner shall collaborate with stakeholders, including but not limited to, the Center for Energy and the Environment, the Minnesota Center for Engineering and Manufacturing Excellence, and the Minnesota Technical Assistance Program at the University of Minnesota.

(b) The commissioner shall apply for a grant to create a national energy efficiency center in Minnesota if the federal Department of Energy or other entity makes funding available for that purpose.

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ARTICLE 3

RENEWABLE ENERGY

Section 1. DEFINITIONS.

For the purposes of articles 3 and 4:

(1) "renewable energy" or "renewable energy system" means an energy technology that generates electricity or thermal energy from the following sources:

(i) solar;

(ii) wind;

(iii) hydroelectric with a capacity of less than 100 megawatts;

(iv) hydrothermal;

(v) hydrogen, provided that after January 1, 2010, the hydrogen must be generated from the resources listed in this item;

(vi) biomass, which includes, without limitation, landfill gas; rotating woody crops; crop residues; an anaerobic digester system; biomass gasification; the predominantly organic components of wastewater effluent, sludge, or related by-products from publicly owned treatment works, but not including incineration of (A) wastewater sludge or related by-products from publicly owned treatment works; (B) mixed municipal solid waste; or (C) refuse-derived fuel from mixed municipal solid waste;

(vii) a district energy system fueled primarily by biomass;

(2) "solar energy" has the meaning given to "qualifying solar energy project" in section 216B.2411, subdivision 2, paragraph (d);

(3) "solar electric" has the meaning given to "qualifying solar electric project" in section 216B.2411, subdivision 2, paragraph (f), except that the 100-kilowatt peak generating capacity limit does not apply; and

(4) "solar thermal" has the meaning given to "qualifying solar thermal project" in section 216B.2411, subdivision 2, paragraph (e).

Sec. 2. RENEWABLE ELECTRIC GENERATION AND GEOTHERMAL FACILITY REBATES.

(a) The commissioner shall award rebates to qualifying facilities that generate electricity from renewable energy or provide heating and cooling from a geothermal system and that:

(1) begin operation after July 1, 2009; and

(2) provide electricity or heating and cooling to:

(i) a homeowner's primary residence; or

(ii) a business with 20 or fewer full-time employees.

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(b) The owner of a qualifying facility may apply to the commissioner for a rebate of the lesser of $10,000 for homeowners or $25,000 for businesses or 35 percent of the cost of the qualifying facility, including installation costs.

(c) The commissioner shall award rebates only from funds appropriated for that purpose and to the extent of those appropriations. Rebates must be made to eligible applicants in the order of the time of receipt of a complete application.

(d) For purposes of this section, "qualifying facility" means an electric generation facility with a capacity of less than 40 kilowatts that generates electricity from a renewable energy source or a geothermal system that provides heating and cooling.

Sec. 3. SOLAR REBATE PROGRAM.

The commissioner shall award rebates to homeowners and businesses that install solar energy projects.

Sec. 4. SOLAR CITIES PROGRAM.

The commissioner shall award grants to local units of government for the installation of large and small-scale solar electric or thermal projects, including innovative energy storage technology, in a geographically-concentrated area. The project must leverage funds from the federal Department of Energy to demonstrate the impacts of these projects on the electric grid, and the costs and benefits to ratepayers. The commissioner may develop matching requirements for these solar projects in order to maximize job creation and renewable energy development.

Sec. 5. SCHOOL DISTRICT AND LOCAL GOVERNMENT RENEWABLE ENERGY GRANT PROGRAM.

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

(b) "Local government" means a public school district, home rule charter or statutory city, county, regional government, park district, port authority, or town.

Subd. 2. Program established. The commissioner shall award grants to units of local government to finance the purchase and installation of a renewable energy system or a geothermal heating and cooling system under this section.

Subd. 3. Grant proposals. The commissioner shall publish in the State Register a request for proposals from local governments for a grant under this section. Within 60 days after the deadline for receipt of proposals, the commissioner shall select grant proposals based on the following criteria:

(1) the reliability and cost-effectiveness of the renewable technology to be installed under the proposal, including integration of energy storage;

(2) the extent to which the proposal effectively integrates with the conservation and energy efficiency programs of the energy utilities serving the local government or school district;

(3) the extent to which the local government or school district has maximized other cost-effective energy efficiency and conservation improvements;

(4) the total life-cycle energy use and greenhouse gas emissions reductions per dollar of installed cost;

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(5) the geographic distribution of grant recipients throughout the state;

(6) the percentage of total project cost requested;

(7) the extent to which the proposal uses parts manufactured or produced in the state in the assembly of a final product; and

(8) other criteria the commissioner may determine to be necessary and appropriate.

Subd. 4. Educational programming. A school district must integrate information about the renewable energy system for which a grant is received under this section in its educational programming.

Subd. 5. Grant terms. The maximum grant to a local government under this section may not exceed:

(1) for solar electric projects greater than or equal to 100 kilowatts rated capacity, the lesser of 40 percent of total project cost or $200,000;

(2) for solar electric projects less than 100 kilowatts rated capacity, the lesser of 40 percent of total project cost or $100,000;

(3) for wind projects greater than or equal to 40 kilowatts rated capacity, the lesser of 35 percent of total project cost or $150,000;

(4) for wind projects less than 40 kilowatts rated capacity, the lesser of 35 percent of total project cost or $25,000;

(5) for geothermal energy projects, the lesser of 35 percent of total project cost or $100,000;

(6) for solar thermal projects, the lesser of 50 percent of total project cost or $75,000; or

(7) for combined heat and power projects and district energy projects, the lesser of 35 percent of total project cost or $200,000.

Sec. 6. EMERGING RENEWABLE ENERGY INDUSTRIES GRANT PROGRAM.

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

(b) "Eligible business" means an organization that is engaged in or will engage in the manufacture of renewable energy systems, energy storage systems, or geothermal energy systems for heating and cooling, or components for renewable energy systems, energy storage systems, or geothermal energy systems for heating and cooling.

Subd. 2. Program established. The commissioner shall use stimulus funds under this section to award grants to an eligible business.

Subd. 3. Grant purpose. The commissioner may make grants to eligible businesses to assist in the development of renewable energy systems, energy storage systems, geothermal energy systems for heating and cooling, and businesses that manufacture components for these types of energy systems in this state.

Subd. 4. Applications. An applicant shall prepare and submit to the commissioner a written proposal detailing how the applicant will meet the purpose of the grant program and will meet the criteria listed in subdivision 5. An applicant must submit information that demonstrates the financial viability of the eligible business.

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Subd. 5. Selection criteria. When awarding grants, the commissioner shall consider whether the applicant's proposal will:

(1) help establish Minnesota as a center for the manufacturing of renewable energy, energy storage, or geothermal system parts and systems;

(2) leverage both private funds and other public funds, including federal programs;

(3) develop renewable energy, energy storage, or geothermal technology supplier activity in this state;

(4) increase manufacturing that promotes or advances the green economy, as defined in section 116J.437, subdivision 1; and

(5) create jobs that will contribute to the green economy as defined in section 116J.437, subdivision 1, including jobs in rural areas and areas with high unemployment.

Sec. 7. CONVERSION OF FORMER SCHOOL TO RENEWABLE ENERGY BUSINESS CENTER.

The commissioner shall award a grant to the city of Kennedy to convert a former school building to use wind, solar, and geothermal energy and to house a renewable energy business center.

Sec. 8. SOLAR ELECTRIC INSTALLATIONS.

A contract, grant, loan, or other financial assistance for solar electric installations must to the extent practicable:

(1) require payment at the prevailing wage rate as defined in Minnesota Statutes, section 177.42;

(2) require that the installation of all listed electrical equipment is performed by licensed contractors;

(3) be awarded to the best value bidder as defined in Minnesota Statutes, chapter 16C; and

(4) require that the bid performance criteria must include, but are not limited to:

(i) the vendor's or contractor's primary place of business be located within the state;

(ii) a description of the vendor's or contractor's experience installing solar systems and the quality of those installations; and

(iii) the possession by the vendor's or contractor's key personnel of an installer's certification from a nationally recognized solar certification body.

ARTICLE 4

COMMERCIAL AND INDUSTRIAL SECTOR ENERGY PROJECTS

Section 1. GRANTS TO COMMERCIAL AND INDUSTRIAL FACILITIES.

(a) The commissioner shall award a grant to a port authority located in the electric service area of the electric utility with the largest number of commercial and industrial customers in this state for a program to provide for the design, financing, and installation of energy efficiency improvements and renewable energy systems in commercial facilities, industrial facilities, and facilities owned by a nonprofit organized under section 501(c)(3) of the Internal Revenue Code. Program financing must include a revolving loan fund component.

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(b) Grant recipients may enter into agreements necessary to develop and implement a program under this section. A grant recipient may use up to two percent of the grant award for administrative costs of the energy project.

(c) A utility participating in projects receiving a grant under this section is entitled to claim the project's energy savings toward its energy savings goal under Minnesota Statutes, section 216B.241, subdivision 1c.

Sec. 2. ENERGY PROGRAMS IN COMMERCIAL AND INDUSTRIAL BUILDINGS.

(a) The commissioner shall award grants to economic development authorities or to owners of commercial and industrial facilities and facilities owned by a nonprofit organized under section 501(c)(3) of the Internal Revenue Code for the purpose of:

(1) installing energy efficiency improvements;

(2) installing devices that use renewable energy sources to generate electricity or to heat or cool a building; or

(3) a geothermal system for heating and cooling.

(b) To be eligible to receive a grant, a project funded under this section must begin operation after July 1, 2009.

(d) The commissioner shall make a grant to a county economic development authority for development of a biomass energy facility, which has completed an economic and technical feasibility study, including a market potential and cellulosic feedstock analysis. The county in which the facility will be located must include an investor-owned utility, municipal utility, and cooperative electric association, and it must have adopted an essential services and transmission services ordinance as of May 15, 2009.

(e) Grants may also be made to improve the energy efficiency of facilities to displace fossil fuel energy inputs with energy derived from renewable resources via anaerobic digestion, biomass gasification, or other technologies, for combined heat and power or district energy system projects; or for projects using hydrothermal or geothermal energy in an integrated system for cooling, heating, and generating electricity. Grants may not be made under this paragraph for projects involving the combustion of mixed municipal solid waste or refuse-derived fuel from mixed municipal solid waste.

(f) The maximum grant award under this section is $500,000.

(g) When awarding grants under this section the commissioner shall consider:

(1) job retention and creation;

(2) improved energy efficiency and increased renewable energy production capacity;

(3) coordination with and leveraging of other resources to increase the total benefits derived from stimulus funding;

(4) timely implementation of funded activities;

(5) long-term sustainability of benefits derived from stimulus funds;

(6) geographic distribution across the state;

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(7) compliance with the disadvantaged business enterprise requirements in Minnesota Statutes, section 16C.16, subdivisions 4, 5, 6, and 7, except that subdivision 12 does not apply; and

(8) ensuring that projects are cost effective and maximize energy savings per dollar of stimulus funding expended.

ARTICLE 5

MISCELLANEOUS

Section 1. TRAINING AND WORKFORCE DEVELOPMENT.

Subdivision 1. Training plan and procedures. (a) The commissioner, in conjunction with the Department of Employment and Economic Development, the Office of Higher Education, and Minnesota State Colleges and Universities shall develop and implement a plan and procedures to:

(1) train energy professionals needed to implement the energy programs described in articles 2 to 4, including but not limited to energy auditors, energy managers, and building operators;

(2) coordinate, oversee, and monitor the training and certification of energy professionals;

(3) allocate stimulus funding for the purposes of clauses (1) and (2) and to training providers; and

(4) provide energy code compliance and enforcement training necessary to comply with section 410 of the American Recovery and Reinvestment Act of 2009, Public Law 111-5.

(b) Training strategies must be designed to meet the wide range of facilities managers and building sizes and types, and must protect the occupational health and safety of workers employed on these energy projects. Technical skills training must include insulation, air sealing, and mechanical work. Training may include an on-the-job component where the trainee travels to job sites with trained crews.

(1) train individuals already employed in implementing energy programs;

(2) recruit individuals to be trained to perform work in energy projects using stimulus funding who are unemployed, especially targeting communities experiencing disproportionately high rates of unemployment, including, but not limited to, low-income, youth, rural, or tribal communities and individuals in construction trades and crafts;

(3) ensure that the full capacity of current training providers is utilized, including, but not limited to, opportunities industrialization centers, skilled trades labor unions, tribal colleges or nonprofits working in tribal communities, community action partnerships, utility companies, higher education institutions, and nonprofit organizations with demonstrated expertise in energy efficiency;

(4) publicize job and contract opportunities through cost-effective dissemination via traditional and nontraditional media outlets, including, but not limited to, public service announcements and radio advertisements; and

(5) disseminate information about contract and employment opportunities generated by the programs. Particular effort must be made to publicize employment, job training, home energy auditing, weatherization, outreach, and other opportunities to community organizations, nongovernmental organizations, and media outlets that target disadvantaged groups, including, but not limited to, low-income, rural, tribal communities, and communities of color.

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Subd. 2. Training access and affordability. (a) Unless prohibited by federal law or rule, and notwithstanding any other training funds available or expended for energy programs, the commissioner shall ensure access to and affordability of training for low-income persons who otherwise would be unable to afford the training, by providing funding to:

(1) prepare low-income persons for residential weatherization jobs; and

(2) support job training opportunities for low-income persons in residential and commercial energy efficiency and renewable energy-related trades.

(b) Funds expended under this subdivision may not exceed the amount necessary to train persons for the total number of green jobs created. The Department of Commerce shall work with the Department of Employment and Economic Development to maximize receipt of federal stimulus funding available for training and workforce development through the Workforce Investment Act.

(c) Training funds for residential weatherization jobs must be provided to weatherization service providers to partner with apprenticeship or similar on-the-job training programs and existing training providers, including, but not limited to, state colleges, opportunities industrialization centers, skilled trades labor unions, and nonprofit organizations with historic expertise in energy efficiency.

(d) Training funds to support residential and commercial energy efficiency and renewable energy-related trades must be distributed through a competitive application process.

(e) The expenditure of funds under this subdivision must be consistent with performance goals, timeframes, and all other requirements under federal and state law governing the expenditure of federal stimulus money.

Sec. 2. ACCOUNTABILITY AND TRANSPARENCY REPORTING.

The commissioner, after compiling information supplied by the commissioners of administration, education, and employment and economic development, and the Office of Higher Education, shall report on the progress of the programs funded by this act to the house of representatives and senate committees with jurisdiction over energy finance and workforce development policy by September 1, 2009, January 15, 2010, April 1, 2010, and September 1, 2010. The report must include a complete accounting of all federal stimulus money spent on the programs funded to the extent allowable by federal law, including, but not limited to:

(1) the specific projects funded, including the building owner and project manager, and, for nonresidential projects only, the project location;

(2) for weatherization projects, the number of units weatherized, including number of rental units weatherized, energy usage information, income data, and type, cost, and funding source of the weatherization measure installed;

(3) the number of jobs retained or created by each project, including data on hiring from communities experiencing disproportionately high rates of unemployment, including, but not limited to, low-income, rural, tribal communities, and communities of color;

(4) the total calculated and actual energy savings for each project;

(5) the remaining balances in each stimulus account;

(6) the nonstimulus money leveraged by stimulus money for each project;

(7) the training courses provided, including the location and provider of courses offered, the funding source for each training course, and the total number of trainees; and

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(8) compliance with state prevailing wage, veterans, and disadvantaged business enterprise requirements.

The reports must be made available to the public on the Office of Energy Security Web site.

Sec. 3. COMPETITIVE ENERGY ACTIVITIES.

(a) The commissioner shall coordinate state and local government efforts to obtain competitive grants for energy-related purposes authorized by the American Recovery and Reinvestment Act of 2009. The commissioner shall consult with affected public or private entities, including utilities, to identify grant opportunities and develop timely grant applications to take advantage of those opportunities. The commissioner shall assess and publicize grant opportunities, assist state and local government entities to prepare grant applications, and provide other assistance the commissioner determines to be appropriate.

(b) The commissioner shall provide timely information on grant opportunities through the Minnesota Energy Information Center telephone hotline and Web site to assist the public and local units of government in accessing applications and information regarding competitive grants under this act.

ARTICLE 6

APPROPRIATIONS

Section 1. WEATHERIZATION ASSISTANCE PROGRAM APPROPRIATION.

Of the funds available to the state of Minnesota from the federal stimulus funding for the weatherization assistance program under the American Recovery and Reinvestment Act of 2009, Public Law 111-5, $131,937,411 is appropriated to the commissioner of commerce. The funds must be administered consistent with the requirements in article 2, section 1. Of this amount, $250,000 is for participation outreach activities in article 2, section 5; and $1,000,000 is for training and workforce development consistent with article 5, section 1, subdivision 2.

Sec. 2. ENERGY EFFICIENCY AND CONSERVATION BLOCK PROGRAM APPROPRIATION.

Of the funds available to the state of Minnesota from the federal stimulus funding for the Energy Efficiency and Conservation Block Grant Program under the American Recovery and Reinvestment Act of 2009, Public Law 111‑5, $10,644,100 is appropriated to the commissioner of commerce. The appropriation must be distributed as follows:

(1) $6,386,460 is for energy efficiency grants to local government in article 2, section 6; and

(2) $4,257,640 is for energy efficiency grants to local government and school district buildings consistent with the requirements in article 2, section 7.

Sec. 3. STATE ENERGY PROGRAM APPROPRIATION.

Subdivision 1. Appropriation. Of the funds available to the state of Minnesota from the federal stimulus funding for the State Energy Program under the American Recovery and Reinvestment Act of 2009, Public Law 111-5, $54,172,000 is appropriated to the commissioner of commerce. Of this amount:

(1) $8,750,000 is for energy efficiency projects in local government and school district buildings consistent with the requirements in article 2, section 7;

(2) $6,922,000 is for energy efficiency projects in state government buildings consistent with the requirements of article 2, section 8;

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(3) $7,900,000 is for residential energy efficiency programs consistent with the requirements in article 2, section 2. Of this amount, $250,000 is for participation outreach activities in article 2, section 5;

(4) $1,600,000 is for innovative energy residential efficiency programs consistent with the requirements in article 2, sections 3 and 4. Of this amount, $1,500,000 is for a program for a large city, and $100,000 is for a program for a small city;

(5) $1,000,000 is for training and workforce development consistent with article 5, section 1, subdivision 2;

(6) $1,500,000 is for training and workforce development consistent with article 5, section 1, subdivision 1;

(7) $5,000,000 is for renewable and geothermal rebates consistent with the requirements of article 3, sections 2 and 3. Of this amount, at least $3,000,000 is for solar rebates in article 3, section 3;

(8) $3,000,000 is for a grant to local units of government for solar energy projects consistent with the requirements of article 3, section 4;

(9) $6,500,000 is for grants to install renewable energy in local government and school buildings consistent with the requirements of article 3, section 5;

(10) $2,000,000 is for emerging renewable energy industries consistent with the requirements of article 3, section 6;

(11) $5,000,000 is for a grant to a port authority for energy efficiency and renewable energy in commercial and industrial buildings consistent with article 4, section 1;

(12) $4,500,000 is for commercial and industrial building energy grants for renewables and efficiency consistent with the requirements of article 4, section 2. Of this amount, $150,000 is for a grant under article 4, section 2, paragraph (d); and

(13) $500,000 is for the energy technology transfer center in article 2, section 12.

Subd. 2. Reallocation process. (a) The commissioner may reallocate funds under subdivision 1 if the United States Department of Energy does not approve a program for which funds are allocated or if the commissioner determines that:

(1) there is insufficient demand to effectively expend all funds allocated to a program;

(2) the funds as allocated are unlikely to result in achievement of the goals of the funding; or

(3) the funds as allocated are unlikely to attain results that exceed the minimum performance requirements established by the federal Department of Energy.

(b) Before reallocating funds, the commissioner shall:

(1) provide public notice of intent to reallocate funds;

(2) accept public comment on a proposed reallocation for no fewer than 15 business days; and

(3) submit a report on the proposed reallocation to the chairs and ranking minority members of the senate and house of representatives committees with primary jurisdiction over energy policy and finance. The report must include the reason for reallocation, a summary of activities and expenditures to market and stimulate demand for the program whose funds are to be reallocated, the amount to be reallocated, the program to which funds will be reallocated, and the public comments submitted.

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(c) The commissioner may reallocate funds 15 business days after submission of the report required under paragraph (b), clause (3).

ARTICLE 7

EFFECTIVE DATE

Section 1. EFFECTIVE DATE.

This act is effective the day following final enactment."

Delete the title and insert:

"A bill for an act relating to energy; providing direction for the use of federal stimulus money for energy programs; appropriating money; amending Minnesota Statutes 2008, section 16B.322, by adding subdivisions."

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

Senate Conferees: Ellen Anderson, Yvonne Prettner Solon, Gary Kubly, Steve Dille and Sandy Rummel.

House Conferees: Jeremy Kalin, Bill Hilty, Brita Sailer, Kathy Brynaert and Denny McNamara.

Kalin moved that the report of the Conference Committee on S. F. No. 657 be adopted and that the bill be repassed as amended by the Conference Committee. The motion prevailed.

S. F. No. 657, A bill for an act relating to energy; providing direction for the use of federal stimulus money for energy programs; appropriating money; proposing coding for new law in Minnesota Statutes, chapter 216C.

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

The question was taken on the repassage of the bill and the roll was called. There were 102 yeas and 32 nays as follows:

Those who voted in the affirmative were:

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

Madam Speaker:

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

S. F. No. 722.

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

Colleen J. Pacheco, First Assistant Secretary of the Senate

CONFERENCE COMMITTEE REPORT ON S. F. NO. 722

A bill for an act relating to public safety; requiring that information on persons civilly committed, found not guilty by reason of mental illness, or incompetent to stand trial be transmitted to the federal National Instant Criminal Background Check System; authorizing certain persons prohibited under state law from possessing a firearm to petition a court for restoration of this right; amending Minnesota Statutes 2008, section 624.713, subdivision 1, by adding a subdivision; proposing coding for new law in Minnesota Statutes, chapter 253B.

May 16, 2009

The Honorable James P. Metzen

President of the Senate

The Honorable Margaret Anderson Kelliher

Speaker of the House of Representatives

We, the undersigned conferees for S. F. No. 722 report that we have agreed upon the items in dispute and recommend as follows:

That the House recede from its amendment and that S. F. No. 722 be further amended as follows:

Delete everything after the enacting clause and insert:

"Section 1. [253B.24] TRANSMITTAL OF DATA TO NATIONAL INSTANT CRIMINAL BACKGROUND CHECK SYSTEM.

When a court:

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(1) commits a person under this chapter as being mentally ill, developmentally disabled, mentally ill and dangerous, or chemically dependent;

(2) determines in a criminal case that a person is incompetent to stand trial or not guilty by reason of mental illness; or

(3) restores a person's ability to possess a firearm under section 609.165, subdivision 1d, or 624.713, subdivision 4,

the court shall ensure that this information is transmitted as soon as practicable to the National Instant Criminal Background Check System.

Sec. 2. Minnesota Statutes 2008, section 624.713, subdivision 1, is amended to read:

Subdivision 1. Ineligible persons. The following persons shall not be entitled to possess a pistol or semiautomatic military-style assault weapon or, except for clause (1), any other firearm:

(1) a person under the age of 18 years except that a person under 18 may carry or possess a pistol or semiautomatic military-style assault weapon (i) in the actual presence or under the direct supervision of the person's parent or guardian, (ii) for the purpose of military drill under the auspices of a legally recognized military organization and under competent supervision, (iii) for the purpose of instruction, competition, or target practice on a firing range approved by the chief of police or county sheriff in whose jurisdiction the range is located and under direct supervision; or (iv) if the person has successfully completed a course designed to teach marksmanship and safety with a pistol or semiautomatic military-style assault weapon and approved by the commissioner of natural resources;

(2) except as otherwise provided in clause (9), a person who has been convicted of, or adjudicated delinquent or convicted as an extended jurisdiction juvenile for committing, in this state or elsewhere, a crime of violence. For purposes of this section, crime of violence includes crimes in other states or jurisdictions which would have been crimes of violence as herein defined if they had been committed in this state;

(3) a person who is or has ever been ~~confined~~ committed in Minnesota or elsewhere ~~as a~~ by a judicial determination that the person ~~who~~ is mentally ill, developmentally disabled, or mentally ill and dangerous to the public, as defined in section 253B.02, to a treatment facility, or who has ever been found incompetent to stand trial or not guilty by reason of mental illness, unless the ~~person possesses a certificate of a medical doctor or psychiatrist licensed in Minnesota, or other satisfactory proof that the person is no longer suffering from this disability~~ person's ability to possess a firearm has been restored under subdivision 4;

(4) a person who has been convicted in Minnesota or elsewhere of a misdemeanor or gross misdemeanor violation of chapter 152, or a person who is or has ever been hospitalized or committed for treatment for the habitual use of a controlled substance or marijuana, as defined in sections 152.01 and 152.02, unless the person possesses a certificate of a medical doctor or psychiatrist licensed in Minnesota, or other satisfactory proof, that the person has not abused a controlled substance or marijuana during the previous two years unless three years have elapsed since the date of conviction and, during that time, the person has not been convicted of any other such violation of chapter 152 or a similar law of another state; or a person who is or has ever been committed by a judicial determination for treatment for the habitual use of a controlled substance or marijuana, as defined in sections 152.01 and 152.02, unless the person's ability to possess a firearm has been restored under subdivision 4;

(5) a person who has been ~~confined or~~ committed to a treatment facility in Minnesota or elsewhere as by a judicial determination that the person is chemically dependent as defined in section 253B.02, unless the person has completed treatment or the person's ability to possess a firearm has been restored under subdivision 4. Property rights may not be abated but access may be restricted by the courts;

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(6) a peace officer who is informally admitted to a treatment facility pursuant to section 253B.04 for chemical dependency, unless the officer possesses a certificate from the head of the treatment facility discharging or provisionally discharging the officer from the treatment facility. Property rights may not be abated but access may be restricted by the courts;

(7) a person, including a person under the jurisdiction of the juvenile court, who has been charged with committing a crime of violence and has been placed in a pretrial diversion program by the court before disposition, until the person has completed the diversion program and the charge of committing the crime of violence has been dismissed;

(8) except as otherwise provided in clause (9), a person who has been convicted in another state of committing an offense similar to the offense described in section 609.224, subdivision 3, against a family or household member or section 609.2242, subdivision 3, unless three years have elapsed since the date of conviction and, during that time, the person has not been convicted of any other violation of section 609.224, subdivision 3, or 609.2242, subdivision 3, or a similar law of another state;

(9) a person who has been convicted in this state or elsewhere of assaulting a family or household member and who was found by the court to have used a firearm in any way during commission of the assault is prohibited from possessing any type of firearm for the period determined by the sentencing court;

(10) a person who:

(i) has been convicted in any court of a crime punishable by imprisonment for a term exceeding one year;

(ii) is a fugitive from justice as a result of having fled from any state to avoid prosecution for a crime or to avoid giving testimony in any criminal proceeding;

(iii) is an unlawful user of any controlled substance as defined in chapter 152;

(iv) has been judicially committed to a treatment facility in Minnesota or elsewhere as a person who is mentally ill, developmentally disabled, or mentally ill and dangerous to the public, as defined in section 253B.02;

(v) is an alien who is illegally or unlawfully in the United States;

(vi) has been discharged from the armed forces of the United States under dishonorable conditions; or

(vii) has renounced the person's citizenship having been a citizen of the United States; or

(11) a person who has been convicted of the following offenses at the gross misdemeanor level, unless three years have elapsed since the date of conviction and, during that time, the person has not been convicted of any other violation of these sections: section 609.229 (crimes committed for the benefit of a gang); 609.2231, subdivision 4 (assaults motivated by bias); 609.255 (false imprisonment); 609.378 (neglect or endangerment of a child); 609.582, subdivision 4 (burglary in the fourth degree); 609.665 (setting a spring gun); 609.71 (riot); or 609.749 (harassment and stalking). For purposes of this paragraph, the specified gross misdemeanor convictions include crimes committed in other states or jurisdictions which would have been gross misdemeanors if conviction occurred in this state.

A person who issues a certificate pursuant to this ~~subdivision~~ section in good faith is not liable for damages resulting or arising from the actions or misconduct with a firearm committed by the individual who is the subject of the certificate.

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The prohibition in this subdivision relating to the possession of firearms other than pistols and semiautomatic military-style assault weapons does not apply retroactively to persons who are prohibited from possessing a pistol or semiautomatic military-style assault weapon under this subdivision before August 1, 1994.

The lifetime prohibition on possessing, receiving, shipping, or transporting firearms for persons convicted or adjudicated delinquent of a crime of violence in clause (2), applies only to offenders who are discharged from sentence or court supervision for a crime of violence on or after August 1, 1993.

For purposes of this section, "judicial determination" means a court proceeding pursuant to sections 253B.07 through 253B.09 or a comparable law from another state.

Sec. 3. Minnesota Statutes 2008, section 624.713, is amended by adding a subdivision to read:

Subd. 4. Restoration of firearms eligibility to civilly committed person; petition authorized. (a) A person who is prohibited from possessing a firearm under subdivision 1, due to commitment resulting from a judicial determination that the person is mentally ill, developmentally disabled, mentally ill and dangerous, or chemically dependent, may petition a court to restore the person's ability to possess a firearm.

(b) The court may grant the relief sought in paragraph (a) in accordance with the principles of due process if the circumstances regarding the person's disqualifying condition and the person's record and reputation are determined to be such that:

(1) the person is not likely to act in a manner that is dangerous to public safety; and

(2) the granting of relief would not be contrary to the public interest.

(c) When determining whether a person has met the requirement of paragraph (b), clause (1), the court may consider evidence from a licensed medical doctor or clinical psychologist that the person is no longer suffering from the disease or condition that caused the disability or that the disease or condition has been successfully treated for a period of three consecutive years.

(d) Review on appeal shall be de novo.

Sec. 4. Minnesota Statutes 2008, section 624.7131, subdivision 2, is amended to read:

Subd. 2. Investigation. The chief of police or sheriff shall check criminal histories, records and warrant information relating to the applicant through the Minnesota crime information system ~~and~~, the national criminal record repository ~~and~~, and the National Instant Criminal Background Check System. The chief of police or sheriff shall also make a reasonable effort to check other available state and local record-keeping systems. The chief of police or sheriff shall obtain commitment information from the commissioner of human services as provided in section 245.041.

Sec. 5. Minnesota Statutes 2008, section 624.7132, subdivision 2, is amended to read:

Subd. 2. Investigation. Upon receipt of a transfer report, the chief of police or sheriff shall check criminal histories, records and warrant information relating to the proposed transferee through the Minnesota crime information system ~~and~~, the national criminal record repository, and the National Instant Criminal Background Check System. ~~and~~ The chief of police or sheriff shall also make a reasonable effort to check other available state and local record-keeping systems. The chief of police or sheriff shall obtain commitment information from the commissioner of human services as provided in section 245.041.

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Sec. 6. Minnesota Statutes 2008, section 624.714, subdivision 4, is amended to read:

Subd. 4. Investigation. (a) The sheriff must check, by means of electronic data transfer, criminal records, histories, and warrant information on each applicant through the Minnesota Crime Information System and~~, to the extent necessary,~~ the National Instant Criminal Background 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 Criminal Background Check System at least yearly to ensure continuing eligibility. The sheriff may also 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.

Sec. 7. EFFECTIVE DATE.

Section 1 is effective July 1, 2010."

Delete the title and insert:

"A bill for an act relating to public safety; requiring that information on persons civilly committed, found not guilty by reason of mental illness, or incompetent to stand trial be transmitted to the federal National Instant Criminal Background Check System; authorizing certain persons prohibited under state law from possessing a firearm to petition a court for restoration of this right; amending Minnesota Statutes 2008, sections 624.713, subdivision 1, by adding a subdivision; 624.7131, subdivision 2; 624.7132, subdivision 2; 624.714, subdivision 4; proposing coding for new law in Minnesota Statutes, chapter 253B."

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

Senate Conferees: Kenneth Kelash, Mee Moua and Bill Ingebrigtsen.

House Conferees: John Lesch, Kim Norton and Tony Cornish.

Lesch moved that the report of the Conference Committee on S. F. No. 722 be adopted and that the bill be repassed as amended by the Conference Committee. The motion prevailed.

S. F. No. 722, A bill for an act relating to public safety; requiring that information on persons civilly committed, found not guilty by reason of mental illness, or incompetent to stand trial be transmitted to the federal National Instant Criminal Background Check System; authorizing certain persons prohibited under state law from possessing a firearm to petition a court for restoration of this right; amending Minnesota Statutes 2008, section 624.713, subdivision 1, by adding a subdivision; proposing coding for new law in Minnesota Statutes, chapter 253B.

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

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The question was taken on the repassage of the bill and the roll was called. There were 134 yeas and 0 nays as follows:

Those who voted in the affirmative were:

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

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Madam Speaker:

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

S. F. No. 1012.

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

Colleen J. Pacheco, First Assistant Secretary of the Senate

CONFERENCE COMMITTEE REPORT ON S. F. NO. 1012

A bill for an act relating to state government; appropriating money for environment and natural resources.

May 16, 2009

The Honorable James P. Metzen

President of the Senate

The Honorable Margaret Anderson Kelliher

Speaker of the House of Representatives

We, the undersigned conferees for S. F. No. 1012 report that we have agreed upon the items in dispute and recommend as follows:

That the House recede from its amendment and that S. F. No. 1012 be further amended as follows:

Page 17, delete subdivision 11 and insert:

"Subd. 11. Project Requirements

(a) As a condition of accepting an appropriation in this section, any agency or entity receiving an appropriation must, for any project funded in whole or in part with funds from the appropriation:

(1) comply with Minnesota Statutes, chapter 116P;

(2) plant vegetation only of native ecotypes to Minnesota and preferably of the local ecotype using a high diversity of species originating as close to the restoration site as possible and when restoring prairies, protect existing prairies from genetic contamination.

Use of seeds and plant materials beyond these requirements must be expressly approved in the work program;

(3) provide that all conservation easements:

(i) are perpetual;

(ii) specify the parties to an easement in the easement;

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(iii) specify all of the provisions of an agreement that are perpetual;

(iv) are sent to the office of the Legislative-Citizen Commission on Minnesota Resources in an electronic format; and

(v) include a long-term stewardship plan and funding for monitoring and enforcing the easement agreement;

(4) for all restorations, prepare an ecological restoration and management plan that, to the degree practicable, is consistent with the highest quality conservation and ecological goals for the restoration site. Consideration should be given to soil, geology, topography, and other relevant factors that would provide the best chance for long-term success of the restoration projects. The plan shall include the proposed time table for implementing the restoration, including site preparation, establishment of diverse plant species, maintenance, and additional enhancement to establish the restoration; identify long-term maintenance and management needs of the restoration and how the maintenance, management, and enhancement will be financed; and take advantage of the best available science and include innovative techniques to achieve the best restoration;

(5) for new lands acquired, prepare a restoration and management plan in compliance with clause (4), including sufficient funding for implementation;

(6) give priority in any acquisition of land or interest in land to high quality natural resources or conservation lands that provide natural buffers to water resources;

(7) to ensure public accountability for the use of public funds, provide to the Legislative-Citizen Commission on Minnesota Resources documentation of the selection process used to identify parcels acquired and provide documentation of all related transaction costs, including but not limited to appraisals, legal fees, recording fees, commissions, other similar costs, and donations. This information must be provided for all parties involved in the transaction. The recipient shall also report to the Legislative-Citizen Commission on Minnesota Resources any difference between the acquisition amount paid to the seller and the state-certified or state-reviewed appraisal. Acquisition data such as appraisals may remain private during negotiations but must ultimately be made public according to Minnesota Statutes, chapter 13; and

(8) give consideration to contracting with the Minnesota Conservation Corps for contract restoration and enhancement services.

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(b) The Legislative-Citizen Commission on Minnesota Resources shall review the requirement in paragraph (a), clause (7), and provide a recommendation whether to continue or modify the requirement in future years. The commission may waive the application of paragraph (a), clause (7), for specific projects."

Page 22, after line 28, insert:

"Sec. 3. Minnesota Statutes 2008, section 116P.05, subdivision 2, is amended to read:

Subd. 2. Duties. (a) The commission shall recommend an annual or biennial legislative bill for appropriations from the environment and natural resources trust fund and shall adopt a strategic plan as provided in section 116P.08. Approval of the recommended legislative bill requires an affirmative vote of at least 12 members of the commission.

(b) The commission shall recommend expenditures to the legislature from the state land and water conservation account in the natural resources fund.

(c) It is a condition of acceptance of the appropriations made from the Minnesota environment and natural resources trust fund, and oil overcharge money under section 4.071, subdivision 2, that the agency or entity receiving the appropriation must submit a work program and semiannual progress reports in the form determined by the Legislative-Citizen Commission on Minnesota Resources, and comply with applicable reporting requirements under section 116P.16. None of the money provided may be spent unless the commission has approved the pertinent work program.

(d) The peer review panel created under section 116P.08 must also review, comment, and report to the commission on research proposals applying for an appropriation from the oil overcharge money under section 4.071, subdivision 2.

(e) The commission may adopt operating procedures to fulfill its duties under this chapter.

(f) As part of the operating procedures, the commission shall:

(1) ensure that members' expectations are to participate in all meetings related to funding decision recommendations;

(2) recommend adequate funding for increased citizen outreach and communications for trust fund expenditure planning;

(3) allow administrative expenses as part of individual project expenditures based on need;

(4) provide for project outcome evaluation;

(5) keep the grant application, administration, and review process as simple as possible; and

(6) define and emphasize the leveraging of additional sources of money that project proposers should consider when making trust fund proposals.

Sec. 4. Minnesota Statutes 2008, section 116P.08, subdivision 4, is amended to read:

Subd. 4. Legislative recommendations. (a) Funding may be provided only for those projects that meet the categories established in subdivision 1.

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(b) The commission must recommend an annual or biennial legislative bill to make appropriations from the trust fund for the purposes provided in subdivision 1. The recommendations must be submitted to the governor for inclusion in the biennial budget and supplemental budget submitted to the legislature.

(c) The commission may recommend regional block grants for a portion of trust fund expenditures to partner with existing regional organizations that have strong citizen involvement, to address unique local needs and capacity, and to leverage all available funding sources for projects.

(d) The commission may recommend the establishment of an ~~annual~~ emerging issues account in its ~~annual~~ legislative bill for funding emerging issues, which come up unexpectedly, but which still adhere to the commission's strategic plan, to be approved by the governor after initiation and recommendation by the commission.

(e) Money in the trust fund may not be spent except under an appropriation by law.

Sec. 5. Minnesota Statutes 2008, section 116P.10, is amended to read:

116P.10 ROYALTIES, COPYRIGHTS, PATENTS, AND SALE OF PRODUCTS AND ASSETS.

(a) This section applies to projects supported by the trust fund and the oil overcharge money referred to in section 4.071, subdivision 2, each of which is referred to in this section as a "fund."

(b) The fund owns and shall take title to the percentage of a royalty, copyright, or patent resulting from a project supported by the fund equal to the percentage of the project's total funding provided by the fund. Cash receipts resulting from a royalty, copyright, or patent, or the sale of the fund's rights to a royalty, copyright, or patent, must be credited immediately to the principal of the fund. Receipts from Minnesota future resources fund projects must be credited to the trust fund. The commission may include in its ~~annual~~ legislative bill a recommendation to relinquish the ownership or rights to a royalty, copyright, or patent resulting from a project supported by the fund to the project's proposer when the amount of the original grant or loan, plus interest, has been repaid to the fund.

(c) If a project supported by the fund results in net income from the sale of products or assets developed or acquired by an appropriation from the fund, the appropriation must be repaid to the fund in an amount equal to the percentage of the project's total funding provided by the fund. The commission may include in its ~~annual~~ legislative bill a recommendation to relinquish the income if a plan is approved for reinvestment of the income in the project or when the amount of the original grant or loan, plus interest, has been repaid to the fund."

Renumber the sections in sequence and correct the internal references

Amend the title as follows:

Page 1, line 3, delete the period and insert "; modifying duties of Legislative-Citizen Commission on Minnesota Resources;"

Correct the title numbers

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

Senate Conferees: Ellen Anderson, Dennis Frederickson and Pat Pariseau.

House Conferees: Jean Wagenius, Kate Knuth, Kory Kath, John Persell and Jenifer Loon.

Wagenius moved that the report of the Conference Committee on S. F. No. 1012 be adopted and that the bill be repassed as amended by the Conference Committee. The motion prevailed.

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S. F. No. 1012, A bill for an act relating to state government; appropriating money for environment and natural resources.

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

The question was taken on the repassage of the bill and the roll was called. There were 108 yeas and 26 nays as follows:

Those who voted in the affirmative were:

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

The following Conference Committee reports were received:

CONFERENCE COMMITTEE REPORT ON H. F. NO. 417

A bill for an act relating to commerce; prohibiting certain claims processing practices by third-party administrators of health coverage plans; regulating health claims clearinghouses; providing recovery of damages and attorney fees for breach of an insurance policy; permitting a deceased professional's surviving spouse to retain ownership of a professional firm that was solely owned by the decedent for up to one year after the death; amending Minnesota Statutes 2008, sections 60A.23, subdivision 8; 319B.02, by adding a subdivision; 319B.07, subdivision 1; 319B.08; 319B.09, subdivision 1; 471.982, subdivision 3; proposing coding for new law in Minnesota Statutes, chapters 60A; 62Q.

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May 16, 2009

The Honorable Margaret Anderson Kelliher

Speaker of the House of Representatives

The Honorable James P. Metzen

President of the Senate

We, the undersigned conferees for H. F. No. 417 report that we have agreed upon the items in dispute and recommend as follows:

That the Senate recede from its amendment and that H. F. No. 417 be further amended as follows:

Delete everything after the enacting clause and insert:

"Section 1. [60A.0811] BREACH OF INSURANCE POLICY; RECOVERY OF INTEREST.

Subdivision 1. Definitions. For purposes of this section:

(1) "insurance policy" means a commercial or professional insurance policy or contract other than:

(i) a workers' compensation insurance policy or contract;

(ii) a health insurance policy or contract issued, executed, renewed, maintained, or delivered in this state by a health carrier as defined in section 62A.011, subdivision 2;

(iii) a life insurance or disability insurance policy or contract; or

(iv) a policy or contract issued by a township mutual fire insurance company or farmers mutual fire insurance company operating under chapter 65A or 67A;

(2) "insured" means any named insured, additional insured, or insured under an insurance policy; and

(3) "insurer" means an insurer:

(i) incorporated or organized in this state; or

(ii) admitted, authorized, or licensed to do business or doing business in this state but not incorporated or organized in this state. Insurer does not include the joint underwriting association operating under chapter 62F or 62I; or a township mutual fire insurance company or farmers mutual fire insurance company operating under chapter 65A or 67A.

Subd. 2. Interest. (a) An insured who prevails in any claim against an insurer based on the insurer's breach or repudiation of, or failure to fulfill, a duty to provide services or make payments is entitled to recover 10 percent per annum interest on monetary amounts due under the insurance policy, calculated from the date the request for payment of those benefits was made to the insurer.

(b) Punitive damages or damages for nonmonetary losses are not recoverable under this section.

Subd. 3. Application. This section applies to a court action or arbitration proceeding, including an action seeking declaratory judgment.

EFFECTIVE DATE. This section is effective August 1, 2009, and applies to a cause of action existing on, or arising on or after that date.

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Sec. 2. Minnesota Statutes 2008, section 319B.02, is amended by adding a subdivision to read:

Subd. 21a. Surviving spouse. "Surviving spouse" means a surviving spouse of a deceased professional as an individual, as the personal representative of the estate of the decedent, as the trustee of an inter vivos or testamentary trust created by the decedent, or as the sole heir or beneficiary of an estate or trust of which the personal representative or trustee is a bank or other institution that has trust powers.

EFFECTIVE DATE. This section is effective the day following final enactment and applies to surviving spouses of professionals who die on or after that date.

Sec. 3. Minnesota Statutes 2008, section 319B.07, subdivision 1, is amended to read:

Subdivision 1. Ownership of interests restricted. Ownership interests in a professional firm may not be owned or held, either directly or indirectly, except by any of the following:

(1) professionals who, with respect to at least one category of the pertinent professional services, are licensed and not disqualified;

(2) general partnerships, other than limited liability partnerships, authorized to furnish at least one category of the professional firm's pertinent professional services;

(3) other professional firms authorized to furnish at least one category of the professional firm's pertinent professional services;

(4) a voting trust established with respect to some or all of the ownership interests in the professional firm, if (i) the professional firm's generally applicable governing law permits the establishment of voting trusts, and (ii) all the voting trustees and all the holders of beneficial interests in the trust are professionals licensed to furnish at least one category of the pertinent professional services; ~~and~~

(5) an employee stock ownership plan as defined in section 4975(e)(7) of the Internal Revenue Code of 1986, as amended, if (i) all the voting trustees of the plan are professionals licensed to furnish at least one category of the pertinent professional services, and (ii) the ownership interests are not directly issued to anyone other than professionals licensed to furnish at least one category of the pertinent professional services; and

(6) sole ownership by a surviving spouse of a deceased professional who was the sole owner of the professional firm at the time of the professional's death, but only during the period of time ending one year after the death of the professional.

EFFECTIVE DATE. This section is effective the day following final enactment and applies to surviving spouses of professionals who die on or after that date.

Sec. 4. Minnesota Statutes 2008, section 319B.08, is amended to read:

319B.08 EFFECT OF DEATH OR DISQUALIFICATION OF OWNER.

Subdivision 1. Acquisition of interests or automatic loss of professional firm status. (a) If an owner dies or becomes disqualified to practice all the pertinent professional services, then either:

(1) within 90 days after the death or the beginning of the disqualification, all of that owner's ownership interest must be acquired by the professional firm, by persons permitted by section 319B.07 to own the ownership interest, or by some combination; or

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(2) at the end of the 90-day period, the firm's election under section 319B.03, subdivision 2, or 319B.04, subdivision 2, is automatically rescinded, the firm loses its status as a professional firm, and the authority created by that election and status terminates.

An acquisition satisfies clause (1) if all right and title to the deceased or disqualified owner's interest are acquired before the end of the 90-day period, even if some or all of the consideration is paid after the end of the 90-day period. However, payment cannot be secured in any way that violates sections 319B.01 to 319B.12.

(b) If automatic rescission does occur under paragraph (a), the firm must immediately and accordingly update its organizational document, certificate of authority, or statement of foreign qualification. Even without that updating, however, the rescission, loss of status, and termination of authority provided by paragraph (a) occur automatically at the end of the 90-day period.

Subd. 2. Terms of acquisition. (a) If:

(1) an owner dies or becomes disqualified to practice all the pertinent professional services;

(2) the professional firm has in effect a mechanism, valid according to the professional firm's generally applicable governing law, to effect a purchase of the deceased or disqualified owner's ownership interest so as to satisfy subdivision 1, paragraph (a), clause (1); and

(3) the professional firm does not agree with the disqualified owner or the representative of the deceased owner to set aside the mechanism,

then that mechanism applies.

(b) If:

(1) an owner dies or becomes disqualified to practice all the pertinent professional services;

(2) the professional firm has in effect no mechanism as described in paragraph (a), or has agreed as mentioned in paragraph (a), clause (3), to set aside that mechanism; and

(3) consistent with its generally applicable governing law, the professional firm agrees with the disqualified owner or the representative of the deceased owner, before the end of the 90-day period, to an arrangement to effect a purchase of the deceased or disqualified owner's ownership interest so as to satisfy subdivision 1, paragraph (a), clause (1),

then that arrangement applies.

(1) an owner of a Minnesota professional firm dies or becomes disqualified to practice all the pertinent professional services;

(2) the Minnesota professional firm does not have in effect a mechanism as described in paragraph (a);

(3) the Minnesota professional firm does not make an arrangement as described in paragraph (b); and

(4) no provision or tenet of the Minnesota professional firm's generally applicable governing law and no provision of any document or agreement authorized by the Minnesota professional firm's generally applicable governing law expressly precludes an acquisition under this paragraph,

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then the firm may acquire the deceased or disqualified owner's ownership interest as stated in this paragraph. To act under this paragraph, the Minnesota professional firm must within 90 days after the death or beginning of the disqualification tender to the representative of the deceased owner's estate or to the disqualified owner the fair value of the owner's ownership interest, as determined by the Minnesota professional firm's governance authority. That price must be at least the book value, as determined in accordance with the Minnesota professional firm's regular method of accounting, as of the end of the month immediately preceding the death or loss of license. The tender must be unconditional and may not attempt to have the recipient waive any rights provided in this section. If the Minnesota professional firm tenders a price under this paragraph within the 90-day period, the deceased or disqualified owner's ownership interest immediately transfers to the Minnesota professional firm regardless of any dispute as to the fairness of the price. A disqualified owner or representative of the deceased owner's estate who disputes the fairness of the tendered price may take the tendered price and bring suit in district court seeking additional payment. The suit must be commenced within one year after the payment is tendered. A Minnesota professional firm may agree with a disqualified owner or the representative of a deceased owner's estate to delay all or part of the payment due under this paragraph, but all right and title to the owner's ownership interests must be acquired before the end of the 90-day period and payment may not be secured in any way that violates sections 319B.01 to 319B.12.

Subd. 3. Expiration of firm-issued option on death or disqualification of holder. If the holder of an option issued under section 319B.07, subdivision 3, paragraph (a), clause (1), dies or becomes disqualified, the option automatically expires.

Subd. 4. One-year period for surviving spouse of sole owner. For purposes of this section, each mention of "90 days," "90-day period," or similar term shall be interpreted as one year after the death of a professional who was the sole owner of the professional firm if the surviving spouse of the deceased professional owns and controls the firm after the death.

EFFECTIVE DATE. This section is effective the day following final enactment and applies to surviving spouses of professionals who die on or after that date.

Sec. 5. Minnesota Statutes 2008, section 319B.09, subdivision 1, is amended to read:

Subdivision 1. Governance authority. (a) Except as stated in paragraph (b), a professional firm's governance authority must rest with:

(1) one or more professionals, each of whom is licensed to furnish at least one category of the pertinent professional services; or

(2) a surviving spouse of a deceased professional who was the sole owner of the professional firm, while the surviving spouse owns and controls the firm, but only during the period of time ending one year after the death of the professional.

(b) In a Minnesota professional firm organized under chapter 317A and in a foreign professional firm organized under the nonprofit corporation statute of another state, at least one individual possessing governance authority must be a professional licensed to furnish at least one category of the pertinent professional services.

(c) Individuals who possess governance authority within a professional firm may delegate administrative and operational matters to others. No decision entailing the exercise of professional judgment may be delegated or assigned to anyone who is not a professional licensed to practice the professional services involved in the decision.

(d) An individual whose license to practice any pertinent professional services is revoked or suspended may not, during the time the revocation or suspension is in effect, possess or exercise governance authority, hold a position with governance authority, or take part in any decision or other action constituting an exercise of governance authority. Nothing in this chapter prevents a board from further terminating, restricting, limiting, qualifying, or imposing conditions on an individual's governance role as board disciplinary action.

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(e) A professional firm owned and controlled by a surviving spouse must comply with all requirements of this chapter, except those clearly inapplicable to a firm owned and governed by a surviving spouse who is not a professional of the same type as the surviving spouse's decedent.

EFFECTIVE DATE. This section is effective the day following final enactment and applies to surviving spouses of professionals who die on or after that date.

Sec. 6. Minnesota Statutes 2008, section 471.982, subdivision 3, is amended to read:

Subd. 3. Exemptions. Self-insurance pools established and open for enrollment on a statewide basis by the Minnesota League of Cities Insurance Trust, the Minnesota School Boards Association Insurance Trust, the Minnesota Association of Townships Insurance and Bond Trust, or the Minnesota Association of Counties Insurance Trust and the political subdivisions that belong to them are exempt from the requirements of this section and ~~section~~ sections 65B.48, subdivision 3, and 60A.0811. In addition, the Minnesota Association of Townships Insurance and Bond Trust and the townships that belong to it are exempt from the requirement to hold the certificate of surety authorization issued by the commissioner of commerce as provided in section 574.15."

Delete the title and insert:

"A bill for an act relating to commerce; providing recovery of damages and attorney fees for breach of an insurance policy; permitting a deceased professional's surviving spouse to retain ownership of a professional firm that was solely owned by the decedent for up to one year after the death; amending Minnesota Statutes 2008, sections 319B.02, by adding a subdivision; 319B.07, subdivision 1; 319B.08; 319B.09, subdivision 1; 471.982, subdivision 3; proposing coding for new law in Minnesota Statutes, chapter 60A."

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

House Conferees: Joe Atkins, Sheldon Johnson and Steve Smith.

Senate Conferees: Thomas Bakk, Ray Vandeveer and Linda Scheid.

Atkins moved that the report of the Conference Committee on H. F. No. 417 be adopted and that the bill be repassed as amended by the Conference Committee. The motion prevailed.

H. F. No. 417, A bill for an act relating to commerce; prohibiting certain claims processing practices by third‑party administrators of health coverage plans; regulating health claims clearinghouses; providing recovery of damages and attorney fees for breach of an insurance policy; permitting a deceased professional's surviving spouse to retain ownership of a professional firm that was solely owned by the decedent for up to one year after the death; amending Minnesota Statutes 2008, sections 60A.23, subdivision 8; 319B.02, by adding a subdivision; 319B.07, subdivision 1; 319B.08; 319B.09, subdivision 1; 471.982, subdivision 3; proposing coding for new law in Minnesota Statutes, chapters 60A; 62Q.

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

The question was taken on the repassage of the bill and the roll was called. There were 103 yeas and 31 nays as follows:

Those who voted in the affirmative were:

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

CONFERENCE COMMITTEE REPORT ON H. F. NO. 519

A bill for an act relating to local government; regulating nonconforming lots in shoreland areas; amending Minnesota Statutes 2008, sections 394.36, subdivision 4, by adding a subdivision; 462.357, subdivision 1e.

May 16, 2009

The Honorable Margaret Anderson Kelliher

Speaker of the House of Representatives

The Honorable James P. Metzen

President of the Senate

We, the undersigned conferees for H. F. No. 519 report that we have agreed upon the items in dispute and recommend as follows:

That the Senate recede from its amendments and that H. F. No. 519 be further amended as follows:

Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 2008, section 394.36, subdivision 4, is amended to read:

Subd. 4. Nonconformities; certain classes of property. This subdivision applies to homestead and nonhomestead residential real estate and seasonal residential real estate occupied for recreational purposes. Except as otherwise provided by law, a nonconformity, including the lawful use or occupation of land or premises existing

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at the time of the adoption of an official control under this chapter, may be continued, including through repair, replacement, restoration, maintenance, or improvement, but not including expansion. If the nonconformity or occupancy is discontinued for a period of more than one year, or any nonconforming building or structure is destroyed by fire or other peril to the extent of greater than 50 percent of its estimated market value, as indicated in the records of the county assessor at the time of damage, and no building permit has been applied for within 180 days of when the property is damaged, any subsequent use or occupancy of the land or premises must be a conforming use or occupancy. If a nonconforming building or structure is destroyed by fire or other peril to the extent of greater than 50 percent of its estimated market value, as indicated in the records of the county assessor at the time of damage, the board may impose reasonable conditions upon a zoning or building permit in order to mitigate any newly created impact on adjacent property. or water body. When a nonconforming structure in the shoreland district with less than 50 percent of the required setback from the water is destroyed by fire or other peril to greater than 50 percent of its estimated market value, as indicated in the records of the county assessor at the time of damage, the structure setback may be increased if practicable and reasonable conditions are placed upon a zoning or building permit to mitigate created impacts on the adjacent property or water body.

Sec. 2. Minnesota Statutes 2008, section 394.36, is amended by adding a subdivision to read:

Subd. 5. Existing nonconforming lots in shoreland areas. (a) This subdivision applies to shoreland lots of record in the office of the county recorder on the date of adoption of local shoreland controls that do not meet the requirements for lot size or lot width. A county shall regulate the use of nonconforming lots of record and the repair, replacement, maintenance, improvement, or expansion of nonconforming uses and structures in shoreland areas according to this subdivision.

(b) A nonconforming single lot of record located within a shoreland area may be allowed as a building site without variances from lot size requirements, provided that:

(1) all structure and septic system setback distance requirements can be met;

(2) a Type 1 sewage treatment system consistent with Minnesota Rules, chapter 7080, can be installed or the lot is connected to a public sewer; and

(3) the impervious surface coverage does not exceed 25 percent of the lot.

(c) In a group of two or more contiguous lots of record under a common ownership, an individual lot must be considered as a separate parcel of land for the purpose of sale or development, if it meets the following requirements:

(1) the lot must be at least 66 percent of the dimensional standard for lot width and lot size for the shoreland classification consistent with Minnesota Rules, chapter 6120;

(2) the lot must be connected to a public sewer, if available, or must be suitable for the installation of a Type 1 sewage treatment system consistent with Minnesota Rules, chapter 7080, and local government controls;

(3) impervious surface coverage must not exceed 25 percent of each lot; and

(4) development of the lot must be consistent with an adopted comprehensive plan.

(d) A lot subject to paragraph (c) not meeting the requirements of paragraph (c) must be combined with the one or more contiguous lots so they equal one or more conforming lots as much as possible.

(e) Notwithstanding paragraph (c), contiguous nonconforming lots of record in shoreland areas under a common ownership must be able to be sold or purchased individually if each lot contained a habitable residential dwelling at the time the lots came under common ownership and the lots are suitable for, or served by, a sewage treatment system consistent with the requirements of section 115.55 and Minnesota Rules, chapter 7080, or connected to a public sewer.

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(f) In evaluating all variances, zoning and building permit applications, or conditional use requests, the zoning authority shall require the property owner to address, when appropriate, storm water runoff management, reducing impervious surfaces, increasing setback, restoration of wetlands, vegetative buffers, sewage treatment and water supply capabilities, and other conservation-designed actions.

(g) A portion of a conforming lot may be separated from an existing parcel as long as the remainder of the existing parcel meets the lot size and sewage system requirements of the zoning district for a new lot and the newly created parcel is combined with an adjacent parcel.

Sec. 3. Minnesota Statutes 2008, section 462.357, subdivision 1e, is amended to read:

Subd. 1e. Nonconformities. (a) Except as otherwise provided by law, any nonconformity, including the lawful use or occupation of land or premises existing at the time of the adoption of an additional control under this chapter, may be continued, including through repair, replacement, restoration, maintenance, or improvement, but not including expansion, unless:

(1) the nonconformity or occupancy is discontinued for a period of more than one year; or

(2) any nonconforming use is destroyed by fire or other peril to the extent of greater than 50 percent of its estimated market value, as indicated in the records of the county assessor at the time of damage, and no building permit has been applied for within 180 days of when the property is damaged. In this case, a municipality may impose reasonable conditions upon a zoning or building permit in order to mitigate any newly created impact on adjacent property. or water body. When a nonconforming structure in the shoreland district with less than 50 percent of the required setback from the water is destroyed by fire or other peril to greater than 50 percent of its estimated market value, as indicated in the records of the county assessor at the time of damage, the structure setback may be increased if practicable and reasonable conditions are placed upon a zoning or building permit to mitigate created impacts on the adjacent property or water body.

(b) Any subsequent use or occupancy of the land or premises shall be a conforming use or occupancy. A municipality may, by ordinance, permit an expansion or impose upon nonconformities reasonable regulations to prevent and abate nuisances and to protect the public health, welfare, or safety. This subdivision does not prohibit a municipality from enforcing an ordinance that applies to adults-only bookstores, adults-only theaters, or similar adults-only businesses, as defined by ordinance.

(c) Notwithstanding paragraph (a), a municipality shall regulate the repair, replacement, maintenance, improvement, or expansion of nonconforming uses and structures in floodplain areas to the extent necessary to maintain eligibility in the National Flood Insurance Program and not increase flood damage potential or increase the degree of obstruction to flood flows in the floodway.

(d) Paragraphs (d) to (j) apply to shoreland lots of record in the office of the county recorder on the date of adoption of local shoreland controls that do not meet the requirements for lot size or lot width. A municipality shall regulate the use of nonconforming lots of record and the repair, replacement, maintenance, improvement, or expansion of nonconforming uses and structures in shoreland areas according to paragraphs (d) to (j).

(e) A nonconforming single lot of record located within a shoreland area may be allowed as a building site without variances from lot size requirements, provided that:

(1) all structure and septic system setback distance requirements can be met;

(2) a Type 1 sewage treatment system consistent with Minnesota Rules, chapter 7080, can be installed or the lot is connected to a public sewer; and

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(3) the impervious surface coverage does not exceed 25 percent of the lot.

(f) In a group of two or more contiguous lots of record under a common ownership, an individual lot must be considered as a separate parcel of land for the purpose of sale or development, if it meets the following requirements:

(1) the lot must be at least 66 percent of the dimensional standard for lot width and lot size for the shoreland classification consistent with Minnesota Rules, chapter 6120;

(3) impervious surface coverage must not exceed 25 percent of each lot; and

(4) development of the lot must be consistent with an adopted comprehensive plan.

(g) A lot subject to paragraph (f) not meeting the requirements of paragraph (f) must be combined with the one or more contiguous lots so they equal one or more conforming lots as much as possible.

(h) Notwithstanding paragraph (f), contiguous nonconforming lots of record in shoreland areas under a common ownership must be able to be sold or purchased individually if each lot contained a habitable residential dwelling at the time the lots came under common ownership and the lots are suitable for, or served by, a sewage treatment system consistent with the requirements of section 115.55 and Minnesota Rules, chapter 7080, or connected to a public sewer.

(i) In evaluating all variances, zoning and building permit applications, or conditional use requests, the zoning authority shall require the property owner to address, when appropriate, storm water runoff management, reducing impervious surfaces, increasing setback, restoration of wetlands, vegetative buffers, sewage treatment and water supply capabilities, and other conservation-designed actions.

(j) A portion of a conforming lot may be separated from an existing parcel as long as the remainder of the existing parcel meets the lot size and sewage treatment requirements of the zoning district for a new lot and the newly created parcel is combined with an adjacent parcel.

Sec. 4. EFFECTIVE DATE.

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

Delete the title and insert:

"A bill for an act relating to local government; regulating nonconforming lots in shoreland areas; amending Minnesota Statutes 2008, sections 394.36, subdivision 4, by adding a subdivision; 462.357, subdivision 1e."

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

House Conferees: Michael V. Nelson, Joe Mullery and Larry Howes.

Senate Conferees: Ann H. Rest, Dick Day and Don Betzold.

Nelson moved that the report of the Conference Committee on H. F. No. 519 be adopted and that the bill be repassed as amended by the Conference Committee. The motion prevailed.

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H. F. No. 519, A bill for an act relating to local government; regulating nonconforming lots in shoreland areas; amending Minnesota Statutes 2008, sections 394.36, subdivision 4, by adding a subdivision; 462.357, subdivision 1e.

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

The question was taken on the repassage of the bill and the roll was called. There were 134 yeas and 0 nays as follows:

Those who voted in the affirmative were:

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

CONFERENCE COMMITTEE REPORT ON H. F. NO. 804

A bill for an act relating to probate; modifying provisions governing guardians and conservators; amending Minnesota Statutes 2008, sections 260C.331, subdivision 1; 524.5-102, subdivision 7, by adding a subdivision; 524.5-304; 524.5-309; 524.5-310; 524.5-315; 524.5-316; 524.5-317; 524.5-406; 524.5-409; 524.5-413; 524.5-414; 524.5-420; proposing coding for new law in Minnesota Statutes, chapter 524.

May 16, 2009

The Honorable Margaret Anderson Kelliher

Speaker of the House of Representatives

The Honorable James P. Metzen

President of the Senate

We, the undersigned conferees for H. F. No. 804 report that we have agreed upon the items in dispute and recommend as follows:

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That the Senate recede from its amendments and that H. F. No. 804 be further amended as follows:

Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 2008, section 260C.331, subdivision 1, is amended to read:

Subdivision 1. Care, examination, or treatment. (a) Except where parental rights are terminated,

(1) whenever legal custody of a child is transferred by the court to a responsible social services agency,

(2) whenever legal custody is transferred to a person other than the responsible social services agency, but under the supervision of the responsible social services agency, or

(3) whenever a child is given physical or mental examinations or treatment under order of the court, and no provision is otherwise made by law for payment for the care, examination, or treatment of the child, these costs are a charge upon the welfare funds of the county in which proceedings are held upon certification of the judge of juvenile court.

(b) The court shall order, and the responsible social services agency shall require, the parents or custodian of a child, while the child is under the age of 18, to use the total income and resources attributable to the child for the period of care, examination, or treatment, except for clothing and personal needs allowance as provided in section 256B.35, to reimburse the county for the cost of care, examination, or treatment. Income and resources attributable to the child include, but are not limited to, Social Security benefits, supplemental security income (SSI), veterans benefits, railroad retirement benefits and child support. When the child is over the age of 18, and continues to receive care, examination, or treatment, the court shall order, and the responsible social services agency shall require, reimbursement from the child for the cost of care, examination, or treatment from the income and resources attributable to the child less the clothing and personal needs allowance. Income does not include earnings from a child over the age of 18 who is working as part of a plan under section 260C.212, subdivision 1, paragraph (c), clause (8), to transition from foster care.

(c) If the income and resources attributable to the child are not enough to reimburse the county for the full cost of the care, examination, or treatment, the court shall inquire into the ability of the parents to support the child and, after giving the parents a reasonable opportunity to be heard, the court shall order, and the responsible social services agency shall require, the parents to contribute to the cost of care, examination, or treatment of the child. When determining the amount to be contributed by the parents, the court shall use a fee schedule based upon ability to pay that is established by the responsible social services agency and approved by the commissioner of human services. The income of a stepparent who has not adopted a child shall be excluded in calculating the parental contribution under this section.

(d) The court shall order the amount of reimbursement attributable to the parents or custodian, or attributable to the child, or attributable to both sources, withheld under chapter 518A from the income of the parents or the custodian of the child. A parent or custodian who fails to pay without good reason may be proceeded against for contempt, or the court may inform the county attorney, who shall proceed to collect the unpaid sums, or both procedures may be used.

(e) If the court orders a physical or mental examination for a child, the examination is a medically necessary service for purposes of determining whether the service is covered by a health insurance policy, health maintenance contract, or other health coverage plan. Court-ordered treatment shall be subject to policy, contract, or plan requirements for medical necessity. Nothing in this paragraph changes or eliminates benefit limits, conditions of coverage, co-payments or deductibles, provider restrictions, or other requirements in the policy, contract, or plan that relate to coverage of other medically necessary services.

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(f) Notwithstanding paragraph (b), (c), or (d), a parent, custodian, or guardian of the child is not required to use income and resources attributable to the child to reimburse the county for costs of care and is not required to contribute to the cost of care of the child during any period of time when the child is returned to the home of that parent, custodian, or guardian pursuant to a trial home visit under section 260C.201, subdivision 1, paragraph (a).

Sec. 2. Minnesota Statutes 2008, section 524.5-102, subdivision 7, is amended to read:

Subd. 7. Interested person. "Interested person" includes:

(i) the ward, protected person, or respondent;

(ii) a nominated guardian or conservator, or the duly appointed guardian or conservator;

(iii) legal representative;

(iv) the spouse, parent, adult children and siblings, or if none of such persons is living or can be located, the next of kin of the ward, protected person, or respondent;

(v) an adult person who has lived with a ward, protected person, or respondent for a period of more than six months;

(vi) an attorney for the ward or protected person;

(vii) a governmental agency paying or to which an application has been made for benefits for the respondent, ward, or protected person, including the county social services agency for the person's county of residence and the county where the proceeding is venued;

(viii) a representative of a state ombudsman's office or a federal protection and advocacy program that has notified the court that it has a matter regarding the ward, protected person, or respondent;

~~(viii)~~ (ix) a health care agent or proxy appointed pursuant to a health care directive as defined in section 145C.01, a living will under chapter 145B, or other similar document executed in another state and enforceable under the laws of this state; and

~~(ix)~~ (x) any other person designated by the court.

Sec. 3. Minnesota Statutes 2008, section 524.5-102, is amended by adding a subdivision to read:

Subd. 13a. Professional guardian or professional conservator. "Professional guardian" or "professional conservator" means a person acting as guardian or conservator for three or more individuals not related by blood, adoption, or marriage.

Sec. 4. [524.5-119] CENTRAL REGISTRATION OF GUARDIANS AND CONSERVATORS; APPROPRIATION.

(a) By July 1, 2013, the Supreme Court shall establish a statewide registration system under which guardians and conservators appointed under sections 524.5-101 to 524.5-502 must register with the state court administrator. Registration information must include the name of the guardian or conservator, whether the person is a professional guardian or conservator, date and county of appointment, and other information required by the Supreme Court. Registration data that the Supreme Court determines are accessible to the public must be accessible online or through other means implemented by the Supreme Court.

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(b) The state court administrator shall establish registration fees or identify another source of funds to support the costs of developing and administering the registration system. The state court administrator shall determine whether guardians and conservators should pay a registration fee and the amount of the fee, and shall take into consideration whether the guardian or conservator is a professional guardian or conservator, whether the guardian or conservator represents clients in forma pauperis, and the number of wards or protected persons the guardian or conservator represents. The state court administrator shall report to the legislature on the fees or other source of funds to support the costs of developing and administering the registration system by January 1, 2012. The state court administrator shall begin collecting fees under this paragraph on July 1, 2012. Fees collected by the state court administrator under this section are appropriated to the Supreme Court.

Sec. 5. [524.5-120] BILL OF RIGHTS FOR WARDS AND PROTECTED PERSONS.

The ward or protected person retains all rights not restricted by court order and these rights must be enforced by the court. These rights include the right to:

(1) treatment with dignity and respect;

(2) due consideration of current and previously stated personal desires, medical treatment preferences, religious beliefs, and other preferences and opinions in decisions made by the guardian or conservator;

(3) receive timely and appropriate health care and medical treatment that does not violate known conscientious, religious, or moral beliefs of the ward or protected person;

(4) exercise control of all aspects of life not delegated specifically by court order to the guardian or conservator;

(5) guardianship or conservatorship services individually suited to the ward or protected person's conditions and needs;

(6) petition the court to prevent or initiate a change in abode;

(7) care, comfort, social and recreational needs, training, education, habilitation, and rehabilitation care and services, within available resources;

(8) be consulted concerning, and to decide to the extent possible, the reasonable care and disposition of the ward or protected person's clothing, furniture, vehicles, and other personal effects, to object to the disposition of personal property and effects, and to petition the court for a review of the guardian's or conservator's proposed disposition;

(9) personal privacy;

(10) communication and visitation with persons of the ward or protected person's choice, provided that if the guardian has found that certain communication or visitation may result in harm to the ward's health, safety, or well-being, that communication or visitation may be restricted but only to the extent necessary to prevent the harm;

(11) marry and procreate, unless court approval is required, and to consent or object to sterilization as provided in section 524.5-313, paragraph (c), clause (4), item (iv);

(12) petition the court for termination or modification of the guardianship or conservatorship or for other appropriate relief;

(13) be represented by an attorney in any proceeding or for the purpose of petitioning the court; and

(14) vote, unless restricted by the court.

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Sec. 6. Minnesota Statutes 2008, section 524.5-304, is amended to read:

524.5-304 JUDICIAL APPOINTMENT OF GUARDIAN: PRELIMINARIES TO HEARING.

(a) Upon receipt of a petition to establish a guardianship, the court shall set a date and time for hearing the petition and may appoint a visitor. The duties and reporting requirements of the visitor are limited to the relief requested in the petition.

(b) A proposed ward has the right to be represented by counsel at any proceeding under this article. The court shall appoint counsel to represent the proposed ward for the initial proceeding held pursuant to section 524.5-307 if neither the proposed ward nor others provide counsel unless in a meeting with a visitor the proposed ward makes an informed decision in writing to specifically ~~waives~~ waive the right to counsel. Before appointment, and at any time during the course of the representation when a risk of a conflict of interest may arise, the proposed or appointed counsel shall disclose to the court, the proposed ward or ward, and interested persons whether there are concurrent proceedings in which the counsel is the attorney for the proposed guardian or guardian and whether there is a risk of a conflict of interest under Rule 1.7 of the Rules of Professional Conduct so that the representation of the proposed ward or ward will be materially limited by counsel's concurrent responsibilities to the proposed guardian or guardian. If there is a risk of a conflict of interest, the counsel must not be appointed or new counsel must be appointed, unless:

(1) the court determines that the proposed ward or ward is able to give informed consent to the representation and, if the proposed ward or ward consents, the consent is confirmed in writing pursuant to Rule 1.7; or

(2) the court determines that there is not a risk of a conflict of interest under Rule 1.7 requiring the appointment of different counsel.

Counsel must be appointed immediately after any petition under this article is served under section 524.5-308. Counsel has the full right of subpoena. In all proceedings under this article, counsel shall:

(1) consult with the proposed ward before any hearing;

(2) be given adequate time to prepare for all hearings; and

(3) continue to represent the person throughout any proceedings under section 524.5-307, provided that such appointment shall expire upon the expiration of the appeal time for the order appointing guardian or the order dismissing a petition, or upon such other time or event as the court may direct.

The court need not appoint counsel to represent the proposed ward on a voluntary petition, and the court may remove a court-appointed attorney at any time if the court finds that the proposed ward has made a knowing and intelligent waiver of the right to counsel or has obtained private counsel.

(c) The visitor shall personally serve the notice and petition upon the respondent and shall offer to read the notice and petition to the respondent, and if so requested the visitor shall read the notice and petition to such person. The visitor shall also interview the respondent in person, and to the extent that the respondent is able to understand:

(1) explain to the respondent the substance of the petition; the nature, purpose, and effect of the proceeding; the respondent's rights at the hearing; and the general powers and duties of a guardian;

(2) determine the respondent's views about the proposed guardian, the proposed guardian's powers and duties, and the scope and duration of the proposed guardianship;

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(3) inform the respondent of the right to employ and consult with a lawyer at the respondent's own expense and the right to request a court-appointed lawyer; and

(4) inform the respondent that all costs and expenses of the proceeding, including respondent's attorneys fees, will be paid from the respondent's estate.

(d) In addition to the duties in paragraph (c), the visitor shall make any other investigation the court directs.

(e) The visitor shall promptly file a report in writing with the court, which must include:

(1) recommendations regarding the appropriateness of guardianship, including whether less restrictive means of intervention are available, the type of guardianship, and, if a limited guardianship, the powers to be granted to the limited guardian;

(2) a statement as to whether the respondent approves or disapproves of the proposed guardian, and the powers and duties proposed or the scope of the guardianship; and

(3) any other matters the court directs.

(f) The county social service agency may create a screening committee to review a petition involving an indigent person. The screening committee must consist of individuals selected by the agency with knowledge of alternatives that are less restrictive than guardianship. If the agency has created a screening committee, the court shall make its decision after the screening committee has reviewed the petition. For an indigent person, the court may appoint a guardian under contract with the county to provide these services.

(g) Before the initial appointment, and annually within 30 days after the anniversary date of the appointment, the proposed guardian or guardian shall file an informational statement with the court. The statement must be a sworn affidavit containing the following information:

(1) the person's educational background and relevant work and other experience;

(2) an address and telephone number where the guardian can be contacted;

(3) whether the person has ever been removed for cause from serving as a guardian or conservator and if so, the case number and court location;

(4) any changes occurring that would affect the accuracy of information contained in the most recent criminal background study conducted pursuant to section 524.5-118; and

(5) if applicable, the amount of reimbursement for services rendered to the ward that the person has received during the previous year.

Sec. 7. Minnesota Statutes 2008, section 524.5-309, is amended to read:

524.5-309 WHO MAY BE GUARDIAN: PRIORITIES.

(a) Subject to paragraph (c), the court, in appointing a guardian, shall consider persons otherwise qualified in the following order of priority:

(1) a guardian, other than a temporary or emergency guardian, currently acting for the respondent in this state or elsewhere;

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(2) an agent appointed by the respondent under a health care directive pursuant to chapter 145C;

(3) the spouse of the respondent or a person nominated by will or other signed writing executed in the same manner as a health care directive pursuant to chapter 145C of a deceased spouse;

(4) an adult child of the respondent;

(5) a parent of the respondent, or an individual nominated by will or other signed writing executed in the same manner as a health care directive pursuant to chapter 145C of a deceased parent; ~~and~~

(6) an adult with whom the respondent has resided for more than six months before the filing of the petition;

(7) an adult who is related to the respondent by blood, adoption, or marriage; and

(8) any other adult or a professional guardian.

(b) The court, acting in the best interest of the respondent, may decline to appoint a person having priority and appoint a person having a lower priority or no priority. With respect to persons having equal priority, the court shall select the one it considers best qualified.

(c) Any individual or agency which provides residence, custodial care, medical care, employment training or other care or services for which they receive a fee may not be appointed as guardian unless related to the respondent by blood, marriage, or adoption.

Sec. 8. Minnesota Statutes 2008, section 524.5-310, is amended to read:

524.5-310 FINDINGS; ORDER OF APPOINTMENT.

(a) The court may appoint a limited or unlimited guardian for a respondent only if it finds by clear and convincing evidence that:

(1) the respondent is an incapacitated person; and

(2) the respondent's identified needs cannot be met by less restrictive means, including use of appropriate technological assistance.

(b) Alternatively, the court, with appropriate findings, may treat the petition as one for a protective order under section 524.5-401, enter any other appropriate order, or dismiss the proceeding.

(c) The court shall grant to a guardian only those powers necessitated by the ward's limitations and demonstrated needs and, whenever feasible, make appointive and other orders that will encourage the development of the ward's maximum self-reliance and independence. Any power not specifically granted to the guardian, following a written finding by the court of a demonstrated need for that power, is retained by the ward.

(d) Within 14 days after an appointment, a guardian shall send or deliver to the ward, and counsel if represented at the hearing, a copy of the order of appointment accompanied by a notice which advises the ward of the right to appeal the guardianship appointment in the time and manner provided by the Rules of Appellate Procedure.

(e) Each year, within 30 days after the anniversary date of an appointment, a guardian shall send or deliver to the ward and to interested persons of record with the court a notice of the right to request termination or modification of the guardianship or to request an order that is in the best interests of the ward or for other appropriate relief, and notice of the status of the ward's right to vote.

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Sec. 9. Minnesota Statutes 2008, section 524.5-315, is amended to read:

524.5-315 RIGHTS AND IMMUNITIES OF GUARDIAN; LIMITATIONS.

(a) A guardian is entitled to reasonable compensation for services as guardian and to reimbursement for expenditures made on behalf of the ward, in a manner consistent with section 524.5-502.

(b) A guardian is not liable to a third person for acts of the ward solely by reason of the relationship. A guardian who exercises reasonable care in choosing a third person providing medical or other care, treatment, or service for the ward is not liable for injury to the ward resulting from the wrongful conduct of the third person.

(c) A guardian, without authorization of the court, may revoke the appointment of an agent of a health care directive of which the ward is the principal, but the guardian may not, absent a court order, revoke the health care directive itself. If a health care directive is in effect, absent an order of the court to the contrary, a health care decision of the guardian takes precedence over that of an agent. A guardian may not revoke the health care directive of a ward or protected person absent a court order. A guardian may revoke the appointment of an agent of a health care directive for which the ward is the principal only under the following circumstances:

(1) the agent was appointed in the previous 60 days;

(2) multiple agents have been appointed; or

(3) when a court has determined that the ward lacks capacity to appoint an agent of a health care directive and the court has expressly granted the guardian the power to give necessary consent to enable the ward to receive medical care, treatment, or service.

In all other circumstances, the guardian may not revoke the appointment of an agent of a health care directive for which the ward is principal absent a court order. Unless the appointment of a health care directive is revoked in accordance with this section, a health care decision of the agent takes precedence over that of the guardian.

(d) A guardian may not initiate the commitment of a ward to an institution except in accordance with section 524.5-313.

Sec. 10. Minnesota Statutes 2008, section 524.5-316, is amended to read:

524.5-316 REPORTS; MONITORING OF GUARDIANSHIP; COURT ORDERS.

(a) A guardian shall report to the court in writing on the condition of the ward at least annually and whenever ordered by the court. A copy of the report must be provided to the ward and to interested persons of record with the court. A report must state or contain:

(1) the current mental, physical, and social condition of the ward;

(2) the living arrangements for all addresses of the ward during the reporting period;

(3) any restrictions placed on the ward's right to communication and visitation with persons of the ward's choice and the factual bases for those restrictions;

~~(3)~~ (4) the medical, educational, vocational, and other services provided to the ward and the guardian's opinion as to the adequacy of the ward's care; and

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~~(4)~~ (5) a recommendation as to the need for continued guardianship and any recommended changes in the scope of the guardianship.