Journal of the House - 61st Day - Friday, May 20, 2011

Abeler

Anderson, B.

Anderson, D.

Anderson, P.

Anderson, S.

Anzelc

Atkins

Banaian

Barrett

Beard

Benson, J.

Benson, M.

Bills

Brynaert

Buesgens

Carlson

Champion

Clark

Cornish

Crawford

Daudt

Davids

Davnie

Dean

Dettmer

Dittrich

Doepke

Downey

Drazkowski

Eken

Erickson

Fabian

Falk

Franson

Fritz

Garofalo

Gauthier

Gottwalt

Greene

Greiling

Gruenhagen

Gunther

Hackbarth

Hamilton

Hancock

Hansen

Hausman

Hayden

Hilstrom

Hilty

Holberg

Hoppe

Hornstein

Hortman

Hosch

Howes

Huntley

Johnson

Kahn

Kath

Kelly

Kieffer

Kiel

Kiffmeyer

Knuth

Koenen

Kriesel

Laine

Lanning

Leidiger

LeMieur

Lenczewski

Lesch

Liebling

Lillie

Loeffler

Lohmer

Loon

Mack

Mahoney

Mariani

Marquart

Mazorol

McDonald

McElfatrick

McFarlane

McNamara

Melin

Moran

Morrow

Mullery

Murdock

Murphy, E.

Murphy, M.

Murray

Myhra

Nelson

Nornes

Norton

O'Driscoll

Paymar

Pelowski

Peppin

Persell

Petersen, B.

Peterson, S.

Poppe

Quam

Rukavina

Runbeck

Sanders

Scalze

Schomacker

Scott

Shimanski

Simon

Slawik

Slocum

Smith

Stensrud

Swedzinski

Thissen

Tillberry

Torkelson

Urdahl

Vogel

Wagenius

Ward

Wardlow

Westrom

Winkler

Woodard

Spk. Zellers

A quorum was present.

Dill was excused until 8:00 p.m.

The Chief Clerk proceeded to read the Journal of the preceding day. There being no objection, further reading of the Journal was dispensed with and the Journal was approved as corrected by the Chief Clerk.

Journal of the House - 61st Day - Friday, May 20, 2011 - Top of Page 4722

PETITIONS AND COMMUNICATIONS

The following communications were received:

STATE OF MINNESOTA

OFFICE OF THE GOVERNOR

SAINT PAUL 55155

May 19, 2011

The Honorable Kurt Zellers

Speaker of the House of Representatives

The State of Minnesota

Dear Speaker Zellers:

Please be advised that I have received, approved, signed, and deposited in the Office of the Secretary of State H. F. Nos. 235 and 299.

Sincerely,

Mark Dayton

Governor

STATE OF MINNESOTA

OFFICE OF THE SECRETARY OF STATE

ST. PAUL 55155

The Honorable Kurt Zellers

Speaker of the House of Representatives

The Honorable Michelle L. Fischbach

President of the Senate

I have the honor to inform you that the following enrolled Acts of the 2011 Session of the State Legislature have been received from the Office of the Governor and are deposited in the Office of the Secretary of State for preservation, pursuant to the State Constitution, Article IV, Section 23:

S. F.

No.

H. F.

No.

Session Laws

Chapter No.

Time and

Date Approved

2011

Date Filed

2011

235 23 12:07 p.m. May 19 May 19

299 24 12:45 p.m. May 19 May 19

Sincerely,

Mark Ritchie

Secretary of State

Journal of the House - 61st Day - Friday, May 20, 2011 - Top of Page 4723

INTRODUCTION AND FIRST READING OF HOUSE BILLS

The following House Files were introduced:

Kelly and Simon introduced:

H. F. No. 1737, A bill for an act relating to elections; authorizing jurisdictions to adopt ranked-choice voting; establishing procedures for adoption, implementation, and use of ranked-choice voting; amending Minnesota Statutes 2010, sections 205.13, subdivision 2; 206.83; 206.89, subdivisions 2, 3; proposing coding for new law in Minnesota Statutes, chapter 206; proposing coding for new law as Minnesota Statutes, chapter 204E.

The bill was read for the first time and referred to the Committee on Government Operations and Elections.

Howes introduced:

H. F. No. 1738, A bill for an act relating to local government; providing for detachment from a municipality; amending Minnesota Statutes 2010, section 414.06, subdivisions 1, 2, 3, by adding subdivisions.

The bill was read for the first time and referred to the Committee on Government Operations and Elections.

Hayden introduced:

H. F. No. 1739, A bill for an act relating to housing; adding definitions; amending Minnesota Housing Finance Agency provisions; changing eligibility and selection criteria for agency funding; amending Minnesota Statutes 2010, sections 462A.03, by adding subdivisions; 462A.07, by adding subdivisions; 462A.209, subdivisions 1, 2, 3, 5.

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

Westrom and Franson introduced:

H. F. No. 1740, A bill for an act relating to capital improvements; appropriating money for flood hazard mitigation in Douglas County; authorizing the sale and issuance of state bonds.

The bill was read for the first time and referred to the Committee on Environment, Energy and Natural Resources Policy and Finance.

Clark, Persell, Mariani, Gauthier, Hilty and Davnie introduced:

H. F. No. 1741, A bill for an act relating to state government; reestablishing the committees on American Indian education; amending Minnesota Statutes 2010, section 122A.09, subdivision 4, as amended; proposing coding for new law in Minnesota Statutes, chapter 124D.

The bill was read for the first time and referred to the Committee on Government Operations and Elections.

Journal of the House - 61st Day - Friday, May 20, 2011 - Top of Page 4724

Hayden introduced:

H. F. No. 1742, A bill for an act relating to residential mortgage loans; regulating special mortgage payoffs; modifying the independent loan counselor certification requirements; amending Minnesota Statutes 2010, section 58.13, subdivision 1; proposing coding for new law in Minnesota Statutes, chapter 58.

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

Laine introduced:

H. F. No. 1743, A bill for an act relating to insurance; specifying maximum financial reserves for nonprofit health plan companies; proposing coding for new law in Minnesota Statutes, chapter 60A.

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

Kath and Anderson, S., introduced:

H. F. No. 1744, A bill for an act relating to mortuary science; changing provisions for coroner or medical examiner duties; amending Minnesota Statutes 2010, sections 144.221, by adding a subdivision; 149A.01, subdivisions 3, 4; 149A.02, subdivisions 3, 5, 13a, 16, 19, 30, 36, by adding subdivisions; 149A.03; 149A.50, subdivisions 1, 2; 149A.52, subdivision 2; 149A.70, subdivision 6; 149A.71, subdivisions 2, 4; 149A.72, subdivision 2; 149A.80, subdivisions 2, 5, 6, 7; 149A.90; 149A.91, subdivisions 2, 3, 6; 149A.93, subdivisions 1, 2, 6, 7; 149A.94, subdivisions 1, 3; 149A.95, subdivisions 6, 7, 20; 149A.96, subdivisions 1, 4, 7; proposing coding for new law in Minnesota Statutes, chapter 306; repealing Minnesota Statutes 2010, section 149A.02, subdivision 29.

The bill was read for the first time and referred to the Committee on Health and Human Services Reform.

Poppe and Pelowski introduced:

H. F. No. 1745, A bill for an act relating to capital investment; appropriating money for the Hormel Institute; authorizing the sale and issuance of state bonds.

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

Mullery, Clark, Greiling and Kahn introduced:

H. F. No. 1746, A bill for an act relating to civil law; providing for civil union relationships; substituting civil union for marriage for purposes of Minnesota law; amending Minnesota Statutes 2010, sections 363A.27; 517.01; 517.02; 517.03; 517.07; 517.08; 517.10; 517.101; 517.20; proposing coding for new law in Minnesota Statutes, chapter 517; repealing Minnesota Statutes 2010, sections 517.04; 517.041; 517.05; 517.06; 517.09; 517.13; 517.14; 517.15; 517.16; 517.18.

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

Journal of the House - 61st Day - Friday, May 20, 2011 - Top of Page 4725

Hackbarth introduced:

H. F. No. 1747, A bill for an act relating to gambling; authorizing the director of the State Lottery to establish gaming machines; imposing a tax on gaming machine revenue; providing powers and duties to the director; establishing a multi-stadium revenue fund and dedicating money in the fund for financing and construction of a stadium for the Minnesota Vikings and a ballpark for the St. Paul Saints; amending Minnesota Statutes 2010, sections 299L.07, subdivisions 2, 2a; 340A.410, subdivision 5; 349A.01, subdivision 10, by adding subdivisions; 349A.10, subdivision 3; 349A.13; 541.20; 541.21; 609.75, subdivision 3; 609.761, subdivision 2; proposing coding for new law in Minnesota Statutes, chapters 297A; 349A.

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

Dean 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 Speaker pro tempore Davids.

REPORT FROM THE COMMITTEE ON RULES

AND LEGISLATIVE ADMINISTRATION

Dean from the Committee on Rules and Legislative Administration, pursuant to rule 1.21, designated the following bills to be placed on the Supplemental Calendar for the Day for Friday, May 20, 2011:

H. F. No. 1068; S. F. No. 361; H. F. Nos. 745 and 637; and S. F. No. 1280.

Champion was excused between the hours of 11:25 a.m. and 12:40 p.m.

MESSAGES FROM THE SENATE

The following messages were received from the Senate:

Mr. Speaker:

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

H. F. No. 1010, A bill for an act relating to state government; appropriating money for environment, natural resources, commerce, and energy; creating accounts; modifying disposition of certain receipts; modifying responsibilities and authorities; creating an advisory committee; modifying Petroleum Tank Release Cleanup Act; modifying cooperative electric association petition provisions; repealing definitions and requirements; requiring rulemaking on wild rice standards; amending Minnesota Statutes 2010, sections 85.052, subdivision 4; 89.21;

Journal of the House - 61st Day - Friday, May 20, 2011 - Top of Page 4726

97A.055, by adding a subdivision; 97A.071, subdivision 2; 97A.075; 103G.271, subdivision 6; 103G.301, subdivision 2; 103G.615, subdivision 2; 115A.1314; 115A.1320, subdivision 1; 115C.09, subdivision 3c; 115C.13; 116P.04, by adding a subdivision; 116P.05, subdivision 2; 216B.026, subdivision 1; 290.431; 290.432; 357.021, subdivision 7; proposing coding for new law in Minnesota Statutes, chapters 16E; 84; 89; 97A; 103G; repealing Minnesota Statutes 2010, sections 84.02, subdivisions 1, 2, 3, 4, 5, 6, 7, 8; 84.027, subdivision 11; 116P.09, subdivision 4; 116P.14.

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

Cal R. Ludeman, Secretary of the Senate

Mr. Speaker:

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

H. F. No. 1101, A bill for an act relating to higher education; amending postsecondary education provisions; requiring reports; changing Minnesota college savings plan matching grants; making technical changes; modifying definitions; setting requirements for credit transfer; providing stable undergraduate tuition rates; modifying achieve scholarship program; modifying contract and salary provisions; prohibiting use of certain public funds to support human cloning; requiring a study of graduate education in for-profit sector; repealing certain provisions related to equipment and apparel; appropriating money; amending Minnesota Statutes 2010, sections 15A.081, subdivision 7c; 135A.51, subdivision 2; 136A.121, subdivision 6; 136F.40, subdivision 2; 136G.01; 136G.03, subdivisions 1, 18, 27; 136G.05, subdivisions 1, 6, 8; proposing coding for new law in Minnesota Statutes, chapters 136F; 137; 145; repealing Minnesota Statutes 2010, sections 135A.26; 136G.11, subdivisions 1, 2, 3, 4, 5, 6, 7, 8, 9, 10; 181.986; Laws 2009, chapter 95, article 2, section 39.

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

Cal R. Ludeman, Secretary of the Senate

Mr. Speaker:

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

H. F. No. 1140, A bill for an act relating to government finance; appropriating money for transportation, Metropolitan Council, and public safety activities and programs; providing for fund transfers and tort claims; authorizing an account and certain contingent appropriations; providing for use of revenues from metropolitan transportation area sales tax; reducing funding for 2010 state road construction; authorizing temporary transfers from metropolitan livable communities fund accounts, right-of-way loan acquisition fund for transit operating deficits, and Metropolitan Council operating budget; establishing direct appropriation from transit assistance fund; establishing an account; modifying various provisions related to transportation finance and policy; modifying provisions related to licensing drivers; mandating and amending legislative reports; making technical and clarifying changes; amending Minnesota Statutes 2010, sections 16A.11, subdivision 3a; 16A.86, subdivision 3a; 16A.88;

Journal of the House - 61st Day - Friday, May 20, 2011 - Top of Page 4727

162.06, subdivision 1; 162.12, subdivision 1; 168.12, subdivision 5; 171.06, subdivision 2; 171.0701; 171.13, subdivision 1, by adding a subdivision; 174.93; 297A.992, subdivision 5, by adding a subdivision; Laws 2009, chapter 36, article 1, section 3, subdivision 3; proposing coding for new law in Minnesota Statutes, chapter 171.

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

Cal R. Ludeman, Secretary of the Senate

Mr. Speaker:

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

H. F. No. 895, A bill for an act relating to commerce; modifying certain insurance notices and authorizations to collect information; regulating certain insurance appraisers; amending Minnesota Statutes 2010, sections 60C.21, subdivision 1; 65A.12, subdivision 2; 72A.491, by adding a subdivision; 72A.501, subdivision 1, by adding a subdivision; 72A.502, subdivision 1.

Cal R. Ludeman, Secretary of the Senate

Mr. Speaker:

I hereby announce the adoption by the Senate of the following Senate Concurrent Resolution, herewith transmitted:

Senate Concurrent Resolution No. 8, A Senate concurrent resolution relating to adjournment of the Senate and House of Representatives until 2012.

Cal R. Ludeman, Secretary of the Senate

Senate Concurrent Resolution No. 8 was referred to the Committee on Rules and Legislative Administration.

Mr. Speaker:

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

S. F. No. 509.

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.

Cal R. Ludeman, Secretary of the Senate

The Conference Committee report on S. F. No. 509 was reported to the House.

Journal of the House - 61st Day - Friday, May 20, 2011 - Top of Page 4728

Kiffmeyer moved that the report of the Conference Committee on S. F. No. 509 be adopted and that the bill be repassed as amended by the Conference Committee.

A roll call was requested and properly seconded.

Atkins moved that the Conference Committee report on S. F. No. 509 be laid over. The motion did not prevail.

Thissen moved to postpone the consideration of the Conference Committee report on S. F. No. 509 to 12:00 noon, Saturday May 21, 2011. The motion prevailed.

Mr. Speaker:

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

S. F. No. 172.

Cal R. Ludeman, Secretary of the Senate

FIRST READING OF SENATE BILLS

S. F. No. 172, A bill for an act relating to natural resources; modifying certain requirements for titling watercraft; amending Minnesota Statutes 2010, sections 86B.825, subdivision 3; 86B.830, subdivision 2; 86B.850, subdivision 1; 86B.885; repealing Minnesota Statutes 2010, section 86B.850, subdivision 2.

The bill was read for the first time and referred to the Committee on Environment, Energy and Natural Resources Policy and Finance.

CALENDAR FOR THE DAY

H. F. No. 264 was reported to the House.

Atkins offered an amendment to H. F. No. 264, the first engrossment.

POINT OF ORDER

Wardlow raised a point of order pursuant to rule 3.21 that the Atkins amendment was not in order. Speaker pro tempore Davids ruled the point of order well taken and the Atkins amendment out of order.

Atkins offered an amendment to H. F. No. 264, the first engrossment.

Journal of the House - 61st Day - Friday, May 20, 2011 - Top of Page 4729

POINT OF ORDER

Wardlow raised a point of order pursuant to rule 3.21 that the Atkins amendment was not in order. Speaker pro tempore Davids ruled the point of order not well taken and the Atkins amendment in order.

POINT OF ORDER

Wardlow raised a point of order pursuant to rule 3.21 that the Atkins amendment was not in order. Speaker pro tempore Davids ruled the point of order well taken and the Atkins amendment out of order.

Atkins moved to amend H. F. No. 264, the first engrossment, as follows:

Page 2, line 9, delete everything after "food" and insert a period

Page 2, delete lines 10 and 11

A roll call was requested and properly seconded.

The question was taken on the Atkins amendment and the roll was called. There were 57 yeas and 74 nays as follows:

Those who voted in the affirmative were:

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

S. F. No. 191 was reported to the House.

Gruenhagen moved to amend S. F. No. 191 as follows:

Page 1, after line 8, insert:

"Section 1. Minnesota Statutes 2010, section 62A.17, subdivision 1, is amended to read:

Subdivision 1. Continuation of coverage. Every group insurance policy, group subscriber contract, and health care plan included within the provisions of section 62A.16, except policies, contracts, or health care plans covering employees of an agency of the federal government, shall contain a provision which permits every covered employee who is voluntarily or involuntarily terminated or laid off from employment, if the policy, contract, or health care plan remains in force for active employees of the employer, to elect to continue the coverage for the employee and dependents.

An employee shall be considered to be laid off from employment if there is a reduction in hours to the point where the employee is no longer eligible under the policy, contract, or health care plan. Termination shall not include discharge for gross misconduct.

Upon request by the terminated or laid off employee, a health carrier must provide the instructions necessary to enable the employee to: (1) elect continuation of coverage under this subdivision; or (2) if the employer is a small employer as defined in section 62L.02, subdivision 26, elect a GAP policy under subdivision 7.

EFFECTIVE DATE. This section is effective January 1, 2012, and applies to losses of eligibility for small employer group coverage that begin on or after that date.

Sec. 2. Minnesota Statutes 2010, section 62A.17, subdivision 6, is amended to read:

Subd. 6. Conversion to individual policy. A group insurance policy that provides posttermination or layoff coverage as required by this section shall also include a provision allowing a covered employee, surviving spouse, or dependent at the expiration of the posttermination or layoff coverage provided by subdivision 2, or at the expiration of a GAP policy under subdivision 7, to obtain from the insurer offering the group policy or group subscriber contract, at the employee's, spouse's, or dependent's option and expense, without further evidence of insurability and without interruption of coverage, an individual policy of insurance or an individual subscriber contract providing at least the minimum benefits of a qualified plan as prescribed by section 62E.06 and the option of a number three qualified plan, a number two qualified plan, and a number one qualified plan as provided by section 62E.06, subdivisions 1 to 3, provided application is made to the insurer within 30 days following notice of the expiration of the continued or GAP coverage and upon payment of the appropriate premium. The required conversion contract must treat pregnancy the same as any other covered illness under the conversion contract. A health maintenance

Journal of the House - 61st Day - Friday, May 20, 2011 - Top of Page 4736

contract issued by a health maintenance organization that provides posttermination or layoff coverage as required by this section shall also include a provision allowing a former employee, surviving spouse, or dependent at the expiration of the posttermination or layoff coverage provided in subdivision 2 or 7 to obtain from the health maintenance organization, at the former employee's, spouse's, or dependent's option and expense, without further evidence of insurability and without interruption of coverage, an individual health maintenance contract. Effective January 1, 1985, enrollees who have become nonresidents of the health maintenance organization's service area shall be given the option, to be arranged by the health maintenance organization, of a number three qualified plan, a number two qualified plan, or a number one qualified plan as provided by section 62E.06, subdivisions 1 to 3. This option shall be made available at the enrollee's expense, without further evidence of insurability and without interruption of coverage.

A policy providing reduced benefits at a reduced premium rate may be accepted by the employee, the spouse, or a dependent in lieu of the optional coverage otherwise required by this subdivision.

The individual policy or contract shall be renewable at the option of the individual as long as the individual is not covered under another qualified plan as defined in section 62E.02, subdivision 4. Any revisions in the table of rate for the individual policy shall apply to the covered person's original age at entry and shall apply equally to all similar policies issued by the insurer.

EFFECTIVE DATE. This section is effective January 1, 2012, and applies to losses of eligibility for small employer group coverage that begin on or after that date.

Sec. 3. Minnesota Statutes 2010, section 62A.17, is amended by adding a subdivision to read:

Subd. 7. Direct access to a GAP policy. (a) In addition to other coverage required to be available under this section, a health plan that provides group health coverage to a small employer as defined in section 62L.02, subdivision 26, must contain a provision which provides to every covered employee eligible for continuation health coverage under subdivision 1, the right to instead obtain from the health carrier a direct GAP policy under this subdivision without first enrolling in and completing continuation coverage. The health carrier, on behalf of the employer, shall provide the former employee with written notice of the former employee's rights in regard to a GAP policy under this section. Coverage under this subdivision must be offered to any terminated or laid-off employee to whom continuation coverage must be offered under federal law or Minnesota law, if the employer is a small employer as defined in section 62L.02, subdivision 26.

(b) This subdivision does not apply to a health plan issued by a health carrier that is assessed less than three percent of the total annual amount assessed by the Minnesota Comprehensive Health Association. For purposes of this calculation, a health carrier's assessments include those of its affiliates.

(c) The individual direct GAP policies available to a former employee, including dependent coverage at the option of the former employee, must consist of at least the following options:

(1) annual deductible of $1,000 per individual, 80 percent coverage above the deductible, subject to an annual $10,000 limit on out-of-pocket costs;

(2) a $15,000 annual deductible plan and 100 percent coverage thereafter; and

(3) qualified high-deductible health plan and health savings account with an annual deductible of $5,950 per individual and $11,900 per family, with 100 percent coverage above those deductibles.

The deductibles allowed under this paragraph are adjusted annually to match the federal law regarding qualified high-deductible health plans and health savings accounts.

Journal of the House - 61st Day - Friday, May 20, 2011 - Top of Page 4737

(d) Policies issued under this subdivision shall be included in the health carrier's small employer group risk pool.

(e) A former employee is not eligible for GAP coverage under this subdivision if the former employee has enrolled in continuation coverage under subdivisions 1 to 5. An election to receive coverage under this subdivision must be made no later than the deadline for electing continuation coverage under subdivisions 1 to 5.

(f) GAP coverage must be offered up to the maximum duration required under the federal COBRA law for continuation coverage of the former employee or other eligible individual.

(g) The conversion plan option must be offered to GAP plan enrollees at the conclusion of eligibility for GAP coverage.

(h) GAP coverage under this subdivision must be available on a guaranteed-issue basis, following the HIPPA preexisting condition limitation for employer-provided group insurance.

(i) Health plan companies shall pay the same service fees equal to those fees being paid under the employer's group insurance plan to the licensed health insurance producer that enrolls the individual in a GAP plan, to be paid for the period in which the individual continues GAP coverage. The commissioner is not responsible for enforcing this paragraph.

EFFECTIVE DATE. This section is effective January 1, 2012, and applies to losses of eligibility for small employer group coverage that begin on or after that date."

Renumber the sections in sequence and correct the internal references

Amend the title accordingly

The motion prevailed and the amendment was adopted.

Huntley moved to amend S. F. No. 191, as amended, as follows:

Page 1, after line 8, insert:

"Section 1. Minnesota Statutes 2010, section 62U.04, subdivision 9, is amended to read:

Subd. 9. Uses of information. (a) By no later than 12 months after the commissioner publishes the information in subdivision 3, paragraph (e):

(1) the commissioner of management and budget shall use the information and methods developed under subdivision 3 to strengthen incentives for members of the state employee group insurance program to use high-quality, low-cost providers;

(2) all political subdivisions, as defined in section 13.02, subdivision 11, that offer health benefits to their employees must offer plans that differentiate providers on their cost and quality performance and create incentives for members to use better-performing providers;

(3) all health plan companies shall use the information and methods developed under subdivision 3 to develop products that encourage consumers to use high-quality, low-cost providers; and

Journal of the House - 61st Day - Friday, May 20, 2011 - Top of Page 4738

(4) health plan companies that issue health plans in the individual market or the small employer market must offer at least one health plan that uses the information developed under subdivision 3 to establish financial incentives for consumers to choose higher-quality, lower-cost providers through enrollee cost-sharing or selective provider networks. A health plan company that offers such a health plan to small employers may permit an employer that has grown to exceed 50 employees to continue enrollment in that health plan.

(b) By January 1, 2011, the commissioner of health shall report to the governor and the legislature on recommendations to encourage health plan companies to promote widespread adoption of products that encourage the use of high-quality, low-cost providers. The commissioner's recommendations may include tax incentives, public reporting of health plan performance, regulatory incentives or changes, and other strategies."

Renumber the sections in sequence and correct the internal references

Amend the title accordingly

Atkins; Murphy, E.; Huntley; Hosch and Loeffler moved to amend the Huntley amendment to S. F. No. 191, as amended, as follows:

Page 1, after line 27, insert:

"Sec. 2. Minnesota Statutes 2010, section 62U.04, is amended by adding a subdivision to read:

Subd. 10. Creation of Minnesota health insurance exchange. (a) A working group is created to design and create a Minnesota health insurance exchange. The exchange must meet at least the minimum requirements for a health insurance exchange under federal law.

(b) The working group shall consist of four appointees of the governor, two appointees of the speaker of the house, and two appointees of the majority leader of the senate.

(d) This subdivision expires 30 days after federal law requiring a health insurance exchange is repealed or determined to be unconstitutional by the United States Supreme Court.

(e) The working group must complete its duties no later than November 1, 2011. If those duties are not completed by that date, the working group shall expire, and the Commissioner of Commerce shall assume its duties and complete its work."

Renumber the sections in sequence and correct the internal references

Amend the title accordingly

A roll call was requested and properly seconded.

Journal of the House - 61st Day - Friday, May 20, 2011 - Top of Page 4739

The question was taken on the amendment to the amendment and the roll was called. There were 62 yeas and 71 nays as follows:

Those who voted in the affirmative were:

Abeler

Anderson, B.

Anderson, D.

Anderson, P.

Anderson, S.

Anzelc

Atkins

Banaian

Barrett

Beard

Benson, J.

Benson, M.

Bills

Brynaert

Buesgens

Carlson

Champion

Clark

Journal of the House - 61st Day - Friday, May 20, 2011 - Top of Page 4740

Cornish

Crawford

Davids

Davnie

Dean

Dettmer

Dittrich

Doepke

Downey

Drazkowski

Eken

Erickson

Fabian

Falk

Franson

Fritz

Garofalo

Gauthier

Gottwalt

Greene

Greiling

Gruenhagen

Gunther

Hackbarth

Hamilton

Hancock

Hansen

Hausman

Hayden

Hilstrom

Hilty

Holberg

Hoppe

Hornstein

Hortman

Hosch

Huntley

Johnson

Kahn

Kath

Kelly

Kieffer

Kiel

Kiffmeyer

Knuth

Koenen

Kriesel

Laine

Lanning

Leidiger

LeMieur

Lenczewski

Lesch

Liebling

Lillie

Loeffler

Lohmer

Loon

Mack

Mahoney

Mariani

Marquart

Mazorol

McDonald

McElfatrick

McFarlane

McNamara

Melin

Moran

Morrow

Mullery

Murdock

Murphy, E.

Murphy, M.

Murray

Myhra

Nelson

Nornes

Norton

O'Driscoll

Paymar

Pelowski

Peppin

Persell

Petersen, B.

Peterson, S.

Poppe

Quam

Rukavina

Runbeck

Sanders

Scalze

Schomacker

Scott

Shimanski

Simon

Slawik

Slocum

Smith

Stensrud

Swedzinski

Thissen

Tillberry

Torkelson

Urdahl

Vogel

Wagenius

Ward

Wardlow

Westrom

Winkler

Woodard

Spk. Zellers

Abeler

Anderson, B.

Anderson, D.

Anderson, P.

Anderson, S.

Anzelc

Atkins

Banaian

Barrett

Beard

Benson, J.

Benson, M.

Bills

Brynaert

Buesgens

Carlson

Champion

Clark

Cornish

Crawford

Daudt

Davids

Davnie

Dean

Dettmer

Dittrich

Doepke

Downey

Drazkowski

Eken

Erickson

Fabian

Falk

Franson

Fritz

Garofalo

Gauthier

Gottwalt

Greene

Greiling

Gruenhagen

Gunther

Hackbarth

Hamilton

Hancock

Hansen

Hausman

Hayden

Hilstrom

Hilty

Holberg

Hoppe

Hornstein

Hortman

Hosch

Howes

Huntley

Johnson

Kahn

Kath

Kelly

Kieffer

Kiel

Kiffmeyer

Knuth

Koenen

Kriesel

Laine

Lanning

Leidiger

LeMieur

Lenczewski

Lesch

Liebling

Lillie

Loeffler

Lohmer

Loon

Mack

Mahoney

Mariani

Marquart

Mazorol

McDonald

McElfatrick

McFarlane

McNamara

Melin

Moran

Morrow

Mullery

Murdock

Murphy, E.

Murphy, M.

Murray

Myhra

Nelson

Nornes

Norton

O'Driscoll

Paymar

Pelowski

Peppin

Persell

Petersen, B.

Peterson, S.

Poppe

Quam

Rukavina

Runbeck

Sanders

Scalze

Schomacker

Scott

Shimanski

Simon

Slawik

Slocum

Smith

Stensrud

Swedzinski

Thissen

Tillberry

Torkelson

Urdahl

Vogel

Wagenius

Ward

Wardlow

Westrom

Winkler

Woodard

Spk. Zellers

The bill was passed and its title agreed to.

Journal of the House - 61st Day - Friday, May 20, 2011 - Top of Page 4741

There being no objection, the order of business reverted to Messages from the Senate.

MESSAGES FROM THE SENATE

The following messages were received from the Senate:

Mr. Speaker:

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

H. F. No. 1343, A bill for an act relating to civil actions; providing immunity in certain cases involving the use of school facilities for recreational activities; amending Minnesota Statutes 2010, section 466.03, subdivision 6e, by adding a subdivision.

Cal R. Ludeman, Secretary of the Senate

Mr. Speaker:

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

H. F. No. 57, A bill for an act relating to public safety; establishing the crimes of sale or possession of synthetic cannabinoids; including a person under the influence of a synthetic cannabinoid for a driving while impaired crime; providing for a penalty; amending Minnesota Statutes 2010, sections 152.027, by adding a subdivision; 169A.20, subdivisions 1, 1a, 1b, 1c.

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

Cal R. Ludeman, Secretary of the Senate

Mr. Speaker:

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

H. F. No. 186, A bill for an act relating to drivers' licenses; extending expiration period for driver's license while person is serving in active military service; amending Minnesota Statutes 2010, section 171.27.

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

Cal R. Ludeman, Secretary of the Senate

Journal of the House - 61st Day - Friday, May 20, 2011 - Top of Page 4742

Mr. Speaker:

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

H. F. No. 201, A bill for an act relating to health; limiting use of funds for state-sponsored health programs for funding abortions.

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

Cal R. Ludeman, Secretary of the Senate

Mr. Speaker:

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

H. F. No. 1326, A bill for an act relating to liquor; authorizing brewer taproom licenses; allowing a bed and breakfast to serve Minnesota beer; making clarifying, technical, and other changes to certain license provisions; authorizing the issuance of certain on-sale and off-sale licenses; amending Minnesota Statutes 2010, sections 340A.301, by adding a subdivision; 340A.4011, subdivision 2; 340A.404, subdivision 7, by adding subdivisions; 340A.412, subdivisions 4, 14.

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

Cal R. Ludeman, Secretary of the Senate

Mr. Speaker:

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

H. F. No. 247, A bill for an act relating to taxation; providing for voluntary contributions to the state on the income tax form; proposing coding for new law in Minnesota Statutes, chapter 290.

Cal R. Ludeman, Secretary of the Senate

Davids moved that the House refuse to concur in the Senate amendments to H. F. No. 247, that the Speaker appoint a Conference Committee of 3 members of the House, and that the House requests that a like committee be appointed by the Senate to confer on the disagreeing votes of the two houses. The motion prevailed.

Journal of the House - 61st Day - Friday, May 20, 2011 - Top of Page 4743

Mr. Speaker:

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

H. F. No. 874, A bill for an act relating to education finance; removing obsolete language; amending Minnesota Statutes 2010, section 126C.10, subdivision 2.

Cal R. Ludeman, Secretary of the Senate

Garofalo moved that the House refuse to concur in the Senate amendments to H. F. No. 874, that the Speaker appoint a Conference Committee of 3 members of the House, and that the House requests that a like committee be appointed by the Senate to confer on the disagreeing votes of the two houses. The motion prevailed.

Mr. Speaker:

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

H. F. No. 1234, A bill for an act relating to state government; requiring the commissioner of administration to issue a request for proposals and enter into a contract for strategic sourcing consulting services; appropriating money.

Cal R. Ludeman, Secretary of the Senate

Downey moved that the House refuse to concur in the Senate amendments to H. F. No. 1234, that the Speaker appoint a Conference Committee of 3 members of the House, and that the House requests that a like committee be appointed by the Senate to confer on the disagreeing votes of the two houses. The motion prevailed.

Mr. Speaker:

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

S. F. No. 429.

Cal R. Ludeman, Secretary of the Senate

FIRST READING OF SENATE BILLS

S. F. No. 429, A bill for an act relating to civil actions; providing a factor for determining the amount of attorney fees awarded in certain actions; proposing coding for new law in Minnesota Statutes, chapter 549.

The bill was read for the first time.

Mazorol moved that S. F. No. 429 and H. F. No. 747, now on the General Register, be referred to the Chief Clerk for comparison. The motion prevailed.

Journal of the House - 61st Day - Friday, May 20, 2011 - Top of Page 4744

Dean 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 Messages from the Senate.

MESSAGES FROM THE SENATE

The following messages were received from the Senate:

Mr. Speaker:

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

H. F. No. 1011, A bill for an act relating to natural resources; providing for disposition of trout and salmon management account; appropriating money; amending Minnesota Statutes 2010, section 97A.075, subdivision 3.

Cal R. Ludeman, Secretary of the Senate

McNamara moved that the House refuse to concur in the Senate amendments to H. F. No. 1011, that the Speaker appoint a Conference Committee of 3 members of the House, and that the House requests that a like committee be appointed by the Senate to confer on the disagreeing votes of the two houses. The motion prevailed.

Mr. Speaker:

I hereby announce the passage by the Senate of the following Senate Files, herewith transmitted:

S. F. Nos. 477, 1159, 1287, 1340, 1173 and 1268.

Cal R. Ludeman, Secretary of the Senate

FIRST READING OF SENATE BILLS

S. F. No. 477, A bill for an act relating to health; modifying provisions for food, beverage, and lodging establishments; amending Minnesota Statutes 2010, sections 157.15, subdivision 12b; 157.22.

The bill was read for the first time.

Drazkowski moved that S. F. No. 477 and H. F. No. 637, now on the Calendar for the Day, be referred to the Chief Clerk for comparison. The motion prevailed.

Journal of the House - 61st Day - Friday, May 20, 2011 - Top of Page 4745

S. F. No. 1159, A bill for an act relating to workers' compensation; adopting recommendations of the Workers' Compensation Advisory Council; increasing amount available for remodeling or alteration projects; requiring rulemaking; appropriating money; amending Minnesota Statutes 2010, sections 14.48, subdivisions 2, 3; 14.49; 14.50; 176.106, subdivisions 1, 3, 5, 6, 7, 8, 9; 176.137, subdivisions 2, 4, 5; 176.238, subdivision 6; 176.305, subdivisions 1, 1a; 176.307; 176.341, subdivision 4.

The bill was read for the first time.

Kieffer moved that S. F. No. 1159 and H. F. No. 1362, now on the General Register, be referred to the Chief Clerk for comparison. The motion prevailed.

S. F. No. 1287, A bill for an act relating to human services; modifying certain provisions regarding the Minnesota sex offender program; amending Minnesota Statutes 2010, sections 253B.141, subdivision 2; 253B.185, subdivisions 1, 16, by adding subdivisions; 253B.19, subdivision 2; 609.485, subdivision 2.

The bill was read for the first time.

Kiffmeyer moved that S. F. No. 1287 and H. F. No. 1478, now on the General Register, be referred to the Chief Clerk for comparison. The motion prevailed.

S. F. No. 1340, A bill for an act relating to counties; giving counties authority to provide for the general welfare; establishing an alternative service delivery pilot program for waivers; amending Minnesota Statutes 2010, section 375.18, by adding a subdivision; proposing coding for new law in Minnesota Statutes, chapter 402A.

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

S. F. No. 1173, A bill for an act relating to human services; providing for child safety and permanency reform, including adoptions of children under guardianship of the commissioner; modifying certain child support statutory provisions; providing for criminal penalties; amending Minnesota Statutes 2010, sections 256.01, subdivision 14b; 257.01; 257.75, subdivision 7; 259.69; 259.73; 260.012; 260C.001; 260C.007, subdivision 4, by adding subdivisions; 260C.101, subdivision 2; 260C.150, subdivision 1; 260C.157, subdivisions 1, 3; 260C.163, subdivisions 1, 4; 260C.178, subdivisions 1, 7; 260C.193, subdivisions 3, 6; 260C.201, subdivisions 2, 10; 260C.212, subdivisions 5, 7; 260C.215, subdivisions 4, 6; 260C.301, subdivisions 1, 8; 260C.328; 260C.451; 260D.08; 518C.205; 626.556, subdivisions 2, 10, 10e, 10f, 10i, 10k; proposing coding for new law in Minnesota Statutes, chapters 260C; 611; proposing coding for new law as Minnesota Statutes, chapter 259A; repealing Minnesota Statutes 2010, sections 256.022; 259.67; 259.71; 260C.201, subdivision 11; 260C.215, subdivision 2; 260C.456; Minnesota Rules, parts 9560.0071; 9560.0082; 9560.0083; 9560.0091; 9560.0093, subparts 1, 3, 4; 9560.0101; 9560.0102.

The bill was read for the first time.

Gottwalt moved that S. F. No. 1173 and H. F. No. 1423, now on the General Register, be referred to the Chief Clerk for comparison. The motion prevailed.

S. F. No. 1268, A bill for an act relating to commerce; authorizing the imposition of certain fees in connection with certain loan transactions; amending Minnesota Statutes 2010, section 47.59, subdivision 6.

The bill was read for the first time.

Anderson, S., moved that S. F. No. 1268 and H. F. No. 1195, now on the General Register, be referred to the Chief Clerk for comparison. The motion prevailed.

Journal of the House - 61st Day - Friday, May 20, 2011 - Top of Page 4746

CALENDAR FOR THE DAY

S. F. No. 1044, as amended on Thursday, May 19, 2011, was reported to the House.

Drazkowski moved to amend S. F. No. 1044, the first engrossment, as amended, as follows:

Page 5, line 6, delete everything after "ASSISTANCE" and insert a period

Page 5, delete line 7

Page 5, line 10, delete "of Hammond and Zumbro Falls" and insert "located within a county designated for public assistance under Presidential Declaration of a Major Disaster FEMA-1941-DR, whether included in the original declarations or added later by federal government action,"

Page 5, after line 15, insert:

"Sec. 13. FLOOD HAZARD MITIGATION GRANTS; LOCAL SHARE.

Transferred funds under Minnesota Statutes, section 12A.03, subdivision 5, that are used for flood hazard mitigation grants under Minnesota Statutes, section 12A.12, subdivision 2, may be used for the local share of flood hazard mitigation grants awarded under Minnesota Statutes, section 12A.12, subdivision 2, for the storms and flooding that occurred on or after September 22, 2010, in the area of Minnesota designated under Presidential Declaration of a Major Disaster FEMA-1941-DR, whether included in the original declarations or added later by federal government action.

EFFECTIVE DATE. This section is effective retroactively from October 19, 2010."

Renumber the sections in sequence and correct the internal references

Amend the title accordingly

The motion prevailed and the amendment was adopted.

S. F. No. 1044, A bill for an act relating to state government; modifying provisions relating to state agency responses to natural disasters; amending Minnesota Statutes 2010, sections 12A.05; 12A.06, subdivision 1; 12A.07, subdivisions 1, 2; 12A.09, subdivision 4; 12A.10, by adding a subdivision; 12A.12, subdivisions 2, 3, by adding a subdivision; 12A.15, by adding a subdivision; 12A.16.

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

The question was taken on the passage of the bill and the roll was called. There were 133 yeas and 1 nay as follows:

Those who voted in the affirmative were:

Abeler

Anderson, B.

Anderson, D.

Anderson, P.

Anderson, S.

Anzelc

Atkins

Banaian

Barrett

Beard

Benson, J.

Bills

Brynaert

Buesgens

Carlson

Champion

Clark

Cornish

Journal of the House - 61st Day - Friday, May 20, 2011 - Top of Page 4747

Crawford

Daudt

Davids

Davnie

Dean

Dettmer

Dill

Dittrich

Doepke

Downey

Drazkowski

Eken

Erickson

Fabian

Falk

Franson

Fritz

Garofalo

Gauthier

Gottwalt

Greene

Greiling

Gruenhagen

Gunther

Hackbarth

Hamilton

Hancock

Hansen

Hausman

Hayden

Hilstrom

Hilty

Holberg

Hoppe

Hornstein

Hortman

Hosch

Howes

Huntley

Johnson

Kahn

Kath

Kelly

Kieffer

Kiel

Kiffmeyer

Knuth

Koenen

Kriesel

Laine

Lanning

Leidiger

LeMieur

Lenczewski

Lesch

Liebling

Lillie

Loeffler

Lohmer

Loon

Mack

Mahoney

Mariani

Marquart

Mazorol

McDonald

McElfatrick

McFarlane

McNamara

Melin

Moran

Morrow

Mullery

Murdock

Murphy, E.

Murphy, M.

Murray

Myhra

Nelson

Nornes

Norton

O'Driscoll

Paymar

Pelowski

Peppin

Persell

Petersen, B.

Peterson, S.

Poppe

Quam

Rukavina

Runbeck

Sanders

Scalze

Schomacker

Scott

Shimanski

Simon

Slawik

Slocum

Smith

Stensrud

Swedzinski

Thissen

Tillberry

Torkelson

Urdahl

Vogel

Wagenius

Ward

Wardlow

Westrom

Winkler

Woodard

Spk. Zellers

Abeler

Anderson, B.

Anderson, D.

Anderson, P.

Anderson, S.

Anzelc

Atkins

Banaian

Barrett

Beard

Benson, J.

Bills

Brynaert

Buesgens

Carlson

Champion

Clark

Cornish

Crawford

Daudt

Davids

Davnie

Dean

Dettmer

Dill

Dittrich

Doepke

Downey

Drazkowski

Eken

Erickson

Fabian

Falk

Franson

Fritz

Garofalo

Gauthier

Gottwalt

Greene

Greiling

Gruenhagen

Gunther

Hackbarth

Hamilton

Hancock

Hansen

Hausman

Hayden

Hilstrom

Hilty

Holberg

Hoppe

Hornstein

Hortman

Hosch

Howes

Huntley

Johnson

Kahn

Kath

Kelly

Kieffer

Kiel

Kiffmeyer

Knuth

Koenen

Kriesel

Laine

Lanning

Leidiger

LeMieur

Lenczewski

Lesch

Liebling

Lillie

Loeffler

Lohmer

Loon

Mack

Mahoney

Mariani

Marquart

Mazorol

McDonald

McElfatrick

McFarlane

McNamara

Melin

Moran

Morrow

Mullery

Murdock

Murphy, E.

Murphy, M.

Murray

Myhra

Nelson

Nornes

Norton

O'Driscoll

Paymar

Pelowski

Peppin

Persell

Petersen, B.

Peterson, S.

Poppe

Quam

Rukavina

Runbeck

Sanders

Scalze

Schomacker

Scott

Shimanski

Simon

Slawik

Slocum

Smith

Stensrud

Swedzinski

Thissen

Tillberry

Torkelson

Urdahl

Vogel

Wagenius

Ward

Wardlow

Westrom

Winkler

Woodard

Spk. Zellers

Abeler

Anderson, B.

Anderson, D.

Anderson, P.

Anderson, S.

Anzelc

Atkins

Banaian

Barrett

Beard

Benson, J.

Bills

Brynaert

Buesgens

Carlson

Champion

Clark

Cornish

Crawford

Daudt

Davids

Davnie

Dean

Dettmer

Dill

Dittrich

Doepke

Downey

Drazkowski

Eken

Erickson

Fabian

Falk

Franson

Fritz

Garofalo

Gauthier

Gottwalt

Greene

Greiling

Gruenhagen

Gunther

Hackbarth

Hamilton

Hancock

Hansen

Hausman

Hayden

Hilstrom

Hilty

Holberg

Hoppe

Hornstein

Hortman

Hosch

Howes

Huntley

Johnson

Kahn

Kath

Kelly

Kieffer

Kiel

Kiffmeyer

Knuth

Koenen

Kriesel

Laine

Lanning

Leidiger

LeMieur

Lenczewski

Lesch

Lillie

Loeffler

Lohmer

Loon

Mack

Mahoney

Mariani

Marquart

Mazorol

McDonald

McElfatrick

McFarlane

McNamara

Melin

Moran

Morrow

Mullery

Murdock

Murphy, E.

Murphy, M.

Murray

Myhra

Nelson

Nornes

Norton

O'Driscoll

Pelowski

Peppin

Persell

Petersen, B.

Peterson, S.

Poppe

Quam

Rukavina

Runbeck

Sanders

Scalze

Schomacker

Scott

Shimanski

Simon

Slawik

Slocum

Smith

Stensrud

Swedzinski

Thissen

Tillberry

Torkelson

Urdahl

Vogel

Wagenius

Ward

Wardlow

Westrom

Winkler

Woodard

Spk. Zellers

Abeler

Anderson, B.

Anderson, D.

Anderson, P.

Anderson, S.

Anzelc

Atkins

Banaian

Barrett

Beard

Benson, J.

Bills

Brynaert

Buesgens

Carlson

Champion

Clark

Cornish

Crawford

Daudt

Davids

Davnie

Dean

Dettmer

Dill

Dittrich

Doepke

Downey

Drazkowski

Eken

Erickson

Fabian

Falk

Franson

Fritz

Garofalo

Gauthier

Gottwalt

Greene

Greiling

Gruenhagen

Gunther

Hackbarth

Hamilton

Hancock

Hansen

Hausman

Hayden

Hilstrom

Hilty

Holberg

Hoppe

Hornstein

Hortman

Journal of the House - 61st Day - Friday, May 20, 2011 - Top of Page 4751

Hosch

Howes

Huntley

Johnson

Kahn

Kath

Kelly

Kieffer

Kiel

Kiffmeyer

Knuth

Koenen

Kriesel

Laine

Lanning

Leidiger

LeMieur

Lenczewski

Lesch

Liebling

Lillie

Loeffler

Lohmer

Loon

Mack

Mahoney

Mariani

Marquart

Mazorol

McDonald

McElfatrick

McFarlane

McNamara

Melin

Moran

Morrow

Mullery

Murdock

Murphy, E.

Murphy, M.

Murray

Myhra

Nelson

Nornes

Norton

O'Driscoll

Paymar

Pelowski

Peppin

Persell

Petersen, B.

Peterson, S.

Poppe

Rukavina

Runbeck

Sanders

Scalze

Schomacker

Scott

Shimanski

Simon

Slawik

Slocum

Smith

Stensrud

Swedzinski

Thissen

Tillberry

Torkelson

Urdahl

Vogel

Wagenius

Ward

Wardlow

Westrom

Winkler

Woodard

Spk. Zellers

Abeler

Anderson, B.

Anderson, D.

Anderson, P.

Anderson, S.

Anzelc

Atkins

Banaian

Barrett

Beard

Benson, J.

Bills

Brynaert

Buesgens

Carlson

Champion

Clark

Cornish

Crawford

Daudt

Davids

Davnie

Dean

Dettmer

Dill

Dittrich

Doepke

Downey

Drazkowski

Eken

Erickson

Fabian

Falk

Fritz

Garofalo

Gauthier

Gottwalt

Greene

Greiling

Gruenhagen

Gunther

Hackbarth

Hamilton

Hancock

Hansen

Hausman

Hayden

Hilstrom

Hilty

Holberg

Hoppe

Hornstein

Hortman

Hosch

Howes

Huntley

Johnson

Kahn

Kath

Kelly

Kieffer

Kiel

Kiffmeyer

Knuth

Koenen

Kriesel

Laine

Lanning

Leidiger

LeMieur

Lenczewski

Lesch

Liebling

Lillie

Loeffler

Lohmer

Loon

Mack

Mahoney

Mariani

Marquart

Mazorol

McDonald

McElfatrick

McFarlane

McNamara

Melin

Moran

Morrow

Mullery

Murdock

Murphy, E.

Murphy, M.

Murray

Myhra

Nelson

Nornes

Norton

O'Driscoll

Paymar

Pelowski

Peppin

Journal of the House - 61st Day - Friday, May 20, 2011 - Top of Page 4752

Persell

Petersen, B.

Peterson, S.

Poppe

Rukavina

Sanders

Scalze

Schomacker

Scott

Shimanski

Simon

Slawik

Slocum

Smith

Stensrud

Swedzinski

Thissen

Tillberry

Torkelson

Urdahl

Vogel

Wagenius

Ward

Wardlow

Westrom

Winkler

Woodard

Spk. Zellers

Abeler

Anderson, B.

Anderson, D.

Anderson, P.

Anderson, S.

Anzelc

Atkins

Banaian

Barrett

Beard

Benson, J.

Bills

Brynaert

Buesgens

Carlson

Champion

Clark

Cornish

Crawford

Daudt

Davids

Davnie

Dean

Dettmer

Dill

Dittrich

Doepke

Downey

Drazkowski

Eken

Erickson

Fabian

Falk

Franson

Fritz

Garofalo

Gauthier

Gottwalt

Greene

Greiling

Gruenhagen

Gunther

Hackbarth

Hamilton

Hancock

Hansen

Hausman

Hayden

Hilstrom

Hilty

Holberg

Hoppe

Hornstein

Hortman

Hosch

Howes

Huntley

Johnson

Kahn

Kath

Kelly

Kieffer

Kiel

Kiffmeyer

Knuth

Koenen

Kriesel

Laine

Lanning

Leidiger

LeMieur

Lenczewski

Lesch

Liebling

Lillie

Loeffler

Lohmer

Loon

Mack

Mahoney

Mariani

Marquart

Mazorol

McDonald

McElfatrick

McFarlane

McNamara

Melin

Moran

Morrow

Mullery

Murdock

Murphy, E.

Murphy, M.

Murray

Myhra

Nelson

Nornes

Norton

O'Driscoll

Paymar

Pelowski

Peppin

Persell

Petersen, B.

Peterson, S.

Poppe

Rukavina

Runbeck

Sanders

Scalze

Schomacker

Scott

Shimanski

Simon

Slawik

Slocum

Smith

Stensrud

Swedzinski

Thissen

Tillberry

Torkelson

Urdahl

Vogel

Wagenius

Ward

Wardlow

Westrom

Winkler

Woodard

Spk. Zellers

The bill was passed and its title agreed to.

H. F. No. 1219 was reported to the House.

Davids moved to amend H. F. No. 1219, the first engrossment, as follows:

Page 71, after line 14, insert:

"Sec. 16. Minnesota Statutes 2010, section 469.176, subdivision 4c, is amended to read:

Subd. 4c. Economic development districts. (a) Revenue derived from tax increment from an economic development district may not be used to provide improvements, loans, subsidies, grants, interest rate subsidies, or assistance in any form to developments consisting of buildings and ancillary facilities, if more than 15 percent of the buildings and facilities (determined on the basis of square footage) are used for a purpose other than:

(1) the manufacturing or production of tangible personal property, including processing resulting in the change in condition of the property;

(2) warehousing, storage, and distribution of tangible personal property, excluding retail sales;

(3) research and development related to the activities listed in clause (1) or (2);

(4) telemarketing if that activity is the exclusive use of the property;

(5) tourism facilities;

(6) qualified border retail facilities; or

(7) space necessary for and related to the activities listed in clauses (1) to (6).

(b) Notwithstanding the provisions of this subdivision, revenues derived from tax increment from an economic development district may be used to provide improvements, loans, subsidies, grants, interest rate subsidies, or assistance in any form for up to 15,000 square feet of any separately owned commercial facility located within the municipal jurisdiction of a small city, if the revenues derived from increments are spent only to assist the facility directly or for administrative expenses, the assistance is necessary to develop the facility, and all of the increments, except those for administrative expenses, are spent only for activities within the district.

(c) A city is a small city for purposes of this subdivision if the city was a small city in the year in which the request for certification was made and applies for the rest of the duration of the district, regardless of whether the city qualifies or ceases to qualify as a small city.

(d) Notwithstanding the requirements of paragraph (a) and the finding requirements of section 469.174, subdivision 12, tax increments from an economic development district may be used to provide improvements, loans, subsidies, grants, interest rate subsidies, or assistance in any form to developments consisting of buildings and ancillary facilities, if all the following conditions are met:

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(1) the municipality finds that the project will create or retain jobs in this state, including construction jobs, and that construction of the project would not have commenced before July 1, ~~2011~~ 2012, without the authority providing assistance under the provisions of this paragraph;

(2) construction of the project begins no later than July 1, ~~2011~~ 2012; ~~and~~

(3) the request for certification of the district is made no later than June 30, ~~2011~~ 2012; and

(4) for development of housing under this paragraph, the construction must begin before January 1, 2012.

The provisions of this paragraph may not be used to assist housing that is developed to qualify under section 469.1761, subdivision 2 or 3, or similar requirements of other law, if construction of the project begins later than July 1, 2011.

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

Sec. 17. Minnesota Statutes 2010, section 469.176, subdivision 4m, is amended to read:

Subd. 4m. Temporary authority to stimulate construction. (a) Notwithstanding the restrictions in any other subdivision of this section or any other law to the contrary, except the requirement to pay bonds to which the increments are pledged and the provisions of subdivisions 4g and 4h, the authority may spend tax increments for one or more of the following purposes:

(1) to provide improvements, loans, interest rate subsidies, or assistance in any form to private development consisting of the construction or substantial rehabilitation of buildings and ancillary facilities, if doing so will create or retain jobs in this state, including construction jobs, and that the construction commences before July 1, ~~2011~~ 2012, and would not have commenced before that date without the assistance; or

(2) to make an equity or similar investment in a corporation, partnership, or limited liability company that the authority determines is necessary to make construction of a development that meets the requirements of clause (1) financially feasible.

(b) The authority may undertake actions under the authority of this subdivision only after approval by the municipality of a written spending plan that specifically authorizes the authority to take the actions. The municipality shall approve the spending plan only after a public hearing after published notice in a newspaper of general circulation in the municipality at least once, not less than ten days nor more than 30 days prior to the date of the hearing.

(d) For a development consisting of housing, the authority to spend tax increments under this subdivision expires December 31, 2011, and construction must commence before July 1, 2011, except the authority to spend tax increments on market rate housing developments under this subdivision expires July 31, 2012, and construction must commence before January 1, 2012.

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

Sec. 18. Minnesota Statutes 2010, section 469.1763, subdivision 2, is amended to read:

Subd. 2. Expenditures outside district. (a) For each tax increment financing district, an amount equal to at least 75 percent of the total revenue derived from tax increments paid by properties in the district must be expended on activities in the district or to pay bonds, to the extent that the proceeds of the bonds were used to finance

Journal of the House - 61st Day - Friday, May 20, 2011 - Top of Page 4755

activities in the district or to pay, or secure payment of, debt service on credit enhanced bonds. For districts, other than redevelopment districts for which the request for certification was made after June 30, 1995, the in-district percentage for purposes of the preceding sentence is 80 percent. Not more than 25 percent of the total revenue derived from tax increments paid by properties in the district may be expended, through a development fund or otherwise, on activities outside of the district but within the defined geographic area of the project except to pay, or secure payment of, debt service on credit enhanced bonds. For districts, other than redevelopment districts for which the request for certification was made after June 30, 1995, the pooling percentage for purposes of the preceding sentence is 20 percent. The revenue derived from tax increments for the district that are expended on costs under section 469.176, subdivision 4h, paragraph (b), may be deducted first before calculating the percentages that must be expended within and without the district.

(b) In the case of a housing district, a housing project, as defined in section 469.174, subdivision 11, is an activity in the district.

(c) All administrative expenses are for activities outside of the district, except that if the only expenses for activities outside of the district under this subdivision are for the purposes described in paragraph (d), administrative expenses will be considered as expenditures for activities in the district.

(d) The authority may elect, in the tax increment financing plan for the district, to increase by up to ten percentage points the permitted amount of expenditures for activities located outside the geographic area of the district under paragraph (a). As permitted by section 469.176, subdivision 4k, the expenditures, including the permitted expenditures under paragraph (a), need not be made within the geographic area of the project. Expenditures that meet the requirements of this paragraph are legally permitted expenditures of the district, notwithstanding section 469.176, subdivisions 4b, 4c, and 4j. To qualify for the increase under this paragraph, the expenditures must:

(1) be used exclusively to assist housing that meets the requirement for a qualified low-income building, as that term is used in section 42 of the Internal Revenue Code; and

(2) not exceed the qualified basis of the housing, as defined under section 42(c) of the Internal Revenue Code, less the amount of any credit allowed under section 42 of the Internal Revenue Code; and

(3) be used to:

(i) acquire and prepare the site of the housing;

(ii) acquire, construct, or rehabilitate the housing; or

(iii) make public improvements directly related to the housing.; or

(4) be used to develop housing:

(i) if the market value of the housing does not exceed the lesser of:

(A) 150 percent of the average market of single-family homes in that municipality; or

(B) $200,000 for municipalities located in the metropolitan area, as defined in section 473.121, or $125,000 for all other municipalities; and

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(ii) if the expenditures are used to pay the cost of site acquisition, relocation, demolition of existing structures, site preparation, and pollution abatement on one or more parcels, if the parcel contains a residence containing one to four family dwelling units that has been vacant for six or more months and is in foreclosure as defined in section 325N.10, subdivision 7, but without regard to whether the residence is the owner's principal residence, and only after the redemption period stated in the notice provided under section 580.06 has expired.

(e) For a district created within a biotechnology and health sciences industry zone as defined in section 469.330, subdivision 6, or for an existing district located within such a zone, tax increment derived from such a district may be expended outside of the district but within the zone only for expenditures required for the construction of public infrastructure necessary to support the activities of the zone, land acquisition, and other redevelopment costs as defined in section 469.176, subdivision 4j. These expenditures are considered as expenditures for activities within the district.

(f) The authority under paragraph (d), clause (4), expires on December 31, 2016. Increments may continue to be expended under this authority after that date, if they are used to pay bonds or binding contracts that would qualify under subdivision 3, paragraph (a), if December 31, 2016, is considered to be the last date of the five-year period after certification under that provision.

EFFECTIVE DATE. This section is effective for any district that is subject to the provisions of section 469.1763, regardless of when the request for certification of the district was made."

Page 72, after line 8, insert:

"Sec. 20. Laws 2010, chapter 389, article 7, section 22, is amended to read:

Sec. 22. CITY OF RAMSEY; TAX INCREMENT FINANCING DISTRICT; SPECIAL RULES.

(a) If the city of Ramsey or an authority of the city elects upon the adoption of a tax increment financing plan for a district, the rules under this section apply to a redevelopment tax increment financing district established by the city or an authority of the city. The redevelopment tax increment district includes parcels within the area bounded on the east by Ramsey Boulevard, on the north by Bunker Lake Boulevard as extended west to Llama Street, on the west by Llama Street, and on the south by a line running parallel to and 600 feet south of the southerly right-of-way for U.S. Highway 10, but including Parcels 28-32-25-43-0007 and 28-32-25-34-0002 in their entirety, and excluding the Anoka County Regional Park property in its entirety. A parcel within this area that is included in a tax increment financing district that was certified before the date of enactment of this act may be included in the district created under this act if the initial district is decertified.

(b) The requirements for qualifying a redevelopment tax increment district under Minnesota Statutes, section 469.174, subdivision 10, do not apply to the parcels located within the district.

(c) ~~In addition to the costs permitted by~~ Minnesota Statutes, section 469.176, subdivision 4j, does not apply to the district. Eligible expenditures within the district include but are not limited to (1) the city's share of the costs necessary to provide for the construction of the Northstar Transit Station and related infrastructure, including structured parking, a pedestrian overpass, and roadway improvements, (2) the cost of land acquired by the city or the housing and redevelopment authority in and for the city of Ramsey within the district prior to the establishment of the district, and (3) the cost of public improvements installed within the tax increment financing district prior to the establishment of the district.

(d) The requirement of Minnesota Statutes, section 469.1763, subdivision 3, that activities must be undertaken within a five-year period from the date of certification of a tax increment financing district, is considered to be met for the district if the activities were undertaken within ten years from the date of certification of the district.

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(e) Except for administrative expenses, the in-district percentage for purposes of the restriction on pooling under Minnesota Statutes, section 469.1763, subdivision 2, for this district is 100 percent.

(f) The requirement of Minnesota Statutes, section 469.177, subdivision 4, does not apply to Parcels 28-32-25-42-0021 and 28-32-25-41-0014, where development occurred after enactment of Laws 2010, chapter 389, article 7, section 22, and prior to adoption of the tax increment financing plan for the district.

EFFECTIVE DATE. This section is effective upon approval by the governing body of the city of Ramsey, and upon compliance by the city with Minnesota Statutes, section 645.021, subdivision 3.

Sec. 21. CITY OF COHASSET; USE OF TAX INCREMENTS.

The authority operating tax increment financing districts No. 2-1 and No. 3-1 in the city of Cohasset may transfer tax increments from each of those districts to the city in an amount equal to the advances made by the city from its general fund to finance expenditures under Minnesota Statutes, section 469.176, subdivision 4, for the benefit of that district.

EFFECTIVE DATE. This section is effective the day following final enactment, upon approval by the governing body of the city of Cohasset and compliance with Minnesota Statutes, section 645.021, subdivision 3.

Sec. 22. CITY OF LINO LAKES; TAX INCREMENT FINANCING.

Subdivision 1. Duration of district. Notwithstanding the provisions of Minnesota Statutes, section 469.176, subdivision 1b, the city of Lino Lakes may collect tax increments from tax increment financing district no. 1-10 through December 31, 2023, subject to the conditions in subdivision 2.

Subd. 2. Conditions for extension. All tax increments remaining in the account for the district after February 1, 2011, and all tax increments collected thereafter, must be used only to pay debt service on bonds issued to finance the interchange of Anoka County Highway 23 and marked Interstate Highway 35W, bonds issued to finance public improvements serving the development known as Legacy at Woods Edge, and any bonds issued to refund those bonds. Minnesota Statutes, sections 469.176, subdivision 4c, and 469.1763 do not apply to expenditures made under this section.

EFFECTIVE DATE. This section is effective upon compliance by the governing body of the city of Lino Lakes with the requirements of Minnesota Statutes, sections 469.1782, subdivision 2, and 645.021, subdivision 3."

Renumber the sections in sequence and correct the internal references

Amend the title accordingly

The motion prevailed and the amendment was adopted.

McNamara moved to amend H. F. No. 1219, the first engrossment, as amended, as follows:

Page 49, after line 15, insert:

"Sec. 22. Laws 1974, chapter 475, section 1, is amended to read:

Section 1. WASHINGTON COUNTY; HOUSING AND REDEVELOPMENT AUTHORITY.

There is ~~hereby~~ created in Washington county a public body corporate and politic, to be known as the Washington county housing and redevelopment authority, having all the powers and duties of a ~~housing and redevelopment~~ county authority under the provisions of ~~the municipal housing and redevelopment act,~~ Minnesota

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Statutes, Sections ~~462.411 to 462.711, and acts amendatory thereof; which act applies~~ 469.001 to 469.047, and all powers of a county housing and redevelopment authority under any other provisions of Minnesota law, and sections 469.001 to 469.047 apply to the county of Washington. For the purposes of applying the provisions of the municipal housing and redevelopment act to Washington county, the county has all of the powers and duties of a municipality, the county board has all of the powers and duties of a governing body, the chairman of the county board has all the powers and duties of a mayor, and the area of operation includes the area within the territorial boundaries of the county.

EFFECTIVE DATE. This section is effective the day after the governing body of Washington county and its chief clerical officer timely complete their compliance with Minnesota Statutes, section 645.021, subdivisions 2 and 3.

Sec. 23. Laws 1974, chapter 475, section 2, subdivision 1, is amended to read:

Subdivision 1. This act shall not limit or restrict any existing housing and redevelopment authority ~~or prevent a municipality from creating an authority. The county shall not exercise jurisdiction in any municipality where a municipal housing and redevelopment authority is established~~. The jurisdiction and area of operation of the Washington county housing and redevelopment authority include the area within the territorial boundaries of the county and include the areas of operation of city housing and redevelopment authorities in the county, whenever created, and notwithstanding any provision of Minnesota Statutes, section 469.008.

Page 49, after line 19, insert:

Sec. 24. PRIOR ACTIVITIES.

Sections 22 and 23 are, in part, remedial in nature. Actions of the Washington county housing and redevelopment authority prior to the effective date of those sections are not invalid or unenforceable for exercising powers that are authorized by sections 22 and 23.

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

Renumber the sections in sequence and correct the internal references

Amend the title accordingly

The motion prevailed and the amendment was adopted.

H. F. No. 1219, A bill for an act relating to taxation; omnibus policy bill; making policy, technical, administrative, and clarifying changes to income, withholding, estate, property, sales and use, mortgage registry, lodging, insurance, minerals, gasoline, and other various taxes and tax-related provisions; making changes to provisions related to horses, certain aids, payments, delinquent tax liabilities, and tax-forfeited lands; providing for inclusion of property in a tax increment financing district; providing a property tax exemption for certain fairgrounds property; making changes to certain housing and redevelopment authority; amending Minnesota Statutes 2010, sections 17.459, subdivision 2; 69.031, subdivision 1; 116J.8737, subdivisions 1, 2, 4; 270.87; 270A.03, subdivision 7; 270C.13, subdivision 2; 270C.30; 270C.32, subdivision 3, by adding a subdivision; 270C.34, subdivision 1; 270C.64; 270C.7101, subdivision 2; 270C.711; 272.029, by adding a subdivision; 273.1231, subdivision 4; 273.124, subdivisions 1, 8, 14; 273.13, subdivisions 22, 23; 273.33, subdivision 2; 273.37, subdivision 2; 273.3711; 274.175; 278.05, subdivision 6; 282.01, subdivisions 1a, 1c, 1d; 282.014; 282.12; 287.05, subdivision 2; 289A.08, subdivisions 1, 7; 289A.12, by adding a subdivision; 289A.18, subdivision 3; 289A.25, subdivisions 1, 6, by adding a subdivision; 289A.26, subdivision 1; 289A.35; 289A.50, subdivision 10; 289A.60, subdivision 31; 290.01,

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subdivisions 19a, 19b; 290.06, subdivision 2c; 290.091, subdivision 2; 290.0922, subdivisions 2, 3; 290.095, subdivision 11; 290.92, subdivision 26; 291.03, subdivision 1b; 296A.083, by adding a subdivision; 296A.18, subdivision 7, by adding a subdivision; 297A.61, subdivision 3; 297A.62, by adding a subdivision; 297A.63, by adding a subdivision; 297A.668, subdivision 7, by adding a subdivision; 297A.71, subdivision 23; 297A.89, subdivision 2; 297B.08; 297I.15, by adding a subdivision; 298.28, subdivision 2; 383C.16, subdivision 1; 469.176, subdivisions 4c, 4m; 469.1763, subdivision 2; 469.319, subdivision 5; Laws 1974, chapter 475, sections 1; 2, as amended; Laws 1986, chapter 462, section 31, as amended; Laws 2010, chapter 389, article 1, section 12; article 7, section 22; proposing coding for new law in Minnesota Statutes, chapters 270C; 383C; repealing Minnesota Statutes 2010, sections 17.459, subdivision 3; 272.02, subdivision 34; 273.124, subdivision 10; 281.37; 290.06, subdivision 10; 290A.27; 296A.18, subdivision 9.

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

The question was taken on the passage of the bill and the roll was called. There were 110 yeas and 23 nays as follows:

Those who voted in the affirmative were:

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

S. F. No. 1045 was reported to the House.

Hoppe moved to amend S. F. No. 1045, the first engrossment, as follows:

Delete everything after the enacting clause and insert the following language of H. F. No. 1394, the first engrossment:

Journal of the House - 61st Day - Friday, May 20, 2011 - Top of Page 4760

"Section 1. Minnesota Statutes 2010, section 45.011, subdivision 1, is amended to read:

Subdivision 1. Scope. As used in chapters 45 to 80C, 80E to 83, 155A, 332, 332A, 332B, 345, and 359, and sections 123A.21, subdivision 7, paragraph (a), clause (23); 123A.25; 325D.30 to 325D.42; 326B.802 to 326B.885; 386.61 to 386.78; 471.617; and 471.982, unless the context indicates otherwise, the terms defined in this section have the meanings given them.

Sec. 2. Minnesota Statutes 2010, section 45.25, is amended by adding a subdivision to read:

Subd. 2a. Classroom course. "Classroom course" means an educational process based on no geographical separation of instructor and learner.

Sec. 3. Minnesota Statutes 2010, section 45.25, is amended by adding a subdivision to read:

Subd. 5a. Distance learning course. "Distance learning course" means an education process based on the geographical separation of instructor and learner. This includes, but is not limited to:

(1) an interactive Internet course; and

(2) a course taught live by the instructor via the Internet, video, or other electronic means.

Sec. 4. Minnesota Statutes 2010, section 45.25, is amended by adding a subdivision to read:

Subd. 14. Self-study course. "Self-study course" means a distance learning course that is not entirely taught by the instructor live via the Internet, video, or other electronic means.

Sec. 5. Minnesota Statutes 2010, section 45.30, is amended by adding a subdivision to read:

Subd. 6a. Professional designation coursework. Approved courses leading to the achievement or maintenance of a professional designation listed in section 60K.36, subdivision 4a, qualify for continuing education.

Sec. 6. Minnesota Statutes 2010, section 45.30, subdivision 7, is amended to read:

Subd. 7. Courses open to all. (a) All course offerings must be open to any interested individuals. Access may be restricted by the education provider based on class size only, except that access to a course offering sponsored by, offered by, or affiliated with an insurance company or agency may be restricted to agents of the company or agency. Courses must not be approved if attendance is restricted to any particular group of people, except for company-sponsored courses allowed by statute.

(b) Notwithstanding paragraph (a), attendance at approved courses leading to the achievement or maintenance of a professional designation listed in section 60K.36, subdivision 4a, may be limited to those producers seeking the professional designation or those producers who have met prerequisite coursework for the course offering. Courses leading to the achievement or maintenance of a professional designation listed in section 60K.36, subdivision 4a, may require a prerequisite such as candidacy for the designation or sequential coursework relating to the attainment or maintenance of the designation. A course leading to the achievement or maintenance of a professional designation listed in section 60K.36, subdivision 4a, is not considered to be company sponsored unless it is provided by an insurance company.

Sec. 7. [45.304] VERIFICATION REQUIREMENTS.

A self-study course must not be approved unless it is objectively verifiable that:

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(1) it includes a closed-book, end-of-course examination; and

(2) successful completion of the end-of-course examination can be objectively documented.

Sec. 8. Minnesota Statutes 2010, section 45.35, is amended to read:

45.35 FACILITIES.

Each course of study, except self-study courses, must be conducted in a classroom or other facility that is adequate to comfortably accommodate the faculty and the number of students enrolled. The education provider may limit the number of students enrolled in a course. Approved courses must not be held on the premises of a company doing business in the regulated area, except for company-sponsored courses allowed by statute or noncompany sponsored courses offered by a bona fide trade association. A bona fide trade association may offer noncompany sponsored courses on the premises of an insurance company or agency so long as the course is not restricted to employees or appointed agents of the insurance company or agency.

Sec. 9. Minnesota Statutes 2010, section 60A.19, subdivision 8, is amended to read:

Subd. 8. Insurance from unlicensed foreign companies. Any person, firm, or corporation ~~desiring to obtain insurance upon any property, interests, or risks of any nature other than life insurance in this state in companies not authorized to do business in the state~~ whose home state is Minnesota, that procures insurance on any property, interests, or risks of any nature other than life insurance directly from a nonadmitted insurer, must agree to file with the commissioner of revenue all returns required under chapter 297I and pay to the commissioner of revenue any amounts required to be paid under chapter 297I. Upon that agreement, the commissioner of commerce shall issue a license, good for one year. Insurance procured under the license is valid and the provisions of the policies are considered to be in accordance, and construed as if identical in effect, with the standard policy prescribed by the laws of this state. The insurers may enter the state to perform any act necessary or proper in the conduct of the business.

EFFECTIVE DATE. This section is effective for nonadmitted insurance policies that go into effect after July 20, 2011.

Sec. 10. Minnesota Statutes 2010, section 60A.196, is amended to read:

60A.196 DEFINITIONS.

Unless the context otherwise requires, the following terms have the meanings given them for the purposes of sections 60A.195 to 60A.209:

~~(a) "Surplus lines insurance" means insurance placed with an insurer permitted to transact the business of insurance in this state only pursuant to sections 60A.195 to 60A.209.~~

(b) "Eligible surplus lines insurer" means an insurer recognized as eligible to write insurance business under sections 60A.195 to 60A.209 but not licensed by any other Minnesota law to transact the business of insurance.

(c) "Ineligible surplus lines insurer" means an insurer not recognized as an eligible surplus lines insurer pursuant to sections 60A.195 to 60A.209 and not licensed by any other Minnesota law to transact the business of insurance. "Ineligible surplus lines insurer" includes a risk retention group as defined under the Liability Risk Retention Act, Public Law 99-563.