JOURNAL OF THE HOUSE - 52nd Day

Index to today's Journal


JOURNAL OF THE HOUSE - 52nd Day - Top of Page
3603

STATE OF MINNESOTA

SEVENTY-NINTH SESSION - 1995

__________________

FIFTY-SECOND DAY

Saint Paul, Minnesota, Wednesday, May 3, 1995

The House of Representatives convened at 11:30 a.m. and was called to order by Irv Anderson, Speaker of the House.

Prayer was offered by the Reverend John M. Bauer, Church of St. Therese, Deephaven, Minnesota.

The roll was called and the following members were present:

Abrams       Frerichs     Koppendrayer Olson, M.    Smith
Anderson, B. Garcia       Kraus        Onnen        Solberg
Bakk         Girard       Krinkie      Opatz        Stanek
Bertram      Goodno       Larsen       Orenstein    Sviggum
Bettermann   Greenfield   Leighton     Orfield      Swenson, D.
Bishop       Greiling     Leppik       Osskopp      Swenson, H.
Boudreau     Haas         Lieder       Osthoff      Sykora
Bradley      Hackbarth    Lindner      Ostrom       Tomassoni
Broecker     Harder       Long         Otremba      Tompkins
Brown        Hasskamp     Lourey       Ozment       Trimble
Carlson      Hausman      Luther       Paulsen      Tuma
Carruthers   Holsten      Lynch        Pawlenty     Tunheim
Clark        Hugoson      Macklin      Pellow       Van Dellen
Commers      Huntley      Mahon        Pelowski     Van Engen
Cooper       Jaros        Mares        Perlt        Vickerman
Daggett      Jefferson    Mariani      Peterson     Wagenius
Dauner       Jennings     Marko        Pugh         Warkentin
Davids       Johnson, A.  McCollum     Rest         Weaver
Dawkins      Johnson, R.  McElroy      Rhodes       Wejcman
Dehler       Johnson, V.  McGuire      Rice         Wenzel
Delmont      Kahn         Milbert      Rostberg     Winter
Dempsey      Kalis        Molnau       Rukavina     Wolf
Dorn         Kelley       Mulder       Sarna        Worke
Entenza      Kelso        Munger       Schumacher   Workman
Erhardt      Kinkel       Murphy       Seagren      Sp.Anderson,I
Farrell      Knight       Ness         Simoneau     
Finseth      Knoblach     Olson, E.    Skoglund     
A quorum was present.

Anderson, R., was excused.

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

REPORTS OF CHIEF CLERK

S. F. No. 115 and H. F. No. 142, which had been referred to the Chief Clerk for comparison, were examined and found to be identical with certain exceptions.

SUSPENSION OF RULES

Lieder moved that the rules be so far suspended that S. F. No. 115 be substituted for H. F. No. 142 and that the House File be indefinitely postponed. The motion prevailed.


JOURNAL OF THE HOUSE - 52nd Day - Top of Page 3604

REPORTS OF STANDING COMMITTEES

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

H. F. No. 1093, A bill for an act relating to telecommunications; eliminating the telecommunication access for communication-impaired persons board; creating telecommunication access duties for the departments of public service and human services; amending Minnesota Statutes 1994, sections 237.50, subdivision 4; 237.51, subdivisions 1, 5, and by adding a subdivision; 237.52, subdivisions 2, 4, and 5; 237.53, subdivisions 1, 3, 5, and 7; 237.54, subdivision 2; 237.55; and 256C.24, subdivision 3; repealing Minnesota Statutes 1994, sections 237.50, subdivision 2; 237.51, subdivisions 2, 3, 4, and 6; and 237.54, subdivision 1.

Reported the same back with the following amendments:

Page 4, line 31, delete ", using fund proceeds," and insert "contract with the message relay service operator to"

Page 7, line 8, strike "center" and insert "area"

Page 7, after line 28, insert:

"Sec. 16. [REPORT.]

The department of public service shall make a report to the legislature by February 15, 1997, comparing:

(1) the telecommunication relay system management performance of the telecommunication access for communication-impaired persons board and the system's relay operator for 1994; and

(2) the telecommunication relay system management performance of the department of public service and the system's relay operator for 1996."

Page 7, line 29, delete "16" and insert "17"

Page 7, line 33, delete "17" and insert "18"

With the recommendation that when so amended the bill pass.

The report was adopted.

SECOND READING OF HOUSE BILLS

H. F. No. 1093 was read for the second time.

SECOND READING OF SENATE BILLS

S. F. No. 115 was read for the second time.


JOURNAL OF THE HOUSE - 52nd Day - Top of Page 3605

INTRODUCTION AND FIRST READING OF HOUSE BILLS

The following House File was introduced:

Ozment and Munger introduced:

H. F. No. 1890, A bill for an act relating to wild animals; authorizing poultry farmers to trap great horned owls; amending Minnesota Statutes 1994, section 97B.705.

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

Carruthers moved that the House recess subject to the call of the Chair to meet with the Senate in Joint Convention. The motion prevailed.

RECESS

RECONVENED

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

The Sergeant at Arms announced the arrival of the members of the Senate and they were escorted to the seats reserved for them at the front of the Chamber.

JOINT CONVENTION

The Speaker of the House as President of the Joint Convention called the Joint Convention to order.

Prayer was offered by the Reverend John M. Bauer, Church of St. Therese, Deephaven, Minnesota.

The roll being called, the following Senators answered to their names: Anderson, Beckman and Belanger.

Senator Moe, R. D., moved that further proceedings of the roll call be suspended. The motion prevailed and a quorum was declared present.

REPORT FROM THE HOUSE AND SENATE

COMMITTEES ON EDUCATION

May 1, 1995

To the Honorable Irv Anderson, Speaker of the House of Representatives, as President of the Joint Convention of the Senate and House of Representatives meeting to elect four Regents to the University of Minnesota.


JOURNAL OF THE HOUSE - 52nd Day - Top of Page 3606

The House Committee on Education and the Senate Committee on Education make the following report:

We have selected the following named persons as a slate of nominees for Regents of the University of Minnesota, to hold office for the term specified for each from 1995:

Jean Keffeler, Fifth Congressional District, Six Years

Jessica Phillips, At-Large, Student, Six Years

Richard "Pinky" McNamara, At-Large, Six Years

Patricia Spence, At-Large, Six Years

We hereby submit the recommendation and the terms of said persons in nomination for the offices and terms hereinbefore designated.

Respectfully submitted,

Lyndon R. Carlson, Chair

House Education Committee

Co-Chair of the Joint Committee

Leroy A. Stumpf, Co-Chair

Senate Education Committee

Co-Chair of the Joint Committee

Lawrence J. Pogemiller, Co- Chair

Senate Education Committee

Co-Chair of the Joint Committee

Representative Carlson and Senators Stumpf and Pogemiller moved that the report from the Joint Nominating Committee be adopted.

The motion prevailed and the report was adopted.

ELECTION OF BOARD OF REGENTS

Pursuant to the Joint Rules of the Senate and House of Representatives the Joint Convention proceeded to elect a Regent from the Fifth Congressional District.

Jean Keffeler was nominated by the Joint Committee for a term of six years.

There being no further nominations, the President declared nominations closed.

The Secretary called the roll.

197 members voted for Jean Keffeler, Fifth Congressional District Regent, for a six year term, as follows:

SENATE ROLL CALL

Anderson     Frederickson Kroening     Neuville     Sams
Beckman      Hanson       Laidig       Novak        Samuelson
Belanger     Hottinger    Langseth     Oliver       Scheevel
Berg         Janezich     Larson       Olson        Solon
Berglin      Johnson, D. E.Lesewski    Ourada       Spear
Bertram      Johnson, D. J.Lessard     Pappas       Stevens
Betzold      Johnson, J. B.Limmer      Pariseau     Stumpf

JOURNAL OF THE HOUSE - 52nd Day - Top of Page 3607
Chandler Johnston Marty Pogemiller Terwilliger Chmielewski Kelly Merriam Price Vickerman Cohen Kiscaden Metzen Ranum Wiener Day Kleis Moe, R. D. Reichgott Dille Knutson Mondale Riveness Finn Kramer Morse Robertson Flynn Krentz Murphy Runbeck

HOUSE OF REPRESENTATIVES ROLL CALL

Abrams       Frerichs     Koppendrayer Olson, M.    Stanek
Anderson, B. Garcia       Kraus        Onnen        Sviggum
Bakk         Girard       Krinkie      Opatz        Swenson, D.
Bertram      Goodno       Larsen       Orenstein    Swenson, H.
Bettermann   Greenfield   Leighton     Orfield      Sykora
Bishop       Greiling     Leppik       Osskopp      Tomassoni
Boudreau     Haas         Lieder       Ostrom       Tompkins
Bradley      Hackbarth    Lindner      Otremba      Trimble
Broecker     Harder       Long         Ozment       Tuma
Brown        Hasskamp     Lourey       Paulsen      Tunheim
Carlson      Hausman      Luther       Pellow       Van Dellen
Carruthers   Holsten      Lynch        Pelowski     Van Engen
Clark        Hugoson      Macklin      Perlt        Vickerman
Commers      Huntley      Mahon        Peterson     Wagenius
Cooper       Jaros        Mares        Pugh         Warkentin
Daggett      Jefferson    Mariani      Rest         Weaver
Dauner       Jennings     Marko        Rhodes       Wejcman
Davids       Johnson, A.  McCollum     Rice         Wenzel
Dawkins      Johnson, R.  McElroy      Rostberg     Winter
Dehler       Johnson, V.  McGuire      Rukavina     Wolf
Delmont      Kahn         Milbert      Sarna        Worke
Dempsey      Kalis        Molnau       Schumacher   Workman
Dorn         Kelley       Mulder       Seagren      Anderson, I.
Entenza      Kelso        Munger       Simoneau     
Erhardt      Kinkel       Murphy       Skoglund     
Farrell      Knight       Ness         Smith        
Finseth      Knoblach     Olson, E.    Solberg      
Jean Keffeler, having received a majority of the votes cast, was declared elected Fifth Congressional District Regent, for a term of six years.

Pursuant to Joint Rules of the Senate and House of Representatives the Joint Convention proceeded to elect an At- Large Student Regent.

Jessica Phillips was nominated by the Joint Committee for a term of six years.

There being no further nominations, the President declared nominations closed.

The Secretary called the roll.

198 members voted for Jessica Phillips, At-Large Student Regent, for a six year term, as follows:

SENATE ROLL CALL

Anderson     Frederickson Kroening     Neuville     Sams
Beckman      Hanson       Laidig       Novak        Samuelson
Belanger     Hottinger    Langseth     Oliver       Scheevel
Berg         Janezich     Larson       Olson        Solon
Berglin      Johnson, D. E.Lesewski    Ourada       Spear
Bertram      Johnson, D. J.Lessard     Pappas       Stevens
Betzold      Johnson, J. B.Limmer      Pariseau     Stumpf
Chandler     Johnston     Marty        Pogemiller   Terwilliger
Chmielewski  Kelly        Merriam      Price        Vickerman
Cohen        Kiscaden     Metzen       Ranum        Wiener
Day          Kleis        Moe, R. D.   Reichgott Junge
Dille        Knutson      Mondale      Riveness     
Finn         Kramer       Morse        Robertson    
Flynn        Krentz       Murphy       Runbeck      
             
             
                          

HOUSE OF REPRESENTATIVES ROLL CALL

Abrams       Frerichs     Kraus        Onnen        Solberg
Anderson, B. Garcia       Krinkie      Opatz        Stanek
Bakk         Girard       Larsen       Orenstein    Sviggum
Bertram      Goodno       Leighton     Orfield      Swenson, D.
Bettermann   Greenfield   Leppik       Osskopp      Swenson, H.
Bishop       Greiling     Lieder       Osthoff      Sykora
Boudreau     Haas         Lindner      Ostrom       Tomassoni
Bradley      Hackbarth    Long         Otremba      Tompkins
Broecker     Harder       Lourey       Ozment       Trimble
Brown        Hasskamp     Luther       Paulsen      Tuma
Carlson      Holsten      Lynch        Pawlenty     Tunheim
Carruthers   Hugoson      Macklin      Pellow       Van Dellen
Clark        Huntley      Mahon        Pelowski     Van Engen
Commers      Jaros        Mares        Perlt        Vickerman
Cooper       Jefferson    Mariani      Peterson     Wagenius
Daggett      Jennings     Marko        Pugh         Warkentin
Dauner       Johnson, A.  McCollum     Rest         Weaver
Davids       Johnson, R.  McElroy      Rhodes       Wejcman
Dawkins      Johnson, V.  McGuire      Rice         Wenzel
Dehler       Kahn         Milbert      Rostberg     Winter
Delmont      Kalis        Molnau       Rukavina     Wolf

JOURNAL OF THE HOUSE - 52nd Day - Top of Page 3608
Dempsey Kelley Mulder Sarna Worke Dorn Kelso Munger Schumacher Workman Entenza Kinkel Murphy Seagren Anderson, I. Erhardt Knight Ness Simoneau Farrell Knoblach Olson, E. Skoglund Finseth Koppendrayer Olson, M. Smith
1 member voted for Cecil Smith, At-Large Student Regent, for a six year term, as follows:

HOUSE OF REPRESENTATIVES ROLL CALL

Hausman                   
Jessica Phillips, having received a majority of the votes cast, was declared elected At-Large Student Regent, for a term of six years.

Pursuant to Joint Rules of the Senate and House of Representatives the Joint Convention proceeded to elect two At- Large Regents, for terms of six years.

Richard McNamara and Patricia Spence were nominated by the Joint Committee for terms of six years.

Biloine Young was nominated by Representative Entenza for a term of six years.

Mike Vekich was nominated by Representative Rhodes for a term of six years.

Warren Larson was nominated by Representative Olson, E., for a term of six years.

There being no further nominations, the President declared the nominations closed.

The Secretary called the roll.

121 members voted for Patricia Spence, At-Large Regent, for a six year term, as follows:

SENATE ROLL CALL

Anderson     Flynn        Kleis        Mondale      Riveness
Beckman      Frederickson Knutson      Morse        Robertson
Berg         Hanson       Kramer       Murphy       Runbeck
Berglin      Hottinger    Krentz       Neuville     Sams
Bertram      Janezich     Kroening     Novak        Samuelson
Betzold      Johnson, D. E.Laidig      Olson        Scheevel
Chandler     Johnson, D. J.Langseth    Ourada       Spear
Chmielewski  Johnson, J. B.Lessard     Pariseau     Stevens
Cohen        Johnston     Merriam      Price        Stumpf
Day          Kelly        Metzen       Ranum        Vickerman
Finn         Kiscaden     Moe, R. D.   Reichgott JungeWiener
             
             

HOUSE OF REPRESENTATIVES ROLL CALL

Bakk         Garcia       Knoblach     Orenstein    Solberg
Bertram      Greenfield   Leighton     Osthoff      Swenson, H.
Brown        Greiling     Leppik       Ostrom       Tomassoni
Carlson      Hasskamp     Long         Otremba      Trimble
Carruthers   Hausman      Lourey       Pelowski     Tunheim
Clark        Huntley      Luther       Perlt        Wagenius
Cooper       Jaros        Mares        Peterson     Wejcman
Dauner       Jefferson    Marko        Rest         Wenzel
Dawkins      Johnson, A.  McCollum     Rice         Winter
Dehler       Johnson, R.  McGuire      Rukavina     Anderson, I.
Delmont      Kahn         Munger       Sarna        
Dorn         Kalis        Murphy       Schumacher   
Entenza      Kelley       Ness         Simoneau     
Farrell      Kinkel       Opatz        Skoglund     
102 members voted for Warren Larson, At-Large Regent, for a six year term, as follows:

SENATE ROLL CALL

Anderson     Finn         Krentz       Morse        Riveness
Beckman      Flynn        Langseth     Murphy       Sams
Berg         Hanson       Larson       Novak        Samuelson
Berglin      Hottinger    Marty        Pappas       Solon
Bertram      Janezich     Merriam      Pogemiller   Spear
Betzold      Johnson, D. J.Metzen      Price        Stumpf
Chandler     Johnson, J. B.Moe, R. D.  Ranum        Vickerman
Cohen        Kelly        Mondale      Reichgott JungeWiener
             

HOUSE OF REPRESENTATIVES ROLL CALL

Bakk         Garcia       Kelso        Olson, E.    Skoglund
Bertram      Greenfield   Kinkel       Orenstein    Solberg
Brown        Greiling     Leighton     Orfield      Tomassoni
Carlson      Hasskamp     Lieder       Osskopp      Trimble
Carruthers   Hausman      Long         Ostrom       Tunheim
Clark        Huntley      Lourey       Otremba      Wagenius
Cooper       Jaros        Luther       Perlt        Wejcman
Dauner       Jefferson    Mariani      Peterson     Wenzel
Dawkins      Johnson, A.  Marko        Pugh         Winter
Delmont      Johnson, R.  McCollum     Rest         Anderson, I.
Entenza      Kahn         McGuire      Rice         
Farrell      Kalis        Munger       Rukavina     
Finseth      Kelley       Murphy       Schumacher   
100 members voted for Richard McNamara, At-Large Regent, for a six year term, as follows:

SENATE ROLL CALL

Belanger     Johnston     Laidig       Oliver       Runbeck
Chmielewski  Kiscaden     Larson       Olson        Scheevel
Day          Kleis        Lesewski     Ourada       Solon
Dille        Knutson      Lessard      Pariseau     Stevens
Frederickson Kramer       Limmer       Pogemiller   Terwilliger
Johnson, D. E.            Kroening     Neuville     Robertson

HOUSE OF REPRESENTATIVES ROLL CALL

Abrams       Girard       Leppik       Ozment       Sykora
Anderson, B. Goodno       Lindner      Paulsen      Tompkins
Bettermann   Haas         Lynch        Pawlenty     Tuma
Bishop       Hackbarth    Macklin      Pellow       Van Dellen
Boudreau     Harder       Mahon        Pelowski     Van Engen
Bradley      Holsten      Mares        Rhodes       Vickerman
Broecker     Hugoson      McElroy      Rostberg     Warkentin
Commers      Jennings     Molnau       Sarna        Weaver
Daggett      Johnson, V.  Mulder       Seagren      Wolf
Davids       Knight       Ness         Simoneau     Worke
Dehler       Knoblach     Olson, M.    Smith        Workman
Dempsey      Koppendrayer Onnen        Stanek       
Erhardt      Kraus        Opatz        Sviggum      
Finseth      Krinkie      Osskopp      Swenson, D.  
Frerichs     Larsen       Osthoff      Swenson, H.  

JOURNAL OF THE HOUSE - 52nd Day - Top of Page 3609
13 members voted for Biloine Young, At-Large Regent, for a six year term, as follows:

SENATE ROLL CALL

Marty        Pappas                    

HOUSE OF REPRESENTATIVES ROLL CALL

Dorn         Lieder       Milbert      Pugh         
Kelso        Mahon        Olson, E.    Smith        
Larsen       Mariani      Orfield      
7 members voted for Mary Page, At-Large Regent, for a six year term, as follows:

HOUSE OF REPRESENTATIVES ROLL CALL

Bettermann   Harder       Swenson, D.  Vickerman    
Erhardt      Macklin      Van Engen    
3 members voted for Mike Vekich, At-Large Regent, for a six year term, as follows:

SENATE ROLL CALL

Terwilliger               

HOUSE OF REPRESENTATIVES ROLL CALL

Bishop       Rhodes                    
3 members voted for Emily Anne Staples Tuttle, At-Large Regent, for a six year term, as follows:

HOUSE OF REPRESENTATIVES ROLL CALL

Abrams       Onnen        Sviggum      
1 member voted for Phyllis Kahn, At-Large Regent, for a six year term, as follows:

HOUSE OF REPRESENTATIVES ROLL CALL

Pawlenty                  
1 member voted for Steve Sviggum, At-Large Regent, for a six year term, as follows:

HOUSE OF REPRESENTATIVES ROLL CALL

Knight                    
Patricia Spence and Warren Larson, each having received a majority of the votes cast, were declared elected At-Large Regents, for six year terms.


JOURNAL OF THE HOUSE - 52nd Day - Top of Page 3610

DECLARATION OF ELECTION

Jean Keffeler, Fifth Congressional District Regent, six years; Jessica Phillips, At-Large Student Regent, six years; Patricia Spence, At-Large Regent, six years; and Warren Larson, At-Large Regent, six years, each having received a majority of the votes cast at the Joint Convention were declared by the President of the Joint Convention to be elected to the Board of Regents of the University of Minnesota.

Moe, R. D., moved that the Joint Convention arise.

A roll call was requested and properly seconded.

There were 107 yeas and 87 nays as follows:

SENATE ROLL CALL

Those who voted in the affirmative were:

Anderson     Flynn        Kroening     Murphy       Sams
Beckman      Hanson       Langseth     Novak        Samuelson
Berglin      Hottinger    Lessard      Pappas       Solon
Bertram      Janezich     Marty        Pogemiller   Spear
Betzold      Johnson, D. J.Metzen      Price        Stumpf
Chandler     Johnson, J. B.Moe, R. D.  Ranum        Vickerman
Cohen        Kelly        Mondale      Reichgott JungeWiener
Finn         Krentz       Morse        Riveness     
             
             
             
Those who voted in the negative were:

Belanger     Johnson, D. E.Kramer      Neuville     Robertson
Berg         Johnston     Laidig       Oliver       Runbeck
Day          Kiscaden     Larson       Olson        Scheevel
Dille        Kleis        Lesewski     Ourada       
Frederickson Knutson      Limmer       Pariseau     
             

HOUSE OF REPRESENTATIVES ROLL CALL

Those who voted in the affirmative were:

Bakk         Greenfield   Kinkel       Olson, E.    Schumacher
Bertram      Greiling     Leighton     Opatz        Simoneau
Brown        Hasskamp     Lieder       Orenstein    Skoglund
Carlson      Hausman      Long         Orfield      Solberg
Carruthers   Huntley      Lourey       Osthoff      Tomassoni
Clark        Jaros        Luther       Ostrom       Trimble
Cooper       Jefferson    Mahon        Otremba      Tunheim
Dauner       Jennings     Mariani      Pelowski     Wagenius
Dawkins      Johnson, A.  Marko        Perlt        Wejcman
Delmont      Johnson, R.  McCollum     Peterson     Wenzel
Dorn         Kahn         McGuire      Pugh         Winter
Entenza      Kalis        Milbert      Rice         Anderson, I.
Farrell      Kelley       Munger       Rukavina     
Garcia       Kelso        Murphy       Sarna        
Those who voted in the negative were:

Abrams       Finseth      Kraus        Onnen        Swenson, H.
Anderson, B. Frerichs     Krinkie      Osskopp      Sykora

JOURNAL OF THE HOUSE - 52nd Day - Top of Page 3611
Bettermann Girard Larsen Ozment Tompkins Bishop Goodno Leppik Paulsen Tuma Boudreau Haas Lindner Pawlenty Van Dellen Bradley Hackbarth Lynch Pellow Van Engen Broecker Harder Macklin Rhodes Vickerman Commers Holsten Mares Rostberg Warkentin Daggett Hugoson McElroy Seagren Weaver Davids Johnson, V. Molnau Smith Wolf Dehler Knight Mulder Stanek Worke Dempsey Knoblach Ness Sviggum Workman Erhardt Koppendrayer Olson, M. Swenson, D.
The motion prevailed and the President declared the Joint Convention adjourned.

CERTIFICATION

May 3, 1995

To the Governor

State of Minnesota

To the Senate

State of Minnesota

To the House of Representatives

State of Minnesota

This is to certify that the House of Representatives and the Senate in Joint Convention on Wednesday, May 3, 1995, have elected as members of the Board of Regents of the University of Minnesota the following members each to hold his or her respective office for the term specified for each from 1995:

Jean Keffeler, Fifth Congressional District, Six Years

Jessica Phillips, At-Large Student, Six Years

Patricia Spence, At-Large, Six Years

Warren Larson, At-Large, Six Years

Allan H. Spear

President of the Senate

Irv Anderson

Speaker of the House

of Representatives

RECONVENED

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

Rest and Winter were excused while in conference.

MESSAGES FROM THE SENATE

The following messages were received from the Senate:


JOURNAL OF THE HOUSE - 52nd Day - Top of Page 3612

Mr. Speaker:

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

H. F. No. 617, A bill for an act relating to retirement; various public pension plans; providing for the suspension or forfeiture of certain survivor benefits in the event of certain felonious deaths; making various individual and small group pension accommodations; making various pension plan administrative changes; recodifying the individual retirement account plan and making various other modifications; amending Minnesota Statutes 1994, sections 11A.23, subdivision 4; 352.12, subdivisions 1, 2, 2a, and 6; 352B.105; 352D.02, subdivision 1; 354.05, subdivisions 2a, 5, 35, and 40; 354.06, subdivision 4; 354.44, by adding a subdivision; 354.52, subdivision 4a; 354A.011, subdivision 27, and by adding a subdivision; 354A.12, subdivision 3d; 354A.31, by adding a subdivision; 355.61; 356.215, subdivisions 4d and 4g; 356.24, subdivision 1; 383B.48; and 383B.49; proposing coding for new law in Minnesota Statutes, chapters 354B; 354C and 356; repealing Minnesota Statutes 1994, sections 352D.02, subdivision 1a; 354B.01; 354B.015; 354B.02; 354B.035; 354B.04; 354B.045; 354B.05; 354B.06; 354B.07; 354B.08; 354B.085; 354B.09; and 354B.15; Laws 1990, chapter 570, article 3, sections 10 and 11, as amended; Laws 1993, chapters 192, section 89, and 239, article 5, section 2; and Laws 1994, chapters 508, article 1, section 14; and 572, sections 11 and 12.

Patrick E. Flahaven, Secretary of the Senate

Mr. Speaker:

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

H. F. No. 1371, A bill for an act relating to commerce; securities; regulating disclosure of payment received for directing order flow; amending Minnesota Statutes 1994, section 80A.06, subdivision 5.

Patrick E. Flahaven, Secretary of the Senate

Mr. Speaker:

I hereby announce that the Senate accedes to the request of the House for the appointment of a Conference Committee on the amendments adopted by the Senate to the following House File:

H. F. No. 96, A bill for an act relating to insurance; health plans; prohibiting provisions that grant the health carrier a subrogation right, except where the covered person has been fully compensated from another source; proposing coding for new law in Minnesota Statutes, chapter 62A.

The Senate has appointed as such committee:

Messrs. Hottinger, Finn and Knutson.

Said House File is herewith returned to the House.

Patrick E. Flahaven, Secretary of the Senate

Mr. Speaker:

I hereby announce that the Senate accedes to the request of the House for the appointment of a Conference Committee on the amendments adopted by the Senate to the following House File:

H. F. No. 365, A bill for an act relating to insurance; no-fault auto; regulating priorities of coverage for taxis; amending Minnesota Statutes 1994, section 65B.47, subdivision 1a.

The Senate has appointed as such committee:

Messrs. Chandler, Knutson and Ms. Wiener.

Said House File is herewith returned to the House.

Patrick E. Flahaven, Secretary of the Senate


JOURNAL OF THE HOUSE - 52nd Day - Top of Page 3613

Mr. Speaker:

I hereby announce that the Senate accedes to the request of the House for the appointment of a Conference Committee on the amendments adopted by the Senate to the following House File:

H. F. No. 536, A bill for an act relating to commerce; residential building contractors; regulating licensees; providing a clarification; amending Minnesota Statutes 1994, sections 326.83, subdivision 5, and by adding a subdivision; 326.84, subdivision 3; 326.91, subdivision 1; 326.95, subdivision 2; and 326.975, subdivision 1.

The Senate has appointed as such committee:

Messrs. Limmer, Chandler and Larson.

Said House File is herewith returned to the House.

Patrick E. Flahaven, Secretary of the Senate

Mr. Speaker:

I hereby announce that the Senate accedes to the request of the House for the appointment of a Conference Committee on the amendments adopted by the Senate to the following House File:

H. F. No. 778, A bill for an act relating to human services; modifying certain asset and income requirements for medical assistance; modifying the verification requirements for Minnesota supplemental aid; amending Minnesota Statutes 1994, sections 256B.056, by adding subdivisions; and 256D.405, by adding a subdivision; repealing Minnesota Statutes 1994, section 256D.425, subdivision 3.

The Senate has appointed as such committee:

Mr. Riveness; Ms. Piper and Mr. Terwilliger.

Said House File is herewith returned to the House.

Patrick E. Flahaven, Secretary of the Senate

Mr. Speaker:

I hereby announce that the Senate accedes to the request of the House for the appointment of a Conference Committee on the amendments adopted by the Senate to the following House File:

H. F. No. 1055, A bill for an act relating to waters; eliminating the position of board of water and soil resources secretary; increasing board members' compensation; duties of advisory committees; rule approval procedure; guidelines for management plans; exemptions from review; appeals from rules, permit decisions, and orders; informal dispute resolution; assessment basis; amending Minnesota Statutes 1994, sections 103D.011, subdivision 21; 103D.101, subdivision 4; 103D.205, subdivisions 1 and 4; 103D.221, subdivision 2; 103D.255, subdivision 1; 103D.261, subdivision 1; 103D.271, subdivisions 2 and 4; 103D.305, subdivision 1; 103D.311, subdivision 4; 103D.315, subdivisions 1, 8, and 11; 103D.321, subdivision 2; 103D.331; 103D.335, subdivisions 5, 6, and 13; 103D.341, subdivision 2; 103D.351; 103D.401, subdivisions 1 and 2; 103D.405, subdivision 1; 103D.515, subdivision 4; 103D.531; 103D.535, subdivisions 1, 4, and 5; 103D.537; 103D.611, subdivisions 1, 4, and 5; 103D.621, subdivision 4; 103D.625, subdivisions 3 and 4; 103D.631, subdivision 2; 103D.635, subdivisions 1 and 3; 103D.705, subdivision 1; 103D.711, subdivision 2; 103D.715, subdivision 3; 103D.721, subdivision 2; 103D.741, subdivision 1; 103D.745, subdivisions 2 and 3; 103D.811, subdivisions 1 and 3; 103D.901, subdivisions 2, 4, and 5; 103D.905, subdivisions 3 and 5; 103D.921, subdivisions 1 and 3; and 103D.925; proposing coding for new law in Minnesota Statutes, chapter 103D.

The Senate has appointed as such committee:

Messrs. Price; Moe, R. D., and Dille.

Said House File is herewith returned to the House.

Patrick E. Flahaven, Secretary of the Senate


JOURNAL OF THE HOUSE - 52nd Day - Top of Page 3614

Mr. Speaker:

I hereby announce that the Senate accedes to the request of the House for the appointment of a Conference Committee on the amendments adopted by the Senate to the following House File:

H. F. No. 1132, A bill for an act relating to alcoholic beverages; providing restrictions on brewers who have retail on-sale licenses; imposing licensing and permitting requirements; requiring a license for charging for possession of alcoholic beverages; requiring a permit to allow consumption and display of all alcoholic beverages; authorizing additional licenses in Minneapolis; authorizing Clay and St. Louis counties to issue on-sale licenses; requiring a study of application of primary source law; defining home brewing equipment; listing items that may be sold in exclusive liquor stores; repealing requirement for permit for transportation of alcoholic beverages; amending Minnesota Statutes 1994, sections 340A.101, subdivision 10, and by adding a subdivision; 340A.301, subdivisions 6 and 7; 340A.401; 340A.404, subdivision 2; 340A.408, subdivision 2; 340A.412, by adding a subdivision; and 340A.414, subdivision 1; repealing Minnesota Statutes 1994, sections 340A.301, subdivision 10; and 340A.32.

The Senate has appointed as such committee:

Mr. Solon; Ms. Anderson and Mr. Day.

Said House File is herewith returned to the House.

Patrick E. Flahaven, Secretary of the Senate

Mr. Speaker:

I hereby announce that the Senate accedes to the request of the House for the appointment of a Conference Committee on the amendments adopted by the Senate to the following House File:

H. F. No. 1159, A bill for an act relating to real property; authorizing municipalities to establish trust or escrow accounts for proceeds from losses arising from fire or explosion of certain insured real property; authorizing municipalities to utilize escrowed funds to secure, repair, or demolish damaged or destroyed structures; proposing coding for new law in Minnesota Statutes, chapter 65A.

The Senate has appointed as such committee:

Mr. Kroening; Ms. Flynn and Mr. Terwilliger.

Said House File is herewith returned to the House.

Patrick E. Flahaven, Secretary of the Senate

Mr. Speaker:

I hereby announce that the Senate accedes to the request of the House for the appointment of a Conference Committee on the amendments adopted by the Senate to the following House File:

H. F. No. 1856, A bill for an act relating to education; appropriating money for education and related purposes to the higher education services office, the state board of technical colleges, state board for community colleges, state university board, board of regents of the University of Minnesota, and Mayo Medical Foundation, with certain conditions; altering requirements for the youth works program; modifying appropriations for instructional services; imposing conditions on participation in post-secondary enrollment options; removing requirements for certain reports; establishing a semester system and common calendar; requiring administrative interaction with students; modifying use of education institution data; extending time for POST board funding change; requiring review of Akita program; requiring efficiency in use of facilities; establishing a model instruction program in translating and interpreting services; requiring distribution of career planning and job placement information; prohibiting student discipline for speech or communication; abolishing the higher education coordinating board and transferring its duties; creating the higher education service office and higher education administrators council; prescribing changes in certain financial assistance programs; repealing the merger of the community colleges, state universities, and technical colleges;


JOURNAL OF THE HOUSE - 52nd Day - Top of Page 3615

abolishing the higher education board; amending Minnesota Statutes 1994, sections 121.707, subdivisions 2 and 3; 121.709; 126.56; 126.663, subdivision 3; 126A.02, subdivision 2; 135A.031, subdivision 2; 135A.12, subdivision 1; 135A.15, subdivision 1; 135A.153, subdivision 1; 136.172; 136A.01; 136A.03; 136A.07; 136A.08; 136A.101, subdivisions 2, 3, 5, 7, 8, and 10; 136A.121, subdivisions 5, 6, and 9; 136A.125, subdivision 6; 136A.1359, subdivisions 1, 2, and 3; 136A.15, subdivisions 3 and 4; 136A.16, subdivision 1; 136A.233, subdivision 2; 136A.26, subdivisions 1 and 2; 136A.42; 136A.62, subdivision 2; 136A.63; 136A.69; 136A.81, subdivision 1; 141.25, subdivision 8; 144.1487, subdivision 1; 144.1488, subdivisions 1 and 4; 144.1489, subdivisions 1, 3, and 4; 144.1490; 144.1491, subdivision 2; 298.2214, subdivision 5; and 363.03, subdivision 5; Laws 1986, chapter 398, article 1, section 18, as amended; and Laws 1993, First Special Session chapter 2, article 1, section 2, subdivision 3, and section 9, subdivision 6; proposing coding for new law in Minnesota Statutes, chapters 135A; 136A; and 136E; repealing Minnesota Statutes 1994, sections 135A.052, subdivisions 2 and 3; 135A.08; 135A.09; 135A.10; 135A.11; 135A.12, subdivision 5; 136A.02; 136A.04; 136A.041; 136A.125, subdivision 5; 136A.1352; 136A.1353; 136A.1354; 136A.16, subdivision 11; 136A.85; 136A.86; 136A.87; 136A.88; 136E.01; 136E.02; 136E.021; 136E.03; 136E.04; 136E.05; 136E.31; 136E.395; 136E.525; 136E.692; 137.31, subdivision 6; 137.35, subdivision 4; 137.38; 144.1488, subdivision 2; and 148.236; Laws 1991, chapter 356, article 9, as amended; and Laws 1994, chapter 532, articles 5, sections 1, 2, and 3; and 7, section 9.

The Senate has appointed as such committee:

Messrs. Stumpf, Price, Larson, Terwilliger and Ms. Wiener.

Said House File is herewith returned to the House.

Patrick E. Flahaven, Secretary of the Senate

Mr. Speaker:

I hereby announce that the Senate accedes to the request of the House for the appointment of a Conference Committee on the amendments adopted by the Senate to the following House File:

H. F. No. 1864, A bill for an act relating to the financing of government in this state; adopting federal income tax law changes; providing for deferment of certain property taxes for senior citizens; providing for an income tax credit; modifying certain tax rates, credits, refunds, bases, and exemptions; providing for deduction of property tax refunds from property taxes; modifying and restricting certain requirements or uses of tax increment financing; providing for dedication of certain revenues; modifying certain motor vehicle registration taxes; establishing a sales tax advisory council; authorizing certain local taxes, special districts and other local authority; creating a local government review panel; modifying revenue recapture rules; changing the property tax treatment of certain wind property; allowing pass through of certain utility taxes; requiring studies; adjusting the amount of the budget reserve and debt limit; changing certain aids to local governments; appropriating money; amending Minnesota Statutes 1994, sections 14.61; 14.62, by adding a subdivision; 16A.152, subdivisions 1 and 2; 60A.15, subdivision 1; 69.021, subdivision 2; 124.918, subdivisions 1 and 2; 168.012, subdivision 9; 168.013, subdivision 1a; 168.017, subdivision 3, and by adding a subdivision; 216B.16, by adding a subdivision; 216C.01, subdivisions 1a and 1b; 270.273, subdivisions 1 and 2; 270A.03, subdivision 7; 270A.04, subdivision 2; 270A.06; 270A.07, subdivision 2; 270A.09, by adding a subdivision; 270A.11; 270B.12, by adding a subdivision; 272.02, subdivision 1; 273.124, subdivision 13; 273.13, subdivisions 24 and 25; 273.1398, subdivision 1; 273.1399, subdivisions 1, 2, 6, and by adding a subdivision; 273.37, by adding a subdivision; 275.065, subdivisions 1 and 3; 276.09; 276.111; 279.01, subdivision 1, and by adding subdivisions; 289A.50, by adding a subdivision; 289A.60, subdivision 12; 290.01, subdivisions 19, 19a, and by adding a subdivision; 290.06, by adding a subdivision; 290A.02; 290A.03, subdivisions 6, 13, and by adding a subdivision; 290A.04, subdivisions 2h, 3, and by adding subdivisions; 290A.07; 290A.09; 290A.10; 290A.15; 290A.18; 290A.23, subdivision 3; 296.01, subdivisions 30, 34, and by adding subdivisions; 296.02, subdivisions 1, 1a, and 1b; 296.025, subdivisions 1, 1a, and by adding a subdivision; 296.0261, by adding a subdivision; 297A.01, subdivision 3, and by adding a subdivision; 297A.02, subdivision 4; 297A.135, subdivision 1; 297A.25, subdivisions 11, 57, 59, and by adding subdivisions; 297A.45; 297B.02, subdivision 3; 297B.025, subdivision 2; 297B.032; 298.28, subdivision 9a; 298.75, subdivision 1; 349.12, subdivision 25; 375.192, by adding a subdivision; 375.83; 469.174, subdivisions 4, 12, 19, 21, and by adding subdivisions; 469.175, subdivisions 1, 3, 5, 6, and 6a; 469.176, subdivisions 4b, 4c, and 7; 469.1763, subdivisions 2 and 4; 469.177, subdivisions 1, 1a, 2, 6, 9, and by adding a subdivision; 469.1771, subdivision 1; 469.179, by adding subdivisions; 477A.013, subdivision 9; and 477A.0132; Laws 1985, chapter 302, section 2, subdivision 1, as amended; Laws 1986, chapter 400, section 44; Laws 1991, chapter 291, article 8, section 28, subdivision 1; Laws 1993, chapter 375, article 5, section 40, subdivision 3; Laws 1994, chapter 587, articles 5, section 27; 9, section 10, subdivision 6; proposing coding for new law in Minnesota Statutes, chapters 3; 8; 13; 16A; 272; 273; 276; 282; 290A; 297; 469; 473; and 477A; repealing Minnesota Statutes 1994, sections 168.013, subdivision 1j; 296.0261, subdivisions 1, 2, 3, 4, 5, 6, 7, 8, and 9; 297A.136; and 469.175, subdivision 7a.


JOURNAL OF THE HOUSE - 52nd Day - Top of Page 3616

The Senate has appointed as such committee:

Messrs. Johnson, D. J.; Belanger; Mses. Flynn, Reichgott Junge and Mr. Hottinger.

Said House File is herewith returned to the House.

Patrick E. Flahaven, Secretary of the Senate

Mr. Speaker:

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

H. F. No. 1082, A bill for an act relating to cooperatives; permitting certain optional voting systems for cooperatives that have other cooperatives as members; amending Minnesota Statutes 1994, sections 308A.131, subdivision 1; 308A.635, subdivision 1; and 308A.641.

Patrick E. Flahaven, Secretary of the Senate

CONCURRENCE AND REPASSAGE

Olson, E., moved that the House concur in the Senate amendments to H. F. No. 1082 and that the bill be repassed as amended by the Senate. The motion prevailed.

H. F. No. 1082, A bill for an act relating to cooperatives; permitting certain optional voting systems for cooperatives that have other cooperatives as members; amending Minnesota Statutes 1994, sections 308A.131, subdivision 1; 308A.635, subdivision 1; and 308A.641.

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

The question was taken on the repassage of the bill and the roll was called. There were 119 yeas and 0 nays as follows:

Those who voted in the affirmative were:

Abrams       Girard       Kraus        Olson, E.    Skoglund
Anderson, B. Greenfield   Krinkie      Onnen        Smith
Bakk         Greiling     Larsen       Opatz        Solberg
Bertram      Haas         Leighton     Orenstein    Stanek
Bettermann   Hackbarth    Lieder       Orfield      Sviggum
Boudreau     Harder       Lindner      Osskopp      Swenson, D.
Bradley      Hasskamp     Long         Osthoff      Swenson, H.
Broecker     Hausman      Lourey       Ostrom       Sykora
Brown        Holsten      Luther       Otremba      Tomassoni
Carlson      Hugoson      Lynch        Ozment       Tompkins
Clark        Huntley      Macklin      Paulsen      Tuma
Commers      Jaros        Mahon        Pawlenty     Tunheim
Cooper       Jefferson    Mares        Pellow       Van Dellen
Daggett      Johnson, A.  Mariani      Pelowski     Van Engen
Dauner       Johnson, R.  Marko        Perlt        Vickerman
Davids       Johnson, V.  McCollum     Peterson     Wagenius
Dehler       Kahn         McElroy      Pugh         Warkentin
Dempsey      Kalis        McGuire      Rhodes       Weaver
Dorn         Kelley       Milbert      Rostberg     Wenzel
Entenza      Kelso        Molnau       Rukavina     Wolf
Erhardt      Kinkel       Mulder       Sarna        Worke
Farrell      Knight       Munger       Schumacher   Workman
Finseth      Knoblach     Murphy       Seagren      Sp.Anderson,I
Frerichs     Koppendrayer Ness         Simoneau     
The bill was repassed, as amended by the Senate, and its title agreed to.


JOURNAL OF THE HOUSE - 52nd Day - Top of Page 3617

Mr. Speaker:

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

H. F. No. 217, A bill for an act relating to insurance; life; regulating living benefits settlements; adopting the NAIC viatical settlements model act; prescribing powers and duties; amending Minnesota Statutes 1994, section 13.71, by adding a subdivision; proposing coding for new law in Minnesota Statutes, chapter 60A.

Patrick E. Flahaven, Secretary of the Senate

CONCURRENCE AND REPASSAGE

Simoneau moved that the House concur in the Senate amendments to H. F. No. 217 and that the bill be repassed as amended by the Senate. The motion prevailed.

H. F. No. 217, A bill for an act relating to insurance; life; regulating living benefits settlements; adopting the NAIC viatical settlements model act; prescribing powers and duties; appropriating money; amending Minnesota Statutes 1994, section 13.71, by adding a subdivision; proposing coding for new law in Minnesota Statutes, chapter 60A.

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

The question was taken on the repassage of the bill and the roll was called. There were 122 yeas and 2 nays as follows:

Those who voted in the affirmative were:

Abrams       Frerichs     Kraus        Opatz        Solberg
Anderson, B. Girard       Leighton     Orenstein    Stanek
Bakk         Greenfield   Leppik       Orfield      Sviggum
Bertram      Greiling     Lieder       Osskopp      Swenson, D.
Bettermann   Hackbarth    Long         Osthoff      Swenson, H.
Boudreau     Harder       Lourey       Ostrom       Sykora
Bradley      Hasskamp     Luther       Otremba      Tomassoni
Broecker     Hausman      Lynch        Ozment       Tompkins
Brown        Holsten      Macklin      Paulsen      Trimble
Carlson      Hugoson      Mahon        Pawlenty     Tuma
Clark        Huntley      Mares        Pellow       Tunheim
Commers      Jaros        Mariani      Pelowski     Van Dellen
Cooper       Jefferson    Marko        Perlt        Van Engen
Daggett      Jennings     McCollum     Peterson     Vickerman
Dauner       Johnson, A.  McElroy      Pugh         Wagenius
Davids       Johnson, R.  McGuire      Rhodes       Warkentin
Dawkins      Johnson, V.  Milbert      Rice         Weaver
Dehler       Kahn         Molnau       Rostberg     Wenzel
Delmont      Kalis        Mulder       Rukavina     Wolf
Dempsey      Kelley       Munger       Sarna        Worke
Dorn         Kelso        Murphy       Schumacher   Workman
Entenza      Kinkel       Ness         Seagren      Sp.Anderson,I
Erhardt      Knight       Olson, E.    Simoneau     
Farrell      Knoblach     Olson, M.    Skoglund     
Finseth      Koppendrayer Onnen        Smith        
Those who voted in the negative were:

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

Mr. Speaker:

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


JOURNAL OF THE HOUSE - 52nd Day - Top of Page 3618

H. F. No. 751, A bill for an act relating to insurance; regulating trade practices; prohibiting certain insurance agent quotas; proposing coding for new law in Minnesota Statutes, chapter 60A.

Patrick E. Flahaven, Secretary of the Senate

CONCURRENCE AND REPASSAGE

Davids moved that the House concur in the Senate amendments to H. F. No. 751 and that the bill be repassed as amended by the Senate. The motion prevailed.

H. F. No. 751, A bill for an act relating to insurance; regulating trade practices; prohibiting certain insurance agent quotas; proposing coding for new law in Minnesota Statutes, chapter 60A.

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

The question was taken on the repassage of the bill and the roll was called. There were 126 yeas and 0 nays as follows:

Those who voted in the affirmative were:

Abrams       Frerichs     Koppendrayer Olson, M.    Solberg
Anderson, B. Girard       Kraus        Onnen        Stanek
Bakk         Goodno       Krinkie      Opatz        Sviggum
Bertram      Greenfield   Larsen       Orenstein    Swenson, D.
Bettermann   Greiling     Leighton     Orfield      Swenson, H.
Bishop       Haas         Leppik       Osskopp      Sykora
Boudreau     Hackbarth    Lieder       Osthoff      Tomassoni
Bradley      Harder       Lindner      Ostrom       Tompkins
Broecker     Hasskamp     Long         Otremba      Trimble
Brown        Hausman      Lourey       Ozment       Tuma
Carlson      Holsten      Luther       Paulsen      Tunheim
Clark        Hugoson      Lynch        Pellow       Van Dellen
Commers      Huntley      Macklin      Pelowski     Van Engen
Cooper       Jaros        Mahon        Perlt        Vickerman
Daggett      Jefferson    Mares        Peterson     Wagenius
Dauner       Jennings     Mariani      Pugh         Warkentin
Davids       Johnson, A.  Marko        Rhodes       Weaver
Dawkins      Johnson, R.  McCollum     Rice         Wenzel
Dehler       Johnson, V.  McElroy      Rostberg     Wolf
Delmont      Kahn         McGuire      Rukavina     Worke
Dempsey      Kalis        Milbert      Sarna        Workman
Dorn         Kelley       Molnau       Schumacher   Sp.Anderson,I
Entenza      Kelso        Mulder       Seagren      
Erhardt      Kinkel       Munger       Simoneau     
Farrell      Knight       Murphy       Skoglund     
Finseth      Knoblach     Ness         Smith        
The bill was repassed, as amended by the Senate, and its title agreed to.

Mr. Speaker:

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

H. F. No. 1709, A bill for an act relating to the city of Chanhassen; authorizing certain bid specifications for playground equipment on an experimental basis.

Patrick E. Flahaven, Secretary of the Senate

CONCURRENCE AND REPASSAGE

Workman moved that the House concur in the Senate amendments to H. F. No. 1709 and that the bill be repassed as amended by the Senate. The motion prevailed.


JOURNAL OF THE HOUSE - 52nd Day - Top of Page 3619

H. F. No. 1709, A bill for an act relating to the city of Chanhassen; authorizing certain bid specifications for playground equipment on an experimental basis.

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

The question was taken on the repassage of the bill and the roll was called. There were 128 yeas and 0 nays as follows:

Those who voted in the affirmative were:

Abrams       Finseth      Koppendrayer Olson, E.    Skoglund
Anderson, B. Frerichs     Kraus        Olson, M.    Smith
Bakk         Girard       Krinkie      Onnen        Solberg
Bertram      Goodno       Larsen       Opatz        Stanek
Bettermann   Greenfield   Leighton     Orenstein    Sviggum
Bishop       Greiling     Leppik       Orfield      Swenson, D.
Boudreau     Haas         Lieder       Osskopp      Swenson, H.
Bradley      Hackbarth    Lindner      Osthoff      Sykora
Broecker     Harder       Long         Ostrom       Tomassoni
Brown        Hasskamp     Lourey       Otremba      Tompkins
Carlson      Hausman      Luther       Ozment       Trimble
Carruthers   Holsten      Lynch        Paulsen      Tuma
Clark        Huntley      Macklin      Pawlenty     Tunheim
Commers      Jaros        Mahon        Pellow       Van Dellen
Cooper       Jefferson    Mares        Pelowski     Van Engen
Daggett      Jennings     Mariani      Perlt        Vickerman
Dauner       Johnson, A.  Marko        Peterson     Wagenius
Davids       Johnson, R.  McCollum     Pugh         Warkentin
Dawkins      Johnson, V.  McElroy      Rhodes       Weaver
Dehler       Kahn         McGuire      Rice         Wenzel
Delmont      Kalis        Milbert      Rostberg     Wolf
Dempsey      Kelley       Molnau       Rukavina     Worke
Dorn         Kelso        Mulder       Sarna        Workman
Entenza      Kinkel       Munger       Schumacher   Sp.Anderson,I
Erhardt      Knight       Murphy       Seagren      
Farrell      Knoblach     Ness         Simoneau     
The bill was repassed, as amended by the Senate, and its title agreed to.

Mr. Speaker:

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

H. F. No. 1437, A bill for an act relating to employment; requiring disclosure to recruited employees in the food processing industry; proposing coding for new law in Minnesota Statutes, chapter 181.

Patrick E. Flahaven, Secretary of the Senate

CONCURRENCE AND REPASSAGE

Goodno moved that the House concur in the Senate amendments to H. F. No. 1437 and that the bill be repassed as amended by the Senate. The motion prevailed.

H. F. No. 1437, A bill for an act relating to employment; requiring disclosure to recruited employees in the food processing industry; providing penalties; proposing coding for new law in Minnesota Statutes, chapter 181.

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

The question was taken on the repassage of the bill and the roll was called. There were 125 yeas and 2 nays as follows:

Those who voted in the affirmative were:

Abrams       Frerichs     Koppendrayer Orenstein    Swenson, D.
Anderson, B. Garcia       Kraus        Orfield      Swenson, H.
Bakk         Girard       Larsen       Osskopp      Sykora
Bertram      Goodno       Leighton     Osthoff      Tomassoni
Bettermann   Greenfield   Leppik       Ostrom       Tompkins
Bishop       Greiling     Lieder       Otremba      Trimble
Boudreau     Haas         Lindner      Ozment       Tuma
Bradley      Hackbarth    Long         Paulsen      Tunheim
Broecker     Harder       Lourey       Pawlenty     Van Dellen
Brown        Hasskamp     Luther       Pellow       Van Engen
Carlson      Hausman      Lynch        Pelowski     Vickerman
Carruthers   Holsten      Macklin      Perlt        Wagenius
Clark        Hugoson      Mahon        Peterson     Warkentin
Commers      Huntley      Mares        Pugh         Weaver
Cooper       Jaros        Mariani      Rhodes       Wejcman
Daggett      Jefferson    Marko        Rice         Wenzel
Dauner       Jennings     McCollum     Rostberg     Winter
Davids       Johnson, A.  McElroy      Rukavina     Wolf
Dawkins      Johnson, R.  McGuire      Sarna        Worke
Dehler       Johnson, V.  Milbert      Schumacher   Workman
Delmont      Kahn         Molnau       Seagren      Sp.Anderson,I
Dempsey      Kalis        Munger       Skoglund     
Dorn         Kelley       Ness         Smith        
Entenza      Kinkel       Olson, M.    Solberg      
Farrell      Knight       Onnen        Stanek       
Finseth      Knoblach     Opatz        Sviggum      
Those who voted in the negative were:

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

Mr. Speaker:

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

H. F. No. 1174, A bill for an act relating to transportation; expanding authority of commissioner of transportation to regulate providers of special transportation service; classifying data; providing for administrative penalties; amending Minnesota Statutes 1994, sections 13.99, by adding subdivisions; 174.30, subdivisions 2, 3, 4, 6, and by adding subdivisions; and 174.315.

Patrick E. Flahaven, Secretary of the Senate

CONCURRENCE AND REPASSAGE

Marko moved that the House concur in the Senate amendments to H. F. No. 1174 and that the bill be repassed as amended by the Senate. The motion prevailed.

H. F. No. 1174, A bill for an act relating to transportation; expanding authority of commissioner of transportation to regulate providers of special transportation service; classifying data; providing for administrative fees and penalties; amending Minnesota Statutes 1994, sections 13.99, by adding subdivisions; 174.30, subdivisions 2, 3, 4, 6, and by adding subdivisions; and 174.315.

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

The question was taken on the repassage of the bill and the roll was called. There were 127 yeas and 0 nays as follows:

Those who voted in the affirmative were:

Abrams       Frerichs     Koppendrayer Olson, E.    Solberg
Anderson, B. Garcia       Kraus        Olson, M.    Stanek
Bakk         Girard       Krinkie      Onnen        Sviggum
Bertram      Greenfield   Larsen       Opatz        Swenson, D.
Bettermann   Greiling     Leighton     Orenstein    Swenson, H.
Bishop       Haas         Leppik       Orfield      Sykora
Boudreau     Hackbarth    Lieder       Osskopp      Tomassoni
Bradley      Harder       Lindner      Osthoff      Tompkins
Brown        Hasskamp     Long         Otremba      Trimble
Carlson      Hausman      Lourey       Ozment       Tuma
Carruthers   Holsten      Luther       Paulsen      Tunheim
Clark        Hugoson      Lynch        Pawlenty     Van Dellen
Commers      Huntley      Macklin      Pellow       Van Engen
Cooper       Jaros        Mahon        Pelowski     Vickerman
Daggett      Jefferson    Mares        Perlt        Wagenius
Dauner       Jennings     Mariani      Peterson     Warkentin
Davids       Johnson, A.  Marko        Pugh         Weaver
Dawkins      Johnson, R.  McCollum     Rhodes       Wejcman
Dehler       Johnson, V.  McElroy      Rice         Wenzel
Delmont      Kahn         McGuire      Rostberg     Wolf
Dempsey      Kalis        Milbert      Rukavina     Worke
Dorn         Kelley       Molnau       Sarna        Workman
Entenza      Kelso        Mulder       Schumacher   Sp.Anderson,I
Erhardt      Kinkel       Munger       Seagren      
Farrell      Knight       Murphy       Skoglund     
Finseth      Knoblach     Ness         Smith        
The bill was repassed, as amended by the Senate, and its title agreed to.

Mr. Speaker:

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

S. F. No. 1110, A bill for an act relating to human services; appropriating money for the department of human services and health, for the veterans nursing homes board, for the health-related boards, for the council on disability, for the ombudsman for mental health and mental retardation, and for the ombudsman for families; modifying day training and habilitation services; creating the consumer support program; modifying child care programs; defining and including essential persons in determining AFDC eligibility; modifying the Minnesota Supplemental Aid program by making it consistent with the federal SSI program; modifying group residential housing; limiting the admission of certain high-functioning persons to nursing facilities; modifying hospital inflation and requiring inflation adjustments to reflect prior overpayments; modifying medical assistance disproportionate share payments; establishing hospital peer groups; establishing long-term hospital rates; modifying treatment of certain trusts; modifying treatment of assets and income for institutionalized persons; reducing the pharmacy dispensing fee; establishing pharmacy copayments in medical assistance and general assistance medical care; establishing a service allowance for certain persons denied admission to a nursing facility; increasing reimbursement rates for certain home care services provided in Anoka county; modifying certain intergovernmental transfers; clarifying the county nursing home payment adjustment; requiring a discount in general assistance medical care prepaid contracts; eliminating payment for gender reassignment services under general assistance medical care; providing a two percent rate increase for certain providers; authorizing certain demonstration projects; modifying certain parental fees; modifying medical assistance eligibility criteria for certain disabled children; modifying requirements for personal care assistants and personal care assistant organizations; modifying coverage for personal care services and reducing maximum hours of service; expanding certain services under medical assistance managed care for disabled children; authorizing certain studies; authorizing exceptions to the nursing home moratorium and modifying reimbursements for legislatively-approved exceptions; modifying requirements for hospital-attached nursing facility status; modifying nursing facility reimbursement and inflationary adjustments; establishing a contractual alternative payment system for nursing facilities; modifying reimbursement for intermediate care facilities for persons with mental retardation or related conditions; establishing transition mental health services; modifying chemical dependency treatment programs; providing Faribault and Cambridge regional human services center downsizing agreements; decreasing certain license and permit fees; modifying the licensing and inspecting of hotel, restaurant, and other food and lodging establishments; amending Minnesota Statutes 1994, sections 62A.045; 62A.046; 62A.048; 62A.27; 144.0721, by adding subdivisions; 144.122; 144.226, subdivision 1; 144A.071, subdivision 4a; 144A.33, subdivision 3; 144A.43, subdivision 3; 144A.47; 147.01, subdivision 6; 157.03; 198.003, subdivisions 3 and 4; 245.4882, subdivision 5; 245.4886, by adding a subdivision; 246.18, subdivision 4, and by adding a subdivision; 246.23, subdivision 2; 252.27, subdivision 2a; 252.292, subdivision 4; 252.46, subdivision 6, and by adding a subdivision; 254A.17, subdivision 3; 254B.05, subdivision 4; 256.025, subdivisions 1 and 2; 256.026; 256.73, subdivision 3a; 256.736, subdivisions 3 and 13; 256.74, subdivision 1; 256.9365; 256.9657, subdivision 3; 256.9685, subdivision 1b, and by adding subdivisions; 256.969, subdivisions 1, 9, 24, and by adding subdivisions; 256B.055, subdivision 12; 256B.056, by adding a subdivision; 256B.0575; 256B.0625, subdivisions 8, 8a, 13, 19a, and by adding subdivisions; 256B.0627, subdivisions 1, 2, 4, and 5; 256B.0641, subdivision 1; 256B.0911, subdivisions 4 and 7; 256B.0913, by adding subdivisions; 256B.0915, subdivision 2, and by adding a subdivision; 256B.092, subdivision 4; 256B.15, subdivisions 1a, 2, and by adding a subdivision; 256B.19, subdivisions 1c and 1d; 256B.431, subdivisions 2b, 2j, 17, 23, and by adding subdivisions; 256B.49, subdivision 1, and by adding


JOURNAL OF THE HOUSE - 52nd Day - Top of Page 3620

subdivisions; 256B.501, subdivisions 3, 3c, and by adding a subdivision; 256B.69, subdivisions 4, 5, 6, 9, and by adding subdivisions; 256D.03, subdivisions 3b, 4, and by adding a subdivision; 256D.051, subdivision 6; 256D.36, subdivision 1; 256D.385; 256D.405, subdivision 3; 256D.425, subdivision 1, and by adding a subdivision; 256D.435, subdivisions 1, 3, 4, 5, 6, and by adding a subdivision; 256D.44, subdivisions 1, 2, 3, 4, 5, and 6; 256D.45, subdivision 1; 256D.48, subdivision 1; 256H.03, subdivision 4; 256H.05, subdivision 6; 256I.04, subdivision 3; 256I.05, subdivision 1a; 393.07, subdivision 10; 501B.89, subdivision 1, and by adding a subdivision; and Laws 1993, First Special Session chapter 1, article 8, section 51, subdivision 5; proposing coding for new law in Minnesota Statutes, chapters 157; 256; and 256B; proposing coding for new law as Minnesota Statutes, chapter 144D; repealing Minnesota Statutes 1994, sections 38.161; 38.162; 144.0723, subdivision 5; 157.01; 157.02; 157.031; 157.04; 157.045; 157.05; 157.08; 157.12; 157.13; 157.14; 252.47; 256.851; 256B.501, subdivisions 3d, 3e, and 3f; 256D.35, subdivisions 14 and 19; 256D.36, subdivision 1a; 256D.37; 256D.425, subdivision 3; 256D.435, subdivisions 2, 7, 8, 9, and 10; 256D.44, subdivision 7; 256E.06, subdivisions 12 and 13; 256I.04, subdivision 1b; and Minnesota Rules, part 9500.1452, subpart 2, item B.

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

Messrs. Samuelson; Sams; Ms. Kiscaden; Mr. Stevens and Ms. Berglin.

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

Patrick E. Flahaven, Secretary of the Senate

Greenfield moved that the House accede to the request of the Senate and that the Speaker appoint a Conference Committee of 5 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. 1110. The motion prevailed.

Mr. Speaker:

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

S. F. No. 1134, A bill for an act relating to financial institutions; regulating notices, electronic financial terminals, mergers with subsidiaries, the powers and duties of the commissioner of commerce, reporting and records requirements, lending powers, the powers and duties of institutions, detached facilities, and interstate banking; making technical changes; regulating mortgage prepayments; allowing written waivers of the right to prepay without penalty under certain circumstances; clarifying definition of franchise; permitting a delinquency and collection charge; amending Minnesota Statutes 1994, sections 46.04, subdivision 1, and by adding a subdivision; 46.041, subdivision 4; 46.046, subdivision 1; 46.048, subdivision 1, and by adding subdivisions; 47.10, subdivision 3; 47.11; 47.20, subdivisions 5 and 10; 47.28, subdivision 1; 47.52; 47.56; 47.58, subdivision 2; 47.61, subdivision 3; 47.62, subdivisions 2, 3, and by adding subdivisions; 47.67; 47.69, subdivisions 3 and 5; 47.78; 48.16; 48.194; 48.24, subdivision 5; 48.475, subdivision 3; 48.48, subdivisions 1 and 2; 48.49; 48.61, subdivision 7, and by adding a subdivision; 48.65; 48.90, subdivision 1; 48.91; 48.92, subdivisions 1, 2, 6, 7, 8, 9, and by adding a subdivision; 48.93, subdivisions 1, 3, and 4; 48.96; 48.99, subdivision 1; 49.01, subdivision 3; 51A.02, subdivisions 6, 26, and 40; 51A.19, subdivision 9; 51A.50; 51A.58; 52.04, subdivision 2a; 52.05, subdivision 2; 53.015, subdivision 4; 53.04, subdivisions 3a, 3c, 4a, and 5a; 53.09, subdivisions 1, 2, and by adding a subdivision; 56.11; 56.12; 56.125, subdivisions 1, 2, and 3; 56.131, subdivisions 1, 2, 4, and 6; 56.132; 56.14; 56.155, subdivision 1; 56.17; 59A.06, subdivision 2; 61A.09, subdivision 3; 62B.04, subdivision 1; 62B.08, subdivision 2; 80C.01, subdivision 4; 300.20, subdivision 1; 327B.04, subdivision 1; 327B.09, subdivision 1; 332.23, subdivisions 1 and 2; proposing coding for new law in Minnesota Statutes, chapters 45; 47; 48; 51A; 52; and 334; repealing Minnesota Statutes 1994, sections 46.03; 47.80; 47.81; 47.82; 47.83; 47.84; 47.85; 48.1585; 48.512, subdivision 6; 48.611; 48.95; 48.97; 48.98; 48.991; and 51A.385.

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

Mr. Solon; Ms. Wiener and Mr. Belanger.

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

Patrick E. Flahaven, Secretary of the Senate


JOURNAL OF THE HOUSE - 52nd Day - Top of Page 3621

Jennings 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. 1134. The motion prevailed.

Mr. Speaker:

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

S. F. No. 308.

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.

Patrick E. Flahaven, Secretary of the Senate

CONFERENCE COMMITTEE REPORT ON S. F. NO. 308

A bill for an act relating to crime prevention; authorizing special registration plates for certain persons subject to an impoundment order; expanding the definition of prior license revocation; amending Minnesota Statutes 1994, sections 168.042, subdivision 8; and 169.121, subdivision 3.

April 24, 1995

The Honorable Allan H. Spear

President of the Senate

The Honorable Irv Anderson

Speaker of the House of Representatives

We, the undersigned conferees for S. F. No. 308, 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. 308 be further amended as follows:

Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 1994, section 168.042, subdivision 8, is amended to read:

Subd. 8. [REISSUANCE OF REGISTRATION PLATES.] (a) The commissioner shall rescind the impoundment order of a person subject to an order under this section, other than the violator, if a:

(1) the violator had a valid driver's license on the date of the violation and the person subject to an impoundment order under this section, other than the violator, files with the commissioner an acceptable sworn statement containing the following information:

(1) (i) that the person is the registered owner of the vehicle from which the plates have been impounded under this section;

(2) (ii) that the person is the current owner and possessor of the vehicle used in the violation;

(3) (iii) the date on which the violator obtained the vehicle from the registered owner;

(4) (iv) the residence addresses of the registered owner and the violator on the date the violator obtained the vehicle from the registered owner;

(5) (v) that the person was not a passenger in the vehicle at the time of the violation; and


JOURNAL OF THE HOUSE - 52nd Day - Top of Page 3622

(6) (vi) that the person knows that the violator may not drive, operate, or be in physical control of a vehicle without a valid driver's license; or

(2) the violator did not have a valid driver's license on the date of the violation and the person made a report to law enforcement before the violation stating that the vehicle had been taken from the person's possession or was being used without permission.

(b) The commissioner may not rescind the impoundment order nor reissue registration plates to a registered owner if the owner knew or had reason to know that the violator did not have a valid driver's license on the date the violator obtained the vehicle from the owner. A person who has failed to make a report as provided in paragraph (a), clause (2), may be issued special registration plates under subdivision 12 for a period of one year from the effective date of the impoundment order. At the next registration renewal following this period, the person may apply for regular registration plates.

(c) If the order is rescinded, the owner shall receive new registration plates at no cost, if the plates were seized and destroyed.

Sec. 2. Minnesota Statutes 1994, section 168.042, is amended by adding a subdivision to read:

Subd. 13a. [ACQUIRING ANOTHER VEHICLE.] If during the effective period of the plate impoundment the violator applies to the commissioner for registration plates for any vehicle, the commissioner shall not issue registration plates unless the violator qualifies for special registration plates under subdivision 12 and unless the plates issued are special plates as described in subdivision 12.

Sec. 3. Minnesota Statutes 1994, section 169.121, subdivision 3, is amended to read:

Subd. 3. [CRIMINAL PENALTIES.] (a) As used in this subdivision:

(1) "prior impaired driving conviction" means a prior conviction under this section; section 84.91, subdivision 1, paragraph (a); 86B.331, subdivision 1, paragraph (a); 169.129; 360.0752; 609.21, subdivision 1, clauses (2) to (4); 609.21, subdivision 2, clauses (2) to (4); 609.21, subdivision 2a, clauses (2) to (4); 609.21, subdivision 3, clauses (2) to (4); 609.21, subdivision 4, clauses (2) to (4); or an ordinance from this state, or a statute or ordinance from another state in conformity with any of them. A prior impaired driving conviction also includes a prior juvenile adjudication that would have been a prior impaired driving conviction if committed by an adult; and

(2) "prior license revocation" means a driver's license suspension, revocation, or cancellation under this section; section 169.123; 171.04; 171.14; 171.16; 171.17; or 171.18 because of an alcohol-related incident; 609.21, subdivision 1, clauses (2) to (4); 609.21, subdivision 2, clauses (2) to (4); 609.21, subdivision 2a, clauses (2) to (4); 609.21, subdivision 3, clauses (2) to (4); or 609.21, subdivision 4, clauses (2) to (4); or an ordinance from this state, or a statute or ordinance from another state in conformity with any of them.

(b) A person who violates subdivision 1 or 1a, or an ordinance in conformity with either of them, is guilty of a misdemeanor.

(c) A person is guilty of a gross misdemeanor under any of the following circumstances:

(1) the person violates subdivision 1 within five years of a prior impaired driving conviction, or within ten years of the first of two or more prior impaired driving convictions;

(2) the person violates subdivision 1a within five years of a prior license revocation, or within ten years of the first of two or more prior license revocations;

(3) the person violates section 169.26 while in violation of subdivision 1; or

(4) the person violates subdivision 1 or 1a while a child under the age of 16 is in the vehicle, if the child is more than 36 months younger than the violator.

(d) The attorney in the jurisdiction in which the violation occurred who is responsible for prosecution of misdemeanor violations of this section shall also be responsible for prosecution of gross misdemeanor violations of this section.


JOURNAL OF THE HOUSE - 52nd Day - Top of Page 3623

(e) The court must impose consecutive sentences when it sentences a person for a violation of this section or section 169.29 arising out of separate behavioral incidents. The court also must impose a consecutive sentence when it sentences a person for a violation of this section or section 169.129 and the person, at the time of sentencing, is on probation for, or serving, an executed sentence for a violation of this section or section 169.29 and the prior sentence involved a separate behavioral incident. The court also may order that the sentence imposed for a violation of this section or section 169.29 shall run consecutively to a previously imposed misdemeanor, gross misdemeanor or felony sentence for a violation other than this section or section 169.129.

(f) When an attorney responsible for prosecuting gross misdemeanors under this section requests criminal history information relating to prior impaired driving convictions from a court, the court must furnish the information without charge.

(g) A violation of subdivision 1a may be prosecuted either in the jurisdiction where the arresting officer observed the defendant driving, operating, or in control of the motor vehicle or in the jurisdiction where the refusal occurred."

Delete the title and insert:

"A bill for an act relating to crime prevention; authorizing special registration plates for certain persons subject to an impoundment order; clarifying definition of prior license revocation; amending Minnesota Statutes 1994, sections 168.042, subdivision 8, and by adding a subdivision; and 169.121, subdivision 3."

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

Senate Conferees: John Marty, Jane B. Ranum and David L. Knutson.

House Conferees: Wesley J. "Wes" Skoglund, Matt Entenza and Doug Swenson.

Skoglund moved that the report of the Conference Committee on S. F. No. 308 be adopted and that the bill be repassed as amended by the Conference Committee. The motion prevailed.

S. F. No. 308, A bill for an act relating to crime prevention; authorizing special registration plates for certain persons subject to an impoundment order; expanding the definition of prior license revocation; amending Minnesota Statutes 1994, sections 168.042, subdivision 8; and 169.121, subdivision 3.

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 121 yeas and 8 nays as follows:

Those who voted in the affirmative were:

Abrams       Frerichs     Larsen       Opatz        Solberg
Anderson, B. Garcia       Leighton     Orenstein    Sviggum
Bakk         Girard       Leppik       Orfield      Swenson, D.
Bertram      Greenfield   Lieder       Osskopp      Swenson, H.
Bettermann   Greiling     Lindner      Osthoff      Sykora
Bishop       Haas         Long         Otremba      Tomassoni
Bradley      Hackbarth    Lourey       Ozment       Trimble
Broecker     Harder       Luther       Paulsen      Tuma
Brown        Hasskamp     Lynch        Pawlenty     Tunheim
Carlson      Hausman      Macklin      Pellow       Van Dellen
Carruthers   Holsten      Mahon        Pelowski     Van Engen
Clark        Hugoson      Mares        Perlt        Vickerman
Commers      Huntley      Mariani      Peterson     Wagenius
Cooper       Jaros        Marko        Pugh         Warkentin
Daggett      Jefferson    McCollum     Rest         Weaver
Dauner       Jennings     McElroy      Rhodes       Wejcman
Davids       Johnson, A.  McGuire      Rice         Wenzel
Dawkins      Johnson, R.  Milbert      Rostberg     Wolf
Delmont      Kahn         Molnau       Rukavina     Worke
Dempsey      Kalis        Mulder       Sarna        Workman
Dorn         Kelley       Munger       Schumacher   Sp.Anderson,I
Entenza      Kelso        Murphy       Seagren      
Erhardt      Kinkel       Ness         Simoneau     

JOURNAL OF THE HOUSE - 52nd Day - Top of Page 3624
Farrell Knoblach Olson, M. Skoglund Finseth Koppendrayer Onnen Smith
Those who voted in the negative were:

Boudreau     Johnson, V.  Kraus        Stanek       
Dehler       Knight       Krinkie      Tompkins     
The bill was repassed, as amended by Conference, and its title agreed to.

Mr. Speaker:

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

S. F. Nos. 1303, 1136, 1103 and 1078.

Patrick E. Flahaven, Secretary of the Senate

FIRST READING OF SENATE BILLS

S. F. No. 1303, A bill for an act relating to the city of Richfield; authorizing the formation of nonprofit corporations for the purpose of owning low and moderate income housing developments.

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

S. F. No. 1136, A bill for an act relating to human services; providing firearms background check; providing mental health services; adding provisions for paternity testing; adding provisions for paternity and child support; consolidating the prepaid medical assistance; providing penalties; amending Minnesota Statutes 1994, sections 245.041; 245.4871, subdivisions 12 and 33a; 245.4873, subdivision 6; 245.4874; 245.4875, subdivision 2; 245.4878; 245.4885, subdivision 2; 253B.091; 256.015, subdivision 7; 256.025, subdivisions 1 and 3; 256.12, subdivision 14; 256.74, by adding a subdivision; 256.76, subdivision 1; 256B.69, subdivisions 4, 6, and by adding subdivisions; 256E.08, subdivision 8; 257.55, subdivision 1; 257.57, subdivision 2; 257.62, subdivisions 1, 5, and 6; 257.64, subdivision 3; 257.69, subdivisions 1 and 2; 518.171, subdivisions 1, 3, 4, 5, 7, and 8; 518.611, subdivisions 2 and 4; 518.613, subdivision 7; and 518.615, subdivision 3; repealing Minnesota Statutes 1994, sections 62C.141; 62C.143; 62D.106; and 62E.04, subdivisions 9 and 10.

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

S. F. No. 1103, A bill for an act relating to children's services; establishing the department of children, families, and learning; making related changes; amending Minnesota Statutes 1994, section 256F.13, subdivision 1; proposing coding for new law as Minnesota Statutes, chapter 119A; repealing Minnesota Statutes 1994, section 3.873.

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

S. F. No. 1078, A bill for an act relating to state finance; changing certain accounting procedures; changing the dollar threshold for approval of gifts to the state; changing procedures for collection of debt by the state; changing terminology for the petroleum tank release cleanup account; amending Minnesota Statutes 1994, sections 7.09, subdivision 1; 15.415; 16A.127, subdivision 8; 16A.129, subdivision 3; 16A.28, subdivisions 5 and 6; 16A.40; 16A.57; 16A.72; 115C.02, by adding a subdivision; and 115C.08, subdivisions 1, 2, and 4; proposing coding for new law in Minnesota Statutes, chapter 16D; repealing Minnesota Statutes 1994, section 115C.02, subdivision 1a.

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


JOURNAL OF THE HOUSE - 52nd Day - Top of Page 3625

SPECIAL ORDERS

H. F. No. 1573 was reported to the House.

Kelley moved to amend H. F. No. 1573, the first engrossment, as follows:

Page 3, line 17, strike "and loan"

Page 9, line 9, strike "and loan" and after "bank" insert a comma

Page 10, line 27, strike ", BUILDING AND"

Page 10, line 28, strike "LOAN"

Page 11, line 6, strike ", building and loan"

Page 12, line 5, strike the comma

Page 12, line 6, strike "building and loan"

Page 12, line 9, strike ", building and loan"

Page 15, line 14, strike ", building and loan"

Page 15, line 16, strike the second comma

Page 15, line 17, strike "building and loan"

Page 19, after line 33, insert:

"Sec. 30. Minnesota Statutes 1994, section 48.15, is amended by adding a subdivision to read:

Subd. 2a. [AUTHORIZED ACTIVITIES.] The commissioner may authorize a state bank to undertake any activities, exercise any powers, or make any investments that are authorized activities, powers, or investments as of the date of final enactment of this subdivision for any state savings bank doing business in this state, or that become authorized activities, powers, or investments for state savings banks after the date of final enactment of this subdivision. The commissioner may not authorize state banks to engage in any banking activity prohibited by the laws of this state."

Page 21, line 5, strike "for record"

Page 21, line 28, delete "corporation" and insert "company"

Page 24, delete lines 15 and 16 and insert:

"Subd. 11. [INSURANCE AGENCY.] (a) A savings bank located and doing business in any place where the population does not exceed 5,000 inhabitants as shown by the last preceding decennial census may, directly or through a subsidiary, subject to any rules adopted by the commissioner, act as an agent for any property-casualty, life, or other insurance company authorized by the commissioner to do business in this state. Except as provided in paragraph (c), a savings bank may not directly or through a subsidiary act as an agent for any property-casualty, life, or other insurance company in any place where the population exceeds 5,000 inhabitants as shown by the last preceding decennial census.

(b) To the extent allowed under paragraphs (a) and (c), a savings bank or its subsidiary may solicit or sell insurance and collect premiums on policies issued by the insurance company and may receive for these services the fees and commissions agreed upon between the savings bank and the insurance company.

(c) A savings bank may, directly or through a subsidiary, act as an agent for any property-casualty, life, or other insurance company in a place where the population exceeds 5,000 inhabitants as shown by the last preceding decennial census, if:


JOURNAL OF THE HOUSE - 52nd Day - Top of Page 3626

(1) the savings bank is a direct or indirect subsidiary of a state or federal savings association or of a state or federal savings association holding company that, prior to the date of enactment of this subdivision, had a license from the commissioner to solicit or sell insurance of the type in question, or directly or indirectly controlled a subsidiary that held such a license; or

(2) the savings bank is a successor to a state or federal savings association as a result of merger, charter conversion, or otherwise, which association, prior to the date of enactment of this subdivision, held a license from the commissioner to solicit or sell insurance of the type in question, or directly or indirectly controlled a subsidiary that held such a license."

Page 24, line 19, delete "Federal" and insert "federal"

Page 24, line 21, delete "Federal" and insert "federal"

Page 26, line 29, delete "a rule of" and insert "rules adopted by"

Page 27, line 12, after "action" insert a comma

Page 31, line 13, delete "have" and insert "has"

Page 37, line 28, delete "organizations" and insert "organization"

Page 38, line 29, after "from" insert a comma

Page 39, line 2, delete "rule of" and insert "rules adopted by"

Page 39, line 25, delete "the provisions of"

Page 39, line 26, delete "do" and insert "does"

Page 40, line 14, delete the second "or"

Page 50, line 10, delete "and loan"

Page 52, line 25, after "sale" insert "or loan"

Page 56, after line 18, insert:

"Sec. 68. [RELATIONSHIP TO OTHER LEGISLATION; REVISOR INSTRUCTION.]

(a) This act is interrelated with 1995 House File 1184 and its companion bill 1995 Senate File 1134, which may or may not be enacted at the time of enactment of this act and which may or may not be subsequently enacted in the 1995 legislative session.

(b) References in this act to "section 47.59" or "section 47.60" are to the sections of House File 1184 and Senate File 1134 that contain those proposed statutory codings. If that section 47.59 is not enacted in the 1995 legislative session, references in this act to that section shall be interpreted as referring to Minnesota Statutes 1994, section 51A.385, which is the current statutory section most similar to, and which is the principal source of, the proposed new section 47.59. If the section 47.60 referred to earlier in this paragraph is not enacted in the 1995 legislative session, references in this act to that section are null and void and of no effect.

(c) References in this act to "section 51A.385" are intended to refer to that section of Minnesota Statutes 1994, as amended by any other acts enacted in the 1995 legislative session. The related legislation referenced in paragraph (a) would repeal section 51A.385. If that related legislation is enacted and it repeals section 51A.385, the intent of the references in this act to that section is as stated in this paragraph.

(d) The revisor of statutes shall, in preparing the 1995 Supplement to Minnesota Statutes, change the cross references made in this act to the extent necessary to achieve the intentions stated in this section."

Page 56, line 21, delete "47.67;"

Renumber the sections in sequence and correct internal references

Amend the title accordingly

The motion prevailed and the amendment was adopted.


JOURNAL OF THE HOUSE - 52nd Day - Top of Page 3627

H. F. No. 1573, A bill for an act relating to financial institutions; regulating savings banks; modifying and clarifying statutory provisions relating to the structure and functions of savings banks; making technical changes; amending Minnesota Statutes 1994, sections 9.031, subdivision 8; 46.047, subdivision 2; 47.01, subdivisions 2 and 3; 47.015, subdivision 1; 47.02; 47.10, subdivision 1; 47.12; 47.20, subdivisions 1 and 9; 47.201, subdivision 1; 47.205, subdivision 1; 47.209, subdivision 1; 47.27, subdivision 2; 47.28; 47.29, subdivisions 1 and 2; 47.30, subdivisions 1, 2, 3, and 5; 47.32; 47.62, subdivision 4; 47.64, subdivision 1; 47.65, subdivisions 1 and 2; 48.01, subdivision 2; 48.15, by adding a subdivision; 49.01, by adding a subdivision; 49.42; 50.01; 50.04; 50.05; 50.06; 50.11; 50.13; 50.14, subdivisions 1, 5, 7, and 8; 50.145; 50.146; 50.1465; 50.148; 50.155; 50.17; 50.175, subdivision 1; 50.19; 50.21; 50.22; 50.23; 50.245; 50.25; 51A.02, subdivisions 6, 26, and 40; 51A.21, by adding a subdivision; 61A.09, subdivision 3; 62B.04, subdivisions 1 and 2; and 300.20; proposing coding for new law in Minnesota Statutes, chapters 46; 47; and 50; repealing Minnesota Statutes 1994, sections 47.095; 47.30, subdivisions 4 and 6; 48.67; 50.02; 50.07; 50.08; 50.09; 50.10; 50.12; 50.15; 50.16; 50.21; and 50.22.

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 131 yeas and 0 nays as follows:

Those who voted in the affirmative were:

Abrams       Garcia       Krinkie      Opatz        Stanek
Anderson, B. Girard       Larsen       Orenstein    Sviggum
Bakk         Greenfield   Leighton     Orfield      Swenson, D.
Bertram      Greiling     Leppik       Osskopp      Swenson, H.
Bettermann   Haas         Lieder       Osthoff      Sykora
Boudreau     Hackbarth    Lindner      Ostrom       Tomassoni
Bradley      Harder       Long         Otremba      Tompkins
Broecker     Hasskamp     Lourey       Ozment       Trimble
Brown        Hausman      Luther       Paulsen      Tuma
Carlson      Holsten      Lynch        Pawlenty     Tunheim
Carruthers   Hugoson      Macklin      Pellow       Van Dellen
Clark        Huntley      Mahon        Pelowski     Van Engen
Commers      Jaros        Mares        Perlt        Vickerman
Cooper       Jefferson    Mariani      Peterson     Wagenius
Daggett      Jennings     Marko        Pugh         Warkentin
Dauner       Johnson, A.  McCollum     Rest         Weaver
Davids       Johnson, R.  McElroy      Rhodes       Wejcman
Dawkins      Johnson, V.  McGuire      Rice         Wenzel
Dehler       Kahn         Milbert      Rostberg     Winter
Delmont      Kalis        Molnau       Rukavina     Wolf
Dempsey      Kelley       Mulder       Sarna        Worke
Dorn         Kelso        Munger       Schumacher   Workman
Entenza      Kinkel       Murphy       Seagren      Sp.Anderson,I
Erhardt      Knight       Ness         Simoneau     
Farrell      Knoblach     Olson, E.    Skoglund     
Finseth      Koppendrayer Olson, M.    Smith        
Frerichs     Kraus        Onnen        Solberg      
The bill was passed, as amended, and its title agreed to.

Jennings was excused for the remainder of today's session.

REPORT FROM THE COMMITTEE ON RULES AND

LEGISLATIVE ADMINISTRATION

Carruthers, from the Committee on Rules and Legislative Administration, pursuant to rule 1.09, designated the following bills as Special Orders to be acted upon immediately preceding General Orders for today:

H. F. No. 1742; S. F. Nos. 992, 1402 and 243; H. F. No. 1479; and S. F. Nos. 1404 and 1199.

SPECIAL ORDERS, Continued

Ostrom was excused while in conference.

H. F. No. 1742, A bill for an act relating to health; insurance; providing for certain breast cancer coverage; proposing coding for new law in Minnesota Statutes, chapter 62A.


JOURNAL OF THE HOUSE - 52nd Day - Top of Page 3628

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

The question was taken on the passage of the bill and the roll was called. There were 120 yeas and 8 nays as follows:

Those who voted in the affirmative were:

Abrams       Garcia       Larsen       Orfield      Swenson, D.
Anderson, B. Girard       Leighton     Osskopp      Swenson, H.
Bakk         Greenfield   Leppik       Osthoff      Sykora
Bertram      Greiling     Lieder       Otremba      Tomassoni
Bettermann   Haas         Long         Ozment       Tompkins
Boudreau     Hackbarth    Lourey       Paulsen      Trimble
Broecker     Harder       Luther       Pawlenty     Tuma
Brown        Hasskamp     Lynch        Pellow       Tunheim
Carlson      Hausman      Macklin      Pelowski     Van Dellen
Carruthers   Holsten      Mahon        Perlt        Vickerman
Clark        Hugoson      Mares        Peterson     Wagenius
Commers      Huntley      Mariani      Pugh         Warkentin
Cooper       Jaros        Marko        Rest         Weaver
Daggett      Jefferson    McCollum     Rhodes       Wejcman
Dauner       Johnson, A.  McElroy      Rice         Wenzel
Davids       Johnson, R.  McGuire      Rostberg     Winter
Dawkins      Johnson, V.  Molnau       Rukavina     Wolf
Dehler       Kahn         Munger       Sarna        Worke
Delmont      Kalis        Murphy       Schumacher   Workman
Dempsey      Kelley       Ness         Seagren      Sp.Anderson,I
Dorn         Kelso        Olson, E.    Simoneau     
Entenza      Kinkel       Olson, M.    Skoglund     
Erhardt      Knoblach     Onnen        Smith        
Farrell      Koppendrayer Opatz        Solberg      
Finseth      Krinkie      Orenstein    Stanek       
Those who voted in the negative were:

Bradley      Knight       Lindner      Sviggum      
Frerichs     Kraus        Mulder       Van Engen    
The bill was passed and its title agreed to.

S. F. No. 992 was reported to the House.

Lourey moved to amend S. F. No. 992 as follows:

Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 1994, section 326.41, is amended to read:

326.41 [ADVISORY COUNCIL.]

The state commissioner of health shall appoint seven nine persons to the advisory council on plumbing code and examinations, one two of whom shall be a practical master plumber, one a practical journeyman plumber, and one a representative of the commissioner plumbers, one who represents the area outside of the metropolitan area and one who represents the metropolitan area, and two of whom shall be journeyman plumbers, one who represents the area outside of the metropolitan area and one who represents the metropolitan area. The council shall expire and the terms, compensation and removal of members of the council shall be as provided in section 15.059, except that the council shall not expire before June 30, 1995.

Sec. 2. [PLUMBING WORK GROUP.]

The commissioner of health shall establish a work group to study and report to the commissioner by January 1, 1996, recommendations for proposed statutory revisions to Minnesota Statutes, chapter 326, that will ensure public health protection through regulation of plumbing and water conditioning installations. The work group shall consist of representatives of plumbers, water conditioners, local and state units of government, and affected statewide trades and organizations.


JOURNAL OF THE HOUSE - 52nd Day - Top of Page 3629

Sec. 3. [REINSTATEMENT OF ADVISORY COUNCILS.]

Notwithstanding Laws 1993, chapters 286, section 1, and 337, section 1, the maternal and child health advisory task force established in Minnesota Statutes, section 145.881, and the state community health advisory committee established in section 145A.10, subdivision 10, are reinstated.

Sec. 4. [EFFECTIVE DATE.]

Section 3 is effective on the day following final enactment."

Delete the title and insert:

"A bill for an act relating to health; reinstating certain advisory councils and a task force; establishing a work group; amending Minnesota Statutes 1994, section 326.41."

The motion prevailed and the amendment was adopted.

S. F. No. 992, A bill for an act relating to health; reinstating certain advisory councils and a task force; amending Minnesota Statutes 1994, section 326.41.

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 103 yeas and 22 nays as follows:

Those who voted in the affirmative were:

Abrams       Garcia       Kraus        Olson, E.    Skoglund
Bakk         Greenfield   Larsen       Onnen        Smith
Bertram      Greiling     Leighton     Opatz        Solberg
Bettermann   Hackbarth    Leppik       Orenstein    Stanek
Bradley      Harder       Lieder       Orfield      Swenson, D.
Brown        Hasskamp     Long         Osthoff      Swenson, H.
Carlson      Hausman      Lourey       Otremba      Sykora
Carruthers   Holsten      Luther       Ozment       Tomassoni
Clark        Hugoson      Lynch        Pawlenty     Trimble
Commers      Huntley      Macklin      Pelowski     Tunheim
Cooper       Jaros        Mahon        Perlt        Van Dellen
Daggett      Jefferson    Mares        Peterson     Vickerman
Dauner       Johnson, A.  Mariani      Pugh         Wagenius
Davids       Johnson, R.  Marko        Rhodes       Warkentin
Dehler       Johnson, V.  McCollum     Rice         Wejcman
Delmont      Kahn         McElroy      Rostberg     Wenzel
Dorn         Kalis        McGuire      Rukavina     Winter
Entenza      Kelley       Milbert      Sarna        Wolf
Erhardt      Kelso        Munger       Schumacher   Sp.Anderson,I
Farrell      Kinkel       Murphy       Seagren      
Frerichs     Knoblach     Ness         Simoneau     
Those who voted in the negative were:

Anderson, B. Girard       Lindner      Paulsen      Worke
Boudreau     Haas         Molnau       Pellow       Workman 
Broecker     Knight       Mulder       Sviggum      
Dempsey      Koppendrayer Olson, M.    Tuma         
Finseth      Krinkie      Osskopp      Van Engen    
The bill was passed, as amended, and its title agreed to.


JOURNAL OF THE HOUSE - 52nd Day - Top of Page 3630

CONSIDERATION UNDER RULE 1.10

Pursuant to rule 1.10, Solberg requested immediate consideration of H. F. No. 1077.

H. F. No. 1077 was reported to the House.

CALL OF THE HOUSE

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

Abrams       Finseth      Koppendrayer Olson, M.    Solberg
Anderson, B. Frerichs     Kraus        Onnen        Stanek
Bakk         Garcia       Krinkie      Opatz        Sviggum
Bertram      Girard       Larsen       Orenstein    Swenson, D.
Bettermann   Goodno       Leighton     Orfield      Swenson, H.
Bishop       Greenfield   Leppik       Osskopp      Sykora
Boudreau     Greiling     Lieder       Osthoff      Tomassoni
Bradley      Haas         Lindner      Ostrom       Tompkins
Broecker     Harder       Long         Otremba      Trimble
Brown        Hasskamp     Lourey       Ozment       Tuma
Carlson      Hausman      Luther       Paulsen      Tunheim
Carruthers   Holsten      Lynch        Pellow       Van Dellen
Clark        Hugoson      Macklin      Pelowski     Van Engen
Commers      Huntley      Mahon        Perlt        Vickerman
Cooper       Jaros        Mares        Peterson     Wagenius
Daggett      Jefferson    Mariani      Pugh         Warkentin
Dauner       Johnson, A.  Marko        Rest         Weaver
Davids       Johnson, R.  McCollum     Rhodes       Wejcman
Dawkins      Johnson, V.  McElroy      Rice         Wenzel
Dehler       Kahn         McGuire      Rostberg     Winter
Delmont      Kalis        Milbert      Rukavina     Wolf
Dempsey      Kelley       Molnau       Sarna        Worke
Dorn         Kelso        Mulder       Schumacher   Workman
Entenza      Kinkel       Munger       Seagren      Sp.Anderson,I
Erhardt      Knight       Ness         Simoneau     
Farrell      Knoblach     Olson, E.    Skoglund     
Carruthers moved that further proceedings of the roll call be suspended and that the Sergeant at Arms be instructed to bring in the absentees. The motion prevailed and it was so ordered.

Cooper moved to amend H. F. No. 1077, the fifth engrossment, as follows:

Page 33, after line 1, insert:

"Sec. 21. Minnesota Statutes 1994, section 62Q.075, subdivision 4, is amended to read:

Subd. 4. [REVIEW.] Upon receipt of the plan, the appropriate commissioner shall provide a copy to the regional coordinating boards, local community health boards, and other relevant community organizations within the managed care organization's service area. After reviewing the plan, these community groups may submit written comments on the plan to either the commissioner of health or commerce, as applicable, and may advise the commissioner of the managed care organization's effectiveness in assisting to achieve regional public health goals. The plan may be reviewed by the county boards, or city councils acting as a local board of health in accordance with chapter 145A, within the managed care organization's service area to determine whether the plan is consistent with the goals and objectives of the plans required under chapters 145A and 256E and whether the plan meets the needs of the community. The county board, or applicable city council, may also review and make recommendations on the availability and accessibility of services provided by the managed care organization. The county board, or applicable city council, may submit written comments to the appropriate commissioner, and may advise the commissioner of the managed care organization's effectiveness in assisting to meet the needs and goals as defined under the responsibilities of chapters 145A and 256E. The commissioner of health shall develop recommendations to utilize the written comments submitted as part of the licensure process to ensure local public accountability. These recommendations shall be reported to the legislative commission on health care access by January 15, 1996. Copies of these written comments must be provided to the managed care organization. The plan and any comments submitted must be filed with the information clearinghouse to be distributed to the public."


JOURNAL OF THE HOUSE - 52nd Day - Top of Page 3631

Page 47, after line 31, insert:

"Sec. 32. Minnesota Statutes 1994, section 62Q.32, is amended to read:

62Q.32 [LOCAL OMBUDSPERSON.]

County board or community health service agencies may establish an office of ombudsperson to provide a system of consumer advocacy for persons receiving health care services through a health plan company. The ombudsperson's functions may include, but are not limited to:

(a) mediation or advocacy on behalf of a person accessing the complaint and appeal procedures to ensure that necessary medical services are provided by the health plan company; and

(b) investigation of the quality of services provided to a person and determine the extent to which quality assurance mechanisms are needed or any other system change may be needed. The commissioner of health shall make recommendations for funding these functions including the amount of funding needed and a plan for distribution. The commissioner shall submit these recommendations to the legislative commission on health care access by January 15, 1996.

Sec. 33. Minnesota Statutes 1994, section 62Q.33, subdivision 4, is amended to read:

Subd. 4. [CAPACITY BUILDING, ACCOUNTABILITY AND FUNDING.] The recommendations required by subdivision 2 shall include:

(1) a definition of minimum outcomes for implementing core public health functions, including a local ombudsperson under the assurance of services function;

(2) the identification of counties and applicable cities with public health programs that need additional assistance to meet the minimum outcomes;

(3) a budget for supporting all functions needed to achieve the minimum outcomes, including the local ombudsperson assurance of services function;

(4) an analysis of the costs and benefits expected from achieving the minimum outcomes;

(5) strategies for improving local government public health functions throughout the state to meet the minimum outcomes including: (i) funding distribution for local government public health functions necessary to meet the minimum outcomes; and (ii) strategies for the financing of personal health care services within the uniform benefits set through the health plan companies and identifying appropriate mechanisms for the delivery of these services; and

(6) a recommended level of dedicated funding for local government public health functions in terms of a percentage of total health service expenditures by the state or in terms of a per capita basis, including methods of allocating the dedicated funds to local government. Funding recommendations must be broad-based and must consider all financial resources.

Sec. 34. Minnesota Statutes 1994, section 62Q.33, subdivision 5, is amended to read:

Subd. 5. [TIMELINE.] (a) By October 1, 1994, the commissioner shall submit to the legislative commission on health care access the initial report and recommendations required by subdivisions 2 to 4.

(b) By February January 15, 1995 1996, the commissioner, in cooperation with the legislative commission on health care access, shall submit a final report to the legislature, with specific recommendations for capacity building and financing to be implemented over the period from January 1, 1996, through December 31, 1997.

(c) By January 1 15, 1997, and by January 1 15 of each odd-numbered year thereafter, the commissioner shall present to the legislature an updated report and recommendations."

Page 49, after line 8, insert:

"Sec. 34. [62Q.47] [MENTAL HEALTH AND CHEMICAL DEPENDENCY SERVICES.]

(a) All health plans, as defined in section 62Q.01, that provide coverage for mental health or chemical dependency services, must comply with the requirements of this section.


JOURNAL OF THE HOUSE - 52nd Day - Top of Page 3632

(b) Cost-sharing requirements and benefit or service limitations for outpatient mental health and outpatient chemical dependency services, except for persons placed in chemical dependency services under Minnesota Rules, parts 9530.6600 to 9530.6660, must not place a greater financial burden on the insured or enrollee, or be more restrictive than those requirements and limitations for outpatient medical services.

(c) Cost-sharing requirements and benefit or service limitations for inpatient hospital mental health and inpatient hospital and residential chemical dependency services, except for persons placed in chemical dependency services under Minnesota Rules, parts 9530.6600 to 9530.6660, must not place a greater financial burden on the insured or enrollee, or be more restrictive than those requirements and limitations for inpatient hospital medical services."

Page 51, after line 8, insert:

"Sec. 39. [EFFECTIVE DATE; MENTAL HEALTH AND CHEMICAL DEPENDENCY COVERAGE.]

Section 34 is effective August 1, 1995, and applies to health plans offered, issued, or renewed on or after that date."

Page 174, line 36, after "provide" insert "information about" and delete "counseling,"

Page 175, line 1, delete "information,"

Page 175, line 15, delete "and"

Page 175, line 17, before the period, insert "; and

(4) provide information supplied by the health plan companies to individuals obtaining health care services within the geographic area served by the regional coordinating board regarding each company's expenditure and activity dedicated directly to community-based prevention and health promotion. The information supplied by the health plan company shall include a description of the community-based prevention and health promotion projects conducted or to be conducted in the geographic area served by the regional coordinating board"

Page 215, line 22, delete "and are added to or subtracted from the appropriations"

Page 215, line 23, delete ", in"

Page 215, line 24, delete everything before the period

Renumber the sections in sequence and correct internal references

Amend the title accordingly

The motion prevailed and the amendment was adopted.

Cooper moved to amend H. F. No. 1077, the fifth engrossment, as amended, as follows:

Pages 181 and 182, delete section 6 of article 9

Renumber the sections in sequence and correct internal references

Amend the title accordingly

The motion prevailed and the amendment was adopted.

Hasskamp and Cooper moved to amend H. F. No. 1077, the fifth engrossment, as amended, as follows:

Page 143, line 25, before "When" insert "(c)"


JOURNAL OF THE HOUSE - 52nd Day - Top of Page 3633

Page 143, line 26, delete "this" and after "paragraph" insert "(b)"

Page 143, line 29, after the period, insert "This paragraph does not apply if the entity that issues the explanation of benefits or similar document has a provider agreement with the provider."

Page 143, line 30, delete "(c)" and insert "(d)"

The motion prevailed and the amendment was adopted.

Rest, Simoneau and Cooper moved to amend H. F. No. 1077, the fifth engrossment, as amended, as follows:

Page 184, after line 31, insert:

"(c) The wholesale drug distributor tax does not apply to gross revenues of a wholesale drug distributor received from:

(1) an Indian tribe;

(2) an agency or instrumentality of the United States government or other similar entity from which the wholesale drug distributor may not collect the tax under federal law; or

(3) a private entity from which under federal law the wholesale drug distributor may not collect the tax."

Page 191, line 20, after "7," insert "paragraphs (a) and (b),"

Page 191, after line 24, insert:

"Section 7, paragraph (c), is effective July 1, 1996."

A roll call was requested and properly seconded.

The question was taken on the Rest et al amendment and the roll was called. There were 40 yeas and 92 nays as follows:

Those who voted in the affirmative were:

Bakk         Goodno       Leighton     Osthoff      Trimble
Bishop       Greiling     Lieder       Ozment       Van Engen
Brown        Hausman      Luther       Pugh         Wenzel
Cooper       Huntley      Mariani      Rest         Sp.Anderson,I
Davids       Jaros        McCollum     Rhodes       
Dawkins      Johnson, R.  McGuire      Rice         
Dempsey      Kalis        Milbert      Sarna        
Dorn         Kelley       Munger       Simoneau     
Farrell      Kinkel       Olson, E.    Solberg      
Those who voted in the negative were:

Abrams       Garcia       Larsen       Orfield      Swenson, H.

JOURNAL OF THE HOUSE - 52nd Day - Top of Page 3634
Anderson, B. Girard Leppik Osskopp Sykora Bertram Greenfield Lindner Ostrom Tomassoni Bettermann Haas Long Otremba Tompkins Boudreau Hackbarth Lourey Paulsen Tuma Bradley Harder Lynch Pawlenty Tunheim Broecker Hasskamp Macklin Pellow Van Dellen Carlson Holsten Mahon Pelowski Vickerman Carruthers Hugoson Mares Perlt Wagenius Clark Jefferson Marko Peterson Warkentin Commers Johnson, A. McElroy Rostberg Weaver Daggett Johnson, V. Molnau Rukavina Wejcman Dauner Kahn Mulder Schumacher Winter Dehler Kelso Murphy Seagren Wolf Delmont Knight Ness Skoglund Worke Entenza Knoblach Olson, M. Smith Workman Erhardt Koppendrayer Onnen Stanek Finseth Kraus Opatz Sviggum Frerichs Krinkie Orenstein Swenson, D.
The motion did not prevail and the amendment was not adopted.

Greenfield moved to amend H. F. No. 1077, the fifth engrossment, as amended, as follows:

Page 144, after line 3, insert:

"Sec. 30. Laws 1994, chapter 625, article 5, section 5, subdivision 1, is amended to read:

Subdivision 1. [PROPOSED LEGISLATION.] The commissioners of health and commerce, in consultation with the Minnesota health care commission and the legislative commission on health care access, shall draft proposed legislation to recodify, simplify, and standardize all statutes, rules, regulatory requirements, and procedures relating to health plan companies. The recodification and regulatory reform must become effective simultaneously with the full implementation of the integrated service network system and the regulated all-payer option on July 1, 1997. The commissioners of health and commerce shall submit to the legislature by January 1, 1996 1997, a report on the recodification and regulatory reform with proposed legislation."

Renumber the sections in sequence and correct internal references

Amend the title accordingly

The motion prevailed and the amendment was adopted.

Lourey moved to amend H. F. No. 1077, the fifth engrossment, as amended, as follows:

Page 117, after line 19, insert:

"Sec. 14. Minnesota Statutes 1994, section 256B.0625, subdivision 13, is amended to read:

Subd. 13. [DRUGS.] (a) Medical assistance covers drugs if prescribed by a licensed practitioner and dispensed by a licensed pharmacist, or by a physician enrolled in the medical assistance program as a dispensing physician. The commissioner, after receiving recommendations from professional medical associations and professional pharmacist associations, shall designate a formulary committee to advise the commissioner on the names of drugs for which payment is made, recommend a system for reimbursing providers on a set fee or charge basis rather than the present system, and develop methods encouraging use of generic drugs when they are less expensive and equally effective as trademark drugs. The formulary committee shall consist of nine members, four of whom shall be physicians who are not employed by the department of human services, and a majority of whose practice is for persons paying privately or through health insurance, three of whom shall be pharmacists who are not employed by the department of human services, and a majority of whose practice is for persons paying privately or through health insurance, a consumer representative, and a nursing home representative. Committee members shall serve three-year terms and shall serve without compensation. Members may be reappointed once.

(b) The commissioner shall establish a drug formulary. Its establishment and publication shall not be subject to the requirements of the administrative procedure act, but the formulary committee shall review and comment on the formulary contents. The formulary committee shall review and recommend drugs which require prior authorization. The formulary committee may recommend drugs for prior authorization directly to the commissioner, as long as opportunity for public input is provided. Prior authorization may be requested by the commissioner based on medical and clinical criteria before certain drugs are eligible for payment. Before a drug may be considered for prior authorization at the request of the commissioner:

(1) the drug formulary committee must develop criteria to be used for identifying drugs; the development of these criteria is not subject to the requirements of chapter 14, but the formulary committee shall provide opportunity for public input in developing criteria;


JOURNAL OF THE HOUSE - 52nd Day - Top of Page 3635

(2) the drug formulary committee must hold a public forum and receive public comment for an additional 15 days; and

(3) the commissioner must provide information to the formulary committee on the impact that placing the drug on prior authorization will have on the quality of patient care and information regarding whether the drug is subject to clinical abuse or misuse. Prior authorization may be required by the commissioner before certain formulary drugs are eligible for payment. The formulary shall not include:

(i) drugs or products for which there is no federal funding;

(ii) over-the-counter drugs, except for antacids, acetaminophen, family planning products, aspirin, insulin, products for the treatment of lice, vitamins for adults with documented vitamin deficiencies, and vitamins for children under the age of seven and pregnant or nursing women;

(iii) any other over-the-counter drug identified by the commissioner, in consultation with the drug formulary committee, as necessary, appropriate, and cost-effective for the treatment of certain specified chronic diseases, conditions or disorders, and this determination shall not be subject to the requirements of chapter 14;

(iv) anorectics; and

(v) drugs for which medical value has not been established.

The commissioner shall publish conditions for prohibiting payment for specific drugs after considering the formulary committee's recommendations.

(c) The basis for determining the amount of payment shall be the lower of the actual acquisition costs of the drugs plus a fixed dispensing fee established by the commissioner, the maximum allowable cost set by the federal government or by the commissioner plus the fixed dispensing fee or the usual and customary price charged to the public. Actual acquisition cost includes quantity and other special discounts except time and cash discounts. The actual acquisition cost of a drug shall be estimated by the commissioner, at average wholesale price minus 7.6 percent effective January 1, 1994. Beginning July 1, 1995, for purposes of reimbursement under the MinnesotaCare program, the actual acquisition cost of a drug shall be estimated by the commissioner at average wholesale price minus 7.6 percent. The maximum allowable cost of a multisource drug may be set by the commissioner and it shall be comparable to, but no higher than, the maximum amount paid by other third-party payors in this state who have maximum allowable cost programs. Establishment of the amount of payment for drugs shall not be subject to the requirements of the administrative procedure act. An additional dispensing fee of $.30 may be added to the dispensing fee paid to pharmacists for legend drug prescriptions dispensed to residents of long-term care facilities when a unit dose blister card system, approved by the department, is used. Under this type of dispensing system, the pharmacist must dispense a 30-day supply of drug. The National Drug Code (NDC) from the drug container used to fill the blister card must be identified on the claim to the department. The unit dose blister card containing the drug must meet the packaging standards set forth in Minnesota Rules, part 6800.2700, that govern the return of unused drugs to the pharmacy for reuse. The pharmacy provider will be required to credit the department for the actual acquisition cost of all unused drugs that are eligible for reuse. Over-the-counter medications must be dispensed in the manufacturer's unopened package. The commissioner may permit the drug clozapine to be dispensed in a quantity that is less than a 30-day supply. Whenever a generically equivalent product is available, payment shall be on the basis of the actual acquisition cost of the generic drug, unless the prescriber specifically indicates "dispense as written - brand necessary" on the prescription as required by section 151.21, subdivision 2. Implementation of any change in the fixed dispensing fee that has not been subject to the administrative procedure act is limited to not more than 180 days, unless, during that time, the commissioner initiates rulemaking through the administrative procedure act.

(d) Until the date the on-line, real-time Medicaid Management Information System (MMIS) upgrade is successfully implemented, as determined by the commissioner of administration, a pharmacy provider may require individuals who seek to become eligible for medical assistance under a one-month spenddown, as provided in section 256B.056, subdivision 5, to pay for services to the extent of the spenddown amount at the time the services are provided. A pharmacy provider choosing this option shall file a medical assistance claim for the pharmacy services provided. If medical assistance reimbursement is received for this claim, the pharmacy provider shall return to the individual the total amount paid by the individual for the pharmacy services reimbursed by the medical assistance program. If the claim is not eligible for medical assistance reimbursement because of the provider's failure to comply with the provisions of the medical assistance program, the pharmacy provider shall refund to the individual the total amount


JOURNAL OF THE HOUSE - 52nd Day - Top of Page 3636

paid by the individual. Pharmacy providers may choose this option only if they apply similar credit restrictions to private pay or privately insured individuals. A pharmacy provider choosing this option must inform individuals who seek to become eligible for medical assistance under a one-month spenddown of (1) their right to appeal the denial of services on the grounds that they have satisfied the spenddown requirement, and (2) their potential eligibility for the MinnesotaCare program or the children's health plan."

Renumber the sections in sequence and correct internal references

Amend the title accordingly

The motion prevailed and the amendment was adopted.

Otremba, Onnen, Wenzel, Winter, Osskopp, Sviggum, Boudreau, Koppendrayer, Kalis, Knight, Davids, Daggett, Hasskamp and Kraus moved to amend H. F. No. 1077, the fifth engrossment, as amended, as follows:

Page 39, line 25, before "The" insert "(a)"

Page 40, after line 7, insert:

"(b) "Appropriate and necessary care" does not include elective abortions. For purposes of this section, an "abortion" means the use or prescription of any instrument, medicine, drug, or any other substance or device intentionally to terminate the pregnancy of a woman known to be pregnant with an intention other than to increase the probability of a live birth, to preserve the life or health of the child after live birth, or to remove a dead unborn child. For purposes of this section, an "elective abortion" means an abortion other than where, in the professional judgment of the attending physician, which is a medical judgment that would be made by a reasonably prudent physician, knowledgeable about the case and the treatment possibilities with respect to the medical conditions involved, the life of the female would be endangered or substantial and irreversible impairment of a major bodily function would result if the fetus were carried to term; where the pregnancy is the result of conduct which would constitute criminal sexual conduct in the first, second or third degree committed with force or violence, and the incident is reported within 48 hours after the victim becomes physically able to report the rape; or where the pregnancy is the result of incest and the incident and relative are reported to a valid law enforcement agency prior to the abortion. Neither section 62N.17 nor any other provision of this act may be construed to require coverage for elective abortions. This paragraph is inseverable from this section and from sections 62Q.231, 62Q.24, and 62Q.25; if any sentence, phrase, or word of this paragraph is determined by a final nonappealable order or judgment of a court of competent jurisdiction to be unconstitutional under the state or federal constitution or in conflict with federal law, all remaining portions of this section and of sections 62Q.231, 62Q.24, and 62Q.25 are void and are repealed. If any sentence, phrase, or word of this paragraph has been determined by a court of competent jurisdiction to be unconstitutional under the state or federal constitution or in conflict with federal law, and that determination is under appeal to another court or the time allowed for appeal has not expired, all remaining portions of this section and of sections 62Q.231, 62Q.24, and 62Q.25 are not enforceable during any period of time in which any sentence, phrase, or word of this paragraph is not enforceable. With respect to section 62Q.25, the inseverability applies to the amendments made to that section in this act and to that section as it exists in Minnesota Statutes 1994."

Page 40, line 16, after the period, insert "The standard health coverage does not include elective abortions, as defined in subdivision 2."

Page 47, delete section 31

Renumber the sections in sequence and correct internal references

Amend the title accordingly

Wagenius, McCollum, Clark, Lourey, Leppik, Wejcman, Hausman, Rukavina, Long, Luther, Garcia, Bakk, Greenfield, Kelley, Greiling, Kahn, Abrams, Marko, Bishop and Johnson, A., moved to amend the Otremba et al amendment to H. F. No. 1077, the fifth engrossment, as amended, as follows:

Page 1, line 22, delete everything after the comma


JOURNAL OF THE HOUSE - 52nd Day - Top of Page 3637

Page 1, delete line 23

Page 1, line 24, delete everything before "or"

A roll call was requested and properly seconded.

The question was taken on the amendment to the amendment and the roll was called. There were 55 yeas and 77 nays as follows:

Those who voted in the affirmative were:

Abrams       Erhardt      Johnson, A.  Marko        Rest
Bakk         Farrell      Kahn         McCollum     Rhodes
Bishop       Frerichs     Kelley       McElroy      Rukavina
Brown        Garcia       Leighton     McGuire      Simoneau
Carlson      Greenfield   Leppik       Munger       Skoglund
Carruthers   Greiling     Lieder       Orenstein    Solberg
Clark        Hausman      Long         Orfield      Tomassoni
Dawkins      Holsten      Lourey       Osthoff      Trimble
Delmont      Huntley      Luther       Ostrom       Wagenius
Dorn         Jaros        Mahon        Perlt        Weaver
Entenza      Jefferson    Mariani      Pugh         Wejcman 
Those who voted in the negative were:

Anderson, B. Haas         Lindner      Paulsen      Tompkins
Bertram      Hackbarth    Lynch        Pawlenty     Tuma
Bettermann   Harder       Macklin      Pellow       Tunheim
Boudreau     Hasskamp     Mares        Pelowski     Van Dellen
Bradley      Hugoson      Milbert      Peterson     Van Engen
Broecker     Johnson, R.  Molnau       Rice         Vickerman
Commers      Johnson, V.  Mulder       Rostberg     Warkentin
Cooper       Kalis        Murphy       Sarna        Wenzel
Daggett      Kelso        Ness         Schumacher   Winter
Dauner       Kinkel       Olson, E.    Seagren      Wolf
Davids       Knight       Olson, M.    Smith        Worke
Dehler       Knoblach     Onnen        Stanek       Workman
Dempsey      Koppendrayer Opatz        Sviggum      Sp.Anderson,I
Finseth      Kraus        Osskopp      Swenson, D.  
Girard       Krinkie      Otremba      Swenson, H.  
Goodno       Larsen       Ozment       Sykora       
The motion did not prevail and the amendment to the amendment was not adopted.

Orenstein moved to amend the Otremba et al amendment to H. F. No. 1077, the fifth engrossment, as amended, as follows:

Page 2, line 4, delete everything after the period

Page 2, delete lines 5 to 22

A roll call was requested and properly seconded.

The question was taken on the amendment to the amendment and the roll was called. There were 48 yeas and 84 nays as follows:

Those who voted in the affirmative were:

Abrams       Erhardt      Kahn         McCollum     Rukavina
Bakk         Farrell      Kelley       McGuire      Simoneau
Bishop       Garcia       Leighton     Munger       Skoglund
Carlson      Greenfield   Leppik       Orenstein    Solberg
Carruthers   Greiling     Long         Orfield      Tomassoni
Clark        Hausman      Lourey       Osthoff      Trimble
Dawkins      Huntley      Luther       Ostrom       Wagenius
Delmont      Jaros        Mahon        Perlt        Wejcman

JOURNAL OF THE HOUSE - 52nd Day - Top of Page 3638
Dorn Jefferson Mariani Rest Entenza Johnson, A. Marko Rhodes
Those who voted in the negative were:

Anderson, B. Goodno       Larsen       Otremba      Swenson, H.
Bertram      Haas         Lieder       Ozment       Sykora
Bettermann   Hackbarth    Lindner      Paulsen      Tompkins
Boudreau     Harder       Lynch        Pawlenty     Tuma
Bradley      Hasskamp     Macklin      Pellow       Tunheim
Broecker     Holsten      Mares        Pelowski     Van Dellen
Brown        Hugoson      McElroy      Peterson     Van Engen
Commers      Johnson, R.  Milbert      Pugh         Vickerman
Cooper       Johnson, V.  Molnau       Rice         Warkentin
Daggett      Kalis        Mulder       Rostberg     Weaver
Dauner       Kelso        Murphy       Sarna        Wenzel
Davids       Kinkel       Ness         Schumacher   Winter
Dehler       Knight       Olson, E.    Seagren      Wolf
Dempsey      Knoblach     Olson, M.    Smith        Worke
Finseth      Koppendrayer Onnen        Stanek       Workman
Frerichs     Kraus        Opatz        Sviggum      Sp.Anderson,I
Girard       Krinkie      Osskopp      Swenson, D.  
The motion did not prevail and the amendment to the amendment was not adopted.

Clark moved to amend the Otremba et al amendment to H. F. No. 1077, the fifth engrossment, as amended, as follows:

Page 1, line 23, after "becomes" insert "emotionally or"

A roll call was requested and properly seconded.

The question was taken on the amendment to the amendment and the roll was called.

Carruthers moved that those not voting be excused from voting. The motion prevailed.

There were 63 yeas and 68 nays as follows:

Those who voted in the affirmative were:

Abrams       Farrell      Johnson, R.  Marko        Rest
Bakk         Frerichs     Kahn         McCollum     Rhodes
Bishop       Garcia       Kelley       McElroy      Rukavina
Bradley      Greenfield   Krinkie      McGuire      Simoneau
Brown        Greiling     Larsen       Milbert      Skoglund
Carlson      Harder       Leighton     Munger       Solberg
Carruthers   Hasskamp     Leppik       Olson, E.    Tomassoni
Clark        Hausman      Lieder       Orenstein    Trimble
Dawkins      Holsten      Long         Orfield      Wagenius
Delmont      Huntley      Lourey       Osthoff      Weaver
Dorn         Jaros        Luther       Ostrom       Wejcman 
Entenza      Jefferson    Mahon        Perlt        
Erhardt      Johnson, A.  Mariani      Pugh         
Those who voted in the negative were:

Anderson, B. Goodno       Mares        Pelowski     Tuma
Bertram      Haas         Molnau       Peterson     Tunheim
Bettermann   Hackbarth    Mulder       Rice         Van Dellen
Boudreau     Hugoson      Murphy       Rostberg     Van Engen
Broecker     Johnson, V.  Ness         Sarna        Vickerman
Commers      Kalis        Olson, M.    Schumacher   Warkentin
Cooper       Kelso        Onnen        Seagren      Wenzel
Daggett      Knight       Opatz        Smith        Winter
Dauner       Knoblach     Osskopp      Stanek       Wolf
Davids       Koppendrayer Otremba      Sviggum      Worke
Dehler       Kraus        Ozment       Swenson, D.  Workman
Dempsey      Lindner      Paulsen      Swenson, H.  Sp.Anderson,I
Finseth      Lynch        Pawlenty     Sykora       
Girard       Macklin      Pellow       Tompkins     
The motion did not prevail and the amendment to the amendment was not adopted.


JOURNAL OF THE HOUSE - 52nd Day - Top of Page 3639

Bishop requested a division of the Otremba et al amendment to H. F. No. 1077, the fifth engrossment, as amended.

Bishop further requested that the second portion of the divided Otremba et al amendment to H. F. No. 1077, the fifth engrossment, as amended, be voted on first.

The second portion of the Otremba et al amendment to H. F. No. 1077, the fifth engrossment, as amended, reads as follows:

Page 40, line 16, after the period, insert "The standard health coverage does not include elective abortions, as defined in subdivision 2."

Page 47, delete section 31

Renumber the sections in sequence and correct internal references

Amend the title accordingly

A roll call was requested and properly seconded.

The question was taken on the second portion of the Otremba et al amendment and the roll was called. There were 85 yeas and 47 nays as follows:

Those who voted in the affirmative were:

Anderson, B. Haas         Lindner      Pawlenty     Tuma
Bertram      Hackbarth    Lynch        Pellow       Tunheim
Bettermann   Harder       Macklin      Pelowski     Van Dellen
Boudreau     Hasskamp     Mares        Peterson     Van Engen
Bradley      Holsten      McElroy      Pugh         Vickerman
Broecker     Hugoson      Milbert      Rice         Warkentin
Brown        Johnson, R.  Molnau       Rostberg     Weaver
Commers      Johnson, V.  Mulder       Sarna        Wenzel
Cooper       Kalis        Murphy       Schumacher   Winter
Daggett      Kelso        Ness         Seagren      Wolf
Dauner       Kinkel       Olson, E.    Smith        Worke
Davids       Knight       Olson, M.    Solberg      Workman
Dehler       Knoblach     Onnen        Stanek       Sp.Anderson,I
Dempsey      Koppendrayer Opatz        Sviggum      
Dorn         Kraus        Osskopp      Swenson, D.  
Finseth      Krinkie      Otremba      Swenson, H.  
Girard       Larsen       Ozment       Sykora       
Goodno       Lieder       Paulsen      Tompkins     
Those who voted in the negative were:

Abrams       Farrell      Kahn         McCollum     Rukavina
Bakk         Frerichs     Kelley       McGuire      Simoneau
Bishop       Garcia       Leighton     Munger       Skoglund
Carlson      Greenfield   Leppik       Orenstein    Tomassoni
Carruthers   Greiling     Long         Orfield      Trimble
Clark        Hausman      Lourey       Osthoff      Wagenius
Dawkins      Huntley      Luther       Ostrom       Wejcman 
Delmont      Jaros        Mahon        Perlt        
Entenza      Jefferson    Mariani      Rest         
Erhardt      Johnson, A.  Marko        Rhodes       
The motion prevailed and the second portion of the Otremba et al amendment was adopted.

The first portion of the Otremba et al amendment to H. F. No. 1077, the fifth engrossment, as amended, reads as follows:

Page 39, line 25, before "The" insert "(a)"


JOURNAL OF THE HOUSE - 52nd Day - Top of Page 3640

Page 40, after line 7, insert:

"(b) "Appropriate and necessary care" does not include elective abortions. For purposes of this section, an "abortion" means the use or prescription of any instrument, medicine, drug, or any other substance or device intentionally to terminate the pregnancy of a woman known to be pregnant with an intention other than to increase the probability of a live birth, to preserve the life or health of the child after live birth, or to remove a dead unborn child. For purposes of this section, an "elective abortion" means an abortion other than where, in the professional judgment of the attending physician, which is a medical judgment that would be made by a reasonably prudent physician, knowledgeable about the case and the treatment possibilities with respect to the medical conditions involved, the life of the female would be endangered or substantial and irreversible impairment of a major bodily function would result if the fetus were carried to term; where the pregnancy is the result of conduct which would constitute criminal sexual conduct in the first, second or third degree committed with force or violence, and the incident is reported within 48 hours after the victim becomes physically able to report the rape; or where the pregnancy is the result of incest and the incident and relative are reported to a valid law enforcement agency prior to the abortion. Neither section 62N.17 nor any other provision of this act may be construed to require coverage for elective abortions. This paragraph is inseverable from this section and from sections 62Q.231, 62Q.24, and 62Q.25; if any sentence, phrase, or word of this paragraph is determined by a final nonappealable order or judgment of a court of competent jurisdiction to be unconstitutional under the state or federal constitution or in conflict with federal law, all remaining portions of this section and of sections 62Q.231, 62Q.24, and 62Q.25 are void and are repealed. If any sentence, phrase, or word of this paragraph has been determined by a court of competent jurisdiction to be unconstitutional under the state or federal constitution or in conflict with federal law, and that determination is under appeal to another court or the time allowed for appeal has not expired, all remaining portions of this section and of sections 62Q.231, 62Q.24, and 62Q.25 are not enforceable during any period of time in which any sentence, phrase, or word of this paragraph is not enforceable. With respect to section 62Q.25, the inseverability applies to the amendments made to that section in this act and to that section as it exists in Minnesota Statutes 1994."

Renumber the sections in sequence and correct internal references

Amend the title accordingly

A roll call was requested and properly seconded.

Long and Kahn moved to amend the first portion of the Otremba et al amendment to H. F. No. 1077, the fifth engrossment, as amended, as follows:

Page 2, line 1, delete "relative" and insert "perpetrator"

Page 2, line 2, after the period, insert "For purposes of this paragraph, "incest" includes conduct by someone in a sexual relationship with the victim's parent."

A roll call was requested and properly seconded.

The question was taken on the Long and Kahn amendment to the first portion of the Otremba et al amendment and the roll was called. There were 54 yeas and 78 nays as follows:

Those who voted in the affirmative were:

Bakk         Erhardt      Johnson, R.  Mariani      Pugh
Bishop       Farrell      Kahn         Marko        Rest
Brown        Garcia       Kelley       McCollum     Rhodes
Carlson      Greenfield   Kinkel       McGuire      Rukavina
Carruthers   Greiling     Krinkie      Munger       Simoneau
Clark        Hausman      Leighton     Olson, E.    Skoglund
Dauner       Holsten      Lieder       Opatz        Tomassoni
Dawkins      Huntley      Long         Orenstein    Trimble
Delmont      Jaros        Lourey       Orfield      Wagenius
Dorn         Jefferson    Luther       Ostrom       Wejcman 
Entenza      Johnson, A.  Mahon        Perlt        

JOURNAL OF THE HOUSE - 52nd Day - Top of Page 3641
Those who voted in the negative were:

Abrams       Goodno       Lynch        Pawlenty     Tompkins
Anderson, B. Haas         Macklin      Pellow       Tuma
Bertram      Hackbarth    Mares        Pelowski     Tunheim
Bettermann   Harder       McElroy      Peterson     Van Dellen
Boudreau     Hasskamp     Milbert      Rice         Van Engen
Bradley      Hugoson      Molnau       Rostberg     Vickerman
Broecker     Johnson, V.  Mulder       Sarna        Warkentin
Commers      Kalis        Murphy       Schumacher   Weaver
Cooper       Kelso        Ness         Seagren      Wenzel
Daggett      Knight       Olson, M.    Smith        Winter
Davids       Knoblach     Onnen        Solberg      Wolf
Dehler       Koppendrayer Osskopp      Stanek       Worke
Dempsey      Kraus        Osthoff      Sviggum      Workman
Finseth      Larsen       Otremba      Swenson, D.  Sp.Anderson,I
Frerichs     Leppik       Ozment       Swenson, H.  
Girard       Lindner      Paulsen      Sykora       
The motion did not prevail and the Long and Kahn amendment to the first portion of the Otremba et al amendment was not adopted.

Skoglund moved to amend the first portion of the Otremba et al amendment to H. F. No. 1077, the fifth engrossment, as amended, as follows:

Page 1, line 22, delete "committed with force or violence"

A roll call was requested and properly seconded.

The question was taken on the Skoglund amendment to the first portion of the Otremba et al amendment and the roll was called. There were 66 yeas and 66 nays as follows:

Those who voted in the affirmative were:

Abrams       Girard       Leighton     Munger       Skoglund
Bakk         Greenfield   Leppik       Opatz        Solberg
Bertram      Greiling     Lieder       Orenstein    Sykora
Bishop       Hausman      Long         Orfield      Tomassoni
Carlson      Holsten      Lourey       Osthoff      Trimble
Carruthers   Huntley      Luther       Ostrom       Van Dellen
Clark        Jaros        Lynch        Paulsen      Wagenius
Dawkins      Jefferson    Mahon        Pawlenty     Warkentin
Delmont      Johnson, A.  Mariani      Perlt        Weaver
Dorn         Johnson, R.  Marko        Pugh         Wejcman
Entenza      Kahn         McCollum     Rest         
Erhardt      Kelley       McElroy      Rhodes       
Farrell      Krinkie      McGuire      Rukavina     
Garcia       Larsen       Milbert      Simoneau     
Those who voted in the negative were:

Anderson, B. Frerichs     Kraus        Pellow       Tuma
Bettermann   Goodno       Lindner      Pelowski     Tunheim
Boudreau     Haas         Macklin      Peterson     Van Engen
Bradley      Hackbarth    Mares        Rice         Vickerman
Broecker     Harder       Molnau       Rostberg     Wenzel
Brown        Hasskamp     Mulder       Sarna        Winter
Commers      Hugoson      Murphy       Schumacher   Wolf
Cooper       Johnson, V.  Ness         Seagren      Worke
Daggett      Kalis        Olson, E.    Smith        Workman
Dauner       Kelso        Olson, M.    Stanek       Sp.Anderson,I
Davids       Kinkel       Onnen        Sviggum      
Dehler       Knight       Osskopp      Swenson, D.  
Dempsey      Knoblach     Otremba      Swenson, H.  
Finseth      Koppendrayer Ozment       Tompkins     
The motion did not prevail and the Skoglund amendment to the first portion of the Otremba et al amendment was not adopted.


JOURNAL OF THE HOUSE - 52nd Day - Top of Page 3642

The question recurred on the first portion of the Otremba et al amendment and the roll was called. There were 83 yeas and 49 nays as follows:

Those who voted in the affirmative were:

Anderson, B. Haas         Lieder       Ozment       Sykora
Bertram      Hackbarth    Lindner      Paulsen      Tompkins
Bettermann   Harder       Lynch        Pawlenty     Tuma
Boudreau     Hasskamp     Macklin      Pellow       Tunheim
Bradley      Holsten      Mares        Pelowski     Van Dellen
Broecker     Hugoson      McElroy      Peterson     Van Engen
Brown        Johnson, R.  Milbert      Pugh         Vickerman
Commers      Johnson, V.  Molnau       Rice         Warkentin
Cooper       Kalis        Mulder       Rostberg     Weaver
Daggett      Kelso        Murphy       Sarna        Wenzel
Dauner       Kinkel       Ness         Schumacher   Winter
Davids       Knight       Olson, E.    Seagren      Wolf
Dehler       Knoblach     Olson, M.    Smith        Worke
Dempsey      Koppendrayer Onnen        Stanek       Workman
Finseth      Kraus        Opatz        Sviggum      Sp.Anderson,I
Girard       Krinkie      Osskopp      Swenson, D.  
Goodno       Larsen       Otremba      Swenson, H.  
Those who voted in the negative were:

Abrams       Erhardt      Johnson, A.  Marko        Rhodes
Bakk         Farrell      Kahn         McCollum     Rukavina
Bishop       Frerichs     Kelley       McGuire      Simoneau
Carlson      Garcia       Leighton     Munger       Skoglund
Carruthers   Greenfield   Leppik       Orenstein    Solberg
Clark        Greiling     Long         Orfield      Tomassoni
Dawkins      Hausman      Lourey       Osthoff      Trimble
Delmont      Huntley      Luther       Ostrom       Wagenius
Dorn         Jaros        Mahon        Perlt        Wejcman
Entenza      Jefferson    Mariani      Rest         
The motion prevailed and the first portion of the Otremba et al amendment was adopted.

Lourey moved to amend H. F. No. 1077, the fifth engrossment, as amended, as follows:

Page 216, after line 12, insert:

"[MINNESOTACARE PHARMACY.] Beginning July 1, 1995, the pharmacy dispensing fee in the MinnesotaCare program shall be $4.10."

The motion prevailed and the amendment was adopted.

Abrams moved to amend H. F. No. 1077, the fifth engrossment, as amended, as follows:

Pages 39 to 46, delete sections 26 to 29 of article 2

Page 47, delete section 31 of article 2

Page 51, line 8, after the second semicolon, insert "62Q.25;"

A roll call was requested and properly seconded.

The question was taken on the Abrams amendment and the roll was called. There were 61 yeas and 70 nays as follows:

Those who voted in the affirmative were:

Abrams       Frerichs     Kelley       McGuire      Swenson, D.
Bakk         Garcia       Krinkie      Munger       Sykora
Bishop       Girard       Leighton     Orenstein    Tomassoni
Bradley      Greenfield   Leppik       Orfield      Trimble
Carlson      Greiling     Long         Osthoff      Tuma
Carruthers   Hausman      Lourey       Ostrom       Van Dellen
Clark        Holsten      Luther       Perlt        Wagenius
Dawkins      Hugoson      Lynch        Rest         Weaver

JOURNAL OF THE HOUSE - 52nd Day - Top of Page 3643
Delmont Huntley Mahon Rhodes Wejcman Dorn Jaros Mariani Rukavina Entenza Jefferson Marko Simoneau Erhardt Johnson, A. McCollum Skoglund Farrell Kahn McElroy Solberg
Those who voted in the negative were:

Anderson, B. Haas         Macklin      Pawlenty     Tunheim
Bertram      Hackbarth    Mares        Pellow       Van Engen
Bettermann   Harder       Milbert      Pelowski     Vickerman
Boudreau     Hasskamp     Molnau       Peterson     Warkentin
Broecker     Johnson, R.  Mulder       Pugh         Wenzel
Brown        Johnson, V.  Murphy       Rice         Winter
Commers      Kalis        Ness         Rostberg     Wolf
Cooper       Kinkel       Olson, E.    Sarna        Worke
Daggett      Knight       Olson, M.    Schumacher   Workman
Dauner       Knoblach     Onnen        Seagren      Sp.Anderson,I
Davids       Koppendrayer Opatz        Smith        
Dehler       Kraus        Osskopp      Stanek       
Dempsey      Larsen       Otremba      Sviggum      
Finseth      Lieder       Ozment       Swenson, H.  
Goodno       Lindner      Paulsen      Tompkins     
The motion did not prevail and the amendment was not adopted.

Hasskamp, McCollum, Cooper, Onnen, Van Engen and Davids moved to amend H. F. No. 1077, the fifth engrossment, as amended, as follows:

Page 15, after line 17, insert:

"(c) Medically appropriate guidelines and practice parameters must conform with section 62M.07, paragraph (c). No treatment or procedure which is effective in preserving or extending life may be deemed medically inappropriate or clinically ineffective on the basis of the patient's present or predicted age, disability, degree of need for future treatment, or quality of life, unless in comparison with another treatment or procedure which is equally or more effective in preserving or extending life."

Page 15, line 18, delete "(c)" and insert "(d)"

Page 52, after line 6, insert:

"Sec. 2. Minnesota Statutes 1994, section 62J.03, subdivision 7, is amended to read:

Subd. 7. [IMPROVEMENT IN HEALTH OUTCOME.] "Improvement in health outcome" means an improvement in patient clinical status, and an improvement in patient quality-of-life status, as measured by ability to function, ability to return to work, and other variables or preservation of the patient's life."

Page 55, line 2, before the semicolon, insert ", in compliance with section 62N.15, subdivision 6, paragraph (c)"

Renumber the sections in article 3 in sequence and correct internal references

Page 68, line 5, after "means" insert ", in compliance with section 62N.15, subdivision 7, paragraph (c),"

Page 82, line 20, before the period, insert ", and in compliance with section 62N.15, subdivision 6, paragraph (c)"

Page 85, line 27, after "guidelines" insert "which are in compliance with section 62N.15, subdivision 6, paragraph (c), and which are"

Page 86, line 3, after "measurement" insert "must be in compliance with section 62N.15, subdivision 6, paragraph (c), and"


JOURNAL OF THE HOUSE - 52nd Day - Top of Page 3644

Page 155, after line 4, insert:

"(c) No utilization review organization, health plan company, or claims administrator may deny medical treatment that a patient is otherwise qualified to receive, against the wishes of a patient, or, if the patient is incompetent, against the wishes of a person possessing a durable power of attorney from the patient or against the wishes of the patient's guardian, on the basis of the patient's present or predicted age, disability, degree of need for future treatment, or quality of life."

Page 155, lines 9 and 10, delete "based on accepted medical practice" and insert "in compliance with section 62M.07, paragraph (c)"

Amend the title as follows:

Page 1, line 23, after the last semicolon, insert "62J.03, subdivision 7;"

A roll call was requested and properly seconded.

The question was taken on the Hasskamp et al amendment and the roll was called.

Carruthers moved that those not voting be excused from voting. The motion prevailed.

There were 89 yeas and 42 nays as follows:

Those who voted in the affirmative were:

Anderson, B. Hackbarth    Lindner      Otremba      Swenson, D.
Bertram      Harder       Luther       Ozment       Swenson, H.
Bettermann   Hasskamp     Lynch        Paulsen      Sykora
Boudreau     Holsten      Macklin      Pawlenty     Tompkins
Bradley      Hugoson      Mahon        Pellow       Tuma
Broecker     Johnson, R.  Mares        Pelowski     Tunheim
Brown        Johnson, V.  McCollum     Peterson     Van Dellen
Clark        Kalis        McElroy      Pugh         Van Engen
Commers      Kelso        Milbert      Rice         Vickerman
Cooper       Kinkel       Molnau       Rostberg     Warkentin
Daggett      Knight       Mulder       Rukavina     Weaver
Davids       Knoblach     Murphy       Sarna        Wenzel
Dehler       Koppendrayer Ness         Schumacher   Winter
Dempsey      Kraus        Olson, E.    Seagren      Wolf
Finseth      Krinkie      Olson, M.    Smith        Worke
Girard       Larsen       Onnen        Solberg      Workman
Goodno       Leighton     Opatz        Stanek       Sp.Anderson,I
Haas         Lieder       Osskopp      Sviggum      
Those who voted in the negative were:

Abrams       Entenza      Jaros        McGuire      Simoneau
Bakk         Erhardt      Jefferson    Munger       Skoglund
Bishop       Farrell      Johnson, A.  Orenstein    Tomassoni
Carlson      Frerichs     Kahn         Orfield      Trimble
Carruthers   Garcia       Kelley       Osthoff      Wagenius
Dauner       Greenfield   Leppik       Ostrom       Wejcman 
Dawkins      Greiling     Lourey       Perlt        
Delmont      Hausman      Mariani      Rest         
Dorn         Huntley      Marko        Rhodes       
The motion prevailed and the amendment was adopted.

Knight moved to amend H. F. No. 1077, the fifth engrossment, as amended, as follows:

Page 54, line 26, strike "(a)"

Page 54, lines 27 and 28, strike "and the commission's comments and recommendations"

Page 55, strike the existing language in lines 11 to 17

Page 56, lines 20 to 21, strike "in consultation with the Minnesota health care commission"


JOURNAL OF THE HOUSE - 52nd Day - Top of Page 3645

Page 56, lines 29 to 30, delete ", in consultation with the health care commission,"

Page 57, lines 2 to 3, strike "the Minnesota health care commission and"

Page 57, line 30, delete everything before "It"

Page 58, delete lines 12 to 36

Page 59, delete lines 1 to 35

Pages 144 to 146, delete sections 1 and 2

Page 178, after line 25, insert:

"(c) The revisor of statutes is instructed to present to the legislature, at the start of the 1996 session, statutory changes necessary to conform to the repeal of section 62J.05."

Page 178, after line 34, insert:

"Sec. 54. [REPEALER; HEALTH CARE COMMISSION.]

Minnesota Statutes 1994, section 62J.05 is repealed."

Renumber the sections in sequence and correct internal references

Amend the title accordingly

A roll call was requested and properly seconded.

The question was taken on the Knight amendment and the roll was called.

Carruthers moved that those not voting be excused from voting. The motion prevailed.

There were 64 yeas and 67 nays as follows:

Those who voted in the affirmative were:

Abrams       Finseth      Kraus        Osskopp      Swenson, H.
Anderson, B. Frerichs     Krinkie      Osthoff      Sykora
Bettermann   Girard       Larsen       Ozment       Tompkins
Bishop       Goodno       Leppik       Paulsen      Tuma
Boudreau     Haas         Lindner      Pawlenty     Van Dellen
Bradley      Hackbarth    Lynch        Pellow       Van Engen
Broecker     Harder       Macklin      Rhodes       Vickerman
Commers      Holsten      Mares        Rostberg     Warkentin
Daggett      Hugoson      Molnau       Seagren      Weaver
Davids       Johnson, V.  Mulder       Smith        Wolf
Dehler       Knight       Ness         Stanek       Worke
Dempsey      Knoblach     Olson, M.    Sviggum      Workman 
Erhardt      Koppendrayer Onnen        Swenson, D.  
Those who voted in the negative were:

Bakk         Greenfield   Lieder       Opatz        Simoneau
Bertram      Greiling     Long         Orenstein    Skoglund
Brown        Hasskamp     Lourey       Orfield      Solberg
Carlson      Hausman      Luther       Ostrom       Tomassoni
Carruthers   Huntley      Mahon        Otremba      Trimble
Clark        Jaros        Mariani      Pelowski     Tunheim
Cooper       Jefferson    Marko        Perlt        Wagenius

JOURNAL OF THE HOUSE - 52nd Day - Top of Page 3646
Dauner Johnson, A. McCollum Peterson Wejcman Dawkins Johnson, R. McElroy Pugh Wenzel Delmont Kahn McGuire Rest Winter Dorn Kalis Milbert Rice Sp.Anderson,I Entenza Kelley Munger Rukavina Farrell Kinkel Murphy Sarna Garcia Leighton Olson, E. Schumacher
The motion did not prevail and the amendment was not adopted.

Knight moved to amend H. F. No. 1077, the fifth engrossment, as amended, as follows:

Page 182, after line 7, insert:

"Sec. 7. Minnesota Statutes 1994, section 295.52, is amended by adding a subdivision to read:

Subd. 7. [EXEMPTION FOR PROVIDERS OF DENTAL SERVICES.] Dentists, dental assistants, and dental hygienists are exempt from the health care provider tax imposed by this section."

Renumber the sections in sequence and correct internal references

Amend the title accordingly

A roll call was requested and properly seconded.

The question was taken on the Knight amendment and the roll was called.

Johnson, R., moved that those not voting be excused from voting. The motion prevailed.

There were 108 yeas and 23 nays as follows:

Those who voted in the affirmative were:

Abrams       Girard       Leighton     Onnen        Sviggum
Anderson, B. Goodno       Leppik       Opatz        Swenson, D.
Bakk         Haas         Lieder       Orenstein    Swenson, H.
Bertram      Hackbarth    Lindner      Osskopp      Sykora
Bettermann   Harder       Long         Osthoff      Tomassoni
Bishop       Hasskamp     Luther       Otremba      Tompkins
Boudreau     Hausman      Lynch        Ozment       Trimble
Bradley      Holsten      Macklin      Paulsen      Tuma
Broecker     Hugoson      Mahon        Pawlenty     Tunheim
Carlson      Jefferson    Mares        Pellow       Van Dellen
Carruthers   Johnson, A.  Mariani      Pelowski     Van Engen
Commers      Johnson, R.  Marko        Perlt        Vickerman
Daggett      Johnson, V.  McCollum     Peterson     Wagenius
Dauner       Kahn         McElroy      Pugh         Warkentin
Davids       Kalis        McGuire      Rest         Weaver
Dehler       Kinkel       Milbert      Rhodes       Wenzel
Dempsey      Knight       Molnau       Rostberg     Winter
Dorn         Knoblach     Mulder       Rukavina     Wolf
Erhardt      Koppendrayer Murphy       Schumacher   Worke
Farrell      Kraus        Ness         Seagren      Workman 
Finseth      Krinkie      Olson, E.    Smith        
Frerichs     Larsen       Olson, M.    Stanek       
Those who voted in the negative were:

Brown        Entenza      Jaros        Ostrom       Solberg
Clark        Garcia       Kelley       Rice         Wejcman
Cooper       Greenfield   Lourey       Sarna        Sp.Anderson,I
Dawkins      Greiling     Munger       Simoneau     
Delmont      Huntley      Orfield      Skoglund     
The motion prevailed and the amendment was adopted.


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Workman moved to amend H. F. No. 1077, the fifth engrossment, as amended, as follows:

Page 123, after line 9, insert:

"Sec. 6. [62A.308][COVERAGE FOR LANREOTIDE TREATMENT.]

Subdivision 1. [APPLICABILITY.] This section applies to all health plans as defined in section 62A.011 that provide coverage to a Minnesota resident.

Subd. 2. [REQUIRED COVERAGE.] Every health plan described in subdivision 1 must cover lanreotide treatment for metastatic renal cell carcinoma. This includes coverage of the cost of the lanreotide and of related physician services, laboratory tests, and other medical services necessary to administer and monitor the treatment. For purposes of this section, that treatment must not be considered experimental or investigative.

Subd. 3. [SPECIAL RESTRICTIONS PROHIBITED.] Coverage required under subdivision 2 must not be subject to a deductible, coinsurance, copayment, benefit limit, or other restriction that varies from the provisions of that type that apply to covered benefits in general under the health plan. If the treatment is not available within the health plan's network, it must be covered if received out-of-network on the same basis as if it were available within the network."

Page 144, line 9, after the period, insert "Section 6 (Lanreotide mandate) is effective the day following final enactment and applies to all health plans issued, renewed, or in effect on or after that date."

Renumber the sections in sequence and correct internal references

Amend the title accordingly

The motion did not prevail and the amendment was not adopted.

Seagren moved to amend H. F. No. 1077, the fifth engrossment, as amended, as follows:

Page 215, after line 14, insert:

"ARTICLE 12

MEDICAL CARE SAVINGS ACCOUNTS

Section 1. [62S.01] [CITATION.]

This article shall be known and may be cited as the "medical care savings account act."

Sec. 2. [62S.02] [DEFINITIONS.]

Subdivision 1. [APPLICABILITY.] For purposes of this chapter the terms defined in this section have the meanings given.

Subd. 2. [ACCOUNT ADMINISTRATOR.] "Account administrator" means any of the following:

(1) a health plan company as defined in section 62Q.01, subdivision 4;

(2) a third-party administrator licensed under section 60A.23, subdivision 8;

(3) a certified public accountant licensed to practice in this state under section 326.19;

(4) an attorney licensed to practice in this state; or

(5) an employer that participates in the medical care savings account program, but with respect only to the employer's own plan and the plans of related organizations as defined in sections 302A.011, 317A.011, and 322B.03. For purposes of this clause, a self-employed individual is not an employer.


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Subd. 3. [CONTRIBUTOR.] "Contributor" means a participant, a dependent of a participant, or an employer, who contributes money into a medical care savings account. For purposes of this subdivision, a self-employed individual who has employees is an employer.

Subd. 4. [DEDUCTIBLE.] "Deductible" means the total deductible for a participant and all the dependents of that participant for a plan year.

Subd. 5. [DEPENDENT.] "Dependent" means a participant's spouse, unmarried child who is under the age of 19 years, unmarried child under the age of 25 years who is a full-time student as defined in section 62A.301, dependent child of any age who is handicapped and who meets the eligibility criteria in section 62A.14, subdivision 2, or any other person whom state or federal law requires to be treated as a dependent for purposes of health plans. For the purpose of this definition, a child includes a child for whom the participant or the participant's spouse has been appointed legal guardian.

Subd. 6. [ELIGIBLE EXPENSE.] "Eligible expense" means an expense incurred by an individual for medical, dental, or vision care as described in section 213(d) of the Internal Revenue Code of 1986, as amended. Eligible expense includes expenses incurred by an individual for services received from a physician, as defined in subdivision 11. Eligible expense includes expenses for long-term care as described in section 62A.46, subdivision 2, or premiums for a long-term care policy as defined under that section.

Subd. 7. [HIGHER DEDUCTIBLE.] "Higher deductible" means a deductible of not less than $1,000 and not more than $5,000 for calendar year 1995. The commissioner of commerce shall annually adjust this minimum and maximum to reflect changes in the Consumer Price Index for urban consumers (CPI-U). The adjustment must be issued no later than October 1 of each year and must be based upon the most recent index available as of September 1 of that year.

Subd. 8. [MEDICAL CARE SAVINGS ACCOUNT OR ACCOUNT.] "Medical care savings account" or "account" means an account established by an individual, or by an employer on behalf of an employee, as part of a medical care savings account plan.

Subd. 9. [MEDICAL CARE SAVINGS ACCOUNT PLAN OR PLAN.] "Medical care savings account plan" or "plan" means an arrangement that meets the requirements of this chapter, including the following:

(1) the purchase by an employer or individual of a qualified higher deductible health plan for the benefit of a participant and the participant's dependents;

(2) contribution to a medical care savings account by a contributor; and

(3) an account administrator to administer the medical care savings account from which payment of claims is made.

Subd. 10. [PARTICIPANT.] "Participant" means an employed, self-employed, or nonemployed individual who: (1) has established a medical care savings account, or has had a medical care savings account established by an employer on the individual's behalf; and (2) participates in a medical care savings account plan.

Subd. 11. [PHYSICIAN.] "Physician" means: (1) a doctor of medicine or osteopathy licensed under chapter 147; (2) a doctor of dental surgery or of dental medicine licensed under chapter 150A; (3) a doctor of podiatric medicine licensed under chapter 153; (4) an optometrist licensed under chapter 148; or (5) a chiropractor licensed under chapter 148.

Subd. 12. [QUALIFIED HIGHER DEDUCTIBLE HEALTH PLAN.] "Qualified higher deductible health plan" means a health plan, as defined in section 62A.011, that provides for payments for covered benefits that exceed a specified higher deductible and that is purchased by an employer or individual for the benefit of a participant under a medical care savings account plan.

Subd. 13. [SELF-EMPLOYED INDIVIDUAL.] "Self-employed individual" has the meaning given in section 401(c) of the Internal Revenue Code of 1986, as amended.

Sec. 3. [62S.03] [ESTABLISHMENT.]

Subdivision 1. [EMPLOYERS.] Beginning January 1, 1996, an employer, except as otherwise provided by law, contract, or collective bargaining agreement, may offer to employees a medical care savings account plan, subject to the requirements of this chapter. The plan must be on a calendar year basis. For purposes of this subdivision, a self-employed individual who has employees is an employer.


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An employer that offers a medical care savings account plan shall inform all employees in writing, before making any contributions, of the federal tax status of contributions made under this chapter.

Subd. 2. [INDIVIDUALS.] For tax years beginning on or after January 1, 1996, an employed, self-employed, or nonemployed individual may establish a medical care savings account and participate in a medical care savings account plan, subject to the requirements of this chapter. A plan established by an individual must be on a calendar year basis, unless the individual's tax year is not on a calendar year basis, in which case the plan year must correspond with the individual's tax year.

Subd. 3. [CONTRIBUTIONS INTO ACCOUNT.] A contributor may deposit into a medical care savings account, on behalf of a participant, all or part of the deductible of the qualified higher deductible health plan purchased.

Sec. 4. [62S.04] [ADMINISTRATION.]

Subdivision 1. [NOTIFICATION.] No later than 30 days after an account administrator begins to administer an account, and no later than November 1 of subsequent years, the administrator shall notify in writing each participant of the date of the last business day of the medical care savings account plan year.

Subd. 2. [USE OF FUNDS.] The account administrator shall use the funds held in a medical care savings account solely for the purpose of paying the eligible expenses of the participant or the participant's dependents. Funds held in a medical care savings account must not be used to cover eligible expenses of a participant or a participant's dependents that are otherwise covered under private coverage, including, but not limited to, expenses covered by an automobile insurance policy or self-insured plan, workers' compensation insurance policy or self-insured plan, or another health coverage policy, contract, or certificate.

Subd. 3. [REIMBURSEMENT.] Upon receipt of documentation of eligible expenses incurred by a participant in the plan year, the account administrator shall reimburse the participant from the participant's account for eligible expenses. Eligible expenses incurred during a plan year and not submitted to the account administrator during that plan year, or submitted to the plan administrator during that plan year but not reimbursed during that plan year, may be reimbursed by the account administrator in the subsequent plan year.

Subd. 4. [ADVANCE TO PARTICIPANT.] If an employer makes contributions to a participant's medical care savings account on a periodic installment basis, the employer shall advance to the participant, interest free, the amount necessary to cover eligible expenses incurred by the participant that exceed the amount in the participant's medical care savings account at the time the expense is incurred, if the participant agrees in writing to repay the advance from future installments. The total amount advanced by an employer during a tax year must not exceed the total to be contributed by the employer to the participant's medical care savings account during that plan year.

Subd. 5. [CARRYOVER.] Money remaining in a participant's medical care savings account at the end of a plan year remains in the account for the next plan year, and may be used to pay for future eligible expenses of the participant or the participant's dependents.

Subd. 6. [PARTICIPATION AT START OF PLAN YEAR.] Employers that offer a medical care savings account plan may, at their option, allow employees to begin participation only at the start of a plan year. Employers may offer alternative health care coverage to employees who become eligible for or choose to enroll in employee-sponsored health care coverage during the interim period before the start of a plan year.

Subd. 7. [INTEREST.] A medical care savings account may earn interest, to be credited to the account, but the principal balance of the account, including accrued interest, must not vary in any way based upon market conditions.

Sec. 5. [62S.05] [TAXATION OF WITHDRAWALS.]

Subdivision 1. [WITHDRAWALS FOR OTHER PURPOSES.] A participant may withdraw money from a medical care savings account for any purpose other than a purpose described in section 62S.04, subdivision 2, only on the last business day of the medical care savings account plan year. Money withdrawn under this subdivision is subject to taxation as income to the extent provided in section 290.01, subdivision 19a.

Subd. 2. [BANKRUPTCY.] The disbursement of any assets of a medical care savings account as a result of a filing for protection under the federal bankruptcy code, United States Code, title 11, sections 101 to 1330, as amended, by a participant or other person for whose benefit the account was established is not considered a withdrawal for purposes of this section. The disbursement is not subject to taxation under chapter 290.


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Sec. 6. [62S.06] [CHANGES IN PARTICIPANT STATUS.]

Subdivision 1. [DEATH OF PARTICIPANT.] (a) For purposes of this subdivision, the following terms have the meanings given:

(1) "Designated beneficiary" means one or more individuals designated in a written document, signed by the participant and given to the employer or account administrator prior to the participant's death, in which the participant designates the individuals to receive the account balance upon the death of the participant. The designation may designate a class of unnamed individuals, such as "my children" or "my spouse."

(2) "Successor" means a person or persons entitled to the account balance of a deceased participant under chapter 524 or 525, including but not limited to, a personal representative or a successor described in section 524.3-401 or 524.3-1201.

(b) If the participant dies, a designated beneficiary has priority over a successor with respect to paragraph (c).

(c) Upon the death of a participant, the account administrator shall distribute the principal and accumulated interest of the medical care savings account to the designated beneficiary or successor of the participant, unless the participant's designated beneficiary or successor requests the account administrator to continue to administer the medical care savings account. If this request is made, the account administrator shall retain the account balance for use by the designated beneficiary or successor for eligible expenses, including health plan continuation premiums, and withdrawals under section 62S.05 until the medical care savings account fund balance is exhausted. If the account balance is distributed to the designated beneficiary or successor of the participant, the funds are subject to taxation to the extent provided in section 290.01, subdivision 19a, unless the participant's designated beneficiary or successor deposits the account balance in another medical care savings account within 60 days of the distribution.

Subd. 2. [CHANGES IN EMPLOYMENT STATUS.] (a) If an employee who was a participant in an employer's medical care savings account plan is no longer employed by the employer, the employee may transfer the account to the administrator of a medical care savings account plan offered by the employee's new employer. The employee must notify the new administrator of the request for transfer within 60 days after the employee's final day of employment with the previous employer. An employer sponsoring a medical care savings account plan shall accept all requests for account transfers by new employees, if the request for a transfer is made within this 60-day period, regardless of whether the new employee is then otherwise eligible to participate in the new employer's plan. The new administrator must arrange with the former administrator for transfer of the account, and the former administrator must transfer the full account balance promptly. An amount transferred under this paragraph is not subject to taxation.

(b) If the employee does not request a transfer under paragraph (a), the employee may request in writing to the former employer's account administrator, no later than 60 days after the employee's final day of employment, that the account remain with that administrator. If the administrator rejects the employee's request, the former employer shall mail a check payable to the former employee, in the amount of the former employee's account balance, to the employee's last known address no later than 30 days after the expiration of the 60-day period, or 30 days after rejecting the request, whichever is earlier. That amount is subject to taxation to the extent provided under section 290.01, subdivision 19a, unless the employee establishes or becomes a participant in another medical care savings account and deposits the full amount received from the former employer in that account, within 60 days of receipt.

Sec. 7. [REQUIREMENTS; HEALTH PLAN COMPANIES.]

Subdivision 1. [HEALTH PLAN REQUIREMENTS.] A qualified higher deductible health plan used in connection with a medical care savings account plan must meet all requirements applicable to the health plan under state or federal law, including but not limited to, coverage of child health supervision services and prenatal services without a deductible, copayment, or other coinsurance or dollar limitation requirements, as required under section 62A.047.

Subd. 2. [SMALL EMPLOYER MARKET AND REINSURANCE PARTICIPATION.] A health plan company that serves as an account administrator or issues a qualified higher deductible health plan in connection with a medical care savings account sponsored by a small employer as defined under section 62L.02, subdivision 26, must:

(1) actively participate in the small employer market under chapter 62L, including the active marketing of qualified plans in that market as required under section 62E.04, subdivision 3, and 62L.04, subdivision 1; and

(2) be a member of the health coverage reinsurance association established in section 62L.13 and must not elect nonparticipation in that association under section 62L.17.


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Subd. 3. [RISK ADJUSTMENT PARTICIPATION.] A health plan company that serves as an account administrator or issues a qualified higher deductible health plan in connection with a medical care savings account shall be a member of and participate in the risk adjustment association established in section 62Q.03. If that association offers members an option to elect not to participate in risk adjustment, the health plan company shall not elect not to participate.

Sec. 8. Minnesota Statutes 1994, section 290.01, subdivision 19a, is amended to read:

Subd. 19a. [ADDITIONS TO FEDERAL TAXABLE INCOME.] For individuals, estates, and trusts, there shall be added to federal taxable income:

(1)(i) interest income on obligations of any state other than Minnesota or a political or governmental subdivision, municipality, or governmental agency or instrumentality of any state other than Minnesota exempt from federal income taxes under the Internal Revenue Code or any other federal statute, and

(ii) exempt-interest dividends as defined in section 852(b)(5) of the Internal Revenue Code, except the portion of the exempt-interest dividends derived from interest income on obligations of the state of Minnesota or its political or governmental subdivisions, municipalities, governmental agencies or instrumentalities, but only if the portion of the exempt-interest dividends from such Minnesota sources paid to all shareholders represents 95 percent or more of the exempt-interest dividends that are paid by the regulated investment company as defined in section 851(a) of the Internal Revenue Code, or the fund of the regulated investment company as defined in section 851(h) of the Internal Revenue Code, making the payment; and

(iii) for the purposes of items (i) and (ii), interest on obligations of an Indian tribal government described in section 7871(c) of the Internal Revenue Code shall be treated as interest income on obligations of the state in which the tribe is located;

(2) the amount of income taxes paid or accrued within the taxable year under this chapter and income taxes paid to any other state or to any province or territory of Canada, to the extent allowed as a deduction under section 63(d) of the Internal Revenue Code, but the addition may not be more than the amount by which the itemized deductions as allowed under section 63(d) of the Internal Revenue Code exceeds the amount of the standard deduction as defined in section 63(c) of the Internal Revenue Code. For the purpose of this paragraph, the disallowance of itemized deductions under section 68 of the Internal Revenue Code of 1986, income tax is the last itemized deduction disallowed;

(3) the capital gain amount of a lump sum distribution to which the special tax under section 1122(h)(3)(B)(ii) of the Tax Reform Act of 1986, Public Law Number 99-514, applies; and

(4) the amount of income taxes paid or accrued within the taxable year under this chapter and income taxes paid to any other state or any province or territory of Canada, to the extent allowed as a deduction in determining federal adjusted gross income. For the purpose of this paragraph, income taxes do not include the taxes imposed by sections 290.0922, subdivision 1, paragraph (b), 290.9727, 290.9728, and 290.9729; and

(5) a withdrawal from a medical care savings account under section 62S.05, subdivision 1, other than a withdrawal that qualifies under section 62S.05, subdivision 2.

Sec. 9. Minnesota Statutes 1994, section 290.01, subdivision 19b, is amended to read:

Subd. 19b. [SUBTRACTIONS FROM FEDERAL TAXABLE INCOME.] For individuals, estates, and trusts, there shall be subtracted from federal taxable income:

(1) interest income on obligations of any authority, commission, or instrumentality of the United States to the extent includable in taxable income for federal income tax purposes but exempt from state income tax under the laws of the United States;

(2) if included in federal taxable income, the amount of any overpayment of income tax to Minnesota or to any other state, for any previous taxable year, whether the amount is received as a refund or as a credit to another taxable year's income tax liability;

(3) the amount paid to others not to exceed $650 for each dependent in grades kindergarten to 6 and $1,000 for each dependent in grades 7 to 12, for tuition, textbooks, and transportation of each dependent in attending an elementary


JOURNAL OF THE HOUSE - 52nd Day - Top of Page 3652

or secondary school situated in Minnesota, North Dakota, South Dakota, Iowa, or Wisconsin, wherein a resident of this state may legally fulfill the state's compulsory attendance laws, which is not operated for profit, and which adheres to the provisions of the Civil Rights Act of 1964 and chapter 363. As used in this clause, "textbooks" includes books and other instructional materials and equipment used in elementary and secondary schools in teaching only those subjects legally and commonly taught in public elementary and secondary schools in this state. "Textbooks" does not include instructional books and materials used in the teaching of religious tenets, doctrines, or worship, the purpose of which is to instill such tenets, doctrines, or worship, nor does it include books or materials for, or transportation to, extracurricular activities including sporting events, musical or dramatic events, speech activities, driver's education, or similar programs. In order to qualify for the subtraction under this clause the taxpayer must elect to itemize deductions under section 63(e) of the Internal Revenue Code;

(4) to the extent included in federal taxable income, distributions from a qualified governmental pension plan, an individual retirement account, simplified employee pension, or qualified plan covering a self-employed person that represent a return of contributions that were included in Minnesota gross income in the taxable year for which the contributions were made but were deducted or were not included in the computation of federal adjusted gross income. The distribution shall be allocated first to return of contributions until the contributions included in Minnesota gross income have been exhausted. This subtraction applies only to contributions made in a taxable year prior to 1985;

(5) income as provided under section 290.0802;

(6) the amount of unrecovered accelerated cost recovery system deductions allowed under subdivision 19g;

(7) to the extent included in federal adjusted gross income, income realized on disposition of property exempt from tax under section 290.491; and

(8) to the extent not deducted in determining federal taxable income, the amount paid for health insurance of self-employed individuals as determined under section 162(l) of the Internal Revenue Code, except that the 25 percent limit does not apply. If the taxpayer deducted insurance payments under section 213 of the Internal Revenue Code of 1986, the subtraction under this clause must be reduced by the lesser of:

(i) the total itemized deductions allowed under section 63(d) of the Internal Revenue Code, less state, local, and foreign income taxes deductible under section 164 of the Internal Revenue Code and the standard deduction under section 63(c) of the Internal Revenue Code; or

(ii) the lesser of (A) the amount of insurance qualifying as "medical care" under section 213(d) of the Internal Revenue Code to the extent not deducted under section 162(l) of the Internal Revenue Code or excluded from income or (B) the total amount deductible for medical care under section 213(a); and

(9) contributions to and investment income attributable to medical care savings accounts, as defined in section 62S.02.

Sec. 10. Minnesota Statutes 1994, section 290.01, subdivision 19d, is amended to read:

Subd. 19d. [CORPORATIONS; MODIFICATIONS DECREASING FEDERAL TAXABLE INCOME.] For corporations, there shall be subtracted from federal taxable income after the increases provided in subdivision 19c:

(1) the amount of foreign dividend gross-up added to gross income for federal income tax purposes under section 78 of the Internal Revenue Code;

(2) the amount of salary expense not allowed for federal income tax purposes due to claiming the federal jobs credit under section 51 of the Internal Revenue Code;

(3) any dividend (not including any distribution in liquidation) paid within the taxable year by a national or state bank to the United States, or to any instrumentality of the United States exempt from federal income taxes, on the preferred stock of the bank owned by the United States or the instrumentality;

(4) amounts disallowed for intangible drilling costs due to differences between this chapter and the Internal Revenue Code in taxable years beginning before January 1, 1987, as follows:


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(i) to the extent the disallowed costs are represented by physical property, an amount equal to the allowance for depreciation under Minnesota Statutes 1986, section 290.09, subdivision 7, subject to the modifications contained in subdivision 19e; and

(ii) to the extent the disallowed costs are not represented by physical property, an amount equal to the allowance for cost depletion under Minnesota Statutes 1986, section 290.09, subdivision 8;

(5) the deduction for capital losses pursuant to sections 1211 and 1212 of the Internal Revenue Code, except that:

(i) for capital losses incurred in taxable years beginning after December 31, 1986, capital loss carrybacks shall not be allowed;

(ii) for capital losses incurred in taxable years beginning after December 31, 1986, a capital loss carryover to each of the 15 taxable years succeeding the loss year shall be allowed;

(iii) for capital losses incurred in taxable years beginning before January 1, 1987, a capital loss carryback to each of the three taxable years preceding the loss year, subject to the provisions of Minnesota Statutes 1986, section 290.16, shall be allowed; and

(iv) for capital losses incurred in taxable years beginning before January 1, 1987, a capital loss carryover to each of the five taxable years succeeding the loss year to the extent such loss was not used in a prior taxable year and subject to the provisions of Minnesota Statutes 1986, section 290.16, shall be allowed;

(6) an amount for interest and expenses relating to income not taxable for federal income tax purposes, if (i) the income is taxable under this chapter and (ii) the interest and expenses were disallowed as deductions under the provisions of section 171(a)(2), 265 or 291 of the Internal Revenue Code in computing federal taxable income;

(7) in the case of mines, oil and gas wells, other natural deposits, and timber for which percentage depletion was disallowed pursuant to subdivision 19c, clause (11), a reasonable allowance for depletion based on actual cost. In the case of leases the deduction must be apportioned between the lessor and lessee in accordance with rules prescribed by the commissioner. In the case of property held in trust, the allowable deduction must be apportioned between the income beneficiaries and the trustee in accordance with the pertinent provisions of the trust, or if there is no provision in the instrument, on the basis of the trust's income allocable to each;

(8) for certified pollution control facilities placed in service in a taxable year beginning before December 31, 1986, and for which amortization deductions were elected under section 169 of the Internal Revenue Code of 1954, as amended through December 31, 1985, an amount equal to the allowance for depreciation under Minnesota Statutes 1986, section 290.09, subdivision 7;

(9) the amount included in federal taxable income attributable to the credits provided in Minnesota Statutes 1986, section 273.1314, subdivision 9, or Minnesota Statutes, section 469.171, subdivision 6;

(10) amounts included in federal taxable income that are due to refunds of income, excise, or franchise taxes based on net income or related minimum taxes paid by the corporation to Minnesota, another state, a political subdivision of another state, the District of Columbia, or a foreign country or possession of the United States to the extent that the taxes were added to federal taxable income under section 290.01, subdivision 19c, clause (1), in a prior taxable year;

(11) the following percentage of royalties, fees, or other like income accrued or received from a foreign operating corporation or a foreign corporation which is part of the same unitary business as the receiving corporation:

Taxable Year

Beginning After .................Percentage

December 31, 1988 ............50 percent

December 31, 1990 ............80 percent;

(12) income or gains from the business of mining as defined in section 290.05, subdivision 1, clause (a), that are not subject to Minnesota franchise tax;


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(13) the amount of handicap access expenditures in the taxable year which are not allowed to be deducted or capitalized under section 44(d)(7) of the Internal Revenue Code of 1986;

(14) the amount of qualified research expenses not allowed for federal income tax purposes under section 280C(c) of the Internal Revenue Code, but only to the extent that the amount exceeds the amount of the credit allowed under section 290.068; and

(15) the amount of salary expenses not allowed for federal income tax purposes due to claiming the Indian employment credit under section 45A(a) of the Internal Revenue Code of 1986, as amended through December 31, 1993; and

(16) to the extent included in federal taxable income for the taxable year, investment income attributable to a medical care savings account, as defined in section 62S.02.

Sec. 11. [EFFECTIVE DATE.]

Sections 1 to 10 (medical savings accounts) are effective January 1, 1996, and apply to all tax years beginning on or after that date."

Renumber the remaining articles

Amend the title accordingly

The motion did not prevail and the amendment was not adopted.

Wejcman moved to amend H. F. No. 1077, the fifth engrossment, as amended, as follows:

Page 171, after line 26, insert:

"Sec. 40. Minnesota Statutes 1994, section 148B.32, subdivision 1, is amended to read:

Subdivision 1. [UNLICENSED PRACTICE PROHIBITED.] After adoption of rules by the board implementing sections 148B.29 to 148B.39, no individual shall engage in marriage and family therapy practice unless that individual holds a valid license issued under sections 148B.29 to 148B.39.

Marriage and family therapy practice is not medical care nor any other type of remedial care that may be reimbursed under medical assistance, chapter 256B, except to the extent such care is reimbursed under section 256B.0625, subdivision 5. Marriage and family therapists may not be reimbursed under medical assistance, chapter 256B, except to the extent such care is reimbursed under section 256B.0625, subdivision 5, or when marriage and family therapists are employed by a managed care organization with a contract to provide mental health care to medical assistance enrollees."

Renumber the sections in sequence and correct the internal references

Amend the title accordingly

The motion prevailed and the amendment was adopted.

Worke and Sykora moved to amend H. F. No. 1077, the fifth engrossment, as amended, as follows:

Pages 113 and 114, delete section 8 and insert:


JOURNAL OF THE HOUSE - 52nd Day - Top of Page 3655

"Sec. 8. Minnesota Statutes 1994, section 256.9354, subdivision 5, is amended to read:

Subd. 5. [ADDITION OF SINGLE ADULTS AND HOUSEHOLDS WITH NO CHILDREN.] (a) Beginning October 1, 1994, "eligible persons" shall include all individuals and households with no children who have gross family incomes that are equal to or less than 125 percent of the federal poverty guidelines and who are not eligible for medical assistance without a spenddown under chapter 256B.

(b) Beginning October 1, 1995, "eligible persons" means all individuals and families who are not eligible for medical assistance without a spenddown under chapter 256B.

(c) All eligible persons under paragraphs (a) and (b) this subdivision are eligible for coverage through the MinnesotaCare program but must pay a premium as determined under sections 256.9357 and 256.9358. Individuals and families whose income is greater than the limits established under section 256.9358 may not enroll in the MinnesotaCare program."

Amend the title accordingly

A roll call was requested and properly seconded.

The question was taken on the Worke and Sykora amendment and the roll was called.

Carruthers moved that those not voting be excused from voting. The motion prevailed.

There were 65 yeas and 66 nays as follows:

Those who voted in the affirmative were:

Abrams       Finseth      Kraus        Onnen        Swenson, D.
Anderson, B. Frerichs     Krinkie      Osskopp      Swenson, H.
Bettermann   Girard       Larsen       Osthoff      Sykora
Bishop       Goodno       Leppik       Ozment       Tompkins
Boudreau     Haas         Lindner      Paulsen      Tuma
Bradley      Hackbarth    Lynch        Pawlenty     Van Dellen
Broecker     Harder       Macklin      Pellow       Van Engen
Commers      Holsten      Mares        Rhodes       Vickerman
Daggett      Hugoson      McElroy      Rostberg     Warkentin
Davids       Johnson, V.  Molnau       Seagren      Weaver
Dehler       Knight       Mulder       Smith        Wolf
Dempsey      Knoblach     Ness         Stanek       Worke
Erhardt      Koppendrayer Olson, M.    Sviggum      Workman 
Those who voted in the negative were:

Bakk         Greenfield   Leighton     Opatz        Skoglund
Bertram      Greiling     Lieder       Orenstein    Solberg
Brown        Hasskamp     Long         Orfield      Tomassoni
Carlson      Hausman      Lourey       Ostrom       Trimble
Carruthers   Huntley      Luther       Otremba      Tunheim
Clark        Jaros        Mahon        Pelowski     Wagenius
Cooper       Jefferson    Mariani      Perlt        Wejcman
Dauner       Johnson, A.  Marko        Peterson     Wenzel
Dawkins      Johnson, R.  McCollum     Pugh         Winter
Delmont      Kahn         McGuire      Rest         Sp.Anderson,I
Dorn         Kalis        Milbert      Rice         
Entenza      Kelley       Munger       Rukavina     
Farrell      Kelso        Murphy       Sarna        
Garcia       Kinkel       Olson, E.    Schumacher   
The motion did not prevail and the amendment was not adopted.

Davids and Onnen moved to amend H. F. No. 1077, the fifth engrossment, as amended, as follows:

Page 18, after line 19, insert:

"Section 1. Minnesota Statutes 1994, section 62D.02, subdivision 4, is amended to read:


JOURNAL OF THE HOUSE - 52nd Day - Top of Page 3656

Subd. 4. [HEALTH MAINTENANCE ORGANIZATION.] (a) "Health maintenance organization" means a nonprofit domestic or foreign corporation organized under chapter 317A, or a local governmental unit as defined in subdivision 11, controlled and operated as provided in sections 62D.01 to 62D.30, which provides, either directly or through arrangements with providers or other persons, comprehensive health maintenance services, or arranges for the provision of these services, to enrollees on the basis of a fixed prepaid sum without regard to the frequency or extent of services furnished to any particular enrollee.

(b) Notwithstanding paragraph (a), an organization licensed as a health maintenance organization that accepts payments for health care services on a capitated basis, or under another similar risk sharing agreement, from a program of self-insurance as described in section 60A.02, subdivision 3, paragraph (b), shall not be regulated as a health maintenance organization with respect to the receipt of the payments. The payments are not premium revenues for the purpose of calculating the health maintenance organization's liability for otherwise applicable state taxes, assessments, or surcharges, with the exception of:

(1) the MinnesotaCare provider tax;

(2) the one percent premium tax imposed in section 60A.15, subdivision 1, paragraph (d); and

(3) effective July 1, 1995, assessments by the Minnesota comprehensive health association.

This paragraph applies only where:

(1) the health maintenance organization does not bear risk in excess of 110 percent of the self-insurance program's expected costs;

(2) the employer does not carry stop loss, excess loss, or similar coverage with an attachment point lower than 120 percent of the self-insurance program's expected costs;

(3) the health maintenance organization and the employer comply with the data submission and administrative simplification provisions of chapter 62J;

(4) the health maintenance organization and the employer comply with the provider tax pass-through provisions of section 295.582;

(5) the health maintenance organization's required minimum reserves reflect the risk borne by the health maintenance organization under this paragraph, with an appropriate adjustment for the 110 percent limit on risk borne by the community network;

(6) on or after July 1, 1994, but prior to January 1, 1995, the employer has at least 1,500 current employees, as defined in section 62L.02, or, on or after January 1, 1995, the employer has at least 750 current employees, as defined in section 62L.02;

(7) the employer does not exclude any eligible employees or their dependents, both as defined in section 62L.02, from coverage offered by the employer, under this paragraph or any other health coverage, insured or self-insured, offered by the employer, on the basis of the health status or health history of the person.

This paragraph expires December 31, 1997.

Sec. 2. Minnesota Statutes 1994, section 62D.03, subdivision 1, is amended to read:

Subdivision 1. [CERTIFICATE OF AUTHORITY.] Notwithstanding any law of this state to the contrary, any nonprofit domestic or foreign corporation organized to do so or a local governmental unit may apply to the commissioner of health for a certificate of authority to establish and operate a health maintenance organization in compliance with sections 62D.01 to 62D.30. No person shall establish or operate a health maintenance organization in this state, nor sell or offer to sell, or solicit offers to purchase or receive advance or periodic consideration in conjunction with a health maintenance organization or health maintenance contract unless the organization has a certificate of authority under sections 62D.01 to 62D.30.

Sec. 3. Minnesota Statutes 1994, section 62D.04, subdivision 1, is amended to read:

Subdivision 1. [DETERMINATION OF REQUIREMENTS.] Upon receipt of an application for a certificate of authority, the commissioner of health shall determine whether the applicant for a certificate of authority has:


JOURNAL OF THE HOUSE - 52nd Day - Top of Page 3657

(a) demonstrated the willingness and potential ability to assure that health care services will be provided in such a manner as to enhance and assure both the availability and accessibility of adequate personnel and facilities;

(b) arrangements for an ongoing evaluation of the quality of health care;

(c) a procedure to develop, compile, evaluate, and report statistics relating to the cost of its operations, the pattern of utilization of its services, the quality, availability and accessibility of its services, and such other matters as may be reasonably required by regulation of the commissioner of health;

(d) reasonable provisions for emergency and out of area health care services;

(e) demonstrated that it is financially responsible and may reasonably be expected to meet its obligations to enrollees and prospective enrollees. In making this determination, the commissioner of health shall require the amounts of net worth and working capital required in section 62D.042, the deposit required in section 62D.041, and in addition shall consider:

(1) the financial soundness of its arrangements for health care services and the proposed schedule of charges used in connection therewith;

(2) arrangements which will guarantee for a reasonable period of time the continued availability or payment of the cost of health care services in the event of discontinuance of the health maintenance organization; and

(3) agreements with providers for the provision of health care services;

(f) demonstrated that it will assume full financial risk on a prospective basis for the provision of comprehensive health maintenance services, including hospital care; provided, however, that the requirement in this paragraph shall not prohibit the following:

(1) a health maintenance organization from obtaining insurance or making other arrangements (i) for the cost of providing to any enrollee comprehensive health maintenance services, the aggregate value of which exceeds $5,000 in any year, (ii) for the cost of providing comprehensive health care services to its members on a nonelective emergency basis, or while they are outside the area served by the organization, or (iii) for not more than 95 percent of the amount by which the health maintenance organization's costs for any of its fiscal years exceed 105 percent of its income for such fiscal years; and

(2) a health maintenance organization from having a provision in a group health maintenance contract allowing an adjustment of premiums paid based upon the actual health services utilization of the enrollees covered under the contract, except that at no time during the life of the contract shall the contract holder fully self-insure the financial risk of health care services delivered under the contract. Risk sharing arrangements shall be subject to the requirements of sections 62D.01 to 62D.30;

(g) demonstrated that it has made provisions for and adopted a conflict of interest policy applicable to all members of the board of directors and the principal officers of the health maintenance organization. The conflict of interest policy shall include the procedures described in section 302A.255, subdivisions 1 and 2, or section 317A.255, subdivisions 1 and 2. However, the commissioner is not precluded from finding that a particular transaction is an unreasonable expense as described in section 62D.19 even if the directors follow the required procedures; and

(h) otherwise met the requirements of sections 62D.01 to 62D.30."

Page 19, after line 3, insert:

"Sec. 5. Minnesota Statutes 1994, section 62N.06, subdivision 1, is amended to read:

Subdivision 1. [AUTHORIZED ENTITIES.] (a) An integrated service network may be organized as a separate nonprofit domestic or foreign corporation under chapter 317A or as a cooperative under chapter 308A.

(b) A nonprofit health carrier, as defined in section 62A.011, may establish and operate one or more integrated service networks without forming a separate corporation or cooperative, but only if all of the following conditions are met:


JOURNAL OF THE HOUSE - 52nd Day - Top of Page 3658

(i) an existing contract between the health carrier and a health care provider, for a term of less than seven years, that does not explicitly mention the provider's relationship within an integrated service network, or a future integrated service network, does not bind the health carrier or provider as applied to integrated service network services, except with the mutual consent of the health carrier and provider. This clause does not apply to contracts between a health carrier and its salaried employees;

(ii) the health carrier shall not apply toward the net worth, working capital, or deposit requirements of this chapter any assets used to satisfy net worth, working capital, deposit, or other financial requirements under any other chapter of Minnesota law;

(iii) the health carrier shall not include in its premiums for health coverage provided under any other chapter of Minnesota law, an assessment or surcharge relating to net worth, working capital, or deposit requirements imposed upon the integrated service network under this chapter; and

(iv) the health carrier shall not include in its premiums for integrated service network coverage under this chapter an assessment or surcharge relating to net worth working capital or deposit requirements imposed upon health coverage offered under any other chapter of Minnesota law."

Renumber the sections in sequence and correct internal references

Amend the title accordingly

A roll call was requested and properly seconded.

The question was taken on the Davids and Onnen amendment and the roll was called.

Johnson, R., moved that those not voting be excused from voting. The motion prevailed.

There were 67 yeas and 63 nays as follows:

Those who voted in the affirmative were:

Abrams       Frerichs     Larsen       Osthoff      Sykora
Anderson, B. Girard       Leppik       Ozment       Tompkins
Bettermann   Goodno       Lindner      Paulsen      Tuma
Bishop       Haas         Lynch        Pawlenty     Van Dellen
Boudreau     Hackbarth    Macklin      Pellow       Van Engen
Bradley      Harder       Mares        Pelowski     Vickerman
Broecker     Holsten      McCollum     Rhodes       Warkentin
Commers      Hugoson      McElroy      Rostberg     Weaver
Daggett      Johnson, V.  Molnau       Seagren      Wolf
Davids       Knight       Mulder       Smith        Worke
Dehler       Knoblach     Ness         Stanek       Workman 
Dempsey      Koppendrayer Olson, M.    Sviggum      
Erhardt      Kraus        Onnen        Swenson, D.  
Finseth      Krinkie      Osskopp      Swenson, H.  
Those who voted in the negative were:

Bakk         Greenfield   Leighton     Opatz        Simoneau
Bertram      Greiling     Lieder       Orenstein    Skoglund
Brown        Hasskamp     Long         Orfield      Solberg
Carlson      Hausman      Lourey       Ostrom       Tomassoni
Clark        Huntley      Luther       Otremba      Trimble
Cooper       Jaros        Mahon        Perlt        Tunheim
Dauner       Jefferson    Mariani      Peterson     Wagenius
Dawkins      Johnson, A.  Marko        Pugh         Wejcman
Delmont      Johnson, R.  McGuire      Rest         Wenzel
Dorn         Kahn         Milbert      Rice         Winter
Entenza      Kalis        Munger       Rukavina     Sp.Anderson,I
Farrell      Kelley       Murphy       Sarna        
Garcia       Kinkel       Olson, E.    Schumacher   
The motion prevailed and the amendment was adopted.


JOURNAL OF THE HOUSE - 52nd Day - Top of Page 3659

Van Dellen offered an amendment to H. F. No. 1077, the fifth engrossment, as amended.

POINT OF ORDER

Skoglund raised a point of order pursuant to rule 3.09 that the Van Dellen amendment was not in order. The Speaker ruled the point of order well taken and the amendment out of order.

Van Dellen appealed the decision of the Chair.

A roll call was requested and properly seconded.

The vote was taken on the question "Shall the decision of the Speaker stand as the judgment of the House?" and the roll was called.

There were 68 yeas and 64 nays as follows:

Those who voted in the affirmative were:

Bakk         Greenfield   Leighton     Opatz        Schumacher
Bertram      Greiling     Lieder       Orenstein    Simoneau
Brown        Hasskamp     Long         Orfield      Skoglund
Carlson      Hausman      Lourey       Osthoff      Solberg
Carruthers   Huntley      Luther       Ostrom       Tomassoni
Clark        Jaros        Mahon        Otremba      Trimble
Cooper       Jefferson    Mariani      Pelowski     Tunheim
Dauner       Johnson, A.  Marko        Perlt        Wagenius
Dawkins      Johnson, R.  McCollum     Peterson     Wejcman
Delmont      Kahn         McGuire      Pugh         Wenzel
Dorn         Kalis        Milbert      Rest         Winter
Entenza      Kelley       Munger       Rice         Sp.Anderson,I
Farrell      Kelso        Murphy       Rukavina     
Garcia       Kinkel       Olson, E.    Sarna        
Those who voted in the negative were:

Abrams       Finseth      Kraus        Onnen        Swenson, H.
Anderson, B. Frerichs     Krinkie      Osskopp      Sykora
Bettermann   Girard       Larsen       Ozment       Tompkins
Bishop       Goodno       Leppik       Paulsen      Tuma
Boudreau     Haas         Lindner      Pawlenty     Van Dellen
Bradley      Hackbarth    Lynch        Pellow       Van Engen
Broecker     Harder       Macklin      Rhodes       Vickerman
Commers      Holsten      Mares        Rostberg     Warkentin
Daggett      Hugoson      McElroy      Seagren      Weaver
Davids       Johnson, V.  Molnau       Smith        Wolf
Dehler       Knight       Mulder       Stanek       Worke
Dempsey      Knoblach     Ness         Sviggum      Workman 
Erhardt      Koppendrayer Olson, M.    Swenson, D.  
So it was the judgment of the House that the decision of the Speaker should stand.

Van Dellen moved to amend H. F. No. 1077, the fifth engrossment, as amended, as follows:

Page 51, after line 15, insert:

"Section 1. Minnesota Statutes 1994, section 62A.65, subdivision 3, is amended to read:

Subd. 3. [PREMIUM RATE RESTRICTIONS.] No individual health plan may be offered, sold, issued, or renewed to a Minnesota resident unless the premium rate charged is determined in accordance with the following requirements:

(a) Premium rates must be no more than 25 percent above and no more than 25 percent below the index rate charged to individuals for the same or similar coverage, adjusted pro rata for rating periods of less than one year. The premium variations permitted by this paragraph must be based only upon health status, claims experience, and occupation. For purposes of this paragraph, health status includes refraining from tobacco use or other actuarially valid lifestyle factors associated with good health, provided that the lifestyle factor and its effect upon premium rates have been determined by the commissioner to be actuarially valid and have been approved by the commissioner.


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Variations permitted under this paragraph must not be based upon age or applied differently at different ages. This paragraph does not prohibit use of a constant percentage adjustment for factors permitted to be used under this paragraph.

(b) Premium rates may vary based upon the ages of covered persons only as provided in this paragraph. In addition to the variation permitted under paragraph (a), each health carrier may use an additional premium variation based upon age of up to plus or minus 50 percent of the index rate.

(c) A health carrier may request approval by the commissioner to establish no more than three geographic regions and to establish separate index rates for each region, provided that the index rates do not vary between any two regions by more than 20 percent. Health carriers that do not do business in the Minneapolis/St. Paul metropolitan area may request approval for no more than two geographic regions, and clauses (2) and (3) do not apply to approval of requests made by those health carriers. The commissioner may grant approval if the following conditions are met:

(1) the geographic regions must be applied uniformly by the health carrier;

(2) one geographic region must be based on the Minneapolis/St. Paul metropolitan area;

(3) for each geographic region that is rural, the index rate for that region must not exceed the index rate for the Minneapolis/St. Paul metropolitan area; and

(4) the health carrier provides actuarial justification acceptable to the commissioner for the proposed geographic variations in index rates, establishing that the variations are based upon differences in the cost to the health carrier of providing coverage.

(d) Health carriers may use rate cells and must file with the commissioner the rate cells they use. Rate cells must be based upon the number of adults or children covered under the policy and may reflect the availability of Medicare coverage. The rates for different rate cells must not in any way reflect generalized differences in expected costs between principal insureds and their spouses.

(e) In developing its index rates and premiums for a health plan, a health carrier shall take into account only the following factors:

(1) actuarially valid differences in rating factors permitted under paragraphs (a) and (b); and

(2) actuarially valid geographic variations if approved by the commissioner as provided in paragraph (c).

(f) All premium variations must be justified in initial rate filings and upon request of the commissioner in rate revision filings. All rate variations are subject to approval by the commissioner.

(g) The loss ratio must comply with the section 62A.021 requirements for individual health plans.

(h) The rates must not be approved, unless the commissioner has determined that the rates are reasonable. In determining reasonableness, the commissioner shall consider the growth rates applied under section 62J.04, subdivision 1, paragraph (b), to the calendar year or years that the proposed premium rate would be in effect, actuarially valid changes in risks associated with the enrollee populations, and actuarially valid changes as a result of statutory changes in Laws 1992, chapter 549."

Page 55, after line 18, insert:

"Sec. 5. Minnesota Statutes 1994, section 62J.17, subdivision 1, is amended to read:

Subdivision 1. [PURPOSE.] To ensure access to affordable health care services for all Minnesotans it is necessary to restrain the rate of growth in health care costs. An important factor believed to contribute to escalating costs may be the purchase of costly new medical equipment, major capital expenditures, and the addition of new specialized services. After spending limits are established under section 62J.04, providers, patients, and communities will have the opportunity to decide for themselves whether they can afford capital expenditures or new equipment or specialized services within the constraints of a spending limit. In this environment, the state's role in reviewing these spending commitments can be more limited. However, during the interim period until spending targets are established, It is important to prevent unrestrained major spending commitments that will contribute further to the


JOURNAL OF THE HOUSE - 52nd Day - Top of Page 3661

escalation of health care costs and make future cost containment efforts more difficult. In addition, it is essential to protect against the possibility that the legislature's expression of its attempt to control health care costs may lead a provider to make major spending commitments before targets or other cost containment constraints are fully implemented because the provider recognizes that the spending commitment may not be considered appropriate, needed, or affordable within the context of a fixed budget for health care spending. Therefore, the legislature finds that a requirement for reporting health care expenditures is necessary.

Sec. 6. Minnesota Statutes 1994, section 62J.22, is amended to read:

62J.22 [PARTICIPATION OF FEDERAL PROGRAMS.]

The commissioner of health shall seek the full participation of federal health care programs under this chapter, including Medicare, medical assistance, veterans administration programs, and other federal programs. The commissioner of human services shall under the direction of the health care commission submit waiver requests and take other action necessary to obtain federal approval to allow participation of the medical assistance program. Other state agencies shall provide assistance at the request of the commission. If federal approval is not given for one or more federal programs, data on the amount of health care spending that is collected under section 62J.04 shall be adjusted so that state and regional spending limits take into account the failure of the federal program to participate.

Sec. 7. Minnesota Statutes 1994, section 62L.08, subdivision 8, is amended to read:

Subd. 8. [FILING REQUIREMENT.] No later than July 1, 1993, and each year thereafter, a health carrier that offers, sells, issues, or renews a health benefit plan for small employers shall file with the commissioner the index rates and must demonstrate that all rates shall be within the rating restrictions defined in this chapter. Such demonstration must include the allowable range of rates from the index rates and a description of how the health carrier intends to use demographic factors including case characteristics in calculating the premium rates. The rates shall not be approved, unless the commissioner has determined that the rates are reasonable. In determining reasonableness, the commissioner shall consider the growth rates applied under section 62J.04, subdivision 1, paragraph (b), to the calendar year or years that the proposed premium rate would be in effect, actuarially valid changes in risk associated with the enrollee population, and actuarially valid changes as a result of statutory changes in Laws 1992, chapter 549. For premium rates proposed to go into effect between July 1, 1993 and December 31, 1993, the pertinent growth rate is the growth rate applied under section 62J.04, subdivision 1, paragraph (b), to calendar year 1994.

Sec. 8. Minnesota Statutes 1994, section 62N.05, subdivision 2, is amended to read:

Subd. 2. [REQUIREMENTS.] The commissioner shall include in the rules requirements that will ensure that the annual rate of growth of an integrated service network's aggregate total revenues received from purchasers and enrollees, after adjustments for changes in population size and risk, does not exceed the growth limit established in section 62J.04. A network's aggregate total revenues for purposes of these growth limits are net of the contributions, surcharges, taxes, and assessments listed in section 62P.04, subdivision 2, that the network pays. The commissioner may include in the rules the following:

(1) requirements for licensure, including a fee for initial application and an annual fee for renewal;

(2) quality standards;

(3) requirements for availability and comprehensiveness of services;

(4) requirements regarding the defined population to be served by an integrated service network;

(5) requirements for open enrollment;

(6) provisions for incentives for networks to accept as enrollees individuals who have high risks for needing health care services and individuals and groups with special needs;

(7) prohibitions against disenrolling individuals or groups with high risks or special needs;

(8) requirements that an integrated service network provide to its enrollees information on coverage, including any limitations on coverage, deductibles and copayments, optional services available and the price or prices of those services, any restrictions on emergency services and services provided outside of the network's service area, any


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responsibilities enrollees have, and describing how an enrollee can use the network's enrollee complaint resolution system;

(9) requirements for financial solvency and stability;

(10) a deposit requirement;

(11) financial reporting and examination requirements;

(12) limits on copayments and deductibles;

(13) mechanisms to prevent and remedy unfair competition;

(14) provisions to reduce or eliminate undesirable barriers to the formation of new integrated service networks;

(15) requirements for maintenance and reporting of information on costs, prices, revenues, volume of services, and outcomes and quality of services;

(16) a provision allowing an integrated service network to set credentialing standards for practitioners employed by or under contract with the network;

(17) a requirement that an integrated service network employ or contract with practitioners and other health care providers, and minimum requirements for those contracts if the commissioner deems requirements to be necessary to ensure that each network will be able to control expenditures and revenues or to protect enrollees and potential enrollees;

(18) provisions regarding liability for medical malpractice;

(19) provisions regarding permissible and impermissible underwriting criteria applicable to the standard set of benefits;

(20) a method or methods to facilitate and encourage appropriate provision of services by midlevel practitioners and pharmacists;

(21) a method or methods to assure that all integrated service networks are subject to the same regulatory requirements. All health carriers, including health maintenance organizations, insurers, and nonprofit health service plan corporations shall be regulated under the same rules, to the extent that the health carrier is operating an integrated service network or is a participating entity in an integrated service network;

(22) provisions for appropriate risk adjusters or other methods to prevent or compensate for adverse selection of enrollees into or out of an integrated service network; and

(23) rules prescribing standard measures and methods by which integrated service networks shall determine and disclose their prices, copayments, deductibles, out-of-pocket limits, enrollee satisfaction levels, and anticipated loss ratios.

Sec. 9. Minnesota Statutes 1994, section 62N.381, subdivision 2, is amended to read:

Subd. 2. [RANGE OF RATES.] The reimbursement rate negotiated for a contract period must not be more than 20 percent above or below the individual ambulance service's current customary charges, plus the a rate of growth allowed under section 62J.04, subdivision 1 determined by the commissioner. If the network and ambulance service cannot agree on a reimbursement rate, each party shall submit their rate proposal along with supportive data to the commissioner."

Page 57, after line 24, insert:

"Sec. 11. [REPEALER; GROWTH LIMITS.]

Minnesota Statutes 1994, sections 62J.04, subdivisions 1, 1a, 7, and 9; 62P.04; and 62P.05 are repealed."

Page 65, line 3, strike everything after "(1)"

Page 65, strike lines 4 to 7


JOURNAL OF THE HOUSE - 52nd Day - Top of Page 3663

Page 65, line 8, strike "(2)"

Page 65, line 13, strike everything after "systems"

Page 65, line 14, strike everything before the semicolon

Renumber the clauses in sequence

Page 68, line 25, delete everything after "(3)"

Page 68, delete lines 26 and 27

Page 68, line 28, delete "(4)"

Renumber the clauses in sequence

Page 77, line 36, and page 78, line 1, delete "setting spending limits,"

Page 78, line 26, strike "setting spending limits,"

Page 79, line 29, strike "setting spending limits,"

Renumber the sections in sequence and correct internal references

Amend the title accordingly

A roll call was requested and properly seconded.

The question was taken on the Van Dellen amendment and the roll was called. There were 62 yeas and 70 nays as follows:

Those who voted in the affirmative were:

Abrams       Finseth      Kraus        Osskopp      Tompkins
Anderson, B. Frerichs     Krinkie      Ozment       Tuma
Bettermann   Girard       Larsen       Paulsen      Van Dellen
Bishop       Goodno       Lindner      Pawlenty     Van Engen
Boudreau     Haas         Lynch        Pellow       Vickerman
Bradley      Hackbarth    Macklin      Rostberg     Warkentin
Broecker     Harder       Mares        Seagren      Weaver
Commers      Holsten      McElroy      Smith        Wolf
Daggett      Hugoson      Molnau       Stanek       Worke
Davids       Johnson, V.  Mulder       Sviggum      Workman 
Dehler       Knight       Ness         Swenson, D.  
Dempsey      Knoblach     Olson, M.    Swenson, H.  
Erhardt      Koppendrayer Onnen        Sykora       
Those who voted in the negative were:

Bakk         Greiling     Lieder       Orfield      Skoglund
Bertram      Hasskamp     Long         Osthoff      Solberg
Brown        Hausman      Lourey       Ostrom       Tomassoni
Carlson      Huntley      Luther       Otremba      Trimble
Carruthers   Jaros        Mahon        Pelowski     Tunheim
Clark        Jefferson    Mariani      Perlt        Wagenius
Cooper       Johnson, A.  Marko        Peterson     Wejcman
Dauner       Johnson, R.  McCollum     Pugh         Wenzel
Dawkins      Kahn         McGuire      Rest         Winter
Delmont      Kalis        Milbert      Rhodes       Sp.Anderson,I
Dorn         Kelley       Munger       Rice         
Entenza      Kelso        Murphy       Rukavina     
Farrell      Kinkel       Olson, E.    Sarna        
Garcia       Leighton     Opatz        Schumacher   
Greenfield   Leppik       Orenstein    Simoneau     
The motion did not prevail and the amendment was not adopted.


JOURNAL OF THE HOUSE - 52nd Day - Top of Page 3664

Seagren moved to amend H. F. No. 1077, the fifth engrossment, as amended, as follows:

Page 19, after line 3, insert:

"Sec. 2. Minnesota Statutes 1994, section 62P.04, subdivision 1, is amended to read:

Subdivision 1. [DEFINITIONS.] (a) For purposes of this section, the following definitions apply.

(b) "Health plan company" has the definition provided in section 62Q.01.

(c) "Total expenditures" means incurred claims or expenditures on health care services, excluding health care expenditures paid for through a back-up supplemental health benefit policy, administrative expenses, charitable contributions, and all other payments made by health plan companies out of premium revenues.

(d) "Net expenditures" means total expenditures minus exempted taxes and assessments and payments or allocations made to establish or maintain reserves.

(e) "Exempted taxes and assessments" means direct payments for taxes to government agencies, contributions to the Minnesota comprehensive health association, the medical assistance provider's surcharge under section 256.9657, the MinnesotaCare provider tax under section 295.52, assessments by the health coverage reinsurance association, assessments by the Minnesota life and health insurance guaranty association, assessments by the Minnesota risk adjustment association, and any new assessments imposed by federal or state law.

(f) "Consumer cost-sharing or subscriber liability" means enrollee coinsurance, copayment, deductible payments, and amounts in excess of benefit plan maximums."

Page 46, after line 4, insert:

"Subdivision 1. [AVAILABLE POLICIES.]"

Page 46, line 8, after the period insert "Notwithstanding any other provision of law, health plan companies may also choose to offer a back-up supplemental health policy as defined below."

Page 46, after line 18, insert:

"Subd. 2. [BACK-UP SUPPLEMENTAL HEALTH BENEFIT POLICY.] The term "back-up supplemental health benefit policy" means an unlimited choice of provider plan offered on a regional or multiregional basis, which provides under circumstances specified by the policy, coverage for some or all services and items included in the standard health coverage established under chapter 62Q or 62E, in individual cases when, although offered as a legitimate treatment by a physician, they are denied by the insurer or the health plan company or the utilization review organization on the ground that the service or item is not medically necessary or appropriate, on the ground that the service or item is inconsistent with medically appropriate guidelines or practice parameters, or on other grounds under which denial of an item or service covered by the standard health coverage is permitted."

Renumber the sections in sequence and correct internal references

Amend the title accordingly

The motion prevailed and the amendment was adopted.

Greiling moved to amend H. F. No. 1077, the fifth engrossment, as amended, as follows:

Page 111, lines 1 to 3, delete the new language, and insert:

"MinnesotaCare covers abortion services, if one of the following conditions is met:

(a) The abortion is a medical necessity. "Medical necessity" means (1) the signed written statement of two physicians indicating the abortion is medically necessary to prevent the death of or irreversible physical harm to the mother, and (2) the patient has given her consent to the abortion in writing unless the patient is physically or legally


JOURNAL OF THE HOUSE - 52nd Day - Top of Page 3665

incapable of providing informed consent to the procedure, in which case consent will be given as otherwise provided by law;

(b) The pregnancy is the result of criminal sexual conduct as defined in section 609.342, clauses (c), (d), (e)(i), and (f), and the incident is reported to a valid law enforcement agency for investigation prior to the abortion;

(c) The pregnancy is the result of incest, but only if the incident and relative are reported to a valid law enforcement agency for investigation prior to the abortion; or

(d) The fetus suffers from a severe fetal anomaly."

A roll call was requested and properly seconded.

Van Dellen moved to amend the Greiling amendment to H. F. No. 1077, the fifth engrossment, as amended, as follows:

Page 1, delete lines 4 to 21 and insert:

"MinnesotaCare shall not cover "elective abortions." For purposes of this requirement, "elective abortion" means an abortion other than where, in the professional judgment of the attending physician, which is a medical judgment that would be made by a reasonably prudent physician, knowledgeable about the case and the treatment possibilities with respect to the medical conditions involved, the life of the female would be endangered or substantial and irreversible impairment of a major bodily function would result if the fetus were carried to term; where the pregnancy is the result of conduct which constitutes criminal sexual conduct in the first or third degree, and the incident is reported within 48 hours after the victim becomes physically able to report the rape; or where the pregnancy is the result of incest and the incident and relative are reported to a valid law enforcement agency prior to the abortion."

A roll call was requested and properly seconded.

The question was taken on the amendment to the amendment and the roll was called. There were 77 yeas and 54 nays as follows:

Those who voted in the affirmative were:

Anderson, B. Goodno       Larsen       Otremba      Sykora
Bertram      Haas         Lieder       Ozment       Tompkins
Bettermann   Hackbarth    Lindner      Paulsen      Tuma
Boudreau     Harder       Lynch        Pawlenty     Van Dellen
Bradley      Hasskamp     Macklin      Pellow       Van Engen
Broecker     Holsten      Mares        Pelowski     Vickerman
Brown        Hugoson      McElroy      Pugh         Warkentin
Commers      Johnson, V.  Molnau       Rostberg     Weaver
Cooper       Kalis        Mulder       Schumacher   Wenzel
Daggett      Kelso        Murphy       Seagren      Winter
Dauner       Kinkel       Ness         Smith        Wolf
Davids       Knight       Olson, E.    Solberg      Worke
Dehler       Knoblach     Olson, M.    Stanek       Workman 
Dempsey      Koppendrayer Onnen        Sviggum      
Finseth      Kraus        Opatz        Swenson, D.  
Girard       Krinkie      Osskopp      Swenson, H.  
Those who voted in the negative were:

Abrams       Farrell      Kahn         McGuire      Rukavina
Bakk         Frerichs     Kelley       Munger       Sarna
Bishop       Garcia       Leighton     Orenstein    Simoneau
Carlson      Greenfield   Leppik       Orfield      Skoglund
Carruthers   Greiling     Long         Osthoff      Tomassoni
Clark        Hausman      Lourey       Ostrom       Trimble
Dawkins      Huntley      Luther       Perlt        Tunheim
Delmont      Jaros        Mahon        Peterson     Wagenius
Dorn         Jefferson    Mariani      Rest         Wejcman
Entenza      Johnson, A.  Marko        Rhodes       Sp.Anderson,I
Erhardt      Johnson, R.  McCollum     Rice         
The motion prevailed and the amendment to the amendment was adopted.


JOURNAL OF THE HOUSE - 52nd Day - Top of Page 3666

Greiling requested that her amendment, as amended, be withdrawn. The request was granted.

Kelley, Greiling, Long, Kahn, Leppik, Rhodes and Perlt moved to amend H. F. No. 1077, the fifth engrossment, as amended, as follows:

Pages 110 and 111, delete section 4

Renumber the sections in sequence and correct internal references

Amend the title accordingly

A roll call was requested and properly seconded.

The question was taken on the Kelley et al amendment and the roll was called.

Carruthers moved that those not voting be excused from voting. The motion prevailed.

There were 44 yeas and 87 nays as follows:

Those who voted in the affirmative were:

Bakk         Farrell      Kahn         McGuire      Rukavina
Bishop       Garcia       Kelley       Munger       Simoneau
Carlson      Greenfield   Leppik       Orenstein    Skoglund
Carruthers   Greiling     Long         Orfield      Solberg
Clark        Hausman      Lourey       Osthoff      Tomassoni
Dawkins      Huntley      Luther       Ostrom       Trimble
Delmont      Jaros        Mahon        Perlt        Wagenius
Entenza      Jefferson    Marko        Rest         Wejcman 
Erhardt      Johnson, A.  McCollum     Rhodes       
Those who voted in the negative were:

Abrams       Girard       Larsen       Otremba      Sykora
Anderson, B. Goodno       Leighton     Ozment       Tompkins
Bertram      Haas         Lieder       Paulsen      Tuma
Bettermann   Hackbarth    Lindner      Pawlenty     Tunheim
Boudreau     Harder       Lynch        Pellow       Van Dellen
Bradley      Hasskamp     Macklin      Pelowski     Van Engen
Broecker     Holsten      Mares        Peterson     Vickerman
Brown        Hugoson      McElroy      Pugh         Warkentin
Commers      Johnson, R.  Milbert      Rice         Weaver
Cooper       Johnson, V.  Molnau       Rostberg     Wenzel
Daggett      Kalis        Mulder       Sarna        Winter
Dauner       Kelso        Murphy       Schumacher   Wolf
Davids       Kinkel       Ness         Seagren      Worke
Dehler       Knight       Olson, E.    Smith        Workman
Dempsey      Knoblach     Olson, M.    Stanek       Sp.Anderson,I
Dorn         Koppendrayer Onnen        Sviggum      
Finseth      Kraus        Opatz        Swenson, D.  
Frerichs     Krinkie      Osskopp      Swenson, H.  
The motion did not prevail and the amendment was not adopted.

Onnen moved to amend H. F. No. 1077, the fifth engrossment, as amended, as follows:

Page 108, after line 31, insert:

"Subd. 9. [RECOMMENDATIONS ON PROGRAM EXPANSION.] The commissioner of human services, in consultation with the commissioner of administration, shall study approaches to expand eligibility for the senior drug discount program by removing the limit on household income. The commissioner shall examine methods of encouraging participation by drug manufacturers in the program and any program modifications necessary to effectively serve an increased number of senior citizens. The commissioner shall present recommendations to the legislature by January 15, 1996."

The motion prevailed and the amendment was adopted.


JOURNAL OF THE HOUSE - 52nd Day - Top of Page 3667

Van Dellen and Simoneau moved to amend H. F. No. 1077, the fifth engrossment, as amended, as follows:

Page 120, delete lines 13 to 18 and insert "120 percent of expected claims"

Page 121, delete section 3

Renumber the sections in sequence and correct internal references

Amend the title accordingly

The motion prevailed and the amendment was adopted.

The Speaker called Trimble to the Chair.

Tompkins moved to amend H. F. No. 1077, the fifth engrossment, as amended, as follows:

Page 40, line 13, after the period, insert "The standard health coverage must include coverage for personal care services, nursing home care for the terminally ill, and hospice care."

The motion did not prevail and the amendment was not adopted.

The Speaker resumed the Chair.

Davids, Weaver, Lynch, Sykora, Wolf, Bettermann, Larsen, Broecker, Mares, Workman, Pugh, Milbert and Van Engen offered an amendment to H. F. No. 1077, the fifth engrossment, as amended.

Wenzel requested a division of the Davids et al amendment to H. F. No. 1077, the fifth engrossment, as amended.

The first portion of the Davids et al amendment to H. F. No. 1077, the fifth engrossment, as amended, reads as follows:

Page 215, after line 14, insert:

"ARTICLE 11

RIGHT TO KNOW ACT

Section 1. [145.4245] [WOMAN'S RIGHT TO KNOW ACT.]

Subdivision 1. [DEFINITIONS.] As used in this act, the following terms have the meaning given:

(a) "Abortion" means the use or prescription of any instrument, medicine, drug, or any other substance or device intentionally to terminate the pregnancy of a female known to be pregnant, with an intention other than to increase the probability of a live birth, to preserve the life or health of the child after live birth, or to remove a dead fetus.

(b) "Attempt to perform an abortion" means an act, or an omission of a statutorily required act, that, under the circumstances as the actor believes them to be, constitutes a substantial step in a course of conduct planned to culminate in the performance of an abortion in Minnesota in violation of this act.

(c) "Medical emergency" means any condition which, on the basis of the physician's good faith clinical judgment, so complicates the medical condition of a pregnant female as to necessitate the immediate abortion of her pregnancy to avert her death or for which a delay will create serious risk of substantial and irreversible impairment of a major bodily function.


JOURNAL OF THE HOUSE - 52nd Day - Top of Page 3668

(d) "Physician" means a person licensed under chapter 147.

(e) "Probable gestational age of the unborn child" means what, in the judgment of the physician, will with reasonable probability be the gestational age of the unborn child at the time the abortion is planned to be performed.

Subd. 2. [INFORMED CONSENT.] No abortion shall be performed in this state except with the voluntary and informed consent of the female upon whom the abortion is to be performed. Except in the case of a medical emergency, consent to an abortion is voluntary and informed only if:

(a) The female is told the following, by telephone or in person, by the physician who is to perform the abortion or by a referring physician, at least 24 hours before the abortion:

(1) the name of the physician who will perform the abortion;

(2) the particular medical risks associated with the particular abortion procedure to be employed including, when medically accurate, the risks of infection, hemorrhage, breast cancer, danger to subsequent pregnancies, and infertility;

(3) the probable gestational age of the unborn child at the time the abortion is to be performed; and

(4) the medical risks associated with carrying her child to term.

The information required by this section may be provided by telephone without conducting a physical examination or tests of the patient, in which case the information required to be provided may be based on facts supplied the physician by the female and whatever other relevant information is reasonably available to the physician. It may not be provided by a tape recording, but must be provided during a consultation in which the physician is able to ask questions of the female and the female is able to ask questions of the physician. If a physical examination, tests, or the availability of other information to the physician subsequently indicate, in the medical judgment of the physician, a revision of the information previously supplied to the patient, that revised information may be communicated to the patient at any time prior to the performance of the abortion. Nothing in this section may be construed to preclude provision of required information in a language understood by the patient through a translator.

(b) The female is informed, by telephone or in person, by the physician who is to perform the abortion, by a referring physician, or by an agent of either physician at least 24 hours before the abortion:

(1) that medical assistance benefits may be available for prenatal care, childbirth, and neonatal care;

(2) that the father is liable to assist in the support of her child, even in instances in which the father has offered to pay for the abortion; and

(3) that she has the right to review the printed materials described in section 145.4246. The physician or the physician's agent shall orally inform the female the materials have been provided by the state of Minnesota and that they describe the unborn child and list agencies which offer alternatives to abortion. If the female chooses to view the materials, they shall either be given to her at least 24 hours before the abortion or mailed to her at least 72 hours before the abortion by certified mail, restricted delivery to addressee, which means the postal employee can only deliver the mail to the addressee.

The information required by this section may be provided by a tape recording if provision is made to record or otherwise register specifically whether the female does or does not choose to review the printed materials.

(c) The female certifies in writing, prior to the abortion, that the information described in this section has been furnished her, and that she has been informed of her opportunity to review the information referred to in paragraph (b).

(d) Prior to the performance of the abortion, the physician who is to perform the abortion or the physician's agent receives a copy of the written certification prescribed by paragraph (c).

(e) The female shall initial each item of the printed form to indicate that she has received the required information or has waived that right.

Sec. 2. [145.4246] [PRINTED INFORMATION.]

Within 90 days after this act is enacted, the department of health shall cause to be published, in English and in each language which is the primary language of two percent or more of the state's population, the following printed materials in such a way as to ensure that the information is easily comprehensible:


JOURNAL OF THE HOUSE - 52nd Day - Top of Page 3669

(1) geographically indexed materials designed to inform the female of public and private agencies and services available to assist a female through pregnancy, upon childbirth, and while the child is dependent, including adoption agencies, which shall include a comprehensive list of the agencies available, a description of the services they offer, and a description of the manner, including telephone numbers, in which they might be contacted or, at the option of the department of health, printed materials including a toll-free, 24-hour a day telephone number which may be called to obtain, orally, such a list and description of agencies in the locality of the caller and of the services they offer; and

(2) materials designed to inform the female of the probable anatomical and physiological characteristics of the unborn child at two-week gestational increments from the time when a female can be known to be pregnant to full term, including any relevant information on the possibility of the unborn child's survival and pictures or drawings representing the development of unborn children at two-week gestational increments, provided that any such pictures or drawings must contain the dimensions of the fetus and must be realistic and appropriate for the stage of pregnancy depicted. The materials shall be objective, nonjudgmental, and designed to convey only accurate scientific information about the unborn child at the various gestational ages. The material shall also contain objective information describing the methods of abortion procedures commonly employed, the medical risks commonly associated with each procedure, the possible detrimental psychological effects of abortion, and the medical risks commonly associated with each procedure and the medical risks commonly associated with carrying a child to term.

The materials referred to in this section must be printed in a typeface large enough to be clearly legible. The materials required under this section must be available at no cost from the department of health upon request and in appropriate number to any person, facility, or hospital.

Sec. 3. [145.4247] [PROCEDURE IN CASE OF MEDICAL EMERGENCY.]

When a medical emergency compels the performance of an abortion, the physician shall inform the female, prior to the abortion if possible, of the medical indications supporting the physician's judgment that an abortion is necessary to avert her death or that a 24-hour delay will create serious risk of substantial and irreversible impairment of a major bodily function.

Sec. 4. [145.4248] [REMEDIES.]

Subdivision 1. [CIVIL REMEDIES.] (a) Any person upon whom an abortion has been performed or the parent of a minor upon whom an abortion has been performed may maintain an action against the person who performed the abortion in knowing or reckless violation of this act for actual and punitive damages. Any person upon whom an abortion has been attempted without complying with this act may maintain an action against the person who attempted to perform the abortion in knowing or reckless violation of this act for actual and punitive damages.

(b) If judgment is rendered in favor of the plaintiff in any action described in this section, the court shall also render judgment for a reasonable attorney's fee in favor of the plaintiff against the defendant. If judgment is rendered in favor of the defendant and the court finds that the plaintiff's suit was frivolous and brought in bad faith, the court shall also render judgment for a reasonable attorney's fee in favor of the defendant against the plaintiff.

(c) The female on whom an abortion is performed or the parent of a minor upon whom an abortion has been performed may maintain an action against the person who performed the abortion for triple any actual damages she may have sustained as a result of a violation of this article.

(d) A failure to give the female information required by this article is prima facie evidence of failure to obtain informed consent in an appropriate civil action.

(e) The court may enter any injunctive or other equitable relief that it considers appropriate as a result of a violation of this article."

Renumber the articles in sequence

Amend the title accordingly

A roll call was requested and properly seconded.


JOURNAL OF THE HOUSE - 52nd Day - Top of Page 3670

POINT OF ORDER

Wenzel raised a point of order pursuant to rule 3.10 that the first portion of the Davids et al amendment was not in order. The Speaker ruled the point of order well taken and the first portion of the amendment out of order.

Weaver appealed the decision of the Chair.

A roll call was requested and properly seconded.

The vote was taken on the question "Shall the decision of the Speaker stand as the judgment of the House?" and the roll was called.

Carruthers moved that those not voting be excused from voting. The motion prevailed.

There were 77 yeas and 54 nays as follows:

Those who voted in the affirmative were:

Abrams       Greenfield   Leppik       Orenstein    Simoneau
Bakk         Greiling     Lieder       Orfield      Skoglund
Bertram      Hasskamp     Long         Osthoff      Smith
Bishop       Hausman      Lourey       Ostrom       Solberg
Brown        Huntley      Luther       Otremba      Tomassoni
Carlson      Jaros        Macklin      Ozment       Tompkins
Carruthers   Jefferson    Mahon        Pelowski     Trimble
Clark        Johnson, A.  Mariani      Perlt        Tunheim
Cooper       Johnson, R.  Marko        Peterson     Wagenius
Dauner       Kahn         McCollum     Pugh         Wejcman
Dawkins      Kalis        McGuire      Rest         Wenzel
Delmont      Kelley       Milbert      Rhodes       Winter
Dorn         Kelso        Munger       Rice         Sp.Anderson,I
Entenza      Kinkel       Murphy       Rukavina     
Farrell      Knight       Olson, E.    Sarna        
Garcia       Leighton     Opatz        Schumacher   
Those who voted in the negative were:

Anderson, B. Finseth      Koppendrayer Onnen        Sykora
Bettermann   Frerichs     Kraus        Osskopp      Tuma
Boudreau     Girard       Krinkie      Paulsen      Van Dellen
Bradley      Goodno       Larsen       Pawlenty     Van Engen
Broecker     Haas         Lindner      Pellow       Vickerman
Commers      Hackbarth    Lynch        Rostberg     Warkentin
Daggett      Harder       Mares        Seagren      Weaver
Davids       Holsten      McElroy      Stanek       Wolf
Dehler       Hugoson      Molnau       Sviggum      Worke
Dempsey      Johnson, V.  Mulder       Swenson, D.  Workman 
Erhardt      Knoblach     Olson, M.    Swenson, H.  
So it was the judgment of the House that the decision of the Speaker should stand.

Davids withdrew the second portion of his amendment to H. F. No. 1077, the fifth engrossment, as amended.

Ness moved to amend H. F. No. 1077, the fifth engrossment, as amended, as follows:

Page 47, after line 31, insert:

"Sec. 32. [62Q.42] [OPEN ACCESS TO UNIVERSITY OF MINNESOTA HOSPITAL AND CLINICS.]

This section is intended to provide an adequate patient base for hospitals and clinics affiliated with the University of Minnesota, in order to ensure that these facilities continue to provide: (1) high quality patient care; and (2) high quality research and training opportunities for health care professionals.


JOURNAL OF THE HOUSE - 52nd Day - Top of Page 3671

Sec. 33. [STUDY.]

The MinnesotaCare finance division of the health and human services committee of the house of representatives shall study and report to the health and human services committee prior to the 1996 session of the legislature on whether the intent expressed in Minnesota Statutes, section 62Q.42, is being carried out."

Renumber the sections in sequence and correct internal references

Amend the title accordingly

The motion prevailed and the amendment was adopted.

Winter moved to amend H. F. No. 1077, the fifth engrossment, as amended, as follows:

Page 40, line 31, after the period, insert "The commissioners of health and commerce shall also report to the legislature on the final definition of standard coverage by January 31, 1996. This report must include actuarially determined estimates of the cost of the standard coverage and the five cost-sharing options."

The motion did not prevail and the amendment was not adopted.

Bradley and Hasskamp moved to amend H. F. No. 1077, the fifth engrossment, as amended, as follows:

Page 144, before line 1, insert:

"Sec. 29. [STUDY OF MEDICAL SAVINGS ACCOUNTS.]

The commissioner of commerce shall analyze the effects of medical savings accounts, as specified in this section and provide to the legislature a written report and recommendation, in compliance with sections 3.195 and 3.197, on or before January 1, 1996. The study and report must not duplicate work done by the commissioner of health in preparing the study required under Laws 1993, chapter 345, article 5, section 13.

The analysis, report, and recommendations required by this section must focus on, but not necessarily be limited to, analysis of the following:

(1) the experience to date of other states that have enacted medical savings account legislation;

(2) the characteristics and experience of insurers and other firms that have administered medical savings accounts, employers that have sponsored medical savings accounts, and enrollees;

(3) utilization of medical savings accounts, and the results of any satisfaction surveys that have been done;

(4) the potential of medical savings accounts to contribute to health care cost containment, through incentives to use health care efficiently and through attainment of high loss ratios;

(5) the potential of medical savings accounts to increase the number of Minnesotans who have health coverage;

(6) the extent, if any, to which medical savings accounts would cause adverse selection against other types of health plans. The analysis must recommend possible means of minimizing or adjusting for any such additional adverse selection; and

(7) the effects of including medical savings accounts in the risk adjustment system to be developed under section 62Q.03. The commissioner shall consult with the Risk Adjustment Association, which shall assist the commissioner in this aspect of the commissioner's analysis."

The motion did not prevail and the amendment was not adopted.


JOURNAL OF THE HOUSE - 52nd Day - Top of Page 3672

Mulder moved to amend H. F. No. 1077, the fifth engrossment, as amended, as follows:

Page 182, after line 7, insert:

"Sec. 8. Minnesota Statutes 1994, section 295.52, is amended by adding a subdivision to read:

Subd. 8. [EXEMPTION FOR CERTAIN PHARMACIES.] Independent pharmacies in communities with a population under 10,000 are exempt from the health care provider tax imposed by this section."

Renumber the sections in sequence and correct internal references

Amend the title accordingly

A roll call was requested and properly seconded.

The question was taken on the Mulder amendment and the roll was called. There were 59 yeas and 73 nays as follows:

Those who voted in the affirmative were:

Anderson, B. Dehler       Kraus        Otremba      Swenson, H.
Bakk         Dempsey      Krinkie      Paulsen      Tomassoni
Bertram      Frerichs     Leighton     Pawlenty     Tompkins
Bettermann   Girard       Lindner      Pellow       Tuma
Bishop       Hackbarth    Lynch        Peterson     Van Dellen
Boudreau     Harder       Macklin      Rostberg     Van Engen
Bradley      Hugoson      Molnau       Rukavina     Vickerman
Broecker     Jaros        Mulder       Schumacher   Warkentin
Commers      Johnson, V.  Ness         Smith        Wolf
Daggett      Kalis        Olson, M.    Stanek       Worke
Dauner       Knight       Onnen        Sviggum      Workman 
Davids       Koppendrayer Osskopp      Swenson, D.  
Those who voted in the negative were:

Abrams       Greenfield   Larsen       Murphy       Seagren
Brown        Greiling     Leppik       Olson, E.    Simoneau
Carlson      Haas         Lieder       Opatz        Skoglund
Carruthers   Hasskamp     Long         Orenstein    Solberg
Clark        Hausman      Lourey       Orfield      Sykora
Cooper       Holsten      Luther       Osthoff      Trimble
Dawkins      Huntley      Mahon        Ostrom       Tunheim
Delmont      Jefferson    Mares        Ozment       Wagenius
Dorn         Johnson, A.  Mariani      Pelowski     Weaver
Entenza      Johnson, R.  Marko        Perlt        Wejcman
Erhardt      Kahn         McCollum     Pugh         Wenzel
Farrell      Kelley       McElroy      Rest         Winter
Finseth      Kelso        McGuire      Rhodes       Sp.Anderson,I
Garcia       Kinkel       Milbert      Rice         
Goodno       Knoblach     Munger       Sarna        
The motion did not prevail and the amendment was not adopted.

Abrams moved to amend H. F. No. 1077, the fifth engrossment, as amended, as follows:

Page 146, after line 1, insert:

"Sec. 3. Minnesota Statutes 1994, section 62J.051, is amended to read:

62J.051 [DISTRIBUTION OF HEALTH CARE TECHNOLOGY, FACILITIES, AND FUNCTIONS; PUBLIC FORUMS.]

The commission may promote and facilitate an open, voluntary, nonregulatory, and public process for regional and statewide discussion regarding the appropriate distribution of health care technologies, facilities, and functions. The process must include the participation of consumers, employers and other group purchasers, providers, health plan companies, and the health care technology industry. The commission shall ensure opportunities for broad-based public input from other interested persons and organizations as well. The purpose of the process is to create an open


JOURNAL OF THE HOUSE - 52nd Day - Top of Page 3673

public forum with the goal of facilitating collaboration for the distribution of a particular technology, facility, or function to achieve health reform goals. Participation in the forums is voluntary and agreements or distribution plans that may be recommended through this process are not mandatory or binding on any person or organization. The recommendations may be considered by the commissioner of health for purposes of the antitrust exception process under sections 62J.2911 to 62J.2921, and the process for reviewing major spending commitments under section 62J.17, but are not binding on the commissioner. The commission may develop criteria for selecting specific technologies, facilities, and functions for discussion and may establish procedures and ground rules for discussion and the development of recommended agreements or distribution plans. The commission may appoint advisory committees to facilitate discussion and planning and may request that regional coordinating boards serve as or convene regional public forums."

Page 178, after line 29, insert:

"Minnesota Statutes, sections 62J.2911, 62J.2912, 62J.2913, 62J.2914, 62J.2915, 62J.2916, 62J.2917, 62J.2918, 62J.2919, 62J.2920, and 62J.2921 are repealed."

Renumber the sections in sequence and correct internal references

Amend the title accordingly

A roll call was requested and properly seconded.

The question was taken on the Abrams amendment and the roll was called. There were 66 yeas and 66 nays as follows:

Those who voted in the affirmative were:

Abrams       Frerichs     Kraus        Paulsen      Tuma
Anderson, B. Girard       Krinkie      Pawlenty     Van Dellen
Bettermann   Goodno       Lindner      Pellow       Van Engen
Boudreau     Greiling     Lynch        Perlt        Vickerman
Broecker     Haas         Mares        Rice         Warkentin
Clark        Hackbarth    Marko        Rostberg     Weaver
Commers      Harder       McElroy      Rukavina     Wejcman
Daggett      Hausman      McGuire      Seagren      Wolf
Dauner       Holsten      Molnau       Stanek       Worke
Dawkins      Hugoson      Olson, M.    Sviggum      Workman 
Dehler       Jefferson    Onnen        Swenson, D.  
Dempsey      Johnson, V.  Osskopp      Swenson, H.  
Erhardt      Knight       Osthoff      Sykora       
Finseth      Koppendrayer Ozment       Tomassoni    
Those who voted in the negative were:

Bakk         Greenfield   Leppik       Olson, E.    Skoglund
Bertram      Hasskamp     Lieder       Opatz        Smith
Bishop       Huntley      Long         Orenstein    Solberg
Bradley      Jaros        Lourey       Orfield      Tompkins
Brown        Johnson, A.  Luther       Ostrom       Trimble
Carlson      Johnson, R.  Macklin      Otremba      Tunheim
Carruthers   Kahn         Mahon        Pelowski     Wagenius
Cooper       Kalis        Mariani      Peterson     Wenzel
Davids       Kelley       McCollum     Pugh         Winter
Delmont      Kelso        Milbert      Rest         Sp.Anderson,I
Dorn         Kinkel       Mulder       Rhodes       
Entenza      Knoblach     Munger       Sarna        
Farrell      Larsen       Murphy       Schumacher   
Garcia       Leighton     Ness         Simoneau     
The motion did not prevail and the amendment was not adopted.

Van Dellen offered an amendment to H. F. No. 1077, the fifth engrossment, as amended.

Farrell requested a division of the Van Dellen amendment to H. F. No. 1077, the fifth engrossment, as amended.


JOURNAL OF THE HOUSE - 52nd Day - Top of Page 3674

The first portion of the Van Dellen amendment to H. F. No. 1077, the fifth engrossment, as amended, reads as follows:

Page 1, line 22 of the Otremba amendment, delete "committed with force or violence"

A roll call was requested and properly seconded.

POINT OF ORDER

Long raised a point of order pursuant to section 398, paragraph 2, of "Mason's Manual of Legislative Procedure" relating to decisions on amendments as final. The Speaker ruled the point of order well taken and the first portion of the Van Dellen amendment out of order.

The second portion of the Van Dellen amendment to H. F. No. 1077, the fifth engrossment, as amended, reads as follows:

Page 1, line 5 of the Otremba amendment, delete "Appropriate and" and insert "Medically"

Page 39, line 26, of the fifth engrossment, delete "appropriate and" and insert "medically"

Page 39, line 27, of the fifth engrossment, delete everything after the period

Page 39, of the fifth engrossment, delete lines 28 to 36

Page 40, of the fifth engrossment, delete lines 1 to 7

A roll call was requested and properly seconded.

The question was taken on the second portion of the Van Dellen amendment and the roll was called.

Carruthers moved that those not voting be excused from voting. The motion prevailed.

There were 62 yeas and 69 nays as follows:

Those who voted in the affirmative were:

Abrams       Finseth      Koppendrayer Osskopp      Tuma
Anderson, B. Frerichs     Kraus        Ozment       Van Dellen
Bertram      Girard       Krinkie      Paulsen      Van Engen
Bettermann   Goodno       Lindner      Pawlenty     Vickerman
Bishop       Haas         Lynch        Pellow       Warkentin
Boudreau     Hackbarth    Macklin      Rostberg     Weaver
Bradley      Harder       Mares        Seagren      Wenzel
Broecker     Holsten      McElroy      Smith        Wolf
Commers      Hugoson      Molnau       Stanek       Worke
Daggett      Johnson, V.  Mulder       Sviggum      Workman 
Davids       Kalis        Ness         Swenson, D.  
Dehler       Knight       Olson, M.    Swenson, H.  
Dempsey      Knoblach     Onnen        Sykora       
Those who voted in the negative were:

Bakk         Greenfield   Leppik       Opatz        Sarna
Brown        Greiling     Lieder       Orenstein    Schumacher
Carlson      Hasskamp     Long         Orfield      Simoneau
Carruthers   Hausman      Lourey       Osthoff      Skoglund
Clark        Huntley      Luther       Ostrom       Solberg
Cooper       Jaros        Mahon        Otremba      Tomassoni
Dauner       Jefferson    Mariani      Pelowski     Tompkins

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Dawkins Johnson, A. Marko Perlt Trimble Delmont Johnson, R. McCollum Peterson Tunheim Dorn Kahn McGuire Pugh Wagenius Entenza Kelley Milbert Rest Wejcman Erhardt Kinkel Munger Rhodes Winter Farrell Larsen Murphy Rice Sp.Anderson,I Garcia Leighton Olson, E. Rukavina
The motion did not prevail and the second portion of the Van Dellen amendment was not adopted.

Van Dellen moved to amend H. F. No. 1077, the fifth engrossment, as amended, as follows:

Page 111, lines 1 to 3, delete the new language and insert:

"MinnesotaCare shall not cover "elective abortions." For purposes of this requirement, "elective abortion" means an abortion other than where, in the professional judgment of the attending physician, which is a medical judgment that would be made by a reasonably prudent physician, knowledgeable about the case and the treatment possibilities with respect to the medical conditions involved, the life of the female would be endangered or substantial and irreversible impairment of a major bodily function would result if the fetus were carried to term; where the pregnancy is the result of conduct which constitutes criminal sexual conduct in the first or third degree, and the incident is reported within 48 hours after the victim becomes physically able to report the rape; or where the pregnancy is the result of incest and the incident and relative are reported to a valid law enforcement agency prior to the abortion."

A roll call was requested and properly seconded.

The question was taken on the Van Dellen amendment and the roll was called.

Carruthers moved that those not voting be excused from voting. The motion prevailed.

There were 86 yeas and 44 nays as follows:

Those who voted in the affirmative were:

Anderson, B. Haas         Lieder       Pawlenty     Tompkins
Bertram      Hackbarth    Lindner      Pellow       Tuma
Bettermann   Harder       Lynch        Pelowski     Tunheim
Boudreau     Hasskamp     Macklin      Peterson     Van Dellen
Bradley      Holsten      Mares        Pugh         Van Engen
Broecker     Hugoson      McElroy      Rice         Vickerman
Brown        Jaros        Milbert      Rostberg     Warkentin
Commers      Johnson, R.  Molnau       Rukavina     Weaver
Cooper       Johnson, V.  Mulder       Sarna        Wenzel
Daggett      Kalis        Murphy       Schumacher   Winter
Dauner       Kinkel       Ness         Seagren      Wolf
Davids       Knight       Olson, M.    Smith        Worke
Dehler       Knoblach     Onnen        Solberg      Workman
Dempsey      Koppendrayer Opatz        Stanek       Sp.Anderson,I
Dorn         Kraus        Osskopp      Sviggum      
Finseth      Krinkie      Otremba      Swenson, D.  
Girard       Larsen       Ozment       Swenson, H.  
Goodno       Leighton     Paulsen      Sykora       
Those who voted in the negative were:

Abrams       Erhardt      Johnson, A.  Marko        Rest
Bakk         Farrell      Kahn         McCollum     Rhodes
Bishop       Frerichs     Kelley       McGuire      Simoneau
Carlson      Garcia       Leppik       Munger       Skoglund
Carruthers   Greenfield   Long         Orenstein    Tomassoni
Clark        Greiling     Lourey       Orfield      Trimble
Dawkins      Hausman      Luther       Osthoff      Wagenius
Delmont      Huntley      Mahon        Ostrom       Wejcman 
Entenza      Jefferson    Mariani      Perlt        
The motion prevailed and the amendment was adopted.


JOURNAL OF THE HOUSE - 52nd Day - Top of Page 3676

H. F. No. 1077, A bill for an act relating to health; MinnesotaCare; establishing requirements for integrated service networks; modifying requirements for health plan companies; establishing the standard health coverage; repealing the regulated all-payer option; modifying universal coverage and insurance reform provisions; expanding eligibility for the MinnesotaCare program; establishing a senior prescription drug discount program; extending the health care commission and regional coordinating boards; making technical changes; modifying data collection provisions; providing for participation in a federal waiver related to MinnesotaCare and medical assistance; regulating health provider cooperatives; modifying the health provider tax; appropriating money; amending Minnesota Statutes 1994, sections 13.99, by adding a subdivision; 60A.02, by adding a subdivision; 60B.02; 60B.03, subdivision 2; 60G.01, subdivisions 2, 4, and 5; 62A.10, subdivisions 1 and 2; 62A.65, subdivisions 5 and 8; 62D.02, subdivisions 4 and 8; 62D.03, subdivision 1; 62D.04, subdivision 1; 62D.042, subdivision 2; 62D.11, subdivision 1; 62D.181, subdivisions 2, 3, 6, and 9; 62D.19; 62E.141; 62H.04; 62H.08; 62J.017; 62J.03, subdivision 7; 62J.04, subdivisions 1a and 3; 62J.05, subdivisions 2 and 9; 62J.06; 62J.09, subdivisions 1, 1a, 6, and 8; 62J.152, subdivision 5; 62J.17, subdivisions 2, 4a, 6a, and by adding a subdivision; 62J.212; 62J.37; 62J.38; 62J.40; 62J.41, subdivisions 1 and 2; 62J.48; 62J.54; 62J.55; 62J.58; 62L.02, subdivisions 11, 16, 24, and 26; 62L.03, subdivisions 3, 4, and 5; 62L.09, subdivision 1; 62L.12, subdivision 2; 62L.17, by adding a subdivision; 62L.18, subdivision 2; 62M.07; 62M.09, subdivision 5; 62M.10, by adding a subdivision; 62N.02, by adding subdivisions; 62N.04; 62N.06, subdivision 1; 62N.10, by adding a subdivision; 62N.11, subdivision 1; 62N.13; 62N.14, subdivision 3; 62N.25, subdivision 2; 62P.04, subdivisions 1 and 3; 62P.05, by adding a subdivision; 62Q.01, subdivisions 2, 3, 4, and by adding subdivisions; 62Q.03, subdivisions 1, 6, 7, 8, 9, 10, and by adding subdivisions; 62Q.07, subdivisions 1 and 2; 62Q.075, subdivision 4; 62Q.09, subdivision 3; 62Q.11; 62Q.165; 62Q.17, subdivisions 2, 8, and by adding a subdivision; 62Q.18; 62Q.19; 62Q.25; 62Q.30; 62Q.32; 62Q.33, subdivisions 4 and 5; 62Q.41; 62R.03, subdivision 3; 72A.20, by adding subdivisions; 72A.201, by adding a subdivision; 136A.1355, subdivisions 3 and 5; 136A.1356, subdivisions 3 and 4; 144.1464, subdivisions 2, 3, and 4; 144.147, subdivision 1; 144.1484, subdivision 1; 144.1486, subdivision 4; 144.1487, subdivision 1; 144.1488, subdivisions 1 and 4; 144.1489, subdivisions 1, 3, and 4; 144.1490; 144.1491, subdivision 2; 144.801, by adding a subdivision; 144.804, subdivision 1; 148B.32, subdivision 1; 151.48; 214.16, subdivisions 2 and 3; 256.9352, subdivision 3; 256.9353, subdivisions 1 and 3; 256.9354, subdivisions 1, 4, 5, and by adding a subdivision; 256.9355, subdivision 2; 256.9357, subdivisions 1, 2, and 3; 256.9358, by adding a subdivision; 256.9363, subdivision 5; 256B.037, subdivisions 1, 3, 4, and by adding subdivisions; 256B.04, by adding a subdivision; 256B.055, by adding a subdivision; 256B.057, by adding subdivisions; 256B.0625, subdivisions 13 and 30; 256B.69, subdivisions 2 and 4; 270.101, subdivision 1; 295.50, subdivisions 3, 4, and 10a; 295.52, by adding a subdivision; 295.53, subdivisions 1, 3, and 4; 295.55, subdivision 4; 295.57; and 295.582; Laws 1990, chapter 591, article 4, section 9; Laws 1993, chapter 224, article 4, section 40; Laws 1993, First Special Session chapter 1, article 8, section 30, subdivision 2; Laws 1994, chapter 624, article 5, section 7; chapter 625, article 5, sections 5, subdivision 1; and 10, subdivision 2; proposing coding for new law in Minnesota Statutes, chapters 60A; 62J; 62L; 62N; 62Q; 62R; 137; 144; 256; 256B; and 295; repealing Minnesota Statutes 1994, sections 62J.045; 62J.07, subdivision 4; 62J.09, subdivision 1a; 62J.152, subdivision 6; 62J.19; 62J.30; 62J.31; 62J.32; 62J.33; 62J.34; 62J.35; 62J.41, subdivisions 3 and 4; 62J.44; 62J.45; 62J.65; 62L.08, subdivision 7a; 62N.34; 62P.01; 62P.02; 62P.03; 62P.07; 62P.09; 62P.11; 62P.13; 62P.15; 62P.17; 62P.19; 62P.21; 62P.23; 62P.25; 62P.27; 62P.29; 62P.31; 62P.33; 62Q.03, subdivisions 2, 3, 4, 5, and 11; 62Q.18, subdivisions 2, 3, 4, 5, 6, 8, and 9; 62Q.21; 62Q.27; 144.1488, subdivision 2; 148.236; and 256.9353, subdivisions 4 and 5; Laws 1993, chapter 247, article 1, sections 12, 13, 14, 15, 18, and 19; and Minnesota Rules, part 4685.1700, subpart 1, item D.

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 57 yeas and 74 nays as follows:

Those who voted in the affirmative were:

Bertram      Finseth      Leppik       Ostrom       Swenson, D.
Boudreau     Goodno       Lieder       Otremba      Swenson, H.
Bradley      Hasskamp     Lourey       Ozment       Tompkins
Broecker     Huntley      Macklin      Peterson     Tunheim
Brown        Jaros        McCollum     Pugh         Van Engen
Cooper       Johnson, R.  Milbert      Rhodes       Warkentin
Daggett      Johnson, V.  Mulder       Rice         Wenzel
Dauner       Kalis        Munger       Sarna        Winter
Davids       Kinkel       Murphy       Schumacher   Sp.Anderson,I
Dehler       Knoblach     Ness         Seagren      
Dempsey      Kraus        Olson, E.    Smith        
Dorn         Larsen       Onnen        Solberg      
Those who voted in the negative were:

Abrams       Garcia       Koppendrayer Opatz        Stanek
Anderson, B. Girard       Krinkie      Orenstein    Sviggum
Bakk         Greenfield   Leighton     Orfield      Sykora
Bettermann   Greiling     Lindner      Osskopp      Tomassoni
Bishop       Haas         Long         Osthoff      Trimble
Carlson      Hackbarth    Luther       Paulsen      Tuma

JOURNAL OF THE HOUSE - 52nd Day - Top of Page 3677
Carruthers Harder Lynch Pawlenty Van Dellen Clark Hausman Mahon Pellow Vickerman Commers Holsten Mares Pelowski Wagenius Dawkins Hugoson Mariani Perlt Weaver Delmont Jefferson Marko Rest Wejcman Entenza Johnson, A. McElroy Rostberg Wolf Erhardt Kahn McGuire Rukavina Worke Farrell Kelley Molnau Simoneau Workman Frerichs Knight Olson, M. Skoglund
The bill was not passed, as amended.

MOTION FOR RECONSIDERATION

Carruthers moved that the vote whereby H. F. No. 1077, as amended, was not passed earlier today be now reconsidered. The motion prevailed.

LAY ON THE TABLE

Carruthers moved to lay H. F. No. 1077, as amended, on the table. The motion prevailed and H. F. No. 1077, as amended, was laid on the table.

There being no objection, the order of business reverted to Reports of Standing Committees.

REPORTS OF STANDING COMMITTEES

Carruthers from the Committee on Rules and Legislative Administration to which was referred:

H. F. No. 642, A bill for an act relating to workers' compensation; modifying provisions relating to insurance, procedures and benefits; providing penalties; appropriating money; amending Minnesota Statutes 1994, sections 60A.23, subdivision 8; 60A.951, subdivisions 2 and 5; 60A.954, subdivision 1; 79.01, subdivision 1; 79.074, by adding subdivisions; 79.251, subdivision 5, and by adding a subdivision; 79.252, subdivisions 2, 5, and by adding a subdivision; 79.34, subdivision 2; 79.35; 79.50; 79.59, subdivision 4; 79A.01, subdivision 4, and by adding a subdivision; 79A.02, subdivisions 1, 2, and 4; 79A.03, by adding a subdivision; 79A.04, subdivisions 2 and 9; 79A.15; 175.007, subdivisions 1 and 3; 176.011, subdivisions 15 and 18; 176.021, subdivisions 3, 3a, and 7; 176.061, subdivision 10; 176.101, subdivisions 1, 2, 5, 6, and by adding a subdivision; 176.102, subdivisions 1, 4, 11, and by adding a subdivision; 176.105, subdivisions 2 and 4; 176.106, subdivision 7; 176.135, subdivisions 1 and 2; 176.178; 176.179; 176.181, subdivisions 2 and 2a; 176.191, subdivision 1; 176.221, subdivisions 1 and 6a; 176.225, by adding subdivisions; 176.238, subdivision 6; 176.645, subdivision 1; 176.66, subdivision 11; 176.83, subdivisions 1 and 2; 268.08, subdivision 3; 353.33, subdivisions 5 and 7; 353.656, subdivisions 2 and 4; 353C.08, subdivision 6; and 422A.18, subdivision 3; proposing coding for new law as Minnesota Statutes, chapter 79B; proposing coding for new law in Minnesota Statutes, chapters 79; and 176; repealing Minnesota Statutes 1994, sections 79.51; 79.52; 79.53; 79.54; 79.55; 79.56; 79.57; 79.58; 79.59, subdivisions 1, 2, 3, and 5; 79.60; 79.61; 79.62; 176.011, subdivisions 25 and 26; and 176.101, subdivisions 3a, 3b, 3c, 3d, 3e, 3f, 3g, 3h, 3i, 3j, 3k, 3l, 3m, 3n, 3o, 3p, 3q, 3r, 3s, 3t, and 3u; Laws 1990, chapter 521, section 4; Minnesota Rules, parts 5223.0300 to 5223.0650.

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

The report was adopted.

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

H. F. No. 809, A bill for an act relating to commerce; regulating charitable organizations; regulating filing statement; appropriating money; amending Minnesota Statutes 1994, sections 309.501, subdivision 1; 309.52, subdivisions 2 and 7;


JOURNAL OF THE HOUSE - 52nd Day - Top of Page 3678

309.53, subdivisions 1, 2, 3, and 8; 309.531, subdivisions 1 and 4; 309.54, subdivision 1; 309.556, subdivision 1; 501B.36; 501B.37, subdivision 2, and by adding a subdivision; and 501B.38; repealing Minnesota Statutes 1994, sections 309.53, subdivision 1a.

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

The report was adopted.

Carruthers from the Committee on Rules and Legislative Administration to which was referred:

H. F. No. 856, A bill for an act relating to ethics in government; extending the enforcement authority of the ethical practices board to cover gifts to local officials; making advisory opinions public data; authorizing civil penalties; clarifying certain definitions and prohibitions; clarifying and authorizing exceptions to the ban on gifts; appropriating money; amending Minnesota Statutes 1994, sections 10A.02, subdivision 12; 10A.071; 10A.34; and 471.895.

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

The report was adopted.

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

H. F. No. 1014, A bill for an act relating to energy; regulating wind energy conversion systems siting; authorizing rulemaking; proposing coding for new law in Minnesota Statutes, chapter 116C.

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

The report was adopted.

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

H. F. No. 1473, A bill for an act relating to privacy; providing for the classification of and access to government data; clarifying data provisions; providing for the protection of state agency intellectual property; conforming provisions dealing with financial assistance data; recodifying statutes on crime of domestic assault; providing for an information policy training program; prescribing penalties; appropriating money; amending Minnesota Statutes 1994, sections 13.03, subdivision 6; 13.04, subdivision 3; 13.06, subdivision 6; 13.10, subdivision 5; 13.32, subdivision 2; 13.43, subdivisions 2, 5, and by adding a subdivision; 13.46, subdivision 2; 13.49; 13.50, subdivision 2; 13.531; 13.551; 13.62; 13.643; 13.671; 13.69, subdivision 1; 13.761; 13.77; 13.78; 13.79; 13.793; 13.82, subdivisions 3a, 5, 6, 10, and by adding subdivisions; 13.83, subdivision 2; 13.89, subdivision 1; 13.90; 13.99, subdivisions 1, 12, 20, 21a, 42a, 54, 55, 60, 64, 78, 79, 112, and by adding subdivisions; 17.117, subdivision 12; 41.63; 41B.211; 116O.03, subdivision 7; 116S.02, subdivision 8; 128C.17; 144.0721, subdivision 2; 144.225, by adding a subdivision; 144.335, subdivision 2; 144.3351; 144.651, subdivisions 21 and 26; 148B.68, subdivision 1; 171.07, subdivision 1a; 171.12, subdivision 3; 182.659, subdivision 8, and by adding a subdivision; 253B.02, subdivision 4a; 253B.03, subdivisions 3 and 4; 259.10; 260.015, subdivision 28; 260.161, subdivision 1b; 268.0122, by adding a subdivision; 268.0124; 270B.02, subdivision 3; 270B.14, subdivision 1; 299C.11; 299C.61, subdivision 4; 336.9-407; 336.9-411; 363.061, subdivision 2; 446A.11, subdivision 11; 518B.01, subdivision 14; 595.02, subdivision 1; 609.101, subdivision 2; 609.131, subdivision 2; 609.135, subdivisions 2 and 5a; 609.1352, subdivision 3; 609.185; 609.224, subdivisions 2 and 3; 609.268, subdivision 1; 609.748, subdivision 6; 609.749, subdivisions 4 and 5; 611A.031; 624.713, subdivision 1; 626.563, subdivision 1; 629.471, subdivision 3; 629.74; 630.36, subdivision 2; and 631.046, subdivision 1; proposing coding for new law in Minnesota Statutes, chapters 13; 270B; 609; and 611A; repealing Minnesota Statutes 1994, sections 13.38, subdivision 4; 13.69, subdivision 2; and 13.71, subdivisions 9, 10, 11, 12, 13, 14, 15, 16, and 17; Laws 1990, chapter 566, section 9, as amended; and Laws 1994, chapter 618, article 1, section 47.

Reported the same back with the following amendments:

Page 4, line 28, before the period, insert "nor limit access pursuant to the rules of criminal procedure"


JOURNAL OF THE HOUSE - 52nd Day - Top of Page 3679

Page 11, line 17, delete everything after "data"

Page 11, line 18, delete everything before the period and insert "upon the release of the budget to the public by the state administration"

Page 24, lines 14 to 17, reinstate the stricken language

Page 24, line 18, reinstate the stricken language and after the first comma, insert "and all" and delete ", and misdemeanors"

Page 43, line 13, after the period, insert "This provision is not intended to supplant access to the material pursuant to the Rules of Criminal Procedure."

Page 43, line 21, delete "; APPROPRIATION"

Page 43, delete lines 28 to 32

Page 43, line 34, after "48," insert "50,"

Page 52, line 31, delete "$......." and insert "$75,000"

With the recommendation that when so amended the bill pass.

The report was adopted.

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

H. F. No. 1666, A bill for an act relating to occupations and professions; requiring licensure or certification of geoscientists; adding geoscientists to the board of architecture, engineering, land surveying, landscape architecture, and interior design; providing for certain duties for the board; amending Minnesota Statutes 1994, sections 214.01, subdivision 3; 214.04, subdivision 3; 319A.02, subdivision 2; 326.02, subdivisions 1, 4, 4a, and by adding a subdivision; 326.03, subdivisions 1 and 4; 326.04; 326.05; 326.06; 326.07; 326.08, subdivision 2; 326.09; 326.10, subdivisions 1, 2, and 7; 326.11, subdivision 1; 326.111, subdivisions 1, 2, 3, 4, and 6; 326.12; 326.13; and 326.14.

Reported the same back with the following amendments:

Page 24, after line 3, insert:

"Sec. 28. [APPROPRIATION.]

$85,000 in fiscal year 1996 and $70,000 in fiscal year 1997 are appropriated from the general fund to the board of architecture, engineering, land surveying, landscape architecture, and geoscience for the purposes of sections 1 to 27."

Amend the title as follows:

Page 1, line 7, after the semicolon, insert "appropriating money;"

With the recommendation that when so amended the bill pass.

The report was adopted.

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

S. F. No. 273, A bill for an act relating to water; providing for the classification of water supply systems and wastewater treatment facilities and certification of operators by the department of health and the pollution control


JOURNAL OF THE HOUSE - 52nd Day - Top of Page 3680

agency; appropriating money; amending Minnesota Statutes 1994, sections 115.71, subdivisions 1, 4, 8, 10, and by adding subdivisions; 115.72; 115.73; 115.75; 115.76; 115.77; and 144.99, subdivision 1; proposing coding for new law in Minnesota Statutes, chapter 115; repealing Minnesota Statutes 1994, sections 115.71, subdivisions 2, 3, and 3a; 115.74; 115.78; 115.79; 115.80; and 115.82.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 1994, section 115.71, subdivision 1, is amended to read:

Subdivision 1. [APPLICABILITY.] As used in sections 115.71 to 115.82 115.77, the terms defined in this section have the meanings given them.

Sec. 2. Minnesota Statutes 1994, section 115.71, subdivision 4, is amended to read:

Subd. 4. [COUNCIL.] "Council" means the water and wastewater treatment operators certification advisory council established by section 115.74 115.741.

Sec. 3. Minnesota Statutes 1994, section 115.71, is amended by adding a subdivision to read:

Subd. 4a. [POPULATION EQUIVALENT.] "Population equivalent" means a number determined by dividing a daily pound load of five-day, 20-degree-centigrade carbonaceous biochemical oxygen demand (CBOD) of raw sewage by 0.17.

Sec. 4. Minnesota Statutes 1994, section 115.71, subdivision 8, is amended to read:

Subd. 8. [WASTEWATER TREATMENT FACILITY OPERATOR.] "Wastewater treatment facility operator" means a person who has direct responsibility for the operation of or operates a wastewater treatment facility.

Sec. 5. Minnesota Statutes 1994, section 115.71, is amended by adding a subdivision to read:

Subd. 9a. [WATER SUPPLY SYSTEM.] "Water supply system" means a public system providing pumped water for human consumption, if the system has at least 15 service connections or regularly serves at least 25 of the same persons over six months per year.

Sec. 6. Minnesota Statutes 1994, section 115.71, subdivision 10, is amended to read:

Subd. 10. [WATER SUPPLY SYSTEM OPERATOR.] "Water supply system operator" means a person who has direct responsibility for the operation of or operates a community water supply system or such parts of the system as would affect the quality and safety of the water.

Sec. 7. Minnesota Statutes 1994, section 115.72, is amended to read:

115.72 [CLASSIFICATION RULES.]

Subdivision 1. [COMMISSIONER OF HEALTH CLASSIFICATION.] (a) The commissioner of health shall classify jointly with the agency adopt rules relating to the classification of all water supply systems actually used or intended for use by the public or by any considerable number of persons. The classes shall be based on the degree of hazard to public health together with the type and loading of plant and the population affected.

Subd. 2. [POLLUTION CONTROL AGENCY.] (b) The commissioner of the pollution control agency shall classify jointly with the commissioner of health adopt rules relating to the classification of all wastewater treatment facilities actually used or intended for use by the public or by any considerable number of persons.

(c) The classes described in paragraphs (a) and (b) shall be based on the degree of hazard to public health together with, the type and of unit process, the loading of the plant, and the population served or the average population equivalent of the sewage handled.


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Subd. 2. [CERTIFICATION QUALIFICATIONS.] The commissioner of health and the agency shall jointly adopt rules relating to the certification qualifications for each classification of water supply system operators and wastewater facility operators, respectively. The rules must provide for at least one annual examination for each class of certificate and must include, but are not limited to:

(1) education requirements;

(2) education substitution provisions;

(3) experience requirements;

(4) experience substitution provisions;

(5) examination content requirements, testing procedures, and criteria for passing;

(6) certificate renewal requirements;

(7) schedules for submitting applications and fees; and

(8) reinstatement requirements for expired, suspended, or revoked certificates.

The advisory council must be consulted before any rules are proposed under this subdivision.

Sec. 8. Minnesota Statutes 1994, section 115.73, is amended to read:

115.73 [CERTIFICATION REQUIRED.]

The commissioners of health and the pollution control agency shall certify water supply system operators and wastewater treatment facility operators, respectively, as to their qualifications to supervise the operation of water supply systems and wastewater treatment facilities based upon the recommendation of the council. A person may not operate a water supply system or wastewater treatment facility unless the system or facility maintains at least one person that:

(1) is certified in a class equal to or higher than the class of the system or facility; and

(2) has full and active responsibility for the daily on-site operation of the system or facility, or of a portion of the system or facility if an additional operator or operators with appropriate certification are responsible for the remaining portions.

Sec. 9. [115.741] [ADVISORY COUNCIL ON WATER SUPPLY SYSTEMS AND WASTEWATER TREATMENT FACILITIES.]

Subdivision 1. [PURPOSE; MEMBERSHIP.] The advisory council on water supply systems and wastewater treatment facilities shall advise the commissioners of health and the pollution control agency regarding classification of water supply systems and wastewater treatment facilities, qualifications and competency evaluation of water supply system operators and wastewater treatment facility operators, and additional laws, rules, and procedures that may be desirable for regulating the operation of water supply systems and of wastewater treatment facilities. The advisory council is composed of 11 voting members, of whom:

(1) one member must be from the department of health, division of environmental health, appointed by the commissioner of health;

(2) one member must be from the pollution control agency, water quality division, appointed by the commissioner of the pollution control agency;

(3) three members must be certified water supply system operators, appointed by the commissioner of health;

(4) three members must be certified wastewater treatment facility operators, appointed by the commissioner of the pollution control agency;

(5) one member must be a representative from an organization representing municipalities, appointed by the commissioner of health with the concurrence of the commissioner of the pollution control agency; and


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(6) two members must be members of the public who are not associated with water supply systems or wastewater treatment facilities. One must be appointed by the commissioner of health and the other by the commissioner of the pollution control agency.

Subd. 2. [GEOGRAPHIC REPRESENTATION.] At least one of the water supply system operators and at least one of the wastewater treatment facility operators must be from outside the seven-county metropolitan area and one wastewater operator must come from the metropolitan council wastewater services.

Subd. 3. [TERMS; COMPENSATION.] The terms of the appointed members and the compensation and removal of all members are governed by section 15.059. The council expires June 30, 1999.

Subd. 4. [OFFICERS.] When new members are appointed to the council, a chair must be elected at the next council meeting. The department of health representative shall serve as secretary of the council.

Sec. 10. Minnesota Statutes 1994, section 115.75, is amended to read:

115.75 [OPERATOR CERTIFICATES.]

Subdivision 1. The commissioners of health and the pollution control agency shall upon recommendation of the council issue certificates to water supply system operators and wastewater treatment facility operators, respectively, attesting to the competency of the operators who meet the requirements of the rules adopted under section 115.72. The Each certificate shall must indicate the classification of the system or facility which the operator is qualified to supervise operate.

Subd. 2. Certificates shall must be prominently displayed in the office of the operator or other appropriate place on the premises of the plant or treatment facility.

Subd. 3. Certificates shall continue in effect are valid for a period of three years unless revoked or suspended by the commissioner of health or the commissioner of the pollution control agency prior to that time. Certificates may be renewed upon application to the commissioner of health or the appropriate commissioner of the pollution control agency.

Subd. 4. The commissioners may revoke the certificate of any operator under their respective jurisdictions following a hearing before the commissioner of health or the commissioner of the pollution control agency or a representative designated by the commissioners of health or the pollution control agency, when it is found that the operator has practiced fraud, or deception; that the operator was guilty of gross negligence or misconduct in the performance of the operator's duties; or that the operator is incompetent or unable properly to perform those duties. [DENIAL, REFUSAL TO RENEW, REVOCATION, AND SUSPENSION.] The commissioner of health and the commissioner of the pollution control agency may deny, refuse to renew, revoke, or suspend the certification of a person subject to regulation under section 115.73 in accordance with section 144.99, subdivisions 8 to 10.

Subd. 5. The certificates of operators who terminate their employment at a water supply system or wastewater treatment facility will remain valid for the unexpired term of the certificate. Operators whose certificates expire under this section may be issued new certificates of a like classification provided appropriate proof of competency is presented to the council submitted to the appropriate commissioner. Successful completion of an examination may be required at the discretion of the council.

Subd. 6. [RECORDS.] The commissioner of health shall maintain records relating to certification of water supply system operators, and the commissioner of the pollution control agency shall maintain records relating to certification of wastewater treatment facility operators.

Sec. 11. Minnesota Statutes 1994, section 115.76, is amended to read:

115.76 [CERTIFICATES GIVEN WITHOUT EXAMINATION RECIPROCITY.]

The commissioner of health, in the case of water supply system operators, and the commissioner of the pollution control agency, in the case of wastewater treatment facility operators, upon application therefor, and recommendation of the council, may issue certificates without examination, in a comparable classification to any person who holds a certificate in any state, territory, or possession of the United States or any country, providing the requirements for certification of operators under which the person's certificate was issued do not conflict with the provisions of sections 115.71 to 115.82 115.77 and are of a standard not lower than that specified by rules adopted under sections 115.71 to 115.82 115.77.


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Sec. 12. Minnesota Statutes 1994, section 115.77, is amended to read:

115.77 [FEES.]

Subdivision 1. [ESTABLISHMENT OF FEE SCHEDULE FEES ESTABLISHED.] The council with the advice and approval of the state department of health and the Minnesota pollution control agency shall establish a schedule of fees for the filing of applications and the issuance of certificates by an appropriate rule promulgated in accordance with applicable state laws. The fees so established shall be reasonable and shall be related to the actual cost of the certification program. The following fees are established for the purposes indicated:

(1) application for examination, $32;

(2) issuance of certificate, $23;

(3) reexamination resulting from failure to pass an examination, $32;

(4) renewal of certificate, $23;

(5) replacement certificate, $10; and

(6) reinstatement or reciprocity certificate, $40.

Subd. 2. [FEES PAID TO STATE TREASURER.] All fees established pursuant to in subdivision 1 shall must be paid to the state department commissioner of health, in the case of water supply system operators, and to the Minnesota commissioner of the pollution control agency, in the case of wastewater treatment facility operators. The fees received by these agencies shall must be deposited in the state treasury and credited to the special revenue fund.

Sec. 13. Minnesota Statutes 1994, section 144.99, subdivision 1, is amended to read:

Subdivision 1. [REMEDIES AVAILABLE.] The provisions of chapters 103I and 157 and sections 115.71 to 115.82 115.77; 144.12, subdivision 1, paragraphs (1), (2), (5), (6), (10), (12), (13), (14), and (15); 144.121; 144.35; 144.381 to 144.385; 144.411 to 144.417; 144.491; 144.495; 144.71 to 144.74; 144.871 to 144.878; 144.992; 326.37 to 326.45; 326.57 to 326.785; 327.10 to 327.131; and 327.14 to 327.28 and all rules, orders, stipulation agreements, settlements, compliance agreements, licenses, registrations, certificates, and permits adopted or issued by the department or under any other law now in force or later enacted for the preservation of public health may, in addition to provisions in other statutes, be enforced under this section.

Sec. 14. [CONTINUATION OF RULES.]

Notwithstanding Minnesota Statutes, section 14.05, subdivision 1, the rules adopted under Minnesota Statutes, section 115.79, continue in effect until new rules are adopted under section 7.

Sec. 15. [APPROPRIATION.]

$10,000 is appropriated from the special revenue fund to the commissioner of health and $82,000 to the commissioner of the pollution control agency for the biennium ending June 30, 1997, for the purposes of sections 1 to 13. The general fund appropriation to the pollution control agency is reduced by $21,000 in fiscal year 1996 and $21,000 in fiscal year 1997.

Sec. 16. [REPEALER.]

Minnesota Statutes 1994, sections 115.71, subdivisions 2, 3, and 3a; 115.74; 115.78; 115.79; 115.80; and 115.82, are repealed."

Delete the title and insert:

"A bill for an act relating to water; providing for the classification of water supply systems and wastewater treatment facilities and certification of operators by the department of health and the pollution control agency; appropriating money; amending Minnesota Statutes 1994, sections 115.71, subdivisions 1, 4, 8, 10, and by adding subdivisions; 115.72; 115.73; 115.75; 115.76; 115.77; and 144.99, subdivision 1; proposing coding for new law in


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Minnesota Statutes, chapter 115; repealing Minnesota Statutes 1994, sections 115.71, subdivisions 2, 3, and 3a; 115.74; 115.78; 115.79; 115.80; and 115.82."

With the recommendation that when so amended the bill pass.

The report was adopted.

Carruthers from the Committee on Rules and Legislative Administration to which was referred:

S. F. No. 440, A bill for an act relating to insurance; regulating coverages, notice provisions, enforcement provisions, and licensees; the comprehensive health association; increasing the lifetime benefit limit; making technical changes; providing for certain breast cancer coverage; prohibiting certain rate differentials within the same town or city; amending Minnesota Statutes 1994, sections 60A.06, subdivision 3; 60A.085; 60A.111, subdivision 2; 60A.124; 60A.23, subdivision 8; 60A.26; 60A.951, subdivisions 2 and 5; 60A.954, subdivision 1; 60K.03, subdivision 7; 60K.14, subdivision 1; 61A.03, subdivision 1; 61A.071; 61A.092, subdivisions 3 and 6; 61B.28, subdivisions 8 and 9; 62A.042; 62A.135; 62A.136; 62A.14; 62A.141; 62A.31, subdivisions 1h and 1i; 62A.46, subdivision 2, and by adding a subdivision; 62A.48, subdivisions 1 and 2; 62A.50, subdivision 3; 62C.14, subdivisions 5 and 14; 62E.02, subdivision 7; 62E.12; 62F.02, subdivision 2; 62I.09, subdivision 2; 62L.02, subdivision 16; 62L.03, subdivision 5; 65A.01, by adding a subdivision; 65B.06, subdivision 3; 65B.08, subdivision 1; 65B.09, subdivision 1; 65B.10, subdivision 3; 65B.61, subdivision 1; 72A.20, subdivisions 13, 23, and by adding a subdivision; 72B.05; 79.251, subdivision 5, and by adding a subdivision; 79.34, subdivision 2; 79.35; 79A.01, by adding a subdivision; 79A.02, subdivision 4; 79A.03, by adding a subdivision; 176.181, subdivision 2; 299F.053, subdivision 2; and 515A.3-112; proposing coding for new law in Minnesota Statutes, chapters 60A; and 62A; repealing Minnesota Statutes 1994, sections 61A.072, subdivision 3; and 65B.07, subdivision 5.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 1994, section 60A.06, subdivision 3, is amended to read:

Subd. 3. [LIMITATION ON COMBINATION POLICIES.] (a) Unless specifically authorized by subdivision 1, clause (4), it is unlawful to combine in one policy coverage permitted by subdivision 1, clauses (4) and (5)(a). This subdivision does not prohibit the simultaneous sale of these products, but the sale must involve two separate and distinct policies.

(b) This subdivision does not apply to group policies.

(c) This subdivision does not apply to policies permitted by subdivision 1, clause (4), that contain benefits providing acceleration of life, endowment, or annuity benefits in advance of the time they would otherwise be payable, or to long-term care policies as defined in section 62A.46, subdivision 2.

Sec. 2. Minnesota Statutes 1994, section 60A.085, is amended to read:

60A.085 [CANCELLATION OF GROUP COVERAGE; NOTIFICATION TO COVERED PERSONS.]

(a) No cancellation of any group life, group accidental death and dismemberment, group disability income, or group medical expense policy, plan, or contract regulated under chapter 62A or 62C is effective unless the insurer has made a good faith effort to notify all covered persons of the cancellation at least 30 days before the effective cancellation date. For purposes of this section, an insurer has made a good faith effort to notify all covered persons if the insurer has notified all the persons included on the list required by paragraph (b) at the home address given and only if the list has been updated within the last 12 months.

(b) At the time of the application for coverage subject to paragraph (a), the insurer shall obtain an accurate list of the names and home addresses of all persons to be covered.

(c) Paragraph (a) does not apply if the group policy, plan, or contract is replaced, or if the insurer has reasonable evidence to indicate that it will be replaced, by a substantially similar policy, plan, or contract.


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(d) In no event shall this section extend coverage under a group policy, plan, or contract more than 120 days beyond the date coverage would otherwise cancel based on the terms of the group policy, plan, or contract.

(e) If coverage under the group policy, plan, or contract is extended by this section, then the time period during which affected members may exercise any conversion privilege provided for in the group policy, plan, or contract is extended for the same length of time, plus 30 days.

Sec. 3. Minnesota Statutes 1994, section 60A.111, subdivision 2, is amended to read:

Subd. 2. [PLAN.] If the commissioner determines that the required liabilities of any company are greater than its qualified assets and that the combined financial resources of the insurance company members of any insurance holding company system of which the company is a member are not adequate to counterbalance that fact, the commissioner may require the company to submit to the commissioner for approval a plan by which the company undertakes to bring the ratio of its required liabilities to its qualified assets to its required liabilities, expressed as a percentage, up to at least 110 percent within a reasonable period, usually not exceeding five years.

Sec. 4. Minnesota Statutes 1994, section 60A.124, is amended to read:

60A.124 [INDEPENDENT AUDIT.]

The audit report of the independent certified public accountant that performs the audit of an insurer's annual statement as required under section 60A.13 60A.129, subdivision 3a 3, paragraph (a), should contain a statement as to whether anything, in connection with their audit, came to their attention that caused them to believe that the insurer failed to adopt and consistently apply the valuation procedure as required by sections 60A.122 and 60A.123.

Sec. 5. Minnesota Statutes 1994, section 60A.23, subdivision 8, is amended to read:

Subd. 8. [SELF-INSURANCE OR INSURANCE PLAN ADMINISTRATORS WHO ARE VENDORS OF RISK MANAGEMENT SERVICES.] (1) [SCOPE.] This subdivision applies to any vendor of risk management services and to any entity which administers, for compensation, a self-insurance or insurance plan. This subdivision does not apply (a) to an insurance company authorized to transact insurance in this state, as defined by section 60A.06, subdivision 1, clauses (4) and (5); (b) to a service plan corporation, as defined by section 62C.02, subdivision 6; (c) to a health maintenance organization, as defined by section 62D.02, subdivision 4; (d) to an employer directly operating a self-insurance plan for its employees' benefits; or (e) to an entity which administers a program of health benefits established pursuant to a collective bargaining agreement between an employer, or group or association of employers, and a union or unions.

(2) [DEFINITIONS.] For purposes of this subdivision the following terms have the meanings given them.

(a) "Administering a self-insurance or insurance plan" means (i) processing, reviewing or paying claims, (ii) establishing or operating funds and accounts, or (iii) otherwise providing necessary administrative services in connection with the operation of a self-insurance or insurance plan.

(b) "Employer" means an employer, as defined by section 62E.02, subdivision 2.

(c) "Entity" means any association, corporation, partnership, sole proprietorship, trust, or other business entity engaged in or transacting business in this state.

(d) "Self-insurance or insurance plan" means a plan providing life, medical or hospital care, accident, sickness or disability insurance, as an employee fringe benefit for the benefit of employees or members of an association, or a plan providing liability coverage for any other risk or hazard, which is or is not directly insured or provided by a licensed insurer, service plan corporation, or health maintenance organization.

(e) "Vendor of risk management services" means an entity providing for compensation actuarial, financial management, accounting, legal or other services for the purpose of designing and establishing a self-insurance or insurance plan for an employer.

(3) [LICENSE.] No vendor of risk management services or entity administering a self-insurance or insurance plan may transact this business in this state unless it is licensed to do so by the commissioner. An applicant for a license shall state in writing the type of activities it seeks authorization to engage in and the type of services it seeks


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authorization to provide. The license may be granted only when the commissioner is satisfied that the entity possesses the necessary organization, background, expertise, and financial integrity to supply the services sought to be offered. The commissioner may issue a license subject to restrictions or limitations upon the authorization, including the type of services which may be supplied or the activities which may be engaged in. The license fee is $100. All licenses are for a period of two years.

(4) [REGULATORY RESTRICTIONS; POWERS OF THE COMMISSIONER.] To assure that self-insurance or insurance plans are financially solvent, are administered in a fair and equitable fashion, and are processing claims and paying benefits in a prompt, fair, and honest manner, vendors of risk management services and entities administering insurance or self-insurance plans are subject to the supervision and examination by the commissioner. Vendors of risk management services, entities administering insurance or self-insurance plans, and insurance or self-insurance plans established or operated by them are subject to the trade practice requirements of sections 72A.19 to 72A.30. In lieu of an unlimited guarantee from a parent corporation for a vendor of risk management services or an entity administering insurance or self-insurance plans, the commissioner may accept a fidelity surety bond in a form satisfactory to the commissioner in an amount equal to 120 percent of the total amount of claims handled by the applicant in the prior year. If at any time the total amount of claims handled during a year exceeds the amount upon which the bond was calculated, the administrator shall immediately notify the commissioner. The commissioner may require that the bond be increased accordingly.

(5) [RULEMAKING AUTHORITY.] To carry out the purposes of this subdivision, the commissioner may adopt rules, including emergency rules, pursuant to sections 14.001 to 14.69. These rules may:

(a) establish reporting requirements for administrators of insurance or self-insurance plans;

(b) establish standards and guidelines to assure the adequacy of financing, reinsuring, and administration of insurance or self-insurance plans;

(c) establish bonding requirements or other provisions assuring the financial integrity of entities administering insurance or self-insurance plans; or

(d) establish other reasonable requirements to further the purposes of this subdivision.

Sec. 6. [60A.235] [STANDARDS FOR DETERMINING WHETHER CONTRACTS ARE HEALTH PLAN CONTRACTS OR STOP LOSS CONTRACTS.]

Subdivision 1. [FINDINGS AND PURPOSE.] The purpose of this section is to establish a standard for the determination of whether an insurance policy or other evidence or coverage should be treated as a policy of accident and sickness insurance or a stop loss policy for the purpose of the regulation of the business of insurance. The laws regulating the business of insurance in Minnesota impose distinctly different requirements upon accident and sickness insurance policies and stop loss policies. In particular, the regulation of accident and sickness insurance in Minnesota includes measures designed to reform the health insurance market, to minimize or prohibit selective rating or rejection of employee groups or individual group members based upon health conditions, and to provide access to affordable health insurance coverage regardless of pre-existing health conditions. The health care reform provisions enacted in Minnesota will only be effective if they are applied to all insurers and health carriers who in substance, regardless of purported form, engage in the business of issuing health insurance coverage to employees of an employee group. This section applies to insurance companies and health carriers and the policies or other evidence of coverage that they issue. This section does not apply to employers or the benefit plans they establish for their employees.

Subd. 2. [DEFINITIONS.] For purposes of this section, the terms defined in this subdivision have the meanings given.

(a) "Attachment point" means the claims amount beyond which the insurance company or health carrier incurs a liability for payment.

(b) "Direct coverage" means coverage under which an insurance company or health carrier assumes a direct obligation to an individual, under the policy or evidence of coverage, with respect to health care expenses incurred by the individual or a member of the individual's family.

(c) "Expected claims" means the amount of claims that, in the absence of a stop loss policy or other insurance or evidence of coverage, are projected to be incurred under an employer-sponsored plan covering health care expenses.


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(d) "Expected plan claims" means the expected claims less the projected claims in excess of the specific attachment point, adjusted to be consisted with the employer's aggregate contract period.

(e) "Health plan" means a health plan as defined in section 62A.011 and includes group coverage regardless of the size of the group.

(f) "Health carrier" means a health carrier as defined in section 62A.011.

Subd. 3. [HEALTH PLAN POLICIES ISSUED AS STOP LOSS COVERAGE.] (a) An insurance company or health carrier issuing or renewing an insurance policy or other evidence of coverage, that provides coverage to an employer for health care expenses incurred under an employer-sponsored plan provided to the employer's employees, retired employees, or their dependents, shall issue the policy or evidence of coverage as a health plan if the policy or evidence of coverage:

(1) has a specific attachment point for claims incurred per individual that is lower than $10,000; or

(2) has an aggregate attachment point that is lower than the sum of:

(i) 150 percent of the first $50,000 of expected plan claims;

(ii) 120 percent of the next $450,000 of expected plan claims; and

(iii) 110 percent of the remaining expected plan claims.

(b) Where the insurance policy or evidence of coverage applies to a contract period of more than one year, the dollar amounts set forth in paragraph (a), clauses (1) and (2), must be multiplied by the length of the contract period expressed in years.

(c) The commissioner may adjust the constant dollar amounts provided in paragraph (a), clauses (1) and (2), on January 1 of any year, based upon changes in the medical component of the Consumer Price Index (CPI). Adjustments must be in increments of $100 and must not be made unless at least that amount of adjustment is required. The commissioner shall publish any change in these dollar amounts at least three months before their effective date.

(d) A policy or evidence of coverage issued by an insurance company or health carrier that provides direct coverage of health care expenses of an individual including a policy or evidence of coverage administered on a group basis is a health plan regardless of whether the policy or evidence of coverage is denominated as stop loss coverage.

Subd. 4. [COMPLIANCE.] (a) An insurance company or health carrier that is required to issue a policy or evidence of coverage as a health plan under this section shall, even if the policy or evidence of coverage is denominated as stop loss coverage, comply with all the laws of this state that apply to the health plan, including, but not limited to, chapters 62A, 62C, 62D, 62E, 62L, and 62Q.

(b) With respect to an employer who had been issued a policy or evidence of coverage denominated as stop loss coverage before the effective date of this section, compliance with this section is required as of the first renewal date occurring on or after the effective date of this section.

Sec. 7. [60A.236] [STOP LOSS REGULATION.]

A contract providing stop loss coverage, issued or renewed to a small employer, as defined in section 62L.02, subdivision 26, or to a plan sponsored by a small employer, must include a claim settlement period no less favorable to the small employer or plan than coverage of all claims incurred during the contract period regardless of when the claims are paid.

Sec. 8. Minnesota Statutes 1994, section 60A.26, is amended to read:

60A.26 [SUSPENSION OF INSURERS, NOTICE TO OTHER STATES; NOTIFICATIONS AND REPORTS.]

Subdivision 1. [OTHER STATES.] The commissioner of commerce shall notify the insurance departments of all other states whenever, under any law then in effect, the commissioner suspends the right of a foreign or domestic insurer to transact business in this state.


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Subd. 2. [NAIC.] The commissioner of commerce shall report public regulatory actions, investigative information, and complaints to the appropriate reporting system or database of the National Association of Insurance Commissioners.

Sec. 9. Minnesota Statutes 1994, section 60A.955, is amended to read:

60A.955 [CLAIM FORMS TO CONTAIN FRAUD WARNING.]

All insurance claim forms issued by an insurer for use in submitting a claim for payment or a claim for any other benefit pursuant to a policy shall clearly contain a warning substantially as follows: "A person who submits an application or files a claim with intent to defraud or helps commit a fraud against an insurer is guilty of a crime." An insurer may comply with this section by including the warning on an addendum attached to the application or claim form. The absence of the required warning does not constitute a defense in a prosecution for a violation of chapter 609 or any other chapter of Minnesota Statutes.

Sec. 10. Minnesota Statutes 1994, section 60K.03, subdivision 7, is amended to read:

Subd. 7. [EXCEPTIONS.] The following are exempt from the general licensing requirements prescribed by this section:

(1) agents of township mutuals who are exempted pursuant to section 60K.04;

(2) fraternal benefit society representatives exempted pursuant to section 60K.05;

(3) any regular salaried officer or employee of a licensed insurer, without license or other qualification, may act on behalf of that licensed insurer in the negotiation of insurance for that insurer, provided that a licensed agent must participate in the sale of the insurance;

(4) employers and their officers or employees, and the trustees or employees of any trust plan, to the extent that the employers, officers, employees, or trustees are engaged in the administration or operation of any program of employee benefits for the employees of the employers or employees of their subsidiaries or affiliates involving the use of insurance issued by a licensed insurance company; provided that the activities of the officers, employees and trustees are incidental to clerical or administrative duties and their compensation does not vary with the volume of insurance or applications for insurance;

(5) employees of a creditor who enroll debtors for credit life, credit accident and health, or credit involuntary unemployment insurance; provided the employees receive no commission or fee for it;

(6) clerical or administrative employees of an insurance agent who take insurance applications or receive premiums in the office of their employer, if the activities are incidental to clerical or administrative duties and the employee's compensation does not vary with the volume of the applications or premiums; and

(7) rental vehicle companies and their employees in connection with the offer of rental vehicle personal accident insurance under section 72A.125; and

(8) employees of a retailer who enroll purchasers for credit insurance associated with a retail purchase; provided the employees receive no commission, fee, bonus, or other form of compensation for it.

Sec. 11. Minnesota Statutes 1994, section 60K.14, subdivision 1, is amended to read:

Subdivision 1. [PERSONAL SOLICITATION OF INSURANCE SALES.] (a) [DEFINITIONS.] For the purposes of this section, the following terms have the meanings given them:

(1) "agent" means a person, copartnership, or corporation required to be licensed pursuant to section 60K.02; and

(2) "personal solicitation" means any contact by an agent, or any person acting on behalf of an agent, made for the purpose of selling or attempting to sell insurance, when either the agent or a person acting for the agent contacts the buyer by telephone or in person, except: (i) an attempted sale in which the buyer personally knows the identity of the agent, the name of the general agency, if any, which the agent represents, and the fact that the agent is an insurance agent; (ii) an attempted sale in which the prospective purchaser of insurance initiated the contact; or (iii) a personal contact which takes place at the agent's place of business.


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(b) [DISCLOSURE REQUIREMENT.] Before a personal solicitation, the agent or person acting for an agent shall, at the time of initial personal contact or communication with the potential buyer, clearly and expressly disclose in writing:

(1) the name and state insurance agent license number of the person making the contact or communication;

(2) the name of the agent, general agency, or insurer that person represents; and

(3) the fact that the agent, agency, or insurer is in the business of selling insurance.

If the initial personal contact is made by telephone, the disclosures required by this subdivision need not be made in writing.

(c) [FALSE REPRESENTATION OF GOVERNMENT AFFILIATION.] No agent or person acting for an agent shall make any communication to a potential buyer that indicates or gives the impression that the agent is acting on behalf of a government agency.

Sec. 12. Minnesota Statutes 1994, section 61A.03, subdivision 1, is amended to read:

Subdivision 1. [GENERALLY.] No policy of life insurance may be issued in this state or by a life insurance company organized under the laws of this state unless it contains the following provisions:

(a) [PREMIUM.] A provision that all premiums are payable in advance either at the home office of the company, or to an agent of the company, upon delivery of a receipt signed by one or more officers named in the policy and countersigned by the agent, but a policy may contain a provision that the policy itself is a receipt for the first premium;

(b) [GRACE PERIOD.] A provision for a one month grace period for the payment of every premium after the first, during which the insurance will continue in force. The provision may subject the late payment to a finance charge and contain a stipulation that if the insured dies during the grace period, the overdue premium will be deducted in any settlement under the policy;

(c) [ENTIRE CONTRACT.] A provision that the policy constitutes the entire contract between the parties and is incontestable after it has been in force during the lifetime of the insured for two years from its date, except for nonpayment of premiums and except for violations of the conditions of the policy relating to naval and military services in time of war; that at the option of the company, provisions relative to benefits in the event of total and permanent disability and provisions which grant additional insurance specifically against death by accident, may be excepted; and that a special form of policy may be issued on the life of a person employed in an occupation classified by the company as extra hazardous or as leading to hazardous employment, which provides that service in certain designated occupations may reduce the company's liability under the policy to a certain designated amount not less than the full policy reserve;

(d) [REPRESENTATIONS AND WARRANTIES.] A provision that, in the absence of fraud, all statements made by the insured are representations and not warranties, and that no statement voids the policy unless it is contained in a written application and a copy of the application is endorsed upon or attached to the policy when issued;

(e) [MISSTATEMENT OF AGE.] A provision that if the age of the insured is understated the amount payable under the policy will be the amount the premium would have purchased at the correct age;

(f) [DIVIDENDS ON PARTICIPATING POLICIES.] A provision that the policy will participate in the surplus of the company and that, beginning not later than the end of the third policy year, the company will annually determine and account for the portion of the divisible surplus accruing on the policy, and that the owner of the policy has the right, each year after the fifth, to have the current dividend arising from the participation paid in cash. If the policy provides other dividend options, it must specify which option is effective if the owner of the policy does not elect an option. The provision may condition any dividends payable during the first five years of the policy upon the payment of the next ensuing annual premium. This provision is not required in nonparticipating policies, in policies issued on under-average lives, or in insurance in exchange for lapsed or surrendered policies;

(g) [POLICY LOANS.] A provision (1) that after three full years' premiums have been paid, the company at any time while the policy is in force, will advance, on proper assignment of the policy, and on the sole security thereof,


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at a specified rate of interest, not to exceed eight percent per annum, or at an adjustable rate of interest as otherwise provided for in this section, a sum equal to, or, at the option of the owner of the policy, less than the loan value thereof; (2) that the loan value is the cash surrender value thereof at the end of the current policy year; (3) that the loan, unless made to pay premiums, may be deferred for not more than six months after the application for it is made; (4) that the company will deduct from the loan value any existing indebtedness on the policy and any unpaid balance of the premium for current policy year, and may collect interest in advance on the loan to the end of the current policy year; (5) that the failure to repay an advance or to pay interest does not void the policy unless the total indebtedness thereon to the company equals or exceeds the loan value at the time of the failure, nor until one month after notice has been mailed by the company to the last known address of the insured and of the assignee of record at the home office of the company; and (6) that no condition other than those provided in this section will be exacted as a prerequisite to an advance. This provision is not required in term insurance;

(h) [REINSTATEMENT.] A provision that if, in event of default in premium payments, the nonforfeiture value of the policy is applied to the purchase of other insurance, and if that insurance is in force and the original policy has not been surrendered to the company and canceled, the policy may be reinstated within three years after the default upon evidence of insurability satisfactory to the company and payment of arrears of premiums with interest;

(i) [PAYMENT OF CLAIMS.] A provision that, when a policy becomes a claim by the death of the insured, settlement will be made within two months after receipt of due proof of death;

(j) [SETTLEMENT OPTION.] A table showing the amount of installments in which the policy may provide its proceeds may be payable;

(k) [DESCRIPTION OF POLICY.] A title on the face and on the back of the policy briefly and correctly describing the policy in bold letters stating its general character, dividend periods, and other particulars, so that the holder will not be able to mistake the nature and scope of the contract;

(l) [FORM NUMBER.] A form number in the lower left-hand corner of the first page of each form, including riders and endorsements.

Any of the foregoing provisions or portions thereof relating to premiums not applicable to single premium policies must not be incorporated therein.

Sec. 13. Minnesota Statutes 1994, section 61A.071, is amended to read:

61A.071 [APPLICATIONS.]

No individual life insurance policy, except life insurance marketed on a direct response basis, shall be issued or delivered in this state to a person age 65 or older unless a signed and completed copy of the application for insurance is left with the applicant at the time application is made. This requirement will not apply to life insurers who mail a copy of the signed, completed application to the applicant within 24 hours of receiving the application. However, where an individual life policy is marketed on a direct response basis, a copy of any application signed by the applicant shall be delivered to the insured along with, or as part of, the policy.

Sec. 14. Minnesota Statutes 1994, section 61A.092, subdivision 3, is amended to read:

Subd. 3. [NOTICE OF OPTIONS.] Upon termination of or layoff from employment of a covered employee, the employer shall inform the employee of:

(1) the employee's right to elect to continue the coverage;

(2) the amount the employee must pay monthly to the employer to retain the coverage;

(3) the manner in which and the office of the employer to which the payment to the employer must be made; and

(4) the time by which the payments to the employer must be made to retain coverage.

The employee has 60 days within which to elect coverage. The 60-day period shall begin to run on the date coverage would otherwise terminate or on the date upon which notice of the right to coverage is received, whichever is later.


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If the covered employee or covered dependent dies during the 60-day election period and before the covered employee makes an election to continue or reject continuation, then the covered employee will be considered to have elected continuation of coverage. The estate of the former employee or covered dependent would then be entitled to a death benefit equal to the amount of insurance that could have been continued less any unpaid premium owing as of the date of death.

Notice must be in writing and sent by first class mail to the employee's last known address which the employee has provided to the employer.

A notice in substantially the following form is sufficient: "As a terminated or laid off employee, the law authorizes you to maintain your group insurance benefits, in an amount equal to the amount of insurance in effect on the date you terminated or were laid off from employment, for a period of up to 18 months. To do so, you must notify your former employer within 60 days of your receipt of this notice that you intend to retain this coverage and must make a monthly payment of $............ at ............. by the ............. of each month."

Sec. 15. Minnesota Statutes 1994, section 61A.092, subdivision 6, is amended to read:

Subd. 6. [APPLICATION.] This section applies to a policy, certificate of insurance, or similar evidence of coverage issued to a Minnesota resident or issued to provide coverage to a Minnesota resident. This section does not apply to: (1) a certificate of insurance or similar evidence of coverage that meets the conditions of section 61A.093, subdivision 2; or (2) a group life insurance policy that contains a provision permitting the certificate holder, upon termination or layoff from employment, to retain the coverage provided under the group policy by paying premiums directly to the insurer, provided that the employer shall give the employee notice of the employee's and each related certificate holder's right to continue the insurance by paying premiums directly to the insurer. A related certificate holder is an insured spouse of the employee.

Sec. 16. Minnesota Statutes 1994, section 61B.28, subdivision 8, is amended to read:

Subd. 8. [FORM.] The form of notice referred to in subdivision 7, paragraph (a), is as follows:

"....................

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

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

(insert name, current address, and

telephone number of insurer)

NOTICE CONCERNING POLICYHOLDER RIGHTS IN AN

INSOLVENCY UNDER THE MINNESOTA LIFE AND HEALTH

INSURANCE GUARANTY ASSOCIATION LAW

If the insurer that issued your life, annuity, or health insurance policy becomes impaired or insolvent, you are entitled to compensation for your policy from the assets of that insurer. The amount you recover will depend on the financial condition of the insurer.

In addition, residents of Minnesota who purchase life insurance, annuities, or health insurance from insurance companies authorized to do business in Minnesota are protected, SUBJECT TO LIMITS AND EXCLUSIONS, in the event the insurer becomes financially impaired or insolvent. This protection is provided by the Minnesota Life and Health Insurance Guaranty Association.

Minnesota Life and Health Insurance Guaranty Association

(insert current

address and telephone number)


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The maximum amount the guaranty association will pay for all policies issued on one life by the same insurer is limited to $300,000. Subject to this $300,000 limit, the guaranty association will pay up to $300,000 in life insurance death benefits, $100,000 in net cash surrender and net cash withdrawal values for life insurance, $300,000 in health insurance benefits, including any net cash surrender and net cash withdrawal values, $100,000 in annuity net cash surrender and net cash withdrawal values, $300,000 in present value of annuity benefits for annuities which are part of a structured settlement or for annuities in regard to which periodic annuity benefits, for a period of not less than the annuitant's lifetime or for a period certain of not less than ten years, have begun to be paid on or before the date of impairment or insolvency, or if no coverage limit has been specified for a covered policy or benefit, the coverage limit shall be $300,000 in present value. Unallocated annuity contracts issued to retirement plans, other than defined benefit plans, established under section 401, 403(b), or 457 of the Internal Revenue Code of 1986, as amended through December 31, 1992, are covered up to $100,000 in net cash surrender and net cash withdrawal values, for Minnesota residents covered by the plan provided, however, that the association shall not be responsible for more than $7,500,000 in claims from all Minnesota residents covered by the plan. If total claims exceed $7,500,000, the $7,500,000 shall be prorated among all claimants. These are the maximum claim amounts. Coverage by the guaranty association is also subject to other substantial limitations and exclusions and requires continued residency in Minnesota. If your claim exceeds the guaranty association's limits, you may still recover a part or all of that amount from the proceeds of the liquidation of the insolvent insurer, if any exist. Funds to pay claims may not be immediately available. The guaranty association assesses insurers licensed to sell life and health insurance in Minnesota after the insolvency occurs. Claims are paid from this assessment.

THE COVERAGE PROVIDED BY THE GUARANTY ASSOCIATION IS NOT A SUBSTITUTE FOR USING CARE IN SELECTING INSURANCE COMPANIES THAT ARE WELL MANAGED AND FINANCIALLY STABLE. IN SELECTING AN INSURANCE COMPANY OR POLICY, YOU SHOULD NOT RELY ON COVERAGE BY THE GUARANTY ASSOCIATION.

THIS NOTICE IS REQUIRED BY MINNESOTA STATE LAW TO ADVISE POLICYHOLDERS OF LIFE, ANNUITY, OR HEALTH INSURANCE POLICIES OF THEIR RIGHTS IN THE EVENT THEIR INSURANCE CARRIER BECOMES FINANCIALLY INSOLVENT. THIS NOTICE IN NO WAY IMPLIES THAT THE COMPANY CURRENTLY HAS ANY TYPE OF FINANCIAL PROBLEMS. ALL LIFE, ANNUITY, AND HEALTH INSURANCE POLICIES ARE REQUIRED TO PROVIDE THIS NOTICE."

Additional language may be added to the notice if approved by the commissioner prior to its use in the form. This section does not apply to fraternal benefit societies regulated under chapter 64B.

Sec. 17. Minnesota Statutes 1994, section 61B.28, subdivision 9, is amended to read:

Subd. 9. [COMBINATION FIXED-VARIABLE POLICY.] The notice required in subdivision 8 must clearly describe what portions of a combination fixed-variable policy are not covered by the Minnesota life and health insurance guaranty association. The notice requirements specified in subdivision 8 7, paragraph (c), do not apply to a combination fixed-variable policy.

Sec. 18. [62A.023] [NOTICE OF RATE CHANGE.]

A health insurer or service plan corporation must send written notice to its policyholders and contract holders at their last known address at least 30 days in advance of the effective date of a proposed rate change. This notice requirement does not apply to individual certificate holders covered by group insurance policies or group subscriber contracts.

Sec. 19. Minnesota Statutes 1994, section 62A.042, is amended to read:

62A.042 [FAMILY COVERAGE; COVERAGE OF NEWBORN INFANTS.]

Subdivision 1. [INDIVIDUAL FAMILY POLICIES; RENEWALS.] (a) No policy of individual accident and sickness insurance which provides for insurance for more than one person under section 62A.03, subdivision 1, clause (3), and no individual health maintenance contract which provides for coverage for more than one person under chapter 62D, shall be renewed to insure or cover any person in this state or be delivered or issued for delivery to any person in this state unless the policy or contract includes as insured or covered members of the family any newborn infants, including dependent grandchildren who reside with a covered grandparent, immediately from the moment of birth and thereafter which insurance or contract shall provide coverage for illness, injury, congenital malformation, or premature birth.


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(b) The coverage under paragraph (a) includes benefits for inpatient or outpatient expenses arising from medical and dental treatment up to age 18, including orthodontic and oral surgery treatment, involved in the management of birth defects known as cleft lip and cleft palate. If orthodontic services are eligible for coverage under a dental insurance plan and another policy or contract, the dental plan shall be primary and the other policy or contract shall be secondary in regard to the coverage required under paragraph (a). Payment for dental or orthodontic treatment not related to the management of the congenital condition of cleft lip and cleft palate shall not be covered under this provision.

Subd. 2. [GROUP POLICIES; RENEWALS.] (a) No group accident and sickness insurance policy and no group health maintenance contract which provide for coverage of family members or other dependents of an employee or other member of the covered group shall be renewed to cover members of a group located in this state or delivered or issued for delivery to any person in this state unless the policy or contract includes as insured or covered family members or dependents any newborn infants, including dependent grandchildren who reside with a covered grandparent, immediately from the moment of birth and thereafter which insurance or contract shall provide coverage for illness, injury, congenital malformation, or premature birth.

(b) The coverage under paragraph (a) includes benefits for inpatient or outpatient expenses arising from medical and dental treatment up to age 18, including orthodontic and oral surgery treatment, involved in the management of birth defects known as cleft lip and cleft palate. If orthodontic services are eligible for coverage under a dental insurance plan and another policy or contract, the dental plan shall be primary and the other policy or contract shall be secondary in regard to the coverage required under paragraph (a). Payment for dental or orthodontic treatment not related to the management of the congenital condition of cleft lip and cleft palate shall not be covered under this provision.

Sec. 20. Minnesota Statutes 1994, section 62A.10, is amended to read:

62A.10 [GROUP INSURANCE.]

Subdivision 1. [REQUIREMENTS.] Group accident and health insurance is hereby declared to be that form of accident and health insurance covering may be issued to cover groups of not less than two employees nor less than ten members, and which may include the employee's or member's dependents, consisting of husband, wife, children, and actual dependents residing in the household, written under a. The master policy may be issued to any governmental corporation, unit, agency, or department thereof, or to any corporation, copartnership, individual, employer, or to any association as defined by section 60A.02, subdivision 1a, where officers, members, employees, or classes or divisions thereof, may be insured for their individual benefit.

Subd. 2. [GROUP ACCIDENTAL DEATH AND GROUP DISABILITY INCOME POLICIES.] Group accidental death insurance and group disability income insurance policies may be issued in connection with first real estate mortgage loans to cover groups of not less than ten debtors of a creditor written under a master policy issued to a creditor to insure its debtors in connection with first real estate mortgage loans, in amounts not to exceed the actual or scheduled amount of their indebtedness. No other accident and health coverages may be issued in connection with first real estate mortgage loans on a group basis to a debtor-creditor group.

Subd. 3. [AUTHORITY TO ISSUE.] Any insurer authorized to write accident and health insurance in this state shall have power to issue group accident and health policies.

Subd. 2 4. [POLICY FORMS.] No policy of group accident and health insurance may be issued or delivered in this state unless the same has been approved by the commissioner in accordance with section 62A.02, subdivisions 1 to 6. These forms shall contain the standard provisions relating and applicable to health and accident insurance and shall conform with the other requirements of law relating to the contents and terms of policies of accident and sickness insurance in so far as they may be applicable to group accident and health insurance, and also the following provisions:

(1) [ENTIRE CONTRACT.] A provision that the policy and the application of the creditor, employer, or executive officer or trustee of any association, and the individual applications, if any, of the debtors, employees, or members, insured, shall constitute the entire contract between the parties, and that all statements made by the creditor, employer, or any executive officer or trustee in on behalf of the group to be insured, shall, in the absence of fraud, be deemed representations and not warranties, and that no such statement shall be used in defense to a claim under the policy, unless it is contained in the written application;


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(2) [MASTER POLICY-CERTIFICATES.] A provision that the insurer will issue a master policy to the creditor, employer, or to the executive officer or trustee of the association; and the insurer shall also issue to the creditor, the employer, or to the executive officer or trustee of the association, for delivery to the debtor, employee, or member, who is insured under the policy, an individual certificate setting forth a statement as to the insurance protection to which the debtor, employee, or member is entitled and to whom payable, together with a statement as to when and where the master policy, or a copy thereof, may be seen for inspection by the individual insured; this. The individual certificate may contain the names of, and insure the dependents of, the employee, or member, as provided for herein;

(3) [NEW INSUREDS.] A provision that to the group or class thereof originally insured may be added, from time to time, all new employees of the employer or, members of the association, or debtors of the creditor eligible to and applying for insurance in that group or class and covered or to be covered by the master policy.

(4) [CONVERSION PRIVILEGE.] In the case of accidental death insurance and disability income insurance issued to debtors of a creditor, the policy must contain a conversion privilege permitting an insured debtor to convert, without evidence of insurability, to an individual policy within 30 days of the date the insured debtor's group coverage is terminated, and not replaced with other group coverage, for any reason other than nonpayment of premiums. The individual policy must provide the same amount of insurance and be subject to the same terms and conditions as the group policy and the initial premium for the individual policy must be the same premium the insured debtor was paying under the group policy. This provision does not apply to a group policy which provides that the certificate holder may, upon termination of coverage under the group policy for any reason other than nonpayment of premium, retain coverage provided under the group policy by paying premiums directly to the insurer.

Sec. 21. Minnesota Statutes 1994, section 62A.135, is amended to read:

62A.135 [NONCOMPREHENSIVE FIXED INDEMNITY POLICIES; MINIMUM LOSS RATIOS.]

(a) This section applies to individual or group policies, certificates, or other evidence of coverage designed primarily to provide coverage for hospital or medical expenses on a per diem, fixed indemnity, or nonexpense incurred basis offered, issued, or renewed, to provide coverage to a Minnesota resident.

(b) Notwithstanding section 62A.02, subdivision 3, relating to loss ratios, policies must return to Minnesota policyholders in the form of aggregate benefits under the policy, for each year, on the basis of incurred claims experience and earned premiums in Minnesota and in accordance with accepted actuarial principles and practices:

(1) at least 75 percent of the aggregate amount of premiums earned in the case of group policies; and

(2) at least 65 percent of the aggregate amount of premiums earned in the case of individual policies.

(c) An insurer may only issue or renew an individual policy on a guaranteed renewable or noncancelable basis.

(d) Noncomprehensive policies, certificates, or other evidence of coverage subject to the provisions of this section are also subject to the requirements, penalties, and remedies applicable to medicare supplement policies, as set forth in section 62A.36, subdivisions 1a, 1b, and 2.

The first supplement to the annual statement required to be filed pursuant to this paragraph must be for the annual statement required to be submitted on or after January 1, 1993.

Subdivision 1. [DEFINITIONS.] For purposes of this section, the following terms have the meanings given them:

(a) "fixed indemnity policy" is a policy form, other than a long-term care policy as defined in section 62A.46, subdivision 2, that pays a predetermined, specified, fixed benefit for services provided. Claim costs under these forms are generally not subject to inflation, although they may be subject to changes in the utilization of health care services. For policy forms providing both expense-incurred and fixed benefits, the policy form is a fixed indemnity policy if 50 percent or more of the total claims are for predetermined, specified, fixed benefits;

(b) "guaranteed renewable" means that, during the renewal period (to a specified age) renewal cannot be declined nor coverage changed by the insurer for any reason other than nonpayment of premiums, fraud, or misrepresentation, but the insurer can revise rates on a class basis upon approval by the commissioner;


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(c) "noncancelable" means that, during the renewal period (to a specified age) renewal cannot be declined nor coverage changed by the insurer for any reason other than nonpayment of premiums, fraud, or misrepresentation and that rates cannot be revised by the insurer. This includes policies that are guaranteed renewable to a specified age, such as 60 or 65, at guaranteed rates; and

(d) "average annualized premium" means the average of the estimated annualized premium per covered person based on the anticipated distribution of business using all significant criteria having a price difference, such as age, sex, amount, dependent status, mode of payment, and rider frequency. For filing of rate revisions, the amount is the anticipated average assuming the revised rates have fully taken effect.

Subd. 2. [APPLICABILITY.] This section applies to individual or group policies, certificates, or other evidence of coverage meeting the definition of a fixed indemnity policy, offered, issued, or renewed, to provide coverage to a Minnesota resident.

Subd. 3. [MINIMUM LOSS RATIO STANDARDS.] Notwithstanding section 62A.02, subdivision 3, relating to loss ratios, the minimum loss ratios for fixed indemnity policies are:

(1) as shown in the following table:

Type of Coverage Renewal Provision

Guaranteed Renewable Noncancelable

Group 75% 70%

Individual 65% 60%

or

(2) for policies or certificates where the average annualized premium is less than $1,000, the average annualized premium less $30, multiplied by the required loss ratio in clause (1), divided by the average annualized premium. However, in no event may the minimum loss ratio be less than the required loss ratio from clause (1) minus ten percent.

The commissioner of commerce may adjust the constant dollar amounts provided in clause (2) on January 1 of any year, based upon changes in the CPI-U, the consumer price index for all urban consumers, published by the United States Department of Labor, Bureau of Labor Statistics. Adjustments must be in increments of $5 and must not be made unless at least that amount of adjustment is required to each amount.

All rate filings must include a demonstration that the rates are not excessive. Rates are not excessive if the anticipated loss ratio and the lifetime anticipated loss ratio meet or exceed the minimum loss ratio standard in this subdivision.

Subd. 4. [RENEWAL PROVISION.] An insurer may only issue or renew an individual policy on a guaranteed renewable or noncancelable basis.

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

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


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Subd. 6. [PENALTIES.] Each sale of a policy that does not comply with the loss ratio requirements of this section is subject to the penalties in sections 72A.17 to 72A.32.

Sec. 22. Minnesota Statutes 1994, section 62A.136, is amended to read:

62A.136 [DENTAL AND VISION PLANS PLAN COVERAGE.]

The following provisions do not apply to health plans providing dental or vision coverage only: sections 62A.041,; 62A.047,; 62A.149,; 62A.151,; 62A.152,; 62A.154,; 62A.155,; 62A.21, subdivision 2b; 62A.26,; 62A.28,; and 62A.30.

Sec. 23. Minnesota Statutes 1994, section 62A.14, is amended to read:

62A.14 [HANDICAPPED CHILDREN.]

Subdivision 1. [INDIVIDUAL FAMILY POLICIES.] An individual hospital or medical expense insurance policy delivered or issued for delivery in this state more than 120 days after May 16, 1969, or an individual health maintenance contract delivered or issued for delivery in this state after August 1, 1984, which provides that coverage of a dependent child shall terminate upon attainment of the limiting age for dependent children specified in the policy or contract shall also provide in substance that attainment of such limiting age shall not operate to terminate the coverage of such child while the child is and continues to be both (a) incapable of self-sustaining employment by reason of mental retardation, mental illness, or physical handicap and (b) chiefly dependent upon the policyholder for support and maintenance, provided proof of such incapacity and dependency is furnished to the insurer or health maintenance organization by the policyholder or enrollee within 31 days of the child's attainment of the limiting age and subsequently as may be required by the insurer or organization but not more frequently than annually after the two-year period following the child's attainment of the limiting age.

Subd. 2. [GROUP POLICIES.] A group hospital or medical expense insurance policy delivered or issued for delivery in this state more than 120 days after May 16, 1969, or a group health maintenance contract delivered or issued for delivery in this state after August 1, 1984, which provides that coverage of a dependent child of an employee or other member of the covered group shall terminate upon attainment of the limiting age for dependent children specified in the policy or contract shall also provide in substance that attainment of such limiting age shall not operate to terminate the coverage of such child while the child is and continues to be both (a) incapable of self-sustaining employment by reason of mental retardation, mental illness, or physical handicap and (b) chiefly dependent upon the employee or member for support and maintenance, provided proof of such incapacity and dependency is furnished to the insurer or organization by the employee or member within 31 days of the child's attainment of the limiting age and subsequently as may be required by the insurer or organization but not more frequently than annually after the two-year period following the child's attainment of the limiting age.

Sec. 24. Minnesota Statutes 1994, section 62A.141, is amended to read:

62A.141 [COVERAGE FOR HANDICAPPED DEPENDENTS.]

No group policy or group plan of health and accident insurance regulated under this chapter, chapter 62C, or 62D, which provides for dependent coverage may be issued or renewed in this state after August 1, 1983, unless it covers the handicapped dependents of the insured, subscriber, or enrollee of the policy or plan. For purposes of this section, a handicapped dependent is a person that is and continues to be both: (1) incapable of self-sustaining employment by reason of mental retardation, mental illness, or physical handicap; and (2) chiefly dependent upon the policyholder for support and maintenance. Consequently, the policy or plan shall not contain any provision concerning preexisting condition limitations, insurability, eligibility, or health underwriting approval concerning handicapped dependents.

If ordered by the commissioner of commerce, the insurer of a Minnesota-domiciled nonprofit association which is composed solely of agricultural members may restrict coverage under this section to apply only to Minnesota residents.

Sec. 25. Minnesota Statutes 1994, section 62A.31, subdivision 1h, is amended to read:

Subd. 1h. [LIMITATIONS ON DENIALS, CONDITIONS, AND PRICING OF COVERAGE.] No issuer of Medicare supplement policies, including policies that supplement Medicare issued by health maintenance organizations or those policies governed by section 1833 or 1876 of the federal Social Security Act, United States Code, title 42, section 1395, et seq., in this state may impose preexisting condition limitations or otherwise deny or condition the issuance or


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effectiveness of any Medicare supplement insurance policy form available for sale in this state, nor may it discriminate in the pricing of such a policy, because of the health status, claims experience, receipt of health care, or medical condition, or age of an applicant where an application for such insurance is submitted during the six-month period beginning with the first month in which an individual first enrolled for benefits under Medicare Part B. This paragraph applies regardless of whether the individual has attained the age of 65 years. If an individual who is enrolled in Medicare Part B due to disability status is involuntarily disenrolled due to loss of disability status, the individual is eligible for the six-month enrollment period provided under this subdivision if the individual later becomes eligible for and enrolls again in Medicare Part B.

Sec. 26. Minnesota Statutes 1994, section 62A.31, subdivision 1i, is amended to read:

Subd. 1i. [REPLACEMENT COVERAGE.] If a Medicare supplement policy replaces another Medicare supplement policy, including a policy that supplements Medicare issued by a health maintenance organization, the issuer of the replacing policy shall waive any time periods applicable to preexisting conditions, waiting periods, elimination periods, and probationary periods in the new Medicare supplement policy for benefits to the extent the time was spent under the original policy.

Sec. 27. Minnesota Statutes 1994, section 62A.46, subdivision 2, is amended to read:

Subd. 2. [LONG-TERM CARE POLICY.] "Long-term care policy" means an individual or group policy, certificate, subscriber contract, or other evidence of coverage that provides benefits for prescribed long-term care, including nursing facility services and home care services, pursuant to the requirements of sections 62A.46 to 62A.56. A long-term care policy must contain a designation specifying whether the policy is a long-term care policy AA or A and a caption stating that the commissioner has established two categories of long-term care insurance and the minimum standards for each.

Sections 62A.46, 62A.48, and 62A.52 to 62A.56 do not apply to a long-term care policy issued to (a) an employer or employers or to the trustee of a fund established by an employer where only employees or retirees, and dependents of employees or retirees, are eligible for coverage or (b) to a labor union or similar employee organization. The associations exempted from the requirements of sections 62A.31 to 62A.44 under 62A.31, subdivision 1, clause (c) shall not be subject to the provisions of sections 62A.46 to 62A.56 until July 1, 1988.

Sec. 28. Minnesota Statutes 1994, section 62A.46, is amended by adding a subdivision to read:

Subd. 13. [BENEFIT DAY.] "Benefit day" means each day of confinement in a nursing facility or each day for home care services. For purposes of section 62A.48, subdivision 1, if the policyholder receives more than one home care service visit within a 24-hour period, that period constitutes one benefit day.

Sec. 29. Minnesota Statutes 1994, section 62A.48, subdivision 1, is amended to read:

Subdivision 1. [POLICY REQUIREMENTS.] No individual or group policy, certificate, subscriber contract, or other evidence of coverage of nursing home care or other long-term care services shall be offered, issued, delivered, or renewed in this state, whether or not the policy is issued in this state, unless the policy is offered, issued, delivered, or renewed by a qualified insurer and the policy satisfies the requirements of sections 62A.46 to 62A.56. A long-term care policy must cover prescribed long-term care in nursing facilities and at least the prescribed long-term home care services in section 62A.46, subdivision 4, clauses (1) to (5), provided by a home health agency. Coverage under a long-term care policy AA must include: a maximum lifetime benefit limit of at least $100,000 for services, and nursing facility and home care coverages must not be subject to separate lifetime maximums. Coverage under a long-term care policy A must include: a maximum minimum lifetime benefit limit of at least $50,000 $25,000 for services, and nursing facility and home care coverages must not be subject to separate lifetime maximums. Prior hospitalization may not be required under a long-term care policy.

Coverage under either The policy designation must cover preexisting conditions during the first six months of coverage if the insured was not diagnosed or treated for the particular condition during the 90 days immediately preceding the effective date of coverage. Coverage under either the policy designation may include a waiting period of up to 90 days before benefits are paid, but there must be no more than one waiting period per benefit period; for purposes of this sentence, "days" means can mean calendar or benefit days. If benefit days are used, an appropriate premium reduction and disclosure must be made. No policy may exclude coverage for mental or nervous disorders which have a demonstrable organic cause, such as Alzheimer's and related dementias. No policy may require the insured to be homebound or house confined to receive home care services. The policy must include a provision that


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the plan will not be canceled or renewal refused except on the grounds of nonpayment of the premium, provided that the insurer may change the premium rate on a class basis on any policy anniversary date. A provision that the policyholder may elect to have the premium paid in full at age 65 by payment of a higher premium up to age 65 may be offered. A provision that the premium would be waived during any period in which benefits are being paid to the insured during confinement in a nursing facility must be included. A nongroup policyholder may return a policy within 30 days of its delivery and have the premium refunded in full, less any benefits paid under the policy, if the policyholder is not satisfied for any reason.

No individual long-term care policy shall be offered or delivered in this state until the insurer has received from the insured a written designation of at least one person, in addition to the insured, who is to receive notice of cancellation of the policy for nonpayment of premium. The insured has the right to designate up to a total of three persons who are to receive the notice of cancellation, in addition to the insured. The form used for the written designation must inform the insured that designation of one person is required and that designation of up to two additional persons is optional and must provide space clearly designated for listing between one and three persons. The designation shall include each person's full name, home address, and telephone number. Each time an individual policy is renewed or continued, the insurer shall notify the insured of the right to change this written designation.

The insurer may file a policy form that utilizes a plan of care prepared as provided under section 62A.46, subdivision 5, clause (1) or (2).

Sec. 30. Minnesota Statutes 1994, section 62A.48, subdivision 2, is amended to read:

Subd. 2. [PER DIEM COVERAGE.] If benefits are provided on a per diem basis, the minimum daily benefit for care in a nursing facility must be the lesser of $60 or actual charges under a long-term care policy AA or the lesser of $40 or actual charges under a long-term care policy A and the minimum benefit per visit for home care under a long-term care policy AA or A must be the lesser of $25 or actual charges. The home care services benefit must cover at least seven paid visits per week.

Sec. 31. Minnesota Statutes 1994, section 62A.50, subdivision 3, is amended to read:

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

(1) a description of the benefits and coverage provided by the policy and the differences between this policy, a supplemental Medicare policy and the benefits to which an individual is entitled under parts A and B of Medicare and the differences between policy designations A and AA;

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

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

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

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

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

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


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

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

Sec. 32. Minnesota Statutes 1994, section 62C.14, subdivision 5, is amended to read:

Subd. 5. [HANDICAPPED DEPENDENTS.] A subscriber's individual contract or any group contract delivered or issued for delivery in this state and providing that coverage of a dependent child of the subscriber or a dependent child of a covered group member shall terminate upon attainment of a specified age shall also provide in substance that attainment of that age shall not terminate coverage while the child is (a) incapable of self-sustaining employment by reason of mental retardation, mental illness, or physical handicap, and (b) chiefly dependent upon the subscriber or employee for support and maintenance, provided proof of incapacity and dependency is furnished by the subscriber within 31 days of attainment of the age, and subsequently as required by the corporation, but not more frequently than annually after a two year period following attainment of the age.

Sec. 33. Minnesota Statutes 1994, section 62C.14, subdivision 14, is amended to read:

Subd. 14. No subscriber's individual contract or any group contract which provides for coverage of family members or other dependents of a subscriber or of an employee or other group member of a group subscriber, shall be renewed, delivered, or issued for delivery in this state unless such contract includes as covered family members or dependents any newborn infants, including dependent grandchildren, immediately from the moment of birth and thereafter which insurance shall provide coverage for illness, injury, congenital malformation or premature birth.

Sec. 34. Minnesota Statutes 1994, section 62D.02, subdivision 8, is amended to read:

Subd. 8. "Health maintenance contract" means any contract whereby a health maintenance organization agrees to provide comprehensive health maintenance services to enrollees, provided that the contract may contain reasonable enrollee copayment provisions. An individual or group health maintenance contract may contain the copayment and deductible provisions specified in this subdivision. Copayment and deductible provisions in group contracts shall not discriminate on the basis of age, sex, race, length of enrollment in the plan, or economic status; and during every open enrollment period in which all offered health benefit plans, including those subject to the jurisdiction of the commissioners of commerce or health, fully participate without any underwriting restrictions, copayment and deductible provisions shall not discriminate on the basis of preexisting health status. In no event shall the sum of the annual copayment copayments and deductible exceed the maximum out-of-pocket expenses allowable for a number three qualified insurance policy plan under section 62E.06, nor shall that sum exceed $5,000 per family. The annual deductible must not exceed $1,000 per person. The annual deductible must not apply to preventive health services as described in Minnesota Rules, part 4685.0801, subpart 8. Where sections 62D.01 to 62D.30 permit a health maintenance organization to contain reasonable copayment provisions for preexisting health status, these provisions may vary with respect to length of enrollment in the plan. Any contract may provide for health care services in addition to those set forth in subdivision 7.

Sec. 35. Minnesota Statutes 1994, section 62E.02, subdivision 7, is amended to read:

Subd. 7. [DEPENDENT.] "Dependent" means a spouse or unmarried child under the age of 19 years, a dependent child who is a student under the age of 25 and financially dependent upon the parent, or a dependent child of any age who is disabled.

Sec. 36. Minnesota Statutes 1994, section 62E.12, is amended to read:

62E.12 [MINIMUM BENEFITS OF COMPREHENSIVE HEALTH INSURANCE PLAN.]

The association through its comprehensive health insurance plan shall offer policies which provide the benefits of a number one qualified plan and a number two qualified plan, except that the maximum lifetime benefit on these plans shall be $1,000,000 $1,500,000, and an extended basic plan and a basic Medicare plan as described in sections 62A.31 to 62A.44 and 62E.07. The requirement that a policy issued by the association must be a qualified plan is satisfied if the association contracts with a preferred provider network and the level of benefits for services provided within the network satisfies the requirements of a qualified plan. If the association uses a preferred provider network,


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payments to nonparticipating providers must meet the minimum requirements of section 72A.20, subdivision 15. They shall offer health maintenance organization contracts in those areas of the state where a health maintenance organization has agreed to make the coverage available and has been selected as a writing carrier. Notwithstanding the provisions of section 62E.06 the state plan shall exclude coverage of services of a private duty nurse other than on an inpatient basis and any charges for treatment in a hospital located outside of the state of Minnesota in which the covered person is receiving treatment for a mental or nervous disorder, unless similar treatment for the mental or nervous disorder is medically necessary, unavailable in Minnesota and provided upon referral by a licensed Minnesota medical practitioner.

Sec. 37. Minnesota Statutes 1994, section 62F.02, subdivision 2, is amended to read:

Subd. 2. [DIRECTORS.] The association shall have a board of directors composed of 11 persons chosen annually for a term of four years as follows: five persons elected by members of the association at a meeting called by the commissioner; three members who are health care providers appointed by the commissioner prior to the election by the association; and three public members, as defined in section 214.02, appointed by the governor prior to the election by the association.

Sec. 38. Minnesota Statutes 1994, section 62I.09, subdivision 2, is amended to read:

Subd. 2. [TERMS AND VACANCIES.] In the event of a member's inability to continue to serve, the commissioner shall appoint a replacement. The committee shall elect a chair and vice-chair from among the members. The term of each member is one year commencing four years beginning on June 1, except that the first members to be appointed to the committee shall serve from the date of their appointment until June 1 immediately following their appointment.

Sec. 39. Minnesota Statutes 1994, section 62L.02, subdivision 16, is amended to read:

Subd. 16. [HEALTH CARRIER.] "Health carrier" means an insurance company licensed under chapter 60A to offer, sell, or issue a policy of accident and sickness insurance as defined in section 62A.01; a health service plan licensed under chapter 62C; a health maintenance organization licensed under chapter 62D; a community integrated services network and an integrated service network operating under chapter 62N; a fraternal benefit society operating under chapter 64B; a joint self-insurance employee health plan operating under chapter 62H; and a multiple employer welfare arrangement, as defined in United States Code, title 29, section 1002(40), as amended. For purposes of sections 62L.01 to 62L.12, but not for purposes of sections 62L.13 to 62L.22, "health carrier" includes a community integrated service network or integrated service network licensed under chapter 62N. Any use of this definition in another chapter by reference does not include a community integrated service network or integrated service network, unless otherwise specified. For the purpose of this chapter, companies that are affiliated companies or that are eligible to file a consolidated tax return must be treated as one health carrier, except that any insurance company or health service plan corporation that is an affiliate of a health maintenance organization located in Minnesota, or any health maintenance organization located in Minnesota that is an affiliate of an insurance company or health service plan corporation, or any health maintenance organization that is an affiliate of another health maintenance organization in Minnesota, may treat the health maintenance organization as a separate health carrier.

Sec. 40. Minnesota Statutes 1994, section 62L.03, subdivision 5, is amended to read:

Subd. 5. [CANCELLATIONS AND FAILURES TO RENEW.] (a) No health carrier shall cancel, decline to issue, or fail to renew a health benefit plan as a result of the claim experience or health status of the persons covered or to be covered by the health benefit plan. A health carrier may cancel or fail to renew a health benefit plan:

(1) for nonpayment of the required premium;

(2) for fraud or misrepresentation by the small employer, or, with respect to coverage of an individual eligible employee or dependent, fraud or misrepresentation by the eligible employee or dependent, with respect to eligibility for coverage or any other material fact;

(3) if eligible employee participation during the preceding calendar year declines to less than 75 percent, subject to the waiver of coverage provision in subdivision 3;

(4) if the employer fails to comply with the minimum contribution percentage required under subdivision 3;

(5) if the health carrier ceases to do business in the small employer market under section 62L.09;


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(6) if a failure to renew is based upon the health carrier's decision to discontinue the health benefit plan form previously issued to the small employer, but only if the health carrier permits each small employer covered under the prior form to switch to its choice of any other health benefit plan offered by the health carrier, without any underwriting restrictions that would not have been permitted for renewal purposes; or

(7) for any other reasons or grounds expressly permitted by the respective licensing laws and regulations governing a health carrier, including, but not limited to, service area restrictions imposed on health maintenance organizations under section 62D.03, subdivision 4, paragraph (m), to the extent that these grounds are not expressly inconsistent with this chapter.

(b) A health carrier need not renew a health benefit plan, and shall not renew a small employer plan, if an employer ceases to qualify as a small employer as defined in section 62L.02. If a health benefit plan, other than a small employer plan, provides terms of renewal that do not exclude an employer that is no longer a small employer, the health benefit plan may be renewed according to its own terms. If a health carrier issues or renews a health plan to an employer that is no longer a small employer, without interruption of coverage, the health plan is subject to section 60A.082. Between July 1, 1994, and June 30, 1995, a health benefit plan in force during this time may be renewed, if the number of employees exceeds two, but does not exceed 49 employees.

Sec. 41. Minnesota Statutes 1994, section 65A.01, is amended by adding a subdivision to read:

Subd. 3b. [RESCISSION AND VOIDABILITY.] This policy must not be rescinded or voided except where the insured has willfully and with intent to defraud concealed or misrepresented a material fact or circumstance concerning this insurance or the subject of this insurance or the interests of the insured in this insurance. This provision must not operate to defeat a claim by a third party or a minor child of the named insured for damage or loss for which the policy provides coverage.

Sec. 42. Minnesota Statutes 1994, section 65B.06, subdivision 3, is amended to read:

Subd. 3. With respect to all automobiles not included in subdivisions 1 and 2, the facility shall provide:

(1) Only the insurance the minimum limits of coverage required by law section 65B.49, subdivisions 2, 3, 3a, and 4a, or higher limits of liability coverage as recommended by the governing committee and approved by the commissioner;

(2) for the equitable distribution of qualified applicants for this coverage among the members in accord with the applicable participation ratio, or among these insurance companies as selected under the provisions of the plan of operation; and

(3) for a school district or contractor transporting school children under contract with a school district, that amount of automobile liability insurance coverage, not to exceed $1,000,000, required by the school district by resolution or contract, or that portion of such $1,000,000 of coverage for which the school district or contractor applies and for which it is eligible under section 65B.10.

Sec. 43. Minnesota Statutes 1994, section 65B.08, subdivision 1, is amended to read:

Subdivision 1. [FILING.] As agent for members, the facility shall file with the commissioner all manuals of classification, all manuals of rules and rates, all rating plans, and any modifications of same, proposed for use for private passenger nonfleet automobile insurance placed through the facility. The classifications, rules and rates and any amendments thereto shall be subject to prior written approval by the commissioner. Rates, surcharge points, and increased limits factors filed by the facility shall not be excessive, inadequate, or unfairly discriminatory. No other entity, service or organization shall make filings for the facility or the members to apply to insurance placed through the facility.

Sec. 44. Minnesota Statutes 1994, section 65B.09, subdivision 1, is amended to read:

Subdivision 1. [AGENTS' RESPONSIBILITY.] Every person licensed under chapter 60K sections 60K.02 and 60K.03 who is authorized to solicit, negotiate or effect automobile insurance on behalf of any member shall:

(1) offer to place coverage through the facility for any qualified applicant who is ineligible or unacceptable for coverage in the insurer or insurers for whom the agent is authorized to solicit, negotiate or effect automobile insurance. Provided, that the failure of an agent to make such an offer to a qualified applicant shall not subject the agent to any liability to the applicant;


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(2) forward to the facility all applications and any deposit premiums which are required by the plan of operation, rules and procedures of the facility, if the qualified applicant accepts the offer to have coverage placed through the facility;

(3) be entitled to receive compensation for placing insurance through the facility at the uniform rates of compensation as provided in the plan of operation, and all members shall pay such compensation.

Sec. 45. Minnesota Statutes 1994, section 65B.10, subdivision 3, is amended to read:

Subd. 3. [REVIEW OF INSUREDS.] At least annually, every member shall review every private passenger nonfleet applicant which it insures through the facility and determine whether or not such applicant is acceptable for voluntary insurance at a rate lower than the facility rate. If such applicant is acceptable, the member shall make an offer to insure the applicant under voluntary coverage at such lower rate.

Sec. 46. Minnesota Statutes 1994, section 65B.61, subdivision 1, is amended to read:

Subdivision 1. Basic economic loss benefits shall be primary with respect to benefits, except for those paid or payable under a workers' compensation law, which any person receives or is entitled to receive from any other source as a result of injury arising out of the maintenance or use of a motor vehicle. Where workers' compensation benefits paid or payable are primary, the reparation obligor shall make an appropriate rebate or reduction in the premiums of the plan of reparation security. The amount of the rebate or rate reduction shall be not less than the amount of the projected reduction in benefits and claims for which the reparation obligor will be liable on that class of risks. The projected reduction or rebate in benefits and claims shall be based upon sound actuarial principles.

Sec. 47. Minnesota Statutes 1994, section 72A.20, is amended by adding a subdivision to read:

Subd. 32. [SUITABILITY OF INSURANCE FOR CUSTOMER.] In recommending or issuing life, endowment, individual accident and sickness, long-term care, annuity, life-endowment, or Medicare supplement insurance to a customer, an insurer, either directly or through its agent, must have reasonable grounds for believing that the recommendation is suitable for the customer.

In the case of group insurance marketed on a direct response basis without the use of direct agent contact, this subdivision is satisfied if the insurer has reasonable grounds to believe that the insurance offered is generally suitable for the group to whom the offer is made.

Sec. 48. Minnesota Statutes 1994, section 72B.05, is amended to read:

72B.05 [NONRESIDENTS.]

A nonresident person may become licensed under sections 72B.01 to 72B.14, provided that the person meets all of the requirements of sections 72B.01 to 72B.14, and complies with their provisions, and, on a form prescribed by the commissioner, appoints the commissioner as the attorney upon whom may be served all legal process issued in connection with any action or proceeding brought or pending in this state against or involving the licensee and relating to transactions under the license; the appointment shall be irrevocable and shall continue so long as any such action or proceeding could arise or exist.

Duplicate copies Service of process shall be served upon the commissioner, accompanied by payment of the fee specified in section 60A.14, subdivision 1(3)(d). Upon receiving such service, the commissioner shall promptly forward a copy thereof by registered or certified mail, with return receipt requested, to the nonresident licensee at that person's last known address. Process served upon the commissioner in this manner shall for all purposes constitute personal service thereof upon the licensee must be made in compliance with section 45.028, subdivision 2.

Sec. 49. Minnesota Statutes 1994, section 299F.053, subdivision 2, is amended to read:

Subd. 2. [AUTHORIZED PERSON.] "Authorized person" means:

(a) the state fire marshal when authorized or charged with the investigation of fires at the place where the fire actually took place;

(b) superintendent of the bureau of criminal apprehension;


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(c) the prosecuting attorney responsible for prosecutions in the county where the fire occurred;

(d) the sheriff or chief of police responsible for investigation in the county where the fire occurred;

(e) the county attorney responsible for the prosecution in the county where the fire occurred;

(f) the Federal Bureau of Investigation or any other federal agency;

(g) the United States attorney's office when authorized or charged with investigation or prosecution of a case involving a fire loss; or

(h) the chief administrative officer of the municipal arson squad; or

(i) the commissioner of commerce.

Sec. 50. Minnesota Statutes 1994, section 515A.3-112, is amended to read:

515A.3-112 [INSURANCE.]

(a) Commencing not later than the time of the first conveyance of a unit to a unit owner other than a declarant, the association shall maintain, to the extent reasonably available:

(1) Property insurance on the common elements and units, exclusive of land, excavations, foundations, and other items normally excluded from property policies, insuring against all risks of direct physical loss. The total amount of insurance after application of any deductibles shall be not less than 80 percent of the full insurable replacement cost of the insured property. The association or its authorized agent may enter a unit at reasonable times upon reasonable notice for the purpose of making appraisals for insurance purposes.

(2) Comprehensive general liability insurance, in an amount determined by the board of directors but not less than any amount specified in the declaration, covering all occurrences commonly insured against for death, bodily injury, and property damage arising out of or in connection with the use, ownership, or maintenance of the common elements.

(b) If the insurance described in subsection (a) is not maintained, the association shall immediately cause notice of that fact to be sent postage prepaid by United States mail to all unit owners at their respective units and other addresses provided to the association. The declaration may require the association to carry any other insurance, and the association in any event may carry any other insurance it deems appropriate to protect the association or the unit owners.

(c) Insurance policies carried pursuant to subsection (a) shall provide that:

(1) Each unit owner and holder of a vendor's interest in a contract for deed is an insured person under the policy with respect to liability arising out of ownership of an undivided interest in the common elements;

(2) The insurer waives its right to subrogation under the policy against any unit owner of the condominium or members of the unit owner's household and against the association and members of the board of directors;

(3) No act or omission by any unit owner or holder of an interest as security for an obligation, unless acting within the scope of authority on behalf of the association, shall void the policy or be a condition to recovery under the policy; and

(4) If, at the time of a loss under the policy, there is other insurance in the name of a unit owner covering the same property covered by the policy, the policy is primary insurance not contributing with the other insurance.

(d) Any loss covered by the property policy under subsection (a)(1) shall be adjusted with the association, but the insurance proceeds for that loss shall be payable to any insurance trustee designated for that purpose, or otherwise to the association. The insurance trustee or the association shall hold any insurance proceeds in trust for unit owners and holders of an interest as security for an obligation as their interests may appear. The proceeds shall be disbursed first for the repair or restoration of the damaged common elements and units, and unit owners and holders of an interest as security for an obligation are not entitled to receive payment of any portion of the proceeds unless there is a surplus of proceeds after the common elements and units have been completely repaired or restored, or the condominium is terminated.


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(e) An insurance policy issued to the association does not prevent a unit owner from obtaining insurance for personal benefit.

(f) An insurer that has issued an insurance policy under this section shall issue certificates or memoranda of insurance, upon request, to any unit owner, or holder of an interest as security for an obligation. The insurance may not be canceled until 30 60 days after notice of the proposed cancellation has been mailed to the association and to each unit owner and holder of an interest as security for an obligation to whom certificates of insurance have been issued.

(g) Any portion of the condominium damaged or destroyed shall be promptly repaired or replaced by the association unless (1) the condominium is terminated and the association votes not to repair or replace all or part thereof, (2) repair or replacement would be illegal under any state or local health or safety statute or ordinance, or (3) 80 percent of the unit owners, including every owner and first mortgagee of a unit or assigned limited common element which will not be rebuilt, vote not to rebuild. The cost of repair or replacement of a unit or the common area in excess of insurance proceeds and reserves shall be a common expense. If less than the entire condominium is repaired or replaced, (1) the insurance proceeds attributable to the damaged common elements shall be used to restore the damaged area to a condition compatible with the remainder of the condominium, (2) the insurance proceeds attributable to units and limited common elements which are not rebuilt shall be distributed to the owners of those units and the holders of an interest as security for an obligation of those units and the owners and holders of an interest as security for an obligation of the units to which those limited common elements were assigned, as their interests may appear, and (3) the remainder of the proceeds shall be distributed to all the unit owners and holders of an interest as security for an obligation as their interests may appear in proportion to their common element interest. In the event the unit owners vote not to rebuild a unit, that unit's entire common element interest, votes in the association, and common expense liability are automatically reallocated upon the vote as if the unit had been condemned under section 515A.1-107(a), and the association shall promptly prepare, execute and record an amendment to the declaration reflecting the reallocations. Notwithstanding the provisions of this subsection, if the condominium is terminated, insurance proceeds not used for repair or replacement shall be distributed in the same manner as sales proceeds pursuant to section 515A.2-120.

(h) The provisions of this section may be varied or waived in the case of a condominium all of the units of which are restricted to nonresidential use.

Sec. 51. [REPORT ON MANDATED INSURANCE DISCLOSURES AND NOTICES.]

The commissioner of commerce shall report to the legislature by February 1, 1996, on the status of insurance disclosures and notices that are required by law to be distributed with insurance applications, marketing materials, or claim forms. The report shall include recommendations on the disclosures or notices that are no longer necessary and a recommendation for consolidation of all legally required disclosures or notices on a single disclosure form.

Sec. 52. [REPEALER.]

Minnesota Statutes 1994, section 65B.07, subdivision 5, is repealed.

Sec. 53. [EFFECTIVE DATES.]

Sections 1 to 4, 6 to 10, 13 to 15, 17, 19 to 22, 25, 27 to 31, 33, 35, 37, 38, 40, 41, 47, 48, 49, and 52 are effective the day following final enactment.

Section 39 is effective January 1, 1995.

Section 34 is effective July 1, 1995.

Section 36 is effective July 1, 1995, and applies to coverage issued or renewed on or after that date.

Section 11 is effective January 1, 1996.

Sections 23, 24, and 32 are effective January 1, 1996, and apply to coverage issued or renewed on or after that date."


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Delete the title and insert:

"A bill for an act relating to insurance; regulating coverages, notice provisions, enforcement provisions, fees, licensees; making technical changes; amending Minnesota Statutes 1994, sections 60A.06, subdivision 3; 60A.085; 60A.111, subdivision 2; 60A.124; 60A.23, subdivision 8; 60A.26; 60A.955; 60K.03, subdivision 7; 60K.14, subdivision 1; 61A.03, subdivision 1; 61A.071; 61A.092, subdivisions 3 and 6; 61B.28, subdivisions 8 and 9; 62A.042; 62A.10; 62A.135; 62A.136; 62A.14; 62A.141; 62A.31, subdivisions 1h and 1i; 62A.46, subdivision 2, and by adding a subdivision; 62A.48, subdivisions 1 and 2; 62A.50, subdivision 3; 62C.14, subdivisions 5 and 14; 62D.02, subdivision 8; 62E.02, subdivision 7; 62E.12; 62F.02, subdivision 2; 62I.09, subdivision 2; 62L.02, subdivision 16; 62L.03, subdivision 5; 65A.01, by adding a subdivision; 65B.06, subdivision 3; 65B.08, subdivision 1; 65B.09, subdivision 1; 65B.10, subdivision 3; 65B.61, subdivision 1; 72A.20, by adding a subdivision; 72B.05; 299F.053, subdivision 2; and 515A.3-112; proposing coding for new law in Minnesota Statutes, chapters 60A; and 62A; repealing Minnesota Statutes 1994, section 65B.07, subdivision 5."

With the recommendation that when so amended the bill pass.

The report was adopted.

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

S. F. No. 537, A bill for an act relating to drivers' licenses; requiring the refund of license fees to applicants who do not receive licenses, duplicate licenses, permits, or Minnesota identification cards within six weeks; requesting legislative audit commission evaluation of driver's license and identification card program; amending Minnesota Statutes 1994, sections 171.06, by adding a subdivision; and 171.07, subdivisions 1 and 3.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 1994, section 16B.06, subdivision 2, is amended to read:

Subd. 2. [VALIDITY OF STATE CONTRACTS.] (a) A state contract or lease is not valid and the state is not bound by it until:

(1) it has first been executed by the head of the agency or a delegate which is a party to the contract;

(2) it has been approved by the commissioner or a delegate, under this section, and the commissioner or a delegate has determined that the terms of the contract are consistent in all respects with any law which specifically authorizes or requires the action which is the subject of the contract;

(3) it has been approved by the attorney general or a delegate as to form and execution; and

(4) the account system shows an allotment or encumbrance balance for the full amount of the contract liability.

(b) Paragraph (a), clause (2), does not apply to contracts between state agencies or contracts awarding grants.

(c) The head of the agency may delegate the execution of specific contracts or specific types of contracts to a designated subordinate within the agency if the delegation has been approved by the commissioner of administration and filed with the secretary of state. The fully executed copy of every contract or lease must be kept on file at the contracting agency.

Sec. 2. Minnesota Statutes 1994, section 171.06, is amended by adding a subdivision to read:

Subd. 6. [REFUND OF FEE.] The department, upon request of an applicant, shall refund the fee paid by the applicant for a license, instruction permit, duplicate license, or Minnesota identification card if the applicant does not receive the license, permit, or card, other than the temporary license, permit, or card issued at the time of application, within six weeks of having filed the application for it. No refund shall be made to an applicant if the applicant has,


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within six weeks of having filed an application, received from the department a notification of ineligibility or a notification that the application lacks information. Receipt by the applicant is deemed to take place when the department mails the license, permit, card, or notification to the address on the application. The department shall retain a record of the date of mailing of the license, permit, card, or notification for one year after the date of mailing. A request for a refund may be made by facsimile, by electronic mail, or in writing within one year after filing the application. The refund must include the $3.50 filing fee retained under subdivision 4. The department may not require a county or agent to relinquish a filing fee retained from a fee refunded under this subdivision. The department shall not refund a fee paid by an applicant if a requirement of federal law or court order imposed or entered after July 1, 1995, prevents the department from issuing a license, permit, or card within six weeks of the application.

Sec. 3. Minnesota Statutes 1994, section 171.07, subdivision 1, is amended to read:

Subdivision 1. [LICENSE; CONTENTS.] The department shall, upon the payment of the required fee, regardless of a subsequent refund of the fee under section 171.06, subdivision 6, issue to every applicant qualifying therefor a license designating the type or class of vehicles the applicant is authorized to drive as applied for, which license shall bear thereon a distinguishing number assigned to the licensee, the full name, date of birth, residence address and permanent mailing address if different, a description of the licensee in such manner as the commissioner deems necessary, and a space upon which the licensee shall write the usual signature and the date of birth of the licensee with pen and ink. No license shall be valid until it has been so signed by the licensee. Except in the case of an instruction permit, every license shall bear thereon a colored photograph or an electronically produced image of the licensee. Every license issued to an applicant under the age of 21 shall be of a distinguishing color and plainly marked "Under-21." The department shall use such process or processes in the issuance of licenses that prohibits as near as possible, the ability to alter or reproduce the licenses, or prohibit the ability to superimpose a photograph or electronically produced image on such licenses without ready detection. A license issued to an applicant of age 65 or over shall be plainly marked "senior" if requested by the applicant.

Sec. 4. Minnesota Statutes 1994, section 171.07, subdivision 3, is amended to read:

Subd. 3. [IDENTIFICATION CARD; FEE.] Upon payment of the required fee, regardless of a subsequent refund of the fee under section 171.06, subdivision 6, the department shall issue to every applicant therefor a Minnesota identification card. The department may not issue a Minnesota identification card to a person who has a driver's license, other than an instruction permit or a limited license. The card must bear a distinguishing number assigned to the applicant, a colored photograph or an electronically produced image, the full name, date of birth, residence address, a description of the applicant in the manner as the commissioner deems necessary, and a space upon which the applicant shall write the usual signature and the date of birth of the applicant with pen and ink.

Each Minnesota identification card must be plainly marked "Minnesota identification card - not a driver's license."

The fee for a Minnesota identification card issued to a person who is mentally retarded, as defined in section 252A.02, subdivision 2, or to a physically disabled person, as defined in section 169.345, subdivision 2, is 50 cents.

Sec. 5. [EVALUATION OF DRIVER'S LICENSE AND IDENTIFICATION CARD PROGRAM.]

The legislative audit commission is requested to direct the legislative auditor to conduct an evaluation of the improved security driver's license and identification card program and report to the legislature by January 1, 1996, concerning its findings. The evaluation of the program must focus on the following:

(1) consistency between Minnesota Statutes, section 170.07, subdivision 9, and specifications in the invitation to bid documents and contract;

(2) bidding process leading to the award of the contract;

(3) evaluation of bids and samples submitted;

(4) authorization to begin work under the contract;

(5) incurring of costs before execution of the contract;

(6) administration of the contract, with specific reference to decisions and actions concerning the unsatisfactory performance penalty clause;


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(7) causes of delays in issuing drivers' licenses and identification cards to applicants; and

(8) role of the department of public safety and department of administration in the foregoing areas.

Sec. 6. [EFFECTIVE DATE.]

Sections 2 to 4 are effective July 1, 1995, and apply to applications submitted on and after that date."

Delete the title and insert:

"A bill for an act relating to drivers' licenses; providing conditions for validity of state contracts; requiring refund of license fee if a qualified applicant does not receive a license, duplicate license, permit, or identification card within six weeks of application; providing for issuance of license without regard to whether the fee has been refunded; requiring legislative audit commission to study driver's license and identification card program; amending Minnesota Statutes 1994, sections 16B.06, subdivision 2; 171.06, by adding a subdivision; and 171.07, subdivisions 1 and 3."

With the recommendation that when so amended the bill pass.

The report was adopted.

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

S. F. No. 1290, A bill for an act relating to the legislature; abolishing the legislative commission on children, youth, and their families, the legislative water commission, the legislative commission on the economic status of women, the legislative commission on child protection, the legislative commission on health care access, the legislative commission on long-term health care, the legislative commission on waste management, and the legislative tax study commission; transferring functions of the legislative commission on Minnesota resources to the office of strategic and long-range planning; amending Minnesota Statutes 1994, sections 4.071, subdivision 2; 62J.04, subdivision 1a; 62Q.33, subdivision 5; 84.0274, subdivision 7; 85.019, subdivision 2; 86.72, subdivisions 2 and 3; 89.022, subdivision 2; 103A.43; 103B.321, subdivision 1; 115A.07, subdivision 3; 115A.15, subdivision 5; 115A.158, subdivision 2; 115A.165; 115A.193; 115A.22, subdivision 5; 115A.5501, subdivisions 2 and 4; 115A.551, subdivisions 4 and 5; 115A.557, subdivision 4; 115A.9157, subdivision 6; 115A.96, subdivision 2; 115A.961, subdivision 2; 115A.9651, subdivision 2; 115A.97, subdivisions 5 and 6; 115B.20, subdivisions 2, 5, and 6; 116C.712, subdivision 5; 116J.555, subdivision 2; 116P.02; 116P.03; 116P.05, subdivision 2, and by adding a subdivision; 116P.06; 116P.07; 116P.08, subdivisions 3, 4, 5, 6, and 7; 116P.09; 116P.10; 116P.11; 116P.12; 116Q.02; 256.9352, subdivision 3; 256B.431, subdivision 2i; 290.431; 290.432; and 473.846; repealing Minnesota Statutes 1994, sections 3.861; 3.873; 3.885; 3.887; 3.9222; 3.9227; 14.115, subdivision 8; 62J.04, subdivision 4; 62J.07; 62N.24; 103B.351; 115A.03, subdivision 16; 115A.08; 115A.14; 115A.29; 115A.38; 115A.411; 115A.913, subdivision 5; 115A.9157, subdivision 4; 115A.965, subdivision 7; 115A.981, subdivision 3; 115B.22, subdivision 8; 115B.43, subdivision 4; 116P.05, subdivision 1; 216C.051; 256B.504; 473.149, subdivisions 2c and 6; 473.845, subdivision 4; and 473.848, subdivision 4.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 1994, section 3.303, is amended to read:

3.303 [LEGISLATIVE COORDINATING COMMISSION; CREATION AND ORGANIZATION.]

Subdivision 1. [PURPOSE.] The legislative coordinating commission is created to coordinate the legislative activities of the senate and house of representatives.

Subd. 2. [MEMBERS.] The commission consists of the majority leader of the senate, the president of the senate, two senators appointed by the majority leader, the minority leader of the senate, and one senator appointed by the minority leader; and the majority leader of the house of representatives, the speaker of the house of representatives, two representatives appointed by the speaker, the minority leader of the house of representatives, and one representative appointed by the minority leader. Each member shall serve until a successor is named during a regular session following appointment. A vacancy shall be filled for the unexpired term in the same manner as the original appointment.


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Subd. 3. [CHAIR.] The president of the senate and the speaker of the house shall alternate annually as chair of the commission.

Subd. 4. [EXPENSES.] The members of the commission shall serve without compensation but be reimbursed in the same manner as members of standing committees of the senate and the house of representatives.

Subd. 5. [VISITORS.] The commission shall represent the legislature and assist state agencies to make arrangements to accommodate and appropriately recognize individuals or groups visiting Minnesota as direct or indirect representatives of foreign governments, other states, or subdivisions or agencies of foreign governments or other states and to provide other services determined by the commission.

Subd. 6. [ADMINISTRATION; STAFF.] The commission may make grants, employ an executive director and other staff, and obtain office space, equipment, and supplies necessary to perform its duties.

Subd. 7. [JOINT GROUPS.] The commission may establish joint committees, subcommittees, task forces, and similar joint working groups to assist and advise the commission in carrying out its duties. The commission may delegate to a joint entity, in writing, specific duties of the commission. All joint entities established by the commission expire on January 1 of each odd-numbered year, unless renewed by affirmative action of the commission.

Sec. 2. Minnesota Statutes 1994, section 3.305, is amended to read:

3.305 [LEGISLATIVE COORDINATING COMMISSION; BUDGET AUTHORITY BICAMERAL LEGISLATIVE ADMINISTRATION.]

Subdivision 1. [REVIEW DEFINITIONS.] (a) "Legislative commission" means a joint commission or committee in the legislative branch composed of members of the senate and the house of representatives.

(b) "Joint offices" means the revisor of statutes, legislative reference library, the office of legislative auditor, and any other joint legislative service office.

Subd. 1a. [APPROVAL OF COMMISSION BUDGETS; ADDITIONAL STAFF; COMPENSATION.] The administrative budget request of any statutory a legislative commission the majority of whose members are members of the legislature or joint office shall be submitted to the legislative coordinating commission for review and comment approval before its submission to the finance committee appropriate fiscal committees of the senate and the appropriations committee of the house of representatives. No such commission shall employ additional personnel without first having received the recommendation of the legislative coordinating commission. In reviewing the budgets, the legislative coordinating commission shall evaluate and make recommendations on how to improve the efficiency and effectiveness of bicameral support functions and services and on whether there is a continuing need for the various legislative commissions. The executive director of the legislative coordinating commission shall recommend and the commission shall establish the compensation of all employees of any statutory legislative commission or joint office, except classified employees of the legislative audit commission, the majority of whose members are members of the legislature.

Subd. 2. [TRANSFERS.] The legislative coordinating commission may transfer unobligated balances among general fund appropriations to the legislature.

Subd. 3. [EMPLOYEES.] All employees of legislative commissions and joint offices are employees of the legislature in the unclassified service of the state, except classified employees in the legislative auditor's office.

Subd. 4. [ADMINISTRATIVE STAFF FOR COMMISSIONS.] The executive director of the legislative coordinating commission shall provide and manage office space and equipment and hire, supervise, and manage all administrative, clerical, and secretarial staff for all legislative commissions, except the legislative advisory commission and the legislative audit commission.

Subd. 5. [MEMBERSHIP ON LEGISLATIVE COMMISSIONS.] The appointment of a member to a legislative commission, except a member serving ex officio, is rendered void by three unexcused absences of the member from the meetings of the commission. If an appointment becomes void, the legislative commission shall notify the appointing authority of this and request another appointment.

Subd. 6. [GEOGRAPHIC INFORMATION SYSTEMS.] The executive director of the legislative coordinating commission shall maintain a geographic information systems office. The office shall maintain the data, facilities, and


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technical capacity to draw electoral district boundaries. The office shall provide members of the house and senate with geographic information and mapping services on request.

Sec. 3. Minnesota Statutes 1994, section 3.85, subdivision 5, is amended to read:

Subd. 5. [STAFF.] The commission may employ professional, clerical, and technical assistants as it deems necessary to perform the duties prescribed in this section.

Sec. 4. Minnesota Statutes 1994, section 3.85, subdivision 12, is amended to read:

Subd. 12. [ALLOCATION OF ACTUARIAL COST.] (a) The commission shall assess each retirement plan specified in subdivision 11, paragraph (b), for a portion of the compensation paid to the actuary retained by the commission for the actuarial valuation calculations and quadrennial experience studies. The assessment is 72 100 percent of the amount of contract compensation for the actuarial consulting firm retained by the commission for actuarial valuation calculations, including the public employees police and fire plan consolidation accounts of the public employees retirement association, annual experience data collection and processing, and quadrennial experience studies.

The portion of the total assessment payable by each retirement system or pension plan must be determined as follows:

(1) Each pension plan specified in subdivision 11, paragraph (b), clauses (1) to (14), must pay the following indexed amount based on its total active, deferred, inactive, and benefit recipient membership:

up to 2,000 members, inclusive$2.55 per member

2,001 through 10,000 members$1.13 per member

over 10,000 members $0.11 per member

The amount specified is applicable for the assessment of the July 1, 1991, to June 30, 1992, fiscal year actuarial compensation amounts. For the July 1, 1992, to June 30, 1993, fiscal year and subsequent fiscal year actuarial compensation amounts, the amount specified must be increased at the same percentage increase rate as the implicit price deflator for state and local government purchases of goods and services for the 12-month period ending with the first quarter of the calendar year following the completion date for the actuarial valuation calculations, as published by the federal Department of Commerce, and rounded upward to the nearest full cent.

(2) The total per-member portion of the allocation must be determined, and that total per-member amount must be subtracted from the total amount for allocation. Of the remainder dollar amount, the following per-retirement system and per-pension plan charges must be determined and the charges must be paid by the system or plan:

(i) 37.87 percent is the total additional per-retirement system charge, of which one-seventh must be paid by each retirement system specified in subdivision 11, paragraph (b), clauses (1), (2), (6), (7), (9), (10), and (11).

(ii) 62.13 percent is the total additional per-pension plan charge, of which one-thirteenth must be paid by each pension plan specified in subdivision 11, paragraph (b), clauses (1) to (13), if there are not any participants in the plan specified in subdivision 11, paragraph (b), clause (14), or of which one-fourteenth must be paid by each pension plan specified in subdivision 11, paragraph (b), clauses (1) to (14), if there are participants in the plan specified in subdivision 11, paragraph (b), clause (14).

(b) The assessment must be made following the completion of the actuarial valuation calculations and the experience analysis. The amount of the assessment is appropriated from the retirement fund applicable to the retirement plan. Receipts from assessments must be deposited in the state treasury and credited to the general fund.

Sec. 5. Minnesota Statutes 1994, section 3.855, is amended by adding a subdivision to read:

Subd. 1a. [DEFINITIONS.] "Commission" means the legislative coordinating commission.

Sec. 6. Minnesota Statutes 1994, section 3.885, subdivision 3, is amended to read:

Subd. 3. [STAFF.] (a) The commission may:

(1) employ and fix the salaries of professional, technical, clerical, and other staff of the commission;


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(2) employ and discharge staff solely on the basis of their fitness to perform their duties and without regard to political affiliation;

(3) buy necessary furniture, equipment, and supplies;

(4) enter into contracts for necessary services, equipment, office, and supplies;

(5) provide its staff with computer capability necessary to carry out assigned duties. The computer should be capable of receiving data and transmitting data to computers maintained by the executive and judicial departments of state government that are used for budgetary and revenue purposes; and

(6) use other legislative staff.

(b) The commission may hire an executive director and delegate any of its authority under paragraph (a) to that person. The executive director shall be appointed by the chair and vice-chair to a four-year term, shall serve in the unclassified service, and is subject to removal by a majority vote of the members of either the senate or the house of representatives.

(c) The legislative coordinating commission shall provide office space and administrative support to the committee commission.

Sec. 7. Minnesota Statutes 1994, section 3.885, subdivision 5, is amended to read:

Subd. 5. [DUTIES.] (a) The commission shall, when directed by the legislative coordinating commission:

(1) provide the legislature with research and analysis of current and projected state revenue, state expenditures, and state tax expenditures;

(2) provide the legislature with a report analyzing the governor's proposed levels of revenue and expenditures for biennial budgets submitted under section 16A.11 as well as other supplemental budget submittals to the legislature by the governor;

(3) provide an analysis of the impact of the governor's proposed revenue and expenditure plans for the next biennium;

(4) conduct research on matters of economic and fiscal policy and report to the legislature on the result of the research;

(5) provide economic reports and studies on the state of the state's economy, including trends and forecasts for consideration by the legislature;

(6) conduct budget and tax studies and provide general fiscal and budgetary information;

(7) review and make recommendations on the operation of state programs in order to appraise the implementation of state laws regarding the expenditure of funds and to recommend means of improving their efficiency;

(8) recommend to the legislature changes in the mix of revenue sources for programs, in the percentage of state expenditures devoted to major programs, and in the role of the legislature in overseeing state government expenditures and revenue projections;

(9) make a continuing study and investigation of the building needs of the government of the state of Minnesota, including, but not limited to the following: the current and future requirements of new buildings, the maintenance of existing buildings, rehabilitating and remodeling of old buildings, the planning for administrative offices, and the exploring of methods of financing building and related costs; and

(10) conduct a continuing study of state-local finance, analyzing and making recommendations to the legislature on issues including levels of state support for political subdivisions, basic levels of local need, balances of local revenues and options, relationship of local taxes to individuals' ability to pay, and financial reporting by political subdivisions. In conducting this study, the commission shall consult with the governor, the staff of executive branch agencies, and the governor's advisory commission on state-local relations.


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(b) In performing its duties under paragraph (a), the commission shall consider, among other things:

(1) the relative dependence on state tax revenues, federal funds, and user fees to support state-funded programs, and whether the existing mix of revenue sources is appropriate, given the purposes of the programs;

(2) the relative percentages of state expenditures that are devoted to major programs such as education, assistance to local government, aid to individuals, state agencies and institutions, and debt service; and

(3) the role of the legislature in overseeing state government expenditures, including legislative appropriation of money from the general fund, legislative appropriation of money from funds other than the general fund, state agency receipt of money into revolving and other dedicated funds and expenditure of money from these funds, and state agency expenditure of federal funds.

(c) The commission's recommendations must consider the long-term needs of the state. The recommendations must not duplicate work done by standing committees of the senate and house of representatives.

The commission shall report to the legislature on its activities and recommendations by January 15 of each odd-numbered year.

The commission shall provide the public with printed and electronic copies of reports and information for the legislature. Copies must be provided at the actual cost of furnishing each copy.

Sec. 8. [BICAMERAL ADMINISTRATION.]

By January 1, 1996, the legislative coordinating commission shall make recommendations to the house of representatives and senate on how to provide more efficient and effective legislative support facilities, functions, and services on a bicameral basis. The recommendations must address at least the following subjects: accounting, procurement, contracts, payroll, and other similar business services and systems; computers, telephones, and other office technology; and public access facilities and services, including television and public information.

Sec. 9. [REVISOR INSTRUCTION.]

(a) In the next and subsequent editions of Minnesota Statutes, the revisor shall substitute the term "legislative coordinating commission" for the term "legislative commission on employee relations" in the following sections: 15A.081, subdivisions 1, 7, and 7b; 43A.04, subdivision 7; 43A.05, subdivisions 3, 5, and 6; 43A.06, subdivision 4; 43A.17, subdivision 9; and 43A.18, subdivisions 2 and 3.

(b) In the next and subsequent editions of Minnesota Statutes, the revisor shall substitute the term "legislative coordinating commission" for the term "legislative commission on planning and fiscal policy" in the following sections: 15.91, subdivision 2; and 16A.712.

Sec. 10. [REPEALER.]

Minnesota Statutes 1994, sections 3.304, subdivision 2; 3.855, subdivision 1; 3.861; 3.863; 3.864; 3.873; 3.881; 3.882; 3.885, subdivisions 1a, 6, 7, and 8; 3.9227; and 256B.504, are repealed."

Delete the title and insert:

"A bill for an act relating to the legislature; providing for the organization and direction of various joint legislative services; abolishing certain legislative commissions and programs; amending Minnesota Statutes 1994, sections 3.303; 3.305; 3.85, subdivisions 5 and 12; 3.855, by adding a subdivision; and 3.885, subdivisions 3 and 5; repealing Minnesota Statutes 1994, sections 3.304, subdivision 2; 3.855, subdivision 1; 3.861; 3.863; 3.864; 3.873; 3.881; 3.882; 3.885, subdivisions 1a, 6, 7, and 8; 3.9227; and 256B.504."

With the recommendation that when so amended the bill pass.

The report was adopted.


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SECOND READING OF HOUSE BILLS

H. F. Nos. 809, 1014, 1473 and 1666 were read for the second time.

SECOND READING OF SENATE BILLS

S. F. Nos. 273, 440, 537 and 1290 were read for the second time.

SPECIAL ORDERS

Carruthers moved that the remaining bills on Special Orders for today be continued. The motion prevailed.

GENERAL ORDERS

Carruthers moved that the bills on General Orders for today be continued. The motion prevailed.

MOTIONS AND RESOLUTIONS

Kahn moved that the name of Winter be added as an author on H. F. No. 1807. The motion prevailed.

Frerichs moved that the following statement be printed in the Journal of the House: "It was my intention to vote in the affirmative on Tuesday, May 2, 1995, when the vote was taken on the repassage of H. F. No. 927, as amended by the Senate." The motion prevailed.

Wolf moved that the following statement be printed in the Journal of the House: "It was my intention to vote in the affirmative on Tuesday, May 2, 1995, when the vote was taken on the repassage of H. F. No. 927, as amended by the Senate." The motion prevailed.

Larsen moved that the following statement be printed in the Journal of the House: "It was my intention to vote in the affirmative on Tuesday, May 2, 1995, when the vote was taken on the Bettermann et al amendment to H. F. No. 1700, the second engrossment, as amended." The motion prevailed.

Schumacher moved that the following statement be printed in the Journal of the House: "It was my intention to vote in the negative on Tuesday, May 2, 1995, when the vote was taken on the Pawlenty amendment to H. F. No. 1844, the first engrossment." The motion prevailed.

Lynch moved that S. F. No. 910 be recalled from the Committee on Ways and Means and together with H. F. No. 1093, now on Technical General Orders, be referred to the Chief Clerk for comparison. The motion prevailed.

ADJOURNMENT

Carruthers moved that when the House adjourns today it adjourn until 12:00 noon, Thursday, May 4, 1995. The motion prevailed.

Carruthers moved that the House adjourn. The motion prevailed, and the Speaker declared the House stands adjourned until 12:00 noon, Thursday, May 4, 1995.

Edward A. Burdick, Chief Clerk, House of Representatives


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