Journal of the House - 70th Day - Thursday, February 5, 1998 - Top of Page 6357

STATE OF MINNESOTA

Journal of the House

EIGHTIETH SESSION 1998

__________________

SEVENTIETH DAY

Saint Paul, Minnesota, Thursday, February 5, 1998

 

The House of Representatives convened at 2:30 p.m. and was called to order by Dee Long, Speaker pro tempore.

Prayer was offered by Captain Norman S. Marshall, the Salvation Army, St. Paul, Minnesota.

Speaker pro tempore Long administered the oath office to the new House member, Ray Vandeveer, from District 51B. His certificate of election is on file. He was elected in a special election held on January 27, 1998, to replace Douglas G. Swenson whose resignation was effective on January 15, 1998.

The roll was called and the following members were present:

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

A quorum was present.

Carruthers, Goodno, Kielkucki, Leighton, Luther, Seagren, Stanek, Westrom and Winter were excused.

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


Journal of the House - 70th Day - Thursday, February 5, 1998 - Top of Page 6358

REPORTS OF STANDING COMMITTEES

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

H. F. No. 668, A bill for an act relating to occupations; enacting the Industrial Hygienist and Safety Professional Title Protection Act; providing title protection to the professions of industrial hygiene and safety; proposing coding for new law as Minnesota Statutes, chapter 182A.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. [182A.01] [SHORT TITLE.]

This chapter may be cited as the Industrial Hygienist and Safety Professional Title Protection Act.

Sec. 2. [182A.02] [PURPOSE.]

The purpose of the Industrial Hygienist and Safety Professional Title Protection Act is to provide legal recognition to the profession of industrial hygiene and safety, to assure the public that individuals representing themselves as industrial hygiene and safety professionals meet minimum qualifications, and to further public health and safety.

Sec. 3. [182A.03] [DEFINITIONS.]

Subdivision 1. [SCOPE.] The definitions in this section apply to this chapter.

Subd. 2. [ACCREDITED COLLEGE OR UNIVERSITY.] "Accredited college or university" means a college or university that is accredited by one of the following regional accrediting agencies: Middle States Association of Schools and Colleges, New England Association of Schools and Colleges, North Central Association of Colleges and Schools, Northwest Association of Schools and Colleges, Southern Association of Colleges and Schools, or Western Association of Colleges and Schools. A college or university that is located outside the United States is accredited if it is accredited by an agency within the jurisdiction of the college or university that has accreditation standards that are at least equal to the standards of the regional accrediting agencies.

Subd. 3. [AMERICAN BOARD OF INDUSTRIAL HYGIENE OR ABIH.] "American Board of Industrial Hygiene" or "ABIH" is the nonprofit corporation established to improve the practice and educational standards of the profession of industrial hygiene by certifying individuals who meet its education, experience, and examination requirements.

Subd. 4. [ASSOCIATE SAFETY PROFESSIONAL OR ASP.] "Associate safety professional" or "ASP" is an individual who has received the designation associate safety professional from the Board of Certified Safety Professionals and whose recognition has not lapsed or been revoked.

Subd. 5. [BOARD OF CERTIFIED SAFETY PROFESSIONALS OR BCSP.] "Board of Certified Safety Professionals" or "BCSP" is the nonprofit corporation established to improve the practice and education standards of the profession of safety by certifying individuals who meet its education, experience, examination, and maintenance requirements.

Subd. 6. [CERTIFIED INDUSTRIAL HYGIENIST OR CIH.] "Certified industrial hygienist" or "CIH" is an individual who has received the designation certified industrial hygienist from the American Board of Industrial Hygiene and whose certification has not lapsed or been revoked.

Subd. 7. [CERTIFIED SAFETY PROFESSIONAL OR CSP.] "Certified safety professional" or "CSP" is an individual who has received the designation certified safety professional from the Board of Certified Safety Professionals and whose certification has not lapsed or been revoked.


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Subd. 8. [CONSTRUCTION HEALTH AND SAFETY TECHNOLOGIST OR CHST.] "Construction health and safety technologist" or "CHST" is an individual who has been designated a construction health and safety technologist through joint certification by the American Board of Industrial Hygiene and the Board of Certified Safety Professionals and whose certification has not lapsed or been revoked.

Subd. 9. [INDUSTRIAL HYGIENE.] "Industrial hygiene" means the science and art devoted to control of those environmental factors and stresses arising in or from the workplace that may cause sickness, impaired health and well-being, or significant discomfort and inefficiency among workers and the general community.

Subd. 10. [INDUSTRIAL HYGIENIST OR IH.] "Industrial hygienist" or "IH" means an individual having the education and experience to practice industrial hygiene.

Subd. 11. [INDUSTRIAL HYGIENIST IN TRAINING OR IHIT.] "Industrial hygienist in training" or "IHIT" means an individual who has been designated industrial hygienist in training by the American Board of Industrial Hygiene whose designation has not lapsed or been revoked.

Subd. 12. [OCCUPATIONAL HEALTH AND SAFETY TECHNOLOGIST OR OHST.] "Occupational health and safety technologist" or "OHST" means an individual who has been designated an occupational health and safety technologist through joint certification by the American Board of Industrial Hygiene and the Board of Certified Safety Professionals and whose certification has not lapsed or been revoked.

Subd. 13. [SAFETY PROFESSION.] "Safety profession" means the science and art of hazard controls.

Sec. 4. [182A.04] [USE OF TITLE; INITIALS LIMITED.]

Subdivision 1. [PROHIBITION.] (a) A person may not use the title industrial hygienist, or the initials IH, or represent to the public that the person is an industrial hygienist, unless the person is an industrial hygienist as defined in section 182A.03.

(b) A person may not use the title industrial hygienist in training, or the initials IHIT, or represent to the public that the person is an industrial hygienist in training, unless the person is an industrial hygienist in training as defined in section 182A.03.

(c) A person may not use the title certified industrial hygienist, or the initials CIH, or represent to the public that the person is a certified industrial hygienist, unless the person is a certified industrial hygienist as defined in section 182A.03.

(d) A person may not use the title certified safety professional, or the initials CSP, or represent to the public that the person is a certified safety professional, unless the person is a certified safety professional as defined in section 182A.03.

(e) A person may not use the title associate safety professional, or the initials ASP, or represent to the public that the person is an associate safety professional, unless the person is an associate safety professional as defined in section 182A.03.

(f) A person may not use the title construction health and safety technologist, or the initials CHST, or represent to the public that the person is a construction health and safety technologist, unless the person is a construction health and safety technologist as defined in section 182A.03.

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

(1) an individual employed as an apprentice under the supervision of an industrial hygienist, certified industrial hygienist, certified safety professional, associate safety professional, construction health and safety technologist, or occupational health and safety technologist;

(2) a student of industrial hygiene or safety engaging in supervised activities related to industrial hygiene or safety;


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(3) a person engaged in activities permitted under a state or local license who does not use the title or initials of, or represent to the public that the person is an industrial hygienist, industrial hygienist in training, certified industrial hygienist, certified safety professional, associate safety professional, construction health and safety technologist, or occupational health and safety technologist;

(4) a person practicing industrial hygiene or safety, who does not use the title or initials of, or represent to the public that the person is an industrial hygienist, industrial hygienist in training, certified industrial hygienist, certified safety professional, associate safety professional, construction health and safety technologist, or occupational health and safety technologist; or

(5) a person practicing industrial hygiene or safety who is employed by the state of Minnesota.

Sec. 5. [182A.05] [ENFORCEMENT; REMEDIES.]

A violation of section 182A.04 is an unlawful practice under section 325F.69. A person who violates section 182A.04 is subject to the remedies provided in sections 325F.68 to 325F.70."

With the recommendation that when so amended the bill pass.

The report was adopted.

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

H. F. No. 690, A bill for an act relating to motor vehicles; imposing minimum fine on persons who violate compulsory insurance laws by operating on public streets or highways a motor vehicle registered under an insurance waiver; amending Minnesota Statutes 1996, section 169.797, subdivision 4.

Reported the same back with the following amendments:

Page 2, line 24, delete "1997" and insert "1998"

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

The report was adopted.

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

H. F. No. 1306, A bill for an act relating to health; requiring health plan coverage for off-label use of drugs; establishing an advisory council; proposing coding for new law in Minnesota Statutes, chapter 62Q.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. [62Q.525] [COVERAGE FOR OFF-LABEL DRUG USE.]

Subdivision 1. [SCOPE OF COVERAGE.] This section applies to all health plans, including the coverages described in section 62A.011, subdivision 3, clauses (7) and (10), that are issued or renewed to a Minnesota resident.


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Subd. 2. [DEFINITIONS.] (a) For purposes of this section, the terms defined in this subdivision have the meanings given them.

(b) "Medical literature" means articles from major peer reviewed medical journals that have recognized the drug or combination of drugs' safety and effectiveness for treatment of the indication for which it has been prescribed. Each article shall meet the uniform requirements for manuscripts submitted to biomedical journals established by the international committee of medical journal editors or be published in a journal specified by the United States Secretary of Health and Human Services pursuant to United States Code, title 42, section 1395x, paragraph (t), clause (2), item (B), as amended, as acceptable peer review medical literature. Each article must use generally acceptable scientific standards and must not use case reports to satisfy this criterion.

(c) "Off-label use of drugs" means when drugs are prescribed for treatments other than those stated in the labeling approved by the federal Food and Drug Administration.

(d) "Standard reference compendia" means:

(1) the United States Pharmacopeia Drug Information; or

(2) the American Hospital Formulary Service Drug Information.

Subd. 3. [REQUIRED COVERAGE.] (a) Every type of coverage included in subdivision 1 that provides coverage for drugs may not exclude coverage of a drug for the treatment of cancer on the ground that the drug has not been approved by the federal Food and Drug Administration for the treatment of cancer if the drug is recognized for treatment of cancer in one of the standard reference compendia or in one article in the medical literature, as defined in subdivision 2.

(b) Coverage of a drug required by this subdivision includes coverage of medically necessary services directly related to and required for appropriate administration of the drug.

(c) Coverage required by this subdivision does not include coverage of a drug not listed on the formulary of the coverage included in subdivision 1.

(d) Coverage of a drug required under this subdivision must not be subject to any copayment, coinsurance, deductible, or other enrollee cost-sharing greater than the coverage included in subdivision 1 applies to other drugs.

(e) The commissioner of commerce or health, as appropriate, may direct a person that issues coverage included in subdivision 1 to make payments required by this section.

Subd. 4. [CONSTRUCTION.] This section must not be construed to:

(1) alter existing law limiting the coverage of drugs that have not been approved by the federal Food and Drug Administration;

(2) require coverage for any drug when the federal Food and Drug Administration has determined its use to be contraindicated; or

(3) require coverage for experimental drugs not otherwise approved for any indication by the federal Food and Drug Administration.

Sec. 2. [EFFECTIVE DATE; APPLICATION.]

Section 1 is effective January 1, 1999, and applies to coverage issued or renewed on or after that date."

Amend the title as follows:

Page 1, lines 3 and 4, delete "establishing an advisory council;"

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

The report was adopted.


Journal of the House - 70th Day - Thursday, February 5, 1998 - Top of Page 6362

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

H. F. No. 1690, A bill for an act relating to watercraft; modifying provisions for the operation of personal watercraft; requiring insurance to obtain a personal watercraft license; amending Minnesota Statutes 1996, sections 86B.313, subdivisions 1 and 3; and 86B.401, subdivision 1.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"ARTICLE 1

STATEWIDE POLICY

Section 1. [TITLE.]

This act shall be called the Personal Watercraft Safety and Courtesy Control Act.

Sec. 2. Minnesota Statutes 1996, section 86B.005, is amended by adding a subdivision to read:

Subd. 8a. [SLOW SPEED.] "Slow speed" means operation of a watercraft at a leisurely speed, less than a planing speed, where the wake or wash created by the watercraft is minimal.

Sec. 3. Minnesota Statutes 1996, section 86B.005, subdivision 14a, is amended to read:

Subd. 14a. [PERSONAL WATERCRAFT.] "Personal watercraft" means a motorboat watercraft that:

(1) is powered by an inboard motor powering a water jet pump or by an outboard or propeller-driven motor; and

(2) is designed to be operated by a person or persons sitting, standing, or kneeling on the craft, rather than in the conventional manner of sitting or standing inside a motorboat.

Sec. 4. Minnesota Statutes 1996, section 86B.313, subdivision 1, is amended to read:

Subdivision 1. [GENERAL REQUIREMENTS.] In addition to requirements of other laws relating to watercraft, it is unlawful to operate or to permit the operation of a personal watercraft:

(1) without each person on board the personal watercraft wearing a United States Coast Guard approved Type I, II, III, or V personal flotation device;

(2) between sunset and 8:00 a.m.;

(3) at greater than slow-no wake speed within 100 200 feet of:

(i) a shoreline,;

(ii) a dock,;

(iii) a swimmer, or;

(iv) a raft used for swimming or diving raft; or

(v) a moored, anchored, or nonmotorized watercraft at greater than slow-no wake speed ;


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(4) while towing a person on water skis, a kneeboard, an inflatable craft, or any other device unless:

(i) an observer is on board; or

(ii) the personal watercraft is equipped with factory-installed or factory-specified accessory mirrors that give the operator a wide field of vision to the rear;

(5) without the lanyard-type engine cutoff switch being attached to the person, clothing, or personal flotation device of the operator, if the personal watercraft is equipped by the manufacturer with such a device;

(6) if any part of the spring-loaded throttle mechanism has been removed, altered, or tampered with so as to interfere with the return-to-idle system;

(7) chase or harass wildlife;

(8) through emergent or floating vegetation at other than a slow-no wake speed;

(9) in a manner that unreasonably or unnecessarily endangers life, limb, or property, including weaving through congested watercraft traffic, jumping the wake of another watercraft within 100 feet of the other watercraft, or operating the watercraft while facing backwards; or

(10) in any other manner that is not reasonable and prudent.

Sec. 5. Minnesota Statutes 1996, section 86B.313, is amended by adding a subdivision to read:

Subd. 2a. [RULES DECAL.] A personal watercraft may not be operated without a personal watercraft rules decal, issued by the commissioner, attached to the personal watercraft so as to be in full view and readable by the operator while underway.

Sec. 6. Minnesota Statutes 1996, section 86B.313, subdivision 3, is amended to read:

Subd. 3. [OPERATOR'S PERMIT PERSONAL WATERCRAFT CERTIFICATE.] (a) Except as provided in paragraphs (c) and (d), all operators of a personal watercraft, whether rented, owned, or borrowed for use, must obtain and have in possession a personal watercraft certificate. The commissioner shall issue a personal watercraft certificate to an applicant who is at least 16 years of age who:

(1) completes a personal watercraft education course approved by the commissioner;

(2) passes a test on personal watercraft as prescribed by the commissioner; and

(3) pays the required fee.

(b) The certificates must be issued by the commissioner by May 1, 2000, to operators between the ages of 16 and 25 years, and by May 1, 2001, to operators over the age of 25 years.

(c) The commissioner may recognize personal watercraft certificates or their equivalent issued by other states or countries.

(d) Except in the case of an emergency, a person 13 16 years of age or over but less than 18 years of age may not operate a personal watercraft, regardless of horsepower, without possessing a valid watercraft operator's permit personal watercraft certificate as required by this section 86B.305, unless there is a person 18 21 years of age or older on board the craft who possesses a personal watercraft certificate and to whom the watercraft's kill switch is attached. In addition to the permit requirement, a person 13 years of age operating a personal watercraft must maintain unaided observation by a person 18 years of age or older.


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(e) It is unlawful for the owner of a personal watercraft to permit the personal watercraft to be operated contrary to this subdivision.

(f) The fee for acquiring a personal watercraft certificate is $5. The fee must be deposited in a separate account in the natural resources fund and used for the purposes of training and testing personal watercraft operators.

Sec. 7. Minnesota Statutes 1996, section 86B.313, is amended by adding a subdivision to read:

Subd. 5. [CITIZEN COMPLAINTS; NUISANCE.] (a) An owner of lakeshore in this state, or a renter or guest of a lakeshore owner, may register a complaint for appropriate action with a local law enforcement officer if any personal watercraft is operated in one specific area of a lake for more than 30 consecutive minutes.

(b) Operation of a personal watercraft in one specific area of a lake for more than 30 consecutive minutes is a public nuisance under section 609.74.

Sec. 8. [86B.3135] [PERSONAL WATERCRAFT RESTRICTIONS.]

Subdivision 1. [PROHIBITION.] A personal watercraft shall not be operated at a speed greater than slow speed in:

(1) a state wildlife management area; or

(2) on a portion of a river designated under section 103F.325, Minnesota Rules, chapter 6105, or United States Code, title 16, section 127, et seq., as amended, with the following exceptions:

(i) the St. Croix river; and

(ii) the Mississippi river.

Subd. 2. [VIOLATION.] A personal watercraft operator shall not be penalized for violation of this section unless the public accesses to the body of water upon which the violation occurs are posted with a notice of the prohibition under subdivision 1 at the time of the violation.

Sec. 9. [86B.3136] [CIVIL PENALTY.]

Subdivision 1. [APPLICATION.] (a) Any of the following acts constitutes a civil violation:

(1) operation of a personal watercraft for more than 30 continuous minutes within 200 feet of an occupied shoreline, with a penalty of $75 for the first infraction and $100 for the second and each subsequent infraction;

(2) operation of a personal watercraft at times, locations, or in a manner other than allowed by law, rule, or ordinance, with a penalty of $50 for the first infraction and $75 for the second and each subsequent infraction;

(3) operation of a personal watercraft in a "slow-no wake" zone, within 200 feet of shore, or in any other regulated zone in excess of allowable speed, with a penalty of $50 for the first infraction and $75 for the second and each subsequent infraction; and

(4) operation of a personal watercraft following revocation of the personal watercraft certificate, with a penalty of $500 for the first infraction and $1,000 for the second and each subsequent infraction.

(b) Any combination of three civil citations under this section shall result in the revocation of the personal watercraft certificate of the person receiving the citations.

Subd. 2. [ISSUANCE.] Issuance of a civil penalty does not eliminate any other penalty or sanction provided by law, rule, or ordinance, except that a single course of conduct may result in either criminal or civil sanctions but not both.


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Subd. 3. [PAYMENT.] Civil penalties shall be payable to the commissioner of natural resources within 30 days. Funds derived from civil penalties shall be deposited in the water recreation account of the natural resources fund.

Subd. 4. [APPEALS.] Civil penalties may be appealed provided a written appeal is filed with the commissioner of natural resources within 15 days of the issuance of the civil penalty demand. Appeal procedures shall be pursuant to Minnesota Statutes, section 116.072, subdivision 6.

Subd. 5. [OTHER REMEDIES.] Nothing in this section shall be construed to limit the ability of law enforcement officers to apply appropriate remedies as provided by law, rule, or ordinance.

Subd. 6. [ENFORCEMENT.] This section may be enforced by all peace officers.

Sec. 10. [EFFECTIVE DATE.]

(a) Effective April 1, 1998, the commissioner may begin development of educational materials, administrative and testing procedures, and a records program to implement the personal watercraft certificate program under section 6.

(b) Sections 1 to 9 are effective May 1, 1998.

ARTICLE 2

LOCAL AUTHORITY

Section 1. [86B.314] [LOCAL AUTHORITY.]

Subdivision 1. [WATER BODIES 200 ACRES OR LESS.] No personal watercraft may be operated on a lake in the state that is 200 acres or less, as designated by the commissioner, unless the local unit of government where an exempted lake is located authorizes personal watercraft use.

Subd. 2. [SLOW SPEED.] A personal watercraft may not be operated at greater than slow speed between the hours of 8:00 a.m. and 10:00 a.m. and between 7:00 p.m. to sunset, unless the appropriate local unit of government authorizes a greater speed.

Sec. 2. [EFFECTIVE DATE.]

Section 1 is effective January 1, 1999.

ARTICLE 3

FEES, GRANTS, AND APPROPRIATIONS

Section 1. Minnesota Statutes 1996, section 86B.415, is amended by adding a subdivision to read:

Subd. 7a. [PERSONAL WATERCRAFT SURCHARGE.] A $30 surcharge for every three-year period is placed on each personal watercraft license issued under this section. The fee shall be deposited in the state treasury and credited to the personal watercraft account created under section 86B.803.

Sec. 2. [86B.803] [PERSONAL WATERCRAFT ACCOUNT.]

Subdivision 1. [CREATION.] There is created in the state treasury an account known as the personal watercraft account in the natural resources fund.

Subd. 2. [PURPOSE.] The money deposited in the account and interest earned on the money may be expended only as appropriated by law for enhancing state and local law enforcement capabilities related to personal watercraft and for training volunteers to assist county and state enforcement efforts.


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Subd. 3. [DISTRIBUTION OF FUNDS.] (a) Ten percent annually of the money credited to the account under section 86B.415, subdivision 7a, shall be used by the commissioner for purposes of this act.

(b) The money distributed to counties for personal watercraft enforcement capabilities shall be distributed by the commissioner in the following manner:

(1) 55 percent of the money appropriated shall be distributed to counties where more than 1,000 personal watercraft are used on an annual basis, as determined by the commissioner; and

(2) 35 percent of the money appropriated shall be distributed to counties where more than 250 but fewer than 1,000 personal watercraft are used on an annual basis, as determined by the commissioner.

(c) Counties must have a citizen or volunteer water patrol certified by the commissioner, or have one in completion stage, by July 1, 1999, in order to be eligible for funding under paragraph (b).

ARTICLE 4

MISCELLANEOUS

Section 1. [STUDY.]

The commissioner and nongame section of the department of natural resources must survey and analyze the impact of personal watercraft on loons in waters where loon nesting exists and report to the house and senate environment policy committees by January 1, 1999."

Delete the title and insert:

"A bill for an act relating to watercraft; modifying personal watercraft regulations; requiring a personal watercraft certificate; imposing a licensing surcharge on personal watercraft; creating a personal watercraft account; requiring a study; providing criminal and civil penalties; amending Minnesota Statutes 1996, sections 86B.005, subdivision 14a, and by adding a subdivision; 86B.313, subdivisions 1, 3, and by adding subdivisions; and 86B.415, by adding a subdivision; proposing coding for new law in Minnesota Statutes, chapter 86B."

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

The report was adopted.

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

H. F. No. 2231, A bill for an act relating to natural resources; prohibiting use of motorboats on certain waters in the boundary waters canoe area wilderness; providing a civil penalty; amending Minnesota Statutes 1996, section 97A.225, subdivision 1; proposing coding for new law in Minnesota Statutes, chapter 84.

Reported the same back with the following amendments:

Page 3, line 26, delete "must" and insert "may"

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

The report was adopted.


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

H. F. No. 2357, A bill for an act relating to local government; removing an age ceiling for new firefighters in Minneapolis; repealing Laws 1959, chapter 213.

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

The report was adopted.

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

H. F. No. 2430, A bill for an act relating to commerce; increasing continuing education requirements and contractor recovery fund fees for building contractors; modifying statutory housing warranties; extending the statute of limitations for actions relating to improvements to real property; amending Minnesota Statutes 1996, sections 16B.65, subdivision 7; 326.87, subdivision 2; 326.975, subdivisions 1, 2, and 3; 327A.01, subdivisions 2 and 5; 327A.02, subdivisions 1 and 3; 327A.03; and 541.051, subdivisions 1 and 4.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 1996, section 16B.61, is amended by adding a subdivision to read:

Subd. 3b. [RESIDENTIAL VENTILATION.] For a new residential building on which construction is begun on or after March 1, 1999, the code must require a mechanical ventilation system.

Sec. 2. Minnesota Statutes 1996, section 16B.65, subdivision 7, is amended to read:

Subd. 7. [CONTINUING EDUCATION.] Subject to sections 16B.59 to 16B.75, the commissioner may by rule establish or approve continuing education programs for municipal building officials dealing with matters of building code administration, inspection, and enforcement.

Effective January 1, 1985, each person certified as a building official for the state must satisfactorily complete applicable educational programs established or approved by the commissioner every three calendar years to retain certification, including at least three hours in programs relating to the state energy code.

Each person certified as a building official must submit in writing to the commissioner an application for renewal of certification within 60 days of the last day of the third calendar year following the last certificate issued. Each application for renewal must be accompanied by proof of satisfactory completion of minimum continuing education requirements and the certification renewal fee established by the commissioner.

For persons certified prior to January 1, 1985, the first three-year period commences January 1, 1985.

Sec. 3. Minnesota Statutes 1996, section 326.86, is amended by adding a subdivision to read:

Subd. 3. [APPROPRIATION.] Money collected as license fees pursuant to this section is appropriated to the commissioner to provide information to consumers on residential construction issues.

Sec. 4. Minnesota Statutes 1996, section 326.87, subdivision 2, is amended to read:

Subd. 2. [HOURS.] A qualifying person of a licensee must provide proof of completion of seven ten hours of continuing education per year. At least three hours of continuing education per year must relate to requirements of the state energy code. To the extent the commissioner considers it appropriate, courses or parts of courses may be considered to satisfy both continuing education requirements under this section and continuing real estate education requirements.


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Sec. 5. Minnesota Statutes 1996, section 326.975, subdivision 1, is amended to read:

Subdivision 1. [GENERALLY.] (a) In addition to any other fees, each applicant for a license under sections 326.83 to 326.98 shall pay a fee to the contractor's recovery fund. The contractor's recovery fund is created in the state treasury and must be administered by the commissioner in the manner and subject to all the requirements and limitations provided by section 82.34 with the following exceptions:

(1) each licensee who renews a license shall pay in addition to the appropriate renewal fee an additional fee which shall be credited to the contractor's recovery fund. The amount of the fee shall be based on the licensee's gross annual receipts for the licensee's most recent fiscal year preceding the renewal, on the following scale:

Fee Gross Receipts

$100 $200 under $1,000,000

$150 $300 $1,000,000 to $5,000,000

$200 $500 over 5,000,000

Any person who receives a new license shall pay a fee based on the same scale;

(2) the sole purpose of this fund is to compensate any aggrieved owner or lessee of residential property who obtains a final judgment in any court of competent jurisdiction against a licensee licensed under section 326.84, on grounds of fraudulent, deceptive, or dishonest practices, conversion of funds, or failure of performance or breach of warranty arising directly out of any transaction when the judgment debtor was licensed and performed any of the activities enumerated under section 326.83, subdivision 19, on the owner's residential property or on residential property rented by the lessee, or on new residential construction which was never occupied prior to purchase by the owner, or which was occupied by the licensee for less than one year prior to purchase by the owner, and which cause of action arose on or after April 1, 1994;

(3) nothing may obligate the fund for more than $50,000 per claimant, nor more than $50,000 per licensee; and

(4) nothing may obligate the fund for claims based on a cause of action that arose before the licensee paid the recovery fund fee set in clause (1), or as provided in section 326.945, subdivision 3.

(b) Should the commissioner pay from the contractor's recovery fund any amount in settlement of a claim or toward satisfaction of a judgment against a licensee, the license shall be automatically suspended upon the effective date of an order by the court authorizing payment from the fund. No licensee shall be granted reinstatement until the licensee has repaid in full, plus interest at the rate of 12 percent a year, twice the amount paid from the fund on the licensee's account, and has obtained a surety bond issued by an insurer authorized to transact business in this state in the amount of at least $40,000 $50,000.

Sec. 6. Minnesota Statutes 1996, section 327A.01, subdivision 2, is amended to read:

Subd. 2. [BUILDING STANDARDS.] "Building standards" means the structural, mechanical, electrical, and quality standards of the home building industry for the geographic area in which the dwelling is situated. For those geographic areas where the state building code adopted by the commissioner of administration according to sections 16B.59 to 16B.75 is in effect, "building standards" shall be no less rigorous than the state building code.

Sec. 7. Minnesota Statutes 1996, section 327A.01, subdivision 5, is amended to read:

Subd. 5. [MAJOR CONSTRUCTION DEFECT.] "Major construction defect" means actual damage to the load-bearing portion of the dwelling or the home improvement, including damage due to subsidence, expansion or lateral movement of the soil, which affects the load-bearing function and which vitally substantially affects or is imminently likely to vitally substantially affect use of the dwelling or the home improvement for residential purposes. "Major construction defect" does not include damage due to movement of the soil caused by flood, earthquake or other natural disaster.


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Sec. 8. Minnesota Statutes 1996, section 327A.02, subdivision 1, is amended to read:

Subdivision 1. [WARRANTIES BY VENDORS.] (a) In every sale of a completed dwelling, and in every contract for the sale of a dwelling to be completed, the vendor shall warrant to the vendee that:

(a) (1) during the one-year two-year period from and after the warranty date the dwelling shall be free from defects caused by faulty workmanship and defective materials due to noncompliance with building standards;

(b) (2) during the two-year three-year period from and after the warranty date, the dwelling shall be free from defects caused by faulty workmanship and defective materials caused by noncompliance with building standards relating to the installation of plumbing, electrical, heating, and cooling systems; and

(c) (3) during the ten-year period from and after the warranty date, the dwelling shall be free from major construction defects.

(b) The warranties provided by this chapter are transferred automatically with conveyance of the property and benefit the initial vendee and all future vendees.

Sec. 9. Minnesota Statutes 1996, section 327A.02, subdivision 3, is amended to read:

Subd. 3. [HOME IMPROVEMENT WARRANTIES.] (a) In a sale or in a contract for the sale of home improvement work involving major structural changes or additions to a residential building, the home improvement contractor shall warrant to the owner that:

(1) during the one-year two-year period from and after the warranty date the home improvement shall be free from defects caused by faulty workmanship and defective materials due to noncompliance with building standards; and

(2) during the ten-year period from and after the warranty date the home improvement shall be free from major construction defects.

(b) In a sale or in a contract for the sale of home improvement work involving the installation of plumbing, electrical, heating or cooling systems, the home improvement contractor shall warrant to the owner that, during the two-year three-year period from and after the warranty date, the home improvement shall be free from defects caused by the faulty workmanship and defective materials caused by noncompliance with building standards relating to the installation of the system or systems.

(c) In a sale or in a contract for the sale of any home improvement work not covered by paragraph (a) or (b), the home improvement contractor shall warrant to the owner that, during the one-year two-year period from and after the warranty date, the home improvement shall be free from defects caused by faulty workmanship or defective materials due to noncompliance with building standards.

Sec. 10. Minnesota Statutes 1996, section 327A.03, is amended to read:

327A.03 [EXCLUSIONS.]

The liability of the vendor or the home improvement contractor under sections 327A.01 to 327A.07 is limited to the specific items set forth in sections 327A.01 to 327A.07 and does not extend to the following:

(a) Loss or damage not reported by the vendee or the owner to the vendor or the home improvement contractor in writing within six months two years after the vendee or the owner discovers or should have discovered the loss or damage;

(b) Loss or damage caused by defects in design, installation, or materials which the vendee or the owner supplied, installed, or directed to be installed;

(c) Secondary loss or damage such as personal injury or property damage;


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(d) Loss or damage from normal wear and tear;

(e) Loss or damage from normal shrinkage caused by drying of the dwelling or the home improvement within tolerances of building standards;

(f) Loss or damage from dampness and condensation due to insufficient ventilation after occupancy, when the inadequate ventilation is attributable to conditions resulting from compliance with requirements of the state energy code in effect at the time of construction;

(g) Loss or damage from negligence, improper maintenance or alteration of the dwelling or the home improvement by parties other than the vendor or the home improvement contractor;

(h) Loss or damage from changes in grading of the ground around the dwelling or the home improvement by parties other than the vendor or the home improvement contractor;

(i) Landscaping or insect loss or damage;

(j) Loss or damage from failure to maintain the dwelling or the home improvement in good repair;

(k) Loss or damage which the vendee or the owner, whenever feasible, has not taken timely action to minimize;

(l) Loss or damage which occurs after the dwelling or the home improvement is no longer used primarily as a residence;

(m) Accidental loss or damage usually described as acts of God, including, but not limited to: fire, explosion, smoke, water escape, windstorm, hail or lightning, falling trees, aircraft and vehicles, flood, and earthquake, except when the loss or damage is caused by failure to comply with building standards;

(n) Loss or damage from soil movement which is compensated by legislation or covered by insurance;

(o) Loss or damage due to soil conditions where construction is done upon lands owned by the vendee or the owner and obtained by the vendee or owner from a source independent of the vendor or the home improvement contractor;

(p) In the case of home improvement work, loss or damage due to defects in the existing structure and systems not caused by the home improvement.

Sec. 11. Minnesota Statutes 1996, section 541.051, subdivision 1, is amended to read:

Subdivision 1. (a) Except where fraud is involved, no action by any person in contract, tort, or otherwise to recover damages for any injury to property, real or personal, or for bodily injury or wrongful death, arising out of the defective and unsafe condition of an improvement to real property, nor any action for contribution or indemnity for damages sustained on account of the injury, shall be brought against any person performing or furnishing the design, planning, supervision, materials, or observation of construction or construction of the improvement to real property or against the owner of the real property more than two three years after discovery of the injury or, in the case of an action for contribution or indemnity, accrual of the cause of action, nor, in any event shall such a cause of action accrue more than ten years after substantial completion of the construction. Date of substantial completion shall be determined by the date when construction is sufficiently completed so that the owner or the owner's representative can occupy or use the improvement for the intended purpose.

(b) For purposes of paragraph (a), a cause of action accrues upon discovery of the injury or, in the case of an action for contribution or indemnity, upon payment of a final judgment, arbitration award, or settlement arising out of the defective and unsafe condition.

(c) Nothing in this section shall apply to actions for damages resulting from negligence in the maintenance, operation or inspection of the real property improvement against the owner or other person in possession.

(d) The limitations prescribed in this section do not apply to the manufacturer or supplier of any equipment or machinery installed upon real property.


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Sec. 12. Minnesota Statutes 1996, section 541.051, subdivision 4, is amended to read:

Subd. 4. This section shall not apply to actions based on breach of the statutory warranties set forth in section 327A.02, or to actions based on breach of an express written warranty, provided such actions shall be brought within two three years of the discovery of the breach.

Sec. 13. [DISCLOSURE, CATEGORY 1; CATEGORY 2.]

Prior to March 1, 1999, a builder shall disclose in writing to a purchaser before execution of a purchase contract whether the residential building to be constructed is a category 1 or category 2 building, as defined in Minnesota Rules, part 7670.0470, subpart 6, item A. The disclosure shall include an explanation of the difference between the categories in respect of ventilation systems.

Sec. 14. [PUBLIC EDUCATION CAMPAIGN.]

The department of administration shall establish a public education campaign to educate the public about homeowners' and purchasers' rights under this chapter and about ways to recognize safety and health issues that may arise when purchasing a home, including potential moisture and indoor air quality problems.

Sec. 15. [EFFECTIVE DATE.]

Sections 6 to 12 are effective for housing warranties which take effect on or after June 1, 1999.

Section 13 is effective May 1, 1998."

Delete the title and insert:

"A bill for an act relating to commerce; increasing continuing education requirements and contractor recovery fund fees for building contractors; modifying statutory housing warranties; extending the statute of limitations for actions relating to improvements to real property; appropriating money; amending Minnesota Statutes 1996, sections 16B.61, by adding a subdivision; 16B.65, subdivision 7; 326.86, by adding a subdivision; 326.87, subdivision 2; 326.975, subdivision 1; 327A.01, subdivisions 2 and 5; 327A.02, subdivisions 1 and 3; 327A.03; and 541.051, subdivisions 1 and 4."

With the recommendation that when so amended the bill pass and be re-referred to the Committee on Economic Development and International Trade.

The report was adopted.

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

H. F. No. 2515, A bill for an act relating to natural resources; modifying membership of the forest resources council; amending Minnesota Statutes 1996, section 89A.03, subdivision 1.

Reported the same back with the following amendments:

Page 2, line 10, delete "one of the 11 Indian tribes represented on" and insert "a representative recommended by"

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

The report was adopted.


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

H. F. No. 2608, A bill for an act relating to Anoka county; authorizing the issuance of bonds for the construction of library buildings and an annual levy for debt retirement; amending Laws 1984, chapter 380, sections 1, as amended, and 2.

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

The report was adopted.

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

H. F. No. 2610, A bill for an act relating to the city of Rochester; authorizing the city to impose permanent sales, use, and excise taxes; specifying purposes for expenditures of the proceeds of the taxes; requiring a referendum on the expenditures.

Reported the same back with the following amendments:

Page 1, line 14, after "sales" insert "and use"

Page 1, line 15, delete everything after "percent" and insert a period

Page 1, delete lines 16 to 20 and insert "The provisions of Minnesota Statutes, section 297A.48, govern the imposition, administration, collection, and enforcement of the tax authorized under this subdivision."

Page 2, delete lines 4 to 9

Page 2, line 10, delete "4" and insert "3"

Page 2, line 22, delete "5" and insert "4"

Page 2, line 35, delete "6" and insert "5"

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

The report was adopted.

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

H. F. No. 2627, A bill for an act relating to regional development commissions; appropriating money for regional planning.

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

The report was adopted.

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

H. F. No. 2635, A bill for an act relating to regional development commissions; authorizing the headwaters regional development commission to establish a nonprofit housing corporation; proposing coding for new law in Minnesota Statutes, chapter 462.

Reported the same back with the recommendation that the bill pass and be re-referred to the Committee on Local Government and Metropolitan Affairs.

The report was adopted.


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

H. F. No. 2654, A bill for an act relating to public safety; allowing personalized license plates to be issued for certain trucks resembling pickup trucks; driving while impaired; clarifying that juvenile's age as it relates to DWI-related driver's license revocation refers to the date of violation instead of the date of conviction; providing reasonable time to petition for driver's license reinstatement; ensuring uniformity of amount of handling charge allowed for certain driver's license reinstatements; amending Minnesota Statutes 1996, section 168.12, subdivision 2a; Minnesota Statutes 1997 Supplement, sections 169.121, subdivision 4; 171.19; and 171.20, subdivision 4.

Reported the same back with the following amendments:

Page 3, after line 2, insert:

"Sec. 2. Minnesota Statutes 1996, section 168A.01, is amended by adding a subdivision to read:

Subd. 17c. [SECURE REASSIGNMENT.] "Secure reassignment" means a separate form that (1) may be used by a dealer to assign and warrant title to a vehicle; (2) is prescribed by the department; and (3) contains security features complying with the Motor Vehicle Information and Cost Savings Act, as amended, codified at United States Code, title 49, chapter 327, and regulations of the United States Department of Transportation adopted under that act.

Sec. 3. Minnesota Statutes 1996, section 168A.11, subdivision 1, is amended to read:

Subdivision 1. [APPLICATION UPON TRANSFER.] If a dealer buys a vehicle and holds it for resale and procures the certificate of title from the owner, and complies with subdivision 2 hereof, the dealer need not apply for a certificate of title, but upon transferring the vehicle to another person other than by the creation of a security interest shall promptly execute the assignment and warranty of title by a dealer, showing the names and addresses of the transferee and of any secured party holding a security interest created or reserved at the time of the resale, and the date of the security agreement in the spaces provided therefor on the certificate or secure reassignment. With respect to motor vehicles subject to the provisions of section 325E.15, the dealer shall also, in the space provided therefor on the certificate or secure reassignment, state the true cumulative mileage registered on the odometer or that the exact mileage is unknown if the odometer reading is known by the transferor to be different from the true mileage. The transferee shall complete the application for title section on the certificate of title or separate title application form prescribed by the department. The dealer shall mail or deliver the certificate to the department with the transferee's application for a new certificate and appropriate taxes and fees, within ten days."

Page 5, lines 31 and 32, reinstate the stricken language

Page 6, after line 6, insert:

"Sec. 7. Minnesota Statutes 1997 Supplement, section 171.29, subdivision 2, is amended to read:

Subd. 2. [FEES, ALLOCATION.] (a) A person whose driver's license has been revoked as provided in subdivision 1, except under section 169.121 or 169.123, shall pay a $30 fee before the driver's license is reinstated.

(b) A person whose driver's license has been revoked as provided in subdivision 1 under section 169.121 or 169.123 shall pay a $250 fee plus a $10 surcharge before the driver's license is reinstated. The $250 fee is to be credited as follows:

(1) Twenty percent shall be credited to the trunk highway fund.

(2) Fifty-five percent shall be credited to the general fund.

(3) Eight percent shall be credited to a separate account to be known as the bureau of criminal apprehension account. Money in this account may be appropriated to the commissioner of public safety and the appropriated amount shall be apportioned 80 percent for laboratory costs and 20 percent for carrying out the provisions of section 299C.065.


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(4) Twelve percent shall be credited to a separate account to be known as the alcohol-impaired driver education account. Money in the account is appropriated as follows:

(i) The first $200,000 in a fiscal year is to the commissioner of children, families, and learning for programs in elementary and secondary schools.

(ii) The remainder credited in a fiscal year is appropriated to the commissioner of transportation to be spent as grants to the Minnesota highway safety center at St. Cloud State University for programs relating to alcohol and highway safety education in elementary and secondary schools.

(5) Five percent shall be credited to a separate account to be known as the traumatic brain injury and spinal cord injury account. $100,000 is annually appropriated from the account to the commissioner of human services for traumatic brain injury case management services. The remaining money in the account is annually appropriated to the commissioner of health to establish and maintain the traumatic brain injury and spinal cord injury registry created in section 144.662 and to reimburse the commissioner of economic security for the reasonable cost of services provided under section 268A.03, clause (o).

(c) The $10 surcharge shall be credited to a separate account to be known as the remote electronic alcohol monitoring pilot program account. The commissioner shall transfer the balance of this account to the commissioner of finance on a monthly basis for deposit in the general fund.

(d) When these fees are collected by a county-operated office of deputy registrar, a handling charge is imposed in the amount specified under section 168.33, subdivision 7. The handling charge must be deposited in the treasury of the place for which the deputy registrar was appointed and the reinstatement fees and surcharge must be deposited in an approved state depository as directed under section 168.33, subdivision 2.

Sec. 8. [EFFECTIVE DATE.]

Sections 2 and 3 are effective the day following final enactment."

Renumber the sections in sequence

Amend the title as follows:

Page 1, line 4, delete "driving while impaired" and insert "providing for separate form for assignment of vehicle title"

Page 1, line 12, delete "section" and insert "sections" and after the semicolon, insert "168A.01, by adding a subdivision; and 168A.11, subdivision 1;"

Page 1, line 14, delete "and" and before the period, insert "; and 171.29, subdivision 2"

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

The report was adopted.

Long from the Committee on Taxes to which was referred:

H. F. No. 2659, A bill for an act relating to taxation; making technical changes to income, franchise, sales, excise, property, healthcare provider, and gambling taxes; making technical changes to tax administrative provisions; amending Minnesota Statutes 1996, sections 270.06; 270.069, subdivision 1; 270.70, subdivision 15; 278.10; 289A.42, subdivision 2; 289A.65, subdivisions 7 and 8; 297E.15, subdivisions 8 and 9; Minnesota Statutes 1997 Supplement, sections 270.701, subdivision 2; 289A.09, subdivision 2; 289A.20, subdivision 2; 289A.38, subdivision 7; 290.0673, subdivisions 4, 5, and 7;


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290.92, subdivision 30; 290B.04, subdivision 1; 290B.05, subdivisions 1, 2, and 3; 290B.06; 290B.08, subdivision 1; 295.53, subdivision 4a; 297A.01, subdivisions 3 and 11; 297F.22, subdivisions 6 and 7; and 297G.21, subdivisions 6 and 7; repealing Minnesota Statutes 1997 Supplement, section 290B.04, subdivision 3.

Reported the same back with the following amendments:

Page 20, after line 4, insert:

"Section 1. Minnesota Statutes 1997 Supplement, section 3.987, subdivision 2, is amended to read:

Subd. 2. [MANDATE EXPLANATIONS.] Any bill introduced in the legislature after June 30, 1997, Before a committee hearing on a bill that seeks to impose program or financial mandates on political subdivisions must include an attachment from, the author must provide the committee with a note that gives appropriate responses to the following guidelines. It The note must state and list:

(1) the policy goals that are sought to be attained, the performance standards that are to be imposed, and an explanation why the goals and standards will best be served by requiring compliance by political subdivisions;

(2) performance standards that will allow political subdivisions flexibility and innovation of method in achieving those goals;

(3) the reasons for each prescribed standard and the process by which each standard governs input such as staffing and other administrative aspects of the program;

(4) the sources of additional revenue, in addition to existing funding for similar programs, that are directly linked to imposition of the mandates that will provide adequate and stable funding for their requirements;

(5) what input has been obtained to ensure that the implementing agencies have the capacity to carry out the delegated responsibilities; and

(6) the reasons why less intrusive measures such as financial incentives or voluntary compliance would not yield the equity, efficiency, or desired level of statewide uniformity in the proposed program."

Page 30, line 33, delete "3 and 5 to 13" and insert "4 and 6 to 14"

Page 30, line 35, delete "4" and insert "5"

Delete page 31, line 1, to page 34, line 34

Renumber the sections in sequence

Amend the title as follows:

Page 1, line 5, after the semicolon, insert "requiring mandate explanations be attached to legislative bills before committee hearings;"

Page 1, line 10, after "sections" insert "3.987, subdivision 2;"

Page 1, line 13, delete everything after the first semicolon

Page 1, delete line 14

Page 1, line 15, delete "subdivision 1;"


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Page 1, line 17, delete everything after "7" and insert a period

Page 1, delete lines 18 and 19

With the recommendation that when so amended the bill pass.

The report was adopted.

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

H. F. No. 2700, A bill for an act relating to Brown county; authorizing the formation of a nonprofit corporation by Brown county.

Reported the same back with the following amendments:

Page 1, delete section 1 and insert:

"Section 1. [BROWN COUNTY ECONOMIC DEVELOPMENT CORPORATION.]

(a) The Brown county board of commissioners may create a nonprofit corporation under Minnesota Statutes, chapter 317A, for the purposes of economic development and related activities. The corporation shall have the following specific powers, in addition to other powers otherwise provided by law:

(1) to purchase, hold, lease, sell, develop, mortgage, encumber, or otherwise acquire or dispose of property, whether real, personal, or mixed, tangible, or intangible;

(2) to issue bonds, debentures, or obligations of the corporation from time to time for any of the corporate purposes, and to secure them by mortgage pledge, deed, trust, or otherwise;

(3) to acquire the goodwill, rights, property, and assets of all kinds, and to undertake the whole or any part of the liabilities of any person, firm, association, or corporation;

(4) to give any guaranty for the performance of any obligation or understanding; and

(5) to provide a reasonable amount of operating capital for material assistance in the accomplishment of the corporate purposes.

(b) Beginning July 1, 1998:

(1) the corporation is a limited liability company created by the county and is a government entity subject to all laws as if it were a part of the county, except:

(2) a meeting of the board of directors of the corporation, which otherwise must comply with Minnesota Statutes, section 471.705, may be closed when discussing information about a business if public dissemination might divulge proprietary matters, or competitive business strategies to the detriment of participating or prospective businesses;

(3) the corporation must submit an annual budget and independent audit to the county board that must be made available to the public; the state auditor may conduct the audit, but it must be conducted separately from the audit the state auditor conducts of Brown county;

(4) before an expenditure of $100,000 or more may be made, whether by a grant, loan, or otherwise, the expenditure must be approved by the Brown county board of commissioners after a public hearing called by the board with at least ten days' published notice in the official newspaper of the county;


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(5) the issuance of bonds, debentures, or other obligations does not constitute a general obligation of the county and is not subject to Minnesota Statutes, chapter 475;

(6) the corporation is not subject to Minnesota Statutes, section 471.345; and

(7) an officer or employee of the corporation is not a "public employee" within the meaning of Minnesota Statutes, section 353.01, subdivision 2, nor is the position a "public employment position" within the meaning of Minnesota Statutes, section 375.58, subdivision 1."

With the recommendation that when so amended the bill pass.

The report was adopted.

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

H. F. No. 2710, A bill for an act relating to appropriations; authorizing state bonds; appropriating money for the visitors' center at the Minnesota Agricultural Interpretive Center.

Reported the same back with the recommendation that the bill be re-referred to the Committee on Economic Development and International Trade without further recommendation.

The report was adopted.

Skoglund from the Committee on Judiciary to which was referred:

H. F. No. 2734, A bill for an act relating to corrections; registration of sexual offenders; requiring certain offenders moving into Minnesota to register within five days; authorizing adult and juvenile offender registration information to be maintained together; expanding prosecutional jurisdiction; amending Minnesota Statutes 1996, section 243.166, subdivisions 1 and 5; Minnesota Statutes 1997 Supplement, section 244.166, subdivision 4.

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

The report was adopted.

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

H. F. No. 2736, A bill for an act relating to counties; authorizing gifts to certain food distribution organizations; amending Minnesota Statutes 1996, section 465.039.

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

The report was adopted.

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

H. F. No. 2746, A bill for an act relating to traffic regulations; modifying provisions relating to school bus safety; amending Minnesota Statutes 1996, sections 123.805, subdivision 1; 124.225, subdivisions 7f and 8m; and 169.451, subdivision 5; Minnesota Statutes 1997 Supplement, section 169.01, subdivision 6; repealing Minnesota Statutes 1997 Supplement, section 169.452.

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

The report was adopted.


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

H. F. No. 2748, A bill for an act relating to families; establishing the Minnesota family asset initiative for education, housing, and economic development; appropriating money; proposing coding for new law as Minnesota Statutes, chapter 119C.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. [119C.01] [ESTABLISHMENT.]

The Minnesota family assets for independence initiative is established to provide incentives for low-income families to accrue assets for education, housing, and economic development purposes.

Sec. 2. [119C.02] [DEFINITIONS.]

Subdivision 1. [FAMILY ASSET ACCOUNT.] "Family asset account" means a savings account opened by a household participating in the Minnesota family assets for independence initiative.

Subd. 2. [COMMISSIONER.] "Commissioner" means the commissioner of children, families, and learning.

Subd. 3. [FIDUCIARY ORGANIZATION.] "Fiduciary organization" means:

(1) a community action agency that has obtained recognition under section 268.53;

(2) a community development credit union that:

(i) has a dual mission of promoting community development and providing high quality services to predominantly low-income people;

(ii) serves an investment area or targeted population;

(iii) provides development services in conjunction with equity investments or loans, directly or through a subsidiary or affiliate;

(iv) maintains, through representation on its governing board or otherwise, accountability to residents of its investment area or targeted population; and

(v) is not an agency or instrumentality of the United States, or of the state or a political subdivision of the state; or

(3) WomenVenture.

Subd. 4. [ELIGIBLE EDUCATIONAL INSTITUTION.] "Eligible educational institution" means:

(1) an institution described in United States Code, title 20, section 1088(a)(1) or 1141(a); and

(2) an area vocational education school as defined in United States Code, title 20, section 2471(4)(C) or (D).

Subd. 5. [FINANCIAL INSTITUTION.] "Financial institution" means a bank, bank and trust, savings bank, savings association, or credit union, the deposits of which are insured by the Federal Deposit Insurance Corporation or the National Credit Union Administration.


Journal of the House - 70th Day - Thursday, February 5, 1998 - Top of Page 6379

Subd. 6. [POST-SECONDARY EDUCATIONAL EXPENSES.] "Post-secondary educational expenses" means:

(1) tuition and fees required for the enrollment or attendance of a student at an eligible educational institution; and

(2) fees, books, supplies, and equipment required for courses of instruction at an eligible educational institution.

Subd. 7. [QUALIFIED ACQUISITION COSTS.] "Qualified acquisition costs" means the costs of acquiring, constructing, or reconstructing a residence, including any usual or reasonable settlement, financing, or other closing costs.

Subd. 8. [QUALIFIED BUSINESS.] "Qualified business" means any business that does not contravene any law or public policy.

Subd. 9. [QUALIFIED BUSINESS CAPITALIZATION EXPENSES.] "Qualified business capitalization expenses" means qualified expenditures for the capitalization of a business pursuant to a qualified plan.

Subd. 10. [QUALIFIED EXPENDITURES.] "Qualified expenditures" means expenditures included in a qualified plan, including capital, plant, equipment, working capital, and inventory expenses.

Subd. 11. [QUALIFIED PLAN.] "Qualified plan" means a business plan that:

(1) is approved by a financial institution, or by a nonprofit loan fund or microenterprise program that has demonstrated fiduciary integrity;

(2) includes a description of services or goods to be sold, a marketing plan, and projected financial statements; and

(3) may require the participant to obtain the assistance of an experienced entrepreneurial adviser.

Subd. 12. [QUALIFIED PRINCIPAL RESIDENCE.] "Qualified principal residence" means a principal residence within the meaning of section 1034 of the Internal Revenue Code of 1986, the qualified acquisition costs of which do not exceed 100 percent of the average area purchase price applicable to the residence determined according to section 143(e)(2) and (3) of the Internal Revenue Code of 1986.

Subd. 13. [FEDERAL POVERTY LEVEL.] "Federal poverty level" means the poverty income guidelines published in the most recent calendar year by the United States Department of Health and Human Services.

Subd. 14. [HOUSEHOLD.] "Household" means all individuals who share use of a dwelling unit as primary quarters for living and eating separate from other individuals.

Sec. 3. [119C.03] [GRANTS APPLICATION.]

Subdivision 1. [GRANTS AWARDED.] The commissioner shall award grants to fiduciary organizations to provide family asset services under this chapter for up to four years.

The commissioner will apportion available state and federal grant funds among applicants in proportion to the size of the poverty level population in the agency's service area compared to the size of the poverty level population in the state. For fiduciary organizations which are not community action agencies under section 268.53, the commissioner will identify the organization's service population for purposes of apportioning grant funds.

Subd. 2. [APPLICATIONS.] A fiduciary organization may apply to the commissioner for a grant to provide family asset services. The application must be submitted in a form approved by the commissioner and must include:

(1) a proposal for the provision of family asset services, including program objectives, number of participating households, match rate, availability of adequate funding, appropriateness of the proposed services for the population to be served, and outreach activities;


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(2) a proposed budget;

(3) a plan for collection of required data and the method to be used for program evaluation;

(4) evidence of the participation in the development of the application of any agency or governmental body that will provide services or assistance to the program; and

(5) any other information the commissioner may require.

Subd. 3. [DUTIES.] A fiduciary organization that receives a grant under this chapter shall:

(1) establish an account in which all funds provided to the organization for the purpose of the family assets for independence initiative are deposited;

(2) determine whether an applicant household is eligible to participate in the family assets for independence initiative;

(3) select, from eligible households, the households best suited to participate, with preference given to individuals residing within neighborhoods or communities that experience low rates of income or employment;

(4) develop, with the household, a family asset agreement;

(5) provide households with economic literacy education, including information on budgeting, use of credit, homeownership, and long-term financial planning;

(6) provide matching deposits for households selected to participate;

(7) coordinate with homeownership, small business, and related programs administered by the commissioner of trade and economic development and the commissioner of the Minnesota housing finance agency;

(8) establish a grievance committee and a procedure to hear, review, and decide in writing any grievance made by a household; and

(9) comply with all requirements of this chapter and of the commissioner related to administration of the grants.

Sec. 4. [119C.04] [HOUSEHOLD ELIGIBILITY; PARTICIPATION.]

Subdivision 1. [INITIAL ELIGIBILITY.] To be eligible for the family assets for independence initiative, the household's income must be below 200 percent of the federal poverty level. An individual who is a dependent of another person for federal income tax purposes may not be a separate eligible household for purposes of this chapter, but may be included in the household of the taxpayer who claims the individual as a dependent if they meet the definition of household in section 119C.02, subdivision 14. In verifying income eligibility, the fiduciary organization shall apply procedures and policies consistent with procedures and policies used under the low-income home energy assistance program.

Subd. 2. [PARTICIPATION.] To participate in the family assets for independence initiative, a household must:

(1) be selected by a fiduciary organization;

(2) enter into a family asset agreement with a fiduciary organization; and

(3) open a savings account at a financial institution.

Subd. 3. [FAMILY ASSET AGREEMENT; CONTENTS.] The fiduciary organization and the household must develop a family asset agreement for the household. The family asset agreement must include the amount of the household's regularly scheduled contribution to their savings account, the household's savings goal, and how the household will use savings and matching funds for one or more permissible uses. The household must agree to complete an economic literacy training program. A family asset agreement may be amended upon agreement by the household and the agency.


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Subd. 4. [INDIVIDUAL CONTRIBUTIONS.] A household may only deposit money in a family asset account that is derived from earned income of members of the household and income from state and federal earned income credits of members of the household.

Sec. 5. [119C.05] [WITHDRAWAL; MATCHING; PERMISSIBLE USES.]

Subdivision 1. [WITHDRAWAL OF FUNDS.] To receive a match upon withdrawal of funds from a family asset account, a participant must make a request for withdrawal of funds and agree to transfer withdrawn funds to the fiduciary organization. The fiduciary organization must determine whether the request for withdrawal of funds is for a permissible use consistent with this section and the household's family asset agreement. A "permissible use" means using funds to pay for:

(1) post-secondary educational expenses;

(2) qualified home acquisition costs;

(3) qualified business capitalization expenses; or

(4) amounts paid for repairs to a qualified principal residence to comply with city housing or health and safety codes or for other major repairs or improvements to a qualified principal residence.

Subd. 2. [MATCHING.] If the request for withdrawal is approved, a household's account will be matched at the time of withdrawal based on the balance in the household's account, including interest, at the time of withdrawal. Matches must be provided as follows:

(1) from the funds provided by the commissioner, a matching contribution of $2 for every $1 of funds withdrawn from the family asset account;

(2) from funds other than those provided by the commissioner, a matching contribution of no less than $2 for every $1 of funds withdrawn from the family asset account.

Subd. 3. [VENDOR PAYMENT OF WITHDRAWN FUNDS.] Upon receipt of withdrawn funds, the agency shall make a direct payment to the vendor of the goods or services being purchased by the household.

Sec. 6. [119C.06] [EXCLUSION OF PARTICIPANT INCOME AND ASSETS.]

The commissioner of human services shall exclude money in a family asset account when calculating assets and shall exclude interest income from the account when calculating eligibility for general assistance, general assistance medical care, and the statewide Minnesota family investment program. Up to $25 a month in earned income deposited in a family asset account shall be disregarded in calculating initial income eligibility and an assistance unit's assistance payment under the statewide Minnesota family investment program.

Sec. 7. [119C.07] [REPORTING; EVALUATION.]

Subdivision 1. [PROGRAM REPORTING.] Each fiduciary organization operating a family assets for independence initiative shall report annually to the commissioner of children, families, and learning the number of accounts, the amount of savings and matches for each account, the uses of the account, and the number of businesses, homes, and educational services paid for with money from the account, as well as other information that may be required for the state to operate the program effectively.

Subd. 2. [STATE REPORTING.] The commissioner of children, families, and learning shall prepare a written report annually regarding the family assets for independence initiative. The report shall be transmitted to the legislature on or before January 15 of 2000 and each subsequent year.

Subd. 3. [EVALUATION.] The commissioner shall conduct an evaluation of the family assets for independence initiative that analyzes the initiative's impact on savings rates, homeownership, level of education attained, and self-employment, and how such impacts vary among different populations and communities. The commissioner shall report to the legislature on the evaluation by January 15, 2003.


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Sec. 8. [119C.08] [ECONOMIC LITERACY CURRICULUM.]

The fiduciary organization shall develop an economic literacy curriculum for use by agencies participating in the family assets for independence initiative.

Sec. 9. Minnesota Statutes 1997 Supplement, 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;

(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;

(5) the amount of loss or expense included in federal taxable income under section 1366 of the Internal Revenue Code flowing from a corporation that has a valid election in effect for the taxable year under section 1362 of the Internal Revenue Code, but which is not allowed to be an "S" corporation under section 290.9725; and

(6) the amount of any distributions in cash or property made to a shareholder during the taxable year by a corporation that has a valid election in effect for the taxable year under section 1362 of the Internal Revenue Code, but which is not allowed to be an "S" corporation under section 290.9725 to the extent not already included in federal taxable income under section 1368 of the Internal Revenue Code; and

(7) the amount withdrawn from a family asset account during the taxable year that is not used for approved purposes as provided in sections 2 to 8.


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Sec. 10. Minnesota Statutes 1997 Supplement, 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, less the credit allowed under section 290.0674, not to exceed $1,625 for each dependent in grades kindergarten to 6 and $2,500 for each dependent in grades 7 to 12, for tuition, textbooks, and transportation of each dependent in attending an elementary 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. For the purposes of this clause, "tuition" includes fees or tuition as defined in section 290.0674, subdivision 1, clause (1). 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. Equipment expenses qualifying for deduction includes expenses as defined and limited in section 290.0674, subdivision 1, clause (3). "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;

(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;

(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(1) of the Internal Revenue Code or excluded from income or (B) the total amount deductible for medical care under section 213(a);

(9) the exemption amount allowed under Laws 1995, chapter 255, article 3, section 2, subdivision 3;


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(10) to the extent included in federal taxable income, postservice benefits for youth community service under section 121.707 for volunteer service under United States Code, title 42, section 5011(d), as amended; and

(11) the amount of income or gain included in federal taxable income under section 1366 of the Internal Revenue Code flowing from a corporation that has a valid election in effect for the taxable year under section 1362 of the Internal Revenue Code which is not allowed to be an "S" corporation under section 290.9725; and

(12) the amount deposited during the calendar year by an account holder in a family asset account as provided in sections 2 to 8.

Sec. 11. Minnesota Statutes 1996, section 290.06, is amended by adding a subdivision to read:

Subd. 26. [CREDIT FOR CONTRIBUTIONS TO FAMILY ASSETS FOR INDEPENDENCE INITIATIVES.] A taxpayer may take a credit against the tax due under this chapter equal to 50 percent of the amount contributed during the taxable year to a fiduciary organization selected under section 5 to operate a family assets for independence initiative, provided the contributions are used for the purpose of making matching contributions to family asset accounts. The credit for the taxable year may not exceed the liability for tax under this chapter for the taxable year.

Sec. 12. [APPROPRIATIONS.]

$. . . . . . . is appropriated from the general fund to the commissioner of children, families, and learning to establish the Minnesota family assets for independence initiative. No more than ... percent of the appropriation may be expended for the cost of administration of this act by the fiduciary organizations and no more than ... percent may be expended for the cost to the state for administration of this program. The appropriation is available until expended."

Delete the title and insert:

"A bill for an act relating to children; establishing the Minnesota family assets for independence initiative; appropriating money for the department of children, families, and learning; amending Minnesota Statutes 1996, section 290.06, by adding a subdivision; Minnesota Statutes 1997 Supplement, section 290.01, subdivisions 19a and 19b; proposing coding for new law as Minnesota Statutes, chapter 119C."

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

The report was adopted.

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

H. F. No. 2757, A bill for an act relating to commerce; regulating residential mortgage loans; establishing table funding requirements; proposing coding for new law in Minnesota Statutes, chapter 82.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. [82.176] [TABLE FUNDING.]

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

(b) "Closing agent" has the meaning given in section 82.17, subdivision 10.


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(c) "Collected funds" means funds deposited, finally settled, and credited to the closing agent's escrow account.

(d) "Federally insured financial institution" means an institution in which monetary deposits are insured by the Federal Deposit Insurance Corporation or National Credit Union Administration.

(e) "Lender" means a person who makes residential mortgage loans including a person who engages in table funding.

(f) "Qualified loan funds" means funds in one of the following forms:

(1) lawful money of the United States;

(2) wired funds when unconditionally held by the closing agent;

(3) cashier's checks, certified checks, bank money orders, or teller's checks issued by a federally insured financial institution and unconditionally held by the closing agent; and

(4) United States treasury checks, Federal Reserve Bank checks, federal home loan bank checks, and state of Minnesota warrants.

(g) "Table funding" means a closing or settlement at which a mortgage loan is funded by a lender by a contemporaneous advance of mortgage loan funds and an assignment of the mortgage loan to the lender advancing the funds.

Subd. 2. [REQUIREMENTS.] (a) A closing agent shall not make disbursements out of an escrow, security deposit, settlement, or closing account unless the funds received from the lender are collected funds or qualified loan funds.

(b) A lender, using the closing services of a closing agent, shall at or before the time of the closing deliver loan funds to the closing agent either in the form of collected funds or qualified loan funds."

Delete the title and insert:

"A bill for an act relating to commerce; regulating residential mortgage loans; establishing table funding requirements; proposing coding for new law in Minnesota Statutes, chapter 82."

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

The report was adopted.

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

H. F. No. 2786, A bill for an act relating to health professions; modifying provisions relating to speech-language pathologists, unlicensed mental health practitioners, alcohol and drug counselors, and hearing instrument dispensers; amending Minnesota Statutes 1996, sections 144.335, subdivision 1; 148.515, subdivision 3; 148.518, subdivision 2; 148.5191, subdivisions 1, 3, and 4; 148.5194; 148.5195, subdivision 3; 148B.66, subdivision 2; 148B.69, subdivision 2, and by adding a subdivision; 148C.04, subdivisions 3 and 4; 148C.05, subdivision 2; 148C.06; 153A.13, subdivision 5; 153A.14, subdivisions 2a, 2b, 2d, 2f, 2h, 9, and 10; 153A.15, subdivision 1, and by adding a subdivision; and 153A.20, subdivision 3; Minnesota Statutes 1997 Supplement, sections 148C.03, subdivision 1; and 148C.11, subdivision 3; proposing coding for new law in Minnesota Statutes, chapter 148; repealing Minnesota Statutes 1996, section 153A.14, subdivision 7.

Reported the same back with the following amendments:

Page 4, line 10, after the comma, insert "who has completed the requirements in section 148.515, subdivisions 2 and 3,"


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Page 4, line 19, after "20" insert ", and:

(1) when the temporary registrant is a speech-language pathologist, is a registered speech-language pathologist or holds a current certificate of clinical competence in speech-language pathology from the American Speech-Language-Hearing Association; and

(2) when the temporary registrant is an audiologist, is a registered audiologist or holds a current certificate of clinical competence in audiology from the American Speech-Language-Hearing Association"

Page 4, line 21, delete "(g)" and insert "(f)"

Page 5, delete lines 1 to 12

Page 5, line 13, delete "(e)" and insert "(d)"

Page 5, line 18, delete "(f)" and insert "(e)"

Page 5, line 21, delete "(g)" and insert "(f)"

Page 10, delete line 21 and insert "subject to enforcement actions and"

Page 15, delete section 15

Renumber the sections in sequence

Amend the title as follows:

Page 1, line 11, delete "subdivisions 3 and 4" and insert "subdivision 3"

With the recommendation that when so amended the bill pass.

The report was adopted.

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

H. F. No. 2917, A bill for an act relating to state lands; authorizing the conveyance of certain surplus state land in Anoka county.

Reported the same back with the recommendation that the bill be re-referred to the Committee on Health and Human Services without further recommendation.

The report was adopted.

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

H. F. No. 2983, A bill for an act relating to mortgages; enacting the Minnesota Residential Mortgage Originator and Servicer Licensing Act; establishing licensing and enforcement mechanisms; amending Minnesota Statutes 1996, sections 47.206, subdivision 1; 82.17, subdivision 4; 82.18; and 82.27, subdivision 1; proposing coding for new law as Minnesota Statutes, chapter 58; repealing Minnesota Statutes 1996, section 82.175.

Reported the same back with the following amendments:

Page 2, line 6, delete "21, and 22" and insert "22, and 23"


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Page 2, line 30, after "out-of-state" insert "state-chartered"

Page 2, line 32, after the period, insert "The term financial institution also includes a subsidiary or operating subsidiary of a financial institution or of a bank holding company as defined in the federal Bank Holding Company Act, United States Code, title 12, section 1841, et seq., if the subsidiary or operating subsidiary can demonstrate to the satisfaction of the commissioner that it is regulated and subject to active and ongoing oversight and supervision by a federal banking agency, as defined in the Federal Deposit Insurance Act, United States Code, title 12, section 1811, et seq., or the commissioner."

Page 3, line 7, delete "22" and insert "23"

Page 4, after line 13, insert:

"Subd. 20. [RESIDENTIAL MORTGAGE SERVICER; SERVICER.] "Residential mortgage servicer" or "servicer" means a person who engages in the activity of servicing a residential mortgage as defined in subdivision 22."

Page 4, line 14, delete "20" and insert "21"

Page 4, line 19, delete "21" and insert "22"

Page 4, line 27, delete "22" and insert "23"

Page 5, line 1, delete "23" and insert "24"

Page 5, line 6, delete "24" and insert "25"

Page 5, line 12, delete "25" and insert "26"

Page 5, line 28, delete "and rules adopted by the commissioner"

Page 6, delete lines 8 to 10 and insert:

"(iv) the residential mortgage origination activities are incidental to the real estate licensee's primary activities as a real estate broker or salesperson;"

Page 6, line 22, delete "rule or"

Page 6, line 27, delete "21" and insert "22"

Page 6, line 29, delete "and rules adopted by the commissioner"

Page 7, line 13, delete "rule or"

Page 7, after line 19, insert:

"Subd. 4. [APPLICABILITY TO BANKS AND CREDIT UNIONS.] Except for section 58.13, this chapter does not apply to a bank or credit union subject to supervision by either a federal regulatory agency or the commissioner."

Page 9, line 32, after "certified" insert "public"

Page 10, line 27, after "contract" insert "relating to activities regulated by this chapter"

Page 13, line 1, after "the" insert "residential mortgage"

Page 15, line 27, after "loans" insert "including, without limitation, sections 47.20 to 47.208"


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Page 18, line 27, delete "AGENCY" and insert "NONAGENCY"

Page 22, after line 4, insert:

"Subd. 3. [OFFER.] For purposes of this section, an "offer" means any advertisement or solicitation of any type, including an advertisement or solicitation in newspapers and magazines, by mail, by telephone, on television, on radio, or via the internet or any other electronic medium of any kind, for residential mortgage originator services. The term offer excludes an advertisement or solicitation that specifically states that the services are not available to Minnesota residents."

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

The report was adopted.

Carlson from the Committee on Education to which was referred:

H. F. No. 3002, A bill for an act relating to education; allowing a retired principal or superintendent to serve as an interim administrator for 120 school days without a financial penalty; amending Minnesota Statutes 1996, section 123.34, subdivision 10; and 354.44, subdivision 5a, and by adding a subdivision.

Reported the same back with the following amendments:

Page 2, line 9, after the period, insert "The school district shall count only the school days during which the interim principal actually worked to calculate 120 school days under this paragraph."

Page 2, line 24, after the period, insert "The school district shall count only the school days during which the interim superintendent actually worked to calculate 120 school days under this paragraph."

Page 3, line 1, strike "three" and insert "five"

Page 3, line 15, after the period, insert "Only the school days during which the interim principal actually worked shall be used to calculate working days under this subdivision."

Page 3, line 26, delete "three" and insert "five"

Page 3, after line 31, insert:

"Sec. 4. Minnesota Statutes 1996, section 354A.31, subdivision 3a, is amended to read:

Subd. 3a. [NO ANNUITY REDUCTION.] (a) The annuity reduction provisions of subdivision 3 do not apply to a person who:

(1) retires from the technical college system or from the Minneapolis, St. Paul, or Duluth school district with at least ten years of service credit in the system from which the person retires;

(2) was employed on a full-time basis immediately preceding retirement as a technical college faculty member for a retiree from the technical college system or as a teacher for a retiree from the Minneapolis, St. Paul, or Duluth school district;

(3) begins drawing an annuity from a first class city teachers retirement association; and

(4) returns to work on not less than a one-third time basis and not more than a two-thirds time basis in the technical college system or school district from which the person retired under an agreement in which the person may not earn a salary of more than $35,000 in a calendar year from the technical college system employer.


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(b) Initial participation, the amount of time worked, and the duration of participation under this section must be mutually agreed upon by the employer and the employee. The employer may require up to a one-year notice of intent to participate in the program as a condition of participation under this section. The employer shall determine the time of year the employee shall work.

(c) Notwithstanding any law to the contrary, a person eligible under paragraphs (a) and (b) may not earn further service credit in a first class city teachers retirement association and is not eligible to participate in the individual retirement account plan or the supplemental retirement plan established in chapter 354B as a result of service under this section. No employer or employee contribution to any of these plans may be made on behalf of such a person."

Page 3, line 32, delete "4" and insert "5"

Page 3, line 33, delete "3" and insert "4"

Amend the title as follows:

Page 1, line 6, delete the first "and"

Page 1, line 7, before the period, insert "; and 354A.31, subdivision 3a"

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

The report was adopted.

Skoglund from the Committee on Judiciary to which was referred:

H. F. No. 3051, A bill for an act relating to crime prevention; creating a felony penalty for criminal contempts involving failure to obey certain subpoenas; increasing the penalty for certain offenders who fail to appear for criminal proceedings; amending Minnesota Statutes 1996, sections 588.20; and 609.49, subdivision 1.

Reported the same back with the following amendments:

Page 1, line 15, after the comma, insert "with the intent to obstruct the criminal justice process,"

With the recommendation that when so amended the bill pass.

The report was adopted.

SECOND READING OF HOUSE BILLS

H. F. Nos. 668, 2357, 2659, 2700, 2734, 2736, 2746, 2786 and 3051 were read for the second time.

INTRODUCTION AND FIRST READING OF HOUSE BILLS

The following House Files were introduced:

Hilty, Kahn and Ozment introduced:

H. F. No. 3339, A bill for an act relating to utilities; requiring electric utilities to disclose the sources of their electric supply, and the amounts of certain pollutants attributable to the generation of that electric supply; proposing coding for new law in Minnesota Statutes, chapter 216B.

The bill was read for the first time and referred to the Committee on Regulated Industries and Energy.


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Jennings introduced:

H. F. No. 3340, A bill for an act relating to utilities; modifying definition of energy conservation improvement; amending Minnesota Statutes 1996, section 216B.241, subdivision 1.

The bill was read for the first time and referred to the Committee on Regulated Industries and Energy.

Schumacher and Osthoff introduced:

H. F. No. 3341, A bill for an act relating to appropriations; authorizing state bonds; appropriating money for an office facility/interpretive center in Sand Dunes State Forest.

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

Kinkel introduced:

H. F. No. 3342, A bill for an act relating to local government; providing for petitions for the dissolution of town subordinate service districts; proposing coding for new law in Minnesota Statutes, chapter 365A; repealing Minnesota Statutes 1996, section 365A.09.

The bill was read for the first time and referred to the Committee on Local Government and Metropolitan Affairs.

Sykora, Greenfield, Haas and Dorn introduced:

H. F. No. 3343, A bill for an act relating to health; providing for the prevention of fetal alcohol syndrome; establishing intervention and grant programs; requiring a study; appropriating money; amending Minnesota Statutes 1996, section 254A.17, subdivision 1, and by adding a subdivision; proposing coding for new law in Minnesota Statutes, chapter 145.

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

Mariani and Luther introduced:

H. F. No. 3344, A bill for an act relating to children; providing incentives to increase child care services for children with disabilities; appropriating money; amending Minnesota Statutes 1996, sections 119B.13, subdivision 3; 119B.19, subdivision 4; and 120.1701, subdivision 5.

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

Greenfield, Koskinen and Huntley introduced:

H. F. No. 3345, A bill for an act relating to human services; modifying several provisions related to the Minnesota family investment program-statewide (MFIP-S); amending local service unit plans; amending Minnesota Statutes 1996, section 268.88; Minnesota Statutes 1997 Supplement, sections 119B.01, subdivision 16; 256.741, by adding a subdivision; 256B.0635, by adding a subdivision; 256J.31, by adding a subdivision; 256J.42, by adding subdivisions; 256J.45, subdivision 2; 256J.515; and 256J.52, subdivision 2, and by adding subdivisions.

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


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Murphy, Hilty, McGuire, Greiling and Tomassoni introduced:

H. F. No. 3346, A bill for an act relating to education; appropriating money to independent school district No. 94, Cloquet, for a reading readiness program.

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

Mullery introduced:

H. F. No. 3347, A bill for an act relating to elections; fair campaign practices; modifying the prohibitions on denying candidates access to multiple unit dwellings; increasing a penalty; amending Minnesota Statutes 1996, section 211B.20, subdivision 1.

The bill was read for the first time and referred to the Committee on General Legislation, Veterans Affairs and Elections.

Kahn, Wolf, Dawkins, Winter and Tomassoni introduced:

H. F. No. 3348, A bill for an act relating to state government; providing for community ownership of a professional baseball franchise; appropriating money.

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

Opatz introduced:

H. F. No. 3349, A bill for an act relating to higher education; leveraging the University of Minnesota's research capabilities; appropriating money.

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

Orfield, Long and Kahn introduced:

H. F. No. 3350, A bill for an act relating to state government; creating an advisory council to investigate improvements in communicating government information to the public.

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

Bishop, Long, Sviggum, Solberg and Johnson, A., introduced:

H. F. No. 3351, A bill for an act relating to taxes; sales and use; exempting construction materials and supplies used to comply with the Americans with Disabilities Act; amending Minnesota Statutes 1996, section 297A.25, by adding a subdivision.

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

Holsten and Osthoff introduced:

H. F. No. 3352, A bill for an act relating to natural resources; requiring money credited to the critical habitat private sector matching account through purchase of special license plates to be matched by the critical habitat license plate matching account; amending Minnesota Statutes 1996, sections 84.943, subdivision 3; and 116P.04, by adding a subdivision.

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


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Holsten introduced:

H. F. No. 3353, A bill for an act relating to state lands; authorizing the public sale of certain tax-forfeited land bordering on public waters in Washington county.

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

Holsten introduced:

H. F. No. 3354, A bill for an act relating to natural resources; appropriating money for an engineering analysis of flooding problems along Twin lake in Washington county.

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

Rest, Davids, Abrams, Carlson and Wenzel introduced:

H. F. No. 3355, A bill for an act relating to insurance; regulating investments of certain insurers; proposing coding for new law as Minnesota Statutes, chapter 60L.

The bill was read for the first time and referred to the Committee on Financial Institutions and Insurance.

Milbert, McCollum, Finseth and Holsten introduced:

H. F. No. 3356, A bill for an act relating to game and fish; prohibiting the taking of white bears; amending Minnesota Statutes 1996, section 97B.411.

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

Murphy, Carruthers, Larsen, Broecker and Pugh introduced:

H. F. No. 3357, A bill for an act relating to court fees and fines; revising and consolidating laws relating to surcharges and assessments on fines; amending Minnesota Statutes 1996, sections 169.121, subdivision 5a; 171.16, subdivision 3; 357.021, by adding subdivisions; 588.01, subdivision 3; and 609.3241; Minnesota Statutes 1997 Supplement, sections 97A.065, subdivision 2; 169.14, subdivision 5d; 357.021, subdivision 2; and 609.101, subdivision 5; repealing Minnesota Statutes 1996, sections 609.101, subdivision 1; and 626.861.

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

Ness, Greiling and Erickson introduced:

H. F. No. 3358, A bill for an act relating to state government; regulating rulemaking; providing for a study of broad rulemaking delegations.

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

Hilty, Kahn and McElroy introduced:

H. F. No. 3359, A bill for an act relating to the organization of state government; establishing an occupational regulatory oversight council to oversee and coordinate the work of agencies and boards charged with the regulation of health-related and non-health-related occupations; directing the commissioners of health and commerce to develop detailed proposals for


Journal of the House - 70th Day - Thursday, February 5, 1998 - Top of Page 6393

the organization and operation of the council; establishing two task forces; requiring a report to the legislature; appropriating money; proposing coding for new law in Minnesota Statutes, chapter 214.

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

Paymar, Chaudhary and Pawlenty introduced:

H. F. No. 3360, A bill for an act relating to domestic abuse; clarifying provisions for recognition of orders for protection from other jurisdictions; providing that certain mutual orders are not entitled to full faith and credit; amending Minnesota Statutes 1997 Supplement, section 518B.01, subdivision 14.

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

Mares introduced:

H. F. No. 3361, A bill for an act relating to insurance; mandating coverage for cochlear implants; proposing coding for new law in Minnesota Statutes, chapter 62A.

The bill was read for the first time and referred to the Committee on Financial Institutions and Insurance.

Greiling and Slawik introduced:

H. F. No. 3362, A bill for an act relating to campaign finance; increasing the public's right to know; modifying definition of independent expenditures; requiring full disclosure of the total costs of lobbying; modifying notice required of independent expenditures; requiring reports; amending Minnesota Statutes 1996, sections 10A.01, subdivision 10b; 10A.04, subdivisions 4, 5, and 6; and 10A.20, subdivision 6b; repealing Minnesota Statutes 1996, section 10A.04, subdivision 4a.

The bill was read for the first time and referred to the Committee on General Legislation, Veterans Affairs and Elections.

Seagren introduced:

H. F. No. 3363, A bill for an act relating to education; providing for notice of transitional goals to parents of students with disabilities; modifying the definition of eligible institution for student grants; appropriating money; amending Minnesota Statutes 1996, sections 120.17, subdivision 3a; and 136A.101, subdivision 4.

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

Rukavina; Anderson, I.; Bakk; Solberg and Tomassoni introduced:

H. F. No. 3364, A bill for an act relating to appropriations; authorizing state bonds; appropriating money for three direct reduction iron processing facilities.

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

Otremba, M., introduced:

H. F. No. 3365, A bill for an act relating to appropriations; authorizing state bonds; appropriating money for college campuses at Staples and Wadena.

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


Journal of the House - 70th Day - Thursday, February 5, 1998 - Top of Page 6394

Chaudhary, Stanek and Murphy introduced:

H. F. No. 3366, A bill for an act relating to crime prevention; providing that preventing a commission of a felony by a trespasser is justifiable homicide; amending Minnesota Statutes 1996, section 609.065.

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

Solberg introduced:

H. F. No. 3367, A bill for an act relating to state lands; authorizing private or public sale of tax-forfeited lands bordering public waters in Itasca county.

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

Abrams introduced:

H. F. No. 3368, A bill for an act relating to retirement; teachers retirement association; authorizing the purchase of service credit for a sabbatical leave by certain teachers.

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

Rest introduced:

H. F. No. 3369, A bill for an act relating to income tax administration; appropriating money for grants to nonprofit entities to facilitate the delivery of volunteer assistance to low-income taxpayers.

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

Paymar introduced:

H. F. No. 3370, A bill for an act relating to data privacy; establishing an address confidentiality program for victims of domestic violence; appropriating money; proposing coding for new law in Minnesota Statutes, chapters 13; and 517.

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

McCollum introduced:

H. F. No. 3371, A bill for an act relating to transportation; authorizing issuance of bonds for transit-related capital improvements; appropriating money.

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

Kahn and Munger introduced:

H. F. No. 3372, A bill for an act relating to natural resources; establishing the Mississippi whitewater trail; proposing coding for new law in Minnesota Statutes, chapter 85.

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


Journal of the House - 70th Day - Thursday, February 5, 1998 - Top of Page 6395

Kahn introduced:

H. F. No. 3373, A bill for an act relating to capital improvements; appropriating money to repair and rehabilitate certain memorials on the capitol mall; authorizing the sale of state bonds.

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

Solberg; Tomassoni; Johnson, A., and Ness introduced:

H. F. No. 3374, A bill for an act relating to education; making permanent school district levy authority for retired employee health benefits expenses; amending Minnesota Statutes 1997 Supplement, section 124.916, subdivision 2.

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

Tomassoni and Rukavina introduced:

H. F. No. 3375, A bill for an act relating to employment; requiring the commissioner of natural resources to maintain a trained force of firefighters; modifying the definition of public employee; amending Minnesota Statutes 1996, section 88.12, by adding a subdivision; Minnesota Statutes 1997 Supplement, section 179A.03, subdivision 14.

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

Juhnke introduced:

H. F. No. 3376, A bill for an act relating to appropriations; authorizing state bonds; appropriating money for ADA compliance and roof replacement and repair at Ridgewater Community College, Willmar campus.

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

Johnson, R.; Tomassoni; Ness; Juhnke and Kubly introduced:

H. F. No. 3377, A bill for an act relating to education; establishing Minnesota fire service training board and providing assistance for firefighter training and education; appropriating money; amending Minnesota Statutes 1996, section 169.14, by adding a subdivision; Minnesota Statutes 1997 Supplement, section 171.29, subdivision 2; proposing coding for new law as Minnesota Statutes, chapter 137A.

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

Westrom, Greenfield, Long, Wejcman and Dorn introduced:

H. F. No. 3378, A bill for an act relating to appropriations; appropriating money for rehabilitation and community centers for Vision Loss Resources, Inc.

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

Winter and Davids introduced:

H. F. No. 3379, A bill for an act relating to insurance; regulating trade practices; providing for reimbursement for licensed ambulance services; amending Minnesota Statutes 1996, section 72A.201, subdivision 5; Minnesota Statutes 1997 Supplement, section 62J.48.

The bill was read for the first time and referred to the Committee on Financial Institutions and Insurance.


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Dawkins introduced:

H. F. No. 3380, A bill for an act relating to transportation; providing for claims by person incurring injury to person or property while operating recreational vehicle on trunk highway right-of-way; regulating highway closures; imposing civil liability; amending Minnesota Statutes 1996, section 160.27, by adding a subdivision; Minnesota Statutes 1997 Supplement, section 3.736, subdivision 3.

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

Wenzel and Erickson introduced:

H. F. No. 3381, A bill for an act relating to economic development; providing for compensation for tornado damage in certain counties; appropriating money.

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

Jennings and Carruthers introduced:

H. F. No. 3382, A bill for an act relating to landlord tenant; unlawful detainer; reducing the court felony filing fee; eliminating a stay of execution; reducing the storage period for tenant property after execution of the writ; amending Minnesota Statutes 1996, sections 566.09, subdivision 1; and 566.17, subdivision 2; Minnesota Statutes 1997 Supplement, section 566.05.

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

Schumacher, Leighton, Skare and Opatz introduced:

H. F. No. 3383, A bill for an act relating to taxation; exempting sales to political subdivisions from sales tax; amending Minnesota Statutes 1996, section 297A.47; Minnesota Statutes 1997 Supplement, section 297A.25, subdivision 11.

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

Wejcman and Clark, K., introduced:

H. F. No. 3384, A bill for an act relating to human services; continuing food programs for legal noncitizens; appropriating money; amending Minnesota Statutes 1997 Supplement, section 256J.11, subdivision 2, as amended; proposing coding for new law in Minnesota Statutes, chapter 256D.

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

Wejcman and Clark, K., introduced:

H. F. No. 3385, A bill for an act relating to human services; legal nonlicensed family child care; requiring minimal safety standards if public child care funds are received; proposing coding for new law in Minnesota Statutes, chapter 245A.

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

Wejcman and Clark, K., introduced:

H. F. No. 3386, A bill for an act relating to human services; services for homeless targeted youth; appropriating money.

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


Journal of the House - 70th Day - Thursday, February 5, 1998 - Top of Page 6397

Rifenberg; Reuter; Seifert; Clark, J., and Erickson introduced:

H. F. No. 3387, A bill for an act relating to real property; creating the Private Property Rights Protection Act; providing legislative intent; providing remedies for real property owners whose property has been inordinately burdened by governmental action; providing requirements for a property owner who seeks compensation; requiring the governmental entity to provide notice of the claim; authorizing certain settlement offers; requiring that the governmental entity and property owner file a court action if a settlement agreement contravenes the application of state law; providing for judicial review, notwithstanding the availability of administrative remedies; authorizing the property owner to file a claim of compensation upon rejection of a settlement offer; requiring the court to determine the percentage of responsibility for an inordinate burden imposed by multiple governmental entities; providing for a jury to determine the amount of compensation to the property owner; providing for costs and attorney fees; providing that the right for which compensation is paid is a transferable development right; proposing coding for new law as Minnesota Statutes, chapter 500A.

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

McGuire and Hausman introduced:

H. F. No. 3388, A bill for an act relating to capital improvements; appropriating money for renovation and conversion of the dairy barn on the St. Paul campus of the University of Minnesota; authorizing the sale of state bonds.

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

McGuire introduced:

H. F. No. 3389, A bill for an act relating to civil actions; limiting liability of financial institutions providing data for the criminal alert network; amending Minnesota Statutes 1996, section 299A.61, by adding a subdivision.

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

McGuire introduced:

H. F. No. 3390, A bill for an act relating to crime prevention; appropriating money for the criminal alert network.

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

Juhnke introduced:

H. F. No. 3391, A bill for an act relating to retirement; city of Willmar and city of Litchfield; authorizing volunteer rescue squad relief associations; providing service pensions for rescue squad volunteers; proposing coding for new law as Minnesota Statutes, chapter 424B.

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

Rest, Skare and Rukavina introduced:

H. F. No. 3392, A bill for an act relating to taxation; repealing levy limits; amending Minnesota Statutes 1997 Supplement, section 275.16; repealing Minnesota Statutes 1997 Supplement, sections 275.70; 275.71; 275.72; 275.73; and 275.74; Laws 1997, chapter 231, article 3, section 8.

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


Journal of the House - 70th Day - Thursday, February 5, 1998 - Top of Page 6398

Trimble introduced:

H. F. No. 3393, A bill for an act relating to housing finance agency; appropriating money to the housing trust fund for a student housing pilot project.

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

Trimble introduced:

H. F. No. 3394, A bill for an act relating to education; appropriating money for the worker information resource center at the St. Paul technical college.

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

Hausman; Anderson, I.; Schumacher; Rhodes and Rostberg introduced:

H. F. No. 3395, A bill for an act relating to transportation; modifying requirements for a study of metropolitan commuter rail service; amending Laws 1997, chapter 159, article 2, section 51.

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

McGuire; Kinkel; Slawik; Johnson, R., and Schumacher introduced:

H. F. No. 3396, A bill for an act relating to child care; changing child care assistance in certain cases; establishing a provider rate bonus for reading programs; establishing grants for school-age child care programs; making other changes to child care programs; appropriating money; amending Minnesota Statutes 1996, sections 119B.13, by adding a subdivision; 119B.18, subdivision 2; and 119B.19, subdivisions 1, 4, and by adding subdivisions; Minnesota Statutes 1997 Supplement, sections 119B.13, subdivision 1; 119B.17, subdivision 3; 119B.21, subdivisions 2, 4, 5, and 11; and 121.88, subdivision 10.

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

Bradley introduced:

H. F. No. 3397, A bill for an act relating to education; appropriating money for a loan to independent school district No. 535, Rochester, for special education services.

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

Hausman, Sekhon, Rhodes, Munger and Milbert introduced:

H. F. No. 3398, A bill for an act relating to natural resources; providing for low impact forestry; proposing coding for new law in Minnesota Statutes, chapter 90.

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

Lieder introduced:

H. F. No. 3399, A bill for an act relating to natural resources; appropriating money and authorizing bonds for flood hazard mitigation programs.

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


Journal of the House - 70th Day - Thursday, February 5, 1998 - Top of Page 6399

Greenfield and Bradley introduced:

H. F. No. 3400, A bill for an act relating to health; establishing a nursing home planning and transition grant program; appropriating money; proposing coding for new law in Minnesota Statutes, chapter 144.

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

Greenfield and Bradley introduced:

H. F. No. 3401, A bill for an act relating to health; providing for an inactive status of licensed beds in nursing homes; amending Minnesota Statutes 1996, sections 144.122; 144A.01, by adding a subdivision; 256.9657, subdivision 1; 256B.0911, subdivision 6; and 256B.431, subdivisions 2r, 3a, and 22; proposing coding for new law in Minnesota Statutes, chapter 144A.

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

Davids, Tomassoni and Anderson, I., introduced:

H. F. No. 3402, A bill for an act relating to insurance; prohibiting affiliates of insurance companies from engaging in rebating that is illegal for insurance companies; amending Minnesota Statutes 1996, section 72A.08, subdivisions 1, 2, and 3.

The bill was read for the first time and referred to the Committee on Financial Institutions and Insurance.

Davids introduced:

H. F. No. 3403, A bill for an act relating to appropriations; authorizing state bonds; appropriating money for completion of the Blufflands Trail between Preston and Forestville.

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

Davids introduced:

H. F. No. 3404, A bill for an act relating to appropriations; authorizing state bonds; appropriating money for improvements to the Root River trail.

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

Davids, by request, introduced:

H. F. No. 3405, A bill for an act relating to consumer protection; regulating financial transaction cards; providing certain minimum payment disclosures; proposing coding for new law in Minnesota Statutes, chapter 325G.

The bill was read for the first time and referred to the Committee on Commerce, Tourism and Consumer Affairs.


Journal of the House - 70th Day - Thursday, February 5, 1998 - Top of Page 6400

Boudreau, Tunheim and McElroy introduced:

H. F. No. 3406, A bill for an act relating to liquor; clarifying local restriction provision; amending Minnesota Statutes 1996, section 340A.509.

The bill was read for the first time and referred to the Committee on Commerce, Tourism and Consumer Affairs.

Solberg and Hilty introduced:

H. F. No. 3407, A bill for an act relating to taxes; sales and use taxes; exempting certain educational facilities from the sales tax; amending Minnesota Statutes 1997 Supplement, section 297A.25, subdivision 11.

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

Mahon, Paymar, Tomassoni, Davids and Abrams introduced:

H. F. No. 3408, A bill for an act relating to insurance; no-fault auto; regulating disability and income loss benefits; amending Minnesota Statutes 1996, section 65B.44, subdivision 3.

The bill was read for the first time and referred to the Committee on Financial Institutions and Insurance.

Knoblach, Opatz, Schumacher, Stang and Dehler introduced:

H. F. No. 3409, A bill for an act relating to health; providing funding to two ICFs/MR for costs related to field audit disallowances and providing exemptions from the spend-up limit; appropriating money.

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

Slawik; Marko; Johnson, R.; Chaudhary and Larsen introduced:

H. F. No. 3410, A bill for an act relating to education; providing site-based funding for full-day kindergarten, technology enhancements, and gifted and talented programming; appropriating money; amending Minnesota Statutes 1996, section 124A.22, by adding a subdivision; Minnesota Statutes 1997 Supplement, section 124A.22, subdivision 1.

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

Harder; Wenzel; Johnson, A.; Knoblach and Swenson, H., introduced:

H. F. No. 3411, A bill for an act relating to taxation; individual income; modifying the tax brackets and the alternative minimum tax exemption amount to reduce marriage penalties; amending Minnesota Statutes 1996, sections 290.06, subdivisions 2c and 2d; and 290.091, subdivision 3.

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

Rhodes and Dorn introduced:

H. F. No. 3412, A bill for an act relating to health; creating a religious exemption to mandated autopsies; amending Minnesota Statutes 1996, sections 145.132; 299F.04, subdivision 5; 383B.225, subdivisions 7 and 8; 390.11, subdivisions 2, 2a, and 3; and 390.32, subdivisions 2, 2a, and 3; proposing coding for new law in Minnesota Statutes, chapter 390.

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


Journal of the House - 70th Day - Thursday, February 5, 1998 - Top of Page 6401

Rostberg and Skoglund introduced:

H. F. No. 3413, A bill for an act relating to traffic regulations; authorizing driver's license suspension for convicted traffic law offenders who fail to appear at a probation review hearing; amending Minnesota Statutes 1996, section 169.92.

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

Davids introduced:

H. F. No. 3414, A bill for an act relating to retirement; expanding the number of investments available for certain public supplemental pension or deferred compensation plans; amending Minnesota Statutes 1996, section 356.24, subdivision 1.

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

Harder, Schumacher, Rifenberg, Kuisle and Swenson, H., introduced:

H. F. No. 3415, A bill for an act relating to agriculture; expanding the purposes of the value-added agricultural product loan program; modifying requirements for environmental review of proposed feedlots; appropriating money; amending Minnesota Statutes 1996, sections 41B.046, subdivision 1; and 116D.04, subdivision 2a; repealing Minnesota Statutes 1996, section 41B.046, subdivision 4a.

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

Finseth and Tunheim introduced:

H. F. No. 3416, A bill for an act relating to agriculture; appropriating money for wheat and barley scab research.

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

Juhnke and Wenzel introduced:

H. F. No. 3417, A bill for an act relating to agriculture; appropriating money for turkey respiratory disease research.

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

Jefferson introduced:

H. F. No. 3418, A bill for an act relating to retirement; Minneapolis employees retirement fund; increasing certain shorter service death-while-active retirement benefits, providing annuity escalation; amending Minnesota Statutes 1996, sections 422A.06, subdivisions 3 and 6; 422A.22, subdivisions 4 and 5; and 422A.23; repealing Minnesota Statutes 1996, section 422A.16, subdivision 3a.

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

Bakk introduced:

H. F. No. 3419, A bill for an act relating to crime; providing for mandatory sentences of life without release for all types of first-degree murder; amending Minnesota Statutes 1996, sections 244.05, subdivisions 4 and 5; and 609.184; repealing Minnesota Statutes 1996, section 609.196.

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


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Sviggum introduced:

H. F. No. 3420, A bill for an act relating to public employment; imposing a hiring freeze on certain public employers.

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

Winter, Kalis, Kubly and Juhnke introduced:

H. F. No. 3421, A bill for an act relating to agriculture; limiting certain animal feedlots and feedlot practices; providing for preparation of a generic environmental impact statement on the long-term effects of the livestock industry; creating a livestock industry environmental steering committee; appropriating money; amending Minnesota Statutes 1996, section 116.07, by adding subdivisions.

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

Sykora, McGuire and Nornes introduced:

H. F. No. 3422, A bill for an act relating to child care; modifying direct assistance payments; amending Minnesota Statutes 1997 Supplement, section 119B.13, subdivision 6.

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

Jennings introduced:

H. F. No. 3423, A bill for an act relating to human services; providing an annual rate adjustment for certain programs; appropriating money; proposing coding for new law in Minnesota Statutes, chapter 256.

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

Molnau and Workman introduced:

H. F. No. 3424, A bill for an act relating to appropriations; authorizing state bonds; appropriating money for land acquisition and capital project planning of the eastern Carver community collaborative project.

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

Anderson, I.; Rukavina; Lieder; Kelso and Carlson introduced:

H. F. No. 3425, A bill for an act relating to education; modifying supplemental revenue; appropriating money.

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

Greiling, Pelowski, Tomassoni, Ness and Kelso introduced:

H. F. No. 3426, A bill for an act relating to education; establishing an appointment date for board members; requiring a rule review; repealing the prohibition against commercial relationships; amending Minnesota Statutes 1996, section 128C.01, subdivision 4; repealing Minnesota Statutes 1996, section 128C.01, subdivision 5.

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


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Jefferson and Kelso introduced:

H. F. No. 3427, A bill for an act relating to education; working to develop, provide, and maintain an educational structure that meets the needs of nonwhite and white at-risk students; identifying obstacles to students educational success; providing for staff development and community training; creating an advisory council to assist in analyzing student performance data; emphasizing outcomes; appropriating money; proposing coding for new law in Minnesota Statutes, chapter 126.

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

Knight introduced:

H. F. No. 3428, A bill for an act relating to the housing finance agency; extending the availability of equity take-out loans; amending procedures for the allocation of low-income housing tax credits; permitting allocation of the housing pool to senior rental housing if it is federally assisted; requiring an impact statement and a hearing before an owner terminates participation in a federally assisted rental housing program; permitting a local government to require relocation assistance for certain tenants; appropriating money; amending Minnesota Statutes 1996, sections 462A.222, subdivision 3; and 474A.061, subdivision 2a; Minnesota Statutes 1997 Supplement, section 462A.05, subdivision 39; proposing coding for new law in Minnesota Statutes, chapter 471.

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

Johnson, A., introduced:

H. F. No. 3429, A bill for an act relating to health; establishing preventive measures for adolescent pregnancies; appropriating money; amending Minnesota Statutes 1996, section 145.925, by adding a subdivision; proposing coding for new law in Minnesota Statutes, chapter 145.

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

Jennings, Peterson and Tingelstad introduced:

H. F. No. 3430, A bill for an act relating to health; expanding the plumbing inspection program; amending Minnesota Statutes 1996, sections 144.122; and 326.37, by adding a subdivision; Minnesota Statutes 1997 Supplement, section 326.37, subdivision 1.

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

Kelso, Entenza, Carlson, Mares and Tunheim introduced:

H. F. No. 3431, A bill for an act relating to education; providing for an office of educational accountability; appropriating money; amending Minnesota Statutes 1996, section 121.1115, by adding a subdivision.

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

Wenzel, Carlson, Abrams and Knoblach introduced:

H. F. No. 3432, A bill for an act relating to insurance; regulating life insurance company investments and financial transactions; regulating qualified long-term care policies; modifying the definition of chronically ill individual; amending Minnesota Statutes 1996, section 61A.28, subdivisions 6, 9a, and 12; Minnesota Statutes 1997 Supplement, section 62S.01, subdivision 8.

The bill was read for the first time and referred to the Committee on Financial Institutions and Insurance.


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Harder and Gunther introduced:

H. F. No. 3433, A bill for an act relating to appropriations; authorizing state bonds; appropriating money for the Watonwan River Flood Abatement Project.

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

Harder and Gunther introduced:

H. F. No. 3434, A bill for an act relating to appropriations; authorizing state bonds; appropriating money for the wastewater project for the town of Fox Lake in Martin county.

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

Macklin, Ozment, Commers, Van Dellen and Kelso introduced:

H. F. No. 3435, A bill for an act relating to taxation; property taxes; permitting the inclusion of information relating to transit levies in notices of proposed property tax levies; amending Minnesota Statutes 1997 Supplement, section 275.065, subdivision 3.

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

McElroy introduced:

H. F. No. 3436, A bill for an act relating to metropolitan government; changing certain definitions; requiring a redrawn transit zone map; removing, in certain cases, a prohibition to application of a property tax rate; amending Minnesota Statutes 1996, section 473.3915, subdivisions 2, 3, and 5.

The bill was read for the first time and referred to the Committee on Local Government and Metropolitan Affairs.

Munger, Huntley, Jaros and Ozment introduced:

H. F. No. 3437, A bill for an act relating to public safety; appropriating money for reimbursements to hazardous materials teams.

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

Westrom and Bettermann introduced:

H. F. No. 3438, A bill for an act relating to sanitary districts; establishing the Farwell-Kensington sanitary district; authorizing tax levies.

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

McElroy and Wolf introduced:

H. F. No. 3439, A bill for an act relating to the city of Burnsville; authorizing the city to impose a tax on admissions to an amphitheater; authorizing creation of a tax increment financing district.

The bill was read for the first time and referred to the Committee on Local Government and Metropolitan Affairs.


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Rukavina, Jefferson and Carruthers introduced:

H. F. No. 3440, A bill for an act relating to employment; raising the minimum wage; amending Minnesota Statutes 1997 Supplement, section 177.24, subdivision 1.

The bill was read for the first time and referred to the Committee on Labor-Management Relations.

Peterson, Osthoff, Kahn, Winter and Munger introduced:

H. F. No. 3441, A bill for an act relating to animal feedlots; requiring licenses; creating and funding a cleanup fund; limiting issuance of certain permits; requiring an inventory and review; providing for assistance in adoption, review, and update of feedlot ordinances; requiring a generic environmental impact statement on feedlots; appropriating money; amending Minnesota Statutes 1996, section 116.07, by adding a subdivision; proposing coding for new law in Minnesota Statutes, chapter 116; proposing coding for new law as Minnesota Statutes, chapter 18G.

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

Wenzel introduced:

H. F. No. 3442, A bill for an act relating to the military; entering into the interstate emergency management assistance compact; proposing coding for new law in Minnesota Statutes, chapter 192.

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

Osthoff introduced:

H. F. No. 3443, A bill for an act relating to public finance; requiring that the principal underwriter of issues of state bonds be a financial institution in Minnesota; amending Minnesota Statutes 1997 Supplement, section 16A.641, subdivision 4.

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

Mullery, Jefferson, Rukavina and Koskinen introduced:

H. F. No. 3444, A bill for an act relating to employment; extending parenting leave requirements; amending Minnesota Statutes 1996, section 181.941, subdivisions 1 and 2.

The bill was read for the first time and referred to the Committee on Labor-Management Relations.

Davids introduced:

H. F. No. 3445, A bill for an act relating to appropriations; authorizing state bonds; appropriating money for water system improvements in the city of Chatfield.

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

Trimble introduced:

H. F. No. 3446, A bill for an act relating to community development; providing funding to acquire right-of-way in the Phalen corridor in St. Paul; authorizing bonds; appropriating money.

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


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Mullery and Gunther introduced:

H. F. No. 3447, A bill for an act relating to employment; appropriating money for grants to encourage women to enter nontraditional careers; establishing requirements for grant recipients; requiring state-funded employment and training programs to provide certain information.

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

Munger; Rukavina; Johnson, R.; Nornes and Finseth introduced:

H. F. No. 3448, A bill for an act relating to natural resources; appropriating money to the board of water and soil resources for management of small nonindustrial private forest lands.

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

MESSAGES FROM THE SENATE

The following message was received from the Senate:

Mr. Speaker:

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

S. F. Nos. 2111 and 2444.

Patrick E. Flahaven, Secretary of the Senate

FIRST READING OF SENATE BILLS

S. F. No. 2111, A bill for an act relating to game and fish; modifying restrictions on fish houses; modifying the license period for fish house licenses; amending Minnesota Statutes 1996, section 97C.355, subdivision 7; Minnesota Statutes 1997 Supplement, section 97A.411, subdivision 1.

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

S. F. No. 2444, A bill for an act relating to game and fish; extending certain angling seasons in 1998.

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

CONSENT CALENDAR

Tomassoni moved that the bills on the Consent Calendar for today be continued. The motion prevailed.

CALENDAR

Tomassoni moved that the bill on the Calendar for today be continued. The motion prevailed.


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GENERAL ORDERS

Tomassoni moved that the bills on General Orders for today be continued. The motion prevailed.

MOTIONS AND RESOLUTIONS

Munger moved that Finseth be shown as chief author on H. F. No. 1561. The motion prevailed.

Macklin moved that the name of Entenza be added as chief author on H. F. No. 1668. The motion prevailed.

Munger moved that the name of McCollum be added as an author on H. F. No. 1847. The motion prevailed.

Erhardt moved that his name be stricken as an author on H. F. No. 2482. The motion prevailed.

Delmont moved that the name of Smith be added as an author on H. F. No. 2623. The motion prevailed.

Munger moved that the names of Leppik and Rostberg be added as authors on H. F. No. 2696. The motion prevailed.

Opatz moved that the names of Van Dellen and Ness be added as authors on H. F. No. 2836. The motion prevailed.

Knoblach moved that the name of Kalis be added as an author on H. F. No. 3077. The motion prevailed.

Jennings moved that the name of Tingelstad be added as an author on H. F. No. 3244. The motion prevailed.

Jefferson moved that H. F. No. 216 be recalled from the Committee on Governmental Operations and be re-referred to the Committee on Economic Development Finance Division. The motion prevailed.

Juhnke moved that H. F. No. 2708 be recalled from the Committee on Governmental Operations and be re-referred to the Committee on Judiciary. The motion prevailed.

Mariani moved that H. F. No. 3082 be recalled from the Committee on Economic Development and International Trade and be re-referred to the Committee on Environment, Natural Resources and Agriculture Finance. The motion prevailed.

Rest moved that H. F. No. 3145 be recalled from the Committee on Economic Development and International Trade and be re-referred to the Committee on Taxes. The motion prevailed.

Rest moved that H. F. No. 3165 be recalled from the Committee on Economic Development and International Trade and be re-referred to the Committee on Taxes. The motion prevailed.

ADJOURNMENT

Tomassoni moved that when the House adjourns today it adjourn until 2:30 p.m., Monday, February 9, 1998. The motion prevailed.

Tomassoni moved that the House adjourn. The motion prevailed, and Speaker pro tempore Long declared the House stands adjourned until 2:30 p.m., Monday, February 9, 1998.

Edward A. Burdick, Chief Clerk, House of Representatives


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