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STATE OF MINNESOTA

Journal of the House

EIGHTIETH SESSION 1997

__________________

THIRTIETH DAY

Saint Paul, Minnesota, Wednesday, April 2, 1997

 

The House of Representatives convened at 2:30 p.m. and was called to order by Phil Carruthers, Speaker of the House.

Prayer was offered by the Reverend David G. Johnson, Co-Pastor of Park/Open Door Church, St. Paul, Minnesota.

The roll was called and the following members were present:

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

A quorum was present.

Koskinen was excused until 3:45 p.m.

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


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REPORTS OF STANDING COMMITTEES

Kahn from the Committee on Governmental Operations to which was referred:

H. F. No. 197, A bill for an act relating to state government; rulemaking; enacting, eliminating, continuing, or modifying certain exemptions from the rulemaking requirements of the administrative procedures act; making technical and conforming changes; amending Minnesota Statutes 1996, sections 14.03, subdivision 3, and by adding a subdivision; 14.386; 14.47, subdivision 1; 15.50, subdivision 2; 16A.632, subdivision 2; 16B.18, subdivision 3; 16D.11, subdivision 7; 17.03, subdivision 10; 17.54, subdivision 4; 17.56, subdivision 2; 17.57, subdivision 1; 17.64, subdivision 2; 18.022, subdivision 9; 18.0227, subdivision 3; 32.394, subdivision 12; 41B.07; 41C.13; 43A.182; 48.221; 50.175, subdivision 2; 51A.361; 52.17, subdivision 2; 53.07, subdivision 1; 60A.13, subdivision 6; 60K.19, subdivision 6; 61B.21, subdivision 1; 62E.10, subdivision 8; 62J.04, subdivision 1; 62J.152, subdivision 4; 62L.13, subdivision 3; 62N.23; 62N.25, subdivision 6; 65B.28, subdivision 3; 79.34, subdivisions 1 and 2a; 79.362; 84.98, subdivision 2; 85.045, subdivision 3; 85A.02, subdivision 5b; 85A.05, subdivision 2; 88.80, subdivision 2; 97A.085, subdivision 4a; 115A.11, subdivision 2; 115A.20; 115A.58, subdivision 2; 116.17, subdivision 2; 116.44, subdivision 1; 116C.06, subdivision 1; 116O.05, subdivision 3; 123.3514, subdivision 8; 124.41, subdivision 2; 124.46, subdivision 2; 124.648, subdivision 3; 128C.02, subdivision 4, and by adding a subdivision; 129C.10, subdivision 3; 136A.40; 145.925, subdivision 9; 147A.26; 148B.66, subdivision 3; 148C.03, subdivision 1; 150A.04, subdivision 5; 152.02, subdivision 12; 153A.15, subdivision 3; 161.1231, subdivision 5; 167.50, subdivision 2; 169.06, subdivision 1; 169.452; 169.99, subdivision 2; 171.321, subdivision 2; 174.51, subdivision 2; 176.102, subdivision 2; 176A.08; 182.655, subdivision 1; 216D.03, subdivision 2; 240A.02, subdivision 2; 244.13, subdivision 1; 245.494, subdivision 1; 245A.09, subdivision 10; 256.027; 256.9357, subdivision 3; 256.9685, subdivision 1; 256.969, subdivision 3a; 256B.0625, subdivision 25; 256B.431, subdivision 2e; 256B.434, subdivision 12; 256B.501, subdivision 10; 256B.502; 256B.503; 273.112, subdivision 6a; 299C.155, subdivisions 2 and 3; 299F.093, subdivision 1; 325F.665, subdivision 6; 346.58; 347.51, subdivision 2a; 401.03; 458A.03, subdivision 2; 475A.06, subdivision 2; 507.09; 518.14, subdivision 2; 518.611, subdivision 9; 518.613, subdivision 6; 518.64, subdivision 5; 518.641, subdivision 4; 624.22, subdivision 1; and 624.7151; Laws 1988, chapter 688, article 21, section 7, subdivision 1; and Laws 1991, chapter 265, article 4, section 28; proposing coding for new law in Minnesota Statutes, chapter 14; repealing Minnesota Statutes 1996, sections 14.38, subdivisions 5, 6, 7, 8, and 9; 14.387; 126.56, subdivision 8; 469.173, subdivision 2; and 469.308, subdivision 2.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"ARTICLE 1

EXEMPTIONS ELIMINATED OR NO LONGER NEEDED;

RULEMAKING REQUIRED

Section 1. Minnesota Statutes 1996, section 32.394, subdivision 12, is amended to read:

Subd. 12. [WATER TESTING GUIDELINES.] The commissioner of agriculture, in consultation with the commissioner of health, shall establish guidelines for the testing required under section 32.394, subdivision 11, clause (3). The guidelines are not subject to chapter 14.

Sec. 2. Minnesota Statutes 1996, section 41B.07, is amended to read:

41B.07 [RULES.]

The authority may adopt rules for the efficient administration of sections 41B.01 to 41B.23. The rules need not be adopted in compliance with chapter 14.


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Sec. 3. Minnesota Statutes 1996, section 41C.13, is amended to read:

41C.13 [RULES.]

The authority may adopt rules for the efficient administration of this chapter. The rules need not be adopted in compliance with chapter 14.

Sec. 4. Minnesota Statutes 1996, section 43A.182, is amended to read:

43A.182 [PAYMENT OF SALARY DIFFERENTIAL FOR RESERVE FORCES ON ACTIVE DUTY.]

Each agency head shall pay to each eligible member of the reserve components of the armed forces of the United States an amount equal to the difference between the member's basic active duty military salary and the salary the member would be paid as an active state employee, including any adjustments the member would have received if not on leave of absence. This payment may be made only to a person whose basic active duty military salary is less than the salary the person would be paid as an active state employee. Payments must be made at the intervals at which the member received pay as a state employee. Back pay authorized by this section may be paid in a lump sum. Such pay shall not extend beyond four years from the date the employee was called to active duty plus such additional time in each case as such employee may be required to serve pursuant to law.

An eligible member of the reserve components of the armed forces of the United States is a reservist or National Guard member who was an employee of the state of Minnesota at the time the member was called to active duty and who was or is called to active duty after August 1, 1990, because of Operation Desert Shield, Operation Desert Storm, or any other action taken by the armed forces relating to hostilities between the United States and the Republic of Iraq.

For the purposes of this section, an employee of the state is an employee of the executive, judicial, or legislative branches of state government or an employee of the Minnesota state retirement system, the public employee retirement association, or the teachers retirement association.

The commissioner of employee relations and the commissioner of finance shall adopt procedures required to implement this section. The procedures are exempt from chapter 14.

Sec. 5. Minnesota Statutes 1996, section 62J.04, subdivision 1, is amended to read:

Subdivision 1. [LIMITS ON THE RATE OF GROWTH.] (a) The commissioner of health shall set annual limits on the rate of growth of public and private spending on health care services for Minnesota residents, as provided in paragraph (b). The limits on growth must be set at levels the commissioner determines to be realistic and achievable but that will reduce the rate of growth in health care spending by at least ten percent per year for the next five years. The commissioner shall set limits on growth based on available data on spending and growth trends, including data from group purchasers, national data on public and private sector health care spending and cost trends, and trend information from other states.

(b) The commissioner shall set the following annual limits on the rate of growth of public and private spending on health care services for Minnesota residents:

(1) for calendar year 1994, the rate of growth must not exceed the change in the regional consumer price index for urban consumers for calendar year 1993 plus 6.5 percentage points;

(2) for calendar year 1995, the rate of growth must not exceed the change in the regional consumer price index for urban consumers for calendar year 1994 plus 5.3 percentage points;

(3) for calendar year 1996, the rate of growth must not exceed the change in the regional consumer price index for urban consumers for calendar year 1995 plus 4.3 percentage points;

(4) for calendar year 1997, the rate of growth must not exceed the change in the regional consumer price index for urban consumers for calendar year 1996 plus 3.4 percentage points; and


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(5) for calendar year 1998, the rate of growth must not exceed the change in the regional consumer price index for urban consumers for calendar year 1997 plus 2.6 percentage points.

The commissioner shall adjust the growth limit set for calendar year 1995 to recover savings in health care spending required for the period July 1, 1993 to December 31, 1993. The commissioner shall publish:

(1) the projected limits in the State Register by April 15 of the year immediately preceding the year in which the limit will be effective except for the year 1993, in which the limit shall be published by July 1, 1993;

(2) the quarterly change in the regional consumer price index for urban consumers; and

(3) the health care financing administration forecast for total growth in the national health care expenditures. In setting an annual limit, the commissioner is exempt from the rulemaking requirements of chapter 14. The commissioner's decision on an annual limit is not appealable.

Sec. 6. Minnesota Statutes 1996, section 62N.25, subdivision 6, is amended to read:

Subd. 6. [SOLVENCY.] A community integrated service network is exempt from the deposit, reserve, and solvency requirements specified in sections 62D.041, 62D.042, 62D.043, and 62D.044 and shall comply instead with sections 62N.27 to 62N.32. In applying sections 62N.27 to 62N.32, the commissioner is exempt from the rulemaking requirements of chapter 14. However, To the extent that there are analogous definitions or procedures in chapter 62D or in rules promulgated thereunder, the commissioner shall follow those existing provisions rather than adopting a contrary approach or interpretation. This rulemaking exemption shall expire on June 1, 1995.

Sec. 7. Minnesota Statutes 1996, section 84.98, subdivision 2, is amended to read:

Subd. 2. [PLAN.] (a) The commissioner of natural resources shall develop a plan for the Minnesota conservation corps to provide:

(1) equal opportunities of employment for youths with preference given to youths who are economically, socially, physically, or educationally disadvantaged and youths residing in areas of substantial unemployment;

(2) equal opportunity for female and male youths;

(3) summer youth programs and year-round young adult programs;

(4) ways in which exclusive bargaining representatives are to be involved in regard to the planning and implementation of positions and job duties of persons employed in projects;

(5) methods for coordinating the programs of the Minnesota conservation corps with other publicly authorized or subsidized programs in cooperation with the commissioners of children, families, and learning and economic security, the workforce development council, and other state and local youth service and education entities;

(6) programs for participants to be assisted in gaining employment or training upon completing the projects, including, where feasible, in cooperation with the department of economic security and educational agencies, arranging for career assessment and planning services designed to enhance participant transition from the Minnesota conservation corps to future employment or education;

(7) a remedial education component utilizing, as resources permit and where feasible, the services of the department of economic security and educational agencies including instruction in life skills and basic remedial skills for participants who are deficient in the skills or who have not completed high school;

(8) the manner of allocating the services of Minnesota conservation corps members to the various divisions of the department of natural resources, to other state, local, and federal governmental conservation and natural resource managers, and to federally recognized Indian tribes or bands;


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(9) standards of conduct and other operating guidelines for Minnesota conservation corps members; and

(10) a determination of preference for projects that will provide long-term benefits to the public, will provide productive work and public service experience to Minnesota conservation corps members, will be primarily labor intensive, and will provide a significant return on taxpayer investment.

(b) The commissioner shall establish the plan notwithstanding chapter 14. No later than July 1, 1990, the plan established under this paragraph subdivision shall be adopted under the rulemaking provisions of chapter 14.

Sec. 8. Minnesota Statutes 1996, section 88.80, subdivision 2, is amended to read:

Subd. 2. [PILOT PROJECT.] The commissioner shall establish an aspen recycling program pilot project in the highest priority area on state lands in order to develop effective program procedures and practices. With respect to the pilot project, the commissioner may restrict bidding on contracts for the cutting, removal, and disposal of aspens, and for related activities, to loggers and others residing in the pilot project area designated under the program that are financially distressed. The commissioner may establish standards and procedures for awarding logging contracts, notwithstanding chapter 14, relating to eligibility for employment for conservation work projects.

Sec. 9. Minnesota Statutes 1996, section 115A.11, subdivision 2, is amended to read:

Subd. 2. [PROCEDURE.] The plan and the procedures for hearings on the plan are not subject to the rulemaking or contested case provisions of chapter 14. Before revising the draft plan or amending its adopted plan, the office shall provide notice and hold a public meeting.

Sec. 10. Minnesota Statutes 1996, section 115A.20, is amended to read:

115A.20 [EVALUATION OF SITES.]

The office shall not be required to promulgate rules pursuant to chapter 14 to govern its evaluation and selection of sites for commercial stabilization and containment facilities under sections 115A.18 to 115A.30, nor shall the agency be required to promulgate rules pursuant to chapter 14 on criteria and standards to govern its certification of intrinsic suitability of sites for commercial stabilization and containment facilities under sections 115A.18 to 115A.30. In evaluating and selecting sites for stabilization and containment facilities, the office shall consider at least the following factors:

(a) economic feasibility, including proximity to concentrations of generators of the types of hazardous wastes likely to be proposed and permitted for stabilization and containment;

(b) intrinsic suitability of the sites;

(c) federal and state pollution control and environmental protection rules;

(d) the risk and effect for local residents, units of government, and the local public health, safety, and welfare, including such dangers as an accidental release of wastes during transportation to a facility or at a facility, water, air, and land pollution, and fire or explosion;

(e) the consistency of a facility with, and its effect on, existing and planned local land use and development; local laws, ordinances, and permits; and local public facilities and services;

(f) the adverse effects of a facility at the site on agriculture and natural resources and opportunities to mitigate or eliminate such adverse effects by stipulations, conditions, and requirements respecting the design and operation of a disposal facility at the proposed site.

No land shall be excluded from consideration except land determined by the agency to be intrinsically unsuitable for the use intended.


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Nothing in this section shall be construed as granting the office an exemption from the rulemaking requirements of chapter 14 if the agency adopts statements of general applicability and future effect, including amendments, suspensions, and repeals of rules, adopted to implement or make specific the law enforced or administered by the agency or to govern the organization and procedure.

Sec. 11. Minnesota Statutes 1996, section 116.44, subdivision 1, is amended to read:

Subdivision 1. [LIST OF AREAS.] By January 1, 1983, the pollution control agency shall publish a preliminary list of counties determined to contain natural resources sensitive to the impacts of acid deposition. Sensitive areas shall be designated on the basis of:

(a) the presence of plants and animal species which are sensitive to acid deposition;

(b) geological information identifying those areas which have insoluble bedrock which is incapable of adequately neutralizing acid deposition; and

(c) existing acid deposition reports and data prepared by the pollution control agency and the federal environmental protection agency. The pollution control agency shall conduct public meetings on the preliminary list of acid deposition sensitive areas. Meetings shall be concluded by March 1, 1983, and a final list published by May 1, 1983. The list shall not be subject to the rulemaking or contested case provisions of chapter 14.

Sec. 12. Minnesota Statutes 1996, section 123.3514, subdivision 8, is amended to read:

Subd. 8. [TRANSPORTATION.] A parent or guardian of a pupil enrolled in a course for secondary credit may apply to the pupil's district of residence for reimbursement for transporting the pupil between the secondary school in which the pupil is enrolled or the pupil's home and the post-secondary institution that the pupil attends. The commissioner shall establish guidelines for providing state aid to districts to reimburse the parent or guardian for the necessary transportation costs, which shall be based on financial need. The reimbursement may not exceed the pupil's actual cost of transportation or 15 cents per mile traveled, whichever is less. Reimbursement may not be paid for more than 250 miles per week. However, if the nearest post-secondary institution is more than 25 miles from the pupil's resident secondary school, the weekly reimbursement may not exceed the reimbursement rate per mile times the actual distance between the secondary school or the pupil's home and the nearest post-secondary institution times ten. The state shall pay aid to the district according to the guidelines established under this subdivision. Chapter 14 does not apply to the guidelines.

Sec. 13. Minnesota Statutes 1996, section 129C.10, subdivision 3, is amended to read:

Subd. 3. [POWERS AND DUTIES OF BOARD.] (a) The board has the powers necessary for the care, management, and control of the Lola and Rudy Perpich Minnesota center for arts education and all its real and personal property. The powers shall include, but are not limited to, those listed in this subdivision.

(b) The board may employ and discharge necessary employees, and contract for other services to ensure the efficient operation of the center for arts education.

(c) The board may receive and award grants. The board may establish a charitable foundation and accept, in trust or otherwise, any gift, grant, bequest, or devise for educational purposes and hold, manage, invest, and dispose of them and the proceeds and income of them according to the terms and conditions of the gift, grant, bequest, or devise and its acceptance. The board shall adopt internal procedures to administer and monitor aids and grants.

(d) The board may establish or coordinate evening, continuing education, extension, and summer programs for teachers and pupils.

(e) The board may identify pupils who have artistic talent, either demonstrated or potential, in dance, literary arts, media arts, music, theater, and visual arts, or in more than one art form.

(f) The board shall educate pupils with artistic talent by providing:

(1) an interdisciplinary academic and arts program for pupils in the 11th and 12th grades. The total number of pupils accepted under this clause and clause (2) shall not exceed 300;


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(2) additional instruction to pupils for a 13th grade. Pupils eligible for this instruction are those enrolled in 12th grade who need extra instruction and who apply to the board, or pupils enrolled in the 12th grade who do not meet learner outcomes established by the board. Criteria for admission into the 13th grade shall not be subject to chapter 14;

(3) intensive arts seminars for one or two weeks for pupils in grades 9 to 12;

(4) summer arts institutes for pupils in grades 9 to 12;

(5) artist mentor and extension programs in regional sites; and

(6) teacher education programs for indirect curriculum delivery.

(g) The board may determine the location for the Lola and Rudy Perpich Minnesota center for arts education and any additional facilities related to the center, including the authority to lease a temporary facility.

(h) The board must plan for the enrollment of pupils on an equal basis from each congressional district.

(i) The board may establish task forces as needed to advise the board on policies and issues. The task forces expire as provided in section 15.059, subdivision 6.

(j) The board may request the commissioner of children, families, and learning for assistance and services.

(k) The board may enter into contracts with other public and private agencies and institutions for residential and building maintenance services if it determines that these services could be provided more efficiently and less expensively by a contractor than by the board itself. The board may also enter into contracts with public or private agencies and institutions, school districts or combinations of school districts, or service cooperatives to provide supplemental educational instruction and services.

(l) The board may provide or contract for services and programs by and for the center for arts education, including a store, operating in connection with the center; theatrical events; and other programs and services that, in the determination of the board, serve the purposes of the center.

(m) The board may provide for transportation of pupils to and from the center for arts education for all or part of the school year, as the board considers advisable and subject to its rules. Notwithstanding any other law to the contrary, the board may charge a reasonable fee for transportation of pupils. Every driver providing transportation of pupils under this paragraph must possess all qualifications required by the state board of education. The board may contract for furnishing authorized transportation under rules established by the commissioner of children, families, and learning and may purchase and furnish gasoline to a contract carrier for use in the performance of a contract with the board for transportation of pupils to and from the center for arts education. When transportation is provided, scheduling of routes, establishment of the location of bus stops, the manner and method of transportation, the control and discipline of pupils, and any other related matter is within the sole discretion, control, and management of the board.

(n) The board may provide room and board for its pupils. If the board provides room and board, it shall charge a reasonable fee for the room and board. The fee is not subject to chapter 14 and is not a prohibited fee according to sections 120.71 to 120.76.

(o) The board may establish and set fees for services and programs without regard to chapter 14. If the board sets fees not authorized or prohibited by the Minnesota public school fee law, it may do so without complying with the requirements of section 120.75, subdivision 1.

Sec. 14. Minnesota Statutes 1996, section 169.452, is amended to read:

169.452 [ACCIDENT AND SERIOUS INCIDENT REPORTING.]

The department of public safety shall develop uniform definitions of a school bus accident, an incident of serious misconduct, and an incident that results in personal injury or death. The department shall determine what type of information on school bus accidents and incidents, including criminal conduct, and bus driver dismissals for cause should be collected


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and develop a uniform accident and incident reporting form to collect those data, including data relating to type III vehicles, statewide. In addition to the form, the department shall have an alternative method of reporting that allows school districts to use computer technology to provide the required information. School districts shall report the information required by the department using either format. A school district must not be charged for reporting forms or reporting procedures under this section. Data collected under this section shall be analyzed to help develop accident, crime, and misconduct prevention programs. This section is not subject to chapter 14.

Sec. 15. Minnesota Statutes 1996, section 216D.03, subdivision 2, is amended to read:

Subd. 2. [ESTABLISHMENT OF NOTIFICATION CENTER.] (a) The notification center services must be provided by a nonprofit corporation approved in writing by the commissioner. A group or nonprofit corporation that intends to seek approval under this paragraph shall notify the commissioner by September 1, 1987, of the date, time, and location of its first meeting. The commissioner shall provide advance notice of the first organizational meeting by publication in qualified legal newspapers and in appropriate trade journals and by written notice to all appropriate trade associations.

The nonprofit corporation must be governed by a board of directors of up to 20 members, one of whom is the director of the office of pipeline safety. The other board members must represent and be elected by operators, excavators, and other persons eligible to participate in the center. By November 1, 1987, the board shall, with input from all interested parties, determine the operating procedures and technology needed for a single statewide notification center and establish a notification process and competitive bidding procedure to select a vendor to provide the notification service. In deciding to approve a nonprofit corporation, the commissioner shall consider whether it meets the requirements of this paragraph and whether it demonstrates that it has the ability to contract for and implement the notification center service.

(b) If the commissioner has not approved a nonprofit corporation under paragraph (a) by January 1, 1988, the commissioner shall follow the procedure in this paragraph. The commissioner shall prepare a preliminary draft of operating procedures and technology needed for a statewide notification center and the method for assessing the cost of the service among operators. After holding at least one public hearing on the preliminary draft following notice given in the manner required by paragraph (a), the commissioner shall adopt final operating procedures, technology, and assessment methods. The preliminary draft, public hearings, and final adoption are not subject to chapter 14. By June 1, 1988, The commissioner shall may select a vendor to provide the notification center service. The commissioner shall advertise for bids as provided in section 16B.07, subdivision 3, and base the selection of a vendor on an identification of the lowest responsible bidder as provided in section 16B.09, subdivision 1. The commissioner shall select and contract with the vendor to provide the notification center service, but all costs of the center must be paid by the operators. The commissioner may at any time appoint a task force to advise on the renewal of the contract or any other matter involving the center's operations.

(c) The notification center must be in operation by October 1, 1988. An operator may submit a bid and be selected to contract to provide the notification center service under paragraph (a) or (b). The commissioner shall annually review the services provided by the nonprofit corporation approved under paragraph (a) or the vendor selected under paragraph (b).

Sec. 16. Minnesota Statutes 1996, section 245.494, subdivision 1, is amended to read:

Subdivision 1. [CHILDREN'S CABINET.] The children's cabinet, in consultation with the integrated fund task force, shall:

(1) assist local children's mental health collaboratives in meeting the requirements of sections 245.491 to 245.496, by seeking consultation and technical assistance from national experts and coordinating presentations and assistance from these experts to local children's mental health collaboratives;

(2) assist local children's mental health collaboratives in identifying an economically viable operational target population;

(3) develop methods to reduce duplication and promote coordinated services including uniform forms for reporting, billing, and planning of services;

(4) by September 1, 1994, develop a model multiagency plan of care that can be used by local children's mental health collaboratives in place of an individual education plan, individual family community support plan, individual family support plan, and an individual treatment plan;


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(5) assist in the implementation and operation of local children's mental health collaboratives by facilitating the integration of funds, coordination of services, and measurement of results, and by providing other assistance as needed;

(6) by July 1, 1993, develop a procedure for awarding start-up funds. Development of this procedure shall be exempt from chapter 14;

(7) develop procedures and provide technical assistance to allow local children's mental health collaboratives to integrate resources for children's mental health services with other resources available to serve children in the target population in order to maximize federal participation and improve efficiency of funding;

(8) (7) ensure that local children's mental health collaboratives and the services received through these collaboratives meet the requirements set out in sections 245.491 to 245.496;

(9) (8) identify base level funding from state and federal sources across systems;

(10) (9) explore ways to access additional federal funds and enhance revenues available to address the needs of the target population;

(11) (10) develop a mechanism for identifying the state share of funding for services to children in the target population and for making these funds available on a per capita basis for services provided through the local children's mental health collaborative to children in the target population. Each year beginning January 1, 1994, forecast the growth in the state share and increase funding for local children's mental health collaboratives accordingly;

(12) (11) identify barriers to integrated service systems that arise from data practices and make recommendations including legislative changes needed in the data practices act to address these barriers; and

(13) (12) annually review the expenditures of local children's mental health collaboratives to ensure that funding for services provided to the target population continues from sources other than the federal funds earned under sections 245.491 to 245.496 and that federal funds earned are spent consistent with sections 245.491 to 245.496.

Sec. 17. Minnesota Statutes 1996, section 256.027, is amended to read:

256.027 [USE OF VANS PERMITTED.]

The commissioner, after consultation with the commissioner of public safety, shall prescribe procedures to permit the occasional use of lift-equipped vans that have been financed, in whole or in part, by public money to transport an individual whose own lift-equipped vehicle is unavailable because of equipment failure and who is thus unable to complete a trip home or to a medical facility. For purposes of prescribing these procedures, the commissioner is exempt from the provisions of chapter 14. The commissioner shall encourage publicly financed lift-equipped vans to be made available to a county sheriff's department, and to other persons who are qualified to drive the vans and who are also qualified to assist the individual in need of transportation, for this purpose.

Sec. 18. Minnesota Statutes 1996, section 256.9357, subdivision 3, is amended to read:

Subd. 3. [PERIOD UNINSURED.] To be eligible for subsidized premium payments based on a sliding scale, families and individuals initially enrolled in the MinnesotaCare program under section 256.9354, subdivisions 4 and 5, must have had no health coverage for at least four months prior to application. The commissioner may change this eligibility criterion for sliding scale premiums without complying with rulemaking requirements in order to remain within the limits of available appropriations. The requirement of at least four months of no health coverage prior to application for the MinnesotaCare program does not apply to:

(1) families, children, and individuals who want to apply for the MinnesotaCare program upon termination from the medical assistance program, general assistance medical care program, or coverage under a regional demonstration project for the uninsured funded under section 256B.73, the Hennepin county assured care program, or the Group Health, Inc., community health plan;


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(2) families and individuals initially enrolled under section 256.9354, subdivisions 1, paragraph (a), and 2;

(3) children enrolled pursuant to Laws 1992, chapter 549, article 4, section 17; or

(4) individuals currently serving or who have served in the military reserves, and dependents of these individuals, if these individuals: (i) reapply for MinnesotaCare coverage after a period of active military service during which they had been covered by the Civilian Health and Medical Program of the Uniformed Services (CHAMPUS); (ii) were covered under MinnesotaCare immediately prior to obtaining coverage under CHAMPUS; and (iii) have maintained continuous coverage.

Sec. 19. Minnesota Statutes 1996, section 256.9685, subdivision 1, is amended to read:

Subdivision 1. [AUTHORITY.] The commissioner shall establish procedures for determining medical assistance and general assistance medical care payment rates under a prospective payment system for inpatient hospital services in hospitals that qualify as vendors of medical assistance. The commissioner shall establish, by rule, procedures for implementing this section and sections 256.9686, 256.969, and 256.9695. The medical assistance payment rates must be based on methods and standards that the commissioner finds are adequate to provide for the costs that must be incurred for the care of recipients in efficiently and economically operated hospitals. Services must meet the requirements of section 256B.04, subdivision 15, or 256D.03, subdivision 7, paragraph (b), to be eligible for payment. except the commissioner may establish exemptions to specific requirements based on diagnosis, procedure, or service after notice in the State Register and a 30-day comment period.

Sec. 20. Minnesota Statutes 1996, section 256.969, subdivision 3a, is amended to read:

Subd. 3a. [PAYMENTS.] Acute care hospital billings under the medical assistance program must not be submitted until the recipient is discharged. However, the commissioner shall establish monthly interim payments for inpatient hospitals that have individual patient lengths of stay over 30 days regardless of diagnostic category. To establish interim rates, the commissioner is exempt from the requirements of chapter 14. Medical assistance reimbursement for treatment of mental illness shall be reimbursed based on diagnostic classifications. The commissioner may selectively contract with hospitals for services within the diagnostic categories relating to mental illness and chemical dependency under competitive bidding when reasonable geographic access by recipients can be assured. No physician shall be denied the privilege of treating a recipient required to use a hospital under contract with the commissioner, as long as the physician meets credentialing standards of the individual hospital. Individual hospital payments established under this section and sections 256.9685, 256.9686, and 256.9695, in addition to third party and recipient liability, for discharges occurring during the rate year shall not exceed, in aggregate, the charges for the medical assistance covered inpatient services paid for the same period of time to the hospital. This payment limitation shall be calculated separately for medical assistance and general assistance medical care services. The limitation on general assistance medical care shall be effective for admissions occurring on or after July 1, 1991. Services that have rates established under subdivision 11 or 12, must be limited separately from other services. After consulting with the affected hospitals, the commissioner may consider related hospitals one entity and may merge the payment rates while maintaining separate provider numbers. The operating and property base rates per admission or per day shall be derived from the best Medicare and claims data available when rates are established. The commissioner shall determine the best Medicare and claims data, taking into consideration variables of recency of the data, audit disposition, settlement status, and the ability to set rates in a timely manner. The commissioner shall notify hospitals of payment rates by December 1 of the year preceding the rate year. The rate setting data must reflect the admissions data used to establish relative values. Base year changes from 1981 to the base year established for the rate year beginning January 1, 1991, and for subsequent rate years, shall not be limited to the limits ending June 30, 1987, on the maximum rate of increase under subdivision 1. The commissioner may adjust base year cost, relative value, and case mix index data to exclude the costs of services that have been discontinued by the October 1 of the year preceding the rate year or that are paid separately from inpatient services. Inpatient stays that encompass portions of two or more rate years shall have payments established based on payment rates in effect at the time of admission unless the date of admission preceded the rate year in effect by six months or more. In this case, operating payment rates for services rendered during the rate year in effect and established based on the date of admission shall be adjusted to the rate year in effect by the hospital cost index.

Sec. 21. Minnesota Statutes 1996, section 273.112, subdivision 6a, is amended to read:

Subd. 6a. The commissioner of revenue shall develop and issue guidelines for qualification by private golf clubs under this section covering the access to and use of the golf course by members and other adults so as to be consistent with the purposes and terms of this section. The guidelines shall be mailed to the county attorney and assessor of each county not


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later than 60 days following May 26, 1989. Within 15 days of receipt of the guidelines from the commissioner, the assessor shall mail a copy of the guidelines to each golf club in the county. The guidelines issued under this subdivision are not subject to the administrative procedure act under chapter 14.

Sec. 22. Minnesota Statutes 1996, section 299F.093, subdivision 1, is amended to read:

Subdivision 1. [DUTIES; RULES.] (a) The commissioner shall:

(1) adopt rules no later than July 1, 1987, with the advice of the hazardous substance notification advisory committee, establishing the form and content of the hazardous substance notification report form, as required by section 299F.094, and describing one or more hazard categories with specified ranges of quantities in each hazard category, representing increments of substantially increased risk;

(2) print and provide to individual fire departments the requested number of hazardous substance notification reports, which must be made available to a fire department no more than 90 days following its request, for the fire department to mail or otherwise make available to employers in the jurisdiction;

(3) report to the legislature, as needed, on the effectiveness of sections 299F.091 to 299F.099 and recommend amendments to sections 299F.091 to 299F.099 that are considered necessary;

(4) adopt rules to implement sections 299F.091 to 299F.099, compatible with the Minnesota Uniform Fire Code so as to not limit the authority of local fire officials under that code; and

(5) adopt rules that are based on the most recent standard 704, adopted by the National Fire Protection Association, and that allow a fire department to require employers within its jurisdiction to post signs conforming to standard 704, and indicating the presence of hazardous substances. If the signs are required, a fire department shall supply the signs or provide information to assist an employer to obtain them.

(b) The commissioner shall adopt criteria and guidelines, with the concurrence of the hazardous substance notification advisory committee, for the disbursement of funds pursuant to Laws 1986, First Special Session chapter 1, article 10, section 20, subdivision 1. These criteria and guidelines are exempt from the Minnesota administrative procedure act.

Sec. 23. Minnesota Statutes 1996, section 624.22, subdivision 1, is amended to read:

Subdivision 1. [GENERAL REQUIREMENTS; PERMIT; INVESTIGATION; FEE.] (a) Sections 624.20 to 624.25 shall not prohibit the supervised display of fireworks by a statutory or home rule charter city, fair association, amusement park, or other organization, except that:

(1) a fireworks display may be conducted only when supervised by an operator certified by the state fire marshal; and

(2) a fireworks display must either be given by a municipality or fair association within its own limits, or by any other organization, whether public or private, only after a permit for the display has first been secured.

(b) Every application for such a permit shall be made in writing to the municipal clerk at least 15 days in advance of the date of the display and shall list the name of an operator who (1) is certified by the state fire marshal and (2) will supervise the display. The application shall be promptly referred to the chief of the fire department who shall make an investigation to determine whether the operator of the display is competent and is certified by the state fire marshal, and whether the display is of such a character and is to be so located, discharged, or fired that it will not be hazardous to property or endanger any person. The fire chief shall report the results of this investigation to the clerk. If the fire chief reports that the operator is certified, that in the chief's opinion the operator is competent, and that the fireworks display as planned will conform to the safety guidelines of the state fire marshal provided for in paragraph (e), the clerk shall issue a permit for the display when the applicant pays a permit fee.

(c) When the supervised fireworks display for which a permit is sought is to be held outside the limits of an incorporated municipality, the application shall be made to the county auditor and the duties imposed by sections 624.20 to 624.25 upon the clerk of the municipality shall be performed in such case by the county auditor. The duties imposed on the fire chief of the municipality by sections 624.20 to 624.25 shall be performed in such case by the county sheriff.


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(d) After such permit shall have been granted, sales, possession, use and distribution of fireworks for such display shall be lawful for that purpose only. No permit so granted shall be transferable.

(e) By January 1, 1996, the state fire marshal shall adopt and disseminate to political subdivisions reasonable guidelines on fireworks display safety, which are exempt from chapter 14, that are consistent with sections 624.20 to 624.25 and the most recent editions of the Minnesota Uniform Fire Code and the National Fire Protection Association Standards, to insure that fireworks displays are given safely. In the guidelines, the state fire marshal shall allow political subdivisions to exempt the use of relatively safe fireworks for theatrical special effects, ceremonial occasions, and other limited purposes, as determined by the state fire marshal.

Sec. 24. Laws 1988, chapter 688, article 21, section 7, subdivision 1, is amended to read:

Subdivision 1. [REVOLVING LOAN FUND.] $1,000,000 is appropriated from the general fund to the commissioner of agriculture to be credited to a revolving loan account for low-interest loans to farmers to adopt sustainable agriculture practices. Money in the account does not cancel but is appropriated to the commissioner of agriculture to make low-interest loans to farmers under this subdivision. Notwithstanding chapter 14, The commissioner shall prescribe procedures for application and implementation of the program.

Sec. 25. Laws 1991, chapter 265, article 4, section 28, is amended to read:

Sec. 28. [COMMISSIONER OF EDUCATION TO ESTABLISH ELIGIBILITY STANDARDS.]

The commissioner of education shall establish standards to determine the eligibility of an individual to take a GED test at a reduced cost. The standards shall be established without rulemaking under Minnesota Statutes, chapter 14. The standards shall include the following:

(1) the individual shall have resided in Minnesota at least 90 days;

(2) the individual is not currently enrolled in a program leading to a high school diploma; and

(3) the individual shall not take more than three tests at a reduced cost.

Sec. 26. [EFFECT OF ELIMINATION OF EXEMPTION AUTHORITY.]

The elimination of rulemaking exemption authority in this article does not affect the validity of agency statements of general applicability and future effect adopted before the effective date of this section to implement or make specific the law enforced or administered by the agency or to govern its organization or procedure.

Sec. 27. [REPEALER.]

Minnesota Statutes 1996, section 126.56, subdivision 8, is repealed.

Sec. 28. [EFFECTIVE DATE.]

This article is effective June 30, 1997.

ARTICLE 2

EXEMPTIONS ELIMINATED; COVERAGE UNDER GENERIC EXEMPTIONS

Section 1. Minnesota Statutes 1996, section 17.03, subdivision 10, is amended to read:

Subd. 10. [GIFTS; PUBLICATION FEES; ADVERTISING; APPROPRIATION.] (a) The commissioner may accept for and on behalf of the state any gift, bequest, devise, grant, or interest in money or personal property of any kind tendered to the state for any purpose pertaining to the activities of the department of agriculture or any of its divisions.


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(b) The commissioner may charge a fee for reports, publications, or other promotional or informational material produced by the department of agriculture. The commissioner may solicit and accept advertising revenue for any departmental publications or promotional materials.

(c) The fees collected by the commissioner under this section are to recover all or part of the costs of providing services for which the fees are paid. These fees are not subject to chapter 14 or section 16A.1285.

(d) Money received by the commissioner for these activities may be credited to one or more special accounts in the state treasury. Money in those special accounts is annually appropriated to the commissioner to provide the services for which the money was received.

Sec. 2. Minnesota Statutes 1996, section 62N.23, is amended to read:

62N.23 [TECHNICAL ASSISTANCE; LOANS.]

(a) The commissioner shall provide technical assistance to parties interested in establishing or operating a community integrated service network or an integrated service network. This shall be known as the integrated service network technical assistance program (ISNTAP).

The technical assistance program shall offer seminars on the establishment and operation of community integrated service networks or integrated service networks in all regions of Minnesota. The commissioner shall advertise these seminars in local and regional newspapers, and attendance at these seminars shall be free.

The commissioner shall write a guide to establishing and operating a community integrated service network or an integrated service network. The guide must provide basic instructions for parties wishing to establish a community integrated service network or an integrated service network. The guide must be provided free of charge to interested parties. The commissioner shall update this guide when appropriate.

The commissioner shall establish a toll-free telephone line that interested parties may call to obtain assistance in establishing or operating a community integrated service network or an integrated service network.

(b) The commissioner shall grant loans for organizational and start-up expenses to entities forming community integrated service networks or integrated service networks, or to networks less than one year old, to the extent of any appropriation for that purpose. The commissioner shall allocate the available funds among applicants based upon the following criteria, as evaluated by the commissioner within the commissioner's discretion:

(1) the applicant's need for the loan;

(2) the likelihood that the loan will foster the formation or growth of a network; and

(3) the likelihood of repayment.

The commissioner shall determine any necessary application deadlines and forms and is exempt from rulemaking in doing so.

Sec. 3. Minnesota Statutes 1996, section 129C.10, subdivision 3, is amended to read:

Subd. 3. [POWERS AND DUTIES OF BOARD.] (a) The board has the powers necessary for the care, management, and control of the Lola and Rudy Perpich Minnesota center for arts education and all its real and personal property. The powers shall include, but are not limited to, those listed in this subdivision.

(b) The board may employ and discharge necessary employees, and contract for other services to ensure the efficient operation of the center for arts education.


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(c) The board may receive and award grants. The board may establish a charitable foundation and accept, in trust or otherwise, any gift, grant, bequest, or devise for educational purposes and hold, manage, invest, and dispose of them and the proceeds and income of them according to the terms and conditions of the gift, grant, bequest, or devise and its acceptance. The board shall adopt internal procedures to administer and monitor aids and grants.

(d) The board may establish or coordinate evening, continuing education, extension, and summer programs for teachers and pupils.

(e) The board may identify pupils who have artistic talent, either demonstrated or potential, in dance, literary arts, media arts, music, theater, and visual arts, or in more than one art form.

(f) The board shall educate pupils with artistic talent by providing:

(1) an interdisciplinary academic and arts program for pupils in the 11th and 12th grades. The total number of pupils accepted under this clause and clause (2) shall not exceed 300;

(2) additional instruction to pupils for a 13th grade. Pupils eligible for this instruction are those enrolled in 12th grade who need extra instruction and who apply to the board, or pupils enrolled in the 12th grade who do not meet learner outcomes established by the board. Criteria for admission into the 13th grade shall not be subject to chapter 14;

(3) intensive arts seminars for one or two weeks for pupils in grades 9 to 12;

(4) summer arts institutes for pupils in grades 9 to 12;

(5) artist mentor and extension programs in regional sites; and

(6) teacher education programs for indirect curriculum delivery.

(g) The board may determine the location for the Lola and Rudy Perpich Minnesota center for arts education and any additional facilities related to the center, including the authority to lease a temporary facility.

(h) The board must plan for the enrollment of pupils on an equal basis from each congressional district.

(i) The board may establish task forces as needed to advise the board on policies and issues. The task forces expire as provided in section 15.059, subdivision 6.

(j) The board may request the commissioner of children, families, and learning for assistance and services.

(k) The board may enter into contracts with other public and private agencies and institutions for residential and building maintenance services if it determines that these services could be provided more efficiently and less expensively by a contractor than by the board itself. The board may also enter into contracts with public or private agencies and institutions, school districts or combinations of school districts, or service cooperatives to provide supplemental educational instruction and services.

(l) The board may provide or contract for services and programs by and for the center for arts education, including a store, operating in connection with the center; theatrical events; and other programs and services that, in the determination of the board, serve the purposes of the center.

(m) The board may provide for transportation of pupils to and from the center for arts education for all or part of the school year, as the board considers advisable and subject to its rules. Notwithstanding any other law to the contrary, the board may charge a reasonable fee for transportation of pupils. Every driver providing transportation of pupils under this paragraph must possess all qualifications required by the state board of education. The board may contract for furnishing authorized transportation under rules established by the commissioner of children, families, and learning and may purchase and furnish gasoline to a contract carrier for use in the performance of a contract with the board for transportation of pupils to and from the center for arts education. When transportation is provided, scheduling of routes, establishment of the location of bus stops, the manner and method of transportation, the control and discipline of pupils, and any other related matter is within the sole discretion, control, and management of the board.


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(n) The board may provide room and board for its pupils. If the board provides room and board, it shall charge a reasonable fee for the room and board. The fee is not subject to chapter 14 and is not a prohibited fee according to sections 120.71 to 120.76.

(o) The board may establish and set fees for services and programs without regard to chapter 14. If the board sets fees not authorized or prohibited by the Minnesota public school fee law, it may do so without complying with the requirements of section 120.75, subdivision 1.

Sec. 4. Minnesota Statutes 1996, section 147A.26, is amended to read:

147A.26 [PROCEDURES.]

The board shall establish, in writing, internal operating procedures for receiving and investigating complaints, accepting and processing applications, granting registrations, and imposing enforcement actions. The written internal operating procedures may include procedures for sharing complaint information with government agencies in this and other states. Establishment of the operating procedures are not subject to rulemaking procedures under chapter 14. Procedures for sharing complaint information must be consistent with the requirements for handling government data under chapter 13.

Sec. 5. Minnesota Statutes 1996, section 148B.66, subdivision 3, is amended to read:

Subd. 3. [EXCHANGING INFORMATION.] (a) The office of mental health practice shall establish internal operating procedures for:

(1) exchanging information with state boards; agencies, including the office of ombudsman for mental health and mental retardation; health related and law enforcement facilities; departments responsible for licensing health related occupations, facilities, and programs; and law enforcement personnel in this and other states; and

(2) coordinating investigations involving matters within the jurisdiction of more than one regulatory agency.

Establishment of the operating procedures is not subject to rulemaking under chapter 14.

(b) The procedures for exchanging information must provide for the forwarding to the entities described in paragraph (a), clause (1), of information and evidence, including the results of investigations, that are relevant to matters within the regulatory jurisdiction of the organizations in paragraph (a). The data have the same classification in the hands of the agency receiving the data as they have in the hands of the agency providing the data.

(c) The office of mental health practice shall establish procedures for exchanging information with other states regarding disciplinary action against licensed and unlicensed mental health practitioners.

(d) The office of mental health practice shall forward to another governmental agency any complaints received by the office that do not relate to the office's jurisdiction but that relate to matters within the jurisdiction of the other governmental agency. The agency to which a complaint is forwarded shall advise the office of mental health practice of the disposition of the complaint. A complaint or other information received by another governmental agency relating to a statute or rule that the office of mental health practice is empowered to enforce must be forwarded to the office to be processed in accordance with this section.

(e) The office of mental health practice shall furnish to a person who made a complaint a description of the actions of the office relating to the complaint.

Sec. 6. Minnesota Statutes 1996, section 148C.03, subdivision 1, is amended to read:

Subdivision 1. [GENERAL.] The commissioner shall, after consultation with the advisory council or a subcommittee or the special licensing criteria committee established under section 148C.11, subdivision 3, paragraph (b):

(a) adopt and enforce rules for licensure of alcohol and drug counselors, including establishing standards and methods of determining whether applicants and licensees are qualified under section 148C.04. The rules must provide for examinations and establish standards for the regulation of professional conduct. The rules must be designed to protect the public;


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(b) hold or contract for the administration of examinations at least twice a year to assess applicants' knowledge and skills. The examinations must be written and oral and may be administered by the commissioner or by a private organization under contract with the commissioner to administer the licensing examinations. Examinations must minimize cultural bias and must be balanced in various theories relative to practice of alcohol and drug counseling;

(c) issue licenses to individuals qualified under sections 148C.01 to 148C.11;

(d) issue copies of the rules for licensure to all applicants;

(e) adopt rules to establish and implement procedures, including a standard disciplinary process and rules of professional conduct;

(f) carry out disciplinary actions against licensees;

(g) establish, with the advice and recommendations of the advisory council, written internal operating procedures for receiving and investigating complaints and for taking disciplinary actions as appropriate. Establishment of the operating procedures are not subject to rulemaking procedures under chapter 14;

(h) educate the public about the existence and content of the rules for alcohol and drug counselor licensing to enable consumers to file complaints against licensees who may have violated the rules;

(i) evaluate the rules in order to refine and improve the methods used to enforce the commissioner's standards;

(j) set, collect, and adjust license fees for alcohol and drug counselors so that the total fees collected will as closely as possible equal anticipated expenditures during the biennium, as provided in section 16A.1285; fees for initial and renewal application and examinations; late fees for counselors who submit license renewal applications after the renewal deadline; and a surcharge fee. The surcharge fee must include an amount necessary to recover, over a five-year period, the commissioner's direct expenditures for the adoption of the rules providing for the licensure of alcohol and drug counselors. All fees received shall be deposited in the state treasury and credited to the special revenue fund; and

(k) prepare reports on activities related to the licensure of alcohol and drug counselors according to this subdivision by October 1 of each even-numbered year. Copies of the reports shall be delivered to the legislature in accordance with section 3.195 and to the governor. The reports shall contain the following information on the commissioner's activities relating to the licensure of alcohol and drug counselors, for the two-year period ending the previous June 30:

(1) a general statement of the activities;

(2) the number of staff hours spent on the activities;

(3) the receipts and disbursements of funds;

(4) the names of advisory council members and their addresses, occupations, and dates of appointment and reappointment;

(5) the names and job classifications of employees;

(6) a brief summary of rules proposed or adopted during the reporting period with appropriate citations to the State Register and published rules;

(7) the number of persons having each type of license issued by the commissioner as of June 30 in the year of the report;

(8) the locations and dates of the administration of examinations by the commissioner;

(9) the number of persons examined by the commissioner with the persons subdivided into groups showing age categories, sex, and states of residency;


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(10) the number of persons licensed by the commissioner after taking the examinations referred to in clause (8) with the persons subdivided by age categories, sex, and states of residency;

(11) the number of persons not licensed by the commissioner after taking the examinations referred to in clause (8) with the persons subdivided by age categories, sex, and states of residency;

(12) the number of persons not taking the examinations referred to in clause (8) who were licensed by the commissioner or who were denied licensing, the reasons for the licensing or denial, and the persons subdivided by age categories, sex, and states of residency;

(13) the number of persons previously licensed by the commissioner whose licenses were revoked, suspended, or otherwise altered in status with brief statements of the reasons for the revocation, suspension, or alteration;

(14) the number of written and oral complaints and other communications received by the commissioner which allege or imply a violation of a statute or rule which the commissioner is empowered to enforce;

(15) a summary, by specific category, of the substance of the complaints and communications referred to in clause (14) and, for each specific category, the responses or dispositions; and

(16) any other objective information which the commissioner believes will be useful in reviewing the commissioner's activities.

Sec. 7. Minnesota Statutes 1996, section 153A.15, subdivision 3, is amended to read:

Subd. 3. [PROCEDURES.] The commissioner shall establish, in writing, internal operating procedures for receiving and investigating complaints and imposing enforcement actions. The written internal operating procedures may include procedures for sharing complaint information with government agencies in this and other states. Establishment of the operating procedures are not subject to rulemaking procedures under chapter 14. Procedures for sharing complaint information must be consistent with the requirements for handling government data under chapter 13.

Sec. 8. Minnesota Statutes 1996, section 169.99, subdivision 2, is amended to read:

Subd. 2. [COMMISSIONER PRESCRIBES FORM.] The commissioner of public safety shall prescribe the detailed form of the uniform traffic ticket, and shall revise the uniform ticket on such subsequent occasions as necessary and proper to keep the uniform ticket in conformity with state and federal law. The rulemaking provisions of chapter 14 do not apply to this subdivision.

Sec. 9. Minnesota Statutes 1996, section 244.13, subdivision 1, is amended to read:

Subdivision 1. [ESTABLISHMENT.] The commissioner of corrections shall establish programs for those designated by the commissioner to serve all or part of a sentence on intensive community supervision or all or part of a supervised release or parole term on intensive supervised release. The adoption and modification of policies and procedures to implement sections 244.05, subdivision 6, and 244.12 to 244.15 are not subject to the rulemaking procedures of chapter 14 because these policies and procedures are excluded from the definition of a rule under section 14.03, clause (2). The commissioner shall locate the programs so that at least one-half of the money appropriated for the programs in each year is used for programs in community corrections act counties. In awarding contracts for intensive supervision programs in community corrections act counties, the commissioner shall give first priority to programs that utilize county employees as intensive supervision agents and shall give second priority to programs that utilize state employees as intensive supervision agents. The commissioner may award contracts to other providers in community corrections act counties only if doing so will result in a significant cost savings or a significant increase in the quality of services provided, and only after notifying the chairs of the committees in the senate and house of representatives with jurisdiction over criminal justice policy.

Sec. 10. Minnesota Statutes 1996, section 518.14, subdivision 2, is amended to read:

Subd. 2. [ENFORCEMENT OF CHILD SUPPORT.] (a) A child support obligee is entitled to recover from the obligor reasonable attorney fees and other collection costs incurred to enforce a child support judgment, as provided in this subdivision. In order to recover collection costs under this subdivision, the arrearages must be at least $500 and must be


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at least 90 days past due. In addition, the arrearages must be a docketed judgment under sections 548.09 and 548.091. If the obligor pays in full the judgment rendered under section 548.091 within 20 days of receipt of notice of entry of judgment, the obligee is not entitled to recover attorney fees or collection costs under this subdivision.

(b) Written notice must be provided by any obligee contracting with an attorney or collection entity to enforce a child support judgment to the public authority responsible for child support enforcement, if the public authority is a party or provides services to a party, within five days of signing a contract for services and within five days of receipting any payments received on a child support judgment. Attorney fees and collection costs obtained under this subdivision are considered child support and entitled to the applicable remedies for collection and enforcement of child support.

(c) The obligee shall serve notice of the obligee's intent to recover attorney fees and collections costs by certified or registered mail on the obligor at the obligor's last known address. The notice must include an itemization of the attorney fees and collection costs being sought by the obligee and inform the obligor that the fees and costs will become an additional judgment for child support unless the obligor requests a hearing on the reasonableness of the fees and costs or to contest the child support judgment on grounds limited to mistake of fact within 20 days of mailing of the notice.

(d) If the obligor requests a hearing, the only issues to be determined by the court are whether the attorney fees or collection costs were reasonably incurred by the obligee for the enforcement of a child support judgment against the obligor or the validity of the child support judgment on grounds limited to mistake of fact. The fees and costs may not exceed 30 percent of the arrearages. The court may modify the amount of attorney fees and costs as appropriate and shall enter judgment accordingly.

(e) If the obligor fails to request a hearing within 20 days of mailing of the notice under paragraph (a), the amount of the attorney fees or collection costs requested by the obligee in the notice automatically becomes an additional judgment for child support.

(f) The commissioner of human services shall prepare and make available to the court and the parties forms for use in providing for notice and requesting a hearing under this subdivision. The rulemaking provisions of chapter 14 do not apply to the forms.

Sec. 11. Minnesota Statutes 1996, section 518.611, subdivision 9, is amended to read:

Subd. 9. [FORMS.] The commissioner of human services shall prepare and make available to courts and obligors a form to be submitted by the obligor in support of a motion to deny withholding under this section. The rulemaking provisions of chapter 14 shall not apply to the preparation of the form.

Sec. 12. Minnesota Statutes 1996, section 518.613, subdivision 6, is amended to read:

Subd. 6. [NOTICE OF SERVICES.] The department of human services shall prepare and make available to the courts a form notice of child support and maintenance collection services available through the public authority responsible for child support enforcement, including automatic income withholding under this section. Promptly upon the filing of a petition for dissolution of marriage or legal separation by parties who have a minor child, the court administrator shall send the form notice to the petitioner and respondent at the addresses given in the petition. The rulemaking provisions of chapter 14 shall not apply to the preparation of the form notice.

Sec. 13. Minnesota Statutes 1996, section 518.64, subdivision 5, is amended to read:

Subd. 5. [FORM.] The department of human services shall prepare and make available to courts, obligors and persons to whom child support is owed a form to be submitted by the obligor or the person to whom child support is owed in support of a motion for a modification of an order for support or maintenance or for contempt of court. The rulemaking provisions of chapter 14 shall not apply to the preparation of the form.

Sec. 14. Minnesota Statutes 1996, section 518.641, subdivision 4, is amended to read:

Subd. 4. [FORM.] The department of human services shall prepare and make available to the court and obligors a form to be submitted to the department by the obligor in support of a request for hearing under this section regarding a child support order. The rulemaking provisions of chapter 14 shall not apply to the preparation of the form.


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Sec. 15. Minnesota Statutes 1996, section 624.7151, is amended to read:

624.7151 [STANDARDIZED FORMS.]

By December 1, 1992, the commissioner of public safety shall adopt statewide standards governing the form and contents, as required by sections 624.7131 to 624.714, of every application for a pistol transferee permit, pistol transferee permit, report of transfer of a pistol, application for a permit to carry a pistol, and permit to carry a pistol that is granted or renewed on or after January 1, 1993. The adoption of these standards is not subject to the rulemaking provisions of chapter 14.

Every application for a pistol transferee permit, pistol transferee permit, report of transfer of a pistol, application for a permit to carry a pistol, and permit to carry a pistol that is received, granted, or renewed by a police chief or county sheriff on or after January 1, 1993, must meet the statewide standards adopted by the commissioner of public safety. Notwithstanding the previous sentence, neither failure of the department of public safety to adopt standards nor failure of the police chief or county sheriff to meet them shall delay the timely processing of applications nor invalidate permits issued on other forms meeting the requirements of sections 624.7131 to 624.714.

Sec. 16. [EFFECT OF AMENDMENTS OR REPEALS.]

The agency actions in this article are exempt from rulemaking under Minnesota Statutes, section 14.03, subdivision 3, clause (1), or section 16A.1285. An agency need not comply with rulemaking procedures in Minnesota Statutes, chapter 14, in order to take actions affected by the amendments and repeals in this article.

Sec. 17. [EFFECTIVE DATE.]

This article is effective June 30, 1997.

ARTICLE 3

EXEMPTIONS THAT ARE NOT RULES

Section 1. Minnesota Statutes 1996, section 16A.632, subdivision 2, is amended to read:

Subd. 2. [STANDARDS.] Article XI, section 5, clause (a), of the constitution states general obligation bonds may be issued to finance only the acquisition or betterment of state land, buildings, and improvements of a capital nature. In interpreting this and applying it to the purposes of the program contemplated in this section, the following standards are adopted for the disbursement of money from the capital asset preservation and replacement account:

(a) No new land, buildings, or major new improvements will be acquired. These projects, including all capital expenditures required to permit their effective use for the intended purpose on completion, will be estimated and provided for individually through a direct appropriation for each project.

(b) An expenditure will be made from the account only when it is a capital expenditure on a capital asset previously owned by the state, within the meaning of accepted accounting principles as applied to public expenditures. The commissioner of administration will consult with the commissioner of finance to the extent necessary to ensure this and will furnish the commissioner of finance a list of projects to be financed from the account in order of their priority. The commissioner shall also furnish each revision of the list. The legislature assumes that many provisions for preservation and replacement of portions of existing capital assets will constitute betterments and capital improvements within the meaning of the constitution and capital expenditures under correct accounting principles, and will be financed more efficiently and economically under the program than by direct appropriations for specific projects. However, the purpose of the program is to accumulate data showing how additional costs may be saved by appropriating money from the general fund for preservation measures, the necessity of which is predictable over short periods.

(c) The commissioner of administration will furnish instructions to agencies to apply for funding of capital expenditures for preservation and replacement from the account, will review applications, will make initial allocations among types of eligible projects enumerated below, will determine priorities, and will allocate money in priority order until the available appropriation has been committed. Under section 14.02, subdivision 4, these instructions and allocations do not constitute rules and the other provisions of chapter 14 do not apply to them.


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(d) Categories of projects considered likely to be most needed and appropriate for financing are the following:

(1) unanticipated emergencies of all kinds, for which a relatively small amount should be initially reserved, replaced from money allocated to low-priority projects, if possible, as emergencies occur, and used for stabilization rather than replacement if the cost would exhaust the account and should be specially appropriated;

(2) projects to remove life safety hazards, like replacement of mechanical systems, building code violations, or structural defects, at costs not large enough to require major capital requests to the legislature;

(3) elimination or containment of hazardous substances like asbestos or PCBs; and

(4) moderate cost replacement and repair of roofs, windows, tuckpointing, and structural members necessary to preserve the exterior and interior of existing buildings.

Sec. 2. Minnesota Statutes 1996, section 16B.18, subdivision 3, is amended to read:

Subd. 3. [RULES.] Rules under this section may provide a procedure by which the commissioner shall determine product specifications, quality standards, and timing of delivery to be complied with by the sheltered workshop and work activity program boards on purchases made under this section. The list to be prepared pursuant to subdivision 1 shall not be promulgated as a rule.

Sec. 3. Minnesota Statutes 1996, section 16D.11, subdivision 7, is amended to read:

Subd. 7. [ADJUSTMENT OF RATE.] By June 1 of each year, the commissioner of finance shall determine the rate of the penalty for debts referred to the enterprise during the next fiscal year. The rate is a percentage of the debts in an amount that most nearly equals the costs of the enterprise necessary to process and collect referred debts under this chapter. In no event shall the rate of the penalty when a debt is first referred exceed three-fifths of the maximum penalty, and in no event shall the rate of the maximum penalty exceed 25 percent of the debt. Determination of the rate of the penalty under this section is not rulemaking under chapter 14, and is not subject to the fee setting requirements of section 16A.1285.

Sec. 4. Minnesota Statutes 1996, section 17.54, subdivision 4, is amended to read:

Subd. 4. [ELECTION.] Upon receipt of the nominations the commissioner shall promptly arrange an election to be held at places designated by the commissioner reasonably convenient to all producers in the organized area and provide notice of the election to all of the media having a general circulation in the organized area. Ballots setting forth the names of the nominated candidates and providing for write-in candidates shall be made available at all polling places. Only producers of the agricultural commodity involved shall be qualified to vote. General polling procedures shall be established by the commissioner by rule pursuant to chapter 14 to avoid voting by other than qualified producers, but the selection of specific polling places shall not be subject to chapter 14. An impartial committee appointed by the commissioner shall tabulate the votes, and the candidates receiving the most votes shall be declared elected to the first council.

After the first council for a commodity is elected, an election shall be held annually to elect members of the council. The election shall be held in the same manner as prescribed for the first council election except that the manner of choosing nominating committee members, the time of nominations and the time and place of elections shall be fixed by the commissioner. Mail balloting may be permitted by the commissioner.

Sec. 5. Minnesota Statutes 1996, section 17.56, subdivision 2, is amended to read:

Subd. 2. [HEARINGS.] The commissioner, after consultation with the council, shall hold public hearings on the proposed promotional order in areas and at times affording reasonable opportunities for producers to attend. These hearings shall not be subject to the administrative procedure act of chapter 14. After such hearings and after consultation with the council, the commissioner shall determine whether or not the promotional order shall be amended, modified or supplemented. If changes or additions of substance are made, commissioner shall hold public hearings on the amended or supplemented promotional order.


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Sec. 6. Minnesota Statutes 1996, section 17.57, subdivision 1, is amended to read:

Subdivision 1. [ADOPTION OF RULES.] Each council shall at its regular meetings adopt rules consistent with sections 17.51 to 17.69 for the administration of the promotional order. These rules are not subject to the administrative procedure act of chapter 14.

Sec. 7. Minnesota Statutes 1996, section 17.64, subdivision 2, is amended to read:

Subd. 2. [BY REFERENDUM.] Upon petition of the same number of producers as required to initiate the promotional order, the commissioner shall within 60 days conduct a referendum to determine whether or not the promotional order shall be continued. The commissioner shall terminate the order at the end of the current marketing year if a majority of the producers voting in the referendum vote in favor of termination. The petition of producers shall include a statement certifying that the signatures are those of qualified producers of the commodity involved. The commissioner shall not conduct a referendum for termination of a promotional order if a referendum for termination of the same promotional order has been conducted within the preceding year. A hearing for a termination of an order need not be held as provided in chapter 14.

Sec. 8. Minnesota Statutes 1996, section 48.221, is amended to read:

48.221 [RESERVES.]

A state bank or trust company shall maintain reserves in the form of liquid assets at a level reasonably necessary to meet anticipated withdrawals, commitments, and loan demand. Reserves shall be in cash, cash items in process of collection, short term obligations of or demand balances with other insured financial institutions in the United States and its territories, or short term, direct obligations of or guaranteed by the United States government. Obligations must mature within one year to be considered short term. The commissioner may prescribe the required amount of reserves in relation to liabilities for any individual state bank or trust company from time to time based upon examination findings or other reports relating to the bank or trust company that are available to the commissioner. The determination by the commissioner of a required amount of reserves for an institution shall not be considered a rule as defined by section 14.02, subdivision 4. Reserves for an individual state bank or trust company as prescribed by the commissioner pursuant to this section shall be enforced in accordance with sections 46.24 and 46.30 to 46.33.

Sec. 9. Minnesota Statutes 1996, section 50.175, subdivision 2, is amended to read:

Subd. 2. [RESERVES.] A savings bank shall maintain reserves in the form of liquid assets at a level reasonably necessary to meet anticipated withdrawals, commitments, and loan demand. Reserves shall be in cash, cash items in process of collection, short term obligations of or demand balances with other insured financial institutions in the United States and its territories, or short term, direct obligations of or guaranteed by the United States government. Obligations must mature within one year to be considered short term. The commissioner may prescribe the required amount of reserves in relation to liabilities for any individual savings bank from time to time based upon examination findings or other reports relating to the savings bank that are available to the commissioner. The determination by the commissioner of a required amount of reserves for a savings bank shall not be considered a rule as defined by section 14.02, subdivision 4. Reserves for an individual savings bank as prescribed by the commissioner pursuant to this section shall be enforced in accordance with sections 46.24 and 46.30 to 46.33.

Sec. 10. Minnesota Statutes 1996, section 51A.361, is amended to read:

51A.361 [RESERVES.]

An association shall maintain reserves in the form of liquid assets, as defined in section 51A.02, subdivision 34, at a level reasonably necessary to meet anticipated withdrawals, commitments, and loan demand. The commissioner of commerce may prescribe the required amount of reserves for any individual association from time to time based upon examination findings or other reports relating to the association that are available to the commissioner. The determination by the commissioner of a required amount of reserves for an association shall not be considered a rule as defined by section 14.02, subdivision 4. Reserves for an individual association as prescribed by the commissioner pursuant to this section shall be enforced in accordance with sections 46.24 and 46.30 to 46.33.


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Sec. 11. Minnesota Statutes 1996, section 52.17, subdivision 2, is amended to read:

Subd. 2. [REQUIRED LIQUIDITY.] Every credit union shall maintain a reserve in the form of liquid assets at a level reasonably necessary to meet anticipated withdrawals, commitments, and loan demand. Reserves must be in cash and balances due from solvent banks or which may be, in whole or in part, in short term obligations guaranteed as to principal and interest by the United States government or in certificates of deposit of a federally insured bank or in a passbook or other account in a federally insured savings association or in balances due from the Minnesota corporate credit union or ICU services corporation or United States central credit union. The commissioner of commerce may prescribe the required amount of reserves for any individual credit union from time to time based upon examination findings or other reports relating to the credit union that are available to the commissioner. The determination by the commissioner of a required amount of reserves for a credit union shall not be considered a rule as defined by section 14.02, subdivision 4. Reserves for an individual credit union as prescribed by the commissioner pursuant to this section shall be enforced in accordance with sections 46.24 and 46.30 to 46.33.

Sec. 12. Minnesota Statutes 1996, section 53.07, subdivision 1, is amended to read:

Subdivision 1. [LIQUIDITY REQUIREMENT.] An industrial loan and thrift company shall maintain reserves in the form of liquid assets at a level reasonably necessary to meet anticipated withdrawals, commitments, and loan demand. Reserves shall be in cash, cash items in process of collection, short term obligations of or demand balances with other insured financial institutions in the United States and its territories, or short term, direct obligations of or guaranteed by the United States government. Obligations must mature within one year to be considered short term. The commissioner may prescribe the required amount of reserves in relation to liabilities for an individual industrial loan and thrift company from time to time based upon examination findings or other reports relating to the industrial loan and thrift company that are available to the commissioner. The determination by the commissioner of a required amount of reserves for an industrial loan and thrift company shall not be considered a rule as defined by section 14.02, subdivision 4. Reserves for an individual industrial loan and thrift company as prescribed by the commissioner pursuant to this section shall be enforced in accordance with sections 46.24 and 46.30 to 46.33.

Sec. 13. Minnesota Statutes 1996, section 60A.13, subdivision 6, is amended to read:

Subd. 6. [COMPANY OR AGENT CANNOT CONTINUE BUSINESS UNLESS STATEMENT IS FILED.] No company shall transact any new business in this state after May 31 in any year unless it shall have previously transmitted its annual statement to the commissioner and filed a copy of its statement with the National Association of Insurance Commissioners. The commissioner may by order annually require that each insurer pay the required fee to the National Association of Insurance Commissioners for the filing of annual statements, but the fee shall not be more than 50 percent greater than the fee set by the National Association of Insurance Commissioners. Failure to file the annual statement with the commissioner or the National Association of Insurance Commissioners is a violation of section 72A.061, subdivision 1. The fee shall be based on the relative premium volume of each insurer. The commissioner's order shall not be subject to chapter 14.

Sec. 14. Minnesota Statutes 1996, section 60K.19, subdivision 6, is amended to read:

Subd. 6. [POWERS OF THE COMMISSIONER.] (a) The commissioner shall make the final determination as to accreditation and assignment of credit hours for courses.

(b) The commissioner shall adopt procedures for reporting compliance with the minimum education requirement. These procedures are not subject to the rulemaking provisions of chapter 14.

(c) The commissioner shall promulgate rules according to chapter 14 to carry out the purposes of this section.

Sec. 15. Minnesota Statutes 1996, section 61B.21, subdivision 1, is amended to read:

Subdivision 1. [FUNCTIONS.] The Minnesota life and health insurance guaranty association shall perform its functions under the plan of operation established and approved under section 61B.25, and shall exercise its powers through a board of directors. The association is not a state agency for purposes of chapter 14, 16A, 16B, or 43A. For purposes of administration and assessment, the association shall establish and maintain two accounts:

(1) the life insurance and annuity account which includes the following subaccounts:


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(i) the life insurance account;

(ii) the annuity account; and

(iii) the unallocated annuity account; and

(2) the health insurance account.

Sec. 16. Minnesota Statutes 1996, section 62J.152, subdivision 4, is amended to read:

Subd. 4. [TECHNOLOGY EVALUATION PROCESS.] (a) The health technology advisory committee shall collect and evaluate studies and research findings on the technologies selected for evaluation from as wide of a range of sources as needed, including, but not limited to: federal agencies or other units of government, international organizations conducting health care technology assessments, health carriers, insurers, manufacturers, professional and trade associations, nonprofit organizations, and academic institutions. The health technology advisory committee may use consultants or experts and solicit testimony or other input as needed to evaluate a specific technology.

(b) When the evaluation process on a specific technology has been completed, the health technology advisory committee shall submit a preliminary report to the health care commission and publish a summary of the preliminary report in the State Register with a notice that written comments may be submitted. The preliminary report must include the results of the technology assessment evaluation, studies and research findings considered in conducting the evaluation, and the health technology advisory committee's summary statement about the evaluation. Any interested persons or organizations may submit to the health technology advisory committee written comments regarding the technology evaluation within 30 days from the date the preliminary report was published in the State Register. The health technology advisory committee's final report on its technology evaluation must be submitted to the health care commission. A summary of written comments received by the health technology advisory committee within the 30-day period must be included in the final report. The health care commission shall review the final report and prepare its comments and recommendations. Before completing its final comments and recommendations, the health care commission shall provide adequate public notice that testimony will be accepted by the health care commission. The health care commission shall then forward the final report, its comments and recommendations, and a summary of the public's comments to the commissioner and information clearinghouse.

(c) The reports of the health technology advisory committee and the comments and recommendations of the health care commission should not eliminate or bar new technology, and are not rules as defined in the administrative procedure act.

Sec. 17. Minnesota Statutes 1996, section 62L.13, subdivision 3, is amended to read:

Subd. 3. [EXEMPTIONS.] The association, its transactions, and all property owned by it are exempt from taxation under the laws of this state or any of its subdivisions, including, but not limited to, income tax, sales tax, use tax, and property tax. The association may seek exemption from payment of all fees and taxes levied by the federal government. Except as otherwise provided in this chapter, the association is not subject to the provisions of chapters 13, 14, 60A, 62A to 62H, and section 471.705. The association is not a public employer and is not subject to the provisions of chapters 179A and 353. The board of directors and health carriers who are members of the association are exempt from sections 325D.49 to 325D.66 in the performance of their duties as directors and members of the association.

Sec. 18. Minnesota Statutes 1996, section 65B.28, subdivision 3, is amended to read:

Subd. 3. [REFRESHER COURSE.] The department of public safety, in consultation with other traffic safety and medical professionals, may establish without rulemaking a refresher course for persons who have completed the original course under subdivision 2. The refresher course shall be no more than four hours, and based on the curriculum established under subdivision 2. The department of public safety shall establish criteria for and approve training agencies or organizations authorized to conduct the refresher course.

Sec. 19. Minnesota Statutes 1996, section 79.34, subdivision 1, is amended to read:

Subdivision 1. [CONDITIONS REQUIRING MEMBERSHIP.] The nonprofit association known as the workers' compensation reinsurance association may be incorporated under chapter 317A with all the powers of a corporation formed under that chapter, except that if the provisions of that chapter are inconsistent with sections 79.34 to 79.40, sections 79.34


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to 79.40 govern. Each insurer as defined by section 79.01, subdivision 2, shall, as a condition of its authority to transact workers' compensation insurance in this state, be a member of the reinsurance association and is bound by the plan of operation of the reinsurance association; provided, that all affiliated insurers within a holding company system as defined in chapter 60D are considered a single entity for purposes of the exercise of all rights and duties of membership in the reinsurance association. Each self-insurer approved under section 176.181 and each political subdivision that self-insures shall, as a condition of its authority to self-insure workers' compensation liability in this state, be a member of the reinsurance association and is bound by its plan of operation; provided that:

(1) all affiliated companies within a holding company system, as determined by the commissioner of labor and industry in a manner consistent with the standards and definitions in chapter 60D, are considered a single entity for purposes of the exercise of all rights and duties of membership in the reinsurance association; and

(2) all group self-insurers granted authority to self-insure pursuant to section 176.181 are considered single entities for purposes of the exercise of all the rights and duties of membership in the reinsurance association. As a condition of its authority to self-insure workers' compensation liability, and for losses incurred after December 31, 1983, the state is a member of the reinsurance association and is bound by its plan of operation. The commissioner of employee relations represents the state in the exercise of all the rights and duties of membership in the reinsurance association. The state treasurer shall pay the premium to the reinsurance association from the state compensation revolving fund upon warrants of the commissioner of employee relations, except that the University of Minnesota shall pay its portion of workers' compensation reinsurance premiums directly to the workers' compensation reinsurance association. For the purposes of this section, "state" means the administrative branch of state government, the legislative branch, the judicial branch, the University of Minnesota, and any other entity whose workers' compensation liability is paid from the state revolving fund. The commissioner of finance may calculate, prorate, and charge a department or agency the portion of premiums paid to the reinsurance association for employees who are paid wholly or in part by federal funds, dedicated funds, or special revenue funds. The reinsurance association is not a state agency. Actions of the reinsurance association and its board of directors and actions of the commissioner of labor and industry with respect to the reinsurance association are not subject to chapters 13, 14, and 15. All property owned by the association is exempt from taxation. The reinsurance association is not obligated to make any payments or pay any assessments to any funds or pools established pursuant to this chapter or chapter 176 or any other law.

Sec. 20. Minnesota Statutes 1996, section 79.34, subdivision 2a, is amended to read:

Subd. 2a. [DEFICIENCY.] If the board determines that a distribution of excess surplus resulted in inadequate funds being available to pay claims that arose during the period upon which that distribution was calculated, the board shall determine the amount of the deficiency. The deficiency shall be made up by imposing an assessment rate against self-insured members and policyholders of insurer members. The board shall notify the commissioner of commerce of the amount of the deficiency and recommend an assessment rate. The commissioner shall order an assessment at a rate and for the time period necessary to eliminate the deficiency. The assessment rate shall be applied to the exposure base of self-insured employers and insured employers. The assessment may not be retroactive and applies only prospectively. The assessment may be spread over a period of time that will cause the least financial hardship to employers. All assessments under this subdivision are payable to the association. The commissioner may issue orders necessary to administer this section. The orders are not rules subject to chapter 14.

Sec. 21. Minnesota Statutes 1996, section 79.362, is amended to read:

79.362 [WORKERS' COMPENSATION REINSURANCE ASSOCIATION EXCESS SURPLUS DISTRIBUTION.]

An order of the commissioner of the department of labor and industry relating to the distribution of excess surplus of the workers' compensation reinsurance association shall be reviewed by the commissioner of commerce. The commissioner of commerce may amend, approve, or reject an order or issue further orders to accomplish the purposes of section 79.361 and Laws 1993, chapter 361, section 2. The commissioner may not change the amount of the distribution ordered by the commissioner of labor and industry without agreement of the commissioner of labor and industry. An order of the commissioner of commerce under this section is not subject to chapter 14.


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Sec. 22. Minnesota Statutes 1996, section 85.045, subdivision 3, is amended to read:

Subd. 3. [AGREEMENTS.] (a) The commissioner shall enter into informal agreements with business and civic groups or individuals for volunteer services to maintain and make improvements to real and personal property in state parks, monuments, historic sites, and trails in accordance with plans devised by the commissioner after consultation with the groups.

(b) The commissioner may erect appropriate signs to recognize and express appreciation to groups and individuals providing volunteer services under the adopt-a-park program.

(c) The commissioner may provide assistance to enhance the comfort and safety of volunteers and to facilitate the implementation and administration of the adopt-a-park program.

(d) This section is not subject to chapter 14.

Sec. 23. Minnesota Statutes 1996, section 97A.085, subdivision 4a, is amended to read:

Subd. 4a. [HEARING REQUIRED.] Before designating a game refuge under this section, the commissioner must hold a public hearing within the county where the majority of the proposed game refuge exists. Notices of the time and place of the hearing must be posted in five conspicuous places within the proposed game refuge at least 15 days before the hearing. A notice of the hearing must be published in a legal newspaper in each county where the area is located at least seven days before the hearing. Designation of a game refuge under this section is not subject to chapter 14.

Sec. 24. Minnesota Statutes 1996, section 116O.05, subdivision 3, is amended to read:

Subd. 3. [RULES.] The corporation is not subject to chapter 14, but must publish in the State Register any guidelines, policies, rules, or eligibility criteria prepared or adopted by the corporation for any of its financial or technology transfer programs.

Sec. 25. Minnesota Statutes 1996, section 171.321, subdivision 2, is amended to read:

Subd. 2. [RULES.] The commissioner of public safety shall prescribe rules governing the physical qualifications of school bus drivers and tests required to obtain a school bus endorsement. The rules must provide that an applicant for a school bus endorsement or renewal is exempt from the physical qualifications and medical examination required to operate a school bus upon providing evidence of being medically examined and certified within the preceding 24 months as physically qualified to operate a commercial motor vehicle, pursuant to Code of Federal Regulations, title 49, part 391, subpart E, or rules of the commissioner of transportation incorporating those federal regulations.

The commissioner of public safety, in conjunction with the commissioner of economic security, shall adopt a training program for Head Start bus drivers. Adoption of this program is not subject to chapter 14. The program must provide for initial classroom and behind-the-wheel training, and annual in-service training. The program must provide training in defensive driving, human relations, emergency and accident procedures, vehicle maintenance, traffic laws, and use of safety equipment. The program must provide that the training will be conducted by the contract operator for a Head Start agency, the Head Start grantee, a licensed driver training school, or by another person or entity approved by both commissioners.

Sec. 26. Minnesota Statutes 1996, section 176.102, subdivision 2, is amended to read:

Subd. 2. [ADMINISTRATORS.] The commissioner shall hire a director of rehabilitation services in the classified service. The commissioner shall monitor and supervise rehabilitation services, including, but not limited to, making determinations regarding the selection and delivery of rehabilitation services and the criteria used to approve qualified rehabilitation consultants and rehabilitation vendors. The commissioner may also make determinations regarding fees for rehabilitation services and shall by rule establish a fee schedule or otherwise limit fees charged by qualified rehabilitation consultants and vendors. The commissioner shall annually review the fees and give notice of any adjustment in the State Register. An annual adjustment is not subject to chapter 14. By March 1, 1993, the commissioner shall report to the legislature on the status of the commission's monitoring of rehabilitation services. The commissioner may hire qualified personnel to assist in the commissioner's duties under this section and may delegate the duties and performance.


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Sec. 27. Minnesota Statutes 1996, section 176A.08, is amended to read:

176A.08 [EXEMPTION FROM AND APPLICABILITY OF CERTAIN LAWS.]

The fund shall not be considered a state agency for any purpose including, but not limited to, chapters 13, 14, 15, 15A, and 43A. However, the fund shall be subject to sections 179A.01 to 179A.25. The insurance operations of the fund are subject to all of the provisions of chapters 60A and 60B. The commissioner of commerce has the same powers with respect to the board as the commissioner has with respect to a private workers' compensation insurer under chapters 60A and 60B. The fund is considered an insurer for the purposes of chapters 60C, 72A, 79, and 176. The fund is subject to the same tax liability as a mutual insurance company in this state pursuant to section 60A.15. As a condition of its authority to transact business in this state the fund shall be a member of the workers' compensation reinsurance association and is bound by its plan of operation.

Sec. 28. Minnesota Statutes 1996, section 240A.02, subdivision 2, is amended to read:

Subd. 2. [MEETINGS.] The commission shall meet at least quarterly and at other times determined by the commission and shall adopt rules, without regard to chapter 14, governing its proceedings.

Sec. 29. Minnesota Statutes 1996, section 256B.431, subdivision 2e, is amended to read:

Subd. 2e. [CONTRACTS FOR SERVICES FOR VENTILATOR DEPENDENT PERSONS.] The commissioner may contract with a nursing facility eligible to receive medical assistance payments to provide services to a ventilator dependent person identified by the commissioner according to criteria developed by the commissioner, including:

(1) nursing facility care has been recommended for the person by a preadmission screening team;

(2) the person has been assessed at case mix classification K;

(3) the person has been hospitalized for at least six months and no longer requires inpatient acute care hospital services; and

(4) the commissioner has determined that necessary services for the person cannot be provided under existing nursing facility rates.

The commissioner may issue a request for proposals to provide services to a ventilator dependent person to nursing facilities eligible to receive medical assistance payments and shall select nursing facilities from among respondents according to criteria developed by the commissioner, including:

(1) the cost-effectiveness and appropriateness of services;

(2) the nursing facility's compliance with federal and state licensing and certification standards; and

(3) the proximity of the nursing facility to a ventilator-dependent person identified by the commissioner who requires nursing facility placement.

The commissioner may negotiate an adjustment to the operating cost payment rate for a nursing facility selected by the commissioner from among respondents to the request for proposals. The negotiated adjustment must reflect only the actual additional cost of meeting the specialized care needs of a ventilator-dependent person identified by the commissioner for whom necessary services cannot be provided under existing nursing facility rates and which are not otherwise covered under Minnesota Rules, parts 9549.0010 to 9549.0080 or 9505.0170 to 9505.0475. The negotiated payment rate must not exceed 200 percent of the highest multiple bedroom payment rate for a Minnesota nursing facility, as initially established by the commissioner for the rate year for case mix classification K. The negotiated adjustment shall not affect the payment rate charged to private paying residents under the provisions of section 256B.48, subdivision 1. The negotiated adjustment paid pursuant to this paragraph is specifically exempt from the definition of "rule" and the rulemaking procedures required by chapter 14 and section 256B.502.


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Sec. 30. Minnesota Statutes 1996, section 325F.665, subdivision 6, is amended to read:

Subd. 6. [ALTERNATIVE DISPUTE SETTLEMENT MECHANISM.] (a) Any manufacturer doing business in this state, entering into franchise agreements for the sale of its motor vehicles in this state, or offering express warranties on its motor vehicles sold or distributed for sale in this state shall operate, or participate in, an informal dispute settlement mechanism located in the state of Minnesota which complies with the provisions of the Code of Federal Regulations, title 16, part 703, and the requirements of this section. The provisions of subdivision 3 concerning refunds or replacement do not apply to a consumer who has not first used this mechanism before commencing a civil action, unless the manufacturer allows a consumer to commence an action without first using this mechanism.

(b) An informal dispute settlement mechanism provided for by this section shall, at the time a request for arbitration is made, provide to the consumer and to each person who will arbitrate the consumer's dispute, information about this section as approved and directed by the attorney general, in consultation with interested parties. The informal dispute settlement mechanism shall permit the parties to present or submit any arguments based on this section and shall not prohibit or discourage the consideration of any such arguments. In developing and approving information about this section as provided herein, the attorney general is not subject to the rulemaking provisions of chapter 14.

(c) If, in an informal dispute settlement mechanism, it is decided that a consumer is entitled to a replacement vehicle or refund under subdivision 3, then any refund or replacement offered by the manufacturer or selected by a consumer shall include and itemize all amounts authorized by subdivision 3. If the amount of excise tax refunded is not separately stated, or if the manufacturer does not apply for a refund of the tax within one year of the return of the motor vehicle, the department of public safety may refund the excise tax, as determined under subdivision 3, paragraph (h), directly to the consumer and lienholder, if any, as their interests appear on the records of the registrar of motor vehicles.

(d) No documents shall be received by any informal dispute settlement mechanism unless those documents have been provided to each of the parties in the dispute at or prior to the mechanism's meeting, with an opportunity for the parties to comment on the documents either in writing or orally. If a consumer is present during the informal dispute settlement mechanism's meeting, the consumer may request postponement of the mechanism's meeting to allow sufficient time to review any documents presented at the time of the meeting which had not been presented to the consumer prior to the meeting.

(e) The informal dispute settlement mechanism shall allow each party to appear and make an oral presentation in the state of Minnesota unless the consumer agrees to submit the dispute for decision on the basis of documents alone or by telephone, or unless the party fails to appear for an oral presentation after reasonable prior written notice. If the consumer agrees to submit the dispute for decision on the basis of documents alone, then manufacturer or dealer representatives may not participate in the discussion or decision of the dispute.

(f) Consumers shall be given an adequate opportunity to contest a manufacturer's assertion that a nonconformity falls within intended specifications for the vehicle by having the basis of the manufacturer's claim appraised by a technical expert selected and paid for by the consumer prior to the informal dispute settlement hearing.

(g) Where there has been a recent attempt by the manufacturer to repair a consumer's vehicle, but no response has yet been received by the informal dispute mechanism from the consumer as to whether the repairs were successfully completed, the parties must be given the opportunity to present any additional information regarding the manufacturer's recent repair attempt before any final decision is rendered by the informal dispute settlement mechanism. This provision shall not prejudice a consumer's rights under this section.

(h) If the manufacturer knows that a technical service bulletin directly applies to the specific mechanical problem being disputed by the consumer, then the manufacturer shall provide the technical service bulletin to the consumer at reasonable cost. The mechanism shall review any such technical service bulletins submitted by either party.

(i) A consumer may be charged a fee to participate in an informal dispute settlement mechanism required by this section, but the fee may not exceed the conciliation court filing fee in the county where the arbitration is conducted.

(j) Any party to the dispute has the right to be represented by an attorney in an informal dispute settlement mechanism.


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(k) The informal dispute settlement mechanism has all the evidence-gathering powers granted an arbitrator under section 572.14.

(l) A decision issued in an informal dispute settlement mechanism required by this section may be in writing and signed.

Sec. 31. Minnesota Statutes 1996, section 346.58, is amended to read:

346.58 [DOGS AND CATS; BEST MANAGEMENT STANDARDS FOR CARE BY DEALERS, COMMERCIAL BREEDERS, AND BROKERS.]

The commissioner of agriculture shall consult with interested persons, including but not limited to persons representing dog and cat dealers, breeders, and brokers, the Minnesota federated humane society, the Minnesota council for dog clubs, the American dog owners association, the board of animal health, the Minnesota purebred dog breeders association, the Minnesota citizens for animal care, the United States Department of Agriculture, and the Minnesota veterinary medical association. The commissioner shall issue an order containing best management standards of care for dogs and cats by dealers, commercial breeders, and brokers. These standards are not subject to chapter 14. The commissioner shall urge dealers, commercial breeders, and brokers to follow the standards issued in the order.

Sec. 32. Minnesota Statutes 1996, section 347.51, subdivision 2a, is amended to read:

Subd. 2a. [WARNING SYMBOL.] If a county issues a certificate of registration to the owner of a dangerous dog pursuant to subdivision 2, the county must provide, for posting on the owner's property, a copy of a warning symbol to inform children that there is a dangerous dog on the property. The design of the warning symbol must be uniform and specified by the commissioner of public safety, after consultation with animal control professionals. The design specification process is exempt from rulemaking under chapter 14 and is exempt from section 14.38. The commissioner shall provide the number of copies of the warning symbol requested by each county and shall charge the county the actual cost of the warning symbols received. The county may charge the registrant a reasonable fee to cover its administrative costs and the cost of the warning symbol.

Sec. 33. [EFFECT OF AMENDMENTS OR REPEALS.]

The exemptions in this article are eliminated because the entity is not subject to Minnesota Statutes, chapter 14, or the agency action is not a rule. The agency or other entity need not comply with chapter 14, in order to take actions affected by the amendments and repeals in this article.

Sec. 34. [REPEALER.]

Minnesota Statutes 1996, sections 469.173, subdivision 2; and 469.308, subdivision 2, are repealed.

Sec. 35. [EFFECTIVE DATE.]

This article is effective June 30, 1997.

ARTICLE 4

EXEMPTIONS RETAINED BUT AMENDED

Section 1. Minnesota Statutes 1996, section 62J.61, is amended to read:

62J.61 [RULEMAKING; IMPLEMENTATION.]

Subdivision 1. [EXEMPTION.] The commissioner of health is exempt from rulemaking chapter 14, including section 14.386, in implementing sections 62J.50 to 62J.54, subdivision 3, and 62J.56 to 62J.59.


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Subd. 2. [PROCEDURE.] (a) The commissioner shall publish proposed rules in the State Register or, if the commissioner determines that publishing the text of the proposed rules would be unduly cumbersome, shall publish notice of the proposed rules that contains a detailed description of the rules along with a statement that a free copy of the entire set of rules is available upon request to the agency.

(b) Interested parties have 30 days to comment on the proposed rules. After the commissioner has considered all comments, the commissioner shall publish the final rules notice in the State Register that the rules have been adopted 30 days before they are to take effect.

(c) If the adopted rules are the same as the proposed rules, the notice shall state that the rules have been adopted as proposed and shall cite the prior publication. If the adopted rules differ from the proposed rules, the portions of the adopted rules which differ from the proposed rules shall be included in the notice of adoption together with a citation to the prior State Register that contained the notice of the proposed rules.

(d) The commissioner may use emergency and permanent rulemaking to implement the remainder of this article.

Subd. 3. [RESTRICTIONS.] The commissioner shall not adopt any rules requiring patients to provide their social security numbers unless and until federal laws are modified to allow or require such action nor shall the commissioner adopt rules which allow medical records, claims, or other treatment or clinical data to be included on the health care identification card, except as specifically provided in this chapter.

Subd. 4. [PATIENT PRIVACY.] The commissioner shall seek comments from the ethics and confidentiality committee of the Minnesota health data institute and the department of administration, public information policy analysis division, before adopting or publishing final rules relating to issues of patient privacy and medical records.

Subd. 5. [BIENNIAL REVIEW OF RULEMAKING PROCEDURES AND RULES.] The commissioner shall biennially seek comments from affected parties about the effectiveness of and continued need for the rulemaking procedures set out in subdivision 2 and about the quality and effectiveness of rules adopted using these procedures. The commissioner shall seek comments by holding a meeting and by publishing a notice in the State Register that contains the date, time, and location of the meeting and a statement that invites oral or written comments. The notice must be published at least 30 days before the meeting date. The commissioner shall write a report summarizing the comments and shall submit the report to the Minnesota health data institute and to the Minnesota administrative uniformity committee by January 1 of every even-numbered year.

Sec. 2. Minnesota Statutes 1996, section 124.648, subdivision 3, is amended to read:

Subd. 3. [PROGRAM GUIDELINES; DUTIES OF THE COMMISSIONER.] (a) The commissioner shall:

(1) encourage all districts to participate in the school milk program for kindergartners;

(2) prepare program guidelines, not subject to chapter 14 until July 1, 1998, which will effectively and efficiently distribute appropriated and donated money to participating districts; and

(3) seek donations and matching funds from appropriate private and public sources.

(b) Program guidelines may provide for disbursement to districts through a mechanism of prepayments or by reimbursement for approved program expenses.

(c) It is suggested that the benefits of the school milk program may reach the largest number of kindergarten students if districts are allowed to submit annual bids stating the per-serving level of support that would be acceptable to the district for their participation in the program. The commissioner would review all bids received and approve bids in sufficient number and value to maximize the provision of milk to kindergarten students consistent with available funds.

Sec. 3. Minnesota Statutes 1996, section 128C.02, subdivision 4, is amended to read:

Subd. 4. [RULES ARE APA EXEMPT.] The rules of the league are exempt from sections 14.02, 14.04 to 14.28, 14.38, 14.44 to 14.45, and 14.57 to 14.62 chapter 14, including section 14.386.


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Sec. 4. [128C.03] [PROCEDURES.]

The league must adopt procedures to ensure public notice of all eligibility rules, and policies that will afford the opportunity for public hearings on proposed eligibility rules. If requested by 100 or more parents or guardians of students, the public hearing must be conducted by an administrative law judge from the office of administrative hearings, by a person hired under contract by the office of administrative hearings, or by an independent hearing officer appointed by the commissioner of children, families, and learning from a list maintained for that purpose. At the conclusion of a hearing requested by 100 or more parents or guardians of students, the person conducting the hearing must write a report evaluating the extent to which the league has shown that the proposed rule is needed and reasonable, and the legality of the proposed rule. The league shall pay for hearings under this section.

Sec. 5. Minnesota Statutes 1996, section 245A.09, subdivision 10, is amended to read:

Subd. 10. [RULEMAKING PROCESS; COMMISSIONER EXEMPTED.] When developing, making, adopting, and issuing interpretive guidelines under the authority granted under subdivision 8, the commissioner is exempt from the rulemaking provisions of chapter 14 until July 1, 1998.

Sec. 6. Minnesota Statutes 1996, section 256B.434, subdivision 12, is amended to read:

Subd. 12. [CONTRACTS ARE VOLUNTARY.] Participation of nursing facilities in the alternative payment demonstration project is voluntary. The terms and procedures governing the alternative payment demonstration project are determined under this section and through negotiations between the commissioner and nursing facilities that have submitted a letter of intent to participate in the alternative demonstration project. For purposes of developing requests for proposals and contract requirements, and negotiating the terms, conditions, and requirements of contracts the commissioner is exempt from the rulemaking requirements in chapter 14 until December 31, 2000.

Sec. 7. [REPORT.]

The world trade center corporation shall report to the legislative coordinating commission, or another joint legislative group established to review administrative rules, by January 15, 1999, on the desirability of continuing the corporation's exemption from Minnesota Statutes, chapter 14.

Sec. 8. [INITIAL REPORT.]

The first report required by Minnesota Statutes, section 62J.61, subdivision 5, is due by January 1, 1998.

Sec. 9. [EFFECTIVE DATE; APPLICATION.]

Sections 2, 5, and 6 are effective June 30, 1997. Section 3 is effective the day following final enactment.

ARTICLE 5

RULEMAKING EXEMPTION PROCEDURES AND OTHER

CHANGES

Section 1. Minnesota Statutes 1996, section 3.305, is amended by adding a subdivision to read:

Subd. 8. [RULE REVIEW.] Upon written request of two or more of its members or five or more members of the legislature, the legislative coordinating commission must review a state agency rule, as defined in section 14.02, subdivision 4. The commission may perform this review by holding one or more commission meetings or by establishing a bicameral group as provided in subdivision 6 to hold these meetings.

Sec. 2. Minnesota Statutes 1996, section 14.03, subdivision 3, is amended to read:

Subd. 3. [RULEMAKING PROCEDURES.] (a) The definition of a rule in section 14.02, subdivision 4, does not include:

(1) rules concerning only the internal management of the agency or other agencies that do not directly affect the rights of or procedures available to the public;


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(2) an application deadline on a form; and the remainder of a form and instructions for use of the form to the extent that they do not impose substantive requirements other than requirements contained in statute or rule;

(3) the curriculum adopted by an agency to implement a statute or rule permitting or mandating minimum educational requirements for persons regulated by an agency, provided the topic areas to be covered by the minimum educational requirements are specified in statute or rule;

(4) procedures for sharing data among government agencies, provided these procedures are consistent with chapter 13 and other law governing data practices.

(b) The definition of a rule in section 14.02, subdivision 4, does not include:

(1) rules of the commissioner of corrections relating to the placement and supervision of inmates serving a supervised release term, the internal management of institutions under the commissioner's control, and rules adopted under section 609.105 governing the inmates of those institutions;

(3) (2) rules relating to weight limitations on the use of highways when the substance of the rules is indicated to the public by means of signs;

(4) (3) opinions of the attorney general;

(5) the systems architecture plan and long-range plan of the state education management information system provided by section 121.931;

(6) (4) the data element dictionary and the annual data acquisition calendar of the department of children, families, and learning to the extent provided by section 121.932;

(7) (5) the occupational safety and health standards provided in section 182.655;

(8) (6) revenue notices and tax information bulletins of the commissioner of revenue;

(9) (7) uniform conveyancing forms adopted by the commissioner of commerce under section 507.09; or

(10) (8) the interpretive guidelines developed by the commissioner of human services to the extent provided in chapter 245A.

Sec. 3. Minnesota Statutes 1996, section 14.03, is amended by adding a subdivision to read:

Subd. 4. [POLICY FOR FUTURE EXCLUSIONS.] The legislature will consider granting further exemptions from the rulemaking requirements of this chapter for rules that are necessary to comply with a requirement in federal law or that are necessary to avoid a denial of funds or services from the federal government that would otherwise be available to the state.

Sec. 4. Minnesota Statutes 1996, section 14.03, is amended by adding a subdivision to read:

Subd. 5. [REVIEW OF EXCLUSIONS.] The governor, the legislative coordinating commission, or a joint legislative group designated by the legislative coordinating commission under section 3.305, subdivision 6, may seek review of an agency determination that a statement of general applicability and future effect made to implement a law is excluded from the definition of a rule by subdivision 3, paragraph (a). Review may be sought under this subdivision by filing a request for review with the chief administrative law judge. Upon filing of a request, the affected agency must file a concise statement with the chief administrative law judge stating why the agency believes its statement of general applicability and future effect made to implement a law is excluded from the definition of a rule. The chief administrative law judge, or an administrative law judge assigned by the chief, shall determine if the agency statement of general applicability and future effect made to implement a law is excluded from the definition of a rule by subdivision 3, paragraph (a). If the chief administrative law judge or the judge assigned by the chief determines that the agency statement of general applicability and future effect made to implement a law is a rule, and is not excluded from the definition of the rule by subdivision 3, paragraph (a), the agency may not implement the statement of general applicability and future effect made to implement a law without following the rulemaking requirements of this chapter.


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Sec. 5. Minnesota Statutes 1996, section 14.386, is amended to read:

14.386 [PROCEDURE FOR ADOPTING EXEMPT RULES; DURATION.]

(a) A rule adopted, amended, or repealed by an agency, under a statute enacted after January 1, 1997, authorizing or requiring rules to be adopted but excluded from the rulemaking provisions of chapter 14 or from the definition of a rule, has the force and effect of law only if:

(1) the revisor of statutes approves the form of the rule by certificate;

(2) the office of administrative hearings approves the rule as to its legality within 14 days after the agency submits it for approval and files two copies of the rule with the revisor's certificate in the office of the secretary of state; and

(3) a copy is published by the agency in the State Register.

A statute enacted after January 1, 1997, authorizing or requiring rules to be adopted but excluded from the rulemaking provisions of chapter 14 or from the definition of a rule does not excuse compliance with this section unless it makes specific reference to this section.

(b) A rule adopted under this section is effective for a period of two years from the date of publication of the rule in the State Register. The authority for the rule expires at the end of this two-year period.

(c) The chief administrative law judge shall adopt rules relating to the rule approval duties imposed by this section and section 14.388, including rules establishing standards for review.

(d) This section does not apply to rules adopted, amended, or repealed under section 14.388.

This section also does not apply to:

(1) rules implementing emergency powers pursuant to sections 12.31 to 12.37;

(2) rules of agencies directly in the legislative or judicial branches;

(3) rules of the regents of the University of Minnesota;

(4) rules of the department of military affairs;

(5) rules of the comprehensive health association provided in section 62E.10;

(6) rules of the tax court provided by section 271.06;

(7) rules concerning only the internal management of the agency or other agencies, and which do not directly affect the rights of or procedure available to the public;

(8) rules of the commissioner of corrections relating to the placement and supervision of inmates serving a supervised release term, the internal management of institutions under the commissioner's control, and rules adopted under section 609.105 governing the inmates of those institutions;

(9) rules relating to weight limitations on the use of highways when the substance of the rules is indicated to the public by means of signs;

(10) opinions of the attorney general;

(11) the systems architecture plan and long-range plan of the state education management information system provided by section 121.931;


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(12) the data element dictionary and the annual data acquisition calendar of the department of children, families, and learning to the extent provided by section 121.932;

(13) the occupational safety and health standards provided in section 182.655;

(14) revenue notices and tax information bulletins of the commissioner of revenue;

(15) uniform conveyancing forms adopted by the commissioner of commerce under section 507.09 any group or rule listed in section 14.03, subdivisions 1 and 3, except as otherwise provided by law;

(16) (2) game and fish rules of the commissioner of natural resources adopted under section 84.027, subdivision 13, or sections 97A.0451 to 97A.0459;

(17) (3) experimental and special management waters designated by the commissioner of natural resources under sections 97C.001 and 97C.005; or

(18) (4) game refuges designated by the commissioner of natural resources under section 97A.085.

(e) If a statute provides that a rule is exempt from chapter 14, and this section does not apply to the rule, the rule has the force of law, unless the context of the statute delegating the rulemaking authority makes clear that the rule does not have force of law.

Sec. 6. [14.389] [EXPEDITED PROCESS.]

Subdivision 1. [APPLICATION.] This section applies when a law requiring or authorizing rules to be adopted states that this section must or may be used to adopt the rules. When a law refers to this section, the process in this section is the only process an agency must follow for its rules to have the force and effect of law. Sections 14.19 and 14.366 apply to rules adopted under this section.

Subd. 2. [NOTICE AND COMMENT.] The agency must publish notice of the proposed rule in the State Register and must mail the notice to persons who have registered with the agency to receive mailed notices. The mailed notice must include either a copy of the proposed rule or a description of the nature and effect of the proposed rule and a statement that a free copy is available from the agency upon request. The notice in the State Register must include the proposed rule or the amended rule in the form required by the revisor under section 14.07, and a citation to the most specific statutory authority for the rule, including authority for the rule to be adopted under the process in this section. The agency must allow 30 days after publication in the State Register for comment on the rule.

Subd. 3. [ADOPTION.] The agency may modify a proposed rule if the modifications do not result in a substantially different rule, as defined in section 14.05, subdivision 2, paragraphs (b) and (c). If the final rule is identical to the rule originally published in the State Register, the agency must publish a notice of adoption in the State Register. If the final rule is different from the rule originally published in the State Register, the agency must publish a copy of the changes in the State Register. The rule is effective upon publication in the State Register.

Subd. 4. [LEGAL REVIEW.] Before publication of the final rule in the State Register, the agency must submit the rule to an administrative law judge in the office of administrative hearings. The administrative law judge shall within 14 days approve or disapprove the rule as to its legality and its form to the extent the form relates to legality.

Subd. 5. [OPTION.] A law authorizing or requiring rules to be adopted under this section may refer specifically to this subdivision. If the law contains a specific reference to this subdivision, as opposed to a general reference to this section:

(1) the notice required in subdivision 2 must include a statement that a public hearing will be held if 100 or more people request a hearing. The request must be in the manner specified in section 14.25; and

(2) if 100 or more people submit a written request for a public hearing, the agency may adopt the rule only after complying with all of the requirements of chapter 14 for rules adopted after a public hearing.


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Sec. 7. Minnesota Statutes 1996, section 14.47, subdivision 1, is amended to read:

Subdivision 1. [PLAN OF PUBLICATION AND SUPPLEMENTATION.] The revisor of statutes shall:

(1) formulate a plan for the compilation of all permanent agency rules and, to the extent practicable, other rules, adopted pursuant to the administrative procedure act or filed pursuant to the provisions of section 14.38, subdivisions 5 to 9 or section 14.386 which were in effect at the time the rules were filed or subdivision 11, including their order, classification, arrangement, form, and indexing, and any appropriate tables, annotations, cross references, citations to applicable statutes, explanatory notes, and other appropriate material to facilitate use of the rules by the public, and for the compilation's composition, printing, binding, and distribution;

(2) publish the compilation of permanent agency rules and, if practicable, other rules, adopted pursuant to the administrative procedure act or filed pursuant to the provisions of section 14.38, subdivisions 5 to 9 or section 14.386 which were in effect at the time the rules were filed or subdivision 11, which shall be called "Minnesota Rules";

(3) periodically either publish a supplement or a new compilation, which includes all rules adopted since the last supplement or compilation was published and removes rules incorporated in prior compilations or supplements which are no longer effective;

(4) include in Minnesota Rules a consolidated list of publications and other documents incorporated by reference into the rules after June 30, 1981, and found conveniently available by the revisor under section 14.07, subdivision 4, indicating where the publications or documents are conveniently available to the public; and

(5) copyright any compilations and or supplements in the name of the state of Minnesota.

Sec. 8. Minnesota Statutes 1996, section 15.50, subdivision 2, is amended to read:

Subd. 2. [CAPITOL AREA PLAN.] (a) The board shall prepare, prescribe, and from time to time, after a public hearing, amend a comprehensive use plan for the capitol area, called the area in this subdivision, which consists of that portion of the city of Saint Paul comprehended within the following boundaries: Beginning at the point of intersection of the center line of the Arch-Pennsylvania freeway and the center line of Marion Street, thence southerly along the center line of Marion Street extended to a point 50 feet south of the south line of Concordia Avenue, thence southeasterly along a line extending 50 feet from the south line of Concordia Avenue to a point 125 feet from the west line of John Ireland Boulevard, thence southwesterly along a line extending 125 feet from the west line of John Ireland Boulevard to the south line of Dayton Avenue, thence northeasterly from the south line of Dayton Avenue to the west line of John Ireland Boulevard, thence northeasterly to the center line of the intersection of Old Kellogg Boulevard and Summit Avenue, thence northeasterly along the center line of Summit Avenue to the center line of the new West Kellogg Boulevard, thence southerly along the east line of the new West Kellogg Boulevard, to the center line of West Seventh Street, thence northeasterly along the center line of West Seventh Street to the center line of the Fifth Street ramp, thence northwesterly along the center line of the Fifth Street ramp to the east line of the right-of-way of Interstate Highway 35-E, thence northeasterly along the east line of the right-of-way of Interstate Highway 35-E to the south line of the right-of-way of Interstate Highway 94, thence easterly along the south line of the right-of-way of Interstate Highway 94 to the west line of St. Peter Street, thence southerly to the south line of Exchange Street, thence easterly along the south line of Exchange Street to the west line of Cedar Street, thence northerly along the west line of Cedar Street to the center line of Tenth Street, thence northeasterly along the center line of Tenth Street to the center line of Minnesota Street, thence northwesterly along the center line of Minnesota Street to the center line of Eleventh Street, thence northeasterly along the center line of Eleventh Street to the center line of Jackson Street, thence northwesterly along the center line of Jackson Street to the center line of the Arch-Pennsylvania freeway extended, thence westerly along the center line of the Arch-Pennsylvania freeway extended and Marion Street to the point of origin. If construction of the labor interpretive center does not commence prior to December 31, 2000, at the site recommended by the board, the boundaries of the capitol area revert to their configuration as of 1992.

Under the comprehensive plan, or a portion of it, the board may regulate, by means of zoning rules adopted under the administrative procedure act, the kind, character, height, and location, of buildings and other structures constructed or used, the size of yards and open spaces, the percentage of lots that may be occupied, and the uses of land, buildings and other structures, within the area. To protect and enhance the dignity, beauty, and architectural integrity of the capitol area, the


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board is further empowered to include in its zoning rules design review procedures and standards with respect to any proposed construction activities in the capitol area significantly affecting the dignity, beauty, and architectural integrity of the area. No person may undertake these construction activities as defined in the board's rules in the capitol area without first submitting construction plans to the board, obtaining a zoning permit from the board, and receiving a written certification from the board specifying that the person has complied with all design review procedures and standards. Violation of the zoning rules is a misdemeanor. The board may, at its option, proceed to abate any violation by injunction. The board and the city of Saint Paul shall cooperate in assuring that the area adjacent to the capitol area is developed in a manner that is in keeping with the purpose of the board and the provisions of the comprehensive plan.

(b) The commissioner of administration shall act as a consultant to the board with regard to the physical structural needs of the state. The commissioner shall make studies and report the results to the board when it requests reports for its planning purpose.

(c) No public building, street, parking lot, or monument, or other construction may be built or altered on any public lands within the area unless the plans for the project conform to the comprehensive use plan as specified in paragraph (d) and to the requirement for competitive plans as specified in paragraph (e). No alteration substantially changing the external appearance of any existing public building approved in the comprehensive plan or the exterior or interior design of any proposed new public building the plans for which were secured by competition under paragraph (e) may be made without the prior consent of the board. The commissioner of administration shall consult with the board regarding internal changes having the effect of substantially altering the architecture of the interior of any proposed building.

(d) The comprehensive plan must show the existing land uses and recommend future uses including: areas for public taking and use; zoning for private land and criteria for development of public land, including building areas, open spaces, monuments, and other memorials; vehicular and pedestrian circulation; utilities systems; vehicular storage; elements of landscape architecture. No substantial alteration or improvement may be made to public lands or buildings in the area without the written approval of the board.

(e) The board shall secure by competitions plans for any new public building. Plans for any comprehensive plan, landscaping scheme, street plan, or property acquisition that may be proposed, or for any proposed alteration of any existing public building, landscaping scheme or street plan may be secured by a similar competition. A competition must be conducted under rules prescribed by the board and may be of any type which meets the competition standards of the American Institute of Architects. Designs selected become the property of the state of Minnesota, and the board may award one or more premiums in each competition and may pay the costs and fees that may be required for its conduct. At the option of the board, plans for projects estimated to cost less than $1,000,000 may be approved without competition provided the plans have been considered by the advisory committee described in paragraph (h). Plans for projects estimated to cost less than $400,000 and for construction of streets need not be considered by the advisory committee if in conformity with the comprehensive plan.

(f) Notwithstanding paragraph (e), an architectural competition is not required for the design of any light rail transit station and alignment within the capitol area. The board and its advisory committee shall select a preliminary design for any transit station in the capitol area. Each stage of any station's design through working drawings must be reviewed by the board's advisory committee and approved by the board to ensure that the station's design is compatible with the comprehensive plan for the capitol area and the board's design criteria. The guideway and track design of any light rail transit alignment within the capitol area must also be reviewed by the board's advisory committee and approved by the board.

(g) Of the amount available for the light rail transit design, adequate funds must be available to the board for design framework studies and review of preliminary plans for light rail transit alignment and stations in the capitol area.

(h) The board may not adopt any plan under paragraph (e) unless it first receives the comments and criticism of an advisory committee of three persons, each of whom is either an architect or a planner, who have been selected and appointed as follows: one by the board of the arts, one by the board, and one by the Minnesota Society of the American Institute of Architects. Members of the committee may not be contestants under paragraph (e). The comments and criticism must be a matter of public information. The committee shall advise the board on all architectural and planning matters. For that purpose, the committee must be kept currently informed concerning, and have access to, all data, including all plans, studies, reports and proposals, relating to the area as the data are developed or in the process of preparation, whether by the


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commissioner of administration, the commissioner of trade and economic development, the metropolitan council, the city of Saint Paul, or by any architect, planner, agency or organization, public or private, retained by the board or not retained and engaged in any work or planning relating to the area, and a copy of any data prepared by any public employee or agency must be filed with the board promptly upon completion.

The board may employ stenographic or technical help that may be reasonable to assist the committee to perform its duties.

When so directed by the board, the committee may serve as, and any member or members of the committee may serve on, the jury or as professional advisor for any architectural competition, and the board shall select the architectural advisor and jurors for any competition with the advice of the committee.

The city of Saint Paul shall advise the board.

(i) The comprehensive plan for the area must be developed and maintained in close cooperation with the commissioner of trade and economic development, the planning department and the council for the city of Saint Paul, and the board of the arts, and no plan or amendment of a plan may be effective without 90 days' notice to the planning department of the city of Saint Paul and the board of the arts and without a public hearing with opportunity for public testimony.

(j) The board and the commissioner of administration, jointly, shall prepare, prescribe, and from time to time revise standards and policies governing the repair, alteration, furnishing, appearance, and cleanliness of the public and ceremonial areas of the state capitol building. The board shall consult with and receive advice from the director of the Minnesota state historical society regarding the historic fidelity of plans for the capitol building. The standards and policies developed under this paragraph are binding upon the commissioner of administration. The provisions of sections 14.02, 14.04 to 14.28, 14.38, and 14.44 to 14.45 chapter 14, including section 14.386, do not apply to this paragraph.

(k) The board in consultation with the commissioner of administration shall prepare and submit to the legislature and the governor no later than October 1 of each even-numbered year a report on the status of implementation of the comprehensive plan together with a program for capital improvements and site development, and the commissioner of administration shall provide the necessary cost estimates for the program. The board shall report any changes to the comprehensive plan adopted by the board to the committee on governmental operations and gambling of the house of representatives and the committee on governmental operations and reform of the senate and upon request shall provide testimony concerning the changes. The board shall also provide testimony to the legislature on proposals for memorials in the capitol area as to their compatibility with the standards, policies, and objectives of the comprehensive plan.

(l) The state shall, by the attorney general upon the recommendation of the board and within appropriations available for that purpose, acquire by gift, purchase, or eminent domain proceedings any real property situated in the area described in this section, and it may also acquire an interest less than a fee simple interest in the property, if it finds that the property is needed for future expansion or beautification of the area.

(m) The board is the successor of the state veterans service building commission, and as such may adopt rules and may reenact the rules adopted by its predecessor under Laws 1945, chapter 315, and amendments to it.

(n) The board shall meet at the call of the chair and at such other times as it may prescribe.

(o) The commissioner of administration shall assign quarters in the state veterans service building to (1) the department of veterans affairs, of which a part that the commissioner of administration and commissioner of veterans affairs may mutually determine must be on the first floor above the ground, and (2) the American Legion, Veterans of Foreign Wars, Disabled American Veterans, Military Order of the Purple Heart, United Spanish War Veterans, and Veterans of World War I, and their auxiliaries, incorporated, or when incorporated, under the laws of the state, and (3) as space becomes available, to other state departments and agencies as the commissioner may deem desirable.

Sec. 9. Minnesota Statutes 1996, section 18.022, subdivision 9, is amended to read:

Subd. 9. [RULES.] The commissioner may adopt rules in accordance with sections 14.02, 14.04 to 14.28, 14.38, 14.44 to 14.45, and 14.57 to 14.62 chapter 14 prescribing control measures to be used to prevent the spread of shade tree diseases and shall include the following: (a) A definition of shade tree, (b) qualifications for inspectors, (c) methods of identifying


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diseased shade trees, (d) procedures for giving reasonable notice of inspection of private real property, (e) measures for the treatment and removal of any shade tree which may contribute to the spread of shade tree disease, and (f) such other matters as shall be determined to be necessary by the commissioner to prevent the spread of shade tree disease and enforce the provisions of this section. The rules of the commissioner shall apply in a county, city or town unless the county, city or town adopts an ordinance or resolution pursuant to subdivision 6 which is determined by the commissioner to be more stringent than the rules of the commissioner. The rules of the commissioner or the more stringent ordinance or resolution of the city, county or town shall apply to all state agencies and special purpose districts which own or control land within any county, city or town exercising the powers granted in this section.

Sec. 10. Minnesota Statutes 1996, section 18.0227, subdivision 3, is amended to read:

Subd. 3. [ADMINISTRATION.] The commissioner shall develop the experimental grasshopper control program and may adopt rules, guidelines, and procedures notwithstanding chapter 14 to implement the program, except the commissioner must comply with section 14.38, subdivisions 7 and 8 14.386, paragraph (a), clauses (1) and (3). Section 14.386, paragraph (b), does not apply to these rules, guidelines, and procedures.

Sec. 11. Minnesota Statutes 1996, section 62E.10, subdivision 8, is amended to read:

Subd. 8. [DEPARTMENT OF STATE EXEMPTION.] The association is exempt from the administrative procedure act but, to the extent authorized by law to adopt rules, the association may use the provisions of section 14.38, subdivisions 5 to 9 14.386, paragraph (a), clauses (1) and (3). Section 14.386, paragraph (b), does not apply to these rules.

Sec. 12. Minnesota Statutes 1996, section 85A.02, subdivision 5b, is amended to read:

Subd. 5b. [EXEMPTIONS.] The board is not subject to sections 3.841 to 3.845, 15.057, 15.061, 16A.1285, and 16A.28; chapter 16B, except for sections 16B.07, 16B.102, 16B.17, 16B.19, 16B.35, and 16B.55; and chapter 14, except section 14.38, subdivision 7, relating to the legal status of rules and the legislative review of rules 14.386, paragraph (a), clauses (1) and (3). Section 14.386, paragraph (b), does not apply to the board's actions.

Sec. 13. Minnesota Statutes 1996, section 85A.05, subdivision 2, is amended to read:

Subd. 2. [ISSUANCE OF BONDS.] Upon request by resolution of the Minnesota zoological board and upon authorization as provided in subdivision 1 the commissioner of finance shall sell and issue Minnesota zoological garden bonds in the aggregate amount requested, upon sealed bids and upon such notice, at such price, in such form and denominations, bearing interest at such rate or rates, maturing in such amounts and on such dates, without option of prepayment or subject to prepayment upon such notice and at such times and prices, payable at such bank or banks within or outside the state, with such provisions for registration, conversion, and exchange and for the issuance of notes in anticipation of the sale or delivery of definitive bonds, and in accordance with such further rules, as the commissioner of finance shall determine, subject to the approval of the attorney general, but not subject to the provisions of sections 14.02, 14.04 to 14.28, 14.38, 14.44 to 14.45, and 14.57 to 14.62 chapter 14, including section 14.386. The bonds shall be executed by the commissioner of finance and attested by the state treasurer under their official seals. The signatures of the officers on the bonds and any appurtenant interest coupons and their seals may be printed, lithographed, engraved, or stamped thereon, except that each bond shall be authenticated by the manual signature on its face of one of the officers or of an officer of a bank designated by them as authenticating agent. The commissioner of finance shall ascertain and certify to the purchasers of the bonds the performance and existence of all acts, conditions, and things necessary to make them valid and binding general obligations of the state of Minnesota, subject to the approval of the attorney general.

Sec. 14. Minnesota Statutes 1996, section 115A.58, subdivision 2, is amended to read:

Subd. 2. [ISSUANCE OF BONDS.] Upon request by the director and upon authorization as provided in subdivision 1, the commissioner of finance shall sell Minnesota state waste management bonds. The bonds shall be in the aggregate amount requested, and sold upon sealed bids upon the notice, at the price in the form and denominations, bearing interest at the rate or rates, maturing in the amounts and on the dates (with or without option of prepayment upon notice and at specified times and prices), payable at a bank or banks within or outside the state (with provisions, if any, for registration, conversion, and exchange and for the issuance of temporary bonds or notes in anticipation of the sale or delivery of definitive bonds), and


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in accordance with further provisions as the commissioner of finance shall determine, subject to the approval of the attorney general, but not subject to the provisions of sections 14.02, 14.04 to 14.28, 14.38, 14.44 to 14.45, and 14.57 to 14.62 chapter 14, including section 14.386. The bonds shall be executed by the commissioner of finance and attested by the state treasurer under their official seals. The signatures of the officers on the bonds and any interest coupons and their seals may be printed, lithographed, engraved, stamped, or otherwise reproduced thereon, except that each bond shall be authenticated by the manual signature on its face of one of the officers or of an authorized representative of a bank designated by the commissioner of finance as registrar or other authenticating agent. The commissioner of finance shall ascertain and certify to the purchasers of the bonds the performance and existence of all acts, conditions, and things necessary to make them valid and binding general obligations of the state of Minnesota, subject to the approval of the attorney general.

Sec. 15. Minnesota Statutes 1996, section 116.17, subdivision 2, is amended to read:

Subd. 2. [ISSUANCE OF BONDS.] Upon request by resolution of the agency and upon authorization as provided in subdivision 1 the commissioner of finance shall sell and issue Minnesota state water pollution control bonds in the aggregate amount requested, upon sealed bids and upon such notice, at such price, in such form and denominations, bearing interest at a rate or rates, maturing in amounts and on dates, with or without option of prepayment upon notice and at specified times and prices, payable at a bank or banks within or outside the state, with provisions, if any, for registration, conversion, and exchange and for the issuance of temporary bonds or notes in anticipation of the sale or delivery of definitive bonds, and in accordance with further provisions, as the commissioner of finance shall determine, subject to the approval of the attorney general, but not subject to the provisions of sections 14.02, 14.04 to 14.28, 14.38, 14.44 to 14.45, and 14.57 to 14.62 chapter 14, including section 14.386. The bonds shall be executed by the commissioner of finance and attested by the state treasurer under their official seals. The signatures of the officers on the bonds and any appurtenant interest coupons and their seals may be printed, lithographed, engraved, stamped, or otherwise reproduced thereon, except that each bond shall be authenticated by the manual signature on its face of one of the officers or of an authorized representative of a bank designated by the commissioner as registrar or other authenticating agent. The commissioner of finance shall ascertain and certify to the purchasers of the bonds the performance and existence of all acts, conditions, and things necessary to make them valid and binding general obligations of the state of Minnesota, subject to the approval of the attorney general.

Sec. 16. Minnesota Statutes 1996, section 116C.06, subdivision 1, is amended to read:

Subdivision 1. The board shall hold public hearings on matters that it determines to be of major environmental impact. The board shall prescribe by rule in conformity to the provisions of sections 14.02, 14.04 to 14.28, 14.38, 14.44 to 14.45, and 14.57 to 14.62 chapter 14, the procedures for the conduct of all hearings and review procedures.

Sec. 17. Minnesota Statutes 1996, section 124.41, subdivision 2, is amended to read:

Subd. 2. [APPLICATION FORMS; RULES.] The commissioner, with the assistance of the attorney general or a designated assistant, shall prepare forms of applications for debt service loans and capital loans and instruments evidencing the loans. The state board shall promulgate rules to facilitate the commissioner's operations in compliance with sections 124.36 to 124.46. The rules shall be subject to the procedure set forth in sections 14.02, 14.04 to 14.28, 14.38, 14.44 to 14.45, and 14.57 to 14.62 chapter 14.

Sec. 18. Minnesota Statutes 1996, section 124.46, subdivision 2, is amended to read:

Subd. 2. Upon receipt of each such certification, subject to authorization as provided in subdivision 4, the commissioner of finance shall from time to time as needed issue and sell state of Minnesota school loan bonds in the aggregate principal amount stated in the commissioner's certificate, for the prompt and full payment of which, with the interest thereon, the full faith, credit, and taxing powers of the state are hereby irrevocably pledged, and shall credit the net proceeds of their sale to the purposes for which they are appropriated by section 124.40, subdivision 1. Such bonds shall be issued and sold at such price, in such manner, in such number of series, at such times, and in such form and denominations, shall bear such dates of issue and of maturity, either without option of prior redemption or subject to prepayment upon such notice and at such times and prices, shall bear interest at such rate or rates and payable at such intervals, shall be payable at such bank or banks within or without the state, with such provisions for registration, conversion, and exchange, and for the issuance of notes in anticipation of the sale and delivery of definitive bonds, and in accordance with such further provisions as the commissioner of finance shall determine subject to the limitations stated in this subdivision (but not subject to the provisions of sections


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14.02, 14.04 to 14.28, 14.38, 14.44 to 14.45, and 14.57 to 14.62 chapter 14, including section 14.386). The maturity date shall in no case be more than 20 years after the date of issue of any bond and the principal amounts and due dates shall conform as near as may be with the commissioner's estimates of dates and amounts of payments to be received on debt service and capital loans. The bonds and any interest coupons appurtenant to them shall be executed by the commissioner of finance and attested by the state treasurer under their official seals. The signatures of these officers and their seals may be printed, lithographed, stamped, engraved, or otherwise reproduced thereon. Each bond shall be authenticated by the manual signature on its face of one of the officers or a person authorized to sign on behalf of a bank or trust company designated by the commissioner to act as registrar or other authenticating agent. The commissioner of finance is authorized and directed to ascertain and certify to purchasers of the bonds the performance and existence of all acts, conditions, and things necessary to make them valid and binding general obligations of the state of Minnesota in accordance with their terms.

Sec. 19. Minnesota Statutes 1996, section 136A.40, is amended to read:

136A.40 [ADMINISTRATION.]

The administration of sections 136A.25 to 136A.42, shall be under the authority independent of other departments and agencies and notwithstanding chapter 16B. The authority shall not be subject to the provisions of sections 14.02, 14.04 to 14.28, 14.38, 14.44 to 14.45, and 14.57 to 14.62 chapter 14, including section 14.386 in connection with the adoption of any rules, rents, fees or charges or with the exercise of any other powers or duties.

Sec. 20. Minnesota Statutes 1996, section 145.925, subdivision 9, is amended to read:

Subd. 9. [RULES; REGIONAL FUNDING.] Notwithstanding any rules to the contrary, including rules proposed in the State Register on April 1, 1991, the commissioner, in allocating grant funds for family planning special projects, shall not limit the total amount of funds that can be allocated to an organization that has submitted applications from more than one region, except that no more than $75,000 may be allocated to any grantee within a single region. For two or more organizations who have submitted a joint application, that limit is $75,000 for each organization. This subdivision does not affect any procedure established in rule for allocating special project money to the different regions. The commissioner shall revise the rules for family planning special project grants so that they conform to the requirements of this subdivision. In adopting these revisions, the commissioner is not subject to the rulemaking provisions of chapter 14, but is bound by section 14.38, subdivision 7 14.386, paragraph (a), clauses (1) and (3). Section 14.386, paragraph (b), does not apply to these rules.

Sec. 21. Minnesota Statutes 1996, section 150A.04, subdivision 5, is amended to read:

Subd. 5. [RULES.] The board may promulgate rules as are necessary to carry out and make effective the provisions and purposes of sections 150A.01 to 150A.12, in accordance with sections 14.02, 14.04 to 14.28, 14.38, 14.44 to 14.45, and 14.57 to 14.62 chapter 14. The rules may specify training and education necessary for administering general anesthesia and intravenous conscious sedation.

Sec. 22. Minnesota Statutes 1996, section 152.02, subdivision 12, is amended to read:

Subd. 12. If any substance is designated, rescheduled, or deleted as a controlled substance under federal law and notice thereof is given to the state board of pharmacy, the state board of pharmacy shall similarly control the substance under this chapter, after the expiration of 30 days from publication in the Federal Register of a final order designating a substance as a controlled substance or rescheduling or deleting a substance. Such order shall be filed pursuant to section 14.38 with the secretary of state. If within that 30-day period, the state board of pharmacy objects to inclusion, rescheduling, or deletion, it shall publish the reasons for objection and afford all interested parties an opportunity to be heard. At the conclusion of the hearing, the state board of pharmacy shall publish its decision, which shall be subject to the provisions of chapter 14.

In exercising the authority granted by this chapter, the state board of pharmacy shall be subject to the provisions of chapter 14. The state board of pharmacy shall provide copies of any proposed rule under this chapter to the advisory council on controlled substances at least 30 days prior to any hearing required by section 14.14, subdivision 1. The state board of pharmacy shall consider the recommendations of the advisory council on controlled substances, which may be made prior to or at the hearing.


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Sec. 23. Minnesota Statutes 1996, section 161.1231, subdivision 5, is amended to read:

Subd. 5. [FEES.] The commissioner shall establish and collect fees for use of the parking facilities. The fees must be established and adjusted in compliance with United States Code, title 23, section 137, and are not subject to chapter 14, including section 14.38, subdivisions 5 to 9 14.386, or 16A.1285.

Sec. 24. Minnesota Statutes 1996, section 167.50, subdivision 2, is amended to read:

Subd. 2. [ISSUANCE AND SALE.] The bonds shall be issued and sold upon sealed bids after published notice. The bonds shall be issued and sold at the times and prices (not less than par and accrued interest), in the form and denominations, bearing interest at the rate or rates, maturing on dates, with or without option of prior redemption upon notice and at specified times and prices, payable at a bank or banks, within or without the state, with provisions for registration, conversion, and exchange and for the issuance of temporary bonds or notes in anticipation of the sale and delivery of definitive bonds, and in accordance with such further provisions, as the commissioner of finance may determine, subject to the approval of the attorney general (but not subject to the provisions of sections 14.02, 14.04 to 14.28, 14.38, 14.44 to 14.45, and 14.57 to 14.62 chapter 14, including 14.386). Each bond shall mature within 20 years from its date of issue and shall be executed by the commissioner of finance and attested by the state treasurer under their official seals. The signatures of these officers on the face of and any interest coupons appurtenant to any bond, and their seals may be printed, lithographed, stamped, engraved, or otherwise reproduced thereon, provided that the signature of one of the officers, or of an authorized representative of a corporate registrar or other agent designated by the commissioner of finance to authenticate the bonds, shall be manually subscribed on the face of each bond.

Sec. 25. Minnesota Statutes 1996, section 169.06, subdivision 1, is amended to read:

Subdivision 1. [UNIFORM SYSTEM.] The commissioner shall adopt a manual and specifications for a uniform system of traffic-control devices consistent with the provisions of this chapter for use upon highways within this state. Such uniform system shall correlate with and so far as possible conform to the system then current as approved by the American Association of State Highway Officials. The manual and specifications must include the design and wording of minimum-maintenance road signs. The adoption of the manual and specifications by the commissioner as herein provided is specifically exempted from the provisions and requirements of sections 14.02, 14.04 to 14.28, 14.38, 14.44 to 14.45, and 14.57 to 14.62 and acts amendatory thereto chapter 14, including section 14.386.

Sec. 26. Minnesota Statutes 1996, section 174.51, subdivision 2, is amended to read:

Subd. 2. [SALE; GENERAL OBLIGATIONS.] The bonds shall be sold upon sealed bids and upon notice, at a price, in form and denominations, bearing interest at a rate or rates, maturing in amounts and on dates, without option of prior redemption or subject to prepayment upon notice and at times and prices, payable at a bank or banks within or outside the state, with or without provisions for registration, conversion, exchange, and issuance of temporary bonds or notes in anticipation of the sale or delivery of definitive bonds, and in accordance with further provisions, as the commissioner of finance shall determine subject to the approval of the attorney general, but not subject to the provisions of sections 14.02, 14.04 to 14.28, 14.38, 14.44 to 14.45, and 14.57 to 14.62 chapter 14, including section 14.386. Each bond shall mature within 20 years from its date of issue and shall be executed by the commissioner of finance and attested by the state treasurer under their official seals. The signatures on the bonds and on any interest coupons and the seals may be printed or otherwise reproduced, except that each bond shall be authenticated by the manual signature on its face of one of the officers or of a person authorized to sign on behalf of a bank designated by the commissioner of finance as registrar or other authenticating agent. The commissioner of finance shall ascertain and certify to the purchasers of the bonds the performance and existence of all acts, conditions, and things necessary to make them valid and binding general obligations of the state of Minnesota, subject to the approval of the attorney general.

Sec. 27. Minnesota Statutes 1996, section 176.136, subdivision 1a, is amended to read:

Subd. 1a. [RELATIVE VALUE FEE SCHEDULE.] The liability of an employer for services included in the medical fee schedule is limited to the maximum fee allowed by the schedule in effect on the date of the medical service, or the provider's actual fee, whichever is lower. The medical fee schedule effective on October 1, 1991, shall remain in effect until the commissioner adopts a new schedule by permanent rule. The commissioner shall adopt permanent rules regulating fees


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allowable for medical, chiropractic, podiatric, surgical, and other health care provider treatment or service, including those provided to hospital outpatients, by implementing a relative value fee schedule to be effective on October 1, 1993. The commissioner may adopt by reference the relative value fee schedule adopted for the federal Medicare program or a relative value fee schedule adopted by other federal or state agencies. The relative value fee schedule shall contain reasonable classifications including, but not limited to, classifications that differentiate among health care provider disciplines. The conversion factors for the original relative value fee schedule must reasonably reflect a 15 percent overall reduction from the medical fee schedule most recently in effect. The reduction need not be applied equally to all treatment or services, but must represent a gross 15 percent reduction.

After permanent rules have been adopted to implement this section, the conversion factors must be adjusted annually on October 1 by no more than the percentage change computed under section 176.645, but without the annual cap provided by that section. The commissioner shall annually give notice in the State Register of the adjusted conversion factors and may also give annual notice of any additions, deletions, or changes to the relative value units or service codes adopted by the federal Medicare program. The relative value units may be statistically adjusted in the same manner as for the original workers' compensation relative value fee schedule. The notices of the adjusted conversion factors and additions, deletions, or changes to the relative value units and service codes shall be in lieu of the requirements of chapter 14. The commissioner shall follow the requirements of section 14.386, paragraph (a). The annual adjustments to the conversion factors and the medical fee schedules adopted pursuant to this section, including all previous fee schedules, are not subject to expiration under section 14.387 14.386, paragraph (b).

Sec. 28. Minnesota Statutes 1996, section 182.655, subdivision 1, is amended to read:

Subdivision 1. Standards and variances shall be proposed, granted, adopted, modified or revoked by the commissioner in accordance with the procedures of this section. The standards and variances are exempt from the administrative procedure act but, to the extent authorized by law to adopt rules, the commissioner may use the provisions of section 14.38, subdivisions 5 to 9 14.386, paragraph (a), clauses (1) and (3). Section 14.386, paragraph (b), does not apply to these rules.

Sec. 29. Minnesota Statutes 1996, section 256B.501, subdivision 10, is amended to read:

Subd. 10. [RULES.] To implement this section, the commissioner shall promulgate rules in accordance with chapter 14. To implement subdivision 3, the commissioner shall promulgate rules in accordance with sections 14.01 to 14.38.

Sec. 30. Minnesota Statutes 1996, section 256B.502, is amended to read:

256B.502 [RULES.]

The commissioners of health and human services shall promulgate rules necessary to implement Laws 1983, chapter 199, except as otherwise indicated in accordance with sections 14.01 to 14.38.

Sec. 31. Minnesota Statutes 1996, section 256B.503, is amended to read:

256B.503 [RULES.]

To implement Laws 1983, chapter 312, article 9, sections 1 to 7, the commissioner shall promulgate rules in accordance with sections 14.01 to 14.38. Rules adopted to implement Laws 1983, chapter 312, article 9, section 5, must (a) be in accord with the provisions of Minnesota Statutes, chapter 256E, (b) set standards for case management which include, encourage and enable flexible administration, (c) require the county boards to develop individualized procedures governing case management activities, (d) consider criteria promulgated under section 256B.092, subdivision 3, and the federal waiver plan, (e) identify cost implications to the state and to county boards, and (f) require the screening teams to make recommendations to the county case manager for development of the individual service plan.

The commissioner shall adopt rules to implement this section by July 1, 1986.


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Sec. 32. Minnesota Statutes 1996, section 401.03, is amended to read:

401.03 [PROMULGATION OF RULES; TECHNICAL ASSISTANCE.]

The commissioner shall, as provided in sections 14.02, 14.04 to 14.28, 14.38, 14.44 to 14.45, and 14.57 to 14.62 chapter 14, promulgate rules for the implementation of sections 401.01 to 401.16, and shall provide consultation and technical assistance to counties to aid them in the development of comprehensive plans.

Sec. 33. Minnesota Statutes 1996, section 458A.03, subdivision 2, is amended to read:

Subd. 2. [RULES.] The commission may prescribe and promulgate rules as it deems necessary or expedient in furtherance of the purposes of sections 458A.01 to 458A.15 upon like procedure and with like force and effect as provided for state agencies by sections 14.02, 14.04 to 14.28, 14.38, 14.44 to 14.45, and 14.57 to 14.62 chapter 14.

Sec. 34. Minnesota Statutes 1996, section 475A.06, subdivision 2, is amended to read:

Subd. 2. [FORMALITIES.] The bonds shall be issued and sold upon sealed bids and upon such notice, at such price, at such times, in such form and denominations, bearing interest at such rate or rates, maturing in such amounts and on such dates, either without option of prepayment or subject to prepayment upon such notice and at such times and prices, payable at such bank or banks within or outside the state, with such provisions for registration, conversion, and exchange and for the issuance of notes in anticipation of the sale or delivery of definitive bonds, and in accordance with such further rules, as the commissioner of finance shall determine, subject to the approval of the attorney general, but not subject to the provisions of sections 14.02, 14.04 to 14.28, 14.38, 14.44 to 14.45, and 14.57 to 14.62 chapter 14, including section 14.386. The bonds shall be executed by the commissioner of finance and attested by the state treasurer under their official seals. The signatures of the officers on the bonds and any appurtenant interest coupons and their seals may be printed, lithographed, engraved, or stamped thereon, except that each bond shall be authenticated by the manual signature on its face of one of the officers or of an officer of a bank designated by them as authenticating agent. The commissioner of finance shall ascertain and certify to the purchasers of the bonds the performance and existence of all acts, conditions, and things necessary to make them valid and binding general obligations of the state of Minnesota, subject to the approval of the attorney general.

Sec. 35. Minnesota Statutes 1996, section 507.09, is amended to read:

507.09 [FORMS APPROVED; AMENDMENTS.]

The several forms of deeds, mortgages, land contracts, assignments, satisfactions, and other conveyancing instruments prepared by the uniform conveyancing blanks commission and filed by the commission with the secretary of state pursuant to Laws 1929, chapter 135, as amended by Laws 1931, chapter 34, are approved and recommended for use in the state. Such forms shall be kept on file with and be preserved by the commissioner of commerce as a public record. The commissioner of commerce may appoint an advisory task force on uniform conveyancing forms to recommend to the commissioner of commerce amendments to existing forms or the adoption of new forms. The task force shall expire, and the terms, compensation, and removal of members shall be as provided in section 15.059. The commissioner of commerce may adopt amended or new forms consistent with the laws of this state by complying with the procedures in section 14.38, subdivision 7, clauses (1), (2), and (3) 14.386, paragraph (a), clauses (1) and (3). Section 14.386, paragraph (b), does not apply to these forms.

Sec. 36. [TRANSITION.]

The repeal of authority to use procedures in Minnesota Statutes, section 14.38, subdivisions 5 to 9 to adopt rules and the repeal of references to other rulemaking authority in specific sections of Minnesota Statutes, chapter 14 does not affect the validity of rules adopted under those procedures before the effective date of this article.

Sec. 37. [REPEALER.]

(a) Minnesota Statutes 1996, section 14.387, is repealed.

(b) Minnesota Statutes 1996, section 14.38, subdivisions 5, 6, 7, 8, and 9, are repealed.

(c) Minnesota Statutes 1996, section 214.06, subdivision 3, is repealed.


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Sec. 38. [EFFECTIVE DATES.]

Sections 1 to 36, and 37, paragraph (b), are effective the day following final enactment.

Section 37, paragraphs (a) and (c), are effective June 30, 1997."

Delete the title and insert:

"A bill for an act relating to state government; rulemaking; enacting, eliminating, continuing, or modifying certain exemptions from the rulemaking requirements of the administrative procedures act; making technical and conforming changes; amending Minnesota Statutes 1996, sections 3.305, by adding a subdivision; 14.03, subdivision 3, and by adding subdivisions; 14.386; 14.47, subdivision 1; 15.50, subdivision 2; 16A.632, subdivision 2; 16B.18, subdivision 3; 16D.11, subdivision 7; 17.03, subdivision 10; 17.54, subdivision 4; 17.56, subdivision 2; 17.57, subdivision 1; 17.64, subdivision 2; 18.022, subdivision 9; 18.0227, subdivision 3; 32.394, subdivision 12; 41B.07; 41C.13; 43A.182; 48.221; 50.175, subdivision 2; 51A.361; 52.17, subdivision 2; 53.07, subdivision 1; 60A.13, subdivision 6; 60K.19, subdivision 6; 61B.21, subdivision 1; 62E.10, subdivision 8; 62J.04, subdivision 1; 62J.152, subdivision 4; 62J.61; 62L.13, subdivision 3; 62N.23; 62N.25, subdivision 6; 65B.28, subdivision 3; 79.34, subdivisions 1 and 2a; 79.362; 84.98, subdivision 2; 85.045, subdivision 3; 85A.02, subdivision 5b; 85A.05, subdivision 2; 88.80, subdivision 2; 97A.085, subdivision 4a; 115A.11, subdivision 2; 115A.20; 115A.58, subdivision 2; 116.17, subdivision 2; 116.44, subdivision 1; 116C.06, subdivision 1; 116O.05, subdivision 3; 123.3514, subdivision 8; 124.41, subdivision 2; 124.46, subdivision 2; 124.648, subdivision 3; 128C.02, subdivision 4; 129C.10, subdivision 3; 136A.40; 145.925, subdivision 9; 147A.26; 148B.66, subdivision 3; 148C.03, subdivision 1; 150A.04, subdivision 5; 152.02, subdivision 12; 153A.15, subdivision 3; 161.1231, subdivision 5; 167.50, subdivision 2; 169.06, subdivision 1; 169.452; 169.99, subdivision 2; 171.321, subdivision 2; 174.51, subdivision 2; 176.102, subdivision 2; 176.136, subdivision 1a; 176A.08; 182.655, subdivision 1; 216D.03, subdivision 2; 240A.02, subdivision 2; 244.13, subdivision 1; 245.494, subdivision 1; 245A.09, subdivision 10; 256.027; 256.9357, subdivision 3; 256.9685, subdivision 1; 256.969, subdivision 3a; 256B.431, subdivision 2e; 256B.434, subdivision 12; 256B.501, subdivision 10; 256B.502; 256B.503; 273.112, subdivision 6a; 299F.093, subdivision 1; 325F.665, subdivision 6; 346.58; 347.51, subdivision 2a; 401.03; 458A.03, subdivision 2; 475A.06, subdivision 2; 507.09; 518.14, subdivision 2; 518.611, subdivision 9; 518.613, subdivision 6; 518.64, subdivision 5; 518.641, subdivision 4; 624.22, subdivision 1; and 624.7151; Laws 1988, chapter 688, article 21, section 7, subdivision 1; and Laws 1991, chapter 265, article 4, section 28; proposing coding for new law in Minnesota Statutes, chapters 14; and 128C; repealing Minnesota Statutes 1996, sections 14.38, subdivisions 5, 6, 7, 8, and 9; 14.387; 126.56, subdivision 8; 214.06, subdivision 3; 469.173, subdivision 2; and 469.308, subdivision 2."

With the recommendation that when so amended the bill pass.

The report was adopted.

Kahn from the Committee on Governmental Operations to which was referred:

H. F. No. 242, A bill for an act relating to motor vehicles; making technical change to clarify that pickup truck with slip in camper may be registered depending upon its weight; restricting telephonic access to certain information related to vehicle registration; allowing vehicle dealers 21 days to send purchase receipt to department of public safety if vehicle not sold; providing for display of fleet vehicle license plates; providing for driver's license agents; amending Minnesota Statutes 1996, sections 168.011, subdivision 25; 168.345, subdivision 1; 168A.11, subdivision 2; 169.79; 171.06, subdivision 4; 373.33; and 373.35, subdivision 1; proposing coding for new law in Minnesota Statutes, chapter 171; repealing Minnesota Statutes 1996, section 171.06, subdivision 4.

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

The report was adopted.


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Kahn from the Committee on Governmental Operations to which was referred:

H. F. No. 257, A bill for an act relating to health; establishing licensing requirements for the provision of ambulance service; relocating provisions related to emergency medical services; establishing registration requirements for first responders; appropriating money; providing penalties; proposing coding for new law as Minnesota Statutes, chapter 144E; repealing Minnesota Statutes 1996, sections 144.801; 144.802; 144.803; 144.804; and 144.806.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. [144.8011] [GENERAL AUTHORITY.]

Subdivision 1. [GRANTS OR GIFTS.] The board may accept grants or gifts of money, property, or services from a person, a public or private entity, or any other source for an emergency medical health purpose within the scope of its statutory authority.

Subd. 2. [CONTRACTS.] The board may enter into contractual agreements with a person or public or private entity for the provision of statutorily prescribed emergency medical services-related activities by the board. The contract shall specify the services to be provided and the amount and method of reimbursement for the contracted services. Funds generated in a contractual agreement made pursuant to this section are appropriated to the board for purposes of providing the services specified in the contracts.

Sec. 2. [144.8012] [AMBULANCE SERVICE LICENSING.]

The board shall not issue a license authorizing the operation of a new ambulance service, provision of a new type or types of ambulance service by an existing service, or an expanded primary service area for an existing service unless the requirements of sections 144.804 and 144.808 are met.

Sec. 3. [144.8013] [AMBULANCE SERVICE APPLICATION PROCEDURE.]

Subdivision 1. [WRITTEN APPLICATION.] Each prospective licensee and each present licensee wishing to offer a new type or types of ambulance service or to expand a primary service area, shall make written application for a license to the board on a form provided by the board.

Subd. 2. [APPLICATION NOTICE.] The board shall promptly send notice of the completed application to each county board, community health board, governing body of a regional emergency medical services system designated under section 144.8093, ambulance service, and municipality in the area in which ambulance service would be provided by the applicant. The board shall publish the notice, at the applicant's expense, in the State Register and in a newspaper in the municipality in which the base of operation is or will be located, or if no newspaper is published in the municipality or if the service is or would be provided in more than one municipality, in a newspaper published at the county seat of the county or counties in which the service would be provided.

Subd. 3. [COMMENTS.] Each municipality, county, community health board, governing body of a regional emergency medical services system, ambulance service, and other person wishing to make recommendations concerning the disposition of the application shall make written recommendations or comments opposing the application to the board within 30 days of the publication of notice of the application in the State Register.

Subd. 4. [CONTESTED CASE EXEMPTION; PROCEDURE.] (a) If no more than five written comments opposing the application have been received by the board under subdivision 3, and the board has determined, after considering the factors listed under subdivision 6, that the proposed service or expansion of primary service area is needed, the applicant shall be exempt from the contested case hearing process under subdivision 5.


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(b) An applicant exempted from a contested case hearing under this subdivision shall furnish additional information, as requested by the board, to support its application. The board shall grant a license to the applicant within 30 days after final submission of requested information to the board, and upon a determination by the board that the applicant is in compliance with the rules adopted by the board.

(c) If an applicant does not comply with the inspection requirements under section 144.808 within one year of the board's approval of its application, the license shall be denied. The one-year time limit applies to any licensing decision made by the board or to any prior licensing decision made by the commissioner of health or an administrative law judge.

(d) If, after considering the factors under subdivision 6, the board determines that the proposed service or expansion of primary service area is not needed, the case shall be treated as a contested case under subdivision 5, paragraphs (c) to (g).

Subd. 5. [CONTESTED CASE; PROCEDURE.] (a) If more than five written comments opposing the application are received by the board as specified under subdivision 3, the board shall give the applicant the option of immediately proceeding to a contested case hearing or trying to resolve the objections within 30 days.

(b) If, after considering the factors under subdivision 6, the board determines that the proposed service or expansion of primary service area is not needed, the board shall give the applicant the option of immediately proceeding to a contested case hearing or using up to 30 days to satisfy the board that the proposed service or expansion of primary service area is needed.

(c) The board shall request the chief administrative law judge appoint an administrative law judge to hold a public hearing in the municipality in which the applicant's base of operation is or will be located:

(1) if more than five opposing comments remain after 30 days;

(2) if, after considering the factors under subdivision 6, the board determines that the proposed service or expansion of primary service area is not needed after 30 days; or

(3) at the applicant's initial request.

(d) If the applicant's base of operation is located outside of Minnesota, the hearing shall be held at a location within the area in which service would be provided in Minnesota. The public hearing shall be conducted as a contested case hearing under chapter 14. The board shall pay the expenses for the hearing location and the administrative law judge.

(e) The board shall provide notice of the public hearing, at the applicant's expense, in the State Register and in the newspaper or newspapers in which the notice was published under subdivision 2 for two successive weeks at least ten days before the date of the hearing.

(f) The administrative law judge shall:

(1) hold a public hearing as specified in paragraphs (c) and (d);

(2) allow any interested person the opportunity to be heard, to be represented by counsel, and to present oral and written evidence at the public hearing; and

(3) provide a transcript of the hearing at the expense of any individual requesting it.

(g) The administrative law judge shall review and comment upon the application and make written recommendations as to its disposition to the board within 90 days of publication of notice of the hearing in the State Register. In making the recommendations, the administrative law judge shall consider and make written comments as to whether the proposed service or expansion in primary service area is needed, based on consideration of the factors specified in subdivision 6.

Subd. 6. [REVIEW CRITERIA.] When reviewing an application for licensure, the board and administrative law judge shall consider the following factors:

(1) the relationship of the proposed service or expansion in primary service area to the current community health plan as approved by the commissioner of health under section 145A.12, subdivision 4;


Journal of the House - 30th Day - Top of Page 1546

(2) the recommendations or comments of the governing bodies of the counties, municipalities, and regional emergency medical services system designated under section 144.8093 in which the service would be provided;

(3) the deleterious effects on the public health from duplication, if any, of ambulance services that would result from granting the license;

(4) the estimated effect of the proposed service or expansion in primary service area on the public health; and

(5) whether any benefit accruing to the public health would outweigh the costs associated with the proposed service or expansion in primary service area. The administrative law judge shall recommend that the board either grant or deny a license or recommend that a modified license be granted. The reasons for the recommendation shall be set forth in detail. The administrative law judge shall make the recommendations and reasons available to any individual requesting them.

Subd. 7. [LICENSING DECISION.] Within 60 days after receiving the administrative law judge's report, the board shall grant or deny a license to the applicant. In granting or denying a license, the board shall consider the administrative law judge's report, the evidence contained in the application, and any hearing record and other applicable evidence. The board's decision shall be based on a consideration of the factors contained in subdivision 6. If the board determines to grant the applicant a license, the applicant must comply with the inspection requirements under section 144.808 within one year of the board's approval of the application or the license will be denied. This one-year time limit applies to any licensing decision by the board or to any prior licensing decision made by the commissioner of health or an administrative law judge.

Subd. 8. [FINAL DECISION.] The board's decision made under subdivision 7 shall be the final administrative decision. Any person aggrieved by the board's decision or action shall be entitled to judicial review in the manner provided in sections 14.63 to 14.69.

Sec. 4. [144.8014] [TRANSFER OF LICENSE OR OWNERSHIP.]

A license, or the ownership of a licensed ambulance service, may be transferred only upon approval of the board, based upon a finding that the proposed licensee or proposed new owner of a licensed ambulance service meets or will meet the requirements of section 144.804. If the proposed transfer would result in an addition of a new base of operations, expansion of the service's primary service area, or provision of a new type or types of ambulance service, the board shall require the prospective licensee or owner to comply with section 144.8013. The board may approve the license or ownership transfer prior to completion of the application process described in section 144.8013 upon obtaining written assurances from the proposed licensee or proposed new owner that no expansion of the service's primary service area or provision of a new type or types of ambulance service will occur during the processing of the application. If requesting a transfer of its base of operations, an applicant must comply with the requirements of section 144.8015.

Sec. 5. [144.8015] [RELOCATION OF BASE OF OPERATIONS.]

To relocate the base of operations to another municipality or township within its primary service area, a licensee must provide written notification to the board prior to relocating. The board shall review the proposal to determine if relocation would adversely affect service coverage within the primary service area. The applicant must furnish any additional information requested by the board to support its proposed transfer. If the board does not approve the relocation proposal, the licensee must comply with the application requirements for a new license under section 144.8013.

Sec. 6. [144.8016] [FIRST RESPONDER REGISTRATION.]

Subdivision 1. [TRAINING PROGRAMS.] Curriculum for initial and refresher training programs must meet the current standards of the United States Department of Transportation first responder curriculum or its equivalent as determined by the board.

Subd. 2. [REGISTRATION.] The board shall register the following persons as first responders:

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

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


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Subd. 3. [RENEWAL.] (a) The board may renew the registration of a first responder who:

(1) successfully completes a board-approved refresher course; and

(2) submits a completed renewal application to the board before the registration expiration date.

(b) The board may renew the lapsed registration of a first responder who:

(1) successfully completes a board-approved refresher course; and

(2) submits a completed renewal application to the board within 12 months after the registration expiration date.

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

Sec. 7. [144.8017] [DISCIPLINARY ACTION.]

Subdivision 1. [SUSPENSION; REVOCATION; NONRENEWAL.] The board may initiate a contested case hearing upon reasonable notice to suspend, revoke, refuse to renew, or place conditions on the license of a licensee upon finding that the licensee has violated a provision of sections 144.8012 to 144.808 or has ceased to provide the service for which the licensee is licensed. The board may initiate a contested case hearing upon reasonable notice to suspend, revoke, refuse to renew, or place conditions on the credential of a person credentialed by the board upon finding that the person credentialed by the board has violated sections 144.8012 to 144.808. The board may also initiate a contested case hearing upon reasonable notice to suspend, revoke, refuse to renew, or place conditions on a training program approved by the board upon finding that the training program has violated sections 144.8012 to 144.808.

Subd. 2. [TEMPORARY SUSPENSION.] (a) In addition to any other remedy provided by law, the board may temporarily suspend the license of a licensee, credential of a person, or approval of a training program after conducting a preliminary inquiry to determine if the board believes that the licensee, person, or training program has violated a statute that the board is empowered to enforce and that the continued provision of service by the licensee, person, or training program would create an imminent risk to public health or harm to others.

(b) The order prohibiting the licensee, person credentialed by the board, or training program approved by the board from providing ambulance service, medical care, or training shall give notice of the right to a hearing pursuant to this subdivision and shall state the reasons for the entry of the order.

(c) Service of the order is effective when the order is served on the licensee, person credentialed by the board, or representative of the training program personally or by certified mail, which is complete upon receipt, refusal, or return for nondelivery to the most recent address provided to the board for the licensee, person, or training program.

(d) At the time the board issues a temporary suspension order, the board shall schedule a hearing to be held before a group of its members designated by the board which shall begin no later than 60 days after issuance of the temporary suspension order or within 15 working days of the date of the board's receipt of a request for hearing by a licensee, person credentialed by the board, or training program approved by the board on the sole issue of whether there is a reasonable basis to continue, modify, or lift the temporary suspension. This hearing is not subject to chapter 14. Evidence presented by the board, licensee, person credentialed by the board, or training program approved by the board must be in the form of an affidavit. The licensee, the person credentialed by the board, a representative of the training program, or a counsel of record may appear for oral argument.

(e) Within five working days of the hearing, the board shall issue its order and, if the suspension is continued, schedule a contested case hearing within 30 days of the issuance of the order. The administrative law judge shall issue a report and recommendation within 30 days after the closing of the contested case hearing record. The board shall issue a final order within 30 days after receipt of the administrative law judge's report.


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Subd. 3. [COOPERATION DURING INVESTIGATION.] A licensee, person credentialed by the board, training program approved by the board, or agent of one who is the subject of an investigation or who is questioned in connection with an investigation by or on behalf of the board shall cooperate fully with the investigation. Cooperation includes responding fully and promptly to any question raised by or on behalf of the board relating to the subject of the investigation, executing all releases requested by the board, providing copies of ambulance service records, as reasonably requested by the board to assist it in its investigation, and appearing at conferences or hearings scheduled by the board. The board shall pay reasonable costs for copies requested.

Subd. 4. [INJUNCTIVE RELIEF.] In addition to any other remedy provided by law, the board may bring an action for injunctive relief in the district court in Hennepin county or, at the board's discretion, in the district court in the county in which a violation of any statute or order that the board is empowered to enforce or issue, has occurred, to enjoin the violation.

Subd. 5. [SUBPOENA POWER.] The board may, as part of an investigation to determine whether a serious public health threat exists, issue subpoenas to require the attendance and testimony of witnesses and production of books, records, correspondence, and other information relevant to any matter involved in the investigation. The board or the board's designee may administer oaths to witnesses or take their affirmation. The subpoenas may be served upon any person named therein anywhere in the state by any person authorized to serve subpoenas or other processes in civil actions of the district courts. If a person to whom a subpoena is issued does not comply with the subpoena, the board may apply to the district court in any district and the court shall order the person to comply with the subpoena. Failure to obey the order of the court may be punished by the court as contempt of the court. No person may be compelled to disclose privileged information as described in section 595.02, subdivision 1. All information pertaining to individual medical records obtained under this section shall be considered health data under section 13.38. All other information is considered public data unless otherwise protected under the Minnesota data practices act or other specific law. The fees for the service of a subpoena must be paid in the same manner as prescribed by law for service of process used out of a district court. Subpoenaed witnesses must receive the same fees and mileage as in civil actions.

Sec. 8. [REPEALER.]

Minnesota Statutes 1996, section 144.802, is repealed."

Delete the title and insert:

"A bill for an act relating to health; establishing licensing requirements for the provision of ambulance service; establishing registration requirements for first responders; proposing coding for new law as Minnesota Statutes, chapter 144; repealing Minnesota Statutes 1996, section 144.802."

With the recommendation that when so amended the bill pass.

The report was adopted.

Kahn from the Committee on Governmental Operations to which was referred:

H. F. No. 297, A bill for an act relating to the military; changing the tuition and textbook reimbursement grant program; amending Minnesota Statutes 1996, section 192.501, subdivision 2.

Reported the same back with the following amendments:

Page 2, line 19, after "that" insert "Minnesota" and after the comma, insert "or if that public institution is outside the state of Minnesota, for the cost of a comparable program at the University of Minnesota,"

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

The report was adopted.


Journal of the House - 30th Day - Top of Page 1549

Kahn from the Committee on Governmental Operations to which was referred:

H. F. No. 458, A bill for an act relating to transportation; preserving exempt rules of department of transportation; clarifying that specific service signs may be placed at certain intersections of trunk highways; defining residential roadway; defining daytime and nighttime; correcting obsolete reference; changing deadline requirement for noise barriers on trunk highway No. 280 project; amending Minnesota Statutes 1996, sections 14.387; 160.292, subdivision 5; 169.01, subdivision 81, and by adding subdivisions; 169.14, subdivision 5d; and 174.51, subdivision 2; Laws 1994, chapter 635, article 1, section 35.

Reported the same back with the following amendments:

Pages 1 to 3, delete section 1

Pages 4 to 6, delete sections 7 and 8 and insert:

"Sec. 6. [REPEALER.]

Minnesota Rules, parts 8840.0100; 8840.0200; 8840.0300; 8840.0400; 8840.0500; 8840.0600; 8840.0700; 8840.0800; 8840.0900; 8840.1000; 8840.1100; 8840.1200; and 8840.1300, are repealed."

Page 6, line 14, delete "8" and insert "6"

Renumber the sections in sequence

Amend the title as follows:

Page 1, lines 2 and 3, delete "preserving exempt rules of department of transportation;"

Page 1, line 7, delete everything after the semicolon

Page 1, line 8, delete everything before "; amending" and insert "abolishing rules governing individual eligibility for special transportation services"

Page 1, line 9, delete "14.387;"

Page 1, line 11, before "169.14" insert "and" and delete "and 174.51,"

Page 1, delete line 12

Page 1, line 13, delete "section 35" and insert "repealing Minnesota Rules, parts 8840.0100; 8840.0200; 8840.0300; 8840.0400; 8840.0500; 8840.0600; 8840.0700; 8840.0800; 8840.0900; 8840.1000; 8840.1100; 8840.1200; and 8840.1300"

With the recommendation that when so amended the bill pass.

The report was adopted.

Kahn from the Committee on Governmental Operations to which was referred:

H. F. No. 653, A bill for an act relating to insurance; health; requiring coverage for diabetes outpatient self-management training and education; amending Minnesota Statutes 1996, section 62A.45.

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

The report was adopted.


Journal of the House - 30th Day - Top of Page 1550

Kahn from the Committee on Governmental Operations to which was referred:

H. F. No. 707, A bill for an act relating to the environment; modifying requirements relating to toxics in products; appropriating money; amending Minnesota Statutes 1996, section 115A.9651.

Reported the same back with the following amendments:

Page 6, line 7, delete "October 1, 2005" and insert "June 30, 2003"

Page 7, line 10, delete "July 1, 2005" and insert "June 30, 2003"

Page 7, line 19, delete "2006" and insert "2003"

Page 9, line 12, delete "July 1, 2005" and insert "June 30, 2003"

Page 10, line 11, delete "2005" and insert "2002"

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.

Kahn from the Committee on Governmental Operations to which was referred:

H. F. No. 864, A bill for an act relating to professions; modifying provisions relating to the board of social work; providing civil penalties; amending Minnesota Statutes 1996, sections 13.99, subdivision 50; 148B.01, subdivisions 4 and 7; 148B.03; 148B.04, subdivisions 2, 3, and 4; 148B.06, subdivision 3; 148B.07; 148B.08, subdivision 2; 148B.18, subdivisions 4, 5, 11, and by adding subdivisions; 148B.19, subdivisions 1, 2, and 4; 148B.20, subdivision 1, and by adding a subdivision; 148B.21, subdivisions 3, 4, 5, 6, 7, and by adding a subdivision; 148B.215; 148B.22, by adding a subdivision; 148B.26, subdivision 1, and by adding a subdivision; 148B.27, subdivisions 1 and 2; and 148B.28, subdivisions 1 and 4; proposing coding for new law in Minnesota Statutes, chapter 148B; repealing Minnesota Statutes 1996, sections 148B.01, subdivision 3; 148B.18, subdivisions 6 and 7; 148B.19, subdivision 3; and 148B.23.

Reported the same back with the following amendments:

Page 11, line 35, reinstate the stricken "and"

Page 12, line 5, delete "; and"

Page 12, delete lines 6 and 7

Page 12, line 8, delete everything before the period

Page 12, line 22, reinstate the stricken "and"

Page 12, line 28, delete "; and"

Page 12, delete lines 29 and 30

Page 12, line 31, delete everything before the period


Journal of the House - 30th Day - Top of Page 1551

Page 13, line 12, reinstate the stricken "and"

Page 13, line 18, delete "; and"

Page 13, delete lines 19 and 20

Page 13, line 21, delete everything before the period

Page 14, line 9, reinstate the stricken "and"

Page 14, line 15, delete "; and"

Page 14, delete lines 16 and 17

Page 14, line 18, delete everything before the period

With the recommendation that when so amended the bill pass.

The report was adopted.

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

H. F. No. 970, A bill for an act relating to occupations; removing the sunset relating to state licensing of Minneapolis building contractors; amending Minnesota Statutes 1996, section 326.991, subdivision 1.

Reported the same back with the following amendments:

Page 1, line 14, reinstate the stricken "This subdivision expires March 31," and after the stricken "2000" insert "2005" and reinstate the stricken period

Amend the title as follows:

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

With the recommendation that when so amended the bill pass.

The report was adopted.

Jefferson from the Committee on Labor-Management Relations to which was referred:

H. F. No. 1078, A bill for an act relating to public employment; providing rights and procedures for certain public employees of local government units who are displaced as a result of a transfer of the provision of services from one local government unit to another local government unit; proposing coding for new law in Minnesota Statutes, chapter 465.

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

The report was adopted.


Journal of the House - 30th Day - Top of Page 1552

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

H. F. No. 1150, A bill for an act relating to crime victims; authorizing testing for HIV or hepatitis B under certain circumstances; permitting the sale of six or fewer unused hypodermic needles or syringes without a prescription; appropriating money; amending Minnesota Statutes 1996, sections 144.761, subdivisions 5 and 7; 144.762, subdivision 2, and by adding a subdivision; 144.765; 144.767, subdivision 1; 151.40; 152.01, subdivision 18; and 611A.19, subdivision 1, and by adding a subdivision.

Reported the same back with the following amendments:

Page 1, lines 19 to 21, delete the new language

Page 2, line 2, delete "and"

Page 2, delete lines 3 to 12 and insert:

"(5) correctional guards, including security guards at the Minnesota security hospital, employed by the state or a local unit of government who experience employed in state and local correctional facilities and other employees of the state department of corrections, if the guard or employee experiences a significant exposure to an inmate who is transported to a facility for emergency medical care in the performance of their duties; and

(6) employees at the Minnesota security hospital and the Minnesota sexual psychopathic treatment center who are employed by the state or a local unit of government and who experience a significant exposure in the performance of their duties; and

(7) other persons who render emergency care or assistance at the scene of an emergency, or while an injured person is being transported to receive medical care, and who would qualify for immunity from liability under the good samaritan law, section 604A.01."

Page 3, line 26, delete "AND CORRECTIONAL"

Page 3, line 27, delete "GUARDS" and delete "and correctional guards"

Page 4, line 1, after "patient" insert ", whether or not immediately available,"

Page 4, lines 18 to 21, delete the new language

Page 4, line 23, before the period, insert "and that information collected through the blood testing process cannot be used as evidence in any criminal proceedings"

Page 6, line 12, delete "shall" and insert "may"

Pages 6 to 8, delete sections 9 and 10

Page 8, line 11, delete "CORRECTIONS" and insert "PUBLIC SAFETY"

Page 8, line 15, delete "public safety" and insert "corrections"

Page 8, lines 16 and 17, delete "correctional employees,"

Page 8, delete lines 20 to 23 and insert "Minnesota Statutes, section 144.761. A portion of this appropriation shall be awarded as grants to professional employers of emergency medical services personnel as defined in Minnesota Statutes, section 144.761, subdivision 5, clause (2), to demonstrate effective education and training services and procedures for implementing the protocol described in section 4."


Journal of the House - 30th Day - Top of Page 1553

Page 8, delete line 34 and insert "demonstrate effective education and training services and procedures for linking victim support services, HIV counseling and testing, and early intervention treatment."

Page 9, line 12, delete "Sections 9 and 10 are effective January 1, 1998."

Renumber the sections in sequence

Amend the title as follows:

Page 1, line 9, after the first semicolon, insert "and" and delete everything after "18"

Page 1, line 10, delete everything before the period

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

The report was adopted.

Kahn from the Committee on Governmental Operations to which was referred:

H. F. No. 1162, A bill for an act relating to state employment; making changes of a technical and housekeeping nature; amending Minnesota Statutes 1996, sections 43A.01, subdivision 2; 43A.02, subdivisions 1, 14, 20, 30, and 37; 43A.04, subdivisions 1, 2, 3, and 9; 43A.05, subdivisions 1 and 3; 43A.08, subdivisions 1 and 1a; 43A.13, subdivision 7; 43A.27, subdivision 1; 43A.30, subdivision 1; and 43A.36, subdivisions 1 and 2.

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

The report was adopted.

Kahn from the Committee on Governmental Operations to which was referred:

H. F. No. 1299, A bill for an act relating to utilities; reorganizing legislative electric energy task force; requiring comprehensive study, findings, and legislative recommendations and proposals regarding electric energy restructuring and regulation; amending Minnesota Statutes 1996, section 216C.051, by adding subdivisions; repealing Minnesota Statutes 1996, section 216C.051, subdivisions 1, 2, 3, 4, 5, and 6.

Reported the same back with the following amendments:

Page 1, after line 11, insert:

"Section 1. Minnesota Statutes 1996, section 216B.16, subdivision 10, is amended to read:

Subd. 10. [INTERVENOR PAYMENT.] (a) The commission may order a utility to pay all or a portion of a party's intervention costs not to exceed $20,000 per intervenor in any proceeding the following proceedings related to gas or electric utilities or service: (1) proceedings related to rates under this section; and (2) transmission line certificate of need proceedings under section 216B.243, including a proceeding that is referred to the office of administrative hearings, when the commission finds that: (i) the intervenor has materially assisted the commission's deliberation and; (ii) the intervenor has insufficient financial resources to afford the costs of intervention.; and (iii) the intervenor is a customer or represents a group that includes customers of the utility and has substantial interests that may be affected by the outcome of the proceeding. The authority of the commission to order a utility to pay intervenor costs in transmission line certificate of need proceedings terminates July 1, 2002.


Journal of the House - 30th Day - Top of Page 1554

(b) For purposes of this section, "materially assisted" means that the commission must find that the intervenor's participation and presentation in the proceeding was useful and seriously considered, or otherwise substantially contributed to the commission's deliberations in the proceeding, following consideration by the commission of the factors listed in Minnesota Rules, part 7831.0800. "Materially assisted" does not mean that the commission must have made a final determination in favor of the intervenor on any issue in which the intervenor participated in the proceeding and presented arguments on. Nothing in this section shall be construed to affect the standards the commission applies in granting intervenor status pursuant to Minnesota Rules, chapter 7829, or intervenor compensation in commission proceedings pursuant to Minnesota Rules, chapter 7831."

Page 3, after line 30, insert:

"(g) The task force expires June 30, 2001."

Pages 3 and 4, delete section 4

Renumber the sections in sequence

Amend the title as follows:

Page 1, line 2, after the semicolon, insert "allowing compensation for intervention in power transmission line certificate of need proceedings;"

Page 1, line 6, delete "section" and insert "sections 216B.16, subdivision 10; and"

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

The report was adopted.

Kahn from the Committee on Governmental Operations to which was referred:

H. F. No. 1326, A bill for an act relating to retirement; economic interest statement filings by public pension plan fiduciaries; providing a penalty for a failure to file; amending Minnesota Statutes 1996, section 356A.06, subdivision 4.

Reported the same back with the following amendments:

Page 2, line 22, after the first "the" insert "pension plan, the" and after "finance" insert a comma

Page 2, line 23, delete "the status of these" and insert "any unfiled"

Page 2, lines 24 and 32, delete "January" and insert "March"

With the recommendation that when so amended the bill pass.

The report was adopted.

Jefferson from the Committee on Labor-Management Relations to which was referred:

H. F. No. 1382, A bill for an act relating to boilers; modifying show boiler and engine provisions; amending Minnesota Statutes 1996, section 183.411, subdivisions 1, 2, and 3.

Reported the same back with the following amendments:

Page 1, line 9, strike "section" and insert "chapter, the terms" and after the second quotation mark insert "and "hobby boiler"" and strike "means" and insert "are synonymous and mean"


Journal of the House - 30th Day - Top of Page 1555

Page 1, line 12, after "agricultural" insert ", transportation,"

Page 3, line 7, after "repairs" insert "and alterations"

Page 3, line 8, delete "183.60, subdivision 2" and insert "183.466"

Page 3, line 29, strike ", grade A"

Page 3, line 30, before "engineer" insert "or higher class"

Page 3, line 31, before "engineer" insert "(hobby)"

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

The report was adopted.

Kahn from the Committee on Governmental Operations to which was referred:

H. F. No. 1392, A bill for an act relating to property taxation; including payment-in-lieu-of-taxes tax forfeiture lands in the abstract of assessment of exempt real property; including payment-in-lieu-of-taxes tax forfeiture lands in the allocation of fire state aid; amending Minnesota Statutes 1996, sections 69.021, subdivision 7; and 273.18

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

The report was adopted.

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

H. F. No. 1441, A bill for an act relating to health insurance; limiting the growth limits; limiting loss ratios; repealing the health care commission; modifying the regional coordinating boards; modifying the health technology advisory committee; expanding the eligibility of the MinnesotaCare program; modifying the enforcement mechanisms for the provider tax pass-through; modifying mandatory Medicare assignment; amending Minnesota Statutes 1996, sections 62A.021, subdivision 1; 62A.61; 62A.65, subdivision 3; 62J.04, subdivisions 1 and 9; 62J.041; 62J.07, subdivisions 1 and 3; 62J.09, subdivision 1; 62J.15, subdivision 1; 62J.152, subdivisions 1, 2, 4, and 5; 62J.17, subdivision 6a; 62J.22; 62J.25; 62J.2914, subdivision 1; 62J.2915; 62J.2916, subdivision 1; 62J.2917, subdivision 2; 62J.2921, subdivision 2; 62J.451, subdivision 6b; 62L.02, subdivision 26; 62L.08, subdivision 8; 62N.25, subdivision 5; 62Q.03, subdivision 5a; 62Q.33, subdivision 2; 256.9354, subdivision 5; 256.9355, by adding a subdivision; and 295.582; repealing Minnesota Statutes 1996, sections 62J.03, subdivision 3; 62J.042; 62J.05; 62J.051; 62J.06; 62J.09, subdivision 3a; 62N.02, subdivision 3; 62Q.165, subdivision 3; 62Q.23; 62Q.25; 62Q.29; and 62Q.41; Laws 1993, chapter 247, article 4, section 8; Laws 1994, chapter 625, article 5, section 5, subdivision 1, as amended; Laws 1995, chapter 96, section 2; and Laws 1995, First Special Session chapter 3, article 13, section 2.

Reported the same back with the following amendments:

Page 2, lines 22 to 25, delete the new language

Page 2, line 26, delete "1997" and insert "1999"

Page 2, line 27, strike "2000" and insert "2002"

Page 2, lines 29 to 31, delete the new language


Journal of the House - 30th Day - Top of Page 1556

Page 2, line 32, delete "1997" and insert "1999"

Page 2, line 33, strike "2000" and insert "2002"

Page 2, lines 34 and 35, delete the new language and reinstate the stricken language

Page 7, lines 30 to 32, delete the new language

Page 11, line 32, strike "(a)"

Page 12, lines 4 to 36, delete the new language and strike the old language

Page 13, strike lines 1 to 6

Page 14, lines 3 to 36, delete the new language and strike the old language

Page 15, lines 1 to 36, delete the new language and strike the old language

Page 16, strike lines 1 to 6

Page 16, before line 7, insert:

"Sec. 7. Minnesota Statutes 1996, section 62J.06, is amended to read:

62J.06 [IMMUNITY FROM LIABILITY.]

No member of the Minnesota health care commission established under section 62J.05, regional coordinating boards established under section 62J.09, or the health technology advisory committee established under section 62J.15, shall be held civilly or criminally liable for an act or omission by that person if the act or omission was in good faith and within the scope of the member's responsibilities under this chapter."

Page 31, delete section 24

Page 33, lines 18 to 20, delete the new language

Page 36, after line 10, insert:

"Sec. 29. [62Q.65] [ACCESS TO PROVIDER DISCOUNTS.]

Subdivision 1. [REQUIREMENT.] A high deductible health plan must, when used in connection with a medical savings account, provide the enrollee access to any discounted provider fees for services covered by the high deductible health plan, regardless of whether the enrollee has satisfied the deductible for the high deductible health plan.

Subd. 2. [DEFINITIONS.] For purposes of this section, the following terms have the meanings given:

(1) "high deductible health plan" has the meaning given under the federal Internal Revenue Code, section 220(c)(2);

(2) "medical savings account" has the meaning given under the federal Internal Revenue Code, section 220(d)(1); and

(3) "discounted provider fees" means fees contained in a provider agreement entered into by the issuer of the high deductible health plan, or an affiliate of the issuer, for use in connection with the high deductible health plan."

Page 37, after line 25, insert:

"Sec. 32. Minnesota Statutes 1996, section 256.9357, subdivision 1, is amended to read:

Subdivision 1. [GENERAL REQUIREMENTS.] Families and individuals who enroll on or after October 1, 1992, are eligible for subsidized premium payments based on a sliding scale under section 256.9358 only if the family or individual meets the requirements in subdivisions 2 and 3. Children already enrolled in the children's health plan as of


Journal of the House - 30th Day - Top of Page 1557

September 30, 1992, eligible under section 256.9354, subdivision 1, paragraph (a), children who enroll in the MinnesotaCare program after September 30, 1992, pursuant to Laws 1992, chapter 549, article 4, section 17, and children who enroll under section 256.9354, subdivision 4a, are eligible for subsidized premium payments without meeting these requirements, as long as they maintain continuous coverage in the MinnesotaCare plan or medical assistance.

Families and individuals who initially enrolled in MinnesotaCare under section 256.9354 or 256.9366, and whose income increases above the limits established in section sections 256.9358 and 256.9366, may continue enrollment and pay the full cost of coverage are no longer eligible for the program and shall be disenrolled by the commissioner. MinnesotaCare coverage terminates the last day of the calendar month following the month in which the department determines that the income of a family or individual, determined over a four-month period as required by section 256.9358, exceeds program income limits."

Page 39, line 20, after the first semicolon insert "62J.041, subdivision 7;" and delete "62J.06;"

Page 39, line 21, delete "62Q.23;"

Page 39, after line 28, insert:

"Sec. 35. [EFFECTIVE DATE.]

Section 29 is effective January 1, 1998, and applies to high deductible health plans issued or renewed on or after that date."

Renumber the sections in sequence

Amend the title as follows:

Page 1, line 6, delete "expanding" and insert "modifying"

Page 1, line 8, after the semicolon, insert "providing enrollee access to discounted provider fees under certain plans;"

Page 1, line 12, after the second semicolon, insert "62J.06;"

Page 1, line 18, delete "62L.02, subdivision 26;"

Page 1, line 21, after the first semicolon, insert "256.9357, subdivision 1;" and before "repealing" insert "proposing coding for new law in Minnesota Statutes, chapter 62Q;"

Page 1, line 22, after "3;" insert "62J.041, subdivision 7;"

Page 1, line 23, delete "62J.06;"

Page 1, line 25, delete "62Q.23;"

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. 1495, A bill for an act relating to health; restricting the ability of providers and health plan companies to enter into exclusive or restrictive contracts; providing civil penalties; proposing coding for new law in Minnesota Statutes, chapter 62Q.

Reported the same back with the following amendments:

Page 1, line 23, delete "attorney general" and insert "commissioners of health and commerce"


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Page 2, lines 1 and 3, delete "attorney general" and insert "relevant commissioner"

Page 2, line 4, delete "attorney general" and insert "relevant commissioner"

Page 2, lines 7 and 8, delete "attorney general" and insert "commissioner involved"

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.

Kahn from the Committee on Governmental Operations to which was referred:

H. F. No. 1618, A bill for an act relating to state agencies; multimember agencies; changing certain publication dates and requirements; modifying registration requirements; changing the expiration date for certain multimember agencies; amending Minnesota Statutes 1996, sections 15.059, subdivision 5; 15.0597, subdivisions 2 and 3; and 15.0599, subdivisions 1, 4, and 5, and by adding a subdivision; proposing coding for new law in Minnesota Statutes, chapter 15.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 1996, section 15.059, subdivision 5, is amended to read:

Subd. 5. [EXPIRATION DATE.] Unless a different date is specified by law, the existence of each advisory council and committee created established before January 1, 1993 1997, and governed by this section shall terminate on terminates June 30, 1993 1997. An advisory council or committee whose expiration is not governed by this section does not terminate June 30, 1993, unless specified by other law. An advisory council or committee created established by law and in existence after June 30, 1993 1997, expires on the date specified in the law creating establishing the group or on June 30, 1997 2001, whichever is sooner. This expiration provision subdivision applies whether or not the law creating establishing the group provides that the group is governed by this section.

Sec. 2. Minnesota Statutes 1996, section 15.059, is amended by adding a subdivision to read:

Subd. 5a. [NO EXPIRATION.] Notwithstanding subdivision 5, the advisory councils and committees listed in this subdivision do not expire June 30, 1997. These groups expire June 30, 2001, unless the law creating the group specifies an earlier expiration date.

Dairy producers board, created in section 17.76;

Workers' compensation self-insurers' advisory committee, created in section 79A.02;

Mineral coordinating committee, created in section 93.002;

Solid waste management advisory council, created in section 115A.12;

Nuclear waste council, created in section 116C.711;

Desegregation/integration advisory board, created in section 121.1601;

Nonpublic education council, created in section 123.935;


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Permanent school fund advisory committee, created in section 124.078;

Multicultural education advisory committee, created in section 126.82;

Higher education advisory council, created in section 136A.031;

Student advisory council, created in section 136A.031;

Council on vocational technical education, created in section 136F.56;

School bus safety advisory committee, created in section 169.435;

Advisory council on workers' compensation, created in section 175.007;

Medical services review board, created in section 176.103;

Rehabilitation advisory council for the blind, created in section 248.10;

Medical assistance drug formulary committee, created in section 256B.0625;

Home care advisory committee, created in section 256B.071;

Preadmission screening, alternative care, and home and community-based services advisory committee created in section 256B.0911;

Traumatic brain injury advisory committee, created in section 256B.093;

Minnesota commission serving deaf and hard-of-hearing people, created in section 256C.28;

American Indian child welfare advisory council, created in section 257.3579;

Pipeline safety advisory committee, created in section 299J.06, expires June 30, 1998.

Sec. 3. Minnesota Statutes 1996, section 15.0597, subdivision 2, is amended to read:

Subd. 2. [COLLECTION OF DATA.] The chair of an existing agency, or the appointing authority for the members of a newly created agency, shall provide the secretary, on forms prepared and distributed by the secretary, with the following data pertaining to that agency:

(1) the name of the agency, its mailing address, and telephone number;

(2) the legal authority for the creation of the agency and the name of the person appointing agency members;

(3) the powers and duties of the agency;

(4) the number of authorized members, together with any prescribed restrictions on eligibility such as employment experience or geographical representation;

(5) the dates of commencement and expiration of the membership terms and the expiration date of the agency, if any;

(6) the compensation of members, and appropriations or other funds available to the agency;

(7) the regular meeting schedule, if any, and approximate number of hours per month of meetings or other activities required of members;


Journal of the House - 30th Day - Top of Page 1560

(8) the roster of current members, including mailing addresses and telephone numbers; and

(9) a breakdown of the membership showing distribution by county, legislative district, and congressional district, and, only if the member has voluntarily supplied the information, the sex, political party preference or lack thereof of party preference, race, and national origin of the members.

The secretary may provide for the submission of data in accordance with this subdivision by electronic means. The publication requirement under clause (8) may be met by publishing a member's home or business address and telephone number, the address and telephone number of the agency to which the member is appointed, the member's electronic mail address, if provided, or any other information that would enable the public to communicate with the member.

Sec. 4. Minnesota Statutes 1996, section 15.0597, subdivision 3, is amended to read:

Subd. 3. [PUBLICATION OF AGENCY DATA.] The secretary of state shall provide for annual updating of the required data and shall annually arrange for the publication in the state register of the compiled data from all agencies on or about November October 15 of each year. Copies of the compilation shall must be delivered to the governor and the legislature. Copies of the compilation shall must be made available by the secretary to any interested person at cost, and copies shall must be available for viewing by interested persons. The chair of an agency who does not submit data required by this section or who does not notify the secretary of a vacancy in the agency, shall is not be eligible for a per diem or expenses in connection with agency service until December 1 of the following year.

Sec. 5. Minnesota Statutes 1996, section 15.0599, subdivision 1, is amended to read:

Subdivision 1. [APPLICABILITY.] For purposes of this section, "agency" means:

(1) a state board, commission, council, committee, authority, task force, including an advisory task force established under section 15.014 or 15.0593, other multimember agency, however designated, established by statute or order and having statewide jurisdiction;

(2) the metropolitan council established by section 473.123, a metropolitan agency as defined in section 473.121, subdivision 5a, or a multimember body, however designated, appointed by the metropolitan council established by section 473.123 or a metropolitan agency as defined in section 473.121, subdivision 5a, if the membership includes at least one person who is not a member of the council or the agency; and

(3) a multimember body whose members are appointed by the legislature if the body has at least one nonlegislative member; and

(4) any other multimember body established by law with at least one appointed member, without regard to the appointing authority.

"Secretary" means the secretary of state.

Sec. 6. Minnesota Statutes 1996, section 15.0599, subdivision 4, is amended to read:

Subd. 4. [REGISTRATION; INFORMATION REQUIRED.] (a) The appointing authority of a newly established agency shall provide the secretary with the following information:

(1) the name, mailing address, and telephone number of the agency;

(2) the legal authority for the establishment of the agency and the name and the title of the person or persons appointing agency members;

(3) the powers and duties of the agency and whether the agency, however designated, is best described by section 15.012, paragraph (a), (b), (c), (e), or (f);


Journal of the House - 30th Day - Top of Page 1561

(4) the number of authorized members, together with any prescribed restrictions on eligibility;

(5) the roster of current members, including mailing addresses and telephone numbers;

(6) a breakdown of the membership showing distribution by county, legislative district, and congressional district and compliance with any restrictions listed in accordance with clause (4);

(7) if any members have voluntarily provided the information, the sex, age, political preference or lack of preference, race, and national origin of those members;

(8) the dates of commencement and expiration of membership terms and the expiration date of the agency, if any;

(9) the compensation of members and appropriations or other money available to the agency;

(10) the name of the state agency or other entity, if any, required to provide staff or administrative support to the agency;

(11) the regular meeting schedule, if any, and the approximate number of hours a month of meetings or other activities required of members; and

(12) a brief statement of the goal or purpose of the agency, along with a summary of what an existing agency has done, or what a newly established agency plans to do to achieve its goal or purpose.

The publication requirement under clause (5) may be met by publishing a member's home or business address and telephone number, the address and telephone number of the agency to which the member is appointed, the member's electronic mail address, or any other information that would enable the public to communicate with the member.

(b) The chair of an existing agency shall provide information, covering the fiscal year in which it is registering, on the number of meetings it has held, its expenses, and the number of staff hours, if any, devoted to its support. The chair shall also, if necessary, update any of the information previously provided in accordance with paragraph (a).

(c) The secretary shall provide forms for the reporting of information required by this subdivision and may provide for reporting by electronic means.

Sec. 7. Minnesota Statutes 1996, section 15.0599, is amended by adding a subdivision to read:

Subd. 4a. [ELIGIBILITY FOR COMPENSATION.] The members of an agency that submits all the information required by this section by the prescribed deadlines are eligible to receive compensation, but no compensation, including reimbursement for expenses, may be paid to members of an agency not in compliance with this section. If an agency has not submitted all required information by its applicable deadline, the secretary shall notify the agency that it is not in compliance and that it has 30 days from the date of the notice to achieve compliance. If the agency is out of compliance at the end of the 30-day period, the secretary shall notify the commissioner of finance that members of the agency are not entitled to compensation. If the agency subsequently complies with this section, the secretary shall notify the commissioner that the agency's members are eligible for compensation from the date of compliance. No retroactive compensation may be paid, however, for any period during which the agency was out of compliance.

Sec. 8. Minnesota Statutes 1996, section 15.0599, subdivision 5, is amended to read:

Subd. 5. [REPORTING BY SECRETARY.] By August October 15 of each year, the secretary shall furnish copies and a summary of the information collected under subdivision 4 to the legislative reference library.

Sec. 9. Minnesota Statutes 1996, section 15.0599, is amended by adding a subdivision to read:

Subd. 6. [ELECTRONIC PUBLICATION.] Any material that under sections 15.0597 to 15.0599 is required to be published in the State Register may instead be published on the World Wide Web.


Journal of the House - 30th Day - Top of Page 1562

Sec. 10. Minnesota Statutes 1996, section 16B.42, subdivision 1, is amended to read:

Subdivision 1. [COMPOSITION.] The intergovernmental information systems advisory council is composed of (1) two members from each of the following groups: counties outside of the seven-county metropolitan area, cities of the second and third class outside the metropolitan area, cities of the second and third class within the metropolitan area, and cities of the fourth class; (2) one member from each of the following groups: the metropolitan council, an outstate regional body, counties within the metropolitan area, cities of the first class, school districts in the metropolitan area, school districts outside the metropolitan area, and public libraries; (3) one member each appointed by the state departments of children, families, and learning, human services, revenue, and economic security, the office of strategic and long-range planning, and the legislative auditor; (4) one member from the office of the state auditor, appointed by the auditor; (5) the assistant commissioner of administration for the information policy office; (6) one member appointed by each of the following organizations: league of Minnesota cities, association of Minnesota counties, Minnesota association of township officers, and Minnesota association of school administrators; and (7) one member of the house of representatives appointed by the speaker and one member of the senate appointed by the subcommittee on committees of the committee on rules and administration. The legislative members appointed under clause (7) are nonvoting members. The commissioner of administration shall appoint members under clauses (1) and (2). The terms, compensation, and removal of the appointed members of the advisory council are as provided in section 15.059, but the council does not expire until June 30, 1997 2001.

Sec. 11. Minnesota Statutes 1996, section 17.136, is amended to read:

17.136 [ANIMAL FEEDLOTS; POLLUTION CONTROL; FEEDLOT AND MANURE MANAGEMENT ADVISORY COMMITTEE.]

(a) The commissioner of agriculture and the commissioner of the pollution control agency shall establish a feedlot and manure management advisory committee to identify needs, goals, and suggest policies for research, monitoring, and regulatory activities regarding feedlot and manure management. In establishing the committee, the commissioner shall give first consideration to members of the existing feedlot advisory group.

(b) The committee must include representation from beef, dairy, pork, chicken, and turkey producer organizations. The committee shall not exceed 18 members, but, after June 30, 1997, must include representatives from at least three four environmental organizations, eight livestock producers, and four experts in soil and water science, nutrient management, and animal husbandry, one member from an organization representing local units of government, one member from and chairs of the senate, and one member from the house of representatives committees that deal with agricultural policy or the designees of the chairs. In addition, the department departments of agriculture, health, and natural resources, the pollution control agency, board of water and soil resources, soil and water conservation districts, the federal Soil Natural Resource Conservation Service, the association of Minnesota counties, and the Agricultural Stabilization and Conservation Farm Service Agency shall serve on the committee as ex officio nonvoting members.

(c) Persons who participated in activities of the feedlot advisory group existing on and before August 1, 1994, must be allowed to speak at proceedings of the advisory committee. These persons hold nonvoting status and are not eligible for reimbursement of expenses under paragraph (h).

(d) The advisory committee shall elect a chair and a vice-chair from its members. The department and the agency shall provide staff support to the committee.

(e) (d) The commissioner of agriculture and the commissioner of the pollution control agency shall consult with the advisory committee during the development of any policies, rules, or funding proposals or recommendations relating to feedlots or feedlot-related manure management.

(f) (e) The commissioner of agriculture shall consult with the advisory committee on establishing a list of manure management research needs and priorities.

(g) (f) The advisory committee shall advise the commissioners on other appropriate matters.

(h) (g) Nongovernment members of the advisory committee shall receive expenses, in accordance with section 15.059, subdivision 6. The advisory committee expires on June 30, 1997 2001.


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Sec. 12. Minnesota Statutes 1996, section 17.49, subdivision 1, is amended to read:

Subdivision 1. [PROGRAM ESTABLISHED.] The commissioner shall establish and promote a program of aquaculture in consultation with an advisory committee consisting of the University of Minnesota, the commissioner of natural resources, the commissioner of agriculture, representatives of the private aquaculture industry, and the chairs of the environment and natural resources committees of the house of representatives and senate. The advisory committee expires on June 30, 2001.

Sec. 13. Minnesota Statutes 1996, section 21.112, subdivision 2, is amended to read:

Subd. 2. [ADVISORY SEED POTATO CERTIFICATION TASK FORCE.] The commissioner may appoint an advisory seed potato certification task force. If the task force is appointed each member shall be a grower in Minnesota of certified seed potatoes. The task force shall expire, and the terms, compensation, and removal of members shall be as provided in section 15.059. The task force shall expire June 30, 2001.

Sec. 14. Minnesota Statutes 1996, section 28A.20, subdivision 2, is amended to read:

Subd. 2. [MEMBERSHIP.] (a) The food safety advisory committee consists of:

(1) the commissioner of agriculture;

(2) the commissioner of health;

(3) the executive director of the agricultural utilization resource institute or the director's designee;

(3) (4) a representative of the United States Food and Drug Administration;

(4) (5) a representative of the United States Department of Agriculture;

(5) (6) one person from the University of Minnesota knowledgeable in food and food safety issues; and

(6) (7) eight members appointed by the governor who are interested in food and food safety, of whom:

(i) two persons are health or food professionals;

(ii) one person represents a statewide general farm organization;

(iii) one person represents a local food inspection agency; and

(iv) one person represents a food-oriented consumer group.

(b) Members shall serve without compensation. Members appointed by the governor shall serve four-year terms.

Sec. 15. Minnesota Statutes 1996, section 28A.20, is amended by adding a subdivision to read:

Subd. 6. [EXPIRATION.] This section expires on June 30, 2001.

Sec. 16. Minnesota Statutes 1996, section 31.95, subdivision 3a, is amended to read:

Subd. 3a. [CERTIFICATION ORGANIZATIONS.] (a) A Minnesota grown organic product that is labeled "certified" must be certified by a designated certification organization.

(b) A certified organic product sold in this state must be certified by a designated certification organization or by a certification organization approved by the commissioner. Before approving a certification organization, the commissioner must seek the evaluation and recommendation of the Minnesota organic advisory task force.


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(c) The commissioner shall appoint a Minnesota organic advisory task force composed of members of the organic industry to advise the commissioner on organic issues. Members of the task force may not be paid compensation or costs for expenses. The task force expires on June 30, 2001.

Sec. 17. Minnesota Statutes 1996, section 120.1701, subdivision 3, is amended to read:

Subd. 3. [STATE INTERAGENCY COORDINATING COUNCIL.] An interagency coordinating council of at least 17, but not more than 25 members is established, in compliance with Public Law Number 102-119, section 682. The members shall be appointed by the governor. Council members shall elect the council chair. The representative of the commissioner of children, families, and learning may not serve as the chair. The council shall be composed of at least five parents, including persons of color, of children with disabilities under age 12, including at least three parents of a child with a disability under age seven, five representatives of public or private providers of services for children with disabilities under age five, including a special education director, county social service director, and a community health services or public health nursing administrator, one member of the senate, one member of the house of representatives, one representative of teacher preparation programs in early childhood-special education or other preparation programs in early childhood intervention, at least one representative of advocacy organizations for children with disabilities under age five, one physician who cares for young children with special health care needs, one representative each from the commissioners of commerce, children, families, and learning, health, human services, and economic security, and a representative from Indian health services or a tribal council. Section 15.059, subdivisions 2 to 5, apply to the council. The council shall meet at least quarterly.

The council shall address methods of implementing the state policy of developing and implementing comprehensive, coordinated, multidisciplinary interagency programs of early intervention services for children with disabilities and their families.

The duties of the council include recommending policies to ensure a comprehensive and coordinated system of all state and local agency services for children under age five with disabilities and their families. The policies must address how to incorporate each agency's services into a unified state and local system of multidisciplinary assessment practices, individual intervention plans, comprehensive systems to find children in need of services, methods to improve public awareness, and assistance in determining the role of interagency early intervention committees.

Each year by June 1, the council shall recommend to the governor and the commissioners of children, families, and learning, health, human services, commerce, and economic security policies for a comprehensive and coordinated system.

Notwithstanding any other law to the contrary, the state interagency coordinating council shall expire on June 30, 1997 1999.

Sec. 18. Minnesota Statutes 1996, section 124.48, subdivision 3, is amended to read:

Subd. 3. [INDIAN SCHOLARSHIP COMMITTEE.] The Minnesota Indian scholarship committee is established. Members shall be appointed by the state board with the assistance of the Indian affairs council as provided in section 3.922, subdivision 6. Members shall be reimbursed for expenses as provided in section 15.059, subdivision 6. The state board shall determine the membership terms and duration of the committee, which expires no later than June 30, 1997 2007. The committee shall provide advice to the state board in awarding scholarships to eligible American Indian students and in administering the state board's duties regarding awarding of American Indian post-secondary preparation grants to school districts.

Sec. 19. Minnesota Statutes 1996, section 126.531, subdivision 3, is amended to read:

Subd. 3. Each committee shall be reimbursed for expenses according to section 15.059, subdivision 6. The state board shall determine the membership terms and the duration of each committee, which expire no later than June 30, 1997 2001.

Sec. 20. Minnesota Statutes 1996, section 161.1419, subdivision 8, is amended to read:

Subd. 8. [EXPIRATION.] The commission shall expire on June 30, 1997 2001.


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Sec. 21. Minnesota Statutes 1996, section 175.008, is amended to read:

175.008 [CODE ENFORCEMENT ADVISORY COUNCIL; CREATION.]

The commissioner shall appoint an 11 member advisory council on code enforcement. The terms, compensation, removal of council members, and expiration of the council are governed by section 15.059, except that the advisory council shall not expire before June 30, 1995 2001. The council shall advise the commissioner on matters within the council's expertise or under the regulation of the commissioner.

Sec. 22. Minnesota Statutes 1996, section 178.02, subdivision 2, is amended to read:

Subd. 2. [TERMS.] The council shall expire and the terms, compensation and removal of appointed members shall be as provided in section 15.059, except that the council shall not expire before June 30, 1995 2001.

Sec. 23. Minnesota Statutes 1996, section 182.656, subdivision 3, is amended to read:

Subd. 3. A majority of the council members constitutes a quorum. The council shall meet at the call of its chair, or upon request of any six members. A tape recording of the meeting with the tape being retained for a one-year period will be available upon the request and payment of costs to any interested party. The council shall expire and the terms, compensation, and removal of members shall be as provided in section 15.059, except that the council shall not expire before June 30, 1995 2001.

Sec. 24. Minnesota Statutes 1996, section 245.697, subdivision 1, is amended to read:

Subdivision 1. [CREATION.] A state advisory council on mental health is created. The council must have 30 members appointed by the governor in accordance with federal requirements. The council must be composed of:

(1) the assistant commissioner of mental health for the department of human services;

(2) a representative of the department of human services responsible for the medical assistance program;

(3) one member of each of the four core mental health professional disciplines (psychiatry, psychology, social work, nursing);

(4) one representative from each of the following advocacy groups: mental health association of Minnesota, Minnesota alliance for the mentally ill, and Minnesota mental health law project;

(5) providers of mental health services;

(6) consumers of mental health services;

(7) family members of persons with mental illnesses;

(8) legislators;

(9) social service agency directors;

(10) county commissioners; and

(11) other members reflecting a broad range of community interests, as the United States Secretary of Health and Human Services may prescribe by regulation or as may be selected by the governor.

The council shall select a chair. Terms, compensation, and removal of members and filling of vacancies are governed by section 15.059. The council does not expire as provided in section 15.059. Notwithstanding provisions of section 15.059, the council and its subcommittees do not expire. The commissioner of human services shall provide staff support and supplies to the council.


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Sec. 25. Minnesota Statutes 1996, section 254A.035, subdivision 2, is amended to read:

Subd. 2. [MEMBERSHIP TERMS, COMPENSATION, REMOVAL AND EXPIRATION.] The membership of this council shall be composed of 17 persons who are American Indians and who are appointed by the commissioner. The commissioner shall appoint one representative from each of the following groups: Red Lake Band of Chippewa Indians; Fond du Lac Band, Minnesota Chippewa Tribe; Grand Portage Band, Minnesota Chippewa Tribe; Leech Lake Band, Minnesota Chippewa Tribe; Mille Lacs Band, Minnesota Chippewa Tribe; Bois Forte Band, Minnesota Chippewa Tribe; White Earth Band, Minnesota Chippewa Tribe; Lower Sioux Indian Reservation; Prairie Island Sioux Indian Reservation; Shakopee Mdewakanton Sioux Indian Reservation; Upper Sioux Indian Reservation; International Falls Northern Range; Duluth Urban Indian Community; and two representatives from the Minneapolis Urban Indian Community and two from the St. Paul Urban Indian Community. The terms, compensation, and removal of American Indian advisory council members shall be as provided in section 15.059. The council expires June 30, 1997 2001.

Sec. 26. Minnesota Statutes 1996, section 254A.04, is amended to read:

254A.04 [CITIZENS ADVISORY COUNCIL.]

There is hereby created an alcohol and other drug abuse advisory council to advise the department of human services concerning the problems of alcohol and other drug dependency and abuse, composed of ten members. Five members shall be individuals whose interests or training are in the field of alcohol dependency and abuse; and five members whose interests or training are in the field of dependency and abuse of drugs other than alcohol. The terms, compensation and removal of members shall be as provided in section 15.059. The council expires June 30, 1997 2001. The commissioner of human services shall appoint members whose terms end in even-numbered years. The commissioner of health shall appoint members whose terms end in odd-numbered years.

Sec. 27. Minnesota Statutes 1996, section 611A.71, subdivision 7, is amended to read:

Subd. 7. [EXPIRATION.] The council expires on June 30, 1997 1998.

Sec. 28. Laws 1995, chapter 43, section 1, is amended to read:

Section 1. [REINSTATEMENT OF ADVISORY COUNCILS.]

Notwithstanding Laws 1993, chapter 286, section 1, and Laws 1993, chapter 337, section 1, the physical therapy council established in Minnesota Statutes, section 148.67, and the physician assistant advisory council and the respiratory care practitioners' advisory council established under Minnesota Statutes, section 214.13, subdivision 4, are reinstated and expire June 30, 1999. These groups are subject to the expiration date in Minnesota Statutes, section 15.059, subdivision 5 and the acupuncture advisory council established by Minnesota Statutes, section 147B.05, are subject to review by the 1999 legislature.

Sec. 29. [EFFECTIVE DATE.]

Sections 1 to 28 are effective June 30, 1997."

Delete the title and insert:

"A bill for an act relating to state agencies; multimember agencies; changing certain publication dates and requirements; modifying registration requirements; changing the expiration date for certain multimember agencies; amending Minnesota Statutes 1996, sections 15.059, subdivision 5, and by adding a subdivision; 15.0597, subdivisions 2 and 3; 15.0599, subdivisions 1, 4, 5, and by adding subdivisions; 16B.42, subdivision 1; 17.136; 17.49, subdivision 1; 21.112, subdivision 2; 28A.20, subdivision 2, and by adding a subdivision; 31.95, subdivision 3a; 120.1701, subdivision 3; 124.48, subdivision 3; 126.531, subdivision 3; 161.1419, subdivision 8; 175.008; 178.02, subdivision 2; 182.656, subdivision 3; 245.697, subdivision 1; 254A.035, subdivision 2; 254A.04; and 611A.71, subdivision 7; Laws 1995, chapter 43, section 1."

With the recommendation that when so amended the bill pass.

The report was adopted.


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Kahn from the Committee on Governmental Operations to which was referred:

H. F. No. 1686, A bill for an act relating to agriculture; changing and extending the farmer-lender mediation program; appropriating money; amending Minnesota Statutes 1996, section 583.22, subdivision 5; Laws 1986, chapter 398, article 1, section 18, as amended.

Reported the same back with the following amendments:

Page 1, delete lines 10 to 12 and insert:

"Subd. 5. [DIRECTOR.] "Director" means the director of the agricultural extension service conflict and change center at the University of Minnesota's Humphrey Institute, or the director's designee."

Page 1, delete section 2

Page 1, line 18, delete "3" and insert "2"

Amend the title as follows:

Page 1, line 3, delete "appropriating money;"

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

The report was adopted.

Jefferson from the Committee on Labor-Management Relations to which was referred:

H. F. No. 1711, A bill for an act relating to employment; modifying requirements for drug and alcohol testing; clarifying provisions on review of personnel records by employees; setting a limit for penalties on unpaid OSHA fines; creating a private right of action for violations of certain provisions regarding entertainment agencies; providing the criminal penalty of gross misdemeanor for an assault on an occupational safety and health investigator; amending Minnesota Statutes 1996, sections 181.953, subdivision 6; 181.961, subdivision 2; 182.666, subdivision 7; 184A.20; and 609.2231, subdivision 6.

Reported the same back with the following amendments:

Page 1, line 28, after the comma, insert "the employee must be given written notice of the right to explain the positive test and"

Page 2, line 34, after "may" insert "not" and strike "not to"

Page 2, strike line 35

Page 2, line 36, strike "copy"

Page 3, delete section 3

Page 4, delete section 5

Renumber the sections in sequence

Amend the title as follows:

Page 1, line 4, delete "setting a"


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Page 1, line 5, delete everything before "creating"

Page 1, line 7, delete "providing"

Page 1, delete lines 8 and 9

Page 1, line 10, delete "investigator;"

Page 1, line 12, delete everything after the first semicolon and insert "and 184A.20."

Page 1, delete line 13

With the recommendation that when so amended the bill pass.

The report was adopted.

Kahn from the Committee on Governmental Operations to which was referred:

H. F. No. 1727, A bill for an act relating to retirement; actuarial reporting requirements; modifying the definition of the actuarial value of pension plan assets; amending Minnesota Statutes 1996, section 356.215, subdivision 1.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"ARTICLE 1

POLICE STATE AID AND PAID FIREFIGHTER

RETIREMENT COVERAGE COSTS

Section 1. Minnesota Statutes 1996, section 69.021, subdivision 4, is amended to read:

Subd. 4. [DETERMINATION OF QUALIFIED STATE AID RECIPIENTS; CERTIFICATION TO COMMISSIONER OF REVENUE FINANCE.] (a) The commissioner shall determine which municipalities and independent nonprofit firefighting corporations are qualified to receive fire state aid and which municipalities and counties are qualified to receive police state peace officer aid.

(b) The commissioner shall determine qualification for state aid upon receipt of:

(1) the fire department personnel and equipment certification or the police department and qualified peace officers certificate, whichever is applicable applies, required under section 69.011,;

(2) the financial compliance report required under section 6.495, subdivision 3, if applicable; and

(3) any other relevant information which comes to the attention of the commissioner.

(c) Upon completion of the determination, on or before October 1, the commissioner shall calculate under subdivision 6 the amount of (a) state peace officer:

(1) the police state aid which each county or municipality is to receive under subdivisions 5, 6, 7a, and 10; and

(b) (2) the fire state aid which each municipality or nonprofit firefighting corporation is to receive under subdivisions 5 and 7.


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(d) The commissioner shall certify to the commissioner of finance the name of each county or municipality, and the amount of state aid which each county or municipality is to receive, in the case of police state peace officer aid; and. The commissioner shall certify to the commissioner of finance the name of each municipality or independent nonprofit firefighting corporation and the amount of state aid which each municipality or independent nonprofit firefighting corporation is to receive, in the case of fire state aid.

Sec. 2. Minnesota Statutes 1996, section 69.021, subdivision 5, is amended to read:

Subd. 5. [CALCULATION OF STATE AID.] (a) The amount of fire state aid available for apportionment shall be, before the addition of the minimum fire state aid allocation amount under subdivision 7, is equal to 107 percent of the amount of premium taxes paid to the state upon the fire, lightning, sprinkler leakage, and extended coverage premiums reported to the commissioner by insurers on the Minnesota Firetown Premium Report. This amount shall be reduced by the amount required to pay the state auditor's costs and expenses of the audits or exams of the firefighters relief associations.

(b) The total amount for apportionment in respect to peace officer state aid is equal to 104 percent of the amount of premium taxes paid to the state upon the premiums reported to the commissioner by insurers on the Minnesota Aid to Police Premium Report, plus the payment amounts received under section 60A.152 since the last aid apportionment, and reduced by the amount required to pay the state auditor's costs and expenses of the audits or exams of the police relief associations. The total amount for apportionment in respect to firefighters fire state aid shall must not be less than two percent of the premiums reported to the commissioner by insurers on the Minnesota Firetown Premium Report after subtracting the following amounts:

(1) the amount required to pay the state auditor's costs and expenses of the audits or exams of the firefighters relief associations,; and

(2) one percent of the premiums reported by town and farmers' mutual insurance companies and mutual property and casualty companies with total assets of $5,000,000 or less.

(b) The total amount for apportionment as police state aid is equal to 104 percent of the amount of premium taxes paid to the state on the premiums reported to the commissioner by insurers on the Minnesota Aid to Police Premium Report, plus the payment amounts received under section 60A.152 since the last aid apportionment, and reduced by the amount required to pay the costs and expenses of the state auditor for audits or exams of police relief associations. The total amount for apportionment in respect to the police state aid program shall must not be less than two percent of the amount of premiums reported to the commissioner by insurers on the Minnesota Aid to Police Premium Report after subtracting the amount required to pay the state auditor's cost and expenses of the audits or exams of the police relief associations.

(c) The commissioner shall calculate the percentage of increase or decrease reflected in the apportionment over or under the previous year's available state aid using the same premiums as a basis for comparison.

Sec. 3. Minnesota Statutes 1996, section 69.021, subdivision 6, is amended to read:

Subd. 6. [CALCULATION OF APPORTIONMENT OF POLICE STATE PEACE OFFICERS AID TO COUNTIES.] The peace officers police state aid available shall must be distributed to the counties in proportion to the relationship that the total number of active peace officers, as defined in section 69.011, subdivision 1, clause (g), in each county who are employed either by municipalities maintaining police departments or by the county, bears to the total number of peace officers employed by all municipalities and counties, subject to any reduction under subdivision 10. Any necessary additional adjustments shall be made to subsequent apportionments.

Sec. 4. Minnesota Statutes 1996, section 69.021, subdivision 7a, is amended to read:

Subd. 7a. [APPORTIONMENT OF POLICE STATE AID.] (a) Subject to the reduction provided for under subdivision 10, the commissioner shall apportion the police state peace officer aid to each municipality and to the county in the following manner:

(1) for all municipalities maintaining police departments and the county, the state aid must be distributed in proportion to the relationship that the total number of peace officers, as determined under section 69.011, subdivision 1, clause (g), and subdivision 2, clause (b), employed by each that municipality and by the or county for 12 calendar months and the proportional or fractional number who were employed less than 12 months bears to the total number of peace officers employed by all municipalities and counties subject to any reduction under subdivision 10;


Journal of the House - 30th Day - Top of Page 1570

(2) for each municipality which contracts with the county for police service, a proportionate amount of the state aid distributed to the county based on the full-time equivalent number of peace officers providing contract service to that municipality must be credited against the municipality's contract obligation; and

(3) for each municipality which contracts with another municipality for police service, a proportionate amount of the state aid distributed to the municipality providing contract service based on the full-time equivalent number of peace officers providing contract service to that municipality on a full-time equivalent basis must be credited against the contract obligation of the municipality receiving contract service.

(b) No municipality entitled to receive state peace officer aid may be apportioned less state peace officer aid for any year under Laws 1976, chapter 315, than the amount which was apportioned to it for calendar year 1975 based on premiums reported to the commissioner for calendar year 1974; provided, the amount of state peace officer aid to other municipalities within the county and to the county must be adjusted in proportion to the total number of peace officers in the municipalities and the county, so that the amount of state peace officer aid apportioned does not exceed the amount of state peace officer aid available for apportionment.

Sec. 5. Minnesota Statutes 1996, section 69.021, subdivision 8, is amended to read:

Subd. 8. [POPULATION AND MARKET VALUE.] In computations relating to fire state aid requiring the use of population figures, only official statewide federal census figures are to be used. Increases or decreases in population disclosed by reason of any special census shall must not be taken into consideration.

In calculations relating to fire state aid requiring the use of market value property figures, only the latest available market value property figures are to may be used.

Sec. 6. Minnesota Statutes 1996, section 69.021, subdivision 9, is amended to read:

Subd. 9. [APPEAL.] In the event that any municipality, county, fire relief association, or police department relief association feels itself to be aggrieved, it may request the commissioner to review and adjust the apportionment of funds within the county in the case of police state peace officer aid, and or within the state in the case of fire state aid, and. The decision of the commissioner shall be is subject to appeal, review, and adjustment by the district court in the county in which the applicable fire or police department is located.

Sec. 7. Minnesota Statutes 1996, section 69.021, subdivision 10, is amended to read:

Subd. 10. [REDUCTION IN POLICE STATE AID APPORTIONMENT.] (a) The commissioner of revenue shall reduce the apportionment of police state aid under subdivisions 5, paragraph (b), 6, and 7 7a, for eligible employer units by any excess police state aid.

(b) "Excess police state aid" is:

(1) for counties and for municipalities in which police retirement coverage is provided wholly by the public employees police and fire fund and all police officers are members of the plan governed by sections 353.63 to 353.657, the amount in excess of the employer's total prior calendar year obligation under section 353.65, as defined in paragraph (c), as certified by the executive director of the public employees retirement association.;

(2) for municipalities in which police retirement coverage is provided in part by the public employees police and fire fund governed by sections 353.63 to 353.657 and in part by a local police consolidation account governed by chapter 353A, the amount in excess of the employer's total prior calendar year obligation as defined in paragraph (c), as certified by the executive director of the public employees retirement association;

(3) for municipalities in which police retirement coverage is provided in part by the public employees police and fire fund governed by sections 353.63 to 353.657 and in part by a local police relief association governed by sections 69.77 and 423A.01, the amount in excess of the employer's total prior calendar year obligation as defined in paragraph (c), as certified by the executive director of the public employees retirement association, plus the amount of the financial requirements of


Journal of the House - 30th Day - Top of Page 1571

the relief association certified to the applicable municipality during the prior calendar year under section 69.77, subdivisions 2b and 2c, reduced by the amount of member contributions deducted from the covered salary of the relief association during the prior calendar year under section 69.77, subdivision 2a, as certified by the chief administrative officer of the applicable municipality; and

(4) for the metropolitan airports commission, if there are police officers hired before July 1, 1978, with retirement coverage by the Minneapolis employees retirement fund remaining, the amount in excess of the commission's total prior calendar year obligation as defined in paragraph (c), as certified by the executive director of the public employees retirement association, plus the amount determined by expressing the commission's total prior calendar year contribution to the Minneapolis employees retirement fund under section 422A.101, subdivisions 2 and 2a, as a percentage of the commission's total prior calendar year covered payroll for commission employees covered by the Minneapolis employees retirement fund and applying that percentage to the commission's total prior calendar year covered payroll for commission police officers covered by the Minneapolis employees retirement fund, as certified by the chief administrative officer of the metropolitan airports commission.

(c) The employer's total prior calendar year obligation with respect to the public employees police and fire plan is the total prior calendar year obligation under section 353.65, subdivision 3, for police officers as defined in section 353.64, subdivision 2, and the actual total prior calendar year obligation under section 353.65, subdivision 3, for firefighters, as defined in section 353.64, subdivision 3, but not to exceed for those firefighters the applicable following amount:

municipality maximum amount

Albert Lea $54,157.01

Anoka 10,399.31

Apple Valley 5,442.44

Austin 49,864.73

Bemidji 27,671.38

Brooklyn Center 6,605.92

Brooklyn Park 24,002.26

Burnsville 15,956.00

Cloquet 4,260.49

Coon Rapids 39,920.00

Cottage Grove 8,588.48

Crystal 5,855.00

East Grand Forks 51,009.88

Edina 32,251.00

Elk River 5,216.55

Ely 13,584.16

Eveleth 16,288.27

Fergus Falls 6,742.00

Fridley 33,420.64

Golden Valley 11,744.61

Hastings 16,561.00

Hopkins 4,324.23

International Falls 14,400.69

Lakeville 782.35

Lino Lakes 5,324.00

Little Falls 7,889.41

Maple Grove 6,707.54

Maplewood 8,476.69

Minnetonka 10,403.00

Montevideo 1,307.66

Moorhead 68,069.26

New Hope 6,739.72

North St. Paul 4,241.14


Journal of the House - 30th Day - Top of Page 1572

Northfield 770.63

Owatonna 37,292.67

Plymouth 6,754.71

Red Wing 3,504.01

Richfield 53,757.96

Rosemount 1,712.55

Roseville 9,854.51

St. Anthony 33,055.00

St. Louis Park 53,643.11

Thief River Falls 28,365.04

Virginia 31,164.46

Waseca 11,135.17

West St. Paul 15,707.20

White Bear Lake 6,521.04

Woodbury 3,613.00.

(d) The total shall amount of excess police state aid must be deposited in a separate the excess police state-aid account in the general fund, administered and distributed as provided in subdivision 11.

Sec. 8. Minnesota Statutes 1996, section 69.021, subdivision 11, is amended to read:

Subd. 11. [EXCESS POLICE STATE-AID HOLDING ACCOUNT.] (a) An The excess police state-aid holding account is established in the general fund. The excess police state-aid holding account must be administered by the commissioner.

(b) Excess police state aid determined according to section 69.021, subdivision 10, must be deposited in the excess police state-aid holding account.

(c) From the balance in the excess police state-aid holding account, $1,000,000 is appropriated to and must be transferred annually to the ambulance service personnel longevity award and incentive suspense account established by section 144C.03, subdivision 2.

(d) If a police officer stress reduction program is created by law and money is appropriated for that program, an amount equal to that appropriation must be transferred from the balance in the excess police state-aid holding account.

(e) On October 1, 1997, and annually on each subsequent October 1, one-half of the balance of the excess police state-aid holding account remaining after the deductions under paragraphs (c) and (d) is appropriated for additional amortization aid under section 423A.02, subdivision 1b.

(f) Annually, the remaining balance in the excess police state-aid holding account, after the deductions under paragraphs (c), (d), and (e), cancels to the general fund.

Sec. 9. Minnesota Statutes 1996, section 69.031, subdivision 1, is amended to read:

Subdivision 1. [COMMISSIONER OF FINANCE'S WARRANT.] The commissioner of finance shall issue to the county, municipality, or independent nonprofit firefighting corporation certified to the commissioner of finance by the commissioner a warrant for an amount equal to the amount of fire state aid or police state aid, whichever applies, certified to for the applicable state aid recipient by the commissioner pursuant to under section 69.021. The amount of state aid due and not paid by October 1 accrues interest at the rate of one percent for each month or part of a month the amount remains unpaid, beginning the preceding July 1.

Sec. 10. Minnesota Statutes 1996, section 69.031, subdivision 3, is amended to read:

Subd. 3. [APPROPRIATIONS.] There is hereby appropriated annually from the state general fund to the commissioner of revenue finance an amount sufficient to make the police and fire state aid payments specified in this section and section 69.021.


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Sec. 11. Minnesota Statutes 1996, section 69.031, subdivision 5, is amended to read:

Subd. 5. [DEPOSIT OF STATE AID.] (1) (a) The municipal treasurer, on receiving the fire state aid, shall, within 30 days after receipt, transmit it the fire state aid to the treasurer of the duly incorporated firefighters' relief association if there is one organized and the association has filed a financial report with the municipality; but. If the relief association has not filed a financial report with the municipality, the municipal treasurer shall delay transmission of the fire state aid to the relief association until the complete financial report is filed. If there is no relief association organized, or if any the association dissolve, be removed, or has heretofore dissolved, or has been removed as trustees of state aid, then the treasurer of the municipality shall keep deposit the money in the municipal treasury as provided for in section 424A.08 and shall the money may be disbursed only for the purposes and in the manner set forth in that section.

(2) (b) The municipal treasurer, upon receipt of the police state aid, shall disburse the police state aid in the following manner:

(a) (1) For a municipality in which a local police relief association exists and all peace officers are members of the association, the total state aid shall must be transmitted to the treasurer of the relief association within 30 days of the date of receipt, and the treasurer of the relief association shall immediately deposit the total state aid in the special fund of the relief association;

(b) (2) For a municipality in which police retirement coverage is provided by the public employees police and fire fund and all peace officers are members of the fund, the total state aid shall must be applied toward the municipality's employer contribution to the public employees police and fire fund pursuant under to section 353.65, subdivision 3; or

(c) (3) For a municipality other than a city of the first class with a population of more than 300,000 in which both a police relief association exists and police retirement coverage is provided in part by the public employees police and fire fund, the municipality may elect at its option to transmit the total state aid to the treasurer of the relief association as provided in clause (a) (1), to use the total state aid to apply toward the municipality's employer contribution to the public employees police and fire fund subject to all the provisions set forth in clause (b) (2), or to allot the total state aid proportionately to be transmitted to the police relief association as provided in this subdivision and to apply toward the municipality's employer contribution to the public employees police and fire fund subject to the provisions of clause (b) (2) on the basis of the respective number of active full-time peace officers, as defined in section 69.011, subdivision 1, clause (g).

For a city of the first class with a population of more than 300,000, in addition, the city may elect to allot the appropriate portion of the total police state aid to apply toward the employer contribution of the city to the public employees police and fire fund based on the covered salary of police officers covered by the fund each payroll period and to transmit the balance to the police relief association.; or

(4) For a municipality in which police retirement coverage is provided in part by the public employees police and fire fund and in part by a local police consolidation account governed by chapter 353A, the total police state aid must be applied toward the municipality's total employer contribution to the public employees police and fire fund and to the local police consolidation account under sections 353.65, subdivision 3, and 353A.09, subdivision 5.

(3) (c) The county treasurer, upon receipt of the police state aid for the county, shall apply the total state aid toward the county's employer contribution to the public employees police and fire fund pursuant to under section 353.65, subdivision 3.

(4) (d) The designated metropolitan airports commission official, upon receipt of the police state aid for the metropolitan airports commission, shall apply the total police state aid first toward the commission's employer contribution for police officers to the Minneapolis employees retirement fund under section 422A.101, subdivision 2a, and, if there is any amount of police state aid remaining, shall apply that remainder toward the commission's employer contribution for police officers to the public employees police and fire plan under section 353.65, subdivision 3.

Sec. 12. [EFFECTIVE DATE.]

Sections 1 to 11 are effective the day following final enactment.


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ARTICLE 2

VARIOUS LOCAL PENSION MODIFICATIONS

Section 1. Minnesota Statutes 1996, section 353.01, subdivision 2b, is amended to read:

Subd. 2b. [EXCLUDED EMPLOYEES.] The following public employees shall not participate as members of the association with retirement coverage by the public employees retirement plan or the public employees police and fire retirement plan:

(1) elected public officers, or persons appointed to fill a vacancy in an elective office, who do not elect to participate in the association by filing an application for membership;

(2) election officers;

(3) patient and inmate personnel who perform services in charitable, penal, or correctional institutions of a governmental subdivision;

(4) employees who are hired for a temporary position under subdivision 12a, and employees who resign from a nontemporary position and accept a temporary position within 30 days in the same governmental subdivision, but not those employees who are hired for an unlimited period but are serving a probationary period. If the period of employment extends beyond six consecutive months and the employee earns more than $425 from one governmental subdivision in any one calendar month, the department head shall report the employee for membership and require employee deductions be made on behalf of the employee under section 353.27, subdivision 4.

Membership eligibility of an employee who resigns or is dismissed from a temporary position and within 30 days accepts another temporary position in the same governmental subdivision is determined on the total length of employment rather than on each separate position. Membership eligibility of an employee who holds concurrent temporary and nontemporary positions in one governmental subdivision is determined by the length of employment and salary of each separate position;

(5) employees whose actual salary from one governmental subdivision does not exceed $425 per month, or whose annual salary from one governmental subdivision does not exceed a stipulation prepared in advance, in writing, that the salary must not exceed $5,100 per calendar year or per school year for school employees for employment expected to be of a full year's duration or more than the prorated portion of $5,100 per employment period for employment expected to be of less than a full year's duration;

(6) employees who are employed by reason of work emergency caused by fire, flood, storm, or similar disaster;

(7) employees who by virtue of their employment in one governmental subdivision are required by law to be a member of and to contribute to any of the plans or funds administered by the Minnesota state retirement system, the teachers retirement association, the Duluth teachers retirement fund association, the Minneapolis teachers retirement association, the St. Paul teachers retirement fund association, the Minneapolis employees retirement fund, or any police or firefighters relief association governed by section 69.77 that has not consolidated with the public employees retirement association, or any police or firefighters relief association that has consolidated with the public employees retirement association but whose members have not elected the type of benefit coverage provided by the public employees police and fire fund under sections 353A.01 to 353A.10. This clause must not be construed to prevent a person from being a member of and contributing to the public employees retirement association and also belonging to and contributing to another public pension fund for other service occurring during the same period of time. A person who meets the definition of "public employee" in subdivision 2 by virtue of other service occurring during the same period of time becomes a member of the association unless contributions are made to another public retirement fund on the salary based on the other service or to the teachers retirement association by a teacher as defined in section 354.05, subdivision 2;

(8) persons who are excluded from coverage under the federal Old Age, Survivors, Disability, and Health Insurance Program for the performance of service as specified in United States Code, title 42, section 410(a)(8)(A), as amended through January 1, 1987, if no irrevocable election of coverage has been made under section 3121(r) of the Internal Revenue Code of 1954, as amended;


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(9) full-time students who are enrolled and are regularly attending classes at an accredited school, college, or university and who are part-time employees as defined by a governmental subdivision;

(10) resident physicians, medical interns, and pharmacist residents and pharmacist interns who are serving in a degree or residency program in public hospitals;

(11) students who are serving in an internship or residency program sponsored by an accredited educational institution;

(12) persons who hold a part-time adult supplementary technical college license who render part-time teaching service in a technical college;

(13) foreign citizens working for a governmental subdivision with a work permit of less than three years, or an H-1b visa valid for less than three years of employment. Upon notice to the association that the work permit or visa extends beyond the three-year period, the foreign citizens are eligible for membership from the date of the extension;

(14) public hospital employees who elected not to participate as members of the association before 1972 and who did not elect to participate from July 1, 1988 to October 1, 1988;

(15) except as provided in section 353.86, volunteer ambulance service personnel, as defined in subdivision 35, but persons who serve as volunteer ambulance service personnel may still qualify as public employees under subdivision 2 and may be members of the public employees retirement association and participants in the public employees retirement fund or the public employees police and fire fund on the basis of compensation received from public employment service other than service as volunteer ambulance service personnel; and

(16) except as provided in section 353.87, volunteer firefighters, as defined in subdivision 36, engaging in activities undertaken as part of volunteer firefighter duties; provided that a person who is a volunteer firefighter may still qualify as a public employee under subdivision 2 and may be a member of the public employees retirement association and a participant in the public employees retirement fund or the public employees police and fire fund on the basis of compensation received from public employment activities other than those as a volunteer firefighter; and

(17) pipefitters and associated trades personnel employed by independent school district No. 625 (St. Paul) with coverage by the pipefitters local 455 pension plan under a collective bargaining agreement who were either first employed after May 1, 1997, or, if first employed before May 2, 1997, elected to be excluded under section 12.

Sec. 2. Minnesota Statutes 1996, section 353B.07, subdivision 3, is amended to read:

Subd. 3. [FORMULA PERCENTAGE RATE.] (a) The formula percentage rate shall be 2.333 percent per year of allowable service for each of the first 20 years of allowable service, 1.333 percent per year of allowable service for each year of allowable service in excess of 20 years but not in excess of 27 years, and .5 percent for each year of allowable service in excess of 25 years for the former members of the following consolidating relief associations:

(1) Rochester fire department relief association;

(2) Rochester police relief association;

(3) St. Cloud fire department relief association;

(4) St. Cloud police relief association;

(5) St. Louis Park police relief association; and

(6) Winona police relief association.

(b) The formula percentage rate shall be 2.5 percent per year of allowable service for each of the first 20 years of allowable service for the former members of the following consolidating relief associations:

(1) Albert Lea police relief association;


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(2) Anoka police relief association;

(3) Faribault fire department relief association;

(4) Faribault police benefit association;

(5) Mankato police benefit association;

(6) Red Wing police relief association; and

(7) West St. Paul police relief association.

(c) The formula percentage rate shall be 2.5 percent per year of allowable service for each of the first 20 years of allowable service and .5 percent per year of allowable service for each year of service in excess of 25 years of allowable service for the former members of the following consolidating relief associations:

(1) Austin firefighters relief association;

(2) Austin police relief association;

(3) South St. Paul firefighters relief association;

(4) South St. Paul police relief association; and

(5) Virginia police relief association.

(d) The formula percentage rate shall be 2.1875 percent per year of allowable service for each of the first 20 years of allowable service and 1.25 percent per year of allowable service for each year of allowable service in excess of 20 years of allowable service but not in excess of 27 years of allowable service for the former members of the Columbia Heights police relief association.

(e) The formula percentage rate shall be 2.65 percent per year of allowable service for each of the first 20 years of allowable service and an additional annual benefit of $120 per year of allowable service in excess of 20 years of allowable service but not in excess of 25 years of allowable service for the former members of the following consolidating relief associations:

(1) Hibbing firefighters relief association; and

(2) Hibbing police relief association.

(f) The formula percentage rate or rates shall be the following for the former members of the consolidating relief associations as indicated:

(1) 2.5 percent per year of allowable service for each of the first 20 years of allowable service, one percent per year of allowable service in excess of 20 years of allowable service but not more than 25 years of allowable service, and 1.5 percent per year of allowable service in excess of 25 years of allowable service, Albert Lea firefighters relief association;

(2) 2.5333 percent per year of allowable service for each of the first 20 years of allowable service and 1.3333 percent per year of allowable service in excess of 20 years of allowable service, but not in excess of 27 years of allowable service, if service as an active member terminated before January 31, 1994, and 2.3333 percent per year of allowable service for each of the first 20 years of allowable service and 1.3333 percent per year of allowable service for each year of allowable service in excess of 20 years of allowable service, but not in excess of 27 years of allowable service if service as an active member terminated on or after January 31, 1994, Bloomington police relief association;

(3) the greater of 2.5 percent per year of allowable service for each of the first 20 years of allowable service applied to the final salary base, or two percent per year of allowable service for each of the first 20 years of allowable service applied to top grade patrol officer's salary base, Brainerd police relief association;


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(4) 4.25 percent per year of allowable service for each of the first 20 years of allowable service and an additional benefit of $10 per month per year of allowable service in excess of 20 years of allowable service but not more than 25 years of allowable service, Buhl police relief association;

(5) 2.5 percent per year of allowable service for each of the first 20 years of allowable service and an additional benefit of $5 per month per year of allowable service in excess of 20 years of allowable service but not more than 25 years of allowable service, Chisholm firefighters relief association;

(6) 2.5 percent per year of allowable service for each of the first 20 years of allowable service and an additional benefit of $5 per month per year of allowable service in excess of 20 years of allowable service but not more than 25 years of allowable service and .5 percent per year of allowable service in excess of 25 years of allowable service, Chisholm police relief association;

(7) 2.1875 percent per year of allowable service for each year of the first 20 years of allowable service, 1.25 percent per year of allowable service in excess of 20 years of allowable service but not more than 25 years of allowable service and 1.75 percent per year of allowable service in excess of 25 years of allowable service, Columbia Heights fire department relief association, paid division;

(8) 2.5 percent per year of allowable service for each year of the first 20 years of allowable service and 1.5 percent per year of allowable service rendered after attaining the age of 60 years, Crookston fire department relief association;

(9) 2.5 percent per year of allowable service for each year of the first 30 years of allowable service, Crookston police relief association;

(10) 2.25 percent per year of allowable service for each year of the first 20 years of allowable service and 1.25 percent per year of allowable service in excess of 20 years of allowable service, but not more than 27 years of service, Crystal police relief association;

(11) 1.99063 percent per year of allowable service for each year of the first 20 years of allowable service, 1.25 percent for the 21st year of allowable service, and 2.5 percent per year of allowable service in excess of 21 years of allowable service but not more than 25 years of allowable service, Duluth firefighters relief association;

(12) 1.9875 percent per year of allowable service for each year of the first 20 years of allowable service, 1.25 percent for the 21st year of allowable service, and 2.5 percent per year of allowable service in excess of 21 years of allowable service but not more than 25 years of allowable service, Duluth police relief association;

(13) 2.5 percent per year of allowable service for each year of the first 20 years of allowable service, and two percent per year of allowable service in excess of 20 years but not more than 25 years of allowable service and not to include any year of allowable service rendered after attaining the age of 55 years, Fairmont police benefit association;

(14) two percent per year of allowable service for each year of the first ten years of allowable service, 2.67 percent per year of allowable service in excess of ten years of allowable service but not more than 20 years of allowable service and 1.3333 percent per year of allowable service in excess of 20 years of service but not more than 27 years of allowable service, Fridley police pension association;

(15) 2.5 percent per year of allowable service for each year of the first 20 years of allowable service and an additional annual amount of $30 per year of allowable service in excess of 20 years of allowable service but not more than 30 years of allowable service, Mankato fire department relief association;

(16) for members who terminated active service as a Minneapolis firefighter before June 1, 1993, 2.0625 percent per year of allowable service for each year of the first 20 years of allowable service, 1.25 percent per year of allowable service in excess of 20 years of allowable service but not more than 24 years of allowable service and five percent for the 25th year of allowable service, and for members who terminated active service as a Minneapolis firefighter after May 31, 1993, two percent for each year of the first 19 years of allowable service, 3.25 percent for the 20th year of allowable service, and two percent per year of allowable service in excess of 20 years of service, but not more than 25 years of allowable service, Minneapolis fire department relief association;


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(17) two percent per year of allowable service for each year of the first 25 years of allowable service, Minneapolis police relief association;

(18) the greater of 2.5 percent per year of allowable service for each of the first 20 years of allowable service applied to the final salary base, or two percent per year of allowable service for each of the first 20 years of allowable service applied to highest patrol officer's salary base plus .5 percent of the final salary base per year of allowable service for each of the first three years of allowable service in excess of 20 years of allowable service, New Ulm police relief association;

(19) two percent per year of allowable service for each of the first 25 years of allowable service and 1.5 percent per year of allowable service in excess of 25 years of allowable service, Red Wing fire department relief association;

(20) 2.55 2.75 percent per year of allowable service for each of the first 20 years of allowable service, Richfield fire department relief association;

(21) 2.4 percent per year of allowable service for each of the first 20 years of allowable service and 1.3333 percent per year of allowable service in excess of 20 years of allowable service but not more than 27 years of allowable service, Richfield police relief association;

(22) for a former member with less than 20 years of allowable service on June 16, 1985, 2.6 percent, and for a former member with 20 or more years of allowable service on June 16, 1985, 2.6175 percent for each of the first 20 years of allowable service and, for each former member, one percent for each year of allowable service in excess of 20 years, but no more than 30 years, St. Louis Park fire department relief association;

(23) 1.9375 percent per year of allowable service for each of the first 20 years of allowable service, 2.25 percent per year of allowable service in excess of 20 years of allowable service but not more than 25 years of allowable service, and .5 percent per year of allowable service in excess of 25 years of allowable service, St. Paul fire department relief association;

(24) two percent per year of allowable service for each of the first 25 years of allowable service and .5 percent per year of allowable service in excess of 25 years of allowable service, St. Paul police relief association;

(25) 2.25 percent per year of allowable service for each of the first 20 years of allowable service and one percent per year of allowable service in excess of 20 years but not more than 25 years of allowable service and .5 percent per year of allowable service in excess of 25 years, Virginia fire department relief association;

(26) two percent per year of allowable service for each of the first 20 years of allowable service, one percent per year of allowable service in excess of 20 years but not more than 24 years of allowable service, three percent for the 25th year of allowable service and one percent per year of allowable service in excess of 25 years of allowable service but not more than 30 years of allowable service, West St. Paul firefighters relief association; and

(27) 2.333 percent for each of the first 20 years of allowable service, 1.333 percent for each year of allowable service in excess of 20 years but no more than 28 years, and .5 percent for each year of allowable service in excess of 25 years, Winona fire department relief association.

Sec. 3. Minnesota Statutes 1996, section 353B.08, subdivision 6, is amended to read:

Subd. 6. [DUTY DISABILITY BENEFIT AMOUNT.] (a) The duty disability benefit shall be an amount equal to the service pension amount to which the person would have been entitled if the person had credit for the greater of actual years of allowable service or 20 years of allowable service, had attained the minimum age for the receipt of a service pension, and had applied for a service pension rather than a disability benefit for the former members of the following consolidating relief associations:

(1) Albert Lea firefighters relief association;

(2) Albert Lea police relief association;


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(3) Anoka police relief association;

(4) Austin police relief association;

(5) Buhl police relief association;

(6) Chisholm police relief association;

(7) Duluth police relief association;

(8) Faribault fire department relief association;

(9) Mankato police benefit association;

(10) Minneapolis police relief association;

(11) New Ulm police relief association;

(12) Red Wing police relief association;

(13) St. Paul police relief association;

(14) South St. Paul police relief association; and

(15) Virginia police relief association.

(b) The duty disability benefit shall be an amount equal to 48 percent of the salary base for the former members of the following consolidating relief associations:

(1) Fridley police pension association;

(2) Richfield police relief association;

(3) Rochester fire department relief association;

(4) Rochester police relief association;

(5) St. Cloud fire department relief association;

(6) St. Cloud police relief association;

(7) St. Louis Park police relief association; and

(8) Winona police relief association.

(c) The duty disability benefit shall be an amount equal to 50 percent of the salary base for the former members of the following consolidating relief associations:

(1) Austin firefighters relief association;

(2) Crookston fire department relief association;

(3) Fairmont police benefit association;

(4) Mankato fire department relief association;


Journal of the House - 30th Day - Top of Page 1580

(5) Richfield fire department relief association;

(6) South St. Paul firefighters relief association; and

(7) (6) Virginia fire department relief association.

(d) The duty disability benefit shall be an amount equal to 45 percent of the salary base for the former members of the Crystal police relief association.

(e) The duty disability benefit shall be an amount equal to 40 percent of the salary base for the former members of the following consolidating relief associations:

(1) West St. Paul firefighters relief association; and

(2) West St. Paul police relief association.

(f) The duty disability benefit shall be the following for the former members of the consolidating relief associations as indicated:

(1) 52 percent of the salary base for former members who were disabled before January 31, 1994, and 48 percent of the salary base for former members who become disabled after January 31, 1994, Bloomington police relief association;

(2) 40 percent of the top salary for a patrol officer, Brainerd police relief association;

(3) $100 per month, Chisholm firefighters relief association;

(4) 37.5 percent of the salary base if the person has credit for less than ten years of allowable service, 43.75 percent of the salary base if the person has credit for more than nine years but less than 15 years of allowable service and 50 percent of the salary base if the person has credit for more than 14 years of allowable service credit, Columbia Heights fire department relief association, paid division;

(5) 43.75 percent of the salary base, Columbia Heights police relief association;

(6) 25 percent of the salary base if the person has credit for less than 12 years of allowable service and an additional amount equal to 2.5 percent of the salary base per year if allowable service for each year of allowable service in excess of 11 years of allowable service, not more than 50 percent, Crookston police relief association;

(7) 51.0625 percent of the salary base, Duluth firefighters relief association;

(8) 12.5 percent of the salary base if the person has credit for less than six years of allowable service, 2.5 percent of the salary base per year of allowable service if the person has more than five years of allowable service, but not more than 50 percent of the salary base, Faribault police benefit association;

(9) the dollar amount which equals the benefit which would be payable under chapter 176 for a comparable benefit which qualifies for a workers' compensation benefit for a first class disability, 75 percent of the amount payable in the event of a first class disability for a second class disability and 50 percent of the amount payable in the event of a first class disability for a third class disability, Hibbing firefighters relief association;

(10) $120 per month, Hibbing police relief association;

(11) 51.25 percent of the salary base for a first class disability, 41.25 percent of the salary base for a second class disability, and 31.25 percent of the salary base for a third class disability, Minneapolis fire department relief association;

(12) 40 percent of the salary base if the person has credit for less than 20 years of allowable service and two percent of the salary base per year of allowable service if the person has more than 19 years of allowable service, but not more than 50 percent, Red Wing fire department relief association;


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(13) 54 percent of the salary base, Richfield fire department relief association;

(14) 50 percent of the salary base if the person has credit for less than 20 years of allowable service and an amount equal to the service pension amount to which the person would have been entitled based on the applicable amount of allowable service if the person had attained the minimum age for the receipt of a service pension and had applied for a service pension rather than a disability benefit and if the person has credit for at least 20 years of allowable service, St. Louis Park fire department relief association;

(14) (15) 50 percent of the salary base if the person is not able to perform the duties of any other gainful employment, 39.375 percent of the salary base if the person is only able to perform the duties of light manual labor or office employment and 33.75 percent of the salary base if the person is able to perform the duties of other manual labor, St. Paul fire department relief association; and

(15) (16) 42.667 percent of the salary base, Winona fire department relief association.

Sec. 4. Minnesota Statutes 1996, section 353B.11, subdivision 3, is amended to read:

Subd. 3. [AMOUNT; SURVIVING SPOUSE BENEFIT.] (a) The surviving spouse benefit shall be 30 percent of the salary base for the former members of the following consolidating relief associations:

(1) Albert Lea firefighters relief association;

(2) Albert Lea police relief association;

(3) Anoka police relief association;

(4) Austin police relief association;

(5) Brainerd police benefit association;

(6) Crookston police relief association;

(7) Faribault fire department relief association; and

(8) West St. Paul firefighters relief association.

(b) The surviving spouse benefit shall be 25 percent of the salary base for the former members of the following consolidating relief associations:

(1) Chisholm police relief association;

(2) Duluth firefighters relief association;

(3) Duluth police pension association;

(4) Fairmont police benefit association;

(5) Red Wing fire department relief association;

(6) South St. Paul police relief association; and

(7) West St. Paul police relief association.

(c) The surviving spouse benefit shall be 24 percent of the salary base for the former members of the following consolidating relief associations:

(1) Fridley police pension association;


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(2) Richfield police relief association;

(3) Rochester fire department relief association;

(4) Rochester police relief association;

(5) Winona fire department relief association; and

(6) Winona police relief association.

(d) The surviving spouse benefit shall be 40 percent of the salary base for the former members of the following consolidating relief associations:

(1) Columbia Heights fire department relief association, paid division; and

(2) New Ulm police relief association; and

(3) Richfield fire department relief association.

(e) The surviving spouse benefit shall be $250 per month for the former members of the following consolidating relief associations:

(1) Hibbing firefighters relief association; and

(2) Hibbing police relief association.

(f) The surviving spouse benefit shall be 23.75 percent of the salary base for the former members of the following consolidating relief associations:

(1) Crystal police relief associations; and

(2) Minneapolis police relief association.

(g) The surviving spouse benefit shall be 32 percent of the salary base for the former members of the following consolidating relief associations:

(1) St. Cloud fire department relief association; and

(2) St. Cloud police relief association.

(h) The surviving spouse benefit shall be one-half of the service pension or disability benefit which the deceased member was receiving as of the date of death, or of the service pension which the deferred member would have been receiving if the service pension had commenced as of the date of death or of the service pension which the active member would have received based on the greater of the allowable service credit of the person as of the date of death or 20 years of allowable service credit if the person would have been eligible as of the date of death, for the former members of the following consolidating relief associations:

(1) Virginia fire department relief association; and

(2) Virginia police relief association.

(i) The surviving spouse benefit shall be the following for the former members of the consolidating relief associations as indicated:

(1) 30 percent of the salary base, reduced by any amount awarded or payable from the service pension or disability benefit of the deceased former firefighter to a former spouse of the member by virtue of the legal dissolution of the member's marriage to the former spouse if the surviving spouse married the member after the time of separation from active service, Austin firefighters relief association;


Journal of the House - 30th Day - Top of Page 1583

(2) 27.333 percent of the salary base, or one-half of the service pension payable to or accrued by the deceased former member, whichever is greater, Bloomington police relief association;

(3) 72.25 percent of the salary base, Buhl police relief association;

(4) 50 percent of the service pension which the active member would have received based on allowable service credit to the date of death and prospective service from the date of death until the date on which the person would have attained the normal retirement age, 50 percent of the service pension which the deferred member would have been receiving if the service pension had commenced as of the date of death or $175 per month if the deceased member was receiving a service pension or disability benefit as of the date of death, Chisholm firefighters relief association;

(5) two-thirds of the service pension or disability benefit which the deceased member was receiving as of the date of death, or of the service pension which the deferred member would have been receiving if the service pension had commenced as of the date of death or of the service pension which the active member would have received based on the greater of the allowable service credit of the person as of the date of death or 20 years of allowable service credit if the person would have been eligible as of the date of death, Columbia Heights police relief association;

(6) the greater of $300 per month or one-half of the service pension or disability benefit which the deceased member was receiving as of the date of death, or of the service pension which the deferred member would have been receiving if the service pension had commenced as of the date of death or of the service pension which the active member would have received based on the allowable service credit of the person as of the date of death if the person would have been eligible as of the date of death, Crookston fire department relief association;

(7) $100 per month, Faribault police benefit association;

(8) 60 percent of the service pension or disability benefit which the deceased member was receiving as of the date of death, or of the service pension which the deferred member would have been receiving if the service pension had commenced as of the date of death or of the service pension which the active member would have received based on the allowable service credit of the person as of the date of death if the person would have been eligible as of the date of death, Mankato fire department relief association;

(9) $175 per month, Mankato police benefit association;

(10) 26.25 percent of the salary base, Minneapolis fire department relief association;

(11) equal to the service pension or disability benefit which the deceased member was receiving as of the date of death, or of the service pension which the deferred member would have been receiving if the service pension had commenced as of the date of death or of the service pension which the active member would have received based on the allowable service credit of the person as of the date of death if the person would have been eligible as of the date of death, Red Wing police relief association;

(12) 78.545 percent of the benefit amount payable prior to the death of the deceased active, disabled, deferred, or retired firefighter if that firefighter's benefit was 55 percent of salary or would have been 55 percent of salary if the firefighter had survived to begin benefit receipt; or 80 percent of the benefit amount payable prior to the death of the deceased active, disabled, deferred, or retired firefighter if that firefighter's benefit was 54 percent of salary or would have been 54 percent of salary if the firefighter had survived to begin benefit receipt, Richfield fire department relief association;

(13) 40 percent of the salary base for a surviving spouse of a deceased active member, disabled member, or retired or deferred member with at least 20 years of allowable service, or the prorated portion of 40 percent of the salary base that bears the same relationship to 40 percent that the deceased member's years of allowable service bear to 20 years of allowable service for the surviving spouse of a deceased retired or deferred member with at least ten but less than 20 years of allowable service, St. Louis Park fire department relief association;

(13) (14) 26.6667 percent of the salary base, St. Louis Park police relief association;


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(14) (15) 27.5 percent of the salary base, St. Paul fire department relief association;

(15) (16) 20 percent of the salary base, St. Paul police relief association; and

(16) (17) 27 percent of the salary base, South St. Paul firefighters relief association.

Sec. 5. Minnesota Statutes 1996, section 353B.11, subdivision 4, is amended to read:

Subd. 4. [AMOUNT; SURVIVING CHILD BENEFIT.] (a) The surviving child benefit shall be eight percent of the salary base for the former members of the following consolidating relief associations:

(1) Fridley police pension association;

(2) Red Wing fire department relief association;

(3) Richfield police relief association;

(4) Rochester fire department relief association;

(5) Rochester police relief association;

(6) St. Cloud police relief association;

(7) St. Louis Park police relief association;

(8) South St. Paul firefighters relief association;

(9) Winona fire department relief association; and

(10) Winona police relief association.

(b) The surviving child benefit shall be $25 per month for the former members of the following consolidating relief associations:

(1) Anoka police relief association;

(2) Austin firefighters relief association;

(3) Austin police relief association;

(4) Faribault police benefit association;

(5) Hibbing firefighters relief association;

(6) Mankato police benefit association;

(7) South St. Paul police relief association; and

(8) Virginia fire department relief association.

(c) The surviving child benefit shall be ten percent of the salary base for the former members of the following consolidating relief associations:

(1) Albert Lea police relief association;

(2) Crookston police relief association;


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(3) Duluth firefighters relief association;

(4) Duluth police pension association;

(5) Faribault fire department relief association; and

(6) Minneapolis fire department relief association.

(d) The surviving child benefit shall be five percent of the salary base for the former members of the following consolidating relief associations:

(1) Columbia Heights fire department relief association, paid division;

(2) St. Paul police relief association; and

(3) West St. Paul firefighters relief associations.

(e) The surviving child benefit shall be $15 per month for the former members of the following consolidating relief associations:

(1) Crookston fire department relief association;

(2) Hibbing police relief association; and

(3) West St. Paul police relief association.

(f) The surviving child benefit shall be 7.5 percent of the salary base for the former members of the following consolidating relief associations:

(1) Bloomington police relief association; and

(2) Crystal police relief association.

(g) The surviving child benefit shall be the following for the former members of the consolidating relief associations as indicated:

(1) ten percent of the salary base if a surviving spouse benefit is also payable, that amount between ten percent of the salary base and 50 percent of the salary base as determined by the executive director of the public employees retirement association, based on the financial circumstances and need of the surviving child or surviving children, applied in a uniform manner, reflective to the extent practicable or determinable to the past administrative practices of the board of the consolidating relief association before the effective date of the consolidation if there is a surviving spouse but no surviving spouse benefit is also payable on account of the remarriage of the surviving spouse, or 50 percent of the salary base, payable in equal shares for more than one surviving child, if there is no surviving spouse, Albert Lea firefighters relief association;

(2) four percent of the salary base, Brainerd police benefit association;

(3) $125 per month if a surviving spouse benefit is also payable or an amount equal to the surviving spouse benefit, payable in equal shares if there is more than one surviving child, if no surviving spouse benefit is payable, Buhl police relief association;

(4) $15 per month, Chisholm firefighters relief association;

(5) $125 per month, Chisholm police relief association;

(6) $50 per month, Columbia Heights police relief association;


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(7) 6.25 percent of the salary base, Fairmont police benefit association;

(8) 12.5 percent of the service pension or disability benefit which the deceased member was receiving as of the date of death, or of the service pension which the deferred member would have been receiving if the service pension had commenced as of the date of death or of the service pension which the active member would have received based on the allowable service credit of the person as of the date of death if the person would have been eligible as of the date of death, Mankato fire department relief association;

(9) ten percent of the salary base if a surviving spouse benefit is also payable or an amount determined by the executive director of the public employees retirement association based on the financial circumstances and need of the surviving child or surviving children, applied in a uniform manner, and subject to the largest applicable amount surviving child benefit maximum if no surviving spouse benefit is also payable, Minneapolis police relief association;

(10) $25 per month if a surviving spouse benefit is also payable or an amount equal to the surviving spouse benefit, payable in equal shares if there is more than one surviving child, New Ulm police relief association;

(11) in an amount determined by the executive director of the public employees retirement association based on the financial circumstances and need of the surviving child or surviving children, applied in a uniform manner, reflective to the extent practicable or determinable to the past administrative practices of the board of the consolidating relief association before the effective date of the consolidation and not more than the largest surviving child benefit amount prescribed for any other actual or potential consolidating relief association as provided in this section, Red Wing police relief association;

(12) five percent of the salary base if a surviving spouse benefit is also payable or 15 percent of the salary base if no surviving spouse benefit is payable, 9.818 percent of the benefit payable to the firefighter or to which the firefighter would have been eligible at the time of death if that firefighter's benefit was or would have been 55 percent of salary and if a surviving spouse benefit is also payable or 29.454 percent if a surviving spouse benefit is not payable; or ten percent of the benefit payable to the firefighter or to which the firefighter would have been eligible at the time of death if that firefighter's benefit was or would have been 54 percent of salary and if a surviving spouse benefit is also payable or 30 percent if a surviving spouse benefit is not payable, Richfield fire department relief association;

(13) 5.3334 percent of the salary base, St. Cloud fire department relief association;

(14) five percent of the salary base if a surviving spouse benefit is also payable or 15 percent of the salary base if no surviving spouse benefit is also payable for the surviving child or children of a deceased active member, disabled member, or retired or deferred member with at least 20 years of active service, or the prorated portion of five percent of the salary base if a surviving spouse benefit is also payable or 15 percent of the salary base if no surviving spouse benefit is also payable that bears the same relationship to five or 15 percent that the deceased member's years of allowable service bear to 20 years of allowable service for the surviving child or children of a deceased retired or deferred member with at least ten but less than 20 years of allowable service, St. Louis Park fire department relief association;

(15) ten percent of the salary base, St. Paul fire department relief association; and

(16) $50 per month, Virginia police relief association.

Sec. 6. Minnesota Statutes 1996, section 353B.11, subdivision 5, is amended to read:

Subd. 5. [SURVIVOR BENEFIT MAXIMUM.] (a) No surviving children or surviving family maximum shall be applicable to former members of the following consolidating relief associations:

(1) Buhl police relief association;

(2) Chisholm firefighters relief association;

(3) Chisholm police relief association;


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(4) Hibbing firefighters relief association;

(5) Mankato police benefit association;

(6) New Ulm police relief association;

(7) Red Wing fire department relief association;

(8) Red Wing police relief association;

(9) St. Paul police relief association; and

(10) South St. Paul police relief association.

(b) The surviving children maximum shall be 24 percent of the salary base, if a surviving spouse benefit is also payable or 48 percent of the salary base, if no surviving spouse benefit is also payable, for the former members of the following consolidating relief associations:

(1) Fridley police pension association;

(2) Richfield police relief association;

(3) Rochester fire department relief association;

(4) Rochester police relief association;

(5) Winona fire department relief association; and

(6) Winona police relief association.

(c) The surviving family maximum shall be 50 percent of the salary base for the former members of the following consolidating relief associations:

(1) Anoka police relief association;

(2) Austin firefighters relief association;

(3) Austin police relief association;

(4) Duluth firefighters relief association; and

(5) Richfield fire department relief association; and

(6) St. Louis Park fire department relief association.

(d) The surviving family maximum shall be an amount equal to the service pension which a retiring member would have received based on 20 years of allowable service credit if the member had attained the age of at least 50 years in the case of an active member, or of the service pension which the deferred member would have been receiving if the service pension had commenced as of the date of death in the case of a deferred member, or of the service pension or disability benefit which the deceased member was receiving as of the date of death, for the former members of the following consolidating relief associations:

(1) Columbia Heights police relief association;

(2) Virginia fire department relief association; and

(3) Virginia police relief association.


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(e) The surviving children maximum shall be 25 percent of the salary base, if a surviving spouse benefit is also payable or 50 percent of the salary base, if no surviving spouse benefit is also payable, for the former members of the following consolidating relief associations:

(1) Duluth police pension association; and

(2) Fairmont police benefit association.

(f) The surviving children maximum shall be 22.5 percent of the salary base, if a surviving spouse benefit is also payable or 45 percent of the salary base, if no surviving spouse benefit is also payable, for the former members of the Crystal police relief association.

(g) The surviving children maximum shall be 16 percent of the salary base, if a surviving spouse benefit is also payable or 48 percent of the salary base, if no surviving spouse benefit is also payable, for the former members of the following consolidating relief associations:

(1) St. Cloud fire department relief association; and

(2) St. Cloud police relief association.

(h) The surviving children maximum shall be 20 percent of the salary base, if a surviving spouse benefit is also payable or 50 percent of the salary base, if no surviving spouse benefit is also payable, for the former members of the following consolidating relief associations:

(1) Albert Lea firefighters relief association;

(2) Albert Lea police relief association; and

(3) Faribault fire department relief association.

(i) The surviving family maximum shall be the following for the former members of the consolidating relief associations:

(1) 60 percent of the salary base, Bloomington police relief association;

(2) $450 per month, Crookston police relief association;

(3) 80 percent of the service pension or disability benefit which the deceased member was receiving as of the date of death, or of the service pension which the deferred member would have been receiving if the service pension had commenced as of the date of death or of the service pension which the active member would have received based on the greater of the allowable service credit of the person as of the date of death or 20 years of allowable service credit if the person would have been eligible as of the date of death, Mankato fire department relief association; and

(4) 98.182 percent of the benefit amount payable or to which the firefighter was eligible prior to the death of the firefighter if that firefighter's benefit was or would have been 55 percent of salary, or 100 percent of the benefit amount payable or to which the firefighter was eligible prior to the death of the firefighter if that firefighter's benefit was or would have been 54 percent of salary, Richfield fire department relief association; and

(5) 57.5 percent of the salary base, St. Paul fire department relief association.

(j) The surviving child maximum shall be the following for the former members of the consolidating relief associations:

(1) 20 percent of the top salary payable to a patrol officer, Brainerd police benefit association;

(2) ten percent of the salary base, if a surviving spouse benefit is also payable or 15 percent of the salary base, if no surviving spouse benefit is also payable, Columbia Heights fire department relief association, paid division;


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(3) $105 per month if a surviving spouse benefit is also payable or $90 per month if no surviving spouse benefit is also payable, Crookston fire department relief association;

(4) $125 per month, Faribault police benefit association;

(5) $30 per month if a surviving spouse benefit is also payable or $180 per month if no surviving spouse benefit is also payable, Hibbing police relief association;

(6) 25 percent of the salary base, if a surviving spouse benefit is also payable or 51.25 percent of the salary base, if no surviving spouse benefit is also payable, Minneapolis fire department relief association;

(7) 17.5 percent of the salary base, if a surviving spouse benefit is also payable or 50 percent of the salary base, if no surviving spouse benefit is also payable, Minneapolis police relief association;

(8) 24 percent of the salary base, St. Louis Park police relief association;

(9) 23 percent of the salary base, if a surviving spouse benefit is also payable or 50 percent of the salary base, if no surviving spouse benefit is also payable, South St. Paul firefighters relief association;

(10) ten percent of the salary base, West St. Paul firefighters relief association; and

(11) $30 per month if a surviving spouse benefit is also payable or $75 per month if no surviving spouse benefit is also payable, West St. Paul police relief association.

Sec. 7. Laws 1943, chapter 196, section 4, as amended by Laws 1951, chapter 44, section 1, Laws 1955, chapter 88, section 1, Laws 1978, chapter 675, section 1, Laws 1991, chapter 28, section 1, and Laws 1992, chapter 428, section 1, is amended to read:

Sec. 4. [RETIREMENT AGE, PENSION.] When any member of the association reaches the age of 55 years, he may retire and then shall receive a pension as long as he lives, at the following rates:

(a) When he has served as a member of the police department for a period of 20 years or more, excluding temporary employment or probationary periods. Such retired member shall be paid each month a pension equal to one-half of his average monthly earnings during the last preceding three years of his service with said police department, plus an additional $3 per month for each year of service not to exceed 20 years.

(b) An additional $8 per month for each year of service over 20 that he has served as a member of such police department after the age of 55 years, not to exceed five years for purposes of pension computation,

(c) In the event he retires after reaching the age of 55 or more and after having been a member of the department for at least 15 years, but before having served 20 years in the department, the amount of pension which he received shall be that proportion of, pension equal to one-half of his average monthly earnings during the last preceding three years of his service with said police department, plus an additional $3 per month for each year of service. Major fractions of years of service to be treated as one year and minor fractions disregarded,

(d) In no event shall temporary employment or employment for probationary period be considered in computing pension allowances hereunder,

(e) When a service pensioner or an active member of the police department who has 20 years or more of service, dies, leaving a surviving spouse or children, a pension shall be paid as follows:

1. To the surviving spouse a pension of $375 a month for life,

2. To the child or children, if their surviving parent is living, a pension of $10 per month for each child not over sixteen years of age, provided, the total pension hereunder for surviving spouse and children of the deceased member, shall not exceed the sum of $395 per month,


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3. A child or children of a deceased member, or after the death or remarriage of their surviving parent, be entitled to receive a pension or pensions of $10 per month until they have reached the age of 16 years.

(f) The city council may, by resolution, increase the pension payable to a surviving spouse by an amount equal to any increase in the revised consumer price index for all urban consumers for the Minneapolis-St.Paul metropolitan area prepared by the United States Department of Labor, provided that no increase may exceed five percent a year.

Sec. 8. Laws 1965, chapter 705, section 1, subdivision 4, is amended to read:

Subd. 4. [INDEPENDENT SCHOOL DISTRICT NO. 625; APPLICABILITY OF CERTAIN LAWS.] (a) As of July 1, 1965, the organization, operation, maintenance and conduct of the affairs of the converted district shall be governed by general laws relating to independent districts, except as otherwise provided in Extra Session Laws 1959, Chapter 71, as amended, and all special laws and charter provisions relating only to the converted district are repealed.

(b) Where an existing pension law is applicable to employees of the special district, such law shall continue to be applicable in the same manner and to the same extent to employees of the converted district. Notwithstanding this requirement, pipefitters and associated trades personnel with coverage by the pipefitters local 455 pension plan under a collective bargaining agreement who either were first employed after May 1, 1997, or, if first employed before May 2, 1997, elected exclusion from coverage under section 12 are not covered by the public employees retirement association.

(c) General laws applicable to independent school districts wholly or partly within cities of the first class shall not be applicable to the converted district.

(d) The provision of the statutes applicable only to teachers retirement fund associations in cities of the first class, limiting the amount of annuity to be paid from public funds, limiting the taxes to be levied to carry out the plan of such associations, and limiting the amount of annuities to be paid to beneficiaries, all as contained in Minnesota Statutes, Section 135.24, shall not be applicable to such converted district, but the statutes applicable to such special district prior to the conversion shall continue to be applicable and the pension plan in operation prior to the conversion shall continue in operation until changed in accordance with law, and the teacher tenure law applicable to the special district shall continue to apply to the converted district in the same manner and to the same extent to teachers in the converted district; provided further, where existing civil service provisions of any law or charter are applicable to special district employees, such provision shall continue to be applicable in the same manner and to the same extent to employees of the converted district. Notwithstanding any contrary provision of Extra Session Laws 1959, Chapter 71, as amended, if there was in the special district a teachers retirement fund association operating and existing under the provisions of Laws 1909, Chapter 343, and all acts amendatory thereof, then such teachers retirement fund association shall continue to exist and operate in the converted district under and to be subject to the provisions of Laws 1909, Chapter 343, and all acts amendatory thereof, to the same extent and in the same manner as before the conversion, and, without limiting the generality of the foregoing, such teachers retirement fund association shall continue, after the conversion as before the conversion, to certify to the same authorities the amount necessary to raise by taxation in order to carry out its retirement plan, and it shall continue, after the conversion as before the conversion, to be the duty of said authorities to include in the tax levy for the ensuing year a tax in addition to all other taxes sufficient to produce so much of the sums so certified as said authorities shall approve, and such teachers retirement fund association shall not be subject after the conversion to any limitation on payments to any beneficiary from public funds or on taxes to be levied to carry out the plan of such association to which it was not subject before the conversion.

Sec. 9. Laws 1967, chapter 798, section 2, is amended to read:

Sec. 2. [RICHFIELD FIRE DEPARTMENT RELIEF ASSOCIATION; DISABILITY PENSION AMOUNT.] In lieu of the disability pension and limitation as provided for in Minnesota Statutes, Section 424.20, the firemen's fire department relief association in the city of Richfield may provide for disability benefits, as defined in Minnesota Statutes, Section 424.19, of not more than a sum equal to one-half 54 percent of the salary, as payable from time to time during the period of pension payment to firemen firefighters of the highest grade, not including officers of the department, in the employ of the city of Richfield, such. The disability pension to be is payable as the bylaws of the association provide.


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Sec. 10. Laws 1967, chapter 798, section 4, is amended to read:

Sec. 4. [SERVICE PENSION.]

Subdivision 1. [AGE AT WHICH SERVICE PENSION IS PAYABLE.] A member of the fire department, who enters the employment of the department on or after January 1, 1968, shall not be eligible to receive a service pension until he the person reaches the age of 55 years, in lieu of the eligibility requirement pertaining to age provided in Minnesota Statutes, Sections 424.21 and 424.22.

Subd. 2. [SERVICE PENSION AMOUNT.] (a) If its bylaws so provide, in lieu of the service pension amount set forth in Minnesota Statutes, section 424.21, the Richfield fire department relief association may provide a service pension, as specified in paragraph (b) or (c), as applicable, to a retiring firefighter with at least 20 years of service, based on a percentage of the salary as payable from time to time during the period of pension payment to firefighters of the highest grade, not including officers of the department, in the employ of the city of Richfield.

(b) If the eligible firefighter terminated service before the effective date of the alternative benefit improvement authorized by Minnesota Statutes, section 423A.04, the service pension is 54 percent of salary as defined in paragraph (a).

(c) If the eligible firefighter terminates service on or after the effective date of the alternative benefit improvement authorized by Minnesota Statutes, section 423A.04, the service pension is 55 percent of salary as defined in paragraph (a).

Sec. 11. Laws 1992, chapter 563, section 5, as amended by Laws 1996, chapter 448, article 2, section 1, is amended to read:

Sec. 5. [ST. PAUL POLICE AND FIRE CONSOLIDATION ACCOUNTS; LIMITATION ON POSTRETIREMENT BENEFIT REDUCTIONS.]

(a) A monthly service pension or retirement benefit payment from the St. Paul fire department consolidation account or the St. Paul police consolidation account may not be reduced in amount to an amount that is less than that received by the person for the immediately previous month.

(b) The service pension or retirement benefit payable from the St. Paul fire department consolidation account or from the St. Paul police consolidation account to a person who becomes newly entitled to that service pension or retirement benefit may not be an amount that is less than the service pension or retirement benefit then payable to a comparably situated pensioner or benefit recipient of that consolidation account.

(c) The limitation in paragraph (a) or (b) may not be construed to limit the power of the executive director of the public employees retirement association to require proof of continuing eligibility for receipt of a disability benefit or a survivor benefit, or to require the reduction in amount or elimination of a disability benefit in the event of changed medical circumstances, or to require the reduction in amount or elimination of a survivor benefit in the event of changes in eligibility.

Sec. 12. [PUBLIC PENSION COVERAGE EXCLUSION FOR CERTAIN TRADES PERSONNEL.]

Subdivision 1. [EXCLUSION ELECTION.] (a) A pipefitter or an associated tradesperson who is employed by independent school district No. 625 (St. Paul) on the effective date of this section and who has pension coverage by the pipefitters local 455 pension plan under a collective bargaining agreement may elect to be excluded from pension coverage by the public employees retirement association.

(b) The exclusion election under this section must be in writing on a form prescribed by the executive director of the public employees retirement association and filed with the executive director. The exclusion election is irrevocable. Authority to make the coverage exclusion election expires on January 1, 1998.

Subd. 2. [ELIGIBILITY FOR MEMBER CONTRIBUTION REFUND.] A person who has less than three years of allowable service in the public employees retirement association and who elects the pension coverage exclusion under subdivision 1 is entitled to immediately apply for a refund under Minnesota Statutes, section 353.34, subdivisions 1 and 2, following the effective date of the exclusion election.


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Subd. 3. [DEFERRED ANNUITY ELIGIBILITY.] In lieu of the refund under subdivision 2, a person who elects the pension coverage exclusion under subdivision 1 is entitled to a deferred retirement annuity under Minnesota Statutes, sections 353.34, subdivision 3, and 353.71, subdivision 2, based on any length of allowable service credit under Minnesota Statutes, section 353.01, subdivision 16, to the credit of the person as of the date of the coverage exclusion election.

Sec. 13. [RICHFIELD FIRE DEPARTMENT RELIEF ASSOCIATION; SURVIVOR BENEFIT AMOUNTS.]

Subdivision 1. [ELIGIBILITY.] The Richfield fire department relief association, if its bylaws so provide, may provide surviving spouse and surviving child benefits as specified in subdivisions 2 and 3. For purposes of this section, the definitions of surviving spouse and surviving child as defined in Minnesota Statutes, section 424.24, subdivision 2, apply. The benefits set forth in subdivisions 2 and 3 are in lieu of the survivor benefits set forth in Minnesota Statutes, section 424.24, subdivision 1.

Subd. 2. [SURVIVING SPOUSE BENEFIT AMOUNT.] (a) If the retirement benefit amount for the firefighter was computed under section 2, subdivision 2, paragraph (c), the surviving spouse benefit amount is 78.545 percent of the benefit amount payable prior to the death of the primary annuitant.

(b) If the firefighter was receiving a disability benefit under section 1, or a retirement benefit under section 2, subdivision 2, paragraph (b), the surviving spouse benefit amount is 80 percent of the benefit amount payable prior to the death of the primary annuitant.

(c) If the death of the active, disabled, deferred, or retired firefighter occurs prior to the commencement of benefit payments, the surviving spouse benefit amount is to be computed under paragraph (a) if the firefighter would have been eligible for an annuity under section 2, subdivision 2, paragraph (c), at the time of death, based on the benefit the firefighter would have received if benefits had commenced prior to death.

(d) If the death of the active, disabled, deferred, or retired firefighter occurs prior to the commencement of benefit payments, the surviving spouse benefit amount is to be computed under paragraph (b) if the firefighter would have been eligible for an annuity under section 1 or 2, subdivision 2, paragraph (b), at the time of death, based on the benefit the firefighter would have received if benefits had commenced prior to death.

Subd. 3. [SURVIVING CHILD BENEFIT AMOUNT.] (a) If a surviving spouse benefit is payable under subdivision 2, paragraph (a) or (c), each surviving child may also receive a benefit equal to 9.818 percent of the benefit payable to the firefighter or to which the firefighter would have been eligible at the time of death. If there is no surviving spouse, but benefits would be payable under subdivision 2, paragraph (a) or (c), if there was, each surviving child may receive a benefit of 29.454 percent of the benefit payable to the firefighter or to which the firefighter would have been eligible at the time of death. If a surviving child benefit or benefits are paid under this paragraph, the maximum of the combination of survivor benefits under this subdivision and subdivision 2 when these benefits commence is 98.182 percent of the benefit amount payable or to which the firefighter was eligible prior to the death of the firefighter.

(b) If a surviving spouse benefit is payable under subdivision 2, paragraph (b) or (d), each surviving child may also receive a benefit equal to ten percent of the benefit payable to the firefighter or to which the firefighter would have been eligible at the time of death. If there is no surviving spouse, but benefits would be payable under subdivision 2, paragraph (b) or (d), if there was, each surviving child may receive a benefit of 30 percent of the benefit payable to the firefighter or to which the firefighter would have been eligible at the time of death. If a surviving child benefit or benefits are paid under this paragraph, the maximum of the combination of survivor benefits under this subdivision and subdivision 2 when these benefits commence is 100 percent of the benefit amount payable or to which the firefighter was eligible prior to the death of the firefighter.

Sec. 14. [SURVIVOR BENEFIT DURATION.]

Subdivision 1. [DURATION OF SURVIVING SPOUSE BENEFITS.] A surviving spouse benefit under section 3 is payable to a surviving spouse of a deceased active, disabled, deferred, or retired Richfield firefighter meeting the definition set forth in Minnesota Statutes, section 424.24, subdivision 2, paragraph (a), for the life of that person.


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Subd. 2. [DURATION OF SURVIVING CHILD BENEFIT.] A surviving child benefit under section 3 is payable to a surviving child of a deceased active, disabled, deferred, or retired Richfield firefighter meeting the definition set forth in Minnesota Statutes, section 424.24, subdivision 2, paragraph (b), until the person reaches the age of 18.

Sec. 15. [ST. PAUL POLICE AND FIRE CONSOLIDATION ACCOUNTS; BENEFIT FLOOR FOR CERTAIN LOCAL RELIEF ASSOCIATION BENEFIT RECIPIENTS.]

(a) Notwithstanding Minnesota Statutes, chapter 353A, the benefit floor provided in paragraph (c) applies to the eligible benefit recipients specified in paragraph (b). An eligible benefit recipient is entitled to a service pension or survivor benefit, whichever applies, as calculated under the applicable relief association benefit plan provisions and the applicable provisions of Minnesota Statutes, chapter 353A, or the benefit floor amount, whichever is greater.

(b) An eligible benefit recipient is a person who is either:

(1) a vested former active member of the former St. Paul fire department relief association or the former St. Paul police relief association who terminated active service prior to the date of the consolidation of the relief association with the public employees police and fire plan; or

(2) the survivor of a vested former active member of the former St. Paul fire department relief association or the former St. Paul police relief association who terminated active service prior to the date of the consolidation of the relief association with the public employees police and fire plan.

(c) The benefit floor amount is an amount equal to the highest service pension, surviving spouse benefit, or surviving child benefit, whichever applies, then currently payable to any comparable eligible benefit recipient.

Sec. 16. [JACKSON MEDICAL CENTER; PENSION COVERAGE FOR TRANSFERRED EMPLOYEES.]

Subdivision 1. [AUTHORIZATION.] This section applies if the Jackson medical center is sold, leased, or transferred to a private entity, nonprofit corporation, or public corporation. Notwithstanding any provision of Minnesota Statutes, sections 356.24 and 356.25 to the contrary, to facilitate the orderly transition of employees affected by the sale, lease, or transfer, the city may, at its discretion, make, from assets to be transferred to the private entity, nonprofit corporation, or public corporation, payments to a qualified pension plan established for the transferred employees by the private entity, nonprofit corporation, or public corporation to provide benefits substantially similar to those the employees would have been entitled to under the provisions of the public employees retirement association, Minnesota Statutes, sections 353.01 to 353.46.

Subd. 2. [TREATMENT OF TERMINATED, NONVESTED EMPLOYEES; ELIGIBILITY.] (a) An eligible individual is an individual who:

(1) is an employee of the Jackson medical center immediately prior to the sale, lease, or transfer of that facility to a private entity, nonprofit corporation, or public corporation;

(2) is terminated at the time of the sale, lease, or transfer; and

(3) had less than three years of service credit in the public employees retirement association plan at the date of termination.

(b) For an eligible individual under paragraph (a), the city may make a member contribution equivalent payment under subdivision 3.

Subd. 3. [MEMBER CONTRIBUTION EQUIVALENT PAYMENT.] The member contribution equivalent payment is an amount equal to the total refund provided by Minnesota Statutes, section 353.34, subdivisions 1 and 2. To be eligible for the member contribution equivalent payment, the individual in subdivision 2, paragraph (a), must apply for a refund under Minnesota Statutes, section 353.34, subdivisions 1 and 2, within one year of termination. A member contribution equivalent amount exceeding $200 must be made directly to an individual retirement account under section 408(a) of the federal Internal Revenue Code, as amended, or to another qualified plan. A member contribution equivalent amount of $200 or less may, at the preference of the individual, be made to the individual or to an individual retirement account under section 408(a) of the federal Internal Revenue Code, as amended, or to another qualified plan.


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Sec. 17. [MELROSE HOSPITAL AND PINE VILLA; RETIREMENT.]

Subdivision 1. [TRANSFERRED EMPLOYEES.] This section applies if the Melrose hospital and Pine Villa are sold, leased, or transferred to a private entity or public corporation. Notwithstanding any provision of Minnesota Statutes, sections 356.24 and 356.25, to the contrary, to facilitate the orderly transition of employees affected by the sale, lease, or transfer, the Melrose hospital and Pine Villa may, in their discretion, make, from assets to be transferred to the private entity or public corporation, payments to a qualified pension plan established for the transferred employees by the private entity or public corporation, to provide benefits substantially similar to those the employees would have been entitled to under the provisions of the public employees retirement association, Minnesota Statutes, sections 353.01 to 353.46.

Subd. 2. [TREATMENT OF TERMINATED, NONVESTED EMPLOYEES.] (a) An eligible individual is an individual who:

(1) is an employee of the Melrose hospital and Pine Villa immediately prior to the sale, lease, or transfer of that facility to a private entity or public corporation;

(2) is terminated at the time of the sale, lease, or transfer; and

(3) had less than three years of service credit in the public employees retirement association plan at the date of termination.

(b) For an eligible individual under paragraph (a), the Melrose hospital and Pine Villa may make a member contribution equivalent payment under paragraph (c).

(c) The member contribution equivalent payment is an amount equal to the total refund provided by Minnesota Statutes, section 353.34, subdivisions 1 and 2. To be eligible for the member contribution equivalent payment, the individual in paragraph (a) must apply for a refund under Minnesota Statutes, section 353.34, subdivisions 1 and 2, within one year of termination. A member contribution equivalent amount exceeding $200 must be made directly to an individual retirement account under section 408(a) of the federal Internal Revenue Code, as amended, or to another qualified plan. A member contribution equivalent amount of $200 or less may, at the preference of the individual, be made to the individual or to an individual retirement account under section 408(a) of the federal Internal Revenue Code, as amended, or to another qualified plan.

Sec. 18. [TRACY MUNICIPAL HOSPITAL AND CLINIC; PENSION COVERAGE FOR TRANSFERRED EMPLOYEES.]

Subdivision 1. [AUTHORIZATION.] This section applies if the Tracy municipal hospital and clinic is sold, leased, or transferred to a private entity, nonprofit corporation, or public corporation. Notwithstanding any provision of Minnesota Statutes, sections 356.24 and 356.25, to the contrary, to facilitate the orderly transition of employees affected by the sale, lease, or transfer, the city may, at its discretion, make, from assets to be transferred to the private entity, nonprofit corporation, or public corporation, payments to a qualified pension plan established for the transferred employees by the private entity, nonprofit corporation, or public corporation, to provide benefits substantially similar to those the employees would have been entitled to under the provisions of the public employees retirement association, Minnesota Statutes, sections 353.01 to 353.46.

Subd. 2. [TREATMENT OF TERMINATED, NONVESTED EMPLOYEES; ELIGIBILITY.] (a) An eligible individual is an individual who:

(1) is an employee of the Tracy municipal hospital and clinic immediately prior to the sale, lease, or transfer of that facility to a private entity, nonprofit corporation, or public corporation;

(2) is terminated at the time of the sale, lease, or transfer; and

(3) had less than three years of service credit in the public employees retirement association plan at the date of termination.

(b) For an eligible individual under paragraph (a), the city may make a member contribution equivalent payment under subdivision 3.


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Subd. 3. [MEMBER CONTRIBUTION EQUIVALENT PAYMENT.] The member contribution equivalent payment is an amount equal to the total refund provided by Minnesota Statutes, section 353.34, subdivisions 1 and 2. To be eligible for the member contribution equivalent payment, the individual in subdivision 2, paragraph (a), must apply for a refund under Minnesota Statutes, section 354.34, subdivisions 1 and 2, within one year of termination. A member contribution equivalent amount exceeding $200 must be made directly to an individual retirement account under section 408(a) of the federal Internal Revenue Code, as amended, or to another qualified plan. A member contribution equivalent amount of $200 or less may, at the preference of the individual, be made to the individual or to an individual retirement account under section 408(a) of the federal Internal Revenue Code, as amended, or to another qualified plan.

Sec. 19. [EVELETH POLICE AND FIREFIGHTERS; BENEFIT INCREASE.]

Notwithstanding any general or special law to the contrary, in addition to the current pensions and other retirement benefits payable, the pensions and retirement benefits payable to retired police officers and firefighters and their surviving spouses by the Eveleth police and fire trust fund are increased by $100 a month. Increases are retroactive to January 1, 1997.

Sec. 20. [LEGISLATIVE INTENT.]

The revisions to the Richfield fire department relief association benefit plan in sections 2 to 6, 9, 10, 13, 14, and 20 and the retroactive application of sections 9, 10, 13, and 14, as indicated in section 21, paragraph (b), are intended to encourage the consolidation of this relief association with the public employees retirement association, in recognition of the administrative efficiencies and potential cost savings expected to occur, and in recognition of characteristics unique to this association at no expense to the State or the public employees retirement association.

Sec. 21. [EFFECTIVE DATE.]

(a) Sections 1, 8, and 12 are effective on the day following approval by majority vote of the board of independent school district No. 625 (St. Paul) and compliance with Minnesota Statutes, section 645.021.

(b) Sections 2 to 6, 9, 10, 13, 14, and 20 are effective on the day following approval by the Richfield city council and compliance with Minnesota Statutes, section 645.021. Sections 9, 10, 13, and 14 apply to individuals who become service pensioners, disabilitants, or survivors of firefighters who terminated service on or after the effective date of Laws 1967, chapter 798. Retroactive payments and payments to an estate are not authorized.

(c) Section 7 is effective on approval by the Nashwauk city council and compliance with Minnesota Statutes, section 645.021.

(d) Sections 11 and 15 are effective on the day following approval by the city council of the city of St. Paul and compliance with Minnesota Statutes, section 645.021, subdivision 3. Sections 11 and 15 must both be approved if either section is to be effective. Sections 11 and 15 are not intended to result in a reduction in the benefit or pension paid to any benefit recipient or service pensioner.

(e) Section 16 is effective on the day following approval by the Jackson city council and compliance with Minnesota Statutes, section 645.021.

(f) Section 17 is effective on the day following approval by the Melrose city council and compliance with Minnesota Statutes, section 645.021.

(g) Section 18 is effective on the day following approval by the Tracy city council and compliance with Minnesota Statutes, section 645.021.

(h) Section 19 is effective on the day following approval by the Eveleth city council and compliance with Minnesota Statutes, section 645.021.


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ARTICLE 3

GENERAL EMPLOYEE RETIREMENT

MODIFICATIONS

Section 1. Minnesota Statutes 1996, section 352.96, subdivision 2, is amended to read:

Subd. 2. [PURCHASE OF SHARES.] The amount of compensation so deferred may be used to purchase:

(1) shares in the Minnesota supplemental investment fund established in section 11A.17;

(2) saving accounts in federally insured financial institutions;

(3) life insurance contracts, fixed annuity and variable annuity contracts from companies that are subject to regulation by the commissioner of commerce; or

(4) investment options from open-end investment companies registered under the federal Investment Company Act of 1940, United States Code, title 15, sections 80a-1 to 80a-64;

(5) investment options from a firm that is a registered investment advisor under the Investment Advisors Act of 1940, United States Code, title 15, section 80b-1 to 80b-21;

(6) investment options of a bank as defined in United States Code, title 15, section 80b-2, subsection (a), paragraph (2), or a bank holding company as defined in the Bank Holding Company Act of 1956, United States Code, title 12, section 1841, subsection (a), paragraph (1); or

(7) a combination of clause (1), (2), or (3), (4), (5), or (6), as provided by the plan as specified by the participant.

The shares accounts or contracts purchased shall stand in the name of the state or other employing unit, for the officer or employee whose deferred compensation purchased the shares, until distributed to the officer or employee in a manner agreed upon by the employee and the executive director of the Minnesota state retirement system, acting for the employer. All amounts contributed to the deferred compensation plan and all earnings on those amounts will be held for the exclusive benefit of the plan participants and beneficiaries. These amounts will be held in trust, in custodial accounts, or in qualifying annuity contracts as required by federal law and in accordance with Minnesota Statutes, section 356A.06, subdivision 1. This subdivision does not authorize an employer contribution, except as authorized in section 356.24, paragraph (a), clause (4). The state, political subdivision, or other employing unit is not responsible for any loss that may result from investment of the deferred compensation.

Sec. 2. Minnesota Statutes 1996, section 352.96, subdivision 3, is amended to read:

Subd. 3. [EXECUTIVE DIRECTOR TO ADMINISTER SECTION.] This section must be administered by the executive director of the system with the advice and consent of the board of directors under subdivision 4. Fiduciary activities of the deferred compensation plan must be undertaken in a manner consistent with chapter 356A. If the state board of investment so elects, it may solicit bids for options under subdivision 2, clauses (2) and, (3), (4), (5), and (6). The state board of investment may retain consulting services to assist it in soliciting and evaluating bids and in the periodic review of companies offering options under subdivision 2, clause clauses (3), (4), (5), and (6). The periodic review must occur at least every two years. The state board of investment may annually establish a budget for its costs in the soliciting, evaluating, and periodic review processes. The state board of investment may charge a proportional share of all costs related to the periodic review to each company currently under contract and may charge a proportional share of all costs related to soliciting and evaluating bids to each company selected by the state board. All contracts must be approved before execution by the state board of investment. Contracts must provide that all options in subdivision 2 must: be presented in an unbiased manner and in a manner that conforms to rules adopted by the executive director, be reported on a periodic basis to all employees participating in the deferred compensation program, and not be the subject of unreasonable solicitation of state employees to participate in the program. The contract may not call for any person to jeopardize the tax-deferred status of money invested by state employees under this section. All costs or fees in relation to the options provided under subdivision 2, clause clauses (3), (4), (5), and (6), must be paid by the underwriting companies ultimately selected by the state board of investment.


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Sec. 3. Minnesota Statutes 1996, section 352.96, subdivision 6, is amended to read:

Subd. 6. [EXEMPTION FROM PROCESS.] As money to which legal title is vested in the state of Minnesota , No amount of deferred compensation is assignable or subject to execution, levy, attachment, garnishment, or other legal process, except as provided in section 518.58, 518.581, or 518.611.

Sec. 4. Minnesota Statutes 1996, section 354.092, subdivision 1, is amended to read:

Subdivision 1. [DEFINITION.] A sabbatical leave for the purpose of this section means a sabbatical leave as defined in section 125.18 or the applicable personnel policy of the Minnesota state university and community college boards colleges and universities.

Sec. 5. Minnesota Statutes 1996, section 354.092, subdivision 3, is amended to read:

Subd. 3. [EMPLOYER AND EMPLOYEE CONTRIBUTIONS.] Employer contributions and deductions for employee contributions at the applicable rate specified in section 354.42 must be made by the employing unit from based on the full normal base contract salary that would have been paid to the member for a if the member were not on sabbatical leave. The member may also make direct payment of employee contributions at the appropriate rates specified in section 354.42 based upon the difference between the salary received for the sabbatical leave and the salary received for a comparable period during the year immediately preceding the leave. This direct payment must be made by the end of the fiscal year following the fiscal year in which the leave of absence terminated and must be without interest. The employer must meet the reporting and remittance requirements under section 354.52.

Sec. 6. Minnesota Statutes 1996, section 354.092, subdivision 4, is amended to read:

Subd. 4. [SERVICE CREDIT.] If the employee contributions made under this section are less than the employee contributions made for a comparable period during the year immediately preceding the leave, the allowable and formula service credit of the member shall be prorated according to section 354.05, subdivision 25, clause (3), except that if the member is paid full salary for any sabbatical leave of absence, either past or prospective, the allowable and formula service credit shall not be prorated. A member may not receive more than three years of allowable service credit in any ten consecutive years under this section unless the allowable service credit was paid for by the member before July 1, 1962. For sabbatical leaves that begin after June 30, 1986, the required employer contributions specified in section 354.42 must be paid by the employing unit within 30 days after the association's written notification to the employing unit of the amount due. Notwithstanding the provisions of any agreements to the contrary, employee and employer contributions may not be made to receive allowable service credit under this section if the member does not retain the right to full reinstatement both during and at the end of the sabbatical leave.

Sec. 7. Minnesota Statutes 1996, section 354B.25, is amended by adding a subdivision to read:

Subd. 1a. [ADVISORY COMMITTEE.] (a) A committee is created to advise the state board of investment and the board of trustees of the Minnesota state colleges and universities concerning administration of the individual retirement account plan and the supplemental retirement plan established in chapter 354C. The exclusive representatives of the state university instructional unit, the community college instructional unit, and the technical college instructional unit shall each appoint two members to the committee. The exclusive representatives of the general professional unit, the supervisory employees unit, and the state university administrative unit shall each appoint one member to the committee. The chancellor of the Minnesota state colleges and universities shall appoint three members, at least one of whom shall be a personnel administrator. No member of the committee shall be retired. Members serve at the pleasure of the applicable appointing authority, but no member shall serve for more than a total of five years. Members shall be reimbursed from the administrative expense account of the individual retirement account plan for expenses as provided in section 15.059, subdivision 3.

(b) The committee shall:

(1) advise the board of trustees of the Minnesota state colleges and universities on the structure and operation of the individual retirement account plan and the supplemental retirement plan;


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(2) along with any other consultants selected by the board, advise the state board of investment on selection of financial institutions and on the type of investment products to be offered by these institutions for the plans;

(3) advise the board of trustees of the Minnesota state colleges and universities on administration of the plans, including selection of a third-party plan administrator, if any, for the individual retirement account plan.

(c) The board of trustees of the Minnesota state colleges and universities shall provide the advisory committee with meeting space and other administrative support.

(d) Expenses of the advisory committee are considered administrative expenses of the plans under subdivision 5 and Minnesota Statutes, section 354C.12, subdivision 4, and must be allocated between the two plans in proportion to the market value of the total assets of the plans as of the most recent prior audited annual financial report.

Sec. 8. Minnesota Statutes 1996, section 354B.25, subdivision 5, is amended to read:

Subd. 5. [INDIVIDUAL RETIREMENT ACCOUNT PLAN ADMINISTRATIVE EXPENSES.] (a) The reasonable and necessary administrative expenses of the individual retirement account plan must be paid by plan participants in the following manner:

(1) from plan participants with amounts invested in the Minnesota supplemental investment fund, the plan administrator may charge an administrative expense assessment as provided in section 11A.17, subdivisions 10a and 14; and

(2) from plan participants with amounts through annuity contracts and custodial accounts purchased under subdivision 2, paragraph (a), the plan administrator may charge an administrative expense assessment of a designated amount, not to exceed two percent of member and employer contributions, as those contributions are made.

(b) Any administrative expense charge that is not actually needed for the administrative expenses of the individual retirement account plan must be refunded to member accounts.

(c) The board of trustees shall report annually, before October 1, to the advisory committee created in subdivision 1a on administrative expenses of the plan. The report must include a detailed accounting of charges for administrative expenses collected from plan participants and expenditure of the administrative expense charges. The administrative expense charges collected from plan participants must be kept in a separate account from any other funds under control of the board of trustees and may be used only for the necessary and reasonable administrative expenses of the plan.

Sec. 9. Minnesota Statutes 1996, section 354C.12, subdivision 1, is amended to read:

Subdivision 1. [BASIC CONTRIBUTIONS AND DEDUCTIONS.] (a) The employer of personnel covered by the supplemental retirement plan as provided in section 354C.11 shall deduct a sum equal to five percent of the annual salary of the person between $6,000 and $15,000. The employer may accomplish this deduction by making equal deductions each payroll period, based on anticipated annual salary. The employer may adjust these deductions as necessary to deduct the correct amount annually. Deductions cease upon termination of employment covered by the supplemental retirement plan.

(b) The basic contribution deduction must be made in the same manner as other retirement deductions are made from the salary of the person under section 352.04, subdivision 4; 352D.04, subdivision 2; 354.42, subdivision 2; or 354A.12, whichever applies.

(c) The employer shall also make a contribution to the supplemental retirement plan on behalf of covered personnel equal to the salary deduction made under paragraph (a).

Sec. 10. Minnesota Statutes 1996, section 354C.12, subdivision 4, is amended to read:

Subd. 4. [ADMINISTRATIVE EXPENSES.] The board of trustees of the Minnesota state colleges and universities is authorized to pay the necessary and reasonable administrative expenses of the supplemental retirement plan. The administrative fees or charges must be paid by participants in the following manner:

(1) from participants whose contributions are invested with the state board of investment, the plan administrator may recover administrative expenses in the manner provided by section 11A.17, subdivisions 10a and 14; or


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(2) from participants where contributions are invested through contracts purchased from any other authorized source, the plan administrator may assess an amount of up to two percent of the employee and employer contributions.

Any recovered or assessed amounts that are not needed for the necessary and reasonable administrative expenses of the plan must be refunded to member accounts.

The board of trustees shall report annually, before October 1, to the advisory committee created in section 354B.25, subdivision 1a, on administrative expenses of the plan. The report must include a detailed accounting of charges for administrative expenses collected from plan participants and expenditure of the administrative expense charges. The administrative expense charges collected from plan participants must be kept in a separate account from any other funds under control of the board of trustees and may be used only for the necessary and reasonable administrative expenses of the plan.

Sec. 11. Minnesota Statutes 1996, section 354D.02, subdivision 2, is amended to read:

Subd. 2. [ELIGIBILITY.] Eligible employees are:

(1) any supervisory or professional employee of the state arts board;

(2) any supervisory or professional employee of the Minnesota humanities commission; or

(3) any employee of the Minnesota historical society.;

(4) any employee of the Minnesota state academy for the deaf;

(5) any employee of the Minnesota state academy for the blind;

(6) any employee of the Minnesota zoological garden; or

(7) any employee of the Lola and Rudy Perpich Minnesota center for arts education.

Sec. 12. Minnesota Statutes 1996, section 354D.06, is amended to read:

354D.06 [ADMINISTRATION.]

(a) The Minnesota state university system or its successor shall administer the individual retirement account plan for eligible employees listed in section 354D.02, subdivision 2, clauses (1) and (2), in accordance with sections 354B.20 to 354B.30.

(b) The Minnesota historical society or its successor shall administer the individual retirement account plan for eligible employees listed in section 354D.02, subdivision 2, clause (3), in accordance with section 354D.08.

(c) The Minnesota state academy for the deaf or its successor shall administer the individual retirement account plan for eligible employees listed in section 354D.02, subdivision 2, clause (4), in accordance with section 354D.08.

(d) The Minnesota state academy for the blind or its successor shall administer the individual retirement account plan for eligible employees listed in section 354D.02, subdivision 2, clause (5), in accordance with section 354D.08.

(e) The Minnesota zoological board or its successor shall administer the individual retirement account plan for eligible employees listed in section 354D.02, subdivision 2, clause (6), in accordance with section 354D.08.

(f) The Lola and Rudy Perpich Minnesota center for arts education or its successor shall administer the individual retirement account plan for eligible employees listed in section 354D.02, subdivision 2, clause (7), in accordance with section 354D.08.


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Sec. 13. Minnesota Statutes 1996, section 354D.07, is amended to read:

354D.07 [TRANSFER OF CERTAIN MSRS MEMBER CONTRIBUTION REFUND AMOUNTS TO PLAN.]

(a) Notwithstanding any provision of law to the contrary, a former member of the general state employees retirement plan of the Minnesota state retirement system or of the teachers retirement association, who has less than three years of allowable service credit as of the election date, and who is a member of the individual retirement account plan under this chapter may elect to transfer to the individual retirement account plan an amount equal to the refund under section 352.22, subdivision 2, or 354.49, subdivisions 1 and 2, whichever applies, that the member could otherwise receive. The transfer must be made from the general state employees retirement fund or the teachers retirement association directly to the individual retirement account plan and credited by the plan appropriately. No amount under this section is payable directly to any individual.

(b) The election must be made on a form prescribed by the executive director of the Minnesota state retirement system or the teachers retirement association, whichever applies, after consultation with the administrators of the plan.

Sec. 14. Minnesota Statutes 1996, section 354D.08, subdivision 1, is amended to read:

Subdivision 1. [GENERAL GOVERNANCE.] (a) The Minnesota historical society is the plan administrator and has the administrative responsibility for the individual retirement account plan for those eligible employees listed in section 354D.02, subdivision 2, clause (3).

(b) The Minnesota state academy for the deaf is the plan administrator and has the administrative responsibility for the individual retirement account plan for those eligible employees listed in section 354D.02, subdivision 2, clause (4).

(c) The Minnesota state academy for the blind is the plan administrator and has the administrative responsibility for the individual retirement account plan for those eligible employees listed in section 354D.02, subdivision 2, clause (5).

(d) The Minnesota zoological board is the plan administrator and has the administrative responsibility for the individual retirement account plan for those eligible employees listed in section 354D.02, subdivision 2, clause (6).

(e) The Lola and Rudy Perpich Minnesota center for arts education is the plan administrator and has the administrative responsibility for the individual retirement account plan for those eligible employees listed in section 354D.02, subdivision 2, clause (7).

Sec. 15. Minnesota Statutes 1996, section 354D.08, subdivision 2, is amended to read:

Subd. 2. [ANNUITY CONTRACTS AND CUSTODIAL ACCOUNTS.] (a) The plan administrator shall arrange for the purchase of fixed annuity contracts, variable annuity contracts, a combination of fixed and variable annuity contracts, or custodial accounts from financial institutions which have been selected by the state board of investment and approved by the plan administrator under subdivision 3, as the investment vehicle for the retirement coverage of plan participants and to provide retirement benefits to plan participants. Custodial accounts from financial institutions shall include open-end investment companies registered under the federal Investment Company Act of 1940, as amended.

(b) The annuity contracts or accounts must be purchased with contributions under section 354D.05, or with money or assets otherwise provided by law by authority of the Minnesota historical society, the Minnesota state academy for the deaf, the Minnesota state academy for the blind, the Minnesota zoological board, or the Lola and Rudy Perpich Minnesota center for arts education, and deemed acceptable by the applicable financial institution.

Sec. 16. Minnesota Statutes 1996, section 354D.08, subdivision 3, is amended to read:

Subd. 3. [SELECTION OF FINANCIAL INSTITUTIONS.] The applicable plan administrator may approve up to two financial institutions selected by the state board of investment under section 354B.25, subdivision 3, to provide annuity products and custodial accounts for those employees listed in section 354D.02, subdivision 2, clause clauses (3), (4), (5), (6), and (7). Only those financial institutions selected by the state board of investment and approved by the applicable plan administrator may provide annuity products and custodial accounts for those employees listed in section 354D.02, subdivision 2, clause clauses (3), (4), (5), (6), and (7).


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The state board of investment must periodically review at least every three years each financial institution selected. The state board of investment may retain consulting services to assist in the periodic review, may establish a budget for its costs in the periodic review process, and may charge a proportional share of those costs to each financial institution selected. All contracts must be approved by the state board of investment before execution by the Minnesota historical society, the Minnesota state academy for the deaf, the Minnesota state academy for the blind, the Minnesota zoological board, or the Lola and Rudy Perpich Minnesota center for arts education, as applicable. The state board of investment shall also establish policies and procedures under section 11A.04, clause (2), to carry out this subdivision.

Sec. 17. Minnesota Statutes 1996, section 354D.08, subdivision 5, is amended to read:

Subd. 5. [INDIVIDUAL RETIREMENT ACCOUNT PLAN ADMINISTRATIVE EXPENSES; MINNESOTA HISTORICAL SOCIETY.] (a) The reasonable and necessary administrative expenses of the applicable individual retirement account plan for those employees enumerated in section 354D.02, subdivision 2, clause clauses (3), (4), (5), (6), and (7), must be paid by plan participants. The plan administrator may charge to plan participants purchasing annuity contracts and custodial accounts pursuant to subdivision 2, paragraph (a), an administrative expenses assessment of a designated amount, not to exceed two percent of member and employer contributions, as those contributions are made.

(b) Any administrative expense charge that is not actually needed for the administrative expenses of the applicable individual retirement account plan must be refunded to member accounts.

Sec. 18. [EFFECTIVE DATE.]

(a) Sections 1, 2, 3, 11, 12, 13, 14, 15, 16, and 17 are effective on the day following enactment.

(b) Sections 4, 5, and 6 are effective on July 1, 1997, and apply to sabbatical leaves that begin on or after that date.

(c) Sections 7, 8, 9, and 10 are effective on July 1, 1997.

ARTICLE 4

ACTUARIAL ASSUMPTION MODIFICATIONS

Section 1. Minnesota Statutes 1996, section 356.215, subdivision 4d, is amended to read:

Subd. 4d. [INTEREST AND SALARY ASSUMPTIONS.] (a) For funds governed by chapters 352B, 353C, and by sections 352.90 through 352.951 and 353.63 through 353.68, The actuarial valuation must use a the applicable following preretirement interest assumption of 8.5 percent, a and the applicable following postretirement interest assumption of five percent, and a future salary increase assumption of 6.5 percent.:

preretirement postretirement

interest rate interest rate

plan assumption assumption

general state employees retirement plan 8.5% 5.0%

correctional state employees retirement plan 8.5 5.0

state patrol retirement plan 8.5 5.0

legislators retirement plan 8.5 5.0

elective state officers retirement plan 8.5 5.0

judges retirement plan 8.5 5.0


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general public employees retirement plan 8.5 5.0

public employees police and fire retirement plan 8.5 5.0

local government correctional service retirement plan 8.5 5.0

teachers retirement plan 8.5 5.0

Minneapolis employees retirement plan 6.0 5.0

Duluth teachers retirement plan 8.5 8.5

Minneapolis teachers retirement plan 8.5 8.5

St. Paul teachers retirement plan 8.5 7.5

Minneapolis police relief association 6.0 6.0

other local police relief associations 5.0 5.0

Minneapolis fire department relief association 6.0 6.0

other local salaried firefighter relief associations 5.0 5.0

local monthly benefit volunteer firefighter relief associations 5.0 5.0

(b) For funds governed by chapter 354A, The actuarial valuation must use preretirement and postretirement assumptions of 8.5 percent and a the applicable following single rate future salary increase assumption of 6.5 percent, but the actuarial valuation must reflect the payment of postretirement adjustments to retirees, based on the methods specified in the bylaws of the fund as approved by the legislature. For a fund governed by chapter 422A, the actuarial valuation shall use a preretirement interest assumption of six percent, a postretirement interest assumption of five percent, and an assumption that in each future year the salary on which a retirement or other benefit is based is 1.04 multiplied by the salary for the preceding year.

(c) For all other funds not specified in paragraph (a), (b), (d), or (e), the actuarial valuation must use a preretirement interest assumption of five percent, a postretirement interest assumption of five percent, and a future salary increase assumption of 3.5 percent.

(d) For funds governed by chapters 3A, 352C, and 490, the actuarial valuation must use a preretirement interest assumption of 8.5 percent, a postretirement interest assumption of five percent, and a future salary increase assumption of 6.5 percent in each future year in which the salary amount payable is not determinable from section 3.099, 15A.081, subdivision 6, or 15A.083, subdivision 1, whichever applies, or from applicable compensation council recommendations under section 15A.082.

(e) For funds governed by sections 352.01 through 352.86, 353.01 through 353.46, and chapter 354, the actuarial valuation must use a preretirement interest assumption of 8.5, a postretirement interest assumption of five percent, and a or the applicable following graded rate future salary increase assumption as follows:

General state General public

employees employees Teachers

retirement retirement retirement

Age plan plan plan

(1) single-rate future salary increase assumption

future salary

plan increase assumption

legislators retirement plan 5.0%


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elective state officers retirement plan 5.0

judges retirement plan 5.0

Minneapolis employees retirement plan 4.0

Minneapolis police relief association 4.0

other local police relief associations 3.5

Minneapolis fire department relief association 4.0

other local salaried firefighter relief associations 3.5

(2) graded-rate future salary increase assumption

future salary

plan increase assumption

general state employees retirement plan assumption A

correctional state employees retirement plan assumption A

state patrol retirement plan assumption A

general public employees retirement plan assumption B

public employees police and fire fund retirement plan assumption C

local government correctional service retirement plan assumption C

teachers retirement plan assumption D

Duluth teachers retirement plan assumption E

Minneapolis teachers retirement plan assumption F

St. Paul teachers retirement plan assumption G

age A B C D E F G

16 7.2500% 8.71% 11.50% 7.25% 8.00% 7.50% 7.25%

17 7.2500 8.71 11.50 7.25 8.00 7.50 7.25

18 7.2500 8.70 11.50 7.25 8.00 7.50 7.25

19 7.2500 8.70 11.50 7.25 8.00 7.50 7.25

20 7.2500 7.70 11.50 7.25 8.00 7.50 7.25

21 7.1454 7.70 11.50 7.25 8.00 7.50 7.25

22 7.1094 7.70 11.00 7.25 8.00 7.50 7.25

23 7.0725 7.70 10.50 7.20 7.90 7.40 7.25


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24 7.0363 7.70 10.00 7.15 7.80 7.30 7.20

25 7.0000 7.60 9.50 7.10 7.70 7.20 7.15

26 7.0000 7.51 9.20 7.05 7.60 7.10 7.10

27 7.0000 7.39 8.90 7.00 7.50 7.00 7.05

28 7.0000 7.30 8.60 7.00 7.40 6.90 7.00

29 7.0000 7.20 8.30 7.00 7.30 6.80 6.95

30 7.0000 7.20 8.00 7.00 7.20 6.70 6.90

31 7.0000 7.10 7.80 7.00 7.10 6.60 6.85

32 7.0000 7.10 7.60 7.00 7.00 6.50 6.80

33 7.0000 7.00 7.40 7.00 6.90 6.40 6.75

34 7.0000 7.00 7.20 7.00 6.80 6.30 6.70

35 7.0000 6.90 7.00 7.00 6.70 6.20 6.65

36 6.9019 6.80 6.80 7.00 6.60 6.10 6.60

37 6.8074 6.70 6.60 7.00 6.50 6.00 6.55

38 6.7125 6.60 6.40 6.90 6.40 5.90 6.50

39 6.6054 6.50 6.20 6.80 6.30 5.80 6.40

40 6.5000 6.40 6.00 6.70 6.20 5.70 6.30

41 6.3540 6.30 5.90 6.60 6.10 5.60 6.20

42 6.2087 6.30 5.80 6.50 6.00 5.50 6.10

43 6.0622 6.30 5.70 6.35 5.90 5.45 6.00

44 5.9048 6.20 5.60 6.20 5.80 5.40 5.90

45 5.7500 6.20 5.50 6.05 5.70 5.35 5.80

46 5.6940 6.09 5.45 5.90 5.60 5.30 5.70

47 5.6375 6.00 5.40 5.75 5.50 5.25 5.65

48 5.5822 5.90 5.35 5.70 5.45 5.20 5.60

49 5.5405 5.80 5.30 5.65 5.40 5.15 5.55

50 5.5000 5.70 5.25 5.60 5.35 5.10 5.50

51 5.4384 5.70 5.25 5.55 5.30 5.05 5.45


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52 5.3776 5.70 5.25 5.50 5.25 5.00 5.40

53 5.3167 5.70 5.25 5.45 5.25 5.00 5.35

54 5.2826 5.70 5.25 5.40 5.25 5.00 5.30

55 5.2500 5.70 5.25 5.35 5.25 5.00 5.25

56 5.2500 5.70 5.25 5.30 5.25 5.00 5.25

57 5.2500 5.70 5.25 5.25 5.25 5.00 5.25

58 5.2500 5.70 5.25 5.25 5.25 5.00 5.25

59 5.2500 5.70 5.25 5.25 5.25 5.00 5.25

60 5.2500 5.00 5.25 5.25 5.25 5.00 5.25

61 5.2500 5.00 5.25 5.25 5.25 5.00 5.25

62 5.2500 5.00 5.25 5.25 5.25 5.00 5.25

63 5.2500 5.00 5.25 5.25 5.25 5.00 5.25

64 5.2500 5.00 5.25 5.25 5.25 5.00 5.25

65 5.2500 5.00 5.25 5.25 5.25 5.00 5.25

66 5.2500 5.00 5.25 5.25 5.25 5.00 5.25

67 5.2500 5.00 5.25 5.25 5.25 5.00 5.25

68 5.2500 5.00 5.25 5.25 5.25 5.00 5.25

69 5.2500 5.00 5.25 5.25 5.25 5.00 5.25

70 5.2500 5.00 5.25 5.25 5.25 5.00 5.25

(c) The actuarial valuation must use the applicable following payroll growth assumption for calculating the amortization requirement for the unfunded actuarial accrued liability where the amortization retirement is calculated as a level percentage of an increasing payroll:

payroll growth

plan assumption

general state employees retirement plan 5.00%

correctional state employees retirement plan 5.00

state patrol retirement plan 5.00

legislators retirement plan 5.00

elective state officers retirement plan 5.00


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judges retirement plan 5.00

general public employees retirement plan 6.00

public employees police and fire retirement plan 6.00

local government correctional service retirement plan 6.00

teachers retirement plan 5.00

Duluth teachers retirement plan 5.00

Minneapolis teachers retirement plan 5.00

St. Paul teachers retirement plan 5.00

Sec. 2. [EFFECTIVE DATE.]

Section 1 is effective July 1, 1997, and applies to actuarial valuations prepared on or after that date.

ARTICLE 5

MISCELLANEOUS PROVISIONS

Section 1. [CLARIFICATION OF RETIREMENT ELIGIBILITY FOR CERTAIN PERA-P&F RETIREE.]

(a) Notwithstanding any provision of Minnesota Statutes 1996, section 353.01, subdivision 28, to the contrary, a person described in paragraph (b) must be considered by the public employees police and fire plan to have retired on October 31, 1996, even though the person may have rendered occasional employment services during November and December, 1996, for a governmental subdivision other than the governmental subdivision that employed the person immediately before October 31, 1996.

(b) A person to whom paragraph (a) applies is a person who:

(1) was born on October 11, 1943;

(2) was hired as a police officer by the city of Rochester on February 16, 1971; and

(3) terminated employment as a Rochester police officer on October 31, 1996.

(c) A person described in paragraph (b) must not be required to repay any public employees police and fire plan retirement annuity amount received before the date of enactment, but the amount of the employment earnings paid to the person by the applicable governmental unit for November and December, 1996, must be deducted by the public employees retirement association from a subsequent retirement annuity payment.

Sec. 2. [RETIREMENT COVERAGE FOR CERTAIN PART-TIME TEACHERS.]

Subdivision 1. [ELIGIBLE PART-TIME TEACHER.] (a) A part-time teacher described in paragraph (b) is eligible for the retirement coverage specified in subdivision 2.

(b) An eligible part-time teacher is a person who:

(1) was a part-time hourly teacher of nursing employed by special school district No. 1 at the Minneapolis area vocational-technical institute and the Minneapolis technical college during the period April 7, 1975, to June 23, 1990;


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(2) was not provided Minnesota public employee retirement plan pension coverage under Minnesota Statutes, chapter 354A, for the employment period April 7, 1975, to March 7, 1986;

(3) was not included in coverage by the federal old age, survivors, disability and health insurance program (social security) for the employment period July 1, 1978, to March 7, 1986; and

(4) was a member of the Minneapolis teachers retirement fund association for the employment period March 7, 1986, to June 28, 1991.

Subd. 2. [RETIREMENT COVERAGE.] An eligible part-time teacher under subdivision 1 is entitled to service credit in the applicable program of the Minneapolis teachers retirement fund association for the person's period of part-time teaching employment by special school district No. 1, April 7, 1975, to March 7, 1986, upon the payment of the amount specified in subdivision 3, paragraph (a).

Subd. 3. [AMOUNT.] (a) The payment amount is an amount equal to the actuarial present value, on the date of payment, as calculated by the actuary retained by the legislative commission on pensions and retirement, of the amount of the additional retirement annuity obtained by the acquisition of the additional service credit in this section. Calculation of this amount must be made using the preretirement interest rate applicable to the Minneapolis teachers retirement fund association specified in Minnesota Statutes, section 356.215, subdivision 4d, and the mortality table adopted for the pension plan.

The calculation must assume continuous future service in the association until, and retirement at, the age at which the minimum requirements of the fund for normal retirement or retirement with an annuity unreduced for retirement at an early age, including Minnesota Statutes, section 356.30, are met with the additional service credit purchased. The calculation must also assume a full-time equivalent salary, or actual salary, whichever is greater, and a future salary history that includes annual salary increases at the applicable salary increase rate for the plan specified in Minnesota Statutes, section 356.215, subdivision 4d.

(b) Payment must be made in one lump sum before July 1, 1998.

(c) Payment of the amount calculated under this subdivision must be made by the eligible teacher. However, special school district No. 1, Minneapolis, may, at its discretion, pay all or any portion of the payment amount that exceeds an amount equal to the employee contribution rates in effect during the period or periods of prior service applied to the actual salary rates in effect during the period or periods of prior service, plus interest at the rate of 8-1/2 percent a year compounded annually from the date on which the contributions would otherwise have been made to the date on which the payment is made. If the school district agrees to payments under this paragraph, the eligible teacher must make the employee payments required under this paragraph before July 1, 1998. If that employee payment is made, the school district payment under this paragraph must be remitted to the executive secretary of the Minneapolis teachers retirement fund association within 60 days of receipt by the executive secretary of the employee payments specified under this paragraph.

Subd. 4. [SERVICE CREDIT GRANT.] Service credit for the purchase period must be granted by the Minneapolis teachers retirement fund association to the account of the eligible teacher upon receipt of the purchase payment amount specified in subdivision 3.

Sec. 3. [EFFECTIVE DATE.]

Sections 1 and 2 are effective on the day following final enactment.

ARTICLE 6

VOLUNTEER FIREFIGHTER SERVICE

PENSION MAXIMUMS

Section 1. Minnesota Statutes 1996, section 424A.02, subdivision 3, is amended to read:

Subd. 3. [FLEXIBLE SERVICE PENSION MAXIMUMS.] (a) On or before August 1 of each year as part of the certification of the financial requirements and minimum municipal obligation made pursuant to section 69.772, subdivision 4, or 69.773, subdivision 5, the secretary or some other official of the relief association designated in the bylaws of each relief


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association shall calculate and certify to the governing body of the applicable qualified municipality the average amount of available financing per active covered firefighter for the most recent three-year period. The amount of available financing shall include any amounts of fire state aid received or receivable by the relief association, any amounts of municipal contributions to the relief association raised from levies on real estate or from other available revenue sources exclusive of fire state aid, and one-tenth of the amount of assets in excess of the accrued liabilities of the relief association calculated pursuant to sections 69.772, subdivision 2; 69.773, subdivisions 2 and 4; or 69.774, subdivision 2, if any.

(b) The maximum service pension which the relief association has authority to provide for in its bylaws for payment to a member retiring after the calculation date when the minimum age and service requirements specified in subdivision 1 are met must be determined using the table in paragraph (c) or (d), whichever applies.

(c) For a relief association where the governing bylaws provide for a monthly service pension to a retiring member, the maximum monthly service pension amount per month for each year of service credited that may be provided for in the bylaws is the maximum service pension figure corresponding to the average amount of available financing per active covered firefighter:

Minimum Average Amount of Maximum Service Pension

Available Financing per Amount Payable per Month

Firefighter for Each Year of Service

$... $ .25

42 .50

84 1.00

126 1.50

168 2.00

209 2.50

252 3.00

294 3.50

335 4.00

378 4.50

420 5.00

503 6.00

587 7.00

672 8.00

755 9.00

839 10.00

923 11.00

1007 12.00

1090 13.00

1175 14.00

1259 15.00

1342 16.00

1427 17.00

1510 18.00

1594 19.00

1677 20.00

1762 21.00

1845 22.00

1888 22.50

1929 23.00

2014 24.00

2098 25.00

2183 26.00

2267 27.00

2351 28.00


Journal of the House - 30th Day - Top of Page 1609

2436 29.00

2520 30.00

any amount more than 2520 30.00

2604 31.00

2689 32.00

2773 33.00

2857 34.00

2942 35.00

3026 36.00

3110 37.00

3963 38.00

4047 39.00

4137 40.00

any amount more than 4137 40.00

(d) For a relief association in which the governing bylaws provide for a lump sum service pension to a retiring member, the maximum lump sum service pension amount for each year of service credited that may be provided for in the bylaws is the maximum service pension figure corresponding to the average amount of available financing per active covered firefighter for the applicable specified period:

Minimum Average Amount Maximum Lump Sum Service

of Available Financing Pension Amount Payable

per Firefighter for Each Year of Service

(1) for service pensions payable before January 1, 1994

$.. $10

11 20

16 30

23 40

27 50

32 60

43 80

54 100

65 120

77 140

86 160

97 180

108 200

131 240

151 280

173 320

194 360

216 400

239 440

259 480

281 520

302 560

324 600

347 640

367 680

389 720

410 760

432 800

486 900


Journal of the House - 30th Day - Top of Page 1610

540 1000

594 1100

648 1200

702 1300

756 1400

810 1500

864 1600

918 1700

972 1800

1026 1900

1080 2000

1134 2100

1188 2200

1242 2300

1296 2400

1350 2500

1404 2600

1458 2700

1512 2800

1566 2900

1620 3000

1672 3100

1726 3200

1753 3250

1780 3300

1820 3375

any amount more than 1820 3375

(2) in addition to the service pension maximum under clause (1), for service pensions payable after December 31, 1993, and before January 1, 1995

1834 3400

1888 3500

any amount more than 1888 3500

(3) in addition to the service pension maximum under clauses (1) and (2), for service pensions payable after December 31, 1994, and before January 1, 1996

1942 3600

1996 3700

2023 3750

any amount more than 2023 3750

(4) in addition to the service pension maximum under clauses (1) to (3), for service pensions payable after December 31, 1995

2050 3800

2104 3900

2158 4000

any amount more than 2158 4000

2212 4100

2265 4200

2319 4300

2373 4400


Journal of the House - 30th Day - Top of Page 1611

2427 4500

2481 4600

2535 4700

2589 4800

2643 4900

2697 5000

2751 5100

2805 5200

2859 5300

2913 5400

2967 5500

any amount more than 2967 5500

(e) For a relief association in which the governing bylaws provide for a monthly benefit service pension as an alternative form of service pension payment to a lump sum service pension, the maximum service pension amount for each pension payment type must be determined using the applicable table contained in this subdivision.

(f) If a relief association establishes a service pension in compliance with the applicable maximum contained in paragraph (c) or (d) and the minimum average amount of available financing per active covered firefighter is subsequently reduced because of a reduction in fire state aid or because of an increase in the number of active firefighters, the relief association may continue to provide the prior service pension amount specified in its bylaws, but may not increase the service pension amount until the minimum average amount of available financing per firefighter under the table in paragraph (c) or (d), whichever applies, permits.

(g) No relief association is authorized to provide a service pension in an amount greater than $30 $40 per month per year of service credit or in an amount greater than $3,375 $5,500 lump sum per year of service credit before January 1, 1994, $3,500 lump sum per year of service credit before January 1, 1995, $3,750 lump sum per year of service credit before January 1, 1996, and $4,000 lump sum per year of service credit after December 31, 1995, even if the minimum average amount of available financing per firefighter for a relief association providing a monthly benefit service pension is greater than $2,240 $4,137, or, for a relief association providing a lump sum service pension, is greater than $1,753 before January 1, 1994, $1,888 before January 1, 1995, $2,023 before January 1, 1996, or $2,158 after December 31, 1995 $2,967.

Sec. 2. [EFFECTIVE DATE.]

Section 1 is effective for pensions payable after December 31, 1997.

ARTICLE 7

RETIREMENT COVERAGE MODIFICATIONS FOR TRANSFERRED

UNIVERSITY OF MINNESOTA ACADEMIC HEALTH CENTER EMPLOYEES

Section 1. Minnesota Statutes 1996, section 352F.02, subdivision 3, is amended to read:

Subd. 3. [EFFECTIVE DATE.] "Effective date" is the date terminated hospital employees transfer employment to Fairview under a definitive integration agreement between the University of Minnesota and Fairview or the date terminated academic health center employees are transferred to the University of Minnesota physicians or university affiliated family physicians, whichever is applicable.

Sec. 2. Minnesota Statutes 1996, section 352F.02, subdivision 6, is amended to read:

Subd. 6. [TERMINATED HOSPITAL EMPLOYEE.] "Terminated hospital employee" means a person who:

(1) was employed on the day before the effective date by the University of Minnesota at the University of Minnesota hospital and clinics or the academic health center and was paid on a biweekly payroll;


Journal of the House - 30th Day - Top of Page 1612

(2) terminated employment with the University of Minnesota on the day before the effective date or in the case of employees of the academic health center, terminated employment with the University of Minnesota after the effective date but immediately transferred employment to the University of Minnesota physicians or university affiliated family physicians; and

(3) was a participant in the general state employees retirement plan of the Minnesota state retirement system at the time of termination of employment with the University of Minnesota.

Sec. 3. Minnesota Statutes 1996, section 352F.02, is amended by adding a subdivision to read:

Subd. 9. [ACADEMIC HEALTH CENTER.] "Academic health center" means the seven professional schools in health care-related disciplines at the University of Minnesota.

Sec. 4. Minnesota Statutes 1996, section 352F.02, is amended by adding a subdivision to read:

Subd. 10. [UNIVERSITY OF MINNESOTA PHYSICIANS.] "University of Minnesota physicians" means the multispecialty single-group medical practice group in which medical school faculty will practice medicine beginning in 1997.

Sec. 5. Minnesota Statutes 1996, section 352F.02, is amended by adding a subdivision to read:

Subd. 11. [UNIVERSITY AFFILIATED FAMILY PHYSICIANS.] "University affiliated family physicians" means the private practice group of the department of family practice in the university's medical school.

Sec. 6. Minnesota Statutes 1996, section 352F.03, is amended to read:

352F.03 [VESTING RULE FOR CERTAIN EMPLOYEES.]

Notwithstanding any provision of chapter 352 to the contrary, a terminated hospital employee or academic health center employee is eligible to receive a retirement annuity under Minnesota Statutes 1994, section 352.115, without regard to the requirement for three years of allowable service.

Sec. 7. Minnesota Statutes 1996, section 352F.04, is amended to read:

352F.04 [AUGMENTATION INTEREST RATE FOR TERMINATED UNIVERSITY HOSPITAL EMPLOYEES.]

The deferred annuity of a terminated hospital employee is subject to augmentation in accordance with Minnesota Statutes 1994, section 352.72, subdivision 2, except that the rate of interest for this purpose is 5.5 percent compounded annually until January 1 following the year in which such person attains age 55. From that date to the effective date of retirement, the rate is 7.5 percent. These increased augmentation rates are no longer applicable for any time after the terminated hospital employee or academic health center employee becomes covered again by a retirement fund enumerated in section 356.30, subdivision 3. These increased deferred annuity augmentation rates do not apply to a terminated transferred hospital employee or academic health center employee who begins receipt of a retirement annuity while employed by Fairview.

Sec. 8. Minnesota Statutes 1996, section 352F.05, is amended to read:

352F.05 [AUTHORIZATION FOR ADDITIONAL ALLOWABLE SERVICE FOR CERTAIN EARLY RETIREMENT PURPOSES.]

For purpose of determining eligibility for early retirement benefits provided under Minnesota Statutes 1994, section 352.116, subdivision 1, paragraphs (a) and (b), and notwithstanding any provision of chapter 352 to the contrary, the years of allowable service for a terminated hospital employee who transfers to employment at Fairview, University of Minnesota physicians, or university affiliated family physicians on the effective date and does not apply for a refund of contributions under Minnesota Statutes 1994, section 352.22, subdivision 2, or any similar provision in future Minnesota Statutes, includes service with Fairview, University of Minnesota physicians, or university affiliated family physicians following the effective date. Fairview, University of Minnesota physicians, or university affiliated family physicians shall provide any reports that the executive director of the Minnesota state retirement system may reasonably request to permit calculation of benefits.


Journal of the House - 30th Day - Top of Page 1613

To be eligible for early retirement benefits under this section, the individual must separate from service with Fairview, University of Minnesota physicians, or university affiliated family physicians. The terminated eligible individual, or an individual authorized to act on behalf of that individual, may apply for an annuity following application procedures under section 352.115, subdivision 7.

Sec. 9. Minnesota Statutes 1996, section 352F.06, is amended to read:

352F.06 [APPLICATION OF REEMPLOYED ANNUITANT EARNINGS LIMITATIONS.]

The reemployed annuitant earnings limitations of section 352.115, subdivision 10, apply to any service by a terminated hospital employee as an employee of Fairview, University of Minnesota physicians, or university affiliated family physicians.

Sec. 10. Minnesota Statutes 1996, section 352F.07, is amended to read:

352F.07 [EFFECT ON REFUND.]

Notwithstanding any provision of chapter 352 to the contrary, terminated hospital employees may receive a refund of employee accumulated contributions plus interest at the rate of six percent per year compounded annually in accordance with Minnesota Statutes 1994, section 352.22, subdivision 2, at any time after the transfer of employment to Fairview, University of Minnesota physicians, or university affiliated family physicians. If a terminated hospital employee has received a refund from a pension plan enumerated in section 356.30, subdivision 3, the person may not repay that refund unless the person again becomes a member of one of those enumerated plans and complies with section 356.30, subdivision 2.

Sec. 11. Minnesota Statutes 1996, section 352F.08, is amended to read:

352F.08 [COUNSELING SERVICES.]

The University of Minnesota hospital and clinics or the academic health center, whichever is applicable, and the Minnesota state retirement system shall provide terminated hospital employees with counseling on their benefits available under the general state employees retirement plan of the Minnesota state retirement system.

Sec. 12. [EFFECTIVE DATE.]

Sections 1 to 11 are effective the day following final enactment."

Delete the title and insert:

"A bill for an act relating to retirement; revising various police state aid provisions to fully implement intended 1996 modifications; ratifying the calculation of certain 1996 police state aid amounts; modifying various fire state aid provisions; authorizing the exclusion of certain pipefitters from public employee retirement association membership; authorizing benefit increases for the Richfield fire department relief association; providing post retirement adjustments for retirees and benefit recipients of the Nashwauk police pension plan and the Eveleth police and fire retirement trust fund; clarifying the benefit floor for certain benefit recipients of the St. Paul police and fire consolidation accounts; providing alternative retirement coverage for transferred employees of the Jackson medical center, the Melrose hospital, and the Tracy municipal hospital; creating a trust for the state deferred compensation program; modifying the handling of sabbatical leave contributions by the teachers retirement association; modifying the timing of higher education supplemental retirement plan contributions; making administrative changes in the higher education individual retirement account plan and supplemental retirement plan; authorizing additional individual retirement account plans; modifying various economic actuarial assumptions; clarifying certain retirement dates; authorizing certain purchases of prior service credit; extending the volunteer firefighter flexible service pension maximums; modifying retirement coverage for transferred university academic health center employees; amending Minnesota Statutes 1996, sections 69.021, subdivisions 4, 5, 6, 7a, 8, 9, 10, and 11; 69.031, subdivisions 1, 3, and 5; 352.96, subdivisions 2, 3, and 6; 352F.02, subdivisions 3, 6, and by adding subdivisions; 352F.03; 352F.04; 352F.05; 352F.06; 352F.07; 352F.08; 353.01, subdivision 2b; 353B.07, subdivision 3; 353B.08, subdivision 6; 353B.11, subdivisions 3, 4, and 5; 354.092, subdivisions 1, 3, and 4; 354B.25, subdivision 5, and by adding a subdivision; 354C.12, subdivisions 1 and 4; 354D.02, subdivision 2; 354D.06; 354D.07; 354D.08, subdivisions 1, 2, 3 and 5; 356.215, subdivision 4d; and 424A.02, subdivision 3; Laws 1943, chapter 196, section 4, as amended; Laws 1965, chapter 705, section 1, subdivision 4; Laws 1967, chapter 798, sections 2 and 4; and Laws 1992, chapter 563, section 5, as amended.

With the recommendation that when so amended the bill pass.

The report was adopted.


Journal of the House - 30th Day - Top of Page 1614

Jefferson from the Committee on Labor-Management Relations to which was referred:

H. F. No. 1870, A bill for an act relating to workers' compensation; changing certain reporting deadlines; modifying certain workers' compensation procedures; adding correctional officers to the presumption of occupational disease; amending Minnesota Statutes 1996, sections 79.55, subdivisions 9 and 10; 176.011, subdivision 15; and 176.191, subdivision 1.

Reported the same back with the following amendments:

Page 5, line 8, delete "section shall apply" and insert "subdivision applies"

Page 5, after line 19, insert:

"Sec. 5. Minnesota Statutes 1996, section 176.191, subdivision 5, is amended to read:

Subd. 5. [ARBITRATION.] Where a dispute exists between an employer, insurer, the special compensation fund, or the workers' compensation reinsurance association, regarding apportionment of liability for benefits payable under this chapter, and the requesting party has expended over $10,000 in medical or 52 weeks worth of indemnity benefits and made the request within one year thereafter, a party may require submission of the dispute as to apportionment of liability among employers and insurers to binding arbitration. However, these monetary thresholds shall not apply in any case where the employers and insurers agree to submit the apportionment dispute to arbitration. The decision of the arbitrator shall be conclusive on the issue of apportionment among employers and insurers. Consent of the employee is not required for submission of a dispute to arbitration pursuant to this section and the employee is not bound by the results of the arbitration. An arbitration award shall not be admissible in any other proceeding under this chapter. Notice of the proceeding shall be given to the employee.

The employee, or any person with material information to the facts to be arbitrated, shall attend the arbitration proceeding if any party to the proceeding deems it necessary. Nothing said by an employee in connection with any arbitration proceeding may be used against the employee in any other proceeding under this chapter. Reasonable expenses of meals, lost wages, and travel of the employee or witnesses in attending shall be reimbursed on a pro rata basis. Arbitration costs shall be paid by the parties, except the employee, on a pro rata basis."

Page 5, line 20, delete "5" and insert "6"

Page 5, line 22, after the period, insert "Section 4 is effective the day following final enactment."

Amend the title as follows:

Page 1, delete line 8 and insert "subdivisions 1 and 5."

With the recommendation that when so amended the bill pass.

The report was adopted.

Jefferson from the Committee on Labor-Management Relations to which was referred:

H. F. No. 1877, A resolution memorializing the strawberry industry to recognize and respect the rights of strawberry workers.

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

The report was adopted.


Journal of the House - 30th Day - Top of Page 1615

Jefferson from the Committee on Labor-Management Relations to which was referred:

H. F. No. 1895, A bill for an act relating to workers' compensation; modifying rehabilitation program requirements; amending Minnesota Statutes 1996, section 176.102, subdivision 4.

Reported the same back with the following amendments:

Page 3, line 5, delete "a program" and insert "training"

With the recommendation that when so amended the bill pass.

The report was adopted.

Jefferson from the Committee on Labor-Management Relations to which was referred:

H. F. No. 1936, A bill for an act relating to labor relations; requiring arbitration in certain circumstances; establishing procedures; providing penalties; amending Minnesota Statutes 1996, sections 179.06, by adding a subdivision; and 179A.16, subdivision 3, and by adding a subdivision.

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

The report was adopted.

SECOND READING OF HOUSE BILLS

H. F. Nos. 2057, 197, 242, 257, 297, 458, 653, 864, 970, 1078, 1162, 1326, 1382, 1618, 1711, 1727, 1870, 1877, 1895 and 1936 were read for the second time.

INTRODUCTION AND FIRST READING OF HOUSE BILLS

The following House Files were introduced:

McCollum and Goodno introduced:

H. F. No. 2059, A bill for an act relating to health; permitting sale of health promotion and education material; appropriating money; amending Minnesota Statutes 1996, section 144.394.

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

Davids introduced:

H. F. No. 2060, A bill for an act relating to education; providing for a rural school pilot program; appropriating money.

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


Journal of the House - 30th Day - Top of Page 1616

Leighton introduced:

H. F. No. 2061, A bill for an act relating to education; amending eligibility requirements for individuals participating in youth programs; establishing a Minnesota career information system; modifying the name of secondary-vocational programs; requiring lifework development plan; appropriating money; amending Minnesota Statutes 1996, sections 84.0887, subdivision 2; and 124.574, subdivisions 1, 2d, 5, 6, and 9; proposing coding for new law in Minnesota Statutes, chapters 121; and 126.

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

Hasskamp introduced:

H. F. No. 2062, A bill for an act relating to taxation; property; extending the lower class rate to certain business property; amending Minnesota Statutes 1996, section 273.13, subdivision 24.

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

Knoblach introduced:

H. F. No. 2063, 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; 290.091, subdivision 3.

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

Winter, Weaver and Carruthers introduced:

H. F. No. 2064, A bill for an act relating to economic development; removing the prohibition on use of state money for the board of invention; appropriating money; repealing Minnesota Statutes 1996, section 116J.990, subdivision 7.

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

Winter; Swenson, D., and Molnau introduced:

H. F. No. 2065, A bill for an act relating to animals; allowing veterinarians to dock horses; repealing requirements for the care of equine animals; repealing restrictions on clipped animals; changing dog house specifications; amending Minnesota Statutes 1996, sections 343.25; and 343.40, subdivision 2; repealing Minnesota Statutes 1996, sections 343.26; and 346.38.

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

Rest; Macklin; Johnson, A., and Erhardt introduced:

H. F. No. 2066, A bill for an act relating to taxation; sales; adopting recommendations of the sales tax advisory council; changing the base, payment, and administration of the sales tax; providing uniform rules for local sales taxes; amending Minnesota Statutes 1996, sections 289A.11, subdivision 1; 289A.18, subdivision 4; 289A.20, subdivision 4; 289A.40, subdivision 2; 289A.56, subdivision 4; 297A.01, subdivisions 3, 7, 15, and 16; 297A.02, subdivision 2; 297A.023; 297A.14, subdivision 4; 297A.211, subdivision 1; and 297A.25, subdivisions 2, 3, 12, 59, and by adding a subdivision; proposing coding for new law in Minnesota Statutes, chapter 297A; repealing Minnesota Statutes 1996, sections 289A.60, subdivision 15; 297A.01, subdivision 20; 297A.02, subdivision 5; 297A.15, subdivision 5; and 297A.25, subdivision 29.

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


Journal of the House - 30th Day - Top of Page 1617

Bakk, Macklin and Erhardt introduced:

H. F. No. 2067, A bill for an act relating to taxation; providing an exemption for construction materials used in correctional facilities; amending Minnesota Statutes 1996, sections 297A.15, subdivision 7; and 297A.25, subdivision 11, and by adding a subdivision.

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

Tunheim, Greiling, Tomassoni, Koppendrayer and Carlson introduced:

H. F. No. 2068, A bill for an act relating to technology; appropriating money for grants to regional management information centers.

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

Solberg, Tomassoni and Leighton introduced:

H. F. No. 2069, A bill for an act relating to public employment; making it an unfair labor practice to unilaterally modify benefits received by retired employees; amending Minnesota Statutes 1996, section 179A.13, subdivision 2.

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

Lindner, Nornes, Juhnke, Tunheim and Krinkie introduced:

H. F. No. 2070, A bill for an act relating to education; offering an alternative of a locally controlled graduation rule; providing locally controlled graduation rule aid and district assistance and academic enhancement aid; appropriating money; amending Minnesota Statutes 1996, section 120.101, subdivision 8, and by adding a subdivision; proposing coding for new law in Minnesota Statutes, chapter 124.

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

Bakk introduced:

H. F. No. 2071, A bill for an act relating to taxation; imposing a sales and use tax within the tax relief area; providing for deposit of the proceeds; amending Minnesota Statutes 1996, sections 298.293; 298.294; and 298.296, subdivision 2.

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

Hasskamp introduced:

H. F. No. 2072, A bill for an act relating to highways; requiring notice to landowners and assessor before certain roads or highways may be dedicated to public use; allowing adjacent landowners to petition road authority to establish, alter, or vacate a public road; amending Minnesota Statutes 1996, sections 103E.615, subdivision 4; 160.05, subdivision 1; 163.12, subdivision 1; 163.13, subdivision 1; 164.06, subdivision 1; 164.08, subdivisions 1 and 2; 164.12, subdivisions 1 and 3; 164.14, subdivisions 1 and 3; 164.35, subdivision 4; and 282.04, subdivision 5; proposing coding for new law in Minnesota Statutes, chapter 160; repealing Minnesota Statutes 1996, section 164.07.

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


Journal of the House - 30th Day - Top of Page 1618

Hausman and Long introduced:

H. F. No. 2073, A bill for an act relating to transportation; prohibiting expenditure of funds for Stillwater bridge without legislative approval.

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

Jaros, Huntley and Munger introduced:

H. F. No. 2074, A bill for an act relating to public improvements; appropriating bond proceeds for improvements to the Hartley Nature Center in Duluth.

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

Munger, Huntley and Jaros introduced:

H. F. No. 2075, A bill for an act relating to capital improvements; appropriating money for the Lake Superior Zoological Garden; authorizing the sale of state bonds.

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

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. 1356 and 1052.

Patrick E. Flahaven, Secretary of the Senate

FIRST READING OF SENATE BILLS

S. F. No. 1356, A bill for an act relating to legislative districts; changing two districts to reflect an annexation; amending Minnesota Statutes 1996, section 2.123, subdivision 2.

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

S. F. No. 1052, A bill for an act relating to state lands; authorizing the board of trustees of Minnesota state colleges and universities to convey certain land.

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


Journal of the House - 30th Day - Top of Page 1619

CONSENT CALENDAR

H. F. No. 427 was reported to the House.

Farrell and Paymar moved to amend H. F. No. 427, the first engrossment, as follows:

Page 1, delete section 1

Renumber the sections in sequence and correct internal references

Amend the title accordingly

A roll call was requested and properly seconded.

The question was taken on the Farrell and Paymar amendment and the roll was called. There were 84 yeas and 45 nays as follows:

Those who voted in the affirmative were:

Anderson, B. Farrell Kielkucki Milbert Peterson Sykora
Anderson, I. Finseth Knight Molnau Pugh Tingelstad
Bettermann Goodno Knoblach Mulder Reuter Tomassoni
Bishop Greiling Koppendrayer Munger Rifenberg Tompkins
Boudreau Gunther Kraus Ness Rostberg Trimble
Bradley Haas Krinkie Nornes Schumacher Tuma
Broecker Harder Larsen Olson, M. Seagren Van Dellen
Carlson Hasskamp Leppik Opatz Seifert Weaver
Commers Holsten Lindner Osskopp Solberg Wenzel
Daggett Huntley Luther Otremba Stanek Westfall
Davids Jaros Mahon Paulsen Stang Westrom
Dehler Jennings Mares Pawlenty Sviggum Winter
Dempsey Johnson, A. Mariani Paymar Swenson, D. Wolf
Erhardt Kelso McElroy Pelowski Swenson, H. Workman

Those who voted in the negative were:

Abrams Entenza Juhnke Macklin Ozment Smith
Bakk Evans Kalis Marko Rest Tunheim
Biernat Folliard Kinkel McCollum Rhodes Vickerman
Chaudhary Garcia Kubly McGuire Rukavina Wagenius
Clark Greenfield Kuisle Mullery Sekhon Wejcman
Dawkins Hausman Leighton Murphy Skare
Delmont Hilty Lieder Olson, E. Skoglund
Dorn Johnson, R. Long Orfield Slawik

The motion prevailed and the amendment was adopted.

Trimble, Mariani, Entenza, Farrell, Paymar, McCollum, Osthoff, Hausman and Dawkins offered an amendment to H. F. No. 427, the first engrossment, as amended.


Journal of the House - 30th Day - Top of Page 1620

POINT OF ORDER

Tuma raised a point of order pursuant to rule 3.09 that the Trimble et al amendment was not in order. The Speaker ruled the point of order well taken and the Trimble et al amendment out of order.

H. F. No. 427, A bill for an act relating to taxation; changing the date for determination of a levy amount; extending the duration of the joint property tax advisory committee comprised of the city of St. Paul, Ramsey county, and independent school district No. 625, and making permanent the requirement of joint public hearings; amending Minnesota Statutes 1996, section 383A.75, subdivision 3; Laws 1993, chapter 375, article 7, section 29.

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

The question was taken on the passage of the bill and the roll was called. There were 132 yeas and 0 nays as follows:

Those who voted in the affirmative were:

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

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

H. F. No. 614 was reported to the House.

Skoglund moved that H. F. No. 614 be continued on the Consent Calendar. The motion prevailed.

H. F. No. 1383, A bill for an act relating to occupational safety and health; providing that certain notices are filed when placed in the United States mail; amending Minnesota Statutes 1996, section 182.661, subdivision 3b.

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


Journal of the House - 30th Day - Top of Page 1621

The question was taken on the passage of the bill and the roll was called. There were 133 yeas and 0 nays as follows:

Those who voted in the affirmative were:

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

The bill was passed and its title agreed to.

H. F. No. 1463 was reported to the House.

Sviggum and Osthoff moved to amend H. F. No. 1463 as follows:

Page 2, after line 1, insert:

"A legislator or state constitutional officer who is a candidate for a federal, county, city, or town office, the candidate's principal campaign committee, and any other political committee with the candidate's name or title may not solicit or accept a contribution from a political fund during a regular session of the legislature."

Amend the title accordingly

A roll call was requested and properly seconded.

POINT OF ORDER

Milbert raised a point of order pursuant to rule 3.09 that the Sviggum and Osthoff amendment was not in order. The Speaker ruled the point of order not well taken and the Sviggum and Osthoff amendment in order.

Opatz moved to amend the Sviggum and Osthoff amendment to H. F. No. 1463 as follows:

Page 1, line 4 of the Sviggum and Osthoff amendment, after "office" insert "or that person's opponents"

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


Journal of the House - 30th Day - Top of Page 1622

Upon objection of ten members, H. F. No. 1463 was stricken from the Consent Calendar and placed on General Orders.

The Speaker called Opatz to the Chair.

REPORT FROM THE COMMITTEE ON RULES AND

LEGISLATIVE ADMINISTRATION

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

H. F. Nos. 90, 756 and 1755; S. F. Nos. 504, 624, 543 and 700; and H. F. Nos. 992, 1188 and 1045.

SPECIAL ORDERS

H. F. No. 90, A bill for an act relating to drivers' licenses; allowing exemption from commercial driver's license requirement for certain snowplow operators; amending Minnesota Statutes 1996, section 171.02, by adding a subdivision.

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

The question was taken on the passage of the bill and the roll was called. There were 132 yeas and 0 nays as follows:

Those who voted in the affirmative were:

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

The bill was passed and its title agreed to.

H. F. No. 756 was reported to the House.

Hilty moved to amend H. F. No. 756, the first engrossment, as follows:

Page 4, lines 3 and 4, delete "The state demographer shall then direct"


Journal of the House - 30th Day - Top of Page 1623

Page 4, line 4, delete "to" and insert "shall"

Page 4, line 7, delete "and must be paid for by the county"

Page 4, line 23, delete "The"; strike "state demographer"; strike "shall"

Page 4, line 24, delete "direct"; delete "to" and insert "shall"

Page 4, lines 27 and 28, delete "and shall be paid for by the municipality"

The motion prevailed and the amendment was adopted.

H. F. No. 756, A bill for an act relating to the state demographer; changing procedures for certain population and related estimates; amending Minnesota Statutes 1996, sections 4A.02; 379.02; and 414.01, subdivision 14; repealing Minnesota Statutes 1996, section 414.033, subdivision 9.

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

The question was taken on the passage of the bill and the roll was called. There were 131 yeas and 1 nay as follows:

Those who voted in the affirmative were:

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

Those who voted in the negative were:

Knight

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


Journal of the House - 30th Day - Top of Page 1624

H. F. No. 1755, A bill for an act relating to local government; providing for procedures between the county housing and redevelopment authority and certain municipalities and municipal authorities; amending Minnesota Statutes 1996, section 383B.77, subdivision 2.

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

The question was taken on the passage of the bill and the roll was called. There were 132 yeas and 0 nays as follows:

Those who voted in the affirmative were:

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

The bill was passed and its title agreed to.

S. F. No. 504 was reported to the House.

Anderson, I., moved to amend S. F. No. 504 as follows:

Page 1, after line 13, insert:

"Sec. 2. [INTERNATIONAL FALLS; RESIDENCY REQUIREMENTS.]

Notwithstanding Minnesota Statutes, section 415.16, or provision of other law, home rule charter, ordinance, resolution or rule to the contrary, the city of International Falls may require residency within the city's territorial limits as a condition of continued employment by the city. The residency requirement will not apply to employees who have resided out of the city prior to the date this requirement is imposed."

Page 1, after line 17, insert:

"Section 2 takes effect the day after the governing body of the city of International Falls complies with Minnesota Statutes, section 645.021, subdivision 3."

Renumber the sections in sequence and correct internal references

Amend the title accordingly

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


Journal of the House - 30th Day - Top of Page 1625

S. F. No. 504, A bill for an act relating to local government; permitting the city of Nashwauk to own and operate a gas utility.

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

The question was taken on the passage of the bill and the roll was called. There were 133 yeas and 0 nays as follows:

Those who voted in the affirmative were:

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

The bill was passed and its title agreed to.

S. F. No. 624, A bill for an act relating to professional firms; modernizing and standardizing the law regulating professional business organizations; amending Minnesota Statutes 1996, sections 13.99, subdivision 92e; 144A.43, subdivision 4; 322B.12, subdivision 1; 322B.92; 323.44, by adding a subdivision; and 323.49, by adding a subdivision; proposing coding for new law in Minnesota Statutes, chapter 303; proposing coding for new law as Minnesota Statutes, chapter 319B; repealing Minnesota Statutes 1996, sections 319A.01; 319A.02; 319A.03; 319A.04; 319A.05; 319A.06; 319A.07; 319A.08; 319A.09; 319A.10; 319A.11; 319A.12; 319A.13; 319A.14; 319A.15; 319A.16; 319A.17; 319A.18; 319A.19; 319A.20; 319A.21; and 319A.22.

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

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

Those who voted in the affirmative were:

Abrams Evans Kalis Marko Pelowski Sykora

Journal of the House - 30th Day - Top of Page 1626
Anderson, B. Farrell Kelso McCollum Peterson Tingelstad
Anderson, I. Finseth Kielkucki McElroy Pugh Tomassoni
Bakk Folliard Kinkel McGuire Rest Tompkins
Bettermann Garcia Knight Milbert Reuter Trimble
Biernat Goodno Knoblach Molnau Rhodes Tuma
Bishop Greenfield Koppendrayer Mulder Rifenberg Tunheim
Boudreau Greiling Koskinen Mullery Rostberg Van Dellen
Bradley Gunther Kraus Munger Rukavina Vickerman
Broecker Haas Krinkie Murphy Schumacher Wagenius
Carlson Harder Kubly Ness Seagren Weaver
Chaudhary Hasskamp Kuisle Nornes Seifert Wejcman
Clark Hausman Larsen Olson, E. Sekhon Wenzel
Commers Hilty Leighton Olson, M. Skare Westfall
Daggett Holsten Leppik Opatz Skoglund Westrom
Davids Huntley Lieder Orfield Slawik Winter
Dawkins Jaros Lindner Osskopp Smith Wolf
Dehler Jefferson Long Osthoff Solberg Workman
Delmont Jennings Luther Otremba Stanek Spk. Carruthers
Dempsey Johnson, A. Macklin Ozment Stang
Dorn Johnson, R. Mahon Paulsen Sviggum
Entenza Juhnke Mares Pawlenty Swenson, D.
Erhardt Kahn Mariani Paymar Swenson, H.

The bill was passed and its title agreed to.

S. F. No. 543 was reported to the House.

Juhnke moved to amend S. F. No. 543 as follows:

Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 1996, section 17A.04, subdivision 1, is amended to read:

Subdivision 1. [LICENSING PROVISIONS.] Licenses shall be issued to livestock market agencies and public stockyards annually and shall expire on December 31 each year, renewable annually thereafter. A separate license must be obtained for each separate geographical location even though operated under the same management or same person, partnership, firm, corporation, or livestock market. The license issued to a livestock market agency and public stockyard shall be conspicuously posted at the licensee's place of business. Licenses shall be required for livestock dealers and their agents for the period beginning July 1 each year and ending June 30. The license issued to a livestock dealer or the agent of a livestock dealer shall be carried by the person so licensed. The livestock dealer shall be responsible for the acts of the dealer's agents. Licensed livestock market agencies, public stockyards, and livestock dealers shall be responsible for the faithful performance of duty of the public livestock weighers at their places of business. The license issued to a livestock market agency, public stockyard or livestock dealer or agent of a livestock dealer is not transferable. The operation of livestock market agencies, livestock dealers, agents and packers at a public stockyard are exempt from sections 17A.01 to 17A.091, and 17A.12 to 17A.17.

Sec. 2. Minnesota Statutes 1996, section 18B.30, is amended to read:

18B.30 [PESTICIDE USE LICENSE REQUIREMENT.]

A person may not use or supervise the use of a restricted use pesticide without a license or certification required under sections 18B.29 to 18B.35 and the use may only be done under conditions prescribed by the commissioner.

Sec. 3. Minnesota Statutes 1996, section 18B.36, subdivision 1, is amended to read:

Subdivision 1. [REQUIREMENT.] (a) Except for a licensed commercial or noncommercial applicator, only a certified private applicator may use a restricted use pesticide to produce an agricultural commodity:


Journal of the House - 30th Day - Top of Page 1627

(1) as a traditional exchange of services without financial compensation; or

(2) on a site owned, rented, or managed by the person or the person's employees; or

(3) when the private applicator is one of two or fewer specified individuals employed as agricultural labor as defined by section 268.04, subdivision 12, paragraph (15), clause (a), at any time in agriculture on a farming unit or operation who are paid salary; and the owner/operator is a certified private applicator or is licensed as a noncommercial applicator.

(b) A private applicator may not purchase a restricted use pesticide without presenting a certified private applicator card or the card number.

Sec. 4. Minnesota Statutes 1996, section 231.01, subdivision 5, is amended to read:

Subd. 5. [WAREHOUSE OPERATOR.] The term "warehouse operator," as used in this chapter, means and includes every corporation, company, association, joint stock company or association, firm, partnership, or individual, their trustees, assignees, or receivers appointed by any court, controlling, operating, or managing within this state directly or indirectly, any building or structure, or any part thereof, or any buildings or structures, or any other property, and using the same for the storage or warehousing of goods, wares, or merchandise for compensation, or who shall hold itself out as being in the storage or warehouse business, or as offering storage or warehouse facilities, or advertise for, solicit or accept goods, wares, or merchandise for storage for compensation, but shall not include persons, corporations, or other parties operating open air storage facilities containing minerals, ores, steel, or rock products such as, but not limited to, aggregates, clays, railroad ballast, iron ore, copper ore, nickel ore, limestone, coal, and salt or operating grain or cold storage warehouses, or storing on a seasonal basis boats, boating accessories, recreational vehicles or recreational equipment or facilities in which the party storing goods rents and occupies space as a tenant and the entire risk of loss is with the tenant pursuant to written contract between the landlord and tenant.

Sec. 5. Minnesota Statutes 1996, section 236.02, subdivision 1, is amended to read:

Subdivision 1. [LICENSING REQUIREMENT.] A person who (1) operates an establishment that processes grain into feed and (2) is licensed to buy grain as a public or private local grain warehouse operator under section 232.22 223.17 may obtain a license to operate a grain bank. A person licensed under section 232.22 to operate a public grain warehouse is not required to obtain a separate grain bank license. No person may conduct a grain bank without a grain bank license or a public grain warehouse operator's license.

Sec. 6. Minnesota Statutes 1996, section 236.02, subdivision 2, is amended to read:

Subd. 2. [ISSUANCE.] A grain bank license must be obtained from the department. The department may issue a grain bank license when the applicant has complied with the bond requirements of sections 236.01 to 236.09. A grain bank license is required in addition to a license to buy grain as a public or private local grain warehouse operator and permits the licensee to conduct a grain bank in accordance with sections 236.01 to 236.09.

Sec. 7. [REPEALER.]

Minnesota Statutes 1996, sections 236A.01; and 236A.02, are repealed.

Sec. 8. [EFFECTIVE DATE.]

Section 4 is effective the day following final enactment."

Delete the title and insert:

"A bill for an act relating to agriculture; changing certain license requirements; clarifying certain terms; repealing the interstate compact on agricultural grain marketing; amending Minnesota Statutes 1996, sections 17A.04, subdivision 1; 18B.30; 18B.36, subdivision 1; 231.01, subdivision 5; and 236.02, subdivisions 1 and 2; repealing Minnesota Statutes 1996, sections 236A.01; and 236A.02."

The motion prevailed and the amendment was adopted.


Journal of the House - 30th Day - Top of Page 1628

S. F. No. 543, A bill for an act relating to agriculture; changing certain license requirements; repealing the interstate compact on agricultural grain marketing; amending Minnesota Statutes 1996, sections 17A.04, subdivision 1; 231.01, subdivision 5; 236.01, subdivision 3; and 236.02, subdivisions 1 and 2; repealing Minnesota Statutes 1996, sections 236A.01; and 236A.02.

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

The question was taken on the passage of the bill and the roll was called. There were 133 yeas and 0 nays as follows:

Those who voted in the affirmative were:

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

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

S. F. No. 700, A bill for an act relating to statutory cities; providing that the offices of mayor of a statutory city and fire chief of an independent nonprofit firefighting corporation are not incompatible under certain circumstances; proposing coding for new law in Minnesota Statutes, chapter 412.

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

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

Those who voted in the affirmative were:

Abrams Evans Kalis Marko Pelowski Sykora
Anderson, B. Farrell Kelso McCollum Peterson Tingelstad

Journal of the House - 30th Day - Top of Page 1629
Anderson, I. Finseth Kielkucki McElroy Pugh Tomassoni
Bakk Folliard Kinkel McGuire Rest Tompkins
Bettermann Garcia Knight Milbert Reuter Trimble
Biernat Goodno Knoblach Molnau Rhodes Tuma
Bishop Greenfield Koppendrayer Mulder Rifenberg Tunheim
Boudreau Greiling Koskinen Mullery Rostberg Van Dellen
Bradley Gunther Kraus Munger Rukavina Vickerman
Broecker Haas Krinkie Murphy Schumacher Wagenius
Carlson Harder Kubly Ness Seagren Weaver
Chaudhary Hasskamp Kuisle Nornes Seifert Wejcman
Clark Hausman Larsen Olson, E. Sekhon Wenzel
Commers Hilty Leighton Olson, M. Skare Westfall
Daggett Holsten Leppik Opatz Skoglund Westrom
Davids Huntley Lieder Orfield Slawik Winter
Dawkins Jaros Lindner Osskopp Smith Wolf
Dehler Jefferson Long Osthoff Solberg Workman
Delmont Jennings Luther Otremba Stanek Spk. Carruthers
Dempsey Johnson, A. Macklin Ozment Stang
Dorn Johnson, R. Mahon Paulsen Sviggum
Entenza Juhnke Mares Pawlenty Swenson, D.
Erhardt Kahn Mariani Paymar Swenson, H.

The bill was passed and its title agreed to.

H. F. No. 992, A bill for an act relating to the town of Thomson; authorizing the establishment of a detached facility.

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

The question was taken on the passage of the bill and the roll was called. There were 131 yeas and 0 nays as follows:

Those who voted in the affirmative were:

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

The bill was passed and its title agreed to.

H. F. No. 1188, A bill for an act relating to the town of Hassan; authorizing the establishment of a detached facility.

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


Journal of the House - 30th Day - Top of Page 1630

The question was taken on the passage of the bill and the roll was called. There were 133 yeas and 0 nays as follows:

Those who voted in the affirmative were:

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

The bill was passed and its title agreed to.

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

Rest moved to amend H. F. No. 1045 as follows:

Page 1, after line 7, insert:

"Section 1. Minnesota Statutes 1996, section 65B.13, is amended to read:

65B.13 [AUTOMOBILE INSURANCE, DISCRIMINATION IN AUTOMOBILE POLICIES FORBIDDEN.]

No insurance company, or its agent, shall refuse to issue any standard or preferred policy of motor vehicle insurance or make any discrimination in the acceptance of risks, in rates, premiums, dividends, or benefits of any kind, or by way of rebate:

(a) between persons of the same class, or

(b) on account of race, or

(c) on account of physical handicap if the handicap is compensated for by special training, equipment, prosthetic device, corrective lenses, or medication and if the physically handicapped person;

(1) is licensed by the department of public safety to operate a motor vehicle in this state, and

(2) operates only vehicles which are equipped with auxiliary devices and equipment necessary for safe and effective operation by the handicapped person, or


Journal of the House - 30th Day - Top of Page 1631

(d) on account of marital dissolution, or

(e) on account of desire to purchase a policy that does not include collision or comprehensive coverage on the insured vehicle.

Every company or agent violating any of the foregoing provisions shall be fined not more than $200 per violation, and every officer, agent, or solicitor violating the same shall be guilty of a misdemeanor. The commissioner of commerce is authorized to treat violations of this section as an unfair insurance practice and to enforce this section using the procedures, remedies, and penalties provided in sections 72A.17 to 72A.32.

Clauses (a) and (c) prohibit routinely requiring a medical statement from a physician solely due to the person's age or physical disability, respectively."

Renumber the sections in sequence and correct internal references

Amend the title accordingly

The motion prevailed and the amendment was adopted.

Seifert and Osskopp moved to amend H. F. No. 1045, as amended, as follows:

Page 1, after line 13, insert:

"Sec. 2. [REPEALER.]

Laws 1996, chapter 408, article 2, section 1, subdivision 3, is repealed."

Renumber the sections in sequence and correct internal references

Amend the title accordingly

A roll call was requested and properly seconded.

POINT OF ORDER

McGuire raised a point of order pursuant to rule 3.09 that the Seifert and Osskopp amendment was not in order. Speaker pro tempore Opatz ruled the point of order not well taken and the Seifert and Osskopp amendment in order.

The question recurred on the Seifert and Osskopp amendment and the roll was called. There were 84 yeas and 48 nays as follows:

Those who voted in the affirmative were:

Abrams Erhardt Kelso Macklin Pawlenty Sykora
Anderson, B. Farrell Kielkucki Mares Pelowski Tingelstad
Bakk Finseth Kinkel McCollum Reuter Tomassoni
Bettermann Goodno Knight McElroy Rifenberg Tompkins
Bishop Greiling Knoblach Molnau Rostberg Trimble
Boudreau Gunther Koppendrayer Mulder Rukavina Tuma
Bradley Haas Kraus Munger Schumacher Tunheim
Broecker Harder Krinkie Ness Seagren Van Dellen
Carlson Hasskamp Kubly Nornes Seifert Vickerman
Commers Holsten Kuisle Olson, M. Smith Weaver
Daggett Jefferson Larsen Osskopp Solberg Westfall
Dehler Jennings Leppik Otremba Stang Westrom

Journal of the House - 30th Day - Top of Page 1632
Dempsey Johnson, A. Lindner Ozment Sviggum Wolf
Dorn Juhnke Luther Paulsen Swenson, H. Workman

Those who voted in the negative were:

Anderson, I. Evans Kalis McGuire Paymar Slawik
Biernat Folliard Koskinen Milbert Peterson Stanek
Chaudhary Garcia Leighton Mullery Pugh Swenson, D.
Clark Greenfield Lieder Murphy Rest Wagenius
Davids Hilty Long Olson, E. Rhodes Wejcman
Dawkins Huntley Mahon Opatz Sekhon Wenzel
Delmont Johnson, R. Mariani Orfield Skare Winter
Entenza Kahn Marko Osthoff Skoglund Spk. Carruthers

The motion prevailed and the amendment was adopted.

H. F. No. 1045, A bill for an act relating to insurance; prohibiting a surcharge for an automobile accident in which the insured is a passenger in a bus, taxi, or commuter van; amending Minnesota Statutes 1996, section 65B.133, by adding a subdivision.

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

The question was taken on the passage of the bill and the roll was called. There were 132 yeas and 2 nays as follows:

Those who voted in the affirmative were:

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

Those who voted in the negative were:

DavidsWejcman

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


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GENERAL ORDERS

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

MOTIONS AND RESOLUTIONS

Van Dellen moved that the name of Stanek be shown as chief author on H. F. No. 1218. The motion prevailed.

Murphy moved that the name of Dempsey be added as an author on H. F. No. 1249. The motion prevailed.

Rukavina moved that the name of Huntley be stricken and the name of Solberg be added as an author on H. F. No. 1435. The motion prevailed.

Jaros moved that the names of Solberg and Trimble be added as authors on H. F. No. 1921. The motion prevailed.

Mares moved that his name be stricken as an author on H. F. No. 1932. The motion prevailed.

Trimble moved that H. F. No. 790 be recalled from the Committee on Economic Development and International Trade and be re-referred to the Committee on Education. The motion prevailed.

Trimble moved that H. F. No. 1532 be recalled from the Committee on Economic Development and International Trade and be re-referred to the Committee on Education. The motion prevailed.

Tunheim moved that H. F. No. 2068 be recalled from the Committee on Governmental Operations and be re-referred to the Committee on Education. The motion prevailed.

Winter moved that H. F. No. 2074 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.

Winter moved that H. F. No. 2075 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.

Solberg moved that H. F. No. 297, now on the Technical Consent Calendar, be re-referred to the Committee on Ways and Means. The motion prevailed.

Solberg moved that H. F. No. 653, now on Technical General Orders, be re-referred to the Committee on Ways and Means. The motion prevailed.

Solberg moved that H. F. No. 864, now on Technical General Orders, be re-referred to the Committee on Ways and Means. The motion prevailed.

Murphy moved that H. F. No. 1516, now on Technical General Orders, be re-referred to the Committee on Judiciary. The motion prevailed.

ADJOURNMENT

Winter moved that when the House adjourns today it adjourn until 2:30 p.m., Thursday, April 3, 1997. The motion prevailed.

Winter moved that the House adjourn. The motion prevailed, and Speaker pro tempore Opatz declared the House stands adjourned until 2:30 p.m., Thursday, April 3, 1997.

Edward A. Burdick, Chief Clerk, House of Representatives


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