Journal of the House - 51st Day - Monday, May 11, 2009

A quorum was present.

Mahoney and Solberg were excused.

Winkler was excused until 2:10 p.m.

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

Journal of the House - 51st Day - Monday, May 11, 2009 - Top of Page 5088

PETITIONS AND COMMUNICATIONS

The following communications were received:

STATE OF MINNESOTA

OFFICE OF THE GOVERNOR

SAINT PAUL 55155

May 7, 2009

The Honorable Margaret Anderson Kelliher

Speaker of the House of Representatives

The State of Minnesota

Dear Speaker Kelliher:

Please be advised that I have received, approved, signed, and deposited in the Office of the Secretary of State the following House File:

H. F. No. 1309, relating to transportation; appropriating money for transportation, Metropolitan Council, and public safety activities and programs; providing for fund transfers, contingent appropriations, and tort claims; modifying previous appropriations; authorizing sale of trunk highway bonds; modifying various provisions related to transportation finance and policy; providing for and modifying disposition of various fees, revenues, and accounts; clarifying appropriate uses of trunk highway fund; providing for mitigation of transportation construction impacts on business; increasing set-aside from municipal state-aid fund for administrative costs; establishing Stillwater lift bridge endowment account; regulating records of commercial drivers; modifying provisions related to transit services, fracture-critical bridges, passenger rail, and motor vehicle sales tax revenue allocations; establishing discount transit passes pilot program; authorizing Metropolitan Council to convey certain real property including the Apple Valley Transit Station; establishing Design-Build Project Selection Council and pilot program; adding provisions relating to bus purchases and a Mississippi River crossing near St. Cloud; requiring reports.

Sincerely,

Tim Pawlenty

Governor

STATE OF MINNESOTA

OFFICE OF THE GOVERNOR

SAINT PAUL 55155

May 7, 2009

The Honorable Margaret Anderson Kelliher

Speaker of the House of Representatives

The State of Minnesota

Dear Speaker Kelliher:

Please be advised that I have received, approved, signed, and deposited in the Office of the Secretary of State the following House File:

Journal of the House - 51st Day - Monday, May 11, 2009 - Top of Page 5089

H. F. No. 1242, relating to public safety; establishing Brandon's law; implementing procedures for investigating missing person cases.

Sincerely,

Tim Pawlenty

Governor

STATE OF MINNESOTA

OFFICE OF THE SECRETARY OF STATE

ST. PAUL 55155

The Honorable Margaret Anderson Kelliher

Speaker of the House of Representatives

The Honorable James P. Metzen

President of the Senate

I have the honor to inform you that the following enrolled Acts of the 2009 Session of the State Legislature have been received from the Office of the Governor and are deposited in the Office of the Secretary of State for preservation, pursuant to the State Constitution, Article IV, Section 23:

S. F.

No.

H. F.

No.

Session Laws

Chapter No.

Time and

Date Approved

2009

Date Filed

2009

1309 36 3:32 p.m. May 7 May 7

1242 38 2:15 p.m. May 7 May 7

247 40 4:39 p.m. May 7 May 7

1462 41 3:36 p.m. May 7 May 7

1486 42 5:13 p.m. May 7 May 7

1754 43 4:24 p.m. May 7 May 7

1489 44 3:37 p.m. May 7 May 7

245 45 3:42 p.m. May 7 May 7

412 46 4:25 p.m. May 7 May 7

640 48 4:28 p.m. May 7 May 7

275 49 3:43 p.m. May 7 May 7

729 50 3:44 p.m. May 7 May 7

615 51 3:45 p.m. May 7 May 7

Sincerely,

Mark Ritchie

Secretary of State

Journal of the House - 51st Day - Monday, May 11, 2009 - Top of Page 5090

STATE OF MINNESOTA

OFFICE OF THE GOVERNOR

SAINT PAUL 55155

May 7, 2009

The Honorable Margaret Anderson Kelliher

Speaker of the House of Representatives

The State of Minnesota

Dear Speaker Kelliher:

Please be advised that I have received, approved, signed, and deposited in the Office of the Secretary of State Chapter No. 37, H. F. No. 2123, with the exception of the following line-item veto:

Page 8, lines 8.5 - 8.9: A $15,080,000 biennial appropriation from the Environmental Fund for surface water assessment and monitoring. My budget recommended that these important activities be funded from the Clean Water Fund, using proceeds from the new Constitutional Amendment. This is consistent with the recommendations of the Clean Water Council and other environmental stakeholder groups. The Clean Water Fund, rather than the Environmental Fund, is the most appropriate source of funding for water assessment and monitoring, especially when considering the long-term fiscal stability of the Environmental Fund. That fund will be nearly insolvent in the not too distant future.

Sincerely,

Tim Pawlenty

Governor

STATE OF MINNESOTA

OFFICE OF THE SECRETARY OF STATE

ST. PAUL 55155

The Honorable Margaret Anderson Kelliher

Speaker of the House of Representatives

The Honorable James P. Metzen

President of the Senate

I have the honor to inform you that the following enrolled Act of the 2009 Session of the State Legislature has been received from the Office of the Governor and is deposited in the Office of the Secretary of State for preservation, pursuant to the State Constitution, Article IV, Section 23:

S. F.

No.

H. F.

No.

Session Laws

Chapter No.

Time and

Date Approved

2009

Date Filed

2009

2123* 37 10:05 p.m. May 7 May 7

[NOTE: * Indicates that H. F. No. 2123, Chapter No. 37, contains a line item veto.]

Sincerely,

Mark Ritchie

Secretary of State

Journal of the House - 51st Day - Monday, May 11, 2009 - Top of Page 5091

STATE OF MINNESOTA

OFFICE OF THE SECRETARY OF STATE

ST. PAUL 55155

The Honorable Margaret Anderson Kelliher

Speaker of the House of Representatives

The Honorable James P. Metzen

President of the Senate

S. F.

No.

H. F.

No.

Session Laws

Chapter No.

Time and

Date Approved

2009

Date Filed

2009

166 52 4:06 p.m. May 9 May 9

1611 53 4:07 p.m. May 9 May 9

298 54 4:16 p.m. May 9 May 9

1172 55 4:11 p.m. May 9 May 9

1467 56 4:13 p.m. May 9 May 9

Sincerely,

Mark Ritchie

Secretary of State

REPORTS OF STANDING COMMITTEES AND DIVISIONS

Carlson from the Committee on Finance to which was referred:

H. F. No. 984, A bill for an act relating to human services; authorizing medical assistance coverage of primary care health care providers performing primary caries prevention services as part of the child and teen checkup program; amending Minnesota Statutes 2008, section 256B.0625, subdivision 14.

Reported the same back with the following amendments:

Page 2, line 12, delete "that" and insert "document any"

Page 2, line 13, delete "were"

With the recommendation that when so amended the bill pass.

The report was adopted.

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

H. F. No. 1132, A bill for an act relating to natural resources; modifying refund provisions; modifying commissioner's authority; modifying restrictions in migratory feeding and resting areas; providing certain exemptions from local law; modifying wild animal and fish taking, possession, and licensing requirements; modifying provisions relating to the possession of certain weapons; removing bow and gun case requirements; authorizing certain fees; authorizing acquisition of and requiring grants of certain easements; modifying management authority for tax-forfeited lands; adding to and deleting from certain state parks; modifying state trails; removing land from the Minnesota wild and scenic rivers program; authorizing public and private sales and exchanges of state land; requiring wind energy lease; modifying previous sales authorization and land descriptions; requiring location of sites for veterans cemetery; requiring increase in appraised estimates for timber sales; requiring forest lease pilot project; requiring rulemaking; requiring reports; appropriating money; amending Minnesota Statutes 2008, sections 17.4981; 17.4988, subdivision 3; 84.027, subdivision 13; 84.0273; 84.788, subdivision 11; 84.798, subdivision 10; 84.82, subdivision 11; 84.922, subdivision 12; 85.015, subdivision 13; 86B.415, subdivision 11; 97A.075, subdivision 1; 97A.095, subdivision 2; 97A.137, by adding subdivisions; 97A.405, subdivision 4; 97A.421, subdivision 1; 97A.441, subdivision 7; 97A.445, subdivision 1; 97A.451, subdivision 2, by adding a subdivision; 97A.465, subdivision 1b; 97A.475, subdivisions 2, 3, 7, 11, 12, 29; 97A.525, subdivision 1; 97B.035, subdivision 2; 97B.045, subdivision 2, by adding a subdivision; 97B.051; 97B.055, subdivision 3; 97B.086; 97B.111, subdivision 1; 97B.328, subdivision 3; 97B.651; 97B.811, subdivisions 2, 3; 97B.931, subdivision 1; 97C.315, subdivision 1; 97C.355, subdivision 2; 97C.371, by adding a subdivision; 97C.385, subdivision 2; 97C.395, subdivision 1; 282.04, subdivision 1; Laws 1996, chapter 407, section 32, subdivision 3; Laws 2007, chapter 131, article 2, section 38; Laws 2008, chapter 368, article 1, sections 21, subdivisions 4, 5; 34; article 2, section 25; proposing coding for new law in Minnesota Statutes, chapters 84; 97B; 97C; repealing Minnesota Statutes 2008, sections 97A.525, subdivision 2; 97B.301, subdivisions 7, 8; 97C.405.

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

The report was adopted.

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

H. F. No. 1744, A bill for an act relating to government operations; creating technology accessibility standards for the state; authorizing rulemaking; establishing the advisory committee for technology standards for accessibility and usability; requiring a report; appropriating money; amending Minnesota Statutes 2008, sections 16C.02, by adding a subdivision; 16C.03, subdivision 3; 16C.08, subdivision 2; 16E.01, subdivisions 1a, 3; 16E.02, subdivision 1; 16E.03, subdivisions 2, 4, by adding subdivisions; 16E.04, subdivision 1; 16E.07, subdivision 1; proposing coding for new law in Minnesota Statutes, chapter 16E.

Reported the same back with the following amendments:

Page 10, after line 19, insert:

"Sec. 15. Laws 2009, chapter 37, article 2, section 3, subdivision 8, is amended to read:

Subd. 8. Telecommunications Access Minnesota ~~600,000~~ 300,000 ~~600,000~~ 300,000

$300,000 the first year and $300,000 the second year are for transfer to the commissioner of human services to supplement the ongoing operational expenses of the Minnesota Commission Serving Deaf and Hard-of-Hearing People. This appropriation is

Journal of the House - 51st Day - Monday, May 11, 2009 - Top of Page 5093

from the telecommunication access Minnesota fund, and is added to the commission's base. This appropriation consolidates, and is not in addition to, appropriation language from Laws 2006, chapter 282, article 11, section 4, and Laws 2007, chapter 57, article 2, section 3, subdivision 7.

$300,000 each year is from the telecommunications access fund to the commissioner of commerce for a grant to the Legislative Coordinating Commission for a pilot program to provide captioning of live streaming of legislative sessions on the commission's Web site and a grant to the Commission of Deaf, DeafBlind, and Hard-of-Hearing Minnesotans to provide information on their Web site in American Sign Language and to provide technical assistance to state agencies. The commissioner of commerce may allocate a portion of this money to the Office of Technology to coordinate technology accessibility and usability."

Page 11, delete section 17

Renumber the sections in sequence

Correct the title numbers accordingly

With the recommendation that when so amended the bill pass.

The report was adopted.

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

H. F. No. 2367, A bill for an act relating to property taxation; providing a property tax abatement for newly constructed residential structures in flood-damaged areas; appropriating money.

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

The report was adopted.

Carlson from the Committee on Finance to which was referred:

S. F. No. 97, A bill for an act relating to health; providing for the medical use of marijuana; providing civil and criminal penalties; appropriating money; amending Minnesota Statutes 2008, section 13.3806, by adding a subdivision; proposing coding for new law in Minnesota Statutes, chapter 152.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 2008, section 13.3806, is amended by adding a subdivision to read:

Subd. 21. Medical use of marijuana data. Data collected by the commissioner of health relating to registrations for the medical use of marijuana are classified in section 152.25, subdivision 5.

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Sec. 2. [152.22] DEFINITIONS.

Subdivision 1. Applicability. For purposes of sections 152.22 to 152.31, the terms defined in this section have the meanings given them.

Subd. 2. Allowable amount of marijuana. (a) With respect to a qualifying patient, the "allowable amount of marijuana" means:

(1) 2.5 ounces of usable marijuana; and

(2) six marijuana plants contained in an enclosed, locked facility if the qualifying patient's registry identification card provides that the qualifying patient is authorized to cultivate marijuana.

(b) With respect to a primary caregiver, the "allowable amount of marijuana" for each patient means:

(1) 2.5 ounces of usable marijuana; and

(2) six marijuana plants contained in an enclosed, locked facility if the primary caregiver's registry identification card provides that the primary caregiver is authorized to cultivate marijuana.

(1) six marijuana plants; and

(2) any amount of other parts of the marijuana plant.

Subd. 3. Commissioner. "Commissioner" means the commissioner of health.

Subd. 4. Debilitating medical condition. "Debilitating medical condition" means:

(1) cancer, glaucoma, acquired immune deficiency syndrome, hepatitis C, Tourette's syndrome, or the treatment of these conditions;

(2) a chronic or debilitating disease or medical condition or its treatment that produces one or more of the following: cachexia or wasting syndrome; intractable pain, as defined in section 152.125, subdivision 1; severe nausea; seizures, including, but not limited to, those characteristic of epilepsy; severe and persistent muscle spasms, including, but not limited to, those characteristic of multiple sclerosis and Crohn's disease; or agitation of Alzheimer's disease;

(3) the condition of an HIV-positive patient when the patient's condition has worsened and the patient's physician believes the patient could benefit from consumption of marijuana; or

(4) any other medical condition or its treatment approved by the commissioner.

Subd. 5. Department. "Department" means the Minnesota Department of Health.

Subd. 6. Medical use of marijuana. "Medical use of marijuana" means the acquisition, possession, use, cultivation, manufacture, delivery, transfer, or transportation of marijuana or paraphernalia, as defined in section 152.01, subdivision 18, relating to the consumption of marijuana to alleviate a registered qualifying patient's debilitating medical condition or symptoms associated with the medical condition.

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Subd. 7. Practitioner. "Practitioner" means a Minnesota licensed doctor of medicine, a Minnesota licensed doctor of osteopathy licensed to practice medicine, a Minnesota licensed physician assistant acting within the scope of authorized practice, or a Minnesota licensed advance practice registered nurse.

Subd. 8. Primary caregiver. "Primary caregiver" means a person who is at least 21 years old and who has agreed to assist with a qualifying patient's medical use of marijuana. A primary caregiver may assist no more than five qualifying patients with their medical use of marijuana.

Subd. 9. Qualifying patient. "Qualifying patient" means a person who has been diagnosed by a practitioner as having a debilitating medical condition.

Subd. 10. Registry identification card. "Registry identification card" means a document issued by the commissioner that identifies a person as a qualifying patient or primary caregiver.

Subd. 11. Usable marijuana. "Usable marijuana" means the dried leaves and flowers of the marijuana plant, and any mixture or preparation of it, but does not include the seeds, stalks, and roots of the plant.

Subd. 12. Written certification. "Written certification" means a statement signed and dated by a practitioner, stating that in the practitioner's professional opinion the potential benefits of the medical use of marijuana would likely outweigh the health risks for the qualifying patient. A written certification must be reviewed by the practitioner annually and shall only be made in the course of a bona fide practitioner-patient relationship after the practitioner has completed a physical examination of the patient and a full assessment of the qualifying patient's medical history. The written certification shall specify the qualifying patient's debilitating medical condition or conditions and recommend the medical use of marijuana to alleviate the condition or symptoms associated with the condition.

Sec. 3. [152.23] PROTECTIONS FOR MEDICAL USE OF MARIJUANA.

Subdivision 1. Qualifying patient. A qualifying patient who possesses a registry identification card shall not be subject to arrest, prosecution, or penalty in any manner, or denied any right or privilege, including, but not limited to, civil penalty or disciplinary action by a business or occupational or professional licensing board or entity, for the medical use of marijuana, provided that the qualifying patient possesses an amount of marijuana that does not exceed the allowable amount.

Subd. 2. Primary caregiver. A primary caregiver who possesses a registry identification card shall not be subject to arrest, prosecution, or penalty in any manner, or denied any right or privilege, including, but not limited to, civil penalty or disciplinary action by a business or occupational or professional licensing board or entity, for assisting a qualifying patient to whom the primary caregiver is connected through the commissioner's registration process with the medical use of marijuana, provided that the primary caregiver possesses an amount of marijuana that does not exceed the allowable amount of marijuana for each qualifying patient to whom the primary caregiver is connected through the registration process.

Subd. 3. Dismissal of charges. If a qualifying patient or a primary caregiver who is not in possession of a registry identification card is arrested for possession of an amount of marijuana that does not exceed the allowable amount or is charged with this, the patient or caregiver shall be released from custody and the charges dismissed upon production of a valid registry identification card issued in the person's name.

Subd. 4. Discrimination prohibited. (a) No school or landlord may refuse to enroll or lease to, or otherwise penalize, a person solely for the person's status as a registered qualifying patient or a registered primary caregiver, unless failing to do so would place the school or landlord in violation of federal law.

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(b) For the purposes of medical care, including organ transplants, a registered qualifying patient's authorized use of marijuana according to sections 152.22 to 152.31 is considered the equivalent of the authorized medication used at the discretion of a physician, and does not constitute the use of an illicit substance.

(c) Unless a failure to do so would put an employer in violation of federal law or federal regulations, an employer may not discriminate against a person in hiring, termination, or any term or condition of employment, or otherwise penalize a person, if the discrimination is based upon either of the following:

(1) the person's status as a registered qualifying patient or a registered primary caregiver; or

(2) a registered qualifying patient's positive drug test for marijuana components or metabolites, unless the patient used, possessed, or was impaired by marijuana on the premises of the place of employment or during the hours of employment.

(d) A person shall not be denied custody of or visitation rights or parenting time with a minor solely for the person's status as a registered qualifying patient or a registered primary caregiver, and there shall be no presumption of neglect or child endangerment for conduct allowed under sections 152.22 to 152.31, unless the person's behavior is such that it creates an unreasonable danger to the safety of the minor as established by clear and convincing evidence.

Subd. 5. Presumption. (a) There is a presumption that a qualifying patient or primary caregiver is engaged in the medical use of marijuana if the qualifying patient or primary caregiver:

(1) is in possession of a registry identification card; and

(2) is in possession of an amount of marijuana that does not exceed the amount permitted under sections 152.22 to 152.31.

(b) The presumption may be rebutted by evidence that conduct related to marijuana was not for the purpose of alleviating the qualifying patient's debilitating medical condition or symptoms associated with the medical condition.

Subd. 6. Caregiver's reimbursement. A primary caregiver who is not a registered organization may receive reimbursement from a registered qualifying patient for costs associated with assisting with a registered qualifying patient's medical use of marijuana. To be reimbursable under this subdivision, a cost must have been actually incurred by the caregiver. Examples of reimbursable costs include mileage, travel expenses, price paid to obtain supplies, and the price paid to a registered organization for marijuana. A primary caregiver may not be paid any extra fee or compensation for serving as a caregiver. Reimbursement does not constitute sale of controlled substances.

Subd. 7. Practitioner. A practitioner shall not be subject to arrest, prosecution, or penalty in any manner or denied any right or privilege, including, but not limited to, civil penalty or disciplinary action by the Board of Medical Practice or by another business or occupational or professional licensing board or entity, solely for providing written certifications or otherwise stating that, in the practitioner's professional opinion, the potential benefits of the medical use of marijuana would likely outweigh the health risks for a patient, provided that nothing shall prevent a practitioner from being sanctioned for failure to properly evaluate a patient's medical condition or otherwise violate the standard of care for evaluating medical conditions.

Subd. 8. Property rights. Any interest in or right to property that is lawfully possessed, owned, or used in connection with the medical use of marijuana as authorized in sections 152.22 to 152.31, or acts incidental to such use, is not forfeited under sections 609.531 to 609.5318.

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Subd. 9. Arrest and prosecution prohibited. No person is subject to arrest or prosecution for any offense related to the possession of marijuana, including constructive possession, conspiracy, aiding and abetting, or being an accessory, solely for being in the presence or vicinity of the medical use of marijuana as permitted under sections 152.22 to 152.31 or, if the person is a primary caregiver acting in compliance with sections 152.22 to 152.31, for assisting a registered qualifying patient with using or administering marijuana.

Subd. 10. Nursing facilities. Nursing facilities licensed under chapter 144A or boarding care homes licensed under section 144.50 may adopt reasonable restrictions on the use of medical marijuana by their residents. The restrictions may include a provision that the facility will not store or maintain the patient's supply of medical marijuana, that caregivers or the hospice agencies serving their residents are not responsible for providing the marijuana for qualifying patients, that marijuana be consumed in a method other than smoking, and that medical marijuana be consumed only in a place specified by the facility. Nothing contained herein, however, shall require the facilities to adopt such restrictions and no facility shall unreasonably limit a qualifying patient's access to or use of marijuana.

Sec. 4. [152.25] REGISTRY IDENTIFICATION CARDS; ISSUANCE.

Subdivision 1. Requirements; issuance. (a) The commissioner shall issue registry identification cards to qualifying patients who submit:

(1) a written certification issued within the 90 days immediately preceding the date of application;

(2) the application or renewal fee of $100;

(3) the name, address, and date of birth of the qualifying patient, except that if the applicant is homeless, no address is required;

(4) the name, address, and telephone number of the qualifying patient's practitioner;

(5) the name, address, and date of birth of each primary caregiver of the qualifying patient, if any, and a signed statement from the individual designated to be a primary caregiver agreeing to be designated as such. A qualifying patient may designate only one primary caregiver except that one additional caregiver may be designated if the qualifying patient is under the age of 18, or the qualifying patient designates a registered organization to cultivate marijuana for the patient's medical use and the patient requests the assistance of the second caregiver that is not a registered organization to assist with the qualifying patient's medical use. A qualifying patient may name a maximum of two primary caregivers, one of whom must be a registered organization. For the registered organization designated, the name and address of the registered organization must be submitted; and

(6) a designation as to who will be allowed to cultivate marijuana plants for the qualifying patient's medical use. Only one person or entity will be permitted to cultivate marijuana for a qualified patient. A qualifying patient or the qualifying patient's caregiver may only be designated to cultivate marijuana if a registered organization is not located within 30 miles of the qualifying patient's home.

(b) The commissioner shall not issue a registry identification card to a qualifying patient under the age of 18 unless:

(1) the qualifying patient's practitioner has explained the potential risks and benefits of the medical use of marijuana to the qualifying patient and to a parent, guardian, or person having legal custody of the qualifying patient; and

(2) a parent, guardian, or person having legal custody consents in writing to:

(i) allow the qualifying patient's medical use of marijuana;

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(ii) serve as one of the qualifying patient's primary caregivers; and

(iii) control the acquisition of marijuana, the dosage, and the frequency of the medical use of marijuana by the qualifying patient.

(c) The commissioner shall verify the information contained in an application or renewal submitted under this section and shall approve or deny an application or renewal within 15 days of receiving it. The commissioner may deny an application or renewal only if the applicant did not provide the information required under this section or if the commissioner determines that the information provided was falsified. Rejection of an application or renewal is a final agency action, subject to judicial review. Jurisdiction and venue for judicial review are vested in the district court.

(d) The commissioner shall issue a registry identification card to each primary caregiver, if any, who is named in a qualifying patient's approved application, up to a maximum of two primary caregivers per qualifying patient. If a primary caregiver named by the qualifying patient is a registered organization, a registry identification card shall be provided under section 152.31, subdivision 2.

(e) The commissioner shall issue a registry identification card under paragraphs (a) and (d) within five days of approving an application or renewal. The card expires one year after the date of issuance. A registry identification card shall contain:

(1) a photograph of the cardholder;

(2) the name, address, and date of birth of the qualifying patient;

(3) the name, address, and date of birth of each primary caregiver of the qualifying patient, if any, if the primary caregiver is not a registered organization;

(4) the date of issuance and expiration date of the registry identification card;

(5) a random registry identification number; and

(6) a clear indication of whether the cardholder has been authorized to cultivate marijuana plants for the qualifying patient's medical use.

Subd. 2. Notification of changes; penalties. (a) A qualifying patient who has been issued a registry identification card shall notify the commissioner within ten days of any change in the qualifying patient's name, address, or primary caregiver, or if the qualifying patient ceases to have a debilitating medical condition.

(b) Failure to notify the commissioner of a change as required under paragraph (a) is a civil violation, punishable by a fine of no more than $150. If the person has ceased to have a debilitating medical condition, the card is null and void and the person is liable for any other penalties that may apply to the person's nonmedical use of marijuana.

(c) A qualifying patient must notify the commissioner of a change in the qualifying patient's designation as to who will be allowed to cultivate marijuana plants for the qualifying patient's medical use.

(d) When a qualifying patient or primary caregiver notifies the commissioner of any changes under this subdivision, the commissioner shall issue the qualifying patient and each primary caregiver a new registry identification card within ten days of receiving the updated information and a $10 fee.

(e) When a registered qualifying patient ceases to use the assistance of a registered primary caregiver, the commissioner shall notify the primary caregiver within ten days. The primary caregiver's protections as provided under section 152.23 expire ten days after notification by the commissioner.

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Subd. 3. Lost cards. If a registered qualifying patient or a registered primary caregiver loses a registry identification card, the patient or caregiver shall notify the commissioner and submit a $15 fee within ten days of losing the card. Within five days of receiving notification and the required fee, the commissioner shall issue a new registry identification card with a new random identification number.

Subd. 4. Card as probable cause. Possession of, or application for, a registry identification card does not constitute probable cause or reasonable suspicion, nor shall it be used to support a search of the person or property of the person possessing or applying for the registry identification card, or otherwise subject the person or property of the person to inspection by any governmental agency.

Subd. 5. Data practices. (a) Data in registration applications and supporting data submitted by qualifying patients or primary caregivers, including data on primary caregivers and practitioners, are private data on individuals or nonpublic data as defined in section 13.02.

(b) The commissioner shall maintain a list of persons to whom the commissioner has issued registry identification cards. Data in the list are private data on individuals or nonpublic data except that:

(1) upon request of a law enforcement agency, the commissioner shall verify whether a registry identification card is valid solely by confirming the registry identification number; and

(2) the commissioner may notify law enforcement of falsified or fraudulent information submitted for purposes of obtaining or renewing a registration card.

Subd. 6. Report. The commissioner shall report annually to the legislature on the number of applications for registry identification cards, the number of qualifying patients and primary caregivers approved, the nature of the debilitating medical conditions of the qualifying patients, the number of registry identification cards revoked, and the number of practitioners providing written certification for qualifying patients. The commissioner must not include identifying information on qualifying patients, primary caregivers, or practitioners in the report.

Subd. 7. Submission of false records; criminal penalty. A person who knowingly submits false records or documentation required by the commissioner of health to certify an organization under sections 152.22 to 152.31 is guilty of a felony and may be sentenced to imprisonment for not more than five years or to payment of a fine of not more than $10,000, or both.

Subd. 8. Criminal background check for primary caregivers. Before issuing a registry identification card to a primary caregiver under this section, the commissioner shall request a criminal history background check on the caregiver from the superintendent of the Bureau of Criminal Apprehension. The provisions of section 152.31, subdivision 7, apply to the background check. A person may not serve as a primary caregiver and a registry identification card may not be issued to the person if the person has been convicted of a drug felony as defined in section 152.31, subdivision 7, paragraph (a). Notwithstanding this provision, if the commissioner determines that the person's conviction was for the medical use of marijuana or assisting with the medical use of marijuana, the commissioner may issue the person a registry identification card and allow the person to serve as a primary caregiver.

Sec. 5. [152.26] CONSTRUCTION.

(a) Sections 152.22 to 152.31 do not permit:

(1) a person to undertake a task under the influence of marijuana, when doing so would constitute negligence, professional malpractice, or failure to practice with reasonable skill and safety;

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(2) smoking of marijuana:

(i) in a school bus or other form of public transportation;

(ii) on school grounds;

(iii) in a correctional facility;

(iv) in any public place; or

(v) where the smoke may be inhaled by a minor child;

(3) a person to operate, navigate, or be in actual physical control of any motor vehicle, aircraft, train, or motorboat, or work on transportation property, equipment, or facilities while under the influence of marijuana. However, a registered qualifying patient shall not be considered to be under the influence solely for having marijuana metabolites in the patient's system;

(4) possession of marijuana on school grounds; or

(5) possession of marijuana on correctional facility property.

(b) Nothing in sections 152.22 to 152.31 shall be construed to require:

(1) a government medical assistance program or private health insurer to reimburse a person for costs associated with the medical use of marijuana; or

(2) an employer to accommodate the medical use of marijuana in any workplace.

Sec. 6. [152.27] PENALTIES.

(a) Fraudulent representation to a law enforcement official of any fact or circumstance relating to the medical use of marijuana to avoid arrest or prosecution is a gross misdemeanor, which shall be in addition to any other penalties that may apply for making a false statement and for the nonmedical use of marijuana. If a person convicted of violating this section is a qualifying patient or a primary caregiver, the person is disqualified from further participation under sections 152.22 to 152.31 and the person's registry card is void.

(b) In addition to any other penalty applicable in law, a qualifying patient is guilty of a felony and may be sentenced to imprisonment for not more than two years or to payment of a fine of not more than $3,000, or both, if the patient:

(1) sells, transfers, loans, or otherwise gives another person the patient's registry identification card; or

(2) sells, transfers, loans, or otherwise gives another person marijuana obtained under sections 152.22 to 152.31.

In addition, the person is disqualified from further participation under sections 152.22 to 152.31 and the person's registry card is void.

Sec. 7. [152.29] AFFIRMATIVE DEFENSE AND DISMISSAL FOR MEDICAL MARIJUANA.

(a) Except as provided in section 152.26, a person and a person's primary caregiver, if any, may assert the medical purpose for using marijuana as a defense to any prosecution involving marijuana, and such defense shall be presumed valid where the evidence shows that:

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(1) a practitioner has stated that, in the practitioner's professional opinion, after having completed a full assessment of the person's medical history and current medical condition made in the course of a bona fide practitioner-patient relationship, the potential benefits of using marijuana for medical purposes would likely outweigh the health risks for the person; and

(2) the person and the person's primary caregiver, if any, were collectively in possession of a quantity of marijuana that was not more than was reasonably necessary to ensure the uninterrupted availability of marijuana for the purpose of alleviating the person's medical condition or symptoms associated with the medical condition.

(b) A person may assert the medical purpose for using marijuana in a motion to dismiss, and the charges shall be dismissed following an evidentiary hearing where the defendant shows the elements listed in paragraph (a).

(c) Any interest in or right to property that was possessed, owned, or used in connection with a person's use of marijuana for medical purposes shall not be forfeited if the person or the person's primary caregiver demonstrates the person's medical purpose for using marijuana under this section.

Sec. 8. [152.30] SEVERABILITY.

Any provision of sections 152.22 to 152.31 being held invalid as to any person or circumstances shall not affect the application of any other provision of sections 152.22 to 152.31 that can be given full effect without the invalid section or application.

Sec. 9. [152.31] REGISTERED ORGANIZATION.

Subdivision 1. Definition. For purposes of this section, "registered organization" means a nonprofit entity registered with the commissioner under this section that acquires, possesses, cultivates, manufactures, delivers, transfers, transports, supplies, or dispenses marijuana, or related supplies and educational materials to registered qualifying patients and the qualifying patients' registered primary caregivers. A registered organization is a primary caregiver, although it may supply marijuana to any number of registered qualifying patients who have designated it as one of the qualifying patient's primary caregivers. A registered organization may not possess more than the allowable amount of marijuana.

Subd. 2. Registration requirements. (a) The commissioner shall issue a registered organization license within 20 days to any person who provides:

(1) a fee in an amount established by the commissioner notwithstanding section 16A.1283, which shall not exceed $2,000;

(2) the name of the registered organization;

(3) the physical addresses of the registered organization and any other real property where marijuana is to be possessed, cultivated, manufactured, supplied, or dispensed relating to the operations of the registered organization; and

(4) the name, address, and date of birth of any person who is an agent of or employed by the registered organization.

(b) The commissioner shall issue each agent and employee of a registered organization a registry identification card for a cost of $15 each within ten days of receipt of the person's identifying information and the fee. Each card shall specify that the cardholder is an employee or agent of a registered organization.

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Subd. 3. Expiration. A license for a registered organization and each employee or agent registry identification card expires one year after the date of issuance.

Subd. 4. Inspection. Registered organizations are subject to reasonable inspection by the commissioner.

Subd. 5. Organization requirements. (a) Registered organizations must be established as nonprofit entities. Registered organizations are subject to all applicable state laws governing nonprofit entities, but need not qualify for federal tax exemption under the Internal Revenue Code.

(b) Registered organizations may not be located within 500 feet of the property line of a public school, private school, or structure used primarily for religious services or worship.

(c) The operating documents of a registered organization shall include procedures for the oversight of the registered organization and procedures to ensure adequate record keeping.

(d) A registered organization shall notify the commissioner within ten days of when an employee or agent ceases to work at the registered organization.

(e) The registered organization shall notify the commissioner before a new agent or employee begins working at the registered organization, in writing, and the organization shall submit a $10 fee for the person's registry identification card.

(f) No registered organization shall be subject to prosecution, search, seizure, or penalty in any manner or denied any right or privilege, including, but not limited to, civil penalty or disciplinary action by a business or occupational or professional licensing board or entity, for acting according to sections 152.22 to 152.31 to assist registered qualifying patients to whom it is connected through the commissioner's registration process with the medical use of marijuana, provided that the registered organization possesses an amount of marijuana that does not exceed the allowable amount.

(g) No employees, agents, or board members of a registered organization shall be subject to arrest, prosecution, search, seizure, or penalty in any manner or denied any right or privilege, including, but not limited to, civil penalty or disciplinary action by a business, occupational, or professional licensing board or entity, for working for a registered organization according to sections 152.22 to 152.31.

(h) The registered organization is prohibited from acquiring, possessing, cultivating, manufacturing, delivering, transferring, transporting, supplying, or dispensing marijuana for any purpose except to assist registered qualifying patients with the medical use of marijuana directly or through the qualifying patients' other primary caregiver.

(i) The registered organization shall implement appropriate security measures to deter and prevent the unauthorized entrance into areas containing marijuana or marijuana plants and the theft of marijuana or marijuana plants. By December 1 of each year, the organization shall submit a summary of the security measures implemented to the commissioner. The commissioner shall review these measures and, if deemed advisable, require reasonable upgrades to security to better protect the marijuana or marijuana plants.

(j) Registered organizations may cultivate marijuana only indoors.

Subd. 6. Delivery; charging for services. (a) A registered organization may deliver up to 2.5 ounces of usable marijuana to a qualifying patient within the state to be used in accordance with sections 152.22 to 152.31.

(b) A registered organization may charge a qualifying patient or a primary caregiver for authorized services rendered under sections 152.22 to 152.31. Payment under this paragraph does not constitute sale of controlled substances.

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Subd. 7. Background checks; felony drug convictions. (a) As used in this subdivision, "felony drug offense" means a violation of a state or federal controlled substance law that is classified as a felony under Minnesota law or would be classified as a felony under Minnesota law if committed in Minnesota, regardless of the sentence imposed.

(b) The department shall request a criminal history background check from the superintendent of the Bureau of Criminal Apprehension on all employees, agents, and board members of a registered organization. An application for registry identification cards for employees, agents, and board members must be accompanied by an executed criminal history consent form, including fingerprints.

(c) The superintendent of the Bureau of Criminal Apprehension shall perform the background check required under paragraph (b) by retrieving criminal history data maintained in the Criminal Justice Information System computers and shall also conduct a search of the national criminal records repository, including the criminal justice data communications network. The superintendent is authorized to exchange fingerprints with the Federal Bureau of Investigation for purposes of the criminal history check.

(d) The Bureau of Criminal Apprehension and its agents may not directly or indirectly disclose to the Federal Bureau of Investigation or any other person that the purpose of the background check is related to the medical use of marijuana or registered organizations.

(e) The department shall refuse to issue a registry card to any agent, employee, or board member of a registered organization who has been convicted of a drug felony. The department, without disclosing the actual results of the national records check, shall notify the registered organization in writing of the purpose for denying the registry identification card. However, the department may grant the person a registry identification card if the person's conviction was for the medical use of marijuana or assisting with the medical use of marijuana.

(f) If a registered organization has employed an agent, board member, or employee and is notified that the person failed the background check, it shall terminate the person's status as an agent, board member, or employee within 24 hours of receiving written notification. The result of the criminal background check is private information, and the registered organization may not disclose it, except to defend itself of any charges related to employment law.

(g) No person who has been convicted of a drug felony offense may be the agent, board member, or employee of a registered organization. Notwithstanding this provision, a person may apply to the department for a waiver if the person's conviction was for the medical use of marijuana or assisting with the medical use of marijuana. A person who is employed by, an agent of, or a board member of a registered organization in violation of this section is guilty of a civil violation punishable by a fine of up to $1,000. A subsequent violation of this section is a gross misdemeanor.

(h) No registered organization may knowingly and willfully allow a person who has been convicted of a drug felony to be its agent, board member, or employee unless the department has granted the person a registry identification card because the person's conviction was for the medical use of marijuana. A violation is punishable by a fine of up to $2,000.

Subd. 8. Penalty. (a) The registered organization may not possess an amount of marijuana that exceeds the allowable amount of marijuana. The registered organization may not dispense, deliver, or otherwise transfer marijuana to a person other than a qualifying patient or the patient's primary caregiver. An intentional violation of this subdivision is a felony punishable by imprisonment for not more than two years or by payment of a fine of not more than $3,000, or both. This penalty is in addition to any other penalties applicable in law.

(b) A person convicted of violating paragraph (a) may not continue to be affiliated with the registered organization and is disqualified from further participation under sections 152.22 to 152.31.

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Sec. 10. [152.32] SUNSET.

Sections 152.22 to 152.32 and 13.3806, subdivision 21, expire October 1, 2011.

Sec. 11. IMPLEMENTATION.

The commissioner of health must begin issuing registry identification cards and registered organization licenses under Minnesota Statutes, sections 152.22 to 152.32, by October 1, 2009.

Sec. 12. FEES.

Fees raised in Minnesota Statutes, sections 152.22 to 152.31, are appropriated and deposited in the state government special revenue fund.

Sec. 13. APPROPRIATIONS.

$436,000 for fiscal year 2010 and $517,000 for fiscal year 2011 are appropriated from the state government special revenue fund to the commissioner of health to implement Minnesota Statutes, sections 152.22 to 152.31. This is a onetime appropriation.

Sec. 14. EFFECTIVE DATE.

Sections 1 to 9 are effective August 1, 2009."

Delete the title and insert:

"A bill for an act relating to health; providing for the medical use of marijuana; providing civil and criminal penalties; providing an expiration date for medical use of marijuana provisions; appropriating money; amending Minnesota Statutes 2008, section 13.3806, by adding a subdivision; proposing coding for new law in Minnesota Statutes, chapter 152."

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

The report was adopted.

Carlson from the Committee on Finance to which was referred:

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

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. MINNESOTA RESOURCES APPROPRIATION.

The sums shown in the columns marked "Appropriations" are appropriated to the agencies and for the purposes specified in this act. The appropriations are from the environment and natural resources trust fund, or another named fund, and are available for the fiscal years indicated for each purpose. The figures "2010" and "2011" used in

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this act mean that the appropriations listed under them are available for the fiscal year ending June 30, 2010, or June 30, 2011, respectively. "The first year" is fiscal year 2010. "The second year" is fiscal year 2011. "The biennium" is fiscal years 2010 and 2011.

APPROPRIATIONS

Available for the Year

Ending June 30

2010 2011

Sec. 2. MINNESOTA RESOURCES.

Subdivision 1. Total Appropriation $26,088,000 $-0-

Appropriations by Fund

2010 2011

Environment and

Natural Resources

Trust 25,622,000 -0-

Great Lakes Protection

Account 66,000 -0-

State Land and Water

Conservation Account

(LAWCON) 400,000 -0-

Appropriations are available for two years beginning July 1, 2009, unless otherwise stated in the appropriation. Any unencumbered balance remaining in the first year does not cancel and is available for the second year.

Subd. 2. Definitions

(a) "Trust fund" means the Minnesota environment and natural resources trust fund referred to in Minnesota Statutes, section 116P.02, subdivision 6.

(b) "Great Lakes protection account" means the account referred to in Minnesota Statutes, section 116Q.02.

(c) "State land and water conservation account (LAWCON)" means the state land and water conservation account in the natural resources fund referred to in Minnesota Statutes, section 116P.14.

Subd. 3. Natural Resource Data and Information 5,995,000 -0-

(a) Minnesota County Biological Survey

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$2,100,000 is from the trust fund to the commissioner of natural resources for continuation of the Minnesota county biological survey to provide a foundation for conserving biological diversity by systematically collecting, interpreting, and delivering data on plant and animal distribution and ecology, native plant communities, and functional landscapes.

(b) County Geological Atlas and South-Central Minnesota Groundwater

$2,695,000 is from the trust fund for collection and interpretation of subsurface geological information and acceleration of the county geologic atlas program. $820,000 of this appropriation is to the Board of Regents of the University of Minnesota for the geological survey to continue and to initiate the production of county geologic atlases. $1,875,000 of this appropriation is to the commissioner of natural resources to investigate the physical and recharge characteristics of the Mt. Simon aquifer. This appropriation represents a continuing effort to complete the county geologic atlases throughout the state. This appropriation is available until June 30, 2012, at which time the project must be completed and final products delivered, unless an earlier date is specified in the work program.

$400,000 is from the trust fund to the Board of Water and Soil Resources to accelerate the county soil survey mapping and Web-based data delivery. This appropriation represents a continuing effort to complete the mapping. The soil surveys must be done on a cost-share basis with local and federal funds.

(d) Springshed Mapping for Trout Stream Management

$500,000 is from the trust fund to continue to identify and delineate supply areas and springsheds for springs serving as coldwater sources for trout streams and to assess the impacts from development and water appropriations. Of this appropriation, $250,000 is to the Board of Regents of the University of Minnesota and $250,000 is to the commissioner of natural resources.

(e) Restorable Wetlands Inventory

$300,000 is from the trust fund to the commissioner of natural resources for an agreement with Ducks Unlimited, Inc., to complete the inventory, mapping, and digitizing of drained restorable wetlands in Minnesota. This appropriation is available until June 30, 2012, at which time the project must be completed and final products delivered, unless an earlier date is specified in the work program.

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Subd. 4. Land, Habitat, and Recreation 13,227,000 -0-

Appropriations by Fund

Environment and

Natural Resources

Trust 12,827,000 -0-

State Land and Water

Conservation Account

(LAWCON) 400,000 -0-

(a) State Parks Acquisition

$590,000 is from the trust fund to the commissioner of natural resources to acquire in-holdings for state parks. Land acquired with this appropriation must be sufficiently improved to meet at least minimum management standards as determined by the commissioner of natural resources. A list of proposed acquisitions must be provided as part of the required work program.

(b) State Trail Acquisition

$1,000,000 is from the trust fund to the commissioner of natural resources to assist in the acquisition of the Brown's Creek Segment of the Willard Munger Trail in Washington County and Paul Bunyan State Trail in the city of Bemidji.

$1,290,000 is from the trust fund to the Metropolitan Council for subgrants for the acquisition of lands within the approved park unit boundaries of the metropolitan regional park system. This appropriation may not be used for the purchase of residential structures. A list of proposed fee title and easement acquisitions must be provided as part of the required work program. All funding for conservation easements must include a long-term stewardship plan and funding for monitoring and enforcing the agreement. This appropriation must be matched by at least 40 percent of nonstate money and must be committed by December 31, 2009, or the appropriation cancels. This appropriation is available until June 30, 2012, at which time the project must be completed and final products delivered, unless an earlier date is specified in the work program.

(d) Statewide Scientific and Natural Area Acquisition and Restoration

$590,000 is from the trust fund to the commissioner of natural resources to acquire high quality native plant communities and rare features and restore parts of scientific and natural areas as provided

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in Minnesota Statutes, section 86A.05, subdivision 5. A list of proposed acquisitions must be provided as part of the required work program.

(e) Minnesota's Habitat Conservation Partnership (HCP) - Phase VI

$3,375,000 is from the trust fund to the commissioner of natural resources for the sixth appropriation for acceleration of agency programs and cooperative agreements. Of this appropriation, $770,000 is for the Department of Natural Resources agency programs and $2,605,000 is for agreements as follows: $450,000 with Pheasants Forever; $50,000 with Minnesota Deer Hunters Association; $895,000 with Ducks Unlimited, Inc.; $85,000 with National Wild Turkey Federation; $365,000 with the Nature Conservancy; $210,000 with Minnesota Land Trust; $350,000 with the Trust for Public Land; $100,000 with Minnesota Valley National Wildlife Refuge Trust, Inc.; $50,000 with the United States Fish and Wildlife Service; and $50,000 with Friends of Detroit Lakes Watershed Management District to plan, restore, and acquire fragmented landscape corridors that connect areas of quality habitat to sustain fish, wildlife, and plants. The United States Department of Agriculture-Natural Resources Conservation Service is a cooperating partner in the appropriation. Expenditures are limited to the project corridor areas as defined in the work program. Land acquired with this appropriation must be sufficiently improved to meet at least minimum habitat and facility management standards as determined by the commissioner of natural resources. This appropriation may not be used for the purchase of residential structures, unless expressly approved in the work program. All conservation easements must be perpetual and have a natural resource management plan. Any land acquired in fee title by the commissioner of natural resources with money from this appropriation must be designated as an outdoor recreation unit under Minnesota Statutes, section 86A.07. The commissioner may similarly designate any lands acquired in less than fee title. A list of proposed restorations and fee title and easement acquisitions must be provided as part of the required work program. All funding for conservation easements must include a long-term stewardship plan and funding for monitoring and enforcing the agreement. To the maximum extent practical, consistent with contractual easement or fee acquisition obligations, the recipients shall utilize staff resources to identify future projects and shall maximize the implementation of biodiverse, quality restoration projects in the project proposal into the first half of the 2010 fiscal year.

(f) Metro Conservation Corridors (MeCC) - Phase V

$3,375,000 is from the trust fund to the commissioner of natural resources for the fifth appropriation for acceleration of agency programs and cooperative agreements. Of this appropriation,

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$2,185,000 is for Department of Natural Resources agency programs and $1,190,000 is for agreements as follows: $380,000 with the Trust for Public Land; $90,000 with Friends of the Mississippi River; $155,000 with Great River Greening; $250,000 with Minnesota Land Trust; $225,000 with Minnesota Valley National Wildlife Refuge Trust, Inc.; and $90,000 with Friends of the Minnesota Valley for the purposes of planning, restoring, and protecting important natural areas in the metropolitan area, as defined under Minnesota Statutes, section 473.121, subdivision 2, and portions of the surrounding counties, through grants, contracted services, technical assistance, conservation easements, and fee title acquisition. Land acquired with this appropriation must be sufficiently improved to meet at least minimum management standards as determined by the commissioner of natural resources. Expenditures are limited to the identified project corridor areas as defined in the work program. This appropriation may not be used for the purchase of residential structures, unless expressly approved in the work program. All conservation easements must be perpetual and have a natural resource management plan. Any land acquired in fee title by the commissioner of natural resources with money from this appropriation must be designated as an outdoor recreation unit under Minnesota Statutes, section 86A.07. The commissioner may similarly designate any lands acquired in less than fee title. A list of proposed restorations and fee title and easement acquisitions must be provided as part of the required work program. All funding for conservation easements must include a long-term stewardship plan and funding for monitoring and enforcing the agreement. To the maximum extent practical, consistent with contractual easement or fee acquisition obligations, the recipients shall utilize staff resources to identify future projects and shall maximize the implementation of biodiverse, quality restoration projects in the project proposal into the first half of the 2010 fiscal year.

(g) Statewide Ecological Ranking of Conservation Reserve Program (CRP) and Other Critical Lands

$107,000 is from the trust fund to the Board of Water and Soil Resources to continue the efforts funded by the emerging issues account allocation to identify and rank the ecological value of conservation reserve program (CRP) and other critical lands throughout Minnesota using a multiple parameter approach including soil productivity, landscape, water, and wildlife factors.

(h) Protection of Granite Rock Outcrop Ecosystem

$1,500,000 is from the trust fund to the Board of Water and Soil Resources, in cooperation with the Renville Soil and Water Conservation District, to acquire perpetual easements of unique granite rock outcrops located in the Upper Minnesota River Valley and to restore their ecological integrity.

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(i) Minnesota Farm Bill Assistance Project

$1,000,000 is from the trust fund to the Board of Water and Soil Resources to provide funding for technical staff to assist in the implementation provisions of conservation programs including the federal farm bill conservation programs. Documentation must be provided on the number of landowner contacts, program participation, federal dollars leveraged, quantifiable criteria, and measurement of the improvements to water quality and habitat.

(j) Land and Water Conservation Account (LAWCON) Federal Reimbursements

$400,000 is from the state land and water conservation account (LAWCON) in the natural resources fund to the commissioner of natural resources for priorities established by the commissioner for eligible state projects and administrative and planning activities consistent with Minnesota Statutes, section 116P.14, and the federal Land and Water Conservation Fund Act.

Subd. 5. Water Resources 2,063,000 -0-

(a) Removal of Endocrine Disruptors; Treatment and Education

$275,000 is from the trust fund to the Board of Regents at the University of Minnesota to continue research on the removal of endocrine disruptors from Minnesota's waters through strategies of enhancing treatment at wastewater treatment plants and decreasing the use of the compounds. This appropriation is available until June 30, 2012, at which time the project must be completed and final products delivered, unless an earlier date is specified in the work program.

(b) Vulnerability of Fish Populations in Lakes to Endocrine Disrupting Contaminants

$297,000 is from the trust fund to the commissioner of natural resources for an agreement with the United States Geologic Survey and St. Cloud State University to develop quantitative data on juvenile and adult fish vulnerability to endocrine-active emerging contaminants found in Minnesota lakes. This appropriation is available until June 30, 2012, at which time the project must be completed and final products delivered, unless an earlier date is specified in the work program.

$825,000 is from the trust fund to the commissioner of natural resources to assess the consequences of large ecological drivers of change on water quality and habitat dynamics of deep water lakes with coldwater fish populations. This appropriation is available

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until June 30, 2012, at which time the project must be completed and final products delivered, unless an earlier date is specified in the work program.

(d) Intensified Tile Drainage Evaluation

$300,000 is from the trust fund to the Science Museum of Minnesota for the St. Croix watershed research station to conduct a comparative assessment of hydrologic changes in watersheds with and without intensive tile drainage to determine the effects of climate and tile drainage on river erosion. This appropriation is available until June 30, 2012, at which time the project must be completed and final products delivered, unless an earlier date is specified in the work program.

(e) Citizen-Based Stormwater Management

$279,000 is from the trust fund to the commissioner of natural resources for an agreement with Metro Blooms, in cooperation with Minnehaha Creek Watershed District and the city of Minneapolis, to install and evaluate the effectiveness of rain gardens on improving the impaired water of Powderhorn Lake in Minneapolis. This appropriation is available until June 30, 2012, at which time the project must be completed and final products delivered, unless an earlier date is specified in the work program.

(f) Minnesota Drainage Law Analysis and Evaluation

$87,000 is from the trust fund to the commissioner of natural resources for an agreement with Smith Partners PLLP to identify and analyze legal and policy issues where the drainage code conflicts with other laws impacting protection of public waters and wetlands.

Subd. 6. Aquatic and Terrestrial Invasive Species 1,068,000 -0-

Appropriations by Fund

Environment and

Natural Resources

Trust 1,002,000 -0-

Great Lakes

Protection Account 66,000 -0-

(a) Ballast Water Sampling Method Development and Treatment Technology

$300,000 is from the trust fund and $66,000 is from the Great Lakes protection account to the commissioner of the Pollution Control Agency in cooperation with the Department of Natural

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Resources to conduct monitoring for aquatic invasive species in ballast water discharges to Minnesota waters of Lake Superior and to test the effectiveness of ballast water treatment systems.

(b) Emergency Delivery System Development for Disinfecting Ballast Water

$125,000 is from the trust fund to the commissioner of the Pollution Control Agency for an agreement with the United States Geologic Survey to test the viability of treating ballast water through tank access ports or air vents as a means to prevent the spread of invasive species.

$80,000 is from the trust fund to the Board of Regents of the University of Minnesota to assess mechanisms and control of the transmission of Heterosporosis, an emerging fish disease in Minnesota, to assist in future management decisions and research.

(d) Controlling the Movement of Invasive Fish Species

$300,000 is from the trust fund to the Board of Regents of the University of Minnesota to develop and test sonic barriers that could be effective in preventing and controlling the movement of invasive carp in Minnesota's waterways. This appropriation is available until June 30, 2012, at which time the project must be completed and final products delivered, unless an earlier date is specified in the work program.

(e) Prevention and Early Detection of Invasive Earthworms

$150,000 is from the trust fund to the Board of Regents of the University of Minnesota Natural Resources Research Institute for a risk assessment of the methods of spreading, testing of management recommendations, and identification of key areas for action in the state to reduce the impacts of invasive earthworms on hardwood forest productivity. This appropriation is available until June 30, 2012, at which time the project must be completed and final products delivered, unless an earlier date is specified in the work program.

(f) Native Plant Biodiversity, Invasive Plant Species, and Invertebrates

$47,000 is from the trust fund to the commissioner of natural resources for an agreement with Concordia College to survey plant, pollinator, and invertebrate biodiversity in native and restored prairies to assess impacts on invasive species and food sources for grassland birds and ecosystem services.

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Subd. 7. Energy 2,323,000 -0-

(a) Options to Decarbonize Minnesota's Electrical Power System

$143,000 is from the trust fund to the Board of Regents of the University of Minnesota to analyze the Minnesota Climate Change Advisory Group's greenhouse gas reduction recommendations related to electrical power from a life-cycle analysis and a socio-political perspective.

(b) Projecting Environmental Trajectories for Energy-Water-Habitat Planning

$180,000 is from the trust fund to the Board of Regents of the University of Minnesota to combine detailed climatic records of Minnesota with present and past ecosystem boundaries to forecast future fine-scale flow of climate across the state impacting human activities and natural resources.

$2,000,000 is from the trust fund to the commissioner of commerce for an agreement with the Center for Energy and Environment for demonstration of innovative residential energy efficiency delivery and financing strategies, training, installation, evaluation, and recommendations for a utility residential energy conservation program.

Subd. 8. Administration and Other 1,412,000 -0-

(a) Contract Management

$158,000 is from the trust fund to the commissioner of natural resources for contract management for duties assigned in Laws 2007, chapter 30, section 2, and Laws 2008, chapter 367, section 2, and for additional duties as assigned in this section.

(b) Legislative-Citizen Commission on Minnesota Resources (LCCMR)

$1,254,000 is from the trust fund for fiscal years 2010 and 2011 and is for administration as provided in Minnesota Statutes, section 116P.09, subdivision 5.

Subd. 9. Availability of Appropriations

Unless otherwise provided, the amounts in this section are available until June 30, 2011, when projects must be completed and final products delivered. For acquisition of real property, the amounts in this section are available until June 30, 2012, if a binding contract is entered into by June 30, 2011, and closed not

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later than June 30, 2012. If a project receives a federal grant, the time period of the appropriation is extended to equal the federal grant period.

Subd. 10. Data Availability Requirements

Data collected by the projects funded under this section that have value for planning and management of natural resources, emergency preparedness, and infrastructure investments must conform to the enterprise information architecture developed by the Office of Enterprise Technology. Spatial data must conform to geographic information system guidelines and standards outlined in that architecture and adopted by the Minnesota Geographic Data Clearinghouse at the Land Management Information Center. A description of these data that adheres to the Office of Enterprise Technology geographic metadata standards must be submitted to the Land Management Information Center to be made available online through the clearinghouse and the data must be accessible and free to the public unless made private under the Data Practices Act, Minnesota Statutes, chapter 13.

To the extent practicable, summary data and results of projects funded under this section should be readily accessible on the Internet and identified as an environment and natural resources trust fund project.

Subd. 11. Project Requirements

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

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

(2) plant vegetation only of native ecotypes to Minnesota and preferably of the local ecotype using a high diversity of species grown as close to the restoration site as possible;

(3) when restoring prairies:

(i) use seeds and plant materials that originate as close to the site as possible in the same county as the restoration site or within 25 miles of the county border, but not across the boundary of an ecotype region. Ecotype regions are defined by the Department of Natural Resources map, "Minnesota Ecotype Regions Map - County Landscape Groupings Based on Ecological Subsections," dated February 15, 2007;

(ii) if seeds and plant material described in item (i) are not available, use seeds and plant materials from within the same ecotype region; or

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(iii) if seeds and plant material described in item (i) or (ii) are not available, use seeds and plant materials from within the same ecotype region or within 25 miles of the ecotype region boundary.

Use of seeds and plant materials from beyond the geographic areas described in this clause must be expressly approved in the work program;

(4) provide that all conservation easements:

(i) are perpetual;

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

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

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

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

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

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

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

(b) The Legislative-Citizen Commission on Minnesota Resources shall review the requirement in paragraph (a), clause (6), and provide a recommendation whether to continue or modify the requirement in future years. The commission may waive the application of paragraph (a), clause (6), for specific projects.

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Subd. 12. Payment Conditions and Capital Equipment Expenditures

All agreements, grants, or contracts referred to in this section must be administered on a reimbursement basis unless otherwise provided in this section. Notwithstanding Minnesota Statutes, section 16A.41, expenditures made on or after July 1, 2009, or the date the work program is approved, whichever is later, are eligible for reimbursement unless otherwise provided in this section. Periodic payment must be made upon receiving documentation that the deliverable items articulated in the approved work program have been achieved, including partial achievements as evidenced by approved progress reports. Reasonable amounts may be advanced to projects to accommodate cash flow needs or match federal money. The advances must be approved as part of the work program. No expenditures for capital equipment are allowed unless expressly authorized in the project work program.

Subd. 13. Purchase of Recycled and Recyclable Materials

A political subdivision, public or private corporation, or other entity that receives an appropriation in this section must use the appropriation in compliance with Minnesota Statutes, sections 16B.121, regarding purchase of recycled, repairable, and durable materials, and 16B.122, regarding purchase and use of paper stock and printing.

Subd. 14. Energy Conservation and Sustainable Building Guidelines

A recipient to whom an appropriation is made in this section for a capital improvement project shall ensure that the project complies with the applicable energy conservation and sustainable building guidelines and standards contained in law, including Minnesota Statutes, sections 16B.325, 216C.19, and 216C.20, and rules adopted thereunder. The recipient may use the energy planning, advocacy, and State Energy Office units of the Department of Commerce to obtain information and technical assistance on energy conservation and alternative energy development relating to the planning and construction of the capital improvement project.

Subd. 15. Accessibility

Structural and nonstructural facilities must meet the design standards in the Americans with Disabilities Act (ADA) accessibility guidelines.

Subd. 16. Carryforward

The availability of the appropriations for the following projects is extended to June 30, 2010:

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(1) Laws 2005, First Special Session chapter 1, article 2, section 11, subdivision 9, paragraph (a), completing third-party certification of Department of Natural Resources forest lands, as extended by Laws 2007, chapter 30, section 2, subdivision 16;

(2) Laws 2005, First Special Session chapter 1, article 2, section 11, subdivision 10, paragraph (a), clean energy resource teams and community wind energy rebate, as amended by Laws 2006, chapter 243, section 15;

(3) Laws 2005, First Special Session chapter 1, article 2, section 11, subdivision 10, paragraph (e), wind to hydrogen demonstration, as extended by Laws 2007, chapter 30, section 2, subdivision 16;

(4) Laws 2007, chapter 30, section 2, subdivision 4, paragraph (a), forest legacy conservation easements; and

(5) Laws 2007, chapter 30, section 2, subdivision 5, paragraph (m), threat of emerging contaminants to Upper Mississippi walleye.

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

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

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

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

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

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

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

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

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

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

(4) provide for project outcome evaluation;

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

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

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

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

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

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

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

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

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

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

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

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

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

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Delete the title and insert:

"A bill for an act relating to state government; appropriating money for environment and natural resources; modifying duties of Legislative-Citizen Commission on Minnesota Resources; amending Minnesota Statutes 2008, sections 116P.05, subdivision 2; 116P.08, subdivision 4; 116P.10."

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

The report was adopted.

SECOND READING OF HOUSE BILLS

H. F. Nos. 984, 1132, 1744 and 2367 were read for the second time.

INTRODUCTION AND FIRST READING OF HOUSE BILLS

The following House Files were introduced:

Kalin introduced:

H. F. No. 2378, A bill for an act relating to capital improvements; appropriating money for water and sewer improvements in Rush City; authorizing the sale and issuance of state bonds.

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

Ruud introduced:

H. F. No. 2379, A bill for an act relating to health; requiring coverage for prosthetic devices; proposing coding for new law in Minnesota Statutes, chapter 62A.

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

Jackson and Kelly introduced:

H. F. No. 2380, A bill for an act relating to legislative enactments; correcting miscellaneous oversights, inconsistencies, ambiguities, unintended results, and technical errors; amending Minnesota Statutes 2008, section 169.865, subdivision 1.

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

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Atkins introduced:

H. F. No. 2381, A bill for an act relating to public safety; requiring retention of gang affiliation data; amending Minnesota Statutes 2008, section 299C.091, subdivision 5.

The bill was read for the first time and referred to the Committee on Public Safety Policy and Oversight.

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

RECESS

RECONVENED

The House reconvened and was called to order by Speaker pro tempore Sertich.

REPORT FROM THE COMMITTEE ON RULES AND

LEGISLATIVE ADMINISTRATION

Sertich from the Committee on Rules and Legislative Administration, pursuant to rule 1.21, designated the following bills to be placed on the Supplemental Calendar for the Day for Monday, May 11, 2009:

S. F. No. 1096; H. F. Nos. 2073, 696 and 1193; S. F. No. 1036; H. F. No. 1298; S. F. Nos. 1794 and 489; and H. F. No. 1988.

CALENDAR FOR THE DAY

H. F. No. 211 was reported to the House.

Swails moved to amend H. F. No. 211 as follows:

Page 1, lines 10 and 18, delete "must" and insert "may"

The motion prevailed and the amendment was adopted.

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

Emmer moved to amend H. F. No. 211, as amended, as follows:

Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 2008, section 327A.01, subdivision 7, is amended to read:

Subd. 7. Vendor. "Vendor" means any person, firm, or corporation ~~which~~ that constructs dwellings for the purpose of sale, including the construction of dwellings on land owned by vendees. Vendor does not include a vendor's subcontractor or material supplier.

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Sec. 2. Minnesota Statutes 2008, section 327A.01, is amended by adding a subdivision to read:

Subd. 12. Inspection. "Inspection" means a visual inspection or an invasive inspection, if any damage caused to the property during the invasive inspection is patched or repaired so as to prevent further damage.

Sec. 3. Minnesota Statutes 2008, section 327A.01, is amended by adding a subdivision to read:

Subd. 13. Insurer. "Insurer" means an insurance company with a duty to defend the vendor against general or specific liability for the alleged damage, notwithstanding the theory of liability.

Sec. 4. Minnesota Statutes 2008, section 327A.02, subdivision 4, is amended to read:

Subd. 4. Response from vendor to notice of claim. (a) ~~Following notice under section 327A.03,~~ The vendee must allow an inspection ~~and opportunity to~~ for purposes of the preparation of an offer to repair the ~~known~~ alleged loss or damage pursuant to section 327A.09. ~~Upon request of the vendee, a court may order the vendor to conduct the inspection.~~ The inspection must be performed by the vendor or a designee or designees and ~~any~~ an offer to repair must be made in writing to the vendee within 30 45 days of ~~the vendor's receipt of the written notice required under section 327A.03, clause (a), alleging loss or damage~~ the notification required by section 327A.03, clause (a), or commencement of suit, whichever occurs first. The vendor's insurer may also participate in the inspection for purposes of preparing an independent offer of repair. The applicable statute of limitations is tolled from the date the written notice provided by the vendee is postmarked, or if not sent through the mail, received by the vendor until the earliest of the following:

(1) the date the ~~vendee rejects~~ vendor gives written notice to the vendee of the vendor's offer to repair;

(2) ~~the date the vendor rejects the vendee's claim in writing~~ rejection of the claim;

(3) failure by the vendor to make an offer to repair within the ~~30-day~~ time period described in this subdivision; or

(4) 180 days.

For purposes of this subdivision, "vendor" includes a home improvement contractor.

(b) Upon completion of repairs as described in an offer to repair, the vendor must provide the vendee with a list of the repairs made ~~and a notice that the vendee may have a right to pursue a warranty claim under this chapter~~. Provision of this statement is not an admission of liability. ~~Compliance with this subdivision does not affect any rights of the vendee under this chapter.~~

(c) Within 45 days of notice of injury or commencement of suit, the vendor must give written notice of the claim to its insurer. The vendor is liable to the insurer in the amount of $50 for every business day this notice is not given unless the vendor has more than one insurer and at least one of the insurers received the written notice required by this subdivision.

Sec. 5. [327A.09] RIGHT TO REPAIR.

Subdivision 1. Scope and cost of repair. (a) Within 15 days of the inspection authorized by section 327A.02, subdivision 4, the vendor must provide to the vendee and the vendor's insurer an offer of repair. The offer of repair must include, at a minimum:

(1) the scope of the proposed repair work;

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(2) the proposed date on which the repair work would begin and the estimated date of completion; and

(3) the estimated cost of the repair, including the amounts of the specific bids from subcontractors the vendor intends to use, if any, and the amounts included in the estimated cost for overhead and profit.

(b) This subdivision does not prevent the vendee from obtaining the information in paragraph (a) from another contractor or from negotiating with the vendor for a different scope of work, provided that the negotiation does not extend the time for notifying the insurer.

(c) If the vendee and vendor agree to a scope of work and no objection is received pursuant to paragraph (d), the vendor must begin the repair work in accordance with the offer of repair and the vendor's insurer must pay for this work subject to a right of subrogation.

(d) If the vendee accepts the vendor's offer of repair but the insurer objects to the scope of the proposed repair work, the insurer must complete the inspection required by subdivision 2 within 30 days of receipt of a copy of the vendor's offer of repair.

(e) If the vendee accepts the vendor's offer of repair but the insurer objects to the vendor's estimated cost of repair, the insurer must:

(1) hire a contractor and subcontractors, subject to the approval of the vendee which must not be unreasonably withheld, to repair the loss or damage at the insurer's expense, subject to the insurer's right of subrogation; or

(2) pay the insurer's estimated cost of repair directly to the vendee, in which case the vendee has a direct cause of action against the insurer for any additional damages.

Subd. 2. Failure to agree. (a) If the vendor and the vendee cannot agree on the scope of work within 15 days after the offer of repair is presented to the vendee, the vendee must allow an inspection of the loss or damage by the vendor's insurer for purposes of preparing an independent offer of repair. The vendor's insurer must complete its inspection no later than 30 days after receiving notice of an impasse between the vendor and vendee. The vendor's insurer has 15 days after an inspection to present the vendee with an offer of repair containing the information in subdivision 1, paragraph (a).

(b) If the vendee accepts the insurer's offer of repair, the insurer must pay for all work done pursuant to this scope of work, subject to the insurer's right of subrogation. The insurer may select a new contractor to complete the repair work if the insurer determines, in good faith, that the vendor is incapable of completing the work or the vendor is responsible for the loss or damage.

(c) If the vendee rejects the insurer's offer of repair, the insurer must pay the insurer's estimated cost of repair directly to the vendee and the vendee has a direct cause of action against the insurer for any additional damages.

(d) If the insurer fails to comply with its obligations under paragraph (a), the insurer is liable for a civil penalty of $500, in addition to actual damages.

Subd. 3. Recovery. (a) If the vendee commences an action pursuant to subdivision 1, paragraph (e), clause (2), or subdivision 2, paragraph (c), and prevails in the action, the vendee, in addition to the other costs and disbursements awarded, is entitled to recover reasonable attorney fees from the insurer. For purposes of this subdivision, a vendee prevails in the action if the vendee proves damages existed at the time of the insurer's offer of repair that exceeded 110 percent of the insurer's estimated cost of repair and that the insurer acted in bad faith.

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(b) If the vendee commences an action pursuant to subdivision 1, paragraph (e), clause (2), or subdivision 2, paragraph (c), and the vendor's insurer prevails in the action and the court determines that the vendee acted in bad faith, the insurer is entitled to recover reasonable attorney fees, in addition to other costs and disbursements. For purposes of this subdivision, an insurer prevails in the action if the vendee proves damages existed at the time of the insurer's offer of repair that are less than 90 percent of the insurer's estimated cost of repair.

(c) If the vendor fails to perform the inspection required by section 327A.02, subdivision 4, the vendor is deemed to have breached the warranty provided in this section. The vendor's insurer may cure the breach by completing the inspection and providing the offer of repair required by subdivision 2.

(d) An insurer may not refuse to insure the vendor or substantially raise the vendor's insurance premiums solely as a result of the insurer is payment for repairs pursuant to this section. An insurer may not avoid its duty to defend or its duty to indemnify solely as a result of the vendor's failure to timely provide the notice required by section 327A.02, subdivision 4, paragraph (b). This section does not preclude an insurer from maintaining an action in subrogation or to recover damages from the vendor as a result of the vendor's conduct or lack of conduct.

Subd. 4. Stay. If a suit is commenced on a claim for an injury arising from an improvement to residential real property, the suit is stayed until the process required by this section has been complied with or breached.

Subd. 5. Effect of certain actions. (a) This section does not make an insurer that pays for repair work pursuant to this section a vendor or home improvement contractor.

(b) This section does not make a subcontractor or material supplier retained by the vendor or vendor's insurer a home improvement contractor.

Sec. 6. EFFECTIVE DATE; APPLICATION.

Sections 1 to 5 are effective the day following final enactment and apply to notices of injury given, and actions commenced, on or after that date.

This section does not revive claims already barred or extend any applicable statute of limitations or repose."

Delete the title and insert:

"A bill for an act relating to real property; statutory warranties; providing for notice and opportunity to repair with certain conditions; providing remedies; amending Minnesota Statutes 2008, sections 327A.01, subdivision 7, by adding subdivisions; 327A.02, subdivision 4; proposing coding for new law in Minnesota Statutes, chapter 327A."

A roll call was requested and properly seconded.

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The question was taken on the Emmer amendment and the roll was called. There were 58 yeas and 72 nays as follows:

Those who voted in the affirmative were: