Journal of the House - 39th Day - Top of Page 2029

STATE OF MINNESOTA

Journal of the House

EIGHTIETH SESSION 1997

__________________

THIRTY-NINTH DAY

Saint Paul, Minnesota, Tuesday, April 15, 1997

 

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

Prayer was offered by the Reverend Thomas W. Forster-Smith, Central Presbyterian Church, St. Paul, Minnesota.

The roll was called and the following members were present:

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

A quorum was present.

Kahn was excused.

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


Journal of the House - 39th Day - Top of Page 2030

REPORTS OF CHIEF CLERK

S. F. No. 36 and H. F. No. 469, which had been referred to the Chief Clerk for comparison, were examined and found to be identical with certain exceptions.

SUSPENSION OF RULES

Otremba moved that the rules be so far suspended that S. F. No. 36 be substituted for H. F. No. 469 and that the House File be indefinitely postponed. The motion prevailed.

S. F. No. 122 and H. F. No. 58, which had been referred to the Chief Clerk for comparison, were examined and found to be identical with certain exceptions.

SUSPENSION OF RULES

McElroy moved that the rules be so far suspended that S. F. No. 122 be substituted for H. F. No. 58 and that the House File be indefinitely postponed. The motion prevailed.

S. F. No. 154 and H. F. No. 176, which had been referred to the Chief Clerk for comparison, were examined and found to be identical.

Vickerman moved that S. F. No. 154 be substituted for H. F. No. 176 and that the House File be indefinitely postponed. The motion prevailed.

S. F. No. 277 and H. F. No. 524, which had been referred to the Chief Clerk for comparison, were examined and found to be identical with certain exceptions.

SUSPENSION OF RULES

Tunheim moved that the rules be so far suspended that S. F. No. 277 be substituted for H. F. No. 524 and that the House File be indefinitely postponed. The motion prevailed.

S. F. No. 329 and H. F. No. 1381, which had been referred to the Chief Clerk for comparison, were examined and found to be identical with certain exceptions.

SUSPENSION OF RULES

Juhnke moved that the rules be so far suspended that S. F. No. 329 be substituted for H. F. No. 1381 and that the House File be indefinitely postponed. The motion prevailed.

S. F. No. 330 and H. F. No. 1207, which had been referred to the Chief Clerk for comparison, were examined and found to be identical with certain exceptions.

SUSPENSION OF RULES

Paymar moved that the rules be so far suspended that S. F. No. 330 be substituted for H. F. No. 1207 and that the House File be indefinitely postponed. The motion prevailed.


Journal of the House - 39th Day - Top of Page 2031

S. F. No. 399 and H. F. No. 745, which had been referred to the Chief Clerk for comparison, were examined and found to be identical.

Wejcman moved that S. F. No. 399 be substituted for H. F. No. 745 and that the House File be indefinitely postponed. The motion prevailed.

S. F. No. 475 and H. F. No. 768, which had been referred to the Chief Clerk for comparison, were examined and found to be identical with certain exceptions.

SUSPENSION OF RULES

Westrom moved that the rules be so far suspended that S. F. No. 475 be substituted for H. F. No. 768 and that the House File be indefinitely postponed. The motion prevailed.

S. F. No. 525 and H. F. No. 713, which had been referred to the Chief Clerk for comparison, were examined and found to be identical with certain exceptions.

SUSPENSION OF RULES

Koskinen moved that the rules be so far suspended that S. F. No. 525 be substituted for H. F. No. 713 and that the House File be indefinitely postponed. The motion prevailed.

S. F. No. 526 and H. F. No. 1924, which had been referred to the Chief Clerk for comparison, were examined and found to be identical with certain exceptions.

SUSPENSION OF RULES

Juhnke moved that the rules be so far suspended that S. F. No. 526 be substituted for H. F. No. 1924 and that the House File be indefinitely postponed. The motion prevailed.

S. F. No. 539 and H. F. No. 385, which had been referred to the Chief Clerk for comparison, were examined and found to be identical with certain exceptions.

SUSPENSION OF RULES

Swenson, H., moved that the rules be so far suspended that S. F. No. 539 be substituted for H. F. No. 385 and that the House File be indefinitely postponed. The motion prevailed.

S. F. No. 555 and H. F. No. 854, which had been referred to the Chief Clerk for comparison, were examined and found to be identical with certain exceptions.

SUSPENSION OF RULES

Clark moved that the rules be so far suspended that S. F. No. 555 be substituted for H. F. No. 854 and that the House File be indefinitely postponed. The motion prevailed.

S. F. No. 612 and H. F. No. 658, which had been referred to the Chief Clerk for comparison, were examined and found to be identical with certain exceptions.

SUSPENSION OF RULES

Marko moved that the rules be so far suspended that S. F. No. 612 be substituted for H. F. No. 658 and that the House File be indefinitely postponed. The motion prevailed.


Journal of the House - 39th Day - Top of Page 2032

S. F. No. 652 and H. F. No. 750, which had been referred to the Chief Clerk for comparison, were examined and found to be identical with certain exceptions.

SUSPENSION OF RULES

Bradley moved that the rules be so far suspended that S. F. No. 652 be substituted for H. F. No. 750 and that the House File be indefinitely postponed. The motion prevailed.

S. F. No. 755 and H. F. No. 829, which had been referred to the Chief Clerk for comparison, were examined and found to be identical with certain exceptions.

SUSPENSION OF RULES

Solberg moved that the rules be so far suspended that S. F. No. 755 be substituted for H. F. No. 829 and that the House File be indefinitely postponed. The motion prevailed.

S. F. No. 762 and H. F. No. 1768, which had been referred to the Chief Clerk for comparison, were examined and found to be identical with certain exceptions.

SUSPENSION OF RULES

Anderson, I., moved that the rules be so far suspended that S. F. No. 762 be substituted for H. F. No. 1768 and that the House File be indefinitely postponed. The motion prevailed.

S. F. No. 848 and H. F. No. 642, which had been referred to the Chief Clerk for comparison, were examined and found to be identical.

Skoglund moved that S. F. No. 848 be substituted for H. F. No. 642 and that the House File be indefinitely postponed. The motion prevailed.

S. F. No. 868 and H. F. No. 970, which had been referred to the Chief Clerk for comparison, were examined and found to be identical with certain exceptions.

SUSPENSION OF RULES

Wejcman moved that the rules be so far suspended that S. F. No. 868 be substituted for H. F. No. 970 and that the House File be indefinitely postponed. The motion prevailed.

S. F. No. 877 and H. F. No. 1076, which had been referred to the Chief Clerk for comparison, were examined and found to be identical with certain exceptions.

SUSPENSION OF RULES

McGuire moved that the rules be so far suspended that S. F. No. 877 be substituted for H. F. No. 1076 and that the House File be indefinitely postponed. The motion prevailed.

S. F. No. 1094 and H. F. No. 1183, which had been referred to the Chief Clerk for comparison, were examined and found to be identical.

Pugh moved that S. F. No. 1094 be substituted for H. F. No. 1183 and that the House File be indefinitely postponed. The motion prevailed.


Journal of the House - 39th Day - Top of Page 2033

S. F. No. 1146 and H. F. No. 1379, which had been referred to the Chief Clerk for comparison, were examined and found to be identical.

Huntley moved that S. F. No. 1146 be substituted for H. F. No. 1379 and that the House File be indefinitely postponed. The motion prevailed.

S. F. No. 1155 and H. F. No. 1356, which had been referred to the Chief Clerk for comparison, were examined and found to be identical.

Slawik moved that S. F. No. 1155 be substituted for H. F. No. 1356 and that the House File be indefinitely postponed. The motion prevailed.

S. F. No. 1527 and H. F. No. 1005, which had been referred to the Chief Clerk for comparison, were examined and found to be identical with certain exceptions.

SUSPENSION OF RULES

Tomassoni moved that the rules be so far suspended that S. F. No. 1527 be substituted for H. F. No. 1005 and that the House File be indefinitely postponed. The motion prevailed.

S. F. No. 1646 and H. F. No. 1879, which had been referred to the Chief Clerk for comparison, were examined and found to be identical with certain exceptions.

SUSPENSION OF RULES

Trimble moved that the rules be so far suspended that S. F. No. 1646 be substituted for H. F. No. 1879 and that the House File be indefinitely postponed. The motion prevailed.

S. F. No. 1715 and H. F. No. 1605, which had been referred to the Chief Clerk for comparison, were examined and found to be identical with certain exceptions.

SUSPENSION OF RULES

Davids moved that the rules be so far suspended that S. F. No. 1715 be substituted for H. F. No. 1605 and that the House File be indefinitely postponed. The motion prevailed.

REPORTS OF STANDING COMMITTEES

Osthoff from the Committee on Environment, Natural Resources and Agriculture Finance to which was referred:

H. F. No. 113, A bill for an act proposing an amendment to the Minnesota Constitution, article XI, section 14; extending until the year 2050 the period during which at least 40 percent of the net proceeds from the state lottery must be credited to the environment and natural resources trust fund.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. [CONSTITUTIONAL AMENDMENT PROPOSED.]

An amendment to the Minnesota Constitution, article XI, section 14, is proposed to the people. If the amendment is adopted, the section will read as follows:

Sec. 14. A permanent Minnesota environment and natural resources trust fund is established in the state treasury. The principal of the environment and natural resources trust fund must be perpetual and inviolate forever, except appropriations may be made from up to 25 percent of the annual revenues deposited in the fund until fiscal year 1997 for land acquisition


Journal of the House - 39th Day - Top of Page 2034

and development and loans may be made of up to five percent of the principal of the fund for water system improvements as provided by law. This restriction does not prevent the sale of investments at less than the cost to the fund, however, all losses not offset by gains shall be repaid to the fund from the earnings of the fund. The net earnings from the fund shall be appropriated in a manner prescribed by law for the public purpose of protection, conservation, preservation, and enhancement of the state's air, water, land, fish, wildlife, and other natural resources. Not less than 40 percent of the net proceeds from any state-operated lottery must be credited to the fund until the year 2001 2020.

Sec. 2. [SUBMISSION TO VOTERS.]

The proposed amendment must be submitted to the people at the 1998 general election. The question submitted shall be:

"Shall the Minnesota Constitution be amended to extend until the year 2020 the period during which at least 40 percent of the net proceeds from the state lottery must be credited to the environment and natural resources trust fund?

Yes . . . . . . .

No . . . . . . ."

Election procedures shall be as provided by law."

Amend the title as follows:

Page 1, line 3, delete "2050" and insert "2020"

Page 1, line 6, before the period, insert "; modifying authority for appropriations from the fund"

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.

Osthoff from the Committee on Environment, Natural Resources and Agriculture Finance to which was referred:

H. F. No. 311, A bill for an act relating to game and fish; permitting certain angling assistance without a license; amending Minnesota Statutes 1996, section 97A.441, by adding a subdivision.

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

The report was adopted.

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

H. F. No. 443, A bill for an act relating to the Brooklyn Park economic development authority; authorizing the certification of certain unpaid charges to the Hennepin county auditor with taxes against certain residential townhome and condominium units for collection as other taxes.

Reported the same back with the following amendments:

Page 1, after line 8, insert:

"Subdivision 1. [SCOPE.] For the purpose of sections 2 and 3, the terms defined in this section have the meanings given them. "


Journal of the House - 39th Day - Top of Page 2035

Renumber the subdivisions in sequence

Page 2, line 4, delete "from any"

Page 2, line 5, delete "source"

Page 2, line 15, delete "any expense" and insert "expenses"

Page 2, line 16, before the semicolon, insert "that are identified in the loan agreement between the authority and the association"

Page 2, after line 25, insert:

"Sec. 3. [DISCLOSURE REQUIRED.]

For any common interest community located in the city of Brooklyn Park, the disclosure statement required under Minnesota Statutes, section 515B.4-102, must include a description of the potential applicability and consequences of section 2."

Page 2, line 26, delete "3" and insert "4"

Page 2, line 27, delete "and 2" and insert "to 3"

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

The report was adopted.

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

H. F. No. 694, A bill for an act relating to employment; making technical and administrative changes in the department of employee relations; modifying provisions governing state employment; amending Minnesota Statutes 1996, sections 13.67; 15.059, subdivision 5; 15.53, subdivision 2; 43A.04, subdivision 1; 43A.07, subdivision 5; 43A.08, subdivision 1; 43A.15, subdivision 3; 43A.27, subdivision 3; 43A.30, subdivisions 4 and 5; and 43A.38, subdivision 6; Laws 1995, chapter 248, article 13, sections 2, subdivisions 2, 5, and 6; and 3, subdivisions 1 and 2; proposing coding for new law in Minnesota Statutes, chapters 15; and 43A; repealing Minnesota Statutes 1996, section 43A.182; Laws 1995, chapter 248, article 10, section 12.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 1996, section 13.67, is amended to read:

13.67 [EMPLOYEE RELATIONS DATA.]

The following data collected, created, or maintained by the department of employee relations are classified as nonpublic data pursuant to section 13.02, subdivision 9:

(a) The commissioner's plan prepared by the department, pursuant to section 3.855, which governs the compensation and terms and conditions of employment for employees not covered by collective bargaining agreements until the plan is submitted to the legislative commission on employee relations;


Journal of the House - 39th Day - Top of Page 2036

(b) Data pertaining to grievance or interest arbitration that has not been presented to the arbitrator or other party during the arbitration process;

(c) Notes and preliminary drafts of reports prepared during personnel investigations and personnel management reviews of state departments and agencies;

(d) The managerial plan prepared by the department pursuant to section 43A.18 that governs the compensation and terms and conditions of employment for employees in managerial positions, as specified in section 43A.18, subdivision 3, until the plan is submitted to the legislative commission on employee relations; and

(e) Claims experience and all related information received from carriers and claims administrators participating in either the state group insurance plan, the Minnesota employee insurance program, the state workers' compensation program, or the public employees insurance program as defined in chapter 43A, and survey information collected from employees and employers participating in these plans and programs, except when the department determines that release of the data will not be detrimental to the plan or program.

Sec. 2. [15.0594] [COMMISSIONER'S APPROVAL REQUIRED.]

No person may be employed or consultant retained by an entity created under section 15.0593 without written approval of the commissioner of the department of employee relations.

Sec. 3. Minnesota Statutes 1996, section 15.53, subdivision 2, is amended to read:

Subd. 2. [PERIOD OF ASSIGNMENT.] The period of individual assignment or detail under an interchange program shall not exceed 24 months, nor shall any person be assigned or detailed for more than 24 months during any 36-month period, except when the assignment or detail is made to coincide with an unclassified appointment under section 15.06. However, the head of an agency may extend the period of assignment for not more than two additional years. Details relating to any matter covered in sections 15.51 to 15.57 may be the subject of an agreement between the sending and receiving agencies. Elected officials shall not be assigned from a sending agency nor detailed to a receiving agency.

Sec. 4. Minnesota Statutes 1996, section 43A.04, subdivision 1, is amended to read:

Subdivision 1. [STATEWIDE LEADERSHIP.] (a) The commissioner is the chief personnel and labor relations manager of the civil service in the executive branch.

Whenever any power or responsibility is given to the commissioner by any provision of Laws 1981, chapter 210, unless otherwise expressly provided, the power or authority applies to all employees of agencies in the executive branch and to employees in classified positions in the office of the legislative auditor, the Minnesota state retirement system, the public employees retirement association, and the teacher's retirement association. Unless otherwise provided by law, the power or authority does not apply to unclassified employees in the legislative and judicial branches.

(b) The commissioner shall operate an information system from which personnel data, as defined in section 13.43, concerning employees and applicants for positions in the classified service can be retrieved.

The commissioner has access to all public and private personnel data kept by appointing authorities that will aid in the discharge of the commissioner's duties.

(c) The commissioner may consider and investigate any matters concerned with the administration of provisions of Laws 1981, chapter 210, and may order any remedial actions consistent with law. The commissioner, at the request of an agency, shall provide assistance in employee misconduct investigations. The commissioner shall have the right to assess from the requesting agency, any costs incurred while assisting the agency in the employee misconduct investigation. Money received by the commissioner under this paragraph is appropriated to the commissioner for purposes of this paragraph.

(d) The commissioner has sole authority to settle state employee workers' compensation claims.

(e) The commissioner may assess or establish and collect premiums from all state entities to cover the costs of programs under sections 15.46 and 176.603.


Journal of the House - 39th Day - Top of Page 2037

Sec. 5. [43A.044] [HAZARD IDENTIFICATION AND ACCIDENT PREVENTION.]

(a) The commissioner of the department of employee relations must operate a program of occupational hazard identification and accident prevention for state agencies and state employees, and shall provide the staff, equipment, and facilities needed for the program. The program must be offered to all state agencies through the agency safety contact or other designee; is consultative in nature; and must assist state agencies with the goal of providing a safe work environment, safe work methods, and hazard identification.

(b) The commissioner must cooperate with the department of labor and industry, department of health, and department of administration as well as other private and public community agencies to assist in the objective of hazard identification and accident prevention.

Sec. 6. Minnesota Statutes 1996, section 43A.07, subdivision 5, is amended to read:

Subd. 5. [LEAVES TO ACCEPT UNCLASSIFIED APPOINTMENTS.] An employee who is may be granted a leave of absence from a position in the classified service to accept a position in the unclassified service shall retain an inactive classified service status. Upon request, during the unclassified appointment or within 60 days of the end of the unclassified appointment, the employee shall be reappointed in the agency from which the employee was granted the leave, to a classified position comparable to that held immediately prior to being appointed to the unclassified position.

Sec. 7. Minnesota Statutes 1996, section 43A.08, subdivision 1, is amended to read:

Subdivision 1. [UNCLASSIFIED POSITIONS.] Unclassified positions are held by employees who are:

(1) chosen by election or appointed to fill an elective office;

(2) heads of agencies required by law to be appointed by the governor or other elective officers, and the executive or administrative heads of departments, bureaus, divisions, and institutions specifically established by law in the unclassified service;

(3) deputy and assistant agency heads and one confidential secretary in the agencies listed in subdivision 1a and in the office of strategic and long-range planning;

(4) the confidential secretary to each of the elective officers of this state and, for the secretary of state, state auditor, and state treasurer, an additional deputy, clerk, or employee;

(5) intermittent help employed by the commissioner of public safety to assist in the issuance of vehicle licenses;

(6) employees in the offices of the governor and of the lieutenant governor and one confidential employee for the governor in the office of the adjutant general;

(7) employees of the Washington, D.C., office of the state of Minnesota;

(8) employees of the legislature and of legislative committees or commissions; provided that employees of the legislative audit commission, except for the legislative auditor, the deputy legislative auditors, and their confidential secretaries, shall be employees in the classified service;

(9) presidents, vice-presidents, deans, other managers and professionals in academic and academic support programs, administrative or service faculty, teachers, research assistants, and student employees eligible under terms of the federal economic opportunity act work study program in the school and resource center for the arts, state universities and community colleges, and the board of trustees of the Minnesota state colleges and universities, but not the custodial, clerical, or maintenance employees, or any professional or managerial employee performing duties in connection with the business administration of these institutions;

(10) officers and enlisted persons in the national guard;


Journal of the House - 39th Day - Top of Page 2038

(11) attorneys, legal assistants, and three confidential employees appointed by the attorney general or employed with the attorney general's authorization;

(12) judges and all employees of the judicial branch, referees, receivers, jurors, and notaries public, except referees and adjusters employed by the department of labor and industry;

(13) members of the state patrol; provided that selection and appointment of state patrol troopers must be made in accordance with applicable laws governing the classified service;

(14) chaplains employed by the state;

(15) examination monitors and intermittent training instructors employed by the departments of employee relations and commerce and by professional examining boards and intermittent staff employed by the technical colleges for the administration of practical skills tests and for the staging of instructional demonstrations;

(16) student workers;

(17) executive directors or executive secretaries appointed by and reporting to any policy-making board or commission established by statute;

(18) employees unclassified pursuant to other statutory authority;

(19) intermittent help employed by the commissioner of agriculture to perform duties relating to pesticides, fertilizer, and seed regulation; and

(20) the administrators and the deputy administrators at the state academies for the deaf and the blind; and

(21) medical specialists and other physicians employed in the department of human services.

Sec. 8. Minnesota Statutes 1996, section 43A.17, subdivision 4, is amended to read:

Subd. 4. [MEDICAL SPECIALISTS.] The commissioner may without regard to subdivision 1 establish special salary rates and plans of compensation designed to attract and retain exceptionally qualified doctors of medicine. These rates and plans shall be included in the commissioner's plan developed by the commissioner pursuant to section 43A.18, subdivision 2a. In establishing salary rates and eligibility for nomination for payment at special rates, the commissioner shall consider the standards of eligibility established by national medical specialty boards where appropriate. The incumbents assigned to these special ranges shall be excluded from the collective bargaining process.

Sec. 9. Minnesota Statutes 1996, section 43A.18, is amended by adding a subdivision to read:

Subd. 2a. [MEDICAL SPECIALIST PLAN.] Except as provided in section 43A.01, the compensation, terms, and conditions of employment for all classified and unclassified medical specialists, who are not covered by a collective bargaining agreement and not otherwise provided for in chapter 43A or other law, are governed solely by a plan developed by the commissioner. The legislative coordinating commission shall review and approve or reject the plan under section 3.855, subdivision 2. The plan need not be adopted in accordance with the rulemaking provisions of chapter 14.

Sec. 10. Minnesota Statutes 1996, section 43A.27, subdivision 3, is amended to read:

Subd. 3. [RETIRED EMPLOYEES.] A person may elect to purchase at personal expense individual and dependent hospital, medical, and dental coverages if the person is:

(1) a retired employee of the state or an organization listed in subdivision 2 or section 43A.24, subdivision 2, who receives, at separation of service:

(i) is immediately eligible to receive an annuity under a state retirement program sponsored by the state or such organization of the state and immediately meets the age and service requirements in section 352.115, subdivision 1; and


Journal of the House - 39th Day - Top of Page 2039

(ii) has five years of service or meets the service requirement of the collective bargaining agreement or plan, whichever is greater; or

(2) a retired employee of the state who is at least 50 years of age and has at least 15 years of state service may elect to purchase at personal expense individual and dependent hospital, medical, and dental coverages that are.

The commissioner shall offer at least one plan which is actuarially equivalent to those made available through collective bargaining agreements or plans established pursuant to section 43A.18 to employees in positions equivalent to that from which retired. A spouse of a deceased retired employee who received an annuity under a state retirement program may purchase the coverage listed in this subdivision if the spouse was a dependent under the retired employee's coverage at the time of the employee's death. Coverages must be coordinated with relevant health insurance benefits provided through the federally sponsored Medicare program. Until the retired employee reaches age 65, the retired employee and dependents must be pooled in the same group as active employees for purposes of establishing premiums and coverage for hospital, medical, and dental insurance. Coverage for retired employees and their dependents may not discriminate on the basis of evidence of insurability or preexisting conditions unless identical conditions are imposed on active employees in the group that the employee left. Appointing authorities shall provide notice to employees no later than the effective date of their retirement of the right to exercise the option provided in this subdivision. The retired employee must notify the commissioner or designee of the commissioner within 30 days after the effective date of the retirement of intent to exercise this option.

Sec. 11. Minnesota Statutes 1996, section 43A.30, subdivision 4, is amended to read:

Subd. 4. [EMPLOYEE INSURANCE TRUST FUND.] The commissioner of employee relations may direct that all or a part of the amounts paid for life insurance, hospital, medical, and dental benefits, and optional coverages authorized for eligible employees and other eligible persons be deposited by the state in an employee insurance trust fund in the state treasury, from which the approved claims of eligibles are to be paid. Investment income and investment losses attributable to the investment of the fund shall be credited to the fund. There is appropriated from the fund to the commissioner amounts needed to pay the approved claims of eligibles, related service charges, insurance premiums, and refunds. The commissioner shall not market or self-insure life insurance or optional coverages. The commissioner may market and self-insure dental and optional coverages. Nothing in this subdivision precludes the commissioner from determining plan design, providing informational materials, or communicating with employees about coverages.

Sec. 12. Minnesota Statutes 1996, section 43A.30, subdivision 5, is amended to read:

Subd. 5. [ADMINISTRATION.] The commissioner of employee relations may administer the employee insurance program. The commissioner may assess agencies, and employers of persons eligible for state-paid insurance and benefits under section 43A.24, the cost of these administrative services and include it in the amounts billed for life insurance, hospital, medical, and dental benefits, and optional coverages authorized. Receipts from the assessments must be deposited in the state treasury and credited to a special account in the employee insurance trust fund and are appropriated to the commissioner to pay these administrative costs.

Sec. 13. [43A.375] [DEDUCTION FOR EXPENSES; FRAUD OR MISTAKE.]

If expenses are reimbursed to an employee by the employer under circumstances of fraud or mistake, the expenses may be deducted from wages earned by or due the employee.

Sec. 14. Laws 1993, chapter 301, section 1, subdivision 4, is amended to read:

Subd. 4. [WAIVER.] (a) Upon receipt of the committee report required by subdivision 3, each entity head shall submit the list of recommended waivers to the commissioner of employee relations. The commissioner shall then grant the waivers requested by each entity, effective for the requesting entity, for a period ending June 30, 1997, subject to the restrictions in paragraph (b) and to revision in accordance with subdivision 5. These waivers are effective for the requesting entity, for a period ending June 30, 1997, except the waivers granted for the Minnesota housing finance agency shall extend to June 30, 1999. The commissioner shall waive a rule by granting a variance under Minnesota Statutes, section 14.05, subdivision 4.


Journal of the House - 39th Day - Top of Page 2040

(b) The commissioner may not grant a waiver if it would result in the layoff of classified employees or unclassified employees covered by a collective bargaining agreement except as provided in a plan negotiated under Minnesota Statutes, chapter 179A, that provides options to layoff for employees who would be affected. If a proposed waiver would violate the terms of a collective bargaining agreement reached under Minnesota Statutes, chapter 179A, the waiver may not be granted without the consent of the exclusive representative that is a party to the agreement.

Sec. 15. Laws 1995, chapter 248, article 12, section 2, is amended to read:

Sec. 2. [TERMINATION.]

Section 1 and the civil service pilot project in the housing finance agency as authorized by Laws 1993, chapter 301, terminate June 30, 1997 1999, or at any earlier time by a method agreed upon by the commissioners of employee relations and housing finance and the affected exclusive bargaining representative of state employees.

Sec. 16. Laws 1995, chapter 248, article 13, section 2, subdivision 2, is amended to read:

Subd. 2. [PILOT PROJECT.] During the biennium ending June 30, 1997 2001, the governor shall designate an executive agency that will conduct a pilot civil service project. The pilot program must adhere to the policies expressed in subdivision 1 and in Minnesota Statutes, section 43A.01. For the purposes of conducting the pilot project, the commissioner of the designated agency is exempt from the provisions that relate to employment in Minnesota Statutes, chapter 43A, Minnesota Rules, chapter 3900, and administrative procedures and policies of the department of employee relations. If a proposed exemption from the provisions that relate to employment in Minnesota Statutes, chapter 43A, Minnesota Rules, chapter 3900, and administrative procedures and policies of the department of employee relations would violate the terms of a collective bargaining agreement effective under Minnesota Statutes, chapter 179A, the exemption is not effective without the consent of the exclusive representative that is a party to the agreement. Upon request of the commissioner carrying out the pilot project, the commissioner of employee relations shall provide technical assistance in support of the pilot project. This section does not exempt an agency from compliance with Minnesota Statutes, sections 43A.19 and 43A.191, or from rules adopted to implement those sections.

Sec. 17. Laws 1995, chapter 248, article 13, section 2, subdivision 5, is amended to read:

Subd. 5. [PILOT PROJECT.] During the biennium ending June 30, 1997, the human resources innovation committee established under Laws 1993, chapter 301, section 1, subdivision 6, 1999, the department of employee relations in conjunction with union representatives shall designate state job classifications to be included in a one or more pilot project projects. Under this pilot project: (1) resumes of applicants for positions to be filled through a competitive open this process will be evaluated through an objective computerized system that will identify which applicants have the required skills; and (2) information on applicants determined to have required skills will be forwarded to the agency seeking to fill a vacancy, without ranking these applicants, and without a limit on the number of applicants that may be forwarded to the hiring agency. Laws or rules that govern examination, ranking of eligibles, and certification of eligibles for competitive open positions do not apply to those job classifications included in the pilot project. This process is in lieu of the procedures provided in Minnesota Statutes, sections 43A.10 to 43A.13, and related rules and procedures adopted under Minnesota Statutes, section 43A.04, subdivision 4, except that applicants who are being referred and who qualify for veterans preference under Minnesota Statutes, section 43A.11, will be placed ahead of referrals who meet the required skills of the vacant position and who do not qualify for veterans preference. Before designating a job classification under this subdivision, the committee department must assure that the hiring process for those job classifications complies with the policies in subdivision 1.

Sec. 18. Laws 1995, chapter 248, article 13, section 2, subdivision 6, is amended to read:

Subd. 6. [EVALUATION.] The commissioner of employee relations, in consultation with the human resources innovation committee union representatives, shall design and implement a system for evaluating the success of the pilot project in subdivision 5. By October 1, 1996 1997, and October 1, 1997 1998, the commissioner must report to the legislature on the pilot project. The report must:

(1) list job classifications subject to the each pilot project, and the number of positions filled under in these job classes under the pilot ;


Journal of the House - 39th Day - Top of Page 2041

(2) evaluate the extent to which the project has been successful in maintaining a merit-based system in the absence of traditional civil service laws and rules;

(3) quantify time and money saved in the hiring process under the these pilot project projects, as compared to hiring under the traditional laws and rules;

(4) document the extent of complaints or problems arising under the new system; and

(5) recommend any changes in laws or rules needed to make permanent the successes of the pilot project projects.

Sec. 19. Laws 1995, chapter 248, article 13, section 3, subdivision 2, is amended to read:

Subd. 2. [PILOT PROJECT.] During the biennium ending June 30, 1997, the department of employee relations must implement a system of incentives including economic incentives for unrepresented employees for or groups of unrepresented employees in the department. The system must be approved by the commissioner of finance before being implemented. The system must have the following characteristics:

(1) it must provide nonmanagerial unrepresented employees or groups of employees within the agency the possibility of earning economic rewards by suggesting changes in operation of the department's programs;

(2) it must provide nonmanagerial represented employees within the agency the possibility of receiving individual or group economic rewards, if provided in a collective bargaining agreement, for suggesting changes in the operation of the department's programs;

(3) it must provide groups of nonmanagerial represented employees within the agency the possibility of receiving group rewards in the form of training opportunities, filling of unfilled employee complement, or other resources that benefit overall group performance;

(4) any economic awards must be based on changes in operations suggested by nonmanagerial employees or groups of employees that result in objectively measurable cost savings of at least $25,000 or significant and objectively measurable efficiencies in services that the agency provides to its customers or clients, without decreasing the quality of these services;

(5) awards must be a minimum of $500 up to a maximum of $2,500 per year to unrepresented nonmanagerial employees or groups of employees who were instrumental in identifying and/or implementing the efficiency and cost-saving measures;

(6) an "efficiency savings account" must be created within each fund that is used to provide money for department services. Each account consists of money saved directly as a result of initiatives under this section. Any awards under this article must be paid from money in an efficiency savings account. One-half of the money in the account may be used for awards under this section, and the remainder must be returned to the fund from which the money was appropriated;

(7) no award shall be given except upon approval of a team comprised of equal numbers of management and nonmanagement employees selected by the commissioner of employee relations from state employees outside of the department; and

(8) the economic awards granted to unrepresented employees must be one-time awards in the form of a lump sum award, and must not add to the base salary of employees.

Sec. 20. [AMERICANS WITH DISABILITIES ACT COORDINATOR.]

The commissioner shall designate a state ADA coordinator who will have primary responsibility for providing training and technical assistance to agencies on the provisions of titles I and II of the Americans with Disability Act, Public Law Number 101-336, and Minnesota Statutes, chapter 363. The ADA coordinator will establish monitoring procedures and reports of progress to the governor's office on no less than a biennial basis.


Journal of the House - 39th Day - Top of Page 2042

The ADA coordinator will work with the state director of diversity and equal opportunity on the establishment of affirmative action goals for persons with disabilities in accordance with Minnesota Statutes, section 43A.19, subdivision 1, paragraph (b), and the review and approval of agency affirmative action plans consistent with Minnesota Statutes, sections 43A.04, subdivision 3, and 43A.191, subdivision 1.

Sec. 21. [HUMAN RESOURCES SYSTEM.]

Subdivision 1. [PILOT PROJECT.] The pilot program established in the department of human services by Laws 1994, chapter 453, section 1, is continued and amended as described in this section. The pilot program must adhere to the policies expressed in this subdivision and in Minnesota Statutes, section 43A.01. For the purposes of conducting the expanded pilot project, the commissioner of human services is exempt from the provisions that relate to employment in Minnesota Statutes, chapter 43A, Minnesota Rules, chapter 3900, and administrative procedures and policies of the department of employee relations. If a proposed exemption from the provisions that relate to employment in Minnesota Statutes, chapter 43A, Minnesota Rules, chapter 3900, and administrative procedures and policies of the department of employee relations would violate the terms of a collective bargaining agreement effective under Minnesota Statutes, chapter 179A, the exemption is not effective without the consent of the exclusive representative that is a party to the agreement. The labor-management committee established by Laws 1994, chapter 453, section 1, shall continue. The committee membership may be expanded as long as an equal number of labor and management representatives is maintained. A proposed exemption may not be implemented without the approval of the labor-management committee unless it affects only managerial or other unrepresented positions. Upon request of the commissioner of human services, and subject to the availability of resources, the commissioner of employee relations may provide technical assistance in support of the pilot project and may request reimbursement for the reasonable cost of any services provided. This section does not exempt the department of human services from compliance with Minnesota Statutes, sections 43A.19 and 43A.191, or from rules adopted to implement those sections.

Subd. 2. [EVALUATION.] The department of human services shall evaluate the pilot program. The evaluation shall include at least the following factors:

(1) the extent to which the department of human services has been successful in maintaining a merit-based human resources system in the absence of the traditional civil service rules and procedures;

(2) the extent to which the project's projected outcomes were achieved;

(3) the satisfaction of managers, supervisors, and exclusive representatives of employees with the changes; and

(4) the extent of complaints or problems arising under the new system.

The department of human services must report to the legislature by January 15, 1999, January 15, 2000, and January 15, 2001, on the progress and results of the project.

Sec. 22. [STUDY OF STATE HIRING OPTIONS.]

The commissioner of human services shall study and report to the legislature by January 15, 1998, with recommendations to expand employment opportunities for public assistance recipients in state agencies and institutions of higher education. The report may include recommendations on:

(1) giving qualified applicants who are recipients of public assistance preference in hiring; and

(2) other recommendations developed by the commissioner in consultation with other state agencies and institutions of higher education.

Sec. 23. [REPEALER.]

Minnesota Statutes 1996, section 43A.182; and Laws 1995, chapter 248, article 10, section 12, are repealed. "


Journal of the House - 39th Day - Top of Page 2043

Delete the title and insert:

"A bill for an act relating to state employment; making technical and administrative changes in the department of employee relations; modifying provisions governing state employment; requiring the commissioner of employee relations' approval before certain agencies may hire employees or retain consultants; creating an occupational hazard identification and accident prevention program; designating certain positions in the department of human services as unclassified; creating a medical specialist plan; modifying insurance provisions for certain retired state employees; authorizing the commissioner of employee relations to market and self-insure dental and optional coverages; allowing deductions from wages in certain situations; extending certain deadlines for the housing finance agency; modifying and extending certain pilot projects; providing for a state ADA coordinator; requiring evaluation of certain pilot programs; requiring the commissioner of human services to complete a study and report to the legislature; amending Minnesota Statutes 1996, sections 13.67; 15.53, subdivision 2; 43A.04, subdivision 1; 43A.07, subdivision 5; 43A.08, subdivision 1; 43A.17, subdivision 4; 43A.18, by adding a subdivision; 43A.27, subdivision 3; and 43A.30, subdivisions 4 and 5; Laws 1993, chapter 301, section 1, subdivision 4; Laws 1995, chapter 248, articles 12, section 2; 13, section 2, subdivisions 2, 5, and 6; and section 3, subdivision 2; proposing coding for new law in Minnesota Statutes, chapters 15; and 43A; repealing Minnesota Statutes 1996, section 43A.182; Laws 1995, chapter 248, article 10, section 12."

With the recommendation that when so amended the bill pass.

The report was adopted.

Long from the Committee on Taxes to which was referred:

H. F. No. 824, A bill for an act relating to health; clarifying the status of the comprehensive health association under medical assistance and general assistance medical care; clarifying eligibility; opening the process for selecting a writing carrier; permitting contributing members to offset assessments against premium taxes; eliminating the four-month waiting period under MinnesotaCare for association enrollees; modifying coverage for medical assistance enrollees; transferring insurance premium tax revenue to the general fund; appropriating money; amending Minnesota Statutes 1996, sections 62E.02, subdivisions 13 and 18; 62E.11, by adding subdivisions; 62E.13, subdivision 2; 256.9357, subdivision 3; 256B.056, subdivision 8; 256B.0625, subdivision 15; 256D.03, subdivision 3b; and 295.58.

Reported the same back with the following amendments:

Page 2, delete section 3

Page 7, line 2, before "The" insert "(a)"

Page 7, after line 12, insert:

"(b) The revenues, including penalties and interest, derived from the tax on insurance premiums imposed by section 60A.15 on health maintenance organizations, community integrated service networks, integrated service networks, and nonprofit health service plan corporations must be deposited in the general fund and are annually appropriated to the Minnesota comprehensive health association to offset assessments made to subsidize the costs of the Minnesota comprehensive insurance plan established under chapter 62E."

Page 7, delete section 11

Page 7, line 29, delete "10" and insert "9"

Page 7, line 30, delete everything after the period

Page 7, delete line 31


Journal of the House - 39th Day - Top of Page 2044

Renumber the sections in sequence

Amend the title as follows:

Page 1, line 6, delete everything after the semicolon

Page 1, delete line 7

Page 1, line 14, delete "subdivisions" and insert "a subdivision"

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

The report was adopted.

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

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

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

The report was adopted.

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

H. F. No. 1129, A bill for an act relating to retirement; providing for full employer and employee contributions to the teachers retirement association for teachers on sabbatical leave; amending Minnesota Statutes 1996, section 354.092, subdivisions 1, 3, and 4; repealing Minnesota Statutes 1996, section 354.092, subdivision 2.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"ARTICLE 1

GENERAL STATEWIDE EMPLOYEE PENSION

PLAN MODIFICATIONS

Section 1. Minnesota Statutes 1996, section 136F.45, is amended by adding a subdivision to read:

Subd. 3. [TAX-SHELTERED ANNUITY ADMINISTRATIVE EXPENSES.] (a) The reasonable and necessary administrative expenses of the tax-sheltered annuity program must be paid by the financial institutions authorized by the

board of trustees of the Minnesota state colleges and universities system to provide tax-sheltered annuity investment options.

(b) Annually, the board of trustees shall establish a budget for the tax-sheltered annuity program administrative expenses. The total budgeted administrative expense must be allocated among the applicable financial institutions by the board of trustees.


Journal of the House - 39th Day - Top of Page 2045

Sec. 2. Minnesota Statutes 1996, section 136F.45, is amended by adding a subdivision to read:

Subd. 4. [PERIODIC REVIEW.] If the board so chooses, it may solicit bids or proposals for options under subdivision 1. The board may retain consulting services to assist it in soliciting and evaluating bids or proposals and in the periodic review of companies offering options under subdivision 1. The board may annually establish a budget for its costs in the soliciting, evaluating, and periodic review processes. The board may charge a proportional share of all costs related to the periodic review to each company currently under contract and may charge a proportional share of all costs related to soliciting and evaluating bids or proposals to each company selected by the board. Contracts must provide that all options in subdivision 1 must: (1) be presented in an unbiased manner, (2) be reported on a periodic basis to all employees participating in the tax-sheltered annuity program, and (3) not be the subject of unreasonable solicitation of state employees to participate in the program. The contract may not permit any person to jeopardize the tax-deferred status of money invested by state employees under this section. All costs or fees in relation to the bid solicitation and evaluation process for the options provided under subdivision 1 must be paid by the underwriting companies ultimately selected by the board.

Sec. 3. Minnesota Statutes 1996, section 352.01, subdivision 2a, is amended to read:

Subd. 2a. [INCLUDED EMPLOYEES.] (a) "State employee" includes:

(1) employees of the Minnesota historical society;

(2) employees of the state horticultural society;

(3) employees of the Disabled American Veterans, Department of Minnesota, Veterans of Foreign Wars, Department of Minnesota, if employed before July 1, 1963;

(4) employees of the Minnesota crop improvement association;

(5) employees of the adjutant general who are paid from federal funds and who are not covered by any federal civilian employees retirement system;

(6) employees of the state universities employed under the university activities program;

(7) currently contributing employees covered by the system who are temporarily employed by the legislature during a legislative session or any currently contributing employee employed for any special service as defined in clause (8) of subdivision 2b;

(8) employees of the armory building commission;

(9) permanent employees of the legislature and persons employed or designated by the legislature or by a legislative committee or commission or other competent authority to conduct a special inquiry, investigation, examination, or installation;

(10) trainees who are employed on a full-time established training program performing the duties of the classified position for which they will be eligible to receive immediate appointment at the completion of the training period;

(11) employees of the Minnesota safety council;

(12) any employees on authorized leave of absence from the transit operating division of the former metropolitan transit commission who are employed by the labor organization which is the exclusive bargaining agent representing employees of the transit operating division;

(13) employees of the metropolitan council, metropolitan parks and open space commission, metropolitan sports facilities commission, metropolitan mosquito control commission, or metropolitan radio board unless excluded or covered by another public pension fund or plan under section 473.415, subdivision 3;


Journal of the House - 39th Day - Top of Page 2046

(14) judges of the tax court; and

(15) personnel employed on June 30, 1992, by the University of Minnesota in the management, operation, or maintenance of its heating plant facilities, whose employment transfers to an employer assuming operation of the heating plant facilities, so long as the person is employed at the University of Minnesota heating plant by that employer or by its successor organization;

(16) seasonal help in the classified service employed by the department of revenue; and

(17) a person who renders teaching or other service for the Minnesota state colleges and universities system and who also renders service on a part-time basis for an employer with employees covered by the general state employees retirement plan of the Minnesota state retirement system, for all service with the Minnesota state colleges and universities system, if the person's nonteaching service comprises at least 50 percent of the combined total salary received by the person as determined by the chancellor of the Minnesota state colleges and universities system or if the person is certified for general state employees retirement plan coverage by the chancellor of the Minnesota state colleges and universities system.

(b) Employees specified in paragraph (a), clause (15), are included employees under paragraph (a) providing that if employer and employee contributions are made in a timely manner in the amounts required by section 352.04. Employee contributions must be deducted from salary. Employer contributions are the sole obligation of the employer assuming operation of the University of Minnesota heating plant facilities or any successor organizations to that employer.

Sec. 4. Minnesota Statutes 1996, section 352.01, subdivision 2b, is amended to read:

Subd. 2b. [EXCLUDED EMPLOYEES.] "State employee" does not include:

(1) elective state officers;

(2) students employed by the University of Minnesota, the state universities, and community colleges unless approved for coverage by the board of regents, the state university board, or the state board for community colleges, as the case may be;

(3) employees who are eligible for membership in the state teachers retirement association except employees of the department of children, families, and learning who have chosen or may choose to be covered by the Minnesota state retirement system instead of the teachers retirement association;

(4) employees of the University of Minnesota who are excluded from coverage by action of the board of regents;

(5) officers and enlisted personnel in the national guard and the naval militia who are assigned to permanent peacetime duty and who under federal law are or are required to be members of a federal retirement system;

(6) election officers;

(7) persons engaged in public work for the state but employed by contractors when the performance of the contract is authorized by the legislature or other competent authority;

(8) officers and employees of the senate and house of representatives or a legislative committee or commission who are temporarily employed;

(9) receivers, jurors, notaries public, and court employees who are not in the judicial branch as defined in section 43A.02, subdivision 25, except referees and adjusters employed by the department of labor and industry;

(10) patient and inmate help in state charitable, penal, and correctional institutions including the Minnesota veterans home;

(11) persons employed for professional services where the service is incidental to regular professional duties and whose compensation is paid on a per diem basis;


Journal of the House - 39th Day - Top of Page 2047

(12) employees of the Sibley House Association;

(13) the members of any state board or commission who serve the state intermittently and are paid on a per diem basis; the secretary, secretary-treasurer, and treasurer of those boards if their compensation is $5,000 or less per year, or, if they are legally prohibited from serving more than three years; and the board of managers of the state agricultural society and its treasurer unless the treasurer is also its full-time secretary;

(14) state troopers;

(15) temporary employees of the Minnesota state fair employed on or after July 1 for a period not to extend beyond October 15 of that year; and persons employed at any time by the state fair administration for special events held on the fairgrounds;

(16) emergency employees in the classified service; except that if an emergency employee, within the same pay period, becomes a provisional or probationary employee on other than a temporary basis, the employee shall be considered a "state employee" retroactively to the beginning of the pay period;

(17) persons described in section 352B.01, subdivision 2, clauses (2) to (5);

(18) temporary employees in the classified service, and temporary employees in the unclassified service appointed for a definite period of not more than six months and employed less than six months in any one-year period and seasonal help in the classified service employed by the department of revenue;

(19) trainee employees, except those listed in subdivision 2a, clause (10);

(20) persons whose compensation is paid on a fee basis;

(21) state employees who in any year have credit for 12 months service as teachers in the public schools of the state and as teachers are members of the teachers retirement association or a retirement system in St. Paul, Minneapolis, or Duluth;

(22) employees of the adjutant general employed on an unlimited intermittent or temporary basis in the classified and unclassified service for the support of army and air national guard training facilities;

(23) chaplains and nuns who are excluded from coverage under the federal Old Age, Survivors, Disability, and Health Insurance Program for the performance of service as specified in United States Code, title 42, section 410(a)(8)(A), as amended, if no irrevocable election of coverage has been made under section 3121(r) of the Internal Revenue Code of 1986, as amended through December 31, 1992;

(24) examination monitors employed by departments, agencies, commissions, and boards to conduct examinations required by law;

(25) persons appointed to serve as members of fact-finding commissions or adjustment panels, arbitrators, or labor referees under chapter 179;

(26) temporary employees employed for limited periods under any state or federal program for training or rehabilitation including persons employed for limited periods from areas of economic distress except skilled and supervisory personnel and persons having civil service status covered by the system;

(27) full-time students employed by the Minnesota historical society intermittently during part of the year and full-time during the summer months;

(28) temporary employees, appointed for not more than six months, of the metropolitan council and of any of its statutory boards, if the board members are appointed by the metropolitan council;

(29) persons employed in positions designated by the department of employee relations as student workers;


Journal of the House - 39th Day - Top of Page 2048

(30) members of trades employed by the successor to the metropolitan waste control commission with trade union pension plan coverage under a collective bargaining agreement first employed after June 1, 1977;

(31) persons employed in subsidized on-the-job training, work experience, or public service employment as enrollees under the federal Comprehensive Employment and Training Act after March 30, 1978, unless the person has as of the later of March 30, 1978, or the date of employment sufficient service credit in the retirement system to meet the minimum vesting requirements for a deferred annuity, or the employer agrees in writing on forms prescribed by the director to make the required employer contributions, including any employer additional contributions, on account of that person from revenue sources other than funds provided under the federal Comprehensive Employment and Training Act, or the person agrees in writing on forms prescribed by the director to make the required employer contribution in addition to the required employee contribution;

(32) off-duty peace officers while employed by the metropolitan council;

(33) persons who are employed as full-time police officers by the metropolitan council and as police officers are members of the public employees police and fire fund;

(34) persons who are employed as full-time firefighters by the department of military affairs and as firefighters are members of the public employees police and fire fund;

(35) foreign citizens with a work permit of less than three years, or an H-1b/JV visa valid for less than three years of employment, unless notice of extension is supplied which allows them to work for three or more years as of the date the extension is granted, in which case they are eligible for coverage from the date extended; and

(36) persons who are employed by the board of trustees of the Minnesota state colleges and universities and who elect to remain members of the public employees retirement association or the Minneapolis employees retirement fund, whichever applies, under section 136C.75.

Sec. 5. Minnesota Statutes 1996, section 354B.21, subdivision 3, is amended to read:

Subd 3. [DEFAULT COVERAGE.] (a) If an eligible person fails to elect coverage by the plan under subdivision 2 or if the person fails to make a timely election, the following retirement coverage applies:

(1) for employees of the board who are employed in faculty positions in the technical colleges, in the state universities or in the community colleges, the retirement coverage is by the plan established by this chapter;

(2) for employees of the board who are employed in faculty positions in the technical colleges, the retirement coverage is by the plan established by this chapter unless on June 30, 1997, the employee was a member of the teachers retirement association established under chapter 354 and then the retirement coverage is by the teachers retirement association, or, unless the employee was a member of a first class city teacher retirement fund established under chapter 354A on June 30, 1995, and then the retirement coverage is by the Duluth teachers retirement fund association if the person was a member of that plan on June 30, 1995, or the Minneapolis teachers retirement fund association if the person was a member of that plan on June 30, 1995, or the St. Paul teachers retirement fund association if the person was a member of that plan on June 30, 1995; and

(3) for employees of the board who are employed in eligible unclassified administrative positions, the retirement coverage is by the plan established by this chapter.

(b) If an employee fails to correctly certify prior membership in the teachers retirement association to the Minnesota state colleges and universities system, the system shall not pay interest on employee contributions, employer contributions, and additional employer contributions to the teachers retirement association under section 354.52, subdivision 4.

Sec. 6. Minnesota Statutes 1996, section 354C.11, is amended to read:

354C.11 [COVERAGE.]

Personnel employed by the board of trustees of the Minnesota state colleges and universities who are in the unclassified service of the state, and who have completed at least two years of employment by the board or a predecessor board with a full-time contract are participants in the supplemental retirement plan, effective on the next following July 1, if the person


Journal of the House - 39th Day - Top of Page 2049

is employed in an eligible unclassified administrative position as defined in section 354B.20, subdivision 6, or is employed in an employment classification included in one of the following collective bargaining units under section 179A.10, subdivision 2:

(1) the state university instructional unit;

(2) the community college instructional unit;

(3) the technical college instructional unit; and

(4) the state university administrative unit.

Once a person qualifies for participation in the supplemental plan, all subsequent service by the person as an unclassified employee of the state university board, the state board for community colleges, the higher education board, or the technical colleges is covered by the supplemental plan.

Sec. 7. [PURCHASE OF SERVICE CREDIT AUTHORIZATION.]

Subdivision 1. [ELIGIBLE EMPLOYEE.] (a) An eligible employee described in paragraph (b) is eligible to purchase service credit in the Minnesota state retirement system general plan as specified in subdivision 2.

(b) An eligible employee is a person who:

(1) is employed in the classified service by the department of revenue as seasonal help, newly authorized to receive prospective service credit under section 3; and

(2) was employed in the classified service by the department of revenue as seasonal help in each of the last three fiscal years.

Subd. 2. [RETIREMENT COVERAGE.] An eligible employee under subdivision 1, paragraph (b), is entitled to purchase service credit in the Minnesota state retirement system general plan for the period of service prior to the effective date of section 3 as seasonal help in the classified service by the department of revenue. Any period for which the individual has received service credit or is eligible to receive service credit in any other Minnesota public pension plan, other than a volunteer fire plan, is not eligible for purchase.

Subd. 3. [AMOUNT.] (a) To receive service credit under subdivision 2, the Minnesota state retirement system must receive an amount equal to the actuarial present value, on the date of payment, as calculated by the actuary retained by the legislative commission on pensions and retirement, of the amount of the additional retirement annuity obtained by the acquisition of the additional service credit in this section. Calculation of this amount must be made using the preretirement interest rate applicable to the Minnesota state retirement system general plan specified in Minnesota Statutes, section 356.215, subdivision 4d, and the mortality table adopted for the pension plan. The calculation must assume continuous future service in the association until, and retirement at, the age at which the minimum requirements of the fund for normal retirement or retirement with an annuity unreduced for retirement at an early age, including Minnesota Statutes, section 356.30, are met with the additional service credit purchased. The calculation must assume that the individual accrues future service credit each year based on a three-year average using the most recent three year period prior to the effective date of section 3 for service provided compared to full-time service. The salary used in the calculation must be the eligible person's actual current hourly salary. The calculation must assume a future salary history that includes annual salary increases at the applicable salary increase rate for the plan specified in Minnesota Statutes, section 356.215, subdivision 4d.

(b) Payment must be made in one lump sum before July 1, 1998, or before retirement, whichever is earlier.

(c) Payment of the amount calculated under this subdivision must be made by the eligible employee. However, the Minnesota department of revenue may, at its discretion, pay all or any portion of the payment amount that exceeds an amount equal to the employee contribution rates in effect during the periods of prior service applied to the actual salary rates in effect during the periods of prior service, plus interest at the rate of 8-1/2 percent a year compounded annually from the date on


Journal of the House - 39th Day - Top of Page 2050

which the contributions would have been made if retirement coverage were authorized at the time, to the date on which the payment is made. If the department agrees to payments under this paragraph, the eligible employee must make the employee payments required under this paragraph before July 1, 1998. If that employee payment is made, the department payment under this paragraph must be remitted to the executive director of the Minnesota state retirement system within 60 days of receipt by the executive director of the employee payments specified under this paragraph.

Subd. 4. [SERVICE CREDIT GRANT.] Service credit for the purchase period must be granted by the Minnesota state retirement system to the account of the eligible employee upon receipt of the purchase payment amount specified in subdivision 3.

Sec. 8. [STUDY.]

The state board of investment, in consultation with the commissioner of commerce, shall study and make recommendations to the legislature on the most desirable method for evaluating insurance companies for purposes of Minnesota Statutes, section 356.24, subdivision 1, and on the most desirable method for the use of section 403(b), Internal Revenue Code, annuities and the most effective delivery mechanism to employees. The board shall report to the legislative commission on pensions and retirement by February 1, 1998.

Sec. 9. [REPEALER.]

Laws 1995, chapter 262, article 1, sections 8, 9, 10, 11, and 12, are repealed.

Sec. 10. [EFFECTIVE DATE.]

Sections 1 to 9 are effective on July 1, 1997.

ARTICLE 2

PENSION MODIFICATIONS WITH

A LOCAL APPLICATION

Section 1. Minnesota Statutes 1996, section 423A.02, subdivision 2, is amended to read:

Subd. 2. [CONTINUED ELIGIBILITY.] A municipality that has qualified for amortization state aid under subdivision 1 on December 31, 1984, and has an additional municipal contribution payable under section 353A.09, subdivision 5, paragraph (b), as of the most recent December 31, continues upon application to be entitled to receive amortization state aid under subdivision 1 and supplementary amortization state aid under subdivision 1a, after the local police or salaried firefighters' relief association has been consolidated into the public employees police and fire fund. If a municipality loses entitlement for amortization state aid and supplementary amortization state aid in any year because of not having an additional municipal contribution, the municipality is not entitled to the aid amounts in any subsequent year. If the actuarial assumptions specified in section 356.215 are changed in 1997, and the change results in a municipality having an additional municipal contribution, and the municipality had previously lost entitlement for amortization aid and supplementary amortization due to not having an additional municipal contribution, then the municipality is again entitled to receive amortization aid and supplementary amortization aid in the same amount as it previously received.

Sec. 2. Minnesota Statutes 1996, section 423B.06, subdivision 1, is amended to read:

Subdivision 1. [SOURCES.] The fund is derived from the following sources:

(1) gifts provided to the fund;

(2) rewards received by active members of the Minneapolis police department;

(3) money coming into the hands of active members of the Minneapolis police department in their official capacity and remaining unclaimed for six months;


Journal of the House - 39th Day - Top of Page 2051

(4) proceeds from sales of property coming into the hands of active members of the Minneapolis police department in their official capacity and remaining unclaimed for six months, upon sale by the chief of police of the city;

(5) an amount equal to the minimum percentage specified in section 69.77, subdivision 2a, of the salary of a first grade patrol officer deducted from the monthly salary of each active member;

(6) all money derived from taxation as provided by sections 69.77, subdivisions 2b, 2c, 2d, 2e, and 2f; and 423A.01, subdivision 2;

(7) all money received from the state amortization aid programs under section 423A.02, to fund the unfunded actuarial accrued liability of the association;

(8) all money received from the state under chapter 69, as state police aid;

(9) all money provided by the state for the association in addition to clauses (7) and (8);

(10) all money derived from taxation by the municipality for the support of the association and the payment of pensions; and

(11) money from the investment of, earnings on, and interest on the assets of the fund.

Sec. 3. Minnesota Statutes 1996, section 423B.06, subdivision 1a, is amended to read:

Subd. 1a. [SALES OF UNCLAIMED PROPERTY.] The chief of police of the city shall sell property coming into the hands of active members of the Minneapolis police department in their official capacity and remaining unclaimed for six months.

Sec. 4. [TEACHER RETIREMENT DATE.]

Notwithstanding Minnesota Statutes, section 354.44, subdivision 4, teachers terminating active teaching service at the high school in independent school district No. 701, Hibbing, during June 1997, shall have May 30, 1997, as their date of retirement for the purpose of receiving retirement benefits from the teachers retirement association.

Sec. 5. [EFFECTIVE DATE.]

Sections 1 to 4 are effective on the day following final enactment.

ARTICLE 3

INVESTMENT REPORTING MODIFICATIONS

Section 1. Minnesota Statutes 1996, section 69.051, subdivision 1, is amended to read:

Subdivision 1. [FINANCIAL REPORT AND AUDIT.] The board of each salaried firefighters' and relief association, police relief association, and of each volunteer firefighters' relief association as defined in section 424A.001, subdivision 4, with assets of at least $200,000 or liabilities of at least $200,000, according to the most recent actuarial valuation or financial report if no valuation is required, shall:

(a) (1) Prepare a financial report covering the special and general funds of the relief association for the preceding fiscal year on a form prescribed by the state auditor. The financial report shall contain financial statements and disclosures which present the true financial condition of the relief association and the results of relief association operations in conformity with generally accepted accounting principles and in compliance with the regulatory, financing and funding provisions of this chapter and any other applicable laws. The financial report shall be countersigned by the municipal clerk or clerk-treasurer of the municipality in which the relief association is located if the relief association is a firefighters' relief association which is directly associated with a municipal fire department or is a police relief association, or countersigned by the secretary of


Journal of the House - 39th Day - Top of Page 2052

the independent nonprofit firefighting corporation and by the municipal clerk or clerk-treasurer of the largest municipality in population which contracts with the independent nonprofit firefighting corporation if the relief association is a subsidiary of an independent nonprofit firefighting corporation;

(b) (2) File the financial report in its office for public inspection and present it to the city council after the close of the fiscal year. One copy of the financial report shall be furnished to the state auditor after the close of the fiscal year; and

(c) (3) Submit to the state auditor audited financial statements which have been attested to by a certified public accountant, public accountant, or the state auditor within 180 days after the close of the fiscal year, except that the state auditor may upon request of a city and a showing of inability to conform, extend the deadline. The state auditor may accept this report in lieu of the report required in clause (b) (2).

Sec. 2. Minnesota Statutes 1996, section 69.051, subdivision 1a, is amended to read:

Subd. 1a. [FINANCIAL STATEMENT.] (a) The board of each volunteer firefighters' relief association and each independent nonprofit firefighting corporation, as defined in section 424A.001, subdivision 4, with assets of less than $200,000 and liabilities less than $200,000, according to the most recent financial report, shall:

(a) prepare a detailed statement of the financial affairs for the preceding fiscal year of the relief association's special and general funds in the style and form prescribed by the state auditor, for the preceding fiscal year showing all money received, with the sources, and respective amounts thereof. The detailed statement must show the sources and amounts of all money received; all disbursements for which orders have been drawn upon the treasurer; all, accounts payable; all and accounts receivable; the amount of money remaining in the treasury; total assets including a listing of all investments; the accrued liabilities; and all items necessary to show accurately the revenues and expenditures and financial position of the relief association;.

(b) The detailed financial statement required under paragraph (a) shall must be certified by an independent public accountant or auditor or by the auditor or accountant who regularly examines or audits the financial transactions of the municipality. In addition to certifying the financial condition of the special and general funds of the relief association, the accountant or auditor conducting the examination shall give an opinion as to the condition of the special and general funds of the relief association, and shall comment upon any exceptions to the report. The independent accountant or auditor shall have at least five years of public accounting, auditing, or similar experience, and shall not be an active, inactive, or retired member of the relief association or the fire or police department;.

(c) The detailed statement required under paragraph (a) shall must be countersigned by the municipal clerk or clerk-treasurer of the municipality, or, where applicable, by the secretary of the independent nonprofit firefighting corporation and by the municipal clerk or clerk-treasurer of the largest municipality in population which contracts with the independent nonprofit firefighting corporation if the relief association is a subsidiary of an independent nonprofit firefighting corporation;.

(d) The volunteer firefighters relief association board must file the detailed statement required under paragraph (a) in the relief association office for public inspection and present it to the city council within 45 days after the close of the fiscal year;, and must

(e) submit within 90 days after the close of the fiscal year a copy of the detailed statement to the state auditor within 90 days of the close of the fiscal year.

Sec. 3. Minnesota Statutes 1996, section 69.051, subdivision 1b, is amended to read:

Subd. 1b. [QUALIFICATION.] The state auditor may, upon a demonstration by a relief association of hardship or inability to conform, extend the deadline for reports under subdivision 1 or 1a, but not beyond November 30th following the due date. If the reports are not received by November 30, the municipality or relief association will forfeit its current year state aid, and until the state auditor receives the required information, the relief or municipality will be ineligible to receive any future state aid. A municipality or police or firefighters' relief association shall not qualify initially to receive, or be entitled subsequently to retain, state aid pursuant to this chapter if the financial reporting requirement or the applicable requirements of this chapter or any other statute or special law have not been complied with or are not fulfilled.


Journal of the House - 39th Day - Top of Page 2053

Sec. 4. Minnesota Statutes 1996, section 356.20, is amended by adding a new subdivision to read:

Subd. 4b. [ADDITIONAL REPORTING REQUIREMENTS.] Pension funds referred to in subdivision 2, clauses (5) to (10), must include, as part of the report required by this section, the information required under section 356.219. A pension fund which fails to include that information is subject to penalties specified in section 356.219, subdivision 5. The office of the state auditor is authorized to develop forms to facilitate the reporting required under this subdivision. For pension funds subject to this subdivision, at the time when reports are filed under subdivision 3, a copy of the reports must also be delivered to the office of the state auditor.

Sec. 5. Minnesota Statutes 1996, section 356.219, is amended to read:

356.219 [DISCLOSURE OF ADDITIONAL PUBLIC PENSION PLAN INVESTMENT INFORMATION.]

Subdivision 1. [REPORT REQUIRED.] (a) Except as indicated in subdivision 4, the state board of investment on behalf of the public pension funds and programs for which it is the investment authority and any Minnesota public pension plan not wholly fully invested through the state board of investment, including a local police or firefighters' relief association governed by sections 69.77 or 69.771 to 69.775, shall report the information specified in subdivision 2 3 to the state auditor. The state auditor may prescribe a form or forms for the purposes of the reporting requirements contained in this section.

(b) A local police or firefighters relief association governed by section 69.77 or sections 69.771 to 69.775 is fully invested for purposes of this section if all assets of the applicable pension plan beyond sufficient cash equivalent investments to cover six months expected expenses are invested under section 11A.17. The board of any fully invested public pension plan remains responsible for submitting investment policy statements and subsequent revisions as required by subdivision 3, paragraph (a).

(c) For purposes of this section, the state board of investment is considered to be the investment authority for any Minnesota public pension fund required to be invested by the state board of investment under section 11A.23, or for any Minnesota public pension fund authorized to invest in the supplemental investment fund under section 11A.17 and which is fully invested.

Subd. 2. [ASSET CLASS DEFINITION.] (a) For purposes of this section, "asset class" means any of the following asset groupings as authorized in applicable law, bylaws, or articles of incorporation:

(1) cash and any cash equivalent investments with maturities of one year or less when issued;

(2) debt securities with maturities greater than one year when issued, including, but not limited to, mortgage participation certificates and pools, asset-backed securities, guaranteed investment contracts, and authorized government and corporate obligations of corporations organized under laws of the United States or any state, or the Dominion of Canada or its provinces;

(3) stocks or convertible issues of any corporation organized under laws of the United States or any state, or the Dominion of Canada or its provinces, or any corporation listed on the New York Stock Exchange or the American Stock Exchange;

(4) international stocks or convertible issues;

(5) international debt securities; and

(6) real estate and venture capital.

(b) If the pension plan is investing under section 69.77, subdivision 2g, 69.775, or other applicable law, in open-end investment companies registered under the Federal Investment Company Act of 1940, or in the Minnesota supplemental investment fund under section 11A.17, this investment must be included under paragraph (a), clauses (1) to (6), as appropriate. If the investment vehicle includes underlying securities from more than one asset class as indicated by paragraph (a), clauses (1) to (6), the investment may be treated as a separate asset class.


Journal of the House - 39th Day - Top of Page 2054

Subd. 2 3. [CONTENT AND TIMING OF REPORTS.] (a) The following information shall be included in the report required by subdivision 1:

(1) the market value of all investments at the close of the reporting period;

(2) regular payroll-based contributions to the fund;

(3) other contributions and revenue paid into the fund, including, but not limited to, state or local non-payroll-based contributions, repaid refunds, and buybacks;

(4) total benefits paid to members;

(5) fees paid for investment management services;

(6) salaries and other administrative expenses paid; and

(7) total return on investment.

The report required by subdivision 1 must also include a written statement of the investment policy in effect on June 30, 1988, and 1997, if that statement has not been previously submitted. Following that date, subsequent reports must include any investment policy changes made subsequently and shall include the effective date of each policy change rather than a complete statement of investment policy, unless the state auditor requests submission of a complete current statement. The report must also include the information required by paragraph (b) or (c), as applicable. The information required under this subdivision must be reported separately for each investment account or investment portfolio included in the pension fund.

(b) For public pension plans other than volunteer firefighters' relief associations governed by sections 69.77 or 69.771 to 69.775, the information specified in paragraph (a) must be provided separately for each quarter for the fiscal years of the pension fund ending during calendar years 1989 through 1991 and on a monthly basis thereafter. For volunteer firefighters' relief associations governed by sections 69.77 or 69.771 to 69.775, the information specified in paragraph (a) must be provided separately each quarter.

(c) Firefighters' relief associations that have assets with a market value of less than $300,000 must submit a written statement of their current investment policy on or before October 1, 1996, must report any subsequent investment policy changes, including the effective date of the change, within 90 days of the change, must begin collecting the required information under paragraph (a), clauses (1) to (7), on January 1, 1997, and must submit the required information to the state auditor on or before October 1, 1998, and subsequently within six months of the end of each fiscal year. Other associations must submit the required information through fiscal year 1993 to the state auditor on or before October 1, 1994, and subsequently within six months of the end of each fiscal year.

(b) If a public pension plan has a total market value of $10,000,000 or more as of the beginning of the calendar year, the report required by subdivision 1 must include the market value of the total portfolio and the market value of each investment account or investment portfolio as of the beginning of the calendar year and the amount and date of each total portfolio and investment account or investment portfolio injection and withdrawal. If a public pension plan once files a report under this paragraph, it must continue reporting under this paragraph even if asset values drop below $10,000,000 in market value in a subsequent year.

(c) If a public pension plan has a total market value of less than $10,000,000 as of the beginning of the calendar year, and was never required to file under paragraph (b), the report required by subdivision 1 must include the amount and date of each total portfolio injection and withdrawal. In addition, the report must include the market value of the total portfolio and each investment account or investment portfolio as of the beginning and the end of the calendar year.

(d) Any public pension plan reporting under paragraph (b) or (c) may include computed time-weighted rates of return with the report, in addition to all other required information, as applicable. If returns are supplied, the individual who computed the returns must certify that the returns are net of all costs and fees, including investment management fees, and that the procedures used to compute the returns are consistent with bank administration institute studies of investment performance measurement and association of investment management and research presentation standards.


Journal of the House - 39th Day - Top of Page 2055

(e) For public pension plans reporting under paragraph (c), the public pension plan must retain information specifying the date and amount of each investment account or investment portfolio injection and withdrawal. Information that is required to be collected and retained for any given year or years under this paragraph must be submitted to the office of the state auditor if the office of the state auditor requests in writing that the information be submitted by a public pension plan or plans, or be submitted by the state board of investment for any plan or plans for which the state board of investment is the investment authority under this section. Information required to be collected and retained under this subdivision must also be transmitted to the legislative commission on pensions upon official action of that commission. All data submitted or retained under this section are public data under Minnesota Statutes, chapter 13.

Subd. 4. [ALTERNATIVE REPORTING; CERTAIN PLANS.] In lieu of requirements in subdivision 3, the applicable administration for the individual retirement account plans under chapters 354B and 354D and for the University of Minnesota faculty retirement plan shall submit computed time-weighted rates of return to the office of the state auditor. These time-weighted rates of return must cover the most recent complete calendar year, and must be computed for each investment option available to plan members. To the extent feasible, the returns must be computed net of all costs, fees, and charges, so that the computed return reflects the net time-weighted return available to the investor. If this is not practical, the existence of any remaining cost, fee, or charge which could further lower the net return must be disclosed. The procedures used to compute the returns must be consistent with bank administration institute studies of investment performance measurement and association of investment management and research presentation standards, or, if applicable, securities exchange commission requirements. The individual who computes the returns must certify that the supplied returns comply with this subdivision. The applicable plan administrator must also submit, with the return information, the total amounts invested by the plan members, in aggregate, in each investment option as of the last day of the calendar year.

Subd. 3 5. [PENALTY FOR NONCOMPLIANCE.] Failure to comply with the reporting requirements of this section shall result in a withholding of all state aid or state appropriation to which the pension plan may otherwise be directly or indirectly entitled until the pension plan has complied with the reporting requirements. The state auditor shall instruct the commissioners of revenue and finance to withhold state aid or state appropriation from any pension plan that fails to comply with the reporting requirements contained in this section, until the pension plan has complied with the reporting requirements. The state auditor may waive the withholding of state aid or state appropriations if the state auditor determines in writing that compliance would create an excessive hardship.

The state auditor shall agree to waive the withholding of all state aid required by this subdivision for a volunteer firefighters' relief association governed by sections 69.77 or 69.771 to 69.775 if:

(1) the relief association certifies to the state auditor that the financial records necessary to comply with this reporting requirement for the fiscal years of the pension fund ending during calendar years 1991 to 1993 no longer exist; or

(2) the state auditor determines that reconstructing historical financial data for the fiscal years of the pension fund ending during calendar years 1991 to 1993 would create an excessive hardship for the relief association.

Subd. 4 6. [INVESTMENT DISCLOSURE REPORT.] (a) Using the information provided under subdivision 2 subdivisions 3 and 4, the state auditor shall compute time-weighted rates of return for each pension fund, net of all costs and fees, and prepare an annual report to the legislature on the components of investment performance resulting from stages in the investment decision making process of the various public pension plans subject to this section. The state auditor may contract with a qualified consultant or consulting firm to perform the analysis and prepare the report required under this subdivision. The report may also include information collected under subdivision 4 and, if applicable, subdivision 3.

Subd. 5 7. [EXPENSE OF REPORT.] All expenses incurred relating to the investment disclosure report described in subdivision 4 6 must be borne by the office of the state auditor and may not be charged back to the entities described in subdivision 1.

Subd. 8. [TIMING OF REPORTS.] (a) For salaried firefighter relief associations, police relief associations, and volunteer firefighter relief associations, the information required under this section must be submitted by the due date for reports required under section 69.051, subdivision 1 or 1a, as applicable. If a relief association satisfies the definition of a fully invested plan under subdivision 1, paragraph (b), for the calendar year covered by the report required under section 69.051, subdivision 1 or 1a, as applicable, the chief administrative officer of the covered pension plan shall certify compliance on a form prescribed by the state auditor. The state auditor shall transmit annually to the state board of investment a list or lists of covered pension plans which submitted certifications, in order to facilitate reporting by the state board of investment under paragraph (c).


Journal of the House - 39th Day - Top of Page 2056

(b) For the Minneapolis teachers retirement fund association, the St. Paul teachers retirement fund association, the Duluth teachers retirement fund association, the Minneapolis employees retirement fund, and the University of Minnesota faculty supplemental retirement plan, the information required under this section must be submitted as part of the report required under section 356.20.

(c) The state board of investment, on behalf of pension funds specified in subdivision 1, paragraph (c), must report information required under this section by September 1 of each year.

(d) The applicable administrators for the University of Minnesota faculty retirement plan and the individual retirement account plans under chapters 354B and 354D must report information required under this section by June 1 of each year.

Sec. 6. Minnesota Statutes 1996, section 424A.02, subdivision 10, is amended to read:

Subd. 10. [LOCAL APPROVAL OF BYLAW AMENDMENTS; FILING REQUIREMENTS.] (a) Each relief association to which this section applies shall file a revised copy of its governing bylaws with the commissioner of commerce state auditor upon the adoption of any amendment to its governing bylaws by the relief association or upon the approval of any amendment to its governing bylaws granted by the governing body of each municipality served by the fire department to which the relief association is directly associated. Failure of the relief association to file a copy of the bylaws or any bylaw amendments with the commissioner of commerce state auditor shall disqualify the municipality from the distribution of any future fire state aid until this filing requirement has been completed.

(b) If the special fund of the relief association does not have a surplus over full funding pursuant to section 69.772, subdivision 3, clause (2), subclause (e), or 69.773, subdivision 4, and if the municipality is required to provide financial support to the special fund of the relief association pursuant to section 69.772 or 69.773, no bylaw amendment which would affect the amount of, the manner of payment of, or the conditions for qualification for service pensions or ancillary benefits or disbursements other than administrative expenses authorized pursuant to section 69.80 payable from the special fund of the relief association shall be effective until it has been ratified by the governing body or bodies of the appropriate municipalities. If the municipality is not required to provide financial support to the special fund pursuant to this section, the relief association may adopt or amend without municipal ratification its articles of incorporation or bylaws which increase or otherwise affect the service pensions or ancillary benefits payable from the special fund so long as the changes do not cause the amount of the resulting increase in the accrued liability of the special fund to exceed 90 percent of the amount of the prior surplus over full funding and the changes do not result in the financial requirements of the special fund exceeding the expected amount of the future fire state aid to be received by the relief association.

(c) If the relief association pays only a lump sum pension, the financial requirements are to be determined by the board of trustees following the preparation of an estimate of the expected increase in the accrued liability and annual accruing liability of the relief association attributable to the change. If the relief association pays a monthly benefit service pension, the financial requirements are to be determined by the board of trustees following either an updated actuarial valuation including the proposed change or an estimate of the expected actuarial impact of the proposed change prepared by the actuary of the relief association. If a relief association adopts or amends its articles of incorporation or bylaws without municipal ratification pursuant to this subdivision, and, subsequent to the amendment or adoption, the financial requirements of the special fund pursuant to this section are such so as to require financial support from the municipality, the provision which was implemented without municipal ratification shall no longer be effective without municipal ratification, and any service pensions or ancillary benefits payable after that date shall be paid only in accordance with the articles of incorporation or bylaws as amended or adopted with municipal ratification.

Sec. 7. [REPEALER.]

Minnesota Statutes, section 356.218, is repealed.

Sec. 8. [EFFECTIVE DATE.]

Sections 1 to 7 are effective January 1, 1998, except that no penalty for noncompliance with section 5 may be assessed on account of any failure to comply with reporting requirements of that section prior to January 1, 1999.


Journal of the House - 39th Day - Top of Page 2057

ARTICLE 4

CORRECTIONAL RETIREMENT PLAN

MODIFICATIONS

Section 1. Laws 1996, chapter 408, article 8, section 21, is amended to read:

Sec. 21. [TEMPORARY PROVISION; ELECTION TO RETAIN RETIREMENT COVERAGE.]

(a) An employee in a position specified as qualifying under sections 12, 14, and 15, or an auto mechanic lead, an electrician, an electrician master of record, a groundskeeper intermediate, or a plumber master in charge at the Minnesota correctional facility-Red Wing, may elect to retain coverage under the general employees retirement plan of the Minnesota state retirement system or the teachers retirement association, or may elect to have coverage transferred to and to contribute to the correctional employees retirement plan. An employee electing to participate in the correctional employees retirement plan shall begin making contributions to the correctional plan beginning the first full pay period after January 1, 1997, or the first full pay period following filing of their election to transfer coverage to the correctional employees retirement plan, whichever is later. The election to retain coverage or to transfer coverage must be made in writing by the person on a form prescribed by the executive director of the Minnesota state retirement system and must be filed with the executive director no later than June 30 December 31, 1997.

(b) An employee failing to make an election by June 15, 1997, must be notified by certified mail by the executive director of the Minnesota state retirement system or of the teachers retirement association, whichever applies, of the deadline to make a choice. A person who does not submit an election form must continue coverage in the general employees retirement plan or the teachers retirement association, whichever applies, and forfeits all rights to transfer retirement coverage to the correctional employees retirement plan.

(c) The election to retain coverage in the general employee retirement plan or the teachers retirement association or the election to transfer retirement coverage to the correctional employees retirement plan is irrevocable once it is filed with the executive director.

Sec. 2. Laws 1996, chapter 408, article 8, section 22, subdivision 1, is amended to read:

Subdivision 1. [ELECTION OF PRIOR STATE SERVICE COVERAGE.] (a) An employee who has future retirement coverage transferred to the correctional employees retirement plan under sections 11, 12, 14, and 15, and 16, or an auto mechanic lead, an electrician, an electrician master of record, a groundskeeper intermediate, or a plumber master in charge at the Minnesota correctional facility-Red Wing, and who does not elect to retain general state employee retirement plan or teachers retirement association coverage is entitled to elect to obtain prior service credit for eligible state service performed on or after July 1, 1975, and before the first day of the first full pay period beginning after June 30 December 31, 1997, with the department of corrections or with the department of human services at the Minnesota security hospital or the Minnesota sexual psychopathic personality treatment center. All prior service credit must be purchased.

(b) Eligible state service with the department of corrections or with the department of human services is any prior period of continuous service on or after July 1, 1975, performed as an employee of the department of corrections or of the department of human services that would have been eligible for the correctional employees retirement plan coverage under sections 11, 12, 14, and 15, and 16, or an auto mechanic lead, an electrician, an electrician master of record, a groundskeeper intermediate, or a plumber master in charge at the Minnesota correctional facility-Red Wing, if that prior service had been performed after the first day of the first full pay period beginning after December 31, 1996, rather than before that date. Service is continuous if there has been no period of discontinuation of eligible state service for a period greater than 180 calendar days.

(c) The department of corrections or the department of human services, whichever applies, shall certify eligible state service to the executive director of the Minnesota state retirement system.

(d) A covered correctional plan employee employed on January 1, 1997, who has past service in a job classification covered under section 11, 12, 14, or 15, or 16, or an auto mechanic lead, an electrician, an electrician master of record, a groundskeeper intermediate, or a plumber master in charge at the Minnesota correctional facility-Red Wing, on


Journal of the House - 39th Day - Top of Page 2058

January 1, 1997, is entitled to purchase the past service if the applicable department certifies that the employee met the eligibility requirements for coverage. The employee must make the additional employee contributions under section 17. Payments for past service must be completed by June 30, 1999.

Sec. 3. Laws 1996, chapter 408, article 8, section 24, is amended to read:

Sec. 24. [EARLY RETIREMENT INCENTIVE.]

This section applies to an employee who has future retirement coverage transferred to the correctional employee retirement plan under sections 11, 12, 14, and 15, and 16, and who is at least 55 years old on the effective date of sections 11, 12, 14, and 15, and 16. This section also applies to an auto mechanic lead, an electrician, an electrician master of record, a groundskeeper intermediate, or a plumber master in charge at the Minnesota correctional facility-Red Wing who has transferred to the correctional employee retirement plan under this act. That employee may participate in a health insurance early retirement incentive available under the terms of a collective bargaining agreement in effect on the day before the effective date of sections 11, 12, 14, and 15, and 16, notwithstanding any provision of the collective bargaining agreement that limits participation to persons who select the option during the payroll period in which their 55th birthday occurs. A person selecting the health insurance early retirement incentive under this section must retire by the later of December 31, 1997 June 30, 1998, or within the pay period following the time at which the person has at least three years of covered correctional service, including any purchased service credit. An employee meeting this criteria who wishes to extend the person's employment must do so under Minnesota Statutes, section 43A.34, subdivision 3.

Sec. 4. [EFFECTIVE DATE.]

Sections 1 to 3 are effective on the day following final enactment.

ARTICLE 5

MISCELLANEOUS PROVISIONS

Section 1. [EXEMPTION; METROPOLITAN STATE UNIVERSITY.]

(a) Minnesota Statutes, section 352.115, subdivision 10, does not apply to a person who:

(1) was born June 22, 1939;

(2) retires from the faculty of Metropolitan State University with at least ten years of combined service credit in a system under the jurisdiction of the board of trustees of the Minnesota state colleges and universities;

(3) was employed on a full-time basis immediately preceding retirement;

(4) begins drawing an annuity from the Minnesota state retirement system; and

(5) returns to work on not less than a one-third time basis and not more than a two-thirds time basis at Metropolitan State University under an agreement in which the person may not earn a salary of more than $35,000 in a calendar year from employment after retirement at Metropolitan State University.

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

(c) Minnesota Statutes, section 136F.48, applies to a person described in paragraph (a), even though the person draws an annuity from the Minnesota state retirement system instead of a teachers retirement association.


Journal of the House - 39th Day - Top of Page 2059

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

Sec. 2. [ACCEPTANCE OF BENEFICIARY DESIGNATION CHANGE IN CERTAIN INSTANCES.]

Notwithstanding any provision of Minnesota Statutes 1996, chapter 354, to the contrary, the teachers retirement association may consider as validly filed a beneficiary designation change form under Minnesota Statutes 1996, section 354.10, subdivision 4, and a joint specification form under Minnesota Statutes 1996, section 354.46, subdivision 5, which was postmarked on January 8, 1997, and received by the teachers retirement association on January 10, 1997, on behalf of a teacher who was born on February 28, 1947, and who died on December 22, 1996.

(b) The designated beneficiary of the teacher specified in paragraph (a) is entitled to receive the applicable monthly survivor benefit retroactive to January 1, 1997.

Sec. 3. [PRIOR SERVICE CREDIT PURCHASE FOR CERTAIN PUBLIC EMPLOYEES.]

(a) A person described in paragraph (b) is entitled to purchase the period of allowable service credit from the public employees retirement association described in paragraph (c) if the purchase payment specified in paragraph (d) is made to the public employees retirement association.

(b) An eligible person is a person who:

(1) was born on August 10, 1939;

(2) was initially employed on a full-time basis by the parks and recreation division of the city of St. Paul on February 12, 1964;

(3) was initially covered by the public employees retirement association on November 1, 1964; and

(4) left public service on September 16, 1996.

(c) The period of purchasable allowable service credit is the period beginning on February 12, 1964, and ending on October 31, 1964.

(d) To purchase credit for prior eligible service under subdivision 1, there must be paid to the public employees retirement association an amount equal to the present value of the amount of the additional disability benefit obtained by purchase of the additional service credit. The calculation of this amount must be made by the executive director of the public employees retirement association using the applicable preretirement interest rate specified in Minnesota Statutes, section 356.215, subdivision 4d, and the mortality table adopted for the retirement association. The person making the purchase must establish in the records of the association proof of the service for which the purchase of prior service is requested. The manner of the proof of service must be in accordance with procedures prescribed by the executive director of the retirement association. Payment of the amount calculated under this subdivision is the obligation of the eligible person and must be made prior to July 1, 1998, in a lump sum. However, the former employer of the eligible individual may, at its discretion, pay all or any portion of the payment amount that exceeds an amount equal to the employee contribution rate or rates in effect during the period or periods of prior service, plus interest at the rate of 8.5 percent per year compounded annually from the date on which the contributions would otherwise have been made to the date on which the payment is made. If the employer agrees to payments under this paragraph, the person must make the employee payments required under this paragraph prior to July 1, 1998. If that employee payment is made, the employing unit payment under this paragraph must be remitted to the executive director of the retirement association within 60 days of receipt by the executive director of the employee payments specified under this paragraph.

(e) Service credit for the purchase period or periods must be granted to the account of the eligible person upon receipt of the purchase payment amount specified in subdivision 2 and the disability benefit of the person must be recalculated in light of the additional service credit.


Journal of the House - 39th Day - Top of Page 2060

Sec. 4. [EFFECTIVE DATE.]

Sections 1, 2, and 3 are effective on the day following final enactment."

Delete the title and insert:

"A bill for an act relating to retirement; various public pension plans and retirement programs; including seasonal revenue department employees in general state employee retirement plan coverage; modifying various pension provisions relating to the Minnesota state colleges and universities, the higher education individual retirement account plan, and the higher education supplemental retirement plan; requiring a study by the state board of investment on tax-sheltered annuities and the evaluation of insurance companies providing tax-sheltered annuities; providing for the requalification for police and paid firefighter relief association amortization state aid in certain instances; clarifying the handling of unclaimed money and property obtained by the Minneapolis police department; modifying the retirement date for certain Hibbing high school teachers; authorizing certain Minnesota correctional facility-Red Wing employees to elect correctional state employee retirement plan coverage; authorizing various correctional employees to transfer prior eligible service credit to the correctional state employee retirement plan; authorizing certain Minnesota state colleges and universities faculty a limited exemption from the general state employees retirement plan reemployed annuitant earnings limitation; authorizing the teachers retirement association to accept a beneficiary designation change form filed late; authorizing certain public employees retirement association disabilitants to purchase service credit for a period of uncredited St. Paul parks and recreation division employment; amending Minnesota Statutes 1996, sections 69.051, subdivisions 1, 1a, and 1b; 136F.45, by adding subdivisions; 352.01, subdivisions 2a and 2b; 354B.21, subdivision 3; 354C.11, 356.20, by adding a subdivision; 356.219; 423A.02, subdivision 2; 423B.06, subdivisions 1 and 1a; 424A.02, subdivision 10; Laws 1996, chapter 408, article 8, sections 21; 22, subdivision 1; and 24; repealing Minnesota Statutes 1996, section 356.218; and Laws 1995, chapter 262, article 1, sections 8, 9, 10, 11, and 12."

With the recommendation that when so amended the bill pass.

The report was adopted.

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

H. F. No. 1702, A bill for an act relating to health; regulating the practice of respiratory care; establishing the requirements for registration and regulation of respiratory care practitioners; providing for continuing education, fees, reporting obligations, disciplinary actions, and for an advisory council; providing criminal penalties; proposing coding for new law as Minnesota Statutes, chapter 147C; repealing Minnesota Rules, parts 4762.0010; 4762.0020; 4762.0030; 4762.0040; 4762.0050; 4762.0060; 4762.0065; 4762.0070; 4762.0080; 4762.0090; 4762.0100; 4762.0200; and 4762.0300.

Reported the same back with the following amendments:

Page 1, after line 13, insert:

"Section 1. [147A.27] [PHYSICIAN ASSISTANT ADVISORY COUNCIL.]

Subdivision 1. [MEMBERSHIP.] The physician assistant advisory council is created and is composed of seven persons appointed by the board. The seven persons must include:

(1) two public members, as defined in section 214.02;

(2) three physician assistants registered under this chapter; and

(3) two licensed physicians with experience supervising physician assistants.


Journal of the House - 39th Day - Top of Page 2061

Subd. 2. [ORGANIZATION.] The council shall be organized and administered under section 15.059, except that the advisory council shall expire on June 30, 2007.

Subd. 3. [DUTIES.] The council shall advise the board regarding:

(1) physician assistant registration standards;

(2) enforcement of grounds for discipline;

(3) distribution of information regarding physician assistant registration standards;

(4) applications and recommendations of applicants for registration or registration renewal; and

(5) complaints and recommendations to the board regarding disciplinary matters and proceedings concerning applicants and registrants according to sections 214.10; 214.103; and 214.13, subdivisions 6 and 7.

The council shall perform other duties authorized for the council by chapter 214 as directed by the board."

Page 5, line 14, delete "PENALTIES" and insert "PENALTY"

Page 5, line 15, delete "or subdivision 2"

Page 13, line 35, after the period, insert "The council expires June 30, 2001."

Page 14, delete lines 26 and 27

Page 14, after line 35, insert:

"Sec. 11. [PHYSICIAN ASSISTANT ADVISORY COUNCIL MEMBERSHIP.]

The current members of the physician assistant advisory council, appointed pursuant to Minnesota Rules, part 5600.2665, shall continue to serve until their terms expire."

Page 15, line 6, delete "1 to 10" and insert "2 to 10 and 12"

Page 15, line 9, after the period, insert "Fees in effect on the day before the effective date of section 12 remain in effect until the board changes them by rule."

Renumber the sections in sequence and correct internal references

Amend the title as follows:

Page 1, line 7, after the second semicolon, insert "creating a physician assistant advisory council;"

Page 1, line 7, after the second semicolon, insert "proposing coding for new law in Minnesota Statutes, chapter 147A;"

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. 2079, A bill for an act relating to public finance; clarifying a duty relating to expenditure forecasts; amending Minnesota Statutes 1996, section 16A.103, subdivision 1.

Reported the same back with the following amendments:

Page 1, line 18, delete the new language


Journal of the House - 39th Day - Top of Page 2062

Page 1, line 19, delete "must determine" and insert "In determining"

Page 1, line 21, after "forecast" insert ", the commissioner must consult with house and senate fiscal staff"

With the recommendation that when so amended the bill pass.

The report was adopted.

Long from the Committee on Taxes to which was referred:

H. F. No. 2147, A bill for an act relating to education; providing for early childhood education, community, prevention, and self-sufficiency programs; appropriating money; amending Minnesota Statutes 1996, sections 15.53, subdivision 2; 119A.01, subdivision 3; 119A.04, subdivision 6, and by adding a subdivision; 119A.13, subdivisions 2, 3, and 4; 119A.14; 119A.15, subdivisions 2, 5, and by adding a subdivision; 119A.16; 119A.31, subdivisions 1 and 2; 119B.01, subdivisions 8, 9, 12, 16, 17, and by adding subdivisions; 119B.02; 119B.03, subdivisions 3, 4, 5, 6, 7, 8, and by adding subdivisions; 119B.04; 119B.05, subdivisions 1, 5, 6, and by adding a subdivision; 119B.07; 119B.08, subdivisions 1 and 3; 119B.09, subdivisions 1, 2, and by adding subdivisions; 119B.10, subdivision 1; 119B.11, subdivisions 1, 3, and by adding a subdivision; 119B.12; 119B.13, subdivision 1, and by adding subdivisions; 119B.15; 119B.16, subdivision 1; 119B.18, by adding a subdivision; 119B.20, subdivisions 7, 9, and 10; 119B.21, subdivisions 1, 2, 3, 4, 5, 6, 8, 9, 10, and 11; 121.831, subdivisions 3 and 4; 121.8355, subdivision 1; 121.88, subdivisions 1, 10, and by adding a subdivision; 121.882, subdivisions 2 and 6; 124.17, subdivision 2e; 124.26, subdivision 2, and by adding a subdivision; 124.2601, subdivisions 3, 4, 5, 6, and by adding a subdivision; 124.261, subdivision 1; 124.2615, subdivisions 1 and 2; 124.2711, subdivisions 1 and 2a; 124.2713, subdivisions 6 and 8; 124.2716, subdivision 3; 268.38, by adding a subdivision; 268.53, subdivision 5; 268.55, by adding a subdivision; 268.912; 268.913, subdivisions 2 and 4; and 268.914, subdivision 1; proposing coding for new law in Minnesota Statutes, chapters 119A; and 119B; repealing Minnesota Statutes 1996, sections 119B.03, subdivision 7; 119B.05, subdivisions 2 and 3; 119B.11, subdivision 2; 119B.19, subdivision 2; 119B.21, subdivision 7; 121.8355, subdivision 1a; and 268.913, subdivision 5.

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

The report was adopted.

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

S. F. No. 95, A bill for an act relating to health; modifying provisions related to health maintenance organizations; modifying lead inspection provisions; providing for the expiration of certain advisory and work groups; modifying vital statistics provisions; modifying asbestos abatement provisions; modifying provisions relating to traumatic brain injury and spinal cord injury notification and data; modifying licensing requirements for elderly housing with services; modifying provisions for hearings related to permitting, licensing, registration, and certification; modifying revocation and suspension provisions for permits, licenses, registration, and certifications; modifying provisions for testing infants for inborn metabolic errors; modifying medical education and research costs trust fund provisions; requiring conformance with federal regulations; amending Minnesota Statutes 1996, sections 62D.02, subdivision 10; 62D.03, subdivisions 3 and 4; 62D.04, subdivision 3; 62D.042, subdivision 3; 62D.06, subdivision 1; 62D.07, subdivision 3; 62D.09, subdivisions 1, 3, and 8; 62D.102; 62D.11, subdivisions 1, 1b, and 3; 62D.12, by adding a subdivision; 62D.20, subdivision 2; 62J.15, by adding a subdivision; 62J.60, subdivision 3; 62J.69, subdivision 1; 62Q.03, subdivision 5a; 144.125; 144.215, subdivision 1; 144.218; 144.664, subdivision 3; 144.665; 144.672, subdivision 1; 144.9501, subdivision 29, and by adding a subdivision; 144.9504, subdivision 2; 144.9506, subdivisions 1 and 5; 144.99, subdivisions 9 and 10; 257.73; 326.71, subdivisions 4 and 6; 326.72, subdivision 2; 326.74; 326.76; 326.78, subdivision 1; and 326.785; repealing Minnesota Statutes 1996, sections 62D.03, subdivision 2; and 62D.11, subdivision 4; Laws 1988, chapter 495, section 1; Minnesota Rules, part 4600.3900.

Reported the same back with the following amendments to the unofficial engrossment:

Page 16, delete section 17


Journal of the House - 39th Day - Top of Page 2063

Pages 19 to 21, delete section 20

Pages 24 and 25, delete section 26

Page 32, line 10, delete "as"

Page 32, line 11, delete everything before the comma

Page 34, line 18, delete "Sections 17 and 21 are" and insert "Section 19 is"

Page 34, line 19, delete everything after the period

Page 34, delete line 20

Renumber the sections in sequence and correct internal references

Amend the title as follows:

Page 1, line 4, delete everything after the semicolon

Page 1, line 5, delete "certain advisory and work groups;"

Page 1, line 9, delete everything after the semicolon

Page 1, line 10, delete "housing with services;"

Page 1, line 24, delete everything after "2;"

Page 1, line 25, delete "a subdivision;"

Page 1, line 26, delete "62Q.03, subdivision 5a;"

Page 1, line 28, delete "144.672, subdivision 1;"

With the recommendation that when so amended the bill pass.

The report was adopted.

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

S. F. No. 101, A bill for an act relating to human services; adding an exclusion to elderly housing with services establishment; downsizing the number of IMD beds; modifying the appeal process for nursing facilities; changing procedure for permanent placement of a child and provisions for reimbursement for family foster care; removing the time limitation on family general assistance; amending Minnesota Statutes 1996, sections 144D.01, subdivision 4; 245.466, by adding a subdivision; 256B.059, subdivisions 1, 2, 5, and by adding a subdivision; 256B.17, subdivision 7; 256B.431, subdivision 18; 256B.50, subdivisions 1, 1b, 1c, and 1e; 256D.01, subdivision 1a; 257.071, subdivision 2; 260.191, subdivision 3b; 260.192; 260.242, subdivision 2; and 382.18; repealing Minnesota Statutes 1996, sections 256B.17, subdivisions 1, 2, 3, 4, 5, 6, and 8; and 256B.50, subdivisions 1d, 1g, 1h, and 2.

Reported the same back with the following amendments:

Page 2, line 27, after the period, insert "For the purposes of this subdivision, "a budget neutral plan" means a plan that does not increase the state share of costs."

With the recommendation that when so amended the bill pass.

The report was adopted.


Journal of the House - 39th Day - Top of Page 2064

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

S. F. No. 1888, A bill for an act relating to education; appropriating money for education and related purposes to the higher education services office, board of trustees of the Minnesota state colleges and universities, board of regents of the University of Minnesota, and the Mayo medical foundation, with certain conditions; prescribing changes in certain financial assistance programs; establishing educational savings plan accounts; clarifying duties of the higher education services office; providing for appropriations for certain enrollments; defining the mission for the Minnesota state colleges and universities system; clarifying the common numbering and credit transfer requirements; making technical corrections relating to the post-secondary merger; modifying the higher education facilities authority revenue bond authority; modifying certain capital improvement projects; placing a condition on referendums by campus student associations; establishing the Minnesota Virtual University and a roundtable on vocational technical education; amending Minnesota Statutes 1996, sections 16A.69, subdivision 2; 125.1385, subdivision 2; 126.56, subdivisions 2, 4a, and 7; 135A.031, subdivision 2; 135A.052, subdivision 1; 135A.08, subdivision 2; 136A.01, subdivision 2, and by adding a subdivision; 136A.03; 136A.121, subdivisions 5, 7, and 9a; 136A.125, subdivisions 3 and 4; 136A.136, subdivision 2; 136A.15, by adding a subdivision; 136A.16, subdivisions 1, 2, 8, and by adding subdivisions; 136A.171; 136A.173, subdivisions 1, 3, and 5; 136A.174; 136A.175, subdivisions 1 and 2; 136A.233, subdivisions 1 and 2; 136A.29, subdivision 9; 136F.05; 216C.27, subdivision 7; Laws 1994, chapter 643, sections 10, subdivision 10, as amended; and 19, subdivision 9, as amended; proposing coding for new law in Minnesota Statutes, chapter 136A; repealing Laws 1995, chapter 212, article 4, section 34; and Laws 1995, First Special Session chapter 2, article 1, sections 35 and 36.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"ARTICLE 1

APPROPRIATIONS

Section 1. [HIGHER EDUCATION APPROPRIATIONS.]

The sums in the columns marked "APPROPRIATIONS" are appropriated from the general fund, or other named fund, to the agencies and for the purposes specified in this article. The listing of an amount under the figure "1998" or "1999" in this article indicates that the amount is appropriated to be available for the fiscal year ending June 30, 1998, or June 30, 1999, respectively. "The first year" is fiscal year 1998. "The second year" is fiscal year 1999. "The biennium" is fiscal years 1998 and 1999.

SUMMARY BY FUND

1998 1999 TOTAL

General $1,188,212,000 $1,195,072,000$2,383,284,000

SUMMARY BY AGENCY - ALL FUNDS

1998 1999 TOTAL

Higher Education Services Office 126,261,000 129,926,000 256,187,000

Board of Trustees of the Minnesota

State Colleges and Universities 505,778,000 523,183,000 1,028,961,000

Board of Regents of the University of Minnesota 554,994,000 540,681,000 1,095,675,000

Mayo Medical Foundation 1,179,000 1,282,000 2,461,000


Journal of the House - 39th Day - Top of Page 2065

APPROPRIATIONS

Available for the Year

Ending June 30

1998 1999

Sec. 2. HIGHER EDUCATION SERVICES OFFICE

Subdivision 1. Total Appropriation 126,261,000 129,926,000

The amounts that may be spent from this appropriation for each purpose are specified in the following subdivisions.

Subd. 2. State Grants

91,996,000 100,846,000

If the appropriation in this subdivision for either year is insufficient, the appropriation for the other year is available for it.

The legislature intends that the higher education services office make full grant awards in each year of the biennium.

For the biennium, the private institution tuition maximum shall be $7,860 in the first year and $8,055 in the second year for four-year institutions and $6,050 in the first year and $6,200 in the second year for two-year institutions.

This appropriation contains money to set the living and miscellaneous expense allowance at $4,305 in the first year and $4,413 in the second year.

This appropriation includes $250,000 each year for grants to nursing programs to recruit persons of color and to provide grants to nursing students who are persons of color. Of this amount, $100,000 each year is for recruitment and retention of students of color in nursing programs leading to licensure as a registered nurse. Other than the grants to students, all grants shall be matched with at least the same amount from grantee sources or nonstate money.

$50,000 in the first year is nonrecurring money for the loan repayment assistance program of Minnesota to reimburse graduates of Minnesota law schools working as lawyers in Minnesota who meet the eligibility criteria for loan repayment for law school debt. The eligibility criteria must include the following: (1) recipient's annual household income is $30,000 or less; and (2) recipient is providing legal services full time for economically disadvantaged persons for (a) a nonprofit agency as defined by section 501(c)(3), 501(c)(4), or 501(c)(5) of the Internal Revenue Code of 1986; (b) Native American tribal governments, court systems, and public interest organizations; (c) public defense corporations; or (d) the state board of public defense. The money may be released to the program only in amounts that have been matched two to one with private money.

Subd. 3. Interstate Tuition Reciprocity

4,000,000 4,000,000


Journal of the House - 39th Day - Top of Page 2066

If the appropriation in this subdivision for either year is insufficient, the appropriation for the other year is available to meet reciprocity contract obligations.

Subd. 4. State Work Study

8,819,000 8,819,000

Subd. 5. Minitex Library Program

2,608,000 2,608,000

Subd. 6. Learning Network of Minnesota

4,424,000 4,426,000

$1,000,000 in each year is nonrecurring money for new technology.

Subd. 7. Income Contingent Loans

The higher education services office shall administer an income contingent loan repayment program to assist graduates of Minnesota schools in medicine, dentistry, pharmacy, chiropractic medicine, public health, and veterinary medicine, and Minnesota residents graduating from optometry and osteopathy programs. Applicant data collected by the higher education services office for this program may be disclosed to a consumer credit reporting agency under the same conditions as apply to the supplemental loan program under Minnesota Statutes, section 136A.162. No new applicants may be accepted after June 30, 1995.

Subd. 8. Statewide On-line Library Information System

12,000,000 -0-

This appropriation is for implementation of the Minnesota library information network, which shall be developed in cooperation with the library planning task force, and shall include the development of (1) an integrated library system that will serve the libraries of the University of Minnesota, the Minnesota state colleges and universities system, and state government, as well as interested public, school, private college, and qualifying nonprofit institution libraries; and (2) a common services gateway creating links to the integrated library system for compatible school, public, and private nonprofit library information systems statewide. The University of Minnesota and the Minnesota state colleges and universities shall provide necessary staff for operation, technical support, and training. This appropriation is nonrecurring.

Subd. 9. Edvest

-0- 6,775,000

$6,775,000 in the second year is for matching college savings.


Journal of the House - 39th Day - Top of Page 2067

Subd. 10. Agency Administration

2,414,000 2,452,000

Money encumbered for youth works postservice benefits shall not cancel but is available until the participants for whom the money was encumbered are no longer eligible to draw benefits.

This appropriation includes money for the Minnesota Minority Education Partnership.

The higher education advisory council and the student advisory council shall not expire on June 30, 1997, but shall continue for the biennium.

Subd. 11. Balances Forward

An unencumbered balance in the first year under a subdivision in this section does not cancel but is available for the second year.

Subd. 12. Transfers

The higher education services office may transfer unencumbered balances from the appropriations in this section to the state grant appropriation by reducing the assigned family responsibility and then reducing the student share, the interstate tuition reciprocity appropriation, the child care grant appropriation, and the state work study appropriation.

Sec. 3. BOARD OF TRUSTEES OF THE MINNESOTA STATE

COLLEGES AND UNIVERSITIES

Subdivision 1. Total Appropriation 505,778,000 525,183,000

The amounts that may be spent from this appropriation for each purpose are specified in the following subdivisions.

Unless otherwise specified in this section, in fiscal year 1998 each college and university is to receive its fiscal year 1997 total allocation adjusted for enrollment changes. In addition, all instructional and noninstructional appropriation increases are to be distributed to the colleges and universities based on each campus' proportion of the fiscal year 1997 state appropriation. The system shall report to the legislature on the board's progress in developing a new allocation model by February 1, 1998.

Subd. 2. Instructional Expenditures

The legislature estimates that instructional expenditures will be $600,516,000 in the first year and $625,875,000 in the second year for the Minnesota state colleges and universities.


Journal of the House - 39th Day - Top of Page 2068

This appropriation contains money for educational enhancements including improvements in programs, student services, advising, library acquisitions, and class size and availability, while holding down tuition increases.

This appropriation includes nonrecurring funding to be directed to those campuses that are below a minimally acceptable standard in instructional technology and equipment. The appropriation also includes recurring funds, to be distributed as provided in subdivision 1, for improvements in instructional technology and equipment which is used for the benefit of faculty and students on campus.

This appropriation contains nonrecurring money to develop and implement a common student information system and central data management system, and to upgrade the management information systems network.

This appropriation contains money for grants to develop courses that can be delivered through the Virtual University. Grant recipients shall match this appropriation by an equal amount of money from existing or nonstate resources.

The board shall implement a program for the preparation and certification of bilingual interpreters and translators skilled in English and other languages. The board shall accomplish the implementation in cooperation with the University of Minnesota, which shall provide necessary technical assistance.

In the process of converting to semesters, the system and campuses shall develop and incorporate mechanisms to improve credit transfer as they redesign curriculum.

A campus student association shall not hold a referendum to determine statewide affiliation before May 1, 1998, or before the statewide student associations for the community colleges and technical colleges vote to consolidate, whichever is sooner.

Subd. 3. Noninstructional Expenditures

The legislature estimates that noninstructional expenditures will be $43,843,000 in the first year and $43,741,000 in the second year for the Minnesota state colleges and universities.

This appropriation contains money for development and implementation of the Minnesota career and education planning system in partnership with the University of Minnesota, the department of children, families, and learning, and the Minnesota office of technology. System maintenance and operation costs must be paid by participating agencies and institutions.


Journal of the House - 39th Day - Top of Page 2069

$150,000 in the first year is to establish pilot programs at one community college, one technical college, and one consolidated community technical college to expand the child care offerings on campus to include infant care. To be chosen by the board to receive a grant, a campus must demonstrate that (1) it has an exemplary child care program, (2) there is demand for infant care on campus, and (3) it has the physical and financial capacity to sustain an infant care program after the pilot grant has expired. The board shall provide an evaluation of the pilot programs and its recommendations on expanding infant care to other campuses to the education committees of the legislature as part of its 2000-2001 biennial budget request.

The percentage of debt service assessed to the campus for capital projects not recommended by the board may not be higher than for those projects recommended by the board.

$204,000 the first year and $99,000 the second year are for debt service payments.

$150,000 each year is for southwest Asia veterans tuition relief.

Sec. 4. BOARD OF REGENTS OF THE UNIVERSITY OF

MINNESOTA

Subdivision 1. Total Appropriation 554,994,000 540,681,000

The amounts that may be spent from this appropriation for each purpose are specified in the following subdivisions.

Subd. 2. Operations and Maintenance 474,905,000 476,692,000

(a) Instructional Expenditures

The legislature estimates that instructional expenditures will be $387,192,000 in the first year and $394,135,000 in the second year for the University of Minnesota.

This appropriation contains money for grants to develop courses that can be delivered through the Virtual University. Grant recipients shall match this appropriation by an equal amount of money from existing or nonstate resources.

(b) Noninstructional Expenditures

The legislature estimates that noninstructional expenditures will be $183,783,000 in the first year and $180,350,000 in the second year for the University of Minnesota.

$3,000,000 in the first year is for a portion of the funding necessary to predesign, design, construct, and equip a new recreation facility at the Minneapolis campus, including an ice sheet for use by the women's athletic program. The board of regents must return $1,000,000 of this appropriation to the general fund, payable in two installments of $500,000 on June 30, 1998, and June 30, 1999.


Journal of the House - 39th Day - Top of Page 2070

This appropriation contains money for the development and implementation of the Minnesota career and education planning system in partnership with the Minnesota state colleges and universities, the department of children, families, and learning, and the Minnesota office of technology. System maintenance and operation costs must be paid by participating agencies and institutions.

$250,000 in the first year is for the academic health center to provide research grants of up to $20,000 to faculty. These grants shall be given to provide developmental support for projects that have a strong potential for future funding from outside sources.

This appropriation contains nonrecurring money for administrative process redesign.

$1,600,000 in nonrecurring funds in the first year is to honor the first woman elected from Minnesota to the United States congress by endowing the Coya Knutson chair in political science.

Subd. 3. Special Appropriation 80,089,000 63,989,000

The amounts expended for each program in the four categories of special appropriations shall be separately identified in the 1999 biennial budget document.

(a) Agriculture and Extension Service

48,297,000 47,297,000

This appropriation is for the Agricultural Experiment Station and Minnesota Extension Service.

Any salary increases granted by the university to personnel paid from the Minnesota Extension appropriation must not result in a reduction of the county portion of the salary payments.

During the biennium, the university shall maintain an advisory council system for each experiment station. The advisory councils must be broadly representative of range of size and income distribution of farms and agribusinesses and must not disproportionately represent those from the upper half of the size and income distributions.

$1,000,000 in the first year is for agricultural education. Of this amount $600,000 is for the Minnesota agriculture leadership council including $200,000 for grants. $400,000 is for the university to improve recruitment and collaborative efforts at the college of agriculture, food, and environmental science. Appropriations in this paragraph are nonrecurring.

(b) Health Sciences

19,682,000 4,742,000


Journal of the House - 39th Day - Top of Page 2071

This appropriation is for Indigent Patients (County Papers), Rural Physicians Associates Program, the Veterinary Diagnostic Laboratory, Health Sciences Research, and dental care.

This appropriation contains money for curriculum redesign and technology, technology transfer, research and public service, and the biomedical engineering center endowment. Appropriations for these purposes are nonrecurring.

(c) Institute of Technology

1,552,000 1,552,000

This appropriation is for the Geological Survey and the Talented Youth Mathematics Program.

(d) System Specials

10,558,000 10,398,000

This appropriation is for General Research, Student Loans Matching Money, women's athletics, Industrial Relations Education, Natural Resources Research Institute, Center for Urban and Regional Affairs, Bell Museum of Natural History, and the Humphrey Exhibit. The appropriation also contains money for the Carlson school initiative.

This appropriation includes money to improve the programs and resources available to women and to assist campuses to comply with Title IX of the Education Amendments of 1972 and Minnesota Statutes, section 126.21. Of this appropriation, no less than the following amounts must be allocated to each campus:

Duluth $551,600 $551,600

Morris $ 66,100 $ 66,100

Crookston $ 65,000 $ 65,000

By February 15 of each year, the University shall report to the higher education divisions of the legislature on its efforts to improve opportunities for female athletes consistent with Title IX.

Sec. 5. MAYO MEDICAL FOUNDATION

Subdivision 1. Total Appropriation 1,179,000 1,282,000

The amounts that may be spent from this appropriation for each purpose are specified in the following subdivisions.

Subd. 2. Medical School

441,000 455,000


Journal of the House - 39th Day - Top of Page 2072

The state of Minnesota shall pay a capitation of $11,042 in the first year and $11,378 in the second year for each student who is a resident of Minnesota. The appropriation may be transferred between years of the biennium to accommodate enrollment fluctuations.

The legislature intends that during the biennium the Mayo foundation use the capitation money to increase the number of doctors practicing in rural areas in need of doctors.

Subd. 3. Family Practice and Graduate Residency Program

408,000 467,000

The state of Minnesota provides a capitation of $15,107 in the first year and $15,560 in the second year year for each student.

Subd. 4. St. Cloud Hospital-Mayo Family Practice Residency Program

330,000 360,000

This appropriation is to the Mayo foundation to support 12 resident physicians in the St. Cloud Hospital-Mayo Family Practice Residency Program. This appropriation is contingent upon $950,000 in matching money being made available from nonstate sources. The program shall prepare doctors to practice primary care medicine in rural areas of the state. It is intended that this program will improve health care in rural communities, provide affordable access to appropriate medical care, and manage the treatment of patients in a more cost-effective manner.

Sec. 6. POST-SECONDARY SYSTEMS

The legislature intends that the University of Minnesota and the Minnesota state colleges and universities correct technical college credit transfer problems. The systems, in conjunction with their campuses and with faculty and student representatives, shall convene faculty task forces in appropriate curricular areas to determine, within sound academic standards, which technical college courses shall transfer to academic institutions and whether each course is accepted for general education, major field, or elective credit. The task forces shall complete their work in time to implement changes for the 1998-1999 academic year. The systems shall develop mechanisms for assessing the success of the changes after they have been implemented and shall determine whether this process should be used to update the entire transfer curriculum, particularly in light of semester conversion. The systems shall report on their progress and recommendations for any further action as part of the 2000-2001 biennial budget request.

The board of regents of the University of Minnesota and the board of trustees of the Minnesota state colleges and universities shall consult throughout their biennial planning process, as provided in Minnesota Statutes, section 135A.06, in order to improve the coordination and


Journal of the House - 39th Day - Top of Page 2073

delivery of higher education services. In addition, the board of trustees and the board of regents shall jointly prepare and submit a metropolitan higher education plan to the higher education divisions of the legislature by February 1, 1998. The private colleges are encouraged to participate in the planning processes.

By February 15, 1998, Minnesota state colleges and universities and the University of Minnesota shall each report to the higher education divisions of the legislature their recommendations on the feasibility of managing their portions of state grant funds and the methodology they would use to distribute the funds.

During the biennium, a college or university that establishes a lab school shall report to its governing board and the higher education divisions of the legislature by February 1, 1999, on all direct and indirect expenditures related to the establishment and operation of the school. The report shall include documentation of all sources of funding for these expenses.

ARTICLE 2

COLLEGE AFFORDABILITY

Section 1. [16A.645] [GOPHER STATE BONDS.]

Subdivision 1. [ESTABLISHMENT OF PROGRAM.] The commissioner of finance, in consultation with the University of Minnesota, the Minnesota state colleges and universities, and the private college council, shall establish a college savings bond program, to be known as "gopher state bonds" to encourage individuals to save for higher education costs by investing in state general obligation bonds. The program consists of: (1) issuing a portion of the state general obligation bonds in zero coupon form and in denominations and maturities that will be attractive to individuals saving to pay for higher education costs; and (2) developing a program for marketing the bonds to investors who are saving to pay for higher education costs. The commissioner of finance may designate all or a portion of each state general obligation bond sale as "gopher state bonds."

Subd. 2. [DENOMINATIONS; MATURITIES.] The commissioner shall determine the appropriate denominations and maturities for gopher state bonds. It is the intent of the legislature to make bonds available in as small denominations as is feasible given the costs of marketing and administering the bond issue. Minimum denominations of $500 must be made available. The minimum denomination bonds need not be made available for bonds of all maturities. For purposes of this section, "denomination" means the compounded maturity amount of the bond.

Subd. 3. [DIRECT SALE PERMITTED.] Notwithstanding the provisions of section 16A.646, subdivision 5, the commissioner may sell any series of gopher state bonds directly to the public or to financial institutions for prompt resale to the public upon the terms and conditions and the restrictions the commissioner prescribes. The commissioner may enter into all contracts deemed necessary or desirable to accomplish the sale in a cost-effective manner including a private or negotiated sale, but the commissioner may contract for investment banking and banking services only after receiving competitive proposals for the services.

Subd. 4. [MARKETING PLAN.] The commissioner and the higher education advisory council shall develop a plan for marketing gopher state bonds.


Journal of the House - 39th Day - Top of Page 2074

The plan must include strategies to:

(1) inform parents and relatives about the availability of the bonds;

(2) take orders for the bonds;

(3) target the sale of the bonds to Minnesota residents, especially parents and relatives of children who are likely to seek higher education;

(4) ensure that purchase of the bonds by corporations will not prevent individuals and relatives of future students from buying them; and

(5) market the bonds at the lowest cost to the state.

Subd. 5. [EFFECT ON STUDENT GRANTS.] The first $25,000 of gopher state bonds purchased for the benefit of a student must not be considered in determining the financial need of an applicant for the state grant program under section 136A.121. This $25,000 is in addition to any other asset exclusion authorized under chapter 136A.

Sec. 2. [16A.646] [ZERO COUPON BONDS.]

Subdivision 1. [AUTHORITY TO ISSUE.] When authorized by law to issue state general obligation bonds, the commissioner may issue all or part of the bonds as serial maturity bonds or as zero coupon bonds or a combination of the two.

Subd. 2. [DEFINITIONS.] For purposes of this section and section 16A.645, the following terms have the meanings given them.

(a) "Compounded maturity" means the amount of principal and interest payable at maturity on zero coupon bonds.

(b) "Serial maturity bonds" means bonds maturing on a specified day in two or more consecutive years and bearing interest at a specified rate payable periodically to maturity or prior redemption.

(c) "Zero coupon bonds" means bonds in a stated principal amount, maturing on a specified date or dates, and bearing interest that accrues and compounds to and is payable only at maturity or upon prior redemption of the bonds.

Subd. 3. [METHOD OF SALE; PRINCIPAL AMOUNT.] Except as otherwise provided by this section or section 16A.645, any series of bonds including zero coupon bonds must be issued and sold under the provisions of section 16A.641. The stated principal amount of zero coupon bonds must be used to determine the principal amount of bonds issued under the laws authorizing issuance of state general obligation bonds.

Subd. 4. [SINKING FUND.] The commissioner's order authorizing the issuance of zero coupon bonds shall establish a separate sinking fund account for the zero coupon bonds in the state bond fund. There is annually appropriated from the general fund to each zero coupon bond account, beginning in the year in which the zero coupon bonds are issued, an amount not less than the sum of:

(1) the total stated principal amount of the zero coupon bonds that would have matured from their date of issue to and including the second July 1 following the transfer of appropriated money, if the bonds matured serially in an equal principal amount in each year during their term and in the same month as their stated maturity date; plus

(2) the total amount of interest accruing on the stated principal amount of the bonds and on interest previously accrued, from bonds date of issue to and including the second July 1 following the transfer of appropriated money; less

(3) the amount in the sinking fund account for the payment of the compounded maturity amount of the bonds, including interest earnings on amounts in the account. This appropriation is in lieu of all other appropriations made with respect to zero coupon bonds. The appropriated amounts must be transferred from the general fund to the sinking fund account in the state bond fund by December 1 of each year.


Journal of the House - 39th Day - Top of Page 2075

Subd. 5. [SALE.] Except as otherwise provided in section 16A.645, zero coupon bonds, or a series of bonds including zero coupon bonds, must be sold at public sale at a price not less than 98 percent of their stated principal amount. No state trunk highway bond may be sold for a price of less than par and accrued interest.

Sec. 3. Minnesota Statutes 1996, section 136A.101, is amended by adding a subdivision to read:

Subd. 5a. [ASSIGNED FAMILY RESPONSIBILITY.] "Assigned family responsibility" means the amount of a family contribution to a student's cost of attendance, as determined by a federal need analysis, except that up to $25,000 in savings and other assets shall be subtracted from the federal calculation of net worth before determining the contribution. For dependent students, the assigned family responsibility is the parental contribution minus any savings adjustment; for independent students, the assigned family responsibility is the student contribution minus any savings adjustment.

Sec. 4. Minnesota Statutes 1996, section 136A.121, subdivision 5, is amended to read:

Subd. 5. [GRANT STIPENDS.] The grant stipend shall be based on a sharing of responsibility for covering the recognized cost of attendance by the applicant, the applicant's family, and the government. The amount of a financial stipend must not exceed a grant applicant's recognized cost of attendance, as defined in subdivision 6, after deducting the following:

(1) the assigned student responsibility of at least 50 percent of the cost of attending the institution of the applicant's choosing;

(2) the assigned family responsibility, as determined by the federal need analysis, which for (i) dependent students, is the parental contribution as calculated by the federal need analysis, and for (ii) independent students, is the student contribution as determined by the federal need analysis; and as defined in section 136A.101; and

(3) the amount of a federal Pell grant award for which the grant applicant is eligible.

The minimum financial stipend is $300 per academic year.

Sec. 5. Minnesota Statutes 1996, section 136A.121, subdivision 9a, is amended to read:

Subd. 9a. [FULL-YEAR GRANTS.] Students may receive state grants for four consecutive quarters or three consecutive semesters during the course of a single fiscal year. In calculating a state grant for the fourth quarter or third semester, the office must use the same calculation as it would for any other term, except that the calculation must subtract any Pell grant for which a student would be eligible even if the student has exhausted the Pell grant for that fiscal year.

Sec. 6. Minnesota Statutes 1996, section 136A.125, subdivision 4, is amended to read:

Subd. 4. [AMOUNT AND LENGTH OF GRANTS.] The amount of a child care grant must be based on:

(1) the income of the applicant and the applicant's spouse, if any;

(2) the number in the applicant's family, as defined by the office; and

(3) the number of eligible children in the applicant's family.

The maximum award to the applicant shall be $1,700 $2,000 for each eligible child per academic year. The office shall prepare a chart to show the amount of a grant that will be awarded per child based on the factors in this subdivision. The chart shall include a range of income and family size.

Sec. 7. Minnesota Statutes 1996, section 136A.1355, is amended to read:

136A.1355 [RURAL PHYSICIANS.]

Subdivision 1. [CREATION OF ACCOUNT.] A rural physician education account is established in the health care access fund. The higher education services office commissioner shall use money from the account to establish a loan forgiveness program for medical students residents agreeing to practice in designated rural areas, as defined by the commissioner.


Journal of the House - 39th Day - Top of Page 2076

Subd. 2. [ELIGIBILITY.] To be eligible to participate in the program, a prospective physician must submit a letter of interest to the higher education services office commissioner. A student or resident who is accepted must sign a contract to agree to serve at least three of the first five years following residency in a designated rural area.

Subd. 3. [LOAN FORGIVENESS.] For each fiscal years beginning on and year after July 1, 1995, the higher education services office commissioner may accept up to four applicants who are fourth year medical students, three 12 applicants who are medical residents, including four applicants who are pediatric residents, and four six applicants who are family practice residents, and one applicant who is an two applicants who are internal medicine resident residents, per fiscal year for participation in the loan forgiveness program. If the higher education services office commissioner does not receive enough applicants per fiscal year to fill the number of residents in the specific areas of practice, the resident applicants may be from any area of practice. The eight 12 resident applicants may be in any year of training; however, priority must be given to the following categories of residents in descending order: third year residents, second year residents, and first year residents. Applicants are responsible for securing their own loans. Applicants chosen to participate in the loan forgiveness program may designate for each year of medical school, up to a maximum of four years, an agreed amount, not to exceed $10,000, as a qualified loan. For each year that a participant serves as a physician in a designated rural area, up to a maximum of four years, the higher education services office commissioner shall annually pay an amount equal to one year of qualified loans. Participants who move their practice from one designated rural area to another remain eligible for loan repayment. In addition, if in any year that a resident participating in the loan forgiveness program serves at least four weeks during a year of residency substituting for a rural physician to temporarily relieve the rural physician of rural practice commitments to enable the rural physician to take a vacation, engage in activities outside the practice area, or otherwise be relieved of rural practice commitments, the participating resident may designate up to an additional $2,000, above the $10,000 yearly maximum, for each year of residency during which the resident substitutes for a rural physician for four or more weeks.

Subd. 4. [PENALTY FOR NONFULFILLMENT.] If a participant does not fulfill the required three-year minimum commitment of service in a designated rural area, the higher education services office commissioner shall collect from the participant the amount paid by the commissioner under the loan forgiveness program. The higher education services office commissioner shall deposit the money collected in the rural physician education account established in subdivision 1. The commissioner shall allow waivers of all or part of the money owed the commissioner if emergency circumstances prevented fulfillment of the three-year service commitment.

Subd. 5. [LOAN FORGIVENESS; UNDERSERVED URBAN COMMUNITIES.] For each fiscal years year beginning on and after July 1, 1995, the higher education services office commissioner may accept up to four applicants who are either fourth year medical students, or residents in family practice, pediatrics, or internal medicine per fiscal year for participation in the urban primary care physician loan forgiveness program. The resident applicants may be in any year of residency training; however, priority will be given to the following categories of residents in descending order: third year residents, second year residents, and first year residents. If the higher education services office commissioner does not receive enough qualified applicants per fiscal year to fill the number of slots for urban underserved communities, the slots may be allocated to students or residents who have applied for the rural physician loan forgiveness program in subdivision 1. Applicants are responsible for securing their own loans. For purposes of this provision, "qualifying educational loans" are government and commercial loans for actual costs paid for tuition, reasonable education expenses, and reasonable living expenses related to the graduate or undergraduate education of a health care professional. Applicants chosen to participate in the loan forgiveness program may designate for each year of medical school, up to a maximum of four years, an agreed amount, not to exceed $10,000, as a qualified loan. For each year that a participant serves as a physician in a designated underserved urban area, up to a maximum of four years, the higher education services office commissioner shall annually pay an amount equal to one year of qualified loans. Participants who move their practice from one designated underserved urban community to another remain eligible for loan repayment.

Sec. 8. Minnesota Statutes 1996, section 136A.136, subdivision 2, is amended to read:

Subd. 2. [RESPONSIBILITY OF METROPOLITAN HEALTHCARE FOUNDATION'S PROJECT LINC.] The metropolitan healthcare foundation's project LINC shall administer the grant program and award grants to eligible health care facility employees. To be eligible to receive a grant, a person must be:

(1) an employee of a health care facility located in Minnesota, whom the facility has recommended to the metropolitan healthcare foundation's project LINC for consideration;


Journal of the House - 39th Day - Top of Page 2077

(2) working part time, up to 32 fewer hours than their regular schedule per pay period, for the health care facility organization, while maintaining full salary and their original benefits and a salary greater than the number of hours worked;

(3) enrolled full time in a Minnesota school or college of nursing to complete a baccalaureate or master's degree in nursing; and

(4) a resident of the state of Minnesota.

The grant must be awarded for one academic year but is renewable for a maximum of six semesters or nine quarters of full-time study, or their equivalent. The grant must be used for tuition, fees, and books. Priority in awarding grants shall be given to persons with the greatest financial need. The health care facility may require its employee to commit to a reasonable postprogram completion of employment at the health care facility as a condition for the financial support the facility provides.

Sec. 9. Minnesota Statutes 1996, section 136A.233, subdivision 2, is amended to read:

Subd. 2. [DEFINITIONS.] For purposes of sections 136A.231 to 136A.233, the words defined in this subdivision have the meanings ascribed to them.

(a) "Eligible student" means a Minnesota resident enrolled or intending to enroll at least half time in a degree, diploma, or certificate program in a Minnesota post-secondary institution.

(b) "Minnesota resident" means a student who meets the conditions in section 136A.101, subdivision 8.

(c) "Financial need" means the need for financial assistance in order to attend a post-secondary institution as determined by a post-secondary institution according to guidelines established by the higher education services office.

(d) "Eligible employer" means any eligible post-secondary institution and, any nonprofit, nonsectarian agency or state institution located in the state of Minnesota, including state hospitals, and also includes a handicapped person or a person over 65 who employs a student to provide personal services in or about the person's residence of the handicapped person or the person over 65, or a private, for-profit employer employing a student as an intern in a position directly related to the student's field of study that will enhance the student's knowledge and skills in that field. Internships must be under the supervision of a faculty member or other academic employee at the institution.

(e) "Eligible post-secondary institution" means any post-secondary institution eligible for participation in the Minnesota state grant program as specified in section 136A.101, subdivision 4.

(f) "Independent student" has the meaning given it in the Higher Education Act of 1965, United States Code, title 20, section 1070a-6, and applicable regulations.

(g) "Half-time" for undergraduates has the meaning given in section 136A.101, subdivision 7b, and for graduate students is defined by the institution.

Sec. 10. Minnesota Statutes 1996, section 136A.233, subdivision 3, is amended to read:

Subd. 3. [PAYMENTS.] Work-study payments shall be made to eligible students by post-secondary institutions as provided in this subdivision.

(a) Students shall be selected for participation in the program by the post-secondary institution on the basis of student financial need.

(b) In selecting students for participation, priority must be given to students enrolled for at least 12 credits.

(c) Students will be paid for hours actually worked and the maximum hourly rate of pay shall not exceed the maximum hourly rate of pay permitted under the federal college work-study program.


Journal of the House - 39th Day - Top of Page 2078

(d) Minimum pay rates will be determined by an applicable federal or state law.

(e) The office shall annually establish a minimum percentage rate of student compensation to be paid by an eligible employer.

(f) Each post-secondary institution receiving money for state work-study grants shall make a reasonable effort to place work-study students in employment with eligible employers outside the institution. However, a public employer other than the institution may not terminate, lay off, or reduce the working hours of a permanent employee for the purpose of hiring a work-study student, or replace a permanent employee who is on layoff from the same or substantially the same job by hiring a work-study student.

(g) The percent of the institution's work-study allocation provided to graduate students shall not exceed the percent of graduate student enrollment at the participating institution.

(h) No more than 20 percent of an institution's allocation may be used for student internships with private, for-profit employers.

Sec. 11. Minnesota Statutes 1996, section 136A.233, is amended by adding a subdivision to read:

Subd. 4. [COOPERATION WITH LOCAL SCHOOLS.] Each campus using the state work study program is encouraged to cooperate with its local public elementary and secondary schools to place college work study students in activities in the schools, such as tutoring. Students must be placed in meaningful activities that directly assist students in kindergarten through grade 12 in meeting graduation standards including the profiles of learning. College students shall work under direct supervision; therefore, school hiring authorities are not required to request criminal background checks on these students under section 120.1045.

Sec. 12. [136A.90] [EDVEST PROGRAM ESTABLISHED.]

An Edvest savings program is established. In establishing this program, the legislature seeks to encourage individuals to save for post-secondary education by:

(1) providing a qualified state tuition program under federal tax law;

(2) providing matching grants for contributions to the program; and

(3) encouraging individuals, foundations, and businesses to provide additional grants to participating students.

Sec. 13. [136A.91] [DEFINITIONS.]

Subdivision 1. [GENERAL.] For purposes of sections 136A.90 to 136A.94, the following terms have the meanings given.

Subd. 2. [BENEFICIARY.] "Beneficiary" means the designated beneficiary for the account, as defined in section 529(e)(1) of the Internal Revenue Code.

Subd. 3. [BOARD.] "Board" means the state board of investment.

Subd. 4. [EXECUTIVE DIRECTOR.] "Executive director" means the executive director of the state board of investment.

Subd. 5. [INTERNAL REVENUE CODE.] "Internal Revenue Code" means the Internal Revenue Code of 1986, as amended.

Subd. 6. [OFFICE.] "Office" means the higher education services office.

Subd. 7. [PROGRAM OR EDVEST.] "Program" or "Edvest" refers to the program established under section 136A.90.


Journal of the House - 39th Day - Top of Page 2079

Sec. 14. [136A.92] [HIGHER EDUCATION SERVICES OFFICE'S RESPONSIBILITIES.]

Subdivision 1. [ESTABLISH TERMS.] (a) The office shall establish the rules, terms, and conditions for the program, subject to the requirements of sections 136A.90 to 136A.94.

(b) The office shall prescribe the application forms, procedures, and other requirements that apply to the program.

Subd. 2. [ACCOUNTS TYPE PROGRAM.] The office must establish the program and the program must be operated as an accounts type program that permits individuals to save for qualified higher education costs incurred at any institution, regardless of whether it is private or public or whether it is located within or outside of this state. A separate account must be maintained for each beneficiary for whom contributions are made.

Subd. 3. [CONSULTATION WITH STATE BOARD OF INVESTMENT.] In designing and establishing the program's requirements and in negotiating or entering contracts with third parties under subdivision 8, the office shall consult with the executive director.

Subd. 4. [PROGRAM TO COMPLY WITH FEDERAL LAW.] The office shall take steps to ensure that the program meets the requirements for a qualified state tuition program under section 529 of the Internal Revenue Code. The office may request a private letter ruling or rulings from the Internal Revenue Service or take any other steps to ensure that the program qualifies under section 529 of the Internal Revenue Code or other relevant provisions of federal law.

Subd. 5. [MINIMUM PENALTY.] In establishing the terms of the program, the office must provide that refunds of amounts in an account are subject to a minimum penalty, as required by section 529(b)(3) of the Internal Revenue Code. If the refunds or payments are not used for qualified higher education expenses of the designated beneficiary, this penalty must equal, at least, the proportionate amount of any matching grants deposited in the account under section 136A.94 and the investment return on the grants, plus an additional penalty that meets the requirement of federal law.

Subd. 6. [THREE-YEAR PERIOD FOR WITHDRAWAL OF GRANTS.] A matching grant deposited in the account under section 136A.94 may not be withdrawn within three years of the establishment of the account of the beneficiary. In calculating the three-year period, the period held in another account is included, if the account includes a rollover from another account under section 529(c)(3)(C) of the Internal Revenue Code.

Subd. 7. [MARKETING.] The office shall make parents and other interested individuals aware of the availability and advantages of the program as a way to save for higher education costs. The cost of these promotional efforts must be paid entirely from state general fund appropriations and may not be funded with fees imposed on participants.

Subd. 8. [ADMINISTRATION.] The office shall administer the program, including accepting and processing applications, maintaining account records, making payments, making matching grants under section 136A.94, and undertaking any other necessary tasks to administer the program. The office may contract with one or more third parties to carry out some or all of these administrative duties, including promotion and marketing of the program. The office and the board may jointly contract with third-party providers, if the office and board determine that it is desirable to contract with the same entity or entities for administration and investment management.

Subd. 9. [EFFECT ON STUDENT GRANTS.] The first $25,000 of the amount in an account under the program must not be considered in determining the financial aid of an applicant for the state grant program under section 136A.121.

Subd. 10. [AUTHORITY TO IMPOSE FEES.] The office may impose fees on participants in the program to recover the costs of administration. The office must use its best efforts to keep these fees as low as possible, consistent with efficient administration, so that the returns on savings invested in the program will be as high as possible.

Sec. 15. [136A.93] [INVESTMENT OF ACCOUNTS.]

Subdivision 1. [STATE BOARD TO INVEST.] The state board of investment shall invest the money deposited in accounts in the program.


Journal of the House - 39th Day - Top of Page 2080

Subd. 2. [PERMITTED INVESTMENTS.] The board may invest the accounts in any permitted investment under section 11A.24. The legislature intends that each account be invested in a mix of investments that is appropriate to the number of years remaining before the funds will be withdrawn, if this is feasible given the costs and any other relevant factors.

Subd. 3. [CONTRACTING AUTHORITY.] The board may contract with one or more third parties for investment management, recordkeeping, or other services in connection with investing the accounts. The board and office may jointly contract with third-party providers, if the office and board determine that it is desirable to contract with the same entity or entities for administration and investment management.

Subd. 4. [FEES.] The board may impose fees on participants in the program to recover the cost of investment management and related tasks for the program. The board must use its best efforts to keep these fees as low as possible, consistent with high quality investment management, so that the returns on savings invested in the program will be as high as possible.

Sec. 16. [136A.94] [MATCHING GRANTS.]

Subdivision 1. [MATCHING GRANT QUALIFICATION.] By March 1 of each year, a state matching grant must be added to each account established under the program if the following conditions are met:

(1) the contributor applies, in writing in a form prescribed by the office, for a matching grant;

(2) a minimum contribution of $200 was made during the preceding calendar year; and

(3) the contributor did not make, and agrees not to make, a contribution during the year to any higher education trust under chapter 290.

Subd. 2. [AMOUNT OF MATCHING GRANT.] The amount of the matching grant for a beneficiary equals 15 percent of the sum of the contributions made to the beneficiary's account during the calendar year, not to exceed $300.

Subd. 3. [BUDGET LIMIT.] If the amount of matching grants determined under subdivision 2 exceed the amount of the appropriation for the fiscal year, the office shall proportionately reduce each grant so that the total equals the available appropriation.

Subd. 4. [PRIVATE CONTRIBUTIONS.] (a) The office may solicit and accept contributions from private corporations, other businesses, foundations, or individuals to provide:

(1) matching grants under this section in addition to those funded with direct appropriations; or

(2) grants to students who withdraw money from accounts established under the program.

(b) Amounts contributed may only be used for those purposes. Amounts contributed are appropriated to the office to make grants.

(c) Contributors may designate a specific field of study, geographic area, or other criteria that govern use of the grants funded with their contributions, but may not discriminate on the basis of race, ethnicity, or gender. The office may refuse contributions that are subject, in its judgment, to unacceptable conditions on their use.

Sec. 17. Minnesota Statutes 1996, section 181.06, subdivision 2, is amended to read:

Subd. 2. [PAYROLL DEDUCTIONS.] A written contract may be entered into between an employer and an employee wherein the employee authorizes the employer to make payroll deductions for the purpose of paying union dues, premiums of any life insurance, hospitalization and surgical insurance, group accident and health insurance, group term life insurance, group annuities or contributions to credit unions or a community chest fund, a local arts council, a local science council or a local arts and science council, or Minnesota benefit association, a federally or state registered political action committee, or participation in any employee stock purchase plan or savings plan for periods longer than 60 days, including gopher state bonds established under section 16A.645.


Journal of the House - 39th Day - Top of Page 2081

Sec. 18. [REVISOR'S INSTRUCTION.]

The revisor of statutes shall renumber Minnesota Statutes, section 136A.1355, in an appropriate place in Minnesota Statutes, chapter 144.

Sec. 19. [EFFECTIVE DATE.]

Section 5 is effective the day following final enactment. Section 16 is effective January 1, 1998.

ARTICLE 3

OTHER PROVISIONS

Section 1. Minnesota Statutes 1996, section 16A.69, subdivision 2, is amended to read:

Subd. 2. [TRANSFER BETWEEN ACCOUNTS.] Upon the awarding of final contracts for the completion of a project for construction or other permanent improvement, or upon the abandonment of the project, the agency to whom the appropriation was made may transfer the unencumbered balance in the project account to another project enumerated in the same section of that appropriation act. The transfer must be made only to cover bids for the other project that were higher than was estimated when the appropriation for the other project was made and not to cover an expansion of the other project. The money transferred under this section is appropriated for the purposes for which transferred. For transfers for technical colleges by the state board of technical of trustees of the Minnesota state colleges and universities, the total cost of both projects and the required local share for both projects are adjusted accordingly. The agency proposing a transfer shall report to the chair of the senate finance committee and the chair of the house of representatives ways and means committee before the transfer is made under this subdivision.

Sec. 2. [41D.01] [MINNESOTA AGRICULTURE EDUCATION LEADERSHIP COUNCIL.]

Subdivision 1. [ESTABLISHMENT; MEMBERSHIP.] The Minnesota agriculture education leadership council is established. The council is composed of 17 members as follows:

(1) the chair of the senate committee on agriculture and rural development or the chair's designee;

(2) the chair of the house committee on agriculture or the chair's designee;

(3) the ranking minority caucus member of the senate committee on agriculture and rural development or the member's designee;

(4) the ranking minority caucus member of the house agriculture committee or the member's designee;

(5) a member of the senate children, families, and learning committee designated by the chair of the committee;

(6) a member of the house education committee designated by the chair of the committee;

(7) the chair of the University of Minnesota agricultural education program;

(8) the supervisor of secondary agricultural education for the department of children, families, and learning;

(9) the director of management education for the board of trustees of the Minnesota state colleges and universities;

(10) the president and the president-elect of the Minnesota vocational agriculture instructors association;

(11) a representative of the Future Farmers of America Foundation designated by the leadership of the organization;

(12) the commissioner of agriculture or the commissioner's designee;


Journal of the House - 39th Day - Top of Page 2082

(13) a representative of agriculture education appointed by the chair of the senate committee on agriculture and rural development;

(14) a representative of agricultural business appointed by the ranking minority caucus member of the senate committee on agriculture and rural development;

(15) a representative of agriculture education appointed by the chair of the house committee on agriculture; and

(16) a representative of agricultural business appointed by the ranking minority caucus member of the house committee on agriculture.

Subd. 2. [POWERS AND DUTIES.] Specific powers and duties of the council are to:

(1) develop recommendations to the legislature and the governor and provide review for agriculture education programs in Minnesota;

(2) establish a grant program to foster and encourage the development of secondary and post-secondary agriculture education programs;

(3) coordinate and articulate Minnesota's agriculture education policy across all programs and institutions;

(4) identify the critical needs for agriculture educators;

(5) serve as a link between the agribusiness sector and the agriculture education system to communicate mutual concerns, needs, and projections;

(6) establish and maintain an increased awareness of agriculture education and its continued need to all citizens of Minnesota;

(7) operate the Minnesota center for agriculture education created in section 41D.03;

(8) gain broad public support for agriculture education in Minnesota; and

(9) report annually on its activities to the senate agriculture and rural development committee and the house agriculture committee.

Subd. 3. [COUNCIL OFFICERS; TERMS AND COMPENSATION OF APPOINTEES; STAFF.] (a) The chair of the senate agriculture and rural development committee and the chair of the house agriculture committee are the cochairs of the council.

(b) The council's membership terms, compensation, filling of vacancies, and removal of members are as provided in section 15.0575.

(c) The council may employ an executive director and any other staff to carry out its functions.

Subd. 4. [EXPIRATION.] This section expires on June 30, 2002.

Sec. 3. [41D.02] [AGRICULTURE EDUCATION GRANT PROGRAM.]

Subdivision 1. [ESTABLISHMENT.] The Minnesota agriculture education leadership council shall establish a program to provide grants under subdivisions 2 and 3 to educational institutions and other appropriate entities for secondary and post-secondary agriculture education programs.

Subd. 2. [SECONDARY AGRICULTURAL EDUCATION.] The council may provide grants for:

(1) planning and establishment costs for secondary agriculture education programs;


Journal of the House - 39th Day - Top of Page 2083

(2) new instructional and communication technologies; and

(3) curriculum updates.

Subd. 3. [POST-SECONDARY EDUCATION.] The council may provide grants for:

(1) new instructional and communication technologies; and

(2) special project funding, including programming, in-service training, and support staff.

Sec. 4. [41D.03] [MINNESOTA CENTER FOR AGRICULTURE EDUCATION.]

Subdivision 1. [GOVERNANCE.] The Minnesota center for agriculture education is governed by the Minnesota agriculture education leadership council.

Subd. 2. [POWERS AND DUTIES OF COUNCIL.] (a) The council has the powers necessary for the care, management, and control of the Minnesota center for agriculture education and all its real and personal property. The powers shall include, but are not limited to, those listed in this subdivision.

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

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

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

(e) The council may determine the location for the Minnesota center for agriculture education and any additional facilities related to the center, including the authority to lease a temporary facility.

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

Subd. 3. [CENTER ACCOUNT.] There is established in the state treasury a center for agriculture education account in the special revenue fund. All money collected by the council, including rental income, shall be deposited in the account. Money in the account, including interest earned, is appropriated to the council for the operation of its services and programs.

Subd. 4. [EMPLOYEES.] (a) The council shall employ persons who shall serve in the unclassified service.

(b) The employees hired under this subdivision and any other necessary employees hired by the council shall be state employees in the executive branch.

Subd. 5. [POLICIES.] The council may adopt administrative policies about the operation of the center.

Subd. 6. [PUBLIC POST-SECONDARY INSTITUTIONS; PROVIDING SPACE.] Public post-secondary institutions shall provide space for the Minnesota center for agriculture education at a reasonable cost to the center to the extent that space is available at the public post-secondary institutions.

Subd. 7. [PURCHASING INSTRUCTIONAL ITEMS.] Technical educational equipment may be procured for programs of the Minnesota center for agriculture education by the council either by brand designation or in accordance with standards and specifications the council may adopt, notwithstanding chapter 16B.


Journal of the House - 39th Day - Top of Page 2084

Sec. 5. [41D.04] [RESOURCE, MAGNET, AND OUTREACH PROGRAMS.]

Subdivision 1. [RESOURCE AND OUTREACH.] The center shall offer resource and outreach programs and services statewide aimed at the enhancement of agriculture education opportunities for pupils in elementary and secondary school.

Subd. 2. [CENTER RESPONSIBILITIES.] The center shall:

(1) provide information and technical services to agriculture teachers, professional agriculture organizations, school districts, and the department of children, families, and learning;

(2) gather and conduct research in agriculture education;

(3) design and promote agriculture education opportunities for all Minnesota pupils in elementary and secondary schools; and

(4) serve as liaison for the department of children, families, and learning to national organizations for agriculture education.

Sec. 6. Minnesota Statutes 1996, section 125.1385, subdivision 2, is amended to read:

Subd. 2. [COMPENSATION.] State money for faculty exchange programs is to compensate for expenses that are unavoidable and beyond the normal living expenses exchange participants would incur if they were not involved in this exchange. The state university board of trustees of the Minnesota state colleges and universities, the board of regents, or of the University of Minnesota, and their respective campuses, in conjunction with the participating school districts, must control costs for all participants as much as possible, through means such as arranging housing exchanges, providing campus housing, and providing university, state, or school district cars for transportation. The boards and campuses may seek other sources of funding to supplement these appropriations, if necessary.

Sec. 7. Minnesota Statutes 1996, section 126.56, subdivision 2, is amended to read:

Subd. 2. [ELIGIBLE STUDENT.] To be eligible for a scholarship, a student shall:

(1) be a United States citizen or permanent resident of the United States;

(2) be a resident of Minnesota;

(3) attend an eligible program;

(4) have completed at least one year of secondary school but not have graduated from high school;

(5) have earned at least a B average or its equivalent during the semester or quarter prior to application, or have earned at least a B average or its equivalent during the semester or quarter prior to application in the academic subject area applicable to the summer program the student wishes to attend; and

(6) demonstrate need for financial assistance; and

(7) be 19 years of age or younger.

Sec. 8. Minnesota Statutes 1996, section 126.56, subdivision 4a, is amended to read:

Subd. 4a. [ELIGIBLE PROGRAMS.] A scholarship may be used only for an eligible program. To be eligible, a program must:

(1) provide, as its primary purpose, academic instruction for student enrichment in curricular areas including, but not limited to, communications, humanities, social studies, social science, science, mathematics, art, or foreign languages;

(2) not be offered for credit to post-secondary students;


Journal of the House - 39th Day - Top of Page 2085

(3) not provide remedial instruction;

(4) meet any other program requirements established by the state board of education and the higher education services office; and

(5) be approved by the commissioner higher education services office.

Sec. 9. Minnesota Statutes 1996, section 126.56, subdivision 7, is amended to read:

Subd. 7. [ADMINISTRATION.] The higher education services office and commissioner shall determine the time and manner for scholarship applications, awards, and program approval.

Sec. 10. Minnesota Statutes 1996, section 135A.052, subdivision 1, is amended to read:

Subdivision 1. [STATEMENT OF MISSIONS.] The legislature recognizes each type of public post-secondary system institution to have a distinctive mission within the overall provision of public higher education in the state and a responsibility to cooperate with the each other systems. These missions are as follows:

(1) the technical college system colleges shall offer vocational training and education to prepare students for skilled occupations that do not require a baccalaureate degree;

(2) the community college system colleges shall offer lower division instruction in academic programs, occupational programs in which all credits earned will be accepted for transfer to a baccalaureate degree in the same field of study, and remedial studies, for students transferring to baccalaureate institutions and for those seeking associate degrees;

(3) consolidated community technical colleges shall offer the same types of instruction, programs, certificates, diplomas, and degrees as the technical colleges and community colleges offer;

(4) the state university system universities shall offer undergraduate and graduate instruction through the master's degree, including specialist certificates, in the liberal arts and sciences and professional education; and

(4) (5) the University of Minnesota shall offer undergraduate, graduate, and professional instruction through the doctoral degree, and shall be the primary state supported academic agency for research and extension services.

It is part of the mission of each system that within the system's resources the system's governing board and chancellor or president shall endeavor to:

(a) prevent the waste or unnecessary spending of public money;

(b) use innovative fiscal and human resource practices to manage the state's resources and operate the system as efficiently as possible;

(c) coordinate the system's activities wherever appropriate with the activities of other systems and governmental agencies;

(d) use technology where appropriate to increase system productivity, improve customer service, increase public access to information about the system, and increase public participation in the business of the system;

(e) utilize constructive and cooperative labor-management practices to the extent otherwise required by chapters 43A and 179A; and

(f) recommend to the legislature appropriate changes in law necessary to carry out the mission of the system.

Sec. 11. Minnesota Statutes 1996, section 136A.03, is amended to read:

136A.03 [EXECUTIVE OFFICERS; EMPLOYEES.]

The director of the higher education services office shall possess the powers and perform the duties as prescribed by the higher education services council and shall serve in the unclassified service of the state civil service. The director, or the director's designated representative, on behalf of the office is authorized to sign contracts and execute all instruments


Journal of the House - 39th Day - Top of Page 2086

necessary or appropriate to carry out the purposes of sections 136A.01 to 136A.178 for the office. The salary of the director shall be established by the higher education services council according to section 15A.081, subdivision 1. The director shall be a person qualified by training or experience in the field of higher education or in financial aid administration. The director may appoint other professional employees who shall serve in the unclassified service of the state civil service. All other employees shall be in the classified civil service.

An officer or professional employee in the unclassified service as provided in this section is a person who has studied higher education or a related field at the graduate level or has similar experience and who is qualified for a career in financial aid and other aspects of higher education and for activities in keeping with the planning and administrative responsibilities of the office and who is appointed to assume responsibility for administration of educational programs or research in matters of higher education.

Sec. 12. Minnesota Statutes 1996, section 136A.16, subdivision 8, is amended to read:

Subd. 8. Money made available to the office that is not immediately needed for the purposes of sections 136A.15 to 136A.1702 may be invested by the office. The money must be invested in bonds, certificates of indebtedness, and other fixed income securities, except preferred stocks, which are legal investments for the permanent school fund. The money may also be invested in prime quality commercial paper that is eligible for investment in the state employees retirement fund. All interest and profits from such investments inure to the benefit of the office or may be pledged for security of bonds issued by the office or its predecessor, the Minnesota higher education coordinating board.

Sec. 13. Minnesota Statutes 1996, section 136A.16, is amended by adding a subdivision to read:

Subd. 14. The office may sell at public or private sale, at the price or prices determined by the office, any note or other instrument or obligation evidencing or securing a loan made by the office or its predecessor, the Minnesota higher education coordinating board.

Sec. 14. Minnesota Statutes 1996, section 136A.16, is amended by adding a subdivision to read:

Subd. 15. The office may obtain municipal bond insurance, letters of credit, surety obligations, or similar agreements from financial institutions.

Sec. 15. Minnesota Statutes 1996, section 136A.171, is amended to read:

136A.171 [REVENUE BONDS; ISSUANCE; PROCEEDS.]

The higher education services office may issue revenue bonds to obtain funds for loans made in accordance with the provisions of this chapter. The aggregate amount of revenue bonds, issued directly by the office, outstanding at any one time, not including refunded bonds or otherwise defeased or discharged bonds, shall not exceed $550,000,000. Proceeds from the issuance of bonds may be held and invested by the office pending disbursement in the form of loans. All interest and profits from the investments shall inure to the benefit of the office and shall be available to the board office for the same purposes as the proceeds from the sale of revenue bonds including, but not limited to, costs incurred in administering loans under this chapter and loan reserve funds.

Sec. 16. Minnesota Statutes 1996, section 136A.173, subdivision 3, is amended to read:

Subd. 3. The revenue bonds may be issued as serial bonds or as term bonds, or the office, in its discretion, may issue bonds of both types. The revenue bonds shall be authorized by resolution of the members director of the office and shall bear such date or dates, mature at such time or times, not exceeding 50 years from their respective dates, bear interest at such rate or rates, payable at such time or times, be in denominations, be in such form, either coupon or registered, carry such registration privileges, be executed in such manner, be payable in lawful money of the United States of America at such place or places, and be subject to such terms of redemption, as such resolution or resolutions may provide. The revenue bonds or notes may be sold at public or private sale for such price or prices as the office shall determine. Pending preparation of the definitive bonds, the office may issue interim receipts or certificates which shall be exchanged for such definite bonds.


Journal of the House - 39th Day - Top of Page 2087

Sec. 17. Minnesota Statutes 1996, section 136A.29, subdivision 9, is amended to read:

Subd. 9. The authority is authorized and empowered to issue revenue bonds whose aggregate principal amount at any time shall not exceed $350,000,000 $500,000,000 and to issue notes, bond anticipation notes, and revenue refunding bonds of the authority under the provisions of sections 136A.25 to 136A.42, to provide funds for acquiring, constructing, reconstructing, enlarging, remodeling, renovating, improving, furnishing, or equipping one or more projects or parts thereof.

Sec. 18. Minnesota Statutes 1996, section 136F.28, subdivision 2, is amended to read:

Subd. 2. [DEFINITIONS.] For the purpose of this section, the following terms have the meaning given to them:

(a) "Southwest Asia veteran" means a person who:

(1) served in the active military service in any branch of the armed forces of the United States any time between August 1, 1990, and February 27, 1992;

(2) became eligible for the Southwest Asia Service Medal as a result of the service;

(3) was a Minnesota resident at the time of induction into the armed forces and for the one year immediately preceding induction; and

(4) has been separated or discharged from active military service under conditions other than dishonorable.

(b) "Technical college" means a technical college or consolidated community technical college under the governance of the Minnesota state colleges and universities.

Sec. 19. Minnesota Statutes 1996, section 136F.30, is amended to read:

136F.30 [COURSES AND PROGRAMS.]

The board shall review and approve or disapprove campus proposals for adding, deleting, or substantially changing programs of study, including graduate and undergraduate academic programs, training in professional, semiprofessional, and technical fields, and adult education. The board shall avoid duplicate program offerings. The board may initiate activities to close programs. If a decision is made to eliminate a program, a college or university shall notify students and assist them in completing the program or in transferring to a similar program at another campus. The board shall place a high priority on ensuring the transferability of credit.

Sec. 20. Minnesota Statutes 1996, section 136F.32, is amended to read:

136F.32 [DEGREES; DIPLOMAS; CERTIFICATES.]

Subdivision 1. [APPROVAL.] The board may approve awarding of appropriate certificates, diplomas, or degrees to persons who complete a prescribed curriculum.

Subd. 2. [TECHNICAL AND CONSOLIDATED TECHNICAL COLLEGES.] A technical college or consolidated technical community college shall offer students the option of pursuing diplomas and certificates in each technical education program, unless the board determines that this is not practicable for certain programs. All credits earned for the diploma or certificate shall be applicable toward any available degree in the same program.

Sec. 21. Minnesota Statutes 1996, section 136F.49, is amended to read:

136F.49 [LICENSURE.]

The board may shall adopt policies for licensure of teaching personnel in technical colleges and for vocational technical instructors teaching outside the Minnesota state colleges and universities system. The board may establish a processing fee for the issuance, renewal, or extension of a license.


Journal of the House - 39th Day - Top of Page 2088

Sec. 22. Minnesota Statutes 1996, section 136F.52, is amended by adding a subdivision to read:

Subd. 1a. [PROGRAM ADVISORY COMMITTEES.] Technical and consolidated colleges may have advisory committees for each technical program. The advisory committee shall be comprised of representatives of relevant businesses, community members, faculty, and students. The advisory committees shall review and make recommendations to the college and the board on proposals to reduce, substantially change, or eliminate programs.

Sec. 23. Minnesota Statutes 1996, section 136F.581, subdivision 2, is amended to read:

Subd. 2. [POLICIES AND PROCEDURES.] The board shall develop policies, and each college and university shall develop procedures, for purchases and contracts that are consistent with subdivision 1. The policies and procedures shall be developed through the system and campus labor management committees and shall include provisions requiring the system and campuses to determine that they cannot use available staff before contracting with additional outside consultants or services. In addition, each college and university, in consultation with the system office, shall develop procedures for those purchases and contracts that can be accomplished by a college and university without board approval. The board policies must allow each college and university the local authority to enter into contracts for construction projects of up to $250,000 and to make other purchases of up to $50,000, without receiving board approval. The board may allow a college or university local authority to make purchases over $50,000 without receiving board approval.

Sec. 24. Minnesota Statutes 1996, section 136F.80, is amended to read:

136F.80 [GRANTS; GIFTS; BEQUESTS; DEVISES; ENDOWMENTS.]

Subdivision 1. [RECEIPT AND ACCEPTANCE.] The board may apply for, receive, and accept on behalf of the state and for the benefit of any state college or university any grant, gift, bequest, devise, or endowment that any person, firm, corporation, foundation, association, or government agency may make to the board for the purposes of the state colleges and universities. The board may use any money given to it or to any of the state colleges and universities consistent with the terms and conditions under which the money was received and for the purposes stated. All moneys received are appropriated to the board for use in the colleges and universities. These moneys shall not be taken into account in determining appropriations or allocations and are not subject to the provisions of chapter 16A. All taxes and special assessments constituting a lien on any real property received and accepted by the board under this section shall be paid in full before title is transferred to the state.

Subd. 2. [DEPOSIT OF MONEY.] The board shall provide by policy, in accordance with provisions of chapter 118 118A, for the deposit of all money received or referred to under this section. Whenever the board shall by resolution determine that there are moneys in the state college or university funds not currently needed, the board may by resolution authorize and direct the president of the college or university to invest a specified amount in securities as are duly authorized as legal investments for savings banks and trust companies. Securities so purchased shall be deposited and held for the board by any bank or trust company authorized to do a banking business in this state. Notwithstanding the provisions of chapter 118 118A, the state board of investment may invest assets of the board, colleges, and universities when requested by the board, college, or university.

Sec. 25. [136F.81] [TRANSFER OF GIFTS.]

A college or university that receives a gift or bequest that is intended for purposes performed by the institution's foundation may transfer the money to its foundation.

Sec. 26. Minnesota Statutes 1996, section 137.022, subdivision 2, is amended to read:

Subd. 2. [INCOME.] The All income from the permanent university fund is appropriated annually to the board of regents. Authority over this income is vested solely in the board but must be used by the board directly to enhance the mission of the university. This appropriation of income must not be used to reduce other appropriations made to the board of regents. The determination of this income shall be based on the procedures detailed in section 11A.16, subdivision 5, or 11A.12, subdivision 2.


Journal of the House - 39th Day - Top of Page 2089

Sec. 27. Minnesota Statutes 1996, section 216C.27, subdivision 7, is amended to read:

Subd. 7. [BUILDING EVALUATORS.] The commissioner shall certify evaluators in each county of the state who are qualified to determine the compliance of a residence with applicable energy efficiency standards. The commissioner shall, by rule pursuant to chapter 14, adopt standards for the certification and performance of evaluators and set a fee for the certification of evaluators which is sufficient to cover the ongoing costs of the program once it is established. The commissioner shall encourage the certification of existing groups of trained municipal personnel and qualified individuals from community-based organizations and public service organizations. Each certified evaluator shall, on request of the owner, inspect any residence and report the degree to which it complies with applicable energy efficiency standards established pursuant to subdivision 1. The inspections shall be made within 30 days of the request. The commissioner shall enter into an agreement with the department of children, families, and learning board of trustees of the Minnesota state colleges and universities for the provision of evaluator training through at institutions that offer the technical colleges training. The commissioner may contract with the technical colleges board to reduce the training costs to the students. The commissioner may eliminate the examination fee for persons seeking upgraded certificates. The commissioner may also establish requirements for continuing education, periodic recertification, and revocation of certification for evaluators.

Sec. 28. Minnesota Statutes 1996, section 583.22, subdivision 5, is amended to read:

Subd. 5. [DIRECTOR.] "Director" means the director of the agricultural extension service conflict and change center at the University of Minnesota's Humphrey Institute or the director's designee.

Sec. 29. Laws 1986, chapter 398, article 1, section 18, as amended by Laws 1987, chapter 292, section 37; Laws 1989, chapter 350, article 16, section 8; Laws 1990, chapter 525, section 1; Laws 1991, chapter 208, section 2; Laws 1993, First Special Session chapter 2, article 6, section 2; and Laws 1995, chapter 212, article 2, section 11, is amended to read:

Sec. 18. [REPEALER.]

Sections 1 to 17 and Minnesota Statutes, section 336.9-501, subsections (6) and (7), and sections 583.284, 583.285, 583.286, and 583.305, are repealed on July 1, 1997 1998.

Sec. 30. Laws 1995, chapter 212, article 1, section 4, subdivision 4, is amended to read:

Subd. 4. Specials Transfer

The appropriation in subdivision 3, paragraph (b), for Medical Research, Special Hospitals Service and Educational Offset, and the Institute for Human Genetics; and in paragraph (c) for the Underground Space Center, Microelectronics and Information Science Center, and the Center for Advanced Manufacturing, Design, and Control; and in paragraph (d) for the Fellowships for Minority and Disadvantaged Students, Intercollegiate Athletics, Sea Grant College Program, Biological Process Technology Institute, and the Supercomputer Institute shall be merged with the operation and maintenance funding in subdivision 2, effective June 30, 1997.

Sec. 31. Laws 1996, chapter 463, section 2, subdivision 6, is amended to read:

Subd. 6. Anoka Ramsey Community College

(a) Addition and Remodeling 10,430,000

Design, construct, furnish, and equip an addition and remodel existing space to provide classrooms, a learning resource center, computer labs, a developmental learning center, science labs, nursing and student services facilities, offices, and a campus center, and food service. The college may use up to $900,000 from auxiliary enterprise funds for this project.


Journal of the House - 39th Day - Top of Page 2090

(b) Design and construct a replacement energy plant and service elevator 4,510,000

Sec. 32. [BOARD AUTHORITY TO PURCHASE, SELL, TRANSFER, LEASE, AND CONVEY CERTAIN LAND AND IMPROVEMENTS.]

Subdivision 1. [AUTHORITY.] The board of trustees may purchase, sell, transfer, lease, and convey land and improvements described in this section, and may retain all proceeds from the sale or lease of real estate under Minnesota Statutes, section 136F.71. The provisions of Minnesota Statutes, sections 94.09 to 94.16 and 103F.535, do not apply to real estate transactions authorized by this section.

Subd. 2. [ST. CLOUD.] The board of trustees may purchase fee title from the Central Minnesota Council of Boy Scouts, Inc., of approximately 1.4 acres of land that includes an office building and that is contiguous to St. Cloud Technical College for college operations.

Subd. 3. [INVER HILLS; NORMANDALE LAND TRANSFERS.] (a) The board of trustees may transfer fee title to approximately eight acres of state-owned real estate operated by Inver Hills Community College to the city of Inver Grove Heights. The purpose of the transfer is to provide land for the construction of a community library at no cost to the state, the board, or Inver Hills Community College. In the event that the property is no longer used for public purposes, title to the land shall revert to the state. The transfer is contingent on the board of trustees acquiring fee title to approximately eight acres of real estate owned by the city of Inver Grove Heights, adjacent to Inver Hills Community College, for college operations.

(b) The board of trustees may transfer fee title to approximately 12 acres of state-owned real estate that comprises Normandale Community College's athletic fields to the city of Bloomington. In the event that the property is no longer used for public purposes, title to the land shall revert to the state. The transfer is contingent on the board acquiring fee title to approximately 12 acres of real estate owned by the city of Bloomington, which is in the vicinity of Normandale Community College, for college operations. The land must remain undeveloped. The transfer must include provisions to allow the college continued use of the fields.

Subd. 4. [WINONA, JACKSON, MAHTOMEDI PROPERTY SALE.] (a) The board of trustees may sell the state's interest in an aviation hangar and related land operated by the Winona campus of Winona-Red Wing Technical College for no less than the assessed value of the property. The sale may be by public auction, sealed bid, listing with a real estate broker licensed under Minnesota Statutes, chapter 82, or other means selected by the board of trustees.

(b) The board of trustees may sell a former armory building operated by the Jackson campus of Minnesota West Community and Technical College for no less than the assessed value of the property. The sale may be by public auction, sealed bid, listing with a real estate broker licensed under Minnesota Statutes, chapter 82, or other means selected by the board of trustees.

(c) The board of trustees may sell for $1 approximately four acres of state-owned real estate operated by Century Community and Technical College to the city of Mahtomedi for construction of an ice arena. In the event that the property is no longer used for city recreational purposes, title to the land shall revert to the state.

Subd. 5. [MINNEAPOLIS TRANSFER.] Notwithstanding the provisions of Minnesota Statutes, chapter 94, or any other state law, if the board of trustees of the Minnesota state colleges and universities system or the school board of special school district No. 1, Minneapolis, ceases to use its portion of the real property along Second Avenue North adjacent to Bassett's creek in Minneapolis known as the transportation center for a purpose related to normal, authorized board functions or activities, or if the board of trustees or the school board wishes to permanently abandon, sell, or lease or otherwise transfer the control of a material part of its portion of the real property, the board of trustees must offer to convey its portion of the property to the school board for $1 or the school board must offer to convey its portion of the property to the board of trustees for $1. The board of trustees and the school board are each authorized to convey their portion of the property upon timely acceptance of such offer. An offer extended shall become void if not accepted in writing within 60 days of issuance.

Subd. 6. [MANKATO STATE.] The board of trustees of the Minnesota state colleges and universities may accept money from the Mankato State University Foundation to construct a black box theater on the Mankato State University campus. The board shall supervise the construction as provided in Minnesota Statutes, section 136F.64.


Journal of the House - 39th Day - Top of Page 2091

Subd. 7. [ST. CLOUD STATE UNIVERSITY.] The board of trustees of the Minnesota state colleges and universities may build a bus stop structure with some retail services on the campus of St. Cloud State University. It is intended that no appropriation for this specific purpose is needed or obligated by this authorization. An operating agreement may be executed for a period of five to 25 years subject to the requirements of Minnesota Statutes, section 16B.24, subdivision 5.

Sec. 33. [DISTINGUISHED SERVICE PROFESSOR.]

Notwithstanding any law to the contrary, an appointment made by the state university board to the position of distinguished service professor in effect on June 30, 1995, and the terms and conditions of the appointment, remain in effect until terminated by the distinguished service professor appointee or the appointee is terminated for cause. For the purposes of this section, distinguished service professor has the same meaning as distinguished senior fellow.

Sec. 34. [INSTRUCTION TO REVISOR.]

The revisor of statutes shall change the phrases "state board of technical colleges," "state board for vocational technical education," "state board for community colleges," and "state university board," or similar, to "board of trustees of the Minnesota state colleges and universities" in Minnesota Statutes, sections 3.754; 16A.662, subdivision 5; 352.01, subdivision 2b; and 354.66, subdivision 1a.

Sec. 35. [REPEALER.]

Minnesota Statutes 1996, sections 126.113; and 137.41; Laws 1995, chapter 212, article 4, section 34; and Laws 1995, First Special Session chapter 2, article 1, sections 35 and 36, are repealed.

ARTICLE 4

PRIVATE CAREER SCHOOLS

Section 1. Minnesota Statutes 1996, section 141.21, subdivision 3, is amended to read:

Subd. 3. [SOLICITOR.] "Solicitor" means a person who for a salary or for commission, acts as an agent, independent contractor, salesperson, or counselor in procuring or attempting to procure recruiting students or enrollees for a course of instruction by solicitation in program using any form made method, at any place except on the actual business premises of the school and except for rendering, other than only providing public information service at the invitation or permission of a school or educational organization.

Sec. 2. Minnesota Statutes 1996, section 141.21, subdivision 5, is amended to read:

Subd. 5. [SCHOOL.] "School" means any person, within or without outside the state, that who maintains, advertises, solicits, or conducts any course of instruction program for profit or for a tuition charge at any level other than baccalaureate or graduate programs, and which is not specifically exempted by the provisions of sections 141.21 to 141.36 141.35.

Sec. 3. Minnesota Statutes 1996, section 141.21, subdivision 6, is amended to read:

Subd. 6. [COURSE OF INSTRUCTION.] "Course of instruction" means any classroom, correspondence, or extension course of instruction; any subunit of a program; or any combination thereof.

Sec. 4. Minnesota Statutes 1996, section 141.21, is amended by adding a subdivision to read:

Subd. 8. [PROGRAM.] "Program" means any course or grouping of courses that is advertised or listed in a school's catalog, brochures, or other publications, or for which the school grants a formal recognition.

Sec. 5. Minnesota Statutes 1996, section 141.21, is amended by adding a subdivision to read:

Subd. 9. [DISTANCE EDUCATION SCHOOL.] "Distance education school" means a school that establishes, keeps, or maintains a facility or location where a program is offered through correspondence, telecommunication, or electronic media.


Journal of the House - 39th Day - Top of Page 2092

Sec. 6. Minnesota Statutes 1996, section 141.22, is amended to read:

141.22 [CITATION.]

Sections 141.21 to 141.36 141.35 may be cited as the Private business, trade and correspondence Career School Act.

Sec. 7. Minnesota Statutes 1996, section 141.25, subdivision 1, is amended to read:

Subdivision 1. [REQUIRED.] No school shall maintain, advertise, solicit for, or conduct any course of instruction program in Minnesota without first obtaining a license from the office.

Sec. 8. Minnesota Statutes 1996, section 141.25, subdivision 2, is amended to read:

Subd. 2. [CONTRACT UNENFORCEABLE.] Any contract entered into with any person for a course of instruction program after November 15, 1969, by or on behalf of any person operating any school to which a license has not been issued pursuant to under sections 141.21 to 141.36 141.35, shall be unenforceable in any action brought thereon.

Sec. 9. Minnesota Statutes 1996, section 141.25, subdivision 3, is amended to read:

Subd. 3. [APPLICATION.] Application for a license shall be on forms prepared and furnished by the office, and shall contain the following and such other information as the office may require:

(a) (1) the title or name of the school, together with ownership and controlling officers, members, managing employees, and director;

(b) (2) the specific fields of instruction programs which will be offered and the specific purposes of such the instruction;

(c) (3) the place or places where such the instruction will be given;

(d) (4) a listing of the equipment available for instruction in each course of instruction program;

(e) (5) the maximum enrollment to be accommodated with equipment available in each specified course of instruction program;

(f) (6) the qualifications of instructors and supervisors in each specified course of instruction program;

(g) (7) a current balance sheet, income statement, and adequate supporting documentation, prepared and certified by an independent public accountant or CPA;

(h) (8) copies of all media advertising and promotional literature and brochures currently used or reasonably expected to be used by such the school;

(i) (9) copies of all Minnesota enrollment agreement forms and contract forms and all enrollment agreement forms and contract forms used in Minnesota; and

(10) gross income earned in the preceding year from student tuition, fees, and other required institutional charges, unless the school files with the office a surety bond equal to at least $50,000 as described in subdivision 5.

Sec. 10. Minnesota Statutes 1996, section 141.25, subdivision 5, is amended to read:

Subd. 5. [BOND.] (a) No license shall be issued to any school which maintains, conducts, solicits for, or advertises within the state of Minnesota any course of instruction program, unless the applicant files with the office a continuous corporate surety bond in the sum of $10,000 written by a company authorized to do business in Minnesota conditioned upon the faithful performance of all contracts and agreements with students made by the applicant. Such


Journal of the House - 39th Day - Top of Page 2093

(b) The amount of the surety bond shall be ten percent of the preceding year's gross income from student tuition, fees, and other required institutional charges, but in no event less than $10,000 nor greater than $50,000, except that a school may deposit a greater amount at its own discretion. A school in each annual application for licensure must compute the amount of the surety bond and verify that the amount of the surety bond complies with this subdivision, unless the school maintains a surety bond equal to at least $50,000. A school that operates at two or more locations may combine gross income from student tuition, fees, and other required institutional charges for all locations for the purpose of determining the annual surety bond requirement. The gross tuition and fees used to determine the amount of the surety bond required for a school having a license for the sole purpose of recruiting students in Minnesota shall be only that paid to the school by the students recruited from Minnesota.

(c) The bond shall run to the state of Minnesota and to any person who may have a cause of action against the applicant arising at any time after the bond is filed and before it is canceled for breach of any contract or agreement made by the applicant with any student. The aggregate liability of the surety for all breaches of the conditions of the bond shall not exceed the principal sum of $10,000 deposited by the school under paragraph (b). The surety of any such bond may cancel it upon giving 60 days notice in writing to the office and shall be relieved of liability for any breach of condition occurring after the effective date of cancellation.

(d) In lieu of bond, the applicant may deposit with the state treasurer the a sum of $10,000 equal to the amount of the required surety bond in cash, or securities such as may be legally purchased by savings banks or for trust funds in an aggregate market value of $10,000 equal to the amount of the required surety bond.

(e) Failure of a school to post and maintain the required surety bond or deposit under paragraph (d) may result in denial, suspension, or revocation of the school's license.

Sec. 11. Minnesota Statutes 1996, section 141.25, subdivision 6, is amended to read:

Subd. 6. [RESIDENT AGENT.] Schools domiciled located outside the state of Minnesota which that offer, advertise, solicit for, or conduct any course of instruction program within the state of Minnesota shall first file with the secretary of state a sworn statement designating a resident agent authorized to receive service of process. Such The statement shall designate the secretary of state as resident agent for service of process in the absence of an agent otherwise so designated. In the event a school fails to file such the statement, the secretary of state is hereby designated as the resident agent authorized to receive service of process. Such The authorization shall be irrevocable as to causes of action arising out of transactions occurring prior to the filing of written notice of withdrawal from the state of Minnesota filed with the secretary of state.

Sec. 12. Minnesota Statutes 1996, section 141.25, subdivision 7, is amended to read:

Subd. 7. [MINIMUM STANDARDS.] No license shall be issued unless the office first determines:

(a) (1) that the applicant has a sound financial condition with sufficient resources available to meet the school's financial obligations; to refund all tuition and other charges, within a reasonable period of time, in the event of dissolution of the school or in the event of any justifiable claims for refund against the school by the student body; to provide adequate service to its students and prospective students; and for the proper use and support of the school to be maintained;

(b) (2) that the applicant has satisfactory training facilities with sufficient tools and equipment and the necessary number of work stations to train prepare adequately the students currently enrolled, and those proposed to be enrolled;

(c) (3) that the applicant employs a sufficient number of qualified instructors trained by experience and education teaching personnel to give provide the training educational programs contemplated;

(d) (4) that the school has an organizational framework with administrative and instructional personnel to provide the programs and services it intends to offer;

(5) that the premises and conditions under which the students work and study are sanitary, healthful, and safe, according to modern standards;


Journal of the House - 39th Day - Top of Page 2094

(e) (6) that each occupational course or program of instruction or study shall be of such the quality and content as to provide education and training preparation which will adequately prepare enrolled students for entry level positions in the occupation for which trained prepared;

(f) (7) that the living quarters which are owned, maintained, or approved by the applicant for students are sanitary and safe;

(g) (8) that the contract or enrollment agreement used by the school complies with the following provisions: in section 141.265;

(1) the name and address of the school must be clearly stated;

(2) inclusion of a clear and conspicuous disclosure that such agreement becomes a legally binding instrument upon written acceptance of the student by the school unless canceled pursuant to section 141.271;

(3) must contain the school's cancellation and refund policy which shall be clearly and conspicuously entitled, "Buyer's Right to Cancel";

(4) the total cost of the course including tuition and all other charges shall be clearly stated;

(5) the name and description of the course, including the number of hours or credits of classroom instruction and/or home study lessons shall be included;

(6) no contract or agreement shall (9) that contracts and agreements do not contain a wage assignment provision and/or or a confession of judgment clause; and

(7) each contract or enrollment agreement shall contain a clear and conspicuous explanation of the form and means of notice the student should use in the event the student elects to cancel the contract or sale, the effective date of cancellation, and the name and address of the seller to which the notice should be sent or delivered; and

(h) (10) that there has been no adjudication of fraud or misrepresentation in any criminal, civil, or administrative proceeding in any jurisdiction against the school or its owner, officers, agents, or sponsoring organization.

Sec. 13. Minnesota Statutes 1996, section 141.25, subdivision 8, is amended to read:

Subd. 8. [FEES AND TERMS OF LICENSE.] (a) Applications for initial license under sections 141.21 to 141.36 141.35 shall be accompanied by a nonrefundable application fee established by the office that is sufficient to recover, but not exceed, its administrative costs.

(b) All licenses shall expire one year from the date issued by the office. Each renewal application shall be accompanied by a nonrefundable renewal fee established by the office that is sufficient to recover, but does not exceed, its administrative costs.

(c) Application for renewal of license shall be made at least 30 days before the expiration of the school's current license. Each renewal form shall be supplied by the office. It shall not be necessary for an applicant to supply all information required in the initial application at the time of renewal unless requested by the office.

Sec. 14. Minnesota Statutes 1996, section 141.25, subdivision 9, is amended to read:

Subd. 9. [CATALOG OR BROCHURE.] Before a license is issued to a school, other than one which offers exclusively a correspondence course of instruction, the school shall furnish to the office a catalog or brochure containing the following:

(1) identifying data, such as volume number and date of publication;

(2) name and address of the school and its governing body and officials;


Journal of the House - 39th Day - Top of Page 2095

(3) a calendar of the school showing legal holidays, beginning and ending dates of each course quarter, term, or semester, and other important dates;

(4) school policy and regulations on enrollment including dates and specific entrance requirements for each course program;

(5) school policy and regulations about leave, absences, class cuts, make-up work, tardiness, and interruptions for unsatisfactory attendance;

(6) school policy and regulations about standards of progress for the student including the grading system of the school, the minimum grades considered satisfactory, conditions for interruption for unsatisfactory grades or progress, a description of any probationary period allowed by the school, and conditions of reentrance for those dismissed for unsatisfactory progress;

(7) school policy and regulations about student conduct and conditions for dismissal for unsatisfactory conduct;

(8) detailed schedule of fees, charges for tuition, books, supplies, tools, student activities, laboratory fees, service charges, rentals, deposits, and all other charges;

(9) policy and regulations, including an explanation of section 141.271, about refunding tuition, fees, and other charges if the student does not enter the course program, withdraws from the program, or the program is discontinued;

(10) a description of the available facilities and equipment;

(11) a course outline for each course offered showing course objectives, subjects or units in the course, type of work or skill to be learned, and approximate time, hours, or credits to be spent on each subject or unit; and

(12) policy and regulations about granting credit for previous education and training preparation;

(13) a procedure for investigating and resolving student complaints; and

(14) the name and address of the Minnesota higher education services office.

A school exclusively offering a correspondence program is exempt from clauses (3) and (5).

Sec. 15. Minnesota Statutes 1996, section 141.25, subdivision 10, is amended to read:

Subd. 10. [PLACEMENT RECORDS.] (a) Before a license is issued to a school that offers, advertises or implies a placement service, the school shall file with the office for the past year and thereafter at reasonable intervals determined by the office, a certified copy of the school's placement record, containing a list of graduates, a description of their job, name of their employer, and other information as the office may prescribe.

(b) Each school that offers a placement service shall furnish to each prospective student, prior to enrollment, written information concerning the percentage of the previous year's graduates who were placed in the occupation for which trained prepared or in related employment.

Sec. 16. Minnesota Statutes 1996, section 141.25, subdivision 12, is amended to read:

Subd. 12. [PERMANENT RECORDS.] Before a license is issued to a school, Each school licensed under this chapter and located in Minnesota shall maintain a permanent records record for all students enrolled at any time each student for 50 years from the last date of the student's attendance. Each school licensed under this chapter and offering a correspondence course of instruction program to a student located in Minnesota shall maintain a permanent records record for each


Journal of the House - 39th Day - Top of Page 2096

Minnesota students enrolled at any time student for 50 years from the last date of the student's attendance. Records include school transcripts, documents, and files containing student data about academic credits earned, courses completed, grades awarded, degrees awarded, and periods of attendance. To preserve permanent records, a school shall submit a plan that meets the following requirements:

(a) (1) at least one copy of the records must be held in a secure depository;

(b) (2) an appropriate official must be designated to provide a student with copies of records or a transcript upon request;

(c) (3) an alternative method of complying with paragraphs (a) and (b) clauses (1) and (2) must be established if the school ceases to exist; and

(d) (4) a continuous surety bond must be filed with the office in an amount not to exceed $20,000 if the school has no binding agreement for preserving student records or a trust must be arranged if the school ceases to exist.

Sec. 17. [141.251] [LICENSE RENEWAL.]

Subdivision 1. [CONDITIONS.] The office shall establish by rule different conditions for renewal of licenses based on the record of the school. The conditions shall permit renewals based on relaxed standards of scrutiny for schools that have demonstrated the quality of their programs and their operations through longevity and performance. The office shall specify minimum longevity standards and performance indicators that must be met before a school may be permitted to operate under these standards.

Subd. 2. [APPLICATION.] Application for renewal of licenses must be made at least 30 days before expiration of the current license on a form supplied by the office. Each renewal application shall be accompanied by a nonrefundable fee established by the office that is sufficient to recover, but does not exceed, its administrative costs.

Sec. 18. Minnesota Statutes 1996, section 141.26, subdivision 2, is amended to read:

Subd. 2. [APPLICATION FOR PERMIT.] (a) The application for the permit shall state the full name, address, previous employment, and such other information concerning the solicitor applicant as the office may require.

(b) The application shall have attached to it a certified affidavit signed by a school official and the solicitor attesting to the fact that the applicant has been furnished a copy, has read and has knowledge of the provisions of this chapter and Minnesota Rules, parts 3530.6500 to 3530.7800.

Sec. 19. [141.265] [INFORMATION TO STUDENTS.]

Subdivision 1. [CATALOG.] A school or its agent shall deliver the catalog or brochure required in section 141.25, subdivision 9, to each prospective student in a time or manner that provides the prospective student ample opportunity to read the catalog or brochure before signing any contract or enrollment agreement or before being accepted by a school that does not use a written contract or enrollment agreement.

Subd. 2. [CONTRACT INFORMATION.] A contract or enrollment agreement used by a school must include at least the following:

(1) the name and address of the school, clearly stated;

(2) a clear and conspicuous disclosure that the agreement becomes a legally binding instrument upon written acceptance of the student by the school unless canceled under section 141.271;

(3) the school's cancellation and refund policy which shall be clearly and conspicuously entitled "Buyer's Right to Cancel";

(4) the total cost of the program including tuition and all other charges shall be clearly stated;


Journal of the House - 39th Day - Top of Page 2097

(5) the name and description of the program, including the number of hours or credits of classroom instruction, correspondence lessons, or both that shall be included; and

(6) a clear and conspicuous explanation of the form and means of notice the student should use in the event the student elects to cancel the contract or sale, the effective date of cancellation, and the name and address of the seller to which the notice should be sent or delivered.

Subd. 3. [CONTRACT COPIES.] Immediately upon signing of the enrollment agreement or the contract by the prospective student, the school or agent shall furnish to the prospective student an exact duplicate copy of the enrollment agreement or contract.

Sec. 20. Minnesota Statutes 1996, section 141.271, subdivision 1, is amended to read:

Subdivision 1. [NOTICE OF ACCEPTANCE OR REJECTION; RIGHT TO REFUND STUDENT.] For the purposes of this section, "student" means the party to the contract, whether the party is the student, the student's parent or guardian, or other person on behalf of the student.

Subd. 1a. [NOTICE; RIGHT TO REFUND.] Every school shall notify each student, in writing, of acceptance or rejection. In the event that the student is rejected by the school, all tuition, fees and other charges shall be refunded.

Sec. 21. Minnesota Statutes 1996, section 141.271, subdivision 2, is amended to read:

Subd. 2. [SCHOOLS USING WRITTEN CONTRACTS.] (a) Notwithstanding anything to the contrary, every school which that utilizes uses a written contract or enrollment agreement shall refund all tuition, fees and other charges paid by a student, if the student gives written notice of cancellation within five business days after the day on which the contract was executed regardless of whether the course of instruction program has started.

(b) With respect to those schools utilizing a written contract or enrollment agreement, When a student has been accepted by the school and has entered into a contractual agreement with the school and gives written notice of cancellation following the fifth business day after the date of execution of contract, but before the start of the course of instruction program in the case of resident schools, or before the first lesson has been serviced by the school in the case of correspondence (home study) schools, all tuition, fees and other charges, except 15 percent of the total cost of the course program but not to exceed $50, shall be refunded to the student.

Sec. 22. Minnesota Statutes 1996, section 141.271, subdivision 3, is amended to read:

Subd. 3. [SCHOOLS NOT USING WRITTEN CONTRACTS.] (a) Notwithstanding anything to the contrary, every school which does not utilize use a written contract or enrollment agreement shall refund all tuition, fees and other charges paid by a student if the student gives written notice of cancellation within five business days after the day on which the student is accepted by the school regardless of whether the course of instruction program has started.

(b) With respect to those schools not utilizing a written contract or enrollment agreement, When a student has been accepted by the school and gives written notice of cancellation following the fifth business day after the day of acceptance by the school, but before the start of the course of instruction program, in the case of resident schools, or before the first lesson has been serviced by the school, in the case of correspondence (home study) schools, all tuition, fees and other charges, except 15 percent of the total cost of the course program but not to exceed $50, shall be refunded to the student.

Sec. 23. Minnesota Statutes 1996, section 141.271, subdivision 4, is amended to read:

Subd. 4. [RESIDENT SCHOOLS.] With respect to all schools offering a resident course of instruction, When a student has been accepted by the a school offering a resident program and gives written notice of cancellation after the start of the period of instruction for which the student has been charged, but before completion of 75 percent of the period of instruction for which the student has been charged, the amount charged for tuition, fees, and all other charges for the completed portion of the period of instruction for which the student has been charged shall not exceed the pro rata be prorated as a portion of the total charges for tuition, fees, and all other charges that the length of the completed portion of the period of instruction


Journal of the House - 39th Day - Top of Page 2098

for which the student has been charged bears to its total length, plus. An additional 25 percent of the total cost of the period of instruction for which the student has been charged may be added, but not to exceed $100. After completion of 75 percent of the period of instruction for which the student has been charged, no refunds are required.

Sec. 24. Minnesota Statutes 1996, section 141.271, subdivision 5, is amended to read:

Subd. 5. [CORRESPONDENCE HOME STUDY SCHOOLS.] With respect to all schools offering a correspondence (home study) course of instruction, When a student has been accepted by the a correspondence school and gives written notice of cancellation after the first lesson has been completed by the student and serviced by the school, but before completion of 75 percent of the course of instruction program, the amount charged for tuition, fees and all other charges for the completed lessons shall not exceed the pro rata be prorated as a portion of the total charges for tuition, fees and all other charges that the number of lessons completed by the student bears to the total number of lessons offered, plus. An additional 25 percent of the total cost of the course program may be added but not to exceed $75. After completion of 75 percent of the course of instruction program, no refunds are required.

Sec. 25. Minnesota Statutes 1996, section 141.271, subdivision 6, is amended to read:

Subd. 6. [COMBINATION CORRESPONDENCE-RESIDENT SCHOOLS.] With respect to all schools offering a combination correspondence (home study)-resident course of instruction, When a student has been accepted by the a school that offers a combination correspondence-residence program and gives written notice of cancellation after the start of the course of instruction program or after the first lesson has been completed by the student and serviced by the school, whichever phase comes first, the school shall refund all tuition, fees and other charges as provided for in subdivision 4 if cancellation occurs during the resident portion, and as provided for in subdivision 5 if cancellation occurs during the correspondence portion; provided that,. If the cancellation occurs before the student has commenced one of the phases, the price of that phase shall not be considered in making the proration and the student shall be entitled to a full refund of the price thereof charges. Conversely, if the student has completed a phase of the course program before cancellation, the price thereof charges may be retained by the school provided that the total tuition, fees and other charges for each phase have been stated separately in the school's catalog and contract or enrollment agreement.

Sec. 26. Minnesota Statutes 1996, section 141.271, subdivision 12, is amended to read:

Subd. 12. [INSTRUMENT NOT TO BE NEGOTIATED.] No school shall negotiate any promissory instrument received as payment of tuition or other charge prior to completion of 50 percent of the course of instruction program. Prior to such that time, such instruments may be transferred by assignment to purchasers who shall be subject to all defenses available against the school named as payee.

Sec. 27. Minnesota Statutes 1996, section 141.28, subdivision 3, is amended to read:

Subd. 3. [FALSE STATEMENTS.] No school, agent, or solicitor shall make, or cause to be made, any statement or representation, oral, written or visual, in connection with the offering or publicizing of a course program, if such the school, agent, or solicitor knows or reasonably should have known the statement or representation to be false, fraudulent, deceptive, substantially inaccurate, or misleading.

Sec. 28. Minnesota Statutes 1996, section 141.28, subdivision 5, is amended to read:

Subd. 5. [IMPROBABLE COURSE PROGRAM COMPLETION OR EMPLOYMENT.] No school, agent, or solicitor shall enroll a prospective student when it is obvious that the prospective student is unlikely to successfully complete a course of instruction program or is unlikely to qualify for employment in the vocation or field for which the training preparation is designed unless this fact is affirmatively disclosed to the prospective student. If a prospective student expresses a desire to enroll after such disclosure, a disclaimer may be obtained by the school. Such The disclaimer shall be signed by the student and shall state substantially as follows: "I am fully aware that it is unlikely I will be able to successfully complete the course of instruction program" and/or "I am fully aware of the improbability or impossibility that I will qualify for employment in the vocation or field for which the course program was designed."


Journal of the House - 39th Day - Top of Page 2099

Sec. 29. Minnesota Statutes 1996, section 141.29, subdivision 1, is amended to read:

Subdivision 1. [GROUNDS.] The office may, after notice and upon providing an opportunity for a hearing, pursuant to under chapter 14 if requested by the parties adversely affected, refuse to issue, refuse to renew, revoke, or suspend any license or solicitor's permit for any one or any combination of the following grounds:

(a) (1) violation of any provisions of sections 141.21 to 141.36 141.35 or any rule promulgated adopted by the office;

(b) (2) furnishing to the office false, misleading, or incomplete information;

(c) (3) presenting to prospective students information relating to the school which is false, fraudulent, deceptive, substantially inaccurate, or misleading;

(d) (4) refusal to allow reasonable inspection or supply reasonable information after written request therefor by the office;

(e) (5) the existence of any circumstance which would be grounds for the refusal of an initial or renewal license under section 141.25.

Sec. 30. Minnesota Statutes 1996, section 141.31, is amended to read:

141.31 [INJUNCTION.]

Upon application of the attorney general the district courts shall have jurisdiction to enjoin any violation of sections 141.21 to 141.36 141.35.

Sec. 31. Minnesota Statutes 1996, section 141.35, is amended to read:

141.35 [EXEMPTIONS.]

None of the provisions of Sections 141.21 to 141.36 141.35 shall not apply to the following:

(a) (1) colleges authorized by the laws of Minnesota or of any other state or foreign country to grant degrees public post-secondary institutions;

(2) private post-secondary institutions registered under sections 136A.61 to 136A.71 that are nonprofit or are approved to offer exclusively baccalaureate or postbaccalaureate programs;

(b) (3) schools of nursing accredited by the state board of nursing or an equivalent public board of another state or foreign country;

(c) public schools as defined in section 120.05;

(d) (4) private schools complying with the requirements of section 120.101, subdivision 2 4;

(e) private and parochial nonprofit schools exempt from taxation under the constitution of Minnesota;

(f) (5) courses taught to students in a valid apprenticeship program taught by or required by a trade union;

(g) (6) schools exclusively engaged in training physically or mentally handicapped persons for the state of Minnesota;

(h) (7) schools now or hereafter licensed by boards authorized under Minnesota law to issue such licenses;

(i) (8) schools and educational programs, or training programs, conducted by persons, firms, corporations, or associations, for the training of their own employees, for which no fee is charged the employee;


Journal of the House - 39th Day - Top of Page 2100

(j) (9) schools engaged exclusively in the teaching of purely avocational, recreational, or remedial subjects as determined by the office. Private schools teaching a method or procedure to increase the speed with which a student reads are not within this exemption;

(k) (10) driver training schools and instructors as defined in section 171.33, subdivisions 1 and 2;

(l) (11) classes, courses, or programs conducted by a bona fide trade, professional, or fraternal organization, solely for that organization's membership;

(m) courses of instruction (12) programs in the fine arts provided by organizations exempt from taxation pursuant to under section 290.05 and registered with the attorney general pursuant to under chapter 309. "Fine arts" means activities resulting in artistic creation or artistic performance of works of the imagination which are engaged in for the primary purpose of creative expression rather than commercial sale or employment. In making this determination the office may seek the advice and recommendation of the Minnesota board of the arts;

(n) (13) classes, courses, or programs intended to fulfill the continuing education requirements for licensure or certification in a profession, which classes, courses, or programs that have been approved by a legislatively or judicially established board or agency responsible for regulating the practice of the profession, and which that are offered primarily to a person who currently practices people practicing the profession;

(o) (14) classes, courses, or programs intended to prepare students to sit for undergraduate, graduate, postgraduate, or occupational licensing and occupational entrance examinations;

(p) (15) classes, courses, or programs of a seminar nature providing 16 or fewer clock hours of instruction that are not part of the curriculum for an occupation or are not intended to prepare a person for entry level employment;

(q) (16) classes, courses, or programs of a seminar nature providing instruction in personal development, modeling, or acting; and

(r) (17) training or instructional programs, in which one instructor teaches an individual student, that are not part of the curriculum for an occupation or are not intended to prepare a person for entry level employment; and

(18) schools with no physical presence in Minnesota engaged exclusively in offering distance education courses or programs that are located in and regulated by other states or jurisdictions.

Sec. 32. [REPEALER.]

Minnesota Statutes 1996, sections 141.25, subdivisions 9a, 9b, and 11; and 141.36, are repealed."

Amend the title accordingly

With the recommendation that when so amended the bill pass.

The report was adopted.

SECOND READING OF HOUSE BILLS

H. F. Nos. 311, 694, 864, 1129, 1702 and 2079 were read for the second time.

SECOND READING OF SENATE BILLS

S. F. Nos. 36, 122, 154, 277, 329, 330, 399, 475, 525, 526, 539, 555, 612, 652, 755, 762, 848, 868, 877, 1094, 1146, 1155, 1527, 1646, 1715, 95, 101 and 1888 were read for the second time.


Journal of the House - 39th Day - Top of Page 2101

INTRODUCTION AND FIRST READING OF HOUSE BILLS

The following House Files were introduced:

Bishop, Bradley, Solberg and Kalis introduced:

H. F. No. 2148, A bill for an act relating to capital improvements; consolidating the requirements for University Center Rochester; amending Laws 1994, chapter 643, section 10, subdivision 10, as amended.

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

Jennings, Delmont, Wolf and Workman introduced:

H. F. No. 2149, A bill for an act relating to utilities; restructuring regulation of the generation, transmission, and distribution of electricity; providing for transition to competitive industry; allowing cooperative electric associations to opt out; requiring restructuring plans; requiring unbundling of services; providing for recovery of stranded costs; requiring access to facilities; requiring registration of suppliers; abolishing personal property tax on generation; abolishing certificate of need and resources planning processes; establishing legislative oversight committee; proposing coding for new law as Minnesota Statutes, chapter 216E.

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

Osthoff, for the Committee on Environment, Natural Resources and Agriculture Finance introduced:

H. F. No. 2150, A bill for an act relating to the organization and operation of state government; appropriating money for environmental, natural resource, and agricultural purposes; establishing and modifying certain programs; providing for regulation of certain activities and practices; providing for accounts, assessments, and fees; amending Minnesota Statutes 1996, sections 17.76, by adding a subdivision; 32.394, subdivision 11; 32.415; 84.0273; 84.0887, subdivision 2; 84.794, subdivision 1; 84.803, subdivision 1; 84.927, subdivision 2; 85.22, subdivision 2a; 85A.04, subdivision 4; 86A.23; 86B.415, subdivision 9; 92.06, subdivision 4; 92.16, subdivision 1; 92.46, by adding a subdivision; 94.10, subdivision 2; 94.165; 97B.667; 103C.501, subdivision 6; 103F.378, subdivision 1; 115.03, subdivision 5; 115A.54, subdivision 2a; 115A.912, by adding a subdivision; 116P.05, subdivision 2, and by adding a subdivision; 296.421, subdivision 5; 300.111, by adding a subdivision; 308A.101, by adding a subdivision; 308A.201, by adding a subdivision; 325E.10, subdivision 2, and by adding subdivisions; 325E.11; and 325E.112, subdivision 2; Laws 1995, chapter 220, section 19, subdivision 11; and Laws 1996, chapters 351, section 2; and 463, section 7, subdivision 24; proposing coding for new law in Minnesota Statutes, chapters 4; 17; 92; 94; 115; and 219; repealing Minnesota Statutes 1996, sections 1.31; 1.32; 1.33; 1.34; 1.35; 1.36; 1.37; 1.38; 1.39; 1.40; 84B.11; 115A.9523; and 116P.05, subdivision 1; Laws 1995, chapters 77, section 3; and 220, section 21.

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

MESSAGES FROM THE SENATE

The following messages were received from the Senate:

Mr. Speaker:

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

H. F. No. 117, A bill for an act relating to commerce; requiring local units of government to license the retail sale of tobacco; providing for mandatory penalties against license holders for sales to minors; amending Minnesota Statutes 1996, section 461.12; proposing coding for new law in Minnesota Statutes, chapter 461.


Journal of the House - 39th Day - Top of Page 2102

The Senate has appointed as such committee:

Ms. Junge; Mr. Oliver and Ms. Wiener.

Said House File is herewith returned to the House.

Patrick E. Flahaven, Secretary of the Senate

Mr. Speaker:

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

H. F. No. 566, A bill for an act relating to the board of government innovation and cooperation; extending an exemption from enforcement of law granted by the board during calendar year 1996; amending Minnesota Statutes 1996, section 465.797, subdivision 5a.

H. F. No. 1067, A resolution memorializing the President, Congress, and the Secretary of Agriculture of the United States to design and implement adjustments to the federal milk marketing order system that are equitable to Minnesota's family dairy farmers; including reassessment of the use of wholesale price indicators derived from trade on the Green Bay Cheese Exchange.

Patrick E. Flahaven, Secretary of the Senate

Mr. Speaker:

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

H. F. No. 1187, A bill for an act relating to the city of Buffalo Lake; authorizing the city to negotiate contracts for a specific project without competitive bids.

Patrick E. Flahaven, Secretary of the Senate

Mr. Speaker:

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

H. F. No. 379, A bill for an act relating to commerce; regulating securities; authorizing small corporate offering registrations; proposing coding for new law in Minnesota Statutes, chapter 80A.

Patrick E. Flahaven, Secretary of the Senate

Abrams moved that the House refuse to concur in the Senate amendments to H. F. No. 379, that the Speaker appoint a Conference Committee of 3 members of the House, and that the House requests that a like committee be appointed by the Senate to confer on the disagreeing votes of the two houses. The motion prevailed.


Journal of the House - 39th Day - Top of Page 2103

Mr. Speaker:

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

H. F. No. 601, A bill for an act relating to local government; authorizing boundary commissions; amending Minnesota Statutes 1996, section 465.79.

Patrick E. Flahaven, Secretary of the Senate

Wenzel moved that the House refuse to concur in the Senate amendments to H. F. No. 601, that the Speaker appoint a Conference Committee of 3 members of the House, and that the House requests that a like committee be appointed by the Senate to confer on the disagreeing votes of the two houses. The motion prevailed.

Mr. Speaker:

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

S. F. No. 1, A bill for an act relating to human services; replacing the aid to families with dependent children program with the Minnesota family investment program-statewide; amending Minnesota Statutes 1996, sections 13.46, subdivisions 1 and 2; 84.98, subdivision 3; 124.17, subdivisions 1d and 1e; 124.175; 124A.02, subdivision 16; 124A.22, subdivision 3; 136A.125, subdivision 2; 196.27; 237.70, subdivision 4a; 254B.02, subdivision 1; 256.01, subdivisions 2 and 4a; 256.017, subdivisions 1 and 4; 256.019; 256.031, subdivision 5, and by adding subdivisions; 256.033, subdivisions 1 and 1a; 256.046, subdivision 1; 256.736, subdivision 3a; 256.74, subdivision 1; 256.82, subdivision 2; 256.935, subdivision 1; 256.9354, by adding a subdivision; 256.98, subdivision 8; 256.981; 256.983, subdivisions 1 and 4; 256.9861, subdivision 5; 256B.055, subdivisions 3, 5, and by adding subdivisions; 256B.056, subdivisions 1a, 3, and 4; 256B.057, subdivisions 1, 1b, and 2b; 256B.06, subdivision 4; 256B.062; 256D.01, subdivisions 1, 1a, and 1e; 256D.02, subdivisions 6 and 12a; 256D.03, subdivision 3; 256D.05, subdivisions 1, 2, 5, 7, and 8; 256D.051, subdivisions 1a, 2a, 3a, and by adding a subdivision; 256D.055; 256D.06, subdivisions 2 and 5; 256D.08, subdivisions 1 and 2; 256D.09, by adding a subdivision; 256D.435, subdivision 3; 256D.44, subdivision 5; 256E.03, subdivision 2; 256E.06, subdivisions 1 and 3; 256E.07, subdivision 1; 256E.08, subdivision 3; 256F.04, subdivisions 1 and 2; 256F.05, subdivisions 2, 3, 4, 5, and 8; 256F.06, subdivisions 1 and 2; 256G.01, subdivision 4; 256G.02, subdivision 6; 257.3573, subdivision 2; 259.67, subdivision 4; 260.38; 268.0111, subdivisions 5 and 7; 268.0122, subdivision 3; 268.552, subdivision 5; 268.6751, subdivision 1; 268.676, subdivision 1; 268.86, subdivision 2; 268.871, subdivision 1; 268.90, subdivision 2; 268.916; 268.95, subdivision 4; 393.07, subdivision 6; and 477A.0122, subdivision 2; proposing coding for new law in Minnesota Statutes, chapters 256B; and 256D; proposing coding for new law as Minnesota Statutes, chapters 256J; and 256K; repealing Minnesota Statutes 1996, sections 256.12, subdivisions 9, 10, 14, 15, 20, 21, 22, and 23; 256.72; 256.73; 256.7341; 256.7351; 256.7352; 256.7353; 256.7354; 256.7355; 256.7356; 256.7357; 256.7358; 256.7359; 256.736, subdivision 19; 256.7365; 256.7366; 256.7381; 256.7382; 256.7383; 256.7384; 256.7385; 256.7386; 256.7387; 256.7388; 256.74, subdivisions 1, 1a, 1b, 2, and 6; 256.745; 256.75; 256.76; 256.78; 256.80; 256.81; 256.82; 256.84; 256.85; 256.86; 256.863; 256.871; 256.8711; 256.879; 256D.02, subdivision 5; 256D.05, subdivisions 3 and 3a; 256D.0511; 256D.065; 256F.05, subdivisions 5 and 7; and 256G.05, subdivision 2.

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

Messrs. Samuelson; Stevens; Mses. Berglin; Kiscaden and Mr. Hottinger.

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

Patrick E. Flahaven, Secretary of the Senate

Winter moved that the House accede to the request of the Senate and that the Speaker appoint a Conference Committee of 5 members of the House to meet with a like committee appointed by the Senate on the disagreeing votes of the two houses on S. F. No. 1. The motion prevailed.


Journal of the House - 39th Day - Top of Page 2104

Mr. Speaker:

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

S. F. Nos. 117, 1833, 333, 236, 1179 and 1880.

Patrick E. Flahaven, Secretary of the Senate

Mr. Speaker:

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

S. F. Nos. 444, 1136, 1072, 193, 1312, 1513, 1025 and 1363.

Patrick E. Flahaven, Secretary of the Senate

Mr. Speaker:

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

S. F. Nos. 495, 1599, 1207, 1621, 1583 and 1115.

Patrick E. Flahaven, Secretary of the Senate

FIRST READING OF SENATE BILLS

S. F. No. 117, A bill for an act relating to the military; adding an exclusion to the tort claims act; amending Minnesota Statutes 1996, section 3.736, subdivision 3.

The bill was read for the first time.

Pugh moved that S. F. No. 117 and H. F. No. 445, now on General Orders, be referred to the Chief Clerk for comparison. The motion prevailed.

S. F. No. 1833, A bill for an act relating to counties; providing that issuance of a certain permit does not make a county liable for certain injuries; amending Minnesota Statutes 1996, section 86B.121.

The bill was read for the first time.

Kinkel moved that S. F. No. 1833 and H. F. No. 1620, now on General Orders, be referred to the Chief Clerk for comparison. The motion prevailed.

S. F. No. 333, A bill for an act relating to home care; modifying an exemption from the definition of provider; requiring rules to include certain standards; establishing an assisted living home care provider license; redefining elderly housing with services establishment; modifying reimbursement procedures for assisted living services under medical assistance and alternative care; defining certain housing with services establishments as a permitted single family residential use of property for zoning purposes; requiring a study; amending Minnesota Statutes 1996, sections 144A.43, subdivision 4; 144A.45, subdivision 1, and by adding a subdivision; 144A.46, subdivisions 1 and 3; 144D.01, subdivisions 4, 5, 6, and by adding a subdivision; 144D.03, subdivision 1; 144D.06; 157.17, subdivisions 2 and 5; 245A.03, subdivision 2; 256B.0913,


Journal of the House - 39th Day - Top of Page 2105

subdivision 5; 256B.0915, subdivision 3; 256I.04, subdivision 2a; and 462.357, subdivision 7; proposing coding for new law in Minnesota Statutes, chapters 144A; and 144D; repealing Minnesota Statutes 1996, sections 144A.45, subdivision 3; 144A.49; 144B.01; 144B.02; 144B.03; 144B.04; 144B.05; 144B.06; 144B.07; 144B.08; 144B.09; 144B.10; 144B.11; 144B.12; 144B.13; 144B.14; 144B.15; 144B.16; and 144B.17.

The bill was read for the first time.

Greenfield moved that S. F. No. 333 and H. F. No. 291, now on General Orders, be referred to the Chief Clerk for comparison. The motion prevailed.

S. F. No. 236, A bill for an act relating to traffic regulations; allowing evidentiary use of accident reports by peace officers; amending Minnesota Statutes 1996, section 169.09, subdivision 13.

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

S. F. No. 1179, A bill for an act relating to traffic regulations; authorizing state and local authorities to issue annual overwidth permits for certain snowplowing vehicles; amending Minnesota Statutes 1996, section 169.86, subdivision 5, and by adding a subdivision.

The bill was read for the first time.

Tingelstad moved that S. F. No. 1179 and H. F. No. 1243, now on General Orders, be referred to the Chief Clerk for comparison. The motion prevailed.

S. F. No. 1880, A bill for an act relating to the organization and operation of state government; appropriating money for the judicial branch, public safety, public defense, corrections, criminal justice, crime prevention programs, and other related purposes; implementing, clarifying, and modifying certain criminal and juvenile provisions; prescribing, clarifying, and modifying certain penalty provisions; modifying and enacting various arson provisions; making various changes to the data privacy laws; establishing, modifying, and expanding permanent programs, pilot programs, grant programs, studies, offices, strike forces, task forces, councils, committees, and working groups; requiring reports; providing for an adjustment to the soft body armor reimbursement fund; authorizing the board on judicial standards to award attorneys fees; changing the name of the "superintendent" of the bureau of criminal apprehension to the "director" of the bureau of criminal apprehension; authorizing testing for HIV or Hepatitis B under certain circumstances; requiring employers of law enforcement officers to adopt a protocol; permitting the sale of ten or fewer unused hypodermic needles or syringes without a prescription; requiring employers of disabled or killed peace officers or firefighters to continue health benefits in certain instances; requiring the state to reimburse those employers; providing for statewide arson training courses; creating a criminal gang investigative data system; requiring the department of corrections to submit an annual performance report; expanding the commissioner of corrections' authority to release inmates on conditional medical release and the commissioner's authority related to rules and guidelines; requiring the department of corrections to amend a rule; ending the state's operation of the Minnesota correctional facility-Sauk Centre; requiring the commissioner of administration to issue a request for proposals and select a vendor to operate the facility; requiring the commissioner of corrections to charge counties for juveniles placed at the Minnesota correctional facility-Red Wing and to develop admissions criteria for the facility; striking the requirement that the Minnesota correctional facility-Red Wing accept all juveniles; establishing a state policy discouraging the out-of-state placement of juveniles; lowering the per se standard for alcohol concentration from 0.10 to 0.08 for driving motor vehicles, snowmobiles, all-terrain vehicles, and motorboats while impaired, as well as for criminal vehicular operation and hunting; providing orders for protection in the case of domestic abuse perpetrated by a minor; amending Minnesota Statutes 1996, sections 13.99, by adding a subdivision; 84.91, subdivision 1; 84.911, subdivision 1; 86B.331, subdivisions 1 and 4; 86B.335, subdivision 1; 97B.065, subdivision 1; 97B.066, subdivision 1; 119A.31, subdivision 1; 144.761, subdivisions 5 and 7; 144.762, subdivision 2, and by adding a subdivision; 144.765; 144.767, subdivision 1; 151.40; 152.01, subdivision 18; 152.021, subdivisions 1 and 2; 152.022, subdivisions 1 and 2; 152.023, subdivision 2; 169.121, subdivisions 1, 2, and 3; 169.123, subdivisions 1, 2, 4, 5a, and 6; 169.129; 171.29, subdivision 2; 241.01, subdivision 3b; 241.271; 242.19, subdivision 2; 242.32, by adding a subdivision; 242.55; 244.05, subdivision 8; 244.17, subdivision 2;


Journal of the House - 39th Day - Top of Page 2106

256E.03, subdivision 2; 257.071, subdivisions 3, 4, and by adding subdivisions; 257.072, subdivision 1; 259.41; 259.59, by adding a subdivision; 259.67, subdivision 2; 260.012; 260.015, subdivisions 2a and 29; 260.131, subdivisions 1 and 2; 260.155, subdivisions 1a, 2, 3, 4, and 8; 260.161, subdivisions 1, 1a, and by adding a subdivision; 260.165, subdivisions 1 and 3; 260.171, subdivision 2; 260.191, subdivisions 1, 3a, 3b, and 4; 260.192; 260.221, subdivisions 1 and 5; 260.241, subdivisions 1 and 3; 299A.38, subdivision 2, and by adding a subdivision; 299A.61, subdivision 1; 299C.065, subdivision 1; 299C.095; 299C.10, subdivisions 1 and 4; 299C.13; 299F.051; 299F.06, subdivisions 1 and 3; 326.3321, subdivision 1; 326.3386, subdivision 3, and by adding subdivisions; 357.021, subdivision 1a; 363.073, subdivision 1, and by adding a subdivision; 401.13; 609.035, subdivision 1, and by adding a subdivision; 609.10; 609.101, subdivision 5; 609.115, subdivision 1; 609.125; 609.135, subdivision 1; 609.152, subdivision 2a, and by adding a subdivision; 609.21; 609.221; 609.684, subdivision 4; 609.748, subdivision 1; 609.902, subdivision 4; 611A.038; 611A.675; 611A.71, subdivision 5; 611A.74, subdivisions 1, 3, and by adding a subdivision; 611A.75; 626.843, subdivision 1; Laws 1995, chapter 226, article 2, section 37, subdivision 2; article 3, section 60, subdivision 4, and by adding a subdivision; and Laws 1996, chapter 408, article 8, sections 21; 22, subdivision 1; and 24; proposing coding for new law in Minnesota Statutes, chapters 16A; 241; 242; 243; 257; 259; 299A; 299C; 299F; 609; 611A; and 626; repealing Minnesota Statutes 1996, sections 119A.30; 145.406; 242.51; 244.09, subdivision 11a; 259.33; 299F.07; and 609.684, subdivision 2.

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

S. F. No. 444, A bill for an act relating to corrections; removing the limit of two security officers that may be employed by the commissioner; providing authority to detain certain juveniles committed to the commissioner who are on release status; authorizing use of funds received from other jurisdictions for housing offenders to help maintain correctional facilities; authorizing continued detention in eight-day temporary holdover facilities for juveniles under certain circumstances; extending the sexual assault and crime victims advisory councils; repealing the religious instruction law and the extraordinary discharge statute; amending Minnesota Statutes 1996, sections 241.01, subdivision 3a; 242.19, subdivision 3; 243.51, subdivisions 1 and 3; 260.1735; 611A.25, subdivision 3; and 611A.361, subdivision 3; repealing Minnesota Statutes 1996, section 244.06.

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

S. F. No. 1136, A bill for an act relating to capital improvements; transferring responsibility for a family practice residency program from the city of Duluth to the Duluth economic development authority; amending Laws 1996, chapter 463, section 24, subdivision 3.

The bill was read for the first time.

Huntley moved that S. F. No. 1136 and H. F. No. 1380, now on General Orders, be referred to the Chief Clerk for comparison. The motion prevailed.

S. F. No. 1072, A bill for an act relating to public safety; modifying certain requirement for operating emergency vehicle; amending Minnesota Statutes 1996, section 169.17.

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

S. F. No. 193, A bill for an act relating to traffic regulations; making technical correction to ensure vehicle driver is held liable for knowingly driving vehicle without insurance; amending Minnesota Statutes 1996, section 169.797, subdivision 3.

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


Journal of the House - 39th Day - Top of Page 2107

S. F. No. 1312, A bill for an act relating to public safety; implementing the federal communications commission requirement for wireless enhanced 911 service; establishing a cost recovery mechanism; authorizing the payment of wireless enhanced 911 installation charges from the 911 fund; establishing a method of determining the primary answering point for wireless 911 calls; amending Minnesota Statutes 1996, sections 403.08, by adding a subdivision; 403.11, subdivision 2; 403.113, subdivisions 1, 2, 3, and 4; 403.13; and 473.894, subdivision 3.

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

S. F. No. 1513, A bill for an act relating to civil actions; modifying and expanding provisions for sanctions in civil actions; amending Minnesota Statutes 1996, sections 336.2A-108; 566.25; 570.041, subdivision 1; 571.932, subdivision 6; and 609.5314, subdivision 3; proposing coding for new law in Minnesota Statutes, chapter 549; repealing Minnesota Statutes 1996, section 549.21.

The bill was read for the first time.

Pugh moved that S. F. No. 1513 and H. F. No. 1404, now on General Orders, be referred to the Chief Clerk for comparison. The motion prevailed.

S. F. No. 1025, A bill for an act relating to motor vehicles; changing notice period relating to impounded vehicles in custody; amending Minnesota Statutes 1996, section 168B.06, subdivision 1.

The bill was read for the first time.

Rest moved that S. F. No. 1025 and H. F. No. 1223, now on General Orders, be referred to the Chief Clerk for comparison. The motion prevailed.

S. F. No. 1363, A bill for an act relating to economic development; creating a commission to examine and make recommendations on state subsidy programs and tax laws related to economic development.

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

S. F. No. 495, A bill for an act relating to insurance; health; requiring coverage for diabetes outpatient self-management training and education; amending Minnesota Statutes 1996, section 62A.45.

The bill was read for the first time.

Pugh moved that S. F. No. 495 and H. F. No. 653, now on General Orders, be referred to the Chief Clerk for comparison. The motion prevailed.

S. F. No. 1599, A bill for an act relating to state lands; authorizing the private sale of certain state land.

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

S. F. No. 1207, A bill for an act relating to corrections; creating the site selection committee to recommend sites for future correctional facilities; proposing coding for new law in Minnesota Statutes, chapter 243.

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


Journal of the House - 39th Day - Top of Page 2108

S. F. No. 1621, A bill for an act relating to health; modifying provisions for family planning special project grants; repealing ENABL program; amending Minnesota Statutes 1996, section 145.925, subdivision 9; repealing Minnesota Statutes 1996, section 145.9256.

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

S. F. No. 1583, A bill for an act relating to state government; setting state policy for regulatory rules and programs of agencies; regulating obsolete, unnecessary, or duplicative rules; amending Minnesota Statutes 1996, sections 14.05, subdivision 5; and 14.131; proposing coding for new law in Minnesota Statutes, chapter 14.

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

S. F. No. 1115, A bill for an act relating to the environment; repealing the hazardous products labeling law; directing the office of environmental assistance to include discussion of hazardous product labeling requirements in its review of the Waste Management Act; repealing Minnesota Statutes 1996, section 115A.9523.

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

CONSENT CALENDAR

S. F. No. 1071, A bill for an act relating to local government; authorizing removal and reinterment of bodies in the city of Luverne.

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

The question was taken on the passage of the bill and the roll was called. There were 133 yeas and 0 nays as follows:

Those who voted in the affirmative were:

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

The bill was passed and its title agreed to.


Journal of the House - 39th Day - Top of Page 2109

S. F. No. 1356, A bill for an act relating to legislative districts; changing two districts to reflect an annexation; amending Minnesota Statutes 1996, section 2.123, subdivision 2.

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

The question was taken on the passage of the bill and the roll was called. There were 133 yeas and 0 nays as follows:

Those who voted in the affirmative were:

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

The bill was passed and its title agreed to.

S. F. No. 127, A bill for an act relating to the environment; modifying requirements relating to certain environmental advisory councils; amending Minnesota Statutes 1996, sections 115A.12; and 473.803, subdivision 4; repealing Minnesota Statutes 1996, section 473.149, subdivision 4.

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

The question was taken on the passage of the bill and the roll was called. There were 127 yeas and 3 nays as follows:

Those who voted in the affirmative were:

Abrams Erhardt Juhnke McCollum Peterson Tingelstad
Anderson, B. Evans Kalis McElroy Pugh Tomassoni
Anderson, I. Farrell Kelso McGuire Rest Tompkins
Bakk Finseth Kielkucki Milbert Reuter Trimble
Bettermann Folliard Kinkel Molnau Rhodes Tuma
Biernat Garcia Knoblach Mullery Rifenberg Tunheim
Bishop Goodno Koppendrayer Munger Rostberg Van Dellen
Boudreau Greenfield Koskinen Murphy Rukavina Vickerman
Bradley Greiling Kraus Ness Schumacher Wagenius
Broecker Gunther Kubly Nornes Seagren Weaver
Carlson Haas Kuisle Olson, E. Seifert Wejcman
Chaudhary Harder Larsen Olson, M. Sekhon Wenzel
Clark Hasskamp Leighton Opatz Skare Westfall
Commers Hausman Leppik Orfield Skoglund Westrom
Daggett Hilty Lieder Osskopp Slawik Winter
Davids Holsten Lindner Osthoff Solberg Workman

Journal of the House - 39th Day - Top of Page 2110
Dawkins Huntley Long Otremba Stanek Spk. Carruthers
Dehler Jaros Luther Ozment Stang
Delmont Jefferson Macklin Paulsen Sviggum
Dempsey Jennings Mahon Pawlenty Swenson, D.
Dorn Johnson, A. Mariani Paymar Swenson, H.
Entenza Johnson, R. Marko Pelowski Sykora

Those who voted in the negative were:

Knight Krinkie Smith

The bill was passed and its title agreed to.

S. F. No. 137, A bill for an act relating to natural resources; modifying the provisions of the youth corps advisory committee; authorizing the commissioner to make certain contracts and grants; making conservation corps crew services available for natural resources projects; changing the method of allocation of conservation corps crew services; amending Minnesota Statutes 1996, sections 84.0887, subdivision 4, and by adding a subdivision; and 84.99.

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

The question was taken on the passage of the bill and the roll was called. There were 84 yeas and 49 nays as follows:

Those who voted in the affirmative were:

Anderson, I. Evans Jennings Macklin Orfield Skoglund
Bakk Farrell Johnson, A. Mahon Osthoff Slawik
Biernat Finseth Johnson, R. Mares Otremba Smith
Carlson Folliard Juhnke Mariani Paymar Solberg
Chaudhary Garcia Kalis Marko Pelowski Tingelstad
Clark Greenfield Kelso McCollum Peterson Tomassoni
Daggett Greiling Kinkel McGuire Pugh Tompkins
Dawkins Hasskamp Koskinen Milbert Rest Trimble
Dehler Hausman Kubly Mullery Rhodes Tunheim
Delmont Hilty Leighton Munger Rostberg Wagenius
Dempsey Holsten Leppik Murphy Rukavina Wejcman
Dorn Huntley Lieder Ness Schumacher Wenzel
Entenza Jaros Long Olson, E. Sekhon Winter
Erhardt Jefferson Luther Opatz Skare Spk. Carruthers

Those who voted in the negative were:

Abrams Goodno Krinkie Osskopp Stang Westfall
Anderson, B. Gunther Kuisle Ozment Sviggum Westrom
Bettermann Haas Larsen Paulsen Swenson, D. Wolf
Bishop Harder Lindner Pawlenty Swenson, H. Workman
Boudreau Kielkucki McElroy Reuter Sykora
Bradley Knight Molnau Rifenberg Tuma
Broecker Knoblach Mulder Seagren Van Dellen
Commers Koppendrayer Nornes Seifert Vickerman
Davids Kraus Olson, M. Stanek Weaver

The bill was passed and its title agreed to.


Journal of the House - 39th Day - Top of Page 2111

Skoglund and Farrell were excused for the remainder of today's session.

SPECIAL ORDERS

H. F. No. 1314 was reported to the House.

Hausman moved to amend H. F. No. 1314 as follows:

Page 2, line 5, after "other" insert "motor vehicle"

Page 2, line 8, after the first comma, insert "other than a motor vehicle recycling facility, that is" and delete the second comma

Page 2, line 9, delete "that" and insert "and" and delete everything after "used" and insert "for storing, keeping, buying, dismantling, crushing, or selling wrecked, scrapped, ruined, or partially dismantled motor vehicles where the parts, motor vehicle hulks, or other motor vehicle scrap material stored is equal in bulk to ten or more vehicles."

Page 2, delete lines 10 to 12

The motion prevailed and the amendment was adopted.

Kelso and Macklin moved to amend H. F. No. 1314, as amended, as follows:

Page 3, after line 22, insert:

"Sec. 3. Minnesota Statutes 1996, section 373.01, subdivision 1, is amended to read:

Subdivision 1. [PUBLIC CORPORATION; LISTED POWERS.] Each county is a body politic and corporate and may:

(1) Sue and be sued.

(2) Acquire and hold real and personal property for the use of the county, and lands sold for taxes as provided by law.

(3) Purchase and hold for the benefit of the county real estate sold by virtue of judicial proceedings, to which the county is a party.

(4) Sell, lease, and convey real or personal estate owned by the county, and give contracts or options to sell, lease, or convey it, and make orders respecting it as deemed conducive to the interests of the county's inhabitants.

No sale, lease, or conveyance of real estate owned by the county, except the lease of a residence acquired for the furtherance of an approved capital improvement project, nor any contract or option for it, shall be valid, without first advertising for bids or proposals in the official newspaper of the county for three consecutive weeks and once in a newspaper of general circulation in the area where the property is located. The notice shall state the time and place of considering the proposals, contain a legal description of any real estate, and a brief description of any personal property. Leases that do not exceed $15,000 for any one year may be negotiated and are not subject to the competitive bid procedures of this section. All proposals estimated to exceed $15,000 in any one year shall be considered at the time set for the bid opening, and the one most favorable to the county accepted, but the county board may, in the interest of the county, reject any or all proposals. Sales of personal property the value of which is estimated to be $15,000 or more shall be made only after advertising for bids or proposals as provided for real estate. Sales of personal property the value of which is estimated to be less than $15,000 may be made either on competitive bids or in the open market, in the discretion of the county board.


Journal of the House - 39th Day - Top of Page 2112

Notwithstanding anything to the contrary herein, the county may, when acquiring real property for county highway right-of-way, exchange parcels of real property of substantially similar or equal value without advertising for bids. The estimated values for these parcels shall be determined by the county assessor.

If real estate or personal property remains unsold after advertising for and consideration of bids or proposals the county may employ a broker to sell the property. The broker may sell the property for not less than 90 percent of its appraised market value as determined by the county. The broker's fee shall be set by agreement with the county but may not exceed ten percent of the sale price and must be paid from the proceeds of the sale.

A county or its agent may rent a county-owned residence acquired for the furtherance of an approved capital improvement project subject to the conditions set by the county board and not subject to the conditions for lease otherwise provided by this clause.

In no case shall lands be disposed of without there being reserved to the county all iron ore and other valuable minerals in and upon the lands, with right to explore for, mine and remove the iron ore and other valuable minerals, nor shall the minerals and mineral rights be disposed of, either before or after disposition of the surface rights, otherwise than by mining lease, in similar general form to that provided by section 93.20 for mining leases affecting state lands. The lease shall be for a term not exceeding 50 years, and be issued on a royalty basis, the royalty to be not less than 25 cents per ton of 2,240 pounds, and fix a minimum amount of royalty payable during each year, whether mineral is removed or not. Prospecting options for mining leases may be granted for periods not exceeding one year. The options shall require, among other things, periodical showings to the county board of the results of exploration work done. Minerals subject to reservation and lease by a county under this section do not include minerals defined as aggregate material in section 298.75, subdivision 1, clause (1).

(5) Make all contracts and do all other acts in relation to the property and concerns of the county necessary to the exercise of its corporate powers."

Page 3, line 24, delete "and 2" and insert "to 3"

Renumber the sections in sequence

Amend the title accordingly

The motion prevailed and the amendment was adopted.

Biernat, Pugh, Jefferson and Munger moved to amend H. F. No. 1314, as amended, as follows:

Page 3, after line 22, insert:

"Sec. 3. [METAL SHREDDING FACILITIES IN THE MISSISSIPPI RIVER CRITICAL AREA.]

A metal shredding facility located upstream from United States Corps of Engineers Lock and Dam Number Two in the Mississippi river critical area, established under Minnesota Statutes 1996, section 116G.15, is prohibited from shredding motor vehicles as part of its metal materials reclamation operations."

Renumber the sections in sequence and correct internal references

Amend the title accordingly

A roll call was requested and properly seconded.


Journal of the House - 39th Day - Top of Page 2113

The question was taken on the Biernat et al amendment and the roll was called. There were 67 yeas and 64 nays as follows:

Those who voted in the affirmative were:

Anderson, I. Garcia Juhnke Marko Pelowski Trimble
Bakk Greenfield Kalis McCollum Peterson Tunheim
Biernat Greiling Kinkel McGuire Pugh Wagenius
Carlson Hasskamp Koskinen Milbert Rest Wejcman
Chaudhary Hausman Kubly Mullery Rhodes Wenzel
Clark Hilty Leighton Munger Rukavina Winter
Dawkins Huntley Leppik Murphy Schumacher Spk. Carruthers
Delmont Jaros Lieder Olson, E. Sekhon
Dorn Jefferson Long Orfield Skare
Entenza Jennings Luther Osthoff Slawik
Evans Johnson, A. Mahon Otremba Solberg
Folliard Johnson, R. Mariani Paymar Tomassoni

Those who voted in the negative were:

Abrams Dempsey Knoblach Mulder Rostberg Tompkins
Anderson, B. Erhardt Koppendrayer Ness Seagren Tuma
Bettermann Finseth Kraus Nornes Seifert Van Dellen
Bishop Goodno Krinkie Olson, M. Smith Vickerman
Boudreau Gunther Kuisle Opatz Stanek Weaver
Bradley Haas Larsen Osskopp Stang Westfall
Broecker Harder Lindner Ozment Sviggum Westrom
Commers Holsten Macklin Paulsen Swenson, D. Wolf
Daggett Kelso Mares Pawlenty Swenson, H. Workman
Davids Kielkucki McElroy Reuter Sykora
Dehler Knight Molnau Rifenberg Tingelstad

The motion prevailed and the amendment was adopted.

H. F. No. 1314, A bill for an act relating to the environment; modifying provisions relating to scrap motor vehicle facilities; amending Minnesota Statutes 1996, sections 116.66; and 116.67.

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

The question was taken on the passage of the bill and the roll was called. There were 70 yeas and 61 nays as follows:

Those who voted in the affirmative were:

Anderson, I. Garcia Juhnke Mariani Otremba Slawik
Bakk Greenfield Kalis Marko Ozment Solberg
Biernat Greiling Kelso McCollum Paymar Tomassoni
Carlson Hasskamp Kinkel McGuire Pelowski Trimble
Chaudhary Hausman Koskinen Milbert Peterson Tunheim
Clark Hilty Kubly Mullery Pugh Wagenius
Dawkins Huntley Leighton Munger Rest Wejcman
Delmont Jaros Leppik Murphy Rhodes Wenzel
Dorn Jefferson Lieder Olson, E. Rukavina Winter
Entenza Jennings Long Opatz Schumacher Spk. Carruthers
Evans Johnson, A. Luther Orfield Sekhon
Folliard Johnson, R. Mahon Osthoff Skare


Journal of the House - 39th Day - Top of Page 2114

Those who voted in the negative were:

Abrams Dempsey Koppendrayer Ness Smith Vickerman
Anderson, B. Erhardt Kraus Nornes Stanek Weaver
Bettermann Finseth Krinkie Olson, M. Stang Westfall
Bishop Goodno Kuisle Osskopp Sviggum Westrom
Boudreau Gunther Larsen Paulsen Swenson, D. Wolf
Bradley Haas Lindner Pawlenty Swenson, H. Workman
Broecker Harder Macklin Reuter Sykora
Commers Holsten Mares Rifenberg Tingelstad
Daggett Kielkucki McElroy Rostberg Tompkins
Davids Knight Molnau Seagren Tuma
Dehler Knoblach Mulder Seifert Van Dellen

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

S. F. No. 1675 was reported to the House.

Jefferson moved that S. F. No. 1675 be continued on Special Orders. The motion prevailed.

Winter moved that the remaining bills on Special Orders for today be continued. The motion prevailed.

GENERAL ORDERS

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

MOTIONS AND RESOLUTIONS

Pelowski moved that the name of Abrams be added as an author on H. F. No. 1007. The motion prevailed.

Sekhon moved that the name of Commers be added as an author on H. F. No. 1116. The motion prevailed.

Peterson moved that the name of Mulder be added as an author on H. F. No. 1426. The motion prevailed.

Jennings moved that the name of Mulder be added as an author on H. F. No. 2088. The motion prevailed.

Westrom moved that the name of Mulder be added as an author on H. F. No. 2143. The motion prevailed.

Lieder moved that the name of Tunheim be added as an author on H. F. No. 2144. The motion prevailed.

Luther moved that S. F. No. 574 be recalled from the Committee on Environment, Natural Resources and Agriculture Finance and together with H. F. No. 311, now on Technical General Orders, be referred to the Chief Clerk for comparison. The motion prevailed.

Mulder moved that H. F. No. 1714 be returned to its author. The motion prevailed.

Rhodes moved that H. F. No. 1720 be returned to its author. The motion prevailed.

Mulder moved that H. F. No. 1733 be returned to its author. The motion prevailed.


Journal of the House - 39th Day - Top of Page 2115

Mulder moved that H. F. No. 1837 be returned to its author. The motion prevailed.

Mulder moved that H. F. No. 1999 be returned to its author. The motion prevailed.

Westrom moved that H. F. No. 2005 be returned to its author. The motion prevailed.

ANNOUNCEMENT BY THE SPEAKER

The Speaker announced the appointment of the following members of the House to a Conference Committee on S. F. No. 1:

Jennings, Greenfield, Wejcman, Bradley and Goodno.

ADJOURNMENT

Winter moved that when the House adjourns today it adjourn until 2:30 p.m., Wednesday, April 16, 1997. The motion prevailed.

Winter moved that the House adjourn. The motion prevailed, and Speaker pro tempore Opatz declared the House stands adjourned until 2:30 p.m., Wednesday, April 16, 1997.

Edward A. Burdick, Chief Clerk, House of Representatives


Journal of the House - 39th Day - Top of Page 2116