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STATE OF MINNESOTA

Journal of the House

EIGHTIETH SESSION 1997

__________________

FORTY-THIRD DAY

Saint Paul, Minnesota, Monday, April 21, 1997

 

The House of Representatives convened at 11:00 a.m. and was called to order by Phil Carruthers, Speaker of the House.

Prayer was offered by Representative Gary Kubly, District 15B, Granite Falls, Minnesota.

The members of the House gave the pledge of allegiance to the flag of the United States of America.

The roll was called and the following members were present:

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

A quorum was present.

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


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REPORTS OF STANDING COMMITTEES

Skoglund from the Committee on Judiciary to which was referred:

H. F. No. 333, A bill for an act relating to public safety; requiring employers who employ peace officers and full-time firefighters injured or killed in the line of duty to continue to provide health insurance coverage; proposing coding for new law in Minnesota Statutes, chapter 299A.

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.

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

H. F. No. 535, A bill for an act relating to agriculture; conforming certain food rules with federal regulations; eliminating a requirement concerning llamas; providing for certain contracts and grants; amending Minnesota Statutes 1996, sections 17.03, by adding a subdivision; 17.116, subdivision 2; 31.101; 31.102, subdivision 1; 31.103, subdivision 1; and 31.104; repealing Minnesota Statutes 1996, section 17.456, subdivision 4.

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.

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

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

Reported the same back with the following amendments:

Page 6, line 7, delete "2003" and insert "2001"

Page 7, line 10, delete "2003" and insert "2001"

Page 7, line 19, delete "2003" and insert "2001"

Page 8, line 20, delete "$......." and insert "$295"

Page 9, line 12, delete "2003" and insert "2001"

Page 10, line 11, delete "2002" and insert "2000"

Page 12, line 5, delete "$....... is" and insert "(a) $88,000 in fiscal year 1998 and $194,000 in fiscal year 1999 are"

Page 12, after line 7, insert:

"(b) $34,000 in fiscal year 1998 and $56,000 in fiscal year 1999 are appropriated from the environmental fund to the director of the office of environmental assistance for the purpose of implementing section 1."

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.


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Skoglund from the Committee on Judiciary to which was referred:

H. F. No. 1004, A bill for an act relating to crimes; striking the requirement that a second chemical test be available to a person accused of driving while impaired; making various changes to the implied consent hearing process involving what must be stated in the petition, available discovery, the burden of proof, and the scope of the hearing; requiring health professionals to report injuries resulting from motor vehicle accidents that involve alcohol or controlled substances; imposing criminal penalties; amending Minnesota Statutes 1996, sections 169.123, subdivisions 3, 5c, and 6; 626.52; 626.53, subdivision 1; and 634.15, subdivision 2.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 1996, section 84.83, subdivision 5, is amended to read:

Subd. 5. [FINES AND FORFEITED BAIL.] The disposition of fines and forfeited bail collected from prosecutions of violations of sections 84.81 to 84.91, and violations of section 169.121 that involve off-road recreational vehicles, as defined in section 169.01, subdivision 84, are governed by section 97A.065.

Sec. 2. Minnesota Statutes 1996, section 84.91, subdivision 1, is amended to read:

Subdivision 1. [ACTS PROHIBITED.] (a) No person shall operate or be in physical control of any snowmobile or all-terrain vehicle anywhere in this state or on the ice of any boundary water of this state:

(1) when the person is under the influence of alcohol;

(2) when the person is under the influence of a controlled substance, as defined in section 152.01, subdivision 4;

(3) when the person is under the influence of a combination of any two or more of the elements named in clauses (1), (2), and (6);

(4) when the person's alcohol concentration is 0.10 or more;

(5) when the person's alcohol concentration as measured within two hours of the time of operating is 0.10 or more; or

(6) when the person is knowingly under the influence of any chemical compound or combination of chemical compounds that is listed as a hazardous substance in rules adopted under section 182.655 and that affects the nervous system, brain, or muscles of the person so as to substantially impair the person's ability to operate the snowmobile or all-terrain vehicle.

(b) No owner or other person having charge or control of any snowmobile or all-terrain vehicle shall authorize or permit any individual the person knows or has reason to believe is under the influence of alcohol or a controlled substance or other substance, as provided under paragraph (a), to operate the snowmobile or all-terrain vehicle anywhere in this state or on the ice of any boundary water of this state.

(c) (b) No owner or other person having charge or control of any snowmobile or all-terrain vehicle shall knowingly authorize or permit any person, who by reason of any physical or mental disability is incapable of operating the vehicle, to operate the snowmobile or all-terrain vehicle anywhere in this state or on the ice of any boundary water of this state.

(c) A person who operates or is in physical control of a snowmobile or all-terrain vehicle anywhere in this state or on the ice of any boundary water of this state while under the influence of alcohol, a controlled substance, or a hazardous substance, is subject to the provisions of chapter 169 relating to driving while impaired. In addition to the driver's license sanctions imposed under chapter 169, a person who is convicted of violating section 169.121 while operating a snowmobile or all-terrain vehicle, or who refuses to comply with a lawful request to submit to testing under section 169.123, shall be prohibited from operating the snowmobile or all-terrain vehicle for a period of one year. The commissioner shall notify the


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convicted person of the period during which the person is prohibited from operating a snowmobile or all-terrain vehicle. The court shall promptly forward to the commissioner and the department of public safety copies of all convictions and criminal and civil sanctions imposed under this section and chapter 169 relating to snowmobiles and all-terrain vehicles.

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

Sec. 3. Minnesota Statutes 1996, section 84.911, subdivision 7, is amended to read:

Subd. 7. [CORONER TO REPORT DEATH.] Every coroner or medical examiner shall report in writing to the department of natural resources the death of any person within the jurisdiction of the coroner or medical examiner as the result of an accident involving a an off-road recreational motor vehicle, as defined in section 84.90, subdivision 1 169.01, subdivision 84, and the circumstances of the accident. The report shall be made within 15 days after the death.

In the case of drivers killed in off-road recreational motor vehicle accidents and of the death of passengers 14 years of age or older, who die within four hours after accident, the coroner or medical examiner shall examine the body and shall make tests as are necessary to determine the presence and percentage concentration of alcohol, and drugs if feasible, in the blood of the victim. This information shall be included in each report submitted pursuant to the provisions of this subdivision and shall be tabulated by the department of natural resources. Periodically, the commissioner of natural resources must transmit a summary of the reports to the commissioner of public safety.

Sec. 4. Minnesota Statutes 1996, section 84.927, subdivision 1, is amended to read:

Subdivision 1. [REGISTRATION REVENUE.] Fees from the registration of all-terrain vehicles and the unrefunded gasoline tax attributable to all-terrain vehicle use under section 296.16, as well as the net proceeds from the sale of all-terrain vehicles forfeited pursuant to section 84.912 169.1217, shall be deposited in the state treasury and credited to the all-terrain vehicle account in the natural resources fund.

Sec. 5. Minnesota Statutes 1996, section 86B.331, subdivision 1, is amended to read:

Subdivision 1. [ACTS PROHIBITED.] (a) A person may not operate or be in physical control of a motorboat in operation on the waters of this state:

(1) when the person is under the influence of alcohol;

(2) when the person is under the influence of a controlled substance, as defined in section 152.01, subdivision 4;

(3) when the person is under the influence of a combination of any two or more of the elements named in clauses (1), (2), and (6);

(4) when the person's alcohol concentration is 0.10 or more;

(5) when the person's alcohol concentration as measured within two hours of the time of operating is 0.10 or more; or

(6) when the person is knowingly under the influence of any chemical compound or combination of chemical compounds that is listed as a hazardous substance in rules adopted under section 182.655 and that affects the nervous system, brain, or muscles of the person so as to substantially impair the person's ability to operate the motorboat.

(b) An owner or other person having charge or control of a motorboat may not authorize or allow an individual the person knows or has reason to believe is under the influence of alcohol or a controlled or other substance, as provided under paragraph (a), to operate the motorboat in operation on the waters of this state.

(c) (b) An owner or other person having charge or control of a motorboat may not knowingly authorize or allow a person, who by reason of a physical or mental disability is incapable of operating the motorboat, to operate the motorboat in operation on the waters of this state.


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(c) A person who operates or is in physical control of a motorboat on the waters of this state while under the influence of alcohol, a controlled substance, or a hazardous substance, is subject to the provisions of chapter 169 relating to driving while impaired. In addition to the driver's license sanctions imposed under chapter 169, a person who is convicted of violating section 169.121 while operating a motorboat, shall be prohibited from operating the motorboat on the waters of this state for a period of 90 days between May 1 and October 31, extending over two consecutive years if necessary. If the person operating the motorboat refuses to comply with a lawful demand to submit to testing under section 169.123, the person shall be prohibited from operating the motorboat for a period of one year. The commissioner shall notify the convicted person of the period during which the person is prohibited from operating a motorboat. The court shall promptly forward to the commissioner and the department of public safety copies of all convictions and criminal and civil sanctions imposed under this section and chapter 169 relating to motorboats.

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

(d) (e) For purposes of this subdivision, a motorboat "in operation" does not include a motorboat that is anchored, beached, or securely fastened to a dock or other permanent mooring.

Sec. 6. Minnesota Statutes 1996, section 86B.705, subdivision 2, is amended to read:

Subd. 2. [FINES AND BAIL MONEY.] (a) All fines, installment payments, and forfeited bail money collected from persons convicted of violations of this chapter, or of a violation of section 169.121 involving a motorboat, shall be paid to the county treasurer of the county where the violation occurred by the court administrator or other person collecting the money within 15 days after the last day of the month the money was collected.

(b) One-half of the receipts shall be credited to the general revenue fund of the county. The other one-half of the receipts shall be transmitted by the county treasurer to the commissioner of natural resources to be deposited in the state treasury and credited to the water recreation account for the purpose of boat and water safety.

Sec. 7. Minnesota Statutes 1996, section 97A.065, subdivision 2, is amended to read:

Subd. 2. [FINES AND FORFEITED BAIL.] (a) Fines and forfeited bail collected from prosecutions of violations of: the game and fish laws,; sections 84.091 to 84.15, and; sections 84.81 to 84.88,; section 169.121, when the violation involved an off-road recreational vehicle as defined in section 169.01, subdivision 84; chapter 348,; and any other law relating to wild animals, and or aquatic vegetation, must be paid to the treasurer of the county where the violation is prosecuted. The county treasurer shall submit one-half of the receipts to the commissioner and credit the balance to the county general revenue fund except as provided in paragraphs (b), (c), and (d).

(b) The commissioner must reimburse a county, from the game and fish fund, for the cost of keeping prisoners prosecuted for violations under this section if the county board, by resolution, directs: (1) the county treasurer to submit all fines and forfeited bail to the commissioner; and (2) the county auditor to certify and submit monthly itemized statements to the commissioner.

(c) The county treasurer shall indicate the amount of the receipts that are assessments or surcharges imposed under section 609.101 and shall submit all of those receipts to the commissioner. The receipts must be credited to the game and fish fund to provide peace officer training for persons employed by the commissioner who are licensed under section 626.84, subdivision 1, clause (c), and who possess peace officer authority for the purpose of enforcing game and fish laws.

(d) The county treasurer shall submit one-half of the receipts collected from prosecutions of violations of sections 84.81 to 84.91, and 169.121, including receipts that are assessments or surcharges imposed under section 609.101, to the commissioner and credit the balance to the county general fund. The commissioner shall credit these receipts to the snowmobile trails and enforcement account in the natural resources fund.

Sec. 8. Minnesota Statutes 1996, section 97B.065, subdivision 1, is amended to read:

Subdivision 1. [ACTS PROHIBITED.] (a) A person may not take wild animals with a firearm or by archery:

(1) when the person is under the influence of alcohol;


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(2) when the person is under the influence of a controlled substance, as defined in section 152.01, subdivision 4;

(3) when the person is under the influence of a combination of any two or more of the elements in clauses (1) and, (2), and (7);

(4) when the person's alcohol concentration is 0.10 0.08 or more;

(5) when the person's alcohol concentration as measured within two hours of the time of taking is 0.10 0.08 or more; or

(6) when the person's alcohol concentration is 0.04 or more at the time of taking, or as measured within two hours of the time of taking, if the person is under the age of 21 years at the time of the violation; or

(7) when the person is knowingly under the influence of any chemical compound or combination of chemical compounds that is listed as a hazardous substance in rules adopted under section 182.655 and that affects the nervous system, brain, or muscles of the person so as to substantially impair the person's ability to operate a firearm or bow and arrow.

(b) An owner or other person having charge or control of a firearm or bow and arrow may not authorize or permit an individual the person knows or has reason to believe is under the influence of alcohol or a controlled substance, as provided under paragraph (a), to possess the firearm or bow and arrow in this state or on a boundary water of this state.

Sec. 9. Minnesota Statutes 1996, section 97B.066, subdivision 1, is amended to read:

Subdivision 1. [MANDATORY CHEMICAL TESTING.] A person who takes wild animals with a bow or firearm in this state or on a boundary water of this state is required, subject to the provisions of this section, to take or submit to a test of the person's blood, breath, or urine for the purpose of determining the presence and amount of alcohol or a controlled substance. The test shall be administered at the direction of an officer authorized to make arrests under section 97B.065, subdivision 2. Taking or submitting to the test is mandatory when requested by an officer who has probable cause to believe the person was hunting in violation of section 97B.065, subdivision 1, paragraph (a), and one of the following conditions exists:

(1) the person has been lawfully placed under arrest for violating section 97B.065, subdivision 1, paragraph (a);

(2) the person has been involved while hunting in an accident resulting in property damage, personal injury, or death;

(3) the person has refused to take the preliminary screening test provided for in section 97B.065, subdivision 3; or

(4) the screening test was administered and indicated an alcohol concentration of 0.10 0.08 or more; or

(5) the screening test was administered and indicated an alcohol concentration of 0.04 or more, if the person is under the age of 21 years at the time of the violation.

Sec. 10. Minnesota Statutes 1996, section 97B.066, subdivision 5, is amended to read:

Subd. 5. [CHEMICAL TESTS.] Chemical tests administered under this section are governed by section 86B.335, subdivisions 8, 9, and 10 169.123, subdivisions 2b, 2c, and 3.

Sec. 11. Minnesota Statutes 1996, section 97B.066, is amended by adding a subdivision to read:

Subd. 7. [ADMINISTRATIVE REVIEW.] (a) At any time during the period of prohibition or revocation imposed under this section, the person may request in writing a review of the order imposing sanctions under this section. If the person makes a request for administrative review within 30 days following receipt of a notice and order imposing sanctions, the request shall stay imposition of the civil penalty. Upon receiving the request for review, the commissioner or the commissioner's designee shall review the order, the evidence upon which the order was based, and other material information brought to the attention of the commissioner and determine whether sufficient cause exists to sustain the order.


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(b) Within 15 days after receiving the request, the commissioner shall issue a written report ordering that the prohibition, revocation, or civil penalty be either sustained or rescinded. The review provided in this subdivision is not subject to the contested case provisions of the Administrative Procedure Act under chapter 14. The availability of administrative review does not have an effect upon the availability of judicial review under this section.

Sec. 12. Minnesota Statutes 1996, section 97B.066, is amended by adding a subdivision to read:

Subd. 8. [JUDICIAL REVIEW.] (a) Within 30 days following receipt of a notice and order imposing sanctions under this section, a person may petition the court for review. The petition must be filed with the district court administrator in the county where the incident occurred giving rise to the test demand and refusal, together with proof of service of a copy on the commissioner and the prosecuting authority for misdemeanor offenses for the jurisdiction in which the incident occurred. A responsive pleading is not required of the commissioner of natural resources, and court fees may not be charged for the appearance of the representative of the commissioner in the matter.

(b) The petition must be captioned in the name of the person making the petition as petitioner and the commissioner as respondent. The petition must state specifically the grounds upon which the petitioner seeks rescission of the order imposing sanctions.

(c) The filing of the petition does not stay the revocation or prohibition against hunting. However, the filing of a petition stays imposition of the civil penalty. The judicial review shall be conducted according to the rules of civil procedure.

Sec. 13. Minnesota Statutes 1996, section 97B.066, is amended by adding a subdivision to read:

Subd. 9. [HEARING.] (a) A hearing under this section must be before a district court judge in the county where the incident occurred which gave rise to the test demand and refusal. The hearing must be to the court and may be conducted at the same time as hearings upon pretrial motions in the criminal prosecution under section 97B.065. The hearing must be recorded. The commissioner must be represented by the prosecuting authority for misdemeanor offenses for the jurisdiction in which the incident occurred which gave rise to the test demand and refusal.

(b) The hearing must be held at the earliest practicable date and in any event no later than 60 days following the filing of the petition for review. The reviewing court may order a temporary stay of the balance of the prohibition or revocation if the hearing has not been conducted within 60 days after filing of the petition, upon the application of the petitioner and upon terms the court deems proper.

(c) The scope of the hearing must be limited to the issues of:

(1) whether the officer had probable cause to believe that the person violated section 97B.065;

(2) whether one of the conditions in subdivision 1 existed;

(3) whether the person was informed as prescribed in subdivision 3; and

(4) whether the person refused to submit to testing.

(d) It is an affirmative defense for the petitioner to prove that, at the time of the refusal, the petitioner's refusal to permit the test was based upon reasonable grounds.

(e) The court shall order that the prohibition or revocation be either sustained or rescinded and shall either sustain or rescind the civil penalty. The court shall forward a copy of the order to the commissioner.

Sec. 14. Minnesota Statutes 1996, section 97B.066, is amended by adding a subdivision to read:

Subd. 10. [PAYMENT OF CIVIL PENALTY.] The civil penalty imposed under subdivision 2 must be paid to the political subdivision that represents the commissioner on the petition for judicial review or, in the event that a petition is not filed, to the political subdivision that would have represented the commissioner had a petition been filed. If a person does not pay the civil penalty, the prohibition against hunting is automatically extended until the political subdivision reports to the commissioner in writing that the penalty has been paid.


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Sec. 15. Minnesota Statutes 1996, section 97B.066, is amended by adding a subdivision to read:

Subd. 11. [ENFORCEMENT OF CIVIL PENALTY.] (a) If a person does not pay the civil penalty imposed under subdivision 2 within 30 days of the date it was imposed, the prosecuting authority representing the commissioner may petition the district court in the county where the incident occurred to file the order imposing the civil penalty as an order of the court.

(b) Once entered, the order may be enforced in the same manner as a final judgment of the court. In addition to the penalty, attorney fees, costs, and interest may be assessed against any person who fails to pay the civil penalty.

Sec. 16. Minnesota Statutes 1996, section 168.042, subdivision 1, is amended to read:

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

(b) "Violator" means a person who was driving, operating, or in physical control of the motor vehicle when the violation occurred.

(c) "Violation" means includes:

(1) a violation of section 169.123 or an impaired driving conviction as defined in section 169.121, subdivision 3, that results in the revocation of a person's driver's license or driving privileges, and also includes an alcohol-related license revocation from another state;

(2) a violation of section 169.129; and

(3) a violation of section 171.24 by a person whose driver's license or driving privileges have been canceled under section 171.04, subdivision 1, clause (8).

(1) a violation of section 169.121 or 169.123, or a conforming ordinance from this state or a conforming statute or ordinance from another state, that results in the revocation of a person's driver's license or driving privileges:

(i) within five years of a prior impaired driving conviction or a prior license revocation; or

(ii) within 15 years of two or more prior impaired driving convictions, two or more prior license revocations, or one prior impaired driving conviction and one prior license revocation, based on separate incidents;

(2) a violation of section 169.121, subdivision 3, paragraph (c), clause (4);

(3) a violation of section 169.129; and

(4) a violation of section 171.24 by a person whose driver's license or driving privileges have been canceled under section 171.04, subdivision 1, clause (9).

(d) "Prior impaired driving conviction" has the meaning given it in section 169.121, subdivision 3.

(e) "Prior license revocation" has the meaning given it in section 169.121, subdivision 3.

Sec. 17. Minnesota Statutes 1996, section 168.042, subdivision 2, is amended to read:

Subd. 2. [VIOLATION; ISSUANCE OF IMPOUNDMENT ORDER.] The commissioner shall issue a registration plate impoundment order when:

(1) a person's driver's license or driving privileges are revoked for a third violation., as defined in subdivision 1, paragraph (c), clause (1), within five years or a fourth or subsequent violation, as defined in subdivision 1, paragraph (c), clause (1), within 15 years;


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(2) a person's driver's license or driving privileges are revoked for a violation of section 169.121, subdivision 3, paragraph (c), clause (4), within five years of one previous violation or within 15 years of two or more previous violations, as defined in subdivision 1, paragraph (c), clause (1); or

(3) a person is arrested for or charged with a violation described in subdivision 1, paragraph (c), clause (2) or (3).

The order shall require the impoundment of the registration plates of the self-propelled motor vehicle involved in the violation and all self-propelled motor vehicles owned by, registered, or leased in the name of the violator, including self-propelled motor vehicles registered jointly or leased in the name of the violator and another. An impoundment order shall not be issued for the registration plates of a rental vehicle as defined in section 168.041, subdivision 10, or a vehicle registered in another state.

Sec. 18. Minnesota Statutes 1996, section 168.042, subdivision 4, is amended to read:

Subd. 4. [PEACE OFFICER AS AGENT FOR NOTICE OF IMPOUNDMENT.] On behalf of the commissioner, a peace officer issuing a notice of intent to revoke and of revocation under section 169.123 for a violation shall also serve a notice of intent to impound and an order of impoundment if the violation is the third violation, as defined in subdivision 1, paragraph (c), clause (1), within five years or the fourth or subsequent violation, as defined in subdivision 1, paragraph (c), clause (1), within 15 years. On behalf of the commissioner, a peace officer who is arresting a person for or charging a person with a violation described in subdivision 1, paragraph (c), clause (2) or (3), shall also serve a notice of intent to impound and an order of impoundment. If the vehicle involved in the violation is accessible to the officer at the time the impoundment order is issued, the officer shall seize the registration plates subject to the impoundment order. The officer shall destroy all plates seized or impounded under this section. The officer shall send to the commissioner copies of the notice of intent to impound and the order of impoundment and a notice that registration plates impounded and seized under this section have been destroyed.

Sec. 19. Minnesota Statutes 1996, section 168.042, subdivision 9, is amended to read:

Subd. 9. [ADMINISTRATIVE REVIEW.] At any time during the effective period of an impoundment order, a person may request in writing a review of the impoundment order by the commissioner. On receiving a request, the commissioner or the commissioner's designee shall review the order, the evidence upon which the order was based, and any other material information brought to the attention of the commissioner, and determine whether sufficient cause exists to sustain the order. The commissioner shall report in writing the results of the review within 15 days of receiving the request. The review provided in this subdivision is not subject to the contested case provisions of the administrative procedure act in sections 14.01 to 14.69. As a result of this review, the commissioner may authorize the issuance at no cost of new registration plates to the registered owner of the vehicle if the registered owner's license or driving privileges were not revoked under section 169.123 or as a result of an impaired driving conviction as defined in section 169.121, subdivision 3 the violation.

Review under this subdivision shall take place, if possible, at the same time as any administrative review of the person's license revocation under section 169.123, subdivision 5b.

Sec. 20. Minnesota Statutes 1996, section 168.042, subdivision 11, is amended to read:

Subd. 11. [RESCISSION OF REVOCATION; DISMISSAL OF CHARGES OR ACQUITTAL; ISSUANCE OF NEW PLATES.] If:

(1) the driver's license revocation that is the basis for an impoundment order is rescinded,;

(2) the charges for the violation have been dismissed with prejudice; or

(3) the violator has been acquitted of the violation;

then the registrar of motor vehicles shall issue new registration plates for the vehicle at no cost, when the registrar receives an application that includes a copy of the order rescinding the driver's license revocation, the order dismissing the charges, or the judgment of acquittal. If the impoundment order was based on a violation described in subdivision 1, paragraph (c),


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clause (2) or (3), and the charges have been dismissed with prejudice or the violator has been acquitted of the violation, the registrar of motor vehicles shall issue new registration plates for the vehicle at no cost, when the registrar receives an application that includes a copy of the order dismissing the charges or a copy of the judgment of acquittal.

Sec. 21. Minnesota Statutes 1996, section 168.042, is amended by adding a subdivision to read:

Subd. 11a. [CHARGE FOR REINSTATEMENT OF REGISTRATION PLATES IN CERTAIN SITUATIONS.] When the registrar of motor vehicles reinstates a person's registration plates after impoundment for reasons other than those described in subdivision 11, the registrar shall charge the person $25. Money raised under this subdivision must be paid into the state treasury and credited to the highway user tax distribution fund.

Sec. 22. Minnesota Statutes 1996, section 169.01, is amended by adding a subdivision to read:

Subd. 84. [OFF-ROAD RECREATIONAL VEHICLE.] "Off-road recreational vehicle" means an off-highway motorcycle as defined in section 84.787, subdivision 7; off-road vehicle as defined in section 84.797, subdivision 7; snowmobile as defined in section 84.81, subdivision 3; and all-terrain vehicle as defined in section 84.92, subdivision 8.

Sec. 23. Minnesota Statutes 1996, section 169.01, is amended by adding a subdivision to read:

Subd. 85. [MOTORBOAT.] "Motorboat" means a watercraft propelled in any manner by machinery, including watercraft temporarily equipped with detachable motors.

Sec. 24. Minnesota Statutes 1996, section 169.01, is amended by adding a subdivision to read:

Subd. 86. [DRUG RECOGNITION EVALUATION.] "Drug recognition evaluation" means the systematic, standardized, investigative procedure defined by the National Highway Traffic Safety Administration that is used to determine whether a driver is impaired, whether the impairment relates to drugs or a medical condition and, if drug-related, the categories of drugs likely to have caused the impairment.

Sec. 25. Minnesota Statutes 1996, section 169.01, is amended by adding a subdivision to read:

Subd. 87. [DRUG RECOGNITION EXPERT.] "Drug recognition expert" means a peace officer who is certified by the International Association of Chiefs of Police to conduct drug recognition evaluations.

Sec. 26. Minnesota Statutes 1996, section 169.121, subdivision 1, is amended to read:

Subdivision 1. [CRIME; ACTS PROHIBITED.] It is a crime for any person to drive, operate, or be in physical control of any motor vehicle within this state or upon the ice of any boundary water of this state under any of the following circumstances:

(a) when the person is under the influence of alcohol;

(b) when the person is under the influence of a controlled substance;

(c) when the person is under the influence of a combination of any two or more of the elements named in clauses (a), (b), and (f) (h);

(d) when the person's alcohol concentration is 0.10 0.08 or more but less than 0.20;

(e) when the person's alcohol concentration as measured within two hours of the time of driving, operating, or being in physical control of the motor vehicle is 0.10 0.08 or more but less than 0.20;

(f) when the person's alcohol concentration is 0.04 or more but less than 0.20 at the time of driving, operating, or being in physical control of the motor vehicle, or as measured within two hours of the time of driving, operating, or being in physical control of the motor vehicle, if the person is under the age of 21 years at the time of the violation;


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(g) when the person's alcohol concentration at the time, or as measured within two hours of the time, of driving, operating, or being in physical control of the motor vehicle is 0.20 or more;

(h) when the person is knowingly under the influence of a hazardous substance that affects the nervous system, brain, or muscles of the person so as to substantially impair the person's ability to drive or operate the motor vehicle; or

(g) (i) when the person's body contains any amount of a controlled substance listed in schedule I or II other than marijuana or tetrahydrocannabinols.

Sec. 27. Minnesota Statutes 1996, section 169.121, subdivision 1c, is amended to read:

Subd. 1c. [CONDITIONAL RELEASE.] (a) Unless maximum bail is imposed under section 629.471, subdivision 2, a person charged with a crime listed in this paragraph may be released from detention only if the person agrees to abstain from alcohol and submit to a program of electronic alcohol monitoring involving at least daily measurements of the person's alcohol concentration pending resolution of the charge. This paragraph applies only when electronic alcohol monitoring equipment is available to the court and only when a person is charged with:

(1) a violation of subdivision 1 or 1a within five years of two prior impaired driving convictions, or within ten years of three or more prior impaired driving convictions;

(2) a violation of subdivision 1 or 1a, if the person is under the age of 19 years;

(3) a violation of subdivision 1 or 1a, while the person's driver's license or driving privileges have been canceled under section 171.04, subdivision 1, clause (9);

(4) a violation of subdivision 1, clause (g); or

(5) a violation of section 169.129.

If the defendant is convicted of the charged offense, the court may require partial or total reimbursement from the person for the cost of the electronic alcohol monitoring.

(b) Unless maximum bail is imposed under section 629.471, subdivision 2, a person charged with violating subdivision 1 or 1a within ten years of the first of three prior impaired driving convictions or within the person's lifetime after four or more prior impaired driving convictions may be released from detention only if the following conditions are imposed in addition to the condition imposed in paragraph (a), if applicable, and any other conditions of release ordered by the court:

(1) the impoundment of the registration plates of the vehicle used to commit the violation, unless already impounded;

(2) if the vehicle used to commit the violation was an off-road recreational vehicle or a motorboat, the impoundment of the off-road recreational vehicle or motorboat;

(3) a requirement that the alleged violator report weekly to a probation agent;

(3) (4) a requirement that the alleged violator abstain from consumption of alcohol and controlled substances and submit to random, weekly alcohol tests or urine analyses at least weekly; and

(4) (5) a requirement that, if convicted, the alleged violator reimburse the court or county for the total cost of these services.

(c) For purposes of this subdivision, "prior impaired driving conviction" has the meaning given in subdivision 3.

Sec. 28. Minnesota Statutes 1996, section 169.121, subdivision 2, is amended to read:

Subd. 2. [EVIDENCE.] (a) Upon the trial of any prosecution arising out of acts alleged to have been committed by any person arrested for driving, operating, or being in physical control of a motor vehicle in violation of subdivision 1, the court may admit evidence of the presence or amount of alcohol, controlled substances, or hazardous substances in the person's blood, breath, or urine as shown by an analysis of those items.


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(b) For the purposes of this subdivision, evidence that there was at the time an alcohol concentration of 0.04 or more is relevant evidence in indicating whether or not the person was under the influence of alcohol.

(c) Evidence of the refusal to take a test is admissible into evidence in a prosecution under this section or an ordinance in conformity with it.

(d) If proven by a preponderance of the evidence, it shall be an affirmative defense to a violation of subdivision 1, clause (e), (f), or (g), that the defendant consumed a sufficient quantity of alcohol after the time of actual driving, operating, or physical control of a motor vehicle and before the administration of the evidentiary test to cause the defendant's alcohol concentration to exceed 0.10 the level specified in the applicable clause. Evidence that the defendant consumed alcohol after the time of actual driving, operating, or being in physical control of a motor vehicle may not be admitted in defense to any alleged violation of this section unless notice is given to the prosecution prior to the omnibus or pretrial hearing in the matter.

(e) If proven by a preponderance of the evidence, it shall be an affirmative defense to a violation of subdivision 1, clause (g) (i), that the defendant used the controlled substance according to the terms of a prescription issued for the defendant in accordance with sections 152.11 and 152.12.

(f) The preceding provisions do not limit the introduction of any other competent evidence bearing upon the question of whether the person violated this section, including tests obtained more than two hours after the alleged violation and results obtained from partial tests on an infrared breath-testing instrument. A result from a partial test is the measurement obtained by analyzing one adequate breath sample, as defined in section 169.123, subdivision 2b, paragraph (b).

Sec. 29. Minnesota Statutes 1996, section 169.121, subdivision 3, is amended to read:

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

(1) "Prior impaired driving conviction" means a prior conviction under:

(i) this section; Minnesota Statutes 1996, section 84.91, subdivision 1, paragraph (a);, or 86B.331, subdivision 1, paragraph (a); section 84.91, subdivision 1a; section 86B.331, subdivision 1a; section 169.1211; section 169.129; or section 360.0752;

(ii) section 609.21, subdivision 1, clauses (2) to (6); 609.21, subdivision 2, clauses (2) to (6); 609.21, subdivision 2a, clauses (2) to (6); 609.21, subdivision 2b, clauses (2) to (6); 609.21, subdivision 3, clauses (2) to (6); 609.21, or subdivision 4, clauses (2) to (6); or

(iii) an ordinance from this state, or a statute or ordinance from another state, in conformity with any of them provision listed in item (i) or (ii).

A prior impaired driving conviction also includes a prior juvenile adjudication that would have been a prior impaired driving conviction if committed by an adult; and.

(2) "Prior license revocation" means a driver's license suspension, revocation, or cancellation, denial, or disqualification under:

(i) this section; or section 169.1211, 169.123;, 171.04;, 171.14;, 171.16;, 171.165, 171.17;, or 171.18 because of an alcohol-related incident;

(ii) section 609.21, subdivision 1, clauses (2) to (6); 609.21, subdivision 2, clauses (2) to (6); 609.21, subdivision 2a, clauses (2) to (6); 609.21, subdivision 2b, clauses (2) to (6); 609.21, subdivision 3, clauses (2) to (6); or 609.21, subdivision 4, clauses (2) to (6); or

(iii) an ordinance from this state, or a statute or ordinance from another state, in conformity with any of them provision listed in item (i) or (ii) .


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"Prior license revocation" also means the revocation of snowmobile or all-terrain vehicle operating privileges under section 84.911, or motorboat operating privileges under section 86B.335, for violations that occurred on or after August 1, 1995.

(b) A person who violates subdivision 1, clause (a), (b), (c), (d), (e), (f), (h), or (i), or subdivision 1a, or an ordinance in conformity with either any of them, is guilty of a misdemeanor.

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

(1) the person violates subdivision 1, clause (g);

(2) the person violates subdivision 1, clause (a), (b), (c), (d), (e), (f), (h), or (i), within five years of a prior impaired driving conviction, or within ten years of the first of two or more prior impaired driving convictions;

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

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

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

A person convicted of a gross misdemeanor under this paragraph is subject to the mandatory penalties provided in subdivision 3d.

(d) A person is guilty of an enhanced gross misdemeanor under any of the following circumstances:

(1) the person violates subdivision 1, clause (g), or commits a violation described in paragraph (c), clause (4) or (5), within ten years of a prior impaired driving conviction, or within ten years of the first of two prior impaired driving convictions;

(2) the person violates subdivision 1, clause (a), (b), (c), (d), (e), (f), (h), or (i), within ten years of the first of two or more prior impaired driving convictions; or

(3) the person violates subdivision 1a within ten years of the first of two or more prior impaired driving convictions, two or more prior license revocations, or any combination of two or more prior impaired driving convictions and prior license revocations, based on separate incidents.

A person convicted of an enhanced gross misdemeanor under this paragraph may be sentenced to imprisonment in a local correctional facility for not more than two years or to payment of a fine of not more than $3,000, or both. Additionally, the person is subject to the applicable mandatory penalties provided in subdivision 3e.

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

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

(g) When the court stays the sentence of a person convicted under this section, the length of the stay is governed by section 609.135, subdivision 2.


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(f) (h) The court may impose consecutive sentences for offenses arising out of a single course of conduct as permitted in section 609.035, subdivision 2.

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

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

Sec. 30. Minnesota Statutes 1996, section 169.121, subdivision 3b, is amended to read:

Subd. 3b. [HABITUAL OFFENDERS; CHEMICAL USE ASSESSMENT.] The court must order a person to submit to the level of care recommended in the chemical use assessment if a the person has been convicted under of violating:

(1) subdivision 1, subdivision 1a, clause (g); or

(2) subdivision 1, clause (a), (b), (c), (d), (e), (f), (h), or (i), subdivision 1a, section 169.129, an ordinance in conformity with any of them, or a statute or ordinance from another state in conformity with any of them, and if the person is then convicted of violating subdivision 1, subdivision 1a, section 169.129, or an ordinance in conformity with any of them (1) once:

(i) within five years of the first a prior impaired driving conviction or (2) two or more times a prior license revocation; or

(ii) within ten years after the first conviction, the court must order the person to submit to the level of care recommended in the chemical use assessment required under section 169.126 of two or more prior impaired driving convictions, two or more prior license revocations, or a prior impaired driving conviction and a prior license revocation, based on separate incidents.

Sec. 31. Minnesota Statutes 1996, section 169.121, subdivision 3c, is amended to read:

Subd. 3c. [NOTICE OF ENHANCED PENALTIES.] When a court sentences a person for a misdemeanor or gross misdemeanor violation of this section, it shall inform the defendant of the statutory provisions that provide for enhancement of criminal penalties for repeat violators. The failure of a court to provide this information to a defendant does not affect the future applicability of these enhanced penalties to that defendant.

Sec. 32. Minnesota Statutes 1996, section 169.121, is amended by adding a subdivision to read:

Subd. 3d. [GROSS MISDEMEANORS; MANDATORY PENALTIES.] (a) The mandatory penalties in this subdivision apply to persons convicted of a gross misdemeanor under subdivision 3, paragraph (c), or section 169.129.

(b) A person who is convicted of a gross misdemeanor under subdivision 3, paragraph (c), or is convicted of a gross misdemeanor violation of section 169.129 within five years of a prior impaired driving conviction or prior license revocation, must be sentenced to a minimum of 30 days imprisonment, at least 48 hours of which must be served consecutively, or to eight hours of community work service for each day less than 30 days that the person is ordered to serve in jail. Notwithstanding section 609.135, the above sentence must be executed, unless the court departs from the mandatory minimum sentence under paragraph (c) or (d).

(c) Prior to sentencing, the prosecutor may file a motion to have the defendant sentenced without regard to the mandatory minimum sentence established by this subdivision. The motion must be accompanied by a statement on the record of the reasons for it. When presented with the prosecutor's motion and if it finds that substantial mitigating factors exist, the court shall sentence the defendant without regard to the mandatory minimum sentence established by this subdivision.


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(d) The court may, on its own motion, sentence the defendant without regard to the mandatory minimum sentence established by this subdivision if it finds that substantial mitigating factors exist and if its sentencing departure is accompanied by a statement on the record of the reasons for it. The court also may sentence the defendant without regard to the mandatory minimum sentence established by this subdivision if the defendant is sentenced to probation and ordered to participate in a program established under section 169.1265.

(e) When any portion of the sentence required by this subdivision is not executed, the court should impose a sentence that is proportional to the extent of the offender's prior criminal and moving traffic violation record. Any sentence required under this subdivision must include a mandatory sentence that is not subject to suspension or a stay of imposition or execution, and that includes incarceration for not less than 48 consecutive hours or at least 80 hours of community work service.

Sec. 33. Minnesota Statutes 1996, section 169.121, is amended by adding a subdivision to read:

Subd. 3e. [ENHANCED GROSS MISDEMEANORS; MANDATORY PENALTIES.] (a) The mandatory penalties in this subdivision apply to persons who are convicted of an enhanced gross misdemeanor under subdivision 3, paragraph (d), or section 169.129. Notwithstanding section 609.135, these penalties must be imposed and executed.

(b) A person who is convicted of an enhanced gross misdemeanor under the circumstances described in subdivision 3, paragraph (d), clause (1), shall be sentenced as follows:

(1) if the person has one prior impaired driving conviction within the past ten years, the person must be sentenced to a minimum of 90 days of incarceration, at least 30 days of which must be served consecutively in a local correctional facility. The court may order that the person serve not more than 60 days of this minimum penalty on home detention or in an intensive probation program described in section 169.1265;

(2) if the person has two prior impaired driving convictions within the past ten years, the person must be sentenced to a minimum of 180 days of incarceration, at least 30 days of which must be served consecutively in a local correctional facility. The court may order that the person serve not more than 150 days of this minimum penalty on home detention or in an intensive probation program described in section 169.1265; or

(3) if the person has three prior impaired driving convictions within the past 15 years, or four or more prior impaired driving convictions within the person's lifetime, the person must be sentenced to a minimum of one year of incarceration, at least 60 days of which must be served consecutively in a local correctional facility. The court may order that the person serve the remainder of this minimum penalty on intensive probation using an electronic monitoring system or, if such a system is unavailable, on home detention.

(c) A person who is convicted of an enhanced gross misdemeanor under the circumstances described in subdivision 3, paragraph (d), clause (2) or (3), or under section 169.129, shall be sentenced as follows:

(1) if the person has two prior impaired driving convictions, two prior license revocations, or a combination of the two, within the past ten years, the person must be sentenced to a minimum of 90 days incarceration, at least 30 days of which must be served consecutively in a local correctional facility. The court may order that the person serve not more than 60 days of this minimum penalty on home detention or in an intensive probation program described in section 169.1265;

(2) if the person has three prior impaired driving convictions, three prior license revocations, or a combination of the two, within the past ten years, the person must be sentenced to a minimum of 180 days of incarceration, at least 30 days of which must be served consecutively in a local correctional facility. The court may order that the person serve not more than 150 days of this minimum penalty on home detention or in an intensive probation program described in section 169.1265; or

(3) if the person has four prior impaired driving convictions within the past 15 years, or five or more prior impaired driving convictions within the person's lifetime, the person must be sentenced to a minimum of one year of incarceration, at least 60 days of which must be served consecutively in a local correctional facility. The court may order that the person serve the remainder of this minimum penalty on intensive probation using an electronic monitoring system or, if such a system is unavailable, on home detention.


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Sec. 34. Minnesota Statutes 1996, section 169.121, is amended by adding a subdivision to read:

Subd. 3f. [LONG-TERM MONITORING.] (a) This subdivision applies to a person convicted of:

(1) a violation of subdivision 1 or 1a within five years of two prior impaired driving convictions, or within ten years of three or more prior impaired driving convictions;

(2) a violation of subdivision 1 or 1a, if the person is under the age of 19 years;

(3) a violation of subdivision 1 or 1a, while the person's driver's license or driving privileges have been canceled under section 171.04, subdivision 1, clause (9); or

(4) a violation of section 169.129.

(b) When the court sentences a person described in paragraph (a) to a stayed sentence and when electronic monitoring equipment is available to the court, the court shall require that the person participate in a program of electronic alcohol monitoring in addition to any other conditions of probation or jail time it imposes. During the first one-third of the person's probationary term, the electronic alcohol monitoring must be continuous and involve measurements of the person's alcohol at least three times a day. During the remainder of the person's probationary term, the electronic alcohol monitoring may be intermittent, as determined by the court. The court may require partial or total reimbursement from the person for the cost of the electronic alcohol monitoring.

(c) If the person has been convicted of violating subdivision 1 or 1a within ten years of three or more prior impaired driving convictions, the court shall hold a hearing every six months to review the defendant's conditions of probation and to determine whether the conditions should be changed. The hearing shall be conducted in accordance with section 609.14, except that the notice of the hearing sent under section 609.14, subdivision 2, need not specify grounds for probation revocation.

(d) For purposes of this subdivision, "prior impaired driving conviction" has the meaning given in subdivision 3.

Sec. 35. Minnesota Statutes 1996, section 169.121, subdivision 4, is amended to read:

Subd. 4. [ADMINISTRATIVE PENALTIES.] (a) The commissioner of public safety shall revoke the driver's license of a person convicted of violating this section or an ordinance in conformity with it as follows:

(1) for an offense under subdivision 1:, not less than 30 days;

(2) for an offense under subdivision 1a:, not less than 90 days;

(3) for an offense occurring within five years after a prior impaired driving conviction or a prior license revocation, or any time after two or more prior impaired driving convictions, two or more prior license revocations, or a prior impaired driving conviction and a prior license revocation, based on separate incidents:

(i) if the current conviction is for a violation of subdivision 1, not less than 180 days and until the court has certified that treatment or rehabilitation has been successfully completed where prescribed in accordance with section 169.126; or

(ii) if the current conviction is for a violation of subdivision 1a, not less than one year and until the court has certified that treatment or rehabilitation has been successfully completed where prescribed in accordance with section 169.126;

(4) for an offense occurring a violation of subdivision 1, clause (g), any time after a prior impaired driving conviction or a prior license revocation, not less than one year, together with denial under section 171.04, subdivision 1, clause (9), until rehabilitation is established in accordance with standards established by the commissioner;

(5) for a violation of subdivision 1, clause (a), (b), (c), (d), (e), (f), (h), or (i), or subdivision 1a, within five years after the first of two prior impaired driving convictions or, two prior license revocations:, or a prior impaired driving conviction and a prior license revocation, based on separate incidents, not less than one year, together with denial under section 171.04, subdivision 1, clause (8) (9) , until rehabilitation is established in accordance with standards established by the commissioner;


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(5) (6) for an offense occurring a violation of subdivision 1, clause (g), any time after two or more prior impaired driving convictions, two or more prior license revocations, or a prior impaired driving conviction and a prior license revocation, based on separate incidents, not less than two years, together with denial under section 171.04, subdivision 1, clause (9), until rehabilitation is established in accordance with standards established by the commissioner; or

(7) for a violation of subdivision 1, clause (a), (b), (c), (d), (e), (f), (h), or (i), or subdivision 1a, any time after three or more prior impaired driving convictions, three or more prior license revocations:, or any combination of three or more prior impaired driving convictions and prior license revocations, based on separate incidents, not less than two years, together with denial under section 171.04, subdivision 1, clause (8) (9), until rehabilitation is established in accordance with standards established by the commissioner.

(b) If the person convicted of violating this section is was under the age of 21 years at the time of the violation, the commissioner of public safety shall revoke the offender's driver's license or operating privileges for a period of six months or for the appropriate period of time under paragraph (a), clauses (1) to (5) (7), for the offense committed, whichever is the greatest period.

(c) For purposes of this subdivision, a juvenile adjudication under this section, section 169.129, an ordinance in conformity with either of them, or a statute or ordinance from another state in conformity with either of them is an offense.

(d) Whenever department records show that the violation involved personal injury or death to any person, not less than 90 additional days shall be added to the base periods provided above.

(e) Except for a person whose license has been revoked under paragraph (b), and except for a person who commits a violation described in subdivision 1, clause (g), or subdivision 3, paragraph (c), clause (4), (child endangerment), any person whose license has been revoked pursuant to section 169.123 as the result of the same incident, and who does not have a prior impaired driving conviction or prior license revocation within the previous ten years, is subject to the mandatory revocation provisions of paragraph (a), clause (1) or (2), in lieu of the mandatory revocation provisions of section 169.123.

(f) As used in this subdivision, the terms "prior impaired driving conviction" and "prior license revocation" have the meanings given in subdivision 3, paragraph (a).

Sec. 36. Minnesota Statutes 1996, section 169.121, subdivision 6, is amended to read:

Subd. 6. [PRELIMINARY SCREENING TEST.] (a) When a peace officer has reason to believe from the manner in which a person is driving, operating, controlling, or acting upon departure from a motor vehicle, or has driven, operated, or controlled a motor vehicle, that the driver may be violating or has violated subdivision 1 or section 169.1211, the officer may require the driver to provide a sample of the driver's breath for a preliminary screening test using a device approved by the commissioner of public safety for this purpose.

(b) The results of this preliminary screening test shall be used for the purpose of deciding whether an arrest should be made and whether to require the tests authorized in section 169.123, but shall not be used in any court action except the following:

(1) to prove that a test was properly required of a person pursuant to section 169.123, subdivision 2;

(2) to prove the element of probable cause in a criminal prosecution for a violation of subdivision 1a;

(3) in a civil action arising out of the operation or use of the motor vehicle;

(3) (4) in an action for license reinstatement under section 171.19; or

(4) (5) in a prosecution or juvenile court proceeding concerning a violation of section 169.1218 or 340A.503, subdivision 1, paragraph (a), clause (2);

(6) in a prosecution under section 169.1211, subdivision 1, paragraph (b), or 171.30; or


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(7) in a prosecution for a violation of a restriction on a driver's license under section 171.09, which provides that the license holder may not use or consume any amount of alcohol or a controlled substance.

(c) Following the screening test additional tests may be required of the driver pursuant to the provisions of section 169.123.

(d) The driver who refuses to furnish a sample of the driver's breath is subject to the provisions of section 169.123 unless, in compliance with section 169.123, the driver submits to a blood, breath or urine test to determine the presence or amount of alcohol, controlled substances, or hazardous substances.

Sec. 37. Minnesota Statutes 1996, section 169.121, subdivision 11, is amended to read:

Subd. 11. [APPLICABILITY TO RECREATIONAL VEHICLES.] For purposes of this section and section 169.123, "motor vehicle" does not include a snowmobile as defined in section 84.81, or an all-terrain vehicle as defined in section 84.92. This subdivision does not prevent the commissioner of public safety from recording on driving records violations involving snowmobiles and all-terrain vehicles includes off-road recreational vehicles and motorboats.

Sec. 38. Minnesota Statutes 1996, section 169.1211, subdivision 1, is amended to read:

Subdivision 1. [CRIME CRIMES.] (a) It is a misdemeanor crime for any person to drive, operate, or be in physical control of any commercial motor vehicle within this state or upon the ice of any boundary water of this state:

(1) when the person's alcohol concentration is 0.04 or more but less than 0.20; or

(2) when the person's alcohol concentration as measured within two hours of the time of driving, operating, or being in physical control of the commercial motor vehicle is 0.04 or more but less than 0.20; or

(3) when the person's alcohol concentration at the time, or as measured within two hours of the time, of driving, operating, or being in physical control of the commercial motor vehicle is 0.20 or more.

(b) It is a crime for any person to drive, operate, or be in physical control of any class of school bus or Head Start bus within this state or upon the ice of any boundary water of this state when there is physical evidence present in the person's body of the consumption of any alcohol.

Sec. 39. Minnesota Statutes 1996, section 169.1211, is amended by adding a subdivision to read:

Subd. 3a. [CRIMINAL PENALTY.] (a) Except as otherwise provided in paragraph (b), a person who violates subdivision 1, or an ordinance in conformity with it, is guilty of a misdemeanor.

(b) A person who violates subdivision 1, paragraph (a), clause (3), is guilty of a gross misdemeanor.

Sec. 40. Minnesota Statutes 1996, section 169.1217, is amended to read:

169.1217 [VEHICLE FORFEITURE FOR COMMISSION OF DESIGNATED OFFENSES AND LICENSE REVOCATIONS.]

Subdivision 1. [DEFINITIONS.] As used in this section, the following terms have the meanings given them:

(a) "Appropriate agency" means a law enforcement agency that has the authority to make an arrest for a violation of a designated offense or to require a test under section 169.123.

(b) "Designated license revocation" includes a license revocation under section 169.123:

(1) within five years of two prior impaired driving convictions, two prior license revocations, or any combination of two prior impaired driving convictions and prior license revocations, based on separate incidents; or


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(2) within 15 years of the first of three or more prior impaired driving convictions, three or more prior license revocations, or any combination of three or more prior impaired driving convictions and prior license revocations, based on separate incidents.

(c) "Designated offense" includes a violation of:

(1) section 169.121, or an ordinance from this state or a statute or ordinance from another state in conformity with it, or 169.129:

(1) (i) within five years of three two prior impaired driving convictions or three, two prior license revocations, or one prior impaired driving conviction and one prior license revocation, based on separate incidents;

(2) (ii) within 15 years of the first of four three or more prior impaired driving convictions or the first of four, three or more prior license revocations, or any combination of three or more prior impaired driving convictions and prior license revocations, based on separate incidents;

(3) (iii) by a person whose driver's license or driving privileges have been canceled under section 171.04, subdivision 1, clause (8) (9); or

(4) (iv) by a person who is subject to a restriction on the person's driver's license under section 171.09 which provides that the person may not use or consume any amount of alcohol or a controlled substance.; or

"Designated offense" also includes a violation of (2) section 169.121, subdivision 3, paragraph (c), clause (4) (5):

(1) (i) within five years of two a prior impaired driving convictions conviction or two a prior license revocations based on separate incidents revocation; or

(2) (ii) within 15 years of the first of three two or more prior impaired driving convictions or the first of three, two or more prior license revocations, or a prior impaired driving conviction and a prior license revocation, based on separate incidents.

(c) (d) "Motor vehicle" and "vehicle" have the meaning given "motor vehicle" in section 169.121, subdivision 11. The terms do not include a vehicle which is stolen or taken in violation of the law.

(d) (e) "Owner" means the registered owner of the motor vehicle according to records of the department of public safety and includes a lessee of a motor vehicle if the lease agreement has a term of 180 days or more.

(e) (f) "Prior impaired driving conviction" has the meaning given it in section 169.121, subdivision 3. A prior impaired driving conviction also includes a prior juvenile adjudication that would have been a prior impaired driving conviction if committed by an adult.

(f) (g) "Prior license revocation" has the meaning given it in section 169.121, subdivision 3.

(g) (h) "Prosecuting authority" means the attorney in the jurisdiction in which the designated offense occurred who is responsible for prosecuting violations of a designated offense.

Subd. 2. [SEIZURE.] A motor vehicle subject to forfeiture under this section may be seized by the appropriate agency upon process issued by any court having jurisdiction over the vehicle. Property may be seized without process if:

(1) the seizure is incident to a lawful arrest or a lawful search;

(2) the vehicle subject to seizure has been the subject of a prior judgment in favor of the state in a criminal injunction or forfeiture proceeding under this section; or

(3) the appropriate agency has probable cause to believe that the delay occasioned by the necessity to obtain process would result in the removal or destruction of the vehicle. If property is seized without process under this clause (3), the prosecuting authority must institute a forfeiture action under this section as soon as is reasonably possible.


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Subd. 3. [RIGHT TO POSSESSION VESTS IMMEDIATELY; CUSTODY OF SEIZED VEHICLE.] All right, title, and interest in a vehicle subject to forfeiture under this section vests in the appropriate agency upon commission of the conduct resulting in the designated offense or designated license revocation giving rise to the forfeiture. Any vehicle seized under this section is not subject to replevin, but is deemed to be in the custody of the appropriate agency subject to the orders and decrees of the court having jurisdiction over the forfeiture proceedings. When a vehicle is so seized, the appropriate agency may:

(1) place the vehicle under seal;

(2) remove the vehicle to a place designated by it;

(3) place a disabling device on the vehicle; and

(4) take other steps reasonable and necessary to secure the vehicle and prevent waste.

Subd. 4. [BOND BY OWNER FOR POSSESSION.] If the owner of a vehicle that has been seized under this section seeks possession of the vehicle before the forfeiture action is determined, the owner may, subject to the approval of the appropriate agency, give security or post bond payable to the appropriate agency in an amount equal to the retail value of the seized vehicle. On posting the security or bond, the seized vehicle may be returned to the owner only if a disabling device is attached to the vehicle. The forfeiture action shall proceed against the security as if it were the seized vehicle.

Subd. 5. [EVIDENCE.] Certified copies of court records and motor vehicle and driver's license records concerning prior impaired driving convictions and prior license revocations are admissible as substantive evidence where necessary to prove the commission of a designated offense or the occurrence of a designated license revocation.

Subd. 6. [MOTOR VEHICLES SUBJECT TO FORFEITURE.] A motor vehicle is subject to forfeiture under this section if it was used in the commission of a designated offense or was used in conduct resulting in a designated license revocation.

Subd. 7. [LIMITATIONS ON FORFEITURE OF MOTOR VEHICLES.] (a) A vehicle is subject to forfeiture under this section only if:

(1) the driver is convicted of the designated offense upon which the forfeiture is based; or

(2) the driver fails to appear with respect to the designated offense charge in violation of section 609.49; or

(3) the driver's conduct results in a designated license revocation and the driver either fails to seek administrative or judicial review of the revocation in a timely manner as required by section 169.123, subdivision 5b or 5c, or the revocation is sustained under section 169.123, subdivision 5b or 6.

(b) A vehicle encumbered by a bona fide security interest, or subject to a lease that has a term of 180 days or more, is subject to the interest of the secured party or lessor unless the party or lessor had knowledge of or consented to the act upon which the forfeiture is based.

(c) Notwithstanding paragraph (b), the secured party's or lessor's interest in a vehicle is not subject to forfeiture based solely on the secured party's or lessor's knowledge of the act or omission upon which the forfeiture is based if the secured party or lessor took reasonable steps to terminate use of the vehicle by the offender.

(d) A motor vehicle is subject to forfeiture under this section only if its owner knew or should have known of the unlawful use or intended use.

(e) A vehicle subject to a security interest, based upon a loan or other financing arranged by a financial institution, is subject to the interest of the financial institution.

Subd. 7a. [ADMINISTRATIVE FORFEITURE PROCEDURE.] (a) A motor vehicle used to commit a designated offense or used in conduct resulting in a designated license revocation is subject to administrative forfeiture under this subdivision.


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(b) When a motor vehicle is seized under subdivision 2, the appropriate agency shall serve the driver or operator of the vehicle with a notice of the seizure and intent to forfeit the vehicle. Additionally, when a motor vehicle is seized under subdivision 2, or within a reasonable time after that, all persons known to have an ownership or possessory interest in the vehicle must be notified of the seizure and the intent to forfeit the vehicle. Notice mailed by certified mail to the address shown in department of public safety records is sufficient notice to the registered owner of the vehicle. Otherwise, notice may be given in the manner provided by law for service of a summons in a civil action.

(c) The notice must be in writing and contain:

(1) a description of the vehicle seized;

(2) the date of seizure; and

(3) notice of the right to obtain judicial review of the forfeiture and of the procedure for obtaining that judicial review, printed in English, Hmong, and Spanish. Substantially the following language must appear conspicuously: "IF YOU DO NOT DEMAND JUDICIAL REVIEW EXACTLY AS PRESCRIBED IN MINNESOTA STATUTES, SECTION 169.1217, SUBDIVISION 7a, YOU LOSE THE RIGHT TO A JUDICIAL DETERMINATION OF THIS FORFEITURE AND YOU LOSE ANY RIGHT YOU MAY HAVE TO THE ABOVE DESCRIBED PROPERTY. YOU MAY NOT HAVE TO PAY THE FILING FEE FOR THE DEMAND IF DETERMINED YOU ARE UNABLE TO AFFORD THE FEE. YOU DO NOT HAVE TO PAY THE FILING FEE IF THE PROPERTY IS WORTH LESS THAN $500 AND YOU FILE YOUR CLAIM IN CONCILIATION COURT."

(d) Within 60 days following service of a notice of seizure and forfeiture under this subdivision, a claimant may file a demand for a judicial determination of the forfeiture. The demand must be in the form of a civil complaint and must be filed with the court administrator in the county in which the seizure occurred, together with proof of service of a copy of the complaint on the prosecuting authority having jurisdiction over the forfeiture, and the standard filing fee for civil actions unless the petitioner has the right to sue in forma pauperis under section 563.01. If the value of the seized property is less than $500, the claimant may file an action in conciliation court for recovery of the seized vehicle without paying the conciliation court filing fee. No responsive pleading is required of the prosecuting authority and no court fees may be charged for the prosecuting authority's appearance in the matter. The proceedings are governed by the rules of civil procedure.

(e) The complaint must be captioned in the name of the claimant as plaintiff and the seized vehicle as defendant, and must state with specificity the grounds on which the claimant alleges the vehicle was improperly seized and the plaintiff's interest in the vehicle seized. Notwithstanding any law to the contrary, an action for the return of a vehicle seized under this section may not be maintained by or on behalf of any person who has been served with a notice of seizure and forfeiture unless the person has complied with this subdivision.

(f) If the claimant makes a timely demand for a judicial determination under this subdivision, the appropriate agency must conduct the forfeiture under subdivision 8.

(g) If a demand for judicial determination of an administrative forfeiture is filed under this subdivision and the court orders the return of the seized vehicle, the court shall order that filing fees be reimbursed to the person who filed the demand. In addition, the court may order the payment of reasonable costs, expenses, and attorney fees under section 549.21, subdivision 2.

Subd. 8. [JUDICIAL FORFEITURE PROCEDURE.] (a) This subdivision governs judicial determinations of the forfeiture of a motor vehicle used to commit a designated offense is subject to forfeiture under this subdivision or used in conduct resulting in a designated license revocation.

(b) A separate complaint shall be filed against the vehicle, describing it, and specifying that it was used in the commission of a designated offense or was used in conduct resulting in a designated license revocation, and specifying the time and place of its unlawful use. If the person charged with a designated offense appears in court as required and is not convicted of the offense, the court shall dismiss the complaint against the vehicle and order the property returned to the person legally entitled to it. Likewise, if a designated license revocation is rescinded under section 169.123, subdivision 5a or 6, the court shall


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dismiss the complaint against the vehicle and order the property returned to the person legally entitled to it. If the lawful ownership of the vehicle used in the commission of a designated offense or used in conduct resulting in a designated license revocation can be determined and it is found the owner was not privy to commission of a designated offense or was not privy to the conduct resulting in the designated license revocation, the vehicle shall be returned immediately.

Subd. 9. [DISPOSITION OF FORFEITED VEHICLES.] (a) If the vehicle is administratively forfeited under subdivision 7a, or if the court finds under subdivision 8 that the vehicle is subject to forfeiture under subdivisions 6 and 7, it shall order the appropriate agency to shall:

(1) sell the vehicle and distribute the proceeds under paragraph (b); or

(2) keep the vehicle for official use. If the agency keeps a forfeited motor vehicle for official use, it shall make reasonable efforts to ensure that the motor vehicle is available for use by the agency's officers who participate in the drug abuse resistance education program.

(b) Except as otherwise provided in paragraph (c), the proceeds from the sale of forfeited vehicles, after payment of seizure, storage, forfeiture, and sale expenses, and satisfaction of valid liens against the property, must be forwarded to the treasury of the political subdivision that employs the appropriate agency responsible for the forfeiture for use in DWI-related enforcement, training and education. If the appropriate agency is an agency of state government, the net proceeds must be forwarded to the state treasury and credited to the general fund These proceeds shall be in addition to and shall not directly displace other funds in the appropriate agency's budget.

(c) The proceeds from the sale of forfeited off-road recreational vehicles and motorboats, after payment of seizure, storage, forfeiture, and sale expenses, and satisfaction of valid liens against the property, must be forwarded to the state treasury and credited to the following funds:

(1) if the forfeited vehicle is a motorboat, the net proceeds must be credited to the water recreation account in the natural resources fund;

(2) if the forfeited vehicle is a snowmobile, the net proceeds must be credited to the snowmobile trails and enforcement account in the natural resources fund;

(3) if the forfeited vehicle is an all-terrain vehicle, the net proceeds must be credited to the all-terrain vehicle account in the natural resources fund; and

(4) if otherwise, the net proceeds must be credited to the general fund.

Sec. 41. Minnesota Statutes 1996, section 169.1218, is amended to read:

169.1218 [UNDERAGE DRINKING AND DRIVING.]

(a) It is a misdemeanor for a person under the age of 21 years to drive or operate a motor vehicle while consuming alcoholic beverages, or after having consumed alcoholic beverages while there is physical evidence of the consumption present in the person's body.

(b) When a person is found to have committed an offense under paragraph (a), the court shall notify the commissioner of public safety of its determination. Upon receipt of the court's determination, the commissioner shall suspend the person's driver's license or operating privileges for 30 days, or for 180 days if the person has previously been found to have violated paragraph (a) or a statute or ordinance in conformity with paragraph (a).

(c) If the person's conduct violates section 169.121, subdivision 1 or 1a, or 169.1211, the penalties and license sanctions in those laws apply instead of the license sanction in paragraph (b).

(d) An offense under paragraph (a) may be prosecuted either in the jurisdiction where consumption occurs or the jurisdiction where evidence of consumption is observed.


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Sec. 42. Minnesota Statutes 1996, section 169.123, subdivision 1, is amended to read:

Subdivision 1. [PEACE OFFICER DEFINED.] For purposes of this section, section 169.121, and section 169.1211, the term peace officer means (1) a state patrol officer, (2) University of Minnesota peace officer, (3) a constable as defined in section 367.40, subdivision 3, or (4) police officer of any municipality, including towns having powers under section 368.01, or county, and (5) for purposes of violations of those sections in or on an off-road recreational vehicle or motorboat, a state conservation officer.

Sec. 43. Minnesota Statutes 1996, section 169.123, subdivision 2, is amended to read:

Subd. 2. [IMPLIED CONSENT; CONDITIONS; ELECTION OF TEST.] (a) Any person who drives, operates, or is in physical control of a motor vehicle within this state or upon the ice of any boundary water of this state consents, subject to the provisions of this section and sections 169.121 and 169.1211, to a chemical test of that person's blood, breath, or urine for the purpose of determining the presence of alcohol, controlled substances, or hazardous substances. The test shall be administered at the direction of a peace officer. The test may be required of a person when an officer has probable cause to believe the person was driving, operating, or in physical control of a motor vehicle in violation of section 169.121 and one of the following conditions exist:

(1) the person has been lawfully placed under arrest for violation of section 169.121, or an ordinance in conformity with it;

(2) the person has been involved in a motor vehicle accident or collision resulting in property damage, personal injury, or death;

(3) the person has refused to take the screening test provided for by section 169.121, subdivision 6; or

(4) the screening test was administered and indicated an alcohol concentration of 0.10 0.08 or more; or

(5) the screening test was administered and indicated an alcohol concentration of 0.04 or more, if the person is under the age of 21 years at the time of the violation.

The test may also be required of a person when an officer has probable cause to believe the person was driving, operating, or in physical control of a commercial motor vehicle with the presence of any alcohol.

(b) At the time a test is requested, the person shall be informed:

(1) that Minnesota law requires the person to take a test: (i) to determine if the person is under the influence of alcohol, controlled substances, or hazardous substances; (ii) to determine the presence of a controlled substance listed in schedule I or II, other than marijuana or tetrahydrocannabinols; and (iii) if the motor vehicle was a commercial motor vehicle, to determine the presence of alcohol;

(2) that refusal to take a test is a crime;

(3) if the peace officer has probable cause to believe the person has violated the criminal vehicular homicide and injury laws, that a test will be taken with or without the person's consent; and

(4) that the person has the right to consult with an attorney, but that this right is limited to the extent that it cannot unreasonably delay administration of the test.

(c) The peace officer who requires a test pursuant to this subdivision may direct whether the test shall be of blood, breath, or urine. Action may be taken against a person who refuses to take a blood test only if an alternative test was offered and action may be taken against a person who refuses to take a urine test only if an alternative test was offered.

Sec. 44. Minnesota Statutes 1996, section 169.123, subdivision 3, is amended to read:

Subd. 3. [MANNER OF MAKING TEST; ADDITIONAL TESTS.] (a) Only a physician, medical technician, physician's trained mobile intensive care paramedic, registered nurse, medical technologist or laboratory assistant acting at the request of a peace officer may withdraw blood for the purpose of determining the presence of alcohol, controlled substances, or


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hazardous substances. This limitation does not apply to the taking of a breath or urine sample. The person tested has the right to have someone of the person's own choosing administer a chemical test or tests in addition to any administered at the direction of a peace officer; provided, that the additional test sample on behalf of the person is obtained at the place where the person is in custody, after the test administered at the direction of a peace officer, and at no expense to the state.

(b) The failure or inability to obtain an additional test or tests by a person shall not preclude the admission in evidence of the test taken at the direction of a peace officer unless the additional test was prevented or denied by the peace officer.

(c) The physician, medical technician, physician's trained mobile intensive care paramedic, medical technologist, laboratory assistant or registered nurse drawing blood at the request of a peace officer for the purpose of determining the concentration of alcohol, controlled substances, or hazardous substances shall in no manner be liable in any civil or criminal action except for negligence in drawing the blood. The person administering a breath test shall be fully trained in the administration of breath tests pursuant to training given by the commissioner of public safety.

Sec. 45. Minnesota Statutes 1996, section 169.123, subdivision 4, is amended to read:

Subd. 4. [REFUSAL; REVOCATION OF LICENSE.] (a) If a person refuses to permit a test, none shall be given, but the peace officer shall report the refusal to the commissioner of public safety and the authority having responsibility for prosecution of misdemeanor offenses for the jurisdiction in which the acts occurred. However, if a peace officer has probable cause to believe that the person has violated section 609.21, a test may be required and obtained despite the person's refusal. A refusal to submit to an alcohol concentration test does not constitute a violation of section 609.50, unless the refusal was accompanied by force or violence or the threat of force or violence.

(b) If a person submits to a test and, the results of that test shall be reported to the commissioner of public safety and to the authority having responsibility for prosecution of misdemeanor offenses for the jurisdiction in which the acts occurred, if the test results indicate:

(1) an alcohol concentration of 0.10 0.08 or more;

(2) an alcohol concentration of 0.04 or more, if the person is under the age of 21 years at the time of the violation;

(3) an alcohol concentration of 0.04 or more, if the person was driving, operating, or in physical control of a commercial motor vehicle at the time of the violation; or

(4) the presence of a controlled substance listed in schedule I or II, other than marijuana or tetrahydrocannabinols, or if a person was driving, operating, or in physical control of a commercial motor vehicle and the test results indicate an alcohol concentration of 0.04 or more, the results of the test shall be reported to the commissioner of public safety and to the authority having responsibility for prosecution of misdemeanor offenses for the jurisdiction in which the acts occurred.

(c) Upon certification by the peace officer that there existed probable cause to believe the person had been driving, operating, or in physical control of a motor vehicle in violation of section 169.121 and that the person refused to submit to a test, the commissioner of public safety shall revoke the person's license or permit to drive, or nonresident operating privilege, for a period of one year even if a test was obtained pursuant to this section after the person refused to submit to testing.

(d) Upon certification by the peace officer that there existed probable cause to believe the person had been driving, operating, or in physical control of a commercial motor vehicle with the presence of any alcohol in violation of section 169.121 or 169.1211, and that the person refused to submit to a test, the commissioner shall disqualify the person from operating a commercial motor vehicle for a period of one year under section 171.165 and shall revoke the person's license or permit to drive or nonresident operating privilege for a period of one year.

(e) Upon certification by the peace officer that there existed probable cause to believe the person had been driving, operating, or in physical control of a motor vehicle in violation of section 169.121 and that the person submitted to a test and the test results indicate: an alcohol concentration of 0.10 0.08 or more; an alcohol concentration of 0.04 or more, if the person is under the age of 21 years at the time of the violation; or the presence of a controlled substance listed


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in schedule I or II, other than marijuana or tetrahydrocannabinols, then the commissioner of public safety shall revoke the person's license or permit to drive, or nonresident operating privilege:

(1) for a period of 90 days; or

(2) if the person is under the age of 21 years, for a period of six months; or

(3) for a person with a prior impaired driving conviction or prior license revocation within the past five years, for a period of 180 days.

(f) On certification by the peace officer that there existed probable cause to believe the person had been driving, operating, or in physical control of a commercial motor vehicle with any presence of alcohol and that the person submitted to a test and the test results indicated an alcohol concentration of 0.04 or more, the commissioner of public safety shall disqualify the person from operating a commercial motor vehicle under section 171.165.

(g) If the person is a resident without a license or permit to operate a motor vehicle in this state, the commissioner of public safety shall deny to the person the issuance of a license or permit for the same period after the date of the alleged violation as provided herein for revocation, subject to review as hereinafter provided.

(h) As used in this subdivision, the terms "prior impaired driving conviction" and "prior license revocation" have the meanings given in section 169.121, subdivision 3, paragraph (a).

Sec. 46. Minnesota Statutes 1996, section 169.123, subdivision 5a, is amended to read:

Subd. 5a. [TEST REFUSAL; DRIVING PRIVILEGE LOST.] (a) On behalf of the commissioner of public safety, a peace officer requiring a test or directing the administration of a chemical test shall serve immediate notice of intention to revoke and of revocation on a person who refuses to permit a test or on a person who submits to a test the results of which indicate:

(1) an alcohol concentration of 0.10 0.08 or more; or

(2) an alcohol concentration of 0.04 or more, if the person is under the age of 21 years at the time of the violation.

(b) On behalf of the commissioner of public safety, a peace officer requiring a test or directing the administration of a chemical test of a person driving, operating, or in physical control of a commercial motor vehicle shall serve immediate notice of intention to disqualify and of disqualification on a person who refuses to permit a test, or on a person who submits to a test the results of which indicate an alcohol concentration of 0.04 or more.

(c) The officer shall either:

(1) take the driver's license or permit, if any, send it to the commissioner of public safety along with the certificate required by subdivision 4, and issue a temporary license effective only for seven days; or

(2) invalidate the driver's license or permit in such a way that no identifying information is destroyed.

Sec. 47. Minnesota Statutes 1996, section 169.123, subdivision 5c, is amended to read:

Subd. 5c. [PETITION FOR JUDICIAL REVIEW.] (a) Within 30 days following receipt of a notice and order of revocation or disqualification pursuant to this section, a person may petition the court for review. The petition shall be filed with the district court administrator in the county where the alleged offense occurred, together with proof of service of a copy on the commissioner of public safety, and accompanied by the standard filing fee for civil actions. No responsive pleading shall be required of the commissioner of public safety, and no court fees shall be charged for the appearance of the commissioner of public safety in the matter.

(b) The petition shall must:

(1) be captioned in the full name of the person making the petition as petitioner and the commissioner of public safety as respondent. The petition must;


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(2) include the petitioner's date of birth, driver's license number, and date of the offense. The petition shall; and

(3) state with specificity the grounds upon which the petitioner seeks rescission of the order of revocation, disqualification, or denial.

(c) The filing of the petition shall not stay the revocation, disqualification, or denial. The reviewing court may order a stay of the balance of the revocation or disqualification if the hearing has not been conducted within 60 days after filing of the petition upon terms the court deems proper.

(d) Judicial reviews shall be conducted according to the rules of civil procedure except that prehearing discovery is mandatory and includes, but is not limited to:

(1) the notice of revocation;

(2) the test record, or in the case of blood or urine tests, the certificate of analysis;

(3) the peace officer's certificate and any accompanying documentation submitted by the arresting officer to the commissioner of public safety; and

(4) disclosure of potential witnesses, including experts, and the basis of their testimony.

Sec. 48. Minnesota Statutes 1996, section 169.123, subdivision 6, is amended to read:

Subd. 6. [HEARING.] (a) A hearing under this section shall be before a district judge in any county in the judicial district where the alleged offense occurred. The hearing shall be to the court and may be conducted at the same time and in the same manner as hearings upon pretrial motions in the criminal prosecution under section 169.121, if any. The hearing shall be recorded. The commissioner of public safety shall appear and be represented by the attorney general or through the prosecuting authority for the jurisdiction involved. The hearing shall be held at the earliest practicable date, and in any event no later than 60 days following the filing of the petition for review. The judicial district administrator shall establish procedures to ensure efficient compliance with this subdivision. To accomplish this, the administrator may, whenever possible, consolidate and transfer review hearings among the county courts within the judicial district.

(b) The scope of the hearing shall be limited to the issues in clauses (1) to (9) (11):

(1) Did the peace officer have probable cause to believe the person was driving, operating, or in physical control of:

(i) a motor vehicle in violation of section 169.121; or

(ii) a commercial motor vehicle in violation of section 169.1211?

(2) Was the person lawfully placed under arrest for violation of section 169.121 or 169.1211?

(3) Was the person involved in a motor vehicle accident or collision resulting in property damage, personal injury, or death?

(4) Did the person refuse to take a screening test provided for by section 169.121, subdivision 6?

(5) If the screening test was administered, did the test indicate:

(i) an alcohol concentration of 0.10 0.08 or more; or

(ii) an alcohol concentration of 0.04 or more, if the person is under the age of 21 years at the time of the violation?

(6) At the time of the request for the test, did the peace officer inform the person of the person's rights and the consequences of taking or refusing the test as required by subdivision 2?


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(7) Did the person refuse to permit the test?

(8) If the person refused to permit the test, was the refusal based upon reasonable grounds?

(9) If a test was taken:

(i) by a person driving, operating, or in physical control of a motor vehicle, did the test results indicate at the time of testing:

(i) an alcohol concentration of 0.10 0.08 or more at the time of testing;

(ii) an alcohol concentration of 0.04 or more, if the person is under the age of 21 years at the time of the violation; or

(iii) the presence of a controlled substance listed in schedule I or II, other than marijuana or tetrahydrocannabinols; or?

(ii) (10) If a test was taken by a person driving, operating, or in physical control of a commercial motor vehicle, did the test results indicate an alcohol concentration of 0.04 or more at the time of testing?

(9) (11) Was the testing method used valid and reliable and were the test results accurately evaluated?

(c) It shall be an affirmative defense for the petitioner to prove that, at the time of the refusal, the petitioner's refusal to permit the test was based upon reasonable grounds.

(d) Certified or otherwise authenticated copies of laboratory or medical personnel reports, records, documents, licenses, and certificates shall be admissible as substantive evidence.

(e) The court shall order that the revocation or disqualification be either rescinded or sustained and forward the order to the commissioner of public safety. The court shall file its order within 14 days following the hearing. If the revocation or disqualification is sustained, the court shall also forward the person's driver's license or permit to the commissioner of public safety for further action by the commissioner of public safety if the license or permit is not already in the commissioner's possession.

Sec. 49. Minnesota Statutes 1996, section 169.126, subdivision 1, is amended to read:

Subdivision 1. [REQUIREMENT; FORM.] A chemical use assessment shall be conducted and an assessment report submitted to the court and to the department of public safety by the county agency administering the alcohol safety program when:

(a) The defendant is convicted of an offense described in section 84.91, 86B.331, 169.121 or, 169.1211, 169.129, or 360.0752; or

(b) The defendant is arrested for committing an offense described in section 169.121 or 169.129 but is convicted of another offense arising out of the circumstances surrounding the arrest.

Sec. 50. Minnesota Statutes 1996, section 169.1261, is amended to read:

169.1261 [REINSTATEMENT OF DRIVING PRIVILEGES; NOTICE.]

Upon expiration of a period of revocation under section 169.121 or 169.123, the commissioner of public safety shall notify the person of the terms upon which driving privileges can be reinstated, and new registration plates issued, which terms are: (1) successful completion of a driving test an examination and proof of compliance with any terms of alcohol treatment or counseling previously prescribed, if any; and (2) any other requirements imposed by the commissioner and applicable to that particular case. The commissioner shall notify the owner of a motor vehicle subject to an impoundment order under section 168.041 as a result of the violation of the procedures for obtaining new registration plates, if the owner is not the violator. The commissioner shall also notify the person that if driving is resumed without reinstatement of driving privileges or without valid registration plates and registration certificate, the person will be subject to criminal penalties.


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Sec. 51. Minnesota Statutes 1996, section 169.129, is amended to read:

169.129 [AGGRAVATED VIOLATIONS; PENALTY.]

Subdivision 1. [CRIME.] It is a crime for any person is guilty of a gross misdemeanor who drives, operates, or is to drive, operate, or be in physical control of a motor vehicle, the operation of which requires a driver's license, within this state or upon the ice of any boundary water of this state in violation of section 169.121 or an ordinance in conformity with it before the person's driver's license or driver's driving privilege has been reinstated following its cancellation, suspension, revocation, disqualification, or denial under any of the following:

(1) section 169.121, 169.1211, or 169.123;

(2) section 171.04, 171.14, 171.16, 171.17, or 171.18 because of an alcohol-related incident;

(3) section 609.21, subdivision 1, clauses (2) to (6); 609.21, subdivision 2, clauses (2) to (6); 609.21, subdivision 2a, clauses (2) to (6); 609.21, subdivision 2b, clauses (2) to (6); 609.21, subdivision 3, clauses (2) to (6); or 609.21, subdivision 4, clauses (2) to (6).

Subd. 2. [PENALTIES.] (a) Except as otherwise provided in paragraph (b), a person who violates subdivision 1 is guilty of a gross misdemeanor.

(b) A person is guilty of an enhanced gross misdemeanor and may be sentenced to imprisonment in a local correctional facility for not more than two years or to payment of a fine of not more than $3,000, or both, if the person violates subdivision 1 and the person's driver's license or driving privilege has been suspended, revoked, canceled, denied, or disqualified two or three times within the past ten years under any of the statutes listed in subdivision 1. A person convicted of an enhanced gross misdemeanor under this paragraph is subject to the applicable mandatory penalties provided in section 169.121, subdivision 3d.

Subd. 3. [PROSECUTION.] The attorney in the jurisdiction in which the violation of this section occurred who is responsible for prosecution of misdemeanor violations of section 169.121 shall also be responsible for prosecution of violations of this section.

Sec. 52. Minnesota Statutes 1996, section 171.07, is amended by adding a subdivision to read:

Subd. 12. [SNOWMOBILE SAFETY CERTIFICATE.] (a) The department shall maintain in its records information transmitted electronically from the commissioner of natural resources identifying each person whom the commissioner has issued a snowmobile safety certificate.

(b) After receiving information under paragraph (a) that a person has received a snowmobile safety certificate, the department shall include, on all drivers' licenses or Minnesota identification cards subsequently issued to the person, a graphic or written indication that the person has received the certificate.

(c) If a person who has received a snowmobile safety certificate applies for a driver's license or Minnesota identification card before that information has been transmitted to the department, the department may accept a copy of the certificate as proof of its issuance and shall then follow the procedures in paragraph (b).

Sec. 53. Minnesota Statutes 1996, section 171.12, is amended by adding a subdivision to read:

Subd. 2a. [ALCOHOL CONCENTRATION ON DRIVING RECORD.] When a person's driver's license or permit to drive is revoked or suspended pursuant to section 169.123, or when a person is convicted for violating section 84.91, 86B.331, 169.121, 169.1211, 169.1218, 169.129, 360.0752, or 609.21, and a test of the person's breath, urine, or blood has been made to determine the person's alcohol concentration, the commissioner of public safety shall record the test results on the person's driving record pertaining to that violation. The alcohol concentration is classified as public data on individuals, as defined in section 13.02, subdivision 15, and must be kept for the period of time specified in subdivision 3, clause (2).


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Sec. 54. Minnesota Statutes 1996, section 171.19, is amended to read:

171.19 [PETITION FOR LICENSE REINSTATEMENT.]

Any person whose driver's license has been refused, revoked, suspended, or canceled, or disqualified by the commissioner, except where the license is revoked or disqualified under section 169.123, may file a petition for a hearing in the matter in the district court in the county wherein such person shall reside and, in the case of a nonresident, in the district court in any county, and such court is hereby vested with jurisdiction, and it shall be its duty, to set the matter for hearing upon 15 days' written notice to the commissioner, and thereupon to take testimony and examine into the facts of the case to determine whether the petitioner is entitled to a license or is subject to revocation, suspension, cancellation, disqualification, or refusal of license, and shall render judgment accordingly. The petition shall be heard by the court without a jury and may be heard in or out of term. The commissioner may appear in person, or by agents or representatives, and may present evidence upon the hearing by affidavit personally, by agents, or by representatives. The petitioner may present evidence by affidavit, except that the petitioner must be present in person at such hearing for the purpose of cross-examination. In the event the department shall be sustained in these proceedings, the petitioner shall have no further right to make further petition to any court for the purpose of obtaining a driver's license until after the expiration of one year after the date of such hearing.

Sec. 55. Minnesota Statutes 1996, section 171.20, subdivision 4, is amended to read:

Subd. 4. [REINSTATEMENT FEE.] Before the license is reinstated, a person whose driver's license has been suspended under section 171.16, subdivision 2; 171.18, except subdivision 1, clause (10); or 171.182, or who has been disqualified from holding a commercial driver's license under section 171.165 must pay a $20 fee before the license is reinstated of $25.25 until June 30, 1999, and $20 thereafter. When this fee is collected by a county-operated office of deputy registrar, a $3.50 handling charge is imposed. The handling charge must be deposited in the treasury of the place for which the deputy registrar was appointed and the $20 reinstatement fee must be deposited in an approved state depository as directed under section 168.33, subdivision 2. A suspension may be rescinded without fee for good cause.

Sec. 56. Minnesota Statutes 1996, section 171.30, is amended by adding a subdivision to read:

Subd. 2c. [EXTENDED WAITING PERIOD.] If a person's license or privilege has been revoked or suspended for a violation of section 169.121 or 169.123, or a statute or ordinance from another state in conformity with either of those sections, and the person's alcohol concentration was 0.20 or greater at the time of the violation, a limited license may not be issued for a period of time equal to twice the time period specified in subdivision 2a or 2b.

Sec. 57. Minnesota Statutes 1996, section 192A.555, is amended to read:

192A.555 [DRUNKEN OR RECKLESS DRIVING.]

Any (a) A person subject to this code who shall be punished as a court-martial may direct if the person:

(1) drives, operates, or is in actual physical control of any vehicle or aircraft while under the influence of an alcoholic beverage or narcotic drug or a combination thereof or whose blood contains 0.10 percent;

(2) drives, operates, or is in physical control of a vehicle when the person's alcohol concentration is 0.08 or more by weight of alcohol;

(3) flies, operates, or is in physical control of an aircraft when the person's alcohol concentration is 0.04 or more; or who

(4) operates said the vehicle or aircraft in a reckless or wanton manner, shall be punished as a court-martial may direct.

(b) Chemical and other tests for intoxication shall be made only in accordance with rules issued under this code. For purposes of this section, the term "alcohol concentration" has the meaning given in section 169.01, subdivision 61.


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Sec. 58. Minnesota Statutes 1996, section 357.021, subdivision 1a, is amended to read:

Subd. 1a. (a) Every person, including the state of Minnesota and all bodies politic and corporate, who shall transact any business in the district court, shall pay to the court administrator of said court the sundry fees prescribed in subdivision 2. Except as provided in paragraph (d), the court administrator shall transmit the fees monthly to the state treasurer for deposit in the state treasury and credit to the general fund.

(b) In a county which has a screener-collector position, fees paid by a county pursuant to this subdivision shall be transmitted monthly to the county treasurer, who shall apply the fees first to reimburse the county for the amount of the salary paid for the screener-collector position. The balance of the fees collected shall then be forwarded to the state treasurer for deposit in the state treasury and credited to the general fund. In a county in the eighth judicial district which has a screener-collector position, the fees paid by a county shall be transmitted monthly to the state treasurer for deposit in the state treasury and credited to the general fund. A screener-collector position for purposes of this paragraph is an employee whose function is to increase the collection of fines and to review the incomes of potential clients of the public defender, in order to verify eligibility for that service.

(c) No fee is required under this section from the public authority or the party the public authority represents in an action for:

(1) child support enforcement or modification, medical assistance enforcement, or establishment of parentage in the district court, or child or medical support enforcement conducted by an administrative law judge in an administrative hearing under section 518.5511;

(2) civil commitment under chapter 253B;

(3) the appointment of a public conservator or public guardian or any other action under chapters 252A and 525;

(4) wrongfully obtaining public assistance under section 256.98 or 256D.07, or recovery of overpayments of public assistance;

(5) court relief under chapter 260;

(6) forfeiture of property under sections 169.1217 and 609.531 to 609.5317;

(7) recovery of amounts issued by political subdivisions or public institutions under sections 246.52, 252.27, 256.045, 256.25, 256.87, 256B.042, 256B.14, 256B.15, 256B.37, and 260.251, or other sections referring to other forms of public assistance; or

(8) restitution under section 611A.04.

(d) The fees collected for child support modifications under subdivision 2, clause (13), must be transmitted to the county treasurer for deposit in the county general fund. The fees must be used by the county to pay for child support enforcement efforts by county attorneys.

Sec. 59. Minnesota Statutes 1996, section 364.09, is amended to read:

364.09 [EXCEPTIONS.]

(a) This chapter does not apply to the licensing process for peace officers; to law enforcement agencies as defined in section 626.84, subdivision 1, paragraph (h); to fire protection agencies; to eligibility for a private detective or protective agent license; to eligibility for a family day care license, a family foster care license, or a home care provider license; to eligibility for school bus driver endorsements; or to eligibility for special transportation service endorsements; or to eligibility for a commercial driver training instructor license, which is governed by section 171.35 and rules adopted under that section. This chapter also shall not apply to eligibility for juvenile corrections employment, where the offense involved child physical or sexual abuse or criminal sexual conduct.


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(b) This chapter does not apply to a school district or to eligibility for a license issued or renewed by the board of teaching or the state board of education.

(c) Nothing in this section precludes the Minnesota police and peace officers training board or the state fire marshal from recommending policies set forth in this chapter to the attorney general for adoption in the attorney general's discretion to apply to law enforcement or fire protection agencies.

(d) This chapter does not apply to a license to practice medicine that has been denied or revoked by the board of medical practice pursuant to section 147.091, subdivision 1a.

Sec. 60. Minnesota Statutes 1996, section 609.02, subdivision 2, is amended to read:

Subd. 2. [FELONY.] "Felony" means a crime, other than an enhanced gross misdemeanor, for which a sentence of imprisonment for more than one year may be imposed.

Sec. 61. Minnesota Statutes 1996, section 609.02, is amended by adding a subdivision to read:

Subd. 2a. [ENHANCED GROSS MISDEMEANOR.] "Enhanced gross misdemeanor" means a crime for which a sentence of not more than two years imprisonment in a local correctional facility or a fine of not more than $3,000, or both, may be imposed.

Sec. 62. Minnesota Statutes 1996, section 609.105, is amended to read:

609.105 [SENTENCE OF IMPRISONMENT.]

Subdivision 1. Except as otherwise provided in subdivision 3, a sentence to imprisonment for more than one year shall commit the defendant to the custody of the commissioner of corrections.

Subd. 2. The commissioner of corrections shall determine the place of confinement in a prison, reformatory, or other facility of the department of corrections established by law for the confinement of convicted persons and prescribe reasonable conditions and rules for their employment, conduct, instruction, and discipline within or without the facility.

Subd. 3. A sentence to imprisonment for an enhanced gross misdemeanor or for a period of one year or any lesser period shall be to a workhouse, work farm, county jail, or other place authorized by law.

Sec. 63. Minnesota Statutes 1996, section 609.135, subdivision 2, is amended to read:

Subd. 2. [STAY OF SENTENCE MAXIMUM PERIODS.] (a) If the conviction is for a felony the stay shall be for not more than four years or the maximum period for which the sentence of imprisonment might have been imposed, whichever is longer.

(b) If the conviction is for an enhanced gross misdemeanor violation of section 169.121 or 169.129, the stay shall be for not more than five years. The court shall provide for unsupervised probation for the last year of the stay unless the court finds that the defendant needs supervised probation for all or part of the last year.

(c) If the conviction is for a gross misdemeanor violation of section 169.121 or 169.129, the stay shall be for not more than four years. The court shall provide for unsupervised probation for the last one year of the stay unless the court finds that the defendant needs supervised probation for all or part of the last one year.

(c) (d) If the conviction is for a gross misdemeanor not specified in paragraph (b) (c), the stay shall be for not more than two years.

(d) (e) If the conviction is for any misdemeanor under section 169.121; 609.746, subdivision 1; 609.79; or 617.23; or for a misdemeanor under section 609.2242 or 609.224, subdivision 1, in which the victim of the crime was a family or household member as defined in section 518B.01, the stay shall be for not more than two years. The court shall provide for unsupervised probation for the second year of the stay unless the court finds that the defendant needs supervised probation for all or part of the second year.


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(e) (f) If the conviction is for a misdemeanor not specified in paragraph (d) (e), the stay shall be for not more than one year.

(f) (g) The defendant shall be discharged six months after the term of the stay expires, unless the stay has been revoked or extended under paragraph (g) (h), or the defendant has already been discharged.

(g) (h) Notwithstanding the maximum periods specified for stays of sentences under paragraphs (a) to (f) (g), a court may extend a defendant's term of probation for up to one year if it finds, at a hearing conducted under subdivision 1a, that:

(1) the defendant has not paid court-ordered restitution or a fine in accordance with the payment schedule or structure; and

(2) the defendant is likely to not pay the restitution or fine the defendant owes before the term of probation expires.

This one-year extension of probation for failure to pay restitution or a fine may be extended by the court for up to one additional year if the court finds, at another hearing conducted under subdivision 1a, that the defendant still has not paid the court-ordered restitution or fine that the defendant owes.

Sec. 64. Minnesota Statutes 1996, section 609.15, subdivision 2, is amended to read:

Subd. 2. [LIMIT ON SENTENCES; MISDEMEANOR AND GROSS MISDEMEANOR.] If the court specifies that the sentence shall run consecutively and all of the sentences are for misdemeanors, the total of the sentences shall not exceed one year. If the sentences are for a gross misdemeanor or enhanced gross misdemeanor and one or more misdemeanors, the total of the sentences shall not exceed two years. If all of the sentences are for gross misdemeanors and enhanced gross misdemeanors, the total of the sentences shall not exceed four years.

Sec. 65. Minnesota Statutes 1996, section 609.21, subdivision 1, is amended to read:

Subdivision 1. [CRIMINAL VEHICULAR HOMICIDE.] A person is guilty of criminal vehicular homicide resulting in death and may be sentenced to imprisonment for not more than ten years or to payment of a fine of not more than $20,000, or both, if the person causes the death of a human being not constituting murder or manslaughter as a result of operating a motor vehicle:

(1) in a grossly negligent manner;

(2) in a negligent manner while under the influence of:

(i) alcohol;

(ii) a controlled substance; or

(iii) any combination of those elements;

(3) while having an alcohol concentration of 0.10 0.08 or more;

(4) while having an alcohol concentration of 0.10 0.08 or more, as measured within two hours of the time of driving;

(5) while having an alcohol concentration of 0.04 or more at the time of driving, or as measured within two hours of the time of driving, if the person is under the age of 21 years at the time of the violation;

(5) (6) in a negligent manner while knowingly under the influence of a hazardous substance;

(6) (7) in a negligent manner while any amount of a controlled substance listed in schedule I or II, other than marijuana or tetrahydrocannabinols, is present in the person's body; or

(7) (8) where the driver who causes the accident leaves the scene of the accident in violation of section 169.09, subdivision 1 or 6.


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Sec. 66. Minnesota Statutes 1996, section 609.21, subdivision 2, is amended to read:

Subd. 2. [RESULTING IN GREAT BODILY HARM.] A person is guilty of criminal vehicular operation resulting in great bodily harm and may be sentenced to imprisonment for not more than five years or to payment of a fine of not more than $10,000, or both, if the person causes great bodily harm to another, not constituting attempted murder or assault, as a result of operating a motor vehicle:

(1) in a grossly negligent manner;

(2) in a negligent manner while under the influence of:

(i) alcohol;

(ii) a controlled substance; or

(iii) any combination of those elements;

(3) while having an alcohol concentration of 0.10 0.08 or more;

(4) while having an alcohol concentration of 0.10 0.08 or more, as measured within two hours of the time of driving;

(5) while having an alcohol concentration of 0.04 or more at the time of driving, or as measured within two hours of the time of driving, if the person is under the age of 21 years at the time of the violation;

(5) (6) in a negligent manner while knowingly under the influence of a hazardous substance;

(6) (7) in a negligent manner while any amount of a controlled substance listed in schedule I or II, other than marijuana or tetrahydrocannabinols, is present in the person's body; or

(7) (8) where the driver who causes the accident leaves the scene of the accident in violation of section 169.09, subdivision 1 or 6.

Sec. 67. Minnesota Statutes 1996, section 609.21, subdivision 2a, is amended to read:

Subd. 2a. [RESULTING IN SUBSTANTIAL BODILY HARM.] A person is guilty of criminal vehicular operation resulting in substantial bodily harm and may be sentenced to imprisonment of not more than three years or to payment of a fine of not more than $10,000, or both, if the person causes substantial bodily harm to another, as a result of operating a motor vehicle;

(1) in a grossly negligent manner;

(2) in a negligent manner while under the influence of:

(i) alcohol;

(ii) a controlled substance; or

(iii) any combination of those elements;

(3) while having an alcohol concentration of 0.10 0.08 or more;

(4) while having an alcohol concentration of 0.10 0.08 or more, as measured within two hours of the time of driving;

(5) while having an alcohol concentration of 0.04 or more at the time of driving, or as measured within two hours of the time of driving, if the person is under the age of 21 years at the time of the violation;


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(5) (6) in a negligent manner while knowingly under the influence of a hazardous substance;

(6) (7) in a negligent manner while any amount of a controlled substance listed in schedule I or II, other than marijuana or tetrahydrocannabinols, is present in the person's body; or

(7) (8) where the driver who causes the accident leaves the scene of the accident in violation of section 169.09, subdivision 1 or 6.

Sec. 68. Minnesota Statutes 1996, section 609.21, subdivision 2b, is amended to read:

Subd. 2b. [RESULTING IN BODILY HARM.] A person is guilty of criminal vehicular operation resulting in bodily harm and may be sentenced to imprisonment for not more than one year or to payment of a fine of not more than $3,000, or both, if the person causes bodily harm to another, as a result of operating a motor vehicle:

(1) in a grossly negligent manner;

(2) in a negligent manner while under the influence of:

(i) alcohol;

(ii) a controlled substance; or

(iii) any combination of those elements;

(3) while having an alcohol concentration of 0.10 0.08 or more;

(4) while having an alcohol concentration of 0.10 0.08 or more, as measured within two hours of the time of driving;

(5) while having an alcohol concentration of 0.04 or more at the time of driving, or as measured within two hours of the time of driving, if the person is under the age of 21 years at the time of the violation;

(5) (6) in a negligent manner while knowingly under the influence of a hazardous substance;

(6) (7) in a negligent manner while any amount of a controlled substance listed in schedule I or II, other than marijuana or tetrahydrocannabinols, is present in the person's body; or

(7) (8) where the driver who causes the accident leaves the scene of the accident in violation of section 169.09, subdivision 1 or 6.

Sec. 69. Minnesota Statutes 1996, section 609.21, subdivision 3, is amended to read:

Subd. 3. [RESULTING IN DEATH TO AN UNBORN CHILD.] A person is guilty of criminal vehicular operation resulting in death to an unborn child and may be sentenced to imprisonment for not more than ten years or to payment of a fine of not more than $20,000, or both, if the person causes the death of an unborn child as a result of operating a motor vehicle:

(1) in a grossly negligent manner;

(2) in a negligent manner while under the influence of:

(i) alcohol;

(ii) a controlled substance; or

(iii) any combination of those elements;


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(3) while having an alcohol concentration of 0.10 0.08 or more;

(4) while having an alcohol concentration of 0.10 0.08 or more, as measured within two hours of the time of driving;

(5) while having an alcohol concentration of 0.04 or more at the time of driving, or as measured within two hours of the time of driving, if the person is under the age of 21 years at the time of the violation;

(5) (6) in a negligent manner while knowingly under the influence of a hazardous substance;

(6) (7) in a negligent manner while any amount of a controlled substance listed in schedule I or II, other than marijuana or tetrahydrocannabinols, is present in the person's body; or

(7) (8) where the driver who causes the accident leaves the scene of the accident in violation of section 169.09, subdivision 1 or 6.

A prosecution for or conviction of a crime under this subdivision is not a bar to conviction of or punishment for any other crime committed by the defendant as part of the same conduct.

Sec. 70. Minnesota Statutes 1996, section 609.21, subdivision 4, is amended to read:

Subd. 4. [RESULTING IN INJURY TO UNBORN CHILD.] A person is guilty of criminal vehicular operation resulting in injury to an unborn child and may be sentenced to imprisonment for not more than five years or to payment of a fine of not more than $10,000, or both, if the person causes great bodily harm to an unborn child who is subsequently born alive, as a result of operating a motor vehicle:

(1) in a grossly negligent manner;

(2) in a negligent manner while under the influence of:

(i) alcohol;

(ii) a controlled substance; or

(iii) any combination of those elements;

(3) while having an alcohol concentration of 0.10 0.08 or more;

(4) while having an alcohol concentration of 0.10 0.08 or more, as measured within two hours of the time of driving;

(5) while having an alcohol concentration of 0.04 or more at the time of driving, or as measured within two hours of the time of driving, if the person is under the age of 21 years at the time of the violation;

(5) (6) in a negligent manner while knowingly under the influence of a hazardous substance;

(6) (7) in a negligent manner while any amount of a controlled substance listed in schedule I or II, other than marijuana or tetrahydrocannabinols, is present in the person's body; or

(7) (8) where the driver who causes the accident leaves the scene of the accident in violation of section 169.09, subdivision 1 or 6.

A prosecution for or conviction of a crime under this subdivision is not a bar to conviction of or punishment for any other crime committed by the defendant as part of the same conduct.


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Sec. 71. Minnesota Statutes 1996, section 609.487, is amended by adding a subdivision to read:

Subd. 2a. [MOTOR VEHICLE; DEFINITION.] "Motor vehicle" has the meaning given in section 169.01, subdivision 3, and includes off-road recreational vehicles as defined in section 169.01, subdivision 84, and motorboats as defined in section 169.01, subdivision 85.

Sec. 72. Minnesota Statutes 1996, section 634.15, subdivision 2, is amended to read:

Subd. 2. [TESTIMONY AT TRIAL.] Except in civil proceedings, including proceedings under section 169.123, an accused person or the accused person's attorney may request, by notifying the prosecuting attorney at least ten days before the trial, that the following persons testify in person at the trial on behalf of the state:

(a) A person who performed the laboratory analysis or examination for the report described in subdivision 1, clause (a); or

(b) A person who prepared the blood sample report described in subdivision 1, clause (b).

If a petitioner in a proceeding under section 169.123 subpoenas a person described in paragraph (a) or (b) to testify at the proceeding, the petitioner is not required to pay the person witness fees under section 357.22 in excess of $100.

Sec. 73. [REVISOR'S INSTRUCTION.]

In each section of Minnesota Statutes referred to in column A, the revisor of statutes shall delete the reference in column B, and insert the reference in column C.

Column A Column B Column C

84.83 84.912 169.1217

84.927 84.912 169.1217

86B.305 86B.331 169.121

86B.811 86B.331 169.121

97B.065 86B.331, subd. 4 169.121, subd. 2

97B.066 86B.335, subds. 169.123, subds.

8, 9, and 10 2b, 2c, and 3

168.042, 169.121, subd. 3, 169.121, subd. 3,

subd. 2 para. (3), clause (4) para. (c), clause (5)

Sec. 74. [REPEALER.]

Minnesota Statutes 1996, sections 84.873; 84.91, subdivisions 2, 3, 4, 5, 5a, 6, 7, and 8; 84.911, subdivisions 1, 2, 3, 4, 5, and 6; 84.912; 84.9254; 86B.331, subdivisions 2, 3, 4, 5, 5a, 6, 7, and 8; 86B.335, subdivisions 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, and 12; 86B.337; 97B.066, subdivision 6; and 169.121, subdivision 3a, are repealed.

Sec. 75. [EFFECTIVE DATE.]

Sections 1 to 74 are effective January 1, 1998, and apply to violations occurring on or after that date. However, violations occurring before January 1, 1998, which are listed in Minnesota Statutes, section 169.121, subdivision 3, paragraph (a), are considered prior impaired driving convictions or prior license revocations for purposes of: determining conditional release, long-term monitoring, criminal penalties, sentencing, and administrative licensing sanctions for a person charged for or convicted of a violation occurring on and after January 1, 1998.

Repeal of civil penalty payment and enforcement provisions in Minnesota Statutes, sections 84.911 and 86B.335, applies only to refusals occurring on or after January 1, 1998."

Delete the title and insert:

"A bill for an act relating to crimes; driving while impaired; reducing the legal limit for alcohol concentration from 0.10 to 0.08 for adults and to 0.04 for youth for operating any kind of vehicle; creating a zero-tolerance standard for school bus drivers; advancing criminal penalties and administrative sanctions for committing a DWI crime while having an alcohol


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concentration of 0.20 or more; expanding DWI laws to include snowmobiles, all-terrain vehicles, and motorboats and repealing the separate DWI laws relating to those recreational vehicles; creating an enhanced gross misdemeanor-level DWI crime and restructuring criminal penalties for DWI, including the provision of mandatory minimum periods of incarceration and home detention for repeat DWI offenders; mandating pretrial and posttrial electronic alcohol monitoring for certain offenders; advancing license plate impoundment and motor vehicle forfeiture by one offense; providing an administrative process for forfeiture and permitting it to be based on license revocation; authorizing the use of preliminary breath tests results for prosecuting certain driving offenses; making technical changes; providing enhanced criminal penalties and civil sanctions; amending Minnesota Statutes 1996, sections 84.83, subdivision 5; 84.91, subdivision 1; 84.911, subdivision 7; 84.927, subdivision 1; 86B.331, subdivision 1; 86B.705, subdivision 2; 97A.065, subdivision 2; 97B.065, subdivision 1; 97B.066, subdivisions 1, 5, and by adding subdivisions; 168.042, subdivisions 1, 2, 4, 9, 11, and by adding a subdivision; 169.01, by adding subdivisions; 169.121, subdivisions 1, 1c, 2, 3, 3b, 3c, 4, 6, 11, and by adding subdivisions; 169.1211, subdivision 1, and by adding a subdivision; 169.1217; 169.1218; 169.123, subdivisions 1, 2, 3, 4, 5a, 5c, and 6; 169.126, subdivision 1; 169.1261; 169.129; 171.07, by adding a subdivision; 171.12, by adding a subdivision; 171.19; 171.20, subdivision 4; 171.30, by adding a subdivision; 192A.555; 357.021, subdivision 1a; 364.09; 609.02, subdivision 2, and by adding a subdivision; 609.105; 609.135, subdivision 2; 609.15, subdivision 2; 609.21, subdivisions 1, 2, 2a, 2b, 3, and 4; 609.487, by adding a subdivision; and 634.15, subdivision 2; repealing Minnesota Statutes 1996, sections 84.873; 84.91, subdivisions 2, 3, 4, 5, 5a, 6, 7, and 8; 84.911, subdivisions 1, 2, 3, 4, 5, and 6; 84.912; 84.9254; 86B.331, subdivisions 2, 3, 4, 5, 5a, 6, 7, and 8; 86B.335, subdivisions 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, and 12; 86B.337; 97B.066, subdivision 6; and 169.121, subdivision 3a."

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.

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

H. F. No. 1389, A bill for an act relating to employment; establishing and modifying certain salary provisions for certain public employees; amending Minnesota Statutes 1996, sections 3.855, subdivision 3; 15A.081, subdivision 8; 15A.083, subdivisions 5, 6a, and 7; 43A.17, subdivisions 1, 3, and by adding a subdivision; 43A.18, subdivision 4; 85A.02, subdivision 5a; 298.22, subdivision 1; and 349A.02, subdivision 1; proposing coding for new law in Minnesota Statutes, chapter 15A; repealing Minnesota Statutes 1996, sections 15A.081, subdivisions 1, 7, and 7b; and 43A.18, subdivision 5.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 1996, section 3.855, subdivision 3, is amended to read:

Subd. 3. [OTHER SALARIES AND COMPENSATION PLANS.] The commission shall also:

(1) review and approve, reject, or modify a plan for compensation and terms and conditions of employment prepared and submitted by the commissioner of employee relations under section 43A.18, subdivision 2, covering all state employees who are not represented by an exclusive bargaining representative and whose compensation is not provided for by chapter 43A or other law;

(2) review and approve, reject, or modify a plan for total compensation and terms and conditions of employment for employees in positions identified as being managerial under section 43A.18, subdivision 3, whose salaries and benefits are not otherwise provided for in law or other plans established under chapter 43A;

(3) review and approve, reject, or modify recommendations for salaries submitted by the governor or other appointing authority under section 43A.18, subdivision 5, covering agency head positions listed in section 15A.081 15A.0815;


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(4) review and approve, reject, or modify recommendations for salaries of officials of higher education systems under section 15A.081, subdivision 7b; and

(5) review and approve, reject, or modify plans for compensation, terms, and conditions of employment proposed under section 43A.18, subdivisions 3a and 4.

Sec. 2. Minnesota Statutes 1996, section 15A.081, subdivision 7b, is amended to read:

Subd. 7b. [HIGHER EDUCATION OFFICERS.] The board of trustees of the Minnesota state colleges and universities and the higher education services council shall set the salary rates for, respectively, the chancellor of the Minnesota state colleges and universities and the director of the higher education services office. The board or the council shall submit the proposed salary change to the legislative coordinating commission for approval, modification, or rejection in the manner provided in section 3.855. The salary rate for the chancellor of the Minnesota state colleges and universities may not exceed 95 percent of the salary of the governor under section 15A.082, subdivision 3. For purposes of this subdivision, "the salary rate of the chancellor" does not include:

(1) employee benefits that are also provided for the majority of all other full-time state employees, vacation and sick leave allowances, health and dental insurance, disability insurance, term life insurance, and pension benefits or like benefits the cost of which is borne by the employee or which is not subject to tax as income under the Internal Revenue Code of 1986;

(2) dues paid to organizations that are of a civic, professional, educational, or governmental nature;

(3) reimbursement for actual expenses incurred by the employee that the appointing authority determines to be directly related to the performance of job responsibilities, including any relocation expenses paid during the initial year of employment; or

(4) a housing allowance that is comparable to housing allowances provided to chancellors and university presidents in similar higher education systems nationwide.

The salary of the director of the higher education services office may not exceed the maximum of the salary range for the commissioner of administration. In deciding whether to recommend a salary increase, the governing board or council shall consider the performance of the chancellor or director, including the chancellor's or director's progress toward attaining affirmative action goals.

Sec. 3. Minnesota Statutes 1996, section 15A.081, subdivision 8, is amended to read:

Subd. 8. [EXPENSE ALLOWANCE.] Notwithstanding any law to the contrary, positions listed in subdivision 1 section 15A.0815, subdivisions 3 and 4, constitutional officers, and the commissioner of iron range resources and rehabilitation are authorized an annual expense allowance not to exceed $1,500 for necessary expenses in the normal performance of their duties for which no other reimbursement is provided. The expenditures under this subdivision are subject to any laws and rules relating to budgeting, allotment and encumbrance, preaudit and postaudit. The commissioner of finance may promulgate adopt rules to assure the proper expenditure of these funds, and to provide for reimbursement.

Sec. 4. Minnesota Statutes 1996, section 15A.081, subdivision 9, is amended to read:

Subd. 9. [TRANSFER OF VACATION AND SICK LEAVE; CERTAIN APPOINTEES.] (a) This subdivision governs transfers of accumulated vacation leave and sick leave if the governor appoints the incumbent of a position listed in this section 15A.0815 to another position listed in this section 15A.0815.

(b) An appointee moving between positions in the executive branch shall transfer all vacation leave and sick leave hours to the appointee's credit at the time of the new appointment.


Journal of the House - 43rd Day - Top of Page 2459

(c) The governor may authorize an appointee to transfer accumulated vacation leave and sick leave hours under the following conditions:

(1) an appointee moving to a position in the executive branch from a position outside the executive branch may be permitted to transfer no more than 275 hours of accumulated unliquidated vacation leave and no more than 900 hours of accumulated unliquidated sick leave; and

(2) an appointee moving to a position outside the executive branch from a position within the executive branch may be permitted to transfer accumulated unliquidated vacation leave and sick leave hours up to the maximum accumulations permitted by the personnel policies governing the new position.

The governor shall notify the commissioner of employee relations of any transfers authorized under this paragraph.

Sec. 5. [15A.0815] [SALARY LIMITS FOR CERTAIN EMPLOYEES.]

Subdivision 1. [SALARY LIMITS.] The governor or other appropriate appointing authority shall set the salary rates for positions listed in this section within the salary limits listed in subdivisions 2 to 5, subject to approval of the legislative coordinating commission and the legislature as provided by sections 3.855, 15A.081, subdivision 7b, and 43A.18, subdivision 5.

Subd. 2. [HIGHER EDUCATION SYSTEM LIMITS.] The salary rate of the chancellor of Minnesota state colleges and universities may not exceed 95 percent of the salary of the governor. For purposes of this subdivision, "the salary rate of the chancellor" does not include:

(1) employee benefits that are also provided for the majority of all other full-time state employees, vacation and sick leave allowances, health and dental insurance, disability insurance, term life insurance, and pension benefits;

(2) any benefits the cost of which is borne by the employee or which is not subject to tax as income under the Internal Revenue Code of 1986;

(3) dues paid to organizations that are of a civic, professional, educational, or governmental nature;

(4) reimbursement for actual expenses incurred by the employee that the appointing authority determines to be directly related to the performance of job responsibilities, including any relocation expenses paid during the initial year of employment; or

(5) a housing allowance that is comparable to housing allowances provided to chancellors and university presidents in similar higher education systems nationwide.

Subd. 3. [GROUP I SALARY LIMITS.] The salaries for positions in this subdivision may not exceed 85 percent of the salary of the governor:

Commissioner of administration;

Commissioner of agriculture;

Commissioner of children, families, and learning;

Commissioner of commerce;

Commissioner of corrections;

Commissioner of economic security;

Commissioner of employee relations;


Journal of the House - 43rd Day - Top of Page 2460

Commissioner of finance;

Commissioner of health;

Executive director, higher education services office;

Commissioner, housing finance agency;

Commissioner of human rights;

Commissioner of human services;

Executive director, state board of investment;

Commissioner of labor and industry;

Executive director, Minnesota state high school league;

Commissioner of natural resources;

Director of office of strategic and long-range planning;

Commissioner, pollution control agency;

Commissioner of public safety;

Commissioner, department of public service;

Commissioner of revenue;

Commissioner of trade and economic development;

Commissioner of transportation; and

Commissioner of veterans affairs.

Subd. 4. [GROUP II SALARY LIMITS.] The salaries for positions in this subdivision may not exceed 75 percent of the salary of the governor:

Ombudsman for corrections;

Executive director of gambling control board;

Commissioner, bureau of mediation services;

Ombudsman for mental health and retardation;

Executive director of pari-mutuel racing;

Executive director, public employees retirement association;

Commissioner, public utilities commission;

Executive director, state retirement system; and

Executive director, teachers retirement association.


Journal of the House - 43rd Day - Top of Page 2461

Subd. 5. [GROUP III SALARY LIMITS.] The salary for a position in this subdivision may not exceed 25 percent of the salary of the governor:

Chair, metropolitan airports commission.

Sec. 6. Minnesota Statutes 1996, section 15A.083, subdivision 5, is amended to read:

Subd. 5. [TAX COURT.] Salaries The salary of judges a judge of the tax court are is the same as the base salary for a district judges as set under section 15A.082, subdivision 3 court judge. The salary of the chief tax court judge is the same as the salary for a chief district court judge.

Sec. 7. Minnesota Statutes 1996, section 15A.083, subdivision 6a, is amended to read:

Subd. 6a. [ADMINISTRATIVE LAW JUDGE; MAXIMUM SALARY SALARIES.] The salary of the chief administrative law judge is the same as the salary of a district court judge. The salaries of the assistant chief administrative law judge and administrative law judge supervisors are 95 percent of the salary of a district court judge. The maximum salary of an administrative law judge in the classified service employed by the office of administrative hearings is 90 percent of the salary of a district court judges as set under section 15A.082, subdivision 3 judge.

Sec. 8. Minnesota Statutes 1996, section 15A.083, subdivision 7, is amended to read:

Subd. 7. [WORKERS' COMPENSATION COURT OF APPEALS AND COMPENSATION JUDGES.] Salaries of judges of the workers' compensation court of appeals are the same as the salary for district court judges as set under section 15A.082, subdivision 3. The salary of the chief judge of the workers' compensation court of appeals is the same as the salary for a chief district court judge. Salaries of compensation judges are 75 90 percent of the salary of district court judges. The chief workers' compensation settlement judge at the department of labor and industry may be paid an annual salary that is up to five percent greater than the salary of workers' compensation settlement judges at the department of labor and industry.

Sec. 9. Minnesota Statutes 1996, section 43A.17, subdivision 1, is amended to read:

Subdivision 1. [SALARY LIMITS.] As used in subdivisions 1 to 9, "salary" means hourly, monthly, or annual rate of pay including any lump-sum payments and cost-of-living adjustment increases but excluding payments due to overtime worked, shift or equipment differentials, work out of class as required by collective bargaining agreements or plans established under section 43A.18, and back pay on reallocation or other payments related to the hours or conditions under which work is performed rather than to the salary range or rate to which a class is assigned. For presidents of state universities, "salary" does not include a housing allowance provided through a compensation plan approved under section 43A.18, subdivision 3a.

The salary, as established in section 15A.081 15A.0815, of the head of a state agency in the executive branch is the upper limit on the salaries of individual employees in the agency. The salary of the commissioner of labor and industry is the upper limit of salaries of employees in the bureau of mediation services. However, if an agency head is assigned a salary that is lower than the current salary of another agency employee, the employee retains the salary, but may not receive an increase in salary as long as the salary is above that of the agency head. The commissioner may grant exemptions from these upper limits as provided in subdivisions 3 and 4.

Sec. 10. Minnesota Statutes 1996, section 43A.17, subdivision 3, is amended to read:

Subd. 3. [UNUSUAL EMPLOYMENT SITUATIONS.] Upon the request of the appointing authority, and when the commissioner determines that changes in employment situations create difficulties in attracting or retaining employees, the commissioner may approve an unusual employment situation increase to advance an employee within the compensation plan. Such The action will must be consistent with applicable provisions of collective bargaining agreements or plans pursuant to adopted under section 43A.18. The commissioner shall review each proposal giving due consideration to salary rates paid to other employees in the same class and agency and may approve any request which in the commissioner's judgment is in the best interest of the state. If the commissioner determines that the position requires special expertise necessitating a higher salary to attract or retain qualified persons, the commissioner may grant an exemption not to exceed 120 percent of the base salary of the head of the agency or the maximum rate established for the position, whichever is less.


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Sec. 11. Minnesota Statutes 1996, section 43A.18, subdivision 4, is amended to read:

Subd. 4. [PLANS NOT ESTABLISHED BUT APPROVED BY COMMISSIONER.] (a) Notwithstanding any other law to the contrary, terms and conditions of employment for employees listed in this subdivision must be set by appointing authorities within the limits of compensation plans that have been approved by the commissioner before becoming effective. Compensation plans established under paragraphs paragraph (c) and (d), must be reviewed and approved, modified, or rejected by the legislature and the legislative coordinating commission on employee relations under section 3.855, subdivision subdivisions 2 and 3, before becoming effective.

(b) Total compensation for employees who are not covered by a collective bargaining agreement in the offices of the governor, lieutenant governor, attorney general, secretary of state, state auditor, and state treasurer must be determined by the governor, lieutenant governor, attorney general, secretary of state, state auditor, and state treasurer, respectively.

(c) Total compensation for classified administrative law judges in the office of administrative hearings must be determined by the chief administrative law judge.

(d) Total compensation for unclassified positions not covered by a collective bargaining agreement in the higher education services office must be determined by the higher education services office.

Sec. 12. Minnesota Statutes 1996, section 43A.18, subdivision 5, is amended to read:

Subd. 5. [GOVERNOR APPOINTING AUTHORITIES TO RECOMMEND CERTAIN SALARIES.] (a) The governor shall, by July 1 of each odd-numbered year, or other appropriate appointing authority, may submit to the legislative coordinating commission on employee relations recommendations for salaries within the salary range limits for the positions listed in section 15A.081, subdivisions 1 and 7 15A.0815, subdivisions 3 to 5. The governor An appointing authority may also propose additions or deletions of positions from those listed.

(b) Before submitting the recommendations, the governor appointing authority shall consult with the commissioner of administration, the commissioner of finance, and the commissioner of employee relations concerning the recommendations.

(c) In making recommendations, the governor appointing authority shall consider the criteria established in subdivision 8 and the performance of individual incumbents. The performance evaluation must include a review of an incumbent's progress toward attainment of affirmative action goals. The governor appointing authority shall establish an objective system for quantifying knowledge, abilities, duties, responsibilities, and accountabilities and in determining recommendations rate each position by this system.

(d) Before the governor's appointing authority's recommended salaries take effect, the recommendations must be reviewed and approved, rejected, or modified by the legislative coordinating commission on employee relations and the legislature under section 3.855, subdivision subdivisions 2 and 3. The governor may also at any time propose changes in the salary rate of any positions covered by this subdivision, which must be submitted and approved in the same manner as provided in this subdivision. If, when the legislature is not in session, the commission fails to reject or modify salary recommendations of the governor within 30 calendar days of their receipt, the recommendations are deemed to be approved.

(e) The governor appointing authority shall set the initial salary of a head of a new agency or a chair of a new metropolitan board or commission whose salary is not specifically prescribed by law after consultation with the commissioner, whose recommendation is advisory only. The amount of the new salary must be comparable to the salary of an agency head or commission chair having similar duties and responsibilities.

(f) The salary of a newly appointed head of an agency or chair of a metropolitan agency listed in section 15A.081, subdivision 1 or 7 15A.0815, subdivisions 2 to 5, may be increased or decreased by the governor appointing authority, from the salary previously set for that position within 30 days of the new appointment after consultation with the commissioner. If the governor appointing authority, increases a salary under this paragraph, the governor appointing authority shall submit the new salary to the legislative coordinating commission on employee relations and the full legislature for approval, modification, or rejection under section 3.855, subdivision subdivisions 2 and 3. If, when the legislature is not in session, the commission fails to reject or modify salary recommendations of the governor within 30 calendar days of their receipt, the recommendations are deemed to be approved.


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Sec. 13. Minnesota Statutes 1996, section 85A.02, subdivision 5a, is amended to read:

Subd. 5a. [EMPLOYEES.] (a) The board shall appoint an administrator who shall serve as the executive secretary and principal administrative officer of the board and, subject to its approval, the administrator shall operate the Minnesota zoological garden and enforce all rules and policy decisions of the board. The administrator must be chosen solely on the basis of training, experience, and other qualifications appropriate to the field of zoo management and development. The board shall set the compensation for salary of the administrator within the limits established for the commissioner of agriculture in section 15A.081, subdivision 1. The salary of the administrator may not exceed 85 percent of the salary of the governor. The administrator shall perform duties assigned by the board and shall serve serves in the unclassified service at the pleasure of the board. The administrator, with the participation of the board, shall appoint a development director in the unclassified service or contract with a development consultant to establish mechanisms to foster community participation in and community support for the Minnesota zoological garden. The board may employ other necessary professional, technical, and clerical personnel. Employees of the zoological garden are eligible for salary supplement in the same manner as employees of other state agencies. The commissioner of finance shall determine the amount of salary supplement based on available funds.

(b) The board may contract with individuals to perform professional services and may contract for the purchases of necessary species exhibits, supplies, services, and equipment. The board may also contract for the construction and operation of entertainment facilities on the zoo grounds that are not directly connected to ordinary functions of the zoological garden. The zoo board shall may not enter into any a final agreement for construction of any an entertainment facility that is not directly connected to the ordinary functions of the zoo until after final construction plans have been submitted to the chairs of the senate finance and house appropriations committees for their recommendations.

The zoo may not contract for entertainment during the period of the Minnesota state fair that would directly compete with entertainment at the Minnesota state fair.

Sec. 14. Minnesota Statutes 1996, section 177.24, subdivision 1, is amended to read:

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

(1) "Large employer" means an enterprise whose annual gross volume of sales made or business done is not less than $362,500 $500,000 (exclusive of excise taxes at the retail level that are separately stated) and covered by the Minnesota fair labor standards act, sections 177.21 to 177.35.

(2) "Small employer" means an enterprise whose annual gross volume of sales made or business done is less than $362,500 $500,000 (exclusive of excise taxes at the retail level that are separately stated) and covered by the Minnesota fair labor standards act, sections 177.21 to 177.35.

(b) Except as otherwise provided in sections 177.21 to 177.35, every large employer must pay each employee wages at a rate of at least $4.25 $5.40 an hour beginning September 1, 1997. Every small employer must pay each employee at a rate of at least $4 $5.15 an hour beginning September 1, 1997.

(c) A large employer must pay each employee at a rate of at least the minimum wage set by this section or federal law without the reduction for training wage or full-time student status allowed under federal law for the initial employment of employees under age 20.

Sec. 15. Minnesota Statutes 1996, section 298.22, subdivision 1, is amended to read:

Subdivision 1. (1) The office of governor shall appoint the commissioner of iron range resources and rehabilitation is created. The commissioner shall be appointed by the governor under the provisions of section 15.06.

(2) The commissioner may hold such other positions or appointments as that are not incompatible with duties as commissioner of iron range resources and rehabilitation. The commissioner may appoint a deputy commissioner. All expenses of the commissioner, including the payment of such assistance as may be necessary, shall must be paid out of the


Journal of the House - 43rd Day - Top of Page 2464

amounts appropriated by section 298.28. The compensation salary of the commissioner shall must be set by the legislative coordinating commission and may not exceed the maximum salary set for the commissioner of administration under section 15A.081, subdivision 1 166 percent of the average salary of a steelworker in the taconite relief area, as certified by the executive director of the United Steelworkers of America, district 11.

(3) When the commissioner shall determine determines that distress and unemployment exists or may exist in the future in any county by reason of the removal of natural resources or a possibly limited use thereof of natural resources in the future and the any resulting decrease in employment resulting therefrom, now or hereafter, the commissioner may use such whatever amounts of the appropriation made to the commissioner of revenue in section 298.28 as that are determined to be necessary and proper in the development of the remaining resources of said the county and in the vocational training and rehabilitation of its residents, except that the amount needed to cover cost overruns awarded to a contractor by an arbitrator in relation to a contract awarded by the commissioner or in effect after July 1, 1985, is appropriated from the general fund. For the purposes of this section, "development of remaining resources" includes, but is not limited to, the promotion of tourism.

Sec. 16. Minnesota Statutes 1996, section 349A.02, subdivision 1, is amended to read:

Subdivision 1. [DIRECTOR.] A state lottery is established under the supervision and control of the director of the state lottery appointed by the governor with the advice and consent of the senate. The director must be qualified by experience and training in the operation of a lottery to supervise the lottery. The director serves in the unclassified service. The annual salary rate authorized for the director is equal to 80 85 percent of the salary rate prescribed for the governor as of the effective date of Laws 1993, chapter 146.

Sec. 17. [SALARIES OF CONSTITUTIONAL OFFICERS, LEGISLATORS, AND JUDGES.]

(a) The salaries of constitutional officers are increased by 2.5 percent effective July 1, 1997, and by 2.5 percent effective January 1, 1998.

(b) The salaries of legislators are increased by 5.0 percent effective January 4, 1999.

(c) The salaries of the judges of the supreme court, court of appeals, and district court are increased by 2.5 percent effective July 1, 1997, and by 2.5 percent effective January 1, 1998.

(d) Effective July 1, 1999, the salaries of judges of the supreme court, court of appeals, and district court are increased by the average of the general salary adjustments for state employees in fiscal year 1998 provided by negotiated collective bargaining agreements or arbitration awards ratified by the legislature in the 1998 legislative session.

(e) Effective January 1, 2000, the salaries of judges of the supreme court, court of appeals, and district court are increased by the average of the general salary adjustments for state employees in fiscal year 1999 provided by negotiated collective bargaining agreements or arbitration awards ratified by the legislature in the 1998 legislative session.

(f) The commissioner of employee relations shall calculate the average of the general salary adjustments provided by negotiated collective bargaining agreements or arbitration awards ratified by the legislature in the 1998 legislative session. Negotiated collective bargaining agreements or arbitration awards that do not include general salary adjustments may not be included in these calculations. The commissioner shall weight the general salary adjustments by the number of full-time equivalent employees covered by each agreement or arbitration award. The commissioner shall calculate the average general salary adjustment for each fiscal year covered by the agreements or arbitration awards. The results of these calculations must be expressed as percentages, rounded to the nearest one-tenth of one percent. The commissioner shall calculate the new salaries for the positions listed in paragraphs (d) and (e) using the applicable percentages from the calculations in this paragraph and report them to the speaker of the house, the president of the senate, the chief justice of the supreme court, and the governor.

Sec. 18. [PHASE-IN OF SALARY INCREASES.]

(a) Notwithstanding Minnesota Statutes, section 15A.083, subdivision 6a, the salary of an administrative law judge employed by the office of administrative hearings is 85 percent of the salary of a district court judge effective July 1, 1997. After June 30, 1998, the salary of an administrative law judge employed by the office of administrative hearings is governed


Journal of the House - 43rd Day - Top of Page 2465

by Minnesota Statutes, section 15A.083, subdivision 6a. If an employee's current salary exceeds the salary provided by this subdivision, the employee retains that salary but may not receive a salary increase until the salary provided by this section exceeds the employee's current salary.

(b) Notwithstanding Minnesota Statutes, section 15A.083, subdivision 6a, the salary of the assistant chief administrative law judge and the administrative law judge supervisor in the office of administrative hearings is 90 percent of the salary of a district court judge effective July 1, 1997. After June 30, 1998, the salary of the assistant chief administrative law judge and the administrative law judge supervisor is governed by Minnesota Statutes, section 15A.083, subdivision 6a. If an employee's current salary exceeds the salary provided by this subdivision, the employee retains the salary but may not receive a salary increase until the salary provided by this section exceeds the employee's current salary.

(c) Notwithstanding Minnesota Statutes, section 15A.083, subdivision 7, the salary of compensation judges is 85 percent of the salary of a district court judge effective July 1, 1997. After June 30, 1998, the salary of compensation judges is governed by Minnesota Statutes, section 15A.083, subdivision 7.

Sec. 19. [REVISOR INSTRUCTION.]

The revisor of statutes shall substitute the reference "section 15A.0815" for each reference to sections 15A.081, subdivisions 1, 7, and 7b, wherever they occur in the next edition of Minnesota Statutes and Minnesota Rules.

Sec. 20. [REPEALER.]

Minnesota Statutes 1996, sections 15A.081, subdivisions 1 and 7, are repealed."

Delete the title and insert:

"A bill for an act relating to employment; establishing and modifying certain salary provisions for certain public employees; modifying salary limits for certain agency heads; raising the minimum wage; raising the salaries of constitutional officers, legislators, and judges; amending Minnesota Statutes 1996, sections 3.855, subdivision 3; 15A.081, subdivisions 7b, 8, and 9; 15A.083, subdivisions 5, 6a, and 7; 43A.17, subdivisions 1 and 3; 43A.18, subdivisions 4 and 5; 85A.02, subdivision 5a; 177.24, subdivision 1; 298.22, subdivision 1; and 349A.02, subdivision 1; proposing coding for new law in Minnesota Statutes, chapter 15A; repealing Minnesota Statutes 1996, sections 15A.081, subdivisions 1 and 7."

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.

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

H. F. No. 1684, A bill for an act relating to education; kindergarten through grade 12; providing for general education; special programs; lifework development; education organization, cooperation, and facilities; education excellence; academic performance; education policy issues; libraries; technology; state agencies; conforming and technical amendments; appropriating money; amending Minnesota Statutes 1996, sections 120.062, subdivisions 7 and 9; 120.0621, subdivisions 5a, 5b, 6, and by adding a subdivision; 120.064, subdivisions 3, 4, 4a, 5, 8, 11, 20a, and by adding subdivisions; 120.101, subdivision 5c, and by adding a subdivision; 120.17, subdivision 3a; 120.181; 121.11, subdivision 7c, and by adding a subdivision; 121.1115, by adding subdivisions; 121.15, by adding subdivisions; 121.155, by adding a subdivision; 121.602, subdivisions 1, 2, and 4; 121.611; 121.615, subdivisions 2, 3, 5, 6, 7, 8, 9, and 10; 121.703, subdivision 3; 121.904, subdivision 4a; 123.34, by adding a subdivision; 123.3514, subdivisions 4, 4a, 4c, 4e, 6c, 8, and by adding subdivisions; 123.39, subdivision 6; 123.935, subdivision 7; 124.155, subdivision 1; 124.17, subdivision 4, and by adding a subdivision; 124.193; 124.195, subdivisions 2, 7, 10, 11, and by adding a subdivision; 124.225, subdivisions 1, 3a, 7b, 7d, 7f, 8a, 10, 13, 14, 15, and 17; 124.226, subdivisions 4, 9, and 10; 124.2445; 124.2455; 124.248, subdivisions 1 and 3; 124.2613, subdivisions 3 and 6; 124.2727, subdivisions 6a, 6c, and 6d; 124.273, subdivisions 1d, 1e, 1f, and 5; 124.312, subdivisions 4 and 5; 124.313; 124.314, subdivisions 1 and 2; 124.3201,


Journal of the House - 43rd Day - Top of Page 2466

subdivisions 1, 2, 3, and 4; 124.321, subdivision 1; 124.323, subdivisions 1 and 2; 124.42, subdivision 4; 124.431, subdivisions 2 and 11; 124.45; 124.481; 124.573, subdivision 2f; 124.574, subdivisions 1, 2d, 2f, 5, 6, and 9; 124.646, subdivision 1; 124.83, subdivisions 1 and 2; 124.86, subdivision 2, and by adding a subdivision; 124.91, subdivisions 1 and 5; 124.912, subdivisions 1, 2, and 3; 124.916, subdivisions 1, 2, and 3; 124.918, subdivision 6; 124.95, subdivision 2; 124.961; 124A.03, subdivision 1c; 124A.036, subdivisions 5 and 6; 124A.04, subdivision 2; 124A.22, subdivisions 1, 2, as amended, 3, 6, 6a, 10, 11, 13b, and by adding a subdivision; 124A.225, subdivisions 1 and 4; 124A.23, subdivisions 1 and 3; 124A.26, subdivision 1; 124A.28; 124C.45, subdivision 1a; 124C.46, subdivisions 1 and 2; 124C.498, subdivision 2; 125.05, subdivisions 1c and 2; 125.12, subdivision 14; 126.22, subdivision 2; 126.23, subdivision 1; 126.77, subdivision 1; 126.82; 127.27, subdivision 10; 127.282; 128C.02, subdivision 2; 128C.08, subdivision 5; 134.155, subdivisions 2 and 3; 134.34, subdivision 4; and 136A.233, by adding a subdivision; Laws 1991, chapter 265, article 1, section 30, as amended; Laws 1992, chapter 499, article 7, section 31; Laws 1995, First Special Session chapter 3, article 1, section 56; article 2, section 52; article 3, section 11, subdivisions 1, 2, and 5; article 11, section 21, subdivision 3; article 12, section 7, subdivision 1; Laws 1996, chapter 412, article 4, section 34, subdivision 4; and article 12, sections 8 and 11; proposing coding for new law in Minnesota Statutes, chapters 120; 121; 124; 126; and 127; repealing Minnesota Statutes 1996, sections 121.904, subdivision 4d; 124.177; 124.225, subdivisions 13, 14, 15, 16, and 17; 124.226, subdivisions 1, 3, 3a, 6, and 10; 124.3201, subdivisions 2a and 2b; 124A.22, subdivisions 2a, 13, and 13a; 124A.697; 124A.698; 124A.70; 124A.71; 124A.711; 124A.72; 124A.73; 126.113; 128B.10; 134.34, subdivision 4a; and 134.46; Laws 1993, chapter 146, article 5, section 20; Laws 1994, chapter 647, article 7, section 18; and Laws 1995, First Special Session chapter 3, article 12, section 8.

Reported the same back with the following amendments:

Page 11, line 11, strike "according to" and insert "under"

Page 11, line 12, strike "according to" and insert "under"

Page 12, line 5, after the period, insert "Each school district that has a state-approved public alternative program must reserve revenue in an amount equal to at least 90 percent of the district's per pupil general education revenue times the number of pupils attending a state-approved public alternative program. The amount of reserved revenue available under this subdivision may only be spent for program costs associated with the state-approved public alternative program."

Page 12, line 9, after the period, insert "Each school district that has a state-approved public alternative program must reserve revenue in an amount equal to at least 90 percent of the district's per pupil general education revenue times the number of pupils attending a state-approved public alternative program. The amount of reserved revenue available under this subdivision may only be spent for program costs associated with the state-approved public alternative program."

Page 12, line 13, after "credit" insert "or graduation standards"

Page 48, delete section 64

Page 50, delete lines 14 to 18 and insert:

"For fiscal year 1998 only, a school district's LEP revenue under Minnesota Statutes, section 124.273, subdivision 1g, is increased by $165 times the district's LEP pupil units determined according to article 2, section 3."

Page 50, after line 25, insert:

"Sec. 69. [SHIFT SIMPLIFICATION APPROPRIATION.]

$18,700,000 is appropriated in fiscal year 1997 from the general fund to the commissioner of children, families, and learning for additional general education aid for the simplification of the property tax revenue recognition shift according to this article."

Page 50, line 33, delete "$2,522,599,000" and insert "$2,524,183,000"


Journal of the House - 43rd Day - Top of Page 2467

Page 50, line 34, delete "$2,496,758,000" and insert "$2,495,217,000"

Page 50, line 35, delete "$227,451,000" and insert "$227,499,000"

Page 50, line 36, delete "$2,295,148,000" and insert "$2,296,684,000"

Page 51, line 1, delete "$255,016,000" and insert "$240,444,000"

Page 51, line 2, delete "$2,241,742,000" and insert "$2,254,773,000"

Page 53, line 7, delete "$14,091,000" and insert "$14,081,000"

Page 53, line 10, delete "$12,959,000" and insert "$12,949,000"

Page 53, line 15, delete "$35,679,000" and insert "$35,480,000"

Page 53, line 16, delete "$37,986,000" and insert "$38,159,000"

Page 53, line 18, delete "$32,366,000" and insert "$32,167,000"

Page 53, line 19, delete "$3,597,000" and insert "$3,574,000"

Page 53, line 20, delete "$34,389,000" and insert "$34,585,000"

Page 54, line 17, delete the first comma and insert "to"

Page 56, delete section 2

Page 69, line 30, after "percent" reinstate "for fiscal year"

Page 69, line 31, before "of" insert "1998 and 5.8 percent for fiscal year 1999 and later years"

Page 69, line 36, after "revenue" insert "and 1.7 percent of the district's general education revenue for fiscal years 1999 and later"

Page 73, line 12, strike "and"

Page 73, line 17, before the period, insert "; and

(6) For fiscal year 1998 only, the formula allowance used in clause (1) is the formula allowance under section 124A.22, subdivision 2, minus $170 and the formula allowance in clause (2) is the formula allowance under section 124A.22, subdivision 2, minus $300"

Page 80, line 21, delete "$2,243,000" and insert "$2,341,000"

Page 80, line 22, delete "$2,689,000" and insert "$2,738,000"

Page 80, line 24, delete "$2,152,000" and insert "$2,250,000"

Page 80, line 25, delete "$238,000" and insert "$249,000"

Page 80, line 26, delete "$2,451,000" and insert "$2,489,000"

Page 82, line 4, delete "$282,508,000" and insert "$282,505,000"


Journal of the House - 43rd Day - Top of Page 2468

Page 82, line 5, delete "$381,302,000" and insert "$382,519,000"

Page 82, line 7, delete "$258,162,000" and insert "$258,159,000"

Page 82, line 9, delete "$352,618,000" and insert "$353,835,000"

Page 82, line 16, delete "$684,000" and insert "$644,000"

Page 82, line 32, delete "$28,045,000" and insert "$26,812,000"

Page 82, line 33, delete "$47,654,000" and insert "$46,439,000"

Page 82, line 35, delete "$26,803,000" and insert "$25,570,000"

Page 82, line 36, delete "$2,978,000" and insert "$2,841,000"

Page 83, line 1, delete "$44,676,000" and insert "$43,598,000"

Page 83, line 3, delete "$44,064,000" and insert "$46,809,000"

Page 83, line 4, delete "$ 2,547,000" and insert "$ 2,852,000"

Page 83, line 6, delete "$10,533,000" and insert "$13,278,000"

Page 83, line 11, delete "$1,170,000" and insert "$1,475,000"

Page 105, line 24, delete "February" and insert "April"

Page 107, line 5, delete "February" and insert "April"

Page 117, line 13, delete "$35,679,000" and insert "$35,480,000"

Page 117, line 14, delete "$37,986,000" and insert "$38,159,000"

Page 117, line 15, delete "$38,211,000" and insert "$38,390,000"

Page 117, line 19, delete "$3,821,000" and insert "$3,842,000"

Page 117, line 20, delete "$34,390,000" and insert "$34,548,000"

Page 125, after line 35, insert:

"Subd. 11. [FLOOD LOSSES.] For grants and loans to independent school district Nos. 2854, Ada-Borup; 2176, Warren-Alvarado-Oslo; 846, Breckenridge; and other districts affected by the 1997 floods for expenses associated with the floods not covered by insurance or state or federal disaster relief:

$300,000 . . . . . 1998

The commissioner shall award grants and loans to school districts to cover expenses associated with the 1997 floods. The grants or loans may be for capital losses or for extraordinary operating expenses resulting from the floods. School districts shall repay any loan or grant amounts to the department if those amounts are otherwise funded from other sources. The commissioner shall establish the terms and conditions of any loans and may request any necessary information from school districts before awarding a grant or loan."

Page 151, line 34, delete everything after the period


Journal of the House - 43rd Day - Top of Page 2469

Page 151, delete lines 35 and 36

Page 154, line 16, delete "$187" and insert "$163"

Page 157, line 29, delete "for fiscal"

Page 157, line 30, delete "year 1998"

Page 180, delete line 34 and insert:

"Any balance in the first year does not cancel but is available in the second year."

Page 203, line 14, delete "$24,389,000" and insert "$24,598,000"

Page 203, line 15, delete "$24,007,000" and insert "$24,216,000"

Renumber the sections in sequence and correct internal references

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. 2158, A bill for an act relating to the organization and operation of state government; appropriating money for economic development and certain agencies of state government; establishing and modifying certain programs; providing for regulation of certain activities and practices; standardizing certain licensing service fees; establishing and modifying certain fees; modifying housing programs; establishing a task force; providing for a manufactured home park to be a conditional use; requiring reports; amending Minnesota Statutes 1996, sections 38.02, subdivisions 1, 2, and 3; 44A.01, subdivision 2; 60A.075, by adding a subdivision; 60A.23, subdivision 8; 60A.71, by adding a subdivision; 60K.06, subdivision 2; 65B.48, subdivision 3; 72B.04, subdivision 10; 79.253, subdivision 1; 79.255, by adding a subdivision; 79.361, subdivision 1; 79.371, by adding a subdivision; 82.21, subdivision 1; 82B.09, subdivision 1; 115A.908, subdivision 2; 115B.03, subdivision 5; 115C.021, by adding a subdivision; 115C.03, subdivision 9; 115C.08, subdivision 4; 115C.09, subdivision 3, and by adding a subdivision; 115C.13; 116J.551; 116J.552, subdivision 4; 116J.553, subdivision 2; 116J.554, subdivision 1; 116L.04, subdivision 1; 116O.05, by adding a subdivision; 116O.122, subdivision 1; 138.91, by adding a subdivision; 155A.045, subdivision 1; 176.181, subdivision 2a; 268.022, subdivision 2; 268.362, subdivision 2; 268.38, subdivision 7; 268.63; 268.672, subdivision 6, and by adding subdivisions; 268.673, subdivisions 3, 4a, and 5; 268.6751, subdivision 1; 268.677, subdivision 1; 268.681; 270.97; 298.22, by adding a subdivision; 326.86, subdivision 1; 394.25, by adding a subdivision; 446A.04, subdivision 5; 446A.081, subdivisions 1, 4, and 9; 462.357, by adding a subdivision; 462A.05, subdivisions 14d, 30, 39, and by adding a subdivision; 462A.13; 462A.201, subdivision 2; 462A.205; 462A.206, subdivisions 2 and 4; 462A.207, subdivisions 1, 2, 3, 4, and 6; 462A.21, subdivision 12a; 469.303; and 469.305, subdivision 1; proposing coding for new law in Minnesota Statutes, chapters 45; 79; 116J; 268; 366; 462A; and 469; repealing Minnesota Statutes 1996, sections 115A.908, subdivision 3; 268.39; 268.672, subdivision 4; 268.673, subdivision 6; 268.676; 268.677, subdivisions 2 and 3; 268.678; 268.679, subdivision 3; 462A.05, subdivision 20; 462A.206, subdivision 5; and 462A.21, subdivisions 4k, 12, and 14.

Reported the same back with the following amendments:

Page 2, line 25, delete "22,815,000" and insert "22,875,000"

Page 4, line 25, after "$35,000" insert "the first year"


Journal of the House - 43rd Day - Top of Page 2470

Page 6, after line 24, insert:

"$150,000 each year is for grants to create and operate community development corporations under Minnesota Statutes, section 116J.982, in Hennepin and Ramsey counties, that target Asian-Pacific Minnesotans."

Page 7, line 45, after "$500,000" insert "the first year"

Page 8, line 48, delete "$300,000" and insert "$323,000" and delete "$800,000" and insert "$823,000"

Page 9, line 56, delete "$500,000" and insert "$5,000,000"

Page 10, line 26, after the period, insert "This appropriation is available until June 30, 1999."

Page 10, delete lines 62 to 67

Page 14, line 13, delete "3,241,000" and insert "3,291,000"

Page 14, after line 13, insert:

"The commission shall assess the amount appropriated in section 26 in addition to its assessments to public utilities in fiscal year 1998 under Minnesota Statutes, section 216B.62, subdivision 3."

Page 15, line 8, delete "$528,000" and insert "$479,000"

Page 23, delete section 32

Page 25, after line 22, insert:

"Sec. 36. [COMMISSIONER OF NATURAL RESOURCES; AVAILABILITY OF APPROPRIATION.]

The appropriation in Laws 1996, chapter 407, section 3, of $750,000 to the commissioner of natural resources from the taconite protection fund for acquisition and development of the Iron Range off-highway vehicle recreation area does not cancel but is available until June 30, 1999.

Sec. 37. [COMMISSIONER OF ECONOMIC SECURITY; GRANT TO ST. PAUL.]

The commissioner of economic security shall spend all of the allocation to the city of St. Paul under Minnesota Statutes, section 469.305, subdivision 1, for fiscal year 1997, that has not been spent or otherwise committed by the city of St. Paul on the effective date of this section, as a grant to the city of St. Paul for community development corporations to be used for microenterprise and equity loans to eligible businesses located or to be located at or near the Dale Street shops/Maxson Steel industrial sites and the Minnehaha Mall area of the city of St. Paul. The commissioner or the city of St. Paul shall place this amount in an interest-bearing account and shall make the money in the account available for the purposes of this section only when the contamination cleanup at the Dale Street shops/Maxson Steel industrial sites has progressed to the point where redevelopment can occur. For purposes of this section, "eligible businesses" is limited to small beginning businesses, including an existing business that is starting a new location, where similar businesses have demonstrated success in similar neighborhoods. The $10,000 maximum limit on microenterprise loans under Minnesota Statutes, section 116M.18, subdivision 4a, clause (2), does not apply to the grant under this section."

Page 35, line 21, delete "79.31" and insert "79.371"


Journal of the House - 43rd Day - Top of Page 2471

Page 37, after line 17, insert:

"Sec. 57. Minnesota Statutes 1996, section 116J.615, subdivision 1, is amended to read:

Subdivision 1. [DUTIES OF DIRECTOR.] The director of tourism shall:

(1) publish, disseminate, and distribute informational and promotional literature;

(2) promote and encourage the expansion and development of international tourism marketing;

(3) advertise and disseminate information about travel opportunities in the state of Minnesota;

(4) aid various local communities to improve their tourism marketing programs;

(5) coordinate and implement a comprehensive state tourism marketing program that takes into consideration all public and private businesses and attractions;

(6) conduct market research and analysis to improve marketing techniques in the area of tourism;

(7) investigate and study conditions affecting Minnesota's tourism industry, collect and disseminate information, and engage in technical studies, scientific investigations, and statistical research and educational activities necessary or useful for the proper execution of the powers and duties of the director in promoting and developing Minnesota's tourism industry, both within and outside the state;

(8) apply for, accept, receive, and expend any funds for the promotion of tourism in Minnesota. All money received by the director under this subdivision shall be deposited in the state treasury and is appropriated to the director for the purposes for which the money has been received. The director may enter into interagency agreements and may agree to share net revenues with the contributing agencies. The money does not cancel and is available until expended; and

(9) plan and conduct information and publicity programs to attract tourists, visitors, and other interested persons from outside the state to this state; encourage and coordinate efforts of other public and private organizations or groups of citizens to publicize facilities and attractions in this state; and work with representatives of the hospitality and tourism industry to carry out its programs."

Pages 46 to 48, delete sections 72 to 75

Page 49, line 22, after the second "for" insert "administration of the program or"

Page 50, delete section 78

Page 50, line 32, delete "62" and insert "64" and delete "Section 78 is" and insert "Sections 36 and 37 are"

Page 97, after line 29, insert:

"ARTICLE 5

CAPITAL INVESTMENT

Section 1. Minnesota Statutes 1996, section 268.917, is amended to read:

268.917 [EARLY CHILDHOOD LEARNING AND CHILD PROTECTION FACILITIES.]

The commissioner may make grants to state agencies and political subdivisions to construct or rehabilitate facilities for Head Start, early childhood and family education facilities programs, other early childhood intervention programs, or demonstration family service centers housing multiagency collaboratives, with priority to centers in counties or municipalities


Journal of the House - 43rd Day - Top of Page 2472

with the highest number of children living in poverty. The commissioner may also make grants to state agencies and political subdivisions to construct or rehabilitate facilities for crisis nurseries or child visitation centers. The facilities must be owned by the state or a political subdivision, but may be leased under section 16A.695 to organizations that operate the programs. The commissioner shall prescribe the terms and conditions of the leases. A grant for an individual facility must not exceed $200,000 for each program that is housed in the facility, up to a maximum of $500,000 for a facility that houses three programs or more. The commissioner shall give priority to grants that involve collaboration among sponsors of programs under this section. At least 25 percent of the amounts appropriated for these grants must be used in conjunction with the youth employment and training programs operated by the commissioner. Eligible programs must consult with appropriate labor organizations to deliver education and training.

Sec. 2. Minnesota Statutes 1996, section 446A.04, subdivision 5, is amended to read:

Subd. 5. [FEES.] (a) The authority may set and collect fees for costs incurred by the authority for audits, arbitrage accounting, and payment of fees charged by the state board of investment. The authority may also set and collect fees for costs incurred by the commissioner, the department of health, and the pollution control agency, including costs for personnel and administrative services, for its financings and the establishment and maintenance of reserve funds. Fees charged directly to borrowers upon executing a loan agreement must not exceed one-half of one percent of the loan amount. Servicing fees assessed to loan repayments must not exceed two percent of the loan repayment. The disposition of fees collected for costs incurred by the authority is governed by section 446A.11, subdivision 13. The authority shall enter into interagency agreements to transfer funds into appropriate administrative accounts established for fees collected under this subdivision for costs incurred by the commissioner, the department of health, or the pollution control agency must be credited to the general fund.

(b) The authority shall annually report to the chairs of the finance and appropriations committees of the legislature on:

(1) the amount of fees collected under this subdivision for costs incurred by the authority;

(2) the purposes for which the fee proceeds have been spent; and

(3) the amount of any remaining balance of fee proceeds.

Sec. 3. Minnesota Statutes 1996, section 446A.081, subdivision 1, is amended to read:

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

(b) "Act" means the federal Safe Drinking Water Infrastructure Financing Act Amendments of 1996, Public Law Number 104-182.

(c) "Department" means the department of health.

Sec. 4. Minnesota Statutes 1996, section 446A.081, subdivision 4, is amended to read:

Subd. 4. [CAPITALIZATION GRANT AGREEMENT.] The authority shall enter into an agreement with the administrator of the United States Environmental Protection Agency to receive capitalization grants for the fund. The authority and the department shall enter into an operating agreement with the administrator of the United States Environmental Protection Agency to satisfy the criteria in the act to operate the fund. The authority and the department may exercise the powers necessary to comply with the requirements specified in the agreement agreements and to ensure that loan recipients comply with all applicable federal and state requirements.

Sec. 5. Minnesota Statutes 1996, section 446A.081, subdivision 9, is amended to read:

Subd. 9. [OTHER USES OF FUND.] The drinking water revolving loan fund may be used as provided in the act, including the following uses:

(1) to buy or refinance the debt obligations, at or below market rates, of public water systems for drinking water systems, where such debt was incurred after the date of enactment of the act, for the purposes of construction of the necessary improvements to comply with the national primary drinking water regulations under the federal Safe Drinking Water Act;


Journal of the House - 43rd Day - Top of Page 2473

(2) to purchase or guarantee insurance for local obligations to improve credit market access or reduce interest rates;

(3) to provide a source of revenue or security for the payment of principal and interest on revenue or general obligation bonds issued by the authority if the bond proceeds are deposited in the fund;

(4) to provide loans or loan guarantees for similar revolving funds established by a governmental unit or state agency;

(5) to earn interest on fund accounts; and

(6) to pay the reasonable costs incurred by the authority, the department of trade and economic development, and the department for conducting activities as authorized and required under the act up to the limits authorized under the act; and

(7) to develop and administer programs for water system supervision, source water protection, and related programs required under the act.

Sec. 6. Minnesota Statutes 1996, section 446A.12, subdivision 1, is amended to read:

Subdivision 1. [BONDING AUTHORITY.] The authority may issue negotiable bonds in a principal amount that the authority determines necessary to provide sufficient funds for achieving its purposes, including the making of loans and purchase of securities, the payment of interest on bonds of the authority, the establishment of reserves to secure its bonds, the payment of fees to a third party providing credit enhancement, and the payment of all other expenditures of the authority incident to and necessary or convenient to carry out its corporate purposes and powers, but not including the making of grants. Bonds of the authority may be issued as bonds or notes or in any other form authorized by law. The principal amount of bonds issued and outstanding under this section at any time may not exceed $450,000,000 $850,000,000, excluding bonds for which refunding bonds or crossover refunding bonds have been issued.

Sec. 7. [DRINKING WATER REVOLVING FUND.]

$4,400,000 is appropriated from the general fund to the public facilities authority for the drinking water revolving fund.

Sec. 8. [EFFECTIVE DATE.]

Section 1 is effective the day following final enactment."

Adjust totals accordingly

Renumber or reletter in sequence and correct internal references

Amend the title as follows:

Page 1, line 25, after the second semicolon, insert "116J.615, subdivision 1;"

Page 1, line 33, after "268.681;" insert "268.917;"

Page 1, line 36, after "9;" insert "446A.12, subdivision 1;"

With the recommendation that when so amended the bill pass.

The report was adopted.

Skoglund from the Committee on Judiciary to which was referred:

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


Journal of the House - 43rd Day - Top of Page 2474

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; 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.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"ARTICLE 1

APPROPRIATIONS

Section 1. [CRIMINAL JUSTICE APPROPRIATIONS.]

The sums shown in the columns marked "APPROPRIATIONS" are appropriated from the general fund, or another fund named, to the agencies and for the purposes specified in this act, to be available for the fiscal years indicated for each purpose. The figures "1997," "1998," and "1999," where used in this act, mean that the appropriation or appropriations listed under them are available for the year ending June 30, 1997, June 30, 1998, or June 30, 1999, respectively.


Journal of the House - 43rd Day - Top of Page 2475

SUMMARY BY FUND

1997 1998 1999 TOTAL

General $ 1,393,000 $ 481,162,000 $ 492,316,000$ 974,871,000

Special Revenue 5,901,000 6,368,00012,269,000

State Government

Special Revenue 7,000 7,000 14,000

Environmental 42,000 43,000 85,000

Trunk Highway 1,557,000 1,587,0003,144,000

TOTAL $ 1,393,000 $ 488,669,000 $ 500,321,000$ 990,383,000

APPROPRIATIONS

Available for the Year

Ending June 30

1998 1999

Sec. 2. SUPREME COURT

Subdivision 1. Total Appropriation $ 23,703,000 $ 25,978,000

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

Subd. 2. Supreme Court Operations

3,929,000 4,095,000

$2,500 the first year and $2,500 the second year are for a contingent account for expenses necessary for the normal operation of the court for which no other reimbursement is provided.

Of this appropriation, $11,000 the first year is for judicial salary increases, effective January 1, 1998. The increase scheduled for July 1, 1999, shall be added to the supreme court's base budget for the fiscal biennium ending June 30, 2001.

The supreme court is requested to study whether rule 12 of the rules of the board of judicial standards should be modified to permit the awarding of reasonable costs and attorneys fees to judges who are found, after a formal hearing, not to have violated the rules of judicial conduct, judicial standards, or professional conduct.

Subd. 3. Civil Legal Services

6,257,000 6,257,000

This appropriation is for legal services to low-income clients and for family farm legal assistance under Minnesota Statutes, section 480.242. Any unencumbered balance remaining in the first year does not cancel but is available for the second year of the biennium. A qualified legal services program, as defined in Minnesota Statutes, section 480.24, subdivision 3, may provide legal services to persons eligible for family farm legal assistance under Minnesota Statutes, section 480.242.


Journal of the House - 43rd Day - Top of Page 2476

Subd. 4. Family Law Legal Services

877,000 877,000

This appropriation is to improve the access of low-income clients to legal representation in family law matters and must be distributed under Minnesota Statutes, section 480.242, to the qualified legal services programs described in Minnesota Statutes, section 480.242, subdivision 2, paragraph (a). Any unencumbered balance remaining in the first year does not cancel and is available for the second year of the biennium.

Subd. 5. State Court Administration

10,622,000 12,710,000

The supreme court may use part of this appropriation to implement two pilot projects to improve the resolution of family issues, including domestic abuse, by assigning related family, probate, and juvenile court matters, other than delinquency proceedings, to a single judge. One pilot project shall be established in the second judicial district and the other pilot project shall be established in a rural district. The supreme court is requested to report to the legislature on the effectiveness of the pilot projects in resolving family issues when the project is completed or by January 15, 2000, whichever is earlier.

Subd. 6. Community Dispute Resolution

125,000 125,000

Subd. 7. Victim Offender Mediation Grants

170,000 170,000

Subd. 8. Law Library Operations

1,723,000 1,744,000

Sec. 3. COURT OF APPEALS 5,809,000 6,012,000

Of this appropriation, $23,000 the first year is for judicial salary increases, effective January 1, 1998. The increase scheduled for July 1, 1999, shall be added to the court of appeals' base budget for the fiscal biennium ending June 30, 2001.

Sec. 4. DISTRICT COURTS 69,831,000 71,006,000

Of this appropriation, $337,000 the first year is for judge and capped employee salary increases, effective January 1, 1998. The increase scheduled for July 1, 1999, shall be added to the district courts' base budget for the fiscal biennium ending June 30, 2001.


Journal of the House - 43rd Day - Top of Page 2477

The appropriation for judicial support increases shall be used, first, to increase the salaries of existing law clerks and, second, to hire up to 24 additional law clerks for district judges who currently are sharing law clerks.

Of this appropriation, $500,000 is for the video pilot project in the ninth judicial district and for the video hearing project for the court of appeals. Unexpended funds may be used for the judicial branch justice network.

Sec. 5. BOARD OF JUDICIAL STANDARDS 223,000 228,000

Sec. 6. TAX COURT 974,000 645,000

Sec. 7. PUBLIC SAFETY

Subdivision 1. Total Appropriation 36,424,000 34,058,000

Summary by Fund

1998 1999

General 32,498,000 30,392,000

Special Revenue 2,320,000 2,029,000

State Government

Special Revenue 7,000 7,000

Trunk Highway 1,557,000 1,587,000

Environmental 42,000 43,000

Subd. 2. Emergency Management

Summary by Fund

General 2,072,000 2,096,000

Environmental 42,000 43,000

Subd. 3. Criminal Apprehension

Summary by Fund

General 17,816,000 16,982,000

Special Revenue 2,248,000 2,029,000

State Government

Special Revenue 7,000 7,000

Trunk Highway 1,557,000 1,587,000

$100,000 the first year and $100,000 the second year from the Bureau of Criminal Apprehension account in the special revenue fund are for grants to local officials for the cooperative investigation of cross-jurisdictional criminal activity. Any unencumbered balance remaining in the first year does not cancel but is available for the second year.


Journal of the House - 43rd Day - Top of Page 2478

$408,000 the first year and $409,000 the second year from the Bureau of Criminal Apprehension account in the special revenue fund are for laboratory activities.

Of this appropriation, $175,000 the first year and $50,000 the second year are for the Bureau of Criminal Apprehension to hire an additional forensic scientist to process arson evidence samples, to provide the laboratory instruments and training needed to process arson evidence samples, to provide the supporting equipment and services needed to use arson evidence sample processing instruments, and to provide necessary training and equipment for a polygraph specialist.

Of this appropriation, $50,000 each year is to develop a comprehensive database of information regarding the activities and characteristics of criminal gangs and gang members throughout the state.

The appropriation to hire up to ten additional special agents for the gang strike force may not be used to purchase or lease vehicles.

Subd. 4. Fire Marshal

2,894,000 2,954,000

Subd. 5. Alcohol and Gambling Enforcement

Summary by Fund

General 1,682,000 1,716,000

Special Revenue 72,000 -0-

Subd. 6. Crime Victims Services

2,122,000 2,130,000

Subd. 7. Crime Victims Ombudsman

322,000 329,000

Subd. 8. Law Enforcement and Community Grants

5,590,000 4,185,000

The appropriations in this subdivision are one-time appropriations.

Of this appropriation, $1,000,000 each year is to provide funding for grants under Minnesota Statutes, section 299A.62, subdivision 1, clause (2), to enable local law enforcement agencies to assign overtime officers to high crime areas within their jurisdictions. Up to four percent each year is to administer the program.


Journal of the House - 43rd Day - Top of Page 2479

Of this appropriation, $2,125,000 each year is for a grant to the criminal gang oversight council to be used for the grants authorized in article 8 and to fund the organization and operation of the strike force. The council may use part of this appropriation to procure necessary equipment. However, the council shall seek to minimize expenses relating to equipment by encouraging local entities to contribute equipment and other support to the strike force.

$50,000 the first year is for Ramsey county to continue the special unit enforcing the state nuisance laws.

$75,000 the first year is for one or more grants to community-based programs to conduct research on street gang culture and, based on this research, develop effective prevention and intervention techniques to help youth avoid or end their street gang involvement. Each program receiving a grant shall provide a report to the criminal gang oversight council established in article 8, containing the following information:

(1) the results of the program's research on street gang culture;

(2) the program's plans for additional research on street gang culture, if any; and

(3) the prevention and intervention techniques developed by the program.

An interim report must be provided to the council six months after a program is awarded a grant. A final report must be provided to the council by February 1, 1999. A copy of each report also must be provided to the commissioner of public safety.

Each program receiving a grant also must provide information and recommendations on gang culture to the criminal gang oversight council and criminal gang strike force, as requested by the council or strike force.

Of this appropriation, $40,000 the first year shall be transferred as a grant to a nonprofit organization to be used to meet one-half of the state match requirement if the organization receives federal funding to: (1) acquire interactive multimedia equipment for courtroom presentations to aid in the prosecution of complex homicide and child fatality cases; and (2) retain a forensic pathologist skilled in making such presentations to serve as a consultant to prosecutors statewide for one year. This grant is available only if the organization obtains funds for the remainder of the state match from other sources.

$200,000 of this appropriation is for grants to the Council on Black Minnesotans to continue the program established in Laws 1996, chapter 408, article 2, section 13.


Journal of the House - 43rd Day - Top of Page 2480

$100,000 the first year is for the continuation of the community-oriented chemical dependency pilot project created in Laws 1996, chapter 408, article 2, section 11. The appropriation is available only if Hennepin county and the city of Minneapolis together contribute an equal amount in the form of either money or resources to fund such services as: (1) treatment and aftercare placements not otherwise covered by this appropriation; and (2) the provision of police resources to expand the pilot program to include intervention efforts at neighborhood drug houses.

Of this appropriation, $300,000 the first year is for grants to local governmental units that have incurred costs implementing Minnesota Statutes, section 244.052 or 244.10, subdivision 2a. Local governmental units shall detail the costs they have incurred along with any other information required by the commissioner. The commissioner shall award grants in a manner that reimburses local governmental units demonstrating the greatest need.

Of this appropriation, $350,000 the first year is for a grant to the northwest Hennepin human services council to administer the northwest community law enforcement project, to be available until June 30, 1999.

Of this appropriation, $75,000 the first year is for grants to the Hennepin county sheriff's office and the Minneapolis police department for implementation of first year costs of operating the FBI Drugfire computer program for analyzing bullets and bullet casings.

Of this appropriation, $1,000,000 the first year and $1,000,000 the second year is for weed and seed grants under Minnesota Statutes, section 299A.63. Money not expended in the first year is available for grants during the second year. Up to five percent of this appropriation may be used for administration and evaluation of the program.

Of this appropriation, $40,000 the first year is for purposes of the firefighter training study committee created in article 2.

Of this appropriation, $50,000 the first year is for grants to Hennepin or Ramsey county to administer the community service grant pilot project program created in article 2.

Of this appropriation, $50,000 the first year is for a grant to assist the Minneapolis police department in paying per diem costs of temporary housing for pretrial and trial detainees outside the city of Minneapolis. This appropriation is available until expended.

Of this appropriation, $75,000 in the first year is for the commissioner, in cooperation with the commissioners of health and corrections, to provide education and training to peace officers and other criminal justice personnel on early intervention and reduction of possible HIV seroconversion for persons who experience a significant exposure, as


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defined in Minnesota Statutes, section 144.761. A portion of this appropriation shall be awarded as grants to professional employers of emergency medical services personnel as defined in Minnesota Statutes, section 144.761, subdivision 5, clause (2), to demonstrate effective education and training services and procedures for implementing the protocol described in Minnesota Statutes, section 144.762.

Subd. 9. Administration and Related Services

...,-0-,... ...,-0-,...

This appropriation is to be deposited in the public safety officer's benefit account. This money is available for reimbursements under Minnesota Statutes, section 299A.465.

Sec. 8. BOARD OF PRIVATE DETECTIVE AND PROTECTIVE

AGENT SERVICES 130,000 132,000

Sec. 9. BOARD OF PEACE OFFICER STANDARDS AND

TRAINING 3,581,000 4,339,000

This appropriation is from the peace officers training account in the special revenue fund. Any receipts credited to the peace officer training account in the special revenue fund in the first year in excess of $3,581,000 must be transferred and credited to the general fund. Any receipts credited to the peace officer training account in the special revenue fund in the second year in excess of $4,339,000 must be transferred and credited to the general fund.

Of this appropriation, $30,000 the first year is from the special revenue fund for DARE officer training.

Of this appropriation, $850,000 the second year shall be expended as follows: (1) up to $30,000 for administrative law judge costs; (2) up to $16,000 for minority recruitment; (3) up to $10,000 for computer training and support; (4) up to $30,000 for DARE officer training; (5) $100,000 for a law enforcement library at metropolitan state university; and (6) up to $664,000 for increased reimbursements to local law enforcement for the cost of administering board-approved continuing education to peace officers.

The commissioner of finance shall ensure that the base budget for the 2000-2001 fiscal biennium for the POST board includes the $850,000 each year that was transferred in fiscal year 1997 from the POST board to the Minnesota state colleges and universities system.

Sec. 10. BOARD OF PUBLIC DEFENSE

Subdivision 1. Total Appropriation 41,277,000 42,228,000

None of this appropriation shall be used to pay for lawsuits against public agencies or public officials to change social or public policy.


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

Subd. 2. State Public Defender

3,250,000 3,315,000

Subd. 3. Board of Public Defense

900,000 915,000

Subd. 4. District Public Defense

37,127,000 37,998,000

$1,014,000 the first year and $1,040,000 the second year are for grants to the five existing public defense corporations under Minnesota Statutes, section 611.216.

Sec. 11. CORRECTIONS

Subdivision 1. Total Appropriation 301,797,000 310,666,000

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

Any unencumbered balances remaining in the first year do not cancel but are available for the second year of the biennium.

Positions and administrative money may be transferred within the department of corrections as the commissioner considers necessary, upon the advance approval of the commissioner of finance.

For the biennium ending June 30, 1999, the commissioner of corrections may, with the approval of the commissioner of finance, transfer funds to or from salaries.

The department may use up to $320,000 of dedicated receipts to construct a new building for Thistledew Camp's new wilderness endeavors program. The building must provide a training and juvenile dorm area plus storage for a capacity of ten.

Subd. 2. Correctional Institutions

182,490,000 191,498,000

The commissioner may expend federal grant monies in an amount up to $1,000,000 to supplement the renovation of the buildings at the Brainerd regional center for use as a correctional facility.

Of this appropriation, $100,000 each year is to expand the fugitive unit.


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If the commissioner deems it necessary to reduce staff positions during the biennium ending June 30, 1999, the commissioner must reduce at least the same percentage of management and supervisory personnel as line and support personnel in order to ensure employee safety, inmate safety, and facility security.

During the biennium ending June 30, 1999, the commissioner must consider ways to reduce the per diem in adult correctional facilities. As part of this consideration, the commissioner must consider reduction in management and supervisory personnel levels in addition to line staff levels within adult correctional institutions, provided this objective can be accomplished without compromising safety and security.

Subd. 3. Juvenile Services

16,624,000 16,762,000

Of this appropriation, $300,000 the first year is to plan for and establish a weekend camp program at Camp Ripley designed for first- or second-time male juvenile offenders ages 11 to 14. The commissioner shall develop eligibility standards for the program. The camp shall be a highly structured program and teach work skills, such as responsibility, organization, time management, and follow-through. The juvenile offenders will each develop a community service plan that will be implemented upon return to the community. The program shall receive referrals from youth service agencies, police, school officials, parents, and the courts. By January 15, 1998, the commissioner shall report to the chairs of the house and senate criminal justice funding divisions a proposed budget for this camp program for the second year of the fiscal biennium and shall include a description of the proposed outcomes for the program.

This appropriation also may be used to conduct planning and evaluation for the PREPARE program at Red Wing and for additional camp programs and aftercare services for juvenile offenders.

Subd. 4. Community Services

82,563,000 82,310,000

Of this appropriation, $300,000 each year is for the school-based probation pilot programs established in article 2. This is a one-time appropriation.

Of this appropriation, $175,000 each year is for the Ramsey county enhanced probation pilot project established in article 2. The appropriation may not be used to supplant law enforcement or county probation officer positions, or correctional services or programs. This is a one-time appropriation.

Of this appropriation, $250,000 the first year is for the gang intervention pilot project established in article 2. This is a one-time appropriation.


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Of this appropriation, $175,000 each year is for grants to local communities to establish and implement restorative justice programs in their communities. As used in this paragraph, "restorative justice program" means a program that provides forums where certain individuals accused of having committed a crime meet with the victim; the victim's family members or other supportive persons, if appropriate; a law enforcement official or prosecutor when appropriate; and members of the community, in order to: (1) discuss the impact of the offense on the victim and the community; (2) assign an appropriate sanction to the offender; and (3) provide methods for reintegrating the offender into the community when the offender is from the community. This is a one-time appropriation.

Local communities and organizations that receive grants for or operate restorative justice programs must make available all data relating to the operation of the program, including: (1) names of adult offenders serving in the program; (2) hours that each offender is expected to serve; (3) total number of hours served by each offender; (4) locations where service is performed or is to be performed; and (5) names of individuals who supervise offenders in the program. These communities and organizations also must allow interested third parties reasonable access to observe the programs in operation. These programs also should have clearly established neighborhood, community, and family measures of success and must report to the commissioner with an evaluation of the program on or before June 30, 1999.

Of this appropriation, $95,000 the first year is for the Dakota county family group conferencing pilot project established in Laws 1996, chapter 408, article 2, section 9. This is a one-time appropriation.

Of this appropriation, $40,000 the first year is for educational equipment and training to be used for sex offender notification meetings by law enforcement agencies around the state. This is a one-time appropriation.

All money received by the commissioner of corrections pursuant to the domestic abuse investigation fee under Minnesota Statutes, section 609.2244, shall be available for use by the commissioner and is hereby appropriated annually to the commissioner of corrections for costs related to conducting the investigations.

$1,500,000 each year is for an increase in community corrections act subsidy funding. The funding shall be distributed according to the community corrections aid formula in Minnesota Statutes, section 401.10.

In fiscal year 1998 and fiscal year 1999, the commissioner shall distribute money appropriated for state and county probation officer workload reduction, increased supervised release and probation services, and county probation officer reimbursement according to the


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formula contained in Minnesota Statutes, section 401.10. These appropriations may not be used to supplant existing state or county probation officer positions or existing correctional services or programs. This money is intended to reduce state and county probation officer workloads and to increase supervision of individuals sentenced to probation at the county level. This increased supervision may be accomplished through a variety of methods, including but not limited to: (1) innovative technology services, such as automated probation reporting systems and electronic monitoring; (2) prevention and diversion programs; (3) intergovernmental cooperation agreements between local governments and appropriate community resources; and (4) traditional probation program services.

Of this appropriation, $250,000 shall be distributed to the Dodge-Fillmore-Olmsted community corrections agency and $251,000 shall be distributed to the Arrowhead regional corrections agency for use in a pilot project to expand the agencies' productive day initiative programs, as defined in Minnesota Statutes, section 241.275, to include juvenile offenders who are 16 years of age and older. This is a one-time appropriation.

Of this appropriation, $700,000 each year is for grants to the judicial districts to implement drug court programs. Grants must be approved by the supreme court before any funds are distributed. The commissioner may use a portion of this appropriation as a grant to Hennepin county for the pilot juvenile gun education program described in article 2. This is a one-time appropriation.

Of this appropriation, $25,000 the first year is to complete the criterion-related cross validation study authorized in Laws 1995, chapter 226, article 1, section 11, designed to measure outcomes of placing juveniles in out-of-home placement programs. The study must be completed by January 1, 1998. This is a one-time appropriation.

Before the commissioner uses money that would otherwise cancel to the general fund for the court services tracking system, the proposal for the system must be reviewed by the criminal and juvenile justice information policy group.

Subd. 5. Crime Victim and Prevention Services

10,849,000 10,637,000

Of this appropriation, $75,000 each year is to provide programs to serve general crime victims, as described in Minnesota Statutes, section 611A.361, subdivision 1, in the counties that do not have crime prevention service programs and to provide programs to under served communities that need additional assistance. This is a one-time appropriation.


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Of this appropriation, $100,000 is to make grants, with the assistance of the crime victim prevention division, to organizations or local units of government providing support services to women leaving systems of prostitution. This is a one-time appropriation.

Of this appropriation, $75,000 each year is to fund community advocacy programs for battered women under Minnesota Statutes, section 611A.32. The services to be funded include: (1) community-based domestic abuse advocacy programs in counties currently not receiving grants from the commissioner; (2) American Indian battered women advocacy and support services; and (3) underfunded community advocacy programs. The commissioner must give priority status to Red Lake, Clearwater, and Big Stone counties in distributing the appropriation to ensure that these counties have services available to battered women.

$103,000 the first year and $103,000 the second year to provide funding for one existing battered women's shelter in Washington county that currently is not funded; and $104,000 the first year and $104,000 the second year for one existing battered women's shelter in Goodhue county that currently is not funded.

$25,000 each year is for grants to the city of St. Paul to provide support services to the surviving family members of homicide, suicide, and accidental death victims. This is a one-time appropriation.

Of this appropriation, $55,000 is for grants to the Hennepin and Ramsey county attorneys' offices to improve the education of landlords and tenants on best practices in the rental market. This is a one-time appropriation.

Of this appropriation, $75,000 the first year is for the commissioner, in cooperation with the commissioner of health and the attorney general, to provide education and training to county attorneys, public defenders, victim advocates, and shelters on early intervention and reduction of possible HIV seroconversion for victims of serious crimes that involve possible HIV exposure; and in cooperation with the commissioner of health, to reimburse health care providers for counseling, testing, and early intervention services provided to crime victims who request the services. This is a one-time appropriation.

The commissioner of corrections shall examine options for implementing a victim notification system designed to reduce the probability of further harassment of the victim. The commissioner shall examine the feasibility of a toll-free call center to allow victims to obtain information on the current status and location of inmates. By February 1, 1998, the commissioner shall submit a plan for implementing a victim notification system.


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Subd. 6. Management Services

9,271,000 9,459,000

Sec. 12. CORRECTIONS OMBUDSMAN 565,000 580,000

Sec. 13. SENTENCING GUIDELINES COMMISSION 395,000 405,000

Sec. 14. DEPARTMENT OF HUMAN RIGHTS

Subdivision 1. Total Appropriation 3,763,000 3,790,000

Subd. 2. Contract Compliance

386,000 395,000

Subd. 3. Complaint Processing

2,675,000 2,679,000

Of this appropriation, $50,000 the first year is for a program for testing whether the Human Rights Act, Minnesota Statutes, chapter 363, is being complied with in the area of rental housing. The program must include tests to determine the frequency of incidents of racial discrimination. The department shall report to the appropriate committees of the legislature by January 1, 1998, on the results and effectiveness of the program. This is a one-time appropriation.

Subd. 4. Management Services and Administration

702,000 716,000

Sec. 15. UNIFORM LAWS COMMISSION 35,000 36,000

Sec. 16. ATTORNEY GENERAL 162,000 218,000

Of this appropriation, $70,000 each year is for a grant to the DARE advisory council to be used to continue existing education programs in elementary schools and to expand the program into junior and senior high schools. This is a one-time appropriation.

Of this appropriation, $69,000 is a one-time appropriation to hire law clerks to assist the attorney general's office in fulfilling its responsibilities to the criminal gang strike force and the arson strike force.

Sec. 17. DEFICIENCY APPROPRIATION

Fiscal Year 1997

General 1,393,000


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This appropriation for fiscal year 1997 is added to the appropriation in Laws 1995, chapter 226, article 1, section 7, subdivision 2, to provide matching funds for federal emergency management assistance funds received for natural disaster assistance payments.

Sec. 18. Laws 1995, chapter 226, article 3, section 60, subdivision 4, is amended to read:

Subd. 4. [TIME LINES.] By December 1, 1996, the rulemaking committee shall submit draft rule parts which address the program standards, evaluation, and auditing standards and procedures to the chairs of the senate crime prevention and house of representatives judiciary committee for review. By July 31, 1997, the licensing and programming rulemaking process shall be completed. By July 1, 1998, the licensing and programming rule draft shall be completed. Promulgation of the draft rule parts, under the provision of Minnesota Statutes, chapter 14, shall commence immediately thereafter. In addition, the commissioner of corrections and commissioner of human services may develop interpretive guidelines for the licensing and programming rule.

Sec. 19. Laws 1996, chapter 408, article 1, section 6, subdivision 6, is amended to read:

Subd. 6. Spending Cap

General fund spending by the department of corrections is limited to $614,000,000 in the biennium ending June 30, 1999.

The commissioner of corrections shall prepare and submit to the legislature by December 1, 1996, a proposal on how to limit the increase in general fund appropriations to the department of corrections from the 1996-1997 biennium to the 1998-1999 biennium so as not to exceed the spending cap. The commissioner may also submit alternative proposals to accomplish the same goal. The proposal or proposals must include the commissioner's recommendations for changes in administration, programming, staffing, and community services.

Sec. 20. [PLAN FOR FUNDING CRIME VICTIM SERVICES.]

The commissioners of the departments of corrections and public safety will provide a report to the chairs of the house judiciary finance division and the senate crime prevention and judiciary finance division by February 1, 1998. The report will contain a comprehensive coordinated plan for establishing and funding statewide services for battered women, sexual assault, and general crime victims.

ARTICLE 2

CRIME PREVENTION AND COMMUNITY SAFETY PROGRAMS

Section 1. [GANG INTERVENTION SERVICES; PILOT GRANT PROGRAM.]

Subdivision 1. [GANG INTERVENTION.] The commissioner of corrections shall develop and administer a gang intervention pilot grant program to provide services to young persons who are interested in terminating their gang affiliation. This program shall assist local organizations engaged in helping gang members separate themselves from their gang affiliation by providing services to former members of criminal gangs. The commissioner shall develop a grant application that specifies the eligibility criteria for receiving grants and sets a formula for the match requirement.


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Subd. 2. [ELIGIBILITY FOR GRANTS.] A local organization must meet the following criteria to be eligible for a grant under the program:

(1) it must be a private, nonprofit organization or a local public agency;

(2) it must offer and provide to clients of the program services to help gang members terminate their affiliation with gangs, including educational opportunities, job skill development, life skills, community service, medical services, and counseling; and

(3) it must provide matching funds or in kind services in compliance with the formula set by the commissioner of corrections.

Subd. 3. [ELIGIBILITY FOR SERVICES.] A person who seeks to receive services under this section must meet the following criteria:

(1) at the time the person is accepted into the program, the person must not be older than 25 years of age or be under the custody of the commissioner of corrections;

(2) the person must not have received substantially similar services previously from the grant program or any other publicly funded program;

(3) the person must be employable, as determined by the grantee organization; and

(4) the person must agree to comply with all of the program participation requirements established by the grantee organization, including performing any required community service.

Subd. 4. [REPORT TO LEGISLATURE.] On or before January 15, 1999, the commissioner of corrections shall submit a report to the legislature evaluating the operating of the pilot grant program established in this section.

Sec. 2. [ENHANCED PROBATION PILOT PROJECT; RAMSEY COUNTY.]

Subdivision 1. [ESTABLISHMENT.] A pilot project is created in Ramsey county to establish and implement an enhanced probation law enforcement community partnership program. This program will provide intensive monitoring and coordination between juvenile probation officers, local law enforcement personnel, and culturally specific community nonprofit agencies to best deal with juvenile probationers who have committed or who are at risk to commit violent crimes, especially likely to involve weapons, and who are associated with gang and drug activities in Ramsey county.

Subd. 2. [PILOT PROJECT.] (a) The pilot project is a local Ramsey county community-based program designed to discourage young people from involvement in unlawful drug or street gang activities usually involving violence and weapons. It will provide a bridge between the law enforcement, corrections, and culturally specific community-based programs designed to provide a more intensive intervention, including during evenings and weekends, effort with juvenile offenders on probation who are identified as likely to engage in repeated criminal activity in the future unless intervention is undertaken through intensive surveillance, accountable consequences for probation violations, and the use of culturally sensitive treatment programs that are innovative and that encourage substantial involvement by members of the community served by the program.

(b) This is a pilot project for Ramsey county, the city of St. Paul, and other local law enforcement agencies along with nonprofit community-based entities who may apply for a grant by submitting an application to Ramsey county for a portion of the state funding.

(c) The applicant nonprofit community-based entities must specify the following in their applications:

(1) a description of each program for which funding is sought;

(2) intended outcomes and performance indicators for the program;


Journal of the House - 43rd Day - Top of Page 2490

(3) a description of the planning process that identifies local community needs, surveys existing programs, provides for coordination with existing programs, and involves all affected sectors of the community;

(4) the geographical area to be served by the program; and

(5) the cultural specific group to be served.

Subd. 3. [REPORT ON PILOT PROJECT.] Ramsey county shall provide a summary of how the grant funds are spent and the extent to which the objectives of the program are achieved. The summary is to be submitted to the chairs of the committees of the senate and house of representatives with jurisdiction over criminal justice policy and funding of crime prevention programs, by March 1 each year, based on the information provided by applicants under this subdivision and the results of the enforcement efforts of the joint police-probation officer teams.

Sec. 3. [PILOT PROJECT FOR SCHOOL-BASED PROBATION IN DAKOTA AND ANOKA COUNTIES.]

Subdivision 1. [PILOT PROJECT ESTABLISHED.] By July 1, 1997, the commissioner of corrections shall establish school-based probation pilot projects in Dakota and Anoka counties.

Subd. 2. [PROGRAM DESIGN AND IMPLEMENTATION.] Dakota and Anoka counties shall each select one middle or junior high school and one high school to participate in the school-based probation pilot project. Each county may select one additional middle, junior high, or high school for a total of no more than three schools in each county. Each county shall select as participating schools those schools which are able to provide necessary support for the program, such as office space, access to the building during nonschool hours, and a willingness to develop alternative disciplinary responses. Each school-based probation program established shall contain a probation officer located at the school who is available to help the school address behavioral incidents in the school by probationers. The probation officer shall help in:

(1) conducting cognitive/behavioral group sessions along with school personnel providing cofacilitation assistance;

(2) developing and administering alternatives to school discipline actions such as suspension, which may include mediation, community service, or home confinement;

(3) working more closely with the school and communicating with and engaging the family's support of the juvenile's school work and behavior; and

(4) referring and brokering with other schools' services to align the probationer and the probationer's family with needed services.

Subd. 3. [DATA PRACTICES.] Data created, collected, used, or maintained by school-based probation officers and school officials participating in this pilot project are private data on individuals as defined in Minnesota Statutes, section 13.02, subdivision 12, and may be disseminated among personnel working with the school-based probation project and as follows:

(1) pursuant to Minnesota Statutes, section 13.05;

(2) pursuant to a valid court order;

(3) pursuant to a statute specifically authorizing access to the private data;

(4) as allowed in Code of Federal Regulations, title 34, part 99; or

(5) within the participating school district or educational entity as necessary to protect persons or property or to address the educational and other needs of students.


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Subd. 4. [REPORT REQUIRED.] By January 15, 1999, the commissioner of corrections shall report to the chairs of the senate and house of representatives committees having jurisdiction over criminal justice policy on the effectiveness of the pilot project and any school-based probation programs created under this section. The report shall address the effectiveness of the pilot project by measuring reduction in school suspensions, improvement in grades, reduction of truant behavior, reduction in number and severity of delinquent behaviors, increase in number who return to school, and increase in number who succeed in school.

Sec. 4. [WORKING GROUP ON RESTITUTION.]

Subdivision 1. [CREATION; DUTIES.] A working group is created to study methods to improve the collection of restitution and the enforcement of restitution orders for repeat offenders. The working group must consider the feasibility of:

(1) incarcerating offenders who have been convicted two or more times of committing an offense for which restitution to a victim, as defined in Minnesota Statutes, section 611A.01, or to society is owed or should be paid, including but not limited to violations of Minnesota Statutes, sections 169.121 (DWI) or 169.129 (aggravated DWI); 609.375 (nonpayment of child support); 609.52 (theft); 609.561 to 609.563 (arson); or 609.582 (burglary);

(2) requiring these inmates to work at a fair market wage; and

(3) enabling inmates to first pay restitution to their victims, after satisfying any outstanding or ongoing child support or spousal maintenance obligations, and secondly, to pay the operating costs of their confinement, including the costs of any privileges, treatment, or services received by the inmates in the facility.

Subd. 2. [MEMBERSHIP.] The working group consists of the following 14 members:

(1) the commissioner of corrections or the commissioner's designee;

(2) two district court judges appointed by the chief justice, one from the metropolitan area, and one from outside the metropolitan area;

(3) the ombudsman for crime victims;

(4) the ombudsman for corrections;

(5) a representative of the Minnesota association of community corrections act counties;

(6) a representative of the Minnesota association of county probation officers;

(7) two members of the house of representatives appointed by the speaker, and two members of the senate appointed by the subcommittee on committees. These appointments must be made in a manner that ensures a fair representation of viewpoints on business and labor issues;

(8) one crime victim;

(9) one representative of the business community appointed by the commissioner of corrections after consultation with the Minnesota business partnership and the Minnesota chamber of commerce; and

(10) one representative of labor unions appointed by the commissioner of corrections after consultation with public and private labor organizations from the affiliated membership of the Minnesota AFL-CIO.

The commissioner of corrections or the commissioner's designee shall chair and provide necessary staff support to the task force.

Subd. 3. [ADDITIONAL DUTIES.] (a) The working group shall study the feasibility of and develop recommendations concerning guidelines for sentencing courts to use when sentencing offenders to incarceration and when ordering offenders to pay restitution to crime victims or to the public.


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(b) The working group shall investigate whether it would be feasible for the state to enter into a long-term contract with one or more business entities under which the business entity would employ inmates at a fair market wage. The commissioner of corrections would ensure that inmates use the wages they earn to pay restitution to their victims according to restitution guidelines approved by the legislature, and to pay the costs of their confinement. Based on this investigation, the working group shall make recommendations to the legislature by February 1, 1998, regarding the type of business entity or entities with which the state could contract to operate an industry program.

(c) The working group shall examine current methods of collecting restitution and determine whether there are better ways of collecting restitution and enforcing restitution orders within the current criminal justice system.

Sec. 5. [PILOT PROGRAM; JUVENILE GUN OFFENDERS.]

A pilot program is established in Hennepin county for juveniles who are found delinquent for illegally possessing a pistol. Under this pilot program, judges may order that these juveniles be committed to a local county correctional facility for not less than 30 days, and that 23 days of this commitment be stayed on condition that the juvenile reside in a juvenile correctional facility for at least seven days and successfully complete a 40-hour course on gun education provided by the facility. The court must revoke the stay of commitment if the juvenile fails to complete the gun education course. The county shall submit a report to the legislature by January 1, 1999, evaluating the pilot program.

Sec. 6. [COMMUNITY SERVICE GRANT PILOT PROJECT.]

Hennepin and Ramsey counties shall each establish and administer a pilot project grant program to fund community-based programs in high-crime areas that provide opportunities for children under age 16 to volunteer for and perform community service. Programs qualifying for grants must encourage good citizenship and discourage participating children from engaging in illegal activities or associating with criminal gangs. Programs receiving grants may provide children who perform community service with appropriate nonmonetary rewards including, but not limited to, partial scholarships for post-secondary education, gift certificates, tickets for entertainment, parties, and group outings.

Hennepin and Ramsey counties shall establish criteria, which must include the following, for determining the community-based programs eligible for grants:

(1) have a broad network of established economic and social relationships within the community and with local governmental units;

(2) represent a broad range of diversity;

(3) have demonstrated an ability to administer community-based programs and have a history of successful community organizing;

(4) have a proven history of properly supervising and successfully interacting with juveniles; and

(5) have demonstrated an ability to work with schools and parents of juveniles.

Sec. 7. [FIREFIGHTER TRAINING STUDY COMMITTEE.]

Subdivision 1. [MEMBERSHIP; CHAIR.] (a) The firefighter training study committee consists of:

(1) two representatives of the Minnesota state fire chiefs association, appointed by the president of the association;

(2) two representatives of the Minnesota professional firefighters, appointed by the president of the organization;

(3) two representatives of the Minnesota state fire department association, appointed by the president of the organization;

(4) two representatives of the league of Minnesota cities, appointed by the president of the league;


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(5) the director of the Minnesota state colleges and universities FIRE/EMS center, or the director's designee;

(6) a public member, appointed by the governor;

(7) an employee of the department of labor and industry whose responsibilities include fire-related occupational safety and health activities, appointed by the commissioner of labor and industry;

(8) the commissioner of public safety or the commissioner's designee;

(9) two members of the house of representatives, one from each caucus; one representing a district within the metropolitan area as defined in Minnesota Statutes, section 473.121, subdivision 2, and the other representing a district outside the metropolitan area, appointed by the speaker; and

(10) two members of the senate, one from each caucus; one representing a district within the metropolitan area as defined in Minnesota Statutes, section 473.121, subdivision 2, and the other representing a district outside the metropolitan area, appointed by the subcommittee on committees of the committee on rules and administration.

(b) The committee shall elect a chair from the voting members.

Subd. 2. [ADMINISTRATIVE SUPPORT.] The commissioner of public safety shall provide necessary administrative and staff support to the committee.

Subd. 3. [COMPENSATION.] Committee members who are not public officials or employees are entitled to reimbursement for expenses in accordance with Minnesota Statutes, section 15.059, subdivision 6. Legislative members are entitled to compensation in accordance with rules of the house of representatives and the senate.

Subd. 4. [DUTIES.] (a) The committee shall:

(1) review findings and recommendations of the joint advisory training committee formed by the Minnesota state fire department association, the Minnesota state fire chiefs association, and the Minnesota professional firefighters;

(2) conduct further study of firefighter training needs and options;

(3) consider current funding for firefighter training, determine any need for additional funding, and recommend possible sources of the funding;

(4) consider the current delivery system for firefighter training, including statewide coordinating of training, and any needed improvements;

(5) consider the selection and evaluation of training instructors and any needed improvements;

(6) study levels of service delivery and any need for standardized training;

(7) consider federal and state laws and standards that affect firefighter training;

(8) determine a fair system for reimbursing local jurisdictions for training programs; and

(9) consider the need for centralized administrative direction of training programs.

(b) The committee shall conduct at least three, but no more than five, public meetings around the state to gather public input relevant to paragraph (a). Before submitting the report required by subdivision 5, the committee shall prepare and disseminate a draft report and seek public comment on it. A record of comment received must be kept and submitted along with the report required by subdivision 5.

Subd. 5. [REPORT.] The committee shall submit a report and its recommendations to the legislature by February 1, 1998. The report must identify any changes in statutes required to implement the committee's recommendations. The committee expires upon submission of the report.


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Subd. 6. [LOCAL COOPERATION.] Local government units shall cooperate with the committee in the preparation of the report required by subdivision 5.

ARTICLE 3

GENERAL CRIME PROVISIONS

Section 1. Minnesota Statutes 1996, section 169.20, subdivision 5, is amended to read:

Subd. 5. [EMERGENCY VEHICLE.] (a) Upon the immediate approach of an authorized emergency vehicle equipped with at least one lighted lamp exhibiting red light visible under normal atmospheric conditions from a distance of 500 feet to the front of such vehicle and, except where otherwise not required by law, when the driver is giving audible signal by siren, the driver of each other vehicle shall yield the right-of-way and shall immediately drive to a position parallel to and as close as possible to the right-hand edge or curb of the highway clear of any intersection, and shall stop and remain in this position until the authorized emergency vehicle has passed, except when otherwise directed by a police officer. The driver of another vehicle on a one-way roadway shall drive to the closest edge or curb and stop. The driver of an authorized emergency vehicle escorting the movement of a vehicle or load which is oversize or overweight need not sound an audible signal by siren but shall exhibit the light required by this paragraph. The driver of each other vehicle then shall yield the right-of-way, as required by this paragraph, to the emergency vehicle escorting the vehicle or load which is oversize or overweight.

(b) Upon the approach of an authorized emergency vehicle the driver of each street car and the operator of each trackless trolley car shall immediately stop such car clear of any intersection and keep it in this position and keep the doors and gates of the street car or trackless trolley car closed until the authorized emergency vehicle has passed, except when otherwise directed by a police officer.

(c) A peace officer may arrest the driver of a motor vehicle if the peace officer has probable cause to believe that the driver has operated the vehicle in violation of paragraph (a) within the four-hour period following the termination of the emergency incident.

(d) This subdivision shall not operate to relieve the driver of an authorized emergency vehicle from the duty to drive with due regard for the safety of persons using the highways.

Sec. 2. Minnesota Statutes 1996, section 169.797, subdivision 3, is amended to read:

Subd. 3. [VIOLATION BY DRIVER.] Any other person who operates a vehicle upon a public highway, street, or road in this state who knows or has reason to know that the owner does not have security complying with the terms of section 65B.48 in full force and effect is guilty of a crime and shall be sentenced as provided in subdivision 4.

Sec. 3. Minnesota Statutes 1996, section 388.23, subdivision 1, is amended to read:

Subdivision 1. [AUTHORITY.] The county attorney, or any deputy or assistant county attorney whom the county attorney authorizes in writing, has the authority to subpoena and require the production of any records of telephone companies, cellular phone companies, paging companies, the names and addresses of subscribers of private computer networks including Internet service providers or computer bulletin board systems, electric companies, gas companies, water utilities, chemical suppliers, hotels and motels, pawn shops, airlines, buses, taxis, and other entities engaged in the business of transporting people, and freight companies, warehousing companies, self-service storage facilities, package delivery companies, and other entities engaged in the businesses of transport, storage, or delivery, and records of the existence of safe deposit box account numbers and customer savings and checking account numbers maintained by financial institutions and safe deposit companies, insurance records relating to the monetary payment or settlement of claims, and wage and employment records of an applicant or recipient of public assistance who is the subject of a welfare fraud investigation relating to eligibility information for public assistance programs. Subpoenas may only be issued for records that are relevant to an ongoing legitimate law enforcement investigation. Administrative subpoenas may only be issued in welfare fraud cases if there is probable cause to believe a crime has been committed. This provision applies only to the records of business entities and does not extend to private individuals or their dwellings. Subpoenas may only be served by peace officers as defined by section 626.84, subdivision 1, paragraph (c).


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Sec. 4. Minnesota Statutes 1996, section 609.101, subdivision 5, is amended to read:

Subd. 5. [WAIVER PROHIBITED; REDUCTION AND INSTALLMENT PAYMENTS.] (a) The court may not waive payment of the minimum fine, surcharge, or assessment required by this section. The court may reduce the amount of the minimum fine, surcharge, or assessment

(b) If the defendant qualifies for the services of a public defender or the court makes written findings finds on the record that the convicted person is indigent or that immediate payment of the fine, surcharge, or assessment would create undue hardship for the convicted person or that person's immediate family, the court may reduce the amount of the minimum fine to not less than $50.

(c) The court also may authorize payment of the fine, surcharge, or assessment in installments.

Sec. 5. Minnesota Statutes 1996, section 609.135, subdivision 1, is amended to read:

Subdivision 1. [TERMS AND CONDITIONS.] (a) Except when a sentence of life imprisonment is required by law, or when a mandatory minimum sentence is required by section 609.11, any court may stay imposition or execution of sentence and:

(a) (1) may order intermediate sanctions without placing the defendant on probation,; or

(b) (2) may place the defendant on probation with or without supervision and on the terms the court prescribes, including intermediate sanctions when practicable. The court may order the supervision to be under the probation officer of the court, or, if there is none and the conviction is for a felony or gross misdemeanor, by the commissioner of corrections, or in any case by some other suitable and consenting person. No intermediate sanction may be ordered performed at a location that fails to observe applicable requirements or standards of chapter 181A or 182, or any rule promulgated under them.

(b) For purposes of this subdivision, subdivision 6, and section 609.14, the term "intermediate sanctions" includes but is not limited to incarceration in a local jail or workhouse, home detention, electronic monitoring, intensive probation, sentencing to service, reporting to a day reporting center, chemical dependency or mental health treatment or counseling, restitution, fines, day-fines, community work service, work service in a restorative justice program, work in lieu of or to work off fines and, with the victim's consent, work in lieu of or to work off restitution.

(c) A court may not stay the revocation of the driver's license of a person convicted of violating the provisions of section 169.121.

Sec. 6. Minnesota Statutes 1996, section 609.135, is amended by adding a subdivision to read:

Subd. 2a. [TOLLING OF STAY OF SENTENCE.] (a) When a court:

(1) sentences a defendant to serve an executed felony sentence consecutively to a stayed felony sentence; or

(2) sentences a defendant to multiple, consecutive, stayed felony sentences and subsequently revokes one of the stays of sentence under section 609.14;

the running of the stay of sentence of the unexecuted sentence shall be tolled while the defendant serves the executed sentence. The running of the stay of sentence shall recommence when the defendant is discharged from the executed sentence.

(b) The defendant is not entitled to credit against the stayed sentence for time served in confinement during the consecutive executed sentence.

Sec. 7. Minnesota Statutes 1996, section 609.135, subdivision 7, is amended to read:

Subd. 7. [DEMAND OF EXECUTION OF SENTENCE.] An offender may not demand execution of sentence in lieu of a stay of imposition or execution of sentence if the offender will serve less than nine months at the state institution. This subdivision does not apply to an offender who will be serving the sentence consecutively or concurrently with a previously imposed executed felony sentence or in lieu of the tolling of a stay of sentence under subdivision 2a.


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Sec. 8. Minnesota Statutes 1996, section 609.15, subdivision 1, is amended to read:

Subdivision 1. [CONCURRENT, CONSECUTIVE SENTENCES; SPECIFICATION REQUIREMENT.] (a) When separate sentences of imprisonment are imposed on a defendant for two or more crimes, whether charged in a single indictment or information or separately, or when a person who is under sentence of imprisonment in this state is being sentenced to imprisonment for another crime committed prior to or while subject to such former sentence, the court in the later sentences shall specify whether the sentences shall run concurrently or consecutively. If the court does not so specify, the sentences shall run concurrently.

(b) When a court imposes sentence for a misdemeanor or gross misdemeanor offense, and specifies that the sentence shall run consecutively to any other sentence, the court may order the defendant to serve time in custody for the consecutive sentence in addition to any time in custody the defendant may be serving for any other offense, including probationary jail time or imprisonment for any felony offense.

Sec. 9. [609.153] [INCREASED PENALTIES FOR CERTAIN MISDEMEANORS.]

Subdivision 1. [APPLICATION.] This section applies to the following misdemeanor-level crimes: sections 609.324 (prostitution); 609.546 (motor vehicle tampering); 609.595 (damage to property); and 609.66 (dangerous weapons); and violations of local ordinances in cities of the first class prohibiting the unlawful sale or possession of controlled substances.

Subd. 2. [CUSTODIAL ARREST.] Notwithstanding Rule 6.01 of the Rules of Criminal Procedure, a peace officer acting without a warrant who has decided to proceed with the prosecution of a person for committing a crime described in subdivision 1, may arrest and take the person into custody if the officer has reason to believe the person has a prior conviction for any crime described in subdivision 1.

Subd. 3. [INCREASED PENALTY.] Notwithstanding the statutory maximum penalty otherwise applicable to the offense, a person who commits a misdemeanor-level crime described in subdivision 1 is guilty of a gross misdemeanor if the court determines at the time of sentencing that the person has two or more prior convictions in this or any other state for any of the crimes described in subdivision 1.

Subd. 4. [NOTICE TO COMPLAINING WITNESS.] A prosecuting authority who is responsible for filing charges against or prosecuting a person arrested under the circumstances described in subdivision 2 shall make reasonable efforts to notify the complaining witness of the final outcome of the criminal proceeding that resulted from the arrest including, where appropriate, the decision to dismiss or not file charges against the arrested person.

Sec. 10. Minnesota Statutes 1996, section 609.221, is amended to read:

609.221 [ASSAULT IN THE FIRST DEGREE.]

Subdivision 1. [GREAT BODILY HARM.] Whoever assaults another and inflicts great bodily harm may be sentenced to imprisonment for not more than 20 years or to payment of a fine of not more than $30,000, or both.

Subd. 2. [USE OF DEADLY FORCE AGAINST PEACE OFFICER OR CORRECTIONAL EMPLOYEE.] (a) Notwithstanding the provisions of sections 609.11 and 609.135, whoever assaults a peace officer or an employee of a correctional facility, as defined in section 241.021, by using or attempting to use deadly force against the officer or employee while the officer or employee is engaged in the performance of a duty imposed by law, policy, or rule, shall be sentenced to imprisonment for not less than ten years nor more than 20 years and, in addition, may be sentenced to payment of a fine of not more than $30,000.

(b) As used in this subdivision:

(1) "deadly force" has the meaning given in section 609.066, subdivision 1; and

(2) "peace officer" has the meaning given in section 626.84, subdivision 1.


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Sec. 11. Minnesota Statutes 1996, section 609.2231, is amended by adding a subdivision to read:

Subd. 7. [DEPARTMENT OF HUMAN SERVICE EMPLOYEES.] An assault committed against an employee of the department of human services is a gross misdemeanor when:

(1) the assault is committed while the employee is engaged in the performance of a duty mandated by law, court order, or ordinance;

(2) the assailant knows the victim is an employee of the department of human services engaged in the performance of official public duties;

(3) the assault results in demonstrable bodily harm; and

(4) the assailant is under commitment or being evaluated for commitment as:

(a) a person mentally ill and dangerous to the public as defined in section 253B.02, subdivision 17;

(b) a sexual psychopathic personality as defined in section 253B.02, subdivision 18a; or

(c) a sexually dangerous person as defined in section 253B.02, subdivision 18b.

Sec. 12. Minnesota Statutes 1996, section 609.2245, subdivision 2, is amended to read:

Subd. 2. [PERMITTED ACTIVITIES.] A surgical procedure is not a violation of subdivision 1 if the procedure:

(1) is necessary to the health of the person on whom it is performed and is performed by: (i) a physician licensed under chapter 147 or; (ii) a physician in training under the supervision of a licensed physician; or (iii) a certified nurse midwife practicing within the nurse midwife's legal scope of practice; or

(2) is performed on a person who is in labor or who has just given birth and is performed for medical purposes connected with that labor or birth: (i) by a physician licensed under chapter 147 or; (ii) a physician in training under the supervision of a licensed physician; or (iii) a certified nurse midwife practicing within the nurse midwife's legal scope of practice.

Sec. 13. [609.2336] [DECEPTIVE OR UNFAIR TRADE PRACTICES; ELDERLY OR HANDICAPPED VICTIMS.]

Subdivision 1. [DEFINITIONS.] As used in this section:

(1) "charitable solicitation law violation" means a violation of sections 309.50 to 309.61;

(2) "consumer fraud law violation" means a violation of sections 325F.68 to 325F.70;

(3) "deceptive trade practices law violation" means a violation of sections 325D.43 to 325D.48;

(4) "false advertising law violation" means a violation of section 325F.67;

(5) "handicapped person" means a person who has an impairment of physical or mental function or emotional status that substantially limits one or more major life activities;

(6) "major life activities" means functions such as caring for oneself, performing manual tasks, walking, seeing, hearing, speaking, breathing, learning, and working; and

(7) "senior citizen" means a person who is 62 years of age or older.


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Subd. 2. [CRIME.] It is a gross misdemeanor for any person to commit a charitable solicitation law violation, a consumer fraud law violation, a deceptive trade practices law violation, or a false advertising law violation if the person knows or has reason to know that the person's conduct:

(1) is directed at one or more handicapped persons or senior citizens; and

(2) will cause or is likely to cause a handicapped person or a senior citizen to suffer loss or encumbrance of a primary residence, principal employment or other major source of income, substantial loss of property set aside for retirement or for personal or family care and maintenance, substantial loss of pension, retirement plan, or government benefits, or substantial loss of other assets essential to the victim's health or welfare.

Subd. 3. [PROSECUTORIAL JURISDICTION.] The attorney general has statewide jurisdiction to prosecute violations of this section. This jurisdiction is concurrent with that of the local prosecuting authority responsible for prosecuting gross misdemeanors in the place where the violation was committed.

Sec. 14. Minnesota Statutes 1996, section 609.487, subdivision 3, is amended to read:

Subd. 3. [FLEEING AN OFFICER.] Whoever by means of a motor vehicle flees or attempts to flee a peace officer who is acting in the lawful discharge of an official duty, and the perpetrator knows or should reasonably know the same to be a peace officer, may be sentenced to imprisonment for not more than one year or to payment of a fine of not more than $3,000, or both. Whoever violates this subdivision a second or subsequent time is guilty of a felony and may be sentenced to imprisonment for not more than one year three years and one day or to payment of a fine of not more than $3,000 $5,000, or both.

Sec. 15. Minnesota Statutes 1996, section 609.495, subdivision 1, is amended to read:

Subdivision 1. (a) Whoever harbors, conceals, or aids another known by the actor to have committed a felony under the laws of this or another state or of the United States with intent that such offender shall avoid or escape from arrest, trial, conviction, or punishment, may be sentenced to imprisonment for not more than three years or to payment of a fine of not more than $5,000, or both.

(b) Whoever knowingly harbors, conceals, or aids a person who is on probation, parole, or supervised release because of a felony level conviction and for whom an arrest and detention order has been issued, with intent that the person evade or escape being taken into custody under the order, may be sentenced to imprisonment for not more than three years or to payment of a fine of not more than $5,000, or both. As used in this paragraph, "arrest and detention order" means a written order to take and detain a probationer, parolee, or supervised releasee that is issued under section 243.05, subdivision 1; 260.311, subdivision 3a; or 401.02, subdivision 4.

Sec. 16. Minnesota Statutes 1996, section 609.498, is amended by adding a subdivision to read:

Subd. 1b. [AGGRAVATED FIRST-DEGREE WITNESS TAMPERING.] (a) A person is guilty of aggravated first-degree witness tampering if the person causes or, by means of an implicit or explicit credible threat, threatens to cause great bodily harm or death to another in the course of committing any of the following acts intentionally:

(1) preventing or dissuading or attempting to prevent or dissuade a person who is or may become a witness from attending or testifying at any criminal trial or proceeding;

(2) coercing or attempting to coerce a person who is or may become a witness to testify falsely at any criminal trial or proceeding;

(3) retaliating against a person who was summoned as a witness at any criminal trial or proceeding within a year following that trial or proceeding or within a year following the actor's release from incarceration, whichever is later;

(4) preventing or dissuading or attempting to prevent or dissuade a person from providing information to law enforcement authorities concerning a crime;


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(5) coercing or attempting to coerce a person to provide false information concerning a crime to law enforcement authorities; or

(6) retaliating against any person who has provided information to law enforcement authorities concerning a crime within a year of that person providing the information or within a year of the actor's release from incarceration, whichever is later.

(b) A person convicted of committing any act prohibited by paragraph (a) may be sentenced as follows:

(1) if the crime that was the subject of the witness tampering conduct is ranked at severity level VII or higher by the sentencing guidelines or is punishable by a mandatory prison sentence, to imprisonment for not more than 20 years or to payment of a fine of not more than $30,000, or both;

(2) otherwise, to imprisonment for not more than ten years or to payment of a fine of not more than $20,000, or both.

Sec. 17. Minnesota Statutes 1996, section 609.498, is amended by adding a subdivision to read:

Subd. 4. [NO BAR TO CONVICTION.] Notwithstanding sections 609.035 or 609.04, a prosecution for or conviction of the crime of aggravated first-degree witness tampering is not a bar to conviction of or punishment for any other crime.

Sec. 18. Minnesota Statutes 1996, section 609.52, subdivision 2, is amended to read:

Subd. 2. [ACTS CONSTITUTING THEFT.] (a) Whoever does any of the following commits theft and may be sentenced as provided in subdivision 3:

(1) intentionally and without claim of right takes, uses, transfers, conceals or retains possession of movable property of another without the other's consent and with intent to deprive the owner permanently of possession of the property; or

(2) having a legal interest in movable property, intentionally and without consent, takes the property out of the possession of a pledgee or other person having a superior right of possession, with intent thereby to deprive the pledgee or other person permanently of the possession of the property; or

(3) obtains for the actor or another the possession, custody, or title to property of or performance of services by a third person by intentionally deceiving the third person with a false representation which is known to be false, made with intent to defraud, and which does defraud the person to whom it is made. "False representation" includes without limitation:

(a) (i) the issuance of a check, draft, or order for the payment of money, except a forged check as defined in section 609.631, or the delivery of property knowing that the actor is not entitled to draw upon the drawee therefor or to order the payment or delivery thereof; or

(b) (ii) a promise made with intent not to perform. Failure to perform is not evidence of intent not to perform unless corroborated by other substantial evidence; or

(c) (iii) the preparation or filing of a claim for reimbursement, a rate application, or a cost report used to establish a rate or claim for payment for medical care provided to a recipient of medical assistance under chapter 256B, which intentionally and falsely states the costs of or actual services provided by a vendor of medical care; or

(d) (iv) the preparation or filing of a claim for reimbursement for providing treatment or supplies required to be furnished to an employee under section 176.135 which intentionally and falsely states the costs of or actual treatment or supplies provided; or

(e) (v) the preparation or filing of a claim for reimbursement for providing treatment or supplies required to be furnished to an employee under section 176.135 for treatment or supplies that the provider knew were medically unnecessary, inappropriate, or excessive; or

(4) by swindling, whether by artifice, trick, device, or any other means, obtains property or services from another person; or


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(5) intentionally commits any of the acts listed in this subdivision but with intent to exercise temporary control only and:

(a) (i) the control exercised manifests an indifference to the rights of the owner or the restoration of the property to the owner; or

(b) (ii) the actor pledges or otherwise attempts to subject the property to an adverse claim; or

(c) (iii) the actor intends to restore the property only on condition that the owner pay a reward or buy back or make other compensation; or

(6) finds lost property and, knowing or having reasonable means of ascertaining the true owner, appropriates it to the finder's own use or to that of another not entitled thereto without first having made reasonable effort to find the owner and offer and surrender the property to the owner; or

(7) intentionally obtains property or services, offered upon the deposit of a sum of money or tokens in a coin or token operated machine or other receptacle, without making the required deposit or otherwise obtaining the consent of the owner; or

(8) intentionally and without claim of right converts any article representing a trade secret, knowing it to be such, to the actor's own use or that of another person or makes a copy of an article representing a trade secret, knowing it to be such, and intentionally and without claim of right converts the same to the actor's own use or that of another person. It shall be a complete defense to any prosecution under this clause for the defendant to show that information comprising the trade secret was rightfully known or available to the defendant from a source other than the owner of the trade secret; or

(9) leases or rents personal property under a written instrument and who with intent to place the property beyond the control of the lessor conceals or aids or abets the concealment of the property or any part thereof, or any lessee of the property who sells, conveys, or encumbers the property or any part thereof without the written consent of the lessor, without informing the person to whom the lessee sells, conveys, or encumbers that the same is subject to such lease and with intent to deprive the lessor of possession thereof. Evidence that a lessee used a false or fictitious name or address in obtaining the property or fails or refuses to return the property to lessor within five days after written demand for the return has been served personally in the manner provided for service of process of a civil action or sent by certified mail to the last known address of the lessee, whichever shall occur later, shall be evidence of intent to violate this clause. Service by certified mail shall be deemed to be complete upon deposit in the United States mail of such demand, postpaid and addressed to the person at the address for the person set forth in the lease or rental agreement, or, in the absence of the address, to the person's last known place of residence; or

(10) alters, removes, or obliterates numbers or symbols placed on movable property for purpose of identification by the owner or person who has legal custody or right to possession thereof with the intent to prevent identification, if the person who alters, removes, or obliterates the numbers or symbols is not the owner and does not have the permission of the owner to make the alteration, removal, or obliteration; or

(11) with the intent to prevent the identification of property involved, so as to deprive the rightful owner of possession thereof, alters or removes any permanent serial number, permanent distinguishing number or manufacturer's identification number on personal property or possesses, sells or buys any personal property knowing or having reason to know that the permanent serial number, permanent distinguishing number or manufacturer's identification number has been removed or altered; or

(12) intentionally deprives another of a lawful charge for cable television service by:

(i) making or using or attempting to make or use an unauthorized external connection outside the individual dwelling unit whether physical, electrical, acoustical, inductive, or other connection, or by

(ii) attaching any unauthorized device to any cable, wire, microwave, or other component of a licensed cable communications system as defined in chapter 238. Nothing herein shall be construed to prohibit the electronic video rerecording of program material transmitted on the cable communications system by a subscriber for fair use as defined by Public Law Number 94-553, section 107; or


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(13) except as provided in paragraphs (12) and (14), obtains the services of another with the intention of receiving those services without making the agreed or reasonably expected payment of money or other consideration; or

(14) intentionally deprives another of a lawful charge for telecommunications service by:

(i) making, using, or attempting to make or use an unauthorized connection whether physical, electrical, by wire, microwave, radio, or other means to a component of a local telecommunication system as provided in chapter 237; or

(ii) attaching an unauthorized device to a cable, wire, microwave, radio, or other component of a local telecommunication system as provided in chapter 237.

The existence of an unauthorized connection is prima facie evidence that the occupier of the premises:

(i) made or was aware of the connection; and

(ii) was aware that the connection was unauthorized; or

(15) with intent to defraud, diverts corporate property other than in accordance with general business purposes or for purposes other than those specified in the corporation's articles of incorporation; or

(16) with intent to defraud, authorizes or causes a corporation to make a distribution in violation of section 302A.551, or any other state law in conformity with it; or

(17) intentionally takes or drives a motor vehicle without the consent of the owner or an authorized agent of the owner which the actor does not own or did not lease or rent.

(b) It is an affirmative defense to a violation of paragraph (a), clause (17), if the defendant proves by a preponderance of the evidence that the defendant took or drove the motor vehicle with the consent of the owner or an authorized agent of the owner.

Sec. 19. Minnesota Statutes 1996, section 609.749, subdivision 1, is amended to read:

Subdivision 1. [DEFINITION.] As used in this section, "harass" means to engage in intentional conduct in a manner that which:

(1) the actor knows or should know would cause a reasonable person the victim under the circumstances to feel frightened, threatened, oppressed, persecuted, or intimidated; and

(2) causes this reaction on the part of the victim.

Sec. 20. Minnesota Statutes 1996, section 609.749, is amended by adding a subdivision to read:

Subd. 1a. [NO PROOF OF SPECIFIC INTENT REQUIRED.] In a prosecution under this section, the state is not required to prove that the actor intended to cause the victim to feel frightened, threatened, oppressed, persecuted, or intimidated, or except as otherwise provided in subdivision 3, clause (4), that the actor intended to cause any other result.

Sec. 21. Minnesota Statutes 1996, section 609.749, subdivision 2, is amended to read:

Subd. 2. [HARASSMENT AND STALKING CRIMES.] (a) A person who harasses another by committing any of the following acts is guilty of a gross misdemeanor:

(1) directly or indirectly manifests a purpose or intent to injure the person, property, or rights of another by the commission of an unlawful act;

(2) stalks, follows, or pursues another;


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(3) returns to the property of another if the actor is without claim of right to the property or consent of one with authority to consent;

(4) repeatedly makes telephone calls, or induces a victim to make telephone calls to the actor, whether or not conversation ensues;

(5) makes or causes the telephone of another repeatedly or continuously to ring;

(6) repeatedly uses the mail mails or delivers or causes the delivery of letters, telegrams, messages, packages, or other objects; or

(7) engages in any other harassing conduct that interferes with another person or intrudes on the person's privacy or liberty.

(b) The conduct described in paragraph (a), clauses (4) and (5) may be prosecuted either at the place where the any call is either made or where it is received. The conduct described in paragraph (a), clause (6) may be prosecuted either where the mail is deposited or where it is any letter, telegram, message, package, or other object is either sent or received.

Sec. 22. Minnesota Statutes 1996, section 609.749, subdivision 5, is amended to read:

Subd. 5. [PATTERN OF HARASSING CONDUCT.] (a) A person who engages in a pattern of harassing conduct with respect to a single victim or one or more members of a single household in a manner that which the actor knows or should know would cause a reasonable person the victim under the circumstances to feel terrorized or to fear bodily harm and that which does cause this reaction on the part of the victim, is guilty of a felony and may be sentenced to imprisonment for not more than ten years or to payment of a fine of not more than $20,000, or both.

(b) For purposes of this subdivision, a "pattern of harassing conduct" means two or more acts within a five-year period that violate the provisions of any of the following:

(1) this section;

(2) section 609.713;

(3) section 609.224;

(4) section 609.2242;

(5) section 518B.01, subdivision 14;

(6) section 609.748, subdivision 6;

(7) section 609.605, subdivision 1, paragraph (b), clauses (3), (4), and (7);

(8) section 609.79;

(9) section 609.795;

(10) section 609.582; or

(11) section 609.595; or

(12) section 609.765.


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Sec. 23. Minnesota Statutes 1996, section 609.78, is amended to read:

609.78 [EMERGENCY TELEPHONE CALLS AND COMMUNICATIONS.]

Subdivision 1. [MISDEMEANOR OFFENSES.] Whoever does the following is guilty of a misdemeanor:

(1) Refuses to relinquish immediately a coin-operated telephone or a telephone line consisting of two or more stations when informed that the line is needed to make an emergency call for medical or ambulance service or for assistance from a police or fire department or for other service needed in an emergency to avoid serious harm to person or property, and an emergency exists;

(2) Secures a relinquishment of a coin-operated telephone or a telephone line consisting of two or more stations by falsely stating that the line is needed for an emergency;

(3) Publishes telephone directories to be used for telephones or telephone lines and the directories do not contain a copy of this section;

(4) Makes an emergency call for medical or ambulance service, knowing that no medical emergency exists; or

(5) Interrupts, disrupts, impedes, or otherwise interferes with the transmission of a citizen's band radio channel communication the purpose of which is to inform or inquire about a medical emergency or an emergency in which property is or is reasonably believed to be in imminent danger of damage or destruction.

Subd. 2. [INTERFERENCE WITH A 911 CALL; GROSS MISDEMEANOR OFFENSE.] A person who intentionally interrupts, disrupts, impedes, or otherwise interferes with a 911 call or who prevents or hinders another from placing a 911 call, and whose conduct does not result in a violation of section 609.498, is guilty of a gross misdemeanor and may be sentenced to imprisonment for not more than one year or to payment of a fine of not more than $3,000, or both.

Sec. 24. Minnesota Statutes 1996, section 631.07, is amended to read:

631.07 [ORDER OF FINAL ARGUMENT.]

When the giving of evidence is concluded in a criminal trial, unless the case is submitted on both sides without argument, the prosecution may make a closing argument to the jury. The defense may then make its closing argument to the jury. On the motion of the prosecution, the court may permit the prosecution to reply in rebuttal if the court determines that the defense has made in its closing argument a misstatement of law or fact or a statement that is inflammatory or prejudicial. The rebuttal must be limited to a direct response to the misstatement of law or fact or the inflammatory or prejudicial statement. The prosecutor may then reply in rebuttal to the issues raised in the defendant's argument, limited in time to five minutes. If the prosecutor replies in rebuttal, the defense may then reply in surrebuttal to the issues raised in the prosecution's rebuttal, limited in time to five minutes. The court in its discretion may reasonably equally extend the time of the prosecutor's or the defense's rebuttal arguments.

Sec. 25. [RULE SUPERSEDED.]

Minnesota Rules of Criminal Procedure, rule 26.03, subdivision 11, is superseded to the extent it conflicts with Minnesota Statutes, section 631.07.

Sec. 26. [SENTENCING GUIDELINES MODIFICATION.]

The sentencing guidelines commission shall modify sentencing guideline II. F. to permit courts to impose consecutive sentences in any case in which:

(1) the defendant is sentenced for multiple current felony offenses and the court stays imposition or execution of sentence for all but one of the offenses; or

(2) the defendant, at the time of sentencing, is subject to a prior felony sentence, the imposition or execution of which was stayed.


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A consecutive sentence imposed under this section is not a departure from the sentencing guidelines.

Sec. 27. [SENTENCING GUIDELINES DIRECTIVE.]

The sentencing guidelines commission shall rank aggravated first-degree witness tampering crimes that are subject to the sentence provided in Minnesota Statutes, section 609.498, subdivision 1b, paragraph (b), clause (1), at severity level VIII. The commission also shall classify this crime as a crime against the person for purposes of the sentencing guidelines.

Sec. 28. [COST OF CRIME STUDY.]

The legislative audit commission is requested to direct the legislative auditor to conduct a study of the costs that criminal activity places on the state and local communities. The study shall include not only the direct costs to state and local governments of responding to, prosecuting, and punishing criminal offenders, but also the indirect economic and social costs that criminal activity places on local communities and their residents.

If the commission directs the auditor to conduct this study, the auditor shall report findings to the chairs of the senate crime prevention and house judiciary committees by February 15, 1998.

Sec. 29. [EFFECTIVE DATE.]

Section 2 is effective the day after final enactment. Sections 19 to 22 are effective the day following final enactment and apply to crimes committed on or after that date. Sections 1, 3 to 5, 8 to 18, 23, and 27 are effective August 1, 1997, and apply to crimes committed on or after that date.

ARTICLE 4

CONTROLLED SUBSTANCES

Section 1. Minnesota Statutes 1996, section 151.40, is amended to read:

151.40 [POSSESSION AND SALE OF HYPODERMIC SYRINGES AND NEEDLES.]

Subdivision 1. [GENERALLY.] Except as otherwise provided in subdivision 2, it shall be is unlawful for any person to possess, control, manufacture, sell, furnish, dispense, or otherwise dispose of hypodermic syringes or needles or any instrument or implement which can be adapted for subcutaneous injections, except by the following persons when acting in the course of their practice or employment: licensed practitioners, registered pharmacies and their employees or agents, licensed pharmacists, licensed doctors of veterinary medicine or their assistants, registered nurses, registered medical technologists, medical interns, licensed drug wholesalers, their employees or agents, licensed hospitals, licensed nursing homes, bona fide hospitals where animals are treated, licensed morticians, syringe and needle manufacturers, their dealers and agents, persons engaged in animal husbandry, clinical laboratories, persons engaged in bona fide research or education or industrial use of hypodermic syringes and needles provided such persons cannot use hypodermic syringes and needles for the administration of drugs to human beings unless such drugs are prescribed, dispensed, and administered by a person lawfully authorized to do so, persons who administer drugs pursuant to an order or direction of a licensed doctor of medicine or of a licensed doctor of osteopathy duly licensed to practice medicine.

Subd. 2. [SALES OF LIMITED QUANTITIES OF CLEAN NEEDLES AND SYRINGES.] (a) A registered pharmacy or its agent or a licensed pharmacist may sell, without a prescription, unused hypodermic needles and syringes in quantities of ten or fewer, provided that the pharmacy or pharmacist complies with all of the requirements of this subdivision.

(b) At any location where hypodermic needles and syringes are kept for retail sale under this subdivision, the needles and syringes shall be stored in a manner that makes them available only to authorized personnel and not openly available to customers.

(c) No registered pharmacy or licensed pharmacist may advertise to the public the availability for retail sale, without a prescription, of hypodermic needles or syringes in quantities of ten or fewer.


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(d) A registered pharmacy or licensed pharmacist that sells hypodermic needles or syringes under this section may give the purchaser the materials developed by the commissioner of health.

Sec. 2. Minnesota Statutes 1996, section 152.01, subdivision 18, is amended to read:

Subd. 18. [DRUG PARAPHERNALIA.] (a) Except as otherwise provided in paragraph (b), "drug paraphernalia" means all equipment, products, and materials of any kind, except those items used in conjunction with permitted uses of controlled substances under this chapter or the Uniform Controlled Substances Act, which are knowingly or intentionally used primarily in (1) manufacturing a controlled substance, (2) injecting, ingesting, inhaling, or otherwise introducing into the human body a controlled substance, (3) testing the strength, effectiveness, or purity of a controlled substance, or (4) enhancing the effect of a controlled substance.

(b) "Drug paraphernalia" does not include the possession, manufacture, delivery, or sale of unused hypodermic needles or syringes in quantities of ten or fewer in accordance with section 151.40, subdivision 2.

Sec. 3. Minnesota Statutes 1996, section 152.01, is amended by adding a subdivision to read:

Subd. 22. [DRUG TREATMENT FACILITY ZONE.] "Drug treatment facility zone" means any facility in which a residential rehabilitation program licensed under Minnesota Rules, parts 9530.4100 to 9530.4450, is located, plus the area within 300 feet of the facility's property boundary or one city block, whichever distance is greater.

Sec. 4. Minnesota Statutes 1996, section 152.02, subdivision 2, is amended to read:

Subd. 2. The following items are listed in Schedule I:

(1) Any of the following substances, including their isomers, esters, ethers, salts, and salts of isomers, esters, and ethers, unless specifically excepted, whenever the existence of such isomers, esters, ethers and salts is possible within the specific chemical designation: Acetylmethadol; Allylprodine; Alphacetylmethadol; Alphameprodine; Alphamethadol; Benzethidine; Betacetylmethadol; Betameprodine; Betamethadol; Betaprodine; Clonitazene; Dextromoramide; Dextrorphan; Diampromide; Diethyliambutene; Dimenoxadol; Dimepheptanol; Dimethyliambutene; Dioxaphetyl butyrate; Dipipanone; Ethylmethylthiambutene; Etonitazene; Etoxeridine; Furethidine; Hydroxypethidine; Ketobemidone; Levomoramide; Levophenacylmorphan; Morpheridine; Noracymethadol; Norlevorphanol; Normethadone; Norpipanone; Phenadoxone; Phenampromide; Phenomorphan; Phenoperidine; Piritramide; Proheptazine; Properidine; Racemoramide; Trimeperidine.

(2) Any of the following opium derivatives, their salts, isomers and salts of isomers, unless specifically excepted, whenever the existence of such salts, isomers and salts of isomers is possible within the specific chemical designation: Acetorphine; Acetyldihydrocodeine; Acetylcodone; Benzylmorphine; Codeine methylbromide; Codeine-N-Oxide; Cyprenorphine; Desomorphine; Dihydromorphine; Etorphine; Heroin; Hydromorphinol; Methyldesorphine; Methylhydromorphine; Morphine methylbromide; Morphine methylsulfonate; Morphine-N-Oxide; Myrophine; Nicocodeine; Nicomorphine; Normorphine; Pholcodine; Thebacon.

(3) Any material, compound, mixture or preparation which contains any quantity of the following hallucinogenic substances, their salts, isomers and salts of isomers, unless specifically excepted, whenever the existence of such salts, isomers, and salts of isomers is possible within the specific chemical designation: 3,4-methylenedioxy amphetamine; 4-bromo-2.5-dimethoxyamphetamine; 2.5-dimethoxyamphetamine; 4-methoxyamphetamine; 5-methoxy-3, 4-methylenedioxy amphetamine; Bufotenine; Diethyltryptamine; Dimethyltryptamine; 3,4,5-trimethoxy amphetamine; 4-methyl-2, 5-dimethoxyamphetamine; Ibogaine; Lysergic acid diethylamide; marijuana; Mescaline; N-ethyl-3-piperidyl benzilate; N-methyl-3-piperidyl benzilate; Psilocybin; Psilocyn; Tetrahydrocannabinols; 1-(1-(2-thienyl) cyclohexyl) piperidine; n-ethyl-1-phenyl-cyclohexylamine; 1-(1-phenylcyclohexyl) pyrrolidine.

(4) Peyote, providing the listing of peyote as a controlled substance in schedule I does not apply to the nondrug use of peyote in bona fide religious ceremonies of the American Indian Church, and members of the American Indian Church are exempt from registration. Any person who manufactures peyote for or distributes peyote to the American Indian Church, however, is required to obtain federal registration annually and to comply with all other requirements of law.


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(5) Unless specifically excepted or unless listed in another schedule, any material compound, mixture, or preparation which contains any quantity of the following substances having a depressant effect on the central nervous system, including its salts, isomers, and salts of isomers whenever the existence of such salts, isomers, and salts of isomers is possible within the specific chemical designation:

Mecloqualone;

Flunitrazepam.

(6) Unless specifically excepted or unless listed in another schedule, any material compound, mixture, or preparation which contains any quantity of the following substances having a stimulant effect on the central nervous system, including its salts, isomers, and salts of isomers whenever the existence of such salts, isomers, and salts of isomers is possible within the specific chemical designation:

Cathinone;

Methcathinone.

Sec. 5. Minnesota Statutes 1996, section 152.02, subdivision 5, is amended to read:

Subd. 5. (a) The following items are listed in Schedule IV: Anabolic substances; Barbital; Butorphanol; Carisoprodol; Chloral betaine; Chloral hydrate; Chlordiazepoxide; Clonazepam; Clorazepate; Diazepam; Diethylpropion; Ethchlorvynol; Ethinamate; Fenfluramine; Flurazepam; Mebutamate; Methohexital; Meprobamate except when in combination with the following drugs in the following or lower concentrations: conjugated estrogens, 0.4 mg; tridihexethyl chloride, 25mg; pentaerythritol tetranitrate, 20 mg; Methylphenobarbital; Oxazepam; Paraldehyde; Pemoline; Petrichloral; Phenobarbital; and Phentermine; and Tramadol.

(b) For purposes of this subdivision, "anabolic substances" means the naturally occurring androgens or derivatives of androstane (androsterone and testosterone); testosterone and its esters, including, but not limited to, testosterone propionate, and its derivatives, including, but not limited to, methyltestosterone and growth hormones, except that anabolic substances are not included if they are: (1) expressly intended for administration through implants to cattle or other nonhuman species; and (2) approved by the United States Food and Drug Administration for that use.

Sec. 6. Minnesota Statutes 1996, section 152.021, subdivision 1, is amended to read:

Subdivision 1. [SALE CRIMES.] A person is guilty of controlled substance crime in the first degree if:

(1) on one or more occasions within a 90-day period the person unlawfully sells one or more mixtures of a total weight of ten grams or more containing cocaine or heroin;

(2) on one or more occasions within a 90-day period the person unlawfully sells one or more mixtures of a total weight of 50 grams or more containing a narcotic drug other than cocaine or heroin;

(3) on one or more occasions within a 90-day period the person unlawfully sells one or more mixtures of a total weight of 50 grams or more containing methamphetamine, amphetamine, phencyclidine, or hallucinogen or, if the controlled substance is packaged in dosage units, equaling 200 or more dosage units; or

(4) on one or more occasions within a 90-day period the person unlawfully sells one or more mixtures of a total weight of 50 kilograms or more containing marijuana or Tetrahydrocannabinols, or one or more mixtures of a total weight of 25 kilograms or more containing marijuana or Tetrahydrocannabinols in a school zone, a park zone, a drug treatment facility zone, or a public housing zone.

Sec. 7. Minnesota Statutes 1996, section 152.021, subdivision 2, is amended to read:

Subd. 2. [POSSESSION CRIMES.] A person is guilty of a controlled substance crime in the first degree if:

(1) the person unlawfully possesses one or more mixtures of a total weight of 25 grams or more containing cocaine or heroin;


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(2) the person unlawfully possesses one or more mixtures of a total weight of 500 grams or more containing a narcotic drug other than cocaine or heroin;

(3) the person unlawfully possesses one or more mixtures of a total weight of 500 grams or more containing methamphetamine, amphetamine, phencyclidine, or hallucinogen or, if the controlled substance is packaged in dosage units, equaling 500 or more dosage units; or

(4) the person unlawfully possesses one or more mixtures of a total weight of 100 kilograms or more containing marijuana or Tetrahydrocannabinols.

Sec. 8. Minnesota Statutes 1996, section 152.021, subdivision 3, is amended to read:

Subd. 3. [PENALTY.] (a) A person convicted under subdivision 1 or 2 may be sentenced to imprisonment for not more than 30 years or to payment of a fine of not more than $1,000,000, or both.

(b) If the conviction is a subsequent controlled substance conviction, a person convicted under subdivision 1 or 2 shall be committed to the commissioner of corrections for not less than four years nor more than 40 years and, in addition, may be sentenced to payment of a fine of not more than $1,000,000.

(c) In a prosecution under subdivision 1 or 2 involving sales or acts of possession by the same person in two one or more counties within a 90-day 180-day period, the amounts sold or possessed may be aggregated and the person may be prosecuted for all of the sales in any county in which one of the sales or acts of possession occurred.

Sec. 9. Minnesota Statutes 1996, section 152.022, subdivision 1, is amended to read:

Subdivision 1. [SALE CRIMES.] A person is guilty of controlled substance crime in the second degree if:

(1) on one or more occasions within a 90-day period the person unlawfully sells one or more mixtures of a total weight of three grams or more containing cocaine or heroin;

(2) on one or more occasions within a 90-day period the person unlawfully sells one or more mixtures of a total weight of ten grams or more containing a narcotic drug other than cocaine or heroin;

(3) on one or more occasions within a 90-day period the person unlawfully sells one or more mixtures of a total weight of ten grams or more containing methamphetamine, amphetamine, phencyclidine, or hallucinogen or, if the controlled substance is packaged in dosage units, equaling 50 or more dosage units;

(4) on one or more occasions within a 90-day period the person unlawfully sells one or more mixtures of a total weight of 25 kilograms or more containing marijuana or Tetrahydrocannabinols;

(5) the person unlawfully sells any amount of a schedule I or II narcotic drug to a person under the age of 18, or conspires with or employs a person under the age of 18 to unlawfully sell the substance; or

(6) the person unlawfully sells any of the following in a school zone, a park zone, a drug treatment facility zone, or a public housing zone:

(i) any amount of a schedule I or II narcotic drug, or lysergic acid diethylamide (LSD);

(ii) one or more mixtures containing methamphetamine or amphetamine; or

(iii) one or more mixtures of a total weight of five kilograms or more containing marijuana or Tetrahydrocannabinols.

Sec. 10. Minnesota Statutes 1996, section 152.022, subdivision 2, is amended to read:

Subd. 2. [POSSESSION CRIMES.] A person is guilty of controlled substance crime in the second degree if:

(1) the person unlawfully possesses one or more mixtures of a total weight of six grams or more containing cocaine or heroin;


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(2) the person unlawfully possesses one or more mixtures of a total weight of 50 grams or more containing a narcotic drug other than cocaine or heroin;

(3) the person unlawfully possesses one or more mixtures of a total weight of 50 grams or more containing methamphetamine, amphetamine, phencyclidine, or hallucinogen or, if the controlled substance is packaged in dosage units, equaling 100 or more dosage units; or

(4) the person unlawfully possesses one or more mixtures of a total weight of 50 kilograms or more containing marijuana or Tetrahydrocannabinols.

Sec. 11. Minnesota Statutes 1996, section 152.022, subdivision 3, is amended to read:

Subd. 3. [PENALTY.] (a) A person convicted under subdivision 1 or 2 may be sentenced to imprisonment for not more than 25 years or to payment of a fine of not more than $500,000, or both.

(b) If the conviction is a subsequent controlled substance conviction, a person convicted under subdivision 1 or 2 shall be committed to the commissioner of corrections for not less than three years nor more than 40 years and, in addition, may be sentenced to payment of a fine of not more than $500,000.

(c) In a prosecution under subdivision 1 or 2 involving sales or acts of possession by the same person in two one or more counties within a 90-day 180-day period, the amounts sold or possessed may be aggregated and the person may be prosecuted for all of the sales in any county in which one of the sales or acts of possession occurred.

Sec. 12. Minnesota Statutes 1996, section 152.023, subdivision 2, is amended to read:

Subd. 2. [POSSESSION CRIMES.] A person is guilty of controlled substance crime in the third degree if:

(1) the person unlawfully possesses one or more mixtures of a total weight of three grams or more containing cocaine or heroin;

(2) the person unlawfully possesses one or more mixtures of a total weight of ten grams or more containing a narcotic drug other than cocaine or heroin;

(3) the person unlawfully possesses one or more mixtures containing a narcotic drug, it is packaged in dosage units, and equals 50 or more dosage units;

(4) the person unlawfully possesses any amount of a schedule I or II narcotic drug or five or more dosage units of lysergic acid diethylamide (LSD) in a school zone, a park zone, a drug treatment facility zone, or a public housing zone;

(5) the person unlawfully possesses one or more mixtures of a total weight of ten kilograms or more containing marijuana or Tetrahydrocannabinols; or

(6) the person unlawfully possesses one or more mixtures containing methamphetamine or amphetamine in a school zone, a park zone, or a public housing zone.

Sec. 13. Minnesota Statutes 1996, section 152.023, subdivision 3, is amended to read:

Subd. 3. [PENALTY.] (a) A person convicted under subdivision 1 or 2 may be sentenced to imprisonment for not more than 20 years or to payment of a fine of not more than $250,000, or both.

(b) If the conviction is a subsequent controlled substance conviction, a person convicted under subdivision 1 or 2 shall be committed to the commissioner of corrections for not less than two years nor more than 30 years and, in addition, may be sentenced to payment of a fine of not more than $250,000.


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(c) In a prosecution under subdivision 1 or 2 involving sales or acts of possession by the same person in one or more counties within a 180-day period, the amounts sold or possessed may be aggregated and the person may be prosecuted in any county in which one of the sales or acts of possession occurred.

Sec. 14. Minnesota Statutes 1996, section 152.024, subdivision 1, is amended to read:

Subdivision 1. [SALE CRIMES.] A person is guilty of controlled substance crime in the fourth degree if:

(1) the person unlawfully sells one or more mixtures containing a controlled substance classified in schedule I, II, or III, except marijuana or Tetrahydrocannabinols;

(2) the person unlawfully sells one or more mixtures containing a controlled substance classified in schedule IV or V to a person under the age of 18;

(3) the person conspires with or employs a person under the age of 18 to unlawfully sell a controlled substance classified in schedule IV or V; or

(4) the person unlawfully sells any amount of marijuana or Tetrahydrocannabinols in a school zone, a park zone, a drug treatment facility zone, or a public housing zone, except a small amount for no remuneration.

Sec. 15. Minnesota Statutes 1996, section 152.029, is amended to read:

152.029 [PUBLIC INFORMATION: SCHOOL ZONES, PARK ZONES, DRUG TREATMENT FACILITY ZONES, AND PUBLIC HOUSING ZONES.]

The attorney general shall disseminate information to the public relating to the penalties for committing controlled substance crimes in park zones, school zones, drug treatment facility zones, and public housing zones. The attorney general shall draft a plain language version of sections 152.022 and 152.023 and relevant provisions of the sentencing guidelines, that describes in a clear and coherent manner using words with common and everyday meanings the content of those provisions. The attorney general shall publicize and disseminate the plain language version as widely as practicable, including distributing the version to school boards, local governments, and administrators and occupants of drug treatment facilities and public housing.

Sec. 16. [EXTENSION OF EXPIRATION DATE.]

Notwithstanding Minnesota Statutes, section 15.059, the advisory council on drug abuse resistance education expires on June 30, 1999.

Sec. 17. [EFFECTIVE DATE.]

Sections 1 to 15 are effective August 1, 1997, and apply to crimes committed on or after that date. Section 16 is effective the day following final enactment.

ARTICLE 5

SEX OFFENDERS

Section 1. Minnesota Statutes 1996, section 243.166, subdivision 1, is amended to read:

Subdivision 1. [REGISTRATION REQUIRED.] (a) A person shall register under this section if:

(1) the person was charged with or petitioned for a felony violation of or attempt to violate any of the following, and convicted of or adjudicated delinquent for that offense or another offense arising out of the same set of circumstances:

(i) murder under section 609.185, clause (2);


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(ii) kidnapping under section 609.25, involving a minor victim; or

(iii) criminal sexual conduct under section 609.342; 609.343; 609.344; or 609.345; or

(2) the person was charged with or petitioned for falsely imprisoning a minor in violation of section 609.255, or soliciting a minor to engage in prostitution in violation of section 609.322, 609.323, or 609.324, or soliciting a minor to engage in sexual conduct in violation of section 609.352, or using a minor in a sexual performance in violation of section 617.246, or possessing pictorial representations of minors in violation of section 617.247, or engaging in indecent exposure in violation of section 617.23, subdivision 3, clause (2), and convicted of or adjudicated delinquent for that offense or another offense arising out of the same set of circumstances; or

(3) the person was convicted of a predatory crime as defined in section 609.1352, and the offender was sentenced as a patterned sex offender or the court found on its own motion or that of the prosecutor that the crime was part of a predatory pattern of behavior that had criminal sexual conduct as its goal; or

(4) the person was convicted of or adjudicated delinquent for violating a law of the United States similar to the offenses described in clause (1), (2), or (3).

(b) A person also shall register under this section if:

(1) the person was convicted of or adjudicated delinquent in another state for an offense that would be a violation of a law described in paragraph (a) if committed in this state;

(2) the person enters and remains in this state for 30 days or longer; and

(3) ten years have not elapsed since the person was released from confinement or, if the person was not confined, since the person was convicted of or adjudicated delinquent for the offense that triggers registration.

(c) A person also shall register under this section if the person was committed pursuant to a court commitment order under section 253B.185 or Minnesota Statutes 1992, section 526.10, regardless of whether the person was convicted of any offense.

Sec. 2. Minnesota Statutes 1996, section 243.166, subdivision 2, is amended to read:

Subd. 2. [NOTICE.] When a person who is required to register under subdivision 1, paragraph (a), is sentenced or becomes subject to a juvenile court disposition order, the court shall tell the person of the duty to register under this section. The court shall require the person to read and sign a form stating that the duty of the person to register under this section has been explained. If a person required to register under subdivision 1, paragraph (a), was not notified by the court of the registration requirement at the time of sentencing or disposition, the assigned corrections agent shall notify the person of the requirements of this section. When a person who is required to register under subdivision 1, paragraph (c), is released from commitment, the treatment facility shall notify the person of the requirements of this section. The treatment facility shall also obtain the registration information required under this section and forward it to the bureau of criminal apprehension.

Sec. 3. Minnesota Statutes 1996, section 243.166, subdivision 3, is amended to read:

Subd. 3. [REGISTRATION PROCEDURE.] (a) A person required to register under this section shall register with the corrections agent as soon as the agent is assigned to the person. If the person does not have an assigned corrections agent or is unable to locate the assigned corrections agent, the person shall register with the law enforcement agency that has jurisdiction in the area of the person's residence.

(b) At least five days before the person changes residence starts living at a new address, including changing residence to living in another state, the person shall give written notice of the address of the new residence new living address to the assigned corrections agent or to the law enforcement authority with which the person currently is registered. An offender is deemed to change residence when the offender remains at a new address for longer than three days and evinces an intent to take up residence there. If the person will be living in a new state and that state has a registration requirement, the person


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shall also give written notice of the new address to the designated registration agency in the new state. The corrections agent or law enforcement authority shall, within two business days after receipt of this information, forward it to the bureau of criminal apprehension. The bureau of criminal apprehension shall, if it has not already been done, notify the law enforcement authority having primary jurisdiction in the community where the person will live of the new address. If the person is leaving the state, the bureau of criminal apprehension shall notify the registration authority in the new state of the new address.

Sec. 4. Minnesota Statutes 1996, section 243.166, subdivision 4, is amended to read:

Subd. 4. [CONTENTS OF REGISTRATION.] (a) The registration provided to the corrections agent or law enforcement authority, must consist of a statement in writing signed by the person, giving information required by the bureau of criminal apprehension, a fingerprint card, and photograph of the person taken at the time of the person's release from incarceration or, if the person was not incarcerated, at the time the person initially registered under this section.

(b) Within three days, the corrections agent or law enforcement authority shall forward the statement, fingerprint card, and photograph to the bureau of criminal apprehension. The bureau shall ascertain whether the person has registered with the law enforcement authority where the person resides. If the person has not registered with the law enforcement authority, the bureau shall send one copy to that authority.

(c) During the period a person is required to register under this section, the following shall apply:

(1) Each year, within 30 days of the anniversary date of the person's initial registration, the bureau of criminal apprehension shall mail a verification form to the last reported address of the person.

(2) The person shall mail the signed verification form back to the bureau of criminal apprehension within ten days after receipt of the form, stating on the form the current and last address of the person.

(3) If the person fails to mail the completed and signed verification form to the bureau of criminal apprehension within ten days after receipt of the form, the person shall be in violation of this section.

Sec. 5. Minnesota Statutes 1996, section 244.052, subdivision 3, is amended to read:

Subd. 3. [END-OF-CONFINEMENT REVIEW COMMITTEE.] (a) The commissioner of corrections shall establish and administer end-of-confinement review committees at each state correctional facility and at each state treatment facility where sex offenders are confined. The committees shall assess on a case-by-case basis:

(1) the public risk posed by sex offenders who are about to be released from confinement; and

(2) the public risk posed by sex offenders who are accepted from another state under a reciprocal agreement under the interstate compact authorized by section 243.16.

(b) Each committee shall be a standing committee and shall consist of the following members appointed by the commissioner:

(1) the chief executive officer or head of the correctional or treatment facility where the offender is currently confined, or that person's designee;

(2) a law enforcement officer;

(3) a treatment professional who is trained in the assessment of sex offenders;

(4) a caseworker experienced in supervising sex offenders; and

(5) an employee of the department of corrections from the victim's services unit.


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Members of the committee, other than the facility's chief executive officer or head, shall be appointed by the commissioner to two-year terms. The chief executive officer or head of the facility or designee shall act as chair of the committee and shall use the facility's staff, as needed, to administer the committee, obtain necessary information from outside sources, and prepare risk assessment reports on offenders.

(c) The committee shall have access to the following data on a sex offender only for the purposes of its assessment and to defend the committee's decision upon administrative review under this section:

(1) private medical data under section 13.42 or 144.335, or welfare data under section 13.46 that relate to medical treatment of the offender;

(2) private and confidential court services data under section 13.84;

(3) private and confidential corrections data under section 13.85; and

(4) private criminal history data under section 13.87.

Data collected and maintained by the committee under this paragraph may not be disclosed outside the committee, except as provided under section 13.05, subdivision 3 or 4. The sex offender has access to data on the offender collected and maintained by the committee, unless the data are confidential data received under this paragraph.

(d) At least 90 days before a sex offender is to be released from confinement or accepted for supervision, the commissioner of corrections shall convene the appropriate end-of-confinement review committee for the purpose of assessing the risk presented by the offender and determining the risk level to which the offender shall be assigned under paragraph (e). The offender shall be notified of the time and place of the committee's meeting and has a right to be present and be heard at the meeting. The committee shall use the risk factors described in paragraph (g) and the risk assessment scale developed under subdivision 2 to determine the offender's risk assessment score and risk level. Offenders scheduled for release from confinement shall be assessed by the committee established at the facility from which the offender is to be released. Offenders accepted for supervision shall be assessed by whichever committee the commissioner directs.

(e) The committee shall assign to risk level I a sex offender whose risk assessment score indicates a low risk of reoffense. The committee shall assign to risk level II an offender whose risk assessment score indicates a moderate risk of reoffense. The committee shall assign to risk level III an offender whose risk assessment score indicates a high risk of reoffense.

(f) Before the sex offender is released from confinement or accepted for supervision, the committee shall prepare a risk assessment report which specifies the risk level to which the offender has been assigned and the reasons underlying the committee's risk assessment decision. The committee shall give the report to the offender and to the law enforcement agency at least 60 days before an offender is released from confinement or accepted for supervision. The committee also shall inform the offender of the availability of review under subdivision 6.

(g) As used in this subdivision, "risk factors" includes, but is not limited to, the following factors:

(1) the seriousness of the offense should the offender reoffend. This factor includes consideration of the following:

(i) the degree of likely force or harm;

(ii) the degree of likely physical contact; and

(iii) the age of the likely victim;

(2) the offender's prior offense history. This factor includes consideration of the following:

(i) the relationship of prior victims to the offender;

(ii) the number of prior offenses or victims;


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(iii) the duration of the offender's prior offense history;

(iv) the length of time since the offender's last prior offense while the offender was at risk to commit offenses; and

(v) the offender's prior history of other antisocial acts;

(3) the offender's characteristics. This factor includes consideration of the following:

(i) the offender's response to prior treatment efforts; and

(ii) the offender's history of substance abuse;

(4) the availability of community supports to the offender. This factor includes consideration of the following:

(i) the availability and likelihood that the offender will be involved in therapeutic treatment;

(ii) the availability of residential supports to the offender, such as a stable and supervised living arrangement in an appropriate location;

(iii) the offender's familial and social relationships, including the nature and length of these relationships and the level of support that the offender may receive from these persons; and

(iv) the offender's lack of education or employment stability;

(5) whether the offender has indicated or credible evidence in the record indicates that the offender will reoffend if released into the community; and

(6) whether the offender demonstrates a physical condition that minimizes the risk of reoffense, including but not limited to, advanced age or a debilitating illness or physical condition.

(h) Upon the request of the law enforcement agency or the offender's corrections agent, the commissioner may reconvene the end-of-confinement review committee for the purpose of reassessing the risk level to which an offender has been assigned under paragraph (e). In a request for a reassessment, the law enforcement agency or agent shall list the facts and circumstances arising after the initial assignment under paragraph (e) which support the request for a reassessment. Upon review of the request, the end-of-confinement review committee may reassign an offender to a different risk level. If the offender is reassigned to a higher risk level, the offender has the right to seek review of the committee's determination under subdivision 6.

(i) An offender may request the end-of-confinement review committee to reassess the offender's assigned risk level after two years have elapsed since the committee's initial risk assessment and may renew the request once every two years following subsequent denials. In a request for reassessment, the offender shall list the facts and circumstances which demonstrate that the offender no longer poses the same degree of risk to the community. The committee shall follow the process outlined in paragraphs (a) to (e), and (g) in the reassessment.

Sec. 6. Minnesota Statutes 1996, section 244.052, subdivision 4, is amended to read:

Subd. 4. [LAW ENFORCEMENT AGENCY; DISCLOSURE OF INFORMATION TO PUBLIC.] (a) The law enforcement agency in the area where the sex offender resides, expects to reside, is employed, or is regularly found, is authorized to shall disclose information to the public any information regarding the offender contained in the report forwarded to the agency under subdivision 3, paragraph (f), if the agency determines that disclosure of the information is relevant and necessary to protect the public and to counteract the offender's dangerousness. The extent of the information disclosed and the community to whom disclosure is made must relate to the level of danger posed by the offender, to the offender's pattern of offending behavior, and to the need of community members for information to enhance their individual and collective safety.


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(b) The law enforcement agency shall consider the following guidelines in determining the scope of disclosure made under this subdivision:

(1) if the offender is assigned to risk level I, the agency may maintain information regarding the offender within the agency and may disclose it to other law enforcement agencies. Additionally, the agency may disclose the information to any victims of or witnesses to the offense committed by the offender. The agency shall disclose the information to victims of the offense committed by the offender who have requested disclosure;

(2) if the offender is assigned to risk level II, the agency also may disclose the information to the following individuals, agencies and groups that the offender is likely to encounter: for the purpose of securing those institutions and protecting individuals in their care while they are on or near the premises of the institution. These individuals, agencies, and groups include but are not limited to the staff members of public and private educational institutions;, day care establishments;, and establishments and organizations that primarily serve individuals likely to be victimized by the offender;

(3) if the offender is assigned to risk level III, the agency also may disclose the information to other members of the community whom the offender is likely to encounter.

Notwithstanding the assignment of a sex offender to risk level II or III, a law enforcement agency may not make the disclosures permitted by clause (2) or (3), if: the offender is placed or resides in a residential facility that is licensed as a residential program, as defined in section 245A.02, subdivision 14, by the commissioner of human services under chapter 254A, or the commissioner of corrections under section 241.021; and the facility and its staff are trained in the supervision of sex offenders. However, if an offender is placed or resides in a licensed facility, the head of the facility shall notify the law enforcement agency before the end of the offender's placement or residence in the facility. Upon receiving this notification, commissioner of corrections or the commissioner of human services within 48 hours after finalizing the offender's approved relocation plan to a permanent residence. Within five days after receiving this notification, the appropriate commissioner shall give to the appropriate law enforcement agency all relevant information the commissioner has concerning the offender, including information on the risk factors in the offender's history and the risk level to which the offender was assigned. After receiving this information, the law enforcement agency may make the disclosures permitted by clause (2) or (3), as appropriate.

(c) As used in paragraph (b), clauses (2) and (3), "likely to encounter" means that:

(1) the organizations or community members are in a location or in close proximity to a location where the offender lives or is employed, or which the offender visits or is likely to visit on a regular basis, other than the location of the offender's outpatient treatment program; and

(2) the types of interaction which ordinarily occur at that location and other circumstances indicate that contact with the offender is reasonably certain.

(d) A law enforcement agency or official who decides to disclose information under this subdivision shall make a good faith effort to make the notification at least 14 days before an offender is released from confinement or accepted for supervision. If a change occurs in the release plan, this notification provision does not require an extension of the release date.

(e) A law enforcement agency or official that decides to disclose information under this subdivision shall make a good faith effort to conceal not disclose the identity of the victim or victims of or witnesses to the offender's offense offenses.

(f) A law enforcement agency may continue to disclose information on an offender under this subdivision for as long as the offender is required to register under section 243.166.

Sec. 7. Minnesota Statutes 1996, section 244.052, subdivision 5, is amended to read:

Subd. 5. [RELEVANT INFORMATION PROVIDED TO LAW ENFORCEMENT.] At least 60 days before a sex offender is released from confinement or accepted for supervision, the department of corrections or the department of human services, in the case of a person who was committed under section 253B.185 or Minnesota Statutes 1992, section 526.10,


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shall provide give to the appropriate law enforcement agency that investigated the offender's crime of conviction or, where relevant, the law enforcement agency having primary jurisdiction where the offender was committed, all relevant information that the departments have concerning the offender, including information on risk factors in the offender's history. Within five days after receiving the offender's approved release plan from the office of adult release, the appropriate department shall give to the law enforcement agency having primary jurisdiction where the offender plans to reside all relevant information the department has concerning the offender, including information on risk factors in the offender's history and the risk level to which the offender was assigned.

Sec. 8. Minnesota Statutes 1996, section 244.052, subdivision 6, is amended to read:

Subd. 6. [ADMINISTRATIVE REVIEW.] (a) An offender assigned or reassigned to risk level II or III under subdivision 3, paragraph (e) or (h), has the right to seek administrative review of an end-of-confinement review committee's risk assessment determination. The offender must exercise this right within 14 days of receiving notice of the committee's decision by notifying the chair of the committee. Upon receiving the request for administrative review, the chair shall notify: (1) the offender,; (2) the victim or victims of the offender's offense who have requested disclosure or their designee,; (3) the law enforcement agency, that investigated the offender's crime of conviction or, where relevant, the law enforcement agency having primary jurisdiction where the offender was committed; (4) the law enforcement agency having jurisdiction where the offender expects to reside, providing that the release plan has been approved by the office of adult release of the department of corrections; (5) and any other individuals the chair may select, of. The notice shall state the time and place of the hearing. A request for a review hearing shall not interfere with or delay the notification process under subdivision 4 or 5, unless the administrative law judge orders otherwise for good cause shown.

(b) An offender who requests a review hearing must be given a reasonable opportunity to prepare for the hearing. The review hearing shall be conducted on the record before an administrative law judge. The review hearing shall be conducted at the correctional facility in which the offender is currently confined. If the offender no longer is incarcerated, the administrative law judge shall determine the place where the review hearing will be conducted. The offender has the burden of proof to show, by a preponderance of the evidence, that the end-of-confinement review committee's risk assessment determination was erroneous. The attorney general or a designee shall defend the end-of-confinement review committee's determination. The offender has the right to be present and be represented by counsel at the hearing, to present evidence in support of the offender's position, to call supporting witnesses and to cross-examine witnesses testifying in support of the committee's determination. Counsel for indigent offenders shall be provided by the Legal Advocacy Project of the state public defender's office.

(c) After the hearing is concluded, the administrative law judge shall decide whether the end-of-confinement review committee's risk assessment determination was erroneous and, based on this decision, shall either uphold or modify the review committee's determination. The judge's decision shall be in writing and shall include the judge's reasons for the decision. The judge's decision shall be final and a copy of it shall be given to the offender, the victim, the law enforcement agency, and the chair of the end-of-confinement review committee.

(d) The review hearing is subject to the contested case provisions of chapter 14.

(e) The administrative law judge may seal any portion of the record of the administrative review hearing.

Sec. 9. Minnesota Statutes 1996, section 609.135, is amended by adding a subdivision to read:

Subd. 1c. [FAILURE TO COMPLETE COURT-ORDERED TREATMENT.] If the court orders a defendant to undergo sex offender treatment as a condition of probation and if the defendant fails to successfully complete treatment at least 60 days before the term of probation expires, the prosecutor or the defendant's probation officer may ask the court to hold a hearing to determine whether the conditions of probation should be changed or probation should be revoked. The court shall schedule and hold this hearing and take appropriate action, including action under subdivision 2, paragraph (h), before the defendant's term of probation expires.

Sec. 10. Minnesota Statutes 1996, section 609.135, subdivision 2, is amended to read:

Subd. 2. (a) If the conviction is for a felony the stay shall be for not more than four years or the maximum period for which the sentence of imprisonment might have been imposed, whichever is longer.


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(b) If the conviction is for a gross misdemeanor violation of section 169.121 or 169.129, the stay shall be for not more than four years. The court shall provide for unsupervised probation for the last one year of the stay unless the court finds that the defendant needs supervised probation for all or part of the last one year.

(c) If the conviction is for a gross misdemeanor not specified in paragraph (b), the stay shall be for not more than two years.

(d) If the conviction is for any misdemeanor under section 169.121; 609.746, subdivision 1; 609.79; or 617.23; or for a misdemeanor under section 609.2242 or 609.224, subdivision 1, in which the victim of the crime was a family or household member as defined in section 518B.01, the stay shall be for not more than two years. The court shall provide for unsupervised probation for the second year of the stay unless the court finds that the defendant needs supervised probation for all or part of the second year.

(e) If the conviction is for a misdemeanor not specified in paragraph (d), the stay shall be for not more than one year.

(f) The defendant shall be discharged six months after the term of the stay expires, unless the stay has been revoked or extended under paragraph (g) or (h), or the defendant has already been discharged.

(g) Notwithstanding the maximum periods specified for stays of sentences under paragraphs (a) to (f), a court may extend a defendant's term of probation for up to one year if it finds, at a hearing conducted under subdivision 1a, that:

(1) the defendant has not paid court-ordered restitution or a fine in accordance with the payment schedule or structure; and

(2) the defendant is likely to not pay the restitution or fine the defendant owes before the term of probation expires.

This one-year extension of probation for failure to pay restitution or a fine may be extended by the court for up to one additional year if the court finds, at another hearing conducted under subdivision 1a, that the defendant still has not paid the court-ordered restitution or fine that the defendant owes.

(h) Notwithstanding the maximum periods specified for stays of sentences under paragraphs (a) to (f), a court may extend a defendant's term of probation for up to three years if it finds, at a hearing conducted under subdivision 1c, that:

(1) the defendant has failed to complete court-ordered sex offender treatment successfully; and

(2) the defendant is likely not to complete court-ordered treatment before the term of probation expires.

Sec. 11. Minnesota Statutes 1996, section 609.3451, subdivision 3, is amended to read:

Subd. 3. [FELONY.] A person is guilty of a felony and may be sentenced to imprisonment for not more than five years or to payment of a fine of not more than $10,000, or both, if the person violates subdivision 1, clause (2), after having been previously convicted of or adjudicated delinquent for violating subdivision 1, clause (2); section 617.23, paragraph (b) subdivision 2, clause (1); or a statute from another state in conformity with subdivision 1, clause (2), or section 617.23, paragraph (b) subdivision 2, clause (1).

Sec. 12. Minnesota Statutes 1996, section 609.3461, subdivision 1, is amended to read:

Subdivision 1. [UPON SENTENCING.] The court shall order an offender to provide a biological specimen for the purpose of DNA analysis as defined in section 299C.155 when:

(1) the court sentences a person charged with violating or attempting to violate section 609.342, 609.343, 609.344, or 609.345, or 617.23, subdivision 3, clause (2), who is convicted of violating one of those sections or of any offense arising out of the same set of circumstances;

(2) the court sentences a person as a patterned sex offender under section 609.1352; or


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(3) the juvenile court adjudicates a person a delinquent child who is the subject of a delinquency petition for violating or attempting to violate section 609.342, 609.343, 609.344, or 609.345, and the delinquency adjudication is based on a violation of one of those sections or of any offense arising out of the same set of circumstances. The biological specimen or the results of the analysis shall be maintained by the bureau of criminal apprehension as provided in section 299C.155.

Sec. 13. Minnesota Statutes 1996, section 609.3461, subdivision 2, is amended to read:

Subd. 2. [BEFORE RELEASE.] If a person convicted of violating or attempting to violate section 609.185, clause (2), 609.342, 609.343, 609.344, or 609.345, or 617.23, subdivision 3, clause (2), or initially charged with violating one of those sections and convicted of another offense arising out of the same set of circumstances, or sentenced as a patterned sex offender under section 609.1352, and committed to the custody of the commissioner of corrections, or serving a term of imprisonment in this state under a reciprocal agreement although convicted in another state of an offense described in this subdivision or a similar law of the United States or any other state, has not provided a biological specimen for the purpose of DNA analysis, the commissioner of corrections or local corrections authority shall order the person to provide a biological specimen for the purpose of DNA analysis before completion of the person's term of imprisonment. The commissioner of corrections or local corrections authority shall forward the sample to the bureau of criminal apprehension.

Sec. 14. Minnesota Statutes 1996, section 609.347, subdivision 7, is amended to read:

Subd. 7. [EFFECT OF STATUTE ON RULES.] Rule 404, paragraph (c) 412 of the Rules of Evidence is superseded to the extent of its conflict with this section.

Sec. 15. Minnesota Statutes 1996, section 609.746, subdivision 1, is amended to read:

Subdivision 1. [SURREPTITIOUS INTRUSION; OBSERVATION DEVICE.] (a) A person is guilty of a misdemeanor who:

(1) enters upon another's property;

(2) surreptitiously gazes, stares, or peeps in the window or any other aperture of a house or place of dwelling of another; and

(3) does so with intent to intrude upon or interfere with the privacy of a member of the household.

(b) A person is guilty of a misdemeanor who:

(1) enters upon another's property;

(2) surreptitiously installs or uses any device for observing, photographing, recording, amplifying, or broadcasting sounds or events through the window or any other aperture of a house or place of dwelling of another; and

(3) does so with intent to intrude upon or interfere with the privacy of a member of the household.

(c) A person is guilty of a misdemeanor who:

(1) surreptitiously gazes, stares, or peeps in the window or other aperture of a sleeping room in a hotel, as defined in section 327.70, subdivision 3, a tanning booth, or other place where a reasonable person would have an expectation of privacy and has exposed or is likely to expose their intimate parts, as defined in section 609.341, subdivision 5, or the clothing covering the immediate area of the intimate parts; and

(2) does so with intent to intrude upon or interfere with the privacy of the occupant.


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(d) A person is guilty of a misdemeanor who:

(1) surreptitiously installs or uses any device for observing, photographing, recording, amplifying, or broadcasting sounds or events through the window or other aperture of a sleeping room in a hotel, as defined in section 327.70, subdivision 3, a tanning booth, or other place where a reasonable person would have an expectation of privacy and has exposed or is likely to expose their intimate parts, as defined in section 609.341, subdivision 5, or the clothing covering the immediate area of the intimate parts; and

(2) does so with intent to intrude upon or interfere with the privacy of the occupant.

(e) A person is guilty of a gross misdemeanor if the person:

(1) violates this subdivision after a previous conviction under this subdivision or section 609.749; or

(2) violates this subdivision in the presence of a minor under the age of 16, knowing or having reason to know that the minor is present.

(f) Paragraphs (b) and (d) do not apply to law enforcement officers or corrections investigators, or to those acting under their direction, while engaged in the performance of their lawful duties. Paragraphs (c) and (d) do not apply to conduct in: (1) a medical facility; or (2) a commercial establishment if the owner of the establishment has posted conspicuous signs warning that the premises are under surveillance by the owner or the owner's employees.

Sec. 16. Minnesota Statutes 1996, section 617.23, is amended to read:

617.23 [INDECENT EXPOSURE; PENALTIES.]

(a) Subdivision 1. [MISDEMEANOR.] A person is guilty of a misdemeanor who commits any of the following acts in any public place, or in any place where others are present, is guilty of a misdemeanor:

(1) willfully and lewdly exposes the person's body, or the private parts thereof;

(2) procures another to expose private parts; or

(3) engages in any open or gross lewdness or lascivious behavior, or any public indecency other than behavior specified in clause (1) or (2) or this clause subdivision.

(b) Subd. 2. [GROSS MISDEMEANOR.] A person who commits any of the following acts is guilty of a gross misdemeanor if:

(1) the person violates this section in the presence of a minor under the age of 16; or

(2) the person violates this section after having been previously convicted of violating this section, sections 609.342 to 609.3451, or a statute from another state in conformity with any of those sections.

(c) Subd. 3. [FELONY.] A person is guilty of a felony and may be sentenced to imprisonment for not more than five years or to payment of a fine of not more than $10,000, or both, if:

(1) the person violates paragraph (b) subdivision 2, clause (1), after having been previously convicted of or adjudicated delinquent for violating paragraph (b) subdivision 2, clause (1); section 609.3451, subdivision 1, clause (2); or a statute from another state in conformity with paragraph (b) subdivision 2, clause (1), or section 609.3451, subdivision 1, clause (2); or

(2) the person commits a violation of subdivision 1, clause (1), in the presence of another person while intentionally confining that person or otherwise intentionally restricting that person's freedom to move.


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Sec. 17. [COMMUNITY NOTIFICATION CONCERNING SEX OFFENDERS CONFINED IN FEDERAL PRISONS; PLAN AND REPORT REQUIRED.]

Subdivision 1. [DEFINITIONS.] As used in this section:

(1) "community notification" means the public disclosure of information about sex offenders by local law enforcement agencies under Minnesota Statutes, section 244.052;

(2) "federal prison" means a correctional facility administered by the federal Bureau of Prisons in which sex offenders are or may be confined; and

(3) "sex offender" means a person who has been convicted of a federal offense for which registration under Minnesota Statutes, section 243.166, is required.

Subd. 2. [DEVELOPMENT OF PLAN.] The commissioner of corrections shall collaborate with the federal Bureau of Prisons and the chief executive officer of any federal prison located in this state in developing a community notification plan concerning sex offenders confined in federal prisons in Minnesota who intend to reside in this state upon release. The plan shall address the following matters:

(1) the membership and operation of the end-of-confinement review committees that will operate in the federal prisons to conduct risk assessments on sex offenders who intend to reside in Minnesota upon release;

(2) the classification and use of data on sex offenders that are collected or maintained by the committees;

(3) the procedures governing the sex offender's participation in the committee's meetings;

(4) the process for a sex offender to seek review of the committee's risk assessment determination; and

(5) any other matters deemed important by the commissioner and the federal authorities.

Subd. 3. [REPORT TO LEGISLATURE.] On or before February 1, 1998, the commissioner of corrections shall file a report with the chairs of the house judiciary committee and the senate crime prevention committee. The report shall summarize the community notification plan agreed to by the commissioner and the federal Bureau of Prisons and shall specify the statutory changes needed to accomplish that plan.

Sec. 18. [EFFECTIVE DATE.]

Sections 1 to 4 are effective August 1, 1997, and apply to persons who are released from prison on or after that date, or who are under supervision as of that date, or who enter this state on or after that date. Sections 9 to 13, 15, and 16 are effective August 1, 1997, and apply to crimes committed on or after that date. Sections 5 to 8 are effective the day following final enactment and apply to offenders sentenced or released from confinement on that date.

ARTICLE 6

CHILD PROTECTION AND TEEN COURT PROVISIONS

Section 1. [260.127] [TEEN COURT PROGRAM.]

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

(b) "Minor offense" means:

(1) a juvenile petty offense;

(2) a petty misdemeanor; or


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(3) any misdemeanor, other than a misdemeanor-level violation of sections 518B.01, subdivision 14, 588.20, 609.224, 609.2242, 609.324, 609.563, 609.576, 609.66, 609.72, 609.746, 609.748, subdivision 6, or 617.23, a major traffic offense, or an adult traffic offense, as defined in section 260.193.

(c) "Teen" means an individual who has attained the age of ten years and is under 18 years of age.

(d) "Teen court" and "teen court program" mean an alternative procedure under which local law enforcement, county attorneys, schools, or probation agencies may divert from the juvenile court system a teen who allegedly has committed a minor offense, on condition that the teen voluntarily appears before and receives a disposition from a jury of the teen's peers and successfully completes the terms and conditions of the disposition. These programs also may be used by schools as alternatives to formal school disciplinary proceedings provided each program complies with the disciplinary policy in the school district in which it is established.

Subd. 2. [APPLICATION TO ESTABLISH TEEN COURT.] (a) Any group of two or more adult sponsors may apply to the office of strategic and long-range planning to establish a teen court. These sponsors must be affiliated with an agency, entity, or other organized program or group.

(b) An application to establish a teen court shall include:

(1) the names, addresses, and telephone numbers of two or more adult sponsors and a description of the entity, agency, or other organized program or group with which the adult sponsors are affiliated;

(2) the names, addresses, and telephone numbers of all teens who have signed letters of commitment to participate voluntarily as teen court members in the teen court program; and

(3) a certification from adult sponsors that adequate adult sponsorship exists and that there are a sufficient number of teen volunteers to make the functioning of the teen court feasible and meaningful; and

(4) except as provided in paragraph (c), a letter from the county attorney of the county in which the teen court is seeking to operate, authorizing the establishment of the teen court program consistent with section 388.24.

(c) Teen court programs that operate only as an alternative to school disciplinary proceedings do not need to provide the letter referred to in paragraph (b), clause (4).

Subd. 3. [REFERRAL TO TEEN COURT PROGRAM.] Once the teen court program has been established, it may receive referrals for eligible teens from local law enforcement, county attorneys, school officials, and probation agencies. The process of referral is to be established by the individual teen court programs, in coordination with other established teen court and pretrial diversion programs in the county or counties in which the teen court will operate. The referral process for teen court programs operating as alternatives to school disciplinary proceedings must be consistent with the disciplinary policy in the school district in which the program is established.

Subd. 4. [FEE.] The teen court program may require a teen to pay a nonrefundable fee to cover the costs of administering the program. This fee must be reduced or waived for a participant who does not have the ability to pay the fee.

Subd. 5. [TEEN COURT PROGRAM COMPONENTS.] (a) Prior to a teen's participation in the teen court program, a teen court sponsor or the referring source must:

(1) contact the victim, if any, of the offense, or make a good faith attempt to contact the victim, if any, and the victim must be advised that the victim may participate in the teen court proceedings; and

(2) at least seven days prior to the teen's participation in the program, provide to the county attorney of the teen's residence the teen's name, date of birth, and residential address and a description of the offense.

(b) Prior to a teen court's imposition of dispositions, it must establish a range of dispositional alternatives for offenses which is appropriate to the teen court's community. These dispositions may include the following:

(i) community service;


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(ii) mandatory participation in appropriate counseling, appropriate treatment, law-related educational classes, or other educational programs;

(iii) a requirement that the teen defendant participate as a juror in future proceedings before the teen court;

(iv) restitution, where appropriate; and

(v) a fine, not to exceed the amount permitted in section 260.195. The fine permitted in section 260.185 may only be imposed for misdemeanor-level offenses.

The teen court does not have the power to place a teen outside the home.

(c) Except as provided in paragraph (d), the teen court program may be used only where:

(i) the teen acknowledges responsibility for the offense;

(ii) the teen voluntarily agrees to participate in the teen court program;

(iii) the judge of the teen court is a judge or an attorney admitted to practice law in the state of Minnesota;

(iv) the teen's parent or legal guardian accompanies the teen in all teen court proceedings;

(v) the county attorney does not notify the teen court prior to the teen's participation that the offense will be handled in juvenile court or in a pretrial diversion program established under section 388.24; and

(vi) the teen court program has established a training component for teen and adult volunteers.

(d) When a teen court operates as an alternative to a school disciplinary policy, the teen's parent or legal guardian must be notified of the teen's involvement in the program, according to the school district's disciplinary policy. The teen's parent or legal guardian does not need to accompany the teen in teen court proceedings.

(e) The teen court shall notify the referring source as soon as possible upon discovery that the teen has failed to comply with any part of the disposition imposed under paragraph (b). Either juvenile court proceedings or formal school disciplinary proceedings, where applicable, or both, may be commenced against a teen who fails to comply with the disposition under paragraph (b).

Subd. 6. [EVALUATION AND REPORTS.] (a) The results of all proceedings in teen court must be reported to the office of strategic and long-range planning on a form provided by the office of strategic and long-range planning. The teen court must submit the report to the office of strategic and long-range planning no later than July 15 for all activity during the first six months of the calendar year and by January 15 for all activity during the last six months of the preceding calendar year. A copy of this report also must be provided to the county attorney of the county in which the teen court operates. Each report must include the following:

(i) the number of cases handled by the teen court, including a breakdown of the number of cases from each referring agency;

(ii) a list of the offenses for which the teen court imposed a disposition, including a breakdown showing the number of teen court participants committing each type of offense;

(iii) a list of the dispositions imposed by the teen court, including a breakdown showing the number of times each particular disposition was imposed; and

(iv) information on the cases that were referred back to the referring agency under subdivision 5, paragraph (e).


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(b) Each teen court shall report to the office of strategic and long-range planning by June 30 each year on its progress in achieving outcome measures and indicators. The report required by this paragraph must include an analysis of recidivism rates for teen court participants, based upon a method for measuring these rates as determined by the office of strategic and long-range planning.

(c) Five percent of the appropriation for the teen court program is allocated to the office of strategic and long-range planning to assist teen court programs in developing outcome measures and indicators. These outcome measures and indicators must be established before any teen court begins to impose dispositions and must allow for both evaluation of each teen court program and for statewide evaluation of the teen court program.

Subd. 7. [ADMINISTRATION.] Up to five percent of the appropriation for teen court programs may be retained by the office of strategic and long-range planning for administrative costs incurred in administering the program. The office of strategic and long-range planning has authority to administer funds to teen court programs that comply with this section. The office of strategic and long-range planning may receive and administer public and private funds for the purposes of this section.

Sec. 2. Minnesota Statutes 1996, section 256E.03, subdivision 2, is amended to read:

Subd. 2. (a) "Community social services" means services provided or arranged for by county boards to fulfill the responsibilities prescribed in section 256E.08, subdivision 1, to the following groups of persons:

(1) families with children under age 18, who are experiencing child dependency, neglect or abuse, and also pregnant adolescents, adolescent parents under the age of 18, and their children, and other adolescents;

(2) persons, including adolescents, who are under the guardianship of the commissioner of human services as dependent and neglected wards;

(3) adults who are in need of protection and vulnerable as defined in section 626.5572;

(4) persons age 60 and over who are experiencing difficulty living independently and are unable to provide for their own needs;

(5) emotionally disturbed children and adolescents, chronically and acutely mentally ill persons who are unable to provide for their own needs or to independently engage in ordinary community activities;

(6) persons with mental retardation as defined in section 252A.02, subdivision 2, or with related conditions as defined in section 252.27, subdivision 1a, who are unable to provide for their own needs or to independently engage in ordinary community activities;

(7) drug dependent and intoxicated persons, including adolescents, as defined in section 254A.02, subdivisions 5 and 7, and persons, including adolescents, at risk of harm to self or others due to the ingestion of alcohol or other drugs;

(8) parents whose income is at or below 70 percent of the state median income and who are in need of child care services in order to secure or retain employment or to obtain the training or education necessary to secure employment; and

(9) children and adolescents involved in or at risk of involvement with criminal activity; and

(10) other groups of persons who, in the judgment of the county board, are in need of social services.

(b) Except as provided in section 256E.08, subdivision 5, community social services do not include public assistance programs known as aid to families with dependent children, Minnesota supplemental aid, medical assistance, general assistance, general assistance medical care, or community health services authorized by sections 145A.09 to 145A.13.


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Sec. 3. [257.069] [INFORMATION FOR CHILD PLACEMENT.]

Subdivision 1. [AGENCY WITH PLACEMENT AUTHORITY.] An agency with legal responsibility for the placement of a child may request and shall receive all information pertaining to the child that it considers necessary to appropriately carry out its duties. That information must include educational, medical, psychological, psychiatric, and social or family history data retained in any form by any individual or entity. The agency may gather appropriate data regarding the child's parents in order to develop and implement a case plan required by section 257.071. Upon request of the court responsible for overseeing the provision of services to the child and family and for implementing orders that are in the best interest of the child, the responsible local social service agency or tribal social service agency shall provide appropriate written or oral reports from any individual or entity that has provided services to the child or family. The reports must include the nature of the services being provided the child or family; the reason for the services; the nature, extent, and quality of the child's or parent's participation in the services, where appropriate; and recommendations for continued services, where appropriate. The individual or entity shall report all observations and information upon which it bases its report as well as its conclusions. If necessary to facilitate the receipt of the reports, the court may issue appropriate orders.

Subd. 2. [ACCESS TO SPECIFIC DATA.] A social service agency responsible for the residential placement of a child under this section and the residential facility in which the child is placed shall have access to the following data on the child:

(1) medical data under section 13.42;

(2) corrections and detention data under section 13.85;

(3) juvenile court data under section 260.161; and

(4) health records under section 144.335.

Sec. 4. Minnesota Statutes 1996, section 257.071, is amended by adding a subdivision to read:

Subd. 1c. [NOTICE BEFORE VOLUNTARY PLACEMENT.] The local social service agency shall inform a parent considering voluntary placement of a child who is not developmentally disabled or emotionally handicapped of the following:

(1) the parent and the child each has a right to separate legal counsel before signing a voluntary placement agreement, but not to counsel appointed at public expense;

(2) the parent is not required to agree to the voluntary placement, and a parent who enters a voluntary placement agreement may at any time request that the agency return the child. If the parent so requests, the child must be returned within 24 hours of the receipt of the request;

(3) evidence gathered during the time the child is voluntarily placed may be used at a later time as the basis for a petition alleging that the child is in need of protection or services or as the basis for a petition seeking termination of parental rights;

(4) if the local social service agency files a petition alleging that the child is in need of protection or services or a petition seeking the termination of parental rights, the parent would have the right to appointment of separate legal counsel and the child would have a right to the appointment of counsel and a guardian ad litem as provided by law, and that counsel will be appointed at public expense if they are unable to afford counsel; and

(5) the timelines and procedures for review of voluntary placements under subdivision 3, and the effect the time spent in voluntary placement on the scheduling of a permanent placement determination hearing under section 260.191, subdivision 3b.

Sec. 5. Minnesota Statutes 1996, section 257.071, is amended by adding a subdivision to read:

Subd. 1d. [RELATIVE SEARCH; NATURE.] (a) Within six months after a child is initially placed in a residential facility, the local social service agency shall identify any relatives of the child and notify them of the possibility of a permanent out-of-home placement of the child, and that a decision not to be a permanent resource at the beginning of the


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case may affect the relative's right to have the child placed with that relative later. The relatives must be notified that they must keep the local social service agency informed of their current address in order to receive notice of any permanent placement hearing. A relative who fails to provide a current address to the local social service agency forfeits the right to notice of permanent placement.

(b) When the agency determines that it is necessary to prepare for the permanent placement determination hearing or in anticipation of filing a termination of parental rights petition, the agency shall send notice to the relatives, any adult with whom the child is currently residing, any adult with whom the child has resided for one year or longer in the past, and any adults who have maintained a relationship or exercised visitation with the child as identified in the agency case plan. The notice must state that a permanent home is sought for the child and that the individuals receiving the notice may indicate to the agency their interest in providing a permanent home. The notice must contain an advisory that if the relative chooses not to be a placement resource at the beginning of the case, this may affect the relative's rights to have the child placed with that relative permanently later on.

Sec. 6. Minnesota Statutes 1996, section 257.071, is amended by adding a subdivision to read:

Subd. 1e. [CHANGE IN PLACEMENT.] If a child is removed from a permanent placement disposition authorized under section 260.191, subdivision 3b, within one year after the placement was made:

(1) the child must be returned to the residential facility where the child was placed immediately preceding the permanent placement; or

(2) the court shall hold a hearing within ten days after the child is taken into custody to determine where the child is to be placed. A guardian ad litem must be appointed for the child for this hearing.

Sec. 7. Minnesota Statutes 1996, section 257.071, subdivision 3, is amended to read:

Subd. 3. [REVIEW OF VOLUNTARY PLACEMENTS.] Except as provided in subdivision 4, if the child has been placed in a residential facility pursuant to a voluntary release by the parent or parents, and is not returned home within six months 90 days after initial placement in the residential facility, the social service agency responsible for the placement shall:

(1) return the child to the home of the parent or parents; or

(2) file an appropriate a petition pursuant to section 260.131 or 260.231 to extend the placement for 90 days.

The case plan must be updated when a petition is filed and must include a specific plan for permanency. The parent, legal guardian, or legal custodian and child have a right to counsel at this hearing and the court shall appoint counsel at public expense if they are unable to afford counsel.

If the court approves the extension, at the end of the second 90-day period, the child must be returned to the parent's home, unless a petition is filed for a child in need of protection or services.

Sec. 8. Minnesota Statutes 1996, section 257.071, subdivision 4, is amended to read:

Subd. 4. [REVIEW OF DEVELOPMENTALLY DISABLED AND EMOTIONALLY HANDICAPPED CHILD PLACEMENTS.] If a developmentally disabled child, as that term is defined in United States Code, title 42, section 6001 (7), as amended through December 31, 1979, or a child diagnosed with an emotional handicap as defined in section 252.27, subdivision 1a, has been placed in a residential facility pursuant to a voluntary release by the child's parent or parents because of the child's handicapping conditions or need for long-term residential treatment or supervision, the social service agency responsible for the placement shall bring a petition for review of the child's foster care status, pursuant to section 260.131, subdivision 1a, rather than a petition as required by subdivision 3, clause (b) section 260.191, subdivision 3b, after the child has been in foster care for 18 six months or, in the case of a child with an emotional handicap, after the child has been in a residential facility for six months. Whenever a petition for review is brought pursuant to this subdivision, a guardian ad litem shall be appointed for the child.


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Sec. 9. Minnesota Statutes 1996, section 257.072, subdivision 1, is amended to read:

Subdivision 1. [RECRUITMENT OF FOSTER FAMILIES.] Each authorized child-placing agency shall make special efforts to recruit a foster family from among the child's relatives, except as authorized in section 260.181, subdivision 3. Each agency shall provide for diligent recruitment of potential foster families that reflect the ethnic and racial diversity of the children in the state for whom foster homes are needed. Special efforts include contacting and working with community organizations and religious organizations and may include contracting with these organizations, utilizing local media and other local resources, conducting outreach activities, and increasing the number of minority recruitment staff employed by the agency. The requirement of special efforts to locate relatives in this section is satisfied if on the earlier of the following occasions:

(1) the child is placed with a relative who is interested in providing a permanent placement for the child; or

(2) the responsible child-placing agency has made appropriate special efforts for six months following the child's placement in a residential facility and the court approves the agency's efforts pursuant to section 260.191, subdivision 3a. The agency may accept any gifts, grants, offers of services, and other contributions to use in making special recruitment efforts.

Sec. 10. Minnesota Statutes 1996, section 259.41, is amended to read:

259.41 [ADOPTION STUDY.]

An adoption study and written report must be completed before the child is placed in a prospective adoptive home under this chapter and the study must be completed and filed with the court at the time the adoption petition is filed. In a direct adoptive placement, the report must be filed with the court in support of a motion for temporary preadoptive custody under section 259.47, subdivision 3. The study and report shall be completed by a licensed child-placing agency and must be thorough and comprehensive. The study and report shall be paid for by the prospective adoptive parent, except as otherwise required under section 259.67 or 259.73.

A stepparent adoption is not subject to this section.

In the case of a licensed foster parent seeking to adopt a child who is in the foster parent's care, any portions of the foster care licensing process that duplicate requirements of the home study may be submitted in satisfaction of the relevant requirements of this section.

At a minimum, the study must include the following about the prospective adoptive parent:

(1) a check of criminal conviction data, data on substantiated maltreatment of a child under section 626.556, and domestic violence data of each person over the age of 13 living in the home. The prospective adoptive parents, the bureau of criminal apprehension, and other state, county, and local agencies, after written notice to the subject of the study, shall give the agency completing the adoption study substantiated criminal conviction data and reports about maltreatment of minors and vulnerable adults and domestic violence. The adoption study must also include a check of the juvenile court records of each person over the age of 13 living in the home. Notwithstanding provisions of section 260.161 to the contrary, the juvenile court shall release the requested information to the agency completing the adoption study. The study must include an evaluation of the effect of a conviction or finding of substantiated maltreatment on the ability to care for a child;

(2) medical and social history and current health;

(3) assessment of potential parenting skills;

(4) ability to provide adequate financial support for a child; and

(5) the level of knowledge and awareness of adoption issues including where appropriate matters relating to interracial, cross-cultural, and special needs adoptions.


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The adoption study must include at least one in-home visit with the prospective adoptive parent. The adoption study is the basis for completion of a written report. The report must be in a format specified by the commissioner and must contain recommendations regarding the suitability of the subject of the study to be an adoptive parent. An adoption study report is valid for 12 months following its date of completion.

A prospective adoptive parent seeking a study under this section must authorize access by the agency to any private data needed to complete the study, must disclose any names used previously other than the name used at the time of the study, and must provide a set of fingerprints, which shall be forwarded to the bureau of criminal apprehension to facilitate the criminal conviction background check required under clause (1).

Sec. 11. [259.58] [COMMUNICATION OR CONTACT AGREEMENTS.]

If an adoptee has resided with a birth relative before being adopted, adoptive parents and that birth relative may enter an agreement under this section regarding communication with or contact between a minor adoptee, adoptive parents, and the birth relative. For purposes of this section, "birth relative" means a parent, stepparent, grandparent, brother, sister, uncle, or aunt of a minor adoptee. This relationship may be by blood or marriage. For an Indian child, birth relative includes members of the extended family as defined by the law or custom of the Indian child's tribe or, in the absence of laws or custom, nieces, nephews, or first or second cousins, as provided in the Indian Child Welfare Act, United States Code, title 25, section 1903.

(a) An agreement regarding communication with or contact between minor adoptees, adoptive parents, and a birth relative is not legally enforceable unless the terms of the agreement are contained in a written court order entered in accordance with this section. An order must be sought at the same time a petition for adoption is filed. The court shall not enter a proposed order unless the terms of the order have been approved in writing by the prospective adoptive parents, a birth relative who desires to be a party to the agreement, and, if the child is in the custody or under the guardianship of an agency, a representative of the agency. An agreement under this section need not disclose the identity of the parties to be legally enforceable. The court shall not enter a proposed order unless the court finds that the communication or contact between the minor adoptee, the adoptive parents, and a birth relative as agreed upon and contained in the proposed order would be in the minor adoptee's best interests.

(b) Failure to comply with the terms of an agreed order regarding communication or contact that has been entered by the court under this section is not grounds for:

(1) setting aside an adoption decree; or

(2) revocation of a written consent to an adoption after that consent has become irrevocable.

(c) An agreed order entered under this section may be enforced or modified by filing a petition or motion with the family court that includes a certified copy of the order granting the communication, contact, or visitation, but only if the petition or motion is accompanied by an affidavit that the parties have mediated or attempted to mediate any dispute under the agreement or that the parties agree to a proposed modification. The prevailing party may be awarded reasonable attorney's fees and costs. The court shall not modify an agreed order under this section unless it finds that the modification is necessary to serve the best interests of the minor adoptee, and:

(1) the modification is agreed to by the adoptive parent and the birth relative; or

(2) exceptional circumstances have arisen since the agreed order was entered that justify modification of the order.

Sec. 12. Minnesota Statutes 1996, section 259.59, is amended by adding a subdivision to read:

Subd. 3. [COMMUNICATION OR CONTACT AGREEMENTS.] This section does not prohibit birth parents and adoptive parents from entering a communication or contact agreement under section 259.58.


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Sec. 13. Minnesota Statutes 1996, section 259.67, subdivision 2, is amended to read:

Subd. 2. [ADOPTION ASSISTANCE AGREEMENT.] The placing agency shall certify a child as eligible for adoption assistance according to rules promulgated by the commissioner. When Not later than 30 days after a parent or parents are found and approved for adoptive placement of a child certified as eligible for adoption assistance, and before the final decree of adoption is issued, a written agreement must be entered into by the commissioner, the adoptive parent or parents, and the placing agency. The written agreement must be in the form prescribed by the commissioner and must set forth the responsibilities of all parties, the anticipated duration of the adoption assistance payments, and the payment terms. The adoption assistance agreement shall be subject to the commissioner's approval, which must be granted or denied not later than 15 days after the agreement is entered.

The amount of adoption assistance is subject to the availability of state and federal funds and shall be determined through agreement with the adoptive parents. The agreement shall take into consideration the circumstances of the adopting parent or parents, the needs of the child being adopted and may provide ongoing monthly assistance, supplemental maintenance expenses related to the adopted person's special needs, nonmedical expenses periodically necessary for purchase of services, items, or equipment related to the special needs, and medical expenses. The placing agency or the adoptive parent or parents shall provide written documentation to support the need for adoption assistance payments. The commissioner may require periodic reevaluation of adoption assistance payments. The amount of ongoing monthly adoption assistance granted may in no case exceed that which would be allowable for the child under foster family care and is subject to the availability of state and federal funds.

Sec. 14. Minnesota Statutes 1996, section 260.012, is amended to read:

260.012 [DUTY TO ENSURE PLACEMENT PREVENTION AND FAMILY REUNIFICATION; REASONABLE EFFORTS.]

(a) If a child in need of protection or services is under the court's jurisdiction, the court shall ensure that reasonable efforts including culturally appropriate services by the social service agency are made to prevent placement or to eliminate the need for removal and to reunite the child with the child's family at the earliest possible time, consistent with the best interests, safety, and protection of the child. The court may, upon motion and hearing, order the cessation of reasonable efforts if the court finds that provision of services or further services for the purpose of rehabilitation and reunification is futile and therefore unreasonable under the circumstances. In the case of an Indian child, in proceedings under sections 260.172, 260.191, and 260.221 the juvenile court must make findings and conclusions consistent with the Indian Child Welfare Act of 1978, United States Code, title 25, section 1901 et seq., as to the provision of active efforts. If a child is under the court's delinquency jurisdiction, it shall be the duty of the court to ensure that reasonable efforts are made to reunite the child with the child's family at the earliest possible time, consistent with the best interests of the child and the safety of the public.

(b) "Reasonable efforts" means the exercise of due diligence by the responsible social service agency to use appropriate and available services to meet the needs of the child and the child's family in order to prevent removal of the child from the child's family; or upon removal, services to eliminate the need for removal and reunite the family. Services may include those listed under section 256F.07, subdivision 3, and other appropriate services available in the community. The social service agency has the burden of demonstrating that it has made reasonable efforts. or that provision of services or further services for the purpose of rehabilitation and reunification is futile and therefore unreasonable under the circumstances. Reunification of a surviving child with a parent is not required if the parent has been convicted of:

(1) a violation of, or an attempt or conspiracy to commit a violation of, any offense in sections 609.185 to 609.20; 609.222, subdivision 2; or 609.223 in regard to another child of the parent;

(2) a violation of an offense in section 609.222, subdivision 2; or 609.223, in regard to the surviving child; or

(3) a violation of, or an attempt or conspiracy to commit a violation of, United States Code, title 18, section 1111(a) or 1112(a), in regard to another child of the parent.


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(c) The juvenile court, in proceedings under sections 260.172, 260.191, and 260.221 shall make findings and conclusions as to the provision of reasonable efforts. When determining whether reasonable efforts have been made, the court shall consider whether services to the child and family were:

(1) relevant to the safety and protection of the child;

(2) adequate to meet the needs of the child and family;

(3) culturally appropriate;

(4) available and accessible;

(5) consistent and timely; and

(6) realistic under the circumstances.

In the alternative, the court may determine that provision of services or further services for the purpose of rehabilitation is futile and therefore unreasonable under the circumstances.

(d) This section does not prevent out-of-home placement for treatment of a child with a mental disability when the child's diagnostic assessment or individual treatment plan indicates that appropriate and necessary treatment cannot be effectively provided outside of a residential or inpatient treatment program.

Sec. 15. Minnesota Statutes 1996, section 260.015, subdivision 2a, is amended to read:

Subd. 2a. [CHILD IN NEED OF PROTECTION OR SERVICES.] "Child in need of protection or services" means a child who is in need of protection or services because the child:

(1) is abandoned or without parent, guardian, or custodian;

(2)(i) has been a victim of physical or sexual abuse, or (ii) resides with or has resided with a victim of domestic child abuse as defined in subdivision 24, (iii) resides with or would reside with a perpetrator of domestic child abuse or child abuse as defined in subdivision 28, or (iv) is a victim of emotional maltreatment as defined in subdivision 5a;

(3) is without necessary food, clothing, shelter, education, or other required care for the child's physical or mental health or morals because the child's parent, guardian, or custodian is unable or unwilling to provide that care;

(4) is without the special care made necessary by a physical, mental, or emotional condition because the child's parent, guardian, or custodian is unable or unwilling to provide that care;

(5) is medically neglected, which includes, but is not limited to, the withholding of medically indicated treatment from a disabled infant with a life-threatening condition. The term "withholding of medically indicated treatment" means the failure to respond to the infant's life-threatening conditions by providing treatment, including appropriate nutrition, hydration, and medication which, in the treating physician's or physicians' reasonable medical judgment, will be most likely to be effective in ameliorating or correcting all conditions, except that the term does not include the failure to provide treatment other than appropriate nutrition, hydration, or medication to an infant when, in the treating physician's or physicians' reasonable medical judgment:

(i) the infant is chronically and irreversibly comatose;

(ii) the provision of the treatment would merely prolong dying, not be effective in ameliorating or correcting all of the infant's life-threatening conditions, or otherwise be futile in terms of the survival of the infant; or

(iii) the provision of the treatment would be virtually futile in terms of the survival of the infant and the treatment itself under the circumstances would be inhumane;


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(6) is one whose parent, guardian, or other custodian for good cause desires to be relieved of the child's care and custody;

(7) has been placed for adoption or care in violation of law;

(8) is without proper parental care because of the emotional, mental, or physical disability, or state of immaturity of the child's parent, guardian, or other custodian;

(9) is one whose behavior, condition, or environment is such as to be injurious or dangerous to the child or others. An injurious or dangerous environment may include, but is not limited to, the exposure of a child to criminal activity in the child's home;

(10) has committed a delinquent act before becoming ten years old;

(11) is a runaway;

(12) is an habitual truant; or

(13) has been found incompetent to proceed or has been found not guilty by reason of mental illness or mental deficiency in connection with a delinquency proceeding, a certification under section 260.125, an extended jurisdiction juvenile prosecution, or a proceeding involving a juvenile petty offense; or

(14) is one whose custodial parent's parental rights to another child have been involuntarily terminated within the past five years.

Sec. 16. Minnesota Statutes 1996, section 260.015, subdivision 29, is amended to read:

Subd. 29. [EGREGIOUS HARM.] "Egregious harm" means the infliction of bodily harm to a child or neglect of a child which demonstrates a grossly inadequate ability to provide minimally adequate parental care. The egregious harm need not have occurred in the state or in the county where a termination of parental rights action is otherwise properly venued. Egregious harm includes, but is not limited to:

(1) conduct towards a child that constitutes a violation of sections 609.185 to 609.21, 609.222, subdivision 2, 609.223, or any other similar law of the United States or any other state;

(2) the infliction of "substantial bodily harm" to a child, as defined in section 609.02, subdivision 8;

(3) conduct towards a child that constitutes felony malicious punishment of a child under section 609.377;

(4) conduct towards a child that constitutes felony unreasonable restraint of a child under section 609.255, subdivision 3;

(5) conduct towards a child that constitutes felony neglect or endangerment of a child under section 609.378;

(6) conduct towards a child that constitutes assault under section 609.221, 609.222, or 609.223;

(7) conduct towards a child that constitutes solicitation, inducement, or promotion of prostitution under section 609.322; or

(8) conduct towards a child that constitutes receiving profit derived from prostitution under section 609.323; or

(9) conduct toward a child that constitutes a violation of United States Code, title 18, section 1111(a) or 1112(a).

Sec. 17. Minnesota Statutes 1996, section 260.131, subdivision 1, is amended to read:

Subdivision 1. [WHO MAY FILE; REQUIRED FORM.] (a) Any reputable person, including but not limited to any agent of the commissioner of human services, having knowledge of a child in this state or of a child who is a resident of this state, who appears to be delinquent, in need of protection or services, or neglected and in foster care, may petition the juvenile court in the manner provided in this section.


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(b) A petition for a child in need of protection filed by an individual who is not a county attorney or an agent of the commissioner of human services shall be filed on a form developed by the state court administrator and provided to court administrators. Copies of the form may be obtained from the court administrator in each county. The court administrator shall review the petition before it is filed to determine that it is completed. The court administrator may reject the petition if it does not indicate that the petitioner has contacted the local social service agency.

An individual may file a petition under this subdivision without seeking internal review of the local social service agency's decision. The court shall determine whether there is probable cause to believe that a need for protection or services exists before the matter is set for hearing. If the matter is set for hearing, the court administrator shall notify the local social service agency by sending notice to the county attorney.

The petition must contain:

(1) a statement of facts that would establish, if proven, that there is a need for protection or services for the child named in the petition;

(2) a statement that petitioner has reported the circumstances underlying the petition to the local social service agency, and protection or services were not provided to the child;

(3) a statement whether there are existing juvenile or family court custody orders or pending proceedings in juvenile or family court concerning the child; and

(4) a statement of the relationship of the petitioner to the child and any other parties.

The court may not allow a petition to proceed under this paragraph if it appears that the sole purpose of the petition is to modify custody between the parents.

Sec. 18. Minnesota Statutes 1996, section 260.131, subdivision 2, is amended to read:

Subd. 2. The petition shall be verified by the person having knowledge of the facts and may be on information and belief. Unless otherwise provided by this section or by rule or order of the court, the county attorney shall draft the petition upon the showing of reasonable grounds to support the petition.

Sec. 19. Minnesota Statutes 1996, section 260.155, subdivision 1a, is amended to read:

Subd. 1a. [RIGHT TO PARTICIPATE IN PROCEEDINGS.] A child who is the subject of a petition, and the parents, guardian, or lawful legal custodian of the child have the right to participate in all proceedings on a petition. Official tribal representatives have the right to participate in any proceeding that is subject to the Indian Child Welfare Act of 1978, United States Code, title 25, sections 1901 to 1963.

Any grandparent of the child has a right to participate in the proceedings to the same extent as a parent, if the child has lived with the grandparent within the two years preceding the filing of the petition. At the first hearing following the filing of a petition, the court shall ask whether the child has lived with a grandparent within the last two years, except that the court need not make this inquiry if the petition states that the child did not live with a grandparent during this time period. Failure to notify a grandparent of the proceedings is not a jurisdictional defect.

If, in a proceeding involving a child in need of protection or services, the local social service agency recommends transfer of permanent legal and physical custody to a relative, the relative has a right to participate as a party, and thereafter shall receive notice of any hearing in the proceedings. The relative has a right to counsel for proceedings on the permanent placement and the court shall appoint counsel at public expense if they are unable to afford counsel. After placement, the relative does not have a right to counsel appointed at public expense in any subsequent proceeding to modify the permanent placement.


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Sec. 20. Minnesota Statutes 1996, section 260.155, subdivision 2, is amended to read:

Subd. 2. [APPOINTMENT OF COUNSEL.] (a) The child, parent, guardian or custodian has the right to effective assistance of counsel in connection with a proceeding in juvenile court. This right does not apply to a child who is charged with a juvenile petty offense as defined in section 260.015, subdivision 21, unless the child is charged with a third or subsequent juvenile alcohol or controlled substance offense and may be subject to the alternative disposition described in section 260.195, subdivision 4.

(b) The court shall appoint counsel, or stand-by counsel if the child waives the right to counsel, for a child who is:

(1) charged by delinquency petition with a gross misdemeanor or felony offense; or

(2) the subject of a delinquency proceeding in which out-of-home placement has been proposed.

(c) If they desire counsel but are unable to employ it, the court shall appoint counsel to represent the child or the parents or guardian in any case in which it feels that such an appointment is desirable appropriate, except a juvenile petty offender who does not have the right to counsel under paragraph (a).

(d) Counsel for the child shall not also act as the child's guardian ad litem.

(e) In any proceeding where the subject of a petition for a child in need of protection or services is not represented by an attorney, the court shall determine the child's preferences regarding the proceedings, if the child is of suitable age to express a preference.

Sec. 21. Minnesota Statutes 1996, section 260.155, subdivision 3, is amended to read:

Subd. 3. [COUNTY ATTORNEY.] Except in adoption proceedings, the county attorney shall present the evidence upon request of the court. In representing the agency, the county attorney shall also have the responsibility for advancing the public interest in the welfare of the child.

Sec. 22. Minnesota Statutes 1996, section 260.155, subdivision 4, is amended to read:

Subd. 4. [GUARDIAN AD LITEM.] (a) The court shall appoint a guardian ad litem to protect the interests of the minor when it appears, at any stage of the proceedings, that the minor is without a parent or guardian, or that the minor's parent is a minor or incompetent, or that the parent or guardian is indifferent or hostile to the minor's interests, and in every proceeding alleging a child's need for protection or services under section 260.015, subdivision 2a, clauses (1) to (10). In any other case the court may appoint a guardian ad litem to protect the interests of the minor when the court feels that such an appointment is desirable. The court shall appoint the guardian ad litem on its own motion or in the manner provided for the appointment of a guardian ad litem in the district court. The court may appoint separate counsel for the guardian ad litem if necessary.

(b) A guardian ad litem shall carry out the following responsibilities:

(1) conduct an independent investigation to determine the facts relevant to the situation of the child and the family, which must include, unless specifically excluded by the court, reviewing relevant documents; meeting with and observing the child in the home setting and considering the child's wishes, as appropriate; and interviewing parents, caregivers, and others with knowledge relevant to the case;

(2) advocate for the child's best interests by participating in appropriate aspects of the case and advocating for appropriate community services when necessary;

(3) maintain the confidentiality of information related to a case, with the exception of sharing information as permitted by law to promote cooperative solutions that are in the best interests of the child;

(4) monitor the child's best interests throughout the judicial proceeding; and


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(5) present written reports on the child's best interests that include conclusions and recommendations and the facts upon which they are based.

(c) The court may waive the appointment of a guardian ad litem pursuant to clause (a), whenever counsel has been appointed pursuant to subdivision 2 or is retained otherwise, and the court is satisfied that the interests of the minor are protected.

(d) In appointing a guardian ad litem pursuant to clause (a), the court shall not appoint the party, or any agent or employee thereof, filing a petition pursuant to section 260.131.

(e) The following factors shall be considered when appointing a guardian ad litem in a case involving an Indian or minority child:

(1) whether a person is available who is the same racial or ethnic heritage as the child or, if that is not possible;

(2) whether a person is available who knows and appreciates the child's racial or ethnic heritage.

Sec. 23. Minnesota Statutes 1996, section 260.155, subdivision 8, is amended to read:

Subd. 8. [WAIVER.] (a) Waiver of any right which a child has under this chapter must be an express waiver voluntarily and intelligently made by the child after the child has been fully and effectively informed of the right being waived. If a child is under 12 years of age, the child's parent, guardian or custodian shall give any waiver or offer any objection contemplated by this chapter not represented by counsel, any waiver must be given or any objection must be offered by the child's guardian ad litem.

(b) Waiver of a child's right to be represented by counsel provided under the juvenile court rules must be an express waiver voluntarily and intelligently made by the child after the child has been fully and effectively informed of the right being waived. In determining whether a child has voluntarily and intelligently waived the right to counsel, the court shall look to the totality of the circumstances which includes but is not limited to the child's age, maturity, intelligence, education, experience, and ability to comprehend, and the presence and competence of the child's parents, guardian, or guardian ad litem. If the court accepts the child's waiver, it shall state on the record the findings and conclusions that form the basis for its decision to accept the waiver.

Sec. 24. Minnesota Statutes 1996, section 260.161, is amended by adding a subdivision to read:

Subd. 3a. [ATTORNEY ACCESS TO RECORDS.] An attorney representing a child, parent, or guardian ad litem in a proceeding under this chapter shall be given access to records, local social service agency files, and reports which form the basis of any recommendation made to the court. An attorney does not have access under this subdivision to the identity of a person who made a report under section 626.556. The court may issue protective orders to prohibit an attorney from sharing a specified record or portion of a record with a client other than a guardian ad litem.

Sec. 25. Minnesota Statutes 1996, section 260.165, subdivision 3, is amended to read:

Subd. 3. [NOTICE TO PARENT OR CUSTODIAN.] Whenever a peace officer takes a child into custody for shelter care or relative placement pursuant to subdivision 1; section 260.135, subdivision 5; or section 260.145, the officer shall notify the parent or custodian that under section 260.173, subdivision 2, the parent or custodian may request that the child be placed with a relative or a designated parent under chapter 257A instead of in a shelter care facility. The officer also shall give the parent or custodian of the child a list of names, addresses, and telephone numbers of social service agencies that offer child welfare services. If the parent or custodian was not present when the child was removed from the residence, the list shall be left with an adult on the premises or left in a conspicuous place on the premises if no adult is present. If the officer has reason to believe the parent or custodian is not able to read and understand English, the officer must provide a list that is written in the language of the parent or custodian. The list shall be prepared by the commissioner of human services. The commissioner shall prepare lists for each county and provide each county with copies of the list without charge. The list shall be reviewed annually by the commissioner and updated if it is no longer accurate. Neither the commissioner nor any peace officer or the officer's employer shall be liable to any person for mistakes or omissions in the list. The list does not constitute a promise that any agency listed will in fact assist the parent or custodian.


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Sec. 26. Minnesota Statutes 1996, section 260.191, subdivision 3a, is amended to read:

Subd. 3a. [COURT REVIEW OF OUT-OF-HOME PLACEMENTS.] (a) If the court places a child in a residential facility, as defined in section 257.071, subdivision 1, the court shall review the out-of-home placement at least every six months to determine whether continued out-of-home placement is necessary and appropriate or whether the child should be returned home. The court shall review agency efforts pursuant to section 257.072, subdivision 1, and order that the efforts continue if the agency has failed to perform the duties under that section. The court shall review the case plan and may modify the case plan as provided under subdivisions 1e and 2. If the court orders continued out-of-home placement, the court shall notify the parents of the provisions of subdivision 3b.

(b) When the court determines that a permanent placement hearing is necessary because there is a likelihood that the child will not return to a parent's care, the court may authorize the agency with custody of the child to send the notice provided in this paragraph to any adult with whom the child is currently residing, any adult with whom the child has resided for one year or longer in the past, any adult who has maintained a relationship or exercised visitation with the child as identified in the agency case plan for the child or demonstrated an interest in the child, and any relative who has provided a current address to the local social service agency. This notice must not be provided to a parent whose parental rights to the child have been terminated under section 260.221, subdivision 1. The notice must state that a permanent home is sought for the child and that individuals receiving the notice may indicate to the agency within 30 days their interest in providing a permanent home.

Sec. 27. Minnesota Statutes 1996, section 260.191, subdivision 3b, is amended to read:

Subd. 3b. [REVIEW OF COURT ORDERED PLACEMENTS; PERMANENT PLACEMENT DETERMINATION.] (a) If the court places a child in a residential facility, as defined in section 257.071, subdivision 1, The court shall conduct a hearing to determine the permanent status of the a child not later than 12 months after the child was is placed out of the home of the parent.

For purposes of this subdivision, the date of the child's placement out of the home of the parent is the earlier of the first court-ordered placement or the first court approved placement under section 257.071, subdivision 3, of a child who had been in voluntary placement.

For purposes of this subdivision, 12 months is calculated as follows:

(1) during the pendency of a petition alleging that a child is in need of protection or services, all time periods a child is placed out of the home of the parent are cumulated;

(2) if a child has been placed out of the home of the parent within the previous five years in connection with one or more prior petitions for a child in need of protection or services, the length of all prior time periods the child was placed out of the home within the previous five years and under the current petition, are cumulated. If a child under this clause has been out of the home for 12 months or more, the court, if it is in the best interests of the child, may extend the total time the child may continue out of the home under the current petition up to an additional six months before making a permanency determination.

(b) Not later than ten days prior to this hearing, the responsible social service agency shall file pleadings to establish the basis for the permanent placement determination. Notice of the hearing and copies of the pleadings must be provided pursuant to section 260.141. If a termination of parental rights petition is filed before the date required for the permanency planning determination, no hearing need be conducted under this section subdivision. The court shall determine whether the child is to be returned home or, if not, what permanent placement is consistent with the child's best interests. The "best interests of the child" means all relevant factors to be considered and evaluated.

(c) If the child is not returned to the home, the dispositions available for permanent placement determination are:

(1) permanent legal and physical custody to a relative pursuant to the standards and procedures applicable under chapter 257 or 518 in the best interests of the child. The social service agency may petition on behalf of the proposed custodian;


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(2) termination of parental rights and adoption; the social service agency shall file a petition for termination of parental rights under section 260.231 and all the requirements of sections 260.221 to 260.245 remain applicable. An adoption ordered under this subdivision may include an agreement for communication or contact under section 259.58; or

(3) long-term foster care; transfer of legal custody and adoption are preferred permanency options for a child who cannot return home. The court may order a child into long-term foster care only if it finds that neither an award of legal and physical custody to a relative, nor termination of parental rights nor adoption is in the child's best interests. Further, the court may only order long-term foster care for the child under this section if it finds the following:

(i) the child has reached age 12 and reasonable efforts by the responsible social service agency have failed to locate an adoptive family for the child; or

(ii) the child is a sibling of a child described in clause (i) and the siblings have a significant positive relationship and are ordered into the same long-term foster care home.; or

(4) foster care for a specified period of time may be ordered only if:

(i) the sole basis for an adjudication that a child is in need of protection or services is that the child is a runaway, is an habitual truant, or committed a delinquent act before age ten; and

(ii) the court finds that foster care for a specified period of time is in the best interests of the child.

(b) The court may extend the time period for determination of permanent placement to 18 months after the child was placed in a residential facility if:

(1) there is a substantial probability that the child will be returned home within the next six months;

(2) the agency has not made reasonable, or, in the case of an Indian child, active efforts, to correct the conditions that form the basis of the out-of-home placement; or

(3) extraordinary circumstances exist precluding a permanent placement determination, in which case the court shall make written findings documenting the extraordinary circumstances and order one subsequent review after six months to determine permanent placement. A court finding that extraordinary circumstances exist precluding a permanent placement determination must be supported by detailed factual findings regarding those circumstances.

(c) (d) In ordering a permanent placement of a child, the court must be governed by the best interests of the child, including a review of the relationship between the child and relatives and the child and other important persons with whom the child has resided or had significant contact.

(d) (e) Once a permanent placement determination has been made and permanent placement has been established, further reviews are only necessary if the placement is made under paragraph (c), clause (4), review is otherwise required by federal law, an adoption has not yet been finalized, or there is a disruption of the permanent or long-term placement. If required, reviews must take place no less frequently than every six months.

(e) (f) An order under this subdivision must include the following detailed findings:

(1) how the child's best interests are served by the order;

(2) the nature and extent of the responsible social service agency's reasonable efforts, or, in the case of an Indian child, active efforts, to reunify the child with the parent or parents;

(3) the parent's or parents' efforts and ability to use services to correct the conditions which led to the out-of-home placement;

(4) whether the conditions which led to the out-of-home placement have been corrected so that the child can return home; and


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(5) if the child cannot be returned home, whether there is a substantial probability of the child being able to return home in the next six months.

(f) (g) An order for permanent legal and physical custody of a child may be modified under sections 518.18 and 518.185. The social service agency is a party to the proceeding and must receive notice. An order for long-term foster care is reviewable upon motion and a showing by the parent of a substantial change in the parent's circumstances such that the parent could provide appropriate care for the child and that removal of the child from the child's permanent placement and the return to the parent's care would be in the best interest of the child.

Sec. 28. Minnesota Statutes 1996, section 260.191, subdivision 4, is amended to read:

Subd. 4. [CONTINUANCE OF CASE.] When If it is in the best interests of the child or the child's parents to do so and when either if the allegations contained in the petition have been admitted, or when a hearing has been held as provided in section 260.155 and the allegations contained in the petition have been duly proven, before the entry of a finding of need for protection or services or a finding that a child is neglected and in foster care has been entered, the court may continue the case for a period not to exceed 90 days on any one order. Such a continuance may be extended for one additional successive period not to exceed 90 days and only after the court has reviewed the case and entered its order for an additional continuance without a finding that the child is in need of protection or services or neglected and in foster care. During this continuance the court may enter any order otherwise permitted under the provisions of this section. Following the 90-day continuance:

(1) if both the parent and child have complied with the terms of the continuance, the case must be dismissed without an adjudication that the child is in need of protection or services or that the child is neglected and in foster care; or

(2) if either the parent or child has not complied with the terms of the continuance, the court shall adjudicate the child in need of protection or services or neglected and in foster care.

Sec. 29. Minnesota Statutes 1996, section 260.192, is amended to read:

260.192 [DISPOSITIONS; VOLUNTARY FOSTER CARE PLACEMENTS.]

Upon a petition for review of the foster care status of a child, the court may:

(a) In the case of a petition required to be filed under section 257.071, subdivision 3, find that the child's needs are being met, that the child's placement in foster care is in the best interests of the child, and that the child will be returned home in the next six months, in which case the court shall approve the voluntary arrangement and continue the matter for six months to assure the child returns to the parent's home.

(b) In the case of a petition required to be filed under section 257.071, subdivision 4, find that the child's needs are being met and that the child's placement in foster care is in the best interests of the child, in which case the court shall approve the voluntary arrangement. The court shall order the social service agency responsible for the placement to bring a petition under section 260.131, subdivision 1 or 1a, as appropriate, within two years 12 months.

(c) Find that the child's needs are not being met, in which case the court shall order the social service agency or the parents to take whatever action is necessary and feasible to meet the child's needs, including, when appropriate, the provision by the social service agency of services to the parents which would enable the child to live at home, and order a disposition under section 260.191.

(d) Find that the child has been abandoned by parents financially or emotionally, or that the developmentally disabled child does not require out-of-home care because of the handicapping condition, in which case the court shall order the social service agency to file an appropriate petition pursuant to sections 260.131, subdivision 1, or 260.231.

Nothing in this section shall be construed to prohibit bringing a petition pursuant to section 260.131, subdivision 1 or 2, sooner than required by court order pursuant to this section.


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Sec. 30. Minnesota Statutes 1996, section 260.221, subdivision 1, is amended to read:

Subdivision 1. [VOLUNTARY AND INVOLUNTARY.] The juvenile court may upon petition, terminate all rights of a parent to a child in the following cases:

(a) With the written consent of a parent who for good cause desires to terminate parental rights; or

(b) If it finds that one or more of the following conditions exist:

(1) that the parent has abandoned the child. Abandonment is presumed when:

(i) the parent has had no contact with the child on a regular basis and no demonstrated, consistent interest in the child's well-being for six months; and

(ii) the social service agency has made reasonable efforts to facilitate contact, unless the parent establishes that an extreme financial or physical hardship or treatment for mental disability or chemical dependency or other good cause prevented the parent from making contact with the child. This presumption does not apply to children whose custody has been determined under chapter 257 or 518. The court is not prohibited from finding abandonment in the absence of this presumption; or

(2) that the parent has substantially, continuously, or repeatedly refused or neglected to comply with the duties imposed upon that parent by the parent and child relationship, including but not limited to providing the child with necessary food, clothing, shelter, education, and other care and control necessary for the child's physical, mental, or emotional health and development, if the parent is physically and financially able, and reasonable efforts by the social service agency have failed to correct the conditions that formed the basis of the petition; or

(3) that a parent has been ordered to contribute to the support of the child or financially aid in the child's birth and has continuously failed to do so without good cause. This clause shall not be construed to state a grounds for termination of parental rights of a noncustodial parent if that parent has not been ordered to or cannot financially contribute to the support of the child or aid in the child's birth; or

(4) that a parent is palpably unfit to be a party to the parent and child relationship because of a consistent pattern of specific conduct before the child or of specific conditions directly relating to the parent and child relationship either of which are determined by the court to be of a duration or nature that renders the parent unable, for the reasonably foreseeable future, to care appropriately for the ongoing physical, mental, or emotional needs of the child. It is presumed that a parent is palpably unfit to be a party to the parent and child relationship upon a showing that:

(i) the child was adjudicated in need of protection or services due to circumstances described in section 260.015, subdivision 2a, clause (1), (2), (3), (5), or (8); and

(ii) within the three-year period immediately prior to that adjudication, the parent's parental rights to one or more other children were involuntarily terminated under clause (1), (2), (4), or (7), or under clause (5) if the child was initially determined to be in need of protection or services due to circumstances described in section 260.015, subdivision 2a, clause (1), (2), (3), (5), or (8); or

(5) that following upon a determination of neglect or dependency, or of a child's need for protection or services, reasonable efforts, under the direction of the court, have failed to correct the conditions leading to the determination. It is presumed that reasonable efforts under this clause have failed upon a showing that:

(i) a child has resided out of the parental home under court order for a cumulative period of more than one year within a five-year period following an adjudication of dependency, neglect, need for protection or services under section 260.015, subdivision 2a, clause (1), (2), (3), (6), (8), or (9), or neglected and in foster care, and an order for disposition under section 260.191, including adoption of the case plan required by section 257.071;

(ii) conditions leading to the determination will not be corrected within the reasonably foreseeable future. It is presumed that conditions leading to a child's out-of-home placement will not be corrected in the reasonably foreseeable future upon a showing that the parent or parents have not substantially complied with the court's orders and a reasonable case plan, and the conditions which led to the out-of-home placement have not been corrected; and


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(iii) reasonable efforts have been made by the social service agency to rehabilitate the parent and reunite the family.

This clause does not prohibit the termination of parental rights prior to one year after a child has been placed out of the home.

It is also presumed that reasonable efforts have failed under this clause upon a showing that:

(i) the parent has been diagnosed as chemically dependent by a professional certified to make the diagnosis;

(ii) the parent has been required by a case plan to participate in a chemical dependency treatment program;

(iii) the treatment programs offered to the parent were culturally, linguistically, and clinically appropriate;

(iv) the parent has either failed two or more times to successfully complete a treatment program or has refused at two or more separate meetings with a caseworker to participate in a treatment program; and

(v) the parent continues to abuse chemicals.

Provided, that this presumption applies only to parents required by a case plan to participate in a chemical dependency treatment program on or after July 1, 1990; or

(6) that a child has experienced egregious harm in the parent's care which is of a nature, duration, or chronicity that indicates a lack of regard for the child's well-being, such that a reasonable person would believe it contrary to the best interest of the child or of any child to be in the parent's care; or

(7) that in the case of a child born to a mother who was not married to the child's father when the child was conceived nor when the child was born the person is not entitled to notice of an adoption hearing under section 259.49 and either the person has not filed a notice of intent to retain parental rights under section 259.51 or that the notice has been successfully challenged; or

(8) that the child is neglected and in foster care.

In an action involving an American Indian child, sections 257.35 to 257.3579 and the Indian Child Welfare Act, United States Code, title 25, sections 1901 to 1923, control to the extent that the provisions of this section are inconsistent with those laws; or

(9) that the parent has been convicted of a crime listed in section 260.012, paragraph (b), clauses (1) to (3).

Sec. 31. Minnesota Statutes 1996, section 260.221, subdivision 5, is amended to read:

Subd. 5. [FINDINGS REGARDING REASONABLE EFFORTS.] In any proceeding under this section, the court shall make specific findings:

(1) regarding the nature and extent of efforts made by the social service agency to rehabilitate the parent and reunite the family.;

(2) that provision of services or further services for the purpose of rehabilitation and reunification is futile and therefore unreasonable under the circumstances; or

(3) that reunification is not required because the parent has been convicted of a crime listed in section 260.012, paragraph (b), clauses (1) to (3).

Sec. 32. Minnesota Statutes 1996, section 260.241, subdivision 1, is amended to read:

Subdivision 1. If, after a hearing, the court finds by clear and convincing evidence that one or more of the conditions set out in section 260.221 exist, it may terminate parental rights. Upon the termination of parental rights all rights, powers, privileges, immunities, duties, and obligations, including any rights to custody, control, visitation, or support existing


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between the child and parent shall be severed and terminated and the parent shall have no standing to appear at any further legal proceeding concerning the child. Provided, however, that a parent whose parental rights are terminated:

(1) shall remain liable for the unpaid balance of any support obligation owed under a court order upon the effective date of the order terminating parental rights; and

(2) may be a party to a communication or contact agreement under section 259.58.

Sec. 33. Minnesota Statutes 1996, section 260.241, subdivision 3, is amended to read:

Subd. 3. (a) A certified copy of the findings and the order terminating parental rights, and a summary of the court's information concerning the child shall be furnished by the court to the commissioner or the agency to which guardianship is transferred. The orders shall be on a document separate from the findings. The court shall furnish the individual to whom guardianship is transferred a copy of the order terminating parental rights.

(b) The court shall retain jurisdiction in a case where adoption is the intended permanent placement disposition. The guardian ad litem and counsel for the child shall continue on the case until an adoption decree is entered. A hearing must be held every 90 days following termination of parental rights for the court to review progress toward an adoptive placement.

(c) The court shall retain jurisdiction in a case where long-term foster care is the permanent disposition. The guardian ad litem and counsel for the child must be dismissed from the case on the effective date of the permanent placement order. However, the foster parent and the child, if of sufficient age, must be informed how they may contact a guardian ad litem if the matter is subsequently returned to court.

Sec. 34. [UNIFORM PRIVATE CHIPS PETITION.]

The state court administrator shall prepare and make available to court administrators in each county the private CHIPS petition form required by Minnesota Statutes, section 260.131, subdivision 1.

Sec. 35. [JUVENILE CODE RECODIFICATION.]

The revisor of statutes shall reorganize Minnesota Statutes, chapter 260, and other laws relating to child protection and child welfare services to create separate, comprehensible areas of law dealing with child protection and delinquency in the form of a bill for introduction at the 1998 regular legislative session.

Sec. 36. [ADOPTIVE AND FOSTER FAMILY RECRUITMENT.]

The commissioner of human services shall explore strategies and incentives to facilitate recruitment of foster and adoptive families. The commissioner shall report to the supreme court and the chairs of the committees on the judiciary and on health and human services in the house of representatives and the senate by February 1, 1998, on an action proposal and whether any legislation is needed to implement it.

Sec. 37. [COURT CONTINUITY AND CASE MANAGEMENT.]

The chief judges of the district courts, in consultation with the state court administrator, shall develop case management systems so that one judge hears all phases of a proceeding on a child in need of protection or services, including permanent placement or adoption, if any. The chief judges shall consider the "one judge, one family" model and the experience of the Ramsey county pilot project.

Sec. 38. [SOCIAL SERVICE CONTINUITY.]

Whenever feasible, managers and directors of local social service agencies should promote continuity and reduce delays in a case by assigning one person until it concludes in reunification or a permanent placement plan.


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Sec. 39. [REPEALER.]

Minnesota Statutes 1996, section 259.33, is repealed.

Sec. 40. [EFFECTIVE DATE; APPLICATION.]

Section 1, subdivisions 1 and 2, are effective the day following final enactment.

Section 1, subdivisions 3 to 8, are effective July 1, 1997.

Section 27, paragraph (a), clause (2), applies to children who were first placed outside the home on or after August 1, 1995.

ARTICLE 7

CRIME VICTIMS

Section 1. Minnesota Statutes 1996, section 169.042, subdivision 1, is amended to read:

Subdivision 1. [NOTIFICATION.] A The law enforcement agency that originally received the report of a vehicle theft shall make a reasonable and good-faith effort to notify the victim of a the reported vehicle theft within 48 hours after the agency recovers the vehicle recovering the vehicle or receiving notification that the vehicle has been recovered. The notice must specify when the recovering law enforcement agency expects to release the vehicle to the owner and how where the owner may pick up the vehicle. The law enforcement agency that recovers the vehicle must promptly inform the agency that received the theft report that the vehicle is recovered, where the vehicle is located, and when the vehicle can be released to the owner.

Sec. 2. [TITLE.]

Sections 3, 4, 8, 9, 10, 12, 13, and 15 shall be known as the "Alex and Brandon Frank Child Safety Act."

Sec. 3. Minnesota Statutes 1996, section 256F.09, subdivision 2, is amended to read:

Subd. 2. [FUNDING.] The commissioner may award grants to create or maintain family visitation centers.

In awarding grants to maintain a family visitation center, the commissioner may award a grant to a center that can demonstrate a 35 percent local match, provided the center is diligently exploring and pursuing all available funding options in an effort to become self-sustaining, and those efforts are reported to the commissioner.

In awarding grants to create a family visitation center, the commissioner shall give priority to:

(1) areas of the state where no other family visitation center or similar facility exists;

(2) applicants who demonstrate that private funding for the center is available and will continue; and

(3) facilities that are adapted for use to care for children, such as day care centers, religious institutions, community centers, schools, technical colleges, parenting resource centers, and child care referral services.

In awarding grants to create or maintain a family visitation center, the commissioner shall require the proposed center to meet standards developed by the commissioner to ensure the safety of the custodial parent and children.

Sec. 4. Minnesota Statutes 1996, section 256F.09, subdivision 3, is amended to read:

Subd. 3. [ADDITIONAL SERVICES.] Each family visitation center may provide parenting and child development classes, and offer support groups to participating custodial parents and hold regular classes designed to assist children who have experienced domestic violence and abuse. Each family visitation center must have available an individual knowledgeable about or experienced in the provision of services to battered women on its staff, its board of directors, or otherwise available to it for consultation.


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Sec. 5. Minnesota Statutes 1996, section 260.161, subdivision 2, is amended to read:

Subd. 2. [PUBLIC INSPECTION OF RECORDS.] Except as otherwise provided in this section, and except for legal records arising from proceedings or portions of proceedings that are public under section 260.155, subdivision 1, none of the records of the juvenile court and none of the records relating to an appeal from a nonpublic juvenile court proceeding, except the written appellate opinion, shall be open to public inspection or their contents disclosed except (a) by order of a court or, (b) as required by sections 245A.04, 611A.03, 611A.04, 611A.06, and 629.73, or (c) the name of a juvenile who is the subject of a delinquency petition shall be released to the victim of the alleged delinquent act upon the victim's request; unless it reasonably appears that release would interfere with the prosecution of the petition or it reasonably appears that the request is prompted by a desire on the part of the requester to engage in unlawful activities. The records of juvenile probation officers and county home schools are records of the court for the purposes of this subdivision. Court services data relating to delinquent acts that are contained in records of the juvenile court may be released as allowed under section 13.84, subdivision 5a. This subdivision applies to all proceedings under this chapter, including appeals from orders of the juvenile court, except that this subdivision does not apply to proceedings under section 260.255, 260.261, or 260.315 when the proceeding involves an adult defendant. The court shall maintain the confidentiality of adoption files and records in accordance with the provisions of laws relating to adoptions. In juvenile court proceedings any report or social history furnished to the court shall be open to inspection by the attorneys of record and the guardian ad litem a reasonable time before it is used in connection with any proceeding before the court.

When a judge of a juvenile court, or duly authorized agent of the court, determines under a proceeding under this chapter that a child has violated a state or local law, ordinance, or regulation pertaining to the operation of a motor vehicle on streets and highways, except parking violations, the judge or agent shall immediately report the violation to the commissioner of public safety. The report must be made on a form provided by the department of public safety and must contain the information required under section 169.95.

Sec. 6. Minnesota Statutes 1996, section 260.161, subdivision 3, is amended to read:

Subd. 3. [PEACE OFFICER RECORDS OF CHILDREN.] (a) Except for records relating to an offense where proceedings are public under section 260.155, subdivision 1, peace officers' records of children who are or may be delinquent or who may be engaged in criminal acts shall be kept separate from records of persons 18 years of age or older and are private data but shall be disseminated: (1) by order of the juvenile court, (2) as required by section 126.036, (3) as authorized under section 13.82, subdivision 2, (4) to the child or the child's parent or guardian unless disclosure of a record would interfere with an ongoing investigation, or (5) to the Minnesota crime victims reparations board as required by section 611A.56, subdivision 2, clause (f), for the purpose of processing claims for crime victims reparations, or (6) as otherwise provided in this subdivision. Except as provided in paragraph (c), no photographs of a child taken into custody may be taken without the consent of the juvenile court unless the child is alleged to have violated section 169.121 or 169.129. Peace officers' records containing data about children who are victims of crimes or witnesses to crimes must be administered consistent with section 13.82, subdivisions 2, 3, 4, and 10. Any person violating any of the provisions of this subdivision shall be guilty of a misdemeanor.

In the case of computerized records maintained about juveniles by peace officers, the requirement of this subdivision that records about juveniles must be kept separate from adult records does not mean that a law enforcement agency must keep its records concerning juveniles on a separate computer system. Law enforcement agencies may keep juvenile records on the same computer as adult records and may use a common index to access both juvenile and adult records so long as the agency has in place procedures that keep juvenile records in a separate place in computer storage and that comply with the special data retention and other requirements associated with protecting data on juveniles.

(b) Nothing in this subdivision prohibits the exchange of information by law enforcement agencies if the exchanged information is pertinent and necessary to the requesting agency in initiating, furthering, or completing a criminal investigation.

(c) A photograph may be taken of a child taken into custody pursuant to section 260.165, subdivision 1, clause (b), provided that the photograph must be destroyed when the child reaches the age of 19 years. The commissioner of corrections may photograph juveniles whose legal custody is transferred to the commissioner. Photographs of juveniles authorized by this paragraph may be used only for institution management purposes, case supervision by parole agents, and to assist law enforcement agencies to apprehend juvenile offenders. The commissioner shall maintain photographs of juveniles in the same manner as juvenile court records and names under this section.


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(d) Traffic investigation reports are open to inspection by a person who has sustained physical harm or economic loss as a result of the traffic accident. Identifying information on juveniles who are parties to traffic accidents may be disclosed as authorized under section 13.82, subdivision 4, and accident reports required under section 169.09 may be released under section 169.09, subdivision 13, unless the information would identify a juvenile who was taken into custody or who is suspected of committing an offense that would be a crime if committed by an adult, or would associate a juvenile with the offense, and the offense is not a minor traffic offense under section 260.193.

(e) A law enforcement agency shall notify the principal or chief administrative officer of a juvenile's school of an incident occurring within the agency's jurisdiction if:

(1) the agency has probable cause to believe that the juvenile has committed an offense that would be a crime if committed as an adult, that the victim of the offense is a student or staff member of the school, and that notice to the school is reasonably necessary for the protection of the victim; or

(2) the agency has probable cause to believe that the juvenile has committed an offense described in subdivision 1b, paragraph (a), clauses (1) to (3), that would be a crime if committed by an adult, regardless of whether the victim is a student or staff member of the school.

A law enforcement agency is not required to notify the school under this paragraph if the agency determines that notice would jeopardize an ongoing investigation. Notwithstanding section 138.17, data from a notice received from a law enforcement agency under this paragraph must be destroyed when the juvenile graduates from the school or at the end of the academic year when the juvenile reaches age 23, whichever date is earlier. For purposes of this paragraph, "school" means a public or private elementary, middle, or secondary school.

(f) In any county in which the county attorney operates or authorizes the operation of a juvenile prepetition or pretrial diversion program, a law enforcement agency or county attorney's office may provide the juvenile diversion program with data concerning a juvenile who is a participant in or is being considered for participation in the program.

(g) Upon request of a local social service agency, peace officer records of children who are or may be delinquent or who may be engaged in criminal acts may be disseminated to the agency to promote the best interests of the subject of the data.

(h) Upon written request, the prosecuting authority shall release investigative data collected by a law enforcement agency to the victim of a criminal act or alleged criminal act or to the victim's legal representative, except as otherwise provided by this paragraph. Data shall not be released if:

(1) the release to the individual subject of the data would be prohibited under section 13.391; or

(2) the prosecuting authority reasonably believes:

(i) that the release of that data will interfere with the investigation; or

(ii) that the request is prompted by a desire on the part of the requester to engage in unlawful activities.

Sec. 7. Minnesota Statutes 1996, section 480.30, subdivision 1, is amended to read:

Subdivision 1. [CHILD ABUSE; DOMESTIC ABUSE; HARASSMENT.] The supreme court's judicial education program must include ongoing training for district court judges on child and adolescent sexual abuse, domestic abuse, harassment, stalking, and related civil and criminal court issues. The program must include the following:

(1) information about the specific needs of victims. The program must include;

(2) education on the causes of sexual abuse and family violence and;

(3) education on culturally responsive approaches to serving victims; and


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(4) education on the impacts of domestic abuse and domestic abuse allegations on children and the importance of considering these impacts when making visitation and child custody decisions under chapter 518.

The program also must emphasize the need for the coordination of court and legal victim advocacy services and include education on sexual abuse and domestic abuse programs and policies within law enforcement agencies and prosecuting authorities as well as the court system.

Sec. 8. Minnesota Statutes 1996, section 518.10, is amended to read:

518.10 [REQUISITES OF PETITION.]

The petition for dissolution of marriage or legal separation shall state and allege:

(a) The name and address of the petitioner and any prior or other name used by the petitioner;

(b) The name and, if known, the address of the respondent and any prior or other name used by the respondent and known to the petitioner;

(c) The place and date of the marriage of the parties;

(d) In the case of a petition for dissolution, that either the petitioner or the respondent or both:

(1) Has resided in this state for not less than 180 days immediately preceding the commencement of the proceeding, or

(2) Has been a member of the armed services and has been stationed in this state for not less than 180 days immediately preceding the commencement of the proceeding, or

(3) Has been a domiciliary of this state for not less than 180 days immediately preceding the commencement of the proceeding;

(e) The name at the time of the petition and any prior or other name, age and date of birth of each living minor or dependent child of the parties born before the marriage or born or adopted during the marriage and a reference to, and the expected date of birth of, a child of the parties conceived during the marriage but not born;

(f) Whether or not a separate proceeding for dissolution, legal separation, or custody is pending in a court in this state or elsewhere;

(g) In the case of a petition for dissolution, that there has been an irretrievable breakdown of the marriage relationship;

(h) In the case of a petition for legal separation, that there is a need for a decree of legal separation; and

(i) Any temporary or permanent maintenance, child support, child custody, disposition of property, attorneys' fees, costs and disbursements applied for without setting forth the amounts; and

(j) Whether an order for protection under chapter 518B or a similar law of another state that governs the parties or a party and a minor child of the parties is in effect and, if so, the district court or similar jurisdiction in which it was entered.

The petition shall be verified by the petitioner or petitioners, and its allegations established by competent evidence.

Sec. 9. Minnesota Statutes 1996, section 518.175, is amended by adding a subdivision to read:

Subd. 1a. [DOMESTIC ABUSE; SUPERVISED VISITATION.] (a) If a custodial parent requests supervised visitation under subdivision 1 or 5 and an order for protection under chapter 518B or a similar law of another state is in effect against the noncustodial parent to protect the custodial parent or the child, the judge must consider the order for protection in making a decision regarding visitation.


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(b) The state court administrator shall develop standards to be met by persons who are responsible for supervising visitation. Either parent may challenge the appropriateness of an individual chosen by the court to supervise visitation.

Sec. 10. Minnesota Statutes 1996, section 518.175, subdivision 5, is amended to read:

Subd. 5. The court shall modify an order granting or denying visitation rights whenever modification would serve the best interests of the child. Except as provided in section 631.52, the court may not restrict visitation rights unless it finds that:

(1) the visitation is likely to endanger the child's physical or emotional health or impair the child's emotional development; or

(2) the noncustodial parent has chronically and unreasonably failed to comply with court-ordered visitation.

If the custodial parent makes specific allegations that visitation places the custodial parent or child in danger of harm, the court shall hold a hearing at the earliest possible time to determine the need to modify the order granting visitation rights. Consistent with subdivision 1a, the court may require a third party, including the local social services agency, to supervise the visitation or may restrict a parent's visitation rights if necessary to protect the custodial parent or child from harm.

Sec. 11. Minnesota Statutes 1996, section 518.179, subdivision 2, is amended to read:

Subd. 2. [APPLICABLE CRIMES.] This section applies to the following crimes or similar crimes under the laws of the United States, or any other state:

(1) murder in the first, second, or third degree under section 609.185, 609.19, or 609.195;

(2) manslaughter in the first degree under section 609.20;

(3) assault in the first, second, or third degree under section 609.221, 609.222, or 609.223;

(4) kidnapping under section 609.25;

(5) depriving another of custodial or parental rights under section 609.26;

(6) soliciting, inducing, or promoting prostitution involving a minor under section 609.322;

(7) receiving profit from prostitution involving a minor under section 609.323;

(8) criminal sexual conduct in the first degree under section 609.342;

(9) criminal sexual conduct in the second degree under section 609.343;

(10) criminal sexual conduct in the third degree under section 609.344, subdivision 1, paragraph (c), (f), or (g);

(11) solicitation of a child to engage in sexual conduct under section 609.352;

(12) incest under section 609.365;

(13) malicious punishment of a child under section 609.377; or

(14) neglect of a child under section 609.378;

(15) terroristic threats under section 609.713; or

(16) felony harassment or stalking under section 609.749, subdivision 4.


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Sec. 12. Minnesota Statutes 1996, section 518B.01, subdivision 4, is amended to read:

Subd. 4. [ORDER FOR PROTECTION.] There shall exist an action known as a petition for an order for protection in cases of domestic abuse.

(a) A petition for relief under this section may be made by any family or household member personally or by a family or household member, a guardian as defined in section 524.1-201, clause (20), or, if the court finds that it is in the best interests of the minor, by a reputable adult age 25 or older on behalf of minor family or household members. A minor age 16 or older may make a petition on the minor's own behalf against a spouse or former spouse, or a person with whom the minor has a child in common, if the court determines that the minor has sufficient maturity and judgment and that it is in the best interests of the minor.

(b) A petition for relief shall allege the existence of domestic abuse, and shall be accompanied by an affidavit made under oath stating the specific facts and circumstances from which relief is sought.

(c) A petition for relief must state whether the petitioner has ever had an order for protection in effect against the respondent.

(d) A petition for relief must state whether there is an existing order for protection in effect under this chapter governing both the parties and whether there is a pending lawsuit, complaint, petition or other action between the parties under chapter 257, 518, 518A, 518B, or 518C. The court administrator shall verify the terms of any existing order governing the parties. The court may not delay granting relief because of the existence of a pending action between the parties or the necessity of verifying the terms of an existing order. A subsequent order in a separate action under this chapter may modify only the provision of an existing order that grants relief authorized under subdivision 6, paragraph (a), clause (1). A petition for relief may be granted, regardless of whether there is a pending action between the parties.

(e) The court shall provide simplified forms and clerical assistance to help with the writing and filing of a petition under this section.

(f) The court shall advise a petitioner under paragraph (e) of the right to file a motion and affidavit and to sue in forma pauperis pursuant to section 563.01 and shall assist with the writing and filing of the motion and affidavit.

(g) The court shall advise a petitioner under paragraph (e) of the right to serve the respondent by published notice under subdivision 5, paragraph (b), if the respondent is avoiding personal service by concealment or otherwise, and shall assist with the writing and filing of the affidavit.

(h) The court shall advise the petitioner of the right to seek restitution under the petition for relief.

(i) The court shall advise the petitioner of the right to request a hearing under subdivision 7, paragraph (c). If the petitioner does not request a hearing, the court shall advise the petitioner that the respondent may request a hearing and that notice of the hearing date and time will be provided to the petitioner by mail at least five days before the hearing.

(j) The court shall advise the petitioner of the right to request supervised visitation, as provided in section 518.175, subdivision 1a.

Sec. 13. Minnesota Statutes 1996, section 518B.01, subdivision 8, is amended to read:

Subd. 8. [SERVICE; ALTERNATE SERVICE; PUBLICATION; NOTICE.] (a) The petition and any order issued under this section shall be served on the respondent personally.

(b) When service is made out of this state and in the United States, it may be proved by the affidavit of the person making the service. When service is made outside the United States, it may be proved by the affidavit of the person making the service, taken before and certified by any United States minister, charge d'affaires, commissioner, consul, or commercial agent, or other consular or diplomatic officer of the United States appointed to reside in the other country, including all deputies or other representatives of the officer authorized to perform their duties; or before an office authorized to administer an oath with the certificate of an officer of a court of record of the country in which the affidavit is taken as to the identity and authority of the officer taking the affidavit.


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(c) If personal service cannot be made, the court may order service of the petition and any order issued under this section by alternate means, or by publication, which publication must be made as in other actions. The application for alternate service must include the last known location of the respondent; the petitioner's most recent contacts with the respondent; the last known location of the respondent's employment; the names and locations of the respondent's parents, siblings, children, and other close relatives; the names and locations of other persons who are likely to know the respondent's whereabouts; and a description of efforts to locate those persons.

The court shall consider the length of time the respondent's location has been unknown, the likelihood that the respondent's location will become known, the nature of the relief sought, and the nature of efforts made to locate the respondent. The court shall order service by first class mail, forwarding address requested, to any addresses where there is a reasonable possibility that mail or information will be forwarded or communicated to the respondent.

The court may also order publication, within or without the state, but only if it might reasonably succeed in notifying the respondent of the proceeding. Service shall be deemed complete 14 days after mailing or 14 days after court-ordered publication.

(d) A petition and any order issued under this section must include a notice to the respondent that if an order for protection is issued to protect the petitioner or a child of the parties, upon request of the petitioner in any visitation proceeding, the court shall consider the order for protection in making a decision regarding visitation.

Sec. 14. Minnesota Statutes 1996, section 518B.01, subdivision 14, is amended to read:

Subd. 14. [VIOLATION OF AN ORDER FOR PROTECTION.] (a) Whenever an order for protection is granted pursuant to this section or a similar law of another state, and the respondent or person to be restrained knows of the order, violation of the order for protection is a misdemeanor. Upon conviction, the defendant must be sentenced to a minimum of three days imprisonment and must be ordered to participate in counseling or other appropriate programs selected by the court. If the court stays imposition or execution of the jail sentence and the defendant refuses or fails to comply with the court's treatment order, the court must impose and execute the stayed jail sentence. A person is guilty of a gross misdemeanor who violates this paragraph during the time period between a previous conviction under this paragraph; sections 609.221 to 609.224; 609.2242; 609.713, subdivision 1 or 3; 609.748, subdivision 6; 609.749; or a similar law of another state and the end of the five years following discharge from sentence for that conviction. Upon conviction, the defendant must be sentenced to a minimum of ten days imprisonment and must be ordered to participate in counseling or other appropriate programs selected by the court. Notwithstanding section 609.135, the court must impose and execute the minimum sentence provided in this paragraph for gross misdemeanor convictions.

(b) A peace officer shall arrest without a warrant and take into custody a person whom the peace officer has probable cause to believe has violated an order granted pursuant to this section or a similar law of another state restraining the person or excluding the person from the residence or the petitioner's place of employment, even if the violation of the order did not take place in the presence of the peace officer, if the existence of the order can be verified by the officer. The person shall be held in custody for at least 36 hours, excluding the day of arrest, Sundays, and holidays, unless the person is released earlier by a judge or judicial officer. A peace officer acting in good faith and exercising due care in making an arrest pursuant to this paragraph is immune from civil liability that might result from the officer's actions.

(c) A violation of an order for protection shall also constitute contempt of court and be subject to the penalties therefor.

(d) If the court finds that the respondent has violated an order for protection and that there is reason to believe that the respondent will commit a further violation of the provisions of the order restraining the respondent from committing acts of domestic abuse or excluding the respondent from the petitioner's residence, the court may require the respondent to acknowledge an obligation to comply with the order on the record. The court may require a bond sufficient to deter the respondent from committing further violations of the order for protection, considering the financial resources of the respondent, and not to exceed $10,000. If the respondent refuses to comply with an order to acknowledge the obligation or post a bond under this paragraph, the court shall commit the respondent to the county jail during the term of the order for protection or until the respondent complies with the order under this paragraph. The warrant must state the cause of commitment, with the sum and time for which any bond is required. If an order is issued under this paragraph, the court may order the costs of the contempt action, or any part of them, to be paid by the respondent. An order under this paragraph is appealable.


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(e) Upon the filing of an affidavit by the petitioner, any peace officer, or an interested party designated by the court, alleging that the respondent has violated any order for protection granted pursuant to this section or a similar law of another state, the court may issue an order to the respondent, requiring the respondent to appear and show cause within 14 days why the respondent should not be found in contempt of court and punished therefor. The hearing may be held by the court in any county in which the petitioner or respondent temporarily or permanently resides at the time of the alleged violation, or in the county in which the alleged violation occurred, if the petitioner and respondent do not reside in this state. The court also shall refer the violation of the order for protection to the appropriate prosecuting authority for possible prosecution under paragraph (a).

(f) If it is alleged that the respondent has violated an order for protection issued under subdivision 6 or a similar law of another state and the court finds that the order has expired between the time of the alleged violation and the court's hearing on the violation, the court may grant a new order for protection under subdivision 6 based solely on the respondent's alleged violation of the prior order, to be effective until the hearing on the alleged violation of the prior order. If the court finds that the respondent has violated the prior order, the relief granted in the new order for protection shall be extended for a fixed period, not to exceed one year, except when the court determines a longer fixed period is appropriate.

(g) The admittance into petitioner's dwelling of an abusing party excluded from the dwelling under an order for protection is not a violation by the petitioner of the order for protection.

A peace officer is not liable under section 609.43, clause (1), for a failure to perform a duty required by paragraph (b).

(h) When a person is convicted under paragraph (a) of violating an order for protection under this section and the court determines that the person used a firearm in any way during commission of the violation, the court may order that the person is prohibited from possessing any type of firearm for any period longer than three years or for the remainder of the person's life. A person who violates this paragraph is guilty of a gross misdemeanor. At the time of the conviction, the court shall inform the defendant whether and for how long the defendant is prohibited from possessing a firearm and that it is a gross misdemeanor to violate this paragraph. The failure of the court to provide this information to a defendant does not affect the applicability of the firearm possession prohibition or the gross misdemeanor penalty to that defendant.

(i) Except as otherwise provided in paragraph (h), when a person is convicted under paragraph (a) of violating an order for protection under this section, the court shall inform the defendant that the defendant is prohibited from possessing a pistol for three years from the date of conviction and that it is a gross misdemeanor offense to violate this prohibition. The failure of the court to provide this information to a defendant does not affect the applicability of the pistol possession prohibition or the gross misdemeanor penalty to that defendant.

(j) Except as otherwise provided in paragraph (h), a person is not entitled to possess a pistol if the person has been convicted under paragraph (a) after August 1, 1996, of violating an order for protection under this section, unless three years have elapsed from the date of conviction and, during that time, the person has not been convicted of any other violation of this section. Property rights may not be abated but access may be restricted by the courts. A person who possesses a pistol in violation of this paragraph is guilty of a gross misdemeanor.

(k) If the court determines that a person convicted under paragraph (a) of violating an order for protection under this section owns or possesses a firearm and used it in any way during the commission of the violation, it shall order that the firearm be summarily forfeited under section 609.5316, subdivision 3.

Sec. 15. Minnesota Statutes 1996, section 518B.01, subdivision 17, is amended to read:

Subd. 17. [EFFECT ON CUSTODY PROCEEDINGS.] In a subsequent custody proceeding the court may must consider, but is not bound by, a finding in a proceeding under this chapter or under a similar law of another state that domestic abuse has occurred between the parties.

Sec. 16. Minnesota Statutes 1996, section 609.10, is amended to read:

609.10 [SENTENCES AVAILABLE.]

Subdivision 1. [SENTENCES AVAILABLE.] Upon conviction of a felony and compliance with the other provisions of this chapter the court, if it imposes sentence, may sentence the defendant to the extent authorized by law as follows:

(1) to life imprisonment; or


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(2) to imprisonment for a fixed term of years set by the court; or

(3) to both imprisonment for a fixed term of years and payment of a fine; or

(4) to payment of a fine without imprisonment or to imprisonment for a fixed term of years if the fine is not paid; or

(5) to payment of court-ordered restitution in addition to either imprisonment or payment of a fine, or both; or

(6) to payment of a local correctional fee as authorized under section 609.102 in addition to any other sentence imposed by the court.

Subd. 2. [RESTITUTION.] (a) As used in this section, "restitution" includes:

(i) (1) payment of compensation to the victim or the victim's family; and

(ii) (2) if the victim is deceased or already has been fully compensated, payment of money to a victim assistance program or other program directed by the court.

In controlled substance crime cases, "restitution" also includes payment of compensation to a government entity that incurs loss as a direct result of the controlled substance crime.

Restitution includes payment of compensation to a government entity that incurs loss as a direct result of crime.

(b) When the defendant does not pay the entire amount of court-ordered restitution and the fine at the same time, all restitution ordered by the court shall be paid before the fine is paid.

Sec. 17. Minnesota Statutes 1996, section 609.125, is amended to read:

609.125 [SENTENCE FOR MISDEMEANOR OR GROSS MISDEMEANOR.]

Subdivision 1. [SENTENCES AVAILABLE.] Upon conviction of a misdemeanor or gross misdemeanor the court, if sentence is imposed, may, to the extent authorized by law, sentence the defendant:

(1) to imprisonment for a definite term; or

(2) to payment of a fine, or to imprisonment for a specified term if the fine is not paid; or

(3) to both imprisonment for a definite term and payment of a fine; or

(4) to payment of court-ordered restitution in addition to either imprisonment or payment of a fine, or both; or

(5) to payment of a local correctional fee as authorized under section 609.102 in addition to any other sentence imposed by the court.

Subd. 2. [RESTITUTION.] (a) As used in this section, "restitution" includes:

(i) (1) payment of compensation to the victim or the victim's family; and

(ii) (2) if the victim is deceased or already has been fully compensated, payment of money to a victim assistance program or other program directed by the court.

In controlled substance crime cases, "restitution" also includes payment of compensation to a government entity that incurs loss as a direct result of the controlled substance crime.

Restitution includes payment of compensation to a government entity that incurs loss as a direct result of crime.


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(b) When the defendant does not pay the entire amount of court-ordered restitution and the fine at the same time, all restitution ordered by the court shall be paid before the fine is paid.

Sec. 18. Minnesota Statutes 1996, section 609.2244, is amended to read:

609.2244 [PRESENTENCE DOMESTIC ABUSE ASSESSMENTS INVESTIGATIONS.]

Subdivision 1. [DOMESTIC ABUSE ASSESSMENT INVESTIGATION.] A presentence domestic abuse assessment investigation must be conducted and an assessment a report submitted to the court by the county corrections agency responsible for administering the assessment conducting the investigation when:

(1) a defendant is convicted of an offense described in section 518B.01, subdivision 2; or

(2) a defendant is arrested for committing an offense described in section 518B.01, subdivision 2, but is convicted of another offense arising out of the same circumstances surrounding the arrest.

Subd. 2. [REPORT.] (a) The assessment report must contain an evaluation of the convicted defendant department of corrections shall establish minimum standards for the report, including the circumstances of the offense, impact on the victim, the defendant's prior record, characteristics and history of alcohol and chemical use problems, and amenability to domestic abuse counseling programs. The report is classified as private data on individuals as defined in section 13.02, subdivision 12. Victim impact statements are confidential.

(b) The assessment report must include:

(1) a recommendation on any limitations on contact with the victim and other measures to ensure the victim's safety;

(2) a recommendation for the defendant to enter and successfully complete domestic abuse counseling programming and any aftercare found necessary by the assessment investigation;

(3) a recommendation for chemical dependency evaluation and treatment as determined by the evaluation whenever alcohol or drugs were found to be a contributing factor to the offense;

(4) recommendations for other appropriate remedial action or care, which may consist of educational programs, one-on-one counseling, a program or type of treatment that addresses mental health concerns, or a specific explanation why no level of care or action is recommended; and

(5) consequences for failure to abide by conditions set up by the court.

Subd. 3. [ASSESSOR CORRECTIONS AGENTS STANDARDS; RULES; ASSESSMENT INVESTIGATION TIME LIMITS.] A domestic abuse assessment investigation required by this section must be conducted by an assessor approved by the court, the local corrections department, or the commissioner of corrections. The assessor corrections agent shall have access to any police reports or other law enforcement data relating to the current offense or previous offenses that are necessary to complete the evaluation. An assessor providing A corrections agent conducting an assessment investigation under this section may not have any direct or shared financial interest or referral relationship resulting in shared financial gain with a treatment provider. An appointment for the defendant to undergo the assessment shall investigation must be made by the court, a court services probation officer, or court administrator as soon as possible but in no case more than one week after the defendant's court appearance. The assessment must be completed no later than three weeks after the defendant's court date.

Subd. 4. [DOMESTIC ABUSE ASSESSMENT INVESTIGATION FEE.] When the court sentences a person convicted of an offense described in section 518B.01, subdivision 2, the court shall impose a domestic abuse assessment investigation fee of at least $50 but not more than $125. This fee must be imposed whether the sentence is executed, stayed, or suspended. The court may not waive payment or authorize payment of the fee in installments unless it makes written findings on the record that the convicted person is indigent or that the fee would create undue hardship for the convicted person or that person's immediate family. The person convicted of the offense and ordered to pay the fee shall pay the fee to the county corrections department or other designated agencies conducting the assessment investigation.


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Sec. 19. Minnesota Statutes 1996, section 611A.01, is amended to read:

611A.01 [DEFINITIONS.]

For the purposes of sections 611A.01 to 611A.06:

(a) "Crime" means conduct that is prohibited by local ordinance and results in bodily harm to an individual; or conduct that is included within the definition of "crime" in section 609.02, subdivision 1, or would be included within that definition but for the fact that (i) the person engaging in the conduct lacked capacity to commit the crime under the laws of this state, or (ii) the act was alleged or found to have been committed by a juvenile;

(b) "Victim" means a natural person who incurs loss or harm as a result of a crime, including a good faith effort to prevent a crime, and for purposes of sections 611A.04 and 611A.045, also includes (i) a corporation that incurs loss or harm as a result of a crime, and (ii) a government entity that incurs loss or harm as a result of a crime, and (iii) any other entity authorized to receive restitution under section 609.10 or 609.125. If the victim is a natural person and is deceased, "victim" means the deceased's surviving spouse or next of kin; and

(c) "Juvenile" has the same meaning as given to the term "child" in section 260.015, subdivision 2.

Sec. 20. Minnesota Statutes 1996, section 611A.035, is amended to read:

611A.035 [CONFIDENTIALITY OF VICTIM'S ADDRESS.]

Subdivision 1. [DISCRETION OF PROSECUTOR NOT TO DISCLOSE.] A prosecutor may elect not to disclose a victim's or witness's home or employment address or telephone number if the prosecutor certifies to the trial court that:

(1) the defendant or respondent has been charged with or alleged to have committed a crime;

(2) the nondisclosure is needed to address the victim's or witness's concerns about safety or security;

(3) the victim's or witness's home or employment address or telephone number is not relevant to the prosecution's case; and

(4) the prosecutor or the prosecutor's agent is willing to establish telephone contact between defense counsel or defense counsel's agent and the victim or witness.

This subdivision shall not be construed to compel a victim or witness to give any statement to defense counsel or defense counsel's agent.

Subd. 2. [WITNESS TESTIMONY IN COURT.] No victim or witness providing testimony in court proceedings may be compelled to state a home or employment address on the record in open court unless the court finds that the testimony would be relevant evidence.

Sec. 21. Minnesota Statutes 1996, section 611A.038, is amended to read:

611A.038 [RIGHT TO SUBMIT STATEMENT AT SENTENCING.]

(a) A victim has the right to submit an impact statement to the court at the time of sentencing or disposition hearing. The impact statement may be presented to the court orally or in writing, at the victim's option. If the victim requests, the prosecutor must orally present the statement to the court.

Statements may include the following, subject to reasonable limitations as to time and length:

(1) a summary of the harm or trauma suffered by the victim as a result of the crime;


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(2) a summary of the economic loss or damage suffered by the victim as a result of the crime; and

(3) a victim's reaction to the proposed sentence or disposition.

(b) A representative of the community affected by the crime may submit an impact statement in the same manner that a victim may as provided in paragraph (a). This impact statement shall describe the adverse social or economic effects the offense has had on persons residing and businesses operating in the community where the offense occurred.

(c) If the court permits the defendant or anyone speaking on the defendant's behalf to present a statement to the court, the court shall limit the statement to issues relevant to sentencing.

Nothing in this section shall be construed to extend the defendant's right to address the court under section 631.20.

Sec. 22. Minnesota Statutes 1996, section 611A.039, subdivision 1, is amended to read:

Subdivision 1. [NOTICE REQUIRED.] Except as otherwise provided in subdivision 2, within 15 working days after a conviction, acquittal, or dismissal in a criminal case in which there is an identifiable crime victim, the prosecutor shall make reasonable good faith efforts to provide to each affected crime victim oral or written notice of the final disposition of the case. When the court is considering modifying the sentence for a felony or a crime of violence or an attempted crime of violence, the court shall make a reasonable and good faith effort to notify the victim of the crime. If the victim is incapacitated or deceased, notice must be given to the victim's family. If the victim is a minor, notice must be given to the victim's parent or guardian. The notice must include:

(1) the date and approximate time of the review;

(2) the location where the review will occur;

(3) the name and telephone number of a person to contact for additional information; and

(4) a statement that the victim and victim's family may provide input to the court concerning the sentence modification.

As used in this section, "crime of violence" has the meaning given in section 624.712, subdivision 5, and also includes gross misdemeanor violations of section 609.224, and nonfelony violations of sections 518B.01, 609.2231, 609.3451, 609.748, and 609.749.

Sec. 23. [611A.0395] [RIGHT TO INFORMATION REGARDING DEFENDANT'S APPEAL.]

Subdivision 1. [PROSECUTING ATTORNEY TO NOTIFY VICTIMS.] (a) The prosecuting attorney shall make a reasonable and good faith effort to provide to each affected victim oral or written notice of a pending appeal. This notice must be provided within 30 days of filing of the respondent's brief. The notice must contain a brief explanation of the contested issues or a copy of the brief, an explanation of the applicable process, information about scheduled oral arguments or hearings, a statement that the victim and the victim's family may attend the argument or hearing, and the name and telephone number of a person that may be contacted for additional information.

(b) In a criminal case in which there is an identifiable crime victim, within 15 working days of a final decision on an appeal, the prosecuting attorney shall make a reasonable and good faith effort to provide to each affected victim oral or written notice of the decision. This notice must include a brief explanation of what effect, if any, the decision has upon the judgment of the trial court and the name and telephone number of a person that may be contacted for additional information.

Subd. 2. [EXCEPTION.] The notices described in subdivision 1 do not have to be given to victims who have previously indicated a desire not to be notified.

Sec. 24. Minnesota Statutes 1996, section 611A.04, is amended by adding a subdivision to read:

Subd. 4. [PAYMENT OF RESTITUTION.] When the court orders both the payment of restitution and the payment of a fine and the defendant does not pay the entire amount of court-ordered restitution and the fine at the same time, all restitution ordered by the court shall be paid before the fine is paid.


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Sec. 25. Minnesota Statutes 1996, section 611A.361, is amended by adding a subdivision to read:

Subd. 5. [EXPIRATION.] The council expires on June 30, 1999.

Sec. 26. Minnesota Statutes 1996, section 611A.52, subdivision 6, is amended to read:

Subd. 6. [CRIME.] (a) "Crime" means conduct that:

(1) occurs or is attempted anywhere within the geographical boundaries of this state, including Indian reservations and other trust lands;

(2) poses a substantial threat of personal injury or death; and

(3) is included within the definition of "crime" in section 609.02, subdivision 1, or would be included within that definition but for the fact that (i) the person engaging in the conduct lacked capacity to commit the crime under the laws of this state; or (ii) the act was alleged or found to have been committed by a juvenile.

(b) A crime occurs whether or not any person is prosecuted or convicted but the conviction of a person whose acts give rise to the claim is conclusive evidence that a crime was committed unless an application for rehearing, appeal, or petition for certiorari is pending or a new trial or rehearing has been ordered.

(c) "Crime" does not include an act involving the operation of a motor vehicle, aircraft, or watercraft that results in injury or death, except that a crime includes any of the following:

(1) injury or death intentionally inflicted through the use of a motor vehicle, aircraft, or watercraft;

(2) injury or death caused by a driver in violation of section 169.09, subdivision 1; 169.121; or 609.21; and

(3) injury or death caused by a driver of a motor vehicle in the immediate act of fleeing the scene of a crime in which the driver knowingly and willingly participated.

(d) Notwithstanding paragraph (a), "crime" includes an act of international terrorism as defined in United States Code, title 18, section 2331, committed outside of the United States against a resident of this state.

Sec. 27. Minnesota Statutes 1996, section 611A.52, subdivision 8, is amended to read:

Subd. 8. [ECONOMIC LOSS.] "Economic loss" means actual economic detriment incurred as a direct result of injury or death.

(a) In the case of injury the term is limited to:

(1) reasonable expenses incurred for necessary medical, chiropractic, hospital, rehabilitative, and dental products, services, or accommodations, including ambulance services, drugs, appliances, and prosthetic devices;

(2) reasonable expenses associated with recreational therapy where a claimant has suffered amputation of a limb;

(3) reasonable expenses incurred for psychological or psychiatric products, services, or accommodations, not to exceed an amount to be set by the board, where the nature of the injury or the circumstances of the crime are such that the treatment is necessary to the rehabilitation of the victim;

(4) loss of income that the victim would have earned had the victim not been injured;

(5) reasonable expenses incurred for substitute child care or household services to replace those the victim or claimant would have performed had the victim or the claimant's child not been injured. As used in this clause, "child care services" means services provided by facilities licensed under and in compliance with either Minnesota Rules, parts 9502.0315 to


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9502.0445, or 9545.0510 to 9545.0670, or exempted from licensing requirements pursuant to section 245A.03. Licensed facilities must be paid at a rate not to exceed their standard rate of payment. Facilities exempted from licensing requirements must be paid at a rate not to exceed $3 an hour per child for daytime child care or $4 an hour per child for evening child care; and

(6) reasonable expenses actually incurred to return a child who was a victim of a crime under section 609.25 or 609.26 to the child's parents or lawful custodian. These expenses are limited to transportation costs, meals, and lodging from the time the child was located until the child was returned home.

(b) In the case of death the term is limited to:

(1) reasonable expenses actually incurred for funeral, burial, or cremation, not to exceed an amount to be determined by the board on the first day of each fiscal year;

(2) reasonable expenses for medical, chiropractic, hospital, rehabilitative, psychological and psychiatric services, products or accommodations which were incurred prior to the victim's death and for which the victim's survivors or estate are liable;

(3) loss of support, including contributions of money, products or goods, but excluding services which the victim would have supplied to dependents if the victim had lived; and

(4) reasonable expenses incurred for substitute child care and household services to replace those which the victim or claimant would have performed for the benefit of dependents if the victim or the claimant's child had lived.

Claims for loss of support for minor children made under clause (3) must be paid for three years or until the child reaches 18 years old, whichever is the shorter period. After three years, if the child is younger than 18 years old a claim for loss of support may be resubmitted to the board, and the board staff shall evaluate the claim giving consideration to the child's financial need and to the availability of funds to the board. Claims for loss of support for a spouse made under clause (3) shall also be reviewed at least once every three years. The board staff shall evaluate the claim giving consideration to the spouse's financial need and to the availability of funds to the board.

Claims for substitute child care services made under clause (4) must be limited to the actual care that the deceased victim would have provided to enable surviving family members to pursue economic, educational, and other activities other than recreational activities.

Sec. 28. Minnesota Statutes 1996, section 611A.53, subdivision 1b, is amended to read:

Subd. 1b. [MINNESOTA RESIDENTS INJURED ELSEWHERE.] (a) A Minnesota resident who is the victim of a crime committed outside the geographical boundaries of this state but who otherwise meets the requirements of this section shall have the same rights under this chapter as if the crime had occurred within this state upon a showing that the state, territory, or United States possession in which the crime occurred does not have a crime victim reparations law covering the resident's injury or death.

(b) Notwithstanding paragraph (a), a Minnesota resident who is the victim of a crime involving international terrorism who otherwise meets the requirements of this section, has the same rights under this chapter as if the crime had occurred within this state regardless of where the crime occurred or whether the jurisdiction has a crime victims reparations law.

Sec. 29. Minnesota Statutes 1996, section 611A.675, is amended to read:

611A.675 [FUND FOR EMERGENCY NEEDS OF CRIME VICTIMS.]

Subdivision 1. [GRANTS AUTHORIZED.] The crime victims reparations board victim and witness advisory council shall make grants to local law enforcement agencies prosecutors and victim assistance programs for the purpose of providing emergency assistance to victims. As used in this section, "emergency assistance" includes but is not limited to:

(1) replacement of necessary property that was lost, damaged, or stolen as a result of the crime;


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(2) purchase and installation of necessary home security devices; and

(3) transportation to locations related to the victim's needs as a victim, such as medical facilities and facilities of the criminal justice system;

(4) cleanup of the crime scene; and

(5) reimbursement for reasonable travel and living expenses the victim incurred to attend court proceedings that were held at a location other than the place where the crime occurred due to a change of venue.

Subd. 2. [APPLICATION FOR GRANTS.] A city or county sheriff or the chief administrative officer of a municipal police department attorney's office or victim assistance program may apply to the board council for a grant for any of the purposes described in subdivision 1 or for any other emergency assistance purpose approved by the board council. The application must be on forms and pursuant to procedures developed by the board council. The application must describe the type or types of intended emergency assistance, estimate the amount of money required, and include any other information deemed necessary by the board council.

Subd. 3. [REPORTING BY LOCAL AGENCIES REQUIRED.] A city or county sheriff or chief administrative officer of a municipal police department who attorney's office or victim assistance program that receives a grant under this section shall report all expenditures to the board on a quarterly basis. The sheriff or chief administrative officer shall also file an annual report with the board council itemizing the expenditures made during the preceding year, the purpose of those expenditures, and the ultimate disposition, if any, of each assisted victim's criminal case.

Subd. 4. [REPORT TO LEGISLATURE.] On or before February 1, 1997 1999, the board council shall report to the chairs of the senate crime prevention and house of representatives judiciary committees on the implementation, use, and administration of the grant program created under this section.

Sec. 30. Minnesota Statutes 1996, section 611A.71, subdivision 5, is amended to read:

Subd. 5. [DUTIES.] The council shall:

(1) review on a regular basis the treatment of victims by the criminal justice system and the need and availability of services to victims;

(2) advise the agency designated by the governor to apply for victim assistance program grants under chapter 14 of Public Law Number 98-473, in the coordination and allocation of federal funds for crime victims assistance programs;

(3) advocate necessary changes and monitor victim-related legislation;

(4) provide information, training, and technical assistance to state and local agencies and groups involved in victim and witness assistance;

(5) serve as a clearinghouse for information concerning victim and witness programs;

(6) develop guidelines for the implementation of victim and witness assistance programs and aid in the creation and development of programs;

(7) coordinate the development and implementation of policies and guidelines for the treatment of victims and witnesses, and the delivery of services to them; and

(8) develop ongoing public awareness efforts and programs to assist victims; and

(9) administer the grant program described in section 611A.675.


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Sec. 31. Minnesota Statutes 1996, section 611A.71, subdivision 7, is amended to read:

Subd. 7. [EXPIRATION.] The council expires on June 30, 1997 1999.

Sec. 32. Minnesota Statutes 1996, section 611A.74, subdivision 1, is amended to read:

Subdivision 1. [CREATION.] The office of crime victim ombudsman for Minnesota is created. The ombudsman shall be appointed by the commissioner of public safety with the advice of the advisory council, and governor, shall serve in the unclassified service at the pleasure of the commissioner, and shall be selected without regard to political affiliation. No person may serve as ombudsman while holding any other public office. The ombudsman is directly accountable to the commissioner of public safety and governor and shall be removed only for just cause. The ombudsman shall have the authority to investigate decisions, acts, and other matters of the criminal justice system so as to promote the highest attainable standards of competence, efficiency, and justice for crime victims in the criminal justice system.

Sec. 33. Minnesota Statutes 1996, section 611A.74, is amended by adding a subdivision to read:

Subd. 1a. [ORGANIZATION OF OFFICE.] (a) The ombudsman may appoint employees necessary to discharge responsibilities of the office. The ombudsman may delegate to staff members any of the ombudsman's authority or duties except the duties of formally making recommendations to appropriate authorities and reports to the office of the governor or to the legislature.

(b) The commissioner of public safety shall provide office space and administrative support services to the ombudsman and the ombudsman's staff.

Sec. 34. Minnesota Statutes 1996, section 611A.74, subdivision 3, is amended to read:

Subd. 3. [POWERS.] The crime victim ombudsman has those powers necessary to carry out the duties set out in subdivision 1 2, including:

(a) The ombudsman may investigate, with or without a complaint, any action of an element of the criminal justice system or a victim assistance program included in subdivision 2.

(b) The ombudsman may request and shall be given access to information and assistance the ombudsman considers necessary for the discharge of responsibilities. The ombudsman may inspect, examine, and be provided copies of records and documents of all elements of the criminal justice system and victim assistance programs. The ombudsman may request and shall be given access to police reports pertaining to juveniles and juvenile delinquency petitions, notwithstanding section 260.161. Any information received by the ombudsman retains its data classification under chapter 13 while in the ombudsman's possession. Juvenile records obtained under this subdivision may not be released to any person.

(c) The ombudsman may prescribe the methods by which complaints are to be made, received, and acted upon; may determine the scope and manner of investigations to be made; and subject to the requirements of sections 611A.72 to 611A.74, may determine the form, frequency, and distribution of ombudsman conclusions, recommendations, and proposals.

(d) After completing investigation of a complaint, the ombudsman shall inform in writing the complainant, the investigated person or entity, and other appropriate authorities of the action taken. If the complaint involved the conduct of an element of the criminal justice system in relation to a criminal or civil proceeding, the ombudsman's findings shall be forwarded to the court in which the proceeding occurred.

(e) Before announcing a conclusion or recommendation that expressly or impliedly criticizes an administrative agency or any person, the ombudsman shall consult with that agency or person.


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Sec. 35. Minnesota Statutes 1996, section 629.725, is amended to read:

629.725 [NOTICE TO CRIME VICTIM REGARDING BAIL HEARING OF ARRESTED OR DETAINED PERSON.]

When a person arrested or a juvenile detained for a crime of violence or an attempted crime of violence is scheduled to be reviewed under section 629.715 for release from pretrial detention, the court shall make a reasonable and good faith effort to notify the victim of the alleged crime. If the victim is incapacitated or deceased, notice must be given to the victim's family. If the victim is a minor, notice must be given to the victim's parent or guardian. The notification must include:

(1) the date and approximate time of the review;

(2) the location where the review will occur;

(3) the name and telephone number of a person that can be contacted for additional information; and

(4) a statement that the victim and the victim's family may attend the review.

As used in this section, "crime of violence" has the meaning given it in section 624.712, subdivision 5, and also includes section 609.21, gross misdemeanor violations of section 609.224, and nonfelony violations of sections 518B.01, 609.2231, 609.3451, 609.748, and 609.749.

Sec. 36. [EFFECTIVE DATE.]

Sections 1 to 12, 15, 18, 20, 22, and 26 to 28 are effective August 1, 1997. Sections 14, 16, 17, 19, 24, and 35 are effective August 1, 1997, and apply to offenses committed on or after that date. Sections 13, 21, and 23 are effective August 1, 1997, and apply to proceedings conducted on or after that date. Sections 25, and 29 to 34 are effective July 1, 1997.

ARTICLE 8

PUBLIC SAFETY

Section 1. Minnesota Statutes 1996, section 171.29, subdivision 2, is amended to read:

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

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

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

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

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

(4) Twelve percent shall be credited to a separate account to be known as the alcohol-impaired driver education account. Money in the account may be appropriated to the commissioner of children, families, and learning for programs in elementary and secondary schools.

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


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(c) The $10 surcharge shall be credited to a separate account to be known as the remote electronic alcohol monitoring pilot program account. Up to $250,000 is annually appropriated from this account to the commissioner of corrections for a remote electronic alcohol monitoring pilot program. The unencumbered balance remaining in the first year of the biennium does not cancel but is available for the second year. The commissioner shall transfer the balance of this account to the commissioner of finance on a monthly basis for deposit in the general fund.

Sec. 2. Minnesota Statutes 1996, section 260.161, subdivision 3, is amended to read:

Subd. 3. [PEACE OFFICER RECORDS OF CHILDREN.] (a) Except for records relating to an offense where proceedings are public under section 260.155, subdivision 1, peace officers' records of children who are or may be delinquent or who may be engaged in criminal acts shall be kept separate from records of persons 18 years of age or older and are private data but shall be disseminated: (1) by order of the juvenile court, (2) as required by section 126.036, (3) as authorized under section 13.82, subdivision 2, (4) to the child or the child's parent or guardian unless disclosure of a record would interfere with an ongoing investigation, or (5) as otherwise provided in this subdivision. Except as provided in paragraph (c), no photographs of a child taken into custody may be taken without the consent of the juvenile court unless the child is alleged to have violated section 169.121 or 169.129. Peace officers' records containing data about children who are victims of crimes or witnesses to crimes must be administered consistent with section 13.82, subdivisions 2, 3, 4, and 10. Any person violating any of the provisions of this subdivision shall be guilty of a misdemeanor.

In the case of computerized records maintained about juveniles by peace officers, the requirement of this subdivision that records about juveniles must be kept separate from adult records does not mean that a law enforcement agency must keep its records concerning juveniles on a separate computer system. Law enforcement agencies may keep juvenile records on the same computer as adult records and may use a common index to access both juvenile and adult records so long as the agency has in place procedures that keep juvenile records in a separate place in computer storage and that comply with the special data retention and other requirements associated with protecting data on juveniles.

(b) Nothing in this subdivision prohibits the exchange of information by law enforcement agencies if the exchanged information is pertinent and necessary to the requesting agency in initiating, furthering, or completing a criminal investigation or for other law enforcement purposes.

(c) A photograph may be taken of a child taken into custody pursuant to section 260.165, subdivision 1, clause (b), provided that the photograph must be destroyed when the child reaches the age of 19 years. The commissioner of corrections may photograph juveniles whose legal custody is transferred to the commissioner. Photographs of juveniles authorized by this paragraph may be used only for institution management purposes, case supervision by parole agents, and to assist law enforcement agencies to apprehend juvenile offenders. The commissioner shall maintain photographs of juveniles in the same manner as juvenile court records and names under this section.

(d) Traffic investigation reports are open to inspection by a person who has sustained physical harm or economic loss as a result of the traffic accident. Identifying information on juveniles who are parties to traffic accidents may be disclosed as authorized under section 13.82, subdivision 4, and accident reports required under section 169.09 may be released under section 169.09, subdivision 13, unless the information would identify a juvenile who was taken into custody or who is suspected of committing an offense that would be a crime if committed by an adult, or would associate a juvenile with the offense, and the offense is not a minor traffic offense under section 260.193.

(e) A law enforcement agency shall notify the principal or chief administrative officer of a juvenile's school of an incident occurring within the agency's jurisdiction if:

(1) the agency has probable cause to believe that the juvenile has committed an offense that would be a crime if committed as an adult, that the victim of the offense is a student or staff member of the school, and that notice to the school is reasonably necessary for the protection of the victim; or

(2) the agency has probable cause to believe that the juvenile has committed an offense described in subdivision 1b, paragraph (a), clauses (1) to (3), that would be a crime if committed by an adult, regardless of whether the victim is a student or staff member of the school.


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A law enforcement agency is not required to notify the school under this paragraph if the agency determines that notice would jeopardize an ongoing investigation. Notwithstanding section 138.17, data from a notice received from a law enforcement agency under this paragraph must be destroyed when the juvenile graduates from the school or at the end of the academic year when the juvenile reaches age 23, whichever date is earlier. For purposes of this paragraph, "school" means a public or private elementary, middle, or secondary school.

(f) In any county in which the county attorney operates or authorizes the operation of a juvenile prepetition or pretrial diversion program, a law enforcement agency or county attorney's office may provide the juvenile diversion program with data concerning a juvenile who is a participant in or is being considered for participation in the program.

(g) Upon request of a local social service agency, peace officer records of children who are or may be delinquent or who may be engaged in criminal acts may be disseminated to the agency to promote the best interests of the subject of the data.

Sec. 3. [299A.465] [CONTINUED HEALTH INSURANCE COVERAGE TO DISABLED.]

Subdivision 1. [OFFICER DISABLED IN LINE OF DUTY.] (a) This subdivision applies when a peace officer suffers a disabling injury that:

(1) results in the officer's retirement or separation from service;

(2) occurs while the officer is acting in the course and scope of duties as a peace officer; and

(3) the officer has been approved to receive the officer's duty-related disability pension.

(b) The officer's employer shall continue to provide health coverage for:

(1) the officer; and

(2) the officer's dependents if the officer was receiving dependent coverage at the time of the injury under the employer's group health plan.

(c) The employer is responsible for the continued payment of the employer's contribution for coverage of the officer and, if applicable, the officer's dependents. Coverage must continue for the officer and, if applicable, the officer's dependents until the officer reaches the age of 65. However, coverage for dependents does not have to be continued after the person no longer meets the definition of dependent.

Subd. 2. [OFFICER KILLED IN LINE OF DUTY.] (a) This subdivision applies when a peace officer is killed while on duty and discharging the officer's duties as a peace officer.

(b) The officer's employer shall continue to cover the deceased officer's dependents if the officer was receiving dependent coverage at the time of the officer's death under the employer's group health plan.

(c) The employer is responsible for the employer's contribution for the coverage of the officer's dependents. Coverage must continue for a dependent of the officer for the period of time that the person meets the definition of dependent up to the age of 65.

Subd. 3. [COORDINATION OF BENEFITS.] Health insurance benefits payable to the officer and the officer's dependents from any other source provides the primary coverage, and coverage available under this section is secondary.

Subd. 4. [PUBLIC EMPLOYER REIMBURSEMENT.] A public employer subject to this section may annually apply to the commissioner of public safety for reimbursement of its costs of complying with this section. The commissioner shall provide reimbursement to the public employer out of the public safety officer's benefit account.

Subd. 5. [DEFINITION.] For purposes of this section:

(a) "Peace officer" or "officer" has the meaning given in section 626.84, subdivision 1, paragraph (c).


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(b) "Dependent" means a person who meets the definition of dependent in section 62L.02, subdivision 11, at the time of the officer's injury or death.

Subd. 6. [FULL-TIME FIREFIGHTERS.] Subdivisions 1, 2, 3, and 5, paragraph (b), also apply to a full-time firefighter who meets the other terms, conditions, and qualifications under those subdivisions.

Sec. 4. Minnesota Statutes 1996, section 299A.61, subdivision 1, is amended to read:

Subdivision 1. [ESTABLISHMENT.] The commissioner of public safety, in cooperation with the commissioner of administration, shall develop and maintain an integrated criminal alert network to facilitate the communication of crime prevention information by electronic means among state agencies, law enforcement officials, and the private sector. The network shall disseminate data regarding the commission of crimes, including information on missing and endangered children, and attempt to reduce theft and other crime by the use of electronic transmission of information. In addition, the commissioner shall evaluate the feasibility of using the network to disseminate data regarding the use of fraudulent checks and the coordination of security and antiterrorism efforts with the Federal Bureau of Investigation.

Sec. 5. [299A.625] [CRIMINAL GANG COUNCIL AND STRIKE FORCE; GRANTS AUTHORIZED.]

Subdivision 1. [COUNCIL AND STRIKE FORCE ESTABLISHED.] (a) A criminal gang oversight council is established. The council shall consist of the following individuals or their designees: the commissioner of public safety; the commissioner of corrections; the superintendent of the bureau of criminal apprehension; the attorney general; the Hennepin, Ramsey, St. Louis, and Olmsted county attorneys; the chief law enforcement officers for Minneapolis, St. Paul, and Duluth; the Hennepin, Ramsey, St. Louis, and Olmsted county sheriffs; a chief of police selected by the president of the Minnesota Association of Chiefs of Police, a representative of the Minnesota Police and Peace Officers Association selected by the president of the association, a county attorney selected by the president of the Minnesota County Attorneys Association; a sheriff selected by the president of the Minnesota Sheriffs Association from a county in the seven-county metropolitan area other than Hennepin or Ramsey county; and a sheriff selected by the president of the Minnesota Sheriffs Association from a county outside the seven-county metropolitan area. The attorney general and the commissioner of public safety shall serve as the cochairs of the council. The council shall develop the protocol for and oversee the creation and operation of a statewide criminal gang strike force. The council shall be responsible for developing a statewide strategic plan to investigate and prosecute crimes committed by criminal gangs. As far as practicable, this plan must address all criminal gangs operating in the state regardless of location or the motivation or ethnicity of the gangs' members. The plan must target individuals or groups based on specific identifiable activity that indicates gang membership or criminal behavior, not their physical appearance. The plan must list what constitutes gang activity. The plan must take into account the rights of groups and individuals that the strike force may target and protect against abuses of these rights. The strike force shall consist of law enforcement officers, bureau of criminal apprehension agents, a prosecutorial unit, and a communications and intelligence network. The strike force shall implement the strategy developed by the council and is responsible for tactical decisions regarding the implementation of the strategy. In addition and upon request, the strike force shall assist and train local governmental units, law enforcement agencies, and prosecutor's offices in methods to identify criminal gangs and gang members and in ways to successfully prosecute crimes committed by these individuals. To the greatest extent possible, the strike force shall operate as a cohesive unit exclusively for the purposes listed in this section for a two-year period. If regional units are created under paragraph (e), the council shall ensure that the existence and operation of these units do not impair the overall goal of a uniform statewide strategy to combat crimes committed by gangs.

(b) The council shall select the members of the strike force and ensure that they are experienced in the investigation and prosecution of crimes committed by criminal gangs. The council shall ensure that all law enforcement officers selected to join the strike force are licensed peace officers. In selecting members of the strike force, the council shall consult with chiefs of local law enforcement agencies, sheriffs, county attorneys, and other interested parties. The council shall request these individuals to recommend willing and experienced persons under their jurisdiction who would help the strike force and to permit those persons to join it. To the greatest extent possible, entities contributing members to the strike force are encouraged to also contribute equipment and other support. The council shall attempt to ensure that these entities do so.

(c) Members of the strike force shall serve on the force for the entirety of its existence unless the council decides otherwise. Members shall continue to be employed by the same organization they were employed by prior to joining the strike force. However, a member shall be under the exclusive command of the strike force while serving on the strike force.


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A member of the strike force may request a transfer from the council if the member desires to be transferred back to the position the member held before joining the strike force. Additionally, a local law enforcement agency head may require the strike force immediately to transfer back a peace officer member of the strike force temporarily or permanently based on departmental needs. The council shall approve and arrange for a transfer of a member who is not a peace officer as soon as is practicable. If a member is transferred from the strike force, the person in charge of the organization from which the member came, shall arrange for an experienced individual, acceptable to the council, to replace the transferred person on the strike force. If this arrangement cannot be made, any grant received under subdivision 5 must be repaid on a prorated basis.

(d) The council may designate a member of the strike force to be its leader and if any regional units authorized under paragraph (e) are created, may designate leaders of the units. This person or these persons shall serve at the pleasure of the council and shall be responsible for the day-to-day operation of the strike force or unit. However, the council is responsible for the oversight of the strike force and any individual units.

(e) If the council decides that it would be more effective and efficient to have distinct regional units concentrating on specific areas of the state within the strike force, it may do so either by initially creating various regional units within the strike force and selecting members accordingly or by doing so at a later date. If the council chooses to do this, the other provisions of this section shall still apply to the individual units and the council shall still have the duty and authority to develop necessary protocols for and to oversee the operation of each individual unit. The council may continue to alter the structure of the strike force and any units composing it in any way designed to further its effectiveness and to carry out the intent of this section.

(f) The prosecutorial unit of the strike force shall serve under the direction of a prosecution working group. The prosecution working group consists of the attorney general and the Hennepin, Ramsey, St. Louis, and Olmsted county attorneys. The prosecution working group may invite the United States attorney for the district of Minnesota to serve as an ex-officio member of the prosecution working group. The attorney general shall serve as the chair of the prosecution working group.

The prosecution working group described in paragraph (a) shall develop a policy delineating the role of the attorneys in the strike force and specifying how criminal cases developed by the strike force will be prosecuted. To the greatest extent possible, this policy must utilize the expertise of county and city attorneys throughout the state, the attorney general's office, and the United States Attorney's Office; and must maximize cooperation with these prosecutors. It must also address the role of the prosecutorial unit in other matters, including, but not limited to, training local prosecutors in prosecuting cases involving criminal gangs, interviewing witnesses, and cooperating with other strike force members in developing and building strong cases. The policy shall be submitted to the council for review.

(g) The assistant attorney general assigned to the strike force, in addition to helping develop the policy described in paragraph (f) and in carrying out the individual tasks specified in the policy after it is approved by the council, shall generally advise the council on any matters that the council deems appropriate. The attorney general or a designee also will serve as a liaison between the criminal gang oversight council established in this subdivision and the councils created in sections 3.922, 3.9223, 3.9225, and 3.9226. The attorney general or a designee will be responsible for:

(1) informing the councils of the criminal gang oversight council's plans, activities, and decisions and hearing their reactions to those plans, activities, and decisions; and

(2) providing the criminal gang oversight council with information about the councils' position on the oversight council's plans, activities, and decisions.

In no event is the criminal gang oversight council required to disclose the names of individuals identified by it to the councils referenced in this paragraph.

Nothing in this paragraph changes the data classification of any data held by the oversight council.


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Subd. 2. [STATEWIDE JURISDICTION.] Law enforcement officers who are members of the strike force shall have statewide jurisdiction to conduct criminal investigations and shall possess the same powers of arrest as those possessed by a sheriff. Prosecutors assigned to the prosecutorial unit of the strike force shall have all the powers of an assistant attorney general under section 8.01 to prosecute gang crimes investigated throughout the state by the law enforcement officers assigned to the strike force.

Subd. 3. [LIABILITY AND WORKERS' COMPENSATION.] While operating under the scope of this section, members of the strike force are "employees of the state" as defined in section 3.736 and are considered employees of the department of public safety for purposes of chapter 176.

Subd. 4. [REQUIRED REPORT.] By February 1 of each year, the council shall report to the chairs of the senate and house of representatives committees or divisions having jurisdiction over criminal justice policy and funding on the activities of the council and strike force.

Subd. 5. [REIMBURSEMENT GRANTS AUTHORIZED.] The council may award grants to local law enforcement agencies, county attorney's and sheriff's offices, and other organizations that have contributed members to the strike force to hire new persons to replace those who have joined the force. A grant may cover a two-year period and reimburse the recipient for up to 100 percent of the salary of the departed person. A recipient of a grant under this subdivision shall use the money to hire a new person to replace the person who has joined the strike force, thus, keeping its complement of employees at the same level. The money may not be used to pay for equipment or uniforms.

Subd. 6. [GRANTS TO EXPAND LOCAL CAPACITY TO COMBAT CRIMINAL GANGS.] (a) The council may award grants to local law enforcement agencies and city and county attorneys' offices to expand the agency's or office's capacity to successfully investigate and prosecute crimes committed by criminal gangs.

(b) Grant applicants under this subdivision shall submit to the council a detailed plan describing the uses for which the money will be put. The council shall evaluate grant applications and award grants in a manner that will best ensure positive results. The council may award grants to purchase necessary equipment and to develop or upgrade computer systems if the council determines that this will best aid the recipient's attempts to combat criminal gangs. The council shall require recipients of grants to provide follow-up reports to the council detailing the success of the recipient in combating criminal gangs.

(c) The council shall condition grants made under this subdivision to require that recipients agree to cooperate with the council and the bureau of criminal apprehension in creating and expanding a comprehensive criminal gang information system and in implementing the strategy developed by the council to combat criminal gangs. Grant recipients shall agree to provide the council and bureau with any requested information regarding the activities and characteristics of criminal gangs and gang members operating within its jurisdiction.

Sec. 6. Minnesota Statutes 1996, section 299A.63, subdivision 4, is amended to read:

Subd. 4. [ATTORNEY GENERAL DUTIES.] (a) The attorney general may assist cities and local law enforcement officials in developing and implementing anticrime and neighborhood community revitalization strategies and may assist local prosecutors in prosecuting crimes occurring in the targeted neighborhoods that receive funding under this section. Upon request of the local prosecuting authority, the attorney general may appear in court in those civil and criminal cases arising as a result of this section that the attorney general deems appropriate. For the purposes of this section, the attorney general may appear in court in nuisance actions under chapter 617, and misdemeanor prosecutions under chapter 609.

(b) The attorney general shall develop may assist cities in developing appropriate applications to the United States Department of Justice for federal weed and seed grants for use in conjunction with grants awarded under this section.

Sec. 7. Minnesota Statutes 1996, section 299C.10, subdivision 4, is amended to read:

Subd. 4. [FEE FOR BACKGROUND CHECK; ACCOUNT; APPROPRIATION.] The superintendent shall collect a fee in an amount to cover the expense for each background check provided for a purpose not directly related to the criminal justice system or required by section 624.7131, 624.7132, or 624.714. The proceeds of the fee must be deposited in a special account. Until July 1, 1997, Money in the account is appropriated to the commissioner to maintain and improve the quality of the criminal record system in Minnesota.


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Sec. 8. Minnesota Statutes 1996, section 299C.65, is amended by adding a subdivision to read:

Subd. 5. [REVIEW OF FUNDING REQUESTS.] The criminal and juvenile justice information policy group shall review the funding requests for criminal justice information systems from state, county, and municipal government agencies. The policy group shall review the requests for compatibility to statewide criminal justice information systems. The review shall be forwarded to the chairs of the house judiciary committee and judiciary finance division, and the chairs of the senate crime prevention committee and crime prevention and judiciary finance division.

Sec. 9. Minnesota Statutes 1996, section 299D.07, is amended to read:

299D.07 [HELICOPTERS AND FIXED WING AIRCRAFT.]

The commissioner of public safety is hereby authorized to retain, acquire, maintain and operate helicopters and fixed wing aircraft for the purposes of the highway patrol and the Bureau of Criminal Apprehension and for any other law enforcement purpose that the commissioner determines is appropriate. The commissioner also is authorized to employ state patrol officer pilots as required.

Sec. 10. Minnesota Statutes 1996, section 299F.051, is amended to read:

299F.051 [TRAINING LOCAL FIREFIGHTERS; PROSECUTORS; AND PEACE OFFICERS.]

Subdivision 1. [CONTENT TRAINING UNIT.] An arson training unit is established within the division of fire marshal to develop and administer arson training courses throughout the state for law enforcement and fire service personnel and for prosecutors.

Subd. 1a. [CURRICULUM.] The superintendent of the arson training unit, in consultation with the bureau of criminal apprehension, after consultation with the state fire marshal, the Minnesota peace officers officer standards and training board, the county attorneys association, the attorney general, and the state advisory council on fire service education and research, shall establish the content of a standardized curriculum to be included in the training programs which shall be available to firefighters and peace officers from political subdivisions. The content standardized curriculum shall include fire scene investigation and preservation of evidence, interviewing of witnesses and suspects, constitutional limits on interrogation by sworn and nonsworn officers, and other topics deemed necessary to successful criminal investigation. and prosecution. The training program offered to peace officers shall meet the applicable preservice training requirements established by the peace officer standards and training board under section 626.8456.

Subd. 2. [TRAINING LOCATIONS, INSTRUCTORS.] The arson training unit, in cooperation with the superintendent of the bureau of criminal apprehension, the board of peace officer standards and training, the county attorneys association, and the attorney general, shall provide courses at convenient locations in the state for training firefighters and, peace officers, and prosecutors in:

(1) the conduct of investigations following the occurrence of a fire; and

(2) the prosecution of arson cases.

For this purpose, the superintendent arson training unit may use the services and employees of the bureau, the state fire marshal, and the attorney general. In addition, after consultation with the state fire marshal, the superintendent the arson training unit is authorized to establish minimum qualifications for training course instructors, and engage part-time instructors necessary and proper to furnish the best possible instruction, subject to the limitation of funds appropriated and available for expenditure. Laws 1981, chapter 210, sections 1 to 48, shall not apply to the part-time instructors.

Subd. 3. [IN-SERVICE TRAINING.] The state fire marshal and the superintendent of arson training unit, in cooperation with the bureau of criminal apprehension, in cooperation with the Minnesota board of peace officer standards and training, shall encourage the establishment of offer in-service and refresher training for firefighters and peace officers through schools administered by the state, county, school district, municipality, or joint or contractual combinations thereof. The in-service training courses offered for peace officers shall be eligible for continuing education credit from the Minnesota board of peace officers officer standards and training shall report to the governor and legislature on the progress made in this effort as provided in section 626.843.


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Subd. 4. [COOPERATIVE INVESTIGATION; REIMBURSEMENT.] The state fire marshal and the superintendent of the bureau of criminal apprehension shall encourage the cooperation of local firefighters and peace officers in the investigation of violations of sections 609.561 to 609.576 or other crimes associated with reported fires in all appropriate ways, including the providing reimbursement of to political subdivisions at a rate not to exceed 50 percent of the salaries of peace officers and firefighters for time spent in attending fire investigation training courses offered by the bureau arson training unit. Volunteer firefighters from a political subdivision shall be reimbursed at the rate of $35 per day plus expenses incurred in attending fire investigation training courses offered by the bureau arson training unit. Reimbursement shall be made only in the event that both a peace officer and a firefighter from the same political subdivision attend the same training course. The reimbursement shall be subject to the limitation of funds appropriated and available for expenditure. The state fire marshal and the superintendent also shall encourage local firefighters and peace officers to seek assistance from the arson strike force established in section 299F.058.

Sec. 11. [299F.058] [ARSON STRIKE FORCE.]

Subdivision 1. [ARSON STRIKE FORCE.] A multijurisdictional arson strike force is established to provide expert investigative and prosecutorial assistance to local agencies on request in complex or serious cases involving suspected arson.

Subd. 2. [MEMBERSHIP.] (a) The arson strike force consists of representatives from the following agencies and organizations:

(1) the division of fire marshal;

(2) the bureau of criminal apprehension;

(3) the office of attorney general;

(4) the Minnesota county attorneys association;

(5) the Bureau of Alcohol, Tobacco, and Firearms of the United States Treasury Department;

(6) the Minneapolis police and fire arson unit;

(7) the St. Paul police and fire arson unit;

(8) licensed private detectives selected by the state fire marshal or the attorney general or their designees; and

(9) any other arson experts the arson strike force deems appropriate to include.

The arson strike force, as necessary, may consult and work with representatives of property insurance agencies and organizations and any other private organizations that have expertise in arson investigations and prosecutions.

(b) Representatives from the attorney general's office and the county attorneys association who are members of the arson strike force shall assist in administering the strike force.

Subd. 3. [INVESTIGATIVE DUTIES.] (a) The arson strike force shall be available on a statewide basis to assist local public safety agencies in investigating the following types of suspected arson cases:

(1) serial fires;

(2) multijurisdictional fires;

(3) fires causing death or serious injury to a public safety officer;

(4) fires resulting in multiple deaths or injuries; or

(5) fires causing over $1,000,000 in damage.


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(b) The arson strike force shall establish a mechanism for informing local public safety agencies that it is available to assist in the investigation of the suspected arson cases described in paragraph (a).

(c) The arson strike force shall, by means of a memorandum of understanding among the involved agencies, develop and implement a protocol for the strike force's activation and operation in local cases of suspected arson.

(d) The arson strike force shall assist the arson training unit established in section 299F.051 in developing and implementing educational programs for public safety personnel on investigating arson cases.

Subd. 4. [PROSECUTION DUTIES.] (a) The arson strike force may identify and establish a team of prosecutors with experience in arson cases who will provide advice, on request, to local prosecutors who are prosecuting or preparing to prosecute arson cases. This team shall include prosecutors from the attorney general's office and county prosecutors who are identified and selected by the county attorneys association.

(b) The arson strike force shall assist the arson training unit established in section 299F.051 in developing educational programs and manuals to assist prosecutors in prosecuting arson cases.

Sec. 12. [299F.059] [JUVENILE FIRESETTER INTERVENTION.]

Subdivision 1. [INTERVENTION NETWORK.] The state fire marshal shall establish a statewide juvenile firesetter intervention network. The network shall include a clearinghouse of resources and materials to assist fire service personnel, schools, law enforcement agencies, and mental health professionals in understanding juvenile firesetting behavior and symptoms and intervening with juveniles who engage in the behavior or display the symptoms. The state fire marshal shall include in the network the comprehensive, injury prevention education curriculum provided for in subdivision 2.

Subd. 2. [EDUCATIONAL CURRICULUM.] The state fire marshal shall ensure implementation of a comprehensive, injury prevention education curriculum that focuses on juvenile fire play intervention and injury prevention. The curriculum shall be made available to schools and other interested organizations statewide.

Subd. 3. [ANNUAL TRAINING FORUM.] The state fire marshal shall develop strategies and plans designed to reduce the number of juvenile firesetting incidents. The state fire marshal shall offer an annual training forum for fire service and law enforcement personnel and for juvenile justice, medical, educational, mental health, and other interested professionals to discuss these strategies and other issues relating to juvenile firesetter behavior and symptoms.

Subd. 4. [MEDIA CAMPAIGN; KEEPING FIRE MATERIALS AWAY FROM CHILDREN.] The state fire marshal shall develop an ongoing media awareness campaign to instruct parents, retailers, and the community on the importance of keeping fire materials away from children and on methods for accomplishing that objective.

Sec. 13. Minnesota Statutes 1996, section 299F.06, subdivision 3, is amended to read:

Subd. 3. [PENALTY FOR REFUSAL TO TESTIFY OR PRODUCE EVIDENCE.] Any witness who refuses to be sworn, or who refuses to testify, or who disobeys any lawful order of the state fire marshal, chief assistant fire marshal, or deputy state fire marshal in relation to the investigation, or who fails or refuses to produce any paper, book, or document touching any matter under examination, or who is guilty of any contemptuous conduct, after being summoned to appear before them to give testimony in relation to any matter or subject under examination or investigation may be summarily punished by the state fire marshal, chief assistant state fire marshal, or deputy state fire marshals as for contempt by a fine in a sum not exceeding $100 or be committed to the county jail until such time as such person may be willing to comply with any reasonable order made by the state fire marshal, chief assistant state fire marshal, or deputy state fire marshals, as provided in this chapter any district court in the same manner as if the proceedings were pending in that court, and subject to the provisions of section 588.01.

Sec. 14. Minnesota Statutes 1996, section 609.035, subdivision 1, is amended to read:

Subdivision 1. Except as provided in subdivision subdivisions 2, subdivision 3, and 4, and in sections 609.251, 609.585, 609.21, subdivisions 3 and 4, 609.2691, 609.486, 609.494, and 609.856, if a person's conduct constitutes more than one offense under the laws of this state, the person may be punished for only one of the offenses and a conviction or acquittal of


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any one of them is a bar to prosecution for any other of them. All the offenses, if prosecuted, shall be included in one prosecution which shall be stated in separate counts.

Sec. 15. Minnesota Statutes 1996, section 609.035, is amended by adding a subdivision to read:

Subd. 4. [EXCEPTION; ARSON OFFENSES.] Notwithstanding section 609.04, a prosecution for or conviction of a violation of sections 609.561 to 609.563 or 609.5641 is not a bar to conviction of or punishment for any other crime committed by the defendant as part of the same conduct when the defendant is shown to have violated sections 609.561 to 609.563 or 609.5641 for the purpose of concealing any other crime.

For purposes of the sentencing guidelines, a violation of sections 609.561 to 609.593 or 609.5641 is a crime against the person.

Sec. 16. Minnesota Statutes 1996, section 609.115, subdivision 1, is amended to read:

Subdivision 1. [PRESENTENCE INVESTIGATION.] (a) When a defendant has been convicted of a misdemeanor or gross misdemeanor, the court may, and when the defendant has been convicted of a felony, the court shall, before sentence is imposed, cause a presentence investigation and written report to be made to the court concerning the defendant's individual characteristics, circumstances, needs, potentialities, criminal record and social history, the circumstances of the offense and the harm caused by it to others and to the community. At the request of the prosecutor in a gross misdemeanor case, the court shall order that a presentence investigation and report be prepared. The investigation shall be made by a probation officer of the court, if there is one; otherwise it shall be made by the commissioner of corrections. The officer conducting the presentence or predispositional investigation shall make reasonable and good-faith efforts to contact and provide the victim with the information required under section 611A.037, subdivision 2. Presentence investigations shall be conducted and summary hearings held upon reports and upon the sentence to be imposed upon the defendant in accordance with this section, section 244.10, and the rules of criminal procedure.

(b) When the crime is a violation of sections 609.561 to 609.563, 609.5641, or 609.576 and involves a fire, the report shall include a description of the financial and physical harm the offense has had on the public safety personnel who responded to the fire. For purposes of this paragraph, "public safety personnel" means the state fire marshal; employees of the division of the state fire marshal; firefighters, regardless of whether the firefighters receive any remuneration for providing services; peace officers, as defined in section 626.05, subdivision 2; individuals providing emergency management services; and individuals providing emergency medical services.

(c) When the crime is a felony violation of chapter 152 involving the sale or distribution of a controlled substance, the report shall include a description of any adverse social or economic effects the offense has had on persons who reside in the neighborhood where the offense was committed.

(d) The report shall also include the information relating to crime victims required under section 611A.037, subdivision 1. If the court directs, the report shall include an estimate of the prospects of the defendant's rehabilitation and recommendations as to the sentence which should be imposed. In misdemeanor cases the report may be oral.

(e) When a defendant has been convicted of a felony, and before sentencing, the court shall cause a sentencing worksheet to be completed to facilitate the application of the Minnesota sentencing guidelines. The worksheet shall be submitted as part of the presentence investigation report.

The investigation shall be made by a probation officer of the court, if there is one, otherwise by the commissioner of corrections. The officer conducting the presentence or predispositional investigation shall make reasonable and good faith efforts to contact the victim of that crime and to provide that victim with the information required under section 611A.037, subdivision 2.

(f) When a person is convicted of a felony for which the sentencing guidelines presume that the defendant will be committed to the commissioner of corrections under an executed sentence and no motion for a sentencing departure has been made by counsel, the court may, when there is no space available in the local correctional facility, commit the defendant to the custody of the commissioner of corrections, pending completion of the presentence investigation and report. When a


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defendant is convicted of a felony for which the sentencing guidelines do not presume that the defendant will be committed to the commissioner of corrections, or for which the sentencing guidelines presume commitment to the commissioner but counsel has moved for a sentencing departure, the court may commit the defendant to the commissioner with the consent of the commissioner, pending completion of the presentence investigation and report. The county of commitment shall return the defendant to the court when the court so orders.

Presentence investigations shall be conducted and summary hearings held upon reports and upon the sentence to be imposed upon the defendant in accordance with this section, section 244.10, and the rules of criminal procedure.

Sec. 17. [626.8456] [TRAINING IN FIRE SCENE RESPONSE AND ARSON AWARENESS.]

Subdivision 1. [TRAINING COURSE.] The board, in consultation with the division of fire marshal, shall prepare objectives for a training course to instruct peace officers in fire scene response and arson awareness.

Subd. 2. [PRESERVICE TRAINING REQUIREMENT.] An individual is not eligible to take the peace officer licensing examination after August 1, 1998, unless the individual has received the training described in subdivision 1.

Sec. 18. [ASSIGNMENT OF BUREAU OF CRIMINAL APPREHENSION AGENTS TO STRIKE FORCE.]

The superintendent of the bureau of criminal apprehension shall assign experienced agents to the strike force described in section 299A.625. These agents shall operate exclusively for the purposes listed in section 299A.625 under the protocol developed by the criminal gang oversight council.

Sec. 19. [ASSIGNMENT OF ASSISTANT ATTORNEY GENERAL TO STRIKE FORCE.]

The attorney general shall assign an assistant attorney general experienced in the prosecution of crimes committed by criminal gangs to the strike force described in section 299A.625. This attorney shall operate exclusively for the purposes listed in section 299A.625 under the protocol developed by the prosecution working group.

Sec. 20. [REPEALER.]

Minnesota Statutes 1996, sections 299A.01, subdivision 6; and 299F.07, are repealed. Minnesota Rules, parts 7419.0100; 7419.0200; 7419.0300; 7419.0400; 7419.0500; 7419.0600; 7419.0700; and 7419.0800, are repealed.

Sec. 21. [EFFECTIVE DATE.]

Sections 14 to 16 are effective August 1, 1997, and apply to crimes committed on or after that date.

ARTICLE 9

CORRECTIONS

Section 1. Minnesota Statutes 1996, section 144.761, subdivision 5, is amended to read:

Subd. 5. [EMERGENCY MEDICAL SERVICES PERSONNEL.] "Emergency medical services personnel" means:

(1) individuals employed to provide prehospital emergency medical services;

(2) persons employed as licensed police officers under section 626.84, subdivision 1, who experience a significant exposure in the performance of their duties;

(3) firefighters, paramedics, emergency medical technicians, licensed nurses, rescue squad personnel, or other individuals who serve as employees or volunteers of an ambulance service as defined by sections 144.801 to 144.8091, who provide prehospital emergency medical services;


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(4) crime lab personnel receiving a significant exposure while involved in a criminal investigation;

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

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

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

Sec. 2. Minnesota Statutes 1996, section 144.761, subdivision 7, is amended to read:

Subd. 7. [SIGNIFICANT EXPOSURE.] "Significant exposure" means:

(1) contact, in a manner supported by contemporary epidemiological research as a method of HIV or hepatitis B transmission, of the broken skin or mucous membrane of emergency medical services personnel with a patient's blood, amniotic fluid, pericardial fluid, peritoneal fluid, pleural fluid, synovial fluid, cerebrospinal fluid, semen, vaginal secretions, or bodily fluids grossly contaminated with blood;

(2) a needle stick, scalpel or instrument wound, or other wound inflicted by an object that is contaminated with blood, and that is capable of cutting or puncturing the skin of emergency medical services personnel; or

(3) an exposure that occurs by any other method of transmission recognized by contemporary epidemiological standards as a significant exposure.

Sec. 3. Minnesota Statutes 1996, section 144.762, subdivision 2, is amended to read:

Subd. 2. [REQUIREMENTS FOR PROTOCOL.] The postexposure notification protocol must include the following:

(1) a method for emergency medical services personnel to notify the facility that they may have experienced a significant exposure from a patient that was transported to the facility. The facility shall provide to the emergency medical services personnel a significant exposure report form to be completed by the emergency medical services personnel in a timely fashion;

(2) a process to investigate and determine whether a significant exposure has occurred. This investigation must be completed within 72 hours of receipt of the exposure report, or within a time period that will enable the patient to benefit from contemporary standards of care for reducing the risk of infection;

(3) if there has been a significant exposure, a process to determine whether the patient has hepatitis B or HIV infection;

(4) if the patient has an infectious disease that could be transmitted by the type of exposure that occurred, or, if it is not possible to determine what disease the patient may have, a process for making recommendations for appropriate counseling and testing to the emergency medical services personnel;

(5) compliance with applicable state and federal laws relating to data practices, confidentiality, informed consent, and the patient bill of rights; and

(6) a process for providing counseling for the patient to be tested and for the emergency medical services personnel filing the exposure report.


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Sec. 4. Minnesota Statutes 1996, section 144.762, is amended by adding a subdivision to read:

Subd. 2a. [ADDITIONAL PROTOCOL REQUIREMENTS.] In addition to the protocol requirements under subdivision 2, the postexposure notification protocol must provide a process for a licensed physician at the facility to conduct an immediate investigation into whether a significant exposure has occurred whenever emergency medical services personnel present themselves at a facility within six hours of a possible significant exposure. If the investigation shows that a significant exposure occurred, the protocol must provide a process for determining whether the patient has hepatitis B or HIV infection by means of voluntary testing or, if necessary, court-ordered testing of the patient.

Sec. 5. Minnesota Statutes 1996, section 144.765, is amended to read:

144.765 [PATIENT'S RIGHT TO REFUSE TESTING.]

Subdivision 1. [VOLUNTARY TESTING.] Upon notification of a significant exposure, the facility shall ask the patient to consent to blood testing to determine the presence of the HIV virus or the hepatitis B virus. The patient shall be informed that the test results without personally identifying information will be reported to the emergency medical services personnel. The patient shall be informed of the right to refuse to be tested. If the patient refuses to be tested, the patient's refusal will be forwarded to the emergency medical services agency and to the emergency medical services personnel.

Subd. 2. [MANDATORY TESTING.] The right to refuse a blood test under the circumstances described in this section does not apply to a prisoner who is in the custody or under the jurisdiction of the commissioner of corrections or a local correctional authority as a result of a criminal conviction.

Subd. 3. [COURT ORDER.] If a patient is subject to voluntary testing under section 144.762, subdivision 2a, and either is unavailable for immediate testing at the facility or refuses to submit to a blood test, the emergency medical services personnel may seek a court order to compel the patient to submit to testing. Court proceedings under this subdivision shall be given precedence over other pending matters so that the court may reach a prompt decision without delay. The court shall order the patient to submit to testing upon proof that an investigation by a licensed physician under section 144.762, subdivision 2a, showed that the emergency medical services personnel experienced a significant exposure.

Sec. 6. [241.266] [RESTRICTIONS ON PRIVATIZATION.]

(a) A state agency shall not enter into a contract with a private vendor for the delivery of:

(1) security functions at a state correctional institution, except for those functions that are being provided by a private vendor as of the effective date of this section;

(2) correctional institution food services and commissary services provided by nonmanagement employees that are being provided by the state as of the effective date of this section, unless the requirements of section 241.267 are satisfied; and

(3) food services and commissary services provided by nonmanagement employees in any new correctional institution, unless the requirements of section 241.267 are satisfied.

Nothing in paragraph (a), clauses (2) and (3), shall be construed to prohibit a state agency from entering into a contract with a private vendor for management-level services.

(b) For the purposes of sections 241.266 to 241.269, "private vendor" means an entity not owned or operated by a state or political subdivision that delivers or offers to deliver services.

Sec. 7. [241.267] [CONTRACT REVIEW FOR INSTITUTIONAL CONTRACTS.]

Subdivision 1. [REVIEW GUIDELINES.] (a) Except as provided in paragraph (g), the commissioner of corrections shall not recommend approval of a contract with a private vendor unless the commissioner of corrections determines that the requirements in paragraphs (b) to (f) are met.


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(b) The private vendor must provide financial statements for the previous three years or for each of the years the private vendor has been in operation, if fewer than three years, or provide other financial information to enable the commissioner to determine the financial strength of the private vendor.

(c) The private vendor must provide an adequate plan of insurance, specifically including insurance for civil rights claims, as determined by an independent risk management firm with demonstrated experience in state government liability issues. The firm shall be selected by the commissioner of commerce. In determining the adequacy of the plan, the firm shall determine whether the insurance is adequate:

(1) to protect the state from legal actions by a third party against the private vendor or the state as a result of the contract;

(2) to protect the state against claims arising as a result of any occurrence during the term of the contract;

(3) to ensure the private vendor's ability to fulfill its contract with the state in all respects, and to assure that the private vendor is not limited in this ability because of financial liability which results from judgments; and

(4) to satisfy such other requirements specified by the independent risk management/actuarial firm.

(d) In cooperation with appropriate bargaining representatives, the commissioner of corrections will compare the cost of continuing to operate the institutional service as a public function to the cost of contracting with a private vendor for the service. The commissioner will provide information on public and vendor costs to the union. The comparison must show that the bid of the private vendor will be at least 15 percent below the best available cost the state can expect to achieve if it provides the service. The comparison must include in the cost of contracting with a private vendor the amount of the bid plus contract administration, monitoring, and transition costs.

(e) The commissioner of corrections must determine that inmate labor is being utilized to the greatest extent feasible, with consideration given to the commissioner of corrections authority to employ all administrative, supervisory, and other skilled workers necessary to the proper instruction of the inmates and the profitable and efficient operation of the industrial and commercial activities authorized by section 241.27.

(f) The commissioner of corrections must determine that the private vendor provides its employees with a total compensation and benefit package of similar value to that provided by public employers to similarly situated employees.

(g) Paragraphs (b) to (f) do not apply to minority or small business contractors under chapter 16B, nor to contracts for delivery of goods or services with a value of less than $100,000.

Subd. 2. [BIDS.] If competitive bids must be sought under section 16B.07 for the contract, affected public employees must be given 30 days' advance notice that a contract will be advertised for bid and public employees must be allowed to participate in the bid process, notwithstanding section 16B.17. "Public employee" has the meaning given in section 179A.03, subdivision 14.

Subd. 3. [REPORT.] On or before January 1 of each year, the commissioner of corrections shall submit a written report to the committees of the senate and the house of representatives with jurisdiction over corrections policy that identifies and explains all affirmative contracts that were awarded in the preceding 12 months and all contract proposals that were considered and rejected. The commissioner also will report on the status of the labor-management process in subdivision 1, paragraph (d).

Subd. 4. [IMMUNITY.] Any immunity available to the state does not apply to the private vendor. Neither the private vendor nor the insurer of the private vendor may plead the defense of an immunity that is available to the state in any action arising out of the performance of the contract.

Subd. 5. [LIABILITY LIMITS.] Any limits on liability or limits on damages that may be asserted by the state do not apply to the private vendor, except a nonprofit entity, or the insurer of the private vendor.


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Subd. 6. [CLASSIFICATION OF DATA.] When a state agency enters into a contract with a private vendor for the delivery of services at or for a correctional facility, that contract does not affect the availability to the public of data that is classified as public data while maintained by the commissioner of corrections, and the data shall be available from the private vendor as public data. "Public data" has the meaning given in section 13.02, subdivision 15.

Sec. 8. [241.268] [INMATE EMPLOYMENT.]

The commissioner of corrections shall not allow any individual committed to the commissioner's custody to participate in an industrial or commercial activity under section 241.27 or to work for a private employer, unless:

(1) security at the place of employment is provided by the state;

(2) the private employer provides its noninmate employees with a total compensation and benefit package that is of similar value to that provided by public employers to similarly situated employees;

(3) the commissioner certifies in writing to the appropriate bargaining unit that the inmate's work will not result in the displacement of currently employed workers or workers on seasonal layoff, including partial displacement such as reduction in hours of nonovertime work, wages, or other employment benefits; and

(4) the commissioner determines that, to the maximum extent possible, fixtures, equipment, and materials that are necessary to allow an inmate to participate in an industrial or commercial activity under section 241.27 or to work for a private employer are furnished by an entity not owned or operated by a state or political subdivision.

This subdivision does not apply to those inmates seeking or engaged in private employment under section 241.26.

Sec. 9. [241.269] [RESTRICTIONS ON MANAGERIAL EMPLOYEES.]

(a) Managerial employees of the department of corrections shall not:

(1) disclose or use confidential information for the purpose of personal gain that the person obtained as an employee, either during or following employment with the department of corrections; or

(2) work for a private vendor, as defined in section 241.266, for one year following termination of the employee's employment with the state.

(b) For the purposes of this subdivision, "managerial employees" are employees described in section 43A.18, subdivision 3.

Sec. 10. [241.272] [SENTENCE TO SERVE.]

Whenever offenders are assigned for the purpose of work under agreement with a state department or agency, local unit of government, or other governmental subdivision, the state department or agency, local unit of government, or other government subdivision must certify in writing to the appropriate bargaining agent that the work performed by the inmates will not result in the displacement of currently employed workers or workers on seasonal layoff or layoff from a substantially equivalent position, including partial displacement such as reduction in hours of nonovertime work, wages, or other employment benefits.

Sec. 11. Minnesota Statutes 1996, section 241.42, subdivision 2, is amended to read:

Subd. 2. "Administrative agency" or "agency" means any division, official, or employee of the Minnesota department of corrections, the commissioner of corrections, the board of pardons, and regional correction or detention facilities or agencies for correction or detention programs including those programs or facilities operating under chapter 401, any regional or local correctional facility licensed or inspected by the commissioner of corrections, whether public or private, established and operated for the detention and confinement of adults or juveniles, including, but not limited to, programs or facilities


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operating under chapter 401, adult halfway homes, group foster homes, secure juvenile detention facilities, juvenile residential facilities, municipal holding facilities, juvenile temporary holdover facilities, regional or local jails, lockups, work houses, work farms, and detention and treatment facilities, but does not include:

(a) any court or judge;

(b) any member of the senate or house of representatives of the state of Minnesota;

(c) the governor or the governor's personal staff;

(d) any instrumentality of the federal government of the United States; or

(e) any political subdivision of the state of Minnesota;

(f) any interstate compact.

Sec. 12. Minnesota Statutes 1996, section 241.44, subdivision 1, is amended to read:

Subdivision 1. [POWERS.] The ombudsman may:

(a) prescribe the methods by which complaints are to be made, reviewed, and acted upon; provided, however, that the ombudsman may not levy a complaint fee;

(b) determine the scope and manner of investigations to be made;

(c) Except as otherwise provided, determine the form, frequency, and distribution of conclusions, recommendations, and proposals; provided, however, that the governor or a representative may, at any time the governor deems it necessary, request and receive information from the ombudsman. Neither the ombudsman nor any member of the ombudsman's staff member shall be compelled to testify or to produce evidence in any court judicial or administrative proceeding with respect to any matter involving the exercise of the ombudsman's official duties except as may be necessary to enforce the provisions of sections 241.41 to 241.45;

(d) investigate, upon a complaint or upon personal initiative, any action of an administrative agency;

(e) request and shall be given access to information in the possession of an administrative agency deemed necessary for the discharge of responsibilities;

(f) examine the records and documents of an administrative agency;

(g) enter and inspect, at any time, premises within the control of an administrative agency;

(h) subpoena any person to appear, give testimony, or produce documentary or other evidence which the ombudsman deems relevant to a matter under inquiry, and may petition the appropriate state court to seek enforcement with the subpoena; provided, however, that any witness at a hearing or before an investigation as herein provided, shall possess the same privileges reserved to such a witness in the courts or under the laws of this state;

(i) bring an action in an appropriate state court to provide the operation of the powers provided in this subdivision. The ombudsman may use the services of legal assistance to Minnesota prisoners for legal counsel. The provisions of sections 241.41 to 241.45 are in addition to other provisions of law under which any remedy or right of appeal or objection is provided for any person, or any procedure provided for inquiry or investigation concerning any matter. Nothing in sections 241.41 to 241.45 shall be construed to limit or affect any other remedy or right of appeal or objection nor shall it be deemed part of an exclusionary process; and

(j) be present at commissioner of corrections parole and parole revocation hearings and deliberations.


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Sec. 13. Minnesota Statutes 1996, section 241.44, is amended by adding a subdivision to read:

Subd. 3a. [INVESTIGATION OF ADULT LOCAL JAILS AND DETENTION FACILITIES.] Either the ombudsman or the department of corrections' jail inspection unit may investigate complaints involving local adult jails and detention facilities. The ombudsman and department of corrections must enter into an arrangement with one another that ensures that they are not duplicating each other's services.

Sec. 14. Minnesota Statutes 1996, section 242.19, subdivision 3, is amended to read:

Subd. 3. [RETAKING ABSCONDING AND OTHER PERSON.] The written order of the commissioner of corrections is authority to any peace officer or parole or probation officer to take and detain any child committed to the commissioner of corrections by a juvenile court who absconds from field supervision or escapes from confinement, or is awaiting further order of the commissioner. However, if the child has attained the age of 18 years, the commissioner shall issue a warrant directed to any peace officer or parole or probation officer requiring that the fugitive be taken into immediate custody to await the further order of the commissioner. Any person of the age of 18 years or older who is taken into custody under the provisions of this subdivision may be detained as provided in section 260.173, subdivision 4.

Sec. 15. [243.055] [COMPUTER RESTRICTIONS.]

Subdivision 1. [RESTRICTIONS TO USE OF ON-LINE SERVICES.] If the commissioner believes a significant risk exists that a parolee, state-supervised probationer, or individual on supervised release may use an Internet service or on-line service to engage in criminal activity or to associate with individuals who are likely to encourage the individual to engage in criminal activity, the commissioner may impose one or more of the following conditions:

(1) prohibit the individual from possessing or using a computer with access to an Internet service or on-line service without the prior written approval of the commissioner;

(2) prohibit the individual from possessing or using any data encryption technique or program;

(3) require the individual to consent to periodic unannounced examinations of the individual's computer equipment by a parole or probation agent, including the retrieval and copying of all data from the computer and any internal or external peripherals and removal of such equipment to conduct a more thorough inspection;

(4) require consent of the individual to have installed on the individual's computer, at the individual's expense, one or more hardware or software systems to monitor computer use; and

(5) any other restrictions the commissioner deems necessary.

Subd. 2. [RESTRICTIONS ON COMPUTER USE.] If the commissioner believes a significant risk exists that a parolee, state-supervised probationer, or individual on supervised release may use a computer to engage in criminal activity or to associate with individuals who are likely to encourage the individual to engage in criminal activity, the commissioner may impose one or more of the following restrictions:

(1) prohibit the individual from accessing through a computer any material, information, or data that relates to the activity involved in the offense for which the individual is on probation, parole, or supervised release;

(2) require the individual to maintain a daily log of all addresses the individual accesses through computer other than for authorized employment and to make this log available to the individual's parole or probation agent;

(3) provide all personal and business telephone records to the individual's parole or probation agent upon request, including written authorization allowing the agent to request a record of all of the individual's outgoing and incoming telephone calls from any telephone service provider;

(4) prohibit the individual from possessing or using a computer that contains an internal modem and from possessing or using an external modem without the prior written consent of the commissioner;


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(5) prohibit the individual from possessing or using any computer, except that the individual may, with the prior approval of the individual's parole or probation agent, use a computer in connection with authorized employment;

(6) require the individual to consent to disclosure of the computer-related restrictions that the commissioner has imposed to any employer or potential employer; and

(7) any other restrictions the commissioner deems necessary.

Subd. 3. [LIMITS ON RESTRICTION.] In imposing restrictions, the commissioner shall take into account that computers are used for numerous, legitimate purposes and that, in imposing restrictions, the least restrictive condition appropriate to the individual shall be used.

Sec. 16. [243.161] [RESIDING IN MINNESOTA WITHOUT PERMISSION UNDER INTERSTATE COMPACT; PENALTY.]

Any person who is on parole or probation in another state who resides in this state in violation of section 243.16, may be sentenced to imprisonment for not more than five years or to payment of a fine of not more than $10,000, or both.

Sec. 17. [243.556] [RESTRICTIONS ON INMATES' COMPUTER ACCESS.]

Subdivision 1. [RESTRICTIONS TO USE OF ON-LINE SERVICES.] No adult inmate in a state correctional facility may use or have access to any Internet service or on-line service, except for work, educational, and vocational purposes approved by the commissioner or the commissioner's designee.

Subd. 2. [RESTRICTIONS ON COMPUTER USE.] The commissioner shall restrict inmates' computer use to legitimate educational and vocational purposes.

Subd. 3. [MONITORING OF COMPUTER USE.] The commissioner shall monitor all computer use by inmates and perform regular inspections of computer equipment.

Sec. 18. [244.20] [PROBATION SUPERVISION OF FELONS.]

Notwithstanding sections 260.311, subdivision 1, and 609.135, subdivision 1, the department of corrections shall have exclusive responsibility for providing probation services for adult felons in counties that do not take part in the Community Corrections Act. In counties that do not take part in the Community Corrections Act, the responsibility for providing probation services for individuals convicted of gross misdemeanor offenses shall be discharged according to local judicial policy.

Sec. 19. [244.21] [COLLECTION OF INFORMATION ON OFFENDERS; REPORTS REQUIRED.]

Subdivision 1. [COLLECTION OF INFORMATION BY PROBATION SERVICE PROVIDERS; REPORT REQUIRED.] By January 1, 1998, probation service providers shall begin collecting and maintaining information on offenders under supervision. The commissioner of corrections shall specify the nature and extent of the information to be collected. By April 1 of every year, each probation service provider shall report a summary of the information collected to the commissioner.

Subd. 2. [COMMISSIONER OF CORRECTIONS REPORT.] By January 15, 1998, the commissioner of corrections shall report to the chairs of the senate crime prevention and house of representatives judiciary committees on recommended methods of coordinating the exchange of information collected on offenders under subdivision 1: (1) between probation service providers; and (2) between probation service providers and the department of corrections, without requiring service providers to acquire uniform computer software.

Sec. 20. [244.22] [REVIEW OF PLANNED EXPENDITURES OF PROBATION SERVICE PROVIDERS; DISTRIBUTION OF MONEY TO MULTIPLE PROBATION SERVICE PROVIDERS WITHIN A SINGLE COUNTY.]

(a) The commissioner of corrections shall review the planned expenditures of probation service providers before allocating probation caseload reduction grants appropriated by the legislature. The review must determine whether the planned expenditures comply with applicable law.


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(b) In counties where probation services are provided by both county and department of corrections employees, a collaborative plan addressing the local needs shall be developed. The commissioner of corrections shall specify the manner in which probation caseload reduction grant money shall be distributed between the providers according to the approved plan.

Sec. 21. [244.24] [CLASSIFICATION SYSTEM FOR ADULT OFFENDERS.]

By February 1, 1998, all probation agencies shall adopt written policies for classifying adult offenders. The commissioner of corrections shall assist probation agencies in locating organizations that may provide training and technical assistance to the agencies concerning methods to develop and implement effective, valid classification systems.

Sec. 22. Minnesota Statutes 1996, section 260.1735, is amended to read:

260.1735 [EXTENSION OF DETENTION PERIOD.]

Subdivision 1. [DETENTION.] Before July 1, 1997 1999, and pursuant to a request from an eight-day temporary holdover facility, as defined in section 241.0221, the commissioner of corrections, or the commissioner's designee, may grant a one-time extension per child to the eight-day limit on detention under this chapter. This extension may allow such a facility to detain a child for up to 30 days including weekends and holidays. Upon the expiration of the extension, the child may not be transferred to another eight-day temporary holdover facility. The commissioner shall develop criteria for granting extensions under this section. These criteria must ensure that the child be transferred to a long-term juvenile detention facility as soon as such a transfer is possible. Nothing in this section changes the requirements in section 260.172 regarding the necessity of detention hearings to determine whether continued detention of the child is proper.

Subd. 2. [CONTINUED DETENTION.] (a) A delay not to exceed 48 hours may be made if the facility in which the child is detained is located where conditions of distance to be traveled or other ground transportation do not allow for court appearances within 24 hours.

(b) A delay may be made if the facility is located where conditions of safety exist. Time for an appearance may be delayed until 24 hours after the time that conditions allow for reasonably safe travel. "Conditions of safety" include adverse life-threatening weather conditions that do not allow for reasonably safe travel.

The continued detention of a child under paragraph (a) or (b) must be reported to the commissioner of corrections.

Sec. 23. Minnesota Statutes 1996, section 260.311, subdivision 1, is amended to read:

Subdivision 1. [APPOINTMENT; JOINT SERVICES; STATE SERVICES.] (a) If a county or group of counties has established a human services board pursuant to chapter 402, the district court may appoint one or more county probation officers as necessary to perform court services, and the human services board shall appoint persons as necessary to provide correctional services within the authority granted in chapter 402. In all counties of more than 200,000 population, which have not organized pursuant to chapter 402, the district court shall appoint one or more persons of good character to serve as county probation officers during the pleasure of the court. All other counties shall provide adult misdemeanant and juvenile probation services to district courts in one of the following ways:

(1) the court, with the approval of the county boards, may appoint one or more salaried county probation officers to serve during the pleasure of the court;

(2) when two or more counties offer probation services the district court through the county boards may appoint common salaried county probation officers to serve in the several counties;

(3) a county or a district court may request the commissioner of corrections to furnish probation services in accordance with the provisions of this section, and the commissioner of corrections shall furnish such services to any county or court that fails to provide its own probation officer by one of the two procedures listed above;


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(4) if a county or district court providing probation services under clause (1) or (2) asks the commissioner of corrections or the legislative body for the state of Minnesota mandates the commissioner of corrections to furnish probation services to the district court, the probation officers and other employees displaced by the changeover shall be employed by the commissioner of corrections. Years of service in the county probation department are to be given full credit for future sick leave and vacation accrual purposes;

(5) all probation officers serving the juvenile courts on July 1, 1972, shall continue to serve in the county or counties they are now serving.

(b) The commissioner of employee relations shall place employees transferred to state service under paragraph (a), clause (4), in the proper classifications in the classified service. Each employee is appointed without examination at no loss in salary or accrued vacation or sick leave benefits, but no additional accrual of vacation or sick leave benefits may occur until the employee's total accrued vacation or sick leave benefits fall below the maximum permitted by the state for the employee's position. An employee appointed under paragraph (a), clause (4), shall serve a probationary period of six months. After exhausting labor contract remedies, a noncertified employee may appeal for a hearing within ten days to the commissioner of employee relations, who may uphold the decision, extend the probation period, or certify the employee. The decision of the commissioner of employee relations is final. The state shall negotiate with the exclusive representative for the bargaining unit to which the employees are transferred regarding their seniority. For purposes of computing seniority among those employees transferring from one county unit only, a transferred employee retains the same seniority position as the employee had within that county's probation office.

Sec. 24. Minnesota Statutes 1996, section 609.02, is amended by adding a subdivision to read:

Subd. 15. [PROBATION.] "Probation" means a court-ordered sanction imposed upon an offender for a period of supervision no greater than that set by statute. It is imposed as an alternative to confinement or in conjunction with confinement or intermediate sanctions. The purpose of probation is to deter further criminal behavior, punish the offender, help provide reparation to crime victims and their communities, and provide offenders with opportunities for rehabilitation.

Sec. 25. Minnesota Statutes 1996, section 609.15, subdivision 1, is amended to read:

Subdivision 1. [CONCURRENT, CONSECUTIVE SENTENCES; SPECIFICATION REQUIREMENT.] (a) Except as provided in paragraph (b), when separate sentences of imprisonment are imposed on a defendant for two or more crimes, whether charged in a single indictment or information or separately, or when a person who is under sentence of imprisonment in this state is being sentenced to imprisonment for another crime committed prior to or while subject to such former sentence, the court in the later sentences shall specify whether the sentences shall run concurrently or consecutively. If the court does not so specify, the sentences shall run concurrently.

(b) An inmate of a state prison who is convicted of committing an assault within the correctional facility is subject to the consecutive sentencing provisions of section 609.2232.

Sec. 26. Minnesota Statutes 1996, section 609.2231, is amended by adding a subdivision to read:

Subd. 8. [DEFINITION.] As used in this section, "demonstrable bodily harm" includes:

(1) bodily harm capable of being observed by a person other than the victim; and

(2) a transfer of an infectious agent for a communicable disease in violation of section 609.2241.

Sec. 27. [609.2232] [CONSECUTIVE SENTENCES FOR ASSAULTS COMMITTED BY STATE PRISON INMATES.]

If an inmate of a state correctional facility is convicted of violating section 609.221, 609.222, 609.223, 609.2231, or 609.224, while confined in the facility, the sentence imposed for the assault shall be executed and run consecutively to any unexpired portion of the offender's earlier sentence. The inmate is not entitled to credit against the sentence imposed for the assault for time served in confinement for the earlier sentence. The inmate shall serve the sentence for the assault in a state correctional facility even if the assault conviction was for a misdemeanor or gross misdemeanor.


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Sec. 28. [PROBATION OUTCOME MEASUREMENT WORK GROUP.]

Subdivision 1. [WORK GROUP ESTABLISHED; PURPOSE.] The commissioner of corrections shall establish a work group to develop uniform statewide probation outcome measures. The outcome measures must focus primarily on adult offenders but, to the extent possible, may also address juvenile offenders. The work group shall develop definitions that may be used by all state and local probation service providers to report outcome information for probation services. The work group shall recommend a method by which probation service providers may measure and report recidivism of adult felons in a uniform manner.

Subd. 2. [MEMBERSHIP.] The commissioner of corrections shall appoint individuals who have demonstrated experience in the probation field to serve as members of the work group. The commissioner shall ensure that community corrections act counties and noncommunity corrections act counties are equally represented on the work group. The commissioner, or the commissioner's designee, shall serve on the work group and act as its chair.

Subd. 3. [REVIEW OF OUTCOME MEASURES.] By November 1, 1997, the work group shall submit its recommendations on outcome measures to the criminal and juvenile justice information policy group for review.

Subd. 4. [REPORT REQUIRED.] The work group shall report its findings and recommendations to the chairs of the senate and house of representatives committees having jurisdiction over criminal justice policies by January 15, 1998. The report must indicate what comments or modifications, if any, were made or suggested by the criminal and juvenile justice information policy group and whether the work group altered its recommendations because of this.

Sec. 29. [DEPARTMENT OF CORRECTIONS BIENNIAL PERFORMANCE REPORT.]

The department of corrections must include in its agency performance report for the year 2000 a summary of statewide information on the reoffense rates of adult felons on probation.

Sec. 30. [RUSH CITY CLOSE CUSTODY FACILITY.]

The commissioner of corrections must meet and confer with the exclusive bargaining representatives of employees for the purpose of continuing to reduce the projected per diem rates for the proposed Rush City close custody facility. The commissioner and exclusive representatives must consider, at a minimum, the following: management and supervisory levels, staffing schedules and other staff issues, inmate programming, and other matters that impact costs. By February 15, 1998, the commissioner and exclusive bargaining representatives must provide a report to the chairs of the house judiciary committee and senate crime prevention committee.

Sec. 31. [INSTRUCTION TO REVISOR.]

The revisor of statutes shall renumber Minnesota Statutes, section 260.311, as 244.19. The revisor shall also make necessary cross-reference changes consistent with the renumbering.

Sec. 32. [EFFECTIVE DATE.]

Sections 16 and 25 to 27 are effective August 1, 1997, and apply to crimes committed on or after that date. Section 19 is effective January 1, 1998. Sections 8 to 10, 18, 20, 21, 23, 24, 28, and 30 are effective the day following final enactment. Sections 6 and 7 are effective October 1, 1997.

ARTICLE 10

MISCELLANEOUS PROVISIONS

Section 1. Minnesota Statutes 1996, section 363.073, subdivision 1, is amended to read:

Subdivision 1. [SCOPE OF APPLICATION.] No department or agency of the state shall accept any bid or proposal for a contract or agreement or unless the firm or business has an affirmative action plan submitted to the commissioner of human rights for approval. No department or agency of the state shall execute any contract or agreement for goods or services in excess of $50,000 with any business having more than 20 full-time employees on a single working day during the previous


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12 months, unless the firm or business has an affirmative action plan for the employment of minority persons, women, and the disabled that has been approved by the commissioner of human rights. Receipt of a certificate of compliance issued by the commissioner shall signify that a firm or business has an affirmative action plan that has been approved by the commissioner. A certificate shall be valid for a period of two years. A municipality as defined in section 466.01, subdivision 1, that receives state money for any reason is encouraged to prepare and implement an affirmative action plan for the employment of minority persons, women, and the disabled and submit the plan to the commissioner of human rights.

Sec. 2. Minnesota Statutes 1996, section 504.181, subdivision 1, is amended to read:

504.181 [COVENANT OF LESSOR AND LESSEE NOT TO ALLOW DRUGS UNLAWFUL ACTIVITIES.]

Subdivision 1. [COVENANT NOT TO ALLOW DRUGS TERMS OF COVENANT.] In every lease or license of residential premises, whether in writing or parol, the lessor or licensor and the lessee or licensee covenants covenant that:

(1) the lessee or licensee neither will not:

(i) unlawfully allow controlled substances in those premises or in the common area and curtilage of the premises;

(ii) allow prostitution or prostitution-related activity as defined in section 617.80, subdivision 4, to occur on the premises or in the common area and curtilage of the premises; or

(iii) allow the unlawful use or possession of a firearm in violation of section 609.66, subdivision 1a, 609.67, or 624.713, on the premises or in the common area and curtilage of the premises; and

(2) the common area and curtilage of the premises will not be used by either the lessor or licensor or the lessee or licensee or others acting under the lessee's or licensee's control of either to manufacture, sell, give away, barter, deliver, exchange, distribute, purchase, or possess a controlled substance in violation of any criminal provision of chapter 152.

The covenant is not violated when a person other than the lessor or licensor or the lessee or licensee possesses or allows controlled substances in the premises, common area, or curtilage, unless the lessor or licensor or the lessee or licensee knew or had reason to know of that activity.

Sec. 3. Minnesota Statutes 1996, section 566.05, is amended to read:

566.05 [COMPLAINT AND SUMMONS.]

(a) The person complaining shall file a complaint with the court, stating the full name and date of birth of the person against whom the complaint is made, unless it is not known, describing the premises of which possession is claimed, stating the facts which authorize the recovery, and praying for restitution thereof. The lack of the full name and date of birth of the person against whom the complaint is made does not deprive the court of jurisdiction or make the complaint invalid. The court shall issue a summons, commanding the person against whom the complaint is made to appear before the court on a day and at a place stated in the summons. The appearance shall be not less than seven nor more than 14 days from the day of issuing the summons. In scheduling appearances under this section, the court shall give priority to any unlawful detainer brought under section 504.181, or on the basis that the tenant is causing a nuisance or seriously endangers the safety of other residents, their property, or the landlord's property, except as provided by paragraph (b). A copy of the complaint shall be attached to the summons, which shall state that the copy is attached and that the original has been filed.

(b) In an unlawful detainer action brought under section 504.181 or on the basis that the tenant is causing a nuisance or other illegal behavior that seriously endangers the safety of other residents, their property, or the landlord's property, the person filing the complaint shall file an affidavit stating specific facts and instances in support of why an expedited hearing is required. The complaint and affidavit shall be reviewed by a referee or judge and scheduled for an expedited hearing only if sufficient supporting facts are stated and they meet the requirements of this paragraph. The appearance in an expedited hearing shall be not less than five days nor more than seven days from the date the summons is issued. The summons, in an expedited hearing, shall be served upon the tenant within 24 hours of issuance unless the court orders otherwise for good cause shown. If the court determines that the person seeking an expedited hearing did so without sufficient basis under the requirements of this paragraph, the court shall impose a civil penalty of up to $500 for abuse of the expedited hearing process.


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Sec. 4. Minnesota Statutes 1996, section 566.18, subdivision 6, is amended to read:

Subd. 6. [VIOLATION.] "Violation" means:

(a) a violation of any state, county or city health, safety, housing, building, fire prevention, or housing maintenance code applicable to the building;

(b) a violation of any of the covenants set forth in section 504.18, subdivision 1, clauses (a) or (b), or in section 504.181, subdivision 1;

(c) a violation of an oral or written agreement, lease or contract for the rental of a dwelling in a building.

Sec. 5. Minnesota Statutes 1996, section 611.27, subdivision 4, is amended to read:

Subd. 4. [COUNTY PORTION OF COSTS.] That portion of subdivision 1 directing counties to pay the costs of public defense service shall not be in effect between January 1, 1995, and July 1, 1997 1999. This subdivision only relates to costs associated with felony, gross misdemeanor, juvenile, and misdemeanor public defense services. Notwithstanding the provisions of this subdivision, in the first, fifth, seventh, ninth, and tenth judicial districts, the cost of juvenile and misdemeanor public defense services for cases opened prior to January 1, 1995, shall remain the responsibility of the respective counties in those districts, even though the cost of these services may occur after January 1, 1995.

Sec. 6. Minnesota Statutes 1996, section 611.27, is amended by adding a subdivision to read:

Subd. 15. [COSTS OF TRANSCRIPTS.] In appeal cases and postconviction cases where the state public defender's office does not have sufficient funds to pay for transcripts and other necessary expenses because it has spent or committed all of the transcript funds in its annual budget, the state public defender may forward to the commissioner of finance all billings for transcripts and other necessary expenses. The commissioner shall pay for these transcripts and other necessary expenses from county criminal justice aid retained by the commissioner of revenue under section 477A.0121, subdivision 4.

Sec. 7. Minnesota Statutes 1996, section 617.82, is amended to read:

617.82 [AGREED ABATEMENT PLANS; TEMPORARY ORDER.]

(a) If the recipient of a notice under section 617.81, subdivision 4, either abates the conduct constituting a nuisance or enters into an agreed abatement plan within 30 days of service of the notice, and complies with the agreement within the stipulated time period, the prosecuting attorney may not file a nuisance action on the specified property regarding the nuisance activity described in the notice.

(b) If the recipient fails to comply with the agreed abatement plan, the prosecuting attorney may initiate a complaint for relief in the district court consistent with paragraph (c).

(c) Whenever a prosecuting attorney has cause to believe that a nuisance described in section 617.81, subdivision 2, exists within the jurisdiction the attorney serves, the prosecuting attorney may by verified petition seek a temporary injunction in district court in the county in which the alleged public nuisance exists, provided that at least 30 days have expired since service of the notice required under section 617.81, subdivision 4. No temporary injunction may be issued without a prior show cause notice of hearing to the respondents named in the petition and an opportunity for the respondents to be heard. Upon proof of a nuisance described in section 617.81, subdivision 2, the court shall issue a temporary injunction. Any temporary injunction issued must describe the conduct to be enjoined.

Sec. 8. Minnesota Statutes 1996, section 617.85, is amended to read:

617.85 [NUISANCE; MOTION TO CANCEL LEASE.]

Where notice is provided under section 617.81, subdivision 4, that an abatement of a nuisance is sought and the circumstances that are the basis for the requested abatement involved the acts of a commercial or residential tenant or lessee of part or all of a building, the owner of the building that is subject to the abatement proceeding may file before the court


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that has jurisdiction over the abatement proceeding a motion to cancel the lease or otherwise secure restitution of the premises from the tenant or lessee who has maintained or conducted the nuisance. The owner may assign to the prosecuting attorney the right to file this motion. In addition to the grounds provided in chapter 566, the maintaining or conducting of a nuisance as defined in section 617.81, subdivision 2, by a tenant or lessee, is an additional ground authorized by law for seeking the cancellation of a lease or the restitution of the premises. Service of motion brought under this section must be served in a manner that is sufficient under Rule 3 of the Rules of Civil Procedure and chapter 566.

It is no defense to a motion under this section by the owner or the prosecuting attorney that the lease or other agreement controlling the tenancy or leasehold does not provide for eviction or cancellation of the lease upon the ground provided in this section.

Upon a finding by the court that the tenant or lessee has maintained or conducted a nuisance in any portion of the building, the court shall order cancellation of the lease or tenancy and grant restitution of the premises to the owner. The court must not order abatement of the premises if the court:

(a) cancels a lease or tenancy and grants restitution of that portion of the premises to the owner; and

(b) further finds that the acts constituting the nuisance as defined in section 617.81, subdivision 2, were committed by the tenant or lessee whose lease or tenancy has been canceled pursuant to this section and the tenant or lessee was not committing the acts in conjunction with or under the control of the owner."

Delete the title and insert:

"A bill for an act relating to the operation of state government; crime and crime prevention; appropriating money for the judicial branch, public safety, public defense, corrections, human rights, and related purposes; increasing and prescribing criminal penalties for a variety of offenses; increasing penalties for certain controlled substance offenses; clarifying provisions of the Community Notification Act; expanding and clarifying the sex offender registration law; authorizing a teen court program; clarifying and expanding crime victim rights; providing additional protections to children; providing for increased access by peace officers to juvenile records; creating a statewide criminal gang council and a criminal gang strike force to improve the investigation and prosecution of gang-related crime; increasing protections for correctional employees who are assaulted by inmates; clarifying the powers of the ombudsman for corrections; restricting certain computer uses by inmates; clarifying laws relating to probation; clarifying elements of the harassment and stalking crime; amending Minnesota Statutes 1996, sections 144.761, subdivisions 5 and 7; 144.762, subdivision 2, and by adding a subdivision; 144.765; 151.40; 152.01, subdivision 18, and by adding a subdivision; 152.02, subdivisions 2 and 5; 152.021, subdivisions 1, 2, and 3; 152.022, subdivisions 1, 2, and 3; 152.023, subdivisions 2 and 3; 152.024, subdivision 1; 152.029; 169.042, subdivision 1; 169.20, subdivision 5; 169.797, subdivision 3; 171.29, subdivision 2; 241.42, subdivision 2; 241.44, subdivision 1, and by adding a subdivision; 242.19, subdivision 3; 243.166, subdivisions 1, 2, 3, and 4; 244.052, subdivisions 3, 4, 5, and 6; 256E.03, subdivision 2; 256F.09, subdivisions 2 and 3; 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 2, 3, and by adding a subdivision; 260.165, subdivision 3; 260.1735; 260.191, subdivisions 3a, 3b, and 4; 260.192; 260.221, subdivisions 1 and 5; 260.241, subdivisions 1 and 3; 260.311, subdivision 1; 299A.61, subdivision 1; 299A.63, subdivision 4; 299C.10, subdivision 4; 299C.65, by adding a subdivision; 299D.07; 299F.051; 299F.06, subdivision 3; 363.073, subdivision 1; 388.23, subdivision 1; 480.30, subdivision 1; 504.181, subdivision 1; 518.10; 518.175, subdivision 5, and by adding a subdivision; 518.179, subdivision 2; 518B.01, subdivisions 4, 8, 14, and 17; 566.05; 566.18, subdivision 6; 609.02, by adding a subdivision; 609.035, subdivision 1, and by adding a subdivision; 609.10; 609.101, subdivision 5; 609.115, subdivision 1; 609.125; 609.135, subdivisions 1, 2, 7, and by adding subdivisions; 609.15, subdivision 1; 609.221; 609.2231, by adding subdivisions; 609.2244; 609.2245, subdivision 2; 609.3451, subdivision 3; 609.3461, subdivisions 1 and 2; 609.347, subdivision 7; 609.487, subdivision 3; 609.495, subdivision 1; 609.498, by adding subdivisions; 609.52, subdivision 2; 609.746, subdivision 1; 609.749, subdivisions 1, 2, 5, and by adding a subdivision; 609.78; 611.27, subdivision 4, and by adding a subdivision; 611A.01; 611A.035; 611A.038; 611A.039, subdivision 1; 611A.04, by adding a subdivision; 611A.361, by adding a subdivision; 611A.52, subdivisions 6 and 8; 611A.53, subdivision 1b; 611A.675; 611A.71, subdivisions 5 and 7; 611A.74, subdivisions 1, 3, and by adding a subdivision; 617.23; 617.82; 617.85; 629.725; and 631.07; Laws 1995, chapter 226, article 3, section 60, subdivision 4; and Laws 1996, chapter 408, article 1, section 6, subdivision 6; proposing coding for new law in Minnesota Statutes,


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chapters 241; 243; 244; 257; 259; 260; 299A; 299F; 609; 611A; and 626; repealing Minnesota Statutes 1996, sections 259.33; 299A.01, subdivision 6; and 299F.07; Minnesota Rules, parts 7419.0100; 7419.0200; 7419.0300; 7419.0400; 7419.0500; 7419.0600; 7419.0700; and 7419.0800."

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.

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

S. F. No. 1881, A bill for an act relating to the organization and operation of state government; appropriating money for the department of transportation and other agencies with certain conditions; regulating certain activities and practices; providing for fees; establishing revolving account; requiring a study; amending Minnesota Statutes 1996, sections 16B.335, subdivision 1; 161.082, by adding a subdivision; 168.011, subdivision 9; 168.018; 168A.29, subdivision 1; 169.974, subdivision 2; 171.06, subdivision 2a; 171.13, by adding a subdivision; 173.13, subdivision 4; 296.16, subdivision 1; 360.015, by adding a subdivision; 360.017, subdivision 1; and 457A.04, subdivision 2; proposing coding for new law in Minnesota Statutes, chapter 299A; repealing Minnesota Statutes 1996, section 299D.10.

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

Page 2, line 23, delete "$1,340,744,000" and insert "$1,339,861,000" and delete "$1,343,091,000" and insert "$1,342,057,000"

Page 8, line 40, delete "$5,550,000" and insert "$5,500,000"

With the recommendation that when so amended the bill pass.

The report was adopted.

CALL OF THE HOUSE

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

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

Journal of the House - 43rd Day - Top of Page 2580
Dorn Johnson, A. Macklin Ozment Stang Spk. Carruthers
Entenza Johnson, R. Mahon Paulsen Sviggum

Winter moved that further proceedings of the roll call be suspended and that the Sergeant at Arms be instructed to bring in the absentees. The motion prevailed and it was so ordered.

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

S. F. No. 1908, A bill for an act relating to the operation of state government services; appropriating money for the operation of the departments of human services and health, the veterans home board, the health related boards, the disability council, the ombudsman for families, and the ombudsman for mental health and mental retardation; including provisions for agency management; children's programs; basic health care programs; medical assistance and general assistance medical care; long-term care; state-operated services; mental health and developmentally disabled; MinnesotaCare; child support enforcement; assistance to families; health department; amending Minnesota Statutes 1996, sections 13.99, by adding a subdivision; 16A.124, subdivision 4b; 62D.04, subdivision 5; 62E.02, subdivision 13; 62E.14, by adding a subdivision; 103I.101, subdivision 6; 103I.208; 103I.401, subdivision 1; 144.0721, subdivision 3; 144.121, subdivision 1, and by adding subdivisions; 144.125; 144.2215; 144.226, subdivision 1, and by adding a subdivision; 144.394; 144A.071, subdivisions 1, 2, and 4a; 144A.073, subdivision 2; 145.925, subdivision 9; 153A.17; 157.15, by adding subdivisions; 157.16, subdivision 3; 245.03, subdivision 2; 245.4882, subdivision 5; 245.493, subdivision 1, and by adding a subdivision; 245.652, subdivisions 1 and 2; 245.98, by adding a subdivision; 246.02, subdivision 2; 252.025, subdivisions 1, 4, and by adding a subdivision; 252.28, by adding a subdivision; 252.32, subdivisions 1a, 3, 3a, 3c, and 5; 254.04; 254B.02, subdivisions 1 and 3; 254B.04, subdivision 1; 254B.09, subdivisions 4, 5, and 7; 256.01, subdivision 2, and by adding a subdivision; 256.025, subdivisions 2 and 4; 256.045, subdivisions 3, 3b, 4, 5, 7, 8, and 10; 256.476, subdivisions 2, 3, 4, and 5; 256.82, subdivision 1, and by adding a subdivision; 256.871, subdivision 6; 256.935; 256.969, subdivision 1; 256.9695, subdivision 1; 256B.037, subdivision 1a; 256B.04, by adding a subdivision; 256B.056, subdivisions 4, 5, and 8; 256B.0625, subdivisions 13 and 15; 256B.0626; 256B.0627, subdivision 5, and by adding a subdivision; 256B.064, subdivisions 1a, 1c, and 2; 256B.0911, subdivisions 2 and 7; 256B.0912, by adding a subdivision; 256B.0913, subdivisions 10, 14, 15, and by adding a subdivision; 256B.0915, subdivision 3, and by adding a subdivision; 256B.19, subdivisions 1, 2a, and 2b; 256B.421, subdivision 1; 256B.431, subdivision 25, and by adding a subdivision; 256B.433, by adding a subdivision; 256B.434, subdivisions 2, 3, 4, 9, and 10; 256B.48, subdivision 6; 256B.49, subdivision 1, and by adding a subdivision; 256B.69, subdivisions 2, 3a, 5, 5b, and by adding subdivisions; 256D.03, subdivisions 2, 2a, 3b, and 6; 256D.36; 256F.11, subdivision 2; 256G.02, subdivision 6; 256G.05, subdivision 2; 256I.05, subdivision 1a, and by adding a subdivision; 256J.50, by adding a subdivision; 326.37, subdivision 1; 393.07, subdivision 2; 466.01, subdivision 1; 469.155, subdivision 4; 471.59, subdivision 11; 626.556, subdivisions 10b, 10d, 10e, 10f, 11c, and by adding a subdivision; 626.558, subdivisions 1 and 2; and 626.559, subdivision 5; Laws 1995, chapter 207, articles 6, section 115; and 8, section 41, subdivision 2; proposing coding for new law in Minnesota Statutes, chapters 144; 145A; 157; 252; 256B; and 257; repealing Minnesota Statutes 1996, sections 145.9256; 256.026; 256.82, subdivision 1; 256B.041, subdivision 5; 256B.0625, subdivision 13b; 256B.19, subdivision 1a; and 469.154, subdivision 6; Minnesota Rules, part 9505.1000.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"ARTICLE 1

APPROPRIATIONS

Section 1. [HEALTH AND HUMAN SERVICES APPROPRIATIONS.]

The sums shown in the columns marked "APPROPRIATIONS" are appropriated from the general fund, or any other fund named, to the agencies and for the purposes specified in the following sections of this article, to be available for the fiscal years indicated for each purpose. The figures "1998" and "1999" where used in this article, mean that the appropriation or


Journal of the House - 43rd Day - Top of Page 2581

appropriations listed under them are available for the fiscal year ending June 30, 1998, or June 30, 1999, respectively. Where a dollar amount appears in parentheses, it means a reduction of an appropriation.

SUMMARY BY FUND

APPROPRIATIONS BIENNIAL

1998 1999 TOTAL

General $2,549,029,000 $2,738,314,000$5,287,343,000

Health Care Access -0- -0- -0-

State Government Special Revenue 32,412,000 34,251,000 66,663,000

Metropolitan Landfill Contingency

Action Fund 193,000 193,000 386,000

Minnesota Resources 150,000 -0- 150,000

Trunk Highway 1,652,000 1,678,0003,300,000

TOTAL 2,583,436,000 2,774,436,000 5,357,872,000

APPROPRIATIONS

Available for the Year

Ending June 30

1998 1999

Sec. 2. COMMISSIONER OF HUMAN SERVICES

Subdivision 1. Total Appropriation 2,466,382,000 2,654,862,000

Summary by Fund

General 2,465,929,000 2,654,400,000

Health Care Access -0- -0-

State Government

Special Revenue 453,000 462,000

Subd. 2. Agency Management

General 25,711,000 25,131,000

Health Care Access -0- -0-

State Government

Special Revenue 342,000 350,000

The amounts that may be spent from the appropriation for each purpose are as follows:

(a) Financial Operations

General 8,073,000 7,255,000

Health Care Access -0- -0-

[RECEIPTS FOR SYSTEMS PROJECTS.] Appropriations and federal receipts for information system projects for MAXIS, electronic benefit system, social services information system, child support enforcement, and Minnesota medicaid information system (MMIS II) must be deposited in the state system account authorized in Minnesota Statutes,


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section 256.014. Money appropriated for computer projects approved by the information policy office, funded by the legislature, and approved by the commissioner of finance may be transferred from one project to another and from development to operations as the commissioner of human services considers necessary. Any unexpended balance in the appropriation for these projects does not cancel but is available for ongoing development and operations.

(b) Legal & Regulation Operations

General 6,158,000 6,146,000

Health Care Access -0- -0-

State Government

Special Revenue 342,000 350,000

[CHILD CARE LICENSING; FIRE MARSHALL ASSISTANCE.] Of this amount, $200,000 for the biennium is for the commissioner to add two deputy state fire marshall positions in the licensing division. These positions are to improve the speed of licensing child care programs, to provide technical assistance to applicants and providers regarding fire safety, and to improve communication between licensing staff and fire officials. The state fire marshall shall train and supervise the positions. The state fire marshall and the department shall develop an interagency agreement outlining the responsibilities and authorities for these positions, and continuation of cooperation to inspect programs that exceed the resources of these two positions. Unexpended funds for fiscal year 1998 do not cancel but are available to the commissioner for these purposes for fiscal year 1999.

(c) Management Operations

General 11,480,000 11,730,000

Health Care Access -0- -0-

[COMMUNICATION COSTS.] The commissioner shall continue to operate the department of human services communication systems account established in Laws 1993, First Special Session chapter 1, article 1, section 2, subdivision 2, to manage shared communication costs necessary for the operation of the programs the commissioner supervises. A communications account may also be established for each regional treatment center which operates communication systems. Each account shall be used to manage shared communication costs necessary for the operation of programs the commissioner supervises. The commissioner may distribute the costs of operating and maintaining communication systems to participants in a manner that reflects actual usage. Costs may include acquisition, licensing, insurance, maintenance, repair, staff time, and other costs as determined by the commissioner. Nonprofit organizations and state, county, and local government agencies involved in the operation of programs the commissioner supervises may participate in the use of the department's communication technology and share in the cost of operation. The


Journal of the House - 43rd Day - Top of Page 2583

commissioner may accept on behalf of the state any gift, bequest, devise, or personal property of any kind, or money tendered to the state for any lawful purpose pertaining to the communication activities of the department. Any money received for this purpose must be deposited in the department of human services communication systems accounts. Money collected by the commissioner for the use of communication systems must be deposited in the state communication systems account and is appropriated to the commissioner for purposes of this section.

[ISSUANCE OPERATIONS CENTER.] Payments to the commissioner from other governmental units and private enterprises for (1) services performed by the issuance operations center, or (2) reports generated by the payment and eligibility systems must be deposited in the state systems account authorized in Minnesota Statutes, section 256.014. These payments are appropriated to the commissioner for the operation of the issuance center or system, in accordance with Minnesota Statutes, section 256.014.

Subd. 3. Children's Grants

General 38,027,000 40,527,000

[GRANT TO PROMOTE COMPLIANCE WITH INDIAN CHILD WELFARE ACT.] Of this appropriation, $90,000 each year is for the commissioner to provide grants according to Minnesota Statutes, section 257.3571, subdivision 2a, to the Indian child welfare defense corporation to promote statewide compliance with the Indian Child Welfare Act.

[CHILDREN'S MENTAL HEALTH.] Of this appropriation, $500,000 in fiscal year 1998 and $1,000,000 in fiscal year 1999 is for the commissioner to award grants to counties for children's mental health services. These grants may be used to provide any of the following services specified in Minnesota Statutes, section 245.4871; family community support services under subdivision 17; day treatment services under subdivision 10; case management services under subdivision 3; professional home-based family treatment under subdivision 31; and outpatient services under subdivision 29. Grant funds must be used to provide services according to an individual family community support plan under Minnesota Statutes, section 245.4882, subdivision 4, that must be developed using a process that respects the consumer's identified cultural community and enhances consumer empowerment.

In awarding these grants to counties, the commissioner shall work with the state advisory council on mental health to ensure that the process for awarding funds addresses the unmet need for services under Minnesota Statutes, sections 245.487 to 245.4888. The commissioner shall also ensure that these grant funds are not used to replace existing funds, and that these grant funds are used to enhance service capacity at the community level consistent with Minnesota Statutes, sections 245.487 to 245.4888.


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Subd. 4. Children's Services Management

General 3,161,000 3,192,000

Subd. 5. Basic Health Care Grants

Summary by Fund

General 819,924,000938,440,000

Health Care Access -0- -0-

The amounts that may be spent from this appropriation for each purpose are as follows:

(a) Minnesota Care Grants

Health Care Access -0- -0-

(b) MA Basic Health Care Grants - Families and Children

General 315,298,000365,302,000

(c) MA Basic Health Care Grants - Elderly & Disabled

General 335,659,000 404,346,000

[PUBLIC HEALTH NURSE ASSESSMENT.] The reimbursement for public health nurse visits relating to the provision of personal care services under Minnesota Statutes, sections 256B.0625, subdivision 19a, and 256B.0627, is $204.36 for the initial assessment visit and $102.18 for each reassessment visit.

[SURCHARGE COMPLIANCE.] In the event that federal financial participation in the Minnesota medical assistance program is reduced as a result of a determination that Minnesota is out of compliance with Public Law Number 102-234 or its implementing regulations or with any other federal law designed to restrict provider tax programs or intergovernmental transfers, the commissioner shall appeal the determination to the fullest extent permitted by law and may ratably reduce all medical assistance and general assistance medical care payments to providers other than the state of Minnesota in order to eliminate any shortfall resulting from the reduced federal funding. Any amount later recovered through the appeals process shall be used to reimburse providers for any ratable reductions taken.

(d) General Assistance Medical Care

General 168,967,000168,792,000

Health Care Access -0- -0-


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[GAMC AND HEALTH CARE ACCESS FUND.] The appropriation from the health care access fund for fiscal year 1998 shall be used for general assistance medical care expenditures for: (1) adults with dependent children under 21 whose gross family income is equal to or less than 275 percent of the federal poverty guidelines; and (2) adults without children with earned income and whose family gross income is between 75 percent of the federal poverty guidelines and the amount set by Minnesota Statutes, section 256.9354, subdivision 5.

[TUBERCULOSIS COST OF CARE.] Of the general fund appropriation, $89,000 for the biennium is for the cost of care that is required to be paid by the commissioner under Minnesota Statutes, section 144.4872, to diagnose or treat tuberculosis carriers.

Subd. 6. Basic Health Care Management

General 23,977,000 24,583,000

Health Care Access -0- -0-

[CONSUMER-OWNED HOUSING REVOLVING ACCOUNT.] Effective the day following final enactment, for the fiscal year ending June 30, 1997, the commissioner of human services may transfer $25,000 of the appropriation for basic health care management to the commissioner of the Minnesota housing finance agency to establish an account to finance the underwriting requirements of the federal national mortgage association pilot program for persons with disabilities. Any unexpended balance in this account does not cancel, but is available to the commissioner of the Minnesota housing finance agency for the ongoing purposes of the account.

(a) Health Care Policy Administration

General 4,281,000 4,316,000

Health Care Access -0- -0-

[CONSUMER SATISFACTION SURVEY.] Any federal matching money received through the medical assistance program for the consumer satisfaction survey is appropriated to the commissioner for this purpose. The commissioner may expend the federal money received for the consumer satisfaction survey in either year of the biennium.

(b) Health Care Operations

General 19,696,000 20,267,000

Health Care Access -0- -0-

[PREPAID MEDICAL PROGRAMS.] The nonfederal share of the prepaid medical assistance program funds, which are appropriated to fund county managed care advocacy and enrollment operating costs, shall be disbursed as grants using either a reimbursement or block grant


Journal of the House - 43rd Day - Top of Page 2586

mechanism. This appropriation may also be transferred between grants and a nongrant mechanism, and between grants and nongrant administration costs, with the approval of the commissioner of finance.

[SYSTEMS CONTINUITY.] In the event of disruption of technical systems or computer operations, the commissioner of human services may use available grant appropriations to ensure continuity of payments for maintaining the health, safety, and well-being of clients served by programs administered by the department of human services. Grant funds must be used in a manner consistent with the original intent of the appropriation.

Subd. 7. State-Operated Services

General 208,471,000 205,106,000

The amounts that may be spent from this appropriation for each purpose are as follows:

(a) RTC Facilities

General 193,738,000 189,050,000

[MITIGATION RELATED TO DD DOWNSIZING AND MH PILOTS.] Money appropriated to finance mitigation expenses related to the downsizing of regional treatment center developmental disabilities programs and the establishment of mental health pilot projects may be transferred between fiscal years within the biennium.

[FUNDING FOR GRAVE MARKERS.] Of this appropriation, $200,000 for the biennium ending June 30, 1999, is for the commissioner to fund markers with the names of individuals whose graves are located at regional treatment centers. This appropriation is available only after all reasonable efforts have been made to acquire funds from private sources to fund the markers, and after the private funds collected, if any, have been exhausted.

[RTC CHEMICAL DEPENDENCY PROGRAMS.] When the operations of the regional treatment center chemical dependency fund created in Minnesota Statutes, section 246.18, subdivision 2, are impeded by projected cash deficiencies resulting from delays in the receipt of grants, dedicated income, or other similar receivables, and when the deficiencies would be corrected within the budget period involved, the commissioner of finance may transfer general fund cash reserves into this account as necessary to meet cash demands. The cash flow transfers must be returned to the general fund in the fiscal year that the transfer was made. Any interest earned on general fund cash flow transfers accrues to the general fund and not the regional treatment center chemical dependency fund.


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[RTC PILOT PROJECT.] The commissioner may authorize the regional treatment centers to enter into contracts with health plans that provide services to publicly funded clients to provide services within the diagnostic categories related to mental illness and chemical dependency, provided that the revenue is sufficient to cover actual costs. Regional treatment centers may establish revenue-based acute care services to be provided under these contracts, separate from the appropriation-based services otherwise provided at the regional treatment center. The appropriation to the regional treatment centers may be used to cover start-up costs related to these services, offset by revenue. The commissioner, in conjunction with the commissioner of administration, is authorized to modify state contract procedures that would otherwise impede pilot projects in order for the facility to participate in managed care activities. The commissioner may delegate the execution of these contracts to the chief executive officer of the regional treatment center. The commissioner shall report by January 15, 1998, to the house health and human services and senate health and family security committees on pilot project development and implementation.

[CAMBRIDGE REGIONAL HUMAN SERVICES CENTER.] (a) The commissioner shall maintain capacity at Cambridge regional human services center and shall continue to provide residential and crisis services at Cambridge for persons with complex behavioral and social problems committed by the courts from the Faribault regional center and Cambridge regional human services center catchment areas. Campus programs shall operate with the aim of facilitating the return of individuals with clinically complex behavior and social problems to community settings and shall maintain sufficient support services on campus as needed by the programs.

(b) The commissioner shall develop and present a plan and recommendations to the legislature by January 15, 1998, for the second phase of the Minnesota extended treatment options (METO) program at Cambridge regional human services center to serve persons with developmental disabilities who pose a public risk. Phase two may increase the on-campus program capacity of METO by at least 36 additional beds.

[RTC RESTRUCTURING.] For purposes of restructuring the regional treatment centers and state nursing homes, any regional treatment center or state nursing home employee whose position is to be eliminated shall be afforded the options provided in applicable collective bargaining agreements. All salary and mitigation allocations from fiscal year 1998 shall be carried forward into fiscal year 1999. Provided there is no conflict with any collective bargaining agreement, any regional treatment center or state nursing home position reduction must only be accomplished through mitigation, attrition, transfer, and other measures as provided in state or applicable collective bargaining agreements and in Minnesota Statutes, section 252.50, subdivision 11, and not through layoff.


Journal of the House - 43rd Day - Top of Page 2588

[RTC POPULATION.] If the resident population at the regional treatment centers is projected to be higher than the estimates upon which the medical assistance forecast and budget recommendations for the 1998-1999 biennium were based, the amount of the medical assistance appropriation that is attributable to the cost of services that would have been provided as an alternative to regional treatment center services, including resources for community placements and waivered services for persons with mental retardation and related conditions, is transferred to the residential facilities appropriation.

[REPAIRS AND BETTERMENTS.] The commissioner may transfer unencumbered appropriation balances between fiscal years for the state residential facilities repairs and betterments account and special equipment.

[PROJECT LABOR.] Wages for project labor may be paid by the commissioner of human services out of repairs and betterments money if the individual is to be engaged in a construction project or a repair project of short-term and nonrecurring nature. Compensation for project labor shall be based on the prevailing wage rates, as defined in Minnesota Statutes, section 177.42, subdivision 6. Project laborers are excluded from the provisions of Minnesota Statutes, sections 43A.22 to 43A.30, and shall not be eligible for state-paid insurance and benefits.

(b) State-Operated Community Services - MI Adults

General 3,907,000 3,976,000

(c) State-Operated Community Services - DD

General 10,826,000 12,080,000

Subd. 8. Continuing Care and Community Support Grants

General 1,078,205,000 1,152,992,000

The amounts that may be spent from this appropriation for each purpose are as follows:

(a) Community Services Block Grants

54,203,000 54,203,000

[CSSA TRADITIONAL APPROPRIATION.] Notwithstanding Minnesota Statutes, section 256E.06, subdivisions 1 and 2, the appropriations available under that section in fiscal years 1998 and 1999 must be distributed to each county proportionately to the aid received by the county in calendar year 1996. The commissioner, in consultation with counties, shall study the formula limitations in subdivision 2 of that section, and report findings and any recommendations for revision of the CSSA formula and its formula limitation provisions to the legislature by January 15, 1998.


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(b) Consumer Support Grants

1,757,000 1,757,000

(c) Aging Adult Service Grants

8,260,000 8,263,000

[OMBUDSMAN FOR OLDER MINNESOTANS.] Of this appropriation, $225,000 each year is for the board on aging's ombudsman for older Minnesotans to expand its activities relating to home care services and other non-institutional services, and to develop and implement a continuing education program for ombudsman volunteers.

[HEALTH CARE CONSUMER ASSISTANCE GRANTS.] (a) Of this appropriation, $125,000 in fiscal year 1998 and $125,000 in fiscal year 1999 is to the commissioner for the board on aging to award grants for health insurance counseling and assistance to the area agencies on aging.

(b) The board shall explore opportunities for obtaining alternative funding from nonstate sources, including contributions from individuals seeking health insurance counseling services.

[LIVING-AT-HOME/BLOCK NURSE PROGRAMS.] Of this appropriation, $620,000 each fiscal year is for the commissioner to provide funding to 31 additional living-at-home/block nurse programs; $70,000 for the biennium is for the commissioner to increase funding for certain living-at-home/block nurse programs so that funding for all programs is at the same level for each fiscal year; and $60,000 each fiscal year is for the commissioner to provide additional contract funding for the organization awarded the contract for the living-at-home/block nurse program.

[COUNTY MAINTENANCE; MEALS; AGING.] The supplemental funding for nutrition programs serving counties where congregate and home-delivered meals were locally financed prior to participation in the nutrition program of the Older Americans Act shall be awarded at no less than the same levels as in fiscal year 1997.

(d) Deaf and Hard-of-Hearing Services Grants

1,599,000 1,549,000

[ASSISTANCE DOGS.] Of this appropriation, $50,000 for the biennium is for the commissioner to provide grants to Minnesota nonprofit organizations that train or provide assistance dogs for persons with disabilities.


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[GRANT FOR SERVICES TO DEAF-BLIND CHILDREN AND PERSONS.] Of this appropriation, $200,000 for the biennium is for a grant to an organization that provides services to deaf-blind persons. The grant must be used to provide additional services to deaf-blind children and their families. Such services may include providing intervenors to assist deaf-blind children in participating in their communities, and family education specialists to teach siblings and parents skills to support the deaf-blind child in the family. The commissioner shall use a request-for-proposal process to award the grants in this paragraph.

Of this appropriation, $200,000 for the biennium is for a grant to an organization that provides services to deaf-blind persons. The grant must be used to provide assistance to deaf-blind persons who are working towards establishing and maintaining independence. The commissioner shall use a request-for-proposal process to award the grants in this paragraph.

[GRANT FOR SERVICES TO DEAF PERSONS WITH MENTAL ILLNESS.] Of this appropriation, $75,000 each year is for a grant to a nonprofit agency that serves deaf and hard-of-hearing adults with mental illness through residential programs and supported housing outreach activities. The grant must be used to expand community support services for deaf and hard-of-hearing adults with mental illness who use or wish to use sign language as their primary means of communication.

[ASSESSMENTS FOR DEAF, HARD-OF-HEARING AND DEAF-BLIND CHILDREN.] Of this appropriation, $200,000 each year is for the commissioner to establish a grant program for deaf, hard-of-hearing and deaf-blind children in the state. The grant program shall be used to provide specialized statewide psychological and social assessments, family assessments, and school and family consultation and training. Services provided through this program must be provided in cooperation with the Minnesota resource center; the department of children, families, and learning; the St. Paul-Ramsey health and wellness program serving deaf and hard-of-hearing people; and greater Minnesota community mental health centers.

(e) Mental Health Grants

47,603,000 48,681,000

[ADOLESCENT COMPULSIVE GAMBLING GRANT.] $125,000 for fiscal year 1998 and $125,000 for fiscal year 1999 shall be transferred by the director of the lottery from the lottery prize fund created under Minnesota Statutes, section 349A.10, subdivision 2, to the general fund. $125,000 for fiscal year 1998 and $125,000 for fiscal year 1999 is appropriated from the general fund to the commissioner for the purposes of a grant to a compulsive gambling council located in St. Louis county for a statewide compulsive gambling prevention and education project for adolescents.


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[WOMEN'S MENTAL HEALTH CRISIS SERVICES PILOT.] Of this appropriation, $250,000 in fiscal year 1998 is for the commissioner to develop a one-year pilot project community-based crisis center for women who are experiencing a mental health crisis as a result of childhood physical or sexual abuse. The commissioner shall provide a grant to Hennepin county to contract with a four-bed adult foster care facility to provide these services. The commissioner shall apply to the federal health care financing administration for all necessary waivers of the medical assistance requirements for funding of the mental health services so that the services provided through the pilot project may be reimbursed by medical assistance, effective July 1, 1998, or upon receipt of federal approval, whichever occurs first.

(f) Developmental Disabilities Support Grants

6,278,000 6,228,000

[EPILEPSY LIVING SKILLS.] Of this appropriation, $60,000 each year is for the purposes of providing increased funding for the living skills training program for persons with intractable epilepsy who need assistance in the transition to independent living. This amount must be included in the base amount for this program.

(g) Medical Assistance Long-Term Care Waivers and Home Care

237,254,000 273,979,000

[COUNTY WAIVERED SERVICES RESERVE.] Notwithstanding the provisions of Minnesota Statutes, section 256B.092, subdivision 4, and Minnesota Rules, part 9525.1830, subpart 2, the commissioner may approve written procedures and criteria for the allocation of home- and community-based waivered services funding for persons with mental retardation or related conditions which enables a county to maintain a reserve resource account. The reserve resource account may not exceed five percent of the county agency's total annual allocation of home- and community-based waivered services funds. The reserve may be utilized to ensure the county's ability to meet the changing needs of current recipients, to ensure the health and safety needs of current recipients, or to provide short-term emergency intervention care to eligible waiver recipients.

(h) Medical Assistance Long-Term Care Facilities

570,518,000 593,797,000

[ICF/MR AND NURSING FACILITY INFLATION.] The commissioner of human services shall grant inflation adjustments for nursing facilities with rate years beginning during the biennium according to Minnesota Statutes, section 256B.431, and shall grant inflation adjustments for intermediate care facilities for persons with mental retardation or related conditions with rate years beginning during the biennium according to Minnesota Statutes, section 256B.501.


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[ICF/MR RATE EXEMPTIONS.] For the rate year beginning October 1, 1997, the commissioner shall exempt ICF/MR facilities from reductions to the payment rates under Minnesota Statutes, section 256B.501, subdivision 5b, paragraph (d), clause (6), if the facility: (1) has had a settle-up payment rate established in the reporting year preceding the rate year for a one-time rate adjustment; (2) is a newly established facility; (3) is an A to B conversion project under the payment rule; (4) has a payment rate subject to a community conversion project under Minnesota Statutes, section 252.292; (5) has a payment rate established under Minnesota Statutes, section 245A.12 or 245A.13; or (6) is a facility created by the relocation of more than 25 percent of the capacity of a related facility during the reporting year.

(i) Alternative Care Grants

General 48,610,000 53,623,000

[PREADMISSION SCREENING TRANSFER.] Effective the day following final enactment, up to $40,000 of the appropriation for preadmission screening and alternative care for fiscal year 1997 may be transferred to the health care administration account to pay the state's share of county claims for conducting nursing home assessments for persons with mental illness or mental retardation as required by Public Law Number 100-203.

[ALTERNATIVE CARE TRANSFER.] Any money allocated to the alternative care program that is not spent for the purposes indicated does not cancel but shall be transferred to the medical assistance account.

[PREADMISSION SCREENING AMOUNT.] The preadmission screening payment to all counties shall continue at the payment amount in effect for fiscal year 1997.

[PAS/AC APPROPRIATION.] The commissioner may expend the money appropriated for preadmission screening and the alternative care program for these purposes in either year of the biennium.

(j) Group Residential Housing

General 62,115,000 69,276,000

k) Chemical Dependency Entitlement Grants

General 35,643,000 37,271,000

[CHEMICAL DEPENDENCY FUNDS TRANSFER.] $11,340,000 from the consolidated chemical dependency general reserve fund available in fiscal year 1998 is transferred to the general fund.

(l) Chemical Dependency Nonentitlement Grants

General 4,365,000 4,365,000


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[DETOXIFICATION TRANSPORTATION.] Any amounts remaining after detoxification transportation funds are allocated for fiscal year 1997 under Minnesota Statutes, section 254A.17, subdivision 3, do not cancel, but must be reallocated to counties in proportion to their unmet need. This provision is effective the day following final enactment.

Subd. 9. Continuing Care and Community Support Management

General 20,855,000 21,654,000

State Government

Special Revenue 111,000 112,000

[QUALITY ASSURANCE PILOT PROJECT.] (a) Of this appropriation, $114,200 each year is for the commissioner to transfer to the quality assurance commission for the purposes of Minnesota Statutes, section 256B.0951; $10,000 each year is for the commissioner to contract with an independent entity to conduct a financial review under Minnesota Statutes, section 256B.0955, paragraph (e); and $5,000 each year is for the commissioner to establish and implement an ongoing evaluation process under Minnesota Statutes, section 256B.0955, paragraph (d).

(b) Of this appropriation, $210,800 in fiscal year 1998 and $241,800 in fiscal year 1999 is for the commissioner to provide grants to counties participating in the alternative quality assurance licensing system under Minnesota Statutes, section 256B.0953. This appropriation shall be transferred to the counties that choose by January 15, 1998 to participate in the alternative licensing system beginning July 1, 1998. Each participating county shall receive a pro rata share of this appropriation, based upon the county's calendar year 1997 case management caseload for persons with developmental disabilities.

[JOINT-PURCHASER DEMO PROJECT START-UP.] Of this appropriation, $80,000 for the biennium ending June 30, 1999, is for a grant to the Goodhue and Wabasha public health board to be used for the development and start-up operational costs for a joint purchaser demonstration project described in Laws 1995, chapter 207, article 6, section 119, in Goodhue and Wabasha counties. This is a one-time appropriation and shall not become part of the base for the 2000-2001 biennial budget.

[PILOT PROJECT FOR ASSISTED LIVING SERVICES FOR SENIOR CITIZENS IN PUBLIC HOUSING.] Of this appropriation, $50,000 in fiscal year 1998 is for a pilot project to provide assisted living services for unserved and underserved frail elderly and disabled persons with a focus on those who experience language and cultural barriers. The project shall be designed to offer frail elderly persons an opportunity to receive community-based support services in a public housing setting to enable them to remain in their homes. The project shall also serve younger disabled persons on waiver programs who live in public housing and would otherwise be in nursing homes. The


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commissioner shall provide pilot project funding to Hennepin county to contract with the Korean service center at the Cedars high-rises. The center shall agree to do the following:

(1) facilitate or provide needed community support services while taking advantage of current local, state, and federal programs that provide services to senior citizens and handicapped individuals;

(2) negotiate appropriate agreements with the Minneapolis public housing authority and Hennepin county;

(3) ensure that all participants are screened for eligibility for services by Hennepin county;

(4) become a licensed home care service provider or subcontract with a licensed provider to deliver needed services;

(5) contract for meals to be provided through its congregate dining program; and

(6) form other partnerships as needed to ensure the development of a successful, culturally sensitive program for meeting the needs of Korean, Southeast Asian, and other frail elderly and disabled persons living in public housing in southeast Minneapolis.

The grantee must have the project evaluated by an outside evaluator, based on measurement standards developed by the commissioner. The grantee must submit the evaluation to the commissioner no later than December 15, 1999, and the commissioner must submit the evaluation with recommendations on the project's continuation and expansion by January 15, 2000.

[TRANSIT SERVICE SUBSIDIES.] The commissioner shall examine circumstances where providers receive state or federal funds for transit service operating subsidies or to purchase transit equipment, and receive medical assistance reimbursement for medical transportation services in amounts greater than the fee charged by the provider to persons from whom services are not reimbursed by medical assistance.

The commissioner's analysis may involve assistance from the commissioner of the department of health.

The commissioner shall submit a report on the study to the legislature by January 15, 1998.

Subd. 10. Economic Support Grants

General 213,790,000 211,036,000


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[GIFTS.] Notwithstanding any other law to the contrary, the commissioner may accept on behalf of the state additional funding from sources other than state funds for the purpose of financing assistance program grants costs or nongrant administrative costs. All such additional funding is appropriated to the commissioner for use as designated by the grantee of funding.

The amounts that may be spent from this appropriation for each purpose are as follows:

(a) Assistance to Families Grants

General 89,518,000110,688,000

(b) Assistance to Families - County Management

-0- -0-

(c) Work Grants

General 5,878,000 5,884,000

(d) Minnesota Family Investment Plan

General 27,433,000 5,037,000

[WELFARE REFORM CARRYOVER.] Unexpended grant funds for the statewide implementation of the Minnesota family investment program and employment and training programs and for the work first and work focused pilot programs appropriated in fiscal year 1998 for the implementation of welfare reform initiatives do not cancel and are available to the commissioner for these purposes in fiscal year 1999.

(e) Aid to Families With Dependent Children

General 619,000 -0-

[AFDC SUPPLEMENTARY GRANTS.] Of the appropriation for aid to families with dependent children, the commissioner shall provide supplementary grants not to exceed $200,000 a year for aid to families with dependent children until the AFDC program no longer exists. The commissioner shall include the following costs in determining the amount of the supplementary grants: major home repairs, repair of major home appliances, utility recaps, supplementary dietary needs not covered by medical assistance, and replacements of furnishings and essential major appliances.

[CASH BENEFITS IN ADVANCE.] The commissioner, with the advance approval of the commissioner of finance, is authorized to issue cash assistance benefits up to three days before the first day of each month, including three days before the start of each state fiscal year. Of


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the money appropriated for cash assistance grants for each fiscal year, up to three percent of the annual state appropriation is available to the commissioner in the previous fiscal year. If that amount is insufficient for the costs incurred, an additional amount of the appropriation as needed may be transferred with the advance approval of the commissioner of finance. This paragraph is effective the day following final enactment.

(f) Child Support Enforcement

General 5,790,000 5,372,000

[CHILD SUPPORT PAYMENT CENTER.] Payments to the commissioner from other governmental units, private enterprises, and individuals for services performed by the Child Support Payment Center must be deposited in the state systems account authorized in Minnesota Statutes, section 256.014. These payments are appropriated to the commissioner for the operation of the Child Support Payment Center or system, in accordance with Minnesota Statutes, section 256.014.

[CHILD SUPPORT ENFORCEMENT PAYMENT CENTER RECOUPMENT ACCOUNT.] The child support enforcement payment center is authorized to establish an account to cover checks issued in error or in cases where insufficient funds are available to pay the checks. All recoupments against payments from the account must be deposited in the child support enforcement payment center recoupment account and are appropriated to the commissioner for the purposes of the account. Any unexpended balance in the account does not cancel, but is available until expended. For the period June 1, 1997, to June 30, 1997, the commissioner may transfer general fund administrative money to the child support enforcement payment center recoupment account to cover underfinanced and unfunded checks during this period only. This paragraph is effective the day following final enactment.

[CHILD SUPPORT ENFORCEMENT CARRYOVER.] Unexpended funds for child support enforcement grants and county performance incentives for fiscal year 1998 do not cancel but are available to the commissioner for these purposes for fiscal year 1999.

[COOPERATION FOR CHILDREN, PARENT EDUCATION.] Of this appropriation the commissioner shall transfer to the state court administrator $100,000 in fiscal year 1998 and $100,000 in fiscal year 1999 for the implementation of the cooperation for the children program and the parent education program. The commissioner shall also request all federal funds available for visitation access grants under the authority of the Personal Responsibility and Work Opportunity Act of 1996. The commissioner may accept on behalf of the state any federal funding for the purpose of financing visitation access programs and shall transfer any funds received for this purpose to the state court administrator for implementation of the parent education program and the cooperation for the children program. The state court administrator shall monitor, evaluate and report on such programs in accordance with any applicable federal regulations.


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[CHILD SUPPORT ENFORCEMENT APPROPRIATIONS.] Of this appropriation for the biennium ending June 30, 1999, the commissioner shall transfer: $150,000 to the attorney general for the continuation of the public education campaign specified in Minnesota Statutes, section 8.35; and $68,000 to the attorney general for the purposes specified in Minnesota Statutes, section 518.575. Any balance remaining in the first year does not cancel, but is available in the second year.

(g) General Assistance

General 57,466,000 54,010,000

[GA STANDARD.] The commissioner shall set the monthly standard of assistance for general assistance units consisting of an adult recipient who is childless and unmarried or living apart from his or her parents or a legal guardian at $203.

(h) Minnesota Supplemental Aid

General 25,181,000 28,440,000

(i) Refugee Services

General 1,905,000 1,605,000

Subd. 11. Economic Support Management

General 33,808,000 31,739,000

Health Care Access -0- -0-

The amounts that may be spent from this appropriation for each purpose are as follows:

(a) Economic Support Policy Administration

General 10,731,000 9,013,000

[COMBINED MANUAL PRODUCTION COSTS.] The commissioner may increase the fee charged to, and may retain money received from, individuals and private entities in order to recover the difference between the costs of producing the department of human services combined manual and the subsidized price charged to individuals and private entities on January 1, 1996. This provision does not apply to government agencies and nonprofit agencies serving the legal or social service needs of clients.

[PLAN FOR TRIBAL OPERATION OF FAMILY ASSISTANCE PROGRAM.] Of this appropriation, $148,000 is for the commissioner to assist tribes in the development of a plan for providing state funds in support of a family assistance program administered by Indian tribes that have a reservation in Minnesota and that have federal approval to


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operate a tribal program. The commissioner and the tribes shall collaborate in the development of the plan. The plan shall be reported to the legislature no later than February 15, 1998.

[NEW CHANCE PROGRAM.] Of this appropriation, $140,000 each year is for a grant to the new chance program. The new chance program shall provide comprehensive services through a private, nonprofit agency to young parents in Hennepin county who have dropped out of school and are receiving public assistance. The program administrator shall report annually to the commissioner on skills development, education, job training, and job placement outcomes for program participants.

(b) Economic Support Policy Operations

General 28,477,000 28,126,000

Health Care Access -0- -0-

[CITIZENSHIP TRAINING.] The funds appropriated for citizenship training shall be awarded to nonprofit organizations through a competitive bidding process based on criteria established by the commissioner of human services. Notice of the availability of funds shall be published in the State Register.

[ELECTRONIC BENEFIT TRANSFER (EBT) COUNTY ALLOCATION.] Of the amount appropriated for electronic benefit transfer, an allocation shall be made each year to counties for EBT-related expenses. One hundred percent of the appropriation shall be allocated to counties based on each county's average monthly number of food stamp households as a proportion of statewide average monthly food stamp households for the fiscal year ending June 30, 1996.

[FRAUD PREVENTION AND CONTROL FUNDING.] Unexpended funds appropriated for the provision of program integrity activities for fiscal year 1998 are also available to the commissioner to fund fraud prevention and control initiatives, and do not cancel but are available to the commissioner for these purposes for fiscal year 1999. Unexpended funds may be transferred between the fraud prevention investigation program and fraud control programs to promote the provisions of Minnesota Statutes, sections 256.983 and 256.9861.

[TRIBAL OPERATION OF ASSISTANCE PROGRAMS; FEASIBILITY CONSIDERED.] The commissioner of human services, in consultation with the federally- recognized Indian tribes, the commissioner of children, families, and learning and the commissioner of economic security, shall explore the feasibility of having the federally-recognized Indian tribes administer or operate state and federally funded programs such as MFIP-S, diversionary assistance, food stamps, general assistance, emergency assistance, child support enforcement, and child care assistance. The exploration shall consider the state and federal funding needed for the programs under consideration.


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(c) Assistance to Families State Management

-0- -0-

Subd. 12. Federal TANF Funds

[TRANSFER TO TANF CHILD CARE.] Of this appropriation, $5,400,000 in fiscal year 1998 from the federal TANF block grant and $5,400,000 in fiscal year 1999 from the federal TANF block grant is transferred to the commissioner of children, families, and learning for the purposes of providing TANF child care assistance.

Sec. 3. COMMISSIONER OF HEALTH

Subdivision 1. Total Appropriation 81,475,000 80,371,000

Summary by Fund

General 59,395,000 58,271,000

Metropolitan Landfill Contingency

Action Fund 193,000 193,000

State Government

Special Revenue 21,737,000 21,907,000

Health Care Access -0- -0-

Minnesota Resources 150,000 -0-

[LANDFILL CONTINGENCY.] The appropriation from the metropolitan landfill contingency action fund is for monitoring well water supplies and conducting health assessments in the metropolitan area.

[FEES TO COVER COSTS, RECOVER DEFICITS.] The commissioner of health shall set fees to cover current program costs and recover deficits.

Subd. 2. Health Systems and Special Populations 56,195,000 56,098,000

Summary by Fund

General 47,096,000 47,026,000

State Government

Special Revenue 9,099,000 9,072,000

Health Care Access -0- -0-

[FEES; DRUG AND ALCOHOL COUNSELOR LICENSE.] When setting fees for the drug and alcohol counselor license, the department is exempt from Minnesota Statutes, section 16A.1285, subdivision 2.

[FEES; HEARING INSTRUMENT DISPENSER LICENSE.] When setting fees for the hearing instrument dispenser license, the department is exempt from Minnesota Statutes, section 16A.1285, subdivision 2.


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[STATE VITAL RECORDS REDESIGN PROJECT ACCOUNT.] The amount appropriated for the vital records redesign project shall be available until expended for ongoing development and operations.

[WIC PROGRAM.] Of this appropriation, $650,000 in 1998 is provided to maintain services of the program, $700,000 in 1998 and $700,000 in 1999 is added to the base level funding for the WIC food program in order to maintain the existing level of the program, and $100,000 in 1998 is for the commissioner to develop and implement an outreach program to apprise potential recipients of the WIC food program of the importance of good nutrition and the availability of the program.

[WIC TRANSFERS.] General fund appropriations for the women, infants, and children food supplement program (WIC) are available for either year of the biennium. Transfers of appropriations between fiscal years must be for the purpose of maximizing federal funds or minimizing fluctuations in the number of participants.

[LOCAL PUBLIC HEALTH FINANCING.] Of the appropriation, $6,026,000 in fiscal year 1998 and $5,255,000 in fiscal year 1999 is for local public health financing. Of this amount, $5,476,000 in fiscal year 1998 and $4,705,000 in fiscal year 1999 shall be distributed according to the community health services subsidy formula in Minnesota Statutes, section 145A.13. No more than $550,000 each year is for technical assistance provided by the commissioner under Minnesota Statutes, section 145A.12.

[JUVENILE ASSESSMENT CENTERS.] Of this appropriation, $500,000 each year of the biennium ending June 30, 1999, is for the commissioner to develop and pilot up to three juvenile assessment centers, in partnership with the commissioner of children, families and learning. The commissioner may transfer these appropriations to the commissioner of children, families, and learning and to other commissioners as appropriate. The centers will serve as central intake facilities for juveniles entering the juvenile justice system or involved in CHIPS proceedings; facilitate screening for risk factors for further involvement in the juvenile justice system; refer juveniles to appropriate service providers; and provide decision-makers with timely information.

[CARRYOVER; MINNESOTA CHILDREN WITH SPECIAL HEALTH NEEDS.] General fund appropriations for treatment services in the services for children with special health care needs program are available for either year of the biennium.

[HEALTH CARE ASSISTANCE FOR DISABLED CHILDREN INELIGIBLE FOR SSI.] Notwithstanding the requirements of Minnesota Rules, part 4705.0100, subpart 14, children who: (a) are eligible for medical assistance as of June 30, 1997, and become ineligible for medical assistance due to changes in supplemental security income disability standards for children enacted in (PRWORA)


Journal of the House - 43rd Day - Top of Page 2601

Public Law Number 104-193; and (b) are not eligible for MinnesotaCare, are eligible for health care services through Minnesota services for children with special health care needs under Minnesota Rules, parts 4705.0100 to 4705.1600 for the fiscal year ending June 30, 1998. The commissioner of health shall report to the legislature by March 1, 1998, on the number of children eligible under this provision, their health care needs, family income as a percentage of the federal poverty level, the extent to which families have employer-based health coverage, and recommendations on how to meet the future needs of children eligible under this provision.

[MERC TRUST FUND.] Of the general fund appropriation, $7,200,000 each year is for the medical education and research (MERC) trust fund established under Minnesota Statutes, section 62J.69. The commissioner may use up to $150,000 of this appropriation each year for the administration of the MERC trust fund.

[INDIAN DIABETES PREVENTION ACTIVITIES.] (a) Of this general fund appropriation, $90,000 in fiscal year 1998 is for development of a comprehensive school-based intervention program designed to reduce the risk factors associated with diabetes among American Indian school children in grades 1 through 4.

(b) Of this general fund appropriation, $90,000 in fiscal year 1999 is for the implementation of the program developed under paragraph (a). This appropriation is available only if matched by $1 of nonstate money for each $1 of the appropriation.

[HOME VISITING PROGRAMS.] (a) Of this appropriation, $140,000 in 1998 and $1,295,000 in 1999 is for the home visiting programs for infant care under Minnesota Statutes, section 145A.16. These amounts are available until June 30, 1999.

(b) Of this appropriation, $225,000 in 1998 and $180,000 in 1999 is to continue funding the home visiting programs that received one-year funding under Laws 1995, chapter 480, article 1, section 9. This amount is available until expended.

[FETAL ALCOHOL SYNDROME.] $1,000,000 is appropriated from the general fund to the commissioner of health for each year of the biennium ending June 30, 1999, to prevent and reduce harm from Fetal Alcohol Syndrome (FAS) and Fetal Alcohol Effect (FAE). Of this amount: (1) the commissioner shall transfer $50,000 in fiscal year 1998 and $50,000 in fiscal year 1999 to the commissioner of public safety to enforce Minnesota Statutes, section 340A.410, subdivision 4b, and to develop a training packet for alcohol beverage sales and service providers; and (2) the commissioner shall transfer $800,000 each year to the commissioner of human services to provide transitional chemical dependency services to pregnant women.


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Of the appropriation, $150,000 each year is for training health care providers to screen and refer pregnant women for alcohol abuse, identifying affected children and referring them to needed services, and designing and implementing a statewide plan to promote responsible drinking and reduce binge drinking, underage drinking, and fetal alcohol exposure.

[COMPLAINT INVESTIGATIONS.] Of the appropriation, $127,000 each year from the state government special revenue fund, and $88,000 each year from the general fund, is for the commissioner to conduct complaint investigations of nursing facilities, hospitals and home health care providers.

[HOME STAFFING STUDY.] The commissioner of health, in consultation with the commissioner of human services, shall study nursing home staffing to determine if Minnesota nursing homes are adequately staffed to assure high quality care of residents. The study shall examine:

(1) Whether nursing home staff levels and qualifications have changed to reflect the rising acuity levels of nursing home patients.

(2) Whether more training is necessary for nursing assistant and who care for sicker patients.

(3) The percentage of nursing care in nursing homes that is delivered by nursing assistants as opposed to licensed nurses, how this has changed over the past five years, and what the implications are for care.

(4) Whether the use of nursing pools or agencies has increased over the past five years, the implications of the use of pools for continuity of care and for costs to nursing homes, and whether a restriction on the use of nursing pools is advisable.

(5) Whether injury rates are related to staffing, and whether increased staffing would reduce injury rates, lead to greater continuity of care, and lower worker compensation costs to the nursing home industry.

(6) Whether high turnover rates and difficulty in attracting and retaining nursing assistant staff in nursing homes are related to low wages, and whether the state should provide wage enhancements for nursing assistants to bring wages to a level adequate to attract and retain good staff.

(7) Whether Minnesota should adopt new staffing standards for its nursing homes to reflect the increases in patients' acuity levels and the increased use of nursing assistants for nursing care, and whether the state should adopt a "ratio" standard that requires the number of licensed nurses and nursing assistants on staff to be based on the number of patients and the time of day.


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The commissioner shall present recommendations to the legislature by December 15, 1997.

Subd. 3. Health Protection 21,905,000 21,098,000

Summary by Fund

General 9,082,000 8,228,000

Metro Landfill Contingency

193,000 193,000

State Government

Special Revenue 12,480,000 12,677,000

Minnesota Resources 150,000 -0-

[DEMO PROJECTS FOR HIV EDUCATION IN SCHOOLS.] Of this appropriation, the commissioner shall transfer $300,000 for the biennium ending June 30, 1999, to the commissioner of children, families, and learning to establish a demonstration project to provide grants to school districts under Minnesota Statutes, section 121.203. In selecting participating districts the commissioner shall give first priority to school districts outside of the seven-county metropolitan area, and second priority to school districts in the seven-county metropolitan area other than the Minneapolis and St. Paul school districts. The commissioner shall issue a request for proposals by October 1, 1997, and shall select districts by December 15, 1997. The commissioner shall evaluate the projects, and by June 15, 1999, develop model programs for districts to implement Minnesota Statutes, section 121.203. This appropriation shall not become part of the base for 2000-2001 biennium.

[PREVENTION OF PERINATAL TRANSMISSION OF HIV.] Of this appropriation, $500,000 for the biennium is for activities related to prevention of perinatal transmission of HIV. Of this amount, $225,000 in fiscal year 1998 and $200,000 in fiscal year 1999 is to conduct a statewide education campaign for pregnant women and their health care providers, and $75,000 is for demonstration grants to providers to develop procedures for incorporating HIV awareness and education into perinatal care.

[EVALUATION REQUIRED.] Of this appropriation, $100,000 for the biennium is for the commissioner to evaluate the effects of Minnesota Statutes, section 151.40, subdivision 2, and Minnesota Statutes, section 152.01, subdivision 18, paragraph (b). The commissioner shall submit an interim evaluation report to the legislature by January 15, 2000, and a final report by January 15, 2002.

[PROVIDER REIMBURSEMENT FOR HEALTH CARE SERVICES TO CRIME VICTIMS.] Of this appropriation $25,000 each year is for the commissioner to reimburse health care providers for counseling, testing, and early intervention services provided to crime victims who requested the services.


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Subd. 4. Management and Support Services 3,375,000 3,175,000

Summary by Fund

General 3,217,000 3,017,000

Health Care Access -0- -0-

State Government

Special Revenue 158,000 158,000

[HEALTH DEPARTMENT COMPUTER PROJECTS.] Money appropriated for computer projects approved by the information policy office, funded by the legislature, and approved by the commissioner of finance does not cancel but is available for development and implementation.

[HOSPITAL CONVERSION.] Of the appropriation from the general fund, for the fiscal year ending June 30, 1998, the commissioner of health shall provide $75,000 to a 28-bed hospital located in Chisago county that is in the process of closing and converting to an outpatient and emergency services facility, for the facility's EMS and advanced life support services.

Sec. 4. VETERANS NURSING HOMES BOARD 20,709,000 24,342,000

[SPECIAL REVENUE ACCOUNT.] The general fund appropriations made to the veterans homes board shall be transferred to a veterans homes special revenue account in the special revenue fund in the same manner as other receipts are deposited in accordance with Minnesota Statutes, section 198.34, and are appropriated to the veterans homes board of directors for the operation of board facilities and programs.

[SETTING THE COST OF CARE.] The veterans homes board may set the cost of care at the Fergus Falls facility for fiscal year 1998 based on the cost of average skilled nursing care provided to residents of the Minneapolis veterans home for fiscal year 1998. The board may set the cost of care at the Fergus Falls facilities for fiscal year 1999 based on the cost of average skilled nursing care for residents of the Minneapolis veterans home for fiscal year 1999.

[LICENSED CAPACITY.] The department of health shall not reduce the licensed bed capacity for the Minneapolis veterans home pending completion of the project authorized by Laws 1990, chapter 610, article 1, section 9, subdivision 3.

[ALLOWANCE FOR FOOD.] The allowance for food may be adjusted annually to reflect changes in the producer price index, as prepared by the United States Bureau of Labor Statistics, with the approval of the commissioner of finance. Adjustments for fiscal year 1998 and fiscal year 1999 must be based on the June 1996 and June 1997 producer price index respectively, but the adjustment must be prorated if it would require money in excess of the appropriation.


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Sec. 5. HEALTH-RELATED BOARDS

Subdivision 1. Total Appropriation 9,598,000 9,618,000

[STATE GOVERNMENT SPECIAL REVENUE FUND.] The appropriations in this section are from the state government special revenue fund.

[NO SPENDING IN EXCESS OF REVENUES.] The commissioner of finance shall not permit the allotment, encumbrance, or expenditure of money appropriated in this section in excess of the anticipated biennial revenues or accumulated surplus revenues from fees collected by the boards. Neither this provision nor Minnesota Statutes, section 214.06, applies to transfers from the general contingent account.

Subd. 2. Board of Chiropractic Examiners 332,000 340,000

Subd. 3. Board of Dentistry 742,000 760,000

Subd. 4. Board of Dietetic and Nutrition Practice 90,000 90,000

Subd. 5. Board of Marriage and Family Therapy 103,000 104,000

Subd. 6. Board of Medical Practice 3,672,000 3,711,000

Of these appropriations, $291,000 the first year and $296,000 the second year are for the Health Professional Services Activity.

Subd. 7. Board of Nursing 2,067,000 2,106,000

[DISCIPLINE AND LICENSING SYSTEMS PROJECT.] Of this appropriation, $235,000 the first year and $235,000 the second year is to complete the implementation of the discipline and licensing systems project.

Subd. 8. Board of Nursing Home Administrators 177,000 181,000

Subd. 9. Board of Optometry 82,000 85,000

Subd. 10. Board of Pharmacy 1,020,000 1,040,000

Of these appropriations, $216,000 the first year and $222,000 the second year are for the health boards administrative services unit. The administrative services unit may receive and expend reimbursements for services performed for other agencies.

Subd. 11. Board of Podiatry 33,000 33,000

Subd. 12. Board of Psychology 424,000 436,000

Subd. 13. Board of Social Work 715,000 588,000


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Subd. 14. Board of Veterinary Medicine 141,000 144,000

Sec. 6. EMERGENCY MEDICAL SERVICES BOARD 2,791,0002,811,000

Summary by Fund

General 1,139,000 1,133,000

Trunk Highway 1,652,000 1,678,000

[CALS PROGRAM.] $206,000 is appropriated from the general fund to the emergency medical services regulatory board to be available until June 30, 1999. $200,000 of the appropriation is to implement the comprehensive advanced life support (CALS) program or similar program. $6,000 of the appropriation is for administrative costs of implementing the CALS program.

[EMS BOARD DATA COLLECTION.] Of this appropriation, $52,000 for the biennium ending June 30, 1999, is from the general fund to the emergency medical services regulatory to be used as start-up costs for the financial data collection system.

Sec. 7. COUNCIL ON DISABILITY 616,000 631,000

Sec. 8. OMBUDSMAN FOR MENTAL HEALTH AND MENTAL

RETARDATION 1,399,000 1,323,000

[CARRYOVER.] $25,000 of the appropriation from Laws 1995, chapter 207, article 1, section 7, does not cancel but is available until June 30, 1999.

Sec. 9. OMBUDSMAN FOR FAMILIES 157,000 161,000

Sec. 10. TRANSFERS

Subdivision 1. Grant Programs

The commissioner of human services, with the approval of the commissioner of finance, and after notification of the chair of the senate health care and family services finance division and the chair of the house health and human services finance division, may transfer unencumbered appropriation balances for the biennium ending June 30, 1999, within fiscal years among the aid to families with dependent children, Minnesota family investment program-statewide, Minnesota family investment plan, general assistance, general assistance medical care, medical assistance, Minnesota supplemental aid, and group residential housing programs, and the entitlement portion of the chemical dependency consolidated treatment fund, and between fiscal years of the biennium.


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Subd. 2. Approval Required

Positions, salary money, and nonsalary administrative money may be transferred within the departments of human services and health and within the programs operated by the veterans nursing homes board as the commissioners and the board consider necessary, with the advance approval of the commissioner of finance. The commissioner of finance shall inform the chairs of the house health and human services finance division and the senate health and family security budget division quarterly about transfers made under this provision.

Sec. 11. PROVISIONS

(a) Money appropriated to the commissioner of human services for the purchase of provisions within the item "current expense" must be used solely for that purpose. Money provided and not used for the purchase of provisions must be canceled into the fund from which appropriated, except that money provided and not used for the purchase of provisions because of population decreases may be transferred and used for the purchase of drugs and medical and hospital supplies and equipment with written approval of the governor after consultation with the legislative advisory commission.

(b) For fiscal year 1998, the allowance for food may be adjusted to the equivalent of the 75th percentile of the comparable raw food costs for community nursing homes as reported to the commissioner of human services. For fiscal year 1999 an adjustment may be made to reflect the annual change in the United States Bureau of Labor Statistics producer price index as of June 1998 with the approval of the commissioner of finance. The adjustments for either year must be prorated if they would require money in excess of this appropriation.

Sec. 12. CARRYOVER LIMITATION

None of the appropriations in this act which are allowed to be carried forward from fiscal year 1998 to fiscal year 1999 shall become part of the base level funding for the 2000-2001 biennial budget, unless specifically directed by the legislature.

Sec. 13. SUNSET OF UNCODIFIED LANGUAGE

All uncodified language contained in this article expires on June 30, 1999, unless a different expiration is explicit.

ARTICLE 2

HEALTH DEPARTMENT

Section 1. Minnesota Statutes 1996, section 13.99, is amended by adding a subdivision to read:

Subd. 32a. [BIRTH DEFECTS INFORMATION SYSTEM DATA.] Data in the birth defects information system maintained by the commissioner of health are classified in section 144.2217.


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Sec. 2. [62J.70] [AMBULANCE SERVICES FINANCIAL DATA.]

Subdivision 1. [ESTABLISHMENT.] The emergency medical services regulatory board established under chapter 144E shall establish a financial data collection system for all ambulance services licensed in this state. To establish the financial database, the emergency medical services regulatory board may contract with an entity that has experience in ambulance service financial data collection.

Subd. 2. [DATA CLASSIFICATION.] All financial data collected by the emergency medical services regulatory board shall be classified as nonpublic data under section 13.02, subdivision 9.

Sec. 3. Minnesota Statutes 1996, section 103I.101, subdivision 6, is amended to read:

Subd. 6. [FEES FOR VARIANCES.] The commissioner shall charge a nonrefundable application fee of $100 $120 to cover the administrative cost of processing a request for a variance or modification of rules adopted by the commissioner under this chapter.

Sec. 4. Minnesota Statutes 1996, section 103I.208, is amended to read:

103I.208 [WELL NOTIFICATION FILING FEES AND PERMIT FEES.]

Subdivision 1. [WELL NOTIFICATION FEE.] The well notification fee to be paid by a property owner is:

(1) for a new well, $100 $120, which includes the state core function fee; and

(2) for a well sealing, $20, which includes the state core function fee; and

(3) for construction of a dewatering well, $100 $120, which includes the state core function fee, for each well except a dewatering project comprising five or more wells shall be assessed a single fee of $500 $600 for the wells recorded on the notification.

Subd. 1a. [STATE CORE FUNCTION FEE.] The state core function fee to be collected by the state and delegated boards of health and used to support state core functions is:

(1) for a new well, $20; and

(2) for a well sealing, $5.

Subd. 2. [PERMIT FEE.] The permit fee to be paid by a property owner is:

(1) for a well that is not in use under a maintenance permit, $100 annually;

(2) for construction of a monitoring well, $100 $120, which includes the state core function fee;

(3) for a monitoring well that is unsealed under a maintenance permit, $100 annually;

(4) for monitoring wells used as a leak detection device at a single motor fuel retail outlet or petroleum bulk storage site excluding tank farms, the construction permit fee is $100 $120, which includes the state core function fee, per site regardless of the number of wells constructed on the site, and the annual fee for a maintenance permit for unsealed monitoring wells is $100 per site regardless of the number of monitoring wells located on site;

(5) for a groundwater thermal exchange device, in addition to the notification fee for wells, $100 $120, which includes the state core function fee;

(6) for a vertical heat exchanger, $100 $120; and


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(7) for a dewatering well that is unsealed under a maintenance permit, $100 annually for each well, except a dewatering project comprising more than five wells shall be issued a single permit for $500 annually for wells recorded on the permit; and

(8) for excavating holes for the purpose of installing elevator shafts, $120 for each hole.

Sec. 5. Minnesota Statutes 1996, section 103I.401, subdivision 1, is amended to read:

Subdivision 1. [PERMIT REQUIRED.] (a) A person may not construct an elevator shaft until a permit for the hole or excavation is issued by the commissioner.

(b) The fee for excavating holes for the purpose of installing elevator shafts is $100 for each hole.

(c) The elevator shaft permit preempts local permits except local building permits, and counties and home rule charter or statutory cities may not require a permit for elevator shaft holes or excavations.

Sec. 6. Minnesota Statutes 1996, section 144.121, subdivision 1, is amended to read:

Subdivision 1. [REGISTRATION; FEES.] The fee for the registration for X-ray machines and radium other sources of ionizing radiation required to be registered under rules adopted by the state commissioner of health pursuant to section 144.12, shall be in an amount prescribed by the commissioner as described in subdivision 1a pursuant to section 144.122. The first fee for registration shall be due on January 1, 1975. The registration shall expire and be renewed as prescribed by the commissioner pursuant to section 144.122.

Sec. 7. Minnesota Statutes 1996, section 144.121, is amended by adding a subdivision to read:

Subd. 1a. [FEES FOR X-RAY MACHINES AND OTHER SOURCES OF IONIZING RADIATION.] After July 1, 1997, a facility with x-ray machines or other sources of ionizing radiation must biennially pay an initial or biennial renewal registration fee consisting of a base facility fee of $132 and an additional fee for each x-ray machine or other source of ionizing radiation as follows:

(1) medical or veterinary equipment $106

(2) dental x-ray equipment $ 66

(3) accelerator $132

(4) radiation therapy equipment $132

(5) x-ray equipment not used on humans or animals $106

(6) devices with sources of ionizing radiation

not used on humans or animals $106

(7) sources of radium $198

Sec. 8. Minnesota Statutes 1996, section 144.121, is amended by adding a subdivision to read:

Subd. 1b. [PENALTY FEE FOR LATE REGISTRATION.] Applications for initial or renewal registrations submitted to the commissioner after the time specified by the commissioner shall be accompanied by a penalty fee of $20 in addition to the fees prescribed in subdivision 1a.

Sec. 9. Minnesota Statutes 1996, section 144.121, is amended by adding a subdivision to read:

Subd. 1c. [FEE FOR X-RAY MACHINES AND OTHER SOURCES OF IONIZING RADIATION REGISTERED DURING LAST 12 MONTHS OF A BIENNIAL REGISTRATION PERIOD.] The initial registration fee of x-ray machines or other sources of radiation required to be registered during the last 12 months of a biennial registration period will be 50 percent of the applicable registration fee prescribed in subdivision 1a.


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Sec. 10. [144.124] [TESTS OF NEWBORN INFANTS FOR HEARING LOSS.]

Subdivision 1. [LEGISLATIVE DECLARATION AND POLICY.] (a) The legislature hereby finds, determines, and declares:

(1) that hearing loss occurs in newborn infants more frequently than any other health condition for which newborn infant screening is currently required;

(2) that 80 percent of the language ability of a child is established by the time the child is 18 months of age, and that hearing is vitally important to the health development of language skills;

(3) that early detection of either mild or severe hearing loss in a child and early intervention has been determined to be highly effective in facilitating a child's healthy development in a manner consistent with the child's age and cognitive ability;

(4) that children with hearing loss who do not receive early intervention require special educational services, and that the costs of such publicly funded services exceed the costs of screening infants for hearing loss; and

(5) that appropriate testing and identification of newborn infants with hearing loss will facilitate early intervention, and may therefore promote the healthy development of children and reduce public expenditures.

(b) For these reasons, the legislature declares that it is the public policy of this state that every newborn infant should be screened for hearing loss unless the parents object on the grounds that a test would conflict with their religious beliefs.

Subd. 2. [PROGRAM IMPLEMENTATION.] (a) To accomplish the goal of screening all newborn infants for hearing loss, the commissioner of health shall work with hospitals, the medical community, audiologists, insurance companies, parents, and deaf and hard-of-hearing citizens to establish and implement a voluntary plan for hospitals and other health care facilities to screen all infants for hearing loss.

(b) The commissioner of health shall appoint a department work group to make recommendations to the commissioner on formulating a plan to achieve, on a voluntary basis, universal screening of infants for hearing loss. The work group shall include the following representatives:

(1) a representative of the health insurance industry designated by the health insurance industry;

(2) a representative of the Minnesota hospital and healthcare partnership;

(3) a total of two representatives from the following physician groups designated by the Minnesota medical association: pediatrics, family practice, and ENT;

(4) two audiologists designated by the Minnesota speech-language-hearing association and the Minnesota academy of audiology;

(5) a representative of hospital neonatal nurseries;

(6) a representative of Part H (IDEA) early childhood special education;

(7) the commissioner of health or a designee;

(8) a representative of the department of human services;

(9) a public health nurse;

(10) a parent of a deaf or hard-of-hearing child;

(11) a deaf or hard-of-hearing person; and


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(12) a representative of the Minnesota commission serving deaf and hard-of-hearing people.

Members of the work group shall not collect a per diem or compensation as provided in section 15.0575.

(c) The plan shall include the following:

(1) measurable goals and timetables for achieving universal screening of infants for hearing loss throughout the state; and

(2) the design and implementation of training necessary to assist hospitals and other health care facilities to screen infants for hearing loss according to recognized standards of care.

(d) The work group shall report to the legislature by January 1, 1998, on progress made toward achieving universal screening of infants in Minnesota to assist the legislature in determining whether this goal can be accomplished on a voluntary basis.

Sec. 11. Minnesota Statutes 1996, section 144.125, is amended to read:

144.125 [TESTS OF INFANTS FOR INBORN METABOLIC ERRORS.]

It is the duty of (1) the administrative officer or other person in charge of each institution caring for infants 28 days or less of age and (2) the person required in pursuance of the provisions of section 144.215, to register the birth of a child, to cause to have administered to every infant or child in its care tests for hemoglobinopathy, phenylketonuria, and other inborn errors of metabolism in accordance with rules prescribed by the state commissioner of health. In determining which tests must be administered, the commissioner shall take into consideration the adequacy of laboratory methods to detect the inborn metabolic error, the ability to treat or prevent medical conditions caused by the inborn metabolic error, and the severity of the medical conditions caused by the inborn metabolic error. Testing and the recording and reporting of the results of the tests shall be performed at the times and in the manner prescribed by the commissioner of health. The commissioner shall charge laboratory service fees for conducting the tests of infants for inborn metabolic errors so that the total of fees collected will approximate the costs of conducting the tests and implementing and maintaining a system to follow-up infants with inborn metabolic errors. Costs associated with capital expenditures and the development of new procedures may be prorated over a three-year period when calculating the amount of the fees.

Sec. 12. Minnesota Statutes 1996, section 144.2215, is amended to read:

144.2215 [BIRTH DEFECTS REGISTRY INFORMATION SYSTEM.]

Subdivision 1. [ESTABLISHMENT.] The commissioner of health shall develop a statewide birth defects registry system to provide for the collection, analysis, and dissemination of birth defects information. The commissioner shall consult with representatives and experts in epidemiology, medicine, insurance, health maintenance organizations, genetics, consumers, and voluntary organizations in developing the system and may phase in the implementation of the system establish a statewide population-based birth defects information system to collect, analyze, and disseminate information regarding the risk for and incidence of birth defects.

Subd. 2. [DUTIES OF COMMISSIONER.] The commissioner of health shall design the birth defects information system to allow the commissioner to:

(1) monitor incidence trends of birth defects to detect potential public health problems, predict risks, and assist in responding to birth defects clusters;

(2) more accurately target intervention resources for communities and individuals and their families after birth;

(3) inform health professionals and the public of the prevalence of and risks for birth defects; and

(4) promote high quality research to provide better information for the prevention of birth defects.


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Subd. 3. [EXTERNAL RESEARCH.] (a) For purposes of this subdivision, "external research" means any research other than research performed by the commissioner of health pursuant to sections 144.2215 to 144.2218. The commissioner may enter into contracts with public and private research entities or with individuals to conduct research using data collected pursuant to sections 144.2215 to 144.2218. To enter into a contract with the commissioner, the principal investigator of the research entity or the individual must:

(1) demonstrate that the research would be conducted for purposes consistent with subdivision 2;

(2) have obtained a professional or advanced academic degree and have significant training and research experience in epidemiology, medical research, or related areas;

(3) demonstrate that the research project has scientific merit; and

(4) provide the commissioner with a detailed written protocol which includes methods to maintain the privacy of the data according to state law.

(b) The commissioner may provide personal identifying information for external research only after obtaining the consent of the individual, or the individual's parent or guardian if the individual is a minor. External researchers are prohibited from releasing any identifying information relating to the individual or the reporting physician or institution.

(c) In determining whether an external researcher meets the criteria in paragraph (a), the commissioner shall consult with a scientific peer review committee consisting of at least five persons. Each member of the committee must have a professional or advanced academic degree and significant training and research experience in epidemiology, medical research, or related areas.

(d) After receiving a recommendation from the scientific peer review committee in paragraph (c), the commissioner may enter into a contract with the external researcher to perform authorized research. The contract must include a provision requiring the external researcher to maintain the privacy of the data.

Subd. 4. [NOTICE.] Within 30 days after making a determination to enter a case into the birth defects information system, the commissioner of health shall make a reasonable effort to notify the individual, or the individual's parent or guardian if the individual is a minor, that data on the individual has been entered into the system.

Subd. 5. [PILOT PROJECTS.] The commissioner of health shall evaluate and modify, as necessary, the birth defects information system using pilot projects. The commissioner shall use the results of the pilot projects to implement a refined birth defects information system statewide.

Subd. 6. [ADVISORY COMMITTEE.] The commissioner of health shall appoint an advisory committee of 16 members to advise the commissioner on the planning, implementation, evaluation, and review of the birth defects information system. The terms, compensation, and removal of members are governed by section 15.059, except that the members do not receive per diem compensation. Members of the advisory committee shall represent the geographical diversity of the state. Each of the following experts and representatives must be represented in the advisory committee: epidemiologist, public health specialist, physician, medical ethicist, geneticist, health care provider, health information management specialist, health insurance provider, parent of a child with a birth defect, and a representative of an organization that advocates for disabled individuals. The advisory committee shall expire on June 30, 2001.

Subd. 7. [REPORT.] The commissioner of health shall prepare and transmit to the governor and the legislature a report on the status and activities of the birth defects information system no later than January 15 of every odd-numbered year beginning in 1999.

Subd. 8. [FEES.] The commissioner of health may assess fees for the cost of preparing summary data, as defined in section 13.02, subdivision 19, and for the cost of preparing specific analyses of data requested by public and private agencies, organizations, and individuals. Fees may be assessed only if the out-of-pocket expenses exceed $100. For purposes of this subdivision, "out-of-pocket expenses" includes hourly employee wages, employee expenses, and other data processing and duplication costs.


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Sec. 13. [144.2216] [BIRTH DEFECTS RECORDS AND REPORTS REQUIRED.]

Subdivision 1. [PERSON PRACTICING HEALING ARTS.] A person licensed to practice the healing arts in any form, upon request of the commissioner of health, shall provide the commissioner with access to information or copies of reports on each birth defect case, subject to the limitations in subdivision 6, in the manner and at the times that the commissioner designates.

Subd. 2. [HOSPITALS AND SIMILAR INSTITUTIONS.] A hospital, medical clinic, medical laboratory, or other institution for the hospitalization, clinical or laboratory diagnosis, or care of human beings shall provide the commissioner of health with access to information or copies of reports on each birth defect case, subject to the limitations in subdivision 6, in the manner and at the times that the commissioner designates. This subdivision does not apply to institutions described in section 144A.09, subdivision 1.

Subd. 3. [OTHER DATA REPOSITORIES.] Other repositories of data on the diagnosis or care of human beings may provide the commissioner of health with access to information or copies of reports on each case of birth defects, subject to the limitations in subdivision 6, in the manner and at the times that the commissioner designates.

Subd. 4. [PATIENT CONSENT.] (a) For any release of health records to the commissioner under subdivision 1, 2, or 3, patient consent is not required pursuant to section 144.335, subdivision 3a, paragraph (a).

(b) For any release of health records when the commissioner contracts with an outside entity to conduct a study using data collected by the birth defects information system, the commissioner must comply with the requirements imposed on a provider under section 144.335, subdivision 3a, paragraph (d).

Subd. 5. [REPORTING WITHOUT LIABILITY.] Any person, hospital, medical clinic, medical laboratory, data repository, or other institution furnishing information under this section, in good faith, is immune from liability in any civil, criminal, administrative, or disciplinary action.

Subd. 6. [RELIGIOUS ACCOMMODATION.] A parent or guardian of an infant with birth defects may refuse disclosure to the information system of the infant's name and identifying information on the grounds that such birth defect identification is contrary to the religious tenets and practices of the infant's parent or guardian.

Subd. 7. [DATA COLLECTION.] Data shall not be collected sooner than the expected birth date of the child. In the case of pilot projects under section 144.2215, subdivision 5, data shall only be collected on individuals born on or after July 1, 1995. In the case of data collected under this section when the system has been implemented statewide, data shall only be collected on individuals born on or after July 1, 1997. The commissioner shall consult with the advisory committee established under section 144.2215, subdivision 6, in determining the type and scope of birth defects data to be collected for the birth defects information system.

Sec. 14. [144.2217] [CLASSIFICATION OF BIRTH DEFECTS INFORMATION SYSTEM DATA.]

All data on individuals, including the names and personal identifiers of persons who report under section 144.2216, created, collected, received, or maintained by the commissioner of health for the birth defects information system are health data as defined in section 13.38.

Sec. 15. [144.2218] [TRANSFERS OF BIRTH DEFECTS INFORMATION SYSTEM DATA TO OTHER GOVERNMENT AGENCIES.]

Subdivision 1. [INTERSTATE TRANSFERS OF DATA.] If the commissioner of health obtains the prior consent of the individual, or the individual's parent or guardian if the individual is a minor, data collected by the birth defects information system may be disseminated to a state government agency in another state upon determination by the commissioner that:

(1) the subject of the data is a resident of the other state;


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(2) the agency in the other state is authorized under its state law to use the data solely for purposes consistent with sections 144.2215 to 144.2218; and

(3) the agency in the other state is required under its state law to maintain the privacy of the data.

Subd. 2. [INTRASTATE TRANSFERS OF DATA.] Data collected by the birth defects information system may be disseminated to another state government agency in this state upon determination by the commissioner of health that another state government agency could assist an individual registered in the system in gaining access to social, educational, or medical services for which the individual is eligible if the commissioner of health obtains the prior consent of the individual.

Sec. 16. Minnesota Statutes 1996, section 144.226, subdivision 1, is amended to read:

Subdivision 1. [WHICH SERVICES ARE FOR FEE.] The fees for any of the following services shall be in the following or an amount prescribed by rule of the commissioner:

(a) The fee for the issuance of a certified copy or certification of a vital record, or a certification that the record cannot be found; is $8. No fee shall be charged for a certified birth or death record that is reissued within one year of the original issue, if the previously issued record is surrendered.

(b) The fee for the replacement of a birth certificate; record for all events except adoption is $20.

(c) The fee for the filing of a delayed registration of birth or death; is $20.

(d) The alteration, correction, or completion fee for the amendment of any vital record, provided that when requested more than one year after the filing of the record is $20. No fee shall be charged for an alteration, correction, or completion amendment requested within one year after the filing of the certificate; and.

(e) The fee for the verification of information from or noncertified copies of vital records is $8 when the applicant furnishes the specific information to locate the record. When the applicant does not furnish specific information, the fee is $20 per hour for staff time expended. Specific information shall include the correct date of the event and the correct name of the registrant. Fees charged shall approximate the costs incurred in searching and copying the records. The fee shall be payable at time of application.

(f) The fee for issuance of a certified or noncertified copy of any document on file pertaining to a vital record or a certification that the record cannot be found is $8.

Sec. 17. Minnesota Statutes 1996, section 144.226, is amended by adding a subdivision to read:

Subd. 4. [VITAL RECORDS SURCHARGE.] In addition to any fee prescribed under subdivision 1, there is a nonrefundable surcharge of $3 for each certified and noncertified birth or death record. The local or state registrar shall forward this amount to the state treasurer to be deposited into the state government special revenue fund. This surcharge shall not be charged under those circumstances in which no fee for a birth or death record is permitted under subdivision 1, paragraph (a). This surcharge requirement expires June 30, 2002.

Sec. 18. Minnesota Statutes 1996, section 144.394, is amended to read:

144.394 [SMOKING PREVENTION HEALTH PROMOTION AND EDUCATION.]

The commissioner may sell at market value, all nonsmoking or tobacco use prevention advertising health promotion and health education materials. Proceeds from the sale of the advertising materials are appropriated to the department of health for its nonsmoking the program that developed the material.

Sec. 19. [145A.16] [UNIVERSALLY OFFERED HOME VISITING PROGRAMS FOR INFANT CARE.]

Subdivision 1. [ESTABLISHMENT.] The commissioner shall establish a grant program for universally offered home visiting programs funded at a level that could serve, if accepted, all live births in designated geographic areas. The commissioner shall designate the geographic area to be served by each program. At least one program must provide home


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visiting services to families within the seven-county metropolitan area, and at least one program must provide home visiting services to families outside the metropolitan area. The purpose of the program is to strengthen families and to promote positive parenting and healthy child development.

Subd. 2. [STEERING COMMITTEE.] The commissioner shall establish an ad hoc steering committee to develop and implement a comprehensive plan for the universally offered home visiting programs. The members of the ad hoc steering committee shall include, at a minimum, representatives of local public health departments, public health nurses, other health care providers, paraprofessionals, community-based family workers, representatives of health insurance plans, and other individuals with expertise in the field of home visiting, early childhood health and development, and child abuse prevention.

Subd. 3. [PROGRAM REQUIREMENTS.] The commissioner shall award grants using a request for proposal system. Existing home visiting programs may apply for the grants. Health information and assessment, counseling, social support, educational services, and referral to community resources must be offered to all families, regardless of need or risk, beginning prenatally or as soon after birth as possible, and continuing as needed. Each program applying for a grant must have access to adequate community resources to complement the home visiting services and must be designed to:

(1) identify all newborn infants within the geographic area served by the program. Identification may be made prenatally or at the time of birth;

(2) offer a home visit by a trained home visitor. If home visiting is accepted, the first visit must occur prenatally or as soon after birth as possible and must include a public health nursing assessment by a public health nurse;

(3) offer, at a minimum, information on infant care, child growth and development, positive parenting, the prevention of disease and exposure to environmental hazards, and support services available in the community;

(4) provide information about and referral to health care services, if needed, including family planning, pediatric preventive services, immunizations, and developmental assessments, and provide information on the availability of public assistance programs as appropriate;

(5) recruit home visit workers who will represent, to the extent possible, all the races, cultures, and languages spoken by eligible families in the designated geographic areas; and

(6) train and supervise home visitors according to the requirements established under subdivision 5.

Subd. 4. [COORDINATION.] To minimize duplication, a program receiving a grant must establish a coalition that includes parents, health care providers that provide services to families with young children in the service area, and representatives of local schools, governmental and nonprofit agencies, community-based organizations, health insurance plans, and local hospitals. The coalition must designate the roles of all provider agencies, family identification methods, referral mechanisms, and payment responsibilities appropriate for the existing systems in the program's service area. The coalition must also coordinate with other programs offered by school boards under section 121.882, subdivision 2b, and programs offered under section 145A.15.

Subd. 5. [TRAINING.] The commissioner shall establish training requirements for home visitors and minimum requirements for supervision by a public health nurse. The requirements for nurses must be consistent with chapter 148. Training must include child development, positive parenting techniques, and diverse cultural practices in child rearing and family systems. A program may use grant money to train home visitors.

Subd. 6. [EVALUATION.] (a) The commissioner shall evaluate the effectiveness of the home visiting programs, taking into consideration the following goals:

(1) appropriate child growth, development, and access to health care;

(2) appropriate utilization of preventive health care and medical care for acute illnesses;

(3) lower rates of substantiated child abuse and neglect;


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(4) up-to-date immunizations;

(5) a reduction in unintended pregnancies;

(6) increasing families' understanding of lead poisoning prevention;

(7) lower rates of unintentional injuries; and

(8) fewer hospitalizations and emergency room visits.

(b) The commissioner shall report to the legislature by February 15, 1998, on the comprehensive plan for the universally offered home visiting programs and recommend any draft legislation needed to implement the plan. The commissioner shall report to the legislature biennially beginning December 15, 2001, on the effectiveness of the universally offered home visiting programs. In the report due December 15, 2001, the commissioner shall include recommendations on the feasibility and cost of expanding the program statewide.

Subd. 7. [TECHNICAL ASSISTANCE.] The commissioner shall provide administrative and technical assistance to each program, including assistance conducting short- and long-term evaluations of the home visiting program required under subdivision 6. The commissioner may request research and evaluation support from the University of Minnesota.

Subd. 8. [MATCHING FUNDS.] The commissioner and the grant programs shall seek to supplement any state funding with private and other nonstate funding sources, including other grants and insurance coverage for services provided. Program funding may be used only to supplement, not to replace, existing funds being used for home visiting.

Sec. 20. Minnesota Statutes 1996, section 153A.17, is amended to read:

153A.17 [EXPENSES; FEES.]

The expenses for administering the certification requirements including the complaint handling system for hearing aid dispensers in sections 153A.14 and 153A.15 and the consumer information center under section 153A.18 must be paid from initial application and examination fees, renewal fees, penalties, and fines. All fees are nonrefundable. The certificate application fee is $280 $165 for audiologists registered under section 148.511 and $490 for all others, the examination fee is $200 for the written portion and $200 for the practical portion each time one or the other is taken, and the trainee application fee is $100, except that the certification application fee for a registered audiologist is $280 minus the audiologist registration fee of $101. In addition, both certification and examination fees are subject to Notwithstanding the policy set forth in section 16A.1285, subdivision 2, a surcharge of $60 $165 for audiologists registered under section 148.511 et seq. and $330 for all other shall be paid at the time of application or renewal until June 30, 2003, to recover, over a five-year period, the commissioner's accumulated direct expenditures for administering the requirements of this chapter, but not registration of hearing instrument dispensers under section 214.13, before November 1, 1994. The penalty fee for late submission of a renewal application is $70 $200. All fees, penalties, and fines received must be deposited in the state government special revenue fund. The commissioner may prorate the certification fee for new applicants based on the number of quarters remaining in the annual certification period.

Sec. 21. Minnesota Statutes 1996, section 157.16, subdivision 3, is amended to read:

Subd. 3. [ESTABLISHMENT FEES; DEFINITIONS.] (a) The following fees are required for food and beverage service establishments, hotels, motels, lodging establishments, and resorts licensed under this chapter. Food and beverage service establishments must pay the highest applicable fee under paragraph (e), clause (1), (2), (3), or (4), and establishments serving alcohol must pay the highest applicable fee under paragraph (e), clause (6) or (7).

(b) All food and beverage service establishments, except special event food stands, and all hotels, motels, lodging establishments, and resorts shall pay an annual base fee of $100.

(c) A special event food stand shall pay a flat fee of $60 annually. "Special event food stand" means a fee category where food is prepared or served in conjunction with celebrations, county fairs, or special events from a special event food stand as defined in section 157.15.


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(d) A special event food stand-limited shall pay a flat fee of $30.

(e) In addition to the base fee in paragraph (b), each food and beverage service establishment, other than a special event food stand, and each hotel, motel, lodging establishment, and resort shall pay an additional annual fee for each fee category as specified in this paragraph:

(1) Limited food menu selection, $30. "Limited food menu selection" means a fee category that provides one or more of the following:

(i) prepackaged food that receives heat treatment and is served in the package;

(ii) frozen pizza that is heated and served;

(iii) a continental breakfast such as rolls, coffee, juice, milk, and cold cereal;

(iv) soft drinks, coffee, or nonalcoholic beverages; or

(v) cleaning for eating, drinking, or cooking utensils, when the only food served is prepared off site.

(2) Small menu selection with limited equipment establishment, including boarding establishments, $55. "Small menu selection with limited equipment establishment" means a fee category that has no salad bar and meets one or more of the following:

(i) possesses food service equipment that consists of no more than a deep fat fryer, a grill, two hot holding containers, and one or more microwave ovens;

(ii) serves dipped ice cream or soft serve frozen desserts;

(iii) serves breakfast in an owner-occupied bed and breakfast establishment; or

(iv) is a boarding establishment; or

(v) meets the equipment criteria in clause (3), item (i) or (ii), and has a maximum patron seating capacity of not more than 50.

(3) Small Medium establishment with full menu selection, $150. "Small Medium establishment with full menu selection" means a fee category that meets one or more of the following:

(i) possesses food service equipment that includes a range, oven, steam table, salad bar, or salad preparation area;

(ii) possesses food service equipment that includes more than one deep fat fryer, one grill, or two hot holding containers; or

(iii) is an establishment where food is prepared at one location and served at one or more separate locations.

Establishments meeting criteria in clause (2), item (v), are not included in this fee category.

(4) Large establishment with full menu selection, $250. "Large establishment with full menu selection" means either:

(i) a fee category that (A) meets the criteria in clause (3), items (i) or (ii), for a small medium establishment with full menu selection, (B) seats more than 175 people, and (C) offers the full menu selection an average of five or more days a week during the weeks of operation; or

(ii) a fee category that (A) meets the criteria in clause (3), item (iii), for a small medium establishment with full menu selection, and (B) prepares and serves 500 or more meals per day.


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(5) Other food and beverage service, including food carts, mobile food units, seasonal temporary food stands, and seasonal permanent food stands, $30.

(6) Beer or wine table service, $30. "Beer or wine table service" means a fee category where the only alcoholic beverage service is beer or wine, served to customers seated at tables.

(7) Alcoholic beverage service, other than beer or wine table service, $75.

"Alcohol beverage service, other than beer or wine table service" means a fee category where alcoholic mixed drinks are served or where beer or wine are served from a bar.

(8) Lodging per sleeping accommodation unit, $4, including hotels, motels, lodging establishments, and resorts, up to a maximum of $400. "Lodging per sleeping accommodation unit" means a fee category including the number of guest rooms, cottages, or other rental units of a hotel, motel, lodging establishment, or resort; or the number of beds in a dormitory.

(9) First public swimming pool, $100; each additional public swimming pool, $50. "Public swimming pool" means a fee category that has the meaning given in Minnesota Rules, part 4717.0250, subpart 8.

(10) First spa, $50; each additional spa, $25. "Spa pool" means a fee category that has the meaning given in Minnesota Rules, part 4717.0250, subpart 9.

(11) Private sewer or water, $30. "Individual private water" means a fee category with a water supply other than a community public water supply as defined in Minnesota Rules, chapter 4720. "Individual private sewer" means a fee category with an individual sewage treatment system which uses subsurface treatment and disposal.

(f) A fee is not required for a food and beverage service establishment operated by a school as defined in sections 120.05 and 120.101.

(g) A fee of $150 for review of the construction plans must accompany the initial license application for food and beverage service establishments, hotels, motels, lodging establishments, or resorts.

(h) When existing food and beverage service establishments, hotels, motels, lodging establishments, or resorts are extensively remodeled, a fee of $150 must be submitted with the remodeling plans.

(i) Seasonal temporary food stands, special event food stands, and special event food stands-limited are not required to submit construction or remodeling plans for review.

Sec. 22. [157.25] [FOOD SAFETY QUALITY ASSURANCE.]

Subdivision 1. [DEFINITIONS.] For purposes of this section, the following terms have the meanings given them:

(1) "critical control point" means a point or procedure in a specific food system where loss of control may result in an unacceptable health risk;

(2) "HACCP" means hazard analysis critical control point;

(3) "HACCP plan" means a written document that delineates the formal procedures for following the HACCP principles developed by the national advisory committee on microbiological criteria for foods; and

(4) "hazard" means any biological, chemical, or physical property that may cause an unacceptable consumer health risk.

Subd. 2. [PILOT PROJECT.] The commissioner of health shall request proposals from the regulated food and beverage service establishment industry to participate in a cooperative effort to develop HACCP plans using quality assurance principles for monitoring risks and hazards. The commissioner shall select up to 25 proposals for HACCP plans.


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Sec. 23. Minnesota Statutes 1996, section 326.37, subdivision 1, is amended to read:

Subdivision 1. [RULES.] The state commissioner of health may, by rule, prescribe minimum standards which shall be uniform, and which standards shall thereafter be effective for all new plumbing installations, including additions, extensions, alterations, and replacements connected with any water or sewage disposal system owned or operated by or for any municipality, institution, factory, office building, hotel, apartment building, or any other place of business regardless of location or the population of the city or town in which located. Notwithstanding the provisions of Minnesota Rules, part 4715.3130, as they apply to review of plans and specifications, the commissioner may allow plumbing construction, alteration, or extension to proceed without approval of the plans or specifications by the commissioner.

The commissioner shall administer the provisions of sections 326.37 to 326.45 and for such purposes may employ plumbing inspectors and other assistants.

Sec. 24. [AMERICAN INDIAN DIABETES PREVENTION ADVISORY TASK FORCE.]

Subdivision 1. [ESTABLISHMENT.] The commissioner of health shall convene an American Indian diabetes prevention advisory task force. The task force must include representatives from the American Indian tribes located in the state and urban American Indian representatives.

Subd. 2. [DUTIES.] The task force shall advise the commissioner on the adaptation of curricula and the dissemination of information designed to reduce the risk factors associated with diabetes among American Indian school children in grades 1 through 4. The curricula and information must be sensitive to traditional American Indian values and culture and must encourage full participation by the American Indian community.

Sec. 25. [RULE CHANGE; RADIOGRAPHIC ABSORPTIONMETRY.]

The commissioner of health shall amend Minnesota Rules, part 4730.1210, subpart 2, item G, to permit the use of direct exposure x-ray film in radiographic absorptionmetry for the diagnosis and management of osteoporosis. The commissioner may use the rulemaking procedures under Minnesota Statutes, section 14.388.

Sec. 26. [MINORITY HEALTH INITIATIVE.]

Subdivision 1. [PURPOSE.] The purpose of this section is to plan for the expansion and increase of information and statistical research on minority health in Minnesota. The plan must build upon the recommendations of the 1997 populations of color in Minnesota health status report.

Subd. 2. [REPORT TO THE LEGISLATURE.] (a) The commissioner of health, through the office of minority health, shall prepare and transmit to the legislature, according to Minnesota Statutes, section 3.195, and no later than January 15, 1998, a written report addressing the following:

(1) identifying the legal and administrative barriers that hinder the sharing of information among executive branch agencies, and recommending remedies to these barriers;

(2) assessing the current database of information on minority health issues, evaluating data collection standards and procedures in the department of health, identifying minority health issues that should be given priority for increased research to close the gaps and disparities including cancer incidence among populations of color, and recommending methods for expanding the current database of information on minority health; and

(3) planning a grant program targeted at supporting minority health and wellness programs that focus on prevention of illness and disease, health education, and health promotion.

(b) As part of the report in paragraph (a), the commissioner, through the office of minority health, shall study how the department of health could be better organized to accomplish the tasks specified in paragraph (a) and shall propose an organizational structure to accomplish these tasks.


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(c) The commissioner, through the office of minority health, may appoint advisory committees as appropriate to accomplish the tasks in paragraphs (a) and (b). The terms, compensation, and removal of members are governed by Minnesota Statutes, section 15.059, except that members do not receive per diem compensation.

Sec. 27. [REPORT TO LEGISLATURE.]

By July 1, 1999, the emergency medical services regulatory board shall submit to the legislature a comprehensive proposal for regulating ambulance service rates.

Sec. 28. [REPORT REQUIRED; CALS PROGRAM.]

The emergency medical services regulatory board, by December 1, 1999, shall report to the chairs of the house health and human services finance division and the senate health and family security finance division on the implementation of the comprehensive advanced life support (CALS) program or similar program.

Sec. 29. [EFFECTIVE DATE.]

Sections 3 to 5 are effective July 1, 1998.

ARTICLE 3

LONG-TERM CARE FACILITIES

Section 1. Minnesota Statutes 1996, section 144A.071, subdivision 1, is amended to read:

Subdivision 1. [FINDINGS.] The legislature declares that a moratorium on the licensure and medical assistance certification of new nursing home beds and construction projects that exceed the lesser of $500,000 or 25 percent of a facility's appraised value $1,000,000 is necessary to control nursing home expenditure growth and enable the state to meet the needs of its elderly by providing high quality services in the most appropriate manner along a continuum of care.

Sec. 2. Minnesota Statutes 1996, section 144A.071, subdivision 2, is amended to read:

Subd. 2. [MORATORIUM.] The commissioner of health, in coordination with the commissioner of human services, shall deny each request for new licensed or certified nursing home or certified boarding care beds except as provided in subdivision 3 or 4a, or section 144A.073. "Certified bed" means a nursing home bed or a boarding care bed certified by the commissioner of health for the purposes of the medical assistance program, under United States Code, title 42, sections 1396 et seq.

The commissioner of human services, in coordination with the commissioner of health, shall deny any request to issue a license under section 252.28 and chapter 245A to a nursing home or boarding care home, if that license would result in an increase in the medical assistance reimbursement amount.

In addition, the commissioner of health must not approve any construction project whose cost exceeds $500,000, or 25 percent of the facility's appraised value, whichever is less, $1,000,000 unless:

(a) any construction costs exceeding the lesser of $500,000 or 25 percent of the facility's appraised value $1,000,000 are not added to the facility's appraised value and are not included in the facility's payment rate for reimbursement under the medical assistance program; or

(b) the project:

(1) has been approved through the process described in section 144A.073;

(2) meets an exception in subdivision 3 or 4a;


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(3) is necessary to correct violations of state or federal law issued by the commissioner of health;

(4) is necessary to repair or replace a portion of the facility that was damaged by fire, lightning, groundshifts, or other such hazards, including environmental hazards, provided that the provisions of subdivision 4a, clause (a), are met;

(5) as of May 1, 1992, the facility has submitted to the commissioner of health written documentation evidencing that the facility meets the "commenced construction" definition as specified in subdivision 1a, clause (d), or that substantial steps have been taken prior to April 1, 1992, relating to the construction project. "Substantial steps" require that the facility has made arrangements with outside parties relating to the construction project and include the hiring of an architect or construction firm, submission of preliminary plans to the department of health or documentation from a financial institution that financing arrangements for the construction project have been made; or

(6) is being proposed by a licensed nursing facility that is not certified to participate in the medical assistance program and will not result in new licensed or certified beds.

Prior to the final plan approval of any construction project, the commissioner of health shall be provided with an itemized cost estimate for the project construction costs. If a construction project is anticipated to be completed in phases, the total estimated cost of all phases of the project shall be submitted to the commissioner and shall be considered as one construction project. Once the construction project is completed and prior to the final clearance by the commissioner, the total project construction costs for the construction project shall be submitted to the commissioner. If the final project construction cost exceeds the dollar threshold in this subdivision, the commissioner of human services shall not recognize any of the project construction costs or the related financing costs in excess of this threshold in establishing the facility's property-related payment rate.

The dollar thresholds for construction projects are as follows: for construction projects other than those authorized in clauses (1) to (6), the dollar threshold is $500,000 or 25 percent of appraised value, whichever is less $1,000,000. For projects authorized after July 1, 1993, under clause (1), the dollar threshold is the cost estimate submitted with a proposal for an exception under section 144A.073, plus inflation as calculated according to section 256B.431, subdivision 3f, paragraph (a). For projects authorized under clauses (2) to (4), the dollar threshold is the itemized estimate project construction costs submitted to the commissioner of health at the time of final plan approval, plus inflation as calculated according to section 256B.431, subdivision 3f, paragraph (a).

The commissioner of health shall adopt rules to implement this section or to amend the emergency rules for granting exceptions to the moratorium on nursing homes under section 144A.073.

Sec. 3. Minnesota Statutes 1996, section 144A.071, subdivision 4a, is amended to read:

Subd. 4a. [EXCEPTIONS FOR REPLACEMENT BEDS.] It is in the best interest of the state to ensure that nursing homes and boarding care homes continue to meet the physical plant licensing and certification requirements by permitting certain construction projects. Facilities should be maintained in condition to satisfy the physical and emotional needs of residents while allowing the state to maintain control over nursing home expenditure growth.

The commissioner of health in coordination with the commissioner of human services, may approve the renovation, replacement, upgrading, or relocation of a nursing home or boarding care home, under the following conditions:

(a) to license or certify beds in a new facility constructed to replace a facility or to make repairs in an existing facility that was destroyed or damaged after June 30, 1987, by fire, lightning, or other hazard provided:

(i) destruction was not caused by the intentional act of or at the direction of a controlling person of the facility;

(ii) at the time the facility was destroyed or damaged the controlling persons of the facility maintained insurance coverage for the type of hazard that occurred in an amount that a reasonable person would conclude was adequate;

(iii) the net proceeds from an insurance settlement for the damages caused by the hazard are applied to the cost of the new facility or repairs;


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(iv) the new facility is constructed on the same site as the destroyed facility or on another site subject to the restrictions in section 144A.073, subdivision 5;

(v) the number of licensed and certified beds in the new facility does not exceed the number of licensed and certified beds in the destroyed facility; and

(vi) the commissioner determines that the replacement beds are needed to prevent an inadequate supply of beds.

Project construction costs incurred for repairs authorized under this clause shall not be considered in the dollar threshold amount defined in subdivision 2;

(b) to license or certify beds that are moved from one location to another within a nursing home facility, provided the total costs of remodeling performed in conjunction with the relocation of beds does not exceed 25 percent of the appraised value of the facility or $500,000, whichever is less $1,000,000;

(c) to license or certify beds in a project recommended for approval under section 144A.073;

(d) to license or certify beds that are moved from an existing state nursing home to a different state facility, provided there is no net increase in the number of state nursing home beds;

(e) to certify and license as nursing home beds boarding care beds in a certified boarding care facility if the beds meet the standards for nursing home licensure, or in a facility that was granted an exception to the moratorium under section 144A.073, and if the cost of any remodeling of the facility does not exceed 25 percent of the appraised value of the facility or $500,000, whichever is less $1,000,000. If boarding care beds are licensed as nursing home beds, the number of boarding care beds in the facility must not increase beyond the number remaining at the time of the upgrade in licensure. The provisions contained in section 144A.073 regarding the upgrading of the facilities do not apply to facilities that satisfy these requirements;

(f) to license and certify up to 40 beds transferred from an existing facility owned and operated by the Amherst H. Wilder Foundation in the city of St. Paul to a new unit at the same location as the existing facility that will serve persons with Alzheimer's disease and other related disorders. The transfer of beds may occur gradually or in stages, provided the total number of beds transferred does not exceed 40. At the time of licensure and certification of a bed or beds in the new unit, the commissioner of health shall delicense and decertify the same number of beds in the existing facility. As a condition of receiving a license or certification under this clause, the facility must make a written commitment to the commissioner of human services that it will not seek to receive an increase in its property-related payment rate as a result of the transfers allowed under this paragraph;

(g) to license and certify nursing home beds to replace currently licensed and certified boarding care beds which may be located either in a remodeled or renovated boarding care or nursing home facility or in a remodeled, renovated, newly constructed, or replacement nursing home facility within the identifiable complex of health care facilities in which the currently licensed boarding care beds are presently located, provided that the number of boarding care beds in the facility or complex are decreased by the number to be licensed as nursing home beds and further provided that, if the total costs of new construction, replacement, remodeling, or renovation exceed ten percent of the appraised value of the facility or $200,000, whichever is less, the facility makes a written commitment to the commissioner of human services that it will not seek to receive an increase in its property-related payment rate by reason of the new construction, replacement, remodeling, or renovation. The provisions contained in section 144A.073 regarding the upgrading of facilities do not apply to facilities that satisfy these requirements;

(h) to license as a nursing home and certify as a nursing facility a facility that is licensed as a boarding care facility but not certified under the medical assistance program, but only if the commissioner of human services certifies to the commissioner of health that licensing the facility as a nursing home and certifying the facility as a nursing facility will result in a net annual savings to the state general fund of $200,000 or more;

(i) to certify, after September 30, 1992, and prior to July 1, 1993, existing nursing home beds in a facility that was licensed and in operation prior to January 1, 1992;


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(j) to license and certify new nursing home beds to replace beds in a facility condemned as part of an economic redevelopment plan in a city of the first class, provided the new facility is located within one mile of the site of the old facility. Operating and property costs for the new facility must be determined and allowed under existing reimbursement rules;

(k) to license and certify up to 20 new nursing home beds in a community-operated hospital and attached convalescent and nursing care facility with 40 beds on April 21, 1991, that suspended operation of the hospital in April 1986. The commissioner of human services shall provide the facility with the same per diem property-related payment rate for each additional licensed and certified bed as it will receive for its existing 40 beds;

(l) to license or certify beds in renovation, replacement, or upgrading projects as defined in section 144A.073, subdivision 1, so long as the cumulative total costs of the facility's remodeling projects do not exceed 25 percent of the appraised value of the facility or $500,000, whichever is less $1,000,000;

(m) to license and certify beds that are moved from one location to another for the purposes of converting up to five four-bed wards to single or double occupancy rooms in a nursing home that, as of January 1, 1993, was county-owned and had a licensed capacity of 115 beds;

(n) to allow a facility that on April 16, 1993, was a 106-bed licensed and certified nursing facility located in Minneapolis to layaway all of its licensed and certified nursing home beds. These beds may be relicensed and recertified in a newly-constructed teaching nursing home facility affiliated with a teaching hospital upon approval by the legislature. The proposal must be developed in consultation with the interagency committee on long-term care planning. The beds on layaway status shall have the same status as voluntarily delicensed and decertified beds, except that beds on layaway status remain subject to the surcharge in section 256.9657. This layaway provision expires July 1, 1997;

(o) to allow a project which will be completed in conjunction with an approved moratorium exception project for a nursing home in southern Cass county and which is directly related to that portion of the facility that must be repaired, renovated, or replaced, to correct an emergency plumbing problem for which a state correction order has been issued and which must be corrected by August 31, 1993;

(p) to allow a facility that on April 16, 1993, was a 368-bed licensed and certified nursing facility located in Minneapolis to layaway, upon 30 days prior written notice to the commissioner, up to 30 of the facility's licensed and certified beds by converting three-bed wards to single or double occupancy. Beds on layaway status shall have the same status as voluntarily delicensed and decertified beds except that beds on layaway status remain subject to the surcharge in section 256.9657, remain subject to the license application and renewal fees under section 144A.07 and shall be subject to a $100 per bed reactivation fee. In addition, at any time within three years of the effective date of the layaway, the beds on layaway status may be:

(1) relicensed and recertified upon relocation and reactivation of some or all of the beds to an existing licensed and certified facility or facilities located in Pine River, Brainerd, or International Falls; provided that the total project construction costs related to the relocation of beds from layaway status for any facility receiving relocated beds may not exceed the dollar threshold provided in subdivision 2 unless the construction project has been approved through the moratorium exception process under section 144A.073;

(2) relicensed and recertified, upon reactivation of some or all of the beds within the facility which placed the beds in layaway status, if the commissioner has determined a need for the reactivation of the beds on layaway status.

The property-related payment rate of a facility placing beds on layaway status must be adjusted by the incremental change in its rental per diem after recalculating the rental per diem as provided in section 256B.431, subdivision 3a, paragraph (d). The property-related payment rate for a facility relicensing and recertifying beds from layaway status must be adjusted by the incremental change in its rental per diem after recalculating its rental per diem using the number of beds after the relicensing to establish the facility's capacity day divisor, which shall be effective the first day of the month following the month in which the relicensing and recertification became effective. Any beds remaining on layaway status more than three years after the date the layaway status became effective must be removed from layaway status and immediately delicensed and decertified;


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(q) to license and certify beds in a renovation and remodeling project to convert 13 three-bed wards into 13 two-bed rooms and 13 single-bed rooms, expand space, and add improvements in a nursing home that, as of January 1, 1994, met the following conditions: the nursing home was located in Ramsey county; was not owned by a hospital corporation; had a licensed capacity of 64 beds; and had been ranked among the top 15 applicants by the 1993 moratorium exceptions advisory review panel. The total project construction cost estimate for this project must not exceed the cost estimate submitted in connection with the 1993 moratorium exception process;

(r) to license and certify beds in a renovation and remodeling project to convert 12 four-bed wards into 24 two-bed rooms, expand space, and add improvements in a nursing home that, as of January 1, 1994, met the following conditions: the nursing home was located in Ramsey county; had a licensed capacity of 154 beds; and had been ranked among the top 15 applicants by the 1993 moratorium exceptions advisory review panel. The total project construction cost estimate for this project must not exceed the cost estimate submitted in connection with the 1993 moratorium exception process;

(s) (r) to license and certify up to 117 beds that are relocated from a licensed and certified 138-bed nursing facility located in St. Paul to a hospital with 130 licensed hospital beds located in South St. Paul, provided that the nursing facility and hospital are owned by the same or a related organization and that prior to the date the relocation is completed the hospital ceases operation of its inpatient hospital services at that hospital. After relocation, the nursing facility's status under section 256B.431, subdivision 2j, shall be the same as it was prior to relocation. The nursing facility's property-related payment rate resulting from the project authorized in this paragraph shall become effective no earlier than April 1, 1996. For purposes of calculating the incremental change in the facility's rental per diem resulting from this project, the allowable appraised value of the nursing facility portion of the existing health care facility physical plant prior to the renovation and relocation may not exceed $2,490,000;

(t) (s) to license and certify two beds in a facility to replace beds that were voluntarily delicensed and decertified on June 28, 1991;

(u) (t) to allow 16 licensed and certified beds located on July 1, 1994, in a 142-bed nursing home and 21-bed boarding care home facility in Minneapolis, notwithstanding the licensure and certification after July 1, 1995, of the Minneapolis facility as a 147-bed nursing home facility after completion of a construction project approved in 1993 under section 144A.073, to be laid away upon 30 days' prior written notice to the commissioner. Beds on layaway status shall have the same status as voluntarily delicensed or decertified beds except that they shall remain subject to the surcharge in section 256.9657. The 16 beds on layaway status may be relicensed as nursing home beds and recertified at any time within five years of the effective date of the layaway upon relocation of some or all of the beds to a licensed and certified facility located in Watertown, provided that the total project construction costs related to the relocation of beds from layaway status for the Watertown facility may not exceed the dollar threshold provided in subdivision 2 unless the construction project has been approved through the moratorium exception process under section 144A.073.

The property-related payment rate of the facility placing beds on layaway status must be adjusted by the incremental change in its rental per diem after recalculating the rental per diem as provided in section 256B.431, subdivision 3a, paragraph (d). The property-related payment rate for the facility relicensing and recertifying beds from layaway status must be adjusted by the incremental change in its rental per diem after recalculating its rental per diem using the number of beds after the relicensing to establish the facility's capacity day divisor, which shall be effective the first day of the month following the month in which the relicensing and recertification became effective. Any beds remaining on layaway status more than five years after the date the layaway status became effective must be removed from layaway status and immediately delicensed and decertified;

(v) (u) to license and certify beds that are moved within an existing area of a facility or to a newly-constructed addition which is built for the purpose of eliminating three- and four-bed rooms and adding space for dining, lounge areas, bathing rooms, and ancillary service areas in a nursing home that, as of January 1, 1995, was located in Fridley and had a licensed capacity of 129 beds; or

(w) (v) to relocate 36 beds in Crow Wing county and four beds from Hennepin county to a 160-bed facility in Crow Wing county, provided all the affected beds are under common ownership.; or


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(w) to license and certify beds in a renovation and remodeling project to convert 13 three-bed wards into 13 two-bed rooms and 13 single-bed rooms, expand space, and add improvements in a nursing home that, as of January 1, 1994, met the following conditions: the nursing home was located in Ramsey county, was not owned by a hospital corporation, had a licensed capacity of 64 beds, and had been ranked among the top 15 applicants by the 1993 moratorium exceptions advisory review panel. The total project construction cost estimate for this project must not exceed the cost estimate submitted in connection with the 1993 moratorium exception process.

Sec. 4. Minnesota Statutes 1996, section 144A.073, subdivision 2, is amended to read:

Subd. 2. [REQUEST FOR PROPOSALS.] At the authorization by the legislature of additional medical assistance expenditures for exceptions to the moratorium on nursing homes, the interagency committee shall publish in the State Register a request for proposals for nursing home projects to be licensed or certified under section 144A.071, subdivision 4a, clause (c). The public notice of this funding and the request for proposals must specify how the approval criteria will be prioritized by the advisory review panel, the interagency long-term care planning committee, and the commissioner. The notice must describe the information that must accompany a request and state that proposals must be submitted to the interagency committee within 90 days of the date of publication. The notice must include the amount of the legislative appropriation available for the additional costs to the medical assistance program of projects approved under this section. If no money is appropriated for a year, the interagency committee shall publish a notice to that effect, and no proposals shall be requested. If money is appropriated, the interagency committee shall initiate the application and review process described in this section at least twice each biennium and up to four times each biennium, according to dates established by rule. Authorized funds shall be allocated proportionally to the number of processes. Funds not encumbered by an earlier process within a biennium shall carry forward to subsequent iterations of the process. Authorization for expenditures does not carry forward into the following biennium. To be considered for approval, a proposal must include the following information:

(1) whether the request is for renovation, replacement, upgrading, conversion, or relocation;

(2) a description of the problem the project is designed to address;

(3) a description of the proposed project;

(4) an analysis of projected costs of the nursing facility proposal, which are not required to exceed the cost threshold referred to in section 144A.071, subdivision 1, to be considered under this section, including initial construction and remodeling costs; site preparation costs; financing costs, including the current estimated long-term financing costs of the proposal, which consists of estimates of the amount and sources of money, reserves if required under the proposed funding mechanism, annual payments schedule, interest rates, length of term, closing costs and fees, insurance costs, and any completed marketing study or underwriting review; and estimated operating costs during the first two years after completion of the project;

(5) for proposals involving replacement of all or part of a facility, the proposed location of the replacement facility and an estimate of the cost of addressing the problem through renovation;

(6) for proposals involving renovation, an estimate of the cost of addressing the problem through replacement;

(7) the proposed timetable for commencing construction and completing the project;

(8) a statement of any licensure or certification issues, such as certification survey deficiencies;

(9) the proposed relocation plan for current residents if beds are to be closed so that the department of human services can estimate the total costs of a proposal; and

(10) other information required by permanent rule of the commissioner of health in accordance with subdivisions 4 and 8.

Sec. 5. Minnesota Statutes 1996, section 144A.073, is amended by adding a subdivision to read:

Subd. 9. [BUDGET REQUEST.] The commissioner of finance shall include in each biennial budget request a line-item for the nursing home moratorium exception process. If the commissioner does not request funding for this item, the commissioner of finance must justify the decision in the budget pages.


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Sec. 6. Minnesota Statutes 1996, section 256B.431, is amended by adding a subdivision to read:

Subd. 2s. [RATES FOR A RELOCATED FACILITY.] For a nursing facility whose construction project was authorized according to section 144A.073, subdivision 5, paragraph (g), the operating cost payment rates for the third location shall be determined based on Minnesota Rules, part 9549.0057. Subdivision 25, paragraphs (b), clause (3); and (d), shall not apply until the second rate year after the settle-up cost report is filed. Notwithstanding this section, real estate taxes and special assessments payable by the third location, a 501(c)(3) nonprofit corporation, shall be included in the payment rates determined under this subdivision for all subsequent rate years.

Sec. 7. Minnesota Statutes 1996, section 256B.431, subdivision 25, is amended to read:

Subd. 25. [CHANGES TO NURSING FACILITY REIMBURSEMENT BEGINNING JULY 1, 1995.] The nursing facility reimbursement changes in paragraphs (a) to (h) shall apply in the sequence specified to Minnesota Rules, parts 9549.0010 to 9549.0080, and this section, beginning July 1, 1995.

(a) The eight-cent adjustment to care-related rates in subdivision 22, paragraph (e), shall no longer apply.

(b) For rate years beginning on or after July 1, 1995, the commissioner shall limit a nursing facility's allowable operating per diem for each case mix category for each rate year as in clauses (1) to (3).

(1) For the rate year beginning July 1, 1995, the commissioner shall group nursing facilities into two groups, freestanding and nonfreestanding, within each geographic group, using their operating cost per diem for the case mix A classification. A nonfreestanding nursing facility is a nursing facility whose other operating cost per diem is subject to the hospital attached, short length of stay, or the rule 80 limits. All other nursing facilities shall be considered freestanding nursing facilities. The commissioner shall then array all nursing facilities in each grouping by their allowable case mix A operating cost per diem. In calculating a nursing facility's operating cost per diem for this purpose, the commissioner shall exclude the raw food cost per diem related to providing special diets that are based on religious beliefs, as determined in subdivision 2b, paragraph (h). For those nursing facilities in each grouping whose case mix A operating cost per diem:

(i) is at or below the median minus 1.0 standard deviation of the array, the commissioner shall limit the nursing facility's allowable operating cost per diem for each case mix category to the lesser of the prior reporting year's allowable operating cost per diems plus the inflation factor as established in paragraph (f), clause (2), increased by six percentage points, or the current reporting year's corresponding allowable operating cost per diem;

(ii) is between minus .5 standard deviation and minus 1.0 standard deviation below the median of the array, the commissioner shall limit the nursing facility's allowable operating cost per diem for each case mix category to the lesser of the prior reporting year's allowable operating cost per diems plus the inflation factor as established in paragraph (f), clause (2), increased by four percentage points, or the current reporting year's corresponding allowable operating cost per diem; or

(iii) is equal to or above minus .5 standard deviation below the median of the array, the commissioner shall limit the nursing facility's allowable operating cost per diem for each case mix category to the lesser of the prior reporting year's allowable operating cost per diems plus the inflation factor as established in paragraph (f), clause (2), increased by three percentage points, or the current reporting year's corresponding allowable operating cost per diem.

(2) For the rate year beginning on July 1, 1996, the commissioner shall limit the nursing facility's allowable operating cost per diem for each case mix category to the lesser of the prior reporting year's allowable operating cost per diems plus the inflation factor as established in paragraph (f), clause (2), increased by one percentage point or the current reporting year's corresponding allowable operating cost per diems; and

(3) For rate years beginning on or after July 1, 1997, the commissioner shall limit the nursing facility's allowable operating cost per diem for each case mix category to the lesser of the reporting year prior to the current reporting year's allowable operating cost per diems plus the inflation factor as established in paragraph (f), clause (2), or the current reporting year's corresponding allowable operating cost per diems.


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(c) For rate years beginning on July 1, 1995, the commissioner shall limit the allowable operating cost per diems for high cost nursing facilities. After application of the limits in paragraph (b) to each nursing facility's operating cost per diems, the commissioner shall group nursing facilities into two groups, freestanding or nonfreestanding, within each geographic group. A nonfreestanding nursing facility is a nursing facility whose other operating cost per diems are subject to hospital attached, short length of stay, or rule 80 limits. All other nursing facilities shall be considered freestanding nursing facilities. The commissioner shall then array all nursing facilities within each grouping by their allowable case mix A operating cost per diems. In calculating a nursing facility's operating cost per diem for this purpose, the commissioner shall exclude the raw food cost per diem related to providing special diets that are based on religious beliefs, as determined in subdivision 2b, paragraph (h). For those nursing facilities in each grouping whose case mix A operating cost per diem exceeds 1.0 standard deviation above the median, the commissioner shall reduce their allowable operating cost per diems by two percent. For those nursing facilities in each grouping whose case mix A operating cost per diem exceeds 0.5 standard deviation above the median but is less than or equal to 1.0 standard deviation above the median, the commissioner shall reduce their allowable operating cost per diems by one percent.

(d) For rate years beginning on or after July 1, 1996, the commissioner shall limit the allowable operating cost per diems for high cost nursing facilities. After application of the limits in paragraph (b) to each nursing facility's operating cost per diems, the commissioner shall group nursing facilities into two groups, freestanding or nonfreestanding, within each geographic group. A nonfreestanding nursing facility is a nursing facility whose other operating cost per diems are subject to hospital attached, short length of stay, or rule 80 limits. All other nursing facilities shall be considered freestanding nursing facilities. The commissioner shall then array all nursing facilities within each grouping by their allowable case mix A operating cost per diems. In calculating a nursing facility's operating cost per diem for this purpose, the commissioner shall exclude the raw food cost per diem related to providing special diets that are based on religious beliefs, as determined in subdivision 2b, paragraph (h). In those nursing facilities in each grouping whose case mix A operating cost per diem exceeds 1.0 standard deviation above the median, the commissioner shall reduce their allowable operating cost per diems by three percent. For those nursing facilities in each grouping whose case mix A operating cost per diem exceeds 0.5 standard deviation above the median but is less than or equal to 1.0 standard deviation above the median, the commissioner shall reduce their allowable operating cost per diems by two percent.

(e) For rate years beginning on or after July 1, 1995, the commissioner shall determine a nursing facility's efficiency incentive by first computing the allowable difference, which is the lesser of $4.50 or the amount by which the facility's other operating cost limit exceeds its nonadjusted other operating cost per diem for that rate year. The commissioner shall compute the efficiency incentive by:

(1) subtracting the allowable difference from $4.50 and dividing the result by $4.50;

(2) multiplying 0.20 by the ratio resulting from clause (1), and then;

(3) adding 0.50 to the result from clause (2); and

(4) multiplying the result from clause (3) times the allowable difference.

The nursing facility's efficiency incentive payment shall be the lesser of $2.25 or the product obtained in clause (4).

(f) For rate years beginning on or after July 1, 1995, the forecasted price index for a nursing facility's allowable operating cost per diems shall be determined under clauses (1) to (3) using the change in the Consumer Price Index-All Items (United States city average) (CPI-U) or the change in the Nursing Home Market Basket, both as forecasted by Data Resources Inc., whichever is applicable. The commissioner shall use the indices as forecasted in the fourth quarter of the calendar year preceding the rate year, subject to subdivision 2l, paragraph (c). If, as a result of federal legislative or administrative action, the methodology used to calculate the Consumer Price Index-All Items (United States city average) (CPI-U) changes, the commissioner shall develop a conversion factor or other methodology to convert the CPI-U index factor that results from the new methodology to an index factor that approximates, as closely as possible, the index factor that would have resulted from application of the original CPI-U methodology prior to any changes in methodology. The commissioner shall use the conversion factor or other methodology to calculate an adjusted inflation index. The adjusted inflation index must be used to calculate payment rates under this section instead of the CPI-U index specified in paragraph (d). If the commissioner is required to develop an adjusted inflation index, the commissioner shall report to the legislature as part of the next budget submission the fiscal impact of applying this index.


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(1) The CPI-U forecasted index for allowable operating cost per diems shall be based on the 21-month period from the midpoint of the nursing facility's reporting year to the midpoint of the rate year following the reporting year.

(2) The Nursing Home Market Basket forecasted index for allowable operating costs and per diem limits shall be based on the 12-month period between the midpoints of the two reporting years preceding the rate year.

(3) For rate years beginning on or after July 1, 1996, the forecasted index for operating cost limits referred to in subdivision 21, paragraph (b), shall be based on the CPI-U for the 12-month period between the midpoints of the two reporting years preceding the rate year.

(g) After applying these provisions for the respective rate years, the commissioner shall index these allowable operating costs per diems by the inflation factor provided for in paragraph (f), clause (1), and add the nursing facility's efficiency incentive as computed in paragraph (e).

(h)(1) A nursing facility licensed for 302 beds on September 30, 1993, that was approved under the moratorium exception process in section 144A.073 for a partial replacement, and completed the replacement project in December 1994, is exempt from paragraphs (b) to (d) for rate years beginning on or after July 1, 1995.

(2) For the rate year beginning July 1, 1997, after computing this nursing facility's payment rate according to section 256B.434, the commissioner shall make a one-year rate adjustment of $8.62 to the facility's contract payment rate for the rate effect of operating cost changes associated with the facility's 1994 downsizing project.

(3) For rate years beginning on or after July 1, 1997, the commissioner shall add 35 cents to the facility's base property related payment rate for the rate effect of reducing its licensed capacity to 290 beds from 302 beds and shall add 83 cents to the facility's real estate tax and special assessment payment rate for payments in lieu of real estate taxes. The adjustments in this clause shall remain in effect for the duration of the facility's contract under section 256B.434.

(i) Notwithstanding Laws 1996, chapter 451, article 3, section 11, paragraph (h), for the rate years beginning on July 1, 1996, July 1, 1997, and July 1, 1998, a nursing facility licensed for 40 beds effective May 1, 1992, with a subsequent increase of 20 Medicare/Medicaid certified beds, effective January 26, 1993, in accordance with an increase in licensure is exempt from paragraphs (b) to (d).

(j) For the rate year beginning July 1, 1997, the commissioner shall compute the payment rate for a nursing facility licensed for 94 beds on September 30, 1996, that applied in October 1993 for approval of a total replacement under the moratorium exception process in section 144A.073, and completed the approved replacement in June 1995, with an aggregate spend-up limit under paragraph (b) or Laws 1996, chapter 451, article 3, section 11, increased by $3.98, and after computing the facility's payment rate according to section 256B.431, the commissioner shall make a one year positive rate adjustment of $3.19 for operating costs related to the newly constructed total replacement, without application of paragraphs (b) to (d) or Laws 1996, chapter 451, article 3, section 11. The facility's per diems, before the $3.19 adjustment, shall be used as the prior reporting year's allowable operating cost per diems for payment rate calculation for the rate year beginning July 1, 1998.

(k) For the purpose of applying the limit stated in paragraph (b), clause (3), a nursing facility in Kandiyohi county licensed for 86 beds that was granted hospital-attached status on December 1, 1994, shall have the prior year's allowable care-related per diems increased by $3.207 and the prior year's other operating cost per diems increased by $4.777 before adding the inflation in paragraph (f), clause (2), for the rate year beginning on July 1, 1997.

(l) For the purpose of applying the limit stated in paragraph (b), clause (3), a 117 bed nursing facility located in Pine county shall have the prior year's allowable operating cost per diem payment rate increased by $1.50 before adding the inflation in paragraph (f), clause (2), for the rate year beginning on July 1, 1997.

Sec. 8. Minnesota Statutes 1996, section 256B.431, is amended by adding a subdivision to read:

Subd. 26. [CHANGES TO NURSING FACILITY REIMBURSEMENT BEGINNING JULY 1, 1997.] The nursing facility reimbursement changes in paragraphs (a) to (f) shall apply in the sequence specified to Minnesota Rules, parts 9549.0010 to 9549.0080, and this section, beginning July 1, 1997.


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(a) For rate years beginning on or after July 1, 1997, the commissioner shall limit a nursing facility's allowable operating per diem for each case mix category for each rate year as follows:

(1) Notwithstanding Laws 1996, chapter 451, article 3, section 11, paragraph (h), for purposes of computing the spend-up limits for the rate year beginning July 1, 1997, the nursing facility's prior cost report year's allowable operating cost base shall be its allowed operating costs used to set the payment rates paid for the rate year beginning July 1, 1996.

(2) The commissioner shall group nursing facilities into two groups, freestanding and nonfreestanding, within each geographic group, using their operating cost per diem for the case mix A classification. A nonfreestanding nursing facility is a nursing facility whose other operating cost per diem is subject to the hospital attached, short length of stay, or the rule 80 limits. All other nursing facilities shall be considered freestanding nursing facilities. The commissioner shall then array all nursing facilities in each grouping by their allowable case mix A operating cost per diem. In calculating a nursing facility's operating cost per diem for this purpose, the commissioner shall exclude the raw food cost per diem related to providing special diets that are based on religious beliefs, as determined in subdivision 2b, paragraph (h). For those nursing facilities in each grouping whose case mix A operating cost per diem:

(i) is at or below the median of the array, the commissioner shall limit the nursing facility's allowable operating cost per diem for each case mix category to the lesser of the prior reporting year's allowable operating cost per diems plus the inflation factor as established in paragraph (d), clause (2), increased by two percentage points, or the current reporting year's corresponding allowable operating cost per diem; or

(ii) is above the median of the array, the commissioner shall limit the nursing facility's allowable operating cost per diem for each case mix category to the lesser of the prior reporting year's allowable operating cost per diems plus the inflation factor as established in paragraph (d), clause (2), increased by one percentage point, or the current reporting year's corresponding allowable operating cost per diem.

(b) For rate years beginning on July 1, 1997, the commissioner shall limit the allowable operating cost per diems for high cost nursing facilities. After application of the limits in paragraph (a) to each nursing facility's operating cost per diems, the commissioner shall group nursing facilities into two groups, freestanding or nonfreestanding, within each geographic group. A nonfreestanding nursing facility is a nursing facility whose other operating cost per diems are subject to hospital attached, short length of stay, or rule 80 limits. All other nursing facilities shall be considered freestanding nursing facilities. The commissioner shall then array all nursing facilities within each grouping by their allowable case mix A operating cost per diems. In calculating a nursing facility's operating cost per diem for this purpose, the commissioner shall exclude the raw food cost per diem related to providing special diets that are based on religious beliefs, as determined in subdivision 2b, paragraph (h). For those nursing facilities in each grouping whose case mix A operating cost per diem exceeds 1.0 standard deviation above the median, the commissioner shall reduce their allowable operating cost per diems by three percent. For those nursing facilities in each grouping whose case mix A operating cost per diem exceeds 0.5 standard deviation above the median but is less than or equal to 1.0 standard deviation above the median, the commissioner shall reduce their allowable operating cost per diems by two percent. However, in no case shall a nursing facility's operating cost per diems be reduced below its grouping's limit established at 0.5 standard deviations above the median.

(c) For rate years beginning on or after July 1, 1997, the commissioner shall determine a nursing facility's efficiency incentive by first computing the allowable difference, which is the lesser of $4.50 or the amount by which the facility's other operating cost limit exceeds its nonadjusted other operating cost per diem for that rate year. In determining the amount of the efficiency incentive for hospital attached nursing facilities, the commissioner must use the other operating cost limit applicable to the freestanding nursing facilities in their same geographic group. The commissioner shall compute the efficiency incentive by:

(1) subtracting the allowable difference from $4.50 and dividing the result by $4.50;

(2) multiplying 0.20 by the ratio resulting from clause (1), and then;

(3) adding 0.50 to the result from clause (2); and

(4) multiplying the result from clause (3) times the allowable difference.


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The nursing facility's efficiency incentive payment shall be the lesser of $2.25 or the product obtained in clause (4).

(d) For rate years beginning on or after July 1, 1997, the forecasted price index for a nursing facility's allowable operating cost per diems shall be determined under clauses (1) and (2) using the change in the Consumer Price Index-All Items (United States city average) (CPI-U) as forecasted by Data Resources Inc. The commissioner shall use the indices as forecasted in the fourth quarter of the calendar year preceding the rate year, subject to subdivision 2l, paragraph (c).

(1) The CPI-U forecasted index for allowable operating cost per diems shall be based on the 21-month period from the midpoint of the nursing facility's reporting year to the midpoint of the rate year following the reporting year.

(2) For rate years beginning on or after July 1, 1997, the forecasted index for operating cost limits referred to in subdivision 21, paragraph (b), shall be based on the CPI-U for the 12-month period between the midpoints of the two reporting years preceding the rate year.

(e) After applying these provisions for the respective rate years, the commissioner shall index these allowable operating costs per diems by the inflation factor provided for in paragraph (d), clause (1), and add the nursing facility's efficiency incentive as computed in paragraph (c).

(f) Notwithstanding Laws 1996, chapter 451, article 3, section 11, paragraph (h), for the rate years beginning on July 1, 1997, and July 1, 1998, a nursing facility licensed for 40 beds effective May 1, 1992, with a subsequent increase of 20 Medicare/Medicaid certified beds, effective January 26, 1993, in accordance with an increase in licensure is exempt from paragraphs (a) and (b).

Sec. 9. Minnesota Statutes 1996, section 256I.05, is amended by adding a subdivision to read:

Subd. 1d. [SUPPLEMENTARY SERVICE RATES FOR CERTAIN FACILITIES SERVING PERSONS WITH MENTAL ILLNESS OR CHEMICAL DEPENDENCY.] Notwithstanding the provisions of subdivisions 1a and 1c for the fiscal year ending June 30, 1998, a county agency may negotiate a supplementary service rate in addition to the board and lodging rate for facilities licensed and registered by the Minnesota department of health under section 157.17 prior to December 31, 1994, if the facility meets the following criteria:

(1) at least 75 percent of the residents have a primary diagnosis of mental illness, chemical dependency, or both, and have related special needs;

(2) the facility provides 24-hour, on-site, year-round supportive services by qualified staff capable of intervention in a crisis of persons with late-state inebriety or mental illness who are vulnerable to abuse or neglect;

(3) the services at the facility include, but are not limited to:

(i) secure central storage of medication;

(ii) reminders and monitoring of medication for self-administration;

(iii) support for developing an individual medical and social service plan, updating the plan, and monitoring compliance with the plan; and

(iv) assistance with setting up meetings, appointments, and transportation to access medical, chemical health, and mental health service providers;

(4) each resident has a documented need for at least one of the services provided;

(5) each resident has been offered an opportunity to apply for admission to a licensed residential treatment program for mental illness, chemical dependency, or both, have refused that offer, and the offer and their refusal has been documented to writing; and


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(6) the residents are not eligible for home and community-based services waivers because of their unique need for community support.

After the increase, the total supplementary service rate must not exceed the statewide rate limit for residential care services in effect January 1, 1997, for the community alternatives for disabled individuals waivers services program for individuals with a case mix "A" classification.

Sec. 10. Laws 1997, chapter 7, article 1, section 75, is amended to read:

Sec. 75. [REPEALER; SECTION 144A.61, SUBDIVISION 6 NOTE.]

Laws 1989, chapter 282, article 3, section 28, subdivision 6, is repealed.

Sec. 11. [EFFECTIVE DATE.]

Section 7 is effective the day following final enactment.

ARTICLE 4

HEALTH CARE

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

Subd. 5. [PARTICIPATION; GOVERNMENT PROGRAMS.] Health maintenance organizations shall, as a condition of receiving and retaining a certificate of authority, participate in the medical assistance, general assistance medical care, and MinnesotaCare programs. A health maintenance organization is required to submit proposals in good faith that meet the requirements of the request for proposal provided that the requirements can be reasonably met by a health maintenance organization to serve individuals eligible for the above programs in a geographic region of the state if, at the time of publication of a request for proposal, the percentage of recipients in the public programs in the region who are enrolled in the health maintenance organization is less than the health maintenance organization's percentage of the total number of individuals enrolled in health maintenance organizations in the same region. Geographic regions shall be defined by the commissioner of human services in the request for proposals.

Sec. 2. Minnesota Statutes 1996, section 62N.10, subdivision 4, is amended to read:

Subd. 4. [PARTICIPATION; GOVERNMENT PROGRAMS.] Integrated service networks shall, as a condition of licensure, participate in the medical assistance, general assistance medical care, and MinnesotaCare programs. An integrated service network is required to submit proposals in good faith that meet the requirements of the request for proposals provided that the requirements can be reasonably met by an integrated service network to serve persons who are eligible for the above programs if, at the time of publication of a request for proposal, the percentage of recipients in the public programs in the region who are enrolled in the integrated service network is less than the integrated service network's percentage of the total number of individuals enrolled in integrated service networks in the same region. Geographic regions shall be defined by the commissioner of human services in the request for proposals.

Sec. 3. Minnesota Statutes 1996, section 144.0721, subdivision 3, is amended to read:

Subd. 3. [LEVEL OF CARE CRITERIA; MODIFICATIONS.] The commissioner shall seek appropriate federal waivers to implement this subdivision. Notwithstanding any laws or rules to the contrary, effective July 1, 1996 1997, Minnesota's level of care criteria for admission of any person to a nursing facility licensed under chapter 144A, or a boarding care home licensed under sections 144.50 to 144.56, are modified as follows:

(1) the resident reimbursement classifications and terminology established by rule under sections 256B.41 to 256B.48 are the basis for applying the level of care criteria changes;


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(2) an applicant to a certified nursing facility or certified boarding care home who is dependent in zero, one, or two case mix activities of daily living, is classified as a case mix A, and is independent in orientation and self-preservation, is reclassified as a high function class A person and is not eligible for admission to Minnesota certified nursing facilities or certified boarding care homes;

(3) applicants in clause (2) who are dependent in one or two case mix activities of daily living, who are eligible for assistance as determined under sections 256B.055 and 256B.056 or meet eligibility criteria for section 256B.0913 are eligible for a service allowance under section 256B.0913, subdivision 15, and are not eligible for services under sections 256B.0913, subdivisions 1 to 14, and 256B.0915. Applicants in clause (2) shall have the option of receiving personal care assistant and home health aide services under section 256B.0625, if otherwise eligible, or of receiving the service allowance option, but not both. Applicants in clause (2) shall have the option of residing in community settings under sections 256I.01 to 256I.06, if otherwise eligible, or receiving the services allowance option under section 256B.0913, subdivision 15, but not both;

(4) residents of a certified nursing facility or certified boarding care home who were admitted before July 1, 1996 1997, or individuals receiving services under section 256B.0913, subdivisions 1 to 14, or 256B.0915, before July 1, 1996 1997, are not subject to the new level of care criteria unless the resident is discharged home or to another service setting other than a certified nursing facility or certified boarding care home and applies for admission to a certified nursing facility or certified boarding care home after June 30, 1996 1997;

(5) the local screening teams under section 256B.0911 shall make preliminary determinations concerning may determine the existence of extraordinary circumstances which render nonadmission to a certified nursing or certified boarding care home a serious threat to the health and safety of applicants in clause (2) and may authorize an admission for a short-term stay at to a certified nursing facility or certified boarding care home in accordance with a treatment and discharge plan for up to 30 days per year; and

(6) an individual deemed ineligible for admission to Minnesota certified nursing facilities is entitled to an appeal under section 256.045, subdivision 3.

If the commissioner determines upon appeal that an applicant in clause (2) presents extraordinary circumstances including but not limited to the absence or inaccessibility of suitable alternatives, contravening family circumstances, and or protective service issues, the applicant may be eligible for admission to Minnesota certified nursing facilities or certified boarding care homes.

Sec. 4. Minnesota Statutes 1996, section 254B.02, subdivision 1, is amended to read:

Subdivision 1. [CHEMICAL DEPENDENCY TREATMENT ALLOCATION.] The chemical dependency funds appropriated for allocation shall be placed in a special revenue account. For the fiscal year beginning July 1, 1987, funds shall be transferred to operate the vendor payment, invoice processing, and collections system for one year. The commissioner shall annually transfer funds from the chemical dependency fund to pay for operation of the drug and alcohol abuse normative evaluation system and to pay for all costs incurred by adding two positions for licensing of chemical dependency treatment and rehabilitation programs located in hospitals for which funds are not otherwise appropriated. For each year of the biennium ending June 30, 1999, the commissioner shall allocate funds to the American Indian chemical dependency tribal account for treatment of American Indians by eligible vendors under section 254B.05, equal to the amount allocated in fiscal year 1997. The commissioner shall annually divide the money available in the chemical dependency fund that is not held in reserve by counties from a previous allocation, or allocated to the American Indian chemical dependency tribal account. Twelve Six percent of the remaining money must be reserved for the nonreservation American Indian chemical dependency allocation for treatment of American Indians by eligible vendors under section 254B.05, subdivision 1. The remainder of the money must be allocated among the counties according to the following formula, using state demographer data and other data sources determined by the commissioner:

(a) For purposes of this formula, American Indians and children under age 14 are subtracted from the population of each county to determine the restricted population.


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(b) The amount of chemical dependency fund expenditures for entitled persons for services not covered by prepaid plans governed by section 256B.69 in the previous year is divided by the amount of chemical dependency fund expenditures for entitled persons for all services to determine the proportion of exempt service expenditures for each county.

(c) The prepaid plan months of eligibility is multiplied by the proportion of exempt service expenditures to determine the adjusted prepaid plan months of eligibility for each county.

(d) The adjusted prepaid plan months of eligibility is added to the number of restricted population fee for service months of eligibility for aid to families with dependent children, general assistance, and medical assistance and divided by the county restricted population to determine county per capita months of covered service eligibility.

(e) The number of adjusted prepaid plan months of eligibility for the state is added to the number of fee for service months of eligibility for aid to families with dependent children, general assistance, and medical assistance for the state restricted population and divided by the state restricted population to determine state per capita months of covered service eligibility.

(f) The county per capita months of covered service eligibility is divided by the state per capita months of covered service eligibility to determine the county welfare caseload factor.

(g) The median married couple income for the most recent three-year period available for the state is divided by the median married couple income for the same period for each county to determine the income factor for each county.

(h) The county restricted population is multiplied by the sum of the county welfare caseload factor and the county income factor to determine the adjusted population.

(i) $15,000 shall be allocated to each county.

(j) The remaining funds shall be allocated proportional to the county adjusted population.

Sec. 5. Minnesota Statutes 1996, section 254B.09, subdivision 4, is amended to read:

Subd. 4. [TRIBAL ALLOCATION.] Forty-two and one-half Eighty-five percent of the American Indian chemical dependency tribal account must be allocated to the federally recognized American Indian tribal governing bodies that have entered into an agreement under subdivision 2 as follows: $10,000 must be allocated to each governing body and the remainder must be allocated in direct proportion to the population of the reservation according to the most recently available estimates from the federal Bureau of Indian Affairs. When a tribal governing body has not entered into an agreement with the commissioner under subdivision 2, the county may use funds allocated to the reservation to pay for chemical dependency services for a current resident of the county and of the reservation.

Sec. 6. Minnesota Statutes 1996, section 254B.09, subdivision 5, is amended to read:

Subd. 5. [TRIBAL RESERVE ACCOUNT.] The commissioner shall reserve 7.5 15 percent of the American Indian chemical dependency tribal account. The reserve must be allocated to those tribal units that have used all money allocated under subdivision 4 according to agreements made under subdivision 2 and to counties submitting invoices for American Indians under subdivision 1 when all money allocated under subdivision 4 has been used. An American Indian tribal governing body or a county submitting invoices under subdivision 1 may receive not more than 30 percent of the reserve account in a year. The commissioner may refuse to make reserve payments for persons not eligible under section 254B.04, subdivision 1, if the tribal governing body responsible for treatment placement has exhausted its allocation. Money must be allocated as invoices are received.

Sec. 7. Minnesota Statutes 1996, section 254B.09, subdivision 7, is amended to read:

Subd. 7. [NONRESERVATION INDIAN ACCOUNT.] Fifty percent of The nonreservation American Indian chemical dependency allocation must be held in reserve by the commissioner in an account for treatment of Indians not residing on lands of a reservation receiving money under subdivision 4. This money must be used to pay for services certified by county invoice to have been provided to an American Indian eligible recipient. Money allocated under this subdivision may be used


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for payments on behalf of American Indian county residents only if, in addition to other placement standards, the county certifies that the placement was appropriate to the cultural orientation of the client. Any funds for treatment of nonreservation Indians remaining at the end of a fiscal year shall be reallocated under section 254B.02.

Sec. 8. Minnesota Statutes 1996, section 256.045, subdivision 3, is amended to read:

Subd. 3. [STATE AGENCY HEARINGS.] (a) State agency hearings are available for the following: (1) any person applying for, receiving or having received public assistance or a program of social services granted by the state agency or a county agency under sections 252.32, 256.031 to 256.036, and 256.72 to 256.879, chapters 256B, 256D, 256E, 261, or the federal Food Stamp Act whose application for assistance is denied, not acted upon with reasonable promptness, or whose assistance is suspended, reduced, terminated, or claimed to have been incorrectly paid; (2) any patient or relative aggrieved by an order of the commissioner under section 252.27; (3) a party aggrieved by a ruling of a prepaid health plan; (4) any individual or facility determined by a lead agency to have maltreated a vulnerable adult under section 626.557 after they have exercised their right to administrative reconsideration under section 626.557; (5) any person whose claim for foster care payment pursuant to a placement of the child resulting from a child protection assessment under section 626.556 is denied or not acted upon with reasonable promptness, regardless of funding source; (6) any person to whom a right of appeal pursuant to this section is given by other provision of law; or (7) an applicant aggrieved by an adverse decision to an application for a hardship waiver under section 256B.15. The failure to exercise the right to an administrative reconsideration shall not be a bar to a hearing under this section if federal law provides an individual the right to a hearing to dispute a finding of maltreatment. Individuals and organizations specified in this section may contest the specified action, decision, or final disposition before the state agency by submitting a written request for a hearing to the state agency within 30 days after receiving written notice of the action, decision, or final disposition, or within 90 days of such written notice if the applicant, recipient, patient, or relative shows good cause why the request was not submitted within the 30-day time limit.

The hearing for an individual or facility under clause (4) is the only administrative appeal to the final lead agency disposition specifically, including a challenge to the accuracy and completeness of data under section 13.04. Hearings requested under clause (4) apply only to incidents of maltreatment that occur on or after October 1, 1995. Hearings requested by nursing assistants in nursing homes alleged to have maltreated a resident prior to October 1, 1995, shall be held as a contested case proceeding under the provisions of chapter 14.

For purposes of this section, bargaining unit grievance procedures are not an administrative appeal.

The scope of hearings involving claims to foster care payments under clause (5) shall be limited to the issue of whether the county is legally responsible for a child's placement under court order or voluntary placement agreement and, if so, the correct amount of foster care payment to be made on the child's behalf and shall not include review of the propriety of the county's child protection determination or child placement decision.

(b) Except for a prepaid health plan, A vendor of medical care as defined in section 256B.02, subdivision 7, or a vendor under contract with a county agency to provide social services under section 256E.08, subdivision 4, is not a party and may not request a hearing under this section, except if assisting a recipient as provided in subdivision 4.

(c) An applicant or recipient is not entitled to receive social services beyond the services included in the amended community social services plan developed under section 256E.081, subdivision 3, if the county agency has met the requirements in section 256E.081.

Sec. 9. Minnesota Statutes 1996, section 256.045, subdivision 5, is amended to read:

Subd. 5. [ORDERS OF THE COMMISSIONER OF HUMAN SERVICES.] This subdivision does not apply to appeals under subdivision 3b. A state human services referee shall conduct a hearing on the appeal and shall recommend an order to the commissioner of human services. The recommended order must be based on all relevant evidence and must not be limited to a review of the propriety of the state or county agency's action. A referee may take official notice of adjudicative facts. The commissioner of human services may accept the recommended order of a state human services referee and issue the order to the county agency and the applicant, recipient, former recipient, or prepaid health plan. The commissioner on refusing to accept the recommended order of the state human services referee, shall notify the county agency and the


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applicant, recipient, former recipient, or prepaid health plan of that fact and shall state reasons therefor and shall allow each party ten days' time to submit additional written argument on the matter. After the expiration of the ten-day period, the commissioner shall issue an order on the matter to the county agency and the applicant, recipient, former recipient, or prepaid health plan.

A party aggrieved by an order of the commissioner may appeal under subdivision 7, or request reconsideration by the commissioner within 30 days after the date the commissioner issues the order. The commissioner may reconsider an order upon request of any party or on the commissioner's own motion. A request for reconsideration does not stay implementation of the commissioner's order. Upon reconsideration, the commissioner may issue an amended order or an order affirming the original order.

Any order of the commissioner issued under this subdivision shall be conclusive upon the parties unless appeal is taken in the manner provided by subdivision 7. Any order of the commissioner is binding on the parties and must be implemented by the state agency or, a county agency, or a prepaid health plan according to subdivision 3a, until the order is reversed by the district court, or unless the commissioner or a district court orders monthly assistance or aid or services paid or provided under subdivision 10.

Except for a prepaid health plan, A vendor of medical care as defined in section 256B.02, subdivision 7, or a vendor under contract with a county agency to provide social services under section 256E.08, subdivision 4, is not a party and may not request a hearing or seek judicial review of an order issued under this section, unless assisting a recipient as provided in subdivision 4. A prepaid health plan is a party to an appeal under subdivision 3a, but cannot seek judicial review of an order issued under this section.

Sec. 10. Minnesota Statutes 1996, section 256.045, subdivision 7, is amended to read:

Subd. 7. [JUDICIAL REVIEW.] Except for a prepaid health plan, any party who is aggrieved by an order of the commissioner of human services, or the commissioner of health in appeals within the commissioner's jurisdiction under subdivision 3b, may appeal the order to the district court of the county responsible for furnishing assistance, or, in appeals under subdivision 3b, the county where the maltreatment occurred, by serving a written copy of a notice of appeal upon the commissioner and any adverse party of record within 30 days after the date the commissioner issued the order, the amended order, or order affirming the original order, and by filing the original notice and proof of service with the court administrator of the district court. Service may be made personally or by mail; service by mail is complete upon mailing; no filing fee shall be required by the court administrator in appeals taken pursuant to this subdivision, with the exception of appeals taken under subdivision 3b. The commissioner may elect to become a party to the proceedings in the district court. Except for appeals under subdivision 3b, any party may demand that the commissioner furnish all parties to the proceedings with a copy of the decision, and a transcript of any testimony, evidence, or other supporting papers from the hearing held before the human services referee, by serving a written demand upon the commissioner within 30 days after service of the notice of appeal. Any party aggrieved by the failure of an adverse party to obey an order issued by the commissioner under subdivision 5 may compel performance according to the order in the manner prescribed in sections 586.01 to 586.12.

Sec. 11. Minnesota Statutes 1996, section 256.476, subdivision 2, is amended to read:

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

(a) "County board" means the county board of commissioners for the county of financial responsibility as defined in section 256G.02, subdivision 4, or its designated representative. When a human services board has been established under sections 402.01 to 402.10, it shall be considered the county board for the purposes of this section.

(b) "Family" means the person's birth parents, adoptive parents or stepparents, siblings or stepsiblings, children or stepchildren, grandparents, grandchildren, niece, nephew, aunt, uncle, or spouse. For the purposes of this section, a family member is at least 18 years of age.

(c) "Functional limitations" means the long-term inability to perform an activity or task in one or more areas of major life activity, including self-care, understanding and use of language, learning, mobility, self-direction, and capacity for independent living. For the purpose of this section, the inability to perform an activity or task results from a mental, emotional, psychological, sensory, or physical disability, condition, or illness.


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(d) "Informed choice" means a voluntary decision made by the person or the person's legal representative, after becoming familiarized with the alternatives to:

(1) select a preferred alternative from a number of feasible alternatives;

(2) select an alternative which may be developed in the future; and

(3) refuse any or all alternatives.

(e) "Local agency" means the local agency authorized by the county board to carry out the provisions of this section.

(f) "Person" or "persons" means a person or persons meeting the eligibility criteria in subdivision 3.

(g) "Responsible individual" "Authorized representative" means an individual designated by the person or their legal representative to act on their behalf. This individual may be a family member, guardian, representative payee, or other individual designated by the person or their legal representative, if any, to assist in purchasing and arranging for supports. For the purposes of this section, a responsible individual an authorized representative is at least 18 years of age.

(h) "Screening" means the screening of a person's service needs under sections 256B.0911 and 256B.092.

(i) "Supports" means services, care, aids, home modifications, or assistance purchased by the person or the person's family. Examples of supports include respite care, assistance with daily living, and adaptive aids. For the purpose of this section, notwithstanding the provisions of section 144A.43, supports purchased under the consumer support program are not considered home care services.

(j) "Program of origination" means the program the individual transferred from when approved for the consumer support grant program.

Sec. 12. Minnesota Statutes 1996, section 256.476, subdivision 3, is amended to read:

Subd. 3. [ELIGIBILITY TO APPLY FOR GRANTS.] (a) A person is eligible to apply for a consumer support grant if the person meets all of the following criteria:

(1) the person is eligible for and has been approved to receive services under medical assistance as determined under sections 256B.055 and 256B.056 or the person is eligible for and has been approved to receive services under alternative care services as determined under section 256B.0913 or the person has been approved to receive a grant under the developmental disability family support program under section 252.32;

(2) the person is able to direct and purchase the person's own care and supports, or the person has a family member, legal representative, or other responsible individual authorized representative who can purchase and arrange supports on the person's behalf;

(3) the person has functional limitations, requires ongoing supports to live in the community, and is at risk of or would continue institutionalization without such supports; and

(4) the person will live in a home. For the purpose of this section, "home" means the person's own home or home of a person's family member. These homes are natural home settings and are not licensed by the department of health or human services.

(b) Persons may not concurrently receive a consumer support grant if they are:

(1) receiving home and community-based services under United States Code, title 42, section 1396h(c); personal care attendant and home health aide services under section 256B.0625; a developmental disability family support grant; or alternative care services under section 256B.0913; or

(2) residing in an institutional or congregate care setting.


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(c) A person or person's family receiving a consumer support grant shall not be charged a fee or premium by a local agency for participating in the program. A person or person's family is not eligible for a consumer support grant if their income is at a level where they are required to pay a parental fee under sections 252.27, 256B.055, subdivision 12, and 256B.14 and rules adopted under those sections for medical assistance services to a disabled child living with at least one parent.

(d) The commissioner may limit the participation of nursing facility residents, residents of intermediate care facilities for persons with mental retardation, and the recipients of services from federal waiver programs in the consumer support grant program if the participation of these individuals will result in an increase in the cost to the state.

(e) The commissioner shall establish a budgeted appropriation each fiscal year for the consumer support grant program. The number of individuals participating in the program will be adjusted so the total amount allocated to counties does not exceed the amount of the budgeted appropriation. The budgeted appropriation will be adjusted annually to accommodate changes in demand for the consumer support grants.

Sec. 13. Minnesota Statutes 1996, section 256.476, subdivision 4, is amended to read:

Subd. 4. [SUPPORT GRANTS; CRITERIA AND LIMITATIONS.] (a) A county board may choose to participate in the consumer support grant program. If a county board chooses to participate in the program, the local agency shall establish written procedures and criteria to determine the amount and use of support grants. These procedures must include, at least, the availability of respite care, assistance with daily living, and adaptive aids. The local agency may establish monthly or annual maximum amounts for grants and procedures where exceptional resources may be required to meet the health and safety needs of the person on a time-limited basis, however, the total amount awarded to each individual may not exceed the limits established in subdivision 5, paragraph (f).

(b) Support grants to a person or a person's family may will be provided through a monthly subsidy or lump sum payment basis and be in the form of cash, voucher, or direct county payment to vendor. Support grant amounts must be determined by the local agency. Each service and item purchased with a support grant must meet all of the following criteria:

(1) it must be over and above the normal cost of caring for the person if the person did not have functional limitations;

(2) it must be directly attributable to the person's functional limitations;

(3) it must enable the person or the person's family to delay or prevent out-of-home placement of the person; and

(4) it must be consistent with the needs identified in the service plan, when applicable.

(c) Items and services purchased with support grants must be those for which there are no other public or private funds available to the person or the person's family. Fees assessed to the person or the person's family for health and human services are not reimbursable through the grant.

(d) In approving or denying applications, the local agency shall consider the following factors:

(1) the extent and areas of the person's functional limitations;

(2) the degree of need in the home environment for additional support; and

(3) the potential effectiveness of the grant to maintain and support the person in the family environment or the person's own home.

(e) At the time of application to the program or screening for other services, the person or the person's family shall be provided sufficient information to ensure an informed choice of alternatives by the person, the person's legal representative, if any, or the person's family. The application shall be made to the local agency and shall specify the needs of the person and family, the form and amount of grant requested, the items and services to be reimbursed, and evidence of eligibility for medical assistance or alternative care program.


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(f) Upon approval of an application by the local agency and agreement on a support plan for the person or person's family, the local agency shall make grants to the person or the person's family. The grant shall be in an amount for the direct costs of the services or supports outlined in the service agreement.

(g) Reimbursable costs shall not include costs for resources already available, such as special education classes, day training and habilitation, case management, other services to which the person is entitled, medical costs covered by insurance or other health programs, or other resources usually available at no cost to the person or the person's family.

(h) The state of Minnesota, the county boards participating in the consumer support grant program, or the agencies acting on behalf of the county boards in the implementation and administration of the consumer support grant program shall not be liable for damages, injuries, or liabilities sustained through the purchase of support by the individual, the individual's family, or the authorized representative under this section with funds received through the consumer support grant program. Liabilities include but are not limited to: workers' compensation liability, the Federal Insurance Contributions Act (FICA), or the Federal Unemployment Tax Act (FUTA). For purposes of this section, participating county boards and agencies acting on behalf of county boards are exempt from the provisions of section 268.04.

Sec. 14. Minnesota Statutes 1996, section 256.476, subdivision 5, is amended to read:

Subd. 5. [REIMBURSEMENT, ALLOCATIONS, AND REPORTING.] (a) For the purpose of transferring persons to the consumer support grant program from specific programs or services, such as the developmental disability family support program and alternative care program, personal care attendant, home health aide, or nursing facility services, the amount of funds transferred by the commissioner between the developmental disability family support program account, the alternative care account, the medical assistance account, or the consumer support grant account shall be based on each county's participation in transferring persons to the consumer support grant program from those programs and services.

(b) At the beginning of each fiscal year, county allocations for consumer support grants shall be based on:

(1) the number of persons to whom the county board expects to provide consumer supports grants;

(2) their eligibility for current program and services;

(3) the amount of nonfederal dollars expended on those individuals for those programs and services; or in situations where an individual is unable to obtain the support needed from the program of origination due to the unavailability of service providers at the time or the location where the supports are needed, the allocation will be based on the county's best estimate of the nonfederal dollars that would have been expended if the services had been available; and

(4) projected dates when persons will start receiving grants. County allocations shall be adjusted periodically by the commissioner based on the actual transfer of persons or service openings, and the nonfederal dollars associated with those persons or service openings, to the consumer support grant program.

(c) The amount of funds transferred by the commissioner from the alternative care account and the medical assistance account for an individual may be changed if it is determined by the county or its agent that the individual's need for support has changed.

(d) The authority to utilize funds transferred to the consumer support grant account for the purposes of implementing and administering the consumer support grant program will not be limited or constrained by the spending authority provided to the program of origination.

(e) The commissioner shall use up to five percent of each county's allocation, as adjusted, for payments to that county for administrative expenses, to be paid as a proportionate addition to reported direct service expenditures.

(d) (f) Except as provided below, the county allocation for each individual or individual's family cannot exceed 80 percent of the total nonfederal dollars expended on the individual by the program of origination except for the developmental disabilities family support grant program which can be approved up to 100 percent of the nonfederal dollars and in situations as described in paragraph (b), clause (4). In situations where exceptional need exists or the individual's need for support


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increases, up to 100 percent of the nonfederal dollars expended may be allocated to the county. Allocations that exceed 80 percent of the nonfederal dollars expended on the individual by the program of origination must be approved by the commissioner. The remainder of the amount expended on the individual by the program of origination will be used in the following proportions: half will be made available to the consumer support grant program and participating counties for consumer training, resource development, and other costs, and half will be returned to the state general fund.

(g) The commissioner may recover, suspend, or withhold payments if the county board, local agency, or grantee does not comply with the requirements of this section.

Sec. 15. Minnesota Statutes 1996, section 256.9363, subdivision 7, is amended to read:

Subd. 7. [MANAGED CARE PLAN VENDOR REQUIREMENTS.] The following requirements apply to all counties or vendors who contract with the department of human services to serve MinnesotaCare recipients. Managed care plan contractors:

(1) shall authorize and arrange for the provision of the full range of services listed in section 256.9353, except dental services provided under section 256B.037, in order to ensure appropriate health care is delivered to enrollees;

(2) shall accept the prospective, per capita payment or other contractually defined payment from the commissioner in return for the provision and coordination of covered health care services for eligible individuals enrolled in the program;

(3) may contract with other health care and social service practitioners to provide services to enrollees;

(4) shall provide for an enrollee grievance process as required by the commissioner and set forth in the contract with the department;

(5) shall retain all revenue from enrollee copayments;

(6) shall accept all eligible MinnesotaCare enrollees, without regard to health status or previous utilization of health services;

(7) shall demonstrate capacity to accept financial risk according to requirements specified in the contract with the department. A health maintenance organization licensed under chapter 62D, or a nonprofit health plan licensed under chapter 62C, is not required to demonstrate financial risk capacity, beyond that which is required to comply with chapters 62C and 62D; and

(8) shall submit information as required by the commissioner, including data required for assessing enrollee satisfaction, quality of care, cost, and utilization of services.

Sec. 16. Minnesota Statutes 1996, section 256.969, subdivision 1, is amended to read:

Subdivision 1. [HOSPITAL COST INDEX.] (a) The hospital cost index shall be the change in the Consumer Price Index-All Items (United States city average) (CPI-U) forecasted by Data Resources, Inc. The commissioner shall use the indices as forecasted in the third quarter of the calendar year prior to the rate year. The hospital cost index may be used to adjust the base year operating payment rate through the rate year on an annually compounded basis.

(b) For fiscal years beginning on or after July 1, 1993, the commissioner of human services shall not provide automatic annual inflation adjustments for hospital payment rates under medical assistance, nor under general assistance medical care, except that the inflation adjustments under paragraph (a) for medical assistance, excluding general assistance medical care, shall apply through calendar year 1997 1999. The commissioner of finance shall include as a budget change request in each biennial detailed expenditure budget submitted to the legislature under section 16A.11 annual adjustments in hospital payment rates under medical assistance and general assistance medical care, based upon the hospital cost index.


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Sec. 17. Minnesota Statutes 1996, section 256.9695, subdivision 1, is amended to read:

Subdivision 1. [APPEALS.] A hospital may appeal a decision arising from the application of standards or methods under section 256.9685, 256.9686, or 256.969, if an appeal would result in a change to the hospital's payment rate or payments. Both overpayments and underpayments that result from the submission of appeals shall be implemented. Regardless of any appeal outcome, relative values shall not be recalculated. The appeal shall be heard by an administrative law judge according to sections 14.57 to 14.62, or upon agreement by both parties, according to a modified appeals procedure established by the commissioner and the office of administrative hearings. In any proceeding under this section, the appealing party must demonstrate by a preponderance of the evidence that the commissioner's determination is incorrect or not according to law.

(a) To appeal a payment rate or payment determination or a determination made from base year information, the hospital shall file a written appeal request to the commissioner within 60 days of the date the payment rate determination was mailed. The appeal request shall specify: (i) the disputed items; (ii) the authority in federal or state statute or rule upon which the hospital relies for each disputed item; and (iii) the name and address of the person to contact regarding the appeal. Facts to be considered in any appeal of base year information are limited to those in existence at the time the payment rates of the first rate year were established from the base year information. In the case of Medicare settled appeals, the 60-day appeal period shall begin on the mailing date of the notice by the Medicare program or the date the medical assistance payment rate determination notice is mailed, whichever is later.

(b) To appeal a payment rate or payment change that results from a difference in case mix between the base year and a rate year, the procedures and requirements of paragraph (a) apply. However, the appeal must be filed with the commissioner within 120 days after the end of a rate year. A case mix appeal must apply to the cost of services to all medical assistance patients that received inpatient services from the hospital during the rate year appealed. For case mix appeals filed after January 1, 1997, the difference in case mix and the corresponding payment adjustment must exceed a threshold of five percent.

Sec. 18. Minnesota Statutes 1996, section 256B.037, subdivision 1a, is amended to read:

Subd. 1a. [MULTIPLE DENTAL PLAN AREAS.] After the department has executed contracts with dental plans to provide covered dental care services in a multiple dental plan area, the department shall:

(1) inform applicants and recipients, in writing, of available dental plans, when written notice of dental plan selection must be submitted to the department, and when dental plan participation begins;

(2) randomly assign to a dental plan recipients who fail to notify the department in writing of their dental plan choice; and

(3) notify recipients, in writing, of their assigned dental plan before the effective date of the recipient's dental plan participation.

Sec. 19. Minnesota Statutes 1996, section 256B.037, subdivision 2, is amended to read:

Subd. 2. [ESTABLISHMENT OF PREPAYMENT RATES.] The commissioner shall consult with an independent actuary to establish prepayment rates, but shall retain final authority over the methodology used to establish the rates. Payment rates may be adjusted to reflect increased availability of providers under the demonstration project in subdivision 1. The commissioner may negotiate contracts which make payment after the month of coverage. The prepayment dental rates under this section, combined with other prepaid programs, shall not result in payments that exceed the per capita expenditures that would have been made for dental services by the programs under a fee-for-service reimbursement system. The package of dental benefits provided to individuals under this subdivision shall not be less than the package of benefits provided under the medical assistance fee-for-service reimbursement system for dental services program for which they are eligible.

Sec. 20. Minnesota Statutes 1996, section 256B.04, is amended by adding a subdivision to read:

Subd. 1a. [COMPREHENSIVE HEALTH SERVICES SYSTEM.] The commissioner shall carry out the duties in this section with the participation of the boards of county commissioners, and with full consideration for the interests of counties, to plan and implement a unified, accountable, comprehensive health services system that:

(1) promotes accessible and quality health care for all Minnesotans;


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(2) assures provision of adequate health care within limited state and county resources;

(3) avoids shifting funding burdens to county tax resources;

(4) provides statewide eligibility, benefit, and service expectations;

(5) manages care, develops risk management strategies, and contains cost in all health and human services; and

(6) supports effective implementation of publicly funded health and human services for all areas of the state.

Sec. 21. Minnesota Statutes 1996, section 256B.055, subdivision 12, is amended to read:

Subd. 12. [DISABLED CHILDREN.] (a) A person is eligible for medical assistance if the person is under age 19 and qualifies as a disabled individual under United States Code, title 42, section 1382c(a), and would be eligible for medical assistance under the state plan if residing in a medical institution, and the child requires a level of care provided in a hospital, nursing facility, or intermediate care facility for persons with mental retardation or related conditions, for whom home care is appropriate, provided that the cost to medical assistance under this section is not more than the amount that medical assistance would pay for if the child resides in an institution. After the child is determined to be eligible under this section, the commissioner shall review the child's disability under United States Code, title 42, section 1382c(a) and level of care defined under this section no more often than annually and may elect, based on the recommendation of health care professionals under contract with the state medical review team, to extend the review of disability and level of care up to a maximum of four years. The commissioner's decision on the frequency of continuing review of disability and level of care is not subject to administrative appeal under section 256.045. Nothing in this subdivision shall be construed as affecting other redeterminations of medical assistance eligibility under this chapter and annual cost-effective reviews under this section.

(b) For purposes of this subdivision, "hospital" means an institution as defined in section 144.696, subdivision 3, 144.55, subdivision 3, or Minnesota Rules, part 4640.3600, and licensed pursuant to sections 144.50 to 144.58. For purposes of this subdivision, a child requires a level of care provided in a hospital if the child is determined by the commissioner to need an extensive array of health services, including mental health services, for an undetermined period of time, whose health condition requires frequent monitoring and treatment by a health care professional or by a person supervised by a health care professional, who would reside in a hospital or require frequent hospitalization if these services were not provided, and the daily care needs are more complex than a nursing facility level of care.

A child with serious emotional disturbance requires a level of care provided in a hospital if the commissioner determines that the individual requires 24-hour supervision because the person exhibits recurrent or frequent suicidal or homicidal ideation or behavior, recurrent or frequent psychosomatic disorders or somatopsychic disorders that may become life threatening, recurrent or frequent severe socially unacceptable behavior associated with psychiatric disorder, ongoing and chronic psychosis or severe, ongoing and chronic developmental problems requiring continuous skilled observation, or severe disabling symptoms for which office-centered outpatient treatment is not adequate, and which overall severely impact the individual's ability to function.

(c) For purposes of this subdivision, "nursing facility" means a facility which provides nursing care as defined in section 144A.01, subdivision 5, licensed pursuant to sections 144A.02 to 144A.10, which is appropriate if a person is in active restorative treatment; is in need of special treatments provided or supervised by a licensed nurse; or has unpredictable episodes of active disease processes requiring immediate judgment by a licensed nurse. For purposes of this subdivision, a child requires the level of care provided in a nursing facility if the child is determined by the commissioner to meet the requirements of the preadmission screening assessment document under section 256B.0911 and the home care independent rating document under section 256B.0627, subdivision 5, paragraph (f), item (iii), adjusted to address age-appropriate standards for children age 18 and under, pursuant to section 256B.0627, subdivision 5, paragraph (d), clause (2).

(d) For purposes of this subdivision, "intermediate care facility for persons with mental retardation or related conditions" or "ICF/MR" means a program licensed to provide services to persons with mental retardation under section 252.28, and chapter 245A, and a physical plant licensed as a supervised living facility under chapter 144, which together are certified by the Minnesota department of health as meeting the standards in Code of Federal Regulations, title 42, part 483, for an


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intermediate care facility which provides services for persons with mental retardation or persons with related conditions who require 24-hour supervision and active treatment for medical, behavioral, or habilitation needs. For purposes of this subdivision, a child requires a level of care provided in an ICF/MR if the commissioner finds that the child has mental retardation or a related condition in accordance with section 256B.092, is in need of a 24-hour plan of care and active treatment similar to persons with mental retardation, and there is a reasonable indication that the child will need ICF/MR services.

(e) For purposes of this subdivision, a person requires the level of care provided in a nursing facility if the person requires 24-hour monitoring or supervision and a plan of mental health treatment because of specific symptoms or functional impairments associated with a serious mental illness or disorder diagnosis, which meet severity criteria for mental health established by the commissioner based on standards developed for the Wisconsin Katie Beckett program and published in July 1994 March 1997 as the Minnesota Mental Health Level of Care for Children and Adolescents with Severe Emotional Disorders.

(f) The determination of the level of care needed by the child shall be made by the commissioner based on information supplied to the commissioner by the parent or guardian, the child's physician or physicians, and other professionals as requested by the commissioner. The commissioner shall establish a screening team to conduct the level of care determinations according to this subdivision.

(g) If a child meets the conditions in paragraph (b), (c), (d), or (e), the commissioner must assess the case to determine whether:

(1) the child qualifies as a disabled individual under United States Code, title 42, section 1382c(a), and would be eligible for medical assistance if residing in a medical institution; and

(2) the cost of medical assistance services for the child, if eligible under this subdivision, would not be more than the cost to medical assistance if the child resides in a medical institution to be determined as follows:

(i) for a child who requires a level of care provided in an ICF/MR, the cost of care for the child in an institution shall be determined using the average payment rate established for the regional treatment centers that are certified as ICFs/MR;

(ii) for a child who requires a level of care provided in an inpatient hospital setting according to paragraph (b), cost-effectiveness shall be determined according to Minnesota Rules, part 9505.3520, items F and G; and

(iii) for a child who requires a level of care provided in a nursing facility according to paragraph (c) or (e), cost-effectiveness shall be determined according to Minnesota Rules, part 9505.3040, except that the nursing facility average rate shall be adjusted to reflect rates which would be paid for children under age 16. The commissioner may authorize an amount up to the amount medical assistance would pay for a child referred to the commissioner by the preadmission screening team under section 256B.0911.

(h) Children eligible for medical assistance services under section 256B.055, subdivision 12, as of June 30, 1995, must be screened according to the criteria in this subdivision prior to January 1, 1996. Children found to be ineligible may not be removed from the program until January 1, 1996.

Sec. 22. Minnesota Statutes 1996, section 256B.056, subdivision 4, is amended to read:

Subd. 4. [INCOME.] To be eligible for medical assistance, a person must not have, or anticipate receiving, semiannual income in excess of 120 percent of the income standards by family size used in the aid to families with dependent children program, except that families and children may have an income up to 133-1/3 percent of the AFDC income standard. In computing income to determine eligibility of persons who are not residents of long-term care facilities, the commissioner shall disregard increases in income as required by Public Law Numbers 94-566, section 503; 99-272; and 99-509. Veterans aid and attendance benefits and Veterans Administration unusual medical expense payments are considered income to the recipient.


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Sec. 23. Minnesota Statutes 1996, section 256B.056, subdivision 5, is amended to read:

Subd. 5. [EXCESS INCOME.] A person who has excess income is eligible for medical assistance if the person has expenses for medical care that are more than the amount of the person's excess income, computed by deducting incurred medical expenses from the excess income to reduce the excess to the income standard specified in subdivision 4. The person shall elect to have the medical expenses deducted at the beginning of a one-month budget period or at the beginning of a six-month budget period. Until June 30, 1993, or the date the Medicaid Management Information System (MMIS) upgrade is implemented, whichever occurs last, The commissioner shall allow persons eligible for assistance on a one-month spenddown basis under this subdivision to elect to pay the monthly spenddown amount in advance of the month of eligibility to the local state agency in order to maintain eligibility on a continuous basis. If the recipient does not pay the spenddown amount on or before the 10th 20th of the month, the recipient is ineligible for this option for the following month. The local agency must deposit spenddown payments into its treasury and issue a monthly payment to the state agency with the necessary individual account information. The local agency shall code the client eligibility Medicaid Management Information System (MMIS) to indicate that the spenddown obligation has been satisfied for the month paid recipient has elected this option. The state agency shall convey this information recipient eligibility information relative to the collection of the spenddown to providers through eligibility cards which list no remaining spenddown obligation. After the implementation of the MMIS upgrade, the Electronic Verification System (EVS). A recipient electing advance payment must pay the state agency the monthly spenddown amount on or before the 10th 20th of the month in order to be eligible for this option in the following month.

Sec. 24. Minnesota Statutes 1996, section 256B.057, subdivision 1, is amended to read:

Subdivision 1. [PREGNANT WOMEN AND INFANTS.] An infant less than one year of age or a pregnant woman who has written verification of a positive pregnancy test from a physician or licensed registered nurse, is eligible for medical assistance if countable family income is equal to or less than 275 percent of the federal poverty guideline for the same family size. For purposes of this subdivision, "countable family income" means the amount of income considered available using the methodology of the AFDC program, except for the earned income disregard and employment deductions. An amount equal to the amount of earned income exceeding 275 percent of the federal poverty guideline, up to a maximum of the amount by which the combined total of 185 percent of the federal poverty guideline plus the earned income disregards and deductions of the AFDC program exceeds 275 percent of the federal poverty guideline will be deducted for pregnant women and infants less than one year of age. Eligibility for a pregnant woman or infant less than one year of age under this subdivision must be determined without regard to asset standards established in section 256B.056, subdivision 3.

An infant born on or after January 1, 1991, to a woman who was eligible for and receiving medical assistance on the date of the child's birth shall continue to be eligible for medical assistance without redetermination until the child's first birthday, as long as the child remains in the woman's household.

Sec. 25. Minnesota Statutes 1996, section 256B.057, subdivision 1b, is amended to read:

Subd. 1b. [PREGNANT WOMEN AND INFANTS; EXPANSION.] This subdivision supersedes subdivision 1 as long as the Minnesota health care reform waiver remains in effect. When the waiver expires, the commissioner of human services shall publish a notice in the State Register and notify the revisor of statutes. An infant less than two years of age or a pregnant woman who has written verification of a positive pregnancy test from a physician or licensed registered nurse, is eligible for medical assistance if countable family income is equal to or less than 275 percent of the federal poverty guideline for the same family size. For purposes of this subdivision, "countable family income" means the amount of income considered available using the methodology of the AFDC program, except for the earned income disregard and employment deductions. An amount equal to the amount of earned income exceeding 275 percent of the federal poverty guideline, up to a maximum of the amount by which the combined total of 185 percent of the federal poverty guideline plus the earned income disregards and deductions of the AFDC program exceeds 275 percent of the federal poverty guideline will be deducted for pregnant women and infants less than two years of age. Eligibility for a pregnant woman or infant less than two years of age under this subdivision must be determined without regard to asset standards established in section 256B.056, subdivision 3.

An infant born on or after January 1, 1991, to a woman who was eligible for and receiving medical assistance on the date of the child's birth shall continue to be eligible for medical assistance without redetermination until the child's second birthday, as long as the child remains in the woman's household.


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Sec. 26. Minnesota Statutes 1996, section 256B.057, subdivision 2, is amended to read:

Subd. 2. [CHILDREN.] A child one through five years of age in a family whose countable income is less than 133 percent of the federal poverty guidelines for the same family size, is eligible for medical assistance. A child six through 18 years of age, who was born after September 30, 1983, in a family whose countable income is less than 100 percent of the federal poverty guidelines for the same family size is eligible for medical assistance. Eligibility for children under this subdivision must be determined without regard to asset standards established in section 256B.056, subdivision 3.

Sec. 27. Minnesota Statutes 1996, section 256B.0625, is amended by adding a subdivision to read:

Subd. 31a. [AUGMENTATIVE AND ALTERNATIVE COMMUNICATION SYSTEMS.] (a) Medical assistance covers augmentative and alternative communication systems consisting of electronic or nonelectronic devices and the related components necessary to enable a person with severe expressive communication limitations to produce or transmit messages or symbols in a manner that compensates for that disability.

(b) By January 1, 1998, the commissioner, in cooperation with the commissioner of administration, shall establish an augmentative and alternative communication system purchasing program within a state agency or by contract with a qualified private entity. The purpose of this service is to facilitate ready availability of the augmentative and alternative communication systems needed to meet the needs of persons with severe expressive communication limitations in an efficient and cost-effective manner. This program shall:

(1) coordinate purchase and rental of augmentative and alternative communication systems;

(2) negotiate agreements with manufacturers and vendors for purchase of components of these systems, for warranty coverage, and for repair service;

(3) when efficient and cost-effective, maintain and refurbish if needed, an inventory of components of augmentative and alternative communication systems for short- or long-term loan to recipients;

(4) facilitate training sessions for service providers, consumers, and families on augmentative and alternative communication systems; and

(5) develop a recycling program for used augmentative and alternative communications systems to be reissued and used for trials and short-term use, when appropriate.

The availability of components of augmentative and alternative communication systems through this program is subject to prior authorization requirements established under subdivision 25.

Reimbursement rates established by this purchasing program are not subject to Minnesota Rules, part 9505.0445, item S or T.

(c) Augmentative and alternative communication systems and related components that are prior authorized by the department through pass through vendors during the period from January 1, 1997, until the augmentative and alternative communication system purchasing program or other alternatives are operational shall be paid under the medical assistance program at the actual price charged the pass through vendor plus 20 percent to cover administrative costs of prior authorization and billing and shipping charges.

Sec. 28. Minnesota Statutes 1996, section 256B.0626, is amended to read:

256B.0626 [ESTIMATION OF 50TH PERCENTILE OF PREVAILING CHARGES.]

(a) The 50th percentile of the prevailing charge for the base year identified in statute must be estimated by the commissioner in the following situations:

(1) there were less than ten five billings in the calendar year specified in legislation governing maximum payment rates;


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(2) the service was not available in the calendar year specified in legislation governing maximum payment rates;

(3) the payment amount is the result of a provider appeal;

(4) the procedure code description has changed since the calendar year specified in legislation governing maximum payment rates, and, therefore, the prevailing charge information reflects the same code but a different procedure description; or

(5) the 50th percentile reflects a payment which is grossly inequitable when compared with payment rates for procedures or services which are substantially similar.

(b) When one of the situations identified in paragraph (a) occurs, the commissioner shall use the following methodology to reconstruct a rate comparable to the 50th percentile of the prevailing rate:

(1) refer to information which exists for the first nine four billings in the calendar year specified in legislation governing maximum payment rates; or

(2) refer to surrounding or comparable procedure codes; or

(3) refer to the 50th percentile of years subsequent to the calendar year specified in legislation governing maximum payment rates, and reduce that amount by applying an appropriate Consumer Price Index formula; or

(4) refer to relative value indexes; or

(5) refer to reimbursement information from other third parties, such as Medicare.

Sec. 29. Minnesota Statutes 1996, section 256B.0627, subdivision 5, is amended to read:

Subd. 5. [LIMITATION ON PAYMENTS.] Medical assistance payments for home care services shall be limited according to this subdivision.

(a) [LIMITS ON SERVICES WITHOUT PRIOR AUTHORIZATION.] A recipient may receive the following home care services during a calendar year:

(1) any initial assessment; and

(2) up to two reassessments per year done to determine a recipient's need for personal care services; and

(3) up to five skilled nurse visits.

(b) [PRIOR AUTHORIZATION; EXCEPTIONS.] All home care services above the limits in paragraph (a) must receive the commissioner's prior authorization, except when:

(1) the home care services were required to treat an emergency medical condition that if not immediately treated could cause a recipient serious physical or mental disability, continuation of severe pain, or death. The provider must request retroactive authorization no later than five working days after giving the initial service. The provider must be able to substantiate the emergency by documentation such as reports, notes, and admission or discharge histories;

(2) the home care services were provided on or after the date on which the recipient's eligibility began, but before the date on which the recipient was notified that the case was opened. Authorization will be considered if the request is submitted by the provider within 20 working days of the date the recipient was notified that the case was opened;

(3) a third-party payor for home care services has denied or adjusted a payment. Authorization requests must be submitted by the provider within 20 working days of the notice of denial or adjustment. A copy of the notice must be included with the request;


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(4) the commissioner has determined that a county or state human services agency has made an error; or

(5) the professional nurse determines an immediate need for up to 40 skilled nursing or home health aide visits per calendar year and submits a request for authorization within 20 working days of the initial service date, and medical assistance is determined to be the appropriate payer.

(c) [RETROACTIVE AUTHORIZATION.] A request for retroactive authorization will be evaluated according to the same criteria applied to prior authorization requests.

(d) [ASSESSMENT AND SERVICE PLAN.] Assessments under section 256B.0627, subdivision 1, paragraph (a), shall be conducted initially, and at least annually thereafter, in person with the recipient and result in a completed service plan using forms specified by the commissioner. Within 30 days of recipient or responsible party request for home care services, the assessment, the service plan, and other information necessary to determine medical necessity such as diagnostic or testing information, social or medical histories, and hospital or facility discharge summaries shall be submitted to the commissioner. For personal care services:

(1) The amount and type of service authorized based upon the assessment and service plan will follow the recipient if the recipient chooses to change providers.

(2) If the recipient's medical need changes, the recipient's provider may assess the need for a change in service authorization and request the change from the county public health nurse. Within 30 days of the request, the public health nurse will determine whether to request the change in services based upon the provider assessment, or conduct a home visit to assess the need and determine whether the change is appropriate.

(3) To continue to receive personal care services when the recipient displays no significant change, the county public health nurse has the option to review with the commissioner, or the commissioner's designee, the service plan on record and receive authorization for up to an additional 12 months at a time for up to three years.

(e) [PRIOR AUTHORIZATION.] The commissioner, or the commissioner's designee, shall review the assessment, the service plan, and any additional information that is submitted. The commissioner shall, within 30 days after receiving a complete request, assessment, and service plan, authorize home care services as follows:

(1) [HOME HEALTH SERVICES.] All home health services provided by a licensed nurse or a home health aide must be prior authorized by the commissioner or the commissioner's designee. Prior authorization must be based on medical necessity and cost-effectiveness when compared with other care options. When home health services are used in combination with personal care and private duty nursing, the cost of all home care services shall be considered for cost-effectiveness. The commissioner shall limit nurse and home health aide visits to no more than one visit each per day.

(2) [PERSONAL CARE SERVICES.] (i) All personal care services and registered nurse supervision must be prior authorized by the commissioner or the commissioner's designee except for the assessments established in paragraph (a). The amount of personal care services authorized must be based on the recipient's home care rating. A child may not be found to be dependent in an activity of daily living if because of the child's age an adult would either perform the activity for the child or assist the child with the activity and the amount of assistance needed is similar to the assistance appropriate for a typical child of the same age. Based on medical necessity, the commissioner may authorize:

(A) up to two times the average number of direct care hours provided in nursing facilities for the recipient's comparable case mix level; or

(B) up to three times the average number of direct care hours provided in nursing facilities for recipients who have complex medical needs or are dependent in at least seven activities of daily living and need physical assistance with eating or have a neurological diagnosis; or

(C) up to 60 percent of the average reimbursement rate, as of July 1, 1991, for care provided in a regional treatment center for recipients who have Level I behavior, plus any inflation adjustment as provided by the legislature for personal care service; or


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(D) up to the amount the commissioner would pay, as of July 1, 1991, plus any inflation adjustment provided for home care services, for care provided in a regional treatment center for recipients referred to the commissioner by a regional treatment center preadmission evaluation team. For purposes of this clause, home care services means all services provided in the home or community that would be included in the payment to a regional treatment center; or

(E) up to the amount medical assistance would reimburse for facility care for recipients referred to the commissioner by a preadmission screening team established under section 256B.0911 or 256B.092; and

(F) a reasonable amount of time for the provision of nursing supervision of personal care services.

(ii) The number of direct care hours shall be determined according to the annual cost report submitted to the department by nursing facilities. The average number of direct care hours, as established by May 1, 1992, shall be calculated and incorporated into the home care limits on July 1, 1992. These limits shall be calculated to the nearest quarter hour.

(iii) The home care rating shall be determined by the commissioner or the commissioner's designee based on information submitted to the commissioner by the county public health nurse on forms specified by the commissioner. The home care rating shall be a combination of current assessment tools developed under sections 256B.0911 and 256B.501 with an addition for seizure activity that will assess the frequency and severity of seizure activity and with adjustments, additions, and clarifications that are necessary to reflect the needs and conditions of recipients who need home care including children and adults under 65 years of age. The commissioner shall establish these forms and protocols under this section and shall use an advisory group, including representatives of recipients, providers, and counties, for consultation in establishing and revising the forms and protocols.

(iv) A recipient shall qualify as having complex medical needs if the care required is difficult to perform and because of recipient's medical condition requires more time than community-based standards allow or requires more skill than would ordinarily be required and the recipient needs or has one or more of the following:

(A) daily tube feedings;

(B) daily parenteral therapy;

(C) wound or decubiti care;

(D) postural drainage, percussion, nebulizer treatments, suctioning, tracheotomy care, oxygen, mechanical ventilation;

(E) catheterization;

(F) ostomy care;

(G) quadriplegia; or

(H) other comparable medical conditions or treatments the commissioner determines would otherwise require institutional care.

(v) A recipient shall qualify as having Level I behavior if there is reasonable supporting evidence that the recipient exhibits, or that without supervision, observation, or redirection would exhibit, one or more of the following behaviors that cause, or have the potential to cause:

(A) injury to the recipient's own body;

(B) physical injury to other people; or

(C) destruction of property.

(vi) Time authorized for personal care relating to Level I behavior in subclause (v), items (A) to (C), shall be based on the predictability, frequency, and amount of intervention required.


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(vii) A recipient shall qualify as having Level II behavior if the recipient exhibits on a daily basis one or more of the following behaviors that interfere with the completion of personal care services under subdivision 4, paragraph (a):

(A) unusual or repetitive habits;

(B) withdrawn behavior; or

(C) offensive behavior.

(viii) A recipient with a home care rating of Level II behavior in subclause (vii), items (A) to (C), shall be rated as comparable to a recipient with complex medical needs under subclause (iv). If a recipient has both complex medical needs and Level II behavior, the home care rating shall be the next complex category up to the maximum rating under subclause (i), item (B).

(3) [PRIVATE DUTY NURSING SERVICES.] All private duty nursing services shall be prior authorized by the commissioner or the commissioner's designee. Prior authorization for private duty nursing services shall be based on medical necessity and cost-effectiveness when compared with alternative care options. The commissioner may authorize medically necessary private duty nursing services in quarter-hour units when:

(i) the recipient requires more individual and continuous care than can be provided during a nurse visit; or

(ii) the cares are outside of the scope of services that can be provided by a home health aide or personal care assistant.

The commissioner may authorize:

(A) up to two times the average amount of direct care hours provided in nursing facilities statewide for case mix classification "K" as established by the annual cost report submitted to the department by nursing facilities in May 1992;

(B) private duty nursing in combination with other home care services up to the total cost allowed under clause (2);

(C) up to 16 hours per day if the recipient requires more nursing than the maximum number of direct care hours as established in item (A) and the recipient meets the hospital admission criteria established under Minnesota Rules, parts 9505.0500 to 9505.0540.

The commissioner may authorize up to 16 hours per day of medically necessary private duty nursing services or up to 24 hours per day of medically necessary private duty nursing services until such time as the commissioner is able to make a determination of eligibility for recipients who are cooperatively applying for home care services under the community alternative care program developed under section 256B.49, or until it is determined by the appropriate regulatory agency that a health benefit plan is or is not required to pay for appropriate medically necessary health care services. Recipients or their representatives must cooperatively assist the commissioner in obtaining this determination. Recipients who are eligible for the community alternative care program may not receive more hours of nursing under this section than would otherwise be authorized under section 256B.49.

(4) [VENTILATOR-DEPENDENT RECIPIENTS.] If the recipient is ventilator-dependent, the monthly medical assistance authorization for home care services shall not exceed what the commissioner would pay for care at the highest cost hospital designated as a long-term hospital under the Medicare program. For purposes of this clause, home care services means all services provided in the home that would be included in the payment for care at the long-term hospital. "Ventilator-dependent" means an individual who receives mechanical ventilation for life support at least six hours per day and is expected to be or has been dependent for at least 30 consecutive days.

(f) [PRIOR AUTHORIZATION; TIME LIMITS.] The commissioner or the commissioner's designee shall determine the time period for which a prior authorization shall be effective. If the recipient continues to require home care services beyond the duration of the prior authorization, the home care provider must request a new prior authorization. Under no circumstances, other than the exceptions in paragraph (b), shall a prior authorization be valid prior to the date the commissioner receives the request or for more than 12 months. A recipient who appeals a reduction in previously authorized


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home care services may continue previously authorized services, other than temporary services under paragraph (h), pending an appeal under section 256.045. The commissioner must provide a detailed explanation of why the authorized services are reduced in amount from those requested by the home care provider.

(g) [APPROVAL OF HOME CARE SERVICES.] The commissioner or the commissioner's designee shall determine the medical necessity of home care services, the level of caregiver according to subdivision 2, and the institutional comparison according to this subdivision, the cost-effectiveness of services, and the amount, scope, and duration of home care services reimbursable by medical assistance, based on the assessment, primary payer coverage determination information as required, the service plan, the recipient's age, the cost of services, the recipient's medical condition, and diagnosis or disability. The commissioner may publish additional criteria for determining medical necessity according to section 256B.04.

(h) [PRIOR AUTHORIZATION REQUESTS; TEMPORARY SERVICES.] The agency nurse, the independently enrolled private duty nurse, or county public health nurse may request a temporary authorization for home care services by telephone. The commissioner may approve a temporary level of home care services based on the assessment, and service or care plan information, and primary payer coverage determination information as required. Authorization for a temporary level of home care services including nurse supervision is limited to the time specified by the commissioner, but shall not exceed 45 days, unless extended because the county public health nurse has not completed the required assessment and service plan, or the commissioner's determination has not been made. The level of services authorized under this provision shall have no bearing on a future prior authorization.

(i) [PRIOR AUTHORIZATION REQUIRED IN FOSTER CARE SETTING.] Home care services provided in an adult or child foster care setting must receive prior authorization by the department according to the limits established in paragraph (a).

The commissioner may not authorize:

(1) home care services that are the responsibility of the foster care provider under the terms of the foster care placement agreement and administrative rules. Requests for home care services for recipients residing in a foster care setting must include the foster care placement agreement and determination of difficulty of care;

(2) personal care services when the foster care license holder is also the personal care provider or personal care assistant unless the recipient can direct the recipient's own care, or case management is provided as required in section 256B.0625, subdivision 19a;

(3) personal care services when the responsible party is an employee of, or under contract with, or has any direct or indirect financial relationship with the personal care provider or personal care assistant, unless case management is provided as required in section 256B.0625, subdivision 19a;

(4) home care services when the number of foster care residents is greater than four unless the county responsible for the recipient's foster placement made the placement prior to April 1, 1992, requests that home care services be provided, and case management is provided as required in section 256B.0625, subdivision 19a; or

(5) home care services when combined with foster care payments, other than room and board payments that exceed the total amount that public funds would pay for the recipient's care in a medical institution.

Sec. 30. Minnesota Statutes 1996, section 256B.064, subdivision 2, is amended to read:

Subd. 2. [IMPOSITION OF MONETARY RECOVERY AND SANCTIONS.] (a) The commissioner shall determine monetary amounts to be recovered and the sanction to be imposed upon a vendor of medical care for conduct described by subdivision 1a. Except in the case of a conviction for conduct described in subdivision 1a as provided in paragraph (b), neither a monetary recovery nor a sanction will be sought imposed by the commissioner without prior notice and an opportunity for a hearing, pursuant according to chapter 14, on the commissioner's proposed action, provided that the commissioner may suspend or reduce payment to a vendor of medical care, except a nursing home or convalescent care facility, after notice and prior to the hearing if in the commissioner's opinion that action is necessary to protect the public welfare and the interests of the program.


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(b) Except for a nursing home or convalescent care facility, the commissioner may withhold or reduce payments to a vendor of medical care without providing advance notice of such withholding or reduction if either of the following occurs:

(1) the vendor is convicted of a crime involving the conduct described in subdivision 1a; or

(2) the commissioner receives reliable evidence of fraud or willful misrepresentation by the vendor.

(c) The commissioner must send notice of the withholding or reduction of payments under paragraph (b) within five days of taking such action. The notice must:

(1) state that payments are being withheld according to paragraph (b);

(2) except in the case of a conviction for conduct described in subdivision 1a, state that the withholding is for a temporary period and cite the circumstances under which withholding will be terminated;

(3) identify the types of claims to which the withholding applies; and

(4) inform the vendor of the right to submit written evidence for consideration by the commissioner.

The withholding or reduction of payments will not continue after the commissioner determines there is insufficient evidence of fraud or willful misrepresentation by the vendor, or after legal proceedings relating to the alleged fraud or willful misrepresentation are completed, unless the commissioner has sent notice of intention to impose monetary recovery or sanctions under paragraph (a).

(d) Upon receipt of a notice under paragraph (a) that a monetary recovery or sanction is to be imposed, a vendor may request a contested case, as defined in section 14.02, subdivision 3, by filing with the commissioner a written request of appeal. The appeal request must be received by the commissioner no later than 30 days after the date the notification of monetary recovery or sanction was mailed to the vendor. The appeal request must specify:

(1) each disputed item, the reason for the dispute, and an estimate of the dollar amount involved for each disputed item;

(2) the computation that the vendor believes is correct;

(3) the authority in statute or rule upon which the vendor relies for each disputed item;

(4) the name and address of the person or entity with whom contacts may be made regarding the appeal; and

(5) other information required by the commissioner.

Sec. 31. Minnesota Statutes 1996, section 256B.0911, subdivision 7, is amended to read:

Subd. 7. [REIMBURSEMENT FOR CERTIFIED NURSING FACILITIES.] (a) Medical assistance reimbursement for nursing facilities shall be authorized for a medical assistance recipient only if a preadmission screening has been conducted prior to admission or the local county agency has authorized an exemption. Medical assistance reimbursement for nursing facilities shall not be provided for any recipient who the local screener has determined does not meet the level of care criteria for nursing facility placement or, if indicated, has not had a level II PASARR evaluation completed unless an admission for a recipient with mental illness is approved by the local mental health authority or an admission for a recipient with mental retardation or related condition is approved by the state mental retardation authority. The county preadmission screening team may deny certified nursing facility admission using the level of care criteria established under section 144.0721 and deny medical assistance reimbursement for certified nursing facility care. Persons receiving care in a certified nursing facility or certified boarding care home who are reassessed by the commissioner of health pursuant to section 144.0722 and determined to no longer meet the level of care criteria for a certified nursing facility or certified boarding care home may no longer remain a resident in the certified nursing facility or certified boarding care home and must be relocated to the community as provided under paragraphs (b), (c), and (d), if the persons were admitted on or after July 1, 1996 1997.


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(b) A resident who, upon reassessment, is determined to no longer meet the level of care criteria for a certified nursing facility or certified boarding care home is deemed to not need the services provided by a nursing facility. Such a resident may not receive medical assistance payment for nursing facility or boarding care services and must be discharged according to this subdivision.

A resident who is determined to no longer need nursing facility services may ask for a reconsideration of the resident's case mix and level of care assessment under section 144.0722. If reconsideration is not requested, the resident may not appeal the assessment. If the resident is determined to not meet the level of care criteria for treatment in a nursing facility, the commissioner of human services shall notify the nursing facility that the resident's health has improved sufficiently so the resident no longer needs the services provided by a nursing facility and that the resident must be discharged within 60 days after the facility receives notice, regardless of the source of payment for the resident's care. The ground for discharge shall be that the resident's health has improved sufficiently so that the resident no longer needs the services of the nursing facility. The nursing facility shall discharge the resident in accordance with federal regulations that govern discharge of residents of certified nursing facilities. If the resident's care is paid for by medical assistance, the commissioner of human services must also notify the resident that medical assistance payment for the resident's nursing facility services will terminate 60 days after the resident receives the notice.

(c) The resident may request, within 14 days of receiving notice of discharge or of termination of medical assistance payments, an assessment from the local screening team defined under section 256B.0911 to determine whether extraordinary circumstances as defined in section 144.0721, subdivision 3, exist. The screening team must issue a written decision within ten days of the resident's request. If the screening team finds that extraordinary circumstances exist, the resident need not be discharged and medical assistance payments shall not be discontinued on the resident's behalf.

(d) A resident notified of discharge or of discontinuance of medical assistance payment under this section may appeal under section 256.045 within 30 days of receiving notice of discharge or of termination of medical assistance payments, or within 30 days of the screening team's decision that extraordinary circumstances do not exist, whichever is later. Medical assistance payments shall continue and the resident shall not be discharged until the commissioner of human services issues a decision on the appeal. The nursing facility may participate in the hearing for the limited purpose of proving that the resident meets the level of care criteria. If, after a hearing, the commissioner of human services determines either that the resident meets the level of care criteria for nursing facility services or that extraordinary circumstances as defined in section 144.0721, subdivision 3, exist, medical assistance shall not be terminated and the resident shall not be discharged. A resident's appeal of discharge under this section may be appealed only under section 256.045 and not section 144.135.

(e) Persons receiving services under section 256B.0913, subdivisions 1 to 14, or 256B.0915 who are reassessed and found to not meet the level of care criteria for admission to a certified nursing facility or certified boarding care home may no longer receive these services if persons were admitted to the program on or after July 1, 1996 1997. Reassessed individuals ineligible for services under section 256B.0913, subdivisions 1 to 14, or 256B.0915, are entitled to an appeal under section 256.045, subdivision 3. The commissioner shall make a request to the health care financing administration for a waiver allowing screening team approval of Medicaid payments for certified nursing facility care. An individual has a choice and makes the final decision between nursing facility placement and community placement after the screening team's recommendation, except as provided in paragraphs (b) and (c).

(b) (f) The local county mental health authority or the state mental retardation authority under Public Law Numbers 100-203 and 101-508 may prohibit admission to a nursing facility, if the individual does not meet the nursing facility level of care criteria or needs specialized services as defined in Public Law Numbers 100-203 and 101-508. For purposes of this section, "specialized services" for a person with mental retardation or a related condition means "active treatment" as that term is defined in Code of Federal Regulations, title 42, section 483.440(a)(1).

(c) (g) Upon the receipt by the commissioner of approval by the Secretary of Health and Human Services of the waiver requested under paragraph (a), the local screener shall deny medical assistance reimbursement for nursing facility care for an individual whose long-term care needs can be met in a community-based setting and whose cost of community-based home care services is less than 75 percent of the average payment for nursing facility care for that individual's case mix classification, and who is either:

(i) a current medical assistance recipient being screened for admission to a nursing facility; or

(ii) an individual who would be eligible for medical assistance within 180 days of entering a nursing facility and who meets a nursing facility level of care.


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(d) (h) Appeals from the screening team's recommendation or the county agency's final decision shall be made according to section 256.045, subdivision 3.

Sec. 32. Minnesota Statutes 1996, section 256B.0913, subdivision 7, is amended to read:

Subd. 7. [CASE MANAGEMENT.] The lead agency shall appoint a social worker from the county agency or a registered nurse from the county public health nursing service of the local board of health to be the case manager for any person receiving services funded by the alternative care program. Providers of case management services for persons receiving services funded by the alternative care program must meet the qualification requirements and standards specified in section 256B.0915, subdivision 1b. The case manager must ensure the health and safety of the individual client and is responsible for the cost-effectiveness of the alternative care individual care plan. The county may allow a case manager employed by the county to delegate certain aspects of the case management activity to another individual employed by the county provided there is oversight of the individual by the case manager. The case manager may not delegate those aspects which require professional judgment including assessments, reassessments, and care plan development.

Sec. 33. Minnesota Statutes 1996, section 256B.0913, subdivision 10, is amended to read:

Subd. 10. [ALLOCATION FORMULA.] (a) The alternative care appropriation for fiscal years 1992 and beyond shall cover only 180-day eligible clients.

(b) Prior to July 1 of each year, the commissioner shall allocate to county agencies the state funds available for alternative care for persons eligible under subdivision 2. The allocation for fiscal year 1992 shall be calculated using a base that is adjusted to exclude the medical assistance share of alternative care expenditures. The adjusted base is calculated by multiplying each county's allocation for fiscal year 1991 by the percentage of county alternative care expenditures for 180-day eligible clients. The percentage is determined based on expenditures for services rendered in fiscal year 1989 or calendar year 1989, whichever is greater.

(c) If the county expenditures for 180-day eligible clients are 95 percent or more of its adjusted base allocation, the allocation for the next fiscal year is 100 percent of the adjusted base, plus inflation to the extent that inflation is included in the state budget.

(d) If the county expenditures for 180-day eligible clients are less than 95 percent of its adjusted base allocation, the allocation for the next fiscal year is the adjusted base allocation less the amount of unspent funds below the 95 percent level.

(e) For fiscal year 1992 only, a county may receive an increased allocation if annualized service costs for the month of May 1991 for 180-day eligible clients are greater than the allocation otherwise determined. A county may apply for this increase by reporting projected expenditures for May to the commissioner by June 1, 1991. The amount of the allocation may exceed the amount calculated in paragraph (b). The projected expenditures for May must be based on actual 180-day eligible client caseload and the individual cost of clients' care plans. If a county does not report its expenditures for May, the amount in paragraph (c) or (d) shall be used.

(f) Calculations for paragraphs (c) and (d) are to be made as follows: for each county, the determination of expenditures shall be based on payments for services rendered from April 1 through March 31 in the base year, to the extent that claims have been submitted by June 1 of that year. Calculations for paragraphs (c) and (d) must also include the funds transferred to the consumer support grant program for clients who have transferred to that program from April 1 through March 31 in the base year.

Sec. 34. Minnesota Statutes 1996, section 256B.0913, subdivision 15, is amended to read:

Subd. 15. [SERVICE ALLOWANCE FUND AVAILABILITY.] (a) Effective July 1, 1996 1997, the commissioner may use alternative care funds for services to high function class A persons as defined in section 144.0721, subdivision 3, clause (2). The county alternative care grant allocation will be supplemented with a special allocation amount based on the projected number of eligible high function class A's and computed on the basis of $240 per month per projected eligible person. Individual monthly expenditures under the service allowance option are permitted to be either greater or less than the amount of $240 per month based on individual need. County allocations shall be adjusted periodically based on the actual provision of services to high function class A persons. The allocation will be distributed by a population based formula and shall not exceed the proportion of projected savings made available under section 144.0721, subdivision 3.


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(b) Counties shall have the option of providing services, cash service allowances, vouchers, or a combination of these options to high function class A persons defined in section 144.0721, subdivision 3, clause (2). High function class A persons may choose services from among the categories of services listed under subdivision 5, except for case management services.

(c) If the special allocation under this section to a county is not sufficient to serve all persons who qualify for alternative care services the service allowance, the county is not required to provide any alternative care services to a high function class A person but shall establish a waiting list to provide services as special allocation funding becomes available.

Sec. 35. Minnesota Statutes 1996, section 256B.0915, subdivision 1b, is amended to read:

Subd. 1b. [PROVIDER QUALIFICATIONS AND STANDARDS.] The commissioner must enroll qualified providers of elderly case management services under the home and community-based waiver for the elderly under section 1915(c) of the Social Security Act. The enrollment process shall ensure the provider's ability to meet the qualification requirements and standards in this subdivision and other federal and state requirements of this service. An elderly case management provider is an enrolled medical assistance provider who is determined by the commissioner to have all of the following characteristics:

(1) the legal authority for alternative care program administration under section 256B.0913;

(2) the demonstrated capacity and experience to provide the components of case management to coordinate and link community resources needed by the eligible population;

(3) (2) administrative capacity and experience in serving the target population for whom it will provide services and in ensuring quality of services under state and federal requirements;

(4) the legal authority to provide preadmission screening under section 256B.0911, subdivision 4;

(5) (3) a financial management system that provides accurate documentation of services and costs under state and federal requirements;

(6) (4) the capacity to document and maintain individual case records under state and federal requirements; and

(7) (5) the county may allow a case manager employed by the county to delegate certain aspects of the case management activity to another individual employed by the county provided there is oversight of the individual by the case manager. The case manager may not delegate those aspects which require professional judgment including assessments, reassessments, and care plan development.

Sec. 36. Minnesota Statutes 1996, section 256B.0917, subdivision 7, is amended to read:

Subd. 7. [CONTRACT.] The commissioner of human services shall execute a contract with an organization experienced in establishing and operating community-based programs that have used the principles listed in subdivision 8, paragraph (b), in order to meet the independent living and health needs of senior citizens aged 65 and over and provide community-based long-term care for senior citizens in their homes. The organization shall:

(1) assist the commissioner in developing criteria for and in awarding grants to establish community-based organizations that will implement living-at-home/block nurse programs throughout the state;

(2) assist the commissioner in awarding grants to enable current living-at-home/block nurse programs to implement the combined living-at-home/block nurse program model;

(3) serve as a state technical assistance center to assist and coordinate the living-at-home/block nurse programs established; and

(4) develop the implementation plan required by subdivision 10; and

(5) manage the contracts between the commissioner and individual living-at-home/block nurse programs.


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Sec. 37. Minnesota Statutes 1996, section 256B.0917, subdivision 8, is amended to read:

Subd. 8. [LIVING-AT-HOME/BLOCK NURSE PROGRAM GRANT.] (a) The commissioner, in cooperation with the organization awarded the contract under subdivision 7, shall develop and administer a grant program to establish or expand up to 15 25 community-based organizations that will implement living-at-home/block nurse programs that are designed to enable senior citizens to live as independently as possible in their homes and in their communities. At least seven of the programs must be in counties outside the seven-county metropolitan area. The living-at-home/block nurse program funds shall be available to the four to six SAIL projects established under this section. Nonprofit organizations and units of local government are eligible to apply for grants to establish the community organizations that will implement living-at-home/block nurse programs. In awarding grants, the commissioner shall give preference to nonprofit organizations and units of local government from communities that:

(1) have high nursing home occupancy rates;

(2) have a shortage of health care professionals; and

(3) are located in counties adjacent to counties with existing living-at-home/block nurse programs; and

(4) meet other criteria established by the commissioner, in consultation with the organization under contract.

(b) Grant applicants must also meet the following criteria:

(1) the local community demonstrates a readiness to establish a community model of care, including the formation of a board of directors, advisory committee, or similar group, of which at least two-thirds is comprised of community citizens interested in community-based care for older persons;

(2) the program has sponsorship by a credible, representative organization within the community;

(3) the program has defined specific geographic boundaries and defined its organization, staffing and coordination/delivery of services;

(4) the program demonstrates a team approach to coordination and care, ensuring that the older adult participants, their families, the formal and informal providers are all part of the effort to plan and provide services; and

(5) the program provides assurances that all community resources and funding will be coordinated and that other funding sources will be maximized, including a person's own resources.

(c) Grant applicants must provide a minimum of five percent of total estimated development costs from local community funding. Grants shall be awarded for two-year periods, and the base amount shall not exceed $40,000 per applicant for the grant period. The commissioner, in consultation with the organization under contract, may increase the grant amount for applicants from communities that have socioeconomic characteristics that indicate a higher level of need for development assistance. Subject to the availability of funding, grants and grant renewals awarded or entered into on or after July 1, 1997, shall be renewed by the commissioner every two years, unless the commissioner, in consultation with the organization awarded the contract under subdivision 7, determines that the grant recipient has not satisfactorily operated the living-at-home/block nurse program in compliance with the requirements of paragraph (d). Grants provided to living-at-home/block nurse programs under this paragraph may be used for both program development and the delivery of services.

(d) Each living-at-home/block nurse program shall be designed by representatives of the communities being served to ensure that the program addresses the specific needs of the community residents. The programs must be designed to:

(1) incorporate the basic community, organizational, and service delivery principles of the living-at-home/block nurse program model;

(2) provide senior citizens with registered nurse directed assessment, provision and coordination of health and personal care services on a sliding fee basis as an alternative to expensive nursing home care;


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(3) provide information, support services, homemaking services, counseling, and training for the client and family caregivers;

(4) encourage the development and use of respite care, caregiver support, and in-home support programs, such as adult foster care and in-home adult day care;

(5) encourage neighborhood residents and local organizations to collaborate in meeting the needs of senior citizens in their communities;

(6) recruit, train, and direct the use of volunteers to provide informal services and other appropriate support to senior citizens and their caregivers; and

(7) provide coordination and management of formal and informal services to senior citizens and their families using less expensive alternatives.

Sec. 38. Minnesota Statutes 1996, section 256B.431, subdivision 3f, is amended to read:

Subd. 3f. [PROPERTY COSTS AFTER JULY 1, 1988.] (a) [INVESTMENT PER BED LIMIT.] For the rate year beginning July 1, 1988, the replacement-cost-new per bed limit must be $32,571 per licensed bed in multiple bedrooms and $48,857 per licensed bed in a single bedroom. For the rate year beginning July 1, 1989, the replacement-cost-new per bed limit for a single bedroom must be $49,907 adjusted according to Minnesota Rules, part 9549.0060, subpart 4, item A, subitem (1). Beginning January 1, 1990, the replacement-cost-new per bed limits must be adjusted annually as specified in Minnesota Rules, part 9549.0060, subpart 4, item A, subitem (1). Beginning January 1, 1991, the replacement-cost-new per bed limits will be adjusted annually as specified in Minnesota Rules, part 9549.0060, subpart 4, item A, subitem (1), except that the index utilized will be the Bureau of the Census: Composite fixed-weighted price index as published in the Survey of Current Business C30 Report, Value of New Construction Put in Place.

(b) [RENTAL FACTOR.] For the rate year beginning July 1, 1988, the commissioner shall increase the rental factor as established in Minnesota Rules, part 9549.0060, subpart 8, item A, by 6.2 percent rounded to the nearest 100th percent for the purpose of reimbursing nursing facilities for soft costs and entrepreneurial profits not included in the cost valuation services used by the state's contracted appraisers. For rate years beginning on or after July 1, 1989, the rental factor is the amount determined under this paragraph for the rate year beginning July 1, 1988.

(c) [OCCUPANCY FACTOR.] For rate years beginning on or after July 1, 1988, in order to determine property-related payment rates under Minnesota Rules, part 9549.0060, for all nursing facilities except those whose average length of stay in a skilled level of care within a nursing facility is 180 days or less, the commissioner shall use 95 percent of capacity days. For a nursing facility whose average length of stay in a skilled level of care within a nursing facility is 180 days or less, the commissioner shall use the greater of resident days or 80 percent of capacity days but in no event shall the divisor exceed 95 percent of capacity days.

(d) [EQUIPMENT ALLOWANCE.] For rate years beginning on July 1, 1988, and July 1, 1989, the commissioner shall add ten cents per resident per day to each nursing facility's property-related payment rate. The ten-cent property-related payment rate increase is not cumulative from rate year to rate year. For the rate year beginning July 1, 1990, the commissioner shall increase each nursing facility's equipment allowance as established in Minnesota Rules, part 9549.0060, subpart 10, by ten cents per resident per day. For rate years beginning on or after July 1, 1991, the adjusted equipment allowance must be adjusted annually for inflation as in Minnesota Rules, part 9549.0060, subpart 10, item E. For the rate period beginning October 1, 1992, the equipment allowance for each nursing facility shall be increased by 28 percent. For rate years beginning after June 30, 1993, the allowance must be adjusted annually for inflation.

(e) [POST CHAPTER 199 RELATED-ORGANIZATION DEBTS AND INTEREST EXPENSE.] For rate years beginning on or after July 1, 1990, Minnesota Rules, part 9549.0060, subpart 5, item E, shall not apply to outstanding related organization debt incurred prior to May 23, 1983, provided that the debt was an allowable debt under Minnesota Rules, parts 9510.0010 to 9510.0480, the debt is subject to repayment through annual principal payments, and the nursing facility demonstrates to the commissioner's satisfaction that the interest rate on the debt was less than market interest rates for similar arms-length transactions at the time the debt was incurred. If the debt was incurred due to a sale between family


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members, the nursing facility must also demonstrate that the seller no longer participates in the management or operation of the nursing facility. Debts meeting the conditions of this paragraph are subject to all other provisions of Minnesota Rules, parts 9549.0010 to 9549.0080.

(f) [BUILDING CAPITAL ALLOWANCE FOR NURSING FACILITIES WITH OPERATING LEASES.] For rate years beginning on or after July 1, 1990, a nursing facility with operating lease costs incurred for the nursing facility's buildings shall receive its building capital allowance computed in accordance with Minnesota Rules, part 9549.0060, subpart 8.

Sec. 39. Minnesota Statutes 1996, section 256B.69, subdivision 2, is amended to read:

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

(a) "Commissioner" means the commissioner of human services. For the remainder of this section, the commissioner's responsibilities for methods and policies for implementing the project will be proposed by the project advisory committees and approved by the commissioner.

(b) "Demonstration provider" means an individual, agency, organization, or group of these entities a health maintenance organization or community integrated service network authorized and operating under chapter 62D or 62N that participates in the demonstration project according to criteria, standards, methods, and other requirements established for the project and approved by the commissioner.

(c) "Eligible individuals" means those persons eligible for medical assistance benefits as defined in sections 256B.055, 256B.056, and 256B.06.

(d) "Limitation of choice" means suspending freedom of choice while allowing eligible individuals to choose among the demonstration providers.

(e) This paragraph supersedes paragraph (c) as long as the Minnesota health care reform waiver remains in effect. When the waiver expires, this paragraph expires and the commissioner of human services shall publish a notice in the State Register and notify the revisor of statutes. "Eligible individuals" means those persons eligible for medical assistance benefits as defined in sections 256B.055, 256B.056, and 256B.06. Notwithstanding sections 256B.055, 256B.056, and 256B.06, an individual who becomes ineligible for the program because of failure to submit income reports or recertification forms in a timely manner, shall remain enrolled in the prepaid health plan and shall remain eligible to receive medical assistance coverage through the last day of the month following the month in which the enrollee became ineligible for the medical assistance program.

Sec. 40. Minnesota Statutes 1996, section 256B.69, subdivision 3a, is amended to read:

Subd. 3a. [COUNTY AUTHORITY.] (a) The commissioner, when implementing the general assistance medical care, or medical assistance prepayment program within a county, must include the county board in the process of development, approval, and issuance of the request for proposals to provide services to eligible individuals within the proposed county. County boards must be given reasonable opportunity to make recommendations regarding the development, issuance, review of responses, and changes needed in the request for proposals. The commissioner must provide county boards the opportunity to review each proposal based on the identification of community needs under chapters 145A and 256E and county advocacy activities. If a county board finds that a proposal does not address certain community needs, the county board and commissioner shall continue efforts for improving the proposal and network prior to the approval of the contract. The county board shall make recommendations regarding the approval of local networks and their operations to ensure adequate availability and access to covered services. The provider or health plan must respond directly to county advocates and the state prepaid medical assistance ombudsperson regarding service delivery and must be accountable to the state regarding contracts with medical assistance and general assistance medical care funds. The county board may recommend a maximum number of participating health plans after considering the size of the enrolling population; ensuring adequate access and capacity; considering the client and county administrative complexity; and considering the need to promote the viability of locally developed health plans. The county board or a single entity representing a group of county boards and the commissioner shall mutually select health plans for participation at the time of initial implementation of the prepaid


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medical assistance program in that county or group of counties and at the time of contract renewal. The commissioner shall also seek input for contract requirements from the county or single entity representing a group of county boards at each contract renewal and incorporate those recommendations into the contract negotiation process. The commissioner, in conjunction with the county board, shall actively seek to develop a mutually agreeable timetable prior to the development of the request for proposal, but counties must agree to initial enrollment beginning on or before January 1, 1999, in either the prepaid medical assistance and general assistance medical care programs or county-based purchasing under section 256B.692. At least 90 days before enrollment in the medical assistance and general assistance medical care prepaid programs begins in a county in which the prepaid programs have not been established, the commissioner shall provide a report to the chairs of senate and house committees having jurisdiction over state health care programs which verifies that the commissioner complied with the requirements for county involvement that are specified in this subdivision.

(b) The commissioner shall seek a federal waiver to allow a fee-for-service plan option to MinnesotaCare enrollees. The commissioner shall develop an increase of the premium fees required under section 256.9356 up to 20 percent of the premium fees for the enrollees who elect the fee-for-service option. Prior to implementation, the commissioner shall submit this fee schedule to the chair and ranking minority member of the senate health care committee, the senate health care and family services funding division, the house of representatives health and human services committee, and the house of representatives health and human services finance division.

(c) At the option of the county board, the board may develop contract requirements related to the achievement of local public health goals to meet the health needs of the medical assistance and general assistance medical care enrollees. If the county board and the commissioner mutually agree to such requirements, the department shall include such requirements in all health plan contracts governing the prepaid medical assistance and general assistance medical care programs in that county at initial implementation of the program in that county and at the time of contract renewal. The county board may participate in the enforcement of the contract provisions related to local public health goals.

(d) For counties in which prepaid medical assistance and general assistance medical care programs have not been established, the commissioner shall not implement those programs if a county board submits acceptable and timely preliminary and final proposals under section 256B.692, until county-based purchasing is no longer operational in that county. For counties in which prepaid medical assistance and general assistance medical care programs are in existence on or after September 1, 1997, the commissioner must terminate contracts with health plans according to section 256B.692, subdivision 5, if the county board submits and the commissioner accepts preliminary and final proposals according to that subdivision. However, in order to ensure quality of care, no individual currently enrolled with a prepaid health plan in a state prepayment program may be required to change to a county purchasing program until:

(1) the commissioner of health has determined that the county purchasing program meets all requirements of section 256B.692 and is capable of meeting all member health care needs; and

(2) the individual has been given sufficient information to make an informed decision through an open enrollment process.

(e) In the event that a county board or a single entity representing a group of county boards and the commissioner cannot reach agreement regarding: (i) the selection of participating health plans in that county; (ii) contract requirements; or (iii) implementation and enforcement of county requirements including provisions regarding local public health goals, the commissioner shall resolve all disputes after taking into account the recommendations of a three-person mediation panel. The panel shall be composed of one designee of the president of the association of Minnesota counties, one designee of the commissioner of human services, and one designee of the commissioner of health.

Sec. 41. Minnesota Statutes 1996, section 256B.69, subdivision 5, is amended to read:

Subd. 5. [PROSPECTIVE PER CAPITA PAYMENT.] The commissioner shall establish the method and amount of payments for services. The commissioner shall annually contract with demonstration providers to provide services consistent with these established methods and amounts for payment. Notwithstanding section 62D.02, subdivision 1, payments for services rendered as part of the project may be made to providers that are not licensed health maintenance organizations on a risk-based, prepaid capitation basis.


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If allowed by the commissioner, a demonstration provider may contract with an insurer, health care provider, nonprofit health service plan corporation, or the commissioner, to provide insurance or similar protection against the cost of care provided by the demonstration provider or to provide coverage against the risks incurred by demonstration providers under this section. The recipients enrolled with a demonstration provider are a permissible group under group insurance laws and chapter 62C, the Nonprofit Health Service Plan Corporations Act. Under this type of contract, the insurer or corporation may make benefit payments to a demonstration provider for services rendered or to be rendered to a recipient. Any insurer or nonprofit health service plan corporation licensed to do business in this state is authorized to provide this insurance or similar protection.

Payments to providers participating in the project are exempt from the requirements of sections 256.966 and 256B.03, subdivision 2. The commissioner shall complete development of capitation rates for payments before delivery of services under this section is begun. For payments made during calendar year 1990 and later years, the commissioner shall contract with an independent actuary to establish prepayment rates.

By January 15, 1996, the commissioner shall report to the legislature on the methodology used to allocate to participating counties available administrative reimbursement for advocacy and enrollment costs. The report shall reflect the commissioner's judgment as to the adequacy of the funds made available and of the methodology for equitable distribution of the funds. The commissioner must involve participating counties in the development of the report.

Sec. 42. Minnesota Statutes 1996, section 256B.69, subdivision 5b, is amended to read:

Subd. 5b. [PROSPECTIVE REIMBURSEMENT RATES.] For prepaid medical assistance and general assistance medical care program contract rates set by the commissioner under subdivision 5 and effective on or after January 1, 1997, through December 31, 1998, capitation rates for nonmetropolitan counties shall on a weighted average be no less than 85 87 percent of the capitation rates for metropolitan counties, excluding Hennepin county. The commissioner shall make a pro rata adjustment in capitation rates paid to counties other than nonmetropolitan counties in order to make this provision budget neutral.

Sec. 43. Minnesota Statutes 1996, section 256B.69, subdivision 6, is amended to read:

Subd. 6. [SERVICE DELIVERY.] (a) Each demonstration provider shall be responsible for the health care coordination for eligible individuals. Demonstration providers:

(1) shall authorize and arrange for the provision of all needed health services including but not limited to the full range of services listed in sections 256B.02, subdivision 8, and 256B.0625, except dental services provided under section 256B.037, in order to ensure appropriate health care is delivered to enrollees;

(2) shall accept the prospective, per capita payment from the commissioner in return for the provision of comprehensive and coordinated health care services for eligible individuals enrolled in the program;

(3) may contract with other health care and social service practitioners to provide services to enrollees; and

(4) shall institute recipient grievance procedures according to the method established by the project, utilizing applicable requirements of chapter 62D. Disputes not resolved through this process shall be appealable to the commissioner as provided in subdivision 11.

(b) Demonstration providers must comply with the standards for claims settlement under section 72A.201, subdivisions 4, 5, 7, and 8, when contracting with other health care and social service practitioners to provide services to enrollees. A demonstration provider must pay a clean claim, as defined in Code of Federal Regulations, title 42, section 447.45(b), within 30 business days of the date of acceptance of the claim.

Sec. 44. [256B.692] [COUNTY-BASED PURCHASING.]

Subdivision 1. [IN GENERAL.] County boards or groups of county boards may elect to purchase or provide health care services on behalf of persons eligible for medical assistance and general assistance medical care who would otherwise be required to or may elect to participate in the prepaid medical assistance or prepaid general assistance medical care programs,


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according to sections 256B.69 and 256D.03. Counties that elect to purchase or provide health care under this section must provide all services included in prepaid managed care programs according to sections 256B.69, subdivisions 1 to 22, and 256D.03. County-based purchasing under this section is governed by section 256B.69, unless otherwise provided for under this section.

Subd. 2. [DUTIES OF THE COMMISSIONER OF HEALTH.] Notwithstanding chapters 62D and 62N, a county that elects to purchase medical assistance and general assistance medical care in return for a fixed sum without regard to the frequency or extent of services furnished to any particular enrollee is not required to obtain a certificate of authority under chapter 62D or 62N. A county that elects to purchase medical assistance and general assistance medical care services under this section must satisfy the commissioner of health that the requirements of chapter 62D, applicable to health maintenance organizations, or chapter 62N, applicable to community integrated service networks, will be met. A county must also assure the commissioner of health that the requirements of section 72A.201 will be met. All enforcement and rulemaking powers available under chapters 62D and 62N are hereby granted to the commissioner of health with respect to counties that purchase medical assistance and general assistance medical care services under this section.

Subd. 3. [REQUIREMENTS OF THE COUNTY BOARD.] A county board that intends to purchase or provide health care under this section, which may include purchasing all or part of these services from health plans or individual providers on a fee-for-service basis, or providing these services directly, must demonstrate the ability to follow and agree to the following requirements:

(1) purchase all covered services for a fixed payment from the state that does not exceed the estimated state and federal cost that would have occurred under the prepaid medical assistance and general assistance medical care programs;

(2) ensure that covered services are accessible to all enrollees and that enrollees have a reasonable choice of providers, as well as health plans or networks, when possible. If the county is also a provider of service, the county board shall develop a process to ensure that providers employed by the county are not the sole referral source and are not the sole provider of health care services, if other providers which meet the same quality and cost requirements are available;

(3) issue payments to participating vendors or networks in a timely manner;

(4) establish a process to ensure and improve the quality of care provided;

(5) provide appropriate quality and other required data in a format required by the state;

(6) provide a system for advocacy, enrollee protection, and complaints and appeals that is independent of care providers or other risk bearers and complies with section 256B.69;

(7) for counties within the seven-county metropolitan area, ensure that the implementation and operation of the Minnesota senior health options demonstration project, authorized under section 256B.69, subdivision 23, will not be impeded;

(8) ensure that all recipients that are enrolled in the prepaid medical assistance or general assistance medical care program will be transferred to county-based purchasing without utilizing the department's fee-for-service claims payment system; and

(9) ensure that the state and the medical assistance and general assistance medical care recipients shall be held harmless for the payment of obligations incurred by the county if the county, or a health plan providing services on behalf of the county, or a provider participating in county purchasing, becomes insolvent and the state has made the payments due to the county under this section.

Subd. 4. [PAYMENTS TO COUNTIES.] The commissioner shall pay counties that are purchasing or providing health care under this section a per capita payment for all enrolled recipients. Payments shall not exceed payments that otherwise would have been paid to health plans under medical assistance and general assistance medical care for that county or region. This payment is in addition to any administrative allocation to counties for education, enrollment, and advocacy. The state of Minnesota and the United States Department of Health and Human Services are not liable for any costs incurred by a county that exceed the payments to the county made under this subdivision. A county whose costs exceed the payments made by the state, or any affected enrollees or creditors of that county, shall have no rights under chapter 61B or section 62D.181. A county may assign risk for the cost of care to a third party.


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Subd. 5. [COUNTY PROPOSALS.] (a) On or before September 1, 1997, a county board that wishes to purchase or provide health care under this section must submit a preliminary proposal that substantially demonstrates the county's ability to meet all the requirements of this section in response to criteria for proposals issued by the department on or before July 1, 1997. The county board must submit a final proposal on or before July 1, 1998, that demonstrates the ability to meet all the requirements of this section, including beginning enrollment on January 1, 1999.

Counties submitting preliminary proposals must establish a local planning process that involves input from medical assistance and general assistance medical care recipients, recipient advocates, providers, and representatives of local school districts, labor, and tribal government, to advise on the development of a final proposal and its implementation.

(b) After January 1, 1999, for a county in which the prepaid medical assistance program is in existence, the county board must submit a preliminary proposal at least 15 months prior to termination of health plan contracts in that county and a final proposal six months prior to the health plan contract termination date in order to begin enrollment after the termination. Nothing in this section shall impede or delay implementation or continuation of the prepaid medical assistance and general assistance medical care programs in counties for which the board does not submit a proposal, or submits a proposal that is not in compliance with this section.

Subd. 6. [COMMISSIONER'S AUTHORITY.] The commissioner may:

(a) reject any preliminary or final proposal that substantially fails to meet the requirements of this section, or that the commissioner determines would substantially impair the state's ability to purchase health care services in other areas of the state, or would substantially impair the implementation and operation of the Minnesota senior health options demonstration project authorized under section 256B.69, subdivision 23; and

(b) assume operation of a county's purchasing of health care for enrollees in medical assistance and general assistance medical care in the event that the contract with the county is terminated.

Subd. 7. [DISPUTE RESOLUTION.] In the event the commissioner rejects a proposal under subdivision 6, the county board may request the recommendation of a three-person mediation panel. The commissioner shall resolve all disputes after taking into account the recommendations of the mediation panel. The panel shall be composed of one designee of the president of the association of Minnesota counties, one designee of the commissioner of human services, and one designee of the commissioner of health.

Subd. 8. [APPEALS.] A county that conducts county-based purchasing shall be considered to be a prepaid health plan for purposes of section 256.045.

Subd. 9. [FEDERAL APPROVAL.] The commissioner shall request any federal waivers and federal approval required to implement this section. County-based purchasing shall not be implemented without obtaining all federal approval required to maintain federal matching funds in the medical assistance program.

Subd. 10. [REPORT TO THE LEGISLATURE.] The commissioner shall submit a report to the legislature by February 1, 1998, on the preliminary proposals submitted on or before September 1, 1997.

Sec. 45. Minnesota Statutes 1996, section 256D.03, subdivision 3, is amended to read:

Subd. 3. [GENERAL ASSISTANCE MEDICAL CARE; ELIGIBILITY.] (a) General assistance medical care may be paid for any person who is not eligible for medical assistance under chapter 256B, including eligibility for medical assistance based on a spenddown of excess income according to section 256B.056, subdivision 5, and:

(1) who is receiving assistance under section 256D.05, or who is having a payment made on the person's behalf under sections 256I.01 to 256I.06; or

(2)(i) who is a resident of Minnesota; and whose equity in assets is not in excess of $1,000 per assistance unit. No asset test shall be applied to children and their parents living in the same household. Exempt assets, the reduction of excess assets, and the waiver of excess assets must conform to the medical assistance program in chapter 256B, with the following


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exception: the maximum amount of undistributed funds in a trust that could be distributed to or on behalf of the beneficiary by the trustee, assuming the full exercise of the trustee's discretion under the terms of the trust, must be applied toward the asset maximum; and

(ii) who has countable income not in excess of the assistance standards established in section 256B.056, subdivision 4, or whose excess income is spent down pursuant to section 256B.056, subdivision 5, using a six-month budget period, except that a one-month budget period must be used for recipients residing in a long-term care facility. The method for calculating earned income disregards and deductions for a person who resides with a dependent child under age 21 shall be as specified in section 256.74, subdivision 1 follow section 256B.056, subdivision 1a. However, if a disregard of $30 and one-third of the remainder described in section 256.74, subdivision 1, clause (4), has been applied to the wage earner's income, the disregard shall not be applied again until the wage earner's income has not been considered in an eligibility determination for general assistance, general assistance medical care, medical assistance, or aid to families with dependent children MFIP-S for 12 consecutive months. The earned income and work expense deductions for a person who does not reside with a dependent child under age 21 shall be the same as the method used to determine eligibility for a person under section 256D.06, subdivision 1, except the disregard of the first $50 of earned income is not allowed; or

(3) who would be eligible for medical assistance except that the person resides in a facility that is determined by the commissioner or the federal health care financing administration to be an institution for mental diseases.

(b) Eligibility is available for the month of application, and for three months prior to application if the person was eligible in those prior months. A redetermination of eligibility must occur every 12 months.

(c) General assistance medical care is not available for a person in a correctional facility unless the person is detained by law for less than one year in a county correctional or detention facility as a person accused or convicted of a crime, or admitted as an inpatient to a hospital on a criminal hold order, and the person is a recipient of general assistance medical care at the time the person is detained by law or admitted on a criminal hold order and as long as the person continues to meet other eligibility requirements of this subdivision.

(d) General assistance medical care is not available for applicants or recipients who do not cooperate with the county agency to meet the requirements of medical assistance.

(e) In determining the amount of assets of an individual, there shall be included any asset or interest in an asset, including an asset excluded under paragraph (a), that was given away, sold, or disposed of for less than fair market value within the 60 months preceding application for general assistance medical care or during the period of eligibility. Any transfer described in this paragraph shall be presumed to have been for the purpose of establishing eligibility for general assistance medical care, unless the individual furnishes convincing evidence to establish that the transaction was exclusively for another purpose. For purposes of this paragraph, the value of the asset or interest shall be the fair market value at the time it was given away, sold, or disposed of, less the amount of compensation received. For any uncompensated transfer, the number of months of ineligibility, including partial months, shall be calculated by dividing the uncompensated transfer amount by the average monthly per person payment made by the medical assistance program to skilled nursing facilities for the previous calendar year. The individual shall remain ineligible until this fixed period has expired. The period of ineligibility may exceed 30 months, and a reapplication for benefits after 30 months from the date of the transfer shall not result in eligibility unless and until the period of ineligibility has expired. The period of ineligibility begins in the month the transfer was reported to the county agency, or if the transfer was not reported, the month in which the county agency discovered the transfer, whichever comes first. For applicants, the period of ineligibility begins on the date of the first approved application.

(f)(1) Beginning October 1, 1993, an undocumented alien or a nonimmigrant is ineligible for general assistance medical care other than emergency services. For purposes of this subdivision, a nonimmigrant is an individual in one or more of the classes listed in United States Code, title 8, section 1101(a)(15), and an undocumented alien is an individual who resides in the United States without the approval or acquiescence of the Immigration and Naturalization Service.

(2) This subdivision does not apply to a child under age 18, to a Cuban or Haitian entrant as defined in Public Law Number 96-422, section 501(e)(1) or (2)(a), or to an alien who is aged, blind, or disabled as defined in United States Code, title 42, section 1382c(a)(1).


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(3) For purposes of paragraph (f), "emergency services" has the meaning given in Code of Federal Regulations, title 42, section 440.255(b)(1), except that it also means services rendered because of suspected or actual pesticide poisoning.

Sec. 46. Minnesota Statutes 1996, section 256G.02, subdivision 6, is amended to read:

Subd. 6. [EXCLUDED TIME.] "Excluded time" means:

(a) any period an applicant spends in a hospital, sanitarium, nursing home, shelter other than an emergency shelter, halfway house, foster home, semi-independent living domicile or services program, residential facility offering care, board and lodging facility or other institution for the hospitalization or care of human beings, as defined in section 144.50, 144A.01, or 245A.02, subdivision 14; maternity home, battered women's shelter, or correctional facility; or any facility based on an emergency hold under sections 253B.05, subdivisions 1 and 2, and 253B.07, subdivision 6;

(b) any period an applicant spends on a placement basis in a training and habilitation program, including a rehabilitation facility or work or employment program as defined in section 268A.01; or receiving personal care assistant services pursuant to section 256B.0627, subdivision 4; semi-independent living services provided under section 252.275, and Minnesota Rules, parts 9525.0500 to 9525.0660; day training and habilitation programs, and community-based services and assisted living services; and

(c) any placement for a person with an indeterminate commitment, including independent living.

Sec. 47. Minnesota Statutes 1996, section 256I.05, subdivision 1a, is amended to read:

Subd. 1a. [SUPPLEMENTARY RATES.] In addition to the room and board rate specified in subdivision 1, the county agency may negotiate a payment not to exceed $426.37 for other services necessary to provide room and board provided by the group residence if the residence is licensed by or registered by the department of health, or licensed by the department of human services to provide services in addition to room and board, and if the provider of services is not also concurrently receiving funding for services for a recipient under a home and community-based waiver under title XIX of the Social Security Act; or funding from the medical assistance program under section 256B.0627, subdivision 4, for personal care services for residents in the setting; or residing in a setting which receives funding under Minnesota Rules, parts 9535.2000 to 9535.3000. If funding is available for other necessary services through a home and community-based waiver, or personal care services under section 256B.0627, subdivision 4, then the GRH rate is limited to the rate set in subdivision 1. The registration and licensure requirement does not apply to establishments which are exempt from state licensure because they are located on Indian reservations and for which the tribe has prescribed health and safety requirements. Service payments under this section may be prohibited under rules to prevent the supplanting of federal funds with state funds. The commissioner shall pursue the feasibility of obtaining the approval of the Secretary of Health and Human Services to provide home and community-based waiver services under title XIX of the Social Security Act for residents who are not eligible for an existing home and community-based waiver due to a primary diagnosis of mental illness or chemical dependency and shall apply for a waiver if it is determined to be cost-effective. The commissioner is authorized to make cost-neutral transfers from the GRH fund for beds under this section to other funding programs administered by the department after consultation with the county or counties in which the affected beds are located. The commissioner may also make cost neutral transfers from the GRH fund to county human service agencies for beds permanently removed from the GRH census under a plan submitted by the county agency and approved by the commissioner. The commissioner shall report the amount of any transfers under this provision annually to the legislature.

Sec. 48. Minnesota Statutes 1996, section 469.155, subdivision 4, is amended to read:

Subd. 4. [REFINANCING HEALTH FACILITIES.] It may issue revenue bonds to pay, purchase, or discharge all or any part of the outstanding indebtedness of a contracting party engaged primarily in the operation of one or more nonprofit hospitals or nursing homes previously incurred in the acquisition or betterment of its existing hospital or nursing home facilities to the extent deemed necessary by the governing body of the municipality or redevelopment agency; this may include any unpaid interest on the indebtedness accrued or to accrue to the date on which the indebtedness is finally paid, and any premium the governing body of the municipality or redevelopment agency determines to be necessary to be paid to pay, purchase, or defease the outstanding indebtedness. If revenue bonds are issued for this purpose, the refinancing and the existing properties of the contracting party shall be deemed to constitute a project under section 469.153, subdivision 2,


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clause (d). Revenue bonds may not be issued pursuant to this subdivision unless the application for approval of the project pursuant to section 469.154 shows that a reduction in debt service charges is estimated to result and will be reflected in charges to patients and third-party payors. Proceeds of revenue bonds issued pursuant to this subdivision may not be used for any purpose inconsistent with the provisions of chapter 256B. Nothing in this subdivision prohibits the use of revenue bond proceeds to pay outstanding indebtedness of a contracting party to the extent permitted by law on March 28, 1978.

Sec. 49. [WAIVER MODIFICATION.]

The commissioner of human services shall seek federal approval for any modifications to the health care reform waiver necessary to implement the asset standard changes in sections 20 to 22 and 27.

Sec. 50. [LIVING-AT-HOME/BLOCK NURSE CONTRACT.]

The commissioner shall contract with the organization awarded the initial contract under Minnesota Statutes, section 256B.0917, subdivision 7, to carry out the duties assigned in that subdivision. The contract shall be effective July 1, 1997, and Minnesota Statutes, section 16B.17, shall not apply. Subject to the availability of funding, the contract does not expire, except that the contract must provide that the commissioner may unilaterally terminate the contract if the commissioner determines that the organization awarded the contract has not effectively carried out the duties assigned in Minnesota Statutes, section 256B.0917, subdivision 7.

Sec. 51. [NEED FOR NONSTANDARD WHEELCHAIRS.]

The commissioner of human services, in consultation with the System of Technology to Achieve Results (STAR) program, shall present a report to the legislature by January 1, 1998, on the need for nonstandard wheelchairs for recipients residing in long-term care facilities. A standard wheelchair is a manual wheelchair that is 16 to 20 inches wide and 18 inches deep with sling seat and back upholstery and a seat height of 19-1/2 inches. The report shall:

(1) determine how many medical assistance recipients who reside in long-term care facilities cannot independently operate a standard wheelchair, but can safely and independently operate a power or other nonstandard wheelchair;

(2) determine how many medical assistance recipients who reside in long-term care facilities require a wheelchair to be permanently modified by the addition of an item to accommodate their health needs;

(3) determine how many medical assistance recipients who reside in long-term care facilities have seating or positioning needs which cannot be accommodated in a standard wheelchair;

(4) determine the average cost of a nonstandard wheelchair;

(5) determine the capability of long-term care facilities to provide nonstandard wheelchairs to meet medical assistance recipients needs; and

(6) determine to what extent in the past four years the department of health has enforced regulations or rules relating to a long-term care facility's obligation to meet the mobility needs of residents.

Sec. 52. [REPEALER.]

Minnesota Statutes 1996, section 256B.0625, subdivision 13b, is repealed the day following final enactment.

Sec. 53. [EFFECTIVE DATE.]

Sections 11 to 14 and 33 are effective the day following final enactment.


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ARTICLE 5

CHILDREN'S PROGRAMS

Section 1. Minnesota Statutes 1996, section 245.4882, subdivision 5, is amended to read:

Subd. 5. [SPECIALIZED RESIDENTIAL TREATMENT SERVICES.] The commissioner of human services shall continue efforts to further interagency collaboration to develop a comprehensive system of services, including family community support and specialized residential treatment services for children. The services shall be designed for children with emotional disturbance who exhibit violent or destructive behavior and for whom local treatment services are not feasible due to the small number of children statewide who need the services and the specialized nature of the services required. The services shall be located in community settings. If no appropriate services are available in Minnesota or within the geographical area in which the residents of the county normally do business, the commissioner is responsible, effective July 1, 1997, for 50 percent of the nonfederal costs of out-of-state treatment of children for whom no appropriate resources are available in Minnesota. Counties are eligible to receive enhanced state funding under this section only if they have established juvenile screening teams under section 260.151, subdivision 3, and if the out-of-state treatment has been approved by the commissioner. By January 1, 1995, the commissioners of human services and corrections shall jointly develop a plan, including a financing strategy, for increasing the in-state availability of treatment within a secure setting. By July 1, 1994, the commissioner of human services shall also:

(1) conduct a study and develop a plan to meet the needs of children with both a developmental disability and severe emotional disturbance; and

(2) study the feasibility of expanding medical assistance coverage to include specialized residential treatment for the children described in this subdivision.

Sec. 2. Minnesota Statutes 1996, section 245.493, subdivision 1, is amended to read:

Subdivision 1. [REQUIREMENTS TO QUALIFY AS A LOCAL CHILDREN'S MENTAL HEALTH COLLABORATIVE.] In order to qualify as a local children's mental health collaborative and be eligible to receive start-up funds, the representatives of the local system of care, including entities provided under section 245.4875, subdivision 6, and nongovernmental entities such as parents of children in the target population; parent and consumer organizations; community, civic, and religious organizations; private and nonprofit mental and physical health care providers; culturally specific organizations; local foundations; and businesses, or at a minimum one county, one school district or special education cooperative, and one mental health entity, and, by July 1, 1998, one juvenile justice or corrections entity, must agree to the following:

(1) to establish a local children's mental health collaborative and develop an integrated service system; and

(2) to commit resources to providing services through the local children's mental health collaborative.

Sec. 3. Minnesota Statutes 1996, section 245.493, is amended by adding a subdivision to read:

Subd. 1a. [DUTIES OF CERTAIN COORDINATING BODIES.] By mutual agreement of the collaborative and a coordinating body listed in this subdivision, a children's mental health collaborative or a collaborative established by the merger of a children's mental health collaborative and a family services collaborative under section 121.8355, may assume the duties of a community transition interagency committee established under section 120.17, subdivision 16; an interagency early intervention committee established under 120.1701, subdivision 5; a local advisory council established under section 245.4875, subdivision 5; or a local coordinating council established under section 245.4875, subdivision 6.

Sec. 4. Minnesota Statutes 1996, section 256.01, subdivision 2, is amended to read:

Subd. 2. [SPECIFIC POWERS.] Subject to the provisions of section 241.021, subdivision 2, the commissioner of human services shall:

(1) Administer and supervise all forms of public assistance provided for by state law and other welfare activities or services as are vested in the commissioner. Administration and supervision of human services activities or services includes, but is not limited to, assuring timely and accurate distribution of benefits, completeness of service, and quality program


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management. In addition to administering and supervising human services activities vested by law in the department, the commissioner shall have the authority to:

(a) require county agency participation in training and technical assistance programs to promote compliance with statutes, rules, federal laws, regulations, and policies governing human services;

(b) monitor, on an ongoing basis, the performance of county agencies in the operation and administration of human services, enforce compliance with statutes, rules, federal laws, regulations, and policies governing welfare services and promote excellence of administration and program operation;

(c) develop a quality control program or other monitoring program to review county performance and accuracy of benefit determinations;

(d) require county agencies to make an adjustment to the public assistance benefits issued to any individual consistent with federal law and regulation and state law and rule and to issue or recover benefits as appropriate;

(e) delay or deny payment of all or part of the state and federal share of benefits and administrative reimbursement according to the procedures set forth in section 256.017; and

(f) make contracts with and grants to public and private agencies and organizations, both profit and nonprofit, and individuals, using appropriated funds.

(2) Inform county agencies, on a timely basis, of changes in statute, rule, federal law, regulation, and policy necessary to county agency administration of the programs.

(3) Administer and supervise all child welfare activities; promote the enforcement of laws protecting handicapped, dependent, neglected and delinquent children, and children born to mothers who were not married to the children's fathers at the times of the conception nor at the births of the children; license and supervise child-caring and child-placing agencies and institutions; supervise the care of children in boarding and foster homes or in private institutions; and generally perform all functions relating to the field of child welfare now vested in the state board of control.

(4) Administer and supervise all noninstitutional service to handicapped persons, including those who are visually impaired, hearing impaired, or physically impaired or otherwise handicapped. The commissioner may provide and contract for the care and treatment of qualified indigent children in facilities other than those located and available at state hospitals when it is not feasible to provide the service in state hospitals.

(5) Assist and actively cooperate with other departments, agencies and institutions, local, state, and federal, by performing services in conformity with the purposes of Laws 1939, chapter 431.

(6) Act as the agent of and cooperate with the federal government in matters of mutual concern relative to and in conformity with the provisions of Laws 1939, chapter 431, including the administration of any federal funds granted to the state to aid in the performance of any functions of the commissioner as specified in Laws 1939, chapter 431, and including the promulgation of rules making uniformly available medical care benefits to all recipients of public assistance, at such times as the federal government increases its participation in assistance expenditures for medical care to recipients of public assistance, the cost thereof to be borne in the same proportion as are grants of aid to said recipients.

(7) Establish and maintain any administrative units reasonably necessary for the performance of administrative functions common to all divisions of the department.

(8) Act as designated guardian of both the estate and the person of all the wards of the state of Minnesota, whether by operation of law or by an order of court, without any further act or proceeding whatever, except as to persons committed as mentally retarded. For children under the guardianship of the commissioner whose interests would be best served by adoptive placement, the commissioner may contract with a licensed child-placing agency to provide adoption services. A contract with a licensed child-placing agency must be designed to supplement existing county efforts, and shall not replace existing county programs, unless the replacement is agreed to by the county board and the appropriate exclusive bargaining representative, or the commissioner has evidence that the county's rate of placing these children continues to be substantially below that of other counties.


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(9) Act as coordinating referral and informational center on requests for service for newly arrived immigrants coming to Minnesota.

(10) The specific enumeration of powers and duties as hereinabove set forth shall in no way be construed to be a limitation upon the general transfer of powers herein contained.

(11) Establish county, regional, or statewide schedules of maximum fees and charges which may be paid by county agencies for medical, dental, surgical, hospital, nursing and nursing home care and medicine and medical supplies under all programs of medical care provided by the state and for congregate living care under the income maintenance programs.

(12) Have the authority to conduct and administer experimental projects to test methods and procedures of administering assistance and services to recipients or potential recipients of public welfare. To carry out such experimental projects, it is further provided that the commissioner of human services is authorized to waive the enforcement of existing specific statutory program requirements, rules, and standards in one or more counties. The order establishing the waiver shall provide alternative methods and procedures of administration, shall not be in conflict with the basic purposes, coverage, or benefits provided by law, and in no event shall the duration of a project exceed four years. It is further provided that no order establishing an experimental project as authorized by the provisions of this section shall become effective until the following conditions have been met:

(a) The proposed comprehensive plan, including estimated project costs and the proposed order establishing the waiver, shall be filed with the secretary of the senate and chief clerk of the house of representatives at least 60 days prior to its effective date.

(b) The secretary of health, education, and welfare of the United States has agreed, for the same project, to waive state plan requirements relative to statewide uniformity.

(c) A comprehensive plan, including estimated project costs, shall be approved by the legislative advisory commission and filed with the commissioner of administration.

(13) In accordance with federal requirements, establish procedures to be followed by local welfare boards in creating citizen advisory committees, including procedures for selection of committee members.

(14) Allocate federal fiscal disallowances or sanctions which are based on quality control error rates for the aid to families with dependent children, medical assistance, or food stamp program in the following manner:

(a) One-half of the total amount of the disallowance shall be borne by the county boards responsible for administering the programs. For the medical assistance and AFDC programs, disallowances shall be shared by each county board in the same proportion as that county's expenditures for the sanctioned program are to the total of all counties' expenditures for the AFDC and medical assistance programs. For the food stamp program, sanctions shall be shared by each county board, with 50 percent of the sanction being distributed to each county in the same proportion as that county's administrative costs for food stamps are to the total of all food stamp administrative costs for all counties, and 50 percent of the sanctions being distributed to each county in the same proportion as that county's value of food stamp benefits issued are to the total of all benefits issued for all counties. Each county shall pay its share of the disallowance to the state of Minnesota. When a county fails to pay the amount due hereunder, the commissioner may deduct the amount from reimbursement otherwise due the county, or the attorney general, upon the request of the commissioner, may institute civil action to recover the amount due.

(b) Notwithstanding the provisions of paragraph (a), if the disallowance results from knowing noncompliance by one or more counties with a specific program instruction, and that knowing noncompliance is a matter of official county board record, the commissioner may require payment or recover from the county or counties, in the manner prescribed in paragraph (a), an amount equal to the portion of the total disallowance which resulted from the noncompliance, and may distribute the balance of the disallowance according to paragraph (a).

(15) Develop and implement special projects that maximize reimbursements and result in the recovery of money to the state. For the purpose of recovering state money, the commissioner may enter into contracts with third parties. Any recoveries that result from projects or contracts entered into under this paragraph shall be deposited in the state treasury and


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credited to a special account until the balance in the account reaches $1,000,000. When the balance in the account exceeds $1,000,000, the excess shall be transferred and credited to the general fund. All money in the account is appropriated to the commissioner for the purposes of this paragraph.

(16) Have the authority to make direct payments to facilities providing shelter to women and their children pursuant to section 256D.05, subdivision 3. Upon the written request of a shelter facility that has been denied payments under section 256D.05, subdivision 3, the commissioner shall review all relevant evidence and make a determination within 30 days of the request for review regarding issuance of direct payments to the shelter facility. Failure to act within 30 days shall be considered a determination not to issue direct payments.

(17) Have the authority to establish and enforce the following county reporting requirements:

(a) The commissioner shall establish fiscal and statistical reporting requirements necessary to account for the expenditure of funds allocated to counties for human services programs. When establishing financial and statistical reporting requirements, the commissioner shall evaluate all reports, in consultation with the counties, to determine if the reports can be simplified or the number of reports can be reduced.

(b) The county board shall submit monthly or quarterly reports to the department as required by the commissioner. Monthly reports are due no later than 15 working days after the end of the month. Quarterly reports are due no later than 30 calendar days after the end of the quarter, unless the commissioner determines that the deadline must be shortened to 20 calendar days to avoid jeopardizing compliance with federal deadlines or risking a loss of federal funding. Only reports that are complete, legible, and in the required format shall be accepted by the commissioner.

(c) If the required reports are not received by the deadlines established in clause (b), the commissioner may delay payments and withhold funds from the county board until the next reporting period. When the report is needed to account for the use of federal funds and the late report results in a reduction in federal funding, the commissioner shall withhold from the county boards with late reports an amount equal to the reduction in federal funding until full federal funding is received.

(d) A county board that submits reports that are late, illegible, incomplete, or not in the required format for two out of three consecutive reporting periods is considered noncompliant. When a county board is found to be noncompliant, the commissioner shall notify the county board of the reason the county board is considered noncompliant and request that the county board develop a corrective action plan stating how the county board plans to correct the problem. The corrective action plan must be submitted to the commissioner within 45 days after the date the county board received notice of noncompliance.

(e) The final deadline for fiscal reports or amendments to fiscal reports is one year after the date the report was originally due. If the commissioner does not receive a report by the final deadline, the county board forfeits the funding associated with the report for that reporting period and the county board must repay any funds associated with the report received for that reporting period.

(f) The commissioner may not delay payments, withhold funds, or require repayment under paragraph (c) or (e) if the county demonstrates that the commissioner failed to provide appropriate forms, guidelines, and technical assistance to enable the county to comply with the requirements. If the county board disagrees with an action taken by the commissioner under paragraph (c) or (e), the county board may appeal the action according to sections 14.57 to 14.69.

(g) Counties subject to withholding of funds under paragraph (c) or forfeiture or repayment of funds under paragraph (e) shall not reduce or withhold benefits or services to clients to cover costs incurred due to actions taken by the commissioner under paragraph (c) or (e).

(18) Allocate federal fiscal disallowances or sanctions for audit exceptions when federal fiscal disallowances or sanctions are based on a statewide random sample for the foster care program under title IV-E of the Social Security Act, United States Code, title 42, in direct proportion to each county's title IV-E foster care maintenance claim for that period.


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Sec. 5. Minnesota Statutes 1996, section 256.01, is amended by adding a subdivision to read:

Subd. 14. [CHILD WELFARE REFORM PILOTS.] The commissioner of human services shall encourage local reforms in the delivery of child welfare services and is authorized to approve local pilot programs which focus on reforming the child protection and child welfare systems in Minnesota. Authority to approve pilots includes authority to waive existing state rule and statutory requirements as needed to accomplish reform efforts. Pilot programs must be required to address responsibility for safety and protection of children, be time limited, and include evaluation of the pilot program.

Sec. 6. Minnesota Statutes 1996, section 256.045, subdivision 3, is amended to read:

Subd. 3. [STATE AGENCY HEARINGS.] (a) State agency hearings are available for the following: (1) any person applying for, receiving or having received public assistance or a program of social services granted by the state agency or a county agency under sections 252.32, 256.031 to 256.036, and 256.72 to 256.879, chapters 256B, 256D, 256E, 261, or the federal Food Stamp Act whose application for assistance is denied, not acted upon with reasonable promptness, or whose assistance is suspended, reduced, terminated, or claimed to have been incorrectly paid; (2) any patient or relative aggrieved by an order of the commissioner under section 252.27; (3) a party aggrieved by a ruling of a prepaid health plan; (4) any individual or facility determined by a lead agency to have maltreated a vulnerable adult under section 626.557 after they have exercised their right to administrative reconsideration under section 626.557; (5) any person whose claim for foster care payment pursuant to a placement of the child resulting from a child protection assessment under section 626.556 is denied or not acted upon with reasonable promptness, regardless of funding source; (6) any person to whom a right of appeal pursuant to this section is given by other provision of law; or (7) an applicant aggrieved by an adverse decision to an application for a hardship waiver under section 256B.15; or (8) an individual or facility determined to have maltreated a minor under section 626.556, after the individual or facility has exercised the right to administrative reconsideration under section 626.556. The failure to exercise the right to an administrative reconsideration shall not be a bar to a hearing under this section if federal law provides an individual the right to a hearing to dispute a finding of maltreatment. Individuals and organizations specified in this section may contest the specified action, decision, or final disposition before the state agency by submitting a written request for a hearing to the state agency within 30 days after receiving written notice of the action, decision, or final disposition, or within 90 days of such written notice if the applicant, recipient, patient, or relative shows good cause why the request was not submitted within the 30-day time limit.

The hearing for an individual or facility under clause (4) or (8) is the only administrative appeal to the final lead agency disposition determination specifically, including a challenge to the accuracy and completeness of data under section 13.04. Hearings requested under clause (4) apply only to incidents of maltreatment that occur on or after October 1, 1995. Hearings requested by nursing assistants in nursing homes alleged to have maltreated a resident prior to October 1, 1995, shall be held as a contested case proceeding under the provisions of chapter 14. Hearings requested under clause (8) apply only to incidents of maltreatment that occur on or after July 1, 1997. A hearing for an individual or facility under clause (8) is only available when there is no juvenile court or adult criminal action pending. If such action is filed in either court while an administrative review is pending, the administrative review must be suspended until the judicial actions are completed. If the juvenile court action or criminal charge is dismissed or the criminal action overturned, the matter may be considered in an administrative hearing.

For purposes of this section, bargaining unit grievance procedures are not an administrative appeal.

The scope of hearings involving claims to foster care payments under clause (5) shall be limited to the issue of whether the county is legally responsible for a child's placement under court order or voluntary placement agreement and, if so, the correct amount of foster care payment to be made on the child's behalf and shall not include review of the propriety of the county's child protection determination or child placement decision.

(b) Except for a prepaid health plan, a vendor of medical care as defined in section 256B.02, subdivision 7, or a vendor under contract with a county agency to provide social services under section 256E.08, subdivision 4, is not a party and may not request a hearing under this section, except if assisting a recipient as provided in subdivision 4.

(c) An applicant or recipient is not entitled to receive social services beyond the services included in the amended community social services plan developed under section 256E.081, subdivision 3, if the county agency has met the requirements in section 256E.081.


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Sec. 7. Minnesota Statutes 1996, section 256.045, subdivision 3b, is amended to read:

Subd. 3b. [STANDARD OF EVIDENCE FOR MALTREATMENT HEARINGS.] The state human services referee shall determine that maltreatment has occurred if a preponderance of evidence exists to support the final disposition under section sections 626.556 and 626.557.

The state human services referee shall recommend an order to the commissioner of health or human services, as applicable, who shall issue a final order. The commissioner shall affirm, reverse, or modify the final disposition. Any order of the commissioner issued in accordance with this subdivision is conclusive upon the parties unless appeal is taken in the manner provided in subdivision 7. In any licensing appeal under chapter 245A and sections 144.50 to 144.58 and 144A.02 to 144A.46, the commissioner's findings determination as to whether maltreatment occurred is conclusive.

Sec. 8. Minnesota Statutes 1996, section 256.045, subdivision 4, is amended to read:

Subd. 4. [CONDUCT OF HEARINGS.] (a) All hearings held pursuant to subdivision 3, 3a, 3b, or 4a shall be conducted according to the provisions of the federal Social Security Act and the regulations implemented in accordance with that act to enable this state to qualify for federal grants-in-aid, and according to the rules and written policies of the commissioner of human services. County agencies shall install equipment necessary to conduct telephone hearings. A state human services referee may schedule a telephone conference hearing when the distance or time required to travel to the county agency offices will cause a delay in the issuance of an order, or to promote efficiency, or at the mutual request of the parties. Hearings may be conducted by telephone conferences unless the applicant, recipient, former recipient, person, or facility contesting maltreatment objects. The hearing shall not be held earlier than five days after filing of the required notice with the county or state agency. The state human services referee shall notify all interested persons of the time, date, and location of the hearing at least five days before the date of the hearing. Interested persons may be represented by legal counsel or other representative of their choice, including a provider of therapy services, at the hearing and may appear personally, testify and offer evidence, and examine and cross-examine witnesses. The applicant, recipient, former recipient, person, or facility contesting maltreatment shall have the opportunity to examine the contents of the case file and all documents and records to be used by the county or state agency at the hearing at a reasonable time before the date of the hearing and during the hearing. In cases alleging discharge for maltreatment, In hearings under subdivision 3, paragraph (b), clauses (4) and (8), either party may subpoena the private data relating to the investigation memorandum prepared by the lead agency under section 626.556 or 626.557 that is not otherwise accessible under section 13.04, provided the name identity of the reporter may not be disclosed.

(b) The private data obtained by subpoena in a hearing under subdivision 3, paragraph (a), clause (4) or (8), must be subject to a protective order which prohibits its disclosure for any other purpose outside the hearing provided for in this section without prior order of the district court. Disclosure without court order is punishable by a sentence of not more than 90 days imprisonment or a fine of not more than $700, or both. These restrictions on the use of private data do not prohibit access to the data under section 13.03, subdivision 6. Except for appeals under subdivision 3, paragraph (a), clauses (4), (5), and (8), upon request, the county agency shall provide reimbursement for transportation, child care, photocopying, medical assessment, witness fee, and other necessary and reasonable costs incurred by the applicant, recipient, or former recipient in connection with the appeal, except in appeals brought under subdivision 3b. All evidence, except that privileged by law, commonly accepted by reasonable people in the conduct of their affairs as having probative value with respect to the issues shall be submitted at the hearing and such hearing shall not be "a contested case" within the meaning of section 14.02, subdivision 3. The agency must present its evidence prior to or at the hearing, and may not submit evidence after the hearing except by agreement of the parties at the hearing, provided the recipient petitioner has the opportunity to respond.

Sec. 9. Minnesota Statutes 1996, section 256.045, subdivision 5, is amended to read:

Subd. 5. [ORDERS OF THE COMMISSIONER OF HUMAN SERVICES.] This subdivision does not apply to appeals under subdivision 3b. A state human services referee shall conduct a hearing on the appeal and shall recommend an order to the commissioner of human services. The recommended order must be based on all relevant evidence and must not be limited to a review of the propriety of the state or county agency's action. A referee may take official notice of adjudicative facts. The commissioner of human services may accept the recommended order of a state human services referee and issue the order to the county agency and the applicant, recipient, former recipient, or prepaid health plan. The commissioner on


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refusing to accept the recommended order of the state human services referee, shall notify the county petitioner, the agency and the applicant, recipient, former recipient, or prepaid health plan of that fact and shall state reasons therefor and shall allow each party ten days' time to submit additional written argument on the matter. After the expiration of the ten-day period, the commissioner shall issue an order on the matter to the county petitioner, the agency and the applicant, recipient, former recipient, or prepaid health plan.

A party aggrieved by an order of the commissioner may appeal under subdivision 7, or request reconsideration by the commissioner within 30 days after the date the commissioner issues the order. The commissioner may reconsider an order upon request of any party or on the commissioner's own motion. A request for reconsideration does not stay implementation of the commissioner's order. Upon reconsideration, the commissioner may issue an amended order or an order affirming the original order.

Any order of the commissioner issued under this subdivision shall be conclusive upon the parties unless appeal is taken in the manner provided by subdivision 7. Any order of the commissioner is binding on the parties and must be implemented by the state agency or a county agency until the order is reversed by the district court, or unless the commissioner or a district court orders monthly assistance or aid or services paid or provided under subdivision 10.

Except for a prepaid health plan, a vendor of medical care as defined in section 256B.02, subdivision 7, or a vendor under contract with a county agency to provide social services under section 256E.08, subdivision 4, is not a party and may not request a hearing or seek judicial review of an order issued under this section, unless assisting a recipient as provided in subdivision 4.

Sec. 10. Minnesota Statutes 1996, section 256.045, subdivision 8, is amended to read:

Subd. 8. [HEARING.] Any party may obtain a hearing at a special term of the district court by serving a written notice of the time and place of the hearing at least ten days prior to the date of the hearing. Except for appeals under subdivision 3b, The court may consider the matter in or out of chambers, and shall take no new or additional evidence unless it determines that such evidence is necessary for a more equitable disposition of the appeal.

Sec. 11. Minnesota Statutes 1996, section 256.82, is amended by adding a subdivision to read:

Subd. 5. [DIFFICULTY OF CARE ASSESSMENT PILOT PROJECT.] Notwithstanding any law to the contrary, the commissioner of human services shall conduct a two-year statewide pilot project beginning July 1, 1997, to conduct a difficulty of care assessment process which both assesses an individual child's current functioning and identifies needs in a variety of life situations. The pilot project must take into consideration existing difficulty of care payments so that, to the extent possible, no child for whom a difficulty of care rate is currently established will be adversely affected. The pilot project must include an evaluation and an interim report to the legislature by January 15, 1999.

Sec. 12. Minnesota Statutes 1996, section 256F.11, subdivision 2, is amended to read:

Subd. 2. [FUND DISTRIBUTION.] In distributing funds, the commissioner shall give priority consideration to agencies and organizations with experience in working with abused or neglected children and their families, and with children at high risk of abuse and neglect and their families, and serve communities which demonstrate the greatest need for these services. Funds shall be distributed to crisis nurseries according to a formula developed by the commissioner in consultation with the Minnesota crisis nursery association. This formula shall include funding for all existing crisis nursery programs that meet program requirements as specified in paragraph (a), and consideration of factors reflecting the need for services in each service area, including, but not limited to, the number of children 18 years of age and under living in the service area, the percent of children 18 years of age and under living in poverty in the service area, and factors reflecting the cost of providing services, including, but not limited to, the number of days of service provided in the previous year. At least 25 percent of available funds for state fiscal year 1998 shall be set aside to accomplish any of the following: establish new crisis nursery programs; increase statewide availability of crisis nursery services; and enhance or expand services at existing crisis nursery programs.

(a) The crisis nurseries must:

(1) be available 24 hours a day, seven days a week;


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(2) provide services for children up to three days at any one time;

(3) make referrals for parents to counseling services and other community resources to help alleviate the underlying cause of the precipitating stress or crisis;

(4) provide services without a fee for a maximum of 30 days in any year;

(5) provide services to children from birth to 12 years of age;

(6) provide an initial assessment and intake interview conducted by a skilled professional who will identify the presenting problem and make an immediate referral to an appropriate agency or program to prevent maltreatment and out-of-home placement of children;

(7) maintain the clients' confidentiality to the extent required by law, and also comply with statutory reporting requirements which may mandate a report to child protective services;

(8) contain a volunteer component;

(9) provide preservice training and ongoing training to providers and volunteers;

(10) evaluate the services provided by documenting use of services, the result of family referrals made to community resources, and how the services reduced the risk of maltreatment;

(11) provide age appropriate programming;

(12) provide developmental assessments;

(13) provide medical assessments as determined by using a risk screening tool;

(14) meet United States Department of Agriculture regulations concerning meals and provide three meals a day and three snacks during a 24-hour period; and

(15) provide appropriate sleep and nap arrangements for children.

(b) The crisis nurseries are encouraged to provide:

(1) on-site support groups for facility model programs, or agency sponsored parent support groups for volunteer family model programs;

(2) parent education classes or programs that include parent-child interaction; and

(3) opportunities for parents to volunteer, if appropriate, to assist with child care in a supervised setting in order to enhance their parenting skills and self-esteem, in addition to providing them the opportunity to give something back to the program.

(c) Parents shall retain custody of their children during placement in a crisis facility.

The crisis nurseries are encouraged to include one or more parents who have used the crisis nursery services on the program's multidisciplinary advisory board.

Sec. 13. [257.85] [RELATIVE CUSTODY ASSISTANCE.]

Subdivision 1. [CITATION.] This section may be cited as the "Relative Custody Assistance Act."


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Subd. 2. [PURPOSE.] The purpose of the Relative Custody Assistance Act is to assist relatives who provide a permanent placement for children who have been in court-ordered foster care by taking permanent legal and physical custody of the child. Relative custody assistance is designed to remove barriers to establishing custody with a relative that result from the special needs of the child and the limited financial resources available to the relative custodian to meet those needs. This section establishes a system of financial support through state and county partnership for relatives who assume permanent legal and physical custody of a child through a Minnesota juvenile court order entered pursuant to section 260.191, subdivision 3b, and finding:

(1) that the child cannot return to the home of the child's parents; and

(2) that it is in the child's best interests that permanent legal and physical custody be transferred to the relative.

Relative custody assistance is designed to determine a supplement to the cash assistance otherwise available to the relative custodian of a child that would raise the total amount of assistance to the amount the child would be eligible to receive through the adoption assistance program if an adoption assistance agreement were entered on the child's behalf. A percentage of the supplement so determined is then paid based upon the income of the relative custodian's family.

Subd. 3. [SCOPE.] The provisions of this section apply to those situations in which the legal and physical custody of a child is established with a relative according to section 260.191, subdivision 3b, by a court order issued on or after July 1, 1997.

Subd. 4. [DEFINITIONS.] For purposes of this section, the terms defined in this subdivision have the meanings given them.

(a) "AFDC or MFIP standard" means the monthly standard of need used to calculate assistance under the AFDC program, the transitional standard used to calculate assistance under the MFIP-S program, or, if neither of those is applicable, the analogous transitional standard used to calculate assistance under the MFIP or MFIP-R programs.

(b) "Local agency" means the local social service agency with legal custody of a child prior to the transfer of permanent legal and physical custody to a relative.

(c) "Permanent legal and physical custody" means permanent legal and physical custody ordered by a Minnesota juvenile court under section 260.191, subdivision 3b.

(d) "Relative" means an individual, other than a parent, who is related to a child by blood, marriage, or adoption.

(e) "Relative custodian" means a relative of a child for whom the relative has permanent legal and physical custody.

(f) "Relative custody assistance agreement" means an agreement entered into between a local agency and the relative of a child who has been or will be awarded permanent legal and physical custody of the child.

(g) "Relative custody assistance payment" means a monthly cash grant made to a relative custodian pursuant to a relative custody assistance agreement and in an amount calculated under subdivision 8.

(h) "Remains in the physical custody of the relative custodian" means that the relative custodian is providing day-to-day care for the child and that the child lives with the relative custodian; absence from the relative custodian's home for a period of more than 120 days raises a presumption that the child no longer remains in the physical custody of the relative custodian.

Subd. 5. [DUTIES OF LOCAL AGENCY.] When a local agency seeks a court order under section 260.191, subdivision 3b, to establish permanent legal and physical custody of a child with a relative, or if such an order is issued by the court, the local agency shall perform the duties in this subdivision.

(a) As soon as possible after the local agency determines that it will seek to establish permanent legal and physical custody of the child with a relative or, if the agency did not seek to establish custody, as soon as possible after the issuance of the court order establishing custody, the local agency shall inform the relative about the relative custody assistance program,


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including eligibility criteria and payment levels. Anytime prior to, but not later than seven days after, the date the court issues the order establishing permanent legal and physical custody of the child with a relative, the local agency shall determine whether the eligibility criteria in subdivision 7 are met to allow the relative to receive relative custody assistance. Not later than seven days after determining whether the eligibility criteria are met, the local agency shall inform the relative custodian of its determination and of the process for appealing that determination under subdivision 10.

(b) If the local agency determines that the relative custodian is eligible to receive relative custody assistance, the local agency shall prepare the relative custody assistance agreement and ensure that it meets the requirements of subdivision 6.

(c) The local agency shall make monthly payments to the relative as set forth in the relative custody assistance agreement. On a quarterly basis and on a form to be provided by the commissioner, the local agency shall make claims for reimbursement from the commissioner for relative custody assistance payments made.

(d) For a relative custody assistance agreement that is in place for longer than one year, and as long as the agreement remains in effect, the local agency shall send an annual affidavit form to the relative custodian of the eligible child within the month before the anniversary date of the agreement. The local agency shall monitor whether the annual affidavit is returned by the relative custodian within 30 days following the anniversary date of the agreement. The local agency shall review the affidavit and any other information in its possession to ensure continuing eligibility for relative custody assistance and that the amount of payment made according to the agreement is correct.

(e) When the local agency determines that a relative custody assistance agreement should be terminated or modified, it shall provide notice of the proposed termination or modification to the relative custodian at least ten days before the proposed action along with information about the process for appealing the proposed action.

Subd. 6. [RELATIVE CUSTODY ASSISTANCE AGREEMENT.] (a) A relative custody assistance agreement will not be effective, unless it is signed by the local agency and the relative custodian no later than 30 days after the date of the order establishing permanent legal and physical custody with the relative, except that a local agency may enter into a relative custody assistance agreement with a relative custodian more than 30 days after the date of the order if it certifies that the delay in entering the agreement was through no fault of the relative custodian. There must be a separate agreement for each child for whom the relative custodian is receiving relative custody assistance.

(b) Regardless of when the relative custody assistance agreement is signed by the local agency and relative custodian, the effective date of the agreement shall be the first day of the month following the date of the order establishing permanent legal and physical custody or the date that the last party signs the agreement, whichever occurs later.

(c) If MFIP-S is not the applicable program for a child at the time that a relative custody assistance agreement is entered on behalf of the child, when MFIP-S becomes the applicable program, if the relative custodian had been receiving custody assistance payments calculated based upon a different program, the amount of relative custody assistance payment under subdivision 8 shall be recalculated under the MFIP-S program.

(d) The relative custody assistance agreement shall be in a form specified by the commissioner and shall include provisions relating to the following:

(1) the responsibilities of all parties to the agreement;

(2) the payment terms, including the financial circumstances of the relative custodian, the needs of the child, the amount and calculation of the relative custody assistance payments, and that the amount of the payments shall be reevaluated annually;

(3) the effective date of the agreement, which shall also be the anniversary date for the purpose of submitting the annual affidavit under subdivision 9;

(4) that failure to submit the affidavit as required by subdivision 9 will be grounds for terminating the agreement;

(5) the agreement's expected duration, which shall not extend beyond the child's eighteenth birthday;


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(6) any specific known circumstances that could cause the agreement or payments to be modified, reduced, or terminated and the relative custodian's appeal rights under subdivision 10;

(7) that the relative custodian must notify the local agency within 30 days of any of the following:

(i) a change in the child's status;

(ii) a change in the relationship between the relative custodian and the child;

(iii) a change in composition or level of income of the relative custodian's family;

(iv) a change in eligibility or receipt of benefits under AFDC, MFIP-S, or other assistance program; and

(v) any other change that could effect eligibility for or amount of relative custody assistance;

(8) that failure to provide notice of a change as required by clause (7) will be grounds for terminating the agreement;

(9) that the amount of relative custody assistance is subject to the availability of state funds to reimburse the local agency making the payments;

(10) that the relative custodian may choose to temporarily stop receiving payments under the agreement at any time by providing 30 days' notice to the local agency and may choose to begin receiving payments again by providing the same notice but any payments the relative custodian chooses not to receive are forfeit; and

(11) that the local agency will continue to be responsible for making relative custody assistance payments under the agreement regardless of the relative custodian's place of residence.

Subd. 7. [ELIGIBILITY CRITERIA.] A local agency shall enter into a relative custody assistance agreement under subdivision 6 if it certifies that the following criteria are met:

(1) the juvenile court has determined or is expected to determine that the child, under the former or current custody of the local agency, cannot return to the home of the child's parents;

(2) the court, upon determining that it is in the child's best interests, has issued or is expected to issue an order transferring permanent legal and physical custody of the child to the relative; and

(3) the child either:

(i) is a member of a sibling group to be placed together; or

(ii) has a physical, mental, emotional, or behavioral disability that will require financial support.

When the local agency bases its certification that the criteria in clause (1) or (2) are met upon the expectation that the juvenile court will take a certain action, the relative custody assistance agreement does not become effective until and unless the court acts as expected.

Subd. 8. [AMOUNT OF RELATIVE CUSTODY ASSISTANCE PAYMENTS.] (a) The amount of a monthly relative custody assistance payment shall be determined according to the provisions of this paragraph.

(1) The total maximum assistance rate is equal to the base assistance rate plus, if applicable, the supplemental assistance rate.

(i) The base assistance rate is equal to the maximum amount that could be received as basic maintenance for a child of the same age under the adoption assistance program.


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(ii) The local agency shall determine whether the child has physical, mental, emotional, or behavioral disabilities that require care, supervision, or structure beyond that ordinarily provided in a family setting to children of the same age such that the child would be eligible for supplemental maintenance payments under the adoption assistance program if an adoption assistance agreement were entered on the child's behalf. If the local agency determines that the child has such a disability, the supplemental assistance rate shall be the maximum amount of monthly supplemental maintenance payment that could be received on behalf of a child of the same age, disabilities, and circumstances under the adoption assistance program.

(2) The net maximum assistance rate is equal to the total maximum assistance rate from clause (1) less the following offsets:

(i) if the child is or will be part of an assistance unit receiving an AFDC, MFIP-S, or other MFIP grant, the portion of the AFDC or MFIP standard relating to the child;

(ii) Supplemental Security Income payments received by or on behalf of the child;

(iii) veteran's benefits received by or on behalf of the child; and

(iv) any other income of the child, including child support payments made on behalf of the child.

(3) The relative custody assistance payment to be made to the relative custodian shall be a percentage of the net maximum assistance rate calculated in clause (2) based upon the gross income of the relative custodian's family, including the child for whom the relative has permanent legal and physical custody. In no case shall the amount of the relative custody assistance payment exceed that which the child could qualify for under the adoption assistance program if an adoption assistance agreement were entered on the child's behalf. The relative custody assistance payment shall be calculated as follows:

(i) if the relative custodian's gross family income is less than or equal to 200 percent of federal poverty guidelines, the relative custody assistance payment shall be the full amount of the net maximum assistance rate;

(ii) if the relative custodian's gross family income is greater than 200 percent and less than or equal to 225 percent of federal poverty guidelines, the relative custody assistance payment shall be 80 percent of the net maximum assistance rate;

(iii) if the relative custodian's gross family income is greater than 225 percent and less than or equal to 250 percent of federal poverty guidelines, the relative custody assistance payment shall be 60 percent of the net maximum assistance rate;

(iv) if the relative custodian's gross family income is greater than 250 percent and less than or equal to 275 percent of federal poverty guidelines, the relative custody assistance payment shall be 40 percent of the net maximum assistance rate;

(v) if the relative custodian's gross family income is greater than 275 percent and less than or equal to 300 percent of federal poverty guidelines, the relative custody assistance payment shall be 20 percent of the net maximum assistance rate; or

(vi) if the relative custodian's gross family income is greater than 300 percent of federal poverty guidelines, no relative custody assistance payment shall be made.

(b) This paragraph sets forth the provisions pertaining to the relationship between relative custody assistance and AFDC, MFIP-S, or other MFIP programs:

(1) the relative custodian of a child for whom the relative is receiving relative custody assistance is expected to seek whatever assistance is available for the child through the AFDC, MFIP-S, or other MFIP programs. If a relative custodian fails to apply for assistance through AFDC, MFIP-S, or other MFIP program for which the child is eligible, the child's portion of the AFDC or MFIP standard will be calculated as if application had been made and assistance received;

(2) the portion of the AFDC or MFIP standard relating to each child for whom relative custody assistance is being received shall be calculated as follows:

(i) determine the total AFDC or MFIP standard for the assistance unit;


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(ii) determine the amount that the AFDC or MFIP standard would have been if the assistance unit had not included the children for whom relative custody assistance is being received;

(iii) subtract the amount determined in item (ii) from the amount determined in item (i); and

(iv) divide the result in item (iii) by the number of children for whom relative custody assistance is being received that are part of the assistance unit; or

(3) if a child for whom relative custody assistance is being received is not eligible for assistance through the AFDC, MFIP-S, or other MFIP programs, the portion of AFDC or MFIP standard relating to that child shall be equal to zero.

Subd. 9. [ANNUAL AFFIDAVIT.] When a relative custody assistance agreement remains in effect for more than one year, the local agency shall require the relative custodian to annually submit an affidavit in a form to be specified by the commissioner. The affidavit must be submitted to the local agency each year no later than 30 days after the relative custody assistance agreement's anniversary date. The affidavit shall document the following:

(1) that the child remains in the physical custody of the relative custodian;

(2) that there is a continuing need for the relative custody assistance payments due to the child's physical, mental, emotional, or behavioral needs; and

(3) the current gross income of the relative custodian's family.

The relative custody assistance agreement may be modified based on information or documentation presented to the local agency under this requirement and as required by annual adjustments to the federal poverty guidelines.

Subd. 10. [RIGHT OF APPEAL.] A relative custodian who enters into a relative custody assistance agreement with a local agency has the right to appeal to the commissioner under section 256.045 when the local agency establishes, denies, terminates, or modifies the agreement. Upon appeal, the commissioner may review only:

(1) whether the local agency has met the legal requirements imposed by this chapter for establishing, denying, terminating, or modifying the agreement;

(2) whether the amount of the relative custody assistance payment was correctly calculated under the method in subdivision 8;

(3) whether the local agency paid for correct time periods under the relative custody assistance agreement;

(4) whether the child remains in the physical custody of the relative custodian;

(5) whether the local agency correctly calculated the amount of the supplemental assistance rate based on a change in the child's physical, mental, emotional, or behavioral needs, the relative custodian's failure to document the continuing need for the supplemental assistance rate after the local agency has requested such documentation; and

(6) whether the local agency correctly calculated or terminated the amount of relative custody assistance based on the relative custodian's failure to provide documentation of the gross income of the relative custodian's family after the local agency has requested such documentation.

Subd. 11. [CHILD'S COUNTY OF RESIDENCE.] For the purposes of the Unitary Residency Act, time spent by a child in the custody of a relative custodian receiving payments under this section is not excluded time. A child is a resident of the county where the relative custodian is a resident.

Subd. 12. [FINANCIAL CONSIDERATIONS.] (a) Payment of relative custody assistance pursuant to a relative custody assistance agreement is subject to the availability of state funds and payments may be reduced or suspended on order of the commissioner if insufficient funds are available.


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(b) Upon receipt from a local agency of a claim for reimbursement, the commissioner shall reimburse the local agency in an amount equal to 100 percent of the relative custody assistance payments provided to relative custodians. The local agency may not seek and the commissioner shall not provide reimbursement for the administrative costs associated with performing the duties in subdivision 5.

(c) For the purposes of determining eligibility or payment amounts under the AFDC, MFIP-S, and other MFIP programs, relative custody assistance payments shall be considered excluded income.

Sec. 14. Minnesota Statutes 1996, section 393.07, subdivision 2, is amended to read:

Subd. 2. [ADMINISTRATION OF PUBLIC WELFARE.] The local social services agency, subject to the supervision of the commissioner of human services, shall administer all forms of public welfare, both for children and adults, responsibility for which now or hereafter may be imposed on the commissioner of human services by law, including general assistance, aid to dependent children, county supplementation, if any, or state aid to recipients of supplemental security income for aged, blind and disabled, child welfare services, mental health services, and other public assistance or public welfare services, provided that the local social services agency shall not employ public health nursing or home health service personnel other than homemaker-home help aides, but shall contract for or purchase the necessary services from existing community agencies. The duties of the local social services agency shall be performed in accordance with the standards and rules which may be promulgated by the commissioner of human services to achieve the purposes intended by law and in order to comply with the requirements of the federal Social Security Act in respect to public assistance and child welfare services, so that the state may qualify for grants-in-aid available under that act. To avoid administrative penalties under section 256.017, the local social services agency must comply with (1) policies established by state law and (2) instructions from the commissioner relating (i) to public assistance program policies consistent with federal law and regulation and state law and rule and (ii) to local agency program operations. The commissioner may enforce local social services agency compliance with the instructions, and may delay, withhold, or deny payment of all or part of the state and federal share of benefits and federal administrative reimbursement, according to the provisions under section 256.017. The local social services agency shall supervise wards of the commissioner and, when so designated, act as agent of the commissioner of human services in the placement of the commissioner's wards in adoptive homes or in other foster care facilities. The local social services agency shall cooperate as needed when the commissioner contracts with a licensed child placement agency for adoption services for a child under the commissioner's guardianship. The local social services agency may contract with a bank or other financial institution to provide services associated with the processing of public assistance checks and pay a service fee for these services, provided the fee charged does not exceed the fee charged to other customers of the institution for similar services.

Sec. 15. Minnesota Statutes 1996, section 466.01, subdivision 1, is amended to read:

Subdivision 1. [MUNICIPALITY.] For the purposes of sections 466.01 to 466.15, "municipality" means any city, whether organized under home rule charter or otherwise, any county, town, public authority, public corporation, nonprofit firefighting corporation that has associated with it a relief association as defined in section 424A.001, subdivision 4, special district, school district, however organized, county agricultural society organized pursuant to chapter 38, joint powers board or organization created under section 471.59 or other statute, public library, regional public library system, multicounty multitype library system, family services collaborative established under section 121.8355, children's mental health collaboratives established under sections 245.491 to 245.496, or a collaborative established by the merger of a children's mental health collaborative and a family services collaborative, other political subdivision, or community action agency.

Sec. 16. Minnesota Statutes 1996, section 471.59, subdivision 11, is amended to read:

Subd. 11. [JOINT POWERS BOARD.] (a) Two or more governmental units, through action of their governing bodies, by adoption of a joint powers agreement that complies with the provisions of subdivisions 1 to 5, may establish a joint board to issue bonds or obligations under any law by which any of the governmental units establishing the joint board may independently issue bonds or obligations and may use the proceeds of the bonds or obligations to carry out the purposes of the law under which the bonds or obligations are issued. A joint board established under this section may issue obligations and other forms of indebtedness only in accordance with express authority granted by the action of the governing bodies of the governmental units that established the joint board. Except as provided in paragraph (b), the joint board established under this subdivision must be composed solely of members of the governing bodies of the governmental unit that established


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the joint board. A joint board established under this subdivision may not pledge the full faith and credit or taxing power of any of the governmental units that established the joint board. The obligations or other forms of indebtedness must be obligations of the joint board issued on behalf of the governmental units creating the joint board. The obligations or other forms of indebtedness must be issued in the same manner and subject to the same conditions and limitations that would apply if the obligations were issued or indebtedness incurred by one of the governmental units that established the joint board, provided that any reference to a governmental unit in the statute, law, or charter provision authorizing the issuance of the bonds or the incurring of the indebtedness is considered a reference to the joint board.

(b) Notwithstanding paragraph (a), one school district, one county, and one public health entity, through action of their governing bodies, may establish a joint board to establish and govern a family services collaborative under section 121.8355. The school district, county, and public health entity may include other governmental entities at their discretion. The membership of a board established under this paragraph, in addition to members of the governing bodies of the participating governmental units, must include the representation required by section 121.8355, subdivision 1, paragraph (a), selected in accordance with section 121.8355, subdivision 1, paragraph (c).

(c) Notwithstanding paragraph (a), counties, school districts, and mental health entities, through action of their governing bodies, may establish a joint board to establish and govern a children's mental health collaborative under sections 245.491 to 245.496, or a collaborative established by the merger of a children's mental health collaborative and a family services collaborative under section 121.8355. The county, school district, and mental health entities may include other entities at their discretion. The membership of a board established under this paragraph, in addition to members of the governing bodies of the participating governmental units, must include the representation provided by section 245.493, subdivision 1.

Sec. 17. Minnesota Statutes 1996, section 626.556, subdivision 10b, is amended to read:

Subd. 10b. [DUTIES OF COMMISSIONER; NEGLECT OR ABUSE IN A FACILITY.] (a) The commissioner shall immediately investigate if the report alleges that:

(1) a child who is in the care of a facility as defined in subdivision 2 is neglected, physically abused, or sexually abused by an individual in that facility, or has been so neglected or abused by an individual in that facility within the three years preceding the report; or

(2) a child was neglected, physically abused, or sexually abused by an individual in a facility defined in subdivision 2, while in the care of that facility within the three years preceding the report.

The commissioner shall arrange for the transmittal to the commissioner of reports received by local agencies and may delegate to a local welfare agency the duty to investigate reports. In conducting an investigation under this section, the commissioner has the powers and duties specified for local welfare agencies under this section. The commissioner or local welfare agency may interview any children who are or have been in the care of a facility under investigation a