McElroy; Olson, E., and Rice were excused.

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

S. F. No. 1797 and H. F. No. 2012, which had been referred to the Chief Clerk for comparison, were examined and found to be identical.

Leppik moved that S. F. No. 1797 be substituted for H. F. No. 2012 and that the House File be indefinitely postponed. The motion prevailed.

S. F. No. 1862 and H. F. No. 2110, which had been referred to the Chief Clerk for comparison, were examined and found to be identical with certain exceptions.

Haas moved that the rules be so far suspended that S. F. No. 1862 be substituted for H. F. No. 2110 and that the House File be indefinitely postponed. The motion prevailed.

Anderson, R., from the Committee on Health and Human Services to which was referred:

H. F. No. 1157, A bill for an act relating to occupations and professions; board of psychology; modifying board duties; changing types of licensure; changing licensure provisions; providing for discipline; providing penalties; amending Minnesota Statutes 1994, sections 147.09; 148.88; 148.881; 148.89, subdivisions 2a, 5, and by adding a subdivision; 148.90, subdivisions 1 and 2; 148.905, subdivision 1; 148.911; 148.925; 148.941, subdivisions 2, 4, and by adding subdivisions; 148.96; 148.975; 148.98; 253B.02, subdivision 11; proposing coding for new law in Minnesota Statutes, chapter 148; repealing Minnesota Statutes 1994, sections 148.89, subdivisions 6, 7, and 8; 148.91; 148.921; 148.93; 148.951; and 148.97.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 1995 Supplement, section 147.09, is amended to read:

147.09 [EXEMPTIONS.]

Section 147.081 does not apply to, control, prevent or restrict the practice, service, or activities of:

(1) A person who is a commissioned medical officer of, a member of, or employed by, the armed forces of the United States, the United States Public Health Service, the Veterans Administration, any federal institution or any federal agency while engaged in the performance of official duties within this state, if the person is licensed elsewhere.

(2) A licensed physician from a state or country who is in actual consultation here.

(3) A licensed or registered physician who treats the physician's home state patients or other participating patients while the physicians and those patients are participating together in outdoor recreation in this state as defined by section 86A.03, subdivision 3. A physician shall first register with the board on a form developed by the board for that purpose. The board shall not be required to promulgate the contents of that form by rule. No fee shall be charged for this registration.

(4) A student practicing under the direct supervision of a preceptor while the student is enrolled in and regularly attending a recognized medical school.

(5) A student who is in continuing training and performing the duties of an intern or resident or engaged in postgraduate work considered by the board to be the equivalent of an internship or residency in any hospital or institution approved for training by the board, provided the student has a residency permit issued by the board under section 147.0391.

(6) A person employed in a scientific, sanitary, or teaching capacity by the state university, the department of children, families, and learning, or by any public or private school, college, or other bona fide educational institution, or the state department of health, whose duties are entirely of a public health or educational character, while engaged in such duties.

(7) Physician's assistants registered in this state.

(8) A doctor of osteopathy duly licensed by the state board of osteopathy under Minnesota Statutes 1961, sections 148.11 to 148.16, prior to May 1, 1963, who has not been granted a license to practice medicine in accordance with this chapter provided that the doctor confines activities within the scope of the license.

(9) Any person licensed by a health related licensing board, as defined in section 214.01, subdivision 2, or registered by the commissioner of health pursuant to section 214.13, including psychological practitioners with respect to the use of hypnosis; provided that the person confines activities within the scope of the license.

(10) A person who practices ritual circumcision pursuant to the requirements or tenets of any established religion.

(11) A Christian Scientist or other person who endeavors to prevent or cure disease or suffering exclusively by mental or spiritual means or by prayer.

(12) A physician licensed to practice medicine in another state who is in this state for the sole purpose of providing medical services at a competitive athletic event. The physician may practice medicine only on participants in the athletic event. A physician shall first register with the board on a form developed by the board for that purpose. The board shall not be required to adopt the contents of the form by rule. The physician shall provide evidence satisfactory to the board of a current unrestricted license in another state. The board shall charge a fee of $50 for the registration.

(13) A psychologist licensed under section 148.91 148.907 or a social worker licensed under section 148B.21 who uses or supervises the use of a penile or vaginal plethysmograph in assessing and treating individuals suspected of engaging in aberrant sexual behavior and sex offenders.

Sec. 2. Minnesota Statutes 1994, section 148.88, is amended to read:

148.88 [CITATION.]

Sections 148.88 to 148.98 and the rules adopted under them, shall be cited as the Minnesota licensing law for psychologists psychology practice act.

Sec. 3. Minnesota Statutes 1994, section 148.881, is amended to read:

148.881 [DECLARATION OF POLICY.]

The practice of psychology in Minnesota affects the public health, safety, and welfare. The regulations in sections 148.88 to 148.98 protect the public from the practice of psychology by unqualified persons and from unethical or unprofessional conduct by persons licensed to practice psychology.

Sec. 4. Minnesota Statutes 1994, section 148.89, subdivision 2a, is amended to read:

Subd. 2a. [CLIENT.] "Client" means a each person or legal, religious, academic, organizational, business, governmental, or other entity that receives, received, or should have received, or arranged for another entity to receive services from a person regulated under sections 148.88 to 148.98. For the purposes of sections 148.88 to 148.98, "client" includes may include patient and, resident, counselee, evaluatee, and, as limited in the rules of conduct, student, supervisee, or research subject. In the case of dual clients, the psychologist must be aware of the responsibilities to each client, and of the potential for divergent interests of each client.

Sec. 5. Minnesota Statutes 1994, section 148.89, subdivision 5, is amended to read:

Subd. 5. [PRACTICE OF PSYCHOLOGY.] "Practice of psychology" means the observation, description, evaluation, interpretation, and modification of human behavior by the application of psychological principles, methods, and procedures, to prevent or eliminate symptomatic, maladaptive, or undesired behavior and to enhance interpersonal relationships, work and life adjustment, personal and organizational effectiveness, behavioral health, and mental health. The practice of psychology includes, but is not limited to, the following services, regardless of whether the provider receives payment for the services:

(1) psychological research, psychological testing, teaching of psychology, and the evaluation or assessment of personal characteristics such as intelligence, personality, abilities, interests, aptitudes, and neuropsychological functioning;

(2) counseling, psychoanalysis, psychotherapy, hypnosis, biofeedback, and diagnosis and treatment of:

(i) mental and emotional disorder or disability;

(ii) alcoholism and substance abuse;

(iii) disorders of habit or conduct; and

(iv) the psychological aspects of physical illness or condition, accident, injury, or disability; and

(v) bereavement issues;

(vi) family or relationship issues; and

(vii) work-related issues; and

(3) psychoeducational evaluation, therapy, remediation, and consultation. Recipients of psychological services include individuals, families, groups, organizations, and the public.

Sec. 6. Minnesota Statutes 1994, section 148.89, is amended by adding a subdivision to read:

Subd. 6a. [SENIOR PRACTITIONER.] "Senior practitioner" means a person who:

(1) has been issued a license, certificate, or registration at the doctoral level for at least 15 years to practice psychology in another jurisdiction; and

(2) has had no disciplinary action taken against the license, certificate, or registration during the person's entire period of licensure, certification, or registration.

Sec. 7. Minnesota Statutes 1994, section 148.90, subdivision 1, is amended to read:

Subdivision 1. [BOARD OF PSYCHOLOGY.] (a) The board of psychology is created with the powers and duties described in this section. The board has 11 members who consist of:

(1) three persons licensed as licensed psychologists who have a doctoral degree in psychology;

(2) two persons licensed as licensed psychologists who have a master's degree in psychology;

(3) two psychologists, not necessarily licensed, one with a doctoral degree in psychology who represents a doctoral training program in psychology, and one who represents a master's degree training program in psychology;

(4) one person licensed or qualified to be licensed as a psychological practitioner; and

(5) three public members.

(b) After the date on which fewer than 30 percent of the persons licensed by the board as licensed psychologists qualify for licensure under section 148.921, subdivision 2 148.907, subdivision 3, paragraph (b), the first vacancy filled under paragraph (a), clause (2), must shall be filled by a person licensed or qualified to be licensed as a licensed psychological practitioner. From this date on, this position when vacant must shall be filled by a person licensed or qualified to be licensed as a licensed psychological practitioner.

(c) After the date on which fewer than 15 percent of the persons licensed by the board as licensed psychologists qualify for licensure under section 148.921, subdivision 2 148.907, subdivision 3, paragraph (b), the first vacancy under paragraph (a), clause (2), for a person licensed as a licensed psychologist with a master's degree in psychology must shall be filled by a person licensed as a licensed psychologist who has a doctoral degree in psychology. From this date on, this position when vacant must shall be filled by a person licensed as a licensed psychologist who has a doctoral degree in psychology.

(d) Following the filling of the first vacancy under paragraph (c), no further appointments shall be made pursuant to paragraph (a), clause (2).

Sec. 8. Minnesota Statutes 1994, section 148.90, subdivision 2, is amended to read:

Subd. 2. [MEMBERS.] (a) The members of the board shall:

(1) be appointed by the governor;

(2) be residents of the state;

(3) serve for not more than two consecutive terms;

(4) designate the officers of the board; and

(5) administer oaths pertaining to the business of the board.

(b) A public member of the board shall broadly represent the public interest and shall not:

(1) be a psychologist, psychological practitioner, or engage have engaged in the practice of psychology before retirement;

(2) be an applicant or former applicant for licensure;

(3) be a member of another health profession;

(4) be a member of a household that includes a psychologist or psychological practitioner; or

(5) have conflicts of interest or the appearance of conflicts with duties as a board member.

Sec. 9. Minnesota Statutes 1994, section 148.905, subdivision 1, is amended to read:

Subdivision 1. [GENERAL.] The board shall:

(1) adopt and enforce rules for licensing psychologists and psychological practitioners and for regulating their professional conduct. The rules must include, but are not limited to, standards for training, supervision, the practice of psychology, and any other areas covered by sections 148.88 to 148.98;

(2) adopt rules that provide for examinations and establish a code of professional ethics and requirements for continuing education and enforce rules of conduct governing the practice of psychology;

(3) hold examinations adopt and implement rules for examinations which shall be held at least once a year to assess applicants' knowledge and skills. The examinations may be written or oral or both, and may be administered by the board or by institutions or individuals designated by the board;

(4) issue licenses to individuals qualified under section 148.91 sections 148.907 and 148.908, according to the procedures for licensing in Minnesota Rules;

(5) issue copies of the rules for licensing to all applicants;

(6) establish and maintain annually a register of current licenses;

(7) establish reasonable and collect fees for the issuance and renewal of licenses and other services by the board. Fees must shall be set to defray the cost of administering the provisions of sections 148.88 to 148.98 including costs for applications, examinations, enforcement, materials, and the cost of maintaining the operations of the board;

(8) educate the public about the requirements for licensing of psychologists and of psychological practitioners and about the code of professional ethics rules of conduct, to allow consumers enable the public to file complaints against applicants or licensees who may have violated licensing requirements or professional ethics the psychology practice act; and

(9) adopt and implement requirements for continuing education and establish or approve programs that qualify for professional psychology continuing educational credit. The board may hire consultants, agencies, or professional psychological associations to establish and approve continuing education courses.

Sec. 10. [148.906] [LEVELS OF PRACTICE.]

The board may grant licenses for levels of psychological practice to be known as (1) licensed psychologist and (2) licensed psychological practitioner.

Sec. 11. [148.907] [LICENSED PSYCHOLOGIST.]

Subdivision 1. [EFFECTIVE DATE.] After August 1, 1991, no person shall engage in the independent practice of psychology unless that person is licensed as a licensed psychologist.

Subd. 2. [REQUIREMENTS FOR LICENSURE AS A LICENSED PSYCHOLOGIST.] To become licensed by the board as a licensed psychologist, an applicant shall comply with the following requirements:

(1) pass an examination in psychology;

(2) pass a professional responsibility examination on the practice of psychology;

(3) pass any other examinations as required by board rules;

(4) pay nonrefundable fees to the board for applications, processing, testing, renewals, and materials;

(5) have attained the age of majority, be of good moral character, and have no unresolved disciplinary action or complaints pending in the state of Minnesota or any other jurisdiction;

(6) have a doctoral degree with a major in psychology from a regionally accredited educational institution meeting the standards the board has established by rule; and

(7) have completed at least two full years or the equivalent of postdoctoral supervised psychological employment.

Subd. 3. [MASTER'S LEVEL LICENSURE AS A LICENSED PSYCHOLOGIST AFTER AUGUST 1, 1991.] (a) A person licensed in this state as a licensed consulting psychologist or a licensed psychologist before August 1, 1991, qualifies for licensure as a licensed psychologist, as described in subdivision 2, at the time of license renewal.

(b) Providing all other licensure requirements have been satisfactorily met, the board shall grant licensure as a licensed psychologist to a person who:

(1) before November 1, 1991, entered a graduate program at a regionally accredited educational institution granting a master's or doctoral degree with a major in psychology which meets the standards the board has established by rule;

(2) before December 31, 1997, earned a master's degree or a master's equivalent in a doctoral program at a regionally accredited educational institution and complied with requirements of subdivision 2, clauses (1) to (5), except that the nonrefundable fees for licensure are payable at the time an application for licensure is submitted; and

(3) before December 31, 1998, completed at least two full years or the equivalent of post-master's supervised psychological employment, which may include a predoctoral internship.

(c) Notwithstanding paragraph (b), the board shall not grant licensure as a licensed psychologist under this subdivision unless the applicant demonstrates that the applicant was a resident of Minnesota on October 31, 1992, and meets all the requirements for licensure under this subdivision.

Subd. 4. [CONVERTING FROM MASTER'S TO DOCTORAL LEVEL LICENSURE.] To convert from licensure as a licensed psychologist at the master's or master's equivalent level to licensure at the doctoral level, a licensed psychologist shall have:

(1) completed an application provided by the board;

(2) had an official transcript documenting the conferral of the doctoral degree sent directly from the educational institution to the board;

(3) paid a nonrefundable fee;

(4) successfully completed two full years or the equivalent of supervised psychological employment, which shall not include a predoctoral internship, after earning a master's degree or a master's equivalent in a doctoral program;

(5) successfully completed a predoctoral internship meeting the standards the board has established by rule; and

(6) received a doctoral degree with a major in psychology from a regionally accredited educational institution meeting the standards the board has established by rule.

Sec. 12. [148.908] [LICENSED PSYCHOLOGICAL PRACTITIONER.]

Subdivision 1. [SCOPE OF PRACTICE.] A licensed psychological practitioner shall practice only under supervision that satisfies the requirements of section 148.925 and while employed by either a licensed psychologist or a health care or social service agency which employs or contracts with a supervising licensed psychologist who shares clinical responsibility for the care provided by the licensed psychological practitioner.

Subd. 2. [REQUIREMENTS FOR LICENSURE AS A LICENSED PSYCHOLOGICAL PRACTITIONER.] To become licensed by the board as a licensed psychological practitioner, an applicant shall comply with the following requirements:

(1) pass an examination in psychology;

(2) pass a professional responsibility examination on the practice of psychology;

(3) pass any other examinations as required by board rules;

(4) pay nonrefundable fees to the board for applications, processing, testing, renewals, and materials;

(5) attained the age of majority, be of good moral character, and have no unresolved disciplinary action or complaints pending in the state of Minnesota or any other jurisdiction; and

(6) have received a doctoral or master's degree or the equivalent of a master's degree in a doctoral program with a major in psychology from a regionally accredited educational institution meeting the standards the board has established by rule.

Sec. 13. Minnesota Statutes 1994, section 148.911, is amended to read:

148.911 [CONTINUING EDUCATION.]

When the licensee renews the license, the licensee must provide the board with satisfactory evidence that the licensee has completed continuing education requirements established by the board. Continuing education programs must be approved under section 148.905, subdivision 1, clause (9). The board shall establish by rule the number of continuing education training hours required each year and may specify subject or skills areas that the licensee must address. In specifying subject or skills areas, the board shall consider the need for continuing education requirements in the areas of ethics, forensic practice, and supervision.

Upon application for license renewal, a licensee shall provide the board with satisfactory evidence that the licensee has completed continuing education requirements established by the board. Continuing education programs shall be approved under section 148.905, subdivision 1, clause (9). The board shall establish by rule the number of continuing education training hours required each year and may specify subject or skills areas that the licensee shall address.

Sec. 14. [148.915] [RECIPROCITY.]

Subdivision 1. [GENERALLY.] The board may grant a license to a diplomate of the American Board of Professional Psychology or to any person who at the time of application is licensed, certified, or registered to practice psychology by a board of another state and who meets the licensure requirements under section 148.907, subdivision 2. The board, at its discretion, may elect not to require the examination in psychology under section 148.907, subdivision 2, clause (1), if the person was licensed in another state before the examination was required for licensure in that state. An applicant seeking licensure under this section shall pass a professional responsibility examination on the practice of psychology and any other examinations as required by the board.

Subd. 2. [SENIOR PRACTITIONER.] The board, at its discretion, may grant a license as a licensed psychologist to a senior practitioner who has completed less than two years of postdegree supervised employment. An applicant seeking licensure under this section shall pass a professional responsibility examination and pass any other examinations as required by the board, pertaining to the practice of psychology.

Sec. 15. [148.916] [GUEST LICENSURE.]

Subdivision 1. [GENERALLY.] If a nonresident of the state of Minnesota, who is not seeking licensure in this state, and who has been issued a license, certificate, or registration by another jurisdiction to practice psychology at the doctoral level, wishes to practice in Minnesota for more than seven calendar days, the person shall apply to the board for guest licensure, provided that the psychologist's practice in Minnesota is limited to no more than 30 days per calendar year. Application under this section shall be made no less than 30 days prior to the expected date of practice in Minnesota and shall be subject to approval by the board or its designee. The board shall charge a nonrefundable fee for guest licensure. The board shall adopt rules to implement this section.

Subd. 2. [PSYCHOLOGICAL CONSULTATIONS.] Notwithstanding subdivision 1, a nonresident of the state of Minnesota, who is not seeking licensure in this state, may serve as an expert witness, presenter, or educator without obtaining guest licensure, provided the person is appropriately trained, educated, or has been issued a license, certificate, or registration by another jurisdiction.

Subd. 3. [DISASTER OR EMERGENCY RELIEF WORKERS.] The requirements of subdivision 1 do not apply to psychologists sent to this state for the sole purpose of responding to a disaster or emergency relief effort of this state government, the federal government, the American Red Cross, or other disaster or emergency relief organization as long as the psychologist is not practicing in Minnesota for longer than 30 days and the American Red Cross, disaster or emergency relief organization, or government can certify the psychologist's assignment in this state. The board or its designee, at its discretion, may grant an extension to the 30-day time limitation of this subdivision.

Subd. 4. [PROHIBITIONS AND SANCTIONS.] A person's privilege to practice under this section is subject to the prohibitions and sanctions for unprofessional or unethical conduct contained in Minnesota laws and rules.

Sec. 16. Minnesota Statutes 1994, section 148.925, is amended to read:

148.925 [SUPERVISION.]

Subdivision 1. [SUPERVISION.] For the purpose of meeting the requirements of this section, supervision means documented in-person consultation between either: (1) a supervising licensed psychologist and a licensed psychological practitioner; or (2) a supervising licensed psychologist or a mental health professional designated by the supervising licensed psychologist and an applicant for licensure as a licensed psychologist. The supervision shall be adequate to assure the quality and competence of the activities supervised. Supervisory consultation shall include discussions on the nature and content of the practice of the supervisee, including, but not limited to, a review of a representative sample of psychological services in the supervisee's practice.

Subd. 2. [SUPERVISED PSYCHOLOGICAL EMPLOYMENT.] Supervised psychological employment means paid or volunteer work experience and postdegree training of a person seeking to be licensed as a licensed psychologist that involves the professional oversight by a licensed psychologist and satisfies the supervision requirements in subdivision 5.

Subd. 3. [PERSONS QUALIFIED TO PROVIDE SUPERVISION.] (a) Only the following persons are qualified to provide supervision for master's degree level applicants for licensure as a licensed psychologist Supervision of a master's level applicant for licensure as a licensed psychologist shall be provided by a person:

(1) who is a licensed psychologist with a competency competencies both in supervision in professional the practice of psychology and in the area of practice activities being supervised; and

(2) a person who either is eligible for licensure as a licensed psychologist under section 148.91 or is eligible for licensure by reciprocity, and who, in the judgment of the board, is competent or experienced in supervising professional psychology and in the area of practice being supervised. who has a doctoral degree with a major in psychology, who is employed by a regionally accredited educational institution or employed by a federal, state, county, or local government institution, agency, or research facility, and who has competencies both in supervision in the practice of psychology and in the activities being supervised, provided the supervision is being provided and the activities being supervised occur within that regionally accredited educational institution or federal, state, county, or local government institution, agency, or research facility; or

(3) who is eligible for licensure as a licensed psychologist by reciprocity with competencies both in supervision in the practice of psychology and in the activities being supervised.

(b) Professional Supervision of a doctoral level applicant for licensure as a licensed psychologist must shall be provided by a person:

(1) who meets the requirements of paragraph (a), clause (1) or (2), and is a licensed psychologist with a doctoral degree and with competencies both in supervision in the practice of psychology and in the activities being supervised;

(2)(i) who has a doctorate degree with a major in psychology, or

(ii) who has a doctoral degree with a major in psychology, who is employed by a regionally accredited educational institution or is employed by a federal, state, county, or local government institution, agency, or research facility, and who has competencies both in supervision in the practice of psychology and in the activities being supervised, provided the supervision is being provided and the activities being supervised occur within that regionally accredited educational institution or federal, state, county, or local government institution, agency, or research facility;

(3) who is eligible for licensure by reciprocity with competencies both in supervision in the practice of psychology and in the activities being supervised; or

(4) who is a licensed psychologist who was licensed by the board as a psychologist before August 1, 1991, and is certified by the board as competent in with competencies both in supervision of applicants for licensure in the practice of psychology and in the activities being supervised.

Subd. 2. 4. [SUPERVISORY CONSULTATION FOR A LICENSED PSYCHOLOGICAL PRACTITIONER.] (a) Supervisory consultation between a supervising licensed psychologist and a supervised licensed psychological practitioner must shall be at least one hour in duration and shall occur on a one-to-one an individual, in-person basis at a ratio of at least. A minimum of one hour of supervision per month is required for the initial 20 or fewer hours of psychological services delivered per month and no less than one hour a month. The consultation must be at least one hour in duration. For each additional 20 hours of psychological services delivered per month, an additional hour of supervision must occur per month is required. However, if When more than 20 hours of psychological services are provided in a week, no time period more than one hour of supervision beyond one hour is required per week is required, but supervision must be adequate to assure the quality and competence of the services. Supervisory consultation must include discussions on the nature and content of the practice of the psychological practitioner, including but not limited to a review of a representative sample of psychological services in the supervisee's practice.

(b) Subd. 5. [SUPERVISORY CONSULTATION FOR AN APPLICANT FOR LICENSURE AS A LICENSED PSYCHOLOGIST.] Supervision of an applicant for licensure as a licensed psychologist must shall include at least two hours of regularly scheduled face-to-face in-person consultations a per week for full-time employment, one hour of which must shall be with the supervisor on a one-to-one an individual basis. The remaining hour may be with other master's or doctoral prepared mental health professionals designated by the supervisor. The board may approve an exception to the weekly supervision requirement for a week when the supervisor was ill or otherwise unable to provide supervision. The board may prorate the two hours per week of supervision for persons preparing for licensure on a part-time basis. Supervised psychological employment does not qualify for licensure when the supervisory consultation is not adequate as described in subdivision 1, or in the board rules.

Subd. 6. [SUPERVISEE DUTIES.] Persons preparing for licensure as a licensed psychologist during their postdegree supervised employment may perform as part of their training any functions specified in section 148.89, but only under qualified supervision.

Subd. 3. 7. [WAIVER OF SUPERVISION REQUIREMENTS.] (a) An applicant for licensure as a licensed psychologist who entered supervised employment before August 1, 1991, may request a waiver from the board of the supervision requirements in this section in order to continue supervision under the board rules in effect before August 1, 1991.

(b) The board shall grant a waiver from the supervision requirements of subdivision 4 to a licensed psychological practitioner who presents evidence of:

(1) completion of two full years or the equivalent of supervised post-master's degree employment, meeting the requirements of subdivision 5 as it relates to preparation for licensure as a licensed psychologist;

(2) endorsement for specific areas of competency by the licensed psychologist who provided the two years of supervision;

(3) employment by a hospital or by a community mental health center or nonprofit mental health clinic or social service agency providing services as a part of the mental health service plan required by the comprehensive mental health act;

(4) the employer's acceptance of clinical responsibility for the care provided by the licensed psychological practitioner; and

(5) a plan which is satisfactory to the board for supervising the work of the licensed psychological practitioner.

(c) After December 31, 1993, the supervision requirements must be deemed waived for a person who previously received a waiver under paragraph (b) and is seeking a new waiver because of a change of employment to a different employer or employment setting. The deemed waiver continues until the board either grants or denies the waiver. A person who has been denied a waiver is entitled to appeal the decision using a contested case hearing. The person must request a hearing within 30 days after receiving notice from the board that the request for a waiver has been denied. A deemed waiver under this paragraph continues until the appeal has been resolved.

Sec. 17. Minnesota Statutes 1994, section 148.941, subdivision 2, is amended to read:

Subd. 2. [GROUNDS FOR DISCIPLINARY ACTION; FORMS OF DISCIPLINARY ACTION.] (a) The board may impose disciplinary action as described in paragraph (b) against an applicant or licensee whom the board, by a preponderance of the evidence, determines:

(1) has violated a statute, rule, or order that the board issued or is empowered to enforce;

(2) has engaged in fraudulent, deceptive, or dishonest conduct, whether or not the conduct relates to the practice of psychology, that adversely affects the person's ability or fitness to practice psychology;

(3) has engaged in unprofessional conduct or any other conduct which has the potential for causing harm to the public, including any departure from or failure to conform to the minimum standards of acceptable and prevailing practice without actual injury having to be established;

(4) has been convicted of or has pled guilty or nolo contendere to a felony or other crime, an element of which is dishonesty or fraud, or has been shown to have engaged in acts or practices tending to show that the applicant or licensee is incompetent or has engaged in conduct reflecting adversely on the applicant's or licensee's ability or fitness to engage in the practice of psychology;

(5) has employed fraud or deception in obtaining or renewing a license, or in passing the an examination;

(6) has had a psychology license, certificate, right registration, privilege to examine take an examination, or other similar authority denied, revoked, suspended, canceled, limited, or not renewed for cause in any state, commonwealth, or territory of the United States, the District of Columbia, or any foreign country jurisdiction;

(7) has failed to meet any requirement for the issuance or renewal of the person's license. The burden of proof is on the applicant or licensee to demonstrate the qualifications or satisfy the requirements for a license under the psychology practice act;

(8) has failed to cooperate with an investigation of the board as required under subdivision 4; or

(9) has violated the code of ethics adopted by the board.

For the purposes of clause (7), the burden of proof is on the applicant to demonstrate the qualifications or satisfy the requirements for a license under sections 148.88 to 148.98.

has demonstrated an inability to practice psychology with reasonable skill and safety to clients due to any mental or physical illness or condition; or

(10) has engaged in fee splitting. This clause does not apply to the distribution of revenues from a partnership, group practice, nonprofit corporation, or professional corporation to its partners, shareholders, members, or employees if the revenues consist only of fees for services performed by the licensee or under a licensee's administrative authority. Fee splitting includes, but is not limited to:

(i) paying, offering to pay, receiving, or agreeing to receive a commission, rebate, or remuneration, directly or indirectly, primarily for the referral of clients;

(ii) dividing fees with another person or a professional corporation, unless the division is in proportion to the services provided and the responsibility assumed by each professional;

(iii) referring a client to any health care provider as defined in section 144.335 in which the referring licensee has a significant financial interest unless the licensee has disclosed in advance to the client the licensee's own financial interest; and

(iv) dispensing for profit any instrument, test, procedure, or device, unless the licensee has disclosed in advance to the client the licensee's own profit interest.

(b) If grounds for disciplinary action exist under paragraph (a), the board may take one or more of the following actions:

(1) refuse to grant or renew a license;

(2) revoke a license;

(3) suspend a license;

(4) impose limitations or conditions on a licensee's practice of psychology, including, but not limited to, limiting the scope of practice to designated competencies, imposing retraining or rehabilitation requirements, requiring the licensee to practice under supervision, or conditioning continued practice on the demonstration of knowledge or skill by appropriate examination or other review of skill and competence;

(5) censure or reprimand the licensee; or

(6) refuse to permit an applicant to take the licensure examination or refuse to release an applicant's examination grade if the board finds that it is in the public interest.; or

(7) impose a disciplinary fee not exceeding $10,000 for each separate violation. The amount of the disciplinary fee shall be fixed so as (i) to deprive the applicant or licensee of any economic advantage gained by reason of the violation charged and (ii) to reimburse the board for the cost of the investigation and proceeding, including but not limited to, the costs of legal and investigative services provided by the office of the attorney general and the costs of legal services provided by the office of administrative hearings.

(c) In lieu of or in addition to paragraph (b), the board may require, as a condition of continued licensure, termination of suspension, reinstatement of license, examination, or release of examination grades, that the applicant or licensee:

(1) submit to a quality review, as specified by the board, of the applicant's or licensee's ability, skills, or quality of work; and

(2) complete to the satisfaction of the board educational courses specified by the board.

(d) Service of the order is effective if the order is served on the applicant, licensee, or counsel of record personally or by mail to the most recent address provided to the board for the licensee, applicant, or counsel of record. The order shall state the reasons for the entry of the order.

Sec. 18. Minnesota Statutes 1994, section 148.941, subdivision 4, is amended to read:

Subd. 4. [COOPERATION OF APPLICANT APPLICANTS OR LICENSEE FOR LICENSEES WITH INVESTIGATIONS.] (a) An applicant or licensee of the board who is the subject of an investigation or who is questioned in connection with an investigation by or on behalf of the board shall cooperate fully with the investigation. Cooperation includes responding fully and promptly to any question raised by or on behalf of the board

relating to the subject of the investigation, executing all releases requested by the board, providing copies of client records, as reasonably requested by the board to assist it in its investigation, and appearing at conferences or hearings scheduled by the board or its staff. The board shall pay reasonable costs for copies requested.

(b) If the board does not have a written consent from a client permitting access to the client's records, the licensee may delete any data in the record which identifies identify the client before providing it to the board. The board shall maintain any records obtained pursuant to this section as investigative data pursuant to chapter 13.

Sec. 19. Minnesota Statutes 1994, section 148.941, is amended by adding a subdivision to read:

Subd. 5. [EVIDENCE OF PAST SEXUAL CONDUCT.] In a proceeding for the suspension or revocation of a license or other disciplinary action for unethical or unprofessional conduct involving sexual contact with a client or former client, the board or administrative law judge shall not consider evidence of the client's previous sexual conduct nor shall any reference to this conduct be made during the proceedings or in the findings, except by motion of the client, unless the evidence would be admissible under applicable provisions of section 609.347, subdivision 3.

Sec. 20. Minnesota Statutes 1994, section 148.941, is amended by adding a subdivision to read:

Subd. 6. [ACCESS TO COURT RECORDS.] The board shall have access to all court records resulting from criminal investigations and adjudications, civil commitment proceedings and malpractice litigations, including but not limited to reports, evaluations, criminal complaints, and presentence investigations pertaining to the professional conduct of an applicant or a licensee under investigation. For the purpose of this subdivision, a licensee or applicant is deemed to have waived all objections to board access to such records or to the admissibility of such records in any board hearing, committee meeting, or general meeting.

Sec. 21. Minnesota Statutes 1994, section 148.941, is amended by adding a subdivision to read:

Subd. 7. [VIOLATION.] Persons who engage in the unlicensed practice of psychology or who misrepresent themselves as psychologists or psychological practitioners are guilty of a misdemeanor.

Sec. 22. Minnesota Statutes 1994, section 148.96, is amended to read:

148.96 [PRESENTATION TO PUBLIC.]

Subdivision 1. [REQUIREMENTS FOR ADVERTISING PROFESSIONAL IDENTIFICATION.] All psychologists and psychological practitioners licensees, when representing themselves to the public through in activities relating to the practice of psychology, including in written materials or advertising, must use their shall identify the academic degree upon which their licensure is based, as well as their license status in the advertising or written materials level of licensure.

Subd. 2. [DISCLOSURE OF EDUCATION.] At the initial meeting, a psychologist licensee shall display or make available to each new client accurate information about the qualifications and competencies of the psychologist licensee, in accordance with regulations of the board.

Subd. 3. [REQUIREMENTS FOR REPRESENTATIONS TO THE PUBLIC.] Individuals (a) Unless licensed under sections 148.88 to 148.98, except as provided in paragraphs (b) through (d), persons shall not present themselves or permit themselves to be presented to the public as psychologists by:

(1) using any title or description of services incorporating the words "psychology," "psychological," or "psychologist;" or

(2) representing that the person has expert qualifications in an area of psychology unless they are licensed under sections 148.88 to 148.98, except as provided in paragraphs (a) to (c).

(a) (b) Psychologically trained individuals who are employed by an educational institution recognized by a regional accrediting organization, by a federal, state, county, or local government institution, agencies, or research facilities, may represent themselves by the title designated by that organization.

(b) (c) A psychologically trained individual from an institution described in paragraph (a) (b) may offer lecture services and be is exempt from the provisions of this section.

(c) (d) A person who is preparing for the profession practice of psychologist psychology under qualified supervision in recognized training institutions or facilities in accordance with board statutes and rules may be designated as a "psychological intern," "psychological trainee," or by other terms clearly describing the person's training status.

(d) (e) Nothing in this section shall be construed to prohibit the practice of school psychology by a person licensed in accordance with chapter 125.

Subd. 4. [PERSONS OR TECHNIQUES NOT REGULATED BY THIS BOARD.] (a) Nothing in sections 148.88 to 148.98 shall be construed to limit the occupational pursuits consistent with their training and codes of ethics of professionals such as teachers in recognized public and private schools, members of the clergy, physicians, social workers, school psychologists, alcohol or drug counselors, optometrists, or attorneys. However, in such performance any title used shall be in accordance with section 148.96.

(b) Use of psychological techniques by business and industrial organizations for their own personnel purposes or by employment agencies or state vocational rehabilitation agencies for the evaluation of their own clients prior to recommendation for employment is also specifically allowed. However, no representative of an industrial or business firm or corporation may sell, offer, or provide any psychological services as specified in section 148.89 unless such services are performed or supervised by individuals licensed under section 148.88 to 148.98.

Subd. 5. [OTHER PROFESSIONS NOT AUTHORIZED.] Nothing in sections 148.88 to 148.98 shall be construed to authorize a person licensed under sections 148.88 to 148.98 to engage in the practice of any profession regulated under Minnesota law unless the person is duly licensed or registered in that profession.

Sec. 23. Minnesota Statutes 1994, section 148.975, is amended to read:

148.975 [DUTY TO WARN; LIMITATION ON LIABILITY; VIOLENT BEHAVIOR OF PATIENT.]

Subdivision 1. [DEFINITIONS.] (a) The definitions in this subdivision apply to this section and section 148.976.

(b) "Other person" means an immediate family member or someone who personally knows the patient client and has reason to believe the patient client is capable of and will carry out the serious, specific threat of harm to a specific, clearly identified or identifiable victim.

(c) "Practitioner" means a psychologist, school psychologist, nurse, chemical dependency counselor, or social worker who is licensed by the state or who performs psychotherapy within a program or facility licensed by the state or established pursuant to rules adopted under section 245.69, subdivision 2.

(d) "Psychotherapy" means the professional treatment, assessment, or counseling of a mental or emotional illness, symptom, or condition.

(e) "Reasonable efforts" means communicating the serious, specific threat to the potential victim and if unable to make contact with the potential victim, communicating the serious, specific threat to the law enforcement agency closest to the potential victim or the patient client.

Subd. 2. [LIABILITY STANDARD.] No monetary liability and no cause of action may arise against a practitioner for failure to predict, warn of, or take reasonable precautions to provide protection from, a patient's violent behavior, unless the patient or other person has communicated to the practitioner a specific, serious threat of physical violence against a specific, clearly identified or identifiable potential victim.

Subd. 3. [DUTY TO WARN.] The duty to predict, warn of, or take reasonable precautions to provide protection from, violent behavior arises only under the limited circumstances specified in subdivision 2 when a client or other person has communicated to the licensee a specific, serious threat of physical violence against a specific, clearly identified or identifiable potential victim. If a duty to warn arises, the duty is discharged by the practitioner licensee if reasonable efforts, as defined in subdivision 1, paragraph (c), are made to communicate the threat to the potential victim.

Subd. 3. [LIABILITY STANDARD.] If no duty to warn exists under subdivision 2, then no monetary liability and no cause of action may arise against a licensee for failure to predict, warn of, or take reasonable precautions to provide protection from, a client's violent behavior.

Subd. 4. [DISCLOSURE OF CONFIDENCES.] No monetary liability and no cause of action, or disciplinary action by the state board of psychology or board of nursing may arise against a practitioner for disclosing confidences to third parties in a good-faith effort to discharge a duty arising under this section. Good faith compliance with the duty to warn shall not constitute a breach of confidence and shall not result in monetary liability or a cause of action against the licensee.

Subd. 5. [CONTINUITY OF CARE.] Nothing in subdivision 3 2 shall be construed to authorize a practitioner licensee to terminate treatment of a patient client as a direct result of a patient's client's violent behavior or threat of physical violence unless the patient client is referred to another practitioner or appropriate health care facility.

Subd. 6. [EXCEPTION.] This section does not apply to a threat to commit suicide or other threats by a patient client to harm the patient client, or to a threat by a patient client who is adjudicated mentally ill and dangerous under chapter 253B.

Subd. 7. [OPTIONAL DISCLOSURE.] Nothing in section 148.975 shall be construed to prohibit a licensee from disclosing confidences to third parties in a good-faith effort to warn against or take precautions against a client's violent behavior or threat to commit suicide for which a duty to warn does not arise.

Subd. 8. [LIMITATION ON LIABILITY.] No monetary liability and no cause of action, or disciplinary action by the board may arise against a licensee for disclosure of confidences to third parties, for failure to disclose confidences to third parties, or for erroneous disclosure of confidences to third parties in a good-faith effort to warn against or take precautions against a client's violent behavior or threat of suicide for which a duty to warn does not arise.

Sec. 24. Minnesota Statutes 1994, section 148.98, is amended to read:

148.98 [CODE OF ETHICS RULES OF CONDUCT.]

The board shall adopt a code of ethics rules of conduct to govern an applicant's or licensee's practices or behavior. The board shall publish the code rules in the State Register and file the code rules with the secretary of state at least 30 days prior to the effective date of the code rules. The code of ethics rules of conduct shall include, but is not limited to, the principles in paragraphs (a) to through (c).

(a) The psychologist Applicants or licensees shall recognize the boundaries of the psychologist's their competence and the limitation limitations of the psychologist's their techniques and shall not offer services or use techniques that fail to meet usual and customary professional standards.

(b) The psychologist An applicant or licensee who engages in practice shall assist clients in obtaining professional help for all important aspects of their the client's problems that fall outside the boundaries of the psychologist's applicant's or licensee's competence.

(c) A psychologist Applicants or licensees shall not claim either directly or by implication professional qualifications that differ from the psychologist's their actual qualifications, nor shall the psychologist they misrepresent the psychologist's affiliation their affiliations with any institution, organization, or individual, nor lead others to assume an affiliation affiliations that does do not exist.

Sec. 25. Minnesota Statutes 1994, section 253B.02, subdivision 11, is amended to read:

Subd. 11. [LICENSED PSYCHOLOGIST.] "Licensed psychologist" means a person as defined by section 148.91, subdivision 4 licensed by the board of psychology and possessing the qualifications for licensure provided in section 148.907.

Sec. 26. [REPEALER.]

Minnesota Statutes 1994, sections 148.89, subdivisions 6, 7, and 8; 148.91; 148.93; 148.951; and 148.97; and Minnesota Statutes 1995 Supplement, section 148.921, are repealed."

Delete the title and insert:

"A bill for an act relating to occupations and professions; board of psychology; modifying board duties; changing types of licensure; changing licensure provisions; providing for discipline; providing penalties; amending Minnesota Statutes 1994, sections 148.88; 148.881; 148.89, subdivisions 2a, 5, and by adding a subdivision; 148.90, subdivisions 1

and 2; 148.905, subdivision 1; 148.911; 148.925; 148.941, subdivisions 2, 4, and by adding subdivisions; 148.96; 148.975; 148.98; 253B.02, subdivision 11; Minnesota Statutes 1995 Supplement, section 147.09; proposing coding for new law in Minnesota Statutes, chapter 148; repealing Minnesota Statutes 1994, sections 148.89, subdivisions 6, 7, and 8; 148.91; 148.93; 148.951; and 148.97; Minnesota Statutes 1995 Supplement, section 148.921."

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

The report was adopted.

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

H. F. No. 1621, A bill for an act relating to government operations; expanding Minneapolis health insurance subsidy to include eligible Minneapolis teachers who retire before May 1, 1983; amending Minnesota Statutes 1994, section 124.916, subdivision 4.

Reported the same back with the following amendments:

Page 2, after line 15, insert:

"This subdivision does not extend benefits to teachers who retire after June 30, 1983, and does not create a contractual right or claim for altering the benefits in this subdivision. This subdivision does not restrict the school district's right to modify or terminate coverage under this subdivision."

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

The report was adopted.

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

H. F. No. 1704, A bill for an act relating to limited liability companies; making various technical and conforming changes; amending Minnesota Statutes 1994, sections 322B.105; 322B.115, subdivisions 2, 3, and 4; 322B.12, subdivision 1; 322B.125, subdivision 1; 322B.135, subdivision 3; 322B.145; 322B.15, subdivisions 1, 3, and 4; 322B.155; 322B.175; 322B.20, subdivision 2; 322B.313, subdivision 2; 322B.33, subdivisions 4 and 9; 322B.34, subdivisions 1 and 3; 322B.346, subdivision 2; 322B.36, subdivisions 2 and 3; 322B.363, subdivision 1; 322B.373, subdivision 2; 322B.376; 322B.383, subdivision 1; 322B.386, subdivisions 4 and 7; 322B.40, subdivision 6; 322B.42, subdivisions 2 and 4; 322B.54, subdivision 1; 322B.56, subdivision 1; 322B.60, subdivision 2; 322B.643, subdivision 3; 322B.646; 322B.653; 322B.666, subdivision 2; 322B.693, subdivision 1; 322B.699, subdivision 6; 322B.72, subdivisions 2 and 3; 322B.75, subdivision 1; 322B.77, subdivision 1; 322B.803, subdivisions 1 and 2; 322B.813, subdivision 5; 322B.833, subdivisions 1, 2, and 4.

Reported the same back with the following amendments:

Page 6, delete section 5, and insert:

"Sec. 5. Minnesota Statutes 1995 Supplement, section 322B.12, subdivision 1, is amended to read:

Subdivision 1. [REQUIREMENTS AND PROHIBITIONS.] The limited liability company name must:

(1) be in the English language or in any other language expressed in English letters or characters;

(2) contain the words "limited liability company," or must contain the abbreviation "LLC" or, in the case of an organization formed pursuant to section 319A.03, must meet the requirements of section 319A.07 applicable to a limited liability company;

(3) not contain the word corporation or incorporated and must not contain the abbreviation of either or both of these words;

(4) not contain a word or phrase that indicates or implies that it is organized for a purpose other than a legal business purpose; and

(5) be distinguishable upon the records in the office of the secretary of state from the name of a each domestic limited liability company, limited liability partnership, corporation, or and limited partnership, whether profit or nonprofit, or a and each foreign limited liability company, limited liability partnership, corporation, or and limited partnership authorized or registered to do business in this state, whether profit or nonprofit, or a and each name the right to which is, at the time of organization, reserved or as provided for in sections 302A.117, 317A.117, 322A.03, 322B.125, or 333.001 to 333.54, unless there is filed with the articles of organization one of the following:

(i) the written consent of the domestic limited liability company, limited liability partnership, corporation, or limited partnership or the foreign limited liability company, limited liability partnership, corporation, or limited partnership authorized or registered to do business in this state or the holder of a reserved name or a name filed by or registered with the secretary of state under sections 333.001 to 333.54 having a name that is not distinguishable;

(ii) a certified copy of a final decree of a court in this state establishing the prior right of the applicant to the use of the name in this state; or

(iii) the applicant's affidavit that the limited liability company, corporation, or limited partnership with the name that is not distinguishable has been organized, incorporated, or on file in this state for at least three years prior to the affidavit, if it is a domestic limited liability company, corporation, or limited partnership, or has been authorized or registered to do business in this state for at least three years prior to the affidavit, if it is a foreign limited liability company, corporation, or limited partnership, or that the holder of a name filed or registered with the secretary of state under sections 333.001 to 333.54 filed or registered that name at least three years prior to the affidavit, and that the limited liability company, corporation, or limited partnership or holder has not during the three-year period filed any document with the secretary of state; that the applicant has mailed written notice to the limited liability company, corporation, or limited partnership or the holder of a name filed or registered with the secretary of state under sections 333.001 to 333.54 by certified mail, return receipt requested, properly addressed to the registered office of the limited liability company or corporation or in care of the agent of the limited partnership, or the address of the holder of a name filed or registered with the secretary of state under sections 333.001 to 333.54, shown in the records of the secretary of state, stating that the applicant intends to use a name that is not distinguishable and the notice has been returned to the applicant as undeliverable to the addressee limited liability company, corporation, or limited partnership or holder of a name filed or registered with the secretary of state under sections 333.001 to 333.54; that the applicant, after diligent inquiry, has been unable to find any telephone listing for the limited liability company, corporation, or limited partnership with the name that is not distinguishable in the county in which is located the registered office of the limited liability company or, corporation, or limited partnership shown in the records of the secretary of state or has been unable to find any telephone listing for the holder of a name filed or registered with the secretary of state under sections 333.001 to 333.54 in the county in which is located the address of the holder shown in the records of the secretary of state; and that the applicant has no knowledge that the limited liability company, corporation, or limited partnership or holder of a name filed or registered with the secretary of state under sections 333.001 to 333.54 is currently engaged in business in this state."

Page 13, after line 10, insert:

"Sec. 15. Minnesota Statutes 1994, section 322B.30, subdivision 3, is amended to read:

Subd. 3. [GRANT OF A SECURITY INTEREST.] Notwithstanding any law to the contrary, For the purpose of any law relating to security interests, a membership interest, governance rights, and financial rights are each a general intangible, as defined in section 336.9-106, and not a certificated security as defined in section 336.8-102(1)(a) and not an uncertificated security as defined in section 336.8-102(1)(b) and not chattel paper as defined in section 336.9-105(1)(b) and not an instrument as defined in section 336.9-105(1)(i) and not an account as defined in section 336.9-106 to be characterized as provided in section 336.8-103, paragraph (c)."

Page 26, line 27, delete ", paragraph (a),"

Page 38, after line 7, insert:

"Sec. 52. Minnesota Statutes 1995 Supplement, section 336.8-103, is amended to read:

336.8-103 [RULES FOR DETERMINING WHETHER CERTAIN OBLIGATIONS AND INTERESTS ARE SECURITIES OR FINANCIAL ASSETS.]

(a) A share or similar equity interest issued by a corporation, business trust, joint stock company, or similar entity is a security.

(b) An "investment company security" is a security. "Investment company security" means a share or similar equity interest issued by an entity that is registered as an investment company under the federal investment company laws, an interest in a unit investment trust that is so registered, or a face-amount certificate issued by a face-amount certificate company that is so registered. Investment company security does not include an insurance policy or endowment policy or annuity contract issued by an insurance company.

(c) An interest in a partnership or limited liability company is a general intangible and is not a security or a financial asset, except as follows:

(1) An interest in a partnership or limited liability company is not a security unless and is not a general intangible if it is dealt in or traded on a securities exchanges exchange or in a securities markets market, its terms expressly provide that it is a security governed by this article, or it is an investment company security. However,

(2) An interest in a partnership or limited liability company is a financial asset and is not a general intangible if it is held in a securities account.

(d) A writing that is a security certificate is governed by this article and not by article 3, even though it also meets the requirements of that article. However, a negotiable instrument governed by article 3 is a financial asset if it is held in a securities account.

(e) An option or similar obligation issued by a clearing corporation to its participants is not a security, but is a financial asset.

(f) A commodity contract, as defined in section 336.9-115, is not a security or a financial asset.

Sec. 53. Minnesota Statutes 1995 Supplement, section 336.8-603, is amended to read:

336.8-603 [SAVINGS CLAUSE.]

(a) Laws 1995, chapter 194, does not affect an action or proceeding commenced before January 1, 1996.

(b) If a security interest in a security is perfected on January 1, 1996 December 31, 1995, and the action by which the security interest was perfected would suffice to perfect a security interest under Laws 1995, chapter 194 this act, no further action is required to continue perfection. If a security interest in a security is perfected at January 1, 1996 on December 31, 1995, but the action by which the security interest was perfected would not suffice to perfect a security interest under Laws 1995, chapter 194 in the same property under this act, the security interest remains perfected for a period of four months after January 1, 1996 during the period through December 31, 1996, so long as the security interest could have remained perfected under the law in effect on December 31, 1995, if that law continued in effect after December 31, 1995, and continues perfected thereafter if appropriate action to perfect under Laws 1995, chapter 194, this act is taken within that period during the one-year period from January 1, 1996 to December 31, 1996. If a security interest is perfected at January 1, 1996 on December 31, 1995, and the security interest can be perfected by filing under Laws 1995, chapter 194 this act, a financing statement signed by the secured party instead of the debtor may be filed within that period to continue perfection or thereafter to perfect.

Sec. 54. [EFFECTIVE DATE.]

Sections 15, 52, and 53 are effective retroactive to January 1, 1996."

Renumber the sections in sequence

Amend the title as follows:

Page 1, delete line 2 and insert "relating to commerce; making"

Page 1, line 3, before the semicolon, insert "related to limited liability companies" and after the semicolon, insert "regulating investment securities;"

Page 1, line 5, delete everything after the first semicolon

Page 1, line 8, after "2;" insert "322B.30, subdivision 3;"

Page 1, line 22, before the period, insert "; Minnesota Statutes 1995 Supplement, sections 322B.12, subdivision 1; 336.8-103; and 336.8-603"

With the recommendation that when so amended the bill pass.

The report was adopted.

Rice from the Committee on Economic Development, Infrastructure and Regulation Finance to which was referred:

H. F. No. 1901, A bill for an act relating to capital improvements; authorizing bonds and appropriating money to build an addition to the St. Louis County Heritage and Arts Center.

Reported the same back with the following amendments:

Page 1, line 7, delete "$......." and insert "$3,000,000"

Page 1, line 15, delete "$......." and insert "$3,000,000"

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

The report was adopted.

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

H. F. No. 2002, A bill for an act relating to highways; dedicating Dale Wayrynen Memorial Highway in Aitkin county; amending Minnesota Statutes 1994, section 161.14, by adding a subdivision.

Reported the same back with the recommendation that the bill pass and be re-referred to the Committee on Economic Development, Infrastructure and Regulation Finance.

The report was adopted.

Anderson, R., from the Committee on Health and Human Services to which was referred:

H. F. No. 2013, A bill for an act relating to human services; modifying the requirements for screening of certain medical assistance recipients; amending Minnesota Statutes 1995 Supplement, section 256B.055, subdivision 12.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 1995 Supplement, 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. Eligibility under this section must be determined annually. 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 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) 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.

(f) If a child meets the conditions in paragraph (b), (c), or (d), 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), 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.

(g) 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."

With the recommendation that when so amended the bill pass.

The report was adopted.

Wenzel from the Committee on Agriculture to which was referred:

H. F. No. 2031, A bill for an act relating to agriculture; exempting certain food sellers from the food licensing law; amending Minnesota Statutes 1994, section 28A.15, by adding a subdivision.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 1994, section 28A.15, is amended by adding a subdivision to read:

Subd. 9. An individual who prepares and sells food that is not potentially hazardous food as defined in Minnesota Rules, part 1547.0002, subpart 16, at a community event or farmer's market on ten or fewer days in a calendar year and with gross receipts of $1,000 or less in a calendar year. If food is prepared in a kitchen that is not licensed or inspected, the seller must post a visible sign or placard stating: "Homemade and not inspected." This exclusion applies only when the places of preparation and sale are in an unincorporated area or statutory or home rule charter city or town with a population of 15,000 or less and are outside the metropolitan area as defined in section 473.121, subdivision 2."

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

The report was adopted.

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

H. F. No. 2068, A bill for an act relating to highways; designating the POW/MIA Memorial Highway.

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

The report was adopted.

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

H. F. No. 2070, A bill for an act relating to transportation; changing formula for distributing county state-aid highway funds; increasing rate of excise tax on gasoline and special fuel; allocating 25 percent of receipts from the motor vehicle sales tax to the transit assistance fund; making technical changes; amending Minnesota Statutes 1994, sections 160.02, by adding subdivisions; 162.02, subdivisions 7, 8, and by adding a subdivision; 162.07, subdivisions 1, 5, and 6; and 297B.09, subdivision 1; Minnesota Statutes 1995 Supplement, sections 296.02, subdivision 1b; and 296.025, subdivision 1b; Laws 1995, chapter 265, article 2, section 2, subdivision 3; and section 3.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 1994, section 161.082, subdivision 2a, is amended to read:

Subd. 2a. [TOWN BRIDGES AND CULVERTS; TOWN ROAD ACCOUNT.] (a) An amount equal to 25 percent of the county turnback account must be expended on town road bridge structures that are ten feet or more in length and on town road culverts that replace existing town road bridges. In addition, if the present bridge structure is less than ten feet in length but a hydrological survey indicates that the replacement bridge structure or culvert must be ten feet or more in length, then the bridge or culvert is eligible for replacement funds. In addition, if a culvert that replaces a deficient bridge is in a county comprehensive water plan approved by the board of water and soil resources and the department of natural resources, the costs of the culvert and roadway grading other than surfacing are eligible for replacement funds up to the cost of constructing a replacement bridge. The expenditures on bridge structures and culverts may be on a matching basis, and if on a matching basis, not more than 90 percent of the cost of a bridge structure or culvert may be paid from the county turnback account. When bridge approach construction work exceeds $10,000 in costs, or when the county engineer determines that the cost of the replacement culverts alone will not exceed $20,000, the town shall be eligible for financial assistance from the town bridge account. Financial assistance shall be requested by resolution of the county board and shall be limited to:

(1) 100 percent of the cost of the bridge approach work that is in excess of $10,000; or

(2) 100 percent of the cost of the replacement culverts when the cost does not exceed $20,000 and the town board agrees to be responsible for all the other costs, which may include costs for structural removal, installation, and permitting. The replacement structure design and costs shall be approved and certified by the county engineer, but need not be subsequently approved by the department of transportation.

(b) An amount equal to 47.5 percent of the county turnback account must be set aside as a town road account and distributed as provided in section 162.081.

(c) An amount equal to 1.15 percent of the county turnback account must be set aside as a metropolitan town road account and distributed as provided in section 162.082.

Sec. 2. Minnesota Statutes 1994, section 162.02, subdivision 7, is amended to read:

Subd. 7. [ESTABLISHMENT IN NEW LOCATION OR OVER ESTABLISHED ROADS.] The county board of any county may establish and locate any county state-aid highway on new location where there is no existing road, or it may establish and locate the highway upon or over any established road or street or a specified portion thereof within its limits; provided, that. Except as provided in subdivision 8a, no county state-aid highway shall be established or located within the corporate limits of any city without the approval of the governing body of the city, except that when a county state-aid highway is relocated the approval of the plans by the governing body shall be deemed to be a transfer of the previous location of the highway to the jurisdiction of the city. The approval shall be in the manner and form required by the commissioner.

Sec. 3. Minnesota Statutes 1994, section 162.02, subdivision 8, is amended to read:

Subd. 8. [APPROVAL BY CITY.] Except as provided in subdivision 8a, no portion of the county state-aid highway system lying within the corporate limits of any city shall be constructed, reconstructed, or improved nor the grade thereof changed without the prior approval of the plans by the governing body of such city and the approval shall be in the manner and form required by the commissioner.

Sec. 4. Minnesota Statutes 1994, section 162.02, is amended by adding a subdivision to read:

Subd. 8a. [DISPUTE RESOLUTION BOARD.] If a city has failed to approve establishment, construction, reconstruction, or improvement of a county state-aid highway within its corporate limits under subdivision 7 or 8, the county board may, by resolution, request the commissioner to appoint a dispute resolution board consisting of one county commissioner, one county engineer, one city council member or city mayor, one city engineer, and one representative of the department of transportation. The board shall review the proposed change and make a recommendation to the commissioner. Notwithstanding any other law, the commissioner may approve the establishment, construction, reconstruction, or improvement of a county state-aid highway recommended by the board.

Sec. 5. Minnesota Statutes 1994, section 162.07, subdivision 1, is amended to read:

Subdivision 1. [FORMULA.] After deducting for administrative costs and for the disaster account and research account and state park roads as heretofore provided, the remainder of the total sum provided for in section 162.06, subdivision 1, shall be identified as the apportionment sum and shall be apportioned by the commissioner to the several counties on the basis of the needs of the counties as determined in accordance with the following formula:

(1) An amount equal to ten percent of the apportionment sum shall be apportioned equally among the 87 counties.

(2) An amount equal to ten percent of the apportionment sum shall be apportioned among the several counties so that each county shall receive of such amount the percentage that its motor vehicle registration for the calendar year preceding the one last past, determined by residence of registrants, bears to the total statewide motor vehicle registration.

(3) An amount equal to 30 percent of the apportionment sum shall be apportioned among the several counties so that each county shall receive of such amount the percentage that its total miles lane-miles of approved county state-aid highways bears to the total miles lane-miles of approved statewide county state-aid highways.

(4) An amount equal to 50 percent of the apportionment sum shall be apportioned among the several counties so that each county shall receive of such amount the percentage that its money needs bears to the sum of the money needs of all of the individual counties; provided, that the percentage of such amount that each county is to receive shall be adjusted so that each county shall receive in 1958 a total apportionment at least ten percent greater than its total 1956 apportionments from the state road and bridge fund; and provided further that those counties whose money needs are thus adjusted shall never receive a percentage of the apportionment sum less than the percentage that such county received in 1958.

Sec. 6. Minnesota Statutes 1994, section 162.07, subdivision 5, is amended to read:

Subd. 5. [SCREENING BOARD.] On or before September 1 of each year the county engineer of each county shall forward to the commissioner, on forms prepared by the commissioner, all information relating to the mileage, in lane-miles, of the county state-aid highway system in the county, and the money needs of the county that the commissioner deems necessary in order to apportion the county state-aid highway fund in accordance with the formula heretofore set forth. Upon receipt of the information the commissioner shall appoint a board consisting of nine the following county engineers. The board shall be so selected that each county engineer appointed shall be from a different state highway construction district:

(1) two county engineers from the metropolitan highway construction district;

(2) one county engineer from each nonmetropolitan highway district; and

(3) one additional county engineer from each county with a population of 175,000 or more.

No county engineer shall be appointed under clause (1) or (2) so as to serve consecutively for more than two four years. The board shall investigate and review the information submitted by each county and shall on or before the first day of November of each year submit its findings and recommendations in writing as to each county's mileage lane-mileage and money needs to the commissioner on a form prepared by the commissioner. Final determination of the mileage lane-mileage of each system and the money needs of each county shall be made by the commissioner.

Sec. 7. Minnesota Statutes 1994, section 162.07, subdivision 6, is amended to read:

Subd. 6. [ESTIMATES TO BE MADE IF INFORMATION NOT PROVIDED.] In the event that any county shall fail to submit the information provided for herein, the commissioner shall estimate the mileage lane-mileage and the money needs of the county. The estimate shall be used in determining the apportionment formula. The commissioner may withhold payment of the amount apportioned to the county until the information is submitted.

Sec. 8. [162.082] [METROPOLITAN TOWN ROAD ACCOUNT.]

Subdivision 1. [DEFINITION.] For purposes of this section "metropolitan town" means any town within the seven-county metropolitan area as defined in section 473.121, subdivision 2, that has a population of 7,500 or more according to the most recent federal decennial census.

Subd. 2. [ACCOUNT CREATED.] A metropolitan town road account is created in the county state-aid highway fund, consisting of amounts transferred from the county turnback account established under section 161.082.

Subd. 3. [APPORTIONMENT.] Funds in the metropolitan town road account must be apportioned to each county in the seven-county metropolitan area so that each such county receives the percentage that the total miles of town road in metropolitan towns in the county bears to the total miles of town roads in metropolitan towns in the metropolitan area.

Subd. 4. [DISTRIBUTION TO COUNTIES.] Upon determining the amount of money to be apportioned to each county under section 162.07, the commissioner shall also determine the amounts in the metropolitan town road account to be apportioned under subdivision 3. The apportionment must be included in the statement sent to the commissioner of finance and the county auditor and county engineer of each county under section 162.08, subdivision 2. The amounts so apportioned and allocated to each county from the metropolitan town road account must be paid by the state to the treasurer of each county at the same time that payments are made under section 162.08, subdivision 2, provided that the amounts must be paid in a sufficient time to allow the county to distribute the amounts to each metropolitan town by March 1, annually.

Subd. 5. [DISTRIBUTION TO METROPOLITAN TOWNS.] The county treasurer of each county receiving money from the metropolitan town road account must, by March 1 of each year or within 30 days of receipt of payment from the commissioner, pay to each metropolitan town in the county a percentage of the money it receives that year from the metropolitan town road account equal to the percentage that that metropolitan town's roads bear to the total mileage of metropolitan town roads in the county.

Subd. 6. [RESTRICTION ON APPORTIONMENT.] The commissioner shall not distribute any funds under this section in any calendar year if the commissioner determines that such distribution would reduce the apportionment of money from the county state-aid fund to any county in that calendar year below the apportionment that county had received in the previous calendar year. Upon such a determination the percentage of the county turnback account to be set aside under section 161.082, subdivision 2a, paragraph (c), for that calendar year shall not be set aside but reverts to the county turnback account.

Sec. 9. Minnesota Statutes 1995 Supplement, section 296.02, subdivision 1b, is amended to read:

Subd. 1b. [RATES IMPOSED.] The gasoline excise tax is imposed at the following rates:

(a) From June 1, 1996, to December 31, 1996:

(1) E85 is taxed at the rate of 14.2 16.3 cents per gallon;

(2) M85 is taxed at the rate of 11.4 13.1 cents per gallon; and

(3) all other gasoline is taxed at the rate of 20 23 cents per gallon.

(b) On and after January 1, 1997:

(1) E85 is taxed at the rate of 17.7 cents per gallon;

(2) M85 is taxed at the rate of 14.3 cents per gallon; and

(3) all other gasoline is taxed at the rate of 25 cents per gallon.

Sec. 10. Minnesota Statutes 1994, section 296.02, is amended by adding a subdivision to read:

Subd. 1c. [ANNUAL GASOLINE TAX RATE ADJUSTMENT.] (a) Beginning in 1997 and annually thereafter, before April 1 of each year the commissioner of revenue shall adjust the rate of the gasoline excise tax. The new rate per gallon must be calculated by multiplying the rate in effect at the time of the calculation by an amount obtained under paragraph (b). The new rate must be rounded to the nearest 0.1 cent and is effective on April 1 of each year.

(b) Divide the annual average United States Consumer Price Index for all urban consumers, United States city average, as determined by the United States Department of Labor for the previous year by that annual average for the year before the previous year.

Sec. 11. Minnesota Statutes 1995 Supplement, section 296.025, subdivision 1b, is amended to read:

Subd. 1b. [TAX RATES.] The special fuel excise tax is imposed at the following rates:

(a) From June 1, 1996, to December 31, 1996:

(1) Liquefied petroleum gas or propane is taxed at the rate of 15 17.3 cents per gallon.

(2) Liquefied natural gas is taxed at the rate of 12 13.8 cents per gallon.

(3) Compressed natural gas is taxed at the rate of $1.739 $2 per thousand cubic feet; or 20 23 cents per gasoline equivalent, as defined by the National Conference on Weights and Measures, which is 5.66 pounds of natural gas.

(4) All other special fuel is taxed at the same rate as the gasoline excise tax.

(b) On and after January 1, 1997:

(1) Liquefied petroleum gas or propane is taxed at the rate of 18.7 cents per gallon.

(2) Liquefied natural gas is taxed at the rate of 15 cents per gallon.

(3) Compressed natural gas is taxed at the rate of $2.174 per thousand cubic feet; or 25 cents per gasoline equivalent, as defined by the National Conference on Weights and Measures, which is 5.66 pounds of natural gas.

(4) All other special fuel is taxed at the same rate as the gasoline excise tax.

Sec. 12. [CONSTITUTIONAL AMENDMENT PROPOSED.]

An amendment is proposed to the Minnesota Constitution, article XIV. If the amendment is adopted article XIV will be amended by adding a section to read:

Sec. 12. The legislature may levy a sales or excise tax on the purchase price of new and used motor vehicles. Not less than ... percent of the net proceeds from this tax must be dedicated exclusively to assisting public transit in the state.

Sec. 13. [SUBMISSION TO VOTERS.]

The constitutional amendment proposed in section 12 must be submitted to the people at the 1996 general election. The question submitted must be:

"Shall the Minnesota Constitution be amended to require that at least ... percent of the net proceeds from a sales or excise tax levied on the purchase price of new and used motor vehicles be dedicated exclusively to assisting public transit in the state?

Yes .......

No ........"

Sec. 14. [COUNTY STATE-AID FUND; MINIMUM APPORTIONMENTS.]

Notwithstanding any other law, in calendar year 1997 and subsequent years, money apportioned from the county state-aid highway fund to any county under Minnesota Statutes, section 162.07, may not be less than the amount apportioned to that county under that section in calendar year 1996.

Sec. 15. [EFFECTIVE DATE.]

(a) Except as provided in paragraph (b), sections 9 and 11 are effective June 1, 1996.

(b) If the constitutional amendment proposed in section 12 is not approved at the 1996 general election:

(1) sections 9 and 11 are repealed effective January 1, 1997; and

(2) notwithstanding Minnesota Statutes, section 645.34, the tax rates amended in those sections revert on January 1, 1997, to the rates that were in effect on May 31, 1996."

Delete the title and insert:

"A bill for an act relating to transportation; changing the formula for distribution of the county state-aid highway fund; establishing metropolitan town road account; changing the composition of the county state-aid screening board; providing for resolution of disputes between cities and counties over county state-aid highway projects in cities; increasing taxes on motor fuel; authorizing annual adjustment in motor fuel tax rate; proposing an amendment to Minnesota Constitution, article XIV, to require a percentage of revenues from the motor vehicle sales tax to be dedicated exclusively to transit assistance; amending Minnesota Statutes 1994, sections 161.082, subdivision 2a; 162.02, subdivisions 7, 8, and by adding a subdivision; 162.07, subdivisions 1, 5, and 6; and 296.02, by adding a subdivision; Minnesota Statutes 1995 Supplement, sections 296.02, subdivision 1b; and 296.025, subdivision 1b; proposing coding for new law in Minnesota Statutes, chapter 162."

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

The report was adopted.

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

H. F. No. 2092, A bill for an act relating to highways; designating a portion of marked trunk highway No. 52 in Fillmore county as the "Amish Buggy Byway"; amending Minnesota Statutes 1994, section 161.14, by adding a subdivision.

Reported the same back with the recommendation that the bill pass and be re-referred to the Committee on Economic Development, Infrastructure and Regulation Finance.

The report was adopted.

Anderson, R., from the Committee on Health and Human Services to which was referred:

H. F. No. 2124, A bill for an act relating to human services; adding provisions for child support enforcement; amending Minnesota Statutes 1994, sections 518.5511, subdivision 8; and 518.611, by adding a subdivision; Minnesota Statutes 1995 Supplement, sections 256.998, subdivisions 1 and 9; and 257.62, subdivision 1.

Reported the same back with the following amendments:

Page 1, line 13, after "commissioner" insert "of human services" and delete "January 1" and insert "December 15"

Page 1, line 14, delete "1997" and insert "1996"

Page 2, line 6, after "(c)" insert "If federal welfare reform legislation is enacted,"

Page 2, line 33, after "under" insert "section 3121(d) of" and strike the period and insert "except that an" and strike "persons" and insert "a person"

Page 3, line 6, strike "furloughed,"

Page 3, line 7, strike "granted a leave without pay,"

Page 3, line 9, delete "furlough," and delete "leave,"

Page 3, line 27, delete "payment or"

Page 3, line 29, delete "are" and insert "need" and delete " required to"

Page 4, after line 23, insert:

"Sec. 4. Minnesota Statutes 1995 Supplement, section 518.5511, subdivision 4, is amended to read:

Subd. 4. [CONTESTED ADMINISTRATIVE PROCEEDING.] (a) All counties shall participate in the contested administrative process established in this section as designated in a statewide implementation plan to be set forth by the commissioner of human services. No county shall be required to participate in the contested administrative process until after the county has been trained. The contested administrative process shall be in operation in all counties no later than July 1, 1998, with the exception of Hennepin county which shall have a pilot program in operation begin implementation of the contested administrative process no later than July 1, 1996.

The Hennepin county pilot program shall be jointly planned, implemented, and evaluated by the department of human services, the office of administrative hearings, the fourth judicial district court, and Hennepin county. The pilot program shall provide that one-half of the case load use the contested administrative process. The pilot program shall include an evaluation which shall be conducted after one year of program operation. A preliminary evaluation report shall be submitted by the commissioner to the legislature by March 1, 1997. A final evaluation report shall be submitted by the commissioner to the legislature by January 15, 1998. The pilot program shall continue pending final decision by the legislature, or until the commissioner determines that the pilot program shall discontinue and that Hennepin county shall not participate in the contested administrative process.

In counties designated by the commissioner, contested hearings required under this section shall be scheduled before administrative law judges, and shall be conducted in accordance with the provisions under this section. In counties not designated by the commissioner, contested hearings shall be conducted in district court in accordance with the rules of civil procedure and the rules of family court.

(b) An administrative law judge may conduct hearings and approve a stipulation reached on a contempt motion brought by the public authority. Any stipulation that involves a finding of contempt and a jail sentence, whether stayed or imposed, shall require the review and signature of a district court judge.

(c) A party, witness, or attorney may appear or testify by telephone, audiovisual means, or other electronic means, at the discretion of the administrative law judge.

(d) Before implementing the process in a county, the chief administrative law judge, the commissioner of human services, the director of the county human services agency, the county attorney, the county court administrator, and the county sheriff shall jointly establish procedures, and the county shall provide hearing facilities for implementing this process in the county. A contested administrative hearing shall be conducted in a courtroom, if one is available, or a conference or meeting room with at least two exits and of sufficient size to permit adequate physical separation of the parties. The court administrator shall, to the extent practical, provide administrative support for the contested hearing. Security personnel shall either be present during the administrative hearings, or be available to respond to a request for emergency assistance.

(e) The contested administrative hearings shall be conducted under the rules of the office of administrative hearings, Minnesota Rules, parts 1400.5275, 1400.5500, 1400.6000 to 1400.6400, 1400.6600 to 1400.7000, 1400.7100 to 1400.7500, 1400.7700, 1400.7800, and 1400.8100, as adopted by the chief administrative law judge. For matters not initiated under subdivision 2, documents from the moving party shall be served and filed at least 21 days prior to the hearing and the opposing party shall serve and file documents raising new issues at least ten days prior to the hearing. In all contested administrative proceedings, the administrative law judge may limit the extent and timing of discovery. Except as provided under this section, other aspects of the case, including, but not limited to, discovery, shall be conducted under the rules of family court, the rules of civil procedure, and chapter 518.

(f) Pursuant to a contested administrative hearing, the administrative law judge shall make findings of fact, conclusions, and a final decision and issue an order. Orders issued by an administrative law judge may be enforceable by the contempt powers of the district courts.

(g) At the time the matter is scheduled for a contested hearing, the public authority shall file in the district court copies of all relevant documents sent to or received from the parties, in addition to the documents filed under subdivision 2, paragraph (e). For matters scheduled for a contested hearing which were not initiated under subdivision 2, the public authority shall obtain any income information available to the public authority through the department of economic security and serve this information on all parties and file the information with the court at least five days prior to the hearing.

(h) The decision and order of the administrative law judge is appealable to the court of appeals in the same manner as a decision of the district court."

Page 5, delete lines 11 to 16 and insert:

"Sec. 7. Minnesota Statutes 1994, section 548.091, is amended by adding a subdivision to read:

Subd. 5. [LIEN PRIORITY.] (a) The public authority and the obligee in a child support order may agree in writing to subordinate the lien of a child support judgment to a mortgage if the real property that is the subject of the mortgage is, as of the date of the subordination document, the home of one or more of the children who are the subjects of the child support order.

(b) The subordination document must contain a legal description of the property, refer to the mortgage by document or filing number, refer to the judgment, be signed by the county and the obligee, and be dated. The signatures must be acknowledged before a notary public. The document must comply with section 507.091, and be in every other respect recordable.

(c) The subordination is effective when recorded in the office of the county recorder, or filed in the office of the registrar of titles, of the county in which the real property is located. The effectiveness of the subordination, with respect to parties other than the county, the obligee, and the obligor, is not affected by any determination that the conditions of paragraph (a) were not in fact met.

Sec. 8. [EFFECTIVE DATE.]

Section 7 is effective the day following final enactment."

Renumber the sections in sequence

Amend the title as follows:

Page 1, line 4, delete "and"

Page 1, line 5, after the semicolon, insert "and 548.091, by adding a subdivision;"

Page 1, line 7, delete "and" and before the period, insert "; and 518.5511, subdivision 4"

With the recommendation that when so amended the bill pass.

The report was adopted.

Wenzel from the Committee on Agriculture to which was referred:

H. F. No. 2126, A bill for an act relating to agriculture; changing provisions of the consolidated food licensing law; amending Minnesota Statutes 1994, sections 28A.04, subdivision 1; 28A.09, subdivision 1; 28A.15, subdivisions 7 and 8; 28A.16; and 28A.17; Minnesota Statutes 1995 Supplement, sections 28A.03; and 28A.08, subdivision 1.

Reported the same back with the recommendation that the bill pass and be re-referred to the Committee on Environment and Natural Resources Finance.

The report was adopted.

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

H. F. No. 2152, A bill for an act relating to transportation; abolishing specific highway service sign program and directing commissioner of transportation to adopt rules to administer highway service signs; eliminating limitation on funding advances for completing county state-aid highways in cities; clarifying when left and right turns are allowed at intersections with red arrow traffic signals; providing for turnbacks to local governments of legislative routes Nos. 232, 261, 300, 326, and 385; amending Minnesota Statutes 1994, sections 162.08, subdivision 5; 169.06, subdivision 5; and 169.59, subdivision 4; proposing coding for new law in Minnesota Statutes, chapter 160; repealing Minnesota Statutes 1994, sections 160.292, subdivisions 1, 2, 3, 4, 5, 8, 9, and 10; 160.293; 160.294; 160.295; 160.296; and 160.297; Minnesota Statutes 1995 Supplement, section 160.292, subdivisions 6, 7, and 7a.

Reported the same back with the following amendments:

Page 1, line 23, delete "adopt rules to"

Page 1, line 26, delete ", adopted by rule,"

Page 1, line 27, after the period, insert "The program is exempt from the rulemaking provisions of chapter 14."

Pages 2 to 5, delete section 3 and insert:

"Sec. 3. Minnesota Statutes 1994, section 169.18, subdivision 8, is amended to read:

Subd. 8. [FOLLOWING VEHICLE TOO CLOSELY.] (a) The driver of a motor vehicle shall not follow another vehicle more closely than is reasonable and prudent, having due regard for the speed of such vehicles and the traffic upon and the conditions of the highway.

(b) The driver of any motor vehicle drawing another vehicle, or the driver of any motor truck or bus, when traveling upon a roadway outside of a business or residence district, shall not follow within 500 feet of another vehicle. The provisions of this clause shall not be construed to prevent overtaking and passing nor shall the same apply upon any lane specially designated for use by motor trucks.

(c) The driver of a motor vehicle shall not follow within 500 feet of an ambulance, as defined in section 144.801 when the ambulance is traveling in response to a medical emergency."

Page 6, line 16, after "transportation" insert ", Anoka county,"

Page 6, line 17, after "commissioner" insert ", the chair of the Anoka county board,"

Amend the title as follows:

Page 1, line 7, delete everything after the semicolon

Page 1, delete line 8

Page 1, line 9, delete everything before the semicolon and insert "prohibiting motor vehicle from closely following ambulance responding to emergency"

Page 1, line 12, delete "169.06, subdivision 5;" and insert "169.18, subdivision 8;"

With the recommendation that when so amended the bill pass.

The report was adopted.

Skoglund from the Committee on Judiciary to which was referred:

H. F. No. 2153, A bill for an act relating to education; providing for the transmittal of education records from nonpublic schools; amending Minnesota Statutes 1995 Supplement, section 120.101, subdivision 5c.

Reported the same back with the following amendments:

Page 1, line 11, after "request" insert "by a parent"

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

The report was adopted.

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

H. F. No. 2164, A bill for an act relating to special transportation services; requiring the metropolitan council and the commissioner of human services to establish a task force on service coordination.

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

The report was adopted.

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

H. F. No. 2188, A bill for an act relating to motor carriers; modifying and reorganizing provisions relating to allowable truck lengths and combinations; amending Minnesota Statutes 1994, sections 168.011, subdivisions 13 and 14; 168.013, subdivision 1e; 169.81, subdivision 2, and by adding a subdivision; and 169.86, subdivision 1; Minnesota Statutes 1995 Supplement, section 169.81, subdivision 3.

Reported the same back with the following amendments:

Page 6, line 13, after "may" insert "only"

Page 6, line 24, strike "as provided" and insert "on the highways identified under provisions"

Page 6, line 25, strike ", including truck-tractor and"

Page 6, line 26, strike "semitrailer,"

Page 8, lines 14, 25, and 33, strike "65" and insert "75"

Page 8, lines 16 and 17, strike "with an overall length exceeding 55 feet and"

Page 8, lines 20 and 21, strike "with an overall length exceeding 55 feet and"

Page 8, line 26, strike "except as restricted by applicable federal law"

With the recommendation that when so amended the bill pass.

The report was adopted.

Skoglund from the Committee on Judiciary to which was referred:

H. F. No. 2204, A bill for an act relating to civil actions; creating a nuisance action for prostitution; proposing coding for new law in Minnesota Statutes, chapter 617.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. [617.88] [DEFINITION.]

(a) The terms used in section 617.89 have the meanings given in this section or section 617.80.

(b) "Nuisance" means:

(1) an act of prostitution;

(2) an act of gambling;

(3) keeping or permitting a disorderly house;

(4) unlawful sale or possession of controlled substances;

(5) unlicensed sale of alcoholic beverages under section 340A.401 or unlawful sale or gift of alcoholic beverages under section 340A.503, subdivision 2, clause (1); or

(7) unlawful use or possession of a firearm in violation of section 609.66, subdivision 1a; 609.67; or 624.713.

(c) "Neighborhood organization" means a nonprofit corporation incorporated under chapter 317A that satisfies clauses (1) and (2).

The corporation shall:

(1) designate in its articles of incorporation or bylaws a specific geographic community to which its activities are limited; and

(2) be formed for the purposes of promoting community safety, crime prevention, and housing quality in a nondiscriminatory manner.

Sec. 2. [617.89] [NUISANCE ACTION.]

Subdivision 1. [ACTION ESTABLISHED.] A nuisance action may be brought under this section for a nuisance as defined in section 617.88. The action may be brought by a resident of a jurisdiction or a neighborhood organization in a jurisdiction where a nuisance has occurred. Upon the request of a resident or neighborhood organization, the prosecuting attorney for the jurisdiction may bring an action under this section. The complaint shall be filed with the court and served on the respondent in the manner provided by the rules of civil procedures.

Subd. 2. [PROOF.] A nuisance may be proved by evidence of:

(1) two or more separate behavioral incidents within the previous 12 months that would constitute a nuisance as defined in section 617.88; or

(2) two or more convictions within the previous 12 months for violating any of the offenses described in section 617.80 or 617.88.

Proof of nuisance under clause (1) exists if each of the elements of the conduct constituting the nuisance is established by clear and convincing evidence.

Subd. 3. [REMEDIES.] If, upon a hearing, the court finds proof of a nuisance under this section, it shall permanently enjoin the respondent from engaging in a nuisance within the jurisdiction. The court shall award a prevailing individual petitioner or neighborhood organization damages in the amount of actual damages suffered or

exemplary damages of $500 per incident, whichever is greater. If the action is brought by the prosecuting attorney, the court shall award damages of $500 to be paid to a crime victim witness fund serving the jurisdiction or to a neighborhood organization in the jurisdiction. In all cases, the court shall award a prevailing petitioner reasonable attorney's fees and costs.

Subd. 4. [IMMUNITY.] A petitioner who acts in good faith in bringing an action under this section or an attorney who acts in good faith representing a petitioner under this section is immune from any liability to the respondent, notwithstanding that the petitioner does not prevail in the action."

Amend the title as follows:

Page 1, line 3, delete "for prostitution" and insert "by individuals and neighborhood organizations"

With the recommendation that when so amended the bill pass.

The report was adopted.

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

H. F. No. 2206, A bill for an act relating to education; removing mandates from higher education; requiring increased accountability and performance for funding; amending Minnesota Statutes 1994, sections 15.43, subdivisions 2 and 3; 16B.01, subdivision 2; 16B.06, subdivision 2; 16B.21, subdivisions 1 and 3; 16B.33, subdivisions 1, 3, and 4; 16B.35, by adding a subdivision; 16B.41, subdivision 2; 16B.49; 16B.531; 16B.54, subdivision 1; 16B.85, subdivision 2; 43A.05, subdivision 4; 43A.10, subdivision 3; 123.70, subdivision 10; 135A.033; 135A.14, as amended; 137.37; 169.448, subdivision 2; 201.1611; and 248.07, subdivision 7; Minnesota Statutes 1995 Supplement, sections 16B.17, subdivision 6; 16B.465, subdivision 4; 43A.06, subdivision 1; 135A.181; 136A.101, subdivision 10; 136F.06, subdivisions 1 and 2; 136F.12; 136F.16, subdivision 3; 136F.18; 136F.30; 136F.36, subdivision 2; 136F.44; 136F.50; 136F.53, subdivisions 1 and 3; 136F.58; 136F.71, by adding a subdivision; 136F.72, subdivision 3; and 136F.80, subdivision 2; Laws 1995, chapter 212, article 2, sections 15; and 20, subdivisions 1 and 2; proposing coding for new law in Minnesota Statutes, chapters 135A; 136A; and 136F; repealing Minnesota Statutes 1994, sections 137.03; 137.05; 137.06; 137.07; 137.08; 137.11; 137.14; 137.15; 137.33; and 137.36; Minnesota Statutes 1995 Supplement, sections 16A.125, subdivision 6a; 135A.08; 136F.25; and 136F.59, subdivision 1; Laws 1995, chapter 212, article 1, section 6, subdivision 1.

Reported the same back with the following amendments:

Page 33, after line 16, insert:

"Minnesota state college and university system and campus officials may allow other state and local governmental agencies access to property and equipment to be used for educational purposes."

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.

Anderson, R., from the Committee on Health and Human Services to which was referred:

H. F. No. 2222, A bill for an act relating to state government; excepting certain contracts from certain contract management requirements; abolishing certain reports and providing for a comprehensive annual report by the department of economic security; providing a mission statement for the department of economic security; amending Minnesota Statutes 1994, sections 268.0122, subdivisions 3 and 4; and 268.65, subdivision 1; Minnesota Statutes 1995 Supplement, sections 16B.06, subdivision 2a; 268.0122, subdivision 6; 268.0124; 268.363; and 268.98, subdivision 2; proposing coding for new law in Minnesota Statutes, chapter 268; repealing Minnesota Statutes 1994, sections 268.367; 268.37, subdivision 5; and 268.38, subdivision 11; Minnesota Statutes 1995 Supplement, section 268.92, subdivision 10.

Reported the same back with the following amendments:

Page 1, line 29, strike "commissioner"

Page 2, line 8, strike "commissioner"

With the recommendation that when so amended the bill pass.

The report was adopted.

Anderson, R., from the Committee on Health and Human Services to which was referred:

H. F. No. 2248, A bill for an act relating to human services; adding provisions for licensing programs; amending Minnesota Statutes 1994, sections 245A.04, subdivisions 3c, 4, 5, and 6; 245A.06 as amended; 245A.07, subdivision 1; 245A.08, subdivisions 1 and 2; 245A.09, by adding a subdivision; 245A.14, by adding a subdivision; and 245A.16, subdivision 2; Minnesota Statutes 1995 Supplement, sections 245A.02, subdivision 16; 245A.04, subdivisions 3, 3b, and 7; 245A.07, subdivision 3; 245A.09, subdivision 7; and 245A.11, subdivision 2; proposing coding for new law in Minnesota Statutes, chapter 245A; repealing Minnesota Statutes 1994, section 253B.22; Minnesota Rules, parts 9503.0170, subpart 7; 9555.8000; 9555.8100; 9555.8200; 9555.8300; 9555.8400; and 9555.8500.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 1995 Supplement, section 245A.02, subdivision 16, is amended to read:

Subd. 16. [SCHOOL AGE CHILD.] "School age child" means a child who is at least of sufficient age to have attended the first day of kindergarten, or is eligible to enter kindergarten within the next four months, but is younger than 13 years of age. The definition of school age child applies only to child care centers licensed under Minnesota Rules, parts 9503.0005 to 9503.0170.

Sec. 2. Minnesota Statutes 1995 Supplement, section 245A.04, subdivision 3, is amended to read:

Subd. 3. [STUDY OF THE APPLICANT.] (a) Before the commissioner issues a license, the commissioner shall conduct a study of the individuals specified in clauses (1) to (5) according to rules of the commissioner. The applicant, license holder, the bureau of criminal apprehension, the commissioner of health and county agencies, after written notice to the individual who is the subject of the study, shall help with the study by giving the commissioner criminal conviction data and reports about abuse or neglect maltreatment of adults in licensed programs substantiated under section 626.557 and the maltreatment of minors in licensed programs substantiated under section 626.556. The individuals to be studied shall include:

(1) the applicant;

(2) persons over the age of 13 living in the household where the licensed program will be provided;

(3) current employees or contractors of the applicant who will have direct contact with persons served by the program;

(4) volunteers who have direct contact with persons served by the program to provide program services, if the contact is not directly supervised by the individuals listed in clause (1) or (3); and

(5) any person who, as an individual or as a member of an organization, exclusively offers, provides, or arranges for personal care assistant services under the medical assistance program as authorized under sections 256B.04, subdivision 16, and 256B.0625, subdivision 19.

The juvenile courts shall also help with the study by giving the commissioner existing juvenile court records on individuals described in clause (2) relating to delinquency proceedings held within either the five years immediately preceding the application or the five years immediately preceding the individual's 18th birthday, whichever time period is longer. The commissioner shall destroy juvenile records obtained pursuant to this subdivision when the subject of the records reaches age 23.

For purposes of this section and Minnesota Rules, part 9543.3070, a finding that a delinquency petition is proven in juvenile court shall be considered a conviction in state district court.

For purposes of this subdivision, "direct contact" means providing face-to-face care, training, supervision, counseling, consultation, or medication assistance to persons served by a program. For purposes of this subdivision, "directly supervised" means an individual listed in clause (1), (3), or (5) is within sight or hearing of a volunteer to the extent that the individual listed in clause (1), (3), or (5) is capable at all times of intervening to protect the health and safety of the persons served by the program who have direct contact with the volunteer.

A study of an individual in clauses (1) to (5) shall be conducted at least upon application for initial license and reapplication for a license. The commissioner is not required to conduct a study of an individual at the time of reapplication for a license, other than a family day care or foster care license, if (i) a study of the individual was conducted either at the time of initial licensure or when the individual became affiliated with the license holder; (ii) the individual has been continuously affiliated with the license holder since the last study was conducted; and (iii) the procedure described in paragraph (b) has been implemented and was in effect continuously since the last study was conducted.

The commissioner may also conduct studies on individuals specified in clauses (3) and (4) when the request for the study is initiated by:

(i) personnel pool agencies;

(ii) temporary personnel agencies;

(iii) educational programs that train an individual by providing direct contact services in licensed programs; and

(iv) professional services agencies that are not licensed and which contract with licensed programs to provide direct contact services or individuals who provide direct contact services. Studies on individuals must be initiated annually by these agencies and programs. No applicant, license holder, or individual who is the subject of the study shall pay any fees required to conduct the study.

(b) If an individual who is affiliated with a program or facility regulated by the department of human services or department of health is convicted of a crime constituting a disqualification under Minnesota Rules, parts 9543.3000 to 9543.3090, the probation officer or corrections agent shall notify the commissioner of the conviction. The commissioner, in consultation with the commissioner of corrections, shall develop forms and information necessary to implement this paragraph and shall provide the forms and information to the commissioner of corrections for distribution to local probation officers and corrections agents. The commissioner shall inform individuals subject to a background study that criminal convictions for disqualifying crimes will be reported to the commissioner by the corrections system. A probation officer, corrections agent, or corrections agency is not civilly or criminally liable for disclosing or failing to disclose the information required by this paragraph. This paragraph does not apply to family day care and foster care programs.

(c) The individual who is the subject of the study must provide the applicant or license holder with sufficient information to ensure an accurate study including the individual's first, middle, and last name; home address, city,; county, and state of residence for the past five years; zip code; sex; date of birth; and driver's license number. The applicant or license holder shall provide this information about an individual in paragraph (a), clauses (1) to (5), on forms prescribed by the commissioner. The commissioner may request additional information of the individual, which shall be optional for the individual to provide, such as the individual's social security number or race.

(d) Except for child foster care, adult foster care, and family day care homes, a study must include information from the county agency's record of substantiated abuse or neglect of adults in licensed programs related to names of substantiated perpetrators of maltreatment of vulnerable adults that has been received by the commissioner as required under section 626.557, subdivision 9c, paragraph (i), and the commissioner's records relating to the maltreatment of minors in licensed programs, information from juvenile courts as required in paragraph (a) for persons listed in paragraph (a), clause (2), and information from the bureau of criminal apprehension. For child foster care, adult foster care, and family day care homes, the study must include information from the county agency's record of substantiated abuse or neglect maltreatment of adults, and the maltreatment of minors, information from juvenile courts as required in paragraph (a) for persons listed in paragraph (a), clause (2), and information from the bureau of criminal apprehension. The commissioner may also review arrest and investigative information from the bureau of criminal apprehension, the commissioner of health, a county attorney, county sheriff, county agency, local

chief of police, other states, the courts, or a national criminal record repository the Federal Bureau of Investigation if the commissioner has reasonable cause to believe the information is pertinent to the disqualification of an individual listed in paragraph (a), clauses (1) to (5). The commissioner is not required to conduct more than one review of a subject's records from the national criminal record repository Federal Bureau of Investigation if a review of the subject's criminal history with the national criminal record repository Federal Bureau of Investigation has already been completed by the commissioner and there has been no break in the subject's affiliation with the license holder who initiated the background studies.

When the commissioner has reasonable cause to believe that further pertinent information may exist on the subject, the subject shall be required to provide a set of classifiable fingerprints obtained from an authorized law enforcement agency. For purposes of requiring fingerprints, the commissioner shall have reasonable cause under, but not limited to, the following circumstances: (1) information from the bureau of criminal apprehension indicates that the subject is a multistate offender; (2) information from the bureau of criminal apprehension indicates that multistate offender status is undetermined; or (3) the commissioner has received a report from the subject or a third party indicating that the subject has a criminal history in a jurisdiction other than Minnesota.

(e) An applicant's or license holder's failure or refusal to cooperate with the commissioner is reasonable cause to deny an application or immediately suspend, suspend, or revoke a license. Failure or refusal of an individual to cooperate with the study is just cause for denying or terminating employment of the individual if the individual's failure or refusal to cooperate could cause the applicant's application to be denied or the license holder's license to be immediately suspended, suspended, or revoked.

(f) The commissioner shall not consider an application to be complete until all of the information required to be provided under this subdivision has been received.

(g) No person in paragraph (a), clause (1), (2), (3), (4), or (5) who is disqualified as a result of this section may be retained by the agency in a position involving direct contact with persons served by the program.

(h) Termination of persons in paragraph (a), clause (1), (2), (3), (4), or (5), made in good faith reliance on a notice of disqualification provided by the commissioner shall not subject the applicant or license holder to civil liability.

(i) The commissioner may establish records to fulfill the requirements of this section.

(j) The commissioner may not disqualify an individual subject to a study under this section because that person has, or has had, a mental illness as defined in section 245.462, subdivision 20.

(k) An individual who is subject to an applicant background study under this section and whose disqualification in connection with a license would be subject to the limitations on reconsideration set forth in subdivision 3b, paragraph (c), shall be disqualified for conviction of the crimes specified in the manner specified in subdivision 3b, paragraph (c). The commissioner of human services shall amend Minnesota Rules, part 9543.3070, to conform to this section.

(l) An individual must be disqualified if it has been determined that the individual failed to make required reports under section 626.556, subdivision 3, or 626.557, subdivision 3, for incidents in which: (1) the final disposition under section 626.556 or 626.557 was substantiated maltreatment, and (2) the maltreatment was recurring or serious as defined in Minnesota Rules, part 9543.3020, subpart 10.

(m) An individual subject to disqualification under this subdivision has the applicable rights in subdivision 3a, 3b, or 3c.

Sec. 3. Minnesota Statutes 1995 Supplement, section 245A.04, subdivision 3b, is amended to read:

Subd. 3b. [RECONSIDERATION OF DISQUALIFICATION.] (a) Within 30 days after receiving notice of disqualification under subdivision 3a, the individual who is the subject of the study may request reconsideration of the notice of disqualification. The individual must submit the request for reconsideration to the commissioner in writing. The individual must present information to show that:

(1) the information the commissioner relied upon is incorrect; or

(2) the subject of the study does not pose a risk of harm to any person served by the applicant or license holder.

(b) The commissioner may set aside the disqualification if the commissioner finds that the information the commissioner relied upon is incorrect or the individual does not pose a risk of harm to any person served by the applicant or license holder. In determining whether an individual does not pose a risk of harm, the commissioner shall review consider the consequences of the event or events that could lead to disqualification, whether there is more than one disqualifying event, the vulnerability of the victim at the time of the event, the time elapsed without a repeat of the same or similar event, and documentation of successful completion by the individual studied of training or rehabilitation pertinent to the event, and any other information relevant to the reconsideration. In reviewing a disqualification, the commissioner shall give preeminent weight to the safety of each person to be served by the license holder or applicant over the interests of the license holder or applicant.

(c) Unless the information the commissioner relied on in disqualifying an individual is incorrect, the commissioner may not set aside the disqualification of an individual in connection with a license to provide family day care for children, foster care for children in the provider's own home, or foster care or day care services for adults in the provider's own home if:

(1) less than ten years have passed since the discharge of the sentence imposed for the offense; and the individual has been convicted of a violation of any offense listed in section 609.20 (manslaughter in the first degree), 609.205 (manslaughter in the second degree), 609.21 (criminal vehicular homicide), 609.215 (aiding suicide or aiding attempted suicide), 609.221 to 609.2231 (felony violations of assault in the first, second, third, or fourth degree), 609.713 (terroristic threats), 609.235 (use of drugs to injure or to facilitate crime), 609.24 (simple robbery), 609.245 (aggravated robbery), 609.25 (kidnapping), 609.255 (false imprisonment), 609.561 or 609.562 (arson in the first or second degree), 609.71 (riot), 609.582 (burglary in the first or second degree), 609.66 (reckless use of a gun or dangerous weapon or intentionally pointing a gun at or towards a human being), 609.665 (setting a spring gun), 609.67 (unlawfully owning, possessing, or operating a machine gun), 609.749 (stalking), 152.021 or 152.022 (controlled substance crime in the first or second degree), 152.023, subdivision 1, clause (3) or (4), or subdivision 2, clause (4) (controlled substance crime in the third degree), 152.024, subdivision 1, clause (2), (3), or (4) (controlled substance crime in the fourth degree), 609.224, subdivision 2, paragraph (c) (fifth-degree assault by a caregiver against a vulnerable adult), 609.228 (great bodily harm caused by distribution of drugs), 609.23 (mistreatment of persons confined), 609.231 (mistreatment of residents or patients), 609.2325 (criminal abuse of a vulnerable adult), 609.233 (criminal neglect of a vulnerable adult), 609.2335 (financial exploitation of a vulnerable adult), 609.234 (failure to report), 609.265 (abduction), 609.2664 to 609.2665 (manslaughter of an unborn child in the first or second degree), 609.267 to 609.2672 (assault of an unborn child in the first, second, or third degree), 609.268 (injury or death of an unborn child in the commission of a crime), 617.293 (disseminating or displaying harmful material to minors), 609.378 (neglect or endangerment of a child), 609.377 (a gross misdemeanor offense of malicious punishment of a child), 609.72, subdivision 3 (disorderly conduct against a vulnerable adult); or an attempt or conspiracy to commit any of these offenses, as each of these offenses is defined in Minnesota Statutes; or an offense in any other state, the elements of which are substantially similar to the elements of any of the foregoing offenses;

(2) regardless of how much time has passed since the discharge of the sentence imposed for the offense, the individual was convicted of a violation of any offense listed in sections 609.185 to 609.195 (murder in the first, second, or third degree), 609.2661 to 609.2663 (murder of an unborn child in the first, second, or third degree), 609.377 (a felony offense of malicious punishment of a child), 609.322 (soliciting, inducement, or promotion of prostitution), 609.323 (receiving profit derived from prostitution), 609.342 to 609.345 (criminal sexual conduct in the first, second, third, or fourth degree), 609.352 (solicitation of children to engage in sexual conduct), 617.246 (use of minors in a sexual performance), 617.247 (possession of pictorial representations of a minor), 609.365 (incest), or an attempt or conspiracy to commit any of these offenses as defined in Minnesota Statutes, or an offense in any other state, the elements of which are substantially similar to any of the foregoing offenses;

(3) within the seven years preceding the study, the individual committed an act that constitutes maltreatment of a child under section 626.556, subdivision 10e, and that resulted in substantial bodily harm as defined in section 609.02, subdivision 7a, or substantial mental or emotional harm as supported by competent psychological or psychiatric evidence; or

(4) within the seven years preceding the study, the individual was determined under section 626.557 to be the perpetrator of a substantiated incident of abuse maltreatment of a vulnerable adult that resulted in substantial bodily harm as defined in section 609.02, subdivision 7a, or substantial mental or emotional harm as supported by competent psychological or psychiatric evidence.

In the case of any ground for disqualification under clauses (1) to (4), if the act was committed by an individual other than the applicant or license holder residing in the applicant's or license holder's home, the applicant or license holder may seek reconsideration when the individual who committed the act no longer resides in the home.

The disqualification periods provided under clauses (1), (3), and (4) are the minimum applicable disqualification periods. The commissioner may determine that an individual should continue to be disqualified from licensure because the license holder or applicant poses a risk of harm to a person served by that individual after the minimum disqualification period has passed.

(d) The commissioner shall respond in writing to all reconsideration requests within 15 working days after receiving the request for reconsideration. If the disqualification is set aside, the commissioner shall notify the applicant or license holder in writing of the decision.

(e) Except as provided in subdivision 3c, the commissioner's decision to disqualify an individual, including the decision to grant or deny a reconsideration of disqualification under this subdivision, or to set aside or uphold the results of the study under subdivision 3, is the final administrative agency action and shall not be subject to further review in a contested case under chapter 14 involving a negative licensing action taken in response to the disqualification.

Sec. 4. Minnesota Statutes 1994, section 245A.04, subdivision 3c, is amended to read:

Subd. 3c. [CONTESTED CASE.] If a disqualification is not set aside, a person who, on or after the effective date of rules adopted under subdivision 3, paragraph (i), is an employee of an employer, as defined in section 179A.03, subdivision 15, may request a contested case hearing under chapter 14. Rules adopted under this chapter may not preclude an employee in a contested case hearing for disqualification from submitting evidence concerning information gathered under subdivision 3, paragraph (e).

Sec. 5. Minnesota Statutes 1994, section 245A.04, subdivision 4, is amended to read:

Subd. 4. [INSPECTIONS; WAIVER.] (a) Before issuing a license, the commissioner shall conduct an inspection of the program. The inspection must include but is not limited to:

(1) an inspection of the physical plant;

(2) an inspection of records and documents;

(3) an evaluation of the program by consumers of the program; and

(4) observation of the program in operation.

For the purposes of this subdivision, "consumer" means a person who receives the services of a licensed program, the person's legal guardian, or the parent or individual having legal custody of a child who receives the services of a licensed program.

(b) The evaluation required in paragraph (a), clause (3) or the observation in paragraph (a), clause (4) is not required prior to issuing a provisional an initial license under subdivision 7. If the commissioner issues a provisional an initial license under subdivision 7, these requirements must be completed within one year after the issuance of a provisional an initial license. The observation in paragraph (a), clause (4) is not required if the commissioner determines that the observation would hinder the persons receiving services in benefiting from the program.

Sec. 6. Minnesota Statutes 1994, section 245A.04, subdivision 5, is amended to read:

Subd. 5. [COMMISSIONER'S RIGHT OF ACCESS.] When the commissioner is exercising the powers conferred by sections 245A.01 to 245A.15 245A.16, the commissioner must be given access to the physical plant and grounds where the program is provided, documents, persons served by the program, and staff whenever the program is in operation and the information is relevant to inspections or investigations conducted by the commissioner. The commissioner must be given access without prior notice and as often as the commissioner considers necessary if the commissioner is conducting an investigation of allegations of abuse, neglect, maltreatment, or other violation of applicable laws or rules. In conducting inspections, the commissioner may request and shall receive assistance from other state, county, and municipal governmental agencies and departments. The applicant or license holder shall allow the commissioner to photocopy, photograph, and make audio and video tape recordings during the inspection of the program at the commissioner's expense. The commissioner shall obtain a court order or the consent of the subject of the records or the parents or legal guardian of the subject before photocopying hospital medical records.

Persons served by the program have the right to refuse to consent to be interviewed, photographed, or audio or videotaped. Failure or refusal of an applicant or license holder to fully comply with this subdivision is reasonable cause for the commissioner to deny the application or immediately suspend or revoke the license.

Sec. 7. Minnesota Statutes 1994, section 245A.04, subdivision 6, is amended to read:

Subd. 6. [COMMISSIONER'S EVALUATION.] Before granting, suspending, revoking, or making probationary provisional a license, the commissioner shall evaluate information gathered under this section. The commissioner's evaluation shall consider facts, conditions, or circumstances concerning the program's operation, the well-being of persons served by the program, available consumer evaluations of the program, and information about the qualifications of the personnel employed by the applicant or license holder.

The commissioner shall evaluate the results of the study required in subdivision 3 and determine whether a risk of harm to the persons served by the program exists. In conducting this evaluation, the commissioner shall apply the disqualification standards set forth in rules adopted under this chapter. Prior to the adoption of rules establishing disqualification standards, the commissioner shall forward the proposed rules to the commissioner of human rights for review and recommendation concerning the protection of individual rights. The recommendation of the commissioner of human rights is not binding on the commissioner of human services.

Sec. 8. Minnesota Statutes 1995 Supplement, section 245A.04, subdivision 7, is amended to read:

Subd. 7. [ISSUANCE OF A LICENSE; PROVISIONAL LICENSE.] (a) If the commissioner determines that the program complies with all applicable rules and laws, the commissioner shall issue a license. At minimum, the license shall state:

(1) the name of the license holder;

(2) the address of the program;

(3) the effective date and expiration date of the license;

(4) the type of license;

(5) the maximum number and ages of persons that may receive services from the program; and

(6) any special conditions of licensure.

(b) The commissioner may issue a provisional an initial license for a period not to exceed one year two years if:

(1) the commissioner is unable to conduct the evaluation or observation required by subdivision 4, paragraph (a), clauses (3) and (4), because the program is not yet operational;

(2) certain records and documents are not available because persons are not yet receiving services from the program; and

(3) the applicant complies with applicable laws and rules in all other respects.

A provisional license must not be issued except at the time that a license is first issued to an applicant.

(c) A decision by the commissioner to issue a license does not guarantee that any person or persons will be placed or cared for in the licensed program. A license shall not be transferable to another individual, corporation, partnership, voluntary association, other organization, or controlling individual, or to another location. For purposes of reimbursement for meals only, under the Child and Adult Care Food Program, Code of Federal Regulations, title 7, subtitle B, chapter II, subchapter A, part 226, relocation within the same county by a family day care provider licensed under Minnesota Rules, parts 9502.0300 to 9502.0445, shall be considered an extension of the license for a period of no more than 30 calendar days or until the new license is issued, whichever occurs first. Unless otherwise specified by statute, all licenses expire at 12:01 a.m. on the day after the expiration date stated on the license. A license holder must apply for and be granted a new license to operate the program or the program must not be operated after the expiration date.

Sec. 9. [245A.041] [LICENSE HOLDER REQUIREMENTS GOVERNING MALTREATMENT OF VULNERABLE ADULTS.]

Subdivision 1. [LICENSE HOLDER INTERNAL REPORTING AND INVESTIGATION OF MALTREATMENT.] All licensed programs serving adults shall establish and enforce internal written reporting and investigating policies and procedures for suspected or alleged maltreatment.

(a) The policies and procedures must include a process for the mandatory reporting of maltreatment of individuals receiving services and must specify that reports may be made internally, externally, or both. The policies and procedures shall also contain a provision that persons other than mandated reporters may and should report incidents of maltreatment and shall identify the persons to whom internal reports shall be made. The person responsible for forwarding internal reports to the common entry point shall be clearly identified. Mandated reporters shall be informed when a report has been forwarded and to whom it was forwarded.

(b) The policies and procedures shall include identification of the person responsible for the internal review and investigation of maltreatment. If the person responsible for the internal review and investigation is suspected of committing the maltreatment, another person shall be designated to conduct the review and investigation.

(c) The policies and procedures shall include a provision requiring that records are maintained regarding the internal review and investigation of maltreatment. These records shall contain a summary of the findings, persons involved, persons interviewed, persons and investigating authorities notified, conclusions, and any actions taken. The records shall be dated and authenticated by signature and identification of the person doing the review and investigation.

(d) The program shall provide an orientation to the internal reporting system for persons receiving services. If applicable, the person's legal representative must be notified of the orientation. The program shall provide this orientation for each new person within 24 hours of admission, or for persons who would benefit more from a later orientation, the orientation may take place within 72 hours.

(e) The program shall post a copy of the internal reporting policies and procedures in a prominent location in the program and have it available upon request to mandated reporters, persons receiving services, and legal representatives.

Subd. 2. [ABUSE PREVENTION PLANS.] (a) All licensed programs serving adults shall establish and enforce an ongoing written abuse prevention plan as required under section 626.557, subdivision 14. The assessment of the population shall include an evaluation of the following factors: age, sex, mental functioning, physical and emotional health or behavior of persons, the need for specialized programs of care for persons, the need for training of staff to meet identified individual needs, and the knowledge a program may have regarding previous abuse that is relevant to minimizing risk of abuse for persons. The program shall provide an orientation to the program abuse prevention plan for persons receiving services. If applicable, legal representatives shall have the opportunity to be included in the orientation. The program shall provide this orientation to each new person within 24 hours of admission.

(b) All licensed programs serving adults shall develop and implement an individual abuse prevention plan for each person receiving services as required under section 626.557, subdivision 14. The plan shall be developed for each new person as part of the initial individual program plan required under the applicable licensing rule. The plan must be a part of the individual program plan, and the review and evaluation of the individual abuse prevention plan shall be done as part of the review of the person's individual program plan. The interdisciplinary team shall review abuse prevention plans at least annually, using the individual assessment and any reports of abuse relating to the person. The plan shall be revised to reflect the results of this review. Whenever possible, the person shall participate in the development of the individual abuse prevention plan. If applicable, the person's legal representative shall be given the opportunity to participate with or for the person in the development of the plan.

Subd. 3. [STAFF MALTREATMENT TRAINING AND ORIENTATION REQUIREMENTS.] (a) All licensed programs serving adults shall provide orientation for new mandated reporters within 72 hours of employment. All staff shall be informed of the requirements in section 626.557 and be informed of all internal policies and procedures related to individuals receiving services.

(b) All licensed programs serving adults shall conduct in-service training at least annually for mandated reporters to review section 626.557 and all internal maltreatment policies and procedures related to individuals receiving services.

Sec. 10. Minnesota Statutes 1994, section 245A.06, as amended by Laws 1995, chapter 207, article 2, sections 11, 12, and 13, is amended to read:

245A.06 [CORRECTION ORDER AND FINES.]

Subdivision 1. [CONTENTS OF CORRECTION ORDERS OR FINES.] (a) If the commissioner finds that the applicant or license holder has failed to comply with an applicable law or rule and this failure does not imminently endanger the health, safety, or rights of the persons served by the program, the commissioner may issue a correction order to or impose a fine on the applicant or license holder. The correction order or fine must state:

(1) the conditions that constitute a violation of the law or rule;

(2) the specific law or rule violated; and

(3) the time allowed to correct each violation; and

(4) if a fine is imposed, the amount of the fine.

(b) Nothing in this section prohibits the commissioner from proposing a sanction as specified in section 245A.07, prior to issuing a correction order or fine.

Subd. 2. [RECONSIDERATION OF CORRECTION ORDERS.] If the applicant or license holder believes that the contents of the commissioner's correction order are in error, the applicant or license holder may ask the department of human services to reconsider the parts of the correction order that are alleged to be in error. The request for reconsideration must be in writing and received by the commissioner within 20 calendar days after receipt of the correction order by the applicant or license holder, and:

(1) specify the parts of the correction order that are alleged to be in error;

(2) explain why they are in error; and

(3) include documentation to support the allegation of error.

A request for reconsideration does not stay any provisions or requirements of the correction order. The commissioner's disposition of a request for reconsideration is final and not subject to appeal under chapter 14.

Subd. 3. [FAILURE TO COMPLY.] If upon reinspection, the commissioner finds that the applicant or license holder has not corrected the violations specified in the correction order, the commissioner may order impose a fine. If a fine was imposed and the violation was not corrected, the commissioner may impose an additional fine. This section does not prohibit the commissioner from seeking a court order, denying an application, or suspending, revoking, or making probationary provisional the license in addition to ordering a fine.

Subd. 4. [NOTICE OF FINE; APPEAL RECONSIDERATION OF FINE.] A license holder who is ordered to pay a fine must be notified of the order by certified mail. The notice must be mailed to the address shown on the application or the last known address of the license holder. The notice must state the reasons the fine was ordered and must inform the license holder of the responsibility for payment of fines in subdivision 7 and the right to a contested case hearing under chapter 14 request reconsideration of the fine. The license holder may appeal request reconsideration of the order to forfeit a fine by notifying the commissioner by certified mail within 15 20 calendar days after receiving the order. A timely appeal request for reconsideration shall stay forfeiture of the fine until the commissioner issues a final order under section 245A.08, subdivision 5 decision on the request for reconsideration. The request for reconsideration must be in writing and:

(1) specify the parts of the violation that are alleged to be in error;

(2) explain why they are in error; and

(3) include documentation to support the allegation of error.

The commissioner's disposition of a request for reconsideration is final and not subject to appeal under chapter 14.

Subd. 5. [FORFEITURE OF FINES.] The license holder shall pay the fines assessed on or before the payment date specified in the commissioner's order. If the license holder fails to fully comply with the order, the commissioner shall issue a second fine or suspend the license until the license holder complies. If the license holder receives state funds, the state, county, or municipal agencies or departments responsible for administering the funds shall withhold payments and recover any payments made while the license is suspended for failure to pay a fine.

Subd. 5a. [ACCRUAL OF FINES.] A license holder shall promptly notify the commissioner of human services, in writing, when a violation specified in an order to forfeit is corrected. A fine assessed for a violation shall stop accruing when the commissioner receives the written notice. The commissioner shall reinspect the program within three working days after receiving the notice. If upon reinspection the commissioner determines that a violation has not been corrected as indicated by the order to forfeit, accrual of the daily fine resumes on the date of reinspection and the amount of fines that otherwise would have accrued between the date the commissioner received the notice and date of the reinspection is added to the total assessment due from the license holder the commissioner may issue a second fine. The commissioner shall notify the license holder by certified mail that accrual of the a second fine has resumed been assessed. The license holder may challenge the resumption in a contested case under chapter 14 by written request within 15 days after receipt of the notice of resumption. Recovery of the resumed fine must be stayed if a controlling individual or a legal representative on behalf of the license holder makes a written request for a hearing. The request for hearing, however, may not stay accrual of the daily fine for violations that have not been corrected. The cost of reinspection conducted under this subdivision for uncorrected violations must be added to the total amount of accrued fines due from the license holder request reconsideration of the second fine under the provisions of subdivision 4.

Subd. 6. [AMOUNT OF FINES.] Until the commissioner adopts one or more schedules of fines, Fines shall be assessed as follows:

(1) the license holder shall forfeit $1,000 $500 for each occurrence of violation of law or rule prohibiting the maltreatment of children or the abuse, neglect, or exploitation maltreatment of vulnerable adults, including but not limited to corporal punishment, illegal or unauthorized use of physical, mechanical, or chemical restraints, and illegal or unauthorized use of aversive or deprivation procedures;

(2) the license holder shall forfeit $200 $100 for each occurrence of a violation of law or rule governing matters of health, safety, or supervision, including but not limited to the provision of adequate staff to child or adult ratios, except that the holder of a family or group family day care license shall forfeit $100 for a violation under this clause; and

(3) the license holder shall forfeit $100 $50 for each occurrence of a violation of law or rule other than those included in clauses (1) and (2), except that the holder of a family or group family day care license shall forfeit $50 for a violation under this clause.

For the purposes of this section, "occurrence" means each calendar day or part of a day that a violation continues to exist after the date set for correction identified in the commissioner's correction forfeiture order.

Subd. 7. [RESPONSIBILITY FOR PAYMENT OF FINES.] When a fine has been assessed, the license holder may not avoid payment by closing, selling, or otherwise transferring the licensed program to a third party. In such an event, the license holder will be personally liable for payment. In the case of a corporation, each controlling individual is personally and jointly liable for payment.

Fines for child care centers shall be assessed according to this section.

Sec. 11. Minnesota Statutes 1994, section 245A.07, subdivision 1, is amended to read:

Subdivision 1. [SANCTIONS AVAILABLE.] In addition to ordering forfeiture of fines, the commissioner may propose to suspend, revoke, or make probationary provisional the license or secure an injunction against the continuing operation of the program of a license holder who does not comply with applicable law or rule. When applying sanctions authorized under this section, the commissioner shall consider the nature, chronicity, or severity of the violation of law or rule and the effect of the violation on the health, safety, or rights of persons served by the program.

Sec. 12. Minnesota Statutes 1995 Supplement, section 245A.07, subdivision 3, is amended to read:

Subd. 3. [SUSPENSION, REVOCATION, PROBATION PROVISIONAL LICENSE.] The commissioner may suspend, revoke, or make probationary provisional, or deny a license if an applicant or a license holder fails to comply fully with applicable laws or rules, or knowingly withholds relevant information from or gives false or misleading

information to the commissioner in connection with an application for a license or during an investigation. A license holder who has had a license suspended, revoked, or made probationary provisional must be given notice of the action by certified mail. The notice must be mailed to the address shown on the application or the last known address of the license holder. The notice must state the reasons the license was suspended, revoked, or made probationary provisional.

(a) If the license was suspended or revoked, the notice must inform the license holder of the right to a contested case hearing under chapter 14. The license holder may appeal an order suspending or revoking a license. The appeal of an order suspending or revoking a license must be made in writing by certified mail and must be received by the commissioner within ten calendar days after the license holder receives notice that the license has been suspended or revoked.

(b) If the license was made probationary provisional, the notice must inform the license holder of the right to request a reconsideration by the commissioner. The request for reconsideration must be made in writing by certified mail and must be received by the commissioner within ten calendar days after the license holder receives notice that the license has been made probationary provisional. The license holder may submit with the request for reconsideration written argument or evidence in support of the request for reconsideration. The commissioner's disposition of a request for reconsideration is final and is not subject to appeal under chapter 14.

Sec. 13. Minnesota Statutes 1994, section 245A.08, subdivision 1, is amended to read:

Subdivision 1. [RECEIPT OF APPEAL; CONDUCT OF HEARING.] Upon receiving a timely appeal or petition pursuant to sections section 245A.05 to or 245A.07, the commissioner shall issue a notice of and order for hearing to the appellant under chapter 14.

Sec. 14. Minnesota Statutes 1994, section 245A.08, subdivision 2, is amended to read:

Subd. 2. [CONDUCT OF HEARINGS.] At any hearing provided for by sections section 245A.05 to or 245A.07, the appellant may be represented by counsel and has the right to call, examine, and cross-examine witnesses. The administrative law judge may require the presence of witnesses and evidence by subpoena on behalf of any party.

Sec. 15. Minnesota Statutes 1995 Supplement, section 245A.09, subdivision 7, is amended to read:

Subd. 7. [REGULATORY METHODS.] (a) Where appropriate and feasible the commissioner shall identify and implement alternative methods of regulation and enforcement to the extent authorized in this subdivision. These methods shall include:

(1) expansion of the types and categories of licenses that may be granted;

(2) when the standards of another state or federal governmental agency or an independent accreditation body have been shown to predict compliance with the rules, the commissioner shall consider compliance with the governmental or accreditation standards to be equivalent to partial compliance with the rules; and

(3) use of an abbreviated inspection that employs key standards that have been shown to predict full compliance with the rules.

For programs and services for people with developmental disabilities, the commissioner of human services shall develop demonstration projects to use the standards of the commission on accreditation of rehabilitation facilities and the standards of the accreditation council on services to persons with disabilities during the period of July 1, 1993 to December 31, 1994, and incorporate the alternative use of these standards and methods in licensing rules where appropriate. If the commissioner determines that the methods in clause (2) or (3) can be used in licensing a program, the commissioner may reduce any fee set under section 245A.10 by up to 50 percent. The commissioner shall present a plan by January 31, 1995, to accept accreditation by either the accreditation council on services to people with disabilities or the commission on the accreditation of rehabilitation services as evidence of being in compliance where applicable with state licensing.

(b) The commissioner shall work with the commissioners of health, public safety, administration, and children, families, and learning in consolidating duplicative licensing and certification rules and standards if the commissioner determines that consolidation is administratively feasible, would significantly reduce the cost of licensing, and would not reduce the protection given to persons receiving services in licensed programs. Where administratively feasible and appropriate, the commissioner shall work with the commissioners of health, public safety, administration, and children, families, and learning in conducting joint agency inspections of programs.

(c) The commissioner shall work with the commissioners of health, public safety, administration, and children, families, and learning in establishing a single point of application for applicants who are required to obtain concurrent licensure from more than one of the commissioners listed in this clause.

(d) The commissioner may specify in rule periods of licensure up to two years.

Sec. 16. Minnesota Statutes 1995 Supplement, section 245A.11, subdivision 2, is amended to read:

Subd. 2. [PERMITTED SINGLE-FAMILY RESIDENTIAL USE.] Residential programs with a licensed capacity of six or fewer persons shall be considered a permitted single-family residential use of property for the purposes of zoning and other land use regulations, except that a residential program whose primary purpose is to treat juveniles who have violated criminal statutes relating to sex offenses or have been adjudicated delinquent on the basis of conduct in violation of criminal statutes relating to sex offenses shall not be considered a permitted use. This exception shall not apply to residential programs licensed before July 1, 1995. Programs otherwise allowed under this subdivision shall not be prohibited by operation of restrictive covenants or similar restrictions, regardless of when entered into, which cannot be met because of the nature of the licensed program, including provisions which require the home's occupants be related, and that the home must be occupied by the owner, or similar provisions.

Sec. 17. Minnesota Statutes 1994, section 245A.16, subdivision 2, is amended to read:

Subd. 2. [INVESTIGATIONS.] (a) The county or private agency shall conduct timely investigations of allegations of abuse or neglect maltreatment of children or adults in programs for which the county or private agency is the commissioner's designated representative and record a disposition of each complaint in accordance with applicable law or rule. The county or private agency shall conduct similar investigations of allegations of violations of rules governing licensure of the program.

(b) If an investigation conducted under clause (a) results in evidence that the commissioner should deny an application or suspend, revoke, or make probationary provisional a license, the county or private agency shall make that recommendation to the commissioner within ten working days.

Sec. 18. [INSPECTION DEMONSTRATION PROJECT.]

For programs and services licensed under Minnesota Rules, parts 9503.0005 to 9503.0170, 9520.0750 to 9520.0870, or 9525.2000 to 9525.2140, the commissioner shall develop demonstration projects for an abbreviated inspection employing key standards during the period of July 1, 1996, to June 30, 1998. A key standards inspection shall be implemented in such a manner as to provide for a full or partial inspection, based on the applicable rule, in programs that do not pass a key standards inspection. A key standards inspection shall not be used for the initial licensing review when there is at least one substantiated maltreatment report or at least three substantiated licensing complaint reports within the current licensing period. For purposes of the demonstration projects, the key standards inspection shall be accepted as evidence of compliance with these rules. The commissioner shall report to the legislature by January 31, 1999, with recommendations for implementation of key licensing standards.

Sec. 19. [DEMONSTRATION PROJECT FOR PEOPLE WITH DEVELOPMENTAL DISABILITIES.]

This demonstration project was initially passed in the 1993 legislative session and amended in the 1996 legislative session to extend the life of the demonstration project from 1994 to 1997, and move the language from Minnesota Statutes, section 245A.09, subdivision 7, to an uncodified section of law.

For programs and services for people with developmental disabilities, the commissioner of human services shall develop demonstration projects to use the standards of the commission on accreditation of rehabilitation facilities and the standards of the accreditation council on services to persons with disabilities during the period of July 1, 1993, to December 31, 1997, and incorporate the alternative use of these standards and methods in licensing rules where appropriate. If the commissioner determines that the methods in Minnesota Statutes, section 245A.09, subdivision 7, paragraph (a), clause (2) or (3), can be used in licensing a program, the commissioner may reduce any fee set under Minnesota Statutes, section 245A.10, by up to 50 percent. The commissioner shall present a plan by January 31, 1998, to accept accreditation by either the accreditation council on services to people with disabilities or the commission on the accreditation of rehabilitation services as evidence of being in compliance where applicable with state licensing.

Sec. 20. [UNCODIFIED LANGUAGE CHANGES AND RULE CHANGES.]

The commissioner shall amend Minnesota Rules, part 9543.3070, subpart 1, to include the following offenses to disqualify a person applying for a license for a program serving children or adults:

An individual must be disqualified if it has been determined that the individual failed to make required reports under Minnesota Statutes, section 626.556, subdivision 3, or 626.557, subdivision 3, for incidents in which: (1) the final disposition under Minnesota Statutes, section 626.556 or 626.557, was substantiated maltreatment; and (2) the maltreatment was recurring or serious as defined in Minnesota Rules, part 9543.3020, subpart 10.

The commissioner shall amend Minnesota Rules, part 9543.3070, subpart 1, to include the following offenses to disqualify a person applying for a license for a program serving children or adults:

An individual must be disqualified if the individual has been convicted for any of the following reasons: (1) criminal abuse of a vulnerable adult under Minnesota Statutes, section 609.2325; (2) criminal neglect of a vulnerable adult under Minnesota Statutes, section 609.233; (3) financial exploitation of a vulnerable adult under Minnesota Statutes, section 609.2335; (4) failure to report under Minnesota Statutes, section 609.234; or (5) stalking under Minnesota Statutes, section 609.749.

Sec. 21. [REVIEW BOARDS.]

The ombudsman for mental health and mental retardation shall develop recommendations for an alternative to the existing review boards authorized by Minnesota Statutes, section 253B.22. The recommendations shall be submitted to the legislature by January 15, 1997, for implementation January 1, 1998.

The alternative shall include strategies for broadening the review system to include citizens served in communities and for using volunteers in a cost-effective manner. The ombudsman shall involve interested persons and agencies in developing the alternative strategies.

Sec. 22. [RECOMMENDATIONS.]

The commissioner of children, families, and learning and the Minnesota early childhood care and education council, in conjunction with the institute of early childhood professional development, shall make recommendations as follows:

(1) recommendations that will result in the separation of the licensing procedures for child care providers (including child care center teachers, assistance teachers, aides, substitutes, family day care providers, and group family day care providers) from the licensing procedures for the physical plant of child care centers and family day care homes;

(2) recommendations for the most appropriate entity within or associated with the department of children, families, and learning in which to house the function of licensing child care providers;

(3) recommendations for standards for the licensure of child care providers, which must be appropriate to each type of provider, and which must incorporate the core competencies matrix as developed by the institute of early childhood professional development.

The commissioner must make recommendations to the legislature by February 15, 1997.

Sec. 23. [REPEALER.]

Minnesota Rules, parts 9503.0170, subpart 7; 9555.8000; 9555.8100; 9555.8200; 9555.8300; 9555.8400; and 9555.8500, are repealed.

Sec. 24. [EFFECTIVE DATE.]

Sections 19 and 20 are effective the day following final enactment."

Delete the title and insert:

"A bill for an act relating to human services; adding provisions for licensing programs; amending Minnesota Statutes 1994, sections 245A.04, subdivisions 3c, 4, 5, and 6; 245A.06, as amended; 245A.07, subdivision 1; 245A.08, subdivisions 1 and 2; and 245A.16, subdivision 2; Minnesota Statutes 1995 Supplement, sections 245A.02,

subdivision 16; 245A.04, subdivisions 3, 3b, and 7; 245A.07, subdivision 3; 245A.09, subdivision 7; and 245A.11, subdivision 2; proposing coding for new law in Minnesota Statutes, chapter 245A; repealing Minnesota Rules, parts 9503.0170, subpart 7; 9555.8000; 9555.8100; 9555.8200; 9555.8300; 9555.8400; and 9555.8500."

With the recommendation that when so amended the bill pass.

The report was adopted.

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

H. F. No. 2313, A bill for an act relating to highways; designating a portion of marked trunk highway No. 22 as Victory Drive; amending Minnesota Statutes 1994, section 161.14, by adding a subdivision.

Reported the same back with the following amendments:

Page 1, line 15, delete everything after "at" and insert "locations the commissioner determines."

Page 1, delete lines 16 and 17 and insert:

"Sec. 2. Minnesota Statutes 1994, section 161.14, is amended by adding a subdivision to read:

Subd. 33. [VETERANS MEMORIAL HIGHWAY.] Marked trunk highway No. 15, from its intersection with marked trunk highway No. 60 to its intersection with the Iowa border, is designated "Veterans Memorial Highway." The commissioner of transportation shall adopt a suitable design for marking this highway and shall erect appropriate signs at locations the commissioner determines."

Page 1, line 18, delete "2" and insert "3"

Page 1, line 19, delete "Section 1 is" and insert "Sections 1 and 2 are"

Amend the title as follows:

Page 1, line 2, delete everything after "designating"

Page 1, line 3, delete everything before "as" and insert "portions of certain highways" and before the semicolon, insert "and Veterans Memorial Highway"

Page 1, line 4, delete "a"

Page 1, line 5, delete "subdivision" and insert "subdivisions"

With the recommendation that when so amended the bill pass and be re-referred to the Committee on Economic Development, Infrastructure and Regulation Finance.

The report was adopted.

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

H. F. No. 2341, A bill for an act relating to natural resources; authorizing the issuance of state bonds for construction of an interpretive center at Lake Bronson state park; appropriating money.

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

The report was adopted.

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

H. F. No. 2343, A bill for an act relating to capital improvements; appropriating money for the Prairie Woods environmental learning center in Kandiyohi county; authorizing the sale of state bonds.

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

The report was adopted.

Carlson, L., from the Committee on Education to which was referred:

H. F. No. 2345, A bill for an act relating to education; removing appropriations caps; establishing an education funding stabilization account; amending Minnesota Statutes 1995 Supplement, sections 124.17, subdivision 1; and 124A.22, subdivision 2; repealing Laws 1995, First Special Session chapter 3, article 14, section 5.

Reported the same back with the following amendments:

Pages 2 and 3, delete section 3

Page 3, line 15, delete "4" and insert "3"

Page 3, line 18, delete "5" and insert "4"

Page 3, line 19, delete "4" and insert "3"

Amend the title as follows:

Page 1, delete line 3

Page 1, line 4, delete "account;"

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.

Skoglund from the Committee on Judiciary to which was referred:

H. F. No. 2385, A bill for an act relating to civil actions; establishing an evidentiary privilege for persons who preside at alternative dispute resolution; amending Minnesota Statutes 1994, section 595.02, by adding a subdivision.

Reported the same back with the following amendments:

Page 1, line 19, delete "Rules of Civil Procedure" and insert "rules of professional conduct for attorneys"

With the recommendation that when so amended the bill pass.

The report was adopted.

Anderson, R., from the Committee on Health and Human Services to which was referred:

H. F. No. 2389, A bill for an act relating to health; regulating coverage; requiring a health plan company to offer at least one point-of-service product in each market in which it operates; proposing coding for new law in Minnesota Statutes, chapter 62Q.

Reported the same back with the following amendments:

Page 1, lines 10 and 22, delete "product" and insert "option"

Page 1, line 15, delete "For"

Page 1, delete lines 16 to 19

Page 1, line 21, delete "individual," and after "group" delete the comma

Page 1, delete lines 24 to 26 and insert:

"Subd. 3. [RATE APPROVAL.] The premium rates and cost sharing requirements for each option must be submitted to the commissioner of health or the commissioner of commerce as required by law. A health plan that includes lower enrollee cost sharing for services provided by network providers than for services provided by out-of-network providers, or lower enrollee cost sharing for services provided with prior authorization or second opinion than for services provided without prior authorization or second opinion, qualifies as a point-of-service option.

Subd. 4. [EXEMPTION.] This section does not apply to a health plan company with fewer than 50,000 enrollees, or to a health plan company for which at least 50 percent of enrollees are covered under the medical assistance, general assistance medical care, or MinnesotaCare programs."

Page 2, delete lines 1 to 15

Amend the title as follows:

Page 1, line 4, delete "product" and insert "option"

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

The report was adopted.

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

H. F. No. 2410, A bill for an act relating to highways; designating POW/MIA Memorial Highway, Veterans Memorial Highway, and John Riley Memorial Drive; amending Minnesota Statutes 1994, section 161.14, by adding subdivisions.

Reported the same back with the following amendments:

Page 2, line 3, delete "DRIVE" and insert "BOULEVARD"

Page 2, line 6, delete "Drive" and insert "Boulevard" and delete everything after the quotation mark

Page 2, delete lines 7 and 8

Amend the title as follows:

Page 1, line 4, delete "Drive" and insert "Boulevard"

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

The report was adopted.

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

H. F. No. 2411, A bill for an act relating to game and fish; prohibiting trespassing on private land for outdoor recreation; amending Minnesota Statutes 1994, section 97B.001, subdivision 2, and by adding a subdivision.

Reported the same back with the following amendments:

Page 1, delete section 2 and insert:

"Sec. 2. Minnesota Statutes 1994, section 97B.001, subdivision 2, is amended to read:

Subd. 2. [PERMISSION REQUIRED TO ENTER AGRICULTURAL LAND TO HUNT OR OPERATE VEHICLES FOR OUTDOOR RECREATION PURPOSES.] Except as provided in subdivisions 5 and 6, a person may not enter who enters agricultural land to hunt or operate a motor vehicle for pleasure for outdoor recreation purposes, unless the person obtains without first obtaining permission of the owner, occupant, or lessee, is subject to civil penalties as provided by section 8.

Sec. 3. Minnesota Statutes 1994, section 97B.001, subdivision 3, is amended to read:

Subd. 3. [ENTERING LAND PROHIBITED AFTER NOTICE.] Except as provided in subdivision 6, a person may not enter who remains on any land to take a wild animal for outdoor recreation purposes after being notified orally told not to do so orally by the owner, occupant, or lessee, is subject to civil penalties as provided by section 8.

Sec. 4. Minnesota Statutes 1994, section 97B.001, subdivision 4, is amended to read:

Subd. 4. [ENTERING POSTED LAND PROHIBITED; SIGNS.] (a) Except as provided in subdivision 6, a person may not enter who, for outdoor recreation purposes, enters any land that is posted under this subdivision to take a wild animal unless the person has obtained the without first obtaining permission of the owner, occupant, or lessee, is subject to civil penalties as provided by section 8.

(b) The owner, occupant, or lessee of private land, or an authorized manager of public land may prohibit unauthorized hunting, trapping, fishing, or trespassing outdoor recreation on the land by posting signs once each year that:

(1) display letters at least two inches high;

(2) are signed by include the legible name and phone number of the owner, occupant, lessee, or authorized manager; and

(3) are at intervals of 1,000 feet or less along the boundary of the area, or in a wooded area where boundary lines are not clear, at intervals of 500 feet or less mark the primary corners of each parcel of land and access roads and trails at the point of entrance to each parcel of land except that corners only accessible through agricultural land need not be posted.

(c) A person may not erect a sign that states "no hunting," "no trapping," "no fishing," "no trespassing," or another sign that prohibits trespass on land or water prohibits outdoor recreation or trespassing where the person does not have a property right, title, or interest to use the land.

Sec. 5. Minnesota Statutes 1994, section 97B.001, subdivision 5, is amended to read:

Subd. 5. [RETRIEVING WOUNDED GAME FROM AGRICULTURAL LAND.] Except as provided in subdivision 3, a hunter, person on foot, may, without permission of the owner, occupant, or lessee, retrieve wounded game, during the open season for the game, from agricultural enter land that is not posted under subdivision 4, without permission of the landowner to retrieve a wounded animal that was lawfully shot. The hunter must leave the land immediately after retrieving the wounded game.

Sec. 6. Minnesota Statutes 1994, section 97B.001, subdivision 6, is amended to read:

Subd. 6. [RETRIEVING HUNTING DOGS FROM PRIVATE LAND.] A person on foot may, without permission of the landowner owner, occupant, or lessee, enter private land on foot without a firearm to retrieve a hunting dog that has treed or is at bay with a raccoon, bobcat, coyote, or fox. After retrieving the dog, the person must immediately leave the premises.

Sec. 7. Minnesota Statutes 1994, section 97B.001, subdivision 7, is amended to read:

Subd. 7. [TAKING WITH FIREARMS IN CERTAIN AREAS.] (a) A person may not take a wild animal with a firearm within 500 feet of a building occupied by a human or livestock without the written permission of the owner, or occupant, or lessee:

(1) on another person's private agricultural land; or

(2) on a public right-of-way.

(b) A person may not take a wild animal with a firearm without the permission of the owner, occupant, or lessee, within 500 feet of a stockade or corral containing livestock.

(c) A person may not take a wild animal with a firearm on land other than agricultural land within 200 feet of a building occupied by a human without the oral permission of the owner or occupant of the building on any land where the person is prohibited from entering by this section.

Sec. 8. [97B.002] [CIVIL TRESPASS.]

Subdivision 1. [AUTHORITY TO ISSUE.] Conservation officers, sheriffs, and deputies may issue citations to a person who trespasses in violation of section 97B.001 or removes a sign posted to prevent trespass without permission of the owner of the property.

Subd. 2. [PENALTY AMOUNT.] The citation must impose the following penalty amounts:

(1) $50 for the first violation;

(2) $200 for the second violation in a three-year period;

(3) for a third or subsequent violation in a three-year period, the license or registration being used shall be null and void for one year from the date of the third or subsequent violation. In the event that no license or registration is being used at the time of the violation, the penalty shall be $500; and

(4) $50 for removal of a sign posted pursuant to this section.

Subd. 3. [APPEALS.] Citations may be appealed under the procedures in section 116.072, subdivision 6, if the person requests a hearing by notifying the commissioner in writing within 15 days after receipt of the citation. If a hearing is not requested within the 15-day period, the citation becomes a final order not subject to further review.

Subd. 4. [ENFORCEMENT OF FIELD CITATIONS.] Field citations may be enforced under section 116.072, subdivisions 9 and 10.

Subd. 5. [CUMULATIVE REMEDY.] The authority to issue field citations is in addition to other remedies available under statutory or common law, except that the state may not seek penalties under any other provision of law for the incident subject to the citation.

Subd. 6. [PAYMENT OF PENALTY.] Penalty amounts shall be remitted within 30 days of issuance of the penalty citation to the issuer.

Subd. 7. [ALLOCATION OF PENALTY AMOUNTS.] Penalty amounts are deposited to the county or the commissioner for deposit in the game and fish fund depending upon who issues the citation."

Delete the title and insert:

"A bill for an act relating to game and fish; prohibiting trespassing on agricultural land for outdoor recreation; prohibiting trespassing on certain private land for outdoor recreation; modifying posting requirements; modifying provisions for retrieving dogs and wounded game; prohibiting hunting in certain areas; providing civil penalties; establishing an appeals procedure; directing the disposition of penalty amounts; amending Minnesota Statutes 1994, section 94B.001, subdivisions 2, 3, 4, 5, 6, 7, and by adding a subdivision; proposing coding for new law in Minnesota Statutes, chapter 97B."

With the recommendation that when so amended the bill pass.

The report was adopted.

Rest from the Committee on Taxes to which was referred:

H. F. No. 2415, A bill for an act relating to housing; modifying procedures for allocating bonding authority to cities for single-family housing; making technical corrections; amending Minnesota Statutes 1994, sections 474A.061, subdivision 2b; 474A.131, subdivisions 1 and 1a; and 474A.14; Minnesota Statutes 1995 Supplement, sections 474A.061, subdivisions 2a and 2c; and 474A.091, subdivision 3; proposing coding for new law in Minnesota Statutes, chapter 474A.

Reported the same back with the following amendments:

Page 7, line 9, strike "mortgage" and insert "residential rental project"

Page 7, line 13, strike "residential rental project" and insert "mortgage"

Page 8, line 30, after the comma, insert "residential rental project bonds,"

With the recommendation that when so amended the bill pass.

The report was adopted.

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

H. F. No. 2417, A bill for an act relating to retirement; reallocating police and fire amortization aid to the Minneapolis and St. Paul teachers retirement association funds; modifying the method of computing benefits for the Minneapolis police and fire department relief association; amending Minnesota Statutes 1994, sections 423A.02, by adding a subdivision; 423B.01, subdivision 9; 423B.15, subdivision 3; and Laws 1989, chapter 319, article 19, section 7, subdivisions 1, as amended, and 4, as amended.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

Section 1. Minnesota Statutes 1994, section 3A.04, subdivision 4, is amended to read:

Subd. 4. [DEATH REFUNDS TO ESTATE.] Upon the death of a member of the legislature or former legislator who was not receiving a retirement allowance, without either a surviving spouse and without any or dependent children, regardless of when the death occurred, the last designated beneficiary named on a form filed with the director before the death of the legislator, or if no designation is filed, the estate of the member or former legislator, upon application of the representative of the estate, shall be entitled to a refund of contributions of the deceased member of the legislature or former legislator plus interest as provided in section 3A.03, subdivision 2, clause (2).

Sec. 2. Minnesota Statutes 1994, section 352B.11, subdivision 1, is amended to read:

Subdivision 1. [REFUND OF PAYMENTS.] A member who has not received other benefits under this chapter is entitled to a refund of payments made by salary deduction, plus interest, if the member is separated, either voluntarily or involuntarily, from state service that entitled the member to membership. In the event of the member's death, if there are no survivor benefits payable under this chapter, a refund is payable to the last designated beneficiary on a form filed with the director before death, or if no designation is filed, the refund is payable to the member's estate is entitled to the refund. Interest must be computed at the rate of six percent a year, compounded annually. To receive a refund, the member must apply application must be made on a form prescribed by the executive director.

Sec. 3. Minnesota Statutes 1994, section 352C.09, is amended by adding a subdivision to read:

Subd. 3. [DEATH REFUND.] If a constitutional officer who has not received other benefits under this chapter dies and there are no survivor benefits payable under this chapter, a refund plus interest as provided in section 352C.09, subdivision 2, clause (1), is payable to the last designated beneficiary named on a form filed with the director before the death of the constitutional officer, or if no designation is on file, the refund is payable to the estate of the deceased constitutional officer.

Sec. 4. Minnesota Statutes 1994, section 490.124, is amended by adding a subdivision to read:

Subd. 13. [DEATH REFUND.] If a judge who has not received other benefits under this chapter dies and there are no survivor benefits payable under this chapter, a refund plus interest as provided in section 490.124, subdivision 12, is payable to the last designated beneficiary named on a form filed with the director before the death of the judge, or if no designation is on file, the refund is payable to the estate of the deceased judge.

Sec. 5. [EFFECTIVE DATE.]

Sections 1 to 4 are effective July 1, 1996.

ADMINISTRATIVE PROVISIONS RELATING TO THE

MINNESOTA STATE RETIREMENT SYSTEM

Section 1. Minnesota Statutes 1994, section 352.04, subdivision 8, is amended to read:

Subd. 8. [DEPARTMENT REQUIRED TO PAY OMITTED SALARY DEDUCTIONS.] (a) If a department fails to take deductions past due for a period of 60 days or less from an employee's salary as provided in this section, those deductions must be taken on later payroll abstracts.

(b) If a department fails to take deductions past due for a period in excess of 60 days from an employee's salary as provided in this section, the department, and not the employee, shall must pay on later payroll abstracts the employee and employer contributions and an amount equivalent to 8.5 percent of the total amount due in lieu of interest, or if the delay in payment exceeds one year, 8.5 percent compound annual interest.

(c) If a department fails to take deductions past due for a period of 60 days or less and the employee is no longer in state service so that the required deductions cannot be taken from the salary of the employee, the department shall must nevertheless pay the required employer contributions. If any department fails to take deductions past due for a period in excess of 60 days and the employee is no longer in state service, the omitted contributions shall must be recovered under paragraph (b).

(d) If an employee from whose salary required deductions were past due for a period of 60 days or less leaves state service before the payment of the omitted deductions and subsequently returns to state service, the unpaid amount is considered the equivalent of a refund. The employee accrues no right by reason of the unpaid amount, except that the employee may pay the amount of omitted deductions as provided in section 352.23.

Sec. 2. Minnesota Statutes 1994, section 352.95, subdivision 2, is amended to read:

Subd. 2. [NON-JOB-RELATED DISABILITY.] Any covered correctional employee who, after at least one year of covered correctional service, becomes disabled and physically or mentally unfit to perform the duties of the position because of sickness or injury occurring while not engaged in covered employment, is entitled to a disability benefit based on covered correctional service only. The disability benefit must be computed as provided in section 352.93, subdivisions 1 and 2, and computed as though the employee had at least 15 years of covered correctional service.

Sec. 3. Minnesota Statutes 1994, section 352B.10, subdivision 2, is amended to read:

Subd. 2. [DISABLED WHILE NOT ON DUTY.] If a member terminates employment after at least one year of service because of sickness or injury occurring while not on duty and not engaged in state work entitling the member to membership, and the termination is necessary because the member cannot perform duties, the member is entitled to receive a disability benefit member becomes disabled and physically or mentally unfit to perform the duties of the

position because of sickness or injury occurring while not engaged in covered employment, the member is entitled to disability benefits. The benefit must be in the same amount and computed in the same way as if the member were 55 years old at the date of disability and the annuity were paid under section 352B.08. If disability under this clause occurs after one but before 15 years service, the disability benefit must be computed as though the member had 15 years service.

Sec. 4. [EFFECTIVE DATE.]

Sections 1 to 3 are effective July 1, 1996.

ADMINISTRATIVE PROVISIONS RELATING TO

THE TEACHERS RETIREMENT ASSOCIATION

Section 1. Minnesota Statutes 1994, section 354.44, subdivision 3, is amended to read:

Subd. 3. [APPLICATION FOR RETIREMENT.] Application for retirement must be made by the member or by someone authorized to act in the member's behalf. A member or a person authorized to act on behalf of the member may make application for retirement provided the age and service requirements under subdivision 1 are satisfied on or before the member's retirement annuity accrual date under subdivision 4. The application may be made no earlier than 120 days before the termination of teaching service. The application must be made on a form prescribed by the executive director and is not complete until all necessary supporting documents are received by the executive director.

Sec. 2. Minnesota Statutes 1994, section 354.44, subdivision 4, is amended to read:

Subd. 4. [TIME AND MANNER OF PAYMENTS RETIREMENT ANNUITY ACCRUAL DATE.] A member may make application to the board for a retirement annuity any time after the member has satisfied the age and service requirements of this chapter for retirement except that an application for retirement must not be made more than 60 days before termination of teaching service. The (a) An annuity payment begins to accrue, providing that the age and service requirements under subdivision 1 are satisfied, after the termination of teaching service, or after the application for retirement has been filed with the board, whichever is later, as follows:

(a) (1) on the 16th day of the month of termination or filing if the termination or filing occurs on or before the 15th day of the month,;

(b) (2) on the first day of the month following the month of termination or filing if the termination or filing occurs on or after the 16th day of the month, or;

(c) (3) on July 1 for all school principals and other administrators who receive a full annual contract salary during the fiscal year for performance of a full year's contract duties; or

(4) a later date to be the first or 16th day of a month within the six-month period immediately following the termination of teaching service as specified under paragraph (b) by the member.

(b) If an application for retirement is filed with the board during the six-month period immediately following the termination of teaching service, the annuity may begin to accrue as if the application for retirement had been filed with the board on the date teaching service terminated or a later date occurring within the six-month period as specified by the member under paragraph (a), clause (4). An annuity must not begin to accrue more than one month before the date of final salary receipt.

Sec. 3. [EFFECTIVE DATE.]

Sections 1 and 2 are effective the day following final enactment.

INCREASED FUNDING FOR THE MINNEAPOLIS AND

ST. PAUL TEACHERS RETIREMENT FUND ASSOCIATIONS

Section 1. Minnesota Statutes 1994, section 124.916, subdivision 3, is amended to read:

Subd. 3. [RETIREMENT LEVIES.] (1) In addition to the excess levy authorized in 1976 any district within a city of the first class which was authorized in 1975 to make a retirement levy under Minnesota Statutes 1974, section

275.127 and chapter 422A may levy an amount per pupil unit which is equal to the amount levied in 1975 payable 1976, under Minnesota Statutes 1974, section 275.127 and chapter 422A, divided by the number of pupil units in the district in 1976-1977.

(2) In 1979 and each year thereafter, any district which qualified in 1976 for an extra levy under clause (1) shall be allowed to levy the same amount as levied for retirement in 1978 under this clause reduced each year by ten percent of the difference between the amount levied for retirement in 1971 under Minnesota Statutes 1971, sections 275.127 and 422.01 to 422.54 and the amount levied for retirement in 1975 under Minnesota Statutes 1974, section 275.127 and chapter 422A.

(3) In 1991 and each year thereafter, a district to which this subdivision applies may levy an additional amount required for contributions to the Minneapolis employees retirement fund as a result of the maximum dollar amount limitation on state contributions to the fund imposed under section 422A.101, subdivision 3. The additional levy shall not exceed the most recent amount certified by the board of the Minneapolis employees retirement fund as the district's share of the contribution requirement in excess of the maximum state contribution under section 422A.101, subdivision 3.

(4) For taxes payable in 1994 and thereafter, special school district No. 1, Minneapolis, and independent school district No. 625, St. Paul, may levy for the increase in the employer retirement fund contributions, under Laws 1992, chapter 598, article 5, section 1. Notwithstanding section 121.904, the entire amount of this levy may be recognized as revenue for the fiscal year in which the levy is certified. This levy shall not be considered in computing the aid reduction under section 124.155.

(5) If the employer retirement fund contributions under section 354A.12, subdivision 2a, are increased for fiscal year 1994 or later fiscal years, special school district No. 1, Minneapolis, and independent school district No. 625, St. Paul, may levy in payable 1994 or later an amount equal to the amount derived by applying the net increase in the employer retirement fund contribution rate of the respective teacher retirement fund association between fiscal year 1993 and the fiscal year beginning in the year after the levy is certified to the total covered payroll of the applicable teacher retirement fund association. Notwithstanding section 121.904, the entire amount of this levy may be recognized as revenue for the fiscal year in which the levy is certified. This levy shall not be considered in computing the aid reduction under section 124.155. If an applicable school district levies under this paragraph, they may not levy under paragraph (4).

(6) In addition to the levy authorized under paragraph (5), special school district No. 1, Minneapolis, may also levy payable in 1996 or later an amount equal to the contributions under section 354A.12, subdivision 2c, and may also levy in payable 1994 or later an amount equal to the state aid contribution under section 354A.12, subdivision 3b. Independent school district No. 625, St. Paul, may levy payable in 1996 or later an amount equal to the supplemental contributions under section 354A.12, subdivision 2d. Notwithstanding section 121.904, the entire amount of this levy these levies may be recognized as revenue for the fiscal year in which the levy is certified. This levy These levies shall not be considered in computing the aid reduction under section 124.155.

Sec. 2. Minnesota Statutes 1994, section 354A.12, subdivision 2, is amended to read:

Subd. 2. [RETIREMENT CONTRIBUTION LEVY DISALLOWED.] Except as provided in subdivision subdivisions 2c and 3b, paragraph (d), with respect to the city of Minneapolis and special school district No. 1 and in subdivision 2d with respect to independent school district No. 625, notwithstanding any law to the contrary, levies for teachers retirement fund associations in cities of the first class, including levies for any employer social security taxes for teachers covered by the Duluth teachers retirement fund association or the Minneapolis teachers retirement fund association or the St. Paul teachers retirement fund association, are disallowed.

Sec. 3. Minnesota Statutes 1994, section 354A.12, is amended by adding a subdivision to read:

Subd. 2c. [SCHOOL DISTRICT SUPPLEMENTAL CONTRIBUTIONS TO MINNEAPOLIS TEACHERS RETIREMENT FUND ASSOCIATION.] (a) Beginning in fiscal year 1997, and annually thereafter, special school district No. 1 shall pay supplemental contributions in the following amounts to the Minneapolis teachers retirement fund association to reduce the unfunded actuarial accrued liability of the Minneapolis teachers retirement fund association according to the actuarial valuation of the fund prepared by the commission-retained actuary pursuant to section 356.215:

(1) an amount equal to 70 percent of the difference between the total 1995 financial requirements and the total current year financial requirements of the Minneapolis employees retirement fund payable by the city of Minneapolis pursuant to section 422A.101, subdivision 1a, provided that the number is negative. The amount payable shall be determined according to the recent valuation of the Minneapolis employees retirement fund prepared by the pension commission actuary;

(2) an amount equal to 70 percent of the difference between the total 1995 employer contributions and the total current year employer contributions payable under section 422A.101, subdivision 2, clause (c), on behalf of employees of special school district No. 1 who are covered by the Minneapolis employees retirement fund. The amount payable shall be determined according to the recent valuation of the Minneapolis employees retirement fund prepared by the pension commission actuary.

(b) Special school district No. 1 may levy for supplemental contributions to the Minneapolis teachers retirement fund association under this subdivision only to the extent permitted under section 124.916, subdivision 3.

Sec. 4. Minnesota Statutes 1994, section 354A.12, is amended by adding a subdivision to read:

Subd. 2d. [SCHOOL DISTRICT SUPPLEMENTAL CONTRIBUTIONS TO ST. PAUL TEACHERS RETIREMENT FUND ASSOCIATION.] (a) Beginning in fiscal year 1997, and annually thereafter, independent school district No. 625 shall pay a supplemental contribution to the St. Paul teachers retirement fund association to reduce the unfunded actuarial accrued liability of the St. Paul teachers retirement fund association according to actuarial valuation of the fund prepared by the commission-retained actuary under section 356.215. The supplemental contribution shall be an amount equal to the state contribution to the St. Paul teachers retirement fund association as specified by section 354A.12, subdivision 3a, paragraph (c).

(b) Independent school district No. 625 may levy for supplemental contributions to the St. Paul teachers retirement fund association under this subdivision only to the extent permitted under section 124.916, subdivision 3.

Sec. 5. Minnesota Statutes 1994, section 354A.12, subdivision 3a, is amended to read:

Subd. 3a. [SPECIAL DIRECT STATE AID TO ST. PAUL TEACHERS RETIREMENT FUND ASSOCIATION.] (a) The state shall pay to the St. Paul teachers retirement fund association $500,000 in fiscal year 1994. In each subsequent fiscal year, the payment to the St. Paul teachers retirement fund association must be increased at the same rate as the increase in the general education revenue formula allowance under section 124A.22, subdivision 2, in subsequent fiscal years.

(b) The direct state aid is payable October 1 annually. The commissioner of finance shall pay the direct state aid. The amount required under this subdivision paragraph (a) is appropriated annually to the commissioner of finance.

(c) In addition to the direct state aid payable under paragraph (a), the state shall pay to the St. Paul teachers retirement fund association annually an amount equal to 30 percent of the difference of $11,005,000 and the actual state contribution to the Minneapolis employees retirement fund under sections 356.865 and 422A.101, subdivision 3, for the current fiscal year. Payments under this paragraph shall be made in four equal installments, occurring annually on March 15, July 15, September 15, and November 15.

Sec. 6. Minnesota Statutes 1995 Supplement, section 354A.12, subdivision 3b, is amended to read:

Subd. 3b. [SPECIAL DIRECT STATE MATCHING AND STATE AID TO THE MINNEAPOLIS TEACHERS RETIREMENT FUND ASSOCIATION.] (a) Special school district No. 1 may make an additional employer contribution to the Minneapolis teachers retirement fund association. The city of Minneapolis may make a contribution to the Minneapolis teachers retirement fund association. This contribution may be made by a levy of the board of estimate and taxation of the city of Minneapolis, and the levy, if made, is classified as that of a special taxing district for purposes of sections 275.065 and 276.04, and for all other property tax purposes.

(b) For every $1,000 contributed in equal proportion by special school district No. 1 and by the city of Minneapolis to the Minneapolis teachers retirement fund association under paragraph (a), the state shall pay to the Minneapolis teachers retirement fund association $1,000, but not to exceed $2,500,000 in total in fiscal year 1994. The total amount available for each subsequent fiscal year must be increased at the same rate as the increase in the general education revenue formula allowance under section 124A.22, subdivision 2, in subsequent fiscal years. The superintendent of special school district No. 1, the mayor of the city of Minneapolis, and the executive director of the Minneapolis teachers retirement fund association shall jointly certify to the commissioner of finance the total amount that has been contributed by special school district No. 1 and by the city of Minneapolis to the Minneapolis teachers retirement fund association. Any certification to the commissioner of children, families, and learning must be made quarterly. If the total certifications for a fiscal year exceed the maximum annual direct state matching aid amount in any quarter, the amount of direct state matching aid payable to the Minneapolis teachers retirement fund association must be limited to the balance of the maximum annual direct state matching aid amount available. The amount required under this paragraph, subject to the maximum direct state matching aid amount, is appropriated annually to the commissioner of finance.

(c) The commissioner of finance may prescribe the form of the certifications required under paragraph (b).

(d) In addition to the direct matching aid payable under paragraph (b), the state shall pay direct state aid to the Minneapolis teachers retirement fund association annually an amount equal to 70 percent of the difference between $11,005,000 and the actual state contribution to the Minneapolis employees retirement fund under sections 356.865 and 422A.101, subdivision 3, for the current fiscal year. Payments under this paragraph shall be made in four equal installments, occurring annually on March 15, July 15, September 15, and November 15.

Sec. 7. Minnesota Statutes 1994, section 354A.12, subdivision 3c, is amended to read:

Subd. 3c. [TERMINATION OF SUPPLEMENTAL CONTRIBUTIONS AND DIRECT STATE MATCHING AND STATE AID.] (a) The supplemental contributions payable to the Minneapolis teachers retirement fund association by special school district No. 1 under subdivisions 2c and 2d to the St. Paul teachers retirement fund association by independent school district No. 625, the direct state aid under subdivision 3a to the St. Paul teachers retirement association, and the direct matching and state aid under subdivision 3b to the Minneapolis teachers retirement fund association terminates for the respective fund at the end of the fiscal year in which the accrued liability funding ratio for that fund, as determined in the most recent actuarial report for that fund by the actuary retained by the legislative commission on pensions and retirement, equals or exceeds the accrued liability funding ratio for the teachers retirement association, as determined in the most recent actuarial report for the teachers retirement association by the actuary retained by the legislative commission on pensions and retirement.

(b) If the direct matching or state aid is terminated for the St. Paul teachers retirement fund association or the Minneapolis teachers retirement fund association under paragraph (a), it may not again be received by that fund.

(c) If either the Minneapolis teachers retirement fund association or the St. Paul teachers retirement fund association remain funded at less than the funding ratio applicable to the teachers retirement association when the provisions of paragraph (b) become effective, then any state aid not distributed to that association must be immediately transferred to the other association.

Sec. 8. Minnesota Statutes 1994, section 423A.02, is amended by adding a subdivision to read:

Subd. 3. [ALLOCATION OF AMORTIZATION OF SUPPLEMENTARY AMORTIZED STATE AID.] Amortization aid or supplemental amortization aid under this section which is not distributed for any reason to a municipality for use by a local police or salaried fire relief association shall be distributed by the commissioner of revenue according to this subdivision. The commissioner shall distribute 70 percent of the undistributed aid to the Minneapolis teachers retirement fund association and 30 percent to the St. Paul teachers retirement fund association to fund the unfunded actuarial accrued liabilities of the respective funds. If either fund becomes fully funded based on the actuarial reports prepared by the actuary for the legislative commission on pensions and retirement, then the commissioner shall distribute all the undisbursed aid to the other fund. If both funds become fully funded, the undistributed aid must be deposited in the general fund.

Sec. 9. Minnesota Statutes 1994, section 423B.01, subdivision 9, is amended to read:

Subd. 9. [EXCESS INVESTMENT INCOME.] "Excess investment income" means the amount, if any, by which the average time weighted total rate of return earned by the fund in the most recent prior five fiscal year years has exceeded the actual average percentage increase in the current monthly salary of a first grade patrol officer in the most recent prior five fiscal year years plus two percent, and must be expressed as a dollar amount and may not exceed one percent of the total assets of the fund and does not exist unless the yearly average percentage increase of the time weighted total rate of return of the fund for the previous five years exceeds by two percent the yearly average percentage increase in monthly salary of a first grade patrol officer during the previous five calendar years.

Sec. 10. Minnesota Statutes 1994, section 423B.15, subdivision 3, is amended to read:

Subd. 3. [AMOUNT OF ANNUAL POSTRETIREMENT PAYMENT.] The amount determined under subdivision 2 must be applied in accordance with this subdivision. The relief association shall apply the first one-half of excess investment income to the payment of an annual postretirement payment as specified in this subdivision. The second one-half of excess investment income must be applied to reduce the state amortization state aid or supplementary amortization state aid payments otherwise due to the relief association under section 423A.02 for the current calendar year. The relief association shall pay an annual postretirement payment to all eligible members in an amount not to exceed one-half of one percent of the assets of the fund. Payment of the annual postretirement payment must be in

a lump sum amount on June 1 following the determination date in any year. Payment of the annual postretirement payment may be made only if the average time weighted total rate of return for the most recent prior five years exceeds by two percent the actual average percentage increase in the current monthly salary of a top grade patrol officer in the most recent prior five fiscal year and the yearly average percentage increase of the time weighted total rate of return of the fund for the previous five years exceeds by two percent the yearly average percentage increase in monthly salary of a top grade patrol officer of the previous five years. The total amount of all payments to members may not exceed the amount determined under this subdivision. Payment to each eligible member must be calculated by dividing the total number of pension units to which eligible members are entitled into the excess investment income available for distribution to members, and then multiplying that result by the number of units to which each eligible member is entitled to determine each eligible member's annual postretirement payment. Payment to each eligible member may not exceed an amount equal to the total monthly benefit that the eligible member was entitled to in the prior year under the terms of the benefit plan of the relief association or each eligible member's proportionate share of the excess investment income, whichever is less.

A person who received a pension or benefit for the entire 12 months before the determination date is eligible for a full annual postretirement payment. A person who received a pension or benefit for less than 12 months before the determination date is eligible for a prorated annual postretirement payment.

Sec. 11. Laws 1989, chapter 319, article 19, section 7, subdivision 1, as amended by Laws 1992, chapter 471, article 2, section 5, is amended to read:

Subdivision 1. [MINNEAPOLIS FIRE DEPARTMENT RELIEF ASSOCIATION; DEFINITIONS.] For the purposes of this section, each of the terms in this subdivision have the meanings given them in paragraphs (a) to (h).

(a) "Annual postretirement payment" means the payment of a lump sum postretirement benefit to an eligible member on June 1 following the determination date in any year.

(b) "City" means the city of Minneapolis.

(c) "Determination date" means December 31 of each year.

(d) "Eligible member" means a person, including a service pensioner, a disability pensioner, a survivor, or dependent of a deceased active member, service pensioner, or disability pensioner, who received a pension or benefit from the relief association during the 12 months before the determination date. A person who received a pension or benefit for the entire 12 months before the determination date is eligible for a full annual postretirement payment. A person who received a pension or benefit for less than 12 months before the determination date is eligible for a prorated annual postretirement payment.

(e) "Excess investment income" means the amount by which the average time weighted total rate of return earned by the fund in the most recent prior five fiscal year years has exceeded the actual average percentage increase in the current monthly salary of a top grade firefighter in the most recent prior five fiscal year years plus two percent. The excess investment income must be expressed as a dollar amount and may not exceed one percent of the total assets of the fund and does not exist unless the yearly average percentage increase of the time weighted total rate of return of the fund for the previous five years exceeds by two percent the yearly average percentage increase in monthly salary of a top grade firefighter during the previous five calendar years.

(f) "Fund" means the Minneapolis fire department relief association.

(g) "Relief association" means the Minneapolis fire department relief association.

(h) "Time weighted total rate of return" means the percentage amount determined by using the formula or formulas established by the state board of investment under Minnesota Statutes, section 11A.04, clause (11), and in effect on January 1, 1987.

Sec. 12. Laws 1989, chapter 319, article 19, section 7, subdivision 4, as amended by Laws 1990, chapter 570, article 12, section 63, and Laws 1992, chapter 471, article 2, section 6, is amended to read:

Subd. 4. [AMOUNT OF ANNUAL POSTRETIREMENT PAYMENT.] The amount determined under subdivision 3 must be applied in accordance with this subdivision. The relief association shall apply the first one-half of one percent of assets which constitute excess investment income to the payment of an annual postretirement payment as specified

in this subdivision. The second one-half of one percent of assets which constitute excess investment income shall be applied to reduce the state amortization state aid or supplementary amortization state aid payments otherwise due to the relief association under section 423A.02 for the current calendar year. The relief association shall pay an annual postretirement payment to all eligible members in an amount not to exceed one-half of one percent of the assets of the fund. Payment of the annual postretirement payment must be in a lump sum amount on June 1 following the determination date in any year. Payment of the annual postretirement payment may be made only if the average time weighted total rate of return in the most recent prior five fiscal years exceeds by two percent the actual average percentage increase in the current monthly salary of a top grade firefighter in the most recent prior five fiscal year and the yearly average percentage increase of the time weighted total rate of return of the fund for the previous five years exceeds by two percent the yearly average percentage increase in monthly salary of a top grade firefighter of the previous five years. The total amount of all payments to members may not exceed the amount determined under subdivision 3. Payment to each eligible member must be calculated by dividing the total number of pension units to which eligible members are entitled into the excess investment income available for distribution to members, and then multiplying that result by the number of units to which each eligible member is entitled to determine each eligible member's annual postretirement payment. Payment to each eligible member may not exceed an amount equal to the total monthly benefit that the eligible member was entitled to in the prior year under the terms of the benefit plan of the relief association or each eligible member's proportionate share of the excess investment income, whichever is less.

Sec. 13. [EFFECTIVE DATE.]

Sections 1 to 12 are effective the day following final enactment and apply to aid payments beginning in calendar year 1996.

ADMINISTRATIVE PROVISIONS RELATING TO THE

AMBULANCE SERVICE PERSONNEL LONGEVITY

AWARD PROGRAM

Section 1. Minnesota Statutes 1994, section 144C.06, is amended to read:

144C.06 [TRUST ACCOUNT INVESTMENT.]

The trust account must be invested by the state board of investment in nonretirement funds established under the provisions of section 11A.14. The trust account must be invested in investment accounts so that the asset allocation is similar to the asset allocation of the income share account of the Minnesota supplemental investment fund, as provided in governed by section 11A.20 11A.17.

Sec. 2. Minnesota Statutes 1995 Supplement, section 144C.07, subdivision 2, is amended to read:

Subd. 2. [POTENTIAL ALLOCATIONS.] (a) On September November 1, annually, the board or the board's designee under section 144C.01, subdivision 2, shall determine the amount of the allocation of the prior year's accumulation to each qualified ambulance service person. The prior year's net investment gain or loss under paragraph (b) must be allocated and that year's general fund appropriation, plus any transfer from the suspense account under section 144C.03, subdivision 2, and after deduction of administrative expenses, also must be allocated.

(b) The difference in the market value of the assets of the ambulance service personnel longevity award and incentive trust account as of the immediately previous June 30 and the June 30 occurring 12 months earlier must be reported on or before August 15 by the state board of investment. The market value gain or loss must be expressed as a percentage of the total potential award accumulations as of the immediately previous June 30, and that positive or negative percentage must be applied to increase or decrease the recorded potential award accumulation of each qualified ambulance service person.

(c) The appropriation for this purpose, after deduction of administrative expenses, must be divided by the total number of additional ambulance service personnel years of service recognized since the last allocation or 1,000 years of service, whichever is greater. If the allocation is based on the 1,000 years of service, any allocation not made for a qualified ambulance service person must be credited to the suspense account under section 144C.03, subdivision 2. A qualified ambulance service person must be credited with a year of service if the person is certified by the chief administrative officer of the ambulance service as having rendered active ambulance service during the 12 months

ending as of the immediately previous June 30. If the person has rendered prior active ambulance service, the person must be additionally credited with one-fifth of a year of service for each year of active ambulance service rendered before June 30, 1993, but not to exceed in any year one additional year of service or to exceed in total five years of prior service. Prior active ambulance service means employment by or the provision of service to a licensed ambulance service before June 30, 1993, as determined by the person's current ambulance service based on records provided by the person that were contemporaneous to the service. The prior ambulance service must be reported on or before August 15 1 to the board in an affidavit from the chief administrative officer of the ambulance service.

Sec. 3. Minnesota Statutes 1995 Supplement, section 144C.08, is amended to read:

144C.08 [AMBULANCE SERVICE PERSONNEL LONGEVITY AWARD.]

(a) A qualified ambulance service person who has terminated active ambulance service, who has at least five years of credited ambulance service, who is at least 50 years old, and who is among the 400 persons with the greatest amount of credited ambulance service applying for a longevity award during that year, is entitled, upon application, to an ambulance service personnel longevity award. An applicant whose application is not approved because of the limit on the number of annual awards may apply in a subsequent year.

(b) If a qualified ambulance service person who meets the age and service requirements specified in paragraph (a) dies before applying for a longevity award, the estate of the decedent is entitled, upon application, to the decedent's ambulance service personnel longevity award, without reference to the limit on the number of annual awards.

(c) An ambulance service personnel longevity award is the total amount of the person's accumulations indicated in the person's separate record under section 144C.07 as of the August 15 preceding the application November 1 in the calendar year in which application is made. The amount is payable only in a lump sum.

(d) Applications for an ambulance service personnel longevity award must be received by the board or the board's designee under section 144C.01, subdivision 2, by August 15 October 1, annually. Ambulance service personnel longevity awards are payable only as of the last business day in October December annually.

Sec. 4. [EFFECTIVE DATE.]

(a) Sections 1 to 3 are effective July 1, 1996.

(b) Any investments of the ambulance service personnel longevity award and incentive trust account made before July 1, 1996, may be retained in the trust account after June 30, 1996, until, in its judgment, the state board of investment determines that it is appropriate to liquidate those prior holdings.

PUBLIC EMPLOYEES DEFINED CONTRIBUTION PLAN

COVERAGE OPTION FOR LOCAL GOVERNMENT PHYSICIANS

Section 1. Minnesota Statutes 1994, section 353D.01, subdivision 2, is amended to read:

Subd. 2. [ELIGIBILITY.] Except as provided in section 353D.11, (a) Eligibility to participate in the defined contribution plan is open available to an:

(1) elected local government official officials of a governmental subdivision who elects elect to participate in the plan under section 353D.02, subdivision 1, and who, for the elected service rendered to a governmental subdivision, is are not a member members of the public employees retirement association within the meaning of section 353.01, subdivision 7,;

(2) physicians who, if they did not elect to participate in the plan under section 353D.02, subdivision 2, would meet the definition of member under section 353.01, subdivision 7; and to

(3) basic and advanced life support emergency medical service personnel employed by or providing services for any public ambulance service or privately operated ambulance service that receives an operating subsidy from a governmental entity that elects to participate under section 353D.02, subdivision 3.

(b) For purposes of this chapter, an elected local government official includes a person appointed to fill a vacancy in an elective office. Service as an elected local government official only includes service for the governmental subdivision for which the official was elected by the public-at-large. Service as an elected local government official ceases and eligibility to participate terminates when the person ceases to be an elected official. An elected local government official does not include an elected county sheriff.

Except as provided in section 353D.11, (c) Elected local government officials, physicians, and first response personnel and emergency medical service personnel who are currently covered by a public or private pension plan because of their employment or provision of services are not eligible to participate in the public employees defined contribution plan.

(d) A former participant is a person who has ceased to be an elected local government official or an emergency medical service employee and who terminated eligible employment or service and has not withdrawn the value of an the person's individual account.

Sec. 2. Minnesota Statutes 1994, section 353D.02, is amended to read:

353D.02 [ELECTION OF COVERAGE.]

Subdivision 1. [ELECTED LOCAL GOVERNMENT OFFICIALS.] Eligible elected local government officials may elect to participate in the defined contribution plan after being elected or appointed to elective public office by filing a membership application on a form prescribed by the executive director of the association authorizing contributions to be deducted from the elected official's salary. Participation begins on the first day of the pay period for which the contributions were deducted or, if pay period coverage dates are not provided, the date on which the membership application or contributions are received in the office of the association, whichever is received first, provided further that the membership application is received by the association within 60 days of the receipt of the contributions. An election to participate in the plan is revocable during incumbency.

Subd. 2. [ELIGIBLE PHYSICIAN.] Eligible physicians may elect to participate in the defined contribution plan within 90 days of commencing employment with a government subdivision under section 353.01, subdivision 6, by filing a membership application on a form prescribed by the executive director of the association authorizing contributions to be deducted from the physician's salary. Participation begins on the first day of the pay period for which the contributions were deducted. An election to participate in the defined contribution plan is irrevocable.

Subd. 3. [ELIGIBLE AMBULANCE SERVICE PERSONNEL.] Each public ambulance service or privately operated ambulance service with eligible personnel that receives an operating subsidy from a governmental entity may elect to participate in the plan. If a service elects to participate, its eligible personnel may elect to participate or to decline to participate. An individual's election must be made within 30 days of the service's election to participate or 30 days of the date on which the individual was employed by the service or began to provide service for it, whichever date is later. An election by a service or an individual is revocable.

Sec. 3. Minnesota Statutes 1994, section 353D.03, is amended to read:

353D.03 [FUNDING OF PLAN.]

(a) Subdivision 1. [LOCAL GOVERNMENT OFFICIAL CONTRIBUTION.] An eligible elected local government official who elects to participate in the public employees defined contribution plan shall contribute an amount equal to five percent of salary as defined in section 353.01, subdivision 10. A participating elected local government official's governmental subdivision shall contribute a matching amount.

(b) Subd. 2. [PHYSICIAN CONTRIBUTION.] An eligible physician who elects to participate in the plan shall contribute an amount equal to five percent of salary as defined in section 353.01, subdivision 10. The employer shall contribute a matching amount.

Subd. 3. [AMBULANCE SERVICE PERSONNEL CONTRIBUTION.] A public ambulance service or privately operated ambulance service that receives an operating subsidy from a governmental entity that elects to participate in the plan shall fund benefits for its qualified personnel who individually elect to participate. Personnel who are paid for their services may elect to make member contributions in an amount not to exceed the service's contribution on their behalf. Ambulance service contributions on behalf of salaried employees must be a fixed percentage of salary. An ambulance service making contributions for volunteer or largely uncompensated personnel may assign a unit value for each call or each period of alert duty for the purpose of calculating ambulance service contributions.

(c) Subd. 4. [PAYMENTS BY FORMER ELIGIBLE ELECTED OFFICIALS.] Former participants eligible elected local government officials in the defined contribution plan under this chapter shall not contribute to the plan except under section 353D.12.

Sec. 4. Minnesota Statutes 1994, section 353D.04, is amended to read:

353D.04 [CONTRIBUTIONS AND DEDUCTIONS IN ERROR.]

(a) Subdivision 1. [CREDITING OF ACCOUNT.] Contributions made by or on behalf of a participating elected local government official or physician must be remitted to the public employees retirement association and credited to the individual account established for the participant. (b) Ambulance service contributions must be remitted on a regular basis to the association together with any member contributions paid or withheld. Those contributions must be credited to the individual account of each participating member.

Subd. 2. [AUTHORITY TO ADOPT POLICIES.] The executive director may adopt policies and procedures regarding deductions taken totally or partially in error by the employer from the salary of an elected official.

Sec. 5. [CURRENT ELIGIBLE PHYSICIANS.]

Subdivision 1. [EXERCISE OF OPTION.] As of the effective date of this section, an eligible physician, who with respect to current service is participating in the general employees defined benefit plan administered by the public employees retirement association, may elect to participate in the public employees defined contribution plan and terminate further participation in the general employees defined benefit plan. The necessary election must be made within six months after the effective date of this section.

Subd. 2. [REFUND OR DEFERRED ANNUITY.] An eligible physician, who elects to transfer coverage under subdivision 1, is deemed to have terminated public service for purposes of Minnesota Statutes, section 353.34. The termination of public service is deemed to occur as of the first day of the month following the month in which the election is made to participate in the public employees defined contribution plan and any refund of accumulated employee deductions, with interest, or future deferred annuity is governed by the law in effect on that day.

Sec. 6. [DEFINED CONTRIBUTION AND DEFINED BENEFIT PLAN STUDY.]

The legislative commission on pensions and retirement shall report to the legislature by February 15, 1997, on the relative advantages and disadvantages, including any federal taxation considerations, of defined benefit pension plans and of defined contribution pension plans.

Sec. 7. [REPEALER.]

Minnesota Statutes 1994, section 353D.11, is repealed.

Sec. 8. [EFFECTIVE DATE.]

Sections 1 to 7 are effective the day following final enactment.

INDIVIDUAL RETIREMENT ACCOUNT PLANS DEFINED

CONTRIBUTION PLAN COVERAGE FOR HISTORICAL

SOCIETY EMPLOYEES

Section 1. Minnesota Statutes 1995 Supplement, section 354D.02, subdivision 2, is amended to read:

Subd. 2. [ELIGIBILITY.] Eligible employees are:

(1) any supervisory or professional employee of the state arts board; and

(2) any supervisory or professional employee of the Minnesota humanities commission; or

(3) any employee of the Minnesota historical society.

Sec. 2. Minnesota Statutes 1995 Supplement, section 354D.03, is amended to read:

354D.03 [SOCIAL SECURITY COVERAGE.]

Plan participants remain are members of the general state retirement plan for purposes of social security coverage only remain, and are covered by the applicable agreement entered into under section 355.02 but are not members of the general state retirement plan for any other purpose while employed in covered employment.

Sec. 3. Minnesota Statutes 1995 Supplement, section 354D.04, is amended to read:

354D.04 [PLAN COVERAGE.]

An election made under this section is irrevocable. Eligible employees under section 354D.02, subdivision 2, shall elect to participate in either the individual retirement account plan or their respective retirement plan as follows:

(1) An eligible employee first employed after the effective date of Laws 1994, chapter 508, in covered employment with no prior allowable service as a member of the Minnesota state retirement system, the public employees retirement association, or the teachers retirement association may elect retirement coverage under either their respective state retirement plan or the individual retirement account plan within 60 days of the start of covered employment. An election made under this subdivision is irrevocable.

(2) An eligible employee with prior allowable service as a member of the Minnesota state retirement system, the public employees retirement association, or the teachers retirement association may elect prospective coverage by the individual retirement account plan. If individual retirement account plan coverage is elected, accumulated employer and employee contributions and allowable service credit shall remain with the applicable retirement association or system. Notwithstanding any provision of law to the contrary, an individual who has transferred coverage for the same employment to the individual retirement account plan is entitled to an augmented deferred retirement annuity from the prior plan based on the amount representing the employer and employee contributions made on the individual's behalf in the retirement association or system in which the individual was formerly enrolled without regard to whether or not the individual meets the service credit vesting requirements of the applicable retirement association or system. An election made under this subdivision clause must be made within 120 days and is irrevocable following the date the eligible employee first becomes eligible to make the election.

Sec. 4. Minnesota Statutes 1995 Supplement, section 354D.06, is amended to read:

354D.06 [ADMINISTRATION.]

(a) The Minnesota state university system or its successor shall administer the individual retirement account plan for eligible employees listed in section 354D.02, subdivision 2, clauses (1) and (2), in accordance with sections 354B.01 to 354B.05.

(b) The Minnesota historical society or its successor shall administer the individual retirement account plan for eligible employees listed in section 354D.02, subdivision 2, clause (3), in accordance with section 354D.08.

Sec. 5. [354D.08] [INDIVIDUAL RETIREMENT ACCOUNT PLAN ADMINISTRATION; MINNESOTA HISTORICAL SOCIETY.]

Subdivision 1. [GENERAL GOVERNANCE.] The Minnesota historical society is the plan administrator and has the administrative responsibility for the individual retirement account plan for those eligible employees listed in section 354D.02, subdivision 2, clause (3).

Subd. 2. [ANNUITY CONTRACTS AND CUSTODIAL ACCOUNTS.] (a) The plan administrator shall arrange for the purchase of fixed annuity contracts, variable annuity contracts, a combination of fixed and variable annuity contracts, or custodial accounts from financial institutions which have been selected by the state board of investment and approved by the plan administrator under subdivision 3, as the investment vehicle for the retirement coverage of plan participants and to provide retirement benefits to plan participants. Custodial accounts from financial institutions shall include open-end investment companies registered under the federal Investment Company Act of 1940, as amended.

(b) The annuity contracts or accounts must be purchased with contributions under section 354D.05, or with money or assets otherwise provided by law by authority of the Minnesota historical society and deemed acceptable by the applicable financial institution.

Subd. 3. [SELECTION OF FINANCIAL INSTITUTIONS.] The plan administrator may approve up to two financial institutions selected by the state board of investment under section 354B.25, subdivision 3, to provide annuity products and custodial accounts for those employees listed in section 354D.02, subdivision 2, clause (3). Only those financial institutions selected by the state board of investment and approved by the plan administrator may provide annuity products and custodial accounts for those employees listed in section 354D.02, subdivision 2, clause (3).

The state board of investment must periodically review at least every three years each financial institution selected. The state board of investment may retain consulting services to assist in the periodic review, may establish a budget for its costs in the periodic review process, and may charge a proportional share of those costs to each financial institution selected. All contracts must be approved by the state board of investment before execution by the Minnesota historical society. The state board of investment shall also establish policies and procedures under section 11A.04, clause (2), to carry out this subdivision.

Subd. 4. [BENEFIT OWNERSHIP.] The retirement benefits provided by the annuity contracts and custodial accounts of the individual retirement account plan are held for the benefit of plan participants and must be paid according to this chapter and the plan document.

Subd. 5. [INDIVIDUAL RETIREMENT ACCOUNT PLAN ADMINISTRATIVE EXPENSES; MINNESOTA HISTORICAL SOCIETY.] (a) The reasonable and necessary administrative expenses of the individual retirement account plan for those employees enumerated in section 354D.02, subdivision 2, clause (3), must be paid by plan participants. The plan administrator may charge to plan participants purchasing annuity contracts and custodial accounts pursuant to subdivision 2, paragraph (a), an administrative expenses assessment of a designated amount, not to exceed two percent of member and employer contributions, as those contributions are made.

(b) Any administrative expense charge that is not actually needed for the administrative expenses of the individual retirement account plan must be refunded to member accounts.

Sec. 6. [EFFECTIVE DATE.]

Sections 1 to 5 are effective the day following final enactment.

Section 1. Minnesota Statutes 1994, section 424A.001, is amended by adding a subdivision to read:

Subd. 8. [FIREFIGHTING SERVICE.] "Firefighting service," if the applicable municipality approves for a fire department that is a municipal department, or if the contracting municipality or municipalities approve for a fire department that is an independent nonprofit firefighting corporation, includes service rendered by fire prevention personnel.

Sec. 2. Minnesota Statutes 1994, section 424A.001, is amended by adding a subdivision to read:

Subd. 9. [SEPARATE FROM ACTIVE SERVICE.] "Separate from active service" means to cease to perform fire suppression duties, to cease to perform fire prevention duties, to cease to supervise fire suppression duties, and to cease to supervise fire prevention duties.

Sec. 3. Minnesota Statutes 1994, section 424A.01, is amended by adding a subdivision to read:

Subd. 5. [FIRE PREVENTION PERSONNEL.] (a) If the fire department is a municipal department and the applicable municipality approves, or if the fire department is an independent nonprofit firefighting corporation and the contracting municipality or municipalities approve, the fire department may employ or otherwise utilize the services of persons as volunteer firefighters to perform fire prevention duties and to supervise fire prevention activities.

(b) Personnel serving in fire prevention positions are eligible to be members of the applicable volunteer firefighter relief association and to qualify for service pension or other benefit coverage of the relief association on the same basis as fire department personnel who perform fire suppression duties.

(c) Personnel serving in fire prevention positions also are eligible to receive any other benefits under the applicable law or practice for services on the same basis as personnel employed to perform fire suppression duties.

Sec. 4. Minnesota Statutes 1994, section 424A.02, subdivision 1, is amended to read:

Subdivision 1. [AUTHORIZATION.] (a) A relief association, when its articles of incorporation or bylaws so provide, may pay out of the assets of its special fund a service pension to each of its members who: (1) separates from active service with the fire department; (2) reaches age 50; (3) completes at least five years of active service as an active member of the municipal fire department to which the relief association is associated; (4) completes at least five years of active membership with the relief association before separation from active service; and (5) complies with any additional conditions as to age, service, and membership that are prescribed by the bylaws of the relief association. A service pension computed under this section may be prorated monthly for fractional years of service, if the bylaws or articles of incorporation of the relief association so provide. The service pension may be paid whether or not the municipality or nonprofit firefighting corporation to which the relief association is associated qualifies for fire state aid under chapter 69.

(b) In the case of a member who has completed at least five years of active service as an active member of the fire department to which the relief association is associated on the date that the relief association is established and incorporated, the requirement that the member complete at least five years of active membership with the relief association before separation from active service may be waived by the board of trustees of the relief association if the member completes at least five years of inactive membership with the relief association before the payment of the service pension. During the period of inactive membership, the member is not entitled to receive disability benefit coverage, is not entitled to receive additional service credit towards computation of a service pension, and is considered to have the status of a person entitled to a deferred service pension under subdivision 7.

(c) No municipality or nonprofit firefighting corporation may delegate the power to take final action in setting a service pension or ancillary benefit amount or level to the board of trustees of the relief association or to approve in advance a service pension or ancillary benefit amount or level equal to the maximum amount or level that this chapter would allow rather than a specific dollar amount or level.

(d) No relief association as defined in section 424A.001, subdivision 4, may pay a service pension or disability benefit to a former member of the relief association if that person has not separated from active service with the fire department to which the relief association is directly associated.

For the purposes of this chapter, "to separate from active service" means to cease to perform fire suppression duties and to cease to supervise fire suppression duties.

Sec. 5. [EFFECTIVE DATE.]

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

SERVICE CREDIT DEADLINE EXTENSIONS

AND PURCHASES

Section 1. Laws 1995, chapter 252, article 1, section 16, is amended to read:

Sec. 16. [RETROACTIVE PROVISIONS.]

(a) A teacher who had at least three years of allowable service credit under Minnesota Statutes, chapter 354 or 354A, on July 1, 1994, and who worked part-time between July 1, 1994, and June 30, 1995, may be allowed to make contributions to and accrue allowable service credit in the applicable retirement fund, as if the teacher had been working full time, as provided in Minnesota Statutes, sections 354.66, subdivision 4, and 354A.094, subdivision 4, for service after July 1, 1994, and before June 30, 1995. If a teacher described in this paragraph wishes to obtain allowable service credit as if the teacher had been working full time for the period from July 1, 1994, to June 30, 1995, the teacher must:

(1) make a lump sum payment to the applicable pension fund within 60 days after the effective date of this section before August 2, 1996, with respect to the St. Paul teachers retirement fund association, or before August 2, 1995, with respect to any other teacher retirement plan, of the difference between the amount of the employer and employee

contributions to the pension fund that would have been paid if the teacher had been working full time, and that amount that was actually paid for part-time service during that period; and

(2) submit to the association a letter or other document from the board of the teacher's employing district stating that the board would have agreed to the teacher's participation in the part-time mobility program during the 1994-1995 school year but for the requirement then in effect that the district make the full employer contribution to the retirement fund for teachers with 20 or more years of service, based on the compensation that would have been paid if the teacher had been employed on a full-time basis.

(b) An employer of a teacher covered by paragraph (a) must notify the teacher of the option available under paragraph (a) in writing within 30 days of the effective date of this section before July 3, 1996, with respect to the St. Paul teachers retirement fund association, or before July 3, 1995, with respect to any other teacher retirement plan.

(c) With respect to the St. Paul teachers retirement fund association, any payment must include compound interest at an annual rate of 8.5 percent from August 3, 1995, to the date on which payment is made.

Sec. 2. [PURCHASE OF PRIOR SERVICE CREDIT, WILLMAR REGIONAL TREATMENT CENTER EMPLOYEES.]

Subdivision 1. [ELIGIBILITY.] (a) The legislature determines that the period of service referenced in paragraph (c), clause (3), although involving a termination from state service, was undertaken with a mutual expectation that the person would be rehired after the educational period was completed, was undertaken in connection with a state stipend, and constituted in fact an educational leave of absence for the affected person.

(b) Notwithstanding any provision of Minnesota Statutes, section 352.01, subdivision 11, to the contrary, an eligible person described in paragraph (c) is entitled to purchase allowable service credit in the Minnesota state retirement system general plan for the period described in paragraph (d) by paying the amount specified in subdivision 2.

(c) An eligible person is a person who:

(1) is a current member of the Minnesota state retirement system general plan;

(2) is currently employed by the Willmar regional treatment center;

(3) resigned from state service in order to attend the University of Michigan, Ann Arbor, between January 1967 and April 1968 and received a stipend from the Minnesota department of welfare during this period; and

(4) was reemployed by that department with a requirement that the individual provide a minimum period of additional service.

(d) The period of service credit purchase is one year, beginning with the start of the schooling or training in paragraph (c), clause (3).

Subd. 2. [PURCHASE PAYMENT AMOUNT.] (a) To purchase service credit for the period specified in subdivision 1, paragraph (d), an eligible individual must pay to the Minnesota state retirement system general plan an amount computed under Minnesota Statutes, section 352.01, subdivision 11, clause (9), except that the applicable contribution rates and the employee salary rate are those in effect upon reemployment after the period of schooling. Interest charges must be computed from the date of reemployment until paid.

(b) To be entitled to make the payment specified in paragraph (a), the individual must establish in the records of the retirement plan that the eligibility requirements in subdivision 1 are satisfied. The manner of proof must be in accordance with procedures prescribed by the executive director of the Minnesota state retirement system.

Subd. 3. [PURCHASE PAYMENT FORM.] The purchase payment amount under subdivision 2 is payable by an eligible individual under subdivision 1 within 180 days of the effective date of this section, or prior to retirement from the Minnesota state retirement system general plan, whichever is earlier.

Subd. 4. [SERVICE CREDIT GRANT.] Service credit for the purchase period must be granted to the account of the eligible person upon receipt of the purchase payment amount specified in subdivision 2.

Sec. 3. [INDEPENDENT SCHOOL DISTRICT NO. 553, NEW YORK MILLS; PART-TIME TEACHER RETIREMENT COVERAGE PROGRAM DEADLINE EXTENSION.]

(a) Notwithstanding any provision of Minnesota Statutes, section 354.66, to the contrary, the teachers retirement association must accept the application for full-time retirement coverage filed by independent school district No. 553, New York Mills, on or about October 13, 1995, for a person who:

(1) was born on May 16, 1945;

(2) was initially hired by the school district in 1968;

(3) served in the military from school years 1969-1970 to 1972-1973; and

(4) began work as a part-time computer technology teacher on July 1, 1995.

A person who meets the requirements of clauses (1) to (4) is entitled to full-time teacher retirement association coverage under Minnesota Statutes, section 354.66, for the 1995-1996 school year if all other conditions of that section are met beyond the failure of the school district to timely file the application.

(b) A person who meets the requirements of paragraph (a), clauses (1) to (4), for teaching services shall pay the applicable employee contribution under Minnesota Statutes, section 354.42, subdivision 1, on the difference between the amount actually deducted from the person's compensation and the amount of the person's full-time equivalent salary under Minnesota Statutes, section 354.66, subdivision 4.

(c) Independent school district No. 553, New York Mills, shall pay the applicable employer and additional employer contributions under Minnesota Statutes, section 354.42, subdivisions 3 and 5, on the person's full-time equivalent salary, plus interest at the rate of 8.5 percent. The school district shall also pay interest at the rate of 8.5 percent on the difference between the employee contributions actually deducted from compensation and the amount of the person's full-time equivalent salary under paragraph (b).

(d) The payments under paragraphs (b) and (c) must each be made in a lump sum to the teachers retirement association before June 30, 1996. If payment is made on an earlier date, interest must be calculated to the end of the month in which payment is made.

Sec. 4. [MINNEAPOLIS TEACHERS RETIREMENT FUND ASSOCIATION; ELIGIBILITY IN PART-TIME TEACHING PROGRAM FOR CERTAIN PART-TIME TEACHERS.]

Notwithstanding any provision of Minnesota Statutes 1994, section 354A.094, to the contrary, teachers in special school district No. 1, Minneapolis, who were granted a part-time position under Minnesota Statutes, section 354A.094, after June 30, 1994, but who were compensated in an amount that exceeded 67 percent of the compensation rate established by the board for a full-time teacher with identical education and experience within the district and who applied for and were approved by special school district No. 1, Minneapolis, for the 1994-1995 school year to participate in the qualified part-time teacher program must be allowed to make, by June 30, 1996, the full-time employee and employer contribution for the 1994-1995 school year and receive service credit from the Minneapolis teachers retirement fund association in amounts according to those prescribed in Minnesota Statutes, sections 354A.094 and 354A.12.

Sec. 5. [MINNEAPOLIS TEACHERS RETIREMENT FUND ASSOCIATION; PURCHASE OF PRIOR SERVICE CREDIT.]

Subdivision 1. [ELIGIBILITY; FORMER MINNEAPOLIS TEACHER.] (a) Notwithstanding Laws 1992, chapter 598, article 6, section 19, an eligible person who was:

(1) born on January 4, 1930;

(2) employed as a typing teacher in the adult education program at Bryant junior high school in Minneapolis in September 1969;

(3) employed as a reserve teacher in special school district No. 1 from January 1, 1970, until May 30, 1970; and

(4) employed from June 1, 1970, to 1978, as a business education teacher at the occupational skills training center in Minneapolis;

may purchase allowable service credit in the basic program of the Minneapolis teachers retirement fund association for the period described in paragraph (b) by paying the amount specified in subdivision 3.

(b) The service credit purchase is for the period or periods of uncovered eligible service from September 1969 until the commencement of Minneapolis teachers retirement association fund coverage in 1974 for which membership was mandatory, or for which coverage was at the employee's option, unless it can be demonstrated that the person described in paragraph (a) waived that coverage.

Subd. 2. [PURCHASE PAYMENT AMOUNT.] (a) To purchase credit for prior eligible service under subdivision 1, there must be paid to the Minneapolis teachers retirement fund association an amount equal to the present value of the amount of the additional retirement annuity obtained by purchase of the additional service credit.

(b) Calculation of this amount must be made by the executive director of the Minneapolis teachers retirement fund association using the applicable preretirement interest rate specified in Minnesota Statutes, section 356.215, subdivision 4d, and the mortality table adopted for the retirement association. The calculation must assume retirement at the age at which the minimum requirements of the retirement association for normal retirement, or retirement with an annuity unreduced for retirement at an early age, including Minnesota Statutes, section 356.30, are met with the additional service credit purchased.

(c) The person making the purchase must establish in the records of the association proof of the service for which the purchase of prior service is requested. The manner of the proof of service must be in accordance with procedures prescribed by the executive director of the retirement association.

(d) Payment of the amount calculated under this subdivision is the obligation of the eligible individual in subdivision 1 and must be made prior to July 1, 1996, in a lump sum. However, the current or former employer of the eligible individual may, at its discretion, pay all or any portion of the payment amount that exceeds an amount equal to the employee contribution rates in effect during the period or periods of prior service applied to the actual salary rates in effect during the period or periods of prior service, plus interest at the rate of 8.5 percent per year compounded annually from the date on which the contributions would otherwise have been made to the date on which the payment is made. If the employer agrees to payments under this paragraph, the employee must make the employee payments required under this paragraph prior to July 1, 1996. If that employee payment is made, the employing unit payment under this paragraph must be remitted to the executive director of the retirement association within 60 days of receipt by the executive director of the employee payments specified under this paragraph.

Subd. 3. [SERVICE CREDIT GRANT.] Service credit for the purchase period or periods must be granted to the account of the eligible person upon receipt of the purchase payment amount specified in subdivision 2.

Sec. 6. [REPEALER.]

Laws 1990, chapter 570, article 13, section 1, subdivision 5, is repealed.

Sec. 7. [EFFECTIVE DATE.]

Sections 1 to 6 are effective the day following final enactment."

Delete the title and insert:

"A bill for an act relating to retirement; various Minnesota public pension plans; making various benefit and coverage modifications; redirecting various state pension aids to certain first class city teachers retirement fund associations; requiring certain school district employer contribution increases; making various administrative modifications; amending Minnesota Statutes 1994, sections 3A.04, subdivision 4; 124.916, subdivision 3; 144C.06; 352.04, subdivision 8; 352.95, subdivision 2; 352B.10, subdivision 2; 352B.11, subdivision 1; 352C.09, by adding a subdivision; 353D.01, subdivision 2; 353D.02; 353D.03; 353D.04; 354.44, subdivisions 3 and 4; 354A.12, subdivisions 2, 3a, 3c, and by adding subdivisions; 423A.02, by adding a subdivision; 423B.01, subdivision 9; 423B.15, subdivision 3; 424A.001, by adding subdivisions; 424A.01, by adding a subdivision; 424A.02, subdivision 1; and 490.124, by adding a subdivision; Minnesota Statutes 1995 Supplement, sections 144C.07, subdivision 2; 144C.08; 354A.12, subdivision 3b; 354D.02, subdivision 2; 354D.03; 354D.04; and 354D.06; Laws 1989, chapter 319, article 19, section 7, subdivisions 1,

as amended and 4, as amended; and Laws 1995, chapter 252, article 1, section 16; proposing coding for new law in Minnesota Statutes, chapter 354D; repealing Minnesota Statutes 1994, section 353D.11; Laws 1990, chapter 570, article 13, section 1, subdivision 5."

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.

Rest from the Committee on Taxes to which was referred:

H. F. No. 2420, A bill for an act relating to cities; authorizing the cities of Duluth, Proctor, Cloquet, Hermantown, Scanlon, and Thompson to establish a program to prevent the inflow and infiltration of storm water into each city's sanitary sewer system; authorizing each city to make loans and grants to property owners in connection with the program; providing for financing of the program.

Reported the same back without recommendation.

The report was adopted.

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

H. F. No. 2439, A bill for an act relating to highways; designating the Czech Heritage Highway; amending Minnesota Statutes 1994, section 161.14, by adding a subdivision.

Reported the same back with the following amendments:

Page 1, line 10, delete the period and after the second quotation mark insert "or another name reflecting the area's Czech heritage that is agreed on by the city councils of New Prague and Montgomery."

Amend the title as follows:

Page 1, line 2, delete everything after the semicolon

Page 1, line 3, delete everything before the semicolon and insert "recognizing our Czech heritage in a highway name"

With the recommendation that when so amended the bill pass and be re-referred to the Committee on Economic Development, Infrastructure and Regulation Finance.

The report was adopted.

Skoglund from the Committee on Judiciary to which was referred:

H. F. No. 2495, A bill for an act relating to crime prevention; increasing the school district levy for crime-related costs from $1 to $3 and permitting use of the levy to pay for gang resistance education; creating a gang resistance education training pilot program; appropriating money for the witness and victim protection fund and for the gang resistance education pilot program; amending Minnesota Statutes 1994, section 124.912, subdivision 6.

Reported the same back with the following amendments:

Page 2, line 4, delete ", as described in section 2,"

Pages 2 and 3, delete sections 2 and 3

Amend the title as follows:

Page 1, line 5, delete everything after the semicolon

Page 1, delete lines 6 and 7

Page 1, line 8, delete everything before "amending"

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

The report was adopted.

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

H. F. No. 2496, A bill for an act relating to metropolitan council transit; providing for the metropolitan council transit operations to be subject to special assessments; amending Minnesota Statutes 1995 Supplement, section 473.448.

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

The report was adopted.

Rice from the Committee on Economic Development, Infrastructure and Regulation Finance to which was referred:

H. F. No. 2507, A bill for an act relating to port development; authorizing the issuance of bonds; appropriating money for port development.

Reported the same back with the following amendments:

Page 1, lines 6 and 16, delete "$......." and insert "$5,334,000"

Page 1, line 9, after "subdivisions" insert "or port authorities"

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

The report was adopted.

Skoglund from the Committee on Judiciary to which was referred:

H. F. No. 2509, A bill for an act relating to public nuisance; clarifying definition of acts constituting a nuisance; amending Minnesota Statutes 1995 Supplement, section 617.81, subdivision 2.

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

The report was adopted.

Skoglund from the Committee on Judiciary to which was referred:

H. F. No. 2533, A bill for an act relating to evidence; allowing the introduction of police reports as evidence in forcible entry and unlawful detains actions to recover possession of premises; amending Minnesota Statutes 1994, section 566.07.

Reported the same back with the following amendments:

Page 1, delete section 1 and insert:

"Section 1. Minnesota Statutes 1994, section 566.07, is amended to read:

566.07 [ANSWER; TRIAL.]

After the return of the summons, at the time and place appointed therein, the defendant, on appearing, may answer the complaint, and all matters in excuse, justification, or avoidance of the allegations thereof shall be set up in the answer; and thereupon the court shall hear and determine the action, unless it shall adjourn the trial as provided in section 566.08, but either party may demand a trial by jury. The proceedings in such action shall be the same as in other civil actions, except as in this chapter otherwise provided. The in court testimony of sworn peace officers which recite the personal observations and experiences of reliable and confidential informants is admissible with respect to facts relevant and material to the determination of such action by the court, without disclosing the identity or facts from which the identity of such informant could be determined, and without a showing that such informant is unavailable. The court, in scheduling appearances and hearings under this section, 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."

Amend the title as follows:

Page 1, line 4, delete "detains" and insert "detainer"

With the recommendation that when so amended the bill pass.

The report was adopted.

Anderson, R., from the Committee on Health and Human Services to which was referred:

H. F. No. 2558, A bill for an act relating to professions; modifying provisions governing the practice of nursing; amending Minnesota Statutes 1994, section 148.231, subdivision 5; proposing coding for new law in Minnesota Statutes, chapter 148.

Reported the same back with the following amendments:

Page 1, line 25, delete "examining" and insert "evaluating"

With the recommendation that when so amended the bill pass.

The report was adopted.

Anderson, R., from the Committee on Health and Human Services to which was referred:

H. F. No. 2630, A bill for an act relating to health; allowing a director of nursing to serve as a licensed nursing home administrator under certain circumstances; amending Minnesota Statutes 1994, section 144A.04, subdivision 5.

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

The report was adopted.

Anderson, R., from the Committee on Health and Human Services to which was referred:

H. F. No. 2633, A bill for an act relating to health professions; modifying provisions relating to sexual misconduct; amending Minnesota Statutes 1994, sections 13.99, subdivision 44; 147.01, subdivision 4; and 147.091, by adding a subdivision; proposing coding for new law in Minnesota Statutes, chapter 147.

Reported the same back with the following amendments:

Page 1, line 15, delete "is" and insert "are"

Page 1, line 16, delete "section" and insert "sections 147.01 and"

Page 1, line 24, delete "privilege" and insert "license"

Page 2, line 1, before "In" insert "(a)"

Page 2, line 5, after "made" insert "to the office of administrative hearings"

Page 2, line 6, after "case" insert "and served upon the board upon filing" and delete everything after the period

Page 2, line 7, delete everything before "Any"

Page 2, line 10, after the period, insert "If there is no request for a hearing, the portion of the notice of and order for hearing relating to allegations of sexual misconduct automatically becomes public."

Page 2, line 11, before "The" insert "(b)"

Page 2, line 12, delete "committee" and insert "complaint review committee of the board"

Page 2, lines 13 and 14, delete "this chapter" and insert "section 147.091, subdivision 1, paragraph (t),"

Page 2, line 23, before "Upon" insert "(c)" and delete "the entire" and insert "that portion of the"

Page 2, line 24, after "board" insert "that pertains to the allegations of sexual misconduct, including the factual allegations that support the charge,"

Page 3, line 22, delete "either"

Page 3, line 23, before "the" insert "or"

Page 3, line 34, after the semicolon, insert "and"

With the recommendation that when so amended the bill pass.

The report was adopted.

Clark from the Committee on Housing to which was referred:

H. F. No. 2663, A bill for an act relating to economic development; authorizing the Brooklyn Park economic development authority to establish a distressed housing district and providing the conditions thereof.

Reported the same back with the following amendments:

Page 2, line 1, delete everything after "(iii)" and insert " were converted from home ownership use to rental property use."

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

The report was adopted.

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

H. F. No. 2678, A bill for an act relating to capital improvements; appropriating money to construct the Headwaters science center in the city of Bemidji; authorizing the sale of state bonds.

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

The report was adopted.

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

H. F. No. 2682, A bill for an act relating to employment; modifying provisions governing school conference and activities leave; amending Minnesota Statutes 1994, section 181.9412.

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

The report was adopted.

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

H. F. No. 2692, A bill for an act relating to traffic regulations; exempting first hauls of farm and forest products from certain additional registration taxes when weight restrictions are not exceeded by more than ten percent; allowing use of safety cables on trailers and semitrailers; providing for maximum civil penalties for gross weight violations when not preceded by two or more violations within 12 months; requiring persons who load or unload goods to keep certain records; amending Minnesota Statutes 1994, sections 168.013, subdivision 3; 169.82, subdivision 3; 169.871, by adding a subdivision; and 169.872, subdivision 1.

Reported the same back with the following amendments:

Page 3, line 35, delete ", as defined"

Page 3, line 36, delete everything before "of"

Page 4, line 1, delete "prescribed" and insert "registered gross weight"

Page 4, line 2, delete "maximum weight limitation"

Page 4, line 3, after the period, insert "For purposes of this clause "first haul" means (1) the first, continuous transportation of unprocessed or raw farm products from the place of production or on-farm storage site to any other location within 50 miles of the place of production or on-farm storage site, or (2) the first, continuous transportation of unfinished forest products from the place of production to the place of first unloading."

Page 5, delete section 4

Amend the title as follows:

Page 1, line 9, delete everything after the semicolon

Page 1, line 10, delete everything before "amending"

Page 1, line 12, after "3;" insert "and"

Page 1, line 13, delete "; and 169.872, subdivision 1"

With the recommendation that when so amended the bill pass and be re-referred to the Committee on Economic Development, Infrastructure and Regulation Finance.

The report was adopted.

Anderson, R., from the Committee on Health and Human Services to which was referred:

H. F. No. 2695, A bill for an act relating to health; exempting acupuncturists from dietitian and nutritionist licensing requirements; amending Minnesota Statutes 1994, section 148.632, subdivision 1.

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

The report was adopted.

Wenzel from the Committee on Agriculture to which was referred:

H. F. No. 2696, A bill for an act relating to agriculture; increasing general obligation bond authority of the rural finance authority; amending Minnesota Statutes 1994, section 41B.19, subdivision 1.

Reported the same back with the recommendation that the bill pass and be re-referred to the Committee on Environment and Natural Resources Finance.

The report was adopted.

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

H. F. No. 2728, A bill for an act relating to labor; protecting interests of employees following railroad acquisitions; imposing a penalty; amending Minnesota Statutes 1994, sections 222.86, subdivision 3; 222.87, subdivision 3, and by adding subdivisions; and 222.88.

Reported the same back with the following amendments:

Page 2, line 12, delete "An"

Page 2, delete lines 13 to 16 and insert "Not later than the time at the conferences specified in section 222.86, subdivision 3, the acquiring carrier shall begin negotiations with the accredited union representatives of the affected employees of the divesting carrier to establish fair wages and safe and suitable working conditions for employees to be hired by the acquiring carrier. If agreement is not reached concerning these issues prior to the acquiring carrier being authorized to begin operations, the matter shall immediately be submitted to expedited binding arbitration.

If no agreement is reached, the acquiring carrier succeeds to and is bound by the contracts, agreements, and understandings between the divesting carrier and affected labor organizations until arbitration decision is reached."

With the recommendation that when so amended the bill pass.

The report was adopted.

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

H. F. No. 2735, A bill for an act relating to labor relations; modifying provisions regarding mandatory arbitration for charitable hospital employers and employees; amending Minnesota Statutes 1994, section 179.38.

Reported the same back with the following amendments:

Page 1, lines 18 and 19, delete the new language and insert "concerning terms and conditions of employment as defined in section 179A.03, subdivision 19"

Page 1, line 24, after the period, insert "For public employers, such terms and conditions of employment shall be subject to section 179A.07, subdivision 1."

With the recommendation that when so amended the bill pass.

The report was adopted.

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

H. F. No. 2757, A bill for an act relating to metropolitan government; authorizing the metropolitan airports commission to issue revenue bonds; amending Minnesota Statutes 1994, section 473.608, by adding a subdivision.

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

The report was adopted.

Skoglund from the Committee on Judiciary to which was referred:

H. F. No. 2778, A bill for an act relating to courts; modifying the duties and powers of a referee for the duration of a family court block calendar pilot program.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. [PILOT PROJECT-COMBINED JURISDICTION COURT.]

Notwithstanding sections 260.031, subdivision 4, and 484.70, subdivisions 6 and 7, paragraphs (d) and (e), the second judicial district may implement a pilot project to improve the resolution of family problems by assigning related family, probate, and juvenile court matters, other than delinquency proceedings, to a single judge or referee.

The second judicial district shall report to the supreme court by August 1, 1998, on the effectiveness of the combined jurisdiction court.

Sec. 2. [EFFECTIVE DATE; REPEALER.]

Section 1 is effective the day following final enactment. Section 1 is repealed when the project is completed or June 30, 1998, whichever occurs earlier."

Delete the title and insert:

"A bill for an act relating to courts; authorizing a pilot project court combining family, probate, and juvenile court matters in the second judicial district."

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

The report was adopted.

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

H. F. No. 2780, A bill for an act relating to drivers' licenses; allowing owners of residences to identify who may use the residence address on a driver's license; proposing coding for new law in Minnesota Statutes, chapter 171.

Reported the same back with the following amendments:

Page 1, line 13, delete "other than persons"

Page 1, line 19, delete "not"

With the recommendation that when so amended the bill pass.

The report was adopted.

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

H. F. No. 2783, A bill for an act relating to state government; permitting state employees to donate vacation leave for the benefit of a certain state employee.

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

The report was adopted.

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

H. F. No. 2801, A bill for an act relating to local government finance; creating a local performance aid program; promoting local government efficiency and effectiveness; appropriating money; proposing coding for new law in Minnesota Statutes, chapter 477A.

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

The report was adopted.

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

H. F. No. 2808, A bill for an act relating to local government; revising provisions limiting the compensation of local government officials to a percentage of the governor's salary; amending Minnesota Statutes 1995 Supplement, section 43A.17, subdivision 9.

Reported the same back with the following amendments:

Page 1, after line 7, insert:

"Section 1. Minnesota Statutes 1995 Supplement, 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, state university board, the state board for community colleges, the state board of technical colleges, and the higher education services office shall set the salary rates for, respectively, the chancellor of the higher education system, the chancellor of the state universities, the chancellor of the community colleges, the chancellor of vocational technical education, and the executive director of the higher education services office. The respective board shall submit the proposed salary increase to the legislative coordinating commission for approval, modification, or rejection in the manner provided in section 3.855. Salary rates for the positions specified in this subdivision may not exceed 95 percent of the salary of the governor under section 15A.082, subdivision 3. In deciding whether to recommend a salary increase, the governing board shall consider the performance of the chancellor or director, including the chancellor's or director's progress toward attaining affirmative action goals. The board may provide salary and other compensation that exceeds the limitation in this subdivision if the employment agreement with the higher education officer contains objective, measurable performance criteria and the board is able, under such agreement, to reduce the salary or compensation or terminate the contract if the performance criteria are not satisfied."

Page 1, line 8, delete "Section 1." and insert "Sec. 2."

Page 3, after line 4, insert:

"A political subdivision may provide salary, or other compensation that exceeds the limitation in this subdivision, if the employment agreement with the employee contains objective, measurable performance criteria and the employer is able, under such agreement, to reduce the salary or compensation, or terminate the contract if the performance criteria are not satisfied."

Amend the title as follows:

Page 1, line 5, delete "section" and insert "sections 15A.081, subdivision 7b; and"

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

The report was adopted.

Anderson, R., from the Committee on Health and Human Services to which was referred:

H. F. No. 2811, A bill for an act relating to health; changing the date by which the commissioner of administration must present to the legislature recommendations on private sector administration of the MinnesotaCare program; amending Laws 1995, chapter 234, article 6, section 44.

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

The report was adopted.

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

H. F. No. 2841, A bill for an act relating to employment; modifying provisions regarding minimum wages; increasing penalties; modifying employer liability provisions; imposing a penalty; changing inclusions in earnings statement; amending Minnesota Statutes 1994, sections 177.27, subdivisions 2, 4, and by adding subdivisions; 177.30; and 181.032; proposing coding for new law in Minnesota Statutes, chapter 181; repealing Minnesota Statutes 1994, sections 177.27, subdivision 6; 177.33; and 181.17.

Reported the same back with the following amendments:

Page 3, line 18, after the period, insert "The commissioner may establish escrow accounts for purposes of distributing damages."

Page 4, line 2, delete "shall" and insert "may"

Page 5, line 15, before "name" insert "legal" and after "employer" insert "and the operating name of the employer if different from the legal name"

Page 5, line 23, after "sections" insert "181.02,"

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

The report was adopted.

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

H. F. No. 2846, A bill for an act relating to tax-forfeited lands; authorizing the conveyance of certain tax-forfeited land in Faribault county.

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

The report was adopted.

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

H. F. No. 2867, A bill for an act relating to workers' compensation; modifying provisions governing calculation of premiums; modifying provisions relating to independent contractors; exempting certain rules from expiration; changing terms of a pilot program; making technical changes; amending Minnesota Statutes 1995 Supplement, sections 79.53, subdivision 1; 79.55, subdivision 5; 176.136, subdivision 1a; 176.1812, subdivisions 1 and 6; and 176.261; proposing coding for new law in Minnesota Statutes, chapter 176.

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

The report was adopted.

Clark from the Committee on Housing to which was referred:

H. F. No. 2909, A bill for an act proposing an amendment to the Minnesota Constitution, article XI, section 5; authorizing the issuance of state bonds for housing purposes.

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

The report was adopted.

Clark from the Committee on Housing to which was referred:

H. F. No. 2935, A bill for an act relating to real property; permitting contracts for deed to provide for assignment of rents; clarifying rights of tenants; amending Minnesota Statutes 1994, sections 504.20, subdivisions 3, 4, 5, and 6; and 559.17, subdivision 2.

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

The report was adopted.

Clark from the Committee on Housing to which was referred:

H. F. No. 2943, A bill for an act relating to taxation; providing that the market value of certain apartment property will not be increased for improvements for a certain tax period; amending Minnesota Statutes 1994, section 273.11, by adding a subdivision.

Reported the same back with the following amendments:

Page 3, delete lines 5 to 14 and insert:

"(f) The owner of qualifying property shall certify annually to the Minnesota housing finance agency any rent increase the owner proposes to make for the following year on units located in a qualifying building. The Minnesota housing finance agency shall determine if the proposed rent increase will result in rents that exceed an amount affordable to a family at 60 percent of the metropolitan area median family income. "Affordable" means the family pays no more than 30 percent of its income for rent. If the agency determines that the proposed rent increase will exceed that amount, the agency must notify the owner. The owner must lower the rent increases and recertify to the agency within the time frame established by the agency. The agency shall notify the appropriate county assessor that the property tax benefits of this section are terminated if the owner does not comply in the time permitted."

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

The report was adopted.

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

H. F. No. 2949, A bill for an act relating to transportation; establishing transportation policy for the metropolitan area; requiring a performance audit of the metropolitan transportation system; expanding the metropolitan council's authority over metropolitan area highways; requiring the council to establish a community-based transit demonstration program; providing a service incentive for opt-outs; providing for legislative auditor to prepare a best practices report; requiring the council to prepare a transit redesign plan for 1997; requiring legislative report; appropriating money; amending Minnesota Statutes 1994, sections 174.03, subdivision 5; 473.167, subdivision 1; and 473.388, by adding a subdivision; proposing coding for new law in Minnesota Statutes, chapter 473.

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

The report was adopted.

Wenzel from the Committee on Agriculture to which was referred:

H. F. No. 2982, A bill for an act relating to agriculture; establishing the Minnesota dairy producers board; appropriating money; proposing coding for new law in Minnesota Statutes, chapter 17.

Reported the same back with the following amendments:

Page 1, line 23, delete "11" and insert "17"

Page 1, line 24, delete "Eight" and insert "Thirteen"

Page 1, line 25, after "district" insert "plus one each from the five Minnesota counties representing the greatest milk production in the preceding year" and delete "three" and insert " four"

Page 2, line 3, delete "has" and delete "management" and insert "manages" and delete "operational involvement with" and insert "operates"

Page 2, line 4, delete "family" and after "farm" insert "owned by the person"

Page 2, line 12, after "by" insert "a selection committee of"

Page 2, line 13, after "producers" insert "who in December 1995 prepared documents advocating creation of the dairy producers board"

Page 3, line 28, delete "$......." and insert "$100,000"

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

The report was adopted.

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

H. F. No. 3005, A bill for an act relating to economic security; modifying allocation of workforce investment funds; amending Minnesota Statutes 1994, section 268.022, subdivision 2.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 1994, section 268.022, subdivision 2, is amended to read:

Subd. 2. [DISBURSEMENT OF SPECIAL ASSESSMENT FUNDS.] (a) The money collected under this section shall be deposited in the state treasury and credited to a dedicated fund to provide for the employment and training programs established under sections 268.975 to 268.98; including vocational guidance, training, placement, and job development.

(b) All money in the dedicated fund is appropriated to the commissioner who must act as the fiscal agent for the money and must disburse the money for the purposes of this section, not allowing the money to be used for any other obligation of the state. All money in the dedicated fund shall be deposited, administered, and disbursed in the same manner and under the same conditions and requirements as are provided by law for the other dedicated funds in the state treasury, except that all interest or net income resulting from the investment or deposit of money in the fund shall accrue to the fund for the purposes of the fund.

(c) No more than five percent of the dedicated funds collected in each fiscal year may be used by the department of economic security for its administrative costs.

(d) Reimbursement for costs related to collection of the special assessment shall be in an amount negotiated between the commissioner and the United States Department of Labor.

(e) The dedicated funds, less amounts under paragraphs (c) and (d) shall be allocated as follows:

(1) 40 percent to be allocated annually to substate grantees for provision of expeditious response activities under section 268.9771 and worker adjustment services under section 268.9781; and

(2) 60 45 percent to be allocated to activities and programs authorized under sections 268.975 to 268.98; and

(3) 15 percent to be allocated and equally distributed to the existing authorized nonsubstate grantees, pursuant to section 268.9781, subdivision 2, at the beginning of each program year.

(f) Any funds not allocated, obligated, or expended in a fiscal year shall be available for allocation, obligation, and expenditure in the following fiscal year."

With the recommendation that when so amended the bill pass.

The report was adopted.

H. F. Nos. 1704, 2013, 2068, 2124, 2152, 2153, 2188, 2204, 2222, 2248, 2385, 2410, 2411, 2415, 2420, 2496, 2509, 2533, 2558, 2630, 2633, 2682, 2695, 2728, 2735, 2778, 2780, 2783, 2811, 2846, 2935 and 3005 were read for the second time.

S. F. Nos. 1797 and 1862 were read for the second time.

The following House Files were introduced:

Brown introduced:

H. F. No. 3091, A bill for an act relating to agriculture; creating a program to acquire easements on agricultural lands that were previously in the federal conservation reserve program; authorizing the sale of bonds; appropriating money; proposing coding for new law in Minnesota Statutes, chapter 103F.

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

Orenstein introduced:

H. F. No. 3092, A bill for an act relating to statutory construction; indicating state substantive policy on statutes and court rules pertaining to contributory fault; proposing coding for new law in Minnesota Statutes, chapter 645.

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

Otremba, Daggett, Peterson and Jennings introduced:

H. F. No. 3093, A bill for an act relating to natural resources; establishing the snowmobile trails board; creating a snowmobile trails fund; providing for distribution of tax proceeds; appropriating money; amending Minnesota Statutes 1994, section 297A.44, subdivision 1; proposing coding for new law in Minnesota Statutes, chapter 85.

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

Bakk introduced:

H. F. No. 3094, A bill for an act relating to public safety; creating an amateur radio volunteer system; authorizing the purchase of mobile telephones; creating a communications committee; appropriating money; proposing coding for new law in Minnesota Statutes, chapter 12.

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

Paulsen introduced:

H. F. No. 3095, A bill for an act relating to watershed districts; changing the percent of property owners required on project petitions; amending Minnesota Statutes 1994, section 103D.705, subdivision 2.

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

Brown introduced:

H. F. No. 3096, A bill for an act relating to employee relations; requiring certain health plans providing health benefits to state employees to offer a point-of-service product; proposing coding for new law in Minnesota Statutes, chapter 43A.

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

Cooper introduced:

H. F. No. 3097, A bill for an act relating to health; eliminating certain health care taxes, surcharges, and assessments; establishing an assessment on hospitals, health maintenance organizations, integrated service networks, and community integrated service networks; appropriating money; amending Minnesota Statutes 1994, section 62E.11, subdivision 5; Minnesota Statutes 1995 Supplement, section 60A.15, subdivision 1; proposing coding for new law in Minnesota Statutes, chapter 256; repealing Minnesota Statutes 1994, section 62E.11, subdivision 6; Minnesota Statutes 1995 Supplement, sections 256.9657, subdivision 3; and 256B.19, subdivision 1b.

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

Lourey; Otremba; Johnson, V.; Finseth and Wenzel introduced:

H. F. No. 3098, A bill for an act relating to agriculture; establishing a grant program for information and technology services to dairy farmers; appropriating money.

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

Peterson; Wenzel; Hausman; Johnson, V., and Trimble introduced:

H. F. No. 3099, A bill for an act relating to agriculture; establishing a sustainable development of Minnesota agriculture program; appropriating money; proposing coding for new law in Minnesota Statutes, chapter 17.

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

Bakk; Anderson, I., and Rukavina introduced:

H. F. No. 3100, A bill for an act relating to economic development; modifying the tourism loan program; appropriating money; amending Minnesota Statutes 1994, section 116J.617, subdivision 2.

The bill was read for the first time and referred to the Committee on Economic Development, Infrastructure and Regulation Finance.

Clark introduced:

H. F. No. 3101, A bill for an act relating to human services; authorizing a waiver of certain requirements in the program of aid to families with dependent children.

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

Mulder introduced:

H. F. No. 3102, A bill for an act relating to game and fish; repealing the extended muzzleloader season for hunting deer; repealing Laws 1995, chapter 220, section 136.

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

Larsen, Broecker and Perlt introduced:

H. F. No. 3103, A bill for an act relating to animals impounded or seized by public authority; prohibiting transfer of impounded animals to certain institutions engaged in research; amending Minnesota Statutes 1994, section 35.71.

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

Erhardt, Workman, Haas, Sykora and Daggett introduced:

H. F. No. 3104, A bill for an act relating to metropolitan airports; limiting metropolitan council zoning approval authority; prohibiting construction by metropolitan airports commission of new major airport; requiring inclusion of noise mitigation plan in capital improvement plan; requiring metropolitan airports commission to report on development of existing airport; requiring legislative approval of proposed development; requiring soundproofing of buildings in 1996 65 Ldn contour; requiring design and construction of limited-access transitway along trunk highway No. 55; authorizing regional railroad authority to transfer funds for transitway; authorizing metropolitan council to purchase met center; appropriating money; amending Minnesota Statutes 1994, sections 473.155, by adding a subdivision; 473.608, subdivisions 2, 6 and 16; 473.614, subdivision 1; 473.616, subdivision 1; 473.618; 473.638, subdivision 1; and 473.661, subdivision 4; Laws 1989, chapter 279, section 7, subdivisions 2 and 6; repealing Minnesota Statutes 1994, sections 473.155, subdivisions 2, 3, and 4; 473.1551; 473.616, subdivisions 2, 3, and 4; 473.636; and 473.637.

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

Pawlenty and Knoblach introduced:

H. F. No. 3105, A bill for an act relating to appropriations; capturing agency general fund appropriations from staff retirement; using the savings to create a technology investment/staff development pool; appropriating money; proposing coding for new law in Minnesota Statutes, chapter 16A.

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

Broecker, Mares, Sykora and Larsen introduced:

H. F. No. 3106, A bill for an act relating to education; providing for grants to certain school districts for coordination of volunteer networks for reading mentorships; appropriating money.

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

Mulder introduced:

H. F. No. 3107, A bill for an act relating to health; establishing requirements for directors of nursing; amending Minnesota Statutes 1994, section 144A.04, by adding a subdivision.

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

Knoblach and Gunther introduced:

H. F. No. 3108, A bill for an act relating to the environment; requiring new procedures for water quality standards review; appropriating money; proposing coding for new law in Minnesota Statutes, chapter 116.

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

Kelso, Mariani, Hausman, Delmont and Greiling introduced:

H. F. No. 3109, A bill for an act relating to education; establishing school site councils with authority to make managerial decisions; reserving revenue for school site councils; directing compensatory revenue to school sites; creating a funding mechanism to reward districts based on improvement in student performance; appropriating money; amending Minnesota Statutes 1994, section 124A.28, subdivision 1a, and by adding a subdivision; Minnesota Statutes 1995 Supplement, section 126.70, subdivision 2a; proposing coding for new law in Minnesota Statutes, chapters 123 and 124A; repealing Minnesota Statutes 1994, section 123.951.

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

Lynch, Greenfield and Wejcman introduced:

H. F. No. 3110, A bill for an act relating to human services; adult mental health services for deaf and hard-of-hearing persons; appropriating money.

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

Knoblach, Warkentin, Dehler and Sykora introduced:

H. F. No. 3111, A bill for an act relating to reemployment insurance; excepting from the definition of "employment" services performed by certain taxi cab drivers; amending Minnesota Statutes 1994, section 268.04, subdivision 12.

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

Kinkel and Johnson, R., introduced:

H. F. No. 3112, A bill for an act relating to state lands; authorizing public sale of certain tax-forfeited land that borders public water in Hubbard county.

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

Sarna and Kahn introduced:

H. F. No. 3113, A bill for an act relating to transportation; appropriating money for repairs to the Stone Arch Bridge.

The bill was read for the first time and referred to the Committee on Economic Development, Infrastructure and Regulation Finance.

Pugh, Van Dellen and Tomassoni introduced:

H. F. No. 3114, A bill for an act relating to public safety; regulating fireworks; modifying the definitions of the term fireworks; permitting sale of certain fireworks; licensing distributors and retailers of permitted fireworks; prescribing the conditions of licensure; prohibiting sales of permitted fireworks to persons under 16 years old; imposing a criminal penalty; amending Minnesota Statutes 1994, section 624.20, subdivision 1, and by adding a subdivision; proposing coding for new law in Minnesota Statutes, chapter 624.

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

Bettermann introduced:

H. F. No. 3115, A bill for an act relating to taxation; property; limiting increases in market value for certain residential property to the rate of increase in the consumer price index; amending Minnesota Statutes 1994, section 273.11, subdivision 1a.

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

Frerichs, Mahon, Pelowski, McElroy and Tuma introduced:

H. F. No. 3116, A bill for an act relating to metropolitan airports; limiting metropolitan council zoning approval authority; prohibiting construction by metropolitan airports commission of new major airport; requiring inclusion of noise mitigation plan in capital improvement plan; requiring metropolitan airports commission to report on development of existing airport; requiring legislative approval of proposed development; requiring soundproofing of buildings in 1996 65 Ldn contour; requiring design and construction of limited-access transitway along trunk highway No. 55; authorizing regional railroad authority to transfer funds for transitway; authorizing metropolitan council to purchase met center; appropriating money; amending Minnesota Statutes 1994, sections 473.155, by adding a subdivision; 473.608, subdivisions 2, 6 and 16; 473.614, subdivision 1; 473.616, subdivision 1; 473.618; 473.638, subdivision 1; and 473.661, subdivision 4; Laws 1989, chapter 279, section 7, subdivisions 2 and 6; repealing Minnesota Statutes 1994, sections 473.155, subdivisions 2, 3, and 4; 473.1551; 473.616, subdivisions 2, 3, and 4; 473.636; and 473.637.

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

Delmont; Swenson, D.; Hackbarth; Jennings and Rostberg introduced:

H. F. No. 3117, A bill for an act relating to highways; requiring commissioner of transportation to provide incentives for use of I-394 parking ramp in Minneapolis by high-occupancy vehicles traveling on highways other than I-394; amending Minnesota Statutes 1994, section 161.1231, subdivision 2.

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

Peterson, Wenzel, Finseth, Molnau and Winter introduced:

H. F. No. 3118, A bill for an act relating to agriculture; requiring brand name registration of certain nonhybrid seeds; proposing coding for new law in Minnesota Statutes, chapter 21.

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

Schumacher, Rostberg, Opatz, Greiling and Carlson, S., introduced:

H. F. No. 3119, A bill for an act relating to the legislature; defining which members are subject to the legislators' retirement law; proposing coding for new law in Minnesota Statutes, chapter 3A.

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

Wejcman introduced:

H. F. No. 3120, A bill for an act relating to insurance; Medicare supplement insurance; requiring applicants to be offered long-term care insurance; amending Minnesota Statutes 1994, section 62A.31, subdivision 1q.

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

Koppendrayer and Rostberg introduced:

H. F. No. 3121, A bill for an act relating to capital improvements; appropriating money to restore the 1894 Kanabec county courthouse; authorizing the sale of state bonds.

The bill was read for the first time and referred to the Committee on Economic Development, Infrastructure and Regulation Finance.

Paulsen, Workman, McElroy and Frerichs introduced:

H. F. No. 3122, A bill for an act relating to motor vehicles; ensuring equal access to information about long-term lessees of passenger vehicles; amending Minnesota Statutes 1994, section 168.345, subdivision 2.

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

Pelowski, Pawlenty, Dawkins, Jefferson and McCollum introduced:

H. F. No. 3123, A bill for an act relating to elections; permitting simultaneous candidacy for nomination by major and minor parties with their consent under certain conditions; amending Minnesota Statutes 1994, sections 200.02, subdivision 7, and by adding a subdivision; 204B.04, subdivision 2, and by adding a subdivision; 204D.10, subdivision 2; 204D.12; and 204D.13, by adding a subdivision; Minnesota Statutes 1995 Supplement, section 204B.06, subdivision 1.

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

Dawkins introduced:

H. F. No. 3124, A bill for an act relating to crime prevention; expanding the scope of the challenge incarceration program; striking a reference to acupuncture treatment; amending Minnesota Statutes 1994, sections 244.17, subdivision 2; and 244.172, subdivision 2.

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

Hasskamp; Solberg; Anderson, I.; Sviggum and Brown introduced:

H. F. No. 3125, A bill for an act relating to natural resources; providing an appropriation for snowmobile grants-in-aid; appropriating money.

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

Bettermann and Otremba introduced:

H. F. No. 3126, A bill for an act relating to human services; expanding the coverage of the unitary residence act to community-based services; removing income maintenance, medical, and employment programs from coverage under certain provisions; limiting the ability to change residence while in an excluded time status; reinstituting the concept of derivative settlement between human service programs; eliminating the tie between social service and income maintenance programs; amending Minnesota Statutes 1994, sections 256G.01, subdivision 3, and by adding subdivisions; 256G.02, subdivisions 4 and 6; 256G.03; 256G.06; 256G.07, subdivisions 1 and 2; 256G.09, subdivisions 2 and 5; and 256G.10; repealing Minnesota Statutes 1994, sections 256G.05, subdivision 1; and 256G.07, subdivision 3a.

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

Cooper introduced:

H. F. No. 3127, A resolution memorializing the President and Congress to amend the federal Food, Drug, and Cosmetic Act and the Public Health Service Act to facilitate the development and approval of new drugs and biologics.

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

Skoglund introduced:

H. F. No. 3128, A bill for an act relating to insurance; trade practices; regulating coinsurance, copayment, and deductible charges; amending Minnesota Statutes 1994, section 72A.20, by adding a subdivision.

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

Carruthers and Pugh introduced:

H. F. No. 3129, A bill for an act relating to criminal justice; creating a separate law applicable to the possession or sale of a small amount of marijuana in a motor vehicle; clarifying application of the handicapped parking law; reducing the penalty for first-time violators of driving after license suspension law; eliminating the enhancement to a misdemeanor of third and subsequent petty traffic offenses committed within a single year; increasing the maximum fine for petty misdemeanor and misdemeanor offenses; requiring certain information to be included on the uniform traffic ticket; clarifying that the definition of "juvenile petty offense" excludes traffic offenses; amending Minnesota Statutes 1994, sections 152.027, subdivision 3; 169.346, subdivision 1; 169.89, subdivisions 1 and 2; 169.99, subdivision 1; 171.24, subdivision 1; 609.02, subdivisions 3 and 4a; 609.03; 609.033; 609.0331; 609.0332; and 609.034; Minnesota Statutes 1995 Supplement, section 260.015, subdivision 21.

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

Skoglund introduced:

H. F. No. 3130, A bill for an act relating to crime prevention; defining probation; clarifying jurisdiction of probation service providers; requiring reports and reviews; requiring policies to be adopted; requiring the commissioner of corrections to provide training and technical assistance; requiring probation service providers to collect and maintain certain information; creating a task force; amending Minnesota Statutes 1994, sections 260.311, subdivision 1; and 609.02, by adding a subdivision; proposing coding for new law in Minnesota Statutes, chapter 244.

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

Cooper introduced:

H. F. No. 3131, A bill for an act relating to health; expanding participation in the health provider cooperative demonstration; modifying the definition of review organization; amending Minnesota Statutes 1994, section 145.61, subdivision 5; Minnesota Statutes 1995 Supplement, section 62R.17.

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

Bettermann introduced:

H. F. No. 3132, A bill for an act relating to Alexandria Lake Area Sanitary District; updating the enabling law; amending Laws 1971, chapter 869, sections 2, subdivisions 2, as amended, 14, and 17, as added; 3, subdivisions 5, 6, and 9; 4, subdivisions 1, 2, and 5, as amended; 5, subdivisions 1 and 3; 8; 10, subdivision 3b, as added; 12, subdivisions 1, as amended, and 2, as amended; 17, subdivision 11; 19; 20, subdivision 2; 21; and 24; repealing Laws 1971, chapter 869, section 6, subdivision 3.

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

Garcia, Mahon, Lieder and Ozment introduced:

H. F. No. 3133, A bill for an act relating to taxation; authorizing creation of a housing replacement district in areas subject to airport noise impacts; providing for delayed valuation of improvements to homesteads in those areas; providing income tax benefits to certain residents of those areas; amending Laws 1995, chapter 255, article 3, section 2, subdivisions 1 and 4.

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

Greenfield introduced:

H. F. No. 3134, A bill for an act relating to human services; recruiting more family adult foster care; appropriating money.

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

Paulsen and Frerichs introduced:

H. F. No. 3135, A bill for an act relating to motor carriers; providing for the deregulation of household goods movers; converting existing household goods mover permits; amending Minnesota Statutes 1994, sections 221.011, subdivision 23, and by adding a subdivision; 221.036, subdivisions 1 and 3; proposing coding for new law in Minnesota Statutes, chapter 221.

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

Kelley introduced:

H. F. No. 3136, A bill for an act relating to libraries; establishing a process for selecting and implementing a statewide online information system; appropriating money.

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

Lieder and Rice introduced:

H. F. No. 3137, A bill for an act relating to transportation; appropriating money for metropolitan area and transportation purposes.

The bill was read for the first time and referred to the Committee on Economic Development, Infrastructure and Regulation Finance.

The following message was received from the Senate:

Mr. Speaker:

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

S. F. Nos. 1909, 2121 and 1946.

Patrick E. Flahaven, Secretary of the Senate

S. F. No. 1909, A bill for an act relating to highways; designating a portion of marked trunk highway No. 52 in Fillmore county as the "Amish Buggy Byway"; amending Minnesota Statutes 1994, section 161.14, by adding a subdivision.

The bill was read for the first time and referred to the Committee on Economic Development, Infrastructure and Regulation Finance.

S. F. No. 2121, A bill for an act relating to highways; designating the Czech Heritage Highway; amending Minnesota Statutes 1994, section 161.14, by adding a subdivision.

The bill was read for the first time and referred to the Committee on Economic Development, Infrastructure and Regulation Finance.

S. F. No. 1946, A bill for an act relating to highways; designating POW/MIA Memorial Highway, Veterans Memorial Highway, and John Riley Memorial Drive; amending Minnesota Statutes 1994, section 161.14, by adding subdivisions.

The bill was read for the first time.

Hasskamp moved that S. F. No. 1946 and H. F. No. 2410, now on the Technical Consent Calendar, be referred to the Chief Clerk for comparison. The motion prevailed.

H. F. No. 1889, A bill for an act relating to state government; designating June 19 as Juneteenth in recognition of the abolition of slavery; proposing coding for new law in Minnesota Statutes, chapter 10.

The bill was read for the third time and placed upon its final passage.

The question was taken on the passage of the bill and the roll was called. There were 131 yeas and 0 nays as follows:

Those who voted in the affirmative were:

Abrams       Farrell      Knight       Olson, M.    Stanek
Anderson, B. Finseth      Knoblach     Onnen        Sviggum
Anderson, R. Frerichs     Koppendrayer Opatz        Swenson, D.
Bakk         Garcia       Kraus        Orenstein    Swenson, H.
Bertram      Girard       Krinkie      Orfield      Sykora
Bettermann   Goodno       Larsen       Osskopp      Tomassoni
Bishop       Greenfield   Leighton     Osthoff      Tompkins
Boudreau     Greiling     Leppik       Ostrom       Trimble
Bradley      Gunther      Lieder       Otremba      Tuma
Broecker     Haas         Lindner      Ozment       Tunheim
Brown        Hackbarth    Long         Paulsen      Van Dellen
Carlson, L.  Harder       Lourey       Pawlenty     Van Engen
Carlson, S.  Hasskamp     Luther       Pellow       Vickerman
Carruthers   Hausman      Lynch        Pelowski     Wagenius
Clark        Holsten      Macklin      Perlt        Warkentin
Commers      Huntley      Mahon        Peterson     Weaver
Cooper       Jaros        Mares        Pugh         Wejcman
Daggett      Jefferson    Mariani      Rest         Wenzel
Dauner       Jennings     Marko        Rhodes       Winter
Davids       Johnson, A.  McCollum     Rostberg     Wolf
Dawkins      Johnson, R.  McGuire      Rukavina     Worke
Dehler       Johnson, V.  Milbert      Sarna        Workman
Delmont      Kahn         Molnau       Schumacher   Sp.Anderson,I
Dempsey      Kalis        Mulder       Seagren      
Dorn         Kelley       Munger       Skoglund     
Entenza      Kelso        Murphy       Smith        
Erhardt      Kinkel       Ness         Solberg      

H. F. No. 2652, A bill for an act relating to local government; granting the city of Minneapolis authority to negotiate certain trade and craft contracts for stagehands; amending Laws 1988, chapter 471, section 1, subdivisions 1, as amended, and 2, as amended; and section 2, as amended.

The bill was read for the third time and placed upon its final passage.

The question was taken on the passage of the bill and the roll was called. There were 124 yeas and 5 nays as follows:

Those who voted in the affirmative were:

Abrams       Entenza      Kelley       Onnen        Solberg
Anderson, B. Erhardt      Kinkel       Opatz        Stanek
Anderson, R. Farrell      Knoblach     Orenstein    Sviggum
Bakk         Finseth      Koppendrayer Orfield      Swenson, D.
Bertram      Garcia       Kraus        Osskopp      Swenson, H.
Bettermann   Girard       Larsen       Osthoff      Sykora
Bishop       Goodno       Leighton     Ostrom       Tomassoni
Boudreau     Greenfield   Leppik       Otremba      Tompkins
Bradley      Greiling     Lieder       Ozment       Trimble
Broecker     Gunther      Long         Paulsen      Tuma
Brown        Haas         Lourey       Pawlenty     Tunheim
Carlson, L.  Hackbarth    Luther       Pellow       Van Dellen
Carlson, S.  Harder       Lynch        Pelowski     Van Engen
Carruthers   Hasskamp     Macklin      Perlt        Vickerman
Clark        Hausman      Mahon        Peterson     Wagenius
Commers      Holsten      Mares        Pugh         Warkentin
Cooper       Huntley      Marko        Rest         Weaver
Daggett      Jaros        McCollum     Rhodes       Wejcman
Dauner       Jefferson    McGuire      Rostberg     Wenzel
Davids       Jennings     Milbert      Rukavina     Winter
Dawkins      Johnson, A.  Molnau       Sarna        Wolf
Dehler       Johnson, R.  Mulder       Schumacher   Worke
Delmont      Johnson, V.  Munger       Seagren      Workman
Dempsey      Kahn         Murphy       Skoglund     Sp.Anderson,I
Dorn         Kalis        Ness         Smith        

Frerichs     Krinkie      Olson, M.    
Knight       Lindner      

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

Kahn moved that her name be stricken and the name of Olson, M., be added as chief author on H. F. No. 140. The motion prevailed.

Farrell moved that his name be stricken as an author on H. F. No. 426. The motion prevailed.

Delmont moved that the name of Dempsey be added as an author on H. F. No. 2055. The motion prevailed.

Bishop moved that the name of Munger be added as second author and the name of Johnson, V., be added as third author on H. F. No. 2112. The motion prevailed.

Brown moved that the name of Kelso be added as an author on H. F. No. 2176. The motion prevailed.

Tompkins moved that her name be stricken as an author on H. F. No. 2187. The motion prevailed.

Sviggum moved that the name of Stanek be added as an author on H. F. No. 2199. The motion prevailed.

Carlson, S., moved that the names of Delmont and Ozment be added as authors on H. F. No. 2201. The motion prevailed.

Johnson, A., moved that the name of Holsten be added as an author on H. F. No. 2205. The motion prevailed.

Tompkins moved that her name be stricken as an author on H. F. No. 2235. The motion prevailed.

Pelowski moved that the name of Dempsey be added as an author on H. F. No. 2848. The motion prevailed.

Hasskamp moved that her name be stricken as an author on H. F. No. 2858. The motion prevailed.

Wenzel moved that the name of Finseth be added as an author on H. F. No. 2982. The motion prevailed.

Carlson, S., moved that his name be stricken as an author on H. F. No. 3011. The motion prevailed.

Stanek moved that the name of Swenson, D., be stricken and the name of Paulsen be added as an author on H. F. No. 3048. The motion prevailed.

Pellow moved that the following statement be printed in the Journal of the House: "It was my intention to vote in the affirmative on Monday, February 5, 1996, when the vote was taken on the final passage of H. F. No. 2625." The motion prevailed.

McGuire moved that H. F. No. 2408 be recalled from the Committee on Transportation and Transit and be re-referred to the Committee on Financial Institutions and Insurance. The motion prevailed.

Solberg moved that H. F. No. 2417 be recalled from the Committee on Ways and Means and be re-referred to the Committee on Taxes. The motion prevailed.

Rest moved that H. F. No. 2495 be recalled from the Committee on Taxes and be re-referred to the Committee on Education. The motion prevailed.

Murphy moved that S. F. No. 1365 be recalled from the Committee on Rules and Legislative Administration and be re-referred to the Committee on Judiciary Finance. The motion prevailed.

Delmont moved that H. F. No. 2153, now on the Technical Consent Calendar, be placed on General Orders. The motion prevailed.

Knoblach moved that H. F. No. 1959 be returned to its author. The motion prevailed.

Pawlenty moved that H. F. No. 2476 be returned to its author. The motion prevailed.

Carruthers moved that when the House adjourns today it adjourn until 2:30 p.m., Thursday, February 8, 1996. The motion prevailed.

Carruthers moved that the House adjourn. The motion prevailed, and the Speaker declared the House stands adjourned until 2:30 p.m., Thursday, February 8, 1996.

Edward A. Burdick, Chief Clerk, House of Representatives

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