Kahn and Lindner were excused.

Farrell was excused until 2:55 p.m.

The Chief Clerk proceeded to read the Journals of the preceding days. Osthoff moved that further reading of the Journals be suspended and that the Journals be approved as corrected by the Chief Clerk. The motion prevailed.

S. F. No. 1793 and H. F. No. 2098, which had been referred to the Chief Clerk for comparison, were examined and found to be identical.

Pellow moved that S. F. No. 1793 be substituted for H. F. No. 2098 and that the House File be indefinitely postponed. The motion prevailed.

S. F. No. 1815 and H. F. No. 2344, which had been referred to the Chief Clerk for comparison, were examined and found to be identical.

Long moved that S. F. No. 1815 be substituted for H. F. No. 2344 and that the House File be indefinitely postponed. The motion prevailed.

The following communication was received:

The Honorable Irv Anderson

Speaker of the House of Representatives

The Honorable Allan H. Spear

President of the Senate

I have the honor to inform you that the following enrolled Act of the 1996 Session of the State Legislature has been received from the Office of the Governor and is deposited in the Office of the Secretary of State for preservation, pursuant to the State Constitution, Article IV, Section 23:

                                    Time and          

S.F.         H.F.   Session Laws    Date ApprovedDate Filed

No.           No.    Chapter No.             1996      1996

1846 266 3:00 p.m. February 7 February 7

Sincerely,

Joan Anderson Growe

Secretary of State

Osthoff from the Committee on Financial Institutions and Insurance to which was referred:

H. F. No. 168, A bill for an act relating to insurance; providing that nonrenewals on homeowner's policies must be based on the total amount paid by the insurer on claims and not the number of claims; amending Minnesota Statutes 1994, section 65A.29, subdivision 8.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 1994, section 65A.29, subdivision 11, is amended to read:

Subd. 11. [NONRENEWAL PLAN.] Every insurer shall establish a plan that sets out the minimum number and amount of claims during an experience period that may result in a nonrenewal. A clear and concise written statement of this plan must be provided to the insured when any future losses may result in nonrenewal of the policy.

The plan No homeowner's insurance policy may be nonrenewed based on the insured's loss experience unless the insurer has sent a written notice that any future losses may result in nonrenewal due to loss experience.

Any nonrenewal of a homeowner's insurance policy must, at a minimum, comply with the requirements of subdivision 8 and the rules adopted by the commissioner.

Sec. 2. [EFFECTIVE DATE.]

Section 1 is effective the day following final enactment and applies to policies issued or renewed on or after that date."

Delete the title and insert:

"A bill for an act relating to insurance; regulating nonrenewals based on loss experience; amending Minnesota Statutes 1994, section 65A.29, subdivision 11."

With the recommendation that when so amended the bill pass.

The report was adopted.

Osthoff from the Committee on Financial Institutions and Insurance to which was referred:

H. F. No. 219, A bill for an act relating to insurance; health plans; requiring coverage for treatment of Lyme disease; amending Minnesota Statutes 1994, section 62A.136; proposing coding for new law in Minnesota Statutes, chapter 62A.

Reported the same back with the following amendments:

Page 1, line 18, delete everything after "disease" and insert a period

Page 1, delete line 19

Page 1, after line 24, insert:

"Sec. 3. [LYME DISEASE STUDY.]

The commissioner of health shall study the diagnosis and treatment of Lyme disease, including any legislation enacted or studies performed in other states. The commissioner shall select and convene an informal advisory work group that includes consumers who live in areas of the state in which Lyme disease is prevalent. The commissioner shall submit a written report and recommendations to the legislature no later than January 15, 1997, in conformance with Minnesota Statutes, section 3.195."

Page 1, line 25, delete "3" and insert "4"

Page 2, line 1, delete "1995" and insert "1996"

Amend the title as follows:

Page 1, line 3, after the semicolon, insert "requiring a study;"

With the recommendation that when so amended the bill pass.

The report was adopted.

Jennings from the Committee on General Legislation, Veterans Affairs and Elections to which was referred:

H. F. No. 220, A bill for an act relating to elections; requiring certain special primaries and elections to be conducted by mail; amending Minnesota Statutes 1994, sections 204D.19, subdivisions 2 and 3; 204D.20, subdivision 1; 204D.21, subdivisions 2 and 3; 204D.22, subdivision 3; and 204D.23, subdivision 2.

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. 408, A bill for an act relating to motor carriers; clarifying who may conduct physical examinations for motor carrier drivers; amending Minnesota Statutes 1994, section 221.031, by adding a subdivision.

Reported the same back with the following amendments:

Page 1, line 13, delete "or"

Page 1, line 14, before "duly" insert ", or advanced practice nurse practicing within the advanced practice nurse's scope of practice,"

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. 637, A bill for an act relating to taxation; property; allowing for a market value exclusion for electric power generation facilities based on facility efficiency; proposing coding for new law in Minnesota Statutes, chapter 272.

Reported the same back with the following amendments:

Page 1, line 15, delete "structure and"

Page 1, line 21, delete "For the"

Page 1, delete lines 22 to 25

Page 2, delete line 1

Page 2, line 2, delete "a percentage." and insert "In calculating the efficiency of a facility, the commissioner of public service shall use a definition of efficiency which calculates efficiency as the sum of:

(1) the useful electrical power output; plus

(2) the useful thermal energy output; plus

(3) the fuel energy of the useful chemical products,

all divided by the total energy input to the facility, expressed as a percentage. The commissioner shall use the high heating value for all substances in the commissioner's efficiency calculations."

Page 2, line 15, before "market" insert "taxable"

Page 2, line 16, delete "percent" and insert "three percentage points"

Page 2, line 18, delete "33" and insert "35" and after the period, insert "For purposes of determining the market value exclusion percentage under this subdivision, there shall be a .42 percent exclusion for each one-fourth of a percentage point efficiency over the 35 percent threshold." and before "market" insert "taxable"

Page 2, line 19, before "market" insert "taxable"

Page 2, line 21, delete "has its market value" and insert "is"

Page 2, line 24, before "market" insert "taxable"

Page 2, after line 25, insert:

"Subd. 3. [REVOCATION.] (a) The commissioner of revenue shall revoke the market value reduction under this section, if:

(1) the applicant exercises its right under federal law to require an electric utility to purchase power generated by the facility; and

(2) the electric utility notifies the commissioner that the applicant has exercised its right to require purchase of power.

The revocation applies for the first assessment year after notification of the commissioner.

(b) For purposes of this subdivision, the following terms mean:

(1) "Federal law" is the federal Public Utility Regulatory Policies Act, United States Code, title 16, section 824a-3, and regulations promulgated under that section, including Code of Federal Regulations, title 18, sections 929.303 and 929.304.

(2) "Electric utility" is an electric utility as defined in section 216B.38, subdivision 5.

Sec. 2. [EFFECTIVE DATE.]

Section 1 is effective for taxes levied in 1996 and thereafter, for taxes payable in 1997 and thereafter."

With the recommendation that when so amended the bill pass.

The report was adopted.

Jennings from the Committee on General Legislation, Veterans Affairs and Elections to which was referred:

H. F. No. 667, A bill for an act relating to elections; campaign finance; changing the treatment of spending limits and public subsidy in certain cases; amending Minnesota Statutes 1994, section 10A.25, subdivision 10.

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

The report was adopted.

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

H. F. No. 732, A bill for an act relating to commerce; regulating the enforcement of copyright licenses on certain nondramatic musical works and similar works; requiring certain notices; prohibiting certain practices; providing remedies; proposing coding for new law in Minnesota Statutes, chapter 325E.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. [325E.50] [DEFINITIONS.]

Subdivision 1. [TERMS.] For purposes of sections 325E.50 to 325E.57, the terms defined in this section have the meanings given them.

Subd. 2. [COPYRIGHT OWNER.] "Copyright owner" means the owner of a copyright of a nondramatic musical work recognized and enforceable under the copyright laws of the United States under United States Code, title 17, sections 101 to 810.

Subd. 3. [PERFORMING RIGHTS SOCIETY.] "Performing rights society" means an association, corporation, or other entity that licenses the public performance of nondramatic musical works on behalf of copyright owners, such as the American Society of Composers, Authors, and Publishers (ASCAP); Broadcast Music, Inc. (BMI); and SESAC, Inc.

Subd. 4. [PROPRIETOR.] "Proprietor" means the owner of a retail establishment, office, restaurant, inn, bar, tavern, or any other similar establishment or place of business located in this state in which the public may assemble and in which nondramatic musical works may be performed, broadcast, or otherwise transmitted.

Subd. 5. [ROYALTY OR ROYALTIES.] "Royalty" or "royalties" means the license fees payable by a proprietor to a performing rights society for the public performance of nondramatic musical works.

Sec. 2. [325E.51] [LICENSING NEGOTIATIONS.]

No performing rights society shall enter into, or offer to enter into, a contract for the payment of royalties by a proprietor unless at the time of the offer, or any time thereafter, but no later than 72 hours prior to the execution of that contract, it provides to the proprietor, in writing, the following:

(1) a schedule of the rates and terms of royalties under the contract;

(2) upon the request of the proprietor, the opportunity to review the most current available list of the members or affiliates represented by the society; and

(3) notice that it will make available, upon written request of any proprietor, at the sole expense of the proprietor, the most current available listing of the copyrighted musical works in the performing rights society's repertory, provided that the notice shall specify the means by which the information can be secured.

Sec. 3. [325E.52] [ROYALTY CONTRACT REQUIREMENTS.]

Every contract for the payment of royalties between a proprietor and a performing rights society executed in this state must be in writing and signed by the parties and must include, at a minimum, the following information:

(1) the proprietor's name and business address and the name and location of each place of business to which the contract applies;

(2) the name of the performing rights society;

(3) the duration of the contract; and

(4) the schedule of rates and terms of the royalties to be collected under the contract, including any sliding scale or schedule for any increase or decrease of rates for the duration of the contract.

Sec. 4. [325E.53] [IMPROPER LICENSING PRACTICES.]

No performing rights society or any agent or employee of a performing rights society shall: (1) collect, or attempt to collect, from a proprietor licensed by that performing rights society, a royalty payment except as provided in a contract executed pursuant to this act; or (2) enter into the premises of a proprietor's business for the purpose of discussing a contract for payment of royalties for the use of copyrighted works by that proprietor without first identifying himself or herself to the proprietor or the proprietor's employees and disclosing that the agent is acting on behalf of the performing rights society and disclosing the purpose of this discussion.

Sec. 5. [325E.54] [INVESTIGATION.]

Nothing in sections 325E.50 to 325E.57 shall be construed to prohibit a performing rights society from conducting investigations to determine the existence of music use by a proprietor or informing a proprietor of the proprietor's obligation under the federal copyright law, United States Code, title 17.

Sec. 6. [325E.55] [REMEDIES; INJUNCTION.]

A person who suffers a violation of sections 325E.50 to 325E.57 may bring an action to recover actual damages and reasonable attorney's fees and seek an injunction or any other available remedy.

Sec. 7. [325E.56] [REMEDIES CUMULATIVE.]

The rights, remedies, and prohibitions contained in sections 325E.50 to 325E.57 are in addition to and cumulative of any other right, remedy, or prohibition accorded by common law, or state or federal law. Nothing contained in sections 325E.50 to 325E.57 shall be construed to deny, abrogate, or impair any such common law or statutory right, remedy, or prohibition.

Sec. 8. [325E.57] [EXCEPTIONS.]

Sections 325E.50 to 325E.57 do not apply to contracts between copyright owners or performing rights societies and broadcasters licensed by the Federal Communications Commission, or to contracts with cable operators, programmers, or other transmission services. Sections 325E.50 to 325E.57 do not apply to musical works performed in synchronization with an audio/visual film or tape, or to the gathering of information for determination of compliance with or activities related to the enforcement of sections 325E.169 to 325E.201."

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. 947, A bill for an act relating to retirement; correctional employees retirement plan of the Minnesota state retirement system; transferring various employment positions in the departments of corrections and human services from coverage by the general state employees retirement plan or the teachers retirement association to the correctional employees retirement plan; amending Minnesota Statutes 1994, sections 352.91, by adding subdivisions; and 352.92, subdivision 2.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 1994, section 352.90, is amended to read:

352.90 [POLICY.]

It is the policy of the legislature to provide special retirement benefits and contributions for certain correctional employees who may be required to retire at an early age because they lose the mental or physical capacity required to maintain the safety, security, discipline, and custody of inmates at state adult correctional facilities or of patients at the Minnesota security hospital or at the Minnesota sexual psychopathic personality treatment center.

Sec. 2. Minnesota Statutes 1994, section 352.91, subdivision 1, is amended to read:

Subdivision 1. [QUALIFYING JOBS.] "Covered correctional service" means: (1) services service performed on, before, or after July 1, 1973, by a state employee, as defined in section 352.01, employed at a state correctional facility, the Minnesota security hospital, or the Minnesota sexual psychopathic personality treatment center as an attendant guard, attendant guard supervisor, correctional captain, correctional counselor I, correctional counselor II, correctional counselor III, correctional counselor IV, correctional lieutenant, correctional officer, correctional sergeant, director of attendant guards, and guard farmer garden, provided the employee was employed in the position on July 1, 1973, or after; (2) services performed before July 1, 1973, by an employee covered under clause (1) in a position classified as a houseparent, special schools counselor, shop instructor, or guard instructor; and (3) services performed before July 1, 1973, in a position listed in clause (1) and positions classified as houseparent, guard instructor, and guard farmer dairy, by a person employed on July 1, 1973, in a position classified as a license plant manager, prison industry

lead supervisor (general, metal fabricating and foundry), prison industry supervisor, food service manager, prison farmer supervisor, prison farmer assistant supervisor, or rehabilitation therapist employed at the Minnesota security hospital. However, an employee is not covered under sections 352.91 to 352.951 if first employed after July 1, 1973, and because of age could not acquire sufficient service to qualify for an annuity as a correctional employee:

(1) a corrections officer 1;

(2) a corrections officer 2;

(3) a corrections officer 3;

(4) a corrections officer supervisor;

(5) a corrections officer 4;

(6) a corrections captain;

(7) a security counselor; or

(8) a security counselor lead.

Sec. 3. Minnesota Statutes 1994, section 352.91, subdivision 2, is amended to read:

Subd. 2. [TEACHING, MAINTENANCE, AND TRADES.] "Covered correctional service" also means service rendered at any time by state employees as special teachers, maintenance personnel, and members of trades certified by the commissioner of employee relations as being regularly engaged in rehabilitation, treatment, custody, or supervision of inmates employed at the a Minnesota correctional facility-St. Cloud, the Minnesota correctional facility-Stillwater and the Minnesota correctional facility-Shakopee on or after July 1, 1974, other than any employees who are age 62 or older as of July 1, 1974. Effective the first payroll period after June 1, 1980, or the date of initial employment in covered correctional service, whichever is later, "covered correctional service" also includes those employees of the Minnesota correctional facility-Lino Lakes and the employees of any other adult state correctional facility which may be established, who perform covered correctional service after June 1, 1980. "Special teacher" also includes the classifications of facility educational administrator and supervisor facility, or of patients at the Minnesota security hospital or at the Minnesota sexual psychopathic personality treatment center.

Sec. 4. Minnesota Statutes 1994, section 352.91, is amended by adding a subdivision to read:

Subd. 2a. [SPECIAL TEACHERS.] "Covered correctional service" also means service rendered by a state employee as a special teacher employed by the department of corrections or by the department of human services at a security unit, provided that at least 75 percent of the employee's working time is spent in direct contact with inmates or patients and the fact of this direct contact is certified to the executive director by the appropriate commissioner, unless the person elects to retain the current retirement coverage under section 11.

Sec. 5. Minnesota Statutes 1994, section 352.91, subdivision 3b, is amended to read:

Subd. 3b. [OLDER EMPLOYEES FORMERLY EXCLUDED.] "Covered correctional service" also means service performed by certain state employees in positions usually covered by this section who: (1) were excluded by law from coverage between July 1973 and July 1980; (2) were age 45 or over when hired; (3) are were state employees on March 26, 1986; and (4) elect who elected coverage. Eligible employees who elect coverage must file written notice of their election with the director before July 1, 1986. An employee who did not elect coverage before July 1, 1986, is not covered by the correctional retirement plan, even if the employee's employment classification may be considered to be covered correctional service under another subdivision of this section.

Sec. 6. Minnesota Statutes 1994, section 352.91, is amended by adding a subdivision to read:

Subd. 3c. [NURSING PERSONNEL.] (a) "Covered correctional service" means service by a state employee in one of the employment positions at a correctional facility or at the Minnesota security hospital specified in paragraph (b), provided that at least 75 percent of the employee's working time is spent in direct contact with inmates or patients and the fact of this direct contact is certified to the executive director by the appropriate commissioner, unless the person elects to retain the current retirement coverage under section 11.

(b) The employment positions are as follows:

(1) registered nurse - senior;

(2) registered nurse;

(3) registered nurse - principal; and

(4) licensed practical nurse 2.

Sec. 7. Minnesota Statutes 1994, section 352.91, is amended by adding a subdivision to read:

Subd. 3d. [OTHER CORRECTIONAL PERSONNEL.] (a) "Covered correctional service" means service by a state employee in one of the employment positions at a correctional facility or at the Minnesota security hospital specified in paragraph (b), provided that at least 75 percent of the employee's working time is spent in direct contact with inmates or patients and the fact of this direct contact is certified to the executive director by the appropriate commissioner, unless the person elects to retain the current retirement coverage under section 11.

(b) The employment positions are as follows: baker, chemical dependency counselor supervisor, chief cook, cook, cook coordinator, corrections behavior therapist, corrections behavior therapist specialist, corrections parent education coordinator, corrections security caseworker, corrections security caseworker career, corrections teaching assistant, dentist, electrician supervisor, general repair worker, library/information research services specialist, library information research services specialist senior, plumber supervisor, psychologist 3, recreation therapist, recreation therapist coordinator, recreation program assistant, recreation therapist senior, stores clerk senior, water treatment plant operator, work therapy technician, work therapy assistant, work therapy program coordinator.

Sec. 8. Minnesota Statutes 1994, section 352.91, subdivision 4, is amended to read:

Subd. 4. [CERTIFICATION PROCEDURE FOR ADDITIONAL POSITIONS.] Upon the recommendation of the commissioner of corrections or the commissioner of human services, whichever is the appropriate employing authority, with the approval of the legislative advisory committee and with notification to and receipt of comments from the legislative commission on pensions and retirement, the commissioner of employee relations may certify additional civil service classifications positions at a state correctional or security hospital facilities facility, the Minnesota security hospital, or the Minnesota sexual psychopathic personality treatment center to the executive director of the Minnesota state retirement system as positions rendering covered correctional service. The commissioner of corrections and the commissioner of human services must establish, in writing, a set of criteria upon which to base a recommendation for certifying additional civil service classifications as rendering covered correctional service.

Sec. 9. Minnesota Statutes 1994, section 352.91, is amended by adding a subdivision to read:

Subd. 5. [CORRECTION OF ERRORS.] (a) If it is determined that an employee should have been covered by the correctional retirement plan but was placed in the general employees retirement plan or teachers retirement association in error, the commissioner of corrections or the commissioner of human services must report the error to the executive director of the Minnesota state retirement system. The service must be properly credited under the correctional employees retirement plan for a period of not to exceed five years before the date on which the commissioner of corrections or human services notifies the executive director of the Minnesota state retirement system in writing or five years from the date on which an employee requests, in writing, the applicable department to determine if the person has appropriate retirement plan coverage, whichever is earlier. If the error covers more than a five-year period, the service before the five-year period must remain under the plan originally credited the service. The employee shall pay the difference between the employee contributions actually paid during the five-year period and what should have been paid under the correctional employees retirement plan. The department making the error shall pay to the correctional employees retirement plan an amount equal to the difference in the present value of accrued retirement benefits caused by the change in coverage after subtracting the amount paid by the employee. Calculation of this amount must be made by the executive director of the Minnesota state retirement system using the applicable preretirement interest rate specified in section 356.215, subdivision 4d, and the mortality table adopted for the Minnesota state retirement system. The calculation must assume continuous future service in the correctional employees retirement plan until the employee would reach the age eligible for normal retirement. The calculation must also assume a future salary history that includes annual salary increases at the salary increase rate or rates specified in section 356.215, subdivision 4d.

(b) If an employee was covered under the correctional employees retirement plan, but it is determined that the person should have been covered under the general employees retirement plan, the error must be corrected if written notification is provided to the employee and the executive director of the Minnesota state retirement system within three years of the date on which the coverage was improperly started. The difference in employee and employer contributions actually paid to the correctional employees retirement plan in excess of the amount that should have been paid to the general employees retirement plan must be refunded to the employee and the employer paying the additional contributions.

Sec. 10. Minnesota Statutes 1994, section 352.92, subdivision 2, is amended to read:

Subd. 2. [EMPLOYER CONTRIBUTIONS.] (a) In lieu of employer contributions payable under section 352.04, subdivision 3, the employer shall contribute for covered correctional employees an amount equal to 6.27 6.75 percent of salary.

(b) By January 1 of each year, the board of directors shall report to the legislative commission on pensions and retirement, the chair of the committee on appropriations of the house of representatives, and the chair of the committee on finance of the senate on the amount raised by the employer and employee contribution rates in effect and whether the total amount is less than, the same as, or more than the actuarial requirement determined under section 356.215.

Sec. 11. [TEMPORARY PROVISION; ELECTION TO RETAIN RETIREMENT COVERAGE.]

(a) An employee in a position specified as qualifying under sections 4, 6, and 7, may elect to retain coverage under the general employees retirement plan of the Minnesota state retirement system or the teachers retirement association, or may elect to have coverage transferred to and to contribute to the correctional employees retirement plan. An employee electing to participate in the correctional employees retirement plan shall begin making contributions to the correctional plan beginning the first full pay period after June 30, 1996, or the first full pay period following filing of their election to transfer coverage to the correctional employees retirement plan, whichever is later. The election to retain coverage or to transfer coverage must be made in writing by the person on a form prescribed by the executive director of the Minnesota state retirement system and must be filed with the executive director no later than December 31, 1996.

(b) An employee failing to make an election by December 15, 1996, must be notified by certified mail by the executive director of the Minnesota state retirement system or of the teachers retirement association, whichever applies, of the deadline to make a choice. A person who does not submit an election form must continue coverage in the general employees retirement plan or the teachers retirement association, whichever applies, and forfeits all rights to transfer retirement coverage to the correctional employees retirement plan.

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

Sec. 12. [COVERAGE FOR PRIOR STATE SERVICE FOR CERTAIN PERSONS.]

Subdivision 1. [ELECTION OF PRIOR STATE SERVICE COVERAGE.] (a) An employee who has future retirement coverage transferred to the correctional employees retirement plan under sections 4, 6, and 7, and who does not elect to retain general state employee retirement plan or teachers retirement association coverage is entitled to elect to obtain prior service credit for eligible state service performed on or after July 1, 1975, and before the first day of the first full pay period beginning after June 30, 1996, with the department of corrections or with the department of human services at the Minnesota security hospital. All prior service credit must be purchased.

(b) Eligible state service with the department of corrections or with the department of human services is any prior period of continuous service on or after July 1, 1975, performed as an employee of the department of corrections or of the department of human services that would have been eligible for the correctional employees retirement plan coverage under sections 4, 6, and 7, if that prior service had been performed after the first day of the first full pay period beginning after June 30, 1996, rather than before that date. Service is continuous if there has been no period of discontinuation of eligible state service for a period greater than 180 calendar days.

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

(d) A covered correctional plan employee employed on July 1, 1996, who has past service in a job classification covered under section 4, 6, or 7, on July 1, 1996, is entitled to purchase the past service if the applicable department certifies that the employee met the eligibility requirements for coverage. The employee must make the additional employee contributions under section 9. Payments for past service must be completed by September 30, 1998.

Subd. 2. [PAYMENT FOR PRIOR SERVICE.] (a) An employee electing to obtain prior service credit under subdivision 1 must pay an additional employee contribution for that prior service except for any period of time that the employee was a member of the basic program of the teachers retirement association. The additional member contribution is the contribution differential percentage applied to the actual salary paid to the employee during the period of the prior eligible state service, plus interest at the rate of six percent per annum, compounded annually. The contribution differential percentage is the difference between 4.9 percent of salary and the applicable employee contribution rate of the general state employees retirement plan or the teachers retirement association during the prior eligible state service.

(b) The additional member contribution must be paid only in a lump sum. Payment must accompany the election to obtain prior service credit. No election or payment may be made by the person or accepted by the executive director after September 30, 1998.

Subd. 3. [TRANSFER OF ASSETS.] Assets must be transferred from the teachers retirement association or the general state employees retirement plan, whichever applies, to the correctional employees retirement plan in an amount equal to the present value of benefits earned under the general employees retirement plan or the teachers retirement plan, whichever applies, for each employee transferring to the correctional employees retirement plan, as determined by the actuary retained by the legislative commission on pensions and retirement in accordance with Minnesota Statutes, section 356.215, multiplied by the accrued liability funding ratio of active members as derived from the most recent actuarial valuation prepared by the commission-retained actuary. The transfer of assets must be made within 45 days after the employee elects to transfer coverage to the correctional employees retirement plan.

Subd. 4. [EFFECT OF THE ASSET TRANSFER.] Upon the transfer of assets in subdivision 3, service credit in the general state employees plan of the Minnesota state retirement system or the teachers retirement association, whichever applies, is forfeited and may not be reinstated. The service credit and transferred assets must be credited to the correctional employees retirement plan.

Subd. 5. [COUNSELING.] (a) The commissioners of corrections, human services, and employee relations, and the executive directors of the Minnesota state retirement system and teachers retirement association have the joint responsibility of providing affected employees of the department of corrections or the department of human services with appropriate and timely retirement and related benefit counseling.

(b) Counseling must include the anticipated impact of the retirement coverage change on the person's future retirement benefit amounts, future retirement eligibility, future applicability of mandatory retirement laws, and future postemployment insurance coverage.

(c) The commissioners of corrections and human services must consult with the appropriate collective bargaining agents of the affected employees regarding the content, form, and timing of the counseling required by this section.

Sec. 13. [TRANSITIONAL PROVISION; RETENTION OF CERTAIN RIGHTS.]

(a) Nothing in this act may be considered to restrict the entitlement of a person under state law to repay a previously taken refund of employee or member contributions to a Minnesota public pension plan if all qualifying requirements are met.

(b) The period of correctional employees retirement plan contributions, plus interest, must be restored upon the repayment of the appropriate refund amount if the service was correctional employees retirement plan covered service on the date when the service was rendered or on the date when the refund was taken.

Sec. 14. [EARLY RETIREMENT INCENTIVE.]

This section applies to an employee who has future retirement coverage transferred to the correctional employee retirement plan under sections 4, 6, and 7, and who is at least 55 years old on the effective date of sections 4, 6, and 7. That employee may participate in a health insurance early retirement incentive available under the terms of a collective bargaining agreement in effect on the day before the effective date of sections 4, 6, and 7, notwithstanding

any provision of the collective bargaining agreement that limits participation to persons who select the option during the payroll period in which their 55th birthday occurs. A person selecting the health insurance early retirement incentive under this section must retire by the later of September 30, 1996, or within the pay period following the time at which the person has at least three years of covered correctional service, including any purchased service credit. An employee meeting this criteria who wishes to extend the person's employment must do so under Minnesota Statutes, section 43A.34, subdivision 3.

Sec. 15. [APPROPRIATION.]

$....... is appropriated to the department of human services and $....... is appropriated to the department of corrections to fund the additional employer contributions associated with these changes in the membership of the correctional employees retirement plan.

Sec. 16. [REPEALER.]

Minnesota Statutes 1994, section 352.91, subdivision 3, is repealed.

Sec. 17. [EFFECTIVE DATE.]

Sections 1 to 16 are effective on the first day of the first full pay period beginning after June 30, 1996."

Delete the title and insert:

"A bill for an act relating to retirement; modifying provisions governing the retirement plan for correctional employees under the Minnesota state retirement system; appropriating money; amending Minnesota Statutes 1994, sections 352.90; 352.91, subdivisions 1, 2, 3b, 4, and by adding subdivisions; 352.92, subdivision 2; repealing Minnesota Statutes 1994, section 352.91, subdivision 3."

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

The report was adopted.

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

H. F. No. 1540, A bill for an act relating to retirement; the Minneapolis teachers retirement fund association; providing for purchase of allowable service credit for public school employment outside the state of Minnesota; proposing coding for new law in Minnesota Statutes, chapter 354A.

Reported the same back with the following amendments:

Page 2, line 1, delete "ten" and insert "three"

Page 2, line 11, delete "one-half"

With the recommendation that when so amended the bill pass.

The report was adopted.

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

H. F. No. 1897, A bill for an act relating to forests; creating a program to restore the white pine; amending Minnesota Statutes 1994, section 89.37, subdivision 1; proposing coding for new law in Minnesota Statutes, chapter 89.

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. 1922, A bill for an act relating to highways; authorizing cities to establish a municipal involvement process for certain trunk highway construction or reconstruction projects; providing for appointment of task forces for those projects and prescribing their powers; amending Minnesota Statutes 1994, sections 161.172; 161.173; 161.174; and 161.177.

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.

Skoglund from the Committee on Judiciary to which was referred:

H. F. No. 1998, A bill for an act relating to trusts; regulating the investment and management of trust assets; providing standards; amending Minnesota Statutes 1994, sections 48.38, subdivision 6; 48.84; 317A.161, subdivision 24; 525.56, subdivision 4; and 529.06; proposing coding for new law in Minnesota Statutes, chapter 501B; repealing Minnesota Statutes 1994, sections 501B.10; and 501B.11.

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

The report was adopted.

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

H. F. No. 2058, A bill for an act relating to education; authorizing the sale of general obligation bonds in the form of college savings bonds; proposing coding for new law in Minnesota Statutes, chapter 16A.

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.

Jennings from the Committee on General Legislation, Veterans Affairs and Elections to which was referred:

H. F. No. 2101, A bill for an act relating to elections; allowing mail balloting in certain elections in additional cities and towns; amending Minnesota Statutes 1994, section 204B.45, subdivision 1.

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

The report was adopted.

Skoglund from the Committee on Judiciary to which was referred:

H. F. No. 2148, A bill for an act relating to criminal justice; establishing a grant program that will enable communities to develop and provide criminal justice intervention programs; appropriating money; proposing coding for new law in Minnesota Statutes, chapter 241.

Reported the same back with the recommendation that the bill be re-referred to the Committee on Judiciary Finance without further recommendation.

The report was adopted.

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

H. F. No. 2174, A bill for an act relating to investment; establishing an education investment fund; providing tax incentives for savings for education and other purposes; amending Minnesota Statutes 1994, sections 290.01,

subdivision 19a; and 290.091, subdivisions 2 and 6; Minnesota Statutes 1995 Supplement, section 290.01, subdivision 19b; proposing coding for new law in Minnesota Statutes, chapters 11A; 136A; and 290.

Reported the same back with the following amendments:

Page 1, line 17, after the period, insert "Accounts may be established within the fund for specific fields of study or geographical areas to which a corporation or individual wishes to contribute. Accounts may not be established that discriminate on the basis of race, ethnicity, or gender."

Page 2, line 12, after "grant" insert "from an account within the fund"

With the recommendation that when so amended 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. 2215, A bill for an act relating to government data practices; providing a statutory process for expungement of certain arrest or conviction records; modifying grounds for expungement in certain cases; amending Minnesota Statutes 1994, sections 242.31, subdivision 2; and 299C.13; Minnesota Statutes 1995 Supplement, sections 152.18, subdivision 1; 242.31, subdivision 1; and 299C.11; proposing coding for new law as Minnesota Statutes, chapter 609A; repealing Minnesota Statutes 1994, sections 152.18, subdivision 2; 242.31, subdivision 3; 609.166; 609.167; and 609.168.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 1995 Supplement, section 152.18, subdivision 1, is amended to read:

Subdivision 1. If any person who has not previously participated in or completed a diversion program authorized under section 401.065 or who has not previously been placed on probation without a judgment of guilty and thereafter been discharged from probation under this section is found guilty of a violation of section 152.024, subdivision 2, 152.025, subdivision 2, or 152.027, subdivision 2, 3, or 4, for possession of a controlled substance, after trial or upon a plea of guilty, and the court determines that the violation does not qualify as a subsequent controlled substance conviction under section 152.01, subdivision 16a, the court may, without entering a judgment of guilty and with the consent of the person, defer further proceedings and place the person on probation upon such reasonable conditions as it may require and for a period, not to exceed the maximum sentence provided for the violation. The court may give the person the opportunity to attend and participate in an appropriate program of education regarding the nature and effects of alcohol and drug abuse as a stipulation of probation. Upon violation of a condition of the probation, the court may enter an adjudication of guilt and proceed as otherwise provided. The court may, in its discretion, dismiss the proceedings against the person and discharge the person from probation before the expiration of the maximum period prescribed for the person's probation. If during the period of probation the person does not violate any of the conditions of the probation, then upon expiration of the period the court shall discharge the person and dismiss the proceedings against that person. Discharge and dismissal under this subdivision shall be without court adjudication of guilt, but a not public record of it shall be retained by the department of public safety bureau of criminal apprehension for the purpose of use by the courts in determining the merits of subsequent proceedings against the person. The not public record may also be opened only upon court order for purposes of a criminal investigation, prosecution, or sentencing. Upon request by law enforcement, prosecution, or corrections authorities, the department bureau shall notify the requesting party of the existence of the not public record and the right to seek a court order to open it pursuant to this section. The court shall forward a record of any discharge and dismissal under this subdivision to the department of public safety who bureau which shall make and maintain the not public record of it as provided under this subdivision. The discharge or dismissal shall not be deemed a conviction for purposes of disqualifications or disabilities imposed by law upon conviction of a crime or for any other purpose.

For purposes of this subdivision, "not public" has the meaning given in section 13.02, subdivision 8a.

Sec. 2. Minnesota Statutes 1995 Supplement, section 242.31, subdivision 1, is amended to read:

Subdivision 1. Whenever a person who has been committed to the custody of the commissioner of corrections upon conviction of a crime following certification under the provisions of section 260.125 is finally discharged by order of the commissioner, that discharge shall restore the person to all civil rights and, if so ordered by the commissioner of corrections, also shall have the effect of setting aside the conviction, nullifying it and purging the person of it. The commissioner shall file a copy of the order with the district court of the county in which the conviction occurred; upon receipt, the court shall order the conviction set aside. An order setting aside a conviction for a crime of violence as defined in section 624.712, subdivision 5, must provide that the person is not entitled to ship, transport, possess, or receive a firearm until ten years have elapsed since the order was entered and during that time the person was not convicted of any other crime of violence. A person whose conviction was set aside under this section and who thereafter has received a relief of disability under United States Code, title 18, section 925, shall not be subject to the restrictions of this subdivision.

Sec. 3. Minnesota Statutes 1994, section 242.31, subdivision 2, is amended to read:

Subd. 2. Whenever a person described in subdivision 1 has been placed on probation by the court pursuant to section 609.135 and, after satisfactory fulfillment of it, is discharged from probation, the court shall issue an order of discharge pursuant to subdivision 2a and section 609.165. On application of the defendant or on its own motion and after notice to the county attorney, the court in its discretion may also order that the defendant's conviction be set aside with the same effect as a court order under subdivision 1.

These orders restore This order restores the defendant to civil rights and purge and free the defendant from all penalties and disabilities arising from the defendant's conviction and the conviction shall not thereafter be used against the defendant, except in a criminal prosecution for a subsequent offense if otherwise admissible therein. In addition, the record of the defendant's conviction shall be sealed and may be opened only upon court order for purposes of a criminal investigation, prosecution, or sentencing. Upon request by law enforcement, prosecution, or corrections authorities, the court or the department of public safety shall notify the requesting party of the existence of the sealed record and the right to seek a court order to open it pursuant to this section.

Sec. 4. Minnesota Statutes 1995 Supplement, section 299C.11, is amended to read:

299C.11 [IDENTIFICATION DATA FURNISHED TO BUREAU.]

The sheriff of each county and the chief of police of each city of the first, second, and third classes shall furnish the bureau, upon such form as the superintendent shall prescribe, with such finger and thumb prints, photographs, distinctive physical mark identification data, and other identification data as may be requested or required by the superintendent of the bureau, which may be taken under the provisions of section 299C.10, of persons who shall be convicted of a felony, gross misdemeanor, or who shall be found to have been convicted of a felony or gross misdemeanor, within ten years next preceding their arrest. Upon the determination of all pending criminal actions or proceedings in favor of the arrested person, and the granting of the petition of the arrested person under chapter 609A, the bureau shall, upon demand, have all such finger and thumb prints, seal photographs, distinctive physical mark identification data, and other identification data, and all copies and duplicates thereof, returned, provided of them, if it is not established by the arrested person that the arrested person has not been convicted of any felony, gross misdemeanor, or a similar misdemeanor, either within or without the state, within the period of ten years immediately preceding such determination. The expunged photographs, distinctive physical mark identification data, and other identification data shall not be destroyed but shall be sealed and may be opened upon statutory authorization, or upon an ex parte court order for purposes of criminal investigation, prosecution, or sentencing. Finger and thumbprints and DNA samples and DNA records of the arrested person shall not be returned, sealed, or destroyed.

For purposes of this section, "determination of all pending criminal actions or proceedings in favor of the arrested person" does not include:

(1) the sealing of a criminal record pursuant to section 152.18, subdivision 1, 242.31, or 609.168 chapter 609A; or

(2) the arrested person's successful completion of a diversion program;

(3) an order of discharge under section 609.165; or

(4) a pardon granted under section 638.02.

Sec. 5. Minnesota Statutes 1994, section 299C.13, is amended to read:

299C.13 [INFORMATION FURNISHED TO PEACE OFFICERS.]

Upon receipt of information data as to any arrested person, the bureau shall immediately ascertain whether the person arrested has a criminal record or is a fugitive from justice, and shall at once inform the arresting officer of the facts ascertained. Upon application by any sheriff, chief of police, or other peace officer in the state, or by an officer of the United States or by an officer of another state, territory, or government duly authorized to receive the same and effecting reciprocal interchange of similar information with the division, it shall be the duty of the bureau to furnish all information in its possession pertaining to the identification of any person. If the bureau has a sealed record on the arrested person, it shall notify the requesting peace officer of that fact and of the right to seek a court order to open the record for purposes of law enforcement. A criminal justice agency shall be notified, upon request, of the existence and contents of a sealed record containing conviction information about an applicant for employment. For purposes of this section, a "criminal justice agency" means a court or a government agency that performs the administration of criminal justice under statutory authority and which allocates a substantial part of its annual budget to the administration of criminal justice.

Sec. 6. [609A.01] [CRIMINAL RECORDS EXPUNGEMENT.]

Subdivision 1. [DEFINITION.] "Expungement" means the sealing of records and disclosing their existence or opening them only under court order or statutory authority. "Expungement" shall not include the destruction of records or their return to an arrested or convicted individual.

Subd. 2. [SCOPE OF CHAPTER.] This chapter provides the grounds and procedure for expungement of criminal arrest or conviction records under sections 13.82; 152.18, subdivision 1; 299C.11; or other applicable law.

Sec. 7. [609A.02] [GROUNDS FOR EXPUNGEMENT ORDER.]

Subdivision 1. [CERTAIN CONTROLLED SUBSTANCE OFFENSES.] Upon the dismissal and discharge of proceedings against a person under section 152.18, subdivision 1, for violation of section 152.024, 152.025, or 152.027 for possession of a controlled substance, or on other grounds permitted by law, the person may petition under section 609A.03 for expungement of all records relating to the arrest, indictment or information, trial and dismissal and discharge.

Subd. 2. [JUVENILES PROSECUTED AS ADULTS.] A petition for expungement of a conviction record may be filed under section 609A.03 by a person who has been committed to the custody of the commissioner of corrections upon conviction of a crime following certification to district court under section 260.125, if the person:

(1) is finally discharged by the commissioner; or

(2) has been placed on probation by the court under section 609.135 and has been discharged from probation after satisfactory fulfillment of it.

Subd. 3. [EXPUNGEMENT PROHIBITED.] Expungement shall not be sought and shall not be granted for the record of a conviction of an offense for which registration is required under section 243.166.

Sec. 8. [609A.03] [PETITION TO EXPUNGE CRIMINAL ARREST OR CONVICTION RECORDS.]

Subdivision 1. [PETITION; FILING FEE.] An individual who is the subject of a criminal arrest or conviction record who is seeking the expungement of the record shall file a petition under this section and pay a filing fee in the amount required under section 357.021, subdivision 2, clause (1). The filing fee may be waived in cases of indigency.

Subd. 2. [CONTENTS OF PETITION.] A petition for expungement shall be signed under oath by the petitioner and shall state the following:

(1) the petitioner's full name and all other legal names or aliases by which the petitioner has been known at any time;

(2) the petitioner's date of birth;

(3) all of the petitioner's addresses from the date of the offense or alleged offense in connection with which an expungement order is sought, to the date of the petition;

(4) why expungement is sought, if it is for employment or licensure purposes, the statutory or other legal authority under which it is sought, and why it should be granted;

(5) the details of the offense or arrest for which expungement is sought, including date and jurisdiction of the occurrence, court file number, and date of conviction or of dismissal;

(6) in the case of a conviction, what steps the petitioner has taken since the time of the offense toward personal rehabilitation, including treatment, work, or other personal history that demonstrates rehabilitation;

(7) the petitioner's criminal conviction record indicating all convictions for misdemeanors, gross misdemeanors, or felonies in this state, and for all comparable convictions in any other state, federal court, or foreign country, whether the convictions occurred before or after the arrest or conviction for which expungement is sought; and

(8) all prior requests by the petitioner, whether for the present arrest or conviction or for any other arrest or conviction, in this state or any other state or federal court, for pardon, return of arrest records, or expungement or sealing of a criminal record, whether granted or not, and all stays of adjudication or imposition of sentence involving the petitioner.

Subd. 3. [SERVICE OF PETITION.] The petition for expungement and a proposed expungement order shall be served by mail on the state and local government agencies and jurisdictions whose records would be affected by the proposed order. Service shall also be made by mail on the attorney for each agency and jurisdiction.

Subd. 4. [HEARING.] A hearing on the petition shall be held not sooner than 60 days after service of the petition.

Subd. 5. [NATURE OF REMEDY; STANDARD; FIREARMS RESTRICTION.] (a) Expungement of an arrest or conviction record is an extraordinary remedy to be granted only upon clear and convincing evidence that it would yield a benefit to the petitioner commensurate with the disadvantages to the public and public safety of:

(1) sealing the record; and

(2) burdening the court and public authorities to issue, enforce, and monitor an expungement order.

(b) If the court issues an expungement order it may require that:

(1) the record of an arrest or conviction shall be sealed, the existence of the record shall not be revealed, and the record shall not be opened except as required under subdivision 7; or

(2) the record of a conviction shall not be sealed but shall indicate that expungement of the record was granted.

(c) An order expunging the record of a conviction for a crime of violence as defined in section 624.712, subdivision 5, must provide that the person is not entitled to ship, transport, possess, or receive a firearm until ten years have elapsed since the order was entered and during that time the person was not convicted of any other crime of violence. Any person whose record of conviction is expunged under this section and who thereafter receives a relief of disability under United States Code, title 18, section 925, is not subject to the restriction in this paragraph.

Subd. 6. [ORDER CONCERNING CONTROLLED SUBSTANCE OFFENSES.] If the court orders the expungement of the record of proceedings under section 152.18, the effect of the order shall be to restore the person, in the contemplation of the law, to the status the person occupied before the arrest, indictment, or information. The person shall not be held guilty of perjury or otherwise of giving a false statement if the person fails to acknowledge the arrest, indictment, information, or trial in response to any inquiry made for any purpose.

Subd. 7. [LIMITATIONS OF ORDER.] (a) Upon issuance of an expungement order related to an arrest, the finger and thumbprints, DNA samples, and DNA records held by the bureau of criminal apprehension or any other law enforcement agency shall not be sealed, returned, or destroyed.

(b) Notwithstanding the issuance of an expungement order under this chapter:

(1) an expunged record of an arrest or conviction may be opened for purposes of a criminal investigation, prosecution, or sentencing upon an ex parte court order; and

(2) an expunged record of a conviction may be opened for purposes of evaluating a prospective employee in a criminal justice agency without a court order.

Upon request by law enforcement, prosecution, or corrections authorities, an agency or jurisdiction subject to an expungement record shall inform the requester of the existence of a sealed record and of the right to obtain access to it as provided by this paragraph. For purposes of this section, a "criminal justice agency" means a court or a government agency that performs the administration of criminal justice under statutory authority and which allocates a substantial part of its annual budget to the administration of criminal justice.

Subd. 8. [STAY OF ORDER; APPEAL.] An expungement order shall be automatically stayed for 60 days after filing of the order and, if the order is appealed, during the appeal period. A person or an agency or jurisdiction whose records would be affected by the order may appeal the order within 60 days of service of notice of filing of the order. An agency or jurisdiction or officials or employees thereof need not file a cost bond or supersedeas bond in order to further stay the proceedings or file an appeal.

Subd. 9. [DISTRIBUTION OF EXPUNGEMENT ORDERS.] If an expungement order is issued, the court administrator shall send a copy of it to each agency and jurisdiction whose records are affected by the terms of the order.

Sec. 9. [REPEALER.]

Minnesota Statutes 1994, sections 152.18, subdivision 2; 242.31, subdivision 3; 609.166; 609.167; and 609.168, are repealed.

Sec. 10. [EFFECTIVE DATE; APPLICATION.]

Sections 1 to 9 are effective the day following final enactment and apply to requests for expungement of criminal arrest or conviction records initiated on or after that date."

Delete the title and insert:

"A bill for an act relating to government data practices; providing a statutory process for expungement of certain arrest or conviction records; modifying grounds for expungement in certain cases; amending Minnesota Statutes 1994, sections 242.31, subdivision 2; and 299C.13; Minnesota Statutes 1995 Supplement, sections 152.18, subdivision 1; 242.31, subdivision 1; and 299C.11; proposing coding for new law as Minnesota Statutes, chapter 609A; repealing Minnesota Statutes 1994, sections 152.18, subdivision 2; 242.31, subdivision 3; 609.166; 609.167; and 609.168."

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. 2282, A bill for an act relating to water; modifying provisions of the reinvest in Minnesota resources program; amending Minnesota Statutes 1994, section 103F.515, subdivisions 2, 3, and 6.

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. 2292, A bill for an act relating to public safety; authorizing state patrol to operate white patrol vehicles; amending Minnesota Statutes 1994, section 169.98, subdivision 1.

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.

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

H. F. No. 2350, A bill for an act relating to state government; providing for periodic repeal of administrative rules; proposing coding for new law in Minnesota Statutes, chapter 14.

Reported the same back with the following amendments:

Page 2, line 28, after "does" insert "not"

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

The report was adopted.

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

H. F. No. 2351, A bill for an act relating to the environment; providing that no permits may be issued for certain projects on the Mississippi river; amending Minnesota Statutes 1994, section 116G.151; Minnesota Statutes 1995 Supplement, section 116G.15; proposing coding for new law in Minnesota Statutes, chapter 116G.

Reported the same back with the following amendments:

Page 1, line 11, delete ", retrofitting,"

Page 1, delete lines 12 and 13

Page 1, line 14, delete "heating, or"

Page 2, delete lines 5 to 8

Page 2, line 10, delete "greenhouse gases and"

Page 2, line 12, delete "or burn coal"

Page 2, line 16, delete everything after "facility" and insert a period

Page 2, delete lines 17 and 18

Pages 2 and 3, delete section 2

Renumber the sections in sequence

Amend the title as follows:

Page 1, line 5, delete everything after the semicolon

Page 1, line 6, delete "116G.15;"

With the recommendation that when so amended the bill pass.

The report was adopted.

Osthoff from the Committee on Financial Institutions and Insurance to which was referred:

H. F. No. 2369, A bill for an act relating to financial institutions; regulating consumer credit; modifying rates, fees, and other terms and conditions; providing clarifying and technical changes; providing opportunities for state banks to develop their Minnesota markets through broader intrastate branching; regulating the use of credit cards by institutions; modifying interest rates, fees, and other terms and conditions governing the use of credit cards; providing

technical corrections; amending Minnesota Statutes 1994, sections 9.031, subdivision 13; 45.025, subdivision 1; 46.041, subdivision 1; 46.044, subdivision 1; 47.016, subdivision 2, and by adding a subdivision; 47.10, subdivision 4; 47.201, subdivision 2; 47.51; 47.62, subdivision 1; 48.09; 48.10; 48.185, subdivisions 3 and 4; 48.301; 48.34; 48.61, by adding a subdivision; 48.845, subdivision 4; 52.131; 53.01; 53.03, subdivision 1; 53.07, subdivision 2; 118.005, subdivision 1; 168.69; 168.705; 168.71; 168.72, by adding a subdivision; 168.73; 300.025; 332.21; 334.02; and 334.03; Minnesota Statutes 1995 Supplement, sections 46.048, subdivision 2b; 47.20, subdivision 9; 47.52; 47.59, subdivisions 2, 3, 4, 5, 6, and by adding subdivisions; 47.60, subdivision 2; 47.61, subdivision 3; 48.153, subdivision 3a; 48.194; 48.65; 50.1485, subdivision 1; 50.245, subdivision 4; 53.04, subdivision 3a; 53.09, subdivision 2; 56.131, subdivisions 2, 4, and 6; 56.14; and 62B.04, subdivisions 1 and 2; Laws 1995, chapter 171, section 70; proposing coding for new law in Minnesota Statutes, chapter 49; repealing Minnesota Statutes 1994, sections 13.99, subdivision 13; 47.201, subdivision 7; 47.27, subdivision 3; 48.94; 51A.01; 51A.02, subdivisions 1, 2, 3, 4, 5, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38, 39, 41, 42, 43, 44, 45, 46, 47, 48, 49, 50, 51, 52, 53, 55, and 56; 51A.03; 51A.04; 51A.041; 51A.05; 51A.06; 51A.065; 51A.07; 51A.08; 51A.09; 51A.10; 51A.11; 51A.12; 51A.13; 51A.131; 51A.14; 51A.15; 51A.16; 51A.17; 51A.19, subdivisions 1, 4, 5, 6, 7, 8, 10, 11, 12, and 13; 51A.20; 51A.21, subdivisions 1, 2, 3, 4, 5, 6a, 6b, 7, 8, 9, 10, 11, 12, 13, 14, 15, 17, 18, 20, 21, 22, 23, 24, 25, 26, and 27; 51A.22; 51A.23, subdivision 6; 51A.24; 51A.251; 51A.261; 51A.262; 51A.27; 51A.28; 51A.29; 51A.30; 51A.31; 51A.32; 51A.33; 51A.34; 51A.35; 51A.361; 51A.37; 51A.38; 51A.40; 51A.41; 51A.42; 51A.43; 51A.44; 51A.45; 51A.46; 51A.47; 51A.48; 51A.51; 51A.52; 51A.54; 51A.55; 51A.56; 51A.57; and 53.04, subdivision 3b; Minnesota Statutes 1995 Supplement, sections 51A.02, subdivisions 6, 7, 26, 40, and 54; 51A.19, subdivision 9; 51A.21, subdivision 28; 51A.23, subdivisions 1 and 7; 51A.386; 51A.50; 51A.53; 51A.58; and 53.04, subdivision 3c.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

Section 1. Minnesota Statutes 1994, section 9.031, subdivision 13, is amended to read:

Subd. 13. [REQUIRED COMMUNITY REINVESTMENT RATING.] Banks and trust companies designated as depositories must have received ratings of "outstanding" or "satisfactory" as their most recent rating under section 47.83 or under United States Code, title 12, section 2906. If a state depository receives a rating that is below "satisfactory," the executive council shall revoke its designation as a depository. The executive council may delay the effective date of the revocation if necessary to allow a reasonable period of time to arrange for a replacement depository.

Sec. 2. Minnesota Statutes 1994, section 13.71, is amended by adding a subdivision to read:

Subd. 21. [BANK CHARTER TRADE SECRETS DATA.] Trade secret data provided in bank charter applications is classified under section 46.041, subdivision 1.

Sec. 3. Minnesota Statutes 1994, section 46.041, subdivision 1, is amended to read:

Subdivision 1. [FILING; FEE; PUBLIC INSPECTION.] The incorporators of a bank proposed to be organized under the laws of this state shall execute and acknowledge a written application in the form prescribed by the commissioner of commerce. The application must be signed by two or more of the incorporators and request a certificate authorizing the proposed bank to transact business at the place and in the name stated in the application. The applicant shall file the application with the department with a $1,000 filing fee and a $500 investigation fee. The fees must be turned over by the commissioner to the state treasurer and credited to the general fund. The application file must be public, with the exception of financial data on individuals which is private under the Minnesota government data practices act and data as defined as trade secret information under section 13.37, subdivision 1, paragraph (b), which must be given nonpublic classification upon written request by the applicant.

Sec. 4. Minnesota Statutes 1994, section 46.044, subdivision 1, is amended to read:

Subdivision 1. [CHARTERS ISSUED, CONDITIONS.] An application must be granted if (1) the applicants are of good moral character and financial integrity, (2) there is a reasonable public demand for this bank in this location, (3) the organization expenses being paid by the bank do not exceed those allowed by section 46.043, (4) the probable volume of business in this location is sufficient to insure and maintain the solvency of the new bank and the solvency

of the then existing bank or banks in the locality without endangering the safety of any bank in the locality as a place of deposit of public and private money, (5) the commissioner of commerce is satisfied that the proposed bank will be properly and safely managed, and (6) the commissioner is satisfied that the capital funds required pursuant to section 48.02 are available and the commissioner may accept any reasonable demonstration including subscription agreements supported by current financial statements, and (7) the applicant, if it is an interstate bank holding company, as defined in section 48.92, has provided developmental loans as required by section 48.991, and has complied with the net new funds reporting requirements of section 48.93, the application must be granted; otherwise. If the application does not satisfy the requirements of this subdivision, it must be denied. In case of the denial of the application, the commissioner of commerce shall specify the grounds for the denial. A person aggrieved, may obtain judicial review of the determination in accordance with chapter 14.

Sec. 5. Minnesota Statutes 1995 Supplement, section 46.048, subdivision 2b, is amended to read:

Subd. 2b. [NOTICE.] Upon the filing of an application a notice:

(1) an applicant acquiring party shall publish once in a newspaper of general circulation notice of the proposed acquisition in a form acceptable to the commissioner; and

(2) the commissioner shall accept public comment on an application a notice for a period of not less than 30 days from the date of the publication required by clause (1).

Sec. 6. Minnesota Statutes 1994, section 47.10, subdivision 4, is amended to read:

Subd. 4. [APPROVAL OF CERTAIN INSIDER AGREEMENTS.] No bank, trust company, savings bank, or savings association may purchase or, sell, or lease real property, personal property, improvements or equipment of a value of $25,000 or more if the purchaser or, seller, lessor, or lessee other than the bank, trust company, savings bank, or savings association has an existing direct or indirect interest in the institution without prior written approval by the commissioner. Each bank, trust company, savings bank, or savings association must maintain documentation of transactions with interested parties, including personal property leases and purchases or sales of under $25,000, which demonstrates the commercial reasonableness and fair market value of the transaction.

Sec. 7. Minnesota Statutes 1994, section 47.101, as amended by Laws 1995, chapter 202, article 1, section 25, is amended to read:

47.101 [PLACE OF BUSINESS; RELOCATION, DISPOSAL.]

Subdivision 1. [APPROVAL.] A bank, trust company, savings bank, or savings association may change its location, dispose of its place of business, and acquire another upon the written approval of the commissioner of commerce or otherwise as provided for in this section.

Subd. 2. [BANKING INSTITUTIONS; CERTAIN RELOCATIONS, APPLICATIONS, NOTICE, APPROVAL.] A banking institution defined in section 48.01, subdivision 2, desiring to relocate its main office within the lesser of a radius of three miles measured in a straight line or the municipality, as defined in section 47.51, in which it is located shall submit an application notify the commissioner of commerce in a form prescribed by the commissioner of commerce, an investigation fee of $500 and additional fees as prescribed in section 46.041 if subsequently processed under subdivision 3. After the application is deemed to be complete and accepted by the commissioner of commerce,. The applicant shall publish once in a form prescribed by the commissioner a notice of the filing of the application relocation in a qualified newspaper published in the municipalities municipality where the banking institution is located and relocating if different. If there are no such newspapers, then notice of the filing shall be published in qualified newspapers likely to give notice in the existing and proposed municipalities municipality. The applicant shall cause the notice to be publicly displayed in its lobby and sent by certified mail to all banking institutions within three miles of the proposed location measured in a straight line. Upon expiration of a period of 21 days for comment, the commissioner, after considering the applicable conditions for issuance of the bank charter defined in section 46.044, shall within 60 days approve or disapprove the application.

Subd. 3. [APPLICATIONS TO DEPARTMENT OF COMMERCE.] An application by a banking institution to relocate its main office outside a radius of three miles measured in a straight line other than those provided for in subdivision 2 shall be approved or disapproved by the commissioner of commerce as provided for in sections 46.041 and 46.044.

Sec. 8. Minnesota Statutes 1995 Supplement, section 47.20, subdivision 9, is amended to read:

Subd. 9. (1) For purposes of this subdivision the term "mortgagee" shall mean all state banks and trust companies, national banking associations, state and federally chartered savings associations, mortgage banks, savings banks, insurance companies, credit unions or assignees of the above. Each mortgagee requiring funds of a mortgagor to be paid into an escrow, agency or similar account for the payment of taxes or insurance premiums with respect to a mortgaged one-to-four family, owner occupied residence located in this state, unless the account is required by federal law or regulation or maintained in connection with a conventional loan in an original principal amount in excess of 80 percent of the lender's appraised value of the residential unit at the time the loan is made or maintained in connection with loans insured or guaranteed by the secretary of housing and urban development, by the administrator of veterans affairs, or by the administrator of the farmers home administration, shall calculate interest on such funds at a rate of not less than five percent per annum. Such interest shall be computed on the average monthly balance in such account on the first of each month for the immediately preceding 12 months of the calendar year or such other fiscal year as may be uniformly adopted by the mortgagee for such purposes and shall be annually credited to the remaining principal balance on the mortgage, or at the election of the mortgagee, paid to the mortgagor or credited to the mortgagor's account. If the interest exceeds the remaining balance, the excess shall be paid to the mortgagor or vendee. The requirement to pay interest shall apply to such accounts created prior to June 1, 1976, as well as to accounts created after June 1, 1976.

(2) A mortgagee offering the following option (c) to a mortgagor but not requiring maintenance of escrow accounts as described in clause (1), whether or not the accounts were required by the mortgagee or were optional with the mortgagor, shall offer to each of such mortgagors the following options:

(a) the mortgagor may personally manage the payment of insurance and taxes;

(b) the mortgagor may open with the mortgagee a passbook savings account carrying the current rate of interest being paid on such accounts by the mortgagee in which the mortgagor can deposit the funds previously paid into the escrow account; or

(c) the mortgagor may elect to maintain a noninterest bearing escrow account as described in clause (1) to be serviced by the mortgagee at no charge to the mortgagor.

A mortgagee that is not a depository institution offering passbook savings accounts shall instead of offering option (b) above notify its mortgagors (1) that they may open such accounts at a depository institution and (2) of the current maximum legal interest rate on such accounts.

A mortgagee offering option (c) above to a mortgagor but not requiring the maintenance of escrow accounts shall notify its mortgagor of the options under (a), (b) and (c). The notice shall state the option and state that an escrow account is not required by the mortgagee, that the mortgagor is legally responsible for the payment of taxes and insurance, and that the notice is being given pursuant to this subdivision.

Notice shall be given within 30 days after the effective date of the provisions of Laws 1977, chapter 350 amending the subdivision, as to mortgagees offering option (c) above to mortgagors but not requiring escrow accounts as of the effective date, or within 30 days after a mortgagee's decision to discontinue requiring escrow accounts if the mortgagee continues to offer option (c) above to mortgagors. If no reply is received within 30 days, option (c) shall be selected for the mortgagor but the mortgagor may, at any time, select another option.

A mortgagee making a new mortgage and offering option (c) above to a prospective mortgagor shall, at the time of loan application, notify the prospective mortgagor of options (a), (b) and (c) above which must be extended to the prospective mortgagor. The mortgagor shall select one of the options at the time the loan is made.

Any notice required by this clause shall be on forms approved by the commissioner of commerce and shall provide that at any time a mortgagor may select a different option. The form shall contain a blank where the current passbook rate of interest shall be entered by the mortgagee. Any option selected by the mortgagor shall be binding on the mortgagee.

This clause does not apply to escrow accounts which are excepted from the interest paying requirements of clause (1).

(3) A mortgagee shall be prohibited from charging a direct fee for the administration of the escrow account.

Sec. 9. Minnesota Statutes 1994, section 47.201, subdivision 2, is amended to read:

Subd. 2. [AUTHORIZATION.] Notwithstanding the provisions of sections section 334.01, subdivision 1, and 51A.37, subdivision 3, clause (d), any financial institution is authorized to make graduated payment home loans and purchases representing graduated payment home loans pursuant to such rules as the commissioner of commerce finds to be necessary and proper, if any, at an interest rate not in excess of the maximum lawful interest rate prescribed in section 47.20, subdivision 4a. Notwithstanding the provisions of section 334.01, subdivision 1, where initial repayments of a graduated payment home loan are less than the total accrued outstanding interest, the excess accrued and unpaid interest may be added to the outstanding loan balance on which interest accrues at the contracted rate.

Sec. 10. Minnesota Statutes 1995 Supplement, section 47.61, subdivision 3, is amended to read:

Subd. 3. (a) "Electronic financial terminal" means an electronic information processing device that is established to do either or both of the following:

(1) capture the data necessary to initiate financial transactions; or

(2) through its attendant support system, store or initiate the transmission of the information necessary to consummate a financial transaction.

(b) "Electronic financial terminal" does not include:

(1) a telephone;

(2) an electronic information processing device that is used internally by a financial institution to conduct the business activities of the institution; or

(3) an electronic point-of-sale terminal operated by a retailer that is used to process payments for the purchase of goods and services by consumers, and which also may be used to obtain cash advances or cash back not to exceed $25 and only if incidental to the retail sale transactions, through the use of credit cards or debit cards, provided that the payment transactions using debit cards are subject to the federal Electronic Funds Transfer Act, United States Code, title 12, sections 1693 et seq., and Regulation E of the Federal Reserve Board, Code of Federal Regulations, title 12, subpart 205.2; this clause does not exempt the retailer from liability for negligent conduct or intentional misconduct of the operator under section 47.69, subdivision 5.

Sec. 11. Minnesota Statutes 1994, section 48.09, is amended to read:

48.09 [DIVIDENDS; SURPLUS.]

Subdivision 1. [CREATION OF SURPLUS FUND.] At the end of each dividend period, after deducting all necessary expenses, losses, amounts receivable more than one year overdue and not well secured, interest, and taxes due or levied, all of the remaining net profits for the period shall be set aside as a surplus fund, if the surplus fund of the banking institution is not then equal to one-fifth of the capital stock. If the surplus fund is more than one-fifth of the capital stock, ten percent of the remaining net profits for the period shall be set aside as a surplus fund until it equals 50 percent of the capital stock. The directors may then declare a dividend of so much of the remainder as they may think expedient, subject to the commissioner's approval. When in any way impaired the surplus fund shall be raised to this percentage in like manner.

Subd. 2. [UNDECLARED NET PROFITS, PRIOR DIVIDEND PERIODS.] Any amount of remaining net profits qualifying for dividend declaration in subdivision 1 and not declared at the end of each annual dividend period may be subject to dividend declaration under the requirements of subdivision 1 during any of the three subsequent annual dividend periods.

Sec. 12. Minnesota Statutes 1994, section 48.10, is amended to read:

48.10 [ANNUAL AUDIT; REPORT.]

The board of directors shall annually examine the books of a bank, bank and trust, and trust company, either in person, or by appointing an examining committee, or an auditor, who may be an independent auditor or accountant. The examining committee or auditor shall be solely responsible to the directors. A report shall be made to the

directors as to the scope of the examination or audit, and also to show those assets, excluding marketable securities and fixed assets, which are carried on the books for more than actual value. This report shall be retained as a permanent record or incorporated in the minutes of the meeting, and a copy of the report shall be sent to the commissioner of commerce.

Sec. 13. Minnesota Statutes 1995 Supplement, section 48.153, subdivision 3a, is amended to read:

Subd. 3a. A savings bank organized under chapter 50, a savings association subject to the provisions of sections 51A.01 to 51A.57, or a savings association chartered under the laws of the United States, that has its principal place of business in this state, may make a loan for consumer purposes to a natural person in an amount not exceeding $25,000 repayable in installments, and may charge a rate of interest upon the unpaid principal balance of the amount financed of 12 percent a year, or the rate of interest authorized by section 48.195, whichever is greater. If the rate of interest charged is permitted by section 48.195 at the time the loan is made, the rate does not later become usurious because of a fluctuation in the federal discount rate.

Sec. 14. Minnesota Statutes 1995 Supplement, section 48.194, is amended to read:

48.194 [INSTALLMENT SALES CONTRACTS; LOANS.]

A person may enter into a credit sale or service contract for sale to a state or national bank doing business in this state, and a bank may purchase and enforce the contract under the terms and conditions set forth in sections section 47.59, subdivisions 2 and 4 to 14; and 51A.386, subdivision 4. A state bank or national bank may extend credit pursuant to the terms and conditions set forth in sections 47.59, and 47.60, and 51A.386, subdivision 4.

Sec. 15. Minnesota Statutes 1994, section 48.301, is amended to read:

48.301 [MULTIPARTY ACCOUNTS.]

When any deposit is made in the names of two or more persons jointly, or by any person payable on death (P.O.D.) to another, or by any person in trust for another, the rights of the parties and the financial institution are determined by chapter 528 524.

Sec. 16. Minnesota Statutes 1995 Supplement, section 48.65, is amended to read:

48.65 [TRUST COMPANIES TO COMPLY WITH CERTAIN LAWS.]

No trust company of this state shall conduct a banking business, as defined in section 47.02, exercising deposit taking powers, without fully complying with the provisions of section 48.221 relating to the reserve requirements of the state banks.

Sec. 17. Minnesota Statutes 1994, section 48.845, subdivision 4, is amended to read:

Subd. 4. "Affiliated bank" with respect to another bank or a trust company means any bank which is owned or controlled by the corporation which owns or controls that other bank or trust company, including a wholly owned subsidiary of the other bank or trust company.

Sec. 18. Minnesota Statutes 1995 Supplement, section 50.1485, subdivision 1, is amended to read:

Subdivision 1. [GENERALLY.] In addition to other investments authorized by law, a savings bank may make, purchase, or invest in:

(a) loans secured by the pledge of policies of life insurance, the assignment of which is properly acknowledged by the insurer;

(b) consumer loans, which may be unsecured or secured by personal or real property. Consumer loans include, but are not limited to, closed-end installment loans, single payment loans, nonamortizing loans, open-end revolving line of credit loans, credit card loans and extensions of credit, and overdraft protection loans. For the purpose of this paragraph, "consumer loan" means a loan made by the savings bank in which: (1) the debtor is a person other than an organization; (2) the debt is incurred primarily for personal, family, or household purpose; and (3) the debt is payable in installments or a finance charge is made;

(c) secured and unsecured loans to organizations and natural persons for business or commercial purposes. For the purpose of this paragraph, "organization" means a corporation, government or governmental subdivision, or agency, trust, estate, partnership, limited liability partnership, limited liability company, joint venture, cooperative, or association. "Business or commercial purpose" means a purpose other than personal, family, household, or agricultural purpose;

(d) secured and unsecured loans for agricultural purposes. For the purpose of this paragraph, "agricultural purpose" means a purpose relating to the production, harvest, exhibition, marketing, transportation, processing, or manufacture of agricultural products. "Agricultural products" includes agricultural, horticultural, viticultural, and dairy products, livestock, wildlife, poultry, bees, and forest products, and products raised or produced on farms, including processed or manufactured products;

(e) credit sale contracts, which means a sale of goods, services, or an interest in land in which credit is granted by a seller who regularly engages as a seller in credit transactions of the same kind, and the debt is payable in installments or a finance charge is made;

(f) loans on the security of deposit accounts;

(g) real estate loans, subject to the conditions applicable to savings associations under section 51A.38 and Minnesota Statutes 1994, section 51A.385. "Real estate loans" which include a loan or other obligation secured by a first lien on real estate in fee or in a leasehold extending or renewable automatically for a period of at least ten years beyond the date scheduled for the final principal payment of the loan or obligation, or a transaction out of which a first lien or claim is created against the real estate, including the purchase of the real estate in fee by a savings bank and the concurrent or immediate sale of it on installment contract;

(h) secured or unsecured loans for the purpose of repair, improvement, rehabilitation, or furnishing of real estate;

(i) loans for the purpose of financing or refinancing an ownership interest in certificates of stock, certificates of beneficial interest, or other evidence of an ownership interest in, or a proprietary lease from, a corporation, limited liability company, trust, limited liability partnership, or partnership formed for the purpose of the cooperative ownership of real estate, secured by the assignment or transfer of certificates or other evidence of ownership of the borrower;

(j) loans guaranteed or insured, in whole or in part, by the United States or any of its instrumentalities;

(k) issuance of letters of credit or other similar arrangements; and

(l) any other type of loan authorized by rules adopted by the commissioner.

Sec. 19. Minnesota Statutes 1995 Supplement, section 50.245, subdivision 4, is amended to read:

Subd. 4. [PROCEDURAL REQUIREMENTS.] Procedural requirements equivalent to those contained in sections 48.90 to 48.991 48.995 apply to reciprocal interstate branching and acquisitions by savings banks and savings bank holding companies.

Sec. 20. Minnesota Statutes 1994, section 52.131, is amended to read:

52.131 [MULTIPARTY ACCOUNTS.]

When any deposit is made in the names of two or more persons jointly, or by any person payable on death (P.O.D.) to another, or by any person in trust for another, the rights of the parties and the financial institution are determined by chapter 528 524.

Sec. 21. Minnesota Statutes 1994, section 53.01, is amended to read:

53.01 [ORGANIZATION.]

It is lawful for three or more persons, who desire to form a corporation for the purpose of carrying on primarily the business of loaning money to persons within the conditions set forth in this chapter, to organize, under this chapter, an industrial loan and thrift company, by filing with the secretary of state articles of incorporation, and upon

paying the fees prescribed by sections 301.07 and 301.071 or chapter 302A and upon compliance with the procedure provided for the organization and government of ordinary corporations under the laws of this state, and upon compliance with the additional requirements of this chapter prior to receiving authorization to do business.

Sec. 22. Minnesota Statutes 1994, section 53.03, subdivision 1, is amended to read:

Subdivision 1. [APPLICATION, FEE, NOTICE.] Any corporation hereafter organized as an industrial loan and thrift company, shall, after compliance with the requirements set forth in sections 53.01 and 53.02, file a written application with the department of commerce for a certificate of authorization. A corporation that will not sell or issue thrift certificates for investment as permitted by this chapter need not comply with subdivision 2b. The application must be in the form prescribed by the department of commerce. The application must be made in the name of the corporation, executed and acknowledged by an officer designated by the board of directors of the corporation, requesting a certificate authorizing the corporation to transact business as an industrial loan and thrift company, at the place and in the name stated in the application. At the time of filing the application the applicant shall pay a $1,000 filing fee and a $500 investigation fee. The fees must be turned over by the commissioner to the state treasurer and credited to the general fund. The applicant shall also submit a copy of the bylaws of the corporation, its articles of incorporation and all amendments thereto at that time. If the application is contested, 50 percent of an additional fee equal to the actual costs incurred by the department of commerce in approving or disapproving the application, payable to the state treasurer and credited to the general fund shall be paid by the applicant and 50 percent equally by the intervening parties. An application for powers under subdivision 2b must also require that a notice of the filing of the application must be published once within 30 days of the receipt of the form prescribed by the department of commerce, at the expense of the applicant, in a qualified newspaper published in the municipality in which the proposed industrial loan and thrift company is to be located, or, if there be none, in a qualified newspaper likely to give notice in the municipality in which the company is proposed to be located. If the department of commerce receives a written objection to the application from any person within 20 21 days of the notice having been fully published a contested case hearing must be conducted on the application. Notice of a hearing in connection with this section must be published once in the form prescribed by the department of commerce, at the expense of the applicant, in the same manner as a notice of application, the commissioner shall proceed in the same manner as required under section 46.041, subdivisions 3 and 4, relating to state banks.

Sec. 23. Minnesota Statutes 1994, section 53.07, subdivision 2, is amended to read:

Subd. 2. [TEMPORARY RESERVE MINIMUM.] Until an industrial loan and thrift company obtains a commitment for insurance or guarantee of accounts acceptable to the commissioner as required by section 53.10, it shall establish a minimum reserve against the certificates of indebtedness, savings accounts, and savings deposits described in section 53.04, subdivision 5, of not less than ten percent of the amount of indebtedness thus created. Three percent of this indebtedness shall be in cash in the actual possession of the industrial loan company or on demand deposit in approved banks of this state, and seven percent of the total indebtedness may be in bonds admissible for investment by mutual savings banks under the laws of this state.

Sec. 24. Minnesota Statutes 1995 Supplement, section 53.09, subdivision 2, is amended to read:

Subd. 2. [REPORT TO COMMISSIONER.] (1) Each industrial loan and thrift company shall annually on or before the first day of March file a report with the commissioner stating in detail, under appropriate heads, its assets and liabilities at the close of business on the last day of the preceding calendar year. This report shall be made under oath in the form prescribed by the commissioner.

(2) Each industrial loan and thrift company which holds authority to accept accounts pursuant to section 53.04, subdivision 5, shall in place of the requirement in clause (1) submit the reports and make the publication required of state banks pursuant to section 48.48.

(3) Within 30 days following a change in controlling ownership of the capital stock of an industrial loan and thrift company, it shall file a written report with the commissioner stating in detail the nature of such change in ownership.

Sec. 25. Minnesota Statutes 1995 Supplement, section 56.131, subdivision 4, is amended to read:

Subd. 4. [ADJUSTMENT OF DOLLAR AMOUNTS.] (a) The dollar amounts in this section, sections 53.04, subdivision 3a, paragraph (c), 56.01, 56.12, and 56.125 shall change periodically, as provided in this section, according to and to the extent of changes in the implicit price deflator for the gross domestic product, 1987 = 100, compiled by the United States Department of Commerce, and hereafter referred to as the index. The index for December 1991 is the reference base index for adjustments of dollar amounts 47.59, subdivision 3.

(b) The designated dollar amounts shall change on July 1 of each even-numbered year if the percentage of change, calculated to the nearest whole percentage point, between the index for December of the preceding year and the reference base index is ten percent or more, but;

(1) the portion of the percentage change in the index in excess of a multiple of ten percent shall be disregarded and the dollar amounts shall change only in multiples of ten percent of the amounts appearing in Laws 1995, chapter 202, on the date of enactment; and

(2) the dollar amounts shall not change if the amounts required by this section are those currently in effect pursuant to Laws 1995, chapter 202, as a result of earlier application of this section.

(c) If the index is revised, the percentage of change pursuant to this section shall be calculated on the basis of the revised index. If a revision of the index changes the reference base index, a revised reference base index shall be determined by multiplying the reference base index then applicable by the rebasing factor furnished by the department of commerce. If the index is superseded, the index referred to in this section is the one represented by the department of commerce as reflecting most accurately changes in the purchasing power of the dollar for consumers.

(d) The commissioner shall announce and publish:

(1) on or before April 30 of each year in which dollar amounts are to change, the changes in dollar amounts required by paragraph (b); and

(2) promptly after the changes occur, changes in the index required by paragraph (c) including, if applicable, the numerical equivalent of the reference base index under a revised reference base index and the designation or title of any index superseding the index.

(e) A person does not violate this chapter with respect to a transaction otherwise complying with this chapter if that person relies on dollar amounts either determined according to paragraph (b), clause (2) or appearing in the last publication of the commissioner announcing the then current dollar amounts.

(f) The adjustments provided in this section shall not be affected unless explicitly provided otherwise by law.

Sec. 26. Minnesota Statutes 1995 Supplement, section 56.14, is amended to read:

56.14 [DUTIES OF LICENSEE.]

Every licensee shall:

(1) deliver to the borrower (or if there are two or more borrowers to one of them) at the time any loan is made a statement making the disclosures and furnishing the information required by the federal Truth-in-Lending Act, United States Code, title 15, sections 1601 to 1667e, as amended from time to time, with respect to the contract of loan. A copy of the loan contract may be delivered in lieu of a statement if it discloses the required information;

(2) deliver or mail to the borrower without request, a written receipt within 30 days following payment for each payment by coin or currency made on account of any loan wherein charges are computed and paid on unpaid principal balances for the time actually outstanding, specifying the amount applied to charges and the amount, if any, applied to principal, and stating the unpaid principal balance, if any, of the loan; and wherein precomputed charges have been added to the principal of the loan specifying the amount of the payment applied to principal and charges combined, the amount applied to default or extension charges, if any, and stating the unpaid balance, if any, of the precomputed loan contract. A periodic statement showing a payment received by mail complies with this clause;

(3) permit payment to be made in advance in any amount on any contract of loan at any time, but the licensee may apply the payment first to all charges in full at the agreed rate up to the date of the payment;

(4) upon repayment of the loan in full, mark indelibly every obligation and security, other than a mortgage or security agreement which secures a new loan to the licensee, signed by the borrower with the word "Paid" or "Canceled," and release any mortgage or security agreement which no longer secures a loan to the licensee, restore any pledge, and cancel and return any note, and any assignment given to the licensee which does not secure a new loan to the licensee within 20 days after the repayment. For purposes of this requirement, the document including actual evidence of an obligation or security may be maintained, stored, and retrieved in a form or format acceptable to the commissioner under section 46.04, subdivision 3;

(5) display prominently in each licensed place of business a full and accurate schedule, to be approved by the commissioner, of the charges to be made and the method of computing the same; furnish a copy of the contract of loan to any person obligated on it or who may become obligated on it at any time upon the request of that person;

(6) show in the loan contract or statement of loan the rate or rates of charge on which the charge in the contract is based, expressed in terms of rate or rates per annum. The rate expression shall be printed in at least 8-point type on the loan statement or copy of the loan contract given to the borrower;

(7) if a payment results in the prepayment of three or more installment payments on a precomputed loan, at the same time the receipt required by clause (2) is delivered or mailed within 15 days of receipt of the prepayment, deliver or mail to the borrower a notice in at least eight-point type as part of the receipt or together with the receipt. The notice must contain the following statement:

"You have substantially prepaid the installment payments on your loan and may experience an interest savings over the remaining term only if you refinance the balance within the next 30 days."

Sec. 27. Minnesota Statutes 1995 Supplement, section 62B.04, subdivision 1, is amended to read:

Subdivision 1. [CREDIT LIFE INSURANCE.] (1) The initial amount of credit life insurance shall not exceed the amount of principal repayable under the contract of indebtedness plus an amount equal to one monthly payment. Thereafter, if the indebtedness is repayable in substantially equal installments according to a predetermined schedule, the amount of insurance on which the premium is calculated shall not exceed be equal to the scheduled indebtedness plus one monthly payment or actual amount of indebtedness, whichever is greater. If the contract of indebtedness provides for a variable rate of finance charge or interest, the initial rate or the scheduled rates based on the initial index must be used in determining the scheduled amount of indebtedness and subsequent changes to the rate must be disregarded in determining whether the contract is repayable in substantially equal installments according to a predetermined schedule.

(2) Notwithstanding clause (1), the amount of credit life insurance written in connection with credit transactions repayable over a specified term exceeding 63 months shall not exceed the greater of: (i) the actual amount of unpaid indebtedness as it exists from time to time; or (ii) where an indebtedness is repayable in substantially equal installments according to a predetermined schedule, the scheduled amount of unpaid indebtedness, less any unearned interest or finance charges, plus an amount equal to two monthly payments. If the credit transaction provides for a variable rate of finance charge or interest, the initial rate or the scheduled rates based on the initial index must be used in determining the scheduled amount of unpaid indebtedness and subsequent changes in the rate must be disregarded in determining whether the contract is repayable in substantially equal installments according to a predetermined schedule.

(3) Notwithstanding clauses (1) and (2), insurance on educational, agricultural, and horticultural credit transaction commitments may be written on a nondecreasing or level term plan for the amount of the loan commitment.

(4) If the contract of indebtedness provides for a variable rate of finance charge or interest, the initial rate or the scheduled rates based on the initial index shall be used in determining the scheduled amount of indebtedness, and subsequent changes to the rate shall be disregarded in determining whether the contract is repayable in substantially equal installments according to a predetermined schedule.

Sec. 28. Minnesota Statutes 1995 Supplement, section 62B.04, subdivision 2, is amended to read:

Subd. 2. [CREDIT ACCIDENT AND HEALTH INSURANCE.] The total amount of periodic indemnity payable by credit accident and health insurance in the event of disability, as defined in the policy, shall not exceed the aggregate of the periodic scheduled unpaid installments of the indebtedness; and the amount of each periodic indemnity payment shall not exceed the original indebtedness divided by the number of periodic installments. An accelerated benefits agreement or settlement relating to an unpaid balance of benefits due before the scheduled maturity of the indebtedness must be in writing. If the credit transaction provides for a variable rate of finance charge or interest, the initial rate or the scheduled rates based on the initial index must be used in determining the aggregate of the periodic scheduled unpaid installments of the indebtedness.

Sec. 29. Minnesota Statutes 1994, section 118.005, subdivision 1, is amended to read:

Subdivision 1. The governing body of every municipality, as defined in section 118.01, which has the power to receive and disburse funds, shall designate as a depository of the funds such national bank, savings bank, credit union, or savings association, insured state banks, savings bank, or thrift institutions as defined in section 51A.02, subdivision 54 credit union, as it may deem proper. The governing body may authorize the treasurer or chief financial officer to exercise the powers of the governing body in designating a depository of the funds.

For purposes of this chapter, a credit union is a thrift institution.

Sec. 30. Minnesota Statutes 1994, section 168.69, is amended to read:

168.69 [COMPLAINT ALLEGING VIOLATION.]

Any retail buyer having reason to believe that sections 168.66 to 168.77 relating to the buyer's retail installment contract has been violated may file with the administrator a written complaint setting forth the details of such alleged violation and the administrator, upon receipt of such complaint, may inspect the pertinent books, records, letters and contracts of the licensee, assignee of the licensee or retail seller, and of the retail seller involved, relating to such specific written complaint.

Sec. 31. Minnesota Statutes 1994, section 168.705, is amended to read:

168.705 [EXAMINATIONS, SPECIAL INVESTIGATIONS, COSTS.]

For the purpose of discovering violations of sections 168.66 to 168.77 or securing information lawfully required by the administrator hereunder, the administrator may, at any time, either personally or by a person or persons duly designated by the administrator, investigate the conditional sales contracts and business related to the conditional sales contracts and examine the books, accounts, records, and files used therein, of every licensee, assignee of the licensee, and of every person who shall be engaged in the business of a sales finance company, including the retail seller and assignee of the retail seller, whether the person shall act as principal or agent, or under or without the authority of sections 168.66 to 168.77. For that purpose, the administrator and the administrator's duly designated representative shall have free access to the offices and places of business, books, accounts, papers, records, files, safes, and vaults of all these persons. The administrator and all persons duly designated by the administrator shall have authority to require the attendance of and to examine, under oath, all persons whomsoever whose testimony the administrator may require relative to the conditional sales contract or the business or to the subject matter of any examination, investigation, or hearing.

The administrator may make an examination of the affairs, business, office, and records of licensees as often as considered necessary. The administrator may assess a fee covering the necessary costs of an examination or special investigation under this section, section 168.69, or reports filed under section 168.706. The fee is payable to the administrator on the administrator's request for payment. The administrator may maintain an action for the recovery of the costs in any court of competent jurisdiction.

Sec. 32. Minnesota Statutes 1994, section 168.73, is amended to read:

168.73 [PREPAYMENT IN FULL, REFUND CREDITS, ALLOWANCE.]

Subdivision 1. [PREPAYMENT IN FULL.] Notwithstanding the provisions of any retail installment contract to the contrary, any retail buyer may pay in full at any time before maturity the debt of any retail installment contract without penalty. In paying a precomputed retail installment contract in full, the retail buyer shall receive a refund credit thereon for such anticipation of payments. For contracts with substantially equal scheduled monthly payments remaining after the date of prepayment in full, the refund must be calculated for all fully unexpired monthly payment periods following the date of payment in full. For all other contracts, the refund must be calculated as of the date in the month following prepayment which corresponds to the original contract date. The refund shall be calculated according to the actuarial method, less an acquisition cost of $15 which may be deducted from the refund so calculated.

Where the amount of the credit for anticipation of payment is less than $1, no refund need be made.

The actuarial method means the method of allocating payments on a contract between the principal amount and finance charge at the contract rate charged under section 168.72, whereby a payment is applied first to the accumulated finance charge and then to the unpaid principal balance based on the original terms of the contract and based on the assumption that all payments are made on the due date as originally scheduled or deferred.

Subd. 2. [PARTIAL PREPAYMENT; NOTICE.] If a payment results in the prepayment of three or more installment payments on a precomputed contract, the retail seller or assignee of the retail seller shall within 15 days of receipt of the prepayment, deliver or mail to the retail buyer a notice in a least eight-point type. The notice must contain the following statement:

"You have substantially prepaid the installment payments on your contract and may experience an interest savings over the remaining term only if you refinance the balance within the next 30 days."

Sec. 33. Minnesota Statutes 1994, section 300.025, is amended to read:

300.025 [ORGANIZATION OF FINANCIAL CORPORATIONS.]

(a) Three or more persons may form a corporation for any of the purposes specified in section 47.12 by applying to the department of commerce and complying with all applicable organizational requirements and the conditions set out in clauses (1) to (7). However, no corporation may be formed under this section if it may be formed under the Minnesota business corporation act. The incorporators must subscribe a certificate specifying:

(1) the corporation's name, which must distinguish it from all other corporations authorized to do business in this state, and must contain the word "company," "corporation," "bank," "association," or "incorporated";

(2) the general nature of the corporation's business and its principal place of business;

(3) the period of its duration, if limited;

(4) the names and places of residence of the incorporators;

(5) the board in which the management of the corporation will be vested, the date of the annual meeting at which it will be elected, and the names and addresses of the board members until the first election, a majority of whom must always be residents of this state;

(6) the amount of capital stock, if any, how the capital stock is to be paid in, the number of shares into which it is to be divided, and the par value of each share; and, if there is to be more than one class, a description and the terms of issue of each class, and the method of voting on each class; and

(7) the highest amount of indebtedness or liability to which the corporation will at any time be subject.

The certificate may contain any other lawful provision defining and regulating the powers and business of the corporation, its officers, directors, trustees, members, and stockholders. However, a corporation subject to sections section 48.27 and 51A.22, subdivision 2, may show its highest amount of indebtedness to be 30 times the amount of its capital and actual surplus.

(b) A person doing business in this state may contest the subsequent registration of a name with the office of the secretary of state as provided in section 5.22.

Sec. 34. Minnesota Statutes 1994, section 332.50, subdivision 2, is amended to read:

Subd. 2. [ACTS CONSTITUTING.] (a) Whoever issues any check that is dishonored and is not paid within 30 days after mailing a notice of dishonor that includes a citation to this section and section 609.535, and a description of the penalties contained in these sections, in compliance with subdivision 3, is liable to the payee, holder, or agent of the holder, for: (1) the amount of the check plus a civil penalty of up to $100 or up to 100 percent of the value of the check, whichever is greater; (2) interest at the rate payable on judgments pursuant to section 549.09 on the face amount of the check from the date of dishonor; and (3) reasonable attorney fees if the aggregate amount of dishonored checks issued by the issuer to all payees within a six-month period is over $1,250.

(b) If the amount of the dishonored check plus any service charges that have been incurred under paragraph (d) or (e) have not been paid within 30 days after having mailed a notice of dishonor in compliance with subdivision 3 but before bringing an action, a payee, holder, or agent of the holder, may make a written demand for payment for the liability imposed by paragraph (a) by sending a copy of this section and a description of the liability contained in this section to the issuer's last known address.

(c) After notice has been sent but before an action under this section is heard by the court, the plaintiff shall settle the claim if the defendant gives the plaintiff the amount of the check plus court costs, any service charge owed under paragraph (d), and reasonable attorney fees if provided for under paragraph (a), clause (3).

(d) A service charge may be imposed immediately on any dishonored check, regardless of mailing a notice of dishonor, if written notice of the service charge was conspicuously displayed on the premises when the check was issued. The service charge may not exceed $20, except that if the payee uses the services of a law enforcement agency to obtain payment of a dishonored check, a service charge of up to $25 may be imposed if the service charge is used to reimburse the law enforcement agency for its expenses. A payee may impose only one service charge under this paragraph for each dishonored check.

(e) This subdivision prevails over any provision of law limiting, prohibiting, or otherwise regulating service charges authorized by this subdivision, but does not nullify charges for dishonored checks, which do not exceed the charges in paragraph (d) or the actual cost of collection, but in no case more than $30, or terms or conditions for imposing the charges which have been agreed to by the parties to an express contract.

Sec. 35. Laws 1995, chapter 171, section 70, is amended to read:

Sec. 70. [REPEALER.]

Minnesota Statutes 1994, sections 47.095; 47.30, subdivisions 4 and 6; 48.67; 50.02; 50.07; 50.08; 50.09; 50.10; 50.12; 50.15; 50.16; 50.21; and 50.22, are repealed.

Sec. 36. [CAPITAL REQUIREMENTS FOR TRUST COMPANIES; REENACTMENT OF REPEALED SECTION.]

Notwithstanding Minnesota Statutes, section 645.36, Minnesota Statutes, section 48.67, inadvertently repealed in Laws 1995, chapter 171, section 70, is reenacted as of the effective date of Laws 1995, chapter 171, section 70.

Sec. 37. [REPEALER.]

(a) Minnesota Statutes 1994, sections 47.201, subdivision 7; 47.27, subdivision 3; 51A.01; 51A.02, subdivisions 1, 2, 3, 4, 5, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38, 39, 41, 42, 43, 44, 45, 46, 47, 48, 49, 50, 51, 52, 53, 55, and 56; 51A.03; 51A.04; 51A.041; 51A.05; 51A.06; 51A.065; 51A.07; 51A.08; 51A.09; 51A.10; 51A.11; 51A.12; 51A.13; 51A.131; 51A.14; 51A.15; 51A.16; 51A.17; 51A.19, subdivisions 1, 4, 5, 6, 7, 8, 10, 11, 12, and 13; 51A.20; 51A.21, subdivisions 1, 2, 3, 4, 5, 6a, 6b, 7, 8, 9, 10, 11, 12, 13, 14, 15, 17, 18, 20, 21, 22, 23, 24, 25, 26, and 27; 51A.22; 51A.23, subdivision 6; 51A.24; 51A.251; 51A.261; 51A.262; 51A.27; 51A.28; 51A.29; 51A.30; 51A.31; 51A.32; 51A.33; 51A.34; 51A.35; 51A.361; 51A.37; 51A.38; 51A.40; 51A.41; 51A.42; 51A.43; 51A.44; 51A.45; 51A.46; 51A.47; 51A.48; 51A.51; 51A.52; 51A.54; 51A.55; 51A.56; and 51A.57; Minnesota Statutes 1995 Supplement, sections 51A.02, subdivisions 6, 7, 26, 40, and 54; 51A.19, subdivision 9; 51A.21, subdivision 28; 51A.23, subdivisions 1 and 7; 51A.386; 51A.50; 51A.53; and 51A.58, are repealed.

(b) Minnesota Statutes 1994, section 48.94, is repealed.

(c) Minnesota Rules, parts 2655.0100; 2655.0200; 2655.0300; 2655.0400; 2655.0500; 2655.0600; 2655.0700; 2655.0800; 2655.0900; 2655.1100; 2655.1200; and 2655.1300, are repealed.

Sec. 38. [EFFECTIVE DATE.]

Sections 2 to 5; 8; 10; 11; 15; 19 to 25; 35; 36; and 37, paragraphs (b) and (c), are effective the day following final enactment. Section 37, paragraph (a), is effective July 1, 1997.

Sections 9; 13; 14; 18; 29; and 33 are effective on the effective date of the repeals in section 37, paragraph (a).

Section 1. Minnesota Statutes 1995 Supplement, section 47.59, subdivision 2, is amended to read:

Subd. 2. [APPLICATION.] This section does not apply to loans and other Extensions of credit or purchases of extensions of credit by financial institutions under sections 47.20, 47.21, 47.201, 47.204, 47.58, 47.60, 48.153, 48.185, 48.195, 59A.01 to 59A.15, 168.66 to 168.77, 334.01, 334.011, 334.012, 334.021, 334.06, and 334.061 to 334.19. may, but need

not, be made according to those sections in lieu of the authority set forth in this section to the extent those sections authorize the financial institution to make extensions of credit or purchase extensions of credit under those sections. If a financial institution elects to make an extension of credit or to purchase an extension of credit under those other sections, the extension of credit or the purchase of an extension of credit is subject to those sections and not this section, except this subdivision, and except as expressly provided in those sections. A financial institution may also charge an organization a rate of interest and any charges agreed to by the organization and may calculate and collect finance and other charges in any manner agreed to by that organization. Except for extensions of credit a financial institution elects to make under section 334.01, 334.011, 334.012, 334.021, 334.06, or 334.061 to 334.19, chapter 334 does not apply to extensions of credit made according to this section or the sections listed in this subdivision. This subdivision does not authorize a financial institution to extend credit or purchase an extension of credit under any of the sections listed in this subdivision if the financial institution is not authorized to do so under those sections. A financial institution extending credit under any of the sections listed in this subdivision shall specify in the promissory note, contract, or other loan document the section under which the extension of credit is made.

Sec. 2. Minnesota Statutes 1995 Supplement, section 47.59, subdivision 3, is amended to read:

Subd. 3. [FINANCE CHARGE FOR LOANS.] (a) With respect to a loan, including a loan pursuant to open-end credit but excluding open-end credit pursuant to a credit card, a financial institution may contract for and receive a finance charge on the unpaid balance of the principal amount not to exceed the greater of:

(1) an annual percentage rate not exceeding 21.75 percent; or

(2) the total of:

(i) 33 percent per year on that part of the unpaid balance of the principal amount not exceeding $750; and

(ii) 19 percent per year on that part of the unpaid balance of the principal amount exceeding $750.

With respect to open-end credit pursuant to a credit card, the financial institution may contract for and receive a finance charge on the unpaid balance of the principal amount at an annual percentage rate not exceeding 18 percent per year.

(b) On a loan where the finance charge is calculated according to the method provided for in paragraph (a), clause (2), the finance charge must be contracted for and earned as provided in that provision or at the single annual percentage rate computed to the nearest .001 one-tenth of one percent that would earn the same total finance charge at maturity of the contract as would be earned by the application of the graduated rates provided in paragraph (a), clause (2), when the debt is paid according to the agreed terms and the calculations are made according to the actuarial method.

(c) With respect to a loan, the finance charge must be considered not to exceed the maximum annual percentage rate permitted under this section if the finance charge contracted for and received does not exceed the equivalent of the maximum annual percentage rate calculated in accordance with Code of Federal Regulations, title 12, part 226, but using the definition of finance charge provided in this section.

(d) This subdivision does not limit or restrict the manner of calculating the finance charge, whether by way of add-on, discount, discount points, precomputed charges, single annual percentage rate, variable rate, interest in advance, compounding, average daily balance method, or otherwise, if the annual percentage rate does not exceed that permitted by this section. Discount points permitted by this paragraph and not collected but included in the principal amount must not be included in the amount on which credit insurance premiums are calculated and charged.

(e) With respect to a loan secured by real estate, if a finance charge is calculated or collected in advance, or included in the principal amount of the loan, and the borrower prepays the loan in full, the financial institution shall credit the borrower with a refund of the charge to the extent that the annual percentage rate yield on the loan would exceed the maximum rate permitted under paragraph (a), taking into account the prepayment. The refund need not be made if it would be less than $5.

(f) With respect to all other loans, if the finance charge is calculated or collected in advance, or included in the principal amount of the loan, and the borrower prepays the loan in full, the financial institution shall credit the borrower with a refund of the charge to the extent the annual percentage rate yield on the loan would exceed the annual percentage rate on the loan as originally determined under paragraph (a) and taking into account the prepayment. The refund need not be made if it would be less than $5.

(g) For the purpose of calculating the refund under this subdivision, the financial institution may assume that the contract was paid before the date of prepayment according to the schedule of payments under the loan and that all payments were paid on their due dates.

(h) For loans repayable in substantially equal successive monthly installments, the financial institution may calculate the refund under paragraph (f) as the portion of the finance charge allocable on an actuarial basis to all wholly unexpired payment periods following the date of prepayment, based on the annual percentage rate on the loan as originally determined under paragraph (a), and for the purpose of calculating the refund may assume that all payments are made on the due date.

(i) The dollar amounts in this subdivision and subdivision 6, paragraph (a), clause (4), shall change periodically, as provided in this section, according to and to the extent of changes in the implicit price deflator for the gross domestic product, 1987 = 100, compiled by the United States Department of Commerce, and hereafter referred to as the index. The index for December 1991 is the reference base index for adjustments of dollar amounts.

(j) The designated dollar amounts shall change on July 1 of each even-numbered year if the percentage of change, calculated to the nearest whole percentage point, between the index for December of the preceding year and the reference base index is ten percent or more; but

(1) the portion of the percentage change in the index in excess of a multiple of ten percent shall be disregarded and the dollar amounts shall change only in multiples of ten percent of the amounts appearing in Laws 1995, chapter 202, on May 24, 1995; and

(2) the dollar amounts shall not change if the amounts required by this section are those currently in effect pursuant to Laws 1995, chapter 202, as a result of earlier application of this section.

(k) If the index is revised, the percentage of change pursuant to this section shall be calculated on the basis of the revised index. If a revision of the index changes the reference base index, a revised reference base index shall be determined by multiplying the reference base index then applicable by the rebasing factor furnished by the department of commerce. If the index is superseded, the index referred to in this section is the one represented by the department of commerce as reflecting most accurately changes in the purchasing power of the dollar for consumers.

(l) The commissioner shall announce and publish:

(1) on or before April 30 of each year in which dollar amounts are to change, the changes in dollar amounts required by paragraph (j); and

(2) promptly after the changes occur, changes in the index required by paragraph (k) including, if applicable, the numerical equivalent of the reference base index under a revised reference base index and the designation or title of any index superseding the index.

(m) A person does not violate this chapter with respect to a transaction otherwise complying with this chapter if that person relies on dollar amounts either determined according to paragraph (j), clause (2), or appearing in the last publication of the commissioner announcing the then current dollar amounts.

(n) The adjustments provided in this section shall not be affected unless explicitly provided otherwise by law.

Sec. 3. Minnesota Statutes 1995 Supplement, section 47.59, subdivision 4, is amended to read:

Subd. 4. [FINANCE CHARGE FOR CREDIT SALES MADE BY A THIRD PARTY.] (a) A person may enter into a credit sale contract for sale to a financial institution and a financial institution may purchase and enforce the contract, if the annual percentage rate provided for in the contract does not exceed that permitted in this section, or, in the case of contracts governed by sections 168.66 to 168.77, the rates permitted by those sections subdivision 4a.

(b) The annual percentage rate may not exceed the equivalent of the greater of either of the following:

(1) the total of:

(i) 36 percent per year on that part of the unpaid balances of the amount financed that is $300 or less;

(ii) 21 percent per year on that part of the unpaid balances of the amount financed which exceeds $300 but does not exceed $1,000; and

(iii) 15 percent per year on that part of the unpaid balances of the amount financed which exceeds $1,000; or

(2) 19 percent per year on the unpaid balances of the amount financed.

(c) This subdivision does not limit or restrict the manner of calculating the finance charge whether by way of add-on, discount, discount points, single annual percentage rate, precomputed charges, variable rate, interest in advance, compounding, or otherwise, if the annual percentage rate calculated under paragraph (d) does not exceed that permitted by this section. The finance charge may be contracted for and earned at the single annual percentage rate that would earn the same finance charge as the graduated rates when the debt is paid according to the agreed terms and the finance charge is calculated under paragraph (d). If the finance charge is calculated and collected in advance, or included in the principal amount of the contract, and the borrower prepays the contract in full, the financial institution shall credit the borrower with a refund of the charge to the extent the annual percentage rate yield on the contract would exceed the annual percentage rate on the contract as originally determined under paragraph (d) and taking into account the prepayment. For the purpose of calculating the refund under this subdivision, the financial institution may assume that the contract was paid before the date of prepayment according to the schedule of payments under the contract and that all payments were paid on their due dates. For contracts repayable in substantially equal successive monthly installments, the financial institution may calculate the refund as the portion of the finance charge allocable on an actuarial basis to all wholly unexpired payment periods following the date of prepayment, based on the annual percentage rate on the contract as originally determined under paragraph (d), and for the purpose of calculating the refund may assume that all payments are made on the due date.

(d) The annual percentage rate must be calculated in accordance with Code of Federal Regulations, title 12, part 226, except that the following will not in any event be considered a finance charge:

(1) a charge as a result of delinquency or default under subdivision 6 if made for actual unanticipated late payment, delinquency, default, or other similar occurrence, and a charge made for an extension or deferment under subdivision 5, unless the parties agree that these charges are finance charges;

(2) an additional charge under subdivision 6; or

(3) a discount, if a financial institution purchases a contract evidencing a credit sale at less than the face amount of the obligation or purchases or satisfies obligations of a cardholder according to a credit card and the purchase or satisfaction is made at less than the face amount of the obligation.

Sec. 4. Minnesota Statutes 1995 Supplement, section 47.59, is amended by adding a subdivision to read:

Subd. 4a. [FINANCE CHARGE FOR MOTOR VEHICLE RETAIL INSTALLMENT SALES.] A retail installment contract evidencing the retail installment sale of a motor vehicle defined in section 168.66 is subject to the finance charge limitations in paragraphs (a) and (b).

(a) The finance charge authorized by this subdivision in a retail installment sale may not exceed the following annual percentage rates:

(1) Class 1. A motor vehicle designated by the manufacturer by a year model of the same or not more than one year before the year in which the sale is made, 18 percent per year.

(2) Class 2. A motor vehicle designated by the manufacturer by a year model of two to three years before the year in which the sale is made, 19.75 percent per year.

(3) Class 3. Any motor vehicle not in Class 1 or Class 2, 23.25 percent per year.

(b) A sale of a manufactured home made after July 31, 1983, is governed by this subdivision for purposes of determining the lawful finance charge rate, except that the maximum finance charge for a Class 1 manufactured home may not exceed 14.5 percent per year. A retail installment sale of a manufactured home that imposes a finance charge that is greater than the rate permitted by this subdivision is lawful and enforceable in accordance with its terms until the indebtedness is fully satisfied if the rate was lawful when the sale was made.

Sec. 5. Minnesota Statutes 1995 Supplement, section 47.59, subdivision 5, is amended to read:

Subd. 5. [EXTENSIONS AND, DEFERMENTS, AND CONVERSION TO INTEREST BEARING.] (a) The parties may agree in writing, either in the loan contract or credit sale contract or in a subsequent agreement, to a deferment of wholly unpaid installments. For precomputed loans and credit sale contracts, the manner of deferment charge shall be determined as provided for in this section. A deferment postpones the scheduled due date of the earliest unpaid installment and all subsequent installments as originally scheduled, or as previously deferred, for a period equal to the deferment period. The deferment period is that period during which no installment is scheduled to be paid by reason of the deferment. The deferment charge for a one-month period may not exceed the applicable charge for the installment period immediately following the due date of the last undeferred payment. A proportionate charge may be made for deferment periods of more or less than one month. A deferment charge is earned pro rata during the deferment period and is fully earned on the last day of the deferment period. If a loan or credit sale is prepaid in full during a deferment period, the financial institution shall make or credit to the borrower a refund of the unearned deferment charge in addition to any other refund or credit made for prepayment of the loan or credit sale in full.

For the purpose of this subdivision, "applicable charge" means the amount of finance charge attributable to each monthly installment period for the loan or credit sale contract. The applicable charge is computed as if each installment period were one month and any charge for extending the first installment period beyond the one month, or reduction in charge for a first installment less than one month, is ignored. The applicable charge for any installment period is that which would have been made for the period had the loan been made on an interest-bearing basis at the single annual percentage rate provided for in the contract based upon the assumption that all payments were made according to schedule. For convenience in computation, the financial institution may round the single annual rate to the nearest one quarter of one percent.

(b) Subject to a refund of unearned finance or deferment charge required by this section, a financial institution may convert a loan or credit sale contract to an interest bearing balance, if:

(1) the loan contract or credit sale contract so provides and is subject to a change of the terms of the written agreement between the parties; or

(2) the loan contract so provides and two or more installments are delinquent one full month or more on any due date.

Thereafter, and in lieu of any other default, extension, or deferment charges, the single annual percentage rate must be determined under the applicable charge provisions of this subdivision.

Sec. 6. Minnesota Statutes 1995 Supplement, section 47.59, subdivision 6, is amended to read:

Subd. 6. [ADDITIONAL CHARGES.] (a) In addition to the finance charges permitted by this section, a financial institution may contract for and receive the following additional charges that may be included in the principal amount financed of the loan or credit sale unpaid balances:

(1) official fees and taxes;

(2) charges for insurance as described in paragraph (b);

(3) with respect to a loan or credit sale contract secured by real estate, the following "closing costs," if they are bona fide, reasonable in amount, and not for the purpose of circumvention or evasion of this section:

(i) fees or premiums for title examination, abstract of title, title insurance, surveys, or similar purposes;

(ii) fees for preparation of a deed, mortgage, settlement statement, or other documents, if not paid to the financial institution;

(iii) escrows for future payments of taxes, including assessments for improvements, insurance, and water, sewer, and land rents;

(iv) fees for notarizing deeds and other documents;

(v) appraisal and credit report fees; and

(vi) fees for determining whether any portion of the property is located in a flood zone and fees for ongoing monitoring of the property to determine changes, if any, in flood zone status;

(4) a delinquency charge on a payment, including the minimum payment due in connection with the open-end credit, not paid in full on or before the tenth day after its due date in an amount not to exceed five percent of the amount of the payment or $5.20, whichever is greater;

(5) for a returned check or returned automatic payment withdrawal request, an amount not in excess of the service charge limitation in section 332.50; and

(6) charges for other benefits, including insurance, conferred on the borrower that are of a type that is not for credit.

(b) An additional charge may be made for insurance written in connection with the loan or credit sale contract, which may be included in the principal amount financed of the loan or credit sale unpaid balances:

(1) with respect to insurance against loss of or damage to property, or against liability arising out of the ownership or use of property, if the financial institution furnishes a clear, conspicuous, and specific statement in writing to the borrower setting forth the cost of the insurance if obtained from or through the financial institution and stating that the borrower may choose the person through whom the insurance is to be obtained;

(2) with respect to credit insurance or mortgage insurance providing life, accident, health, or unemployment coverage, if the insurance coverage is not required by the financial institution, and this fact is clearly and conspicuously disclosed in writing to the borrower, and the borrower gives specific, dated, and separately signed affirmative written indication of the borrower's desire to do so after written disclosure to the borrower of the cost of the insurance; and

(3) with respect to the vendor's single interest insurance, but only (i) to the extent that the insurer has no right of subrogation against the borrower; and (ii) to the extent that the insurance does not duplicate the coverage of other insurance under which loss is payable to the financial institution as its interest may appear, against loss of or damage to property for which a separate charge is made to the borrower according to clause (1); and (iii) if a clear, conspicuous, and specific statement in writing is furnished by the financial institution to the borrower setting forth the cost of the insurance if obtained from or through the financial institution and stating that the borrower may choose the person through whom the insurance is to be obtained.

(c) In addition to the finance charges and other additional charges permitted by this section, a financial institution may contract for and receive the following additional charges in connection with open-end credit, which may be included in the principal amount financed of the loan or balance upon which the finance charge is computed:

(1) annual charges, not to exceed $50 per annum, payable in advance, for the privilege of opening and maintaining open-end credit;

(2) charges for the use of an automated teller machine;

(3) charges for any monthly or other periodic payment period in which the borrower has exceeded or, except for the financial institution's dishonor would have exceeded, the maximum approved credit limit, in an amount not in excess of the service charge permitted in section 332.50;

(4) charges for obtaining a cash advance in an amount not to exceed the service charge permitted in section 332.50; and

(5) charges for check and draft copies and for the replacement of lost or stolen credit cards.

(d) In addition to the finance charges and other additional charges permitted by this section, a financial institution may contract for and receive a one-time loan administrative fee not exceeding $25 in connection with closed-end credit, which may be included in the amount financed or principal balance upon which the finance charge is computed. This paragraph applies only to closed-end credit in an original principal amount of $4,320 or less. The determination of an original principal amount must exclude the administrative fee contracted for and received according to this paragraph.

Sec. 7. Minnesota Statutes 1995 Supplement, section 47.60, subdivision 2, is amended to read:

Subd. 2. [AUTHORIZATION, TERMS, CONDITIONS, AND PROHIBITIONS.] (a) In lieu of the interest, finance charges, or fees in any other law, a consumer small loan lender may charge the following:

(i) (1) on any amount up to and including $50, a charge of $5.50 may be added;

(ii) (2) on amounts in excess of $50, but not more than $100, a charge may be added equal to ten percent of the loan proceeds plus a $5 administrative fee;

(iii) (3) on amounts in excess of $100, but not more than $250, a charge may be added equal to seven percent of the loan proceeds with a minimum of $10 plus a $5 administrative fee;

(iv) (4) for amounts in excess of $250 and not greater than the maximum in subdivision 1, paragraph (a), a charge may be added equal to six percent of the loan proceeds with a minimum of $17.50 plus a $5 administrative fee.

(b) The term of a loan made under this section shall be for no more than 30 calendar days.

(c) After maturity, the contract rate must not exceed 2.75 percent per month of the remaining loan proceeds after the maturity date calculated at a rate of 1/30 of the monthly rate in the contract for each calendar day the balance is outstanding.

(d) No insurance charges or other charges must be permitted to be charged, collected, or imposed on a consumer small loan except as authorized in this section.

(e) On a loan transaction in which cash is advanced in exchange for a personal check, a return check charge may be charged as authorized by section 332.50, subdivision 2, paragraph (d).

(f) A loan made under this section must not be repaid by the proceeds of another loan made under this section by the same lender or related interest. The proceeds from a loan made under this section must not be applied to another loan from the same lender or related interest. No loan to a single borrower made pursuant to this section shall be split or divided and no single borrower shall have outstanding more than one loan with the result of collecting a higher charge than permitted by this section or in an aggregate amount of principal exceed at any one time the maximum of $350.

Sec. 8. Minnesota Statutes 1995 Supplement, section 53.04, subdivision 3a, is amended to read:

Subd. 3a. (a) The right to make loans, secured or unsecured, at the rates and on the terms and other conditions permitted in section 47.59 under chapters 47 and 334. Loans made under this authority must be in amounts in compliance with section 53.05, clause (7). The right to extend credit or lend money and to collect and receive charges therefor as provided by chapter 334. The provisions of sections 47.20 and 47.21 do not apply to loans made under this subdivision, except as specifically provided in this subdivision. Nothing in this subdivision is deemed to supersede, repeal, or amend any provision of section 53.05. A licensee making a loan under this chapter secured by a lien on real estate shall comply with the requirements of section 47.20, subdivision 8.

(b) Loans made under this subdivision at a rate of interest not in excess of that provided for in paragraph (a) may be secured by real or personal property, or both. If the proceeds of a loan secured by a first lien on the borrower's primary residence are used to finance the purchase of the borrower's primary residence, the loan must comply with the provisions of section 47.20.

(c) A loan made under this subdivision that is secured by real estate and that is in a principal amount of $12,000 or more and a maturity of 60 months or more may contain a provision permitting discount points, if the loan does not provide a loan yield in excess of the maximum rate of interest permitted by this subdivision.

(d) An agency or instrumentality of the United States government or a corporation otherwise created by an act of the United States Congress or a lender approved or certified by the secretary of housing and urban development, or approved or certified by the administrator of veterans affairs, or approved or certified by the administrator of the farmers home administration, or approved or certified by the federal home loan mortgage corporation, or approved or certified by the federal national mortgage association, that engages in the business of purchasing or taking assignments of mortgage loans and undertakes direct collection of payments from or enforcement of rights against

borrowers arising from mortgage loans, is not required to obtain a certificate of authorization under this chapter in order to purchase or take assignments of mortgage loans from persons holding a certificate of authorization under this chapter.

(e) This subdivision does not authorize an industrial loan and thrift company to make loans under an overdraft checking plan.

Sec. 9. Minnesota Statutes 1995 Supplement, section 56.131, subdivision 2, is amended to read:

Subd. 2. [ADDITIONAL CHARGES.] In addition to the charges provided for by this section and section 56.155, and notwithstanding section 47.59, subdivision 5 6, to the contrary, no further or other amount whatsoever, shall be directly or indirectly charged, contracted for, or received for the loan made, except actual out of pocket expenses of the licensee to realize on a security after default, and except for the following additional charges which may be included in the principal amount of the loan:

(a) lawful fees and taxes paid to any public officer to record, file, or release security;

(b) with respect to a loan secured by an interest in real estate, the following closing costs, if they are bona fide, reasonable in amount, and not for the purpose of circumvention or evasion of this section; provided the costs do not exceed one percent of the principal amount or $400, whichever is greater:

(1) fees or premiums for title examination, abstract of title, title insurance, surveys, or similar purposes;

(2) fees, if not paid to the licensee, an employee of the licensee, or a person related to the licensee, for preparation of a mortgage, settlement statement, or other documents, fees for notarizing mortgages and other documents, and appraisal fees;

(c) the premium for insurance in lieu of perfecting and releasing a security interest to the extent that the premium does not exceed the fees described in paragraph (a);

(d) discount points and appraisal fees may not be included in the principal amount of a loan secured by an interest in real estate when the loan is a refinancing for the purpose of bringing the refinanced loan current and is made within 24 months of the original date of the refinanced loan. For purposes of this paragraph, a refinancing is not considered to be for the purpose of bringing the refinanced loan current if new funds advanced to the customer, not including closing costs or delinquent installments, exceed $1,000;

(e) the one-time loan administrative fee in section 47.59, subdivision 6, paragraph (d).

Sec. 10. Minnesota Statutes 1995 Supplement, section 56.131, subdivision 6, is amended to read:

Subd. 6. [DISCOUNT POINTS.] A loan made under this section that is secured by real estate and that is in a principal amount of $12,000 or more and has a maturity of 60 months or more may contain a provision permitting discount points, if the loan does not provide a loan yield in excess of the maximum rate of interest permitted by this section. Loan yield means the annual rate of return obtained by a licensee computed as the annual percentage rate is computed under Federal Regulation Z. If the loan is prepaid in full, the licensee must make a refund to the borrower to the extent that the loan yield will exceed the maximum rate of interest provided by this section when the prepayment is taken into account. Discount points permitted by this subdivision and not collected but included in the principal amount must not be included in the amount on which credit insurance premiums are calculated and charged.

Sec. 11. Minnesota Statutes 1994, section 168.72, is amended by adding a subdivision to read:

Subd. 5. In lieu of this section and sections 168.66, subdivisions 9, 10, and 11; 168.71; 168.73; and 168.74, a retail seller may proceed under section 47.59 relating to credit sales made by a third party. In cases where the retail seller proceeds under section 47.59, the remaining provisions of sections 168.66 to 168.77 apply notwithstanding section 47.59.

Sec. 12. Minnesota Statutes 1994, section 334.02, is amended to read:

334.02 [USURIOUS INTEREST; RECOVERY.]

Every person who for any such loan or forbearance shall have paid or delivered any greater sum or value than in section 334.01 allowed to be received may, personally or through personal representatives, recover in an action against the person who shall have received the same, or the receiver's personal representatives, the full amount of interest

or premium so paid, with costs, if action is brought within two years after such payment or delivery. This section does not apply when the loan or forbearance is made by a lender and the lender is liable for the penalty provided in subject to section 47.59 or 48.196 or chapter 56 in connection with the loan or forbearance. For purposes of this section, the term "lender" means a bank or savings bank organized under the laws of this state, a federally chartered savings and loan association or savings bank, a savings association organized under chapter 51A, a federally chartered credit union, a credit union organized under chapter 52, an industrial loan and thrift company organized under chapter 53, a licensed lender under chapter 56, or a mortgagee or lender approved or certified by the secretary of housing and urban development or approved or certified by the administrator of veterans affairs.

Sec. 13. Minnesota Statutes 1994, section 334.03, is amended to read:

334.03 [USURIOUS CONTRACTS INVALID; EXCEPTIONS.]

All bonds, bills, notes, mortgages, and all other contracts and securities, and all deposits of goods, or any other thing, whereupon or whereby there shall be reserved, secured, or taken any greater sum or value for the loan or forbearance of any money, goods, or things in action than prescribed, except such instruments which are taken or received in accordance with and in reliance upon the provisions of any statute, shall be void except as to a holder in due course. No merely clerical error in the computation of interest, made without intent to avoid the provisions of this chapter, shall constitute usury. Interest at the rate of 1/12 of eight percent for every 30 days shall not be construed to exceed eight percent per annum; nor shall the payment of interest in advance of one year, or any less time, at a rate not exceeding eight percent per annum constitute usury; and nothing herein shall prevent the purchase of negotiable mercantile paper, usurious or otherwise, for a valuable consideration, by a purchaser without notice, at any price before the maturity of the same, when there has been no intent to evade the provisions of this chapter, or where such purchase has not been a part of the original usurious transactions; but where the original holder of a usurious note sells the same to an innocent purchaser, the maker thereof, or the maker's representatives, may recover back from the original holder the amount of principal and interest paid on the note. This section does not apply when the loan or forbearance is made by a lender and the lender is liable for the penalty provided in subject to section 47.59 or 48.196 or chapter 56 in connection with the loan or forbearance. For purposes of this section, the term "lender" means a bank or savings bank organized under the laws of this state, a federally chartered savings and loan association, a savings association organized under chapter 51A, a federally chartered credit union, a credit union organized under chapter 52, an industrial loan and thrift company organized under chapter 53, a licensed lender under chapter 56, or a mortgagee or lender approved or certified by the secretary of housing and urban development or approved or certified by the administrator of veterans affairs.

Sec. 14. [REPEALER.]

Minnesota Statutes 1994, section 53.04, subdivision 3b; and Minnesota Statutes 1995 Supplement, section 53.04, subdivisions 3c and 4a, are repealed.

Sec. 15. [EFFECTIVE DATE.]

Sections 1, 3 to 9, and 11 to 14 are effective the day following final enactment.

Section 1. Minnesota Statutes 1994, section 47.51, is amended to read:

47.51 [DETACHED BANKING FACILITIES; DEFINITIONS.]

As used in sections 47.51 to 47.57:

"Extension of the main banking house" means any structure or stationary mechanical device serving as a drive-in or walk-up facility, or both, which is located within 150 1,500 feet of the main banking house or detached facility, the distance to be measured in a straight line from the closest points of the closest structures involved and which performs one or more of the functions described in section 47.53.

"Detached facility" means any permanent structure, office accommodation located within the premises of any existing commercial or business establishment, stationary automated remote controlled teller facility, stationary unstaffed cash dispensing or receiving device, located separate and apart from the main banking house which is not

an "extension of the main banking house" as above defined, that serves as a drive-in or walk-up facility, or both, with one or more tellers windows, or as a remote controlled teller facility or a cash dispensing or receiving device, and which performs one or more of those functions described in section 47.53.

"Bank" means a bank as defined in section 46.046 and any banking office established prior to the effective date of Laws 1923, chapter 170, section 1.

"Commissioner" means the commissioner of commerce.

"Municipality" means the geographical area encompassing the boundaries of any home rule charter or statutory city located in this state, and any detached area, pursuant to section 473.625, operated as a major airport by the metropolitan airports commission pursuant to sections 473.601 to 473.679. When a bank is located in a township, the term municipality is expanded to mean the geographical area encompassing the boundaries of the township.

Sec. 2. Minnesota Statutes 1995 Supplement, section 47.52, is amended to read:

47.52 [AUTHORIZATION.]

(a) With the prior approval of the commissioner, any bank doing business in this state may establish and maintain not more than five detached facilities provided the facilities are located within; (1) the municipality in which the principal office of the applicant bank is located; or within (2) 5,000 feet of its principal office measured in a straight line from the closest points of the closest structures involved; or within 100 miles of its principal office measured in a straight line from the closest points of the closest structures involved, if the detached facility is within any (3) a municipality in which no bank is located at the time of application or if the detached facility is in; or (4) a municipality having a population of more than 10,000,; or if the detached facility is located in (5) a municipality having a population of 10,000 or less, as determined by the commissioner from the latest available data from the state demographer, or for municipalities located in the seven-county metropolitan area from the metropolitan council, and all the banks having a principal office in the municipality have consented in writing to the establishment of the facility.

(b) A detached facility shall not be closer than 50 feet to a detached facility operated by any other bank and shall not be closer than 100 feet to the principal office of any other bank, the measurement to be made in the same manner as provided above. This paragraph shall not be applicable if the proximity to the facility or the bank is waived in writing by the other bank and filed with the application to establish a detached facility.

(c) Any bank is allowed, in addition to other facilities, one drive-in or walk-up facility located between 150 to 1,500 feet of the main banking house or within 1,500 feet from a detached facility. The drive-in or walk-up facility permitted by this clause is subject to paragraph (b) and section 47.53.

(d) A bank is allowed, in addition to other facilities, part-time deposit-taking locations at elementary and secondary schools located within the municipality in which the main banking house or a detached facility is located if they are established in connection with student education programs approved by the school administration and consistent with safe, sound banking practices.

(e) A bank whose home state is Minnesota as defined in section 48.92 is allowed, in addition to facilities otherwise permitted, to establish and operate a de novo detached facility in a location in the host states of Iowa, North Dakota, South Dakota, and Wisconsin not more than 30 miles from its principal office measured in a straight line from the closest points of the closest structures involved and subject to requirements of sections 47.54 and 47.561 and the following additional requirements and conditions:

(1) there is in effect in the host state a law, rule, or ruling that permits Minnesota home state banks to establish de novo branches in the host state under conditions substantially similar to those imposed by the laws of Minnesota as determined by the commissioner; and

(2) there is in effect a cooperative agreement between the home and host state banking regulators to facilitate their respective regulation and supervision of the bank including the coordination of examinations.

For purposes of this paragraph, "host state" means a state other than the home state, as defined in section 48.92.

Sec. 3. Minnesota Statutes 1994, section 47.62, subdivision 1, is amended to read:

Subdivision 1. Any person may establish and maintain one or more electronic financial terminals. Any financial institution may provide for its customers the use of an electronic financial terminal by entering into an agreement with any person who has established and maintains one or more electronic financial terminals if that person authorizes use

of the electronic financial terminal to all financial institutions on a nondiscriminatory basis pursuant to section 47.64. Electronic financial terminals to be established and maintained by financial institutions located in states other than Minnesota must file a notification to the commissioner as required in this section. The notification may be in the form lawfully required by the state regulator responsible for the examination and supervision of that financial institution. If there is no such requirement, then notification must be in the form required by this section for Minnesota financial institutions.

Sec. 4. Minnesota Statutes 1994, section 48.34, is amended to read:

48.34 [BRANCH BANKS PROHIBITED.]

No bank or trust company organized under the laws of this state shall maintain a branch bank or receive deposits or pay checks within this state, except at its own banking house, and except as authorized by sections 47.51 to 47.57, and 47.61 to 47.74, and 49.411. The commissioner shall take possession of and liquidate the business and affairs of any state bank or trust company violating the provisions of this section, in the manner prescribed by law for the liquidation of insolvent state banks and trust companies.

Sec. 5. [49.411] [INTERSTATE BANK MERGERS AFFECTING INTERSTATE BRANCHING.]

Subdivision 1. [PURPOSE.] It is the express intent of this section to permit interstate branching by mergers under section 102 of the Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994, Public Law Number 103-328, according to this section.

Subd. 2. [DEFINITIONS.] As used in this section, unless the context clearly indicates otherwise, the following terms have the meanings given them.

(a) "Bank" has the meaning given in United States Code, title 12, section 1813(h) with the following exceptions: (1) the term does not include a foreign bank as defined in United States Code, title 12, section 3101(7); and (2) the term includes a foreign bank organized under the laws of a territory of the United States, Puerto Rico, Guam, American Samoa, or the Virgin Islands, the deposits of which are insured by the Federal Deposit Insurance Corporation.

(b) "Bank holding company" has the meaning given in United States Code, title 12, section 1841(a)(1).

(c) "Bank supervisory agency" means:

(1) an agency of another state with the primary responsibility for chartering and supervising banks; and

(2) the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, the Board of Governors of the Federal Reserve System, and any successor to these agencies.

(d) "Branch" has the meaning given in United States Code, title 12, section 1813(o).

(e) "Commissioner" means the commissioner of commerce.

(f) "Control" has the meaning given in section 46.048, subdivision 1.

(g) "Home state" has the meaning given in section 48.92, subdivision 6, except in relation to foreign banks, for which home state means the state determined to be the home state of the foreign bank under United States Code, title 12, section 3103(c).

(h) "Home state regulator" means, with respect to an out-of-state state bank, the bank supervisory agency of the state in which the bank is chartered.

(i) "Host state" means a state other than the home state of a bank in which the bank maintains or seeks to establish and maintain a branch.

(j) "Interstate merger transaction" means:

(1) the merger or consolidation of banks with different home states, and the conversion of branches of any bank involved in the merger or consolidation into branches of the resulting bank; or

(2) the purchase of all or substantially all of the assets including all or substantially all of the branches of a bank whose home state is different from the home state of the acquiring bank.

(k) "Out-of-state bank" has the meaning given in section 48.92, subdivision 11.

(l) "Out-of-state state bank" means a bank chartered under the laws of any state other than Minnesota.

(m) "Resulting bank" means a bank that has resulted from an interstate merger transaction under this section.

(n) "State" means any state of the United States, the District of Columbia, or any territory of the United States, Puerto Rico, Guam, American Samoa, the Trust Territory of the Pacific Islands, the Virgin Islands, and the Northern Mariana Islands.

(o) "Minnesota bank" means a bank whose home state is Minnesota.

(p) "Minnesota state bank" means a bank chartered under the laws of Minnesota.

Subd. 3. [AUTHORITY OF STATE BANKS TO ESTABLISH INTERSTATE BRANCHES BY MERGER.] With the prior approval of the commissioner, a Minnesota state bank may establish, maintain, and operate one or more branches in a state other than Minnesota according to an interstate merger transaction in which the Minnesota state bank is the resulting bank. Not later than the date on which the required application for the interstate merger transaction is filed with the responsible federal bank supervisory agency, the applicant Minnesota state bank shall file an application on a form prescribed by the commissioner and pay the fee prescribed by section 49.36. The applicant shall also comply with the applicable provisions of sections 49.33 to 49.41. After considering the criteria in section 49.36, subdivision 3, the commissioner may approve the interstate merger transaction and the operation of branches outside of Minnesota by the Minnesota state bank. Such an interstate merger transaction may be consummated only after the applicant has received the commissioner's written approval.

Subd. 4. [INTERSTATE MERGER TRANSACTIONS AND BRANCHING PERMITTED.] (a) One or more Minnesota banks may enter into an interstate merger transaction with one or more out-of-state banks under this section, and an out-of-state bank resulting from the transaction may maintain and operate the branches in Minnesota of a Minnesota bank that participated in the transaction if the conditions and filing requirements of this section are met.

(b) An interstate merger transaction resulting in the acquisition by an out-of-state bank of a Minnesota state bank, or all or substantially all of the branches of a Minnesota state bank, shall not be permitted under this section unless the Minnesota state bank has been in continuous operation, on the date of the acquisition, for at least five years. For purposes of this paragraph, a bank that has been chartered solely for the purpose of, and does not open for business before, acquiring control of, or acquiring all or substantially all of the assets of, an existing bank is considered to have been in existence for the same period of time as the bank to be acquired. For determining the time period of existence of a bank, the time period begins after the issuance of a certificate of authorization and from the date the approved bank actually opens for business.

Subd. 5. [NOTICE AND FILING REQUIREMENT.] An out-of-state bank that will be the resulting bank according to an interstate merger transaction involving a Minnesota state bank shall notify the commissioner of the proposed merger not later than the date on which it files an application for an interstate merger transaction with the responsible federal bank supervisory agency, and shall submit a copy of that application to the commissioner and pay the filing fee, if any, required by the commissioner. A Minnesota state bank that is a party to an interstate merger transaction shall comply with sections 49.33 to 49.41 and with other applicable state and federal laws. An out-of-state bank that is the resulting bank in such an interstate merger transaction shall provide satisfactory evidence to the commissioner of compliance with applicable requirements of the bank's home state.

Subd. 6. [POWERS; ADDITIONAL BRANCHES.] (a) An out-of-state state bank that establishes and maintains one or more branches in Minnesota under this section may conduct any activities at the branch or branches that are authorized under the laws of this state for Minnesota state banks.

(b) A Minnesota state bank may conduct any activities at or in connection with a branch outside Minnesota that are permissible for a bank chartered by the host state where the branch is located, except to the extent that the activities are expressly prohibited by the laws of this state or by any rule or order of the commissioner applicable to the Minnesota state bank. The commissioner may waive the prohibition if the commissioner determines, by rule or order, that the involvement of out-of-state branches of Minnesota state banks in particular activities would not threaten the safety or soundness of the banks.

(c) An out-of-state bank that has established or acquired a branch in Minnesota under this section may establish or acquire additional branches in Minnesota to the same extent that a Minnesota bank may establish or acquire a branch in Minnesota under applicable federal and state law where a bank involved in the transaction could have established, acquired, or operated if the bank had not been a party to the merger transaction.

Subd. 7. [EXAMINATIONS; PERIODIC REPORTS; COOPERATIVE AGREEMENTS; ASSESSMENT OF FEES.] (a) To the extent consistent with paragraph (c), the commissioner may make examinations of a branch established and maintained in this state according to this section by an out-of-state state bank as the commissioner considers necessary to determine whether the branch is being operated in compliance with the laws of this state and according to safe and sound banking practices. Section 46.04 applies to the examinations.

(b) The commissioner may prescribe requirements for periodic reports regarding an out-of-state bank that operates a branch in Minnesota according to this section. The required reports must be provided by the bank or by the bank supervisory agency having primary responsibility for the bank. Reporting requirements prescribed by the commissioner under this paragraph must be: (1) consistent with the reporting requirements applicable to Minnesota state banks; and (2) appropriate for the purpose of enabling the commissioner to carry out responsibilities under this section.

(c) The commissioner may enter into cooperative, coordinating, and information-sharing agreements with any other bank supervisory agencies or any organization affiliated with or representing one or more bank supervisory agencies with respect to the periodic examination or other supervision of a branch in Minnesota of an out-of-state state bank, or a branch of a Minnesota state bank in a host state. The commissioner may accept the parties' reports of examination and reports of investigation in lieu of conducting the commissioner's own examinations or investigations.

(d) The commissioner may enter into contracts with a bank supervisory agency that has concurrent jurisdiction over a Minnesota state bank or an out-of-state state bank operating a branch in this state according to this section to engage the services of the agency's examiners at a reasonable rate of compensation, or to provide the services of the commissioner's examiners to the agency at a reasonable rate of compensation.

(e) The commissioner may enter into joint examinations or joint enforcement actions with other bank supervisory agencies having concurrent jurisdiction over a branch in Minnesota of an out-of-state state bank or a branch of a Minnesota state bank in a host state. However, the commissioner may at any time take the actions independently if the commissioner considers the actions to be necessary or appropriate to carry out responsibilities under this section or to ensure compliance with the laws of this state. In the case of an out-of-state state bank, the commissioner shall recognize the exclusive authority of the home state regulator over corporate governance matters and the primary responsibility of the home state regulator with respect to safety and soundness matters.

(f) Each out-of-state state bank that maintains one or more branches in this state may be assessed and charged according to section 46.131 as if it were a Minnesota state bank and, if assessed, shall pay supervisory and examination fees according to the laws of this state and rules of the commissioner. The fees may be shared with other bank supervisory agencies or an organization affiliated with or representing one or more bank supervisory agencies according to agreements between the parties and the commissioner.

Subd. 8. [ENFORCEMENT.] If the commissioner determines that a branch maintained by an out-of-state state bank in this state is being operated in violation of the laws of this state, or that the branch is being operated in an unsafe and unsound manner, the commissioner has the authority to take all enforcement actions the commissioner would be empowered to take if the branch were a Minnesota state bank. The commissioner shall promptly give notice to the home state regulator of each enforcement action taken against an out-of-state state bank and, to the extent practicable, shall consult and cooperate with the home state regulator in pursuing and resolving enforcement action.

Subd. 9. [NOTICE OF SUBSEQUENT MERGER.] Each out-of-state state bank that has established and maintains a branch in this state according to this section shall give at least 60 days' prior written notice or, in the case of an emergency transaction, shorter notice as is consistent with applicable state or federal law to the commissioner of any merger, consolidation, or other transaction that would cause a change of control with respect to the bank or any bank holding company that controls the bank, with the result that an application would be required to be filed according to United States Code, title 12, section 1817(j), or the federal Bank Holding Company Act of 1956, as amended, United States Code, title 12, section 1841, et seq.

Subd. 10. [SEVERABILITY.] If a provision of this section, or the application of the provision, is found by any court of competent jurisdiction in the United States to be invalid as to a bank, bank holding company, foreign bank, or other person or circumstances, or to be superseded by federal law, the remaining provisions of this section shall not be affected and shall continue to apply to a bank, bank holding company, foreign bank, or other person or circumstance.

Sec. 6. [TOWN OF ELMIRA; DETACHED BANKING FACILITY.]

With the prior approval of the commissioner of commerce, any bank located in the city of Preston may establish and maintain not more than one detached facility in the town of Elmira. A bank desiring to establish a detached facility under this section must follow the approval procedure prescribed in Minnesota Statutes, section 47.54. The establishment of a detached facility under this section is subject to Minnesota Statutes, sections 47.51 to 47.57, except to the extent those sections are inconsistent with this section. This section is effective the day after compliance by the town board of the town of Elmira with Minnesota Statutes, section 645.021, subdivision 3.

Sec. 7. [EFFECTIVE DATE.]

Sections 1 to 3 are effective the day following final enactment. Sections 4 and 5 are effective June 1, 1997.

Section 1. Minnesota Statutes 1994, section 48.185, subdivision 3, is amended to read:

Subd. 3. A financial institution referred to in subdivision 1, may operate a lender's credit card plan, except a plan secured by property used or expected to be used as the debtor's principal residence, on the terms and conditions in section 47.59 that apply to open-end credit. If under an overdraft checking plan, including a debit card, a financial institution may collect a periodic rate of finance charge in connection with extensions of credit under this section, which finance charge does not exceed the equivalent of an annual percentage rate of 18 percent computed on a 365-day year and in accordance with the Truth in Lending Act, United States Code, title 15, section 1601 et seq., and the Code of Federal Regulations, title 12, part 226 (1985).

If credit is extended pursuant to an overdraft checking plan on the day on which an increase in the periodic rate of finance charge is made effective pursuant to this section, the rate in effect prior to the increase shall be the maximum lawful rate chargeable on the amount of credit so extended until that credit is fully repaid according to the terms of the plan.

Sec. 2. Minnesota Statutes 1994, section 48.185, subdivision 4, is amended to read:

Subd. 4. No charges other than those provided for in subdivision 3 shall be made directly or indirectly for any credit extended under the authority of this section according to an overdraft checking plan, except that there may be charged to the debtor:

(a) annual charges, not to exceed $50 per annum, payable in advance, for the privilege of using a bank credit card;

(b) charges for premiums on credit life, credit accident and health, and credit involuntary unemployment insurance if:

(1) the insurance is not required by the financial institution and this fact is clearly disclosed in writing to the debtor; and

(2) the debtor is notified in writing of the cost of the insurance and affirmatively elects, in writing, to purchase the insurance;

(c) (b) charges for the use of an automated teller machine when cash advances are obtained pursuant to this section through the use of an automated teller machine;

(d) (c) in the case of a financial institution referred to in subdivision 1 that does not charge an annual fee, delinquency and collection charges as follows:

(1) on each payment in arrears for a period not less than ten days, in an amount not in excess of the delinquency and collection charge permitted in section 168.71;

(2) for any monthly or other periodic payment period where the debtor has exceeded or thereby exceeds the maximum approved credit limit under the open-end loan account arrangement, in an amount not in excess of the service charge limitations in section 332.50; and

(3) for any returned check or returned automatic payment withdrawal request, in an amount not in excess of the service charge limitation in section 332.50; and

(e) (d) to the extent not otherwise prohibited by law, charges for other goods or services offered by or through a financial institution referred to in subdivision 1 which the debtor elects to purchase, including, but not limited to, charges for check and draft copies and for the replacement of lost or stolen cards.

Sec. 3. Minnesota Statutes 1995 Supplement, section 47.59, subdivision 3, is amended to read:

Subd. 3. [FINANCE CHARGE FOR LOANS.] (a) With respect to a loan, including a loan pursuant to open-end credit but excluding open-end credit pursuant to a credit card, a financial institution may contract for and receive a finance charge on the unpaid balance of the principal amount not to exceed the greater of:

(1) an annual percentage rate not exceeding 21.75 percent; or

(2) the total of:

(i) 33 percent per year on that part of the unpaid balance of the principal amount not exceeding $750; and

(ii) 19 percent per year on that part of the unpaid balance of the principal amount exceeding $750.

With respect to open-end credit pursuant to a credit card, the financial institution may contract for and receive a finance charge on the unpaid balance of the principal amount at an annual percentage rate not exceeding 18 21.75 percent per year.

(b) On a loan where the finance charge is calculated according to the method provided for in paragraph (a), clause (2), the finance charge must be contracted for and earned as provided in that provision or at the single annual percentage rate computed to the nearest .001 of one percent that would earn the same total finance charge at maturity of the contract as would be earned by the application of the graduated rates provided in paragraph (a), clause (2), when the debt is paid according to the agreed terms and the calculations are made according to the actuarial method.

(c) With respect to a loan, the finance charge must be considered not to exceed the maximum annual percentage rate permitted under this section if the finance charge contracted for and received does not exceed the equivalent of the maximum annual percentage rate calculated in accordance with Code of Federal Regulations, title 12, part 226, but using the definition of finance charge provided in this section.

(d) This subdivision does not limit or restrict the manner of calculating the finance charge, whether by way of add-on, discount, discount points, precomputed charges, single annual percentage rate, variable rate, interest in advance, compounding, average daily balance method, or otherwise, if the annual percentage rate does not exceed that permitted by this section.

(e) With respect to a loan secured by real estate, if a finance charge is calculated or collected in advance, or included in the principal amount of the loan, and the borrower prepays the loan in full, the financial institution shall credit the borrower with a refund of the charge to the extent that the annual percentage rate yield on the loan would exceed the maximum rate permitted under paragraph (a), taking into account the prepayment.

(f) With respect to all other loans, if the finance charge is calculated or collected in advance, or included in the principal amount of the loan, and the borrower prepays the loan in full, the financial institution shall credit the borrower with a refund of the charge to the extent the annual percentage rate yield on the loan would exceed the annual percentage rate on the loan as originally determined under paragraph (a) and taking into account the prepayment.

(g) For the purpose of calculating the refund under this subdivision, the financial institution may assume that the contract was paid before the date of prepayment according to the schedule of payments under the loan and that all payments were paid on their due dates.

(h) For loans repayable in substantially equal successive monthly installments, the financial institution may calculate the refund under paragraph (f) as the portion of the finance charge allocable on an actuarial basis to all wholly unexpired payment periods following the date of prepayment, based on the annual percentage rate on the loan as originally determined under paragraph (a), and for the purpose of calculating the refund may assume that all payments are made on the due date.

(i) The dollar amounts in this subdivision and subdivision 6, clause (4), shall change periodically, as provided in this section, according to and to the extent of changes in the implicit price deflator for the gross domestic product, 1987 = 100, compiled by the United States Department of Commerce, and hereafter referred to as the index. The index for December 1991 is the reference base index for adjustments of dollar amounts.

(j) The designated dollar amounts shall change on July 1 of each even-numbered year if the percentage of change, calculated to the nearest whole percentage point, between the index for December of the preceding year and the reference base index is ten percent or more; but

(1) the portion of the percentage change in the index in excess of a multiple of ten percent shall be disregarded and the dollar amounts shall change only in multiples of ten percent of the amounts appearing in Laws 1995, chapter 202, on May 24, 1995; and

(2) the dollar amounts shall not change if the amounts required by this section are those currently in effect pursuant to Laws 1995, chapter 202, as a result of earlier application of this section.

(k) If the index is revised, the percentage of change pursuant to this section shall be calculated on the basis of the revised index. If a revision of the index changes the reference base index, a revised reference base index shall be determined by multiplying the reference base index then applicable by the rebasing factor furnished by the department of commerce. If the index is superseded, the index referred to in this section is the one represented by the department of commerce as reflecting most accurately changes in the purchasing power of the dollar for consumers.

(l) The commissioner shall announce and publish:

(1) on or before April 30 of each year in which dollar amounts are to change, the changes in dollar amounts required by paragraph (j); and

(2) promptly after the changes occur, changes in the index required by paragraph (k) including, if applicable, the numerical equivalent of the reference base index under a revised reference base index and the designation or title of any index superseding the index.

(m) A person does not violate this chapter with respect to a transaction otherwise complying with this chapter if that person relies on dollar amounts either determined according to paragraph (j), clause (2), or appearing in the last publication of the commissioner announcing the then current dollar amounts.

(n) The adjustments provided in this section shall not be affected unless explicitly provided otherwise by law.

Sec. 4. Minnesota Statutes 1995 Supplement, section 47.59, is amended by adding a subdivision to read:

Subd. 15. [LENDER'S CREDIT CARD.] Paragraphs (a) to (g) apply with respect to agreements for open-end credit according to a lender's credit card.

(a) The periodic rate or rates of finance charge under the agreement may be calculated on a daily, monthly, annual, or other periodic basis provided for in the open-end credit agreement if the annual percentage rate does not exceed the rate authorized under subdivision 3. If the applicable periodic percentage rate under the agreement is other than daily, a periodic finance charge may be calculated on an amount equal to the average of outstanding unpaid indebtedness for the applicable billing period, determined by dividing the total of the amounts of outstanding unpaid indebtedness for each day in the applicable billing period by the number of days in the billing period. If the applicable periodic percentage rate under the agreement is monthly, a billing period is considered to be a month or monthly if the last day of each billing period is on the same day of each month or does not vary by more than four days from that day. This charge may be compounded.

(b) If the open-end credit agreement so provides, the periodic percentage rate or rates of finance charge under the agreement may change from time to time according to a schedule or formula or upon the happening of an event or circumstance specified in the agreement. The periodic percentage rate or rates, as changed, may be made applicable to all or any part of outstanding unpaid indebtedness under the agreement on or after the effective date of the change, including any indebtedness arising out of purchases made or loans obtained before the effective date of the change.

(c) If the balance of the open-end credit account subject to this subdivision is attributable solely to purchases of goods or services charged to the account during one billing cycle, and the account is paid in full before the due date of the first statement issued after the end of that billing cycle, no finance charge shall be charged on that balance.

(d) A financial institution may at any time and from time to time unilaterally extend to a borrower under an open-end credit agreement the option of omitting monthly installments.

(e) A financial institution may, if the open-end agreement so provides, at any time or from time to time, amend the terms of the agreement according to this subdivision.

(1) The financial institution shall notify each affected borrower of the amendment in the manner set forth in the open-end credit agreement and in compliance with the requirements of the Truth in Lending Act, United States Code, title 15, section 1601, et seq. and the regulations adopted under the act, as in effect from time to time, if applicable. However, if the amendment has the effect of increasing the periodic finance charges to be paid by the borrower, the financial institution shall mail or deliver to the borrower, at least 30 days before the effective date of the amendment, a clear and conspicuous written notice describing the amendment and setting forth the effective date of the amendment and the other pertinent information contemplated by this subdivision.

(2) If the amendment has the effect of increasing the periodic finance charges to be paid by the borrower, the amendment must, except as otherwise provided for in this subdivision, become effective as to a particular borrower, as of the date specified in the notice of proposed amendment or as of any later date, in either case, according to this section and as stipulated in the notice, so long as the borrower does not, within 30 days of the earlier of the mailing or delivery of the notice of the amendment, furnish written notice to the financial institution that the borrower does not agree to accept the amendment. The notice from the financial institution shall include a statement that, absent the borrower's written notice to the financial institution within 30 days of the earlier of the mailing or delivery of the notice of the amendment that the borrower does not agree to accept the amendment, the proposed amendment will become effective, and the address to which a borrower may send notice of the borrower's election not to accept the amendment. A borrower who gives a timely notice electing not to accept an amendment shall be permitted to pay the outstanding unpaid indebtedness under the open-end credit agreement according to the terms of the agreement without giving effect to the amendment. If the borrower does not agree to accept the proposed amendment, the financial institution may terminate the borrower's right to make additional purchases or obtain additional loans under the open-end credit agreement and the borrower will continue to be subject to the terms of the existing agreement until the outstanding unpaid indebtedness under the agreement is paid in full. As a condition to the effectiveness of a notice that a borrower does not accept the amendment, the financial institution may require the borrower to return any credit card to the financial institution that can be used to access the agreement. If after 30 days from the mailing or delivery by the financial institution of a proposed amendment, a borrower obtains credit under an open-end credit agreement through the use of a credit card or otherwise, notwithstanding that the borrower has, before obtaining the credit, given the financial institution notice that the borrower does not accept an amendment, the amendment is considered to have been accepted and becomes effective as of the date that the amendment would have become effective but for the giving of notice by the borrower.

(3) Notwithstanding paragraph (2), the financial institution may also amend the open-end credit agreement by requiring that an amendment becomes effective only if the borrower obtains credit through the use of a credit card or otherwise after a date specified in the notice of the proposed amendment. The date must be at least 30 days after the giving of the notice, but need not be the date the amendment becomes effective, by making a purchase, obtaining a loan, or, if the borrower indicates to the financial institution in writing, the borrower's express agreement to the amendment. The amendment may become effective as to a particular borrower as of the first day of the billing period during which the borrower obtained the credit or so indicated agreement to the amendment. A borrower who fails to obtain the credit or indicate agreement to an amendment shall be permitted to pay the outstanding unpaid indebtedness in the borrower's account under the open-end credit agreement according to the terms of the agreement without giving effect to the amendment subject to the right of the financial institution to terminate the borrower's right to make additional purchases or obtain additional loans under the open-end line of credit agreement as provided in paragraph (2).

(4) If the terms of the open-end credit agreement so provide, as originally drawn or as amended under this subdivision, an amendment may, on and after the date upon which it becomes effective as to a particular borrower, apply to all outstanding unpaid indebtedness under the open-end credit agreement, including indebtedness that has arisen out of purchases made or loans obtained before the effective date of the amendment, as well as to indebtedness arising out of purchases made or loans obtained on or after the effective date of the amendment.

(5) For the purposes of this subdivision, the following is not considered an amendment that has the effect of increasing the interest to be paid by the borrower:

(i) a decrease in the required amount of periodic installment payments;

(ii) a change in the schedule or formula used under a variable rate open-end credit agreement under paragraph (a) if the initial interest rate resulting from the change is not an increase; and

(iii) a change from a daily periodic rate to a periodic rate other than daily, or from a periodic rate other than daily to a daily periodic rate if there is no resulting change in the annual percentage rate as determined according to the Truth in Lending Act and regulations adopted under the act, as in effect from time to time.

(6) The procedures for amendment by a financial institution of the terms of an open-end credit agreement to which a borrower other than an individual borrower is a party may, in lieu of paragraphs (a) to (e), be as the agreement may otherwise provide.

(f) An open-end credit agreement between a financial institution located in Minnesota and a borrower, wherever the borrower's place of residence, may be governed by the laws of this state and federal law, if provided for in the agreement.

(g) All terms, conditions, and other provisions of and relating to an open-end credit agreement that are authorized under this section, including, without limitation, additional charges authorized under subdivision 6, provisions relating to the method of determining the outstanding unpaid indebtedness on which finance charges are applied, provisions relating to free ride periods, provisions relating to the financial institution's right to terminate the open-end credit agreement, choice of law provisions, change in terms provisions, provisions relating to the right to charge and collect attorney fees and court costs, and the computing of periodic finance charges, are considered to be material to the determination of the interest rate under this section and under the most favored lender doctrine, Section 85 of the National Bank Act, 49 Stat. 191 (1933); United States Code, title 12, section 85; Sections 521 to 523 of the Depository Institutions Deregulation and Monetary Control Act of 1980, 94 Stat. 132; United States Code, title 12, sections 1831(d) and 1785; and Section 301 of the Financial Institutions Reform, Recovery and Enforcement Act of 1989, 103 Stat. 280; United States Code, title 12, section 1463(g), except that additional charges under subdivision 6 shall not be considered finance charges for the purpose of calculating the numeric limitation on finance charges under subdivision 3.

Sec. 5. Minnesota Statutes 1995 Supplement, section 47.59, is amended by adding a subdivision to read:

Subd. 16. [VIOLATIONS.] (a) Any financial institution that violates any provision of this section forfeits its right to collect any interest in connection with the transaction in excess of 18 percent per annum and is also subject to the remedies provided in section 48.196.

(b) Any financial institution that intentionally violates any provision of this section forfeits its right to collect any interest in connection with the transaction and is also subject to the remedies provided in section 48.196. The criteria for defining an intentional violation are those used in the Federal Truth in Lending Act, United States Code, title 15, sections 1601, et seq., and the regulations adopted under that act.

Sec. 6. [REPEALER.]

Minnesota Statutes 1994, section 48.185, subdivision 5, is repealed.

Sec. 7. [EFFECTIVE DATE; APPLICABILITY.]

Sections 1 to 4 and 6 are effective July 1, 1996, and apply to existing credit card agreements issued under Minnesota Statutes, section 48.185, if the requirements of section 47.59, subdivision 15, paragraph (e), are met."

Delete the title and insert:

"A bill for an act relating to financial institutions; regulating consumer credit; modifying rates, fees, and other terms and conditions; providing clarifying and technical changes; providing opportunities for state banks to develop their Minnesota markets through broader intrastate branching; regulating the use of credit cards by institutions; modifying interest rates, fees, and other terms and conditions governing the use of credit cards; providing technical corrections; amending Minnesota Statutes 1994, sections 9.031, subdivision 13; 13.71, by adding a subdivision; 46.041, subdivision 1; 46.044, subdivision 1; 47.10, subdivision 4; 47.101, as amended; 47.201, subdivision 2; 47.51; 47.62,

subdivision 1; 48.09; 48.10; 48.185, subdivisions 3 and 4; 48.301; 48.34; 48.845, subdivision 4; 52.131; 53.01; 53.03, subdivision 1; 53.07, subdivision 2; 118.005, subdivision 1; 168.69; 168.705; 168.72, by adding a subdivision; 168.73; 300.025; 332.50, subdivision 2; 334.02; 334.03; Minnesota Statutes 1995 Supplement, sections 46.048, subdivision 2b; 47.20, subdivision 9; 47.52; 47.59, subdivisions 2, 3, 4, 5, 6, and by adding subdivisions; 47.60, subdivision 2; 47.61, subdivision 3; 48.153, subdivision 3a; 48.194; 48.65; 50.1485, subdivision 1; 50.245, subdivision 4; 53.04, subdivision 3a; 53.09, subdivision 2; 56.131, subdivisions 2, 4, and 6; 56.14; 62B.04, subdivisions 1 and 2; Laws 1995, chapter 171, section 70; proposing coding for new law in Minnesota Statutes, chapter 49; repealing Minnesota Statutes 1994, sections 47.201, subdivision 7; 47.27, subdivision 3; 48.185, subdivision 5; 48.94; 51A.01; 51A.02, subdivisions 1, 2, 3, 4, 5, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38, 39, 41, 42, 43, 44, 45, 46, 47, 48, 49, 50, 51, 52, 53, 55, and 56; 51A.03; 51A.04; 51A.041; 51A.05; 51A.06; 51A.065; 51A.07; 51A.08; 51A.09; 51A.10; 51A.11; 51A.12; 51A.13; 51A.131; 51A.14; 51A.15; 51A.16; 51A.17; 51A.19, subdivisions 1, 4, 5, 6, 7, 8, 10, 11, 12, and 13; 51A.20; 51A.21, subdivisions 1, 2, 3, 4, 5, 6a, 6b, 7, 8, 9, 10, 11, 12, 13, 14, 15, 17, 18, 20, 21, 22, 23, 24, 25, 26, and 27; 51A.22; 51A.23, subdivision 6; 51A.24; 51A.251; 51A.261; 51A.262; 51A.27; 51A.28; 51A.29; 51A.30; 51A.31; 51A.32; 51A.33; 51A.34; 51A.35; 51A.361; 51A.37; 51A.38; 51A.40; 51A.41; 51A.42; 51A.43; 51A.44; 51A.45; 51A.46; 51A.47; 51A.48; 51A.51; 51A.52; 51A.54; 51A.55; 51A.56; 51A.57; 53.04, subdivision 3b; Minnesota Statutes 1995 Supplement, sections 51A.02, subdivisions 6, 7, 26, 40, and 54; 51A.19, subdivision 9; 51A.21, subdivision 28; 51A.23, subdivisions 1 and 7; 51A.386; 51A.50; 51A.53; 51A.58; 53.04, subdivisions 3c and 4a; Minnesota Rules, parts 2655.0100; 2655.0200; 2655.0300; 2655.0400; 2655.0500; 2655.0600; 2655.0700; 2655.0800; 2655.0900; 2655.1100; 2655.1200; and 2655.1300."

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. 2375, A bill for an act relating to local improvements; requiring local governing bodies to show the need for and cost-effectiveness of local improvements upon petition of 90 percent of certain property owners; prohibiting fees for preparing certain reports from being based primarily on the estimated cost of improvement; amending Minnesota Statutes 1994, section 429.031, subdivision 1, and by adding a subdivision.

Reported the same back with the following amendments:

Page 2, line 18, delete the new language

Page 3, line 9, reinstate the stricken "such" and delete "from adjacent owners"

Page 3, delete section 2

Amend the title as follows:

Page 1, line 2, delete everything after the semicolon

Page 1, delete lines 3 and 4

Page 1, line 5, delete everything before "prohibiting"

Page 1, line 9, delete ", and by adding a subdivision"

With the recommendation that when so amended the bill pass.

The report was adopted.

Osthoff from the Committee on Financial Institutions and Insurance to which was referred:

H. F. No. 2394, A bill for an act relating to insurance; health; requiring coverage for periodic prostate cancer screening; proposing coding for new law in Minnesota Statutes, chapter 62Q.

Reported the same back with the following amendments:

Page 1, delete lines 7 to 10 and insert:

"A health plan must cover prostate cancer screening for men 40 years of age or over who are symptomatic or in a high-risk category and for all men 50 years of age or older."

Amend the title as follows:

Page 1, line 3, delete "periodic"

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. 2478, A bill for an act relating to consumer protection; restricting the provision of immigration services; regulating notaries public; providing penalties; amending Minnesota Statutes 1994, section 8.31, subdivision 1; proposing coding for new law in Minnesota Statutes, chapters 325E; and 359.

Reported the same back with the following amendments:

Pages 1 and 2, delete section 1

Page 2, line 34, delete "requested" and insert "provided"

Page 2, line 35, delete "and appropriate to the customer's needs"

Page 3, line 23, delete ", and obtaining the test results"

Page 3, line 26, delete "paragraph (a)" and insert "this section"

Page 4, line 17, delete "a fee" and insert "fees authorized in section 357.17"

Page 6, line 23, delete "of" and insert "or"

Page 6, after line 33, insert:

"A person who is found to have violated this section is subject to the penalties provided in section 8.31."

Renumber the sections in sequence

Amend the title as follows:

Page 1, line 4, delete "amending Minnesota"

Page 1, line 5, delete everything before "proposing"

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. 2483, A bill for an act relating to courts; clarifying the process for applying for a writ of certiorari; amending Minnesota Statutes 1994, section 606.01.

Reported the same back with the following amendments:

Page 1, after line 5, insert:

"Section 1. [543.21] [SERVICE OF CERTAIN GOVERNMENT ENTITIES.]

If a writ is to be issued to, or a complaint is to be served on, a board or agency created by statute or home rule charter, the writ or complaint shall be captioned in the name of the board or agency and served on the chair or an officer of the board or agency."

Renumber the sections in sequence

Amend the title as follows:

Page 1, line 4, before the period, insert "; proposing coding for new law in Minnesota Statutes, chapter 543"

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. 2493, A bill for an act relating to retirement; individual account plans; technical and housekeeping changes; amending Minnesota Statutes 1995 Supplement, sections 354D.02, subdivision 2; 354D.03; 354D.04; and 354D.06; proposing coding for new law in Minnesota Statutes, chapter 354D.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

Section 1. Laws 1995, chapter 262, article 7, section 1, is amended to read:

Section 1. [TRANSFERRED EMPLOYEES.]

This section applies if the Itasca county medical center is sold, leased, or transferred to a private entity or public corporation. Notwithstanding any provision of Minnesota Statutes, sections 356.24 and 356.25 to the contrary, to facilitate the orderly transition of employees affected by the sale, lease, or transfer, the county may, in its discretion, make, from assets to be transferred to the private entity or public corporation, payments to a qualified pension plan established for the transferred employees by the private entity or public corporation, to provide benefits substantially similar to those the employees would have been entitled to under the provisions of the public employees retirement association, Minnesota Statutes 1994, sections 353.01 to 353.46.

Sec. 2. [TREATMENT OF TERMINATED, NONVESTED EMPLOYEES.]

Subdivision 1. [ELIGIBILITY.] (a) An eligible individual is an individual who:

(1) is an employee of the Itasca county medical center immediately prior to the sale, lease, or transfer of that facility to a private entity or public corporation;

(2) is terminated at the time of the sale, lease, or transfer; and

(3) had less than three years of service credit in the public employees retirement association plan at the date of termination.

(b) For an eligible individual under paragraph (a), the county may make a member contribution equivalent payment under subdivision 2.

Subd. 2. [MEMBER CONTRIBUTION EQUIVALENT PAYMENT.] The member contribution equivalent payment is an amount equal to the total refund provided by Minnesota Statutes, section 353.34, subdivisions 1 and 2. To be eligible for the member contribution equivalent payment, the individual in subdivision 1, paragraph (a), must apply for a refund under Minnesota Statutes, section 353.34, subdivisions 1 and 2, within one year of termination. A member contribution equivalent amount exceeding $200 must be made directly to an individual retirement account under section 408(a) of the federal Internal Revenue Code, as amended, or to another qualified plan. A member contribution equivalent amount of $200 or less may, at the preference of the individual, be made to the individual or to an individual retirement account under section 408(a) of the federal Internal Revenue Code, as amended, or to another qualified plan.

Sec. 3. [EFFECTIVE DATE.]

Sections 1 and 2 are effective on the day following approval by the Itasca county board and compliance with Minnesota Statutes, section 645.021.

Section 1. Laws 1967, chapter 798, section 2, is amended to read:

Sec. 2. [RICHFIELD FIREFIGHTERS RELIEF ASSOCIATION; DISABILITY PENSION AMOUNT.] In lieu of the disability pension and limitation as provided for in Minnesota Statutes, Section 424.20, the firemen's firefighters relief association in the city of Richfield may provide for disability benefits, as defined in Minnesota Statutes, Section 424.19, of not more than a sum equal to one-half 54 percent of the salary, as payable from time to time during the period of pension payment to firemen firefighters of the highest grade, not including officers of the department, in the employ of the city of Richfield, such. The disability pension to be is payable as the by-laws of the association provide.

Sec. 2. Laws 1967, chapter 798, section 4, is amended to read:

Sec. 4. [SERVICE PENSION.]

Subdivision 1. [AGE AT WHICH SERVICE PENSION IS PAYABLE.] A member of the fire department, who enters the employment of the department on or after January 1, 1968, shall not be eligible to receive a service pension until he the person reaches the age of 55 years, in lieu of the eligibility requirement pertaining to age provided in Minnesota Statutes, Sections 424.21 and 424.22.

Subd. 2. [SERVICE PENSION AMOUNT.] In lieu of the service pension amount set forth in Minnesota Statutes, section 424.21, if its bylaws so provide, the Richfield firefighters relief association may provide a service pension to a retiring firefighter with at least 20 years of service equal to 55 percent of the salary, as payable from time to time during the period of pension payment to firefighters of the highest grade, not including officers of the department, in the employ of the city of Richfield.

Sec. 3. Laws 1992, chapter 563, section 5, is amended to read:

Sec. 5. [ST. PAUL POLICE AND FIRE CONSOLIDATION ACCOUNTS; LIMITATION ON POSTRETIREMENT BENEFIT REDUCTIONS.]

(a) A monthly service pension or retirement benefit payment from the St. Paul fire department relief association consolidation account or the St. Paul police relief association consolidation account may not be reduced in amount to an amount that is less than that received by the person for the immediately previous month.

(b) The service pension or retirement benefit payable from the St. Paul fire department consolidation account or from the St. Paul police consolidation account to a person who becomes newly entitled to that service pension or retirement benefit may not be an amount that is less than the service pension or retirement benefit then payable to a comparably situated pensioner or benefit recipient of that consolidation account.

This (c) The limitation in paragraph (a) or (b) may not be construed to limit the power of the board of trustees of the relief executive director of the public employees retirement association to require proof of continuing eligibility for receipt of a disability benefit or a survivor benefit, or to require the reduction in amount or elimination of a disability benefit in the event of changed medical circumstances, or to require the reduction in amount or elimination of a survivor benefit in the event of changes in eligibility.

Sec. 4. Laws 1994, chapter 490, section 2, is amended to read:

Sec. 2. [AUSTIN FIRE DEPARTMENT RELIEF ASSOCIATION; SURVIVOR COVERAGE FOR CERTAIN SPOUSES OF CERTAIN RETIRED FIREFIGHTERS.]

(a) Notwithstanding any provision to the contrary of the general or special laws governing the Austin fire department relief association, the articles of incorporation of the relief association, or the bylaws of the relief association, a person described in paragraph (b) is entitled to a surviving spouse benefit as provided in paragraph (c).

(b) A person entitled under paragraph (a) is a person who:

(1) was the legally married spouse of a deceased retired or disabled member of the Austin fire department relief association at the time of the deceased member's death;

(2) married the retired or disabled member after the date on which the member terminated active employment as a firefighter by the Austin fire department; and

(3) was married for at least three years before the date of the death of the retired or disabled member; and

(3) was married to a retired or disabled member whose prior spouse, if any, predeceased the member.

(c) The surviving spouse benefit is an amount equal to the amount of a surviving spouse benefit payable by the Austin fire department relief association to the surviving spouse of a deceased active member of the relief association under Laws 1949, chapter 87, section 26, subdivision 4, as amended by Laws 1965, chapter 418, section 5, reduced by any amount awarded or payable from the service pension or disability benefit of the deceased former firefighter to a former spouse of the deceased active member by virtue of the legal dissolution of the member's marriage to the former spouse.

Sec. 5. [SURVIVOR BENEFIT AMOUNTS.]

Subdivision 1. [ELIGIBILITY.] The eligibility requirements of Minnesota Statutes, section 424.24, apply to the Richfield firefighters relief association. The survivor benefit amounts set forth in subdivisions 2 to 4 apply in lieu of the benefit amounts set forth in Minnesota Statutes, section 424.24.

Subd. 2. [SURVIVING SPOUSE BENEFIT AMOUNT.] The Richfield firefighters relief association, if its bylaws so provide, may provide a surviving spouse benefit amount of 43.2 percent of the salary, as payable from time to time during the period of benefit payment to firefighters of the highest grade, not including officers of the department, in the employ of the city of Richfield.

Subd. 3. [SURVIVING CHILD BENEFIT AMOUNT.] The Richfield firefighters relief association, if its bylaws so provide, may provide a surviving child benefit of the following percentage of the salary, as payable from time to time during the period of benefit payment to firefighters of the highest grade, not including officers of the department, in the employ of the city of Richfield:

(1) if a surviving spouse benefit is also payable, 5.4 percent for each surviving child; or

(2) if a surviving spouse benefit is not also payable, 16.2 percent for each surviving child.

Subd. 4. [SURVIVOR BENEFIT MAXIMUM.] The maximum of the combination of survivor benefits under subdivisions 2 and 3 is 54 percent of the salary, as payable from time to time during the period of benefit payment to firefighters of the highest grade, not including officers of the department, in the employ of the city of Richfield.

Subd. 5. [SURVIVOR BENEFIT PAYMENT DURATION.] (a) A surviving spouse benefit is payable to a surviving spouse of a deceased active, deferred, or retired Richfield firefighter meeting the definition set forth in Minnesota Statutes, section 424.24, subdivision 2, paragraph (a), for the life of that person.

(b) A surviving child benefit is payable to a surviving child of a deceased active, deferred, or retired Richfield firefighter meeting the definition set forth in Minnesota Statutes, section 424.24, subdivision 2, paragraph (b), until the person reaches the age of 18.

Sec. 6. [MINNEAPOLIS FIRE DEPARTMENT RELIEF ASSOCIATION; AUTHORIZATION OF VARIOUS ADMINISTRATIVE CHANGES.]

Notwithstanding any provision of any law to the contrary, the Minneapolis fire department relief association is authorized to implement the following administrative and other modifications:

(1) five-year vesting under Minnesota Statutes, section 423A.19, retroactive to the April 1, 1987, date when the change was approved by the Minneapolis city council, despite the failure to meet the filing requirement of Minnesota Statutes, section 423A.19, subdivision 4;

(2) the period for applying for a disability benefit by or on behalf of a disabled member increased from 30 days after the beginning of the disability to 90 days after the beginning of the disability;

(3) a salary for services for the members of the board of trustees of the relief association who are elected members and who are not officers in an amount equal to 2.5 percent of the maximum salary of a first grade firefighter;

(4) a salary for the president of the relief association increased to an amount equal to ten percent of the maximum salary of a first grade firefighter;

(5) a salary for the executive secretary of the relief association increased to an amount equal to 30 percent of the maximum salary of a first grade firefighter; and

(6) eligibility for the surviving spouse of a deceased deferred member, the dependent surviving child or children of a deceased deferred member, or a combination, to receive annual postretirement payments under Laws 1989, chapter 319, article 19, section 7, as amended by Laws 1992, chapter 471, article 2, section 5, with confirmation and ratification of any past payments of annual postretirement payments to survivors of deceased deferred members since June 1, 1989.

Sec. 7. [EFFECTIVE DATE.]

Subdivision 1. [RICHFIELD FIRE.] Sections 1, 2, and 5 are effective if there is an affirmative vote by the Richfield firefighters relief association to consolidate with the public employees retirement association under Minnesota Statutes, section 353A.04, on the day following approval by the Richfield city council and compliance with Minnesota Statutes, section 645.021.

Subd. 2. [ST. PAUL POLICE AND FIRE.] Section 3 is effective retroactively to December 31, 1993, upon approval by the city council of the city of St. Paul and compliance with Minnesota Statutes, section 645.021.

Subd. 3. [AUSTIN FIRE.] Section 4 is effective upon approval by the Austin city council and compliance with Minnesota Statutes, section 645.021.

Subd. 4. [MINNEAPOLIS FIRE.] (a) Section 6 is effective on the day following final approval by the Minneapolis city council and compliance with Minnesota Statutes, section 645.021.

(b) The city council resolution must specify the provisions contained in section 6 that it is approving. The city council may approve some or all of the provisions contained in section 6.

Section 1. Laws 1965, chapter 519, section 1, as amended by Laws 1967, chapter 819, section 1; Laws 1969, chapter 123, section 1; Laws 1975, chapter 57, section 1; Laws 1977, chapter 164, section 2; Laws 1990, chapter 589, section 5; and Laws 1992, chapter 454, section 2, is amended to read:

Section 1. [MINNEAPOLIS, CITY OF; FIREFIGHTER'S RELIEF ASSOCIATION; SURVIVING SPOUSE'S ENTITLEMENT.] Notwithstanding the provisions of Minnesota Statutes 1965, Section 69.48, to the contrary, when a service pensioner, disability pensioner, or deferred pensioner, or an active member of a relief association dies, leaving:

(1) A surviving spouse who was a legally married spouse, residing with the decedent, and who was married while or prior to the time the decedent was on the payroll of the fire department in the case of a deceased active member; and who, in case the deceased member was a service or deferred pensioner was legally married to the member at least one year five years before retirement from the fire department death; or

(2) A child or children who were living while the deceased was on the payroll of the fire department, or born within nine months after the decedent was withdrawn from the payroll of the fire department, the surviving spouse and the child or children shall be entitled to a pension or pensions, as follows:

(a) To the surviving spouse, a pension of not less than 17 units, and not to exceed the total of 22 units per month, as the bylaws of the association provide, for life; provided, that if the spouse shall remarry then the pension shall cease and terminate as of the date of remarriage; provided, further, if the remarriage terminates for any reason, the surviving spouse shall again be entitled to a pension as the bylaws of the association provide;

(b) To the child or children, if their other parent is living, a pension of not to exceed eight units per month for each child up to the time each child reaches the age of not less than 16 years and not to exceed an age of 18 years; provided, however, upon approval by the board of trustees, such a child who is a full-time student, upon proof of compliance with the provisions of this act, may be entitled to such pension so long as the child is a full-time student and has not reached 22 years of age, all in conformity with the bylaws of the association; provided, further, the total pensions hereunder for the surviving spouse and children of the deceased member shall not exceed the sum of 41 units per month;

(c) A child or children of a deceased member after the death of their other parent, or in the event their other parent predeceases the member, be entitled to receive a pension or pensions in such amount as the board of trustees of the association shall deem necessary to properly support the child or children until they reach the age of not less than 16 and not more than 18 years; provided, however, upon approval by the board of trustees, such a child who is a full-time student, upon proof of compliance with the provisions of this act, may be entitled to such pension so long as the child is a full-time student and has not reached 22 years of age, as the bylaws of the association may provide; but the total amount of the pension or pensions hereunder for any child or children shall not exceed the sum of 41 units per month;

(d) For the purposes of this act, a full-time student is defined as an individual who is in full-time attendance as a student at an educational institution. Whether or not the student was in full-time attendance would be determined by the board of trustees of the association in the light of the standards and practices of the school involved. Specifically excluded is a person who is paid by the person's employer while attending school at the request of the person's employer. Benefits may continue during any period of four calendar months or less in any 12 month period in which a person does not attend school if the person shows to the satisfaction of the board of trustees that the person intends to continue in full-time school attendance immediately after the end of the period. An educational institution is defined so as to permit the payment of benefits to students taking vocational or academic courses in all approved, accredited or licensed schools, colleges, and universities. The board of trustees shall make the final determination of eligibility for benefits if any question arises concerning the approved status of the educational institution which the student attends or proposes to attend;

(e) In the event that a child who is receiving a pension as provided above shall marry before the age of 22 years, the pension shall cease as of the date of the marriage.

Sec. 2. [EFFECTIVE DATE.]

Section 1 is effective on the day following approval by the Minneapolis city council and compliance with Minnesota Statutes, section 645.021.

Section 1. Minnesota Statutes 1994, section 353B.07, subdivision 3, is amended to read:

Subd. 3. [FORMULA PERCENTAGE RATE.] (a) The formula percentage rate shall be 2.333 percent per year of allowable service for each of the first 20 years of allowable service, 1.333 percent per year of allowable service for each

year of allowable service in excess of 20 years but not in excess of 27 years, and .5 percent for each year of allowable service in excess of 25 years for the former members of the following consolidating relief associations:

(1) Rochester fire department relief association;

(2) Rochester police relief association;

(3) St. Cloud fire department relief association;

(4) St. Cloud police relief association;

(5) St. Louis Park police relief association; and

(6) Winona police relief association.

(b) The formula percentage rate shall be 2.5 percent per year of allowable service for each of the first 20 years of allowable service for the former members of the following consolidating relief associations:

(1) Albert Lea police relief association;

(2) Anoka police relief association;

(3) Faribault fire department relief association;

(4) Faribault police benefit association;

(5) Mankato police benefit association;

(6) Red Wing police relief association; and

(7) West St. Paul police relief association.

(c) The formula percentage rate shall be 2.5 percent per year of allowable service for each of the first 20 years of allowable service and .5 percent per year of allowable service for each year of service in excess of 25 years of allowable service for the former members of the following consolidating relief associations:

(1) Austin firefighters relief association;

(2) Austin police relief association;

(3) South St. Paul firefighters relief association;

(4) South St. Paul police relief association; and

(5) Virginia police relief association.

(d) The formula percentage rate shall be 2.1875 percent per year of allowable service for each of the first 20 years of allowable service and 1.25 percent per year of allowable service for each year of allowable service in excess of 20 years of allowable service but not in excess of 27 years of allowable service for the former members of the Columbia Heights police relief association.

(e) The formula percentage rate shall be 2.65 percent per year of allowable service for each of the first 20 years of allowable service and an additional annual benefit of $120 per year of allowable service in excess of 20 years of allowable service but not in excess of 25 years of allowable service for the former members of the following consolidating relief associations:

(1) Hibbing firefighters relief association; and

(2) Hibbing police relief association.

(f) The formula percentage rate or rates shall be the following for the former members of the consolidating relief associations as indicated:

(1) 2.5 percent per year of allowable service for each of the first 20 years of allowable service, one percent per year of allowable service in excess of 20 years of allowable service but not more than 25 years of allowable service, and 1.5 percent per year of allowable service in excess of 25 years of allowable service, Albert Lea firefighters relief association;

(2) 2.5333 percent per year of allowable service for each of the first 20 years of allowable service and 1.3333 percent per year of allowable service in excess of 20 years of allowable service, but not in excess of 27 years of allowable service, if service as an active member terminated before January 31, 1994, and 2.3333 percent per year of allowable service for each of the first 20 years of allowable service and 1.3333 percent per year of allowable service for each year of allowable service in excess of 20 years of allowable service, but not in excess of 27 years of allowable service if service as an active member terminated on or after January 31, 1994, Bloomington police relief association;

(3) the greater of 2.5 percent per year of allowable service for each of the first 20 years of allowable service applied to the final salary base, or two percent per year of allowable service for each of the first 20 years of allowable service applied to top grade patrol officer's salary base, Brainerd police relief association;

(4) 4.25 percent per year of allowable service for each of the first 20 years of allowable service and an additional benefit of $10 per month per year of allowable service in excess of 20 years of allowable service but not more than 25 years of allowable service, Buhl police relief association;

(5) 2.5 percent per year of allowable service for each of the first 20 years of allowable service and an additional benefit of $5 per month per year of allowable service in excess of 20 years of allowable service but not more than 25 years of allowable service, Chisholm firefighters relief association;

(6) 2.5 percent per year of allowable service for each of the first 20 years of allowable service and an additional benefit of $5 per month per year of allowable service in excess of 20 years of allowable service but not more than 25 years of allowable service and .5 percent per year of allowable service in excess of 25 years of allowable service, Chisholm police relief association;

(7) 2.1875 percent per year of allowable service for each year of the first 20 years of allowable service, 1.25 percent per year of allowable service in excess of 20 years of allowable service but not more than 25 years of allowable service and 1.75 percent per year of allowable service in excess of 25 years of allowable service, Columbia Heights fire department relief association, paid division;

(8) 2.5 percent per year of allowable service for each year of the first 20 years of allowable service and 1.5 percent per year of allowable service rendered after attaining the age of 60 years, Crookston fire department relief association;

(9) 2.5 percent per year of allowable service for each year of the first 30 years of allowable service, Crookston police relief association;

(10) 2.25 percent per year of allowable service for each year of the first 20 years of allowable service and 1.25 percent per year of allowable service in excess of 20 years of allowable service, but not more than 27 years of service, Crystal police relief association;

(11) 1.99063 percent per year of allowable service for each year of the first 20 years of allowable service, 1.25 percent for the 21st year of allowable service, and 2.5 percent per year of allowable service in excess of 21 years of allowable service but not more than 25 years of allowable service, Duluth firefighters relief association;

(12) 1.9875 percent per year of allowable service for each year of the first 20 years of allowable service, 1.25 percent for the 21st year of allowable service, and 2.5 percent per year of allowable service in excess of 21 years of allowable service but not more than 25 years of allowable service, Duluth police relief association;

(13) 2.5 percent per year of allowable service for each year of the first 20 years of allowable service, and two percent per year of allowable service in excess of 20 years but not more than 25 years of allowable service and not to include any year of allowable service rendered after attaining the age of 55 years, Fairmont police benefit association;

(14) two percent per year of allowable service for each year of the first ten years of allowable service, 2.67 percent per year of allowable service in excess of ten years of allowable service but not more than 20 years of allowable service and 1.3333 percent per year of allowable service in excess of 20 years of service but not more than 27 years of allowable service, Fridley police pension association;

(15) 2.5 percent per year of allowable service for each year of the first 20 years of allowable service and an additional annual amount of $30 per year of allowable service in excess of 20 years of allowable service but not more than 30 years of allowable service, Mankato fire department relief association;

(16) for members who terminated active service as a Minneapolis firefighter before June 1, 1993, 2.0625 percent per year of allowable service for each year of the first 20 years of allowable service, 1.25 percent per year of allowable service in excess of 20 years of allowable service but not more than 24 years of allowable service and five percent for the 25th year of allowable service, and for members who terminated active service as a Minneapolis firefighter after May 31, 1993, two percent for each year of the first 19 years of allowable service, 3.25 percent for the 20th year of allowable service, and two percent per year of allowable service in excess of 20 years of service, but not more than 25 years of allowable service, Minneapolis fire department relief association;

(17) two percent per year of allowable service for each year of the first 25 years of allowable service, Minneapolis police relief association;

(18) the greater of 2.5 percent per year of allowable service for each of the first 20 years of allowable service applied to the final salary base, or two percent per year of allowable service for each of the first 20 years of allowable service applied to highest patrol officer's salary base plus .5 percent of the final salary base per year of allowable service for each of the first three years of allowable service in excess of 20 years of allowable service, New Ulm police relief association;

(19) two percent per year of allowable service for each of the first 25 years of allowable service and 1.5 percent per year of allowable service in excess of 25 years of allowable service, Red Wing fire department relief association;

(20) 2.55 2.75 percent per year of allowable service for each of the first 20 years of allowable service, Richfield fire department relief association;

(21) 2.4 percent per year of allowable service for each of the first 20 years of allowable service and 1.3333 percent per year of allowable service in excess of 20 years of allowable service but not more than 27 years of allowable service, Richfield police relief association;

(22) for a former member with less than 20 years of allowable service on June 16, 1985, 2.6 percent, and for a former member with 20 or more years of allowable service on June 16, 1985, 2.6175 percent for each of the first 20 years of allowable service and, for each former member, one percent for each year of allowable service in excess of 20 years, but no more than 30 years, St. Louis Park fire department relief association;

(23) 1.9375 percent per year of allowable service for each of the first 20 years of allowable service, 2.25 percent per year of allowable service in excess of 20 years of allowable service but not more than 25 years of allowable service, and .5 percent per year of allowable service in excess of 25 years of allowable service, St. Paul fire department relief association;

(24) two percent per year of allowable service for each of the first 25 years of allowable service and .5 percent per year of allowable service in excess of 25 years of allowable service, St. Paul police relief association;

(25) 2.25 percent per year of allowable service for each of the first 20 years of allowable service and one percent per year of allowable service in excess of 20 years but not more than 25 years of allowable service and .5 percent per year of allowable service in excess of 25 years, Virginia fire department relief association;

(26) two percent per year of allowable service for each of the first 20 years of allowable service, one percent per year of allowable service in excess of 20 years but not more than 24 years of allowable service, three percent for the 25th year of allowable service and one percent per year of allowable service in excess of 25 years of allowable service but not more than 30 years of allowable service, West St. Paul firefighters relief association; and

(27) 2.333 percent for each of the first 20 years of allowable service, 1.333 percent for each year of allowable service in excess of 20 years but no more than 28 years, and .5 percent for each year of allowable service in excess of 25 years, Winona fire department relief association.

Sec. 2. Minnesota Statutes 1994, section 353B.08, subdivision 6, is amended to read:

Subd. 6. [DUTY DISABILITY BENEFIT AMOUNT.] (a) The duty disability benefit shall be an amount equal to the service pension amount to which the person would have been entitled if the person had credit for the greater of actual years of allowable service or 20 years of allowable service, had attained the minimum age for the receipt of a service

pension, and had applied for a service pension rather than a disability benefit for the former members of the following consolidating relief associations:

(1) Albert Lea firefighters relief association;

(2) Albert Lea police relief association;

(3) Anoka police relief association;

(4) Austin police relief association;

(5) Buhl police relief association;

(6) Chisholm police relief association;

(7) Duluth police relief association;

(8) Faribault fire department relief association;

(9) Mankato police benefit association;

(10) Minneapolis police relief association;

(11) New Ulm police relief association;

(12) Red Wing police relief association;

(13) St. Paul police relief association;

(14) South St. Paul police relief association; and

(15) Virginia police relief association.

(b) The duty disability benefit shall be an amount equal to 48 percent of the salary base for the former members of the following consolidating relief associations:

(1) Fridley police pension association;

(2) Richfield police relief association;

(3) Rochester fire department relief association;

(4) Rochester police relief association;

(5) St. Cloud fire department relief association;

(6) St. Cloud police relief association;

(7) St. Louis Park police relief association; and

(8) Winona police relief association.

(c) The duty disability benefit shall be an amount equal to 50 percent of the salary base for the former members of the following consolidating relief associations:

(1) Austin firefighters relief association;

(2) Crookston fire department relief association;

(3) Fairmont police benefit association;

(4) Mankato fire department relief association;

(5) Richfield fire department relief association;

(6) South St. Paul firefighters relief association; and

(7) (6) Virginia fire department relief association.

(d) The duty disability benefit shall be an amount equal to 45 percent of the salary base for the former members of the Crystal police relief association.

(e) The duty disability benefit shall be an amount equal to 40 percent of the salary base for the former members of the following consolidating relief associations:

(1) West St. Paul firefighters relief association; and

(2) West St. Paul police relief association.

(f) The duty disability benefit shall be the following for the former members of the consolidating relief associations as indicated:

(1) 52 percent of the salary base for former members who were disabled before January 31, 1994, and 48 percent of the salary base for former members who become disabled after January 31, 1994, Bloomington police relief association;

(2) 40 percent of the top salary for a patrol officer, Brainerd police relief association;

(3) $100 per month, Chisholm firefighters relief association;

(4) 37.5 percent of the salary base if the person has credit for less than ten years of allowable service, 43.75 percent of the salary base if the person has credit for more than nine years but less than 15 years of allowable service and 50 percent of the salary base if the person has credit for more than 14 years of allowable service credit, Columbia Heights fire department relief association, paid division;

(5) 43.75 percent of the salary base, Columbia Heights police relief association;

(6) 25 percent of the salary base if the person has credit for less than 12 years of allowable service and an additional amount equal to 2.5 percent of the salary base per year if allowable service for each year of allowable service in excess of 11 years of allowable service, not more than 50 percent, Crookston police relief association;

(7) 51.0625 percent of the salary base, Duluth firefighters relief association;

(8) 12.5 percent of the salary base if the person has credit for less than six years of allowable service, 2.5 percent of the salary base per year of allowable service if the person has more than five years of allowable service, but not more than 50 percent of the salary base, Faribault police benefit association;

(9) the dollar amount which equals the benefit which would be payable under chapter 176 for a comparable benefit which qualifies for a workers' compensation benefit for a first class disability, 75 percent of the amount payable in the event of a first class disability for a second class disability and 50 percent of the amount payable in the event of a first class disability for a third class disability, Hibbing firefighters relief association;

(10) $120 per month, Hibbing police relief association;

(11) 51.25 percent of the salary base for a first class disability, 41.25 percent of the salary base for a second class disability, and 31.25 percent of the salary base for a third class disability, Minneapolis fire department relief association;

(12) 40 percent of the salary base if the person has credit for less than 20 years of allowable service and two percent of the salary base per year of allowable service if the person has more than 19 years of allowable service, but not more than 50 percent, Red Wing fire department relief association;

(13) 54 percent of the salary base, Richfield fire department relief association;

(14) 50 percent of the salary base if the person has credit for less than 20 years of allowable service and an amount equal to the service pension amount to which the person would have been entitled based on the applicable amount of allowable service if the person had attained the minimum age for the receipt of a service pension and had applied for a service pension rather than a disability benefit and if the person has credit for at least 20 years of allowable service, St. Louis Park fire department relief association;

(14) (15) 50 percent of the salary base if the person is not able to perform the duties of any other gainful employment, 39.375 percent of the salary base if the person is only able to perform the duties of light manual labor or office employment and 33.75 percent of the salary base if the person is able to perform the duties of other manual labor, St. Paul fire department relief association; and

(15) (16) 42.667 percent of the salary base, Winona fire department relief association.

Sec. 3. Minnesota Statutes 1994, section 353B.11, subdivision 1, is amended to read:

Subdivision 1. [ELIGIBILITY; SURVIVING SPOUSE BENEFIT.] (a) Except as specified in paragraph (b), (c), (d), (e), (f), (g), or (f) (h), the person who survives a deceased active, deferred, or retired member, who was legally married to the member at the time of the death of the deceased member, who was legally married to the member for at least one year before the separation from active service if the deceased member was a deceased, deferred, or retired member and who was residing with the member at the time of the death of the deceased member shall be entitled to receive a surviving spouse benefit.

(b) The person who survives a deceased active, deferred, or retired member, who was legally married to the member at the time of the death of the deceased member, who was legally married to the member at the time of separation from active service if the deceased member was a deceased deferred or retired member and who was residing with the member at the time of the death of the member shall be entitled to receive a surviving spouse benefit in the case of former members of the following consolidating relief associations:

(1) Albert Lea police relief association;

(2) Anoka police relief association;

(3) Austin firefighters relief association;

(4) Austin police relief association;

(5) (4) Brainerd police benefit association;

(6) (5) Columbia Heights police relief association;

(7) (6) Crookston fire department relief association;

(8) (7) Crookston police relief association;

(9) (8) Fairmont police benefit association;

(10) (9) Faribault police benefit association;

(11) (10) Mankato fire department relief association;

(12) (11) Red Wing police relief association;

(13) (12) South St. Paul police relief association;

(14) (13) Virginia fire department relief association;

(15) (14) Virginia police relief association; and

(16) (15) West St. Paul police relief association.

(c) The person who survives a deceased active, deferred, or retired member, who was legally married to the member at the time of the death of the deceased member, and who was legally married to the member at the time of separation from active service if the deceased member was a deceased deferred or retired member shall be entitled to receive a surviving spouse benefit in the case of former members of the following consolidating relief associations:

(1) Chisholm police relief association;

(2) Hibbing police relief association;

(3) Mankato police benefit association; and

(4) New Ulm police relief association.

(d) The person who survives a deceased active, deferred, or retired member, who was legally married to the member at the time of the death of the deceased member, who was either legally married to the member at the time of separation from active service or legally married the member after the time of separation from active service and was married for at least three years before the date of death of the member if the deceased member was a deceased deferred or retired member, and who was residing with the member at the time of the death of the member is entitled to receive a surviving spouse benefit in the case of former members of the Austin firefighters relief association.

(e) The person who survives a deceased active, deferred, or retired member, who was legally married to the member at the time of the death of the deceased member, who was legally married to the member for at least five years before the separation from active service death if the deceased member was the recipient of a service pension or was entitled to a deferred service pension, and who was residing with the member at the time of the death of the deceased member in the case of former members of the Minneapolis fire department relief association.

(e) (f) The person who survives a deceased active, deferred, or retired member, who was legally married to the member at the time of the death of the deceased member, who was residing with the member at the time of the death of the decedent, and, if the deceased member was the recipient of a service pension or was entitled to a deferred service pension at the time of death, who was legally married to the member for at least five years before the member's death, in the case of former members of the Minneapolis police relief association.

(f) (g) The person who survives a deceased active, deferred, or retired member, who was legally married to the member at the time of the death of the deceased member, who was legally married to the member for at least three years before the separation from active service if the deceased member was a deceased, retired, or deferred member and who was residing with the member at the time of the death of the member shall be entitled to receive a surviving spouse benefit in the case of former members of the South St. Paul firefighters relief association.

(g) (h) The person who survives a deceased active, deferred, or retired member who was legally married to the member at the time of the death of the deceased member, who was legally married to the member for at least one year before the separation from active service if the deceased member was a deceased, deferred, or retired member and who had not deserted the member at the time of the death of the deceased member shall be entitled to receive a surviving spouse benefit in the case of former members of the St. Paul police relief association.

Sec. 4. Minnesota Statutes 1994, section 353B.11, subdivision 3, is amended to read:

Subd. 3. [AMOUNT; SURVIVING SPOUSE BENEFIT.] (a) The surviving spouse benefit shall be 30 percent of the salary base for the former members of the following consolidating relief associations:

(1) Albert Lea firefighters relief association;

(2) Albert Lea police relief association;

(3) Anoka police relief association;

(4) Austin firefighters relief association;

(5) Austin police relief association;

(6) (5) Brainerd police benefit association;

(7) (6) Crookston police relief association;

(8) (7) Faribault fire department relief association; and

(9) (8) West St. Paul firefighters relief association.

(b) The surviving spouse benefit shall be 25 percent of the salary base for the former members of the following consolidating relief associations:

(1) Chisholm police relief association;

(2) Duluth firefighters relief association;

(3) Duluth police pension association;

(4) Fairmont police benefit association;

(5) Red Wing fire department relief association;

(6) South St. Paul police relief association; and

(7) West St. Paul police relief association.

(c) The surviving spouse benefit shall be 24 percent of the salary base for the former members of the following consolidating relief associations:

(1) Fridley police pension association;

(2) Richfield police relief association;

(3) Rochester fire department relief association;

(4) Rochester police relief association;

(5) Winona fire department relief association; and

(6) Winona police relief association.

(d) The surviving spouse benefit shall be 40 percent of the salary base for the former members of the following consolidating relief associations:

(1) Columbia Heights fire department relief association, paid division; and

(2) New Ulm police relief association; and

(3) Richfield fire department relief association.

(e) The surviving spouse benefit shall be $250 per month for the former members of the following consolidating relief associations:

(1) Hibbing firefighters relief association; and

(2) Hibbing police relief association.

(f) The surviving spouse benefit shall be 23.75 percent of the salary base for the former members of the following consolidating relief associations:

(1) Crystal police relief associations; and

(2) Minneapolis police relief association.

(g) The surviving spouse benefit shall be 32 percent of the salary base for the former members of the following consolidating relief associations:

(1) St. Cloud fire department relief association; and

(2) St. Cloud police relief association.

(h) The surviving spouse benefit shall be one-half of the service pension or disability benefit which the deceased member was receiving as of the date of death, or of the service pension which the deferred member would have been receiving if the service pension had commenced as of the date of death or of the service pension which the active member would have received based on the greater of the allowable service credit of the person as of the date of death or 20 years of allowable service credit if the person would have been eligible as of the date of death, for the former members of the following consolidating relief associations:

(1) Virginia fire department relief association; and

(2) Virginia police relief association.

(i) The surviving spouse benefit shall be the following for the former members of the consolidating relief associations as indicated:

(1) 30 percent of the salary base, reduced by any amount awarded or payable from the service pension or disability benefit of the deceased former firefighter to a former spouse of the member by virtue of the legal dissolution of the member's marriage to the former spouse if the surviving spouse married the member after the time of separation from active service, Austin firefighters relief association;

(2) 27.333 percent of the salary base, or one-half of the service pension payable to or accrued by the deceased former member, whichever is greater, Bloomington police relief association;

(2) (3) 72.25 percent of the salary base, Buhl police relief association;

(3) (4) 50 percent of the service pension which the active member would have received based on allowable service credit to the date of death and prospective service from the date of death until the date on which the person would have attained the normal retirement age, 50 percent of the service pension which the deferred member would have been receiving if the service pension had commenced as of the date of death or $175 per month if the deceased member was receiving a service pension or disability benefit as of the date of death, Chisholm firefighters relief association;

(4) (5) two-thirds of the service pension or disability benefit which the deceased member was receiving as of the date of death, or of the service pension which the deferred member would have been receiving if the service pension had commenced as of the date of death or of the service pension which the active member would have received based on the greater of the allowable service credit of the person as of the date of death or 20 years of allowable service credit if the person would have been eligible as of the date of death, Columbia Heights police relief association;

(5) (6) the greater of $300 per month or one-half of the service pension or disability benefit which the deceased member was receiving as of the date of death, or of the service pension which the deferred member would have been receiving if the service pension had commenced as of the date of death or of the service pension which the active member would have received based on the allowable service credit of the person as of the date of death if the person would have been eligible as of the date of death, Crookston fire department relief association;

(6) (7) $100 per month, Faribault police benefit association;

(7) (8) 60 percent of the service pension or disability benefit which the deceased member was receiving as of the date of death, or of the service pension which the deferred member would have been receiving if the service pension had commenced as of the date of death or of the service pension which the active member would have received based on the allowable service credit of the person as of the date of death if the person would have been eligible as of the date of death, Mankato fire department relief association;

(8) (9) $175 per month, Mankato police benefit association;

(9) (10) 26.25 percent of the salary base, Minneapolis fire department relief association;

(10) (11) equal to the service pension or disability benefit which the deceased member was receiving as of the date of death, or of the service pension which the deferred member would have been receiving if the service pension had commenced as of the date of death or of the service pension which the active member would have received based on the allowable service credit of the person as of the date of death if the person would have been eligible as of the date of death, Red Wing police relief association;

(12) 43.2 percent of the salary base, Richfield fire department relief association;

(11) (13) 40 percent of the salary base for a surviving spouse of a deceased active member, disabled member, or retired or deferred member with at least 20 years of allowable service, or the prorated portion of 40 percent of the salary base that bears the same relationship to 40 percent that the deceased member's years of allowable service bear to 20 years of allowable service for the surviving spouse of a deceased retired or deferred member with at least ten but less than 20 years of allowable service, St. Louis Park fire department relief association;

(12) (14) 26.6667 percent of the salary base, St. Louis Park police relief association;

(13) (15) 27.5 percent of the salary base, St. Paul fire department relief association;

(14) (16) 20 percent of the salary base, St. Paul police relief association; and

(15) (17) 27 percent of the salary base, South St. Paul firefighters relief association.

Sec. 5. Minnesota Statutes 1994, section 353B.11, subdivision 4, is amended to read:

Subd. 4. [AMOUNT; SURVIVING CHILD BENEFIT.] (a) The surviving child benefit shall be eight percent of the salary base for the former members of the following consolidating relief associations:

(1) Fridley police pension association;

(2) Red Wing fire department relief association;

(3) Richfield police relief association;

(4) Rochester fire department relief association;

(5) Rochester police relief association;

(6) St. Cloud police relief association;

(7) St. Louis Park police relief association;

(8) South St. Paul firefighters relief association;

(9) Winona fire department relief association; and

(10) Winona police relief association.

(b) The surviving child benefit shall be $25 per month for the former members of the following consolidating relief associations:

(1) Anoka police relief association;

(2) Austin firefighters relief association;

(3) Austin police relief association;

(4) Faribault police benefit association;

(5) Hibbing firefighters relief association;

(6) Mankato police benefit association;

(7) South St. Paul police relief association; and

(8) Virginia fire department relief association.

(c) The surviving child benefit shall be ten percent of the salary base for the former members of the following consolidating relief associations:

(1) Albert Lea police relief association;

(2) Crookston police relief association;

(3) Duluth firefighters relief association;

(4) Duluth police pension association;

(5) Faribault fire department relief association; and

(6) Minneapolis fire department relief association.

(d) The surviving child benefit shall be five percent of the salary base for the former members of the following consolidating relief associations:

(1) Columbia Heights fire department relief association, paid division;

(2) St. Paul police relief association; and

(3) West St. Paul firefighters relief associations.

(e) The surviving child benefit shall be $15 per month for the former members of the following consolidating relief associations:

(1) Crookston fire department relief association;

(2) Hibbing police relief association; and

(3) West St. Paul police relief association.

(f) The surviving child benefit shall be 7.5 percent of the salary base for the former members of the following consolidating relief associations:

(1) Bloomington police relief association; and

(2) Crystal police relief association.

(g) The surviving child benefit shall be the following for the former members of the consolidating relief associations as indicated:

(1) ten percent of the salary base if a surviving spouse benefit is also payable, that amount between ten percent of the salary base and 50 percent of the salary base as determined by the executive director of the public employees retirement association, based on the financial circumstances and need of the surviving child or surviving children, applied in a uniform manner, reflective to the extent practicable or determinable to the past administrative practices of the board of the consolidating relief association before the effective date of the consolidation if there is a surviving spouse but no surviving spouse benefit is also payable on account of the remarriage of the surviving spouse, or 50 percent of the salary base, payable in equal shares for more than one surviving child, if there is no surviving spouse, Albert Lea firefighters relief association;

(2) four percent of the salary base, Brainerd police benefit association;

(3) $125 per month if a surviving spouse benefit is also payable or an amount equal to the surviving spouse benefit, payable in equal shares if there is more than one surviving child, if no surviving spouse benefit is payable, Buhl police relief association;

(4) $15 per month, Chisholm firefighters relief association;

(5) $125 per month, Chisholm police relief association;

(6) $50 per month, Columbia Heights police relief association;

(7) 6.25 percent of the salary base, Fairmont police benefit association;

(8) 12.5 percent of the service pension or disability benefit which the deceased member was receiving as of the date of death, or of the service pension which the deferred member would have been receiving if the service pension had commenced as of the date of death or of the service pension which the active member would have received based on the allowable service credit of the person as of the date of death if the person would have been eligible as of the date of death, Mankato fire department relief association;

(9) ten percent of the salary base if a surviving spouse benefit is also payable or an amount determined by the executive director of the public employees retirement association based on the financial circumstances and need of the surviving child or surviving children, applied in a uniform manner, and subject to the largest applicable amount surviving child benefit maximum if no surviving spouse benefit is also payable, Minneapolis police relief association;

(10) $25 per month if a surviving spouse benefit is also payable or an amount equal to the surviving spouse benefit, payable in equal shares if there is more than one surviving child, New Ulm police relief association;

(11) in an amount determined by the executive director of the public employees retirement association based on the financial circumstances and need of the surviving child or surviving children, applied in a uniform manner, reflective to the extent practicable or determinable to the past administrative practices of the board of the consolidating relief association before the effective date of the consolidation and not more than the largest surviving child benefit amount prescribed for any other actual or potential consolidating relief association as provided in this section, Red Wing police relief association;

(12) five 5.4 percent of the salary base if a surviving spouse benefit is also payable or 15 16.2 percent of the salary base if no surviving spouse benefit is payable, Richfield fire department relief association;

(13) 5.3334 percent of the salary base, St. Cloud fire department relief association;

(14) five percent of the salary base if a surviving spouse benefit is also payable or 15 percent of the salary base if no surviving spouse benefit is also payable for the surviving child or children of a deceased active member, disabled member, or retired or deferred member with at least 20 years of active service, or the prorated portion of five percent of the salary base if a surviving spouse benefit is also payable or 15 percent of the salary base if no surviving spouse benefit is also payable that bears the same relationship to five or 15 percent that the deceased member's years of allowable service bear to 20 years of allowable service for the surviving child or children of a deceased retired or deferred member with at least ten but less than 20 years of allowable service, St. Louis Park fire department relief association;

(15) ten percent of the salary base, St. Paul fire department relief association; and

(16) $50 per month, Virginia police relief association.

Sec. 6. Minnesota Statutes 1994, section 353B.11, subdivision 5, is amended to read:

Subd. 5. [SURVIVOR BENEFIT MAXIMUM.] (a) No surviving children or surviving family maximum shall be applicable to former members of the following consolidating relief associations:

(1) Buhl police relief association;

(2) Chisholm firefighters relief association;

(3) Chisholm police relief association;

(4) Hibbing firefighters relief association;

(5) Mankato police benefit association;

(6) New Ulm police relief association;

(7) Red Wing fire department relief association;

(8) Red Wing police relief association;

(9) St. Paul police relief association; and

(10) South St. Paul police relief association.

(b) The surviving children maximum shall be 24 percent of the salary base, if a surviving spouse benefit is also payable or 48 percent of the salary base, if no surviving spouse benefit is also payable, for the former members of the following consolidating relief associations:

(1) Fridley police pension association;

(2) Richfield police relief association;

(3) Rochester fire department relief association;

(4) Rochester police relief association;

(5) Winona fire department relief association; and

(6) Winona police relief association.

(c) The surviving family maximum shall be 50 percent of the salary base for the former members of the following consolidating relief associations:

(1) Anoka police relief association;

(2) Austin firefighters relief association;

(3) Austin police relief association;

(4) Duluth firefighters relief association; and

(5) Richfield fire department relief association; and

(6) St. Louis Park fire department relief association.

(d) The surviving family maximum shall be an amount equal to the service pension which a retiring member would have received based on 20 years of allowable service credit if the member had attained the age of at least 50 years in the case of an active member, or of the service pension which the deferred member would have been receiving if the service pension had commenced as of the date of death in the case of a deferred member, or of the service pension or disability benefit which the deceased member was receiving as of the date of death, for the former members of the following consolidating relief associations:

(1) Columbia Heights police relief association;

(2) Virginia fire department relief association; and

(3) Virginia police relief association.

(e) The surviving children maximum shall be 25 percent of the salary base, if a surviving spouse benefit is also payable or 50 percent of the salary base, if no surviving spouse benefit is also payable, for the former members of the following consolidating relief associations:

(1) Duluth police pension association; and

(2) Fairmont police benefit association.

(f) The surviving children maximum shall be 22.5 percent of the salary base, if a surviving spouse benefit is also payable or 45 percent of the salary base, if no surviving spouse benefit is also payable, for the former members of the Crystal police relief association.

(g) The surviving children maximum shall be 16 percent of the salary base, if a surviving spouse benefit is also payable or 48 percent of the salary base, if no surviving spouse benefit is also payable, for the former members of the following consolidating relief associations:

(1) St. Cloud fire department relief association; and

(2) St. Cloud police relief association.

(h) The surviving children maximum shall be 20 percent of the salary base, if a surviving spouse benefit is also payable or 50 percent of the salary base, if no surviving spouse benefit is also payable, for the former members of the following consolidating relief associations:

(1) Albert Lea firefighters relief association;

(2) Albert Lea police relief association; and

(3) Faribault fire department relief association.

(i) The surviving family maximum shall be the following for the former members of the consolidating relief associations:

(1) 60 percent of the salary base, Bloomington police relief association;

(2) $450 per month, Crookston police relief association;

(3) 80 percent of the service pension or disability benefit which the deceased member was receiving as of the date of death, or of the service pension which the deferred member would have been receiving if the service pension had commenced as of the date of death or of the service pension which the active member would have received based on the greater of the allowable service credit of the person as of the date of death or 20 years of allowable service credit if the person would have been eligible as of the date of death, Mankato fire department relief association; and

(4) 54 percent of the salary base, Richfield fire department relief association; and

(5) 57.5 percent of the salary base, St. Paul fire department relief association.

(j) The surviving child maximum shall be the following for the former members of the consolidating relief associations:

(1) 20 percent of the top salary payable to a patrol officer, Brainerd police benefit association;

(2) ten percent of the salary base, if a surviving spouse benefit is also payable or 15 percent of the salary base, if no surviving spouse benefit is also payable, Columbia Heights fire department relief association, paid division;

(3) $105 per month if a surviving spouse benefit is also payable or $90 per month if no surviving spouse benefit is also payable, Crookston fire department relief association;

(4) $125 per month, Faribault police benefit association;

(5) $30 per month if a surviving spouse benefit is also payable or $180 per month if no surviving spouse benefit is also payable, Hibbing police relief association;

(6) 25 percent of the salary base, if a surviving spouse benefit is also payable or 51.25 percent of the salary base, if no surviving spouse benefit is also payable, Minneapolis fire department relief association;

(7) 17.5 percent of the salary base, if a surviving spouse benefit is also payable or 50 percent of the salary base, if no surviving spouse benefit is also payable, Minneapolis police relief association;

(8) 24 percent of the salary base, St. Louis Park police relief association;

(9) 23 percent of the salary base, if a surviving spouse benefit is also payable or 50 percent of the salary base, if no surviving spouse benefit is also payable, South St. Paul firefighters relief association;

(10) ten percent of the salary base, West St. Paul firefighters relief association; and

(11) $30 per month if a surviving spouse benefit is also payable or $75 per month if no surviving spouse benefit is also payable, West St. Paul police relief association.

Sec. 7. Minnesota Statutes 1994, section 353B.13, is amended to read:

353B.13 [OTHER BENEFIT COVERAGE.]

(a) A person who is a former member of the Austin firefighters relief association who receives a service pension or a disability pension from the relief association and who is under age 65 or who is not yet eligible for the receipt of federal Medicare benefits, whichever occurs first, and the person's spouse, if the spouse would be eligible for a surviving spouse benefit upon the death of the pension recipient, is entitled to receive a health or medical insurance premium benefit in an amount equal to the amount that the city of Austin would pay under the applicable collective bargaining agreement for medical or health insurance coverage for a firefighter who is employed by the city, who has a spouse and who has no other dependents, payable monthly, in addition to any other pension amount received by the eligible pension recipient, and not subject to any postretirement adjustments applicable to service pensions or disability pensions.

(b) A person who is a former member of the New Ulm police relief association, who retired from the New Ulm police department after October 15, 1985, and who is receiving a service pension after the effective date of consolidation as provided in section 353A.06, shall be entitled to receive a supplemental benefit of $80 per month for each month following the date of retirement until the last day of the month in which the person attains the age of 65 years.

(b) (c) The payment of the premiums for medical and dental insurance coverage and the payment of a lump sum amount at retirement for former members of the St. Cloud fire department relief association and the payment of the premiums for medical insurance coverage and the payment of a lump sum amount at retirement for former members of the St. Cloud police relief association as provided for in the governing benefit plan documents shall be considered to be special benefit coverage governed by section 353A.08, subdivision 6.

(c) (d) A person who is a former member of the St. Paul fire department relief association who is unable to perform normally assigned fire department service due to a medically determinable physical or mental illness or injury and who is removed from the fire department payroll, upon application, until recovery, or for a period of 90 days or for a period of 150 days upon a showing of need and a medical report indicating a reasonable prognosis for recovery due to the extended period, whichever occurs first, shall be entitled to a sick relief benefit for each day of that inability, payable monthly, in an amount of 1.5625 percent of the salary base per day.

Sec. 8. [EFFECTIVE DATE.]

Subdivision 1. [AUSTIN FIRE.] Sections 3 and 4 with respect to the Austin fire department relief association and section 7 are effective on the effective date of article 2, section 4.

Subd. 2. [MINNEAPOLIS FIRE.] Section 3 with respect to the Minneapolis fire department relief association is effective on the effective date of article 3, section 1.

Subd. 3. [RICHFIELD FIRE.] Sections 1, 2, 5, and 6 and section 4 with respect to the Richfield firefighters relief association are effective on the effective date of article 2, sections 1, 2, and 5.

Section 1. [CONSOLIDATED NORWOOD-YOUNG AMERICA VOLUNTEER FIREFIGHTERS RELIEF ASSOCIATION.]

Subdivision 1. [COMBINATION.] The cities of Norwood and Young America in Carver county have conducted the necessary proceedings to combine as one municipality to be known as Norwood-Young America effective January 1, 1997, pursuant to Minnesota Statutes, sections 465.81 to 465.87.

Subd. 2. [CREATION.] The Norwood volunteer firefighters relief association and the Young America volunteer firefighters relief association are consolidated into a single volunteer firefighters relief association in the manner provided by this chapter. The consolidated volunteer firefighters relief association is to be governed by this chapter and the applicable provisions of Minnesota Statutes, chapters 69, 317A, 356, 356A, and 424A.

Subd. 3. [CONSOLIDATED VOLUNTEER FIREFIGHTERS RELIEF ASSOCIATION.] The consolidated volunteer firefighters relief association must be incorporated under Minnesota Statutes, chapter 317A. The incorporators of the consolidated relief association must include at least one board member of the former Norwood volunteer firefighters relief association and at least one board member of the former Young America volunteer firefighters relief association. The consolidated relief association must be incorporated no later than February 1, 1997.

Sec. 2. [GOVERNANCE OF CONSOLIDATED VOLUNTEER FIREFIGHTERS RELIEF ASSOCIATION.]

Subdivision 1. [BOARD OF TRUSTEES.] The consolidated volunteer firefighters relief association is governed by a board of trustees as provided in Minnesota Statutes, section 424A.04, subdivision 1.

Subd. 2. [COMPOSITION OF BOARD.] The board must have three officers, including a president, a secretary, and a treasurer. The membership of the consolidated volunteer firefighters relief association must elect the three officers from the board members. A board of trustees member may not hold more than one officer position at the same time.

Subd. 3. [BOARD ADMINISTRATION.] The board of trustees must administer the affairs of the relief association consistent with this chapter and the applicable provisions of Minnesota Statutes, chapters 69, 356A, and 424A.

Sec. 3. [SPECIAL AND GENERAL FUNDS.]

The consolidated volunteer firefighters relief association must establish and maintain a special fund and a general fund. The special fund must be established and maintained as provided in Minnesota Statutes, section 424A.05. The general fund must be established and maintained as provided in Minnesota Statutes, section 424A.06.

Sec. 4. [EFFECTIVE DATE OF CONSOLIDATION; TRANSFERS.]

The first business day occurring 30 days after the incorporation of the consolidated volunteer firefighters relief association under section 1 is the effective date of consolidation. On the effective date of consolidation, the administration, records, assets, and liabilities of the prior Norwood volunteer firefighters relief association and the prior Young America volunteer firefighters relief association are transferred to the consolidated volunteer firefighters relief association. On the effective date of consolidation, the Norwood volunteer firefighters relief association and the Young America volunteer firefighters relief association cease to exist as legal entities, except for the purposes of winding up association affairs as provided by this chapter.

Sec. 5. [TRANSFER OF ADMINISTRATION.]

On the effective date of consolidation, the administration of the prior relief associations is transferred to the board of trustees of the consolidated volunteer firefighters relief association.

Sec. 6. [TRANSFER OF RECORDS.]

On the effective date of consolidation, the secretary and the treasurer of the Norwood volunteer firefighters relief association and the secretary and treasurer of the Young America volunteer firefighters relief association shall transfer all records and documents relating to the prior relief associations to the secretary and treasurer of the consolidated volunteer firefighters relief association.

Sec. 7. [TRANSFER OF SPECIAL FUND ASSETS AND LIABILITIES.]

(a) On the effective date of consolidation, the secretary and the treasurer of the Norwood volunteer firefighters relief association and the secretary and treasurer of the Young America volunteer firefighters relief association shall transfer the assets of the special fund of the applicable relief association to the special fund of the consolidated relief association. Unless the appropriate secretary and treasurer decide otherwise, the assets may be transferred as investment securities rather than cash. The transfer must include any accounts receivable. The appropriate secretary must settle any accounts payable from the special fund of the relief association before the effective date of consolidation.

(b) Upon the transfer of the assets of the special fund of a prior relief association, the pension liabilities of that special fund become the obligation of the special fund of the consolidated volunteer firefighters relief association.

(c) Upon the transfer of the prior relief association special fund assets, the board of trustees of the consolidated volunteer firefighters relief association has legal title to and management responsibility for the transferred assets as trustees for persons having a beneficial interest in those assets arising out of the benefit coverage provided by the prior relief association.

(d) The consolidated volunteer firefighters relief association is the successor in interest in all claims for and against the special funds of the prior Norwood volunteer firefighters relief association and the prior Young America volunteer firefighters relief association, or the cities of Norwood and Young America, with respect to the special funds of the prior relief associations. The status of successor in interest does not apply to any claim against a prior relief association, the city in which that relief association is located, or any person connected with the prior relief association or the city, based on any act or acts that were not done in good faith and that constituted a breach of fiduciary responsibility under common law or Minnesota Statutes, chapter 356A.

Sec. 8. [DISSOLUTION OF PRIOR GENERAL FUND BALANCES.]

Prior to the effective date of consolidation, the secretary of the Norwood volunteer firefighters relief association and the secretary of the Young America volunteer firefighters relief association shall settle any accounts payable from the respective general fund or any other relief association fund in addition to the relief association special fund. Investments held by a fund of the prior relief associations in addition to the special fund must be liquidated before the effective date of consolidation as the bylaws of the relief association provide. Prior to the effective date of consolidation, the respective relief associations must pay all applicable general fund expenses from their respective general funds. Any balance remaining in the general fund or in a fund other than the relief association special fund as of the effective date of consolidation must be paid to the new general fund of the consolidated volunteer relief association.

Sec. 9. [TERMINATION OF PRIOR RELIEF ASSOCIATIONS.]

Following the transfer of administration, records, special fund assets, and special fund liabilities from the prior relief associations to the consolidated volunteer firefighters relief association, the Norwood volunteer firefighters relief association and the Young America volunteer firefighters relief association cease to exist as legal entities for any purpose. The city clerk of the city of Norwood-Young America shall notify the following governmental officials of the termination of the respective volunteer firefighters relief associations and of the establishment of the consolidated volunteer firefighters relief association:

(1) Minnesota secretary of state;

(2) Minnesota state auditor;

(3) Minnesota commissioner of revenue; and

(4) commissioner of the federal Internal Revenue Service.

Sec. 10. [ADMINISTRATIVE EXPENSES.]

The payment of authorized administrative expenses of the consolidated volunteer firefighters relief association must be from the special fund of the consolidated volunteer firefighters relief association in accordance with Minnesota Statutes, section 69.80, and as provided for in the bylaws of the consolidated volunteer firefighters relief association

and approved by the board of trustees or the consolidated volunteer firefighters relief association. The payment of any other expenses of the consolidated volunteer firefighters relief association must be from the general fund of the consolidated volunteer firefighters relief association in accordance with Minnesota Statutes, section 69.80, and as provided for in the bylaws of the consolidated volunteer firefighters relief association and approved by the board of trustees of the consolidated volunteer firefighters relief association.

Sec. 11. [VALIDATION OF CURRENT BENEFIT PLANS AND PRIOR ACTIONS.]

Notwithstanding any other law, the benefit plans of the Norwood volunteer firefighters relief association and the Young America volunteer firefighters relief association, as reflected in each association's articles of incorporation and bylaws as of December 31, 1995, are ratified and validated. Acts previously taken by the Norwood volunteer firefighters relief association and the Young America volunteer firefighters relief association in association with those ratified by articles of incorporation are also ratified and validated.

Sec. 12. [BENEFITS; FUNDING.]

After the effective date of consolidation, the service pension for a member of the consolidated firefighters relief association is $550 for each year of past service credited by either the Norwood volunteer firefighters relief association or the Young America volunteer firefighters relief association. Future service credited by the consolidated firefighters relief association is payable in a lump sum and is to be so provided in the bylaws of the consolidated volunteer firefighters relief association. The service pension may be subsequently changed by appropriate amendment to the bylaws approved by the board of trustees and the city council of the city of Norwood-Young America under Minnesota Statutes, sections 69.772, subdivision 6, and 424A.02, subdivisions 1 and 2. In its budget and tax levy for the year 1997, the city of Norwood-Young America must provide that funds will be transferred to the special fund of the consolidated volunteer firefighters relief association to fully fund the actuarial accrued liability of the special fund as determined under Minnesota Statutes, section 69.772, subdivisions 2 and 2a. Subsequent budgets and tax levies must comply with Minnesota Statutes, section 69.772, subdivisions 3 and 4.

Sec. 13. [EFFECTIVE DATE.]

Sections 1 to 12 are effective the day following approval by the city council of the city of Norwood and approval by the city council of the city of Young America and compliance with Minnesota Statutes, section 645.021."

Delete the title and insert:

"A bill for an act relating to retirement; modifying provisions of various local pension plans; making miscellaneous benefit and administrative changes; amending Minnesota Statutes 1994, sections 353B.07, subdivision 3; 353B.08, subdivision 6; 353B.11, subdivisions 1, 3, 4, and 5; and 353B.13; Laws 1965, chapter 519, section 1, as amended; Laws 1967, chapter 798, sections 2 and 4; Laws 1992, chapter 563, section 5; Laws 1994, chapter 490, section 2; and Laws 1995, chapter 262, article 7, section 1."

With the recommendation that when so amended the bill pass.

The report was adopted.

Jaros from the Committee on International Trade and Economic Development to which was referred:

H. F. No. 2562, A bill for an act relating to economic development; requiring private businesses with state financial assistance to pay at least a poverty level wage and increase employment; proposing coding for new law in Minnesota Statutes, chapter 177.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. [177.255] [STATE ASSISTANCE; EMPLOYMENT; POVERTY LEVEL WAGE.]

Subdivision 1. [APPLICATION.] (a) This section applies to a for profit corporation, nonprofit corporation if the ratio of total compensation of the corporation's chief executive officer to its lowest paid employee exceeds 25 to 1,

partnership, limited liability company, or sole proprietorship that does not meet the definition of a small business in section 645.445 and that receives state or local assistance in the form of a grant, loan, or tax increment financing, if:

(1) the sum of all three types of assistance exceeds $25,000 in a fiscal year; and

(2) the purpose of the assistance is economic development or job growth.

(b) The assistance recipient must pay every employee hired as a result of the assistance at least a poverty level wage. For purposes of this section, "poverty level wage" means the hourly wage, including the employer's share of any health or dental coverage, necessary for an employee working 40 hours a week, 52 weeks a year, to earn an annual wage equal to 100 percent of the federal poverty level for a family of four.

If the assistance recipient fails to pay a poverty level wage the recipient shall pay the local human service agency an amount equal to two times the difference between the poverty level wage and the wage actually paid.

Subd. 2. [ON-THE-JOB TRAINING EXEMPTION.] (a) The requirement to pay at least a poverty level wage under subdivision 1 does not apply to an employee engaged in on-the-job training. For purposes of this section, "on-the-job training" means:

(1) an apprenticeship program for an apprentice defined by section 178.06;

(2) a preapprenticeship program that assists learners to explore occupational areas and assess their skills and interests in those areas, and acquire knowledge and skills necessary to succeed in youth apprenticeship programs; or

(3) a training program, not to exceed six months, that is offered to an individual while employed in productive work that provides training, technical and other related skills, and personal skills that are essential to the full and adequate performance of the employment.

(b) An employer must pay at least a poverty level wage to an employee who would otherwise be exempt under paragraph (a), if:

(1) any other individual has been laid off by the employer from the position to be filled by the eligible employee or from any substantially equivalent position; or

(2) the employer has terminated the employment of any regular employee or otherwise reduced the number of employees with the intention of replacing the employee by hiring an employee who is not required to receive at least a poverty level wage.

Subd. 3. [APPLICATION FOR ON-THE-JOB TRAINING EXEMPTION.] An employer seeking exemption under subdivision 2 must:

(1) notify the commissioner of labor and industry. The commissioner must certify that the on-the-job training program meets the criteria stated in subdivision 2; and

(2) describe the program in writing, retain a copy of the program, and provide a copy of the program to the commissioner of labor and industry and to the employee.

Subd. 4. [BONA FIDE FOREIGN STATE OFFER; EXEMPTION.] This section does not apply if the chief executive officer of the assistance recipient certifies to the entity providing the assistance that but for the assistance the recipient would have relocated in another state due to an offer of assistance of the other state. The chief executive officer must provide details of the offer with the certification.

Subd. 5. [ASSISTANCE EXEMPTION.] This section does not apply to the following types of assistance:

(1) tax increment financing for redevelopment activities, including assistance financed with increments (i) from districts defined as redevelopment districts or renewal and renovation districts under section 469.174, subdivision 10 or 10a, or (ii) from another type of district used to pay for redevelopment activities as defined in section 469.176, subdivision 4j;

(2) tax increment assistance financed by districts defined as housing districts under section 469.174, subdivision 11;

(3) tax increment assistance financed by districts created as hazardous substance subdistricts under section 469.175;

(4) grant and loan assistance for the removal or remediation of a hazardous substance, hazardous waste, pollutant, or contaminant, including human waste, as defined by section 115B.02;

(5) loan or loan guarantee assistance from the tourism loan program under section 116J.617; and

(6) grant assistance from contamination cleanup grants under section 116J.552.

Subd. 6. [EMPLOYEE EXEMPTION.] This section does not apply to an employee who is a blind or disabled eligible individual as that term is defined in United States Code, title 42, section 1382, paragraph (a).

Sec. 2. [LEGISLATIVE AUDITOR; POVERTY AND CHOICES FOR ECONOMIC DEVELOPMENT.]

The legislative audit commission is requested to direct the legislative auditor to examine the cost of low paying jobs in Minnesota. The study shall consist of two parts. The first part is to estimate the cost of government transfer payments for families with income below the federal poverty threshold. To the extent possible, the study shall separate transfer payments by program, family type, and region. The second part shall examine the role of state government in increasing wages to a livable level.

Sec. 3. [EFFECTIVE DATE; APPLICABILITY.]

Section 1 applies to grant, loan, and tax increment financing authorized on or after August 1, 1996."

Amend the title as follows:

Page 1, line 2, delete "private" and insert "some"

Page 1, line 3, after "state" insert "or local"

Page 1, line 4, delete "and increase employment"

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.

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

H. F. No. 2565, A bill for an act relating to private business, trade, and correspondence schools; setting forth public policy; modifying licensing standards; clarifying miscellaneous provisions; repealing obsolete provisions; amending Minnesota Statutes 1994, sections 141.21, subdivisions 3, 5, 6, and by adding a subdivision; 141.22; 141.23; 141.25, subdivisions 1, 2, 3, 5, 6, 7, 9, 9a, 10, and 12; 141.26, subdivisions 1, 2, 3, and 5; 141.271, subdivisions 2, 3, 4, 5, 6, and 12; 141.28, subdivisions 2, 3, and 5; 141.29; 141.30; 141.31; and 141.35; Minnesota Statutes 1995 Supplement, section 141.25, subdivision 8; repealing Minnesota Statutes 1994, sections 141.33; 141.34; and 141.36.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 1995 Supplement, section 136A.685, is amended to read:

136A.685 [PRIVATE INSTITUTIONS; ADJUDICATION OF FRAUD OR MISREPRESENTATION.]

The office shall not provide registration or degree or name approval to a school if there has been a criminal or, civil, or administrative adjudication of fraud or misrepresentation in Minnesota or in another state or jurisdiction against

the school or its owner, officers, agents, or sponsoring organization. Such an adjudication of fraud or misrepresentation shall be sufficient cause for the office to determine that a school:

(1) does not qualify for exemption under section 136A.657; or

(2) is not approved to grant degrees or to use the term "academy," "institute," or "university" in its name.

Sec. 2. Minnesota Statutes 1994, section 141.25, subdivision 7, is amended to read:

Subd. 7. [MINIMUM STANDARDS.] No license shall be issued unless the board first determines:

(a) that the applicant has a sound financial condition with sufficient resources available to meet the school's financial obligations; to refund all tuition and other charges, within a reasonable period of time, in the event of dissolution of the school or in the event of any justifiable claims for refund against the school by the student body; to provide adequate service to its students and prospective students; and for the proper use and support of the school to be maintained;

(b) that the applicant has satisfactory training facilities with sufficient tools and equipment and the necessary number of work stations to train adequately the students currently enrolled, and those proposed to be enrolled;

(c) that the applicant employs a sufficient number of qualified instructors trained by experience and education to give the training contemplated;

(d) that the premises and conditions under which the students work and study are sanitary, healthful, and safe, according to modern standards;

(e) that each occupational course or program of instruction or study shall be of such quality and content as to provide education and training which will adequately prepare enrolled students for entry level positions in the occupation for which trained;

(f) that the living quarters which are owned, maintained, or approved by the applicant for students are sanitary and safe;

(g) that the contract or enrollment agreement used by the school complies with the following provisions:

(1) the name and address of the school must be clearly stated;

(2) inclusion of a clear and conspicuous disclosure that such agreement becomes a legally binding instrument upon written acceptance of the student by the school unless canceled pursuant to section 141.271;

(3) must contain the school's cancellation and refund policy which shall be clearly and conspicuously entitled, "Buyer's Right to Cancel";

(4) the total cost of the course including tuition and all other charges shall be clearly stated;

(5) the name and description of the course, including the number of hours or credits of classroom instruction and/or home study lessons shall be included;

(6) no contract or agreement shall contain a wage assignment provision and/or a confession of judgment clause;

(7) each contract or enrollment agreement shall contain a clear and conspicuous explanation of the form and means of notice the student should use in the event the student elects to cancel the contract or sale, the effective date of cancellation, and the name and address of the seller to which the notice should be sent or delivered; and

(h) that there has been no adjudication of fraud or misrepresentation in any criminal, civil, or administrative proceeding in any jurisdiction against the school or its owner, officers, agents, or sponsoring organization.

Sec. 3. Minnesota Statutes 1994, section 141.26, subdivision 5, is amended to read:

Subd. 5. [FEE.] The initial and renewal application for each permit shall be accompanied by a nonrefundable fee of $250 as established by the office.

Sec. 4. Minnesota Statutes 1994, section 141.271, subdivision 4, is amended to read:

Subd. 4. [RESIDENT SCHOOLS.] With respect to all schools offering a resident course of instruction, when a student has been accepted by the school and gives written notice of cancellation after the start of the course of instruction period of instruction for which the student has been charged, but before completion of 75 percent of the course of instruction period of instruction for which the student has been charged, the amount charged for tuition, fees and all other charges for the completed portion of the course period of instruction for which the student has been charged shall not exceed the pro rata portion of the total charges for tuition, fees and all other charges that the length of the completed portion of the course period of instruction for which the student has been charged bears to its total length, plus 25 percent of the total cost of the course period of instruction for which the student has been charged but not to exceed $100. After completion of 75 percent of the course of instruction period of instruction for which the student has been charged, no refunds are required.

Sec. 5. Minnesota Statutes 1994, section 141.29, subdivision 3, is amended to read:

Subd. 3. [POWERS AND DUTIES.] The board office shall have (in addition to the powers and duties now vested therein by law) the following powers and duties:

(a) To negotiate and enter into interstate reciprocity agreements with similar agencies in other states, if in the judgment of the board office such agreements are or will be helpful in effectuating the purposes of Laws 1973, Chapter 714;

(b) To grant conditional school license for periods of less than one year if in the judgment of the board office correctable deficiencies exist at the time of application and when refusal to issue school license would adversely affect currently enrolled students;

(c) The board office may upon the board's its own motion, and shall upon the verified complaint in writing of any person setting forth fact which, if proved, would constitute grounds for refusal or revocation under Laws 1973, Chapter 714, investigate the actions of any applicant or any person or persons holding or claiming to hold a license or permit. However, before proceeding to a hearing on the question of whether a license or permit shall be refused, revoked or suspended for any cause enumerated in subdivision 1, the board office may grant a reasonable time to the holder of or applicant for a license or permit to correct the situation. If within such time the situation is corrected and the school is in compliance with the provisions of this chapter, no further action leading to refusal, revocation, or suspension shall be taken.

Sec. 6. [MORATORIUM.]

Notwithstanding any law to the contrary, until June 30, 1997, an educational institution that was licensed under Minnesota Statutes, chapter 141, on December 31, 1995, must continue to comply with the provisions of that chapter and may not use any of the exemptions available under Minnesota Statutes, section 141.35."

Delete the title and insert:

"A bill for an act relating to private business, trade, and correspondence schools; modifying licensing standards; clarifying miscellaneous provisions; amending Minnesota Statutes 1994, sections 141.25, subdivision 7; 141.26, subdivision 5; 141.271, subdivision 4; and 141.29, subdivision 3; Minnesota Statutes 1995 Supplement, section 136A.685."

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. 2577, A bill for an act relating to transportation; providing for a rebate of certain vehicle registration fees; amending Minnesota Statutes 1994, section 168.017, 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 168.15, is amended to read:

168.15 [RIGHTS AS TO REGISTRATION CERTIFICATES AND NUMBER PLATES.]

Subdivision 1. [TRANSFER OF OWNERSHIP.] Except as provided in subdivision 3, upon the transfer of ownership, destruction, theft, dismantling as such, or the permanent removal by the owner thereof from this state of any motor vehicle registered in accordance with the provisions of this chapter, the right of the owner of such vehicle to use the registration certificate and number plates assigned such vehicle shall expire, and such certificate and any existing plates shall be, by such owner, forthwith returned, with transportation prepaid, to the registrar with a signed notice of the date and manner of termination of ownership, giving the name and post office address, with street and number, if in a city, of the person to whom transferred. No fee may be charged for a return of plates under this section. When the ownership of a motor vehicle shall be transferred to another who shall forthwith register the same in the other's name, the registrar may permit the manual delivery of such plates to the new owner of such vehicle. When seeking to become the owner by gift, trade, or purchase of any vehicle for which a registration certificate has been theretofore issued under the provisions of this chapter, a person shall join with the registered owner in transmitting with the application the registration certificate, with the assignment and notice of sale duly executed upon the reverse side thereof, or, in case of loss of such certificate, with such proof of loss by sworn statement, in writing, as shall be satisfactory to the registrar. Upon the transfer of any motor vehicle by a manufacturer or dealer, for use within the state, whether by sale, lease, or otherwise, such manufacturer or dealer shall, within seven days after such transfer, file with the registrar a notice or report containing the date of such transfer, a description of such motor vehicles, and the name, street and number of residence, if in a city, and the post office address of the transferee, and shall transmit therewith the transferee's application for registration thereof.

Subd. 2. [TRANSFER OF ENGINE.] Upon the transfer of any automobile engine or motor, except a new engine or motor, transferred with intent that the same be installed in a new automobile, and whether such transfer be made by a manufacturer or dealer, or otherwise, and whether by sale, lease or otherwise, the transferor shall, within two days after such transfer, file with the registrar a notice or report containing the date of such transfer and a description, together with the maker's number of the engine or motor, and the name and post office address of the purchaser, lessee, or other transferee.

Subd. 3. [VEHICLES OF LESSORS; TRANSFERS.] Notwithstanding subdivision 1, a motor vehicle lessor licensed under section 168.27, subdivision 2, 3, or 4 may transfer license plates issued to one rental motor vehicle owned by the lessor to another rental motor vehicle owned by the lessor, if within ten days of the transfer the lessor registers the vehicle to which the license plates were transferred. Upon such registration the lessor must pay all taxes and fees due on the registration of the vehicle to which the license plates were transferred, plus a transfer fee of $5. The fee must be deposited in the highway user tax distribution fund. For purposes of this subdivision "rental motor vehicle" means a vehicle used for rentals or leases of 30 days or less.

Sec. 2. Minnesota Statutes 1995 Supplement, section 168.16, is amended to read:

168.16 [REFUNDS; APPROPRIATION.]

After the tax upon any motor vehicle shall have been paid for any year, refund shall be made for errors made in computing the tax or fees and for the error on the part of an owner who may in error have registered a motor vehicle that was not before, nor at the time of registration, nor at any time thereafter during the current past year, subject to tax in this state as provided by section 168.012. Unless otherwise provided in this chapter, a claim for a refund of an overpayment of registration tax must be filed within 3-1/2 years from the date of payment. The refundment shall be made from any fund in possession of the registrar and shall be deducted from the registrar's monthly report to the commissioner of finance. A detailed report of the refundment shall accompany the report. The former owner of a transferred vehicle by an assignment in writing endorsed upon the registration certificate and delivered to the registrar within the time provided herein may sell and assign to the new owner thereof the right to have the tax paid by the former owner accredited to the owner who duly registers the vehicle. Any owner at the time of such occurrence, whose vehicle shall be is permanently destroyed, or sold to the federal government, the state, or political subdivision thereof, and any owner who sells a rental motor vehicle and transfers the license plates issued to that motor vehicle under section 168.15, subdivision 3, shall upon filing a verified claim be entitled to a refund of the unused portion of the tax paid upon the vehicle, computed as follows:

(1) if the vehicle is registered under the calendar year system of registration, the refund is computed pro rata by the month, 1/12 of the annual tax paid for each month of the year remaining after the month in which the plates and certificate were returned to the registrar;

(2) in the case of a vehicle registered under the monthly series system of registration, the amount of the refund is equal to the sum of the amounts of the license fee attributable to those months remaining in the licensing period after the month in which the plates and certificate were returned to the registrar.

There is hereby appropriated to the persons entitled to a refund, from the fund or account in the state treasury to which the money was credited, an amount sufficient to make the refund and payment. Refunds under this section to licensed motor vehicle lessors must be made annually in a manner the registrar determines."

Delete the title and insert:

"A bill for an act relating to motor vehicles; establishing procedure for lessor to transfer license plates between rental vehicles; amending Minnesota Statutes 1994, section 168.15; Minnesota Statutes 1995 Supplement, section 168.16."

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.

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

H. F. No. 2580, A bill for an act relating to game and fish; modifying restrictions for nonresident fish houses; amending Minnesota Statutes 1994, section 97C.355, subdivision 6.

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

The report was adopted.

Osthoff from the Committee on Financial Institutions and Insurance to which was referred:

H. F. No. 2588, A bill for an act relating to insurance; providing a process for resolving state claims for certain landfill cleanup costs and associated damages with insurers; authorizing a direct action by the state for recovery from insurers after a reasonable opportunity for settlement; appropriating money; proposing coding for new law in Minnesota Statutes, chapter 115B; repealing Minnesota Statutes 1994, section 115B.46; Minnesota Statutes 1995 Supplement, section 115B.45.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. [115B.441] [INSURANCE CLAIMS SETTLEMENT AND RECOVERY PROCESS; FINDINGS AND PURPOSE.]

(a) The legislature finds that:

(1) insurers have issued certain insurance policies to their policyholders providing coverage for environmental response costs related to qualified facilities for which their policyholders bear legal responsibility;

(2) because the commissioner is required by law to take over responsibility for environmental response actions relating to all qualified facilities, any rights to coverage based upon the insurers' contractual obligations to their policyholders to pay environmental response costs which are assumed by the state related to these facilities are rights that should fairly accrue to the state; and

(3) the resolution of these insurance coverage rights should provide a fair share of the cost to the state of taking over these environmental responsibilities consistent with the insurers' coverage obligations to their policyholders.

(b) The purposes of sections 115B.441 to 115B.445 are:

(1) to provide the means for the state and insurers to resolve claims of the state for environmental response costs and other damages related to qualified facilities that may be covered by insurance policies of persons who bear legal responsibility for those costs and damages; and

(2) to create a fair and efficient settlement process that provides insurers with an opportunity to settle claims based upon a reasonable approximation of the insurers' potential coverage exposure and a fair opportunity for the state to recover claims by legal action from nonsettling insurers.

Sec. 2. [115B.442] [SETTLEMENT PROCESS; INFORMATION GATHERING.]

Subdivision 1. [SELECTION OF QUALIFIED FACILITIES.] The commissioner and the attorney general shall select qualified facilities for which they intend to make offers of settlement to insurers under section 115B.443. The first group of qualified facilities, consisting of not less than ten facilities, must be selected within 60 days after the effective date of this section. Upon selection of a qualified facility under this subdivision, the commissioner shall commence reasonable efforts to identify potential insurance policyholders and insurance coverage for the qualified facility in accordance with this section.

Subd. 2. [POTENTIAL INSURANCE POLICYHOLDER.] For the purpose of this section, "potential insurance policyholder" means a person who may bear legal responsibility for environmental response costs related to a qualified facility including the following:

(1) a person who has been the subject of a request for response action under section 115B.17, or an order under section 106 of the federal Superfund Act with respect to a qualified facility;

(2) an owner or operator of a qualified facility;

(3) a person who engaged in commercial, industrial, or other activities generally known to produce waste containing a hazardous substance, or pollutant or contaminant, and whose waste was disposed of at a qualified facility; and

(4) a person who engaged in the business of hauling waste for disposal and who accepted waste from one or more persons of the type described in clause (3) for transport to a qualified facility.

Subd. 3. [IDENTIFICATION OF POTENTIAL INSURANCE POLICYHOLDERS.] The commissioner may request information from a person that the commissioner has reason to believe is a potential insurance policyholder or has information needed to identify potential insurance policyholders. The recipient of the request shall provide to the commissioner any information in the person's possession, or which the person can reasonably obtain, that the commissioner requires to identify potential insurance policyholders for a qualified facility. An owner or operator of a qualified facility shall retain and preserve all documents and other information relevant to the identification of potential insurance policyholders for the qualified facility.

Subd. 4. [IDENTIFICATION OF INSURANCE COVERAGE.] The commissioner may request a person that the commissioner has reason to believe is a potential insurance policyholder to provide, and the recipient of the request shall provide to the commissioner, any information in the person's possession, or which the person can reasonably obtain, regarding the person's liability insurance coverage for environmental response costs related to a qualified facility. A potential insurance policyholder for which evidence of coverage has been identified shall cooperate with reasonable requests of the commissioner or the attorney general for assistance in preparing for and negotiating a settlement under this section or in preparing or pursuing a claim under section 115B.444 related to that policyholder's coverage. The commissioner may contract for the services of persons qualified to reconstruct insurance policies and coverage from incomplete insurance information. The commissioner may authorize the attorney general to carry out all or a portion of the authority provided in this section.

Subd. 5. [IDENTIFICATION OF COVERAGE BY INSURERS.] The commissioner may request an insurer to make reasonable efforts to identify or confirm insurance coverage of any potential insurance policyholder identified under subdivision 4, or may direct the potential insurance policyholder to make this request of an insurer. An insurer that is requested to identify or confirm coverage of a potential insurance policyholder under this subdivision has 90 days after receiving the request to confirm coverage or to provide all information in the possession of the insurer that may assist in identifying coverage, and to explain the insurer's efforts to discover and provide such information. An insurer requested to provide information under this subdivision shall preserve all information relevant to the request until any claim relating to the request is resolved.

Subd. 6. [ENFORCEMENT.] Subdivisions 3 to 5 are enforceable under sections 115.071 and 116.072.

Sec. 3. [115B.443] [SETTLEMENT PROCESS.]

Subdivision 1. [DETERMINATION OF FACILITY COSTS.] Beginning not later than one year after selection of a qualified facility under section 115B.442, subdivision 1, the commissioner shall determine the current total estimated amount of environmental response costs incurred and to be incurred by the state for the qualified facility under sections 115B.39 to 115B.43, including reimbursement under section 115B.43.

Subd. 2. [SETTLEMENT OFFERS.] The attorney general and the commissioner shall select one or more insurers who have been identified by the commissioner as issuing coverage to persons identified under section 115B.442 as potential insurance policyholders for a qualified facility and shall make settlement offers with respect to one or more of the qualified facilities to the selected insurers. The attorney general and the commissioner shall base the settlement offer on their evaluation of the potential coverage available for environmental response costs under policies issued by the insurer to persons identified as potential insurance policyholders for that qualified facility and on the total estimated costs for the qualified facility, as determined under subdivision 1. The attorney general shall provide written notice of the settlement to the insurer together with a written explanation of how the offer was calculated. The attorney general may exclude from a settlement offer claims relating to policyholders who are known by the attorney general to have claims against the insurer for coverage for environmental liabilities at locations other than qualified facilities, or who are actively litigating or settling claims against their insurers relating to any qualified facility.

Subd. 3. [SETTLEMENT NEGOTIATIONS; MEDIATION.] An insurer shall have 60 days after receipt of a settlement offer and written explanation from the state to evaluate the offer, after which the insurer, the commissioner, and the attorney general shall commence negotiations to attempt to reach a settlement with respect to the potential insurance coverage and qualified facilities subject to the settlement offer. The insurer shall have 180 days to negotiate and commit to a settlement with the state before the attorney general may commence an action under section 115B.444, unless the commissioner and the attorney general agree to extend the negotiation period upon request by the insurer made before expiration of the 180-day period. Any extension shall be limited to one additional 60-day period.

The attorney general, commissioner, and the insurer may agree to use any method of alternative dispute resolution for all or a portion of the issues in the negotiation, or may agree to negotiate all matters directly among themselves. If the parties do not agree in writing on the manner in which they will negotiate a settlement within 60 days after commencement of the negotiation period, the parties shall submit the negotiation of the settlement to mediation by an independent and neutral mediator selected by the Minnesota office of dispute resolution. The attorney general shall submit on behalf of all parties a request to the office of dispute resolution to appoint a mediator for the negotiations. The cost of mediation shall be divided equally between the state and the insurer.

Any settlement offer or any proposal, statement, or view expressed or document prepared in the course of negotiation under this section shall not be considered an admission by any party and shall not be admissible in evidence in any judicial proceeding affecting matters subject to settlement negotiation, provided that any matter otherwise admissible in a judicial proceeding is not made inadmissible by virtue of its use in negotiation under this section.

Subd. 4. [ADJUSTMENT FOR RETROSPECTIVE PREMIUMS.] A settlement that includes payment of any amount under a policy subject to a retrospective premium plan shall include terms which assure that the settlement does not result in the imposition of any retrospective premium on any policyholder. In negotiating with respect to any state offer of settlement which is based in whole or in part on coverage known to the insurer to be subject to a retrospective premium plan:

(1) the insurer shall calculate the amount of any retrospective premium that would result from payment of the state's settlement offer amount and shall disclose the calculation and the basis for it to the attorney general and the commissioner; and

(2) the attorney general and commissioner may reduce the settlement offer amount by the amount of the retrospective premium or agree to assume the obligation to pay the retrospective premium in order to assure that no retrospective premium is imposed on the policyholder.

Subd. 5. [OPTION TO SETTLE NATURAL RESOURCE DAMAGES.] An insurer who has received a settlement offer may request the attorney general and the commissioner to address in any settlement under this section natural resource damages related to qualified facilities subject to the settlement offer. The attorney general and the

commissioner, after receiving a request under this subdivision, shall determine an amount to be added to the state's settlement offer that would be sufficient to address and resolve in the settlement any state claims for natural resource damages related to the qualified facilities subject to the settlement.

Subd. 6. [SETTLEMENT OPTION FOR ALL QUALIFIED FACILITIES.] If an insurer has entered settlements with the state under this section with respect to qualified facilities for which the aggregate amount of total estimated environmental response costs equals at least the aggregate amount of 60 percent of the total estimated environmental response costs for all qualified facilities as determined by the commissioner, the attorney general and the commissioner, upon request of the insurer, may settle with the insurer with respect to the remaining qualified facilities for the amount determined in this subdivision. The amount of the settlement for the remaining qualified facilities must be the amount that bears the same proportion to the total estimated costs for the remaining facilities that the amount payable under all of the insurer's existing settlements under this section bears to the aggregate of the total estimated costs for the qualified facilities subject to those settlements.

Subd. 7. [SCOPE OF RELEASE BY STATE; EFFECT OF SETTLEMENT.] Except for any claims excluded from the settlement process under subdivision 2, a settlement under this section shall release a settling insurer, and its policyholders to the extent of their insurance coverage under policies of that insurer, from all liability for all environmental response costs incurred and to be incurred by the state related to the qualified facility or facilities that are the subject of the settlement, including natural resource damages if addressed in the settlement. Except for claims excluded under subdivision 2, the settlement shall release a settling insurer and its policyholders from liability as described in this subdivision under all insurance policies issued by the insurer, regardless of whether the policies or policyholders were identified by the commissioner or attorney general under section 115B.442.

Subd. 8. [OTHER SETTLEMENT TERMS.] (a) An insurer who enters a settlement under this section is not liable for claims for contribution regarding matters addressed in the settlement. As a condition of settlement, an insurer shall waive its rights to seek contribution for any amounts paid in the settlement or to bring a subrogation action against any other person for any amounts paid in the settlement.

(b) Settlement under this section or section 115B.444, subdivision 2, paragraph (b), does not discharge the liability of an insurer that has not entered a settlement under this section nor of a person to whom a nonsettling insurer has issued insurance coverage to the extent of that coverage.

(c) No settlement offer, settlement, or negotiation under this section shall affect any joint and several liability for environmental response costs or damages related to the facility of any person whose liability has not been settled under this section.

(d) A settlement under this section or section 115B.444, subdivision 2, paragraph (b), reduces the state's claims for environmental response costs, and natural resource damages if addressed in the settlement, related to qualified facilities subject to the settlement by the amounts paid to the state under the settlement for the facilities.

(e) A settlement agreement approved by the attorney general and the commissioner under this section shall be presumed to be a reasonable settlement of the state's claims.

Subd. 9. [REDUCTION OF OUTSTANDING COVERAGE.] Any amounts paid by an insurer pursuant to a judgment under section 115B.444 or settlement under this section reduce the outstanding coverage available under policies of the insurer to the extent permitted under applicable law and policy provisions.

Sec. 4. [115B.444] [STATE ACTION AGAINST INSURERS.]

Subdivision 1. [STATE ACTION.] The state, by the attorney general, may bring a state action against any insurer for recovery of all environmental response costs incurred and to be incurred by the state, related to qualified facilities under sections 115B.39 to 115B.43, for which policyholders of the insurer may be liable. No assignment of any rights of a policyholder to the state and no judgment against the policyholder is required as a condition for the state bringing an action under this subdivision. The state shall make reasonable efforts to notify affected policyholders of the state's commencement of an action under this section. An affected policyholder may intervene in an action under this section. For purposes of this section, an "affected policyholder" means a policyholder whose rights under an insurance policy relevant to an action under this section may be affected by the action. All defenses available to a policyholder to any claim asserted or which could be asserted against it shall be available to the insurer in an action brought by the state under this subdivision. Any action under this subdivision shall vest with the state no greater rights than the rights of the individual policyholders under the provisions, terms, conditions, and limitations of the specific

insurance policies on which the action is based. Before the attorney general may commence an action against an insurer under this subdivision, for any claims with respect to a qualified facility, the attorney general and the commissioner shall present to the insurer a written settlement offer, and shall provide the insurer with an opportunity to negotiate and enter a settlement with the state as provided in section 115B.443.

Subd. 2. [ACTIONS BY POLICYHOLDERS; STATE APPROVAL OF SETTLEMENTS.] (a) Except as provided in paragraph (b), nothing in sections 115B.441 to 115B.444 affects the right of a policyholder to bring or pursue any action against, or enter any settlement with, an insurer for any claims for which the state has a right of action against the insurer under this section and that have not been resolved by a settlement or judgment under this section. The state may intervene in an action in which a policyholder seeks to recover a claim for which the state has a right of action under this section.

(b) A policyholder may not enter a settlement that releases an insurer from any claims for which the state has an action under subdivision 1, unless the attorney general has given prior written approval to the settlement and the policyholder agrees to assign to the state any amounts recovered under the settlement from the insurer that are attributable to the resolution of the claims.

Sec. 5. [115B.445] [DEPOSIT OF PROCEEDS.]

All amounts paid to the state by an insurer pursuant to any settlement under section 115B.443 or judgment under section 115B.444 must be deposited in the state treasury and credited to the solid waste fund.

Sec. 6. [REPORT TO THE LEGISLATURE.]

The attorney general and the commissioner shall report to the finance division of the senate environment and natural resources committee and the house environment and natural resources finance committee by January 15, 1998, concerning the results achieved in carrying out the settlement and recovery process established under sections 1 to 5. The report must include any recommendations for further legislation that the attorney general and the commissioner believe will assist in the fair and efficient resolution of claims related to qualified facilities by the state and insurers.

Sec. 7. [APPROPRIATIONS.]

The following amounts are appropriated from the solid waste fund to carry out the provisions of sections 1 to 5, and are available until June 30, 1997:

(1) to the attorney general, $.......; and

(2) to the commissioner of the pollution control agency, $........

Sec. 8. [REPEALER.]

Minnesota Statutes 1994, sections 115B.44, subdivision 1; and 115B.46; and Minnesota Statutes 1995 Supplement, sections 115B.44, subdivision 2; and 115B.45, are repealed.

Sec. 9. [EFFECTIVE DATE.]

Sections 1 to 8 are effective the day following final enactment."

Delete the title and insert:

"A bill for an act relating to insurance; providing a process for resolving state claims for certain landfill cleanup costs and associated damages with insurers; authorizing an action by the state for recovery from insurers after a reasonable opportunity for settlement; appropriating money; proposing coding for new law in Minnesota Statutes, chapter 115B; repealing Minnesota Statutes 1994, sections 115B.44, subdivision 1; and 115B.46; Minnesota Statutes 1995 Supplement, sections 115B.44, subdivision 2; and 115B.45."

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.

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

H. F. No. 2593, A bill for an act relating to local government; modifying the powers of sanitary districts; amending Minnesota Statutes 1994, section 115.26, by adding a subdivision.

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. 2600, A bill for an act relating to capital improvements; authorizing the issuance of state bonds; appropriating money; requiring matching contributions.

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.

Long from the Committee on Local Government and Metropolitan Affairs to which was referred:

H. F. No. 2605, A bill for an act relating to water; providing for collection of revenue by watershed districts; amending Minnesota Statutes 1994, section 444.075, subdivision 1a, and by adding a subdivision; proposing coding for new law in Minnesota Statutes, chapter 103D.

Reported the same back with the following amendments:

Page 1, line 13, delete "444.075" and insert "103D.730"

Page 1, line 16, after "103D.411" insert ", or 103B.231 for watershed districts in the metropolitan area," and delete "subdivision" and insert "subdivisions"

Page 1, line 17, after "3" insert "and 4"

Page 2, delete lines 1 to 6 and insert:

"Subd. 3. [NOTIFICATION.] The managers shall, ten days prior to a hearing or decision on projects implemented under this section, provide notice to the city, town, or county within the affected area. The city, town, or county receiving notice shall submit to the managers' concerns relating to the implementation of the project. The managers shall consider the concerns of the city, town, or county in the decision on the project.

Subd. 4. [RESOLUTION OF DISPUTES.] Unresolved differences between local governments and the managers may be brought before the committee on dispute resolution under section 103B.101, subdivision 10. Within 45 days of receiving the request for dispute resolution, the committee must consider the concerns of the local government. The committee has 30 days after meeting to issue a recommendation to the board for final decision."

Page 2, line 7, delete "SEWER CONSTRUCTION" and insert "WATER FACILITIES"

Page 2, line 10, delete "sewer" and insert "water"

Page 2, line 12, delete "called facilities, and"

Page 2, line 13, delete everything after "facilities"

page 2, line 14, delete "jurisdiction"

Page 2, line 25, delete "subdivision 1a" and insert "section 103D.730"

Amend the title as follows:

Page 1, line 4, delete "subdivision 1a, and"

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. 2612, A bill for an act relating to capital improvements; appropriating money to the department of administration for a grant to the city of Brandon and town of Brandon joint powers board for an educational, heritage, and cultural preservation center; authorizing the sale of state bonds.

Reported the same back with the following amendments:

Page 1, line 18, delete "made" and insert "available"

With the recommendation that when so amended the bill pass.

The report was adopted.

Jaros from the Committee on International Trade and Economic Development to which was referred:

H. F. No. 2641, A bill for an act relating to economic development; creating a geographic zone; establishing a board.

Reported the same back with the following amendments:

Page 1, line 14, after "recreational" insert "and educational"

Page 1, line 17, delete "eight" and insert "nine"

Page 1, line 19, delete everything after "(1)" and insert "International Falls Visitors and Convention Bureau;"

Page 1, line 20, delete "resort" and insert "Lake"

Page 2, line 1, delete "Big Falls" and insert "Ranier" and delete "and"

Page 2, line 2, delete the period and insert "; and

(9) city of Cook."

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.

Long from the Committee on Local Government and Metropolitan Affairs to which was referred:

H. F. No. 2649, A bill for an act relating to local government; clarifying town board vote requirements on certain fund transfers; amending Minnesota Statutes 1994, section 366.04.

Reported the same back with the following amendments:

Page 1, line 9, after "board" insert ", not counting vacancies,"

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. 2669, A bill for an act relating to tourism; economic development; environment; authorizing the issuance of bonds; appropriating money for development of an interpretive center and conference center regarding the voyageur and related animals.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. [APPROPRIATION; VOYAGEUR INTERPRETIVE AND CONFERENCE CENTER.]

(a) $250,000 is appropriated from the bond proceeds fund to the commissioner of trade and economic development for the predesign and design of an interpretive and conference center. The center shall provide educational opportunities and enhance tourism by presenting information and displays which preserve and interpret the history of the voyageur and related animals, emphasizing the importance of the fur trade to the history and development of the region and the state. The center shall include conference facilities. The center shall be located in the city of International Falls.

In developing plans for the facility, the commissioner must consult with the small business development center located at Rainy River Community College.

(b) To provide the money appropriated by this act from the bond proceeds fund, the commissioner of finance, on request of the governor, shall sell and issue bonds of the state in an amount up to $250,000 in the manner, on the terms, and with the effect prescribed by Minnesota Statutes, sections 16A.631 to 16A.675, and by the Minnesota Constitution, article XI, sections 4 to 7."

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

The report was adopted.

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

H. F. No. 2737, A bill for an act relating to vocational rehabilitation; authorizing additional funding for employment support services for persons with mental illness; appropriating money.

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.

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

H. F. No. 2739, A bill for an act relating to highways; providing for hearings related to toll facilities; amending Minnesota Statutes 1994, section 160.85, by adding a subdivision.

Reported the same back with the following amendments:

Page 1, delete line 10 and insert "hearing in any municipality or county in which any portion of the proposed toll"

Page 1, line 11, after the period insert "The commissioner shall determine the time and place of the hearing."

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.

Rest from the Committee on Taxes 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.

The report was adopted.

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

H. F. No. 2758, A bill for an act relating to agencies; providing for the right to extend a deadline with certain conditions; amending Minnesota Statutes 1995 Supplement, section 15.99, subdivision 3.

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

The report was adopted.

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

H. F. No. 2785, A bill for an act relating to taxation; allowing a credit for gifts to institutions of higher education; amending Minnesota Statutes 1994, section 290.06, by adding a subdivision.

Reported the same back with the following amendments:

Page 2, line 15, delete "and" and insert "or"

Page 2, line 18, delete "board" and insert "services office" and after "an" insert "eligible" and after "education" insert "for purposes of state financial aid under section 136A.101"

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

The report was adopted.

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

H. F. No. 2788, A bill for an act relating to liquor; modifying restrictions for temporary on-sale licenses; amending Minnesota Statutes 1995 Supplement, section 340A.410, subdivision 10.

Reported the same back with the following amendments:

Page 1, after line 6, insert:

"Section 1. Minnesota Statutes 1995 Supplement, section 340A.404, subdivision 10, is amended to read:

Subd. 10. [TEMPORARY ON-SALE LICENSES.] (a) The governing body of a municipality may issue to a club or charitable, religious, or other nonprofit organization in existence for at least three years, or to a political committee registered under section 10A.14, a temporary license for the on-sale of intoxicating liquor in connection with a social event within the municipality sponsored by the licensee. The license may authorize the on-sale of intoxicating liquor for not more than four consecutive days, and may authorize on-sales on premises other than premises the licensee owns or permanently occupies. The license may provide that the licensee may contract for intoxicating liquor catering services with the holder of a full-year on-sale intoxicating liquor license issued by any municipality. The licenses are subject to the terms, including a license fee, imposed by the issuing municipality. Licenses issued under this subdivision are subject to all laws and ordinances governing the sale of intoxicating liquor except section 340A.409

and those laws and ordinances which by their nature are not applicable. Licenses under this subdivision are not valid unless first approved by the commissioner of public safety.

(b) A county under this section may issue a temporary license only to a premises located in the unincorporated or unorganized territory of the county.

(c) A city may issue a temporary license under this subdivision that authorizes on-sale of intoxicating liquor on Sunday only if the city is authorized to issue Sunday on-sale intoxicating liquor licenses under section 340A.504, subdivision 3, paragraph (d)."

Page 1, line 7, delete "Section 1." and insert "Sec. 2."

Page 1, line 9, strike "RESTRICTION ON NUMBER" and insert "RESTRICTIONS" and before "A" insert "(a)"

Page 1, line 11, delete "six" and insert "four"

Page 1, after line 15, insert:

"(b) A municipality may not issue more than one temporary license under section 340A.404, subdivision 10, for the sale of alcoholic beverages to any one organization or registered political committee, or for any one location, within any 30 day period."

Amend the title as follows:

Page 1, line 4, delete "section " and insert "sections 340A.404, subdivision 10; and"

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. 2845, A bill for an act relating to the legislative auditor; requiring procedures for the appointment process; clarifying audit jurisdiction; protecting privacy of certain audit data; clarifying responsible officers to prosecute violations of law and recover public money; granting rights to witnesses in audit investigations; amending Minnesota Statutes 1994, sections 3.97, subdivisions 4, 5, 9, and 11; 3.971; 3.972; 3.974; 3.975; 3.978; 10.48; 37.06; 37.07; 85A.02, subdivision 5c; 192.551; 256E.05, subdivision 3a; 268.12, subdivision 8; 352.03, subdivision 6; 353.03, subdivision 3a; 353A.05, subdivision 1; 354.06, subdivision 2a; 360.015, subdivision 19; 574.03; and 609.456; Minnesota Statutes 1995 Supplement, section 16B.42, subdivision 1; repealing Minnesota Statutes 1994, sections 3.973; 136A.29, subdivision 19; 256B.04, subdivision 11; 469.207, subdivision 1; and 574.02.

Reported the same back with the following amendments:

Page 5, after line 19, insert:

"Subd. 1c. If the head of an agency reports to the legislative auditor evidence of possible misconduct within the agency and requests an audit or investigation and the legislative auditor decides not to conduct an audit or investigation, the legislative auditor shall inform the legislative audit commission of the decision."

Page 8, line 35, after "organization" insert "or individual"

Page 27, delete section 23

Page 28, line 23, delete "and 574.02" and insert "574.02; and 574.03"

Renumber the sections in sequence

Amend the title as follows:

Page 1, line 14, delete "574.03;"

Page 1, line 18, delete "and"

Page 1, line 19, before the period, insert "; and 574.03"

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

The report was adopted.

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

H. F. No. 2921, A bill for an act relating to state lands; authorizing the conveyance of certain tax-forfeited and acquired land that borders public water or natural wetlands in Hennepin county.

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. 2938, A bill for an act relating to Minnesota Statutes; correcting erroneous, ambiguous, and omitted text and obsolete references; eliminating certain redundant, conflicting, and superseded provisions; making miscellaneous technical corrections to statutes and other laws; amending Minnesota Statutes 1994, sections 10A.27, subdivision 1; 13.99, subdivisions 8a and 19c; 14.47, subdivision 1; 17.03, subdivision 10; 18.54, subdivisions 1 and 2; 18B.39; 18E.05, subdivision 1; 21.92; 32.417; 41A.023; 41A.04, subdivision 4; 44A.0311; 48.301; 60B.39, subdivision 5; 62D.02, subdivision 4; 62D.12, subdivisions 12 and 13; 62E.04, subdivision 8; 62E.09; 62I.22, subdivision 6; 72C.07, subdivision 1; 83.23, subdivisions 2 and 3; 83.24, subdivisions 3 and 5; 83.26, subdivision 1; 83.28, subdivision 2; 83.30, subdivision 1; 83.31, subdivisions 1 and 3; 83.39, subdivision 1; 85A.02, subdivision 5b; 97B.025; 103G.301, subdivision 3; 103I.101, subdivision 5; 103I.525, subdivisions 8 and 9; 103I.531, subdivisions 8 and 9; 103I.535, subdivision 8; 103I.541, subdivisions 4 and 5; 115A.156, subdivision 3; 115B.223, subdivision 2; 115C.07, subdivision 3; 116C.834, subdivision 1; 116J.403; 116J.63, subdivision 2; 116J.68, subdivision 2; 129D.14, subdivision 5; 136D.23, subdivisions 1 and 2; 136D.83, subdivisions 1 and 2; 144.98, subdivision 4; 145.61, subdivision 5; 145.889; 145.97; 148B.17; 148B.61, subdivision 2; 148B.64, subdivision 2; 148B.69, subdivision 1; 160.265, subdivision 2; 161.1231, subdivision 5; 169.128; 176.021, subdivision 7; 176.129, subdivisions 4a and 13; 176.225, subdivision 2; 176.83, subdivision 7; 177.24, subdivisions 1 and 4; 177.27, subdivision 6; 182.675; 183.375, subdivision 5; 183.411, subdivisions 2a and 3; 183.545; 197.447; 198.002, subdivision 2; 198.003, subdivision 1; 205A.13; 216A.037, subdivision 3; 216B.164, subdivision 6; 216C.10; 216C.14, subdivision 3; 216C.15, subdivision 2; 216C.37, subdivision 7; 223.17, subdivision 3; 239.101, subdivision 4; 240.24, subdivision 2; 240A.03, subdivision 10; 254B.041, subdivision 2; 256.871, subdivision 7; 256.9753, subdivision 3; 256.991; 256B.431, subdivision 22; 256B.501, subdivisions 5a and 10; 256B.502; 256B.503; 256B.74, subdivision 10; 268.166; 268.37, subdivision 3; 270.84, subdivision 1; 270A.12; 270B.07, subdivision 4; 284.28, subdivisions 5 and 6; 298.39; 299L.07, subdivision 8; 299M.04; 308A.135, subdivision 3; 325D.01, subdivision 1; 325D.69, subdivision 2; 325D.70; 325F.20, subdivision 1; 326.47, subdivision 6; 326.86, subdivision 1; 349A.02, subdivision 6; 352.75, subdivision 6; 352B.26, subdivision 3; 353.271, subdivision 2; 353.84; 354.094, as amended; 354.53, subdivision 1; 354.55, subdivisions 14 and 15; 354.66, subdivisions 1 and 6; 354A.092; 354A.093; 355.391, subdivision 1; 355.392, subdivisions 2 and 3; 356.86, subdivision 2; 356.865, subdivision 2; 363.06, subdivision 4a; 402.01, subdivision 1; 422A.06, subdivision 5; 462A.06, subdivision 11; 462A.07, subdivision 14; 462A.08, subdivision 3; 462A.236; 469.141, subdivision 2; 473.446, subdivision 2; 473.516, subdivision 3; 473.545; 473.639; 480A.06, subdivision 3; 524.3-101; 524.3-108; 524.3-901; 524.3-1204; 525.712; 550.15; 583.285; 624.7132, subdivision 8; 626A.13, subdivision 4; and 629.68; Minnesota Statutes 1995 Supplement, sections 13.99, subdivision 19h; 15.0591, subdivision 2; 15.991, subdivision 1; 16A.6701, subdivision 1; 16B.43, subdivision 1; 16B.748; 41A.066, subdivision 1; 43A.191, subdivision 3; 43A.24, subdivision 2; 47.60, subdivision 4; 62A.307, subdivision 2; 62L.045, subdivision 1; 62M.09, subdivision 5; 72C.03; 79A.31, subdivision 1; 83.26, subdivision 2; 84.9691; 97A.0453; 103B.231, subdivision 3; 103G.301, subdivision 2; 116.07, subdivisions 4 and 4d; 121.703, subdivision 2; 144.057, subdivision 1; 144A.071, subdivision 2; 144A.073, subdivision 8; 144D.06; 148C.03, subdivision 1; 151.37, subdivision 2; 237.16, subdivision 11; 256.737, subdivision 1a; 256D.01, subdivision 1b; 275.065, subdivision 6; 276.04, subdivision 2; 295.50, subdivision 4; 297A.25, subdivision 11; 326.50; 336.9-411; 354.05, subdivision 5; 354.63, subdivision 2; 354A.094, subdivision 4; 354D.01, subdivision 2; 354D.06; 462A.201, subdivision 2; 474.191; 525.6197; 609.101, subdivision 2; 609.485, subdivisions 2 and 4; and 626.557, subdivision 16; Laws 1995, chapters 159, section 1; 202, article 4, section 24; and 212, article 4, section 65;

First Special Session chapter 3, article 8, section 25, subdivision 6; repealing Minnesota Statutes 1994, sections 13.99, subdivisions 2 and 39a; 148B.60, subdivision 6; 177.28, subdivision 4; 222.61; 254B.041, subdivision 1; 289A.60, subdivision 9; 349.218; 471.6161, subdivision 7; 473.604, subdivision 7; and 473.704, subdivision 6; Laws 1991, chapter 354, article 6, section 7, subdivisions 2 and 3; Laws 1995, chapters 186, sections 38 and 78; 224, sections 117, 118, 119, 120, and 121; 234, article 3, section 3; 247, article 1, section 44; 248, article 10, section 15; and 259, article 3, section 7, subdivision 2.

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. 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 following amendments:

Page 2, delete lines 23 to 30, and insert:

"(5) reflects and does not exceed current available resources."

Page 3, line 2, delete "ANNUAL" and insert "BIENNIAL"

Page 3, line 5, before "performance" insert "biennial" and delete "each year"

Page 3, line 19, delete the new language and insert "functionally classifies as a major or class A minor arterial that functions to accommodate movements between cities or to substantial employment areas in the region,"

Page 6, delete lines 22 and 23, and insert:

"The metropolitan council's first performance audit report, required under section 3, must be submitted to the legislature by December 15, 1996."

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.

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

H. F. No. 2986, A bill for an act relating to education; removing obsolete references; amending Minnesota Statutes 1995 Supplement, section 124.71, subdivision 2.

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

The report was adopted.

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

H. F. No. 2989, A bill for an act relating to state government; rulemaking; requiring the advice and comment from standing committees for certain agency rules.

Reported the same back with the following amendments:

Page 1, line 11, delete "standing" and insert "finance"

Page 1, line 12, after "committees" insert "or divisions of the committees"

Page 1, line 15, delete "standing" and insert "finance"

Page 1, line 16, after "committees" insert "or divisions of the committees"

Page 1, line 18, after the period, insert "An agency need not wait more than 60 days for advice and comment from finance committees before proceeding to adopt a rule."

With the recommendation that when so amended the bill pass.

The report was adopted.

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

H. F. No. 3016, A bill for an act relating to commerce; regulating heavy and utility equipment manufacturers and dealers; modifying the definition of truck parts; amending Minnesota Statutes 1994, section 325E.068, subdivision 7.

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

The report was adopted.

Long from the Committee on Local Government and Metropolitan Affairs to which was referred:

H. F. No. 3019, A bill for an act relating to local government; authorizing certain cities, towns, and the county for certain unorganized townships to create the Virginia area ambulance district; authorizing a tax levy; requiring local approval.

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

The report was adopted.

Osthoff from the Committee on Financial Institutions and Insurance to which was referred:

H. F. No. 3052, A bill for an act relating to insurance; prohibiting insurers from terminating agents as a result of contacts with the legislature; amending Minnesota Statutes 1994, section 72A.20, subdivision 20.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 1994, section 72A.20, subdivision 20, is amended to read:

Subd. 20. [CONTACT WITH DEPARTMENT GOVERNMENT.] An insurance company may not terminate or otherwise penalize an insurance agent solely because the agent contacted any government department or agency regarding a problem that the agent or an insured may be having with an insurance company. For purposes of this section, "government department or agency" includes the executive, legislative, and judicial branches of government.

Sec. 2. [APPLICATION.]

The intent of section 1 is to clarify the legislature's intent in enacting Minnesota Statutes, section 72A.20, subdivision 20."

Delete the title and insert:

"A bill for an act relating to insurance; clarifying that existing law prohibits insurers from terminating agents as a result of contacts with any branch of government; amending Minnesota Statutes 1994, section 72A.20, subdivision 20."

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. 3070, A bill for an act relating to economic development; modifying the neighborhood revitalization program; amending Minnesota Statutes 1994, section 469.1831, subdivisions 3 and 6.

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

The report was adopted.

Jennings from the Committee on General Legislation, Veterans Affairs and Elections to which was referred:

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.

Reported the same back with the following amendments:

Page 5, line 19, delete "and thereafter"

Page 5, after line 19, insert:

"Sec. 10. [EXPIRATION.]

Sections 2, 4, and 8 and the amendments to Minnesota Statutes in sections 1, 3, 5, 6, and 7 expire on June 1, 1997."

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.

Long from the Committee on Local Government and Metropolitan Affairs to which was referred:

H. F. No. 3162, A bill for an act relating to local government; permitting the city of Cohasset to own and operate a gas utility.

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

The report was adopted.

Long from the Committee on Local Government and Metropolitan Affairs to which was referred:

S. F. No. 317, A bill for an act relating to cities; permitting cities to close certain unlawful businesses; proposing coding for new law in Minnesota Statutes, chapter 415.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. [415.17] [BUSINESSES THAT VIOLATE ORDINANCES.]

The governing body of a home rule charter or statutory city may order that a place of business be closed if it determines that the business conducted at that place was in violation of a city zoning or licensing ordinance at the time the business was established at that location. The city must have in place a proper notification procedure and have followed the procedure prior to requesting the enforcement of this section.

Sec. 2. [EFFECTIVE DATE; APPLICATION.]

Section 1 is effective August 1, 1996, and applies to a business established or licensed on or after that date."

With the recommendation that when so amended the bill pass.

The report was adopted.

Skoglund from the Committee on Judiciary to which was referred:

S. F. No. 1798, A bill for an act relating to statutes; limiting the scope of an instruction to the revisor; amending Laws 1995, chapter 189, section 8.

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

The report was adopted.

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

S. F. No. 2166, A bill for an act relating to capital improvements; permitting up to a 40-year term for certain bonds; amending Minnesota Statutes 1994, sections 429.091, subdivision 3; and 475.54, subdivisions 1 and 3.

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.

H. F. Nos. 168, 219, 220, 408, 637, 667, 732, 1540, 1998, 2101, 2215, 2282, 2351, 2369, 2375, 2394, 2478, 2483, 2493, 2565, 2580, 2593, 2605, 2612, 2649, 2757, 2758, 2788, 2921, 2938, 2986, 2989, 3016, 3052, 3070 and 3162 were read for the second time.

S. F. Nos. 1793, 1815, 317 and 1798 were read for the second time.

The following House Files were introduced:

Schumacher introduced:

H. F. No. 3164, A bill for an act relating to environment; appropriating money to Benton county for landfill cleanup costs.

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

Ozment introduced:

H. F. No. 3165, A bill for an act relating to courts; requiring county attorneys in certain counties to provide prosecution services for nonfelony violations in cities with small populations; amending Minnesota Statutes 1994, section 487.25, subdivision 10.

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

Huntley and Jaros introduced:

H. F. No. 3166, A bill for an act relating to medical assistance; changing the geographic designation of certain counties for purposes of ICF/MR reimbursement; amending Minnesota Statutes 1995 Supplement, section 256B.501, subdivision 5b.

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

Sarna introduced:

H. F. No. 3167, A bill for an act relating to commerce; providing for a study of ethanol blended gasoline; appropriating money.

The bill was read for the first time and referred to the Committee on Economic Development, Infrastructure and Regulation Finance.

Murphy introduced:

H. F. No. 3168, A bill for an act relating to crime; requiring state departments and agencies to enact violence prevention plans and prepare impact statements; establishing an advertising campaign designed to reduce violence and counteract the effect of violence in the media; appropriating money; amending Minnesota Statutes 1994, section 15.86, by adding a subdivision.

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

McGuire; Swenson, D., and Osthoff introduced:

H. F. No. 3169, A bill for an act relating to insurance; prohibiting insurance fraud; providing enforcement; prescribing criminal penalties; amending Minnesota Statutes 1994, section 609.611.

The bill was read for the first time and referred to the Committee on Financial Institutions and Insurance.

Girard and Abrams introduced:

H. F. No. 3170, A bill for an act relating to credit unions; authorizing the establishment of other locations under certain conditions; amending Minnesota Statutes 1994, section 52.21.

The bill was read for the first time and referred to the Committee on Financial Institutions and Insurance.

Tuma, Boudreau, Ozment, Osskopp and Dempsey introduced:

H. F. No. 3171, A bill for an act relating to state trails; establishing a new trail in Rice, Dakota, and Goodhue counties; amending Minnesota Statutes 1994, section 85.015, by adding a subdivision.

The bill was read for the first time and referred to the Committee on Environment and Natural Resources.

Rest; Carruthers; Carlson, L.; Luther and Leppik introduced:

H. F. No. 3172, A bill for an act relating to highways; directing commissioner of transportation to complete reconstruction of highway 100 as a high priority project.

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

Rest, Milbert, Carruthers, Macklin and Wagenius introduced:

H. F. No. 3173, A bill for an act relating to taxation; sales and use taxes; changing the time limit for refund claims in certain instances; allowing claims to the commissioner for refunds in certain instances; providing for the tax rate reduction and exemption of replacement capital equipment; providing an exemption from the use tax for certain de minimis purchases; making the exemption for farm machinery permanent; exempting certain materials used in providing taxable services; extending the duration of the sales tax advisory council; amending Minnesota Statutes 1994, sections 289A.50, by adding a subdivision; 297A.01, subdivision 16; 297A.02, subdivision 5; 297A.14, by adding a subdivision; and 297A.25, by adding a subdivision; Minnesota Statutes 1995 Supplement, sections 289A.40, subdivision 1; and 297A.25, subdivision 59; Laws 1995, chapter 264, article 2, section 42, subdivision 1; repealing Minnesota Statutes 1994, section 297A.01, subdivision 20.

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

Clark and Rest introduced:

H. F. No. 3174, A bill for an act relating to health; appropriating money for the birth defect surveillance system project.

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

Rest and Carruthers introduced:

H. F. No. 3175, A bill for an act relating to counties; extending the capital improvement bonding authority; amending Minnesota Statutes 1994, section 373.40, subdivision 7.

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

Bettermann introduced:

H. F. No. 3176, A bill for an act relating to education; providing for school attendance options; proposing coding for new law in Minnesota Statutes, chapter 120.

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

Weaver; Carlson, S.; Warkentin and Johnson, A., introduced:

H. F. No. 3177, A bill for an act relating to taxation; authorizing establishment of a tax increment financing district in the city of Coon Rapids that is exempt from certain requirements.

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

Johnson, V., and Leighton introduced:

H. F. No. 3178, A bill for an act relating to agriculture; creating a pilot project assisting retiring farmers in transferring farms to beginning farmers; appropriating money.

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

Pugh introduced:

H. F. No. 3179, A bill for an act relating to taxation; property; requiring additional information on the proposed notices in cases of pending referendums; amending Minnesota Statutes 1995 Supplement, sections 124A.03, subdivision 2; and 275.065, subdivision 3.

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

Murphy, Huntley, Jaros, Bakk and Tomassoni introduced:

H. F. No. 3180, A bill for an act relating to natural resources; appropriating money for snowmobile grants-in-aid.

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

Dorn, Perlt, Osskopp, Ostrom and Van Dellen introduced:

H. F. No. 3181, A bill for an act relating to taxation; allowing a tax refund or credit on unsold pull-tabs or tipboard tickets; appropriating money; amending Minnesota Statutes 1994, section 297E.02, subdivisions 4 and 10.

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

Winter, Jaros, Goodno, Commers and Kelley introduced:

H. F. No. 3182, A bill for an act relating to taxation; allowing a tax refund or credit on unsold pull-tabs or tipboard tickets; appropriating money; amending Minnesota Statutes 1994, section 297E.02, subdivisions 4 and 10.

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

Dehler, Bertram, Mares, Dauner and Olson, M., introduced:

H. F. No. 3183, A bill for an act relating to taxation; allowing a tax refund or credit on unsold pull-tabs or tipboard tickets; appropriating money; amending Minnesota Statutes 1994, section 297E.02, subdivisions 4 and 10.

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

Kinkel; Hasskamp; Rostberg; Johnson, R., and Girard introduced:

H. F. No. 3184, A bill for an act relating to taxation; allowing a tax refund or credit on unsold pull-tabs or tipboard tickets; appropriating money; amending Minnesota Statutes 1994, section 297E.02, subdivisions 4 and 10.

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

Rukavina, Huntley, Pugh, Dempsey and Weaver introduced:

H. F. No. 3185, A bill for an act relating to taxation; allowing a tax refund or credit on unsold pull-tabs or tipboard tickets; appropriating money; amending Minnesota Statutes 1994, section 297E.02, subdivisions 4 and 10.

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

Tomassoni; Anderson, B.; Murphy; Garcia and Pawlenty introduced:

H. F. No. 3186, A bill for an act relating to taxation; allowing a tax refund or credit on unsold pull-tabs or tipboard tickets; appropriating money; amending Minnesota Statutes 1994, section 297E.02, subdivisions 4 and 10.

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

Entenza; Johnson, A.; Carlson, L.; Mariani and Huntley introduced:

H. F. No. 3187, A bill for an act relating to education; providing for a task force to develop a student bill of rights and responsibilities for effective learning.

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

Cooper and Frerichs introduced:

H. F. No. 3188, A bill for an act relating to appropriations; appropriating money to the University of Minnesota for an anaerobic digestion demonstration unit; authorizing state bonds.

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

Carlson, L.; Pelowski; Opatz; Kelso and Dorn introduced:

H. F. No. 3189, A bill for an act relating to education; removing restrictions on appropriations; amending Laws 1995, chapter 212, article 1, sections 3, subdivision 2; and 4, subdivision 2.

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

Jennings introduced:

H. F. No. 3190, A bill for an act relating to capital improvements; authorizing the sale of state bonds; appropriating money for the North West Company Fur Post Interpretive Center.

The bill was read for the first time and referred to the Committee on Economic Development, Infrastructure and Regulation Finance.

Peterson; Johnson, V., and Munger introduced:

H. F. No. 3191, A bill for an act relating to state lands; requiring the commissioner of natural resources to attempt to resolve a boundary dispute and determine the equitable interests of the parties.

The bill was read for the first time and referred to the Committee on Environment and Natural Resources.

Johnson, V.; Finseth; Brown; Peterson and Hackbarth introduced:

H. F. No. 3192, A bill for an act relating to natural resources; appropriating money for grooming grant-in-aid snowmobile trails.

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

Murphy and Swenson, D., for the Committee on Judiciary Finance, introduced:

H. F. No. 3193, A bill for an act relating to public administration; appropriating money to acquire and to better public land and buildings and other public improvements of a capital nature for correctional facilities; authorizing the issuance of bonds; proposing coding for new law in Minnesota Statutes, chapter 243.

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

Murphy introduced:

H. F. No. 3194, A bill for an act relating to corrections; appropriating money for the reduction of probation officer caseload, supervised release and probation services, and county probation officer reimbursement.

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

Murphy introduced:

H. F. No. 3195, A bill for an act relating to corrections; requiring the commissioner of corrections to allocate community corrections act base funding so that a county does not receive less money in fiscal year 1997 than it did in fiscal year 1995.

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

Murphy and Lourey introduced:

H. F. No. 3196, A bill for an act relating to human services; modifying the treatment of income for institutionalized spouses under the medical assistance program; amending Minnesota Statutes 1994, section 256B.058, subdivision 2; Minnesota Statutes 1995 Supplement, section 256B.0575.

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

Anderson, R., introduced:

H. F. No. 3197, A bill for an act relating to education; providing for a special levy for independent school district No. 545, Henning.

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

Brown, for the Committee on Environment and Natural Resources Finance, introduced:

H. F. No. 3198, A bill for an act relating to public administration; authorizing spending to acquire and to better public land and buildings and other public improvements of a capital nature with certain conditions; authorizing issuance of bonds; amending Minnesota Statutes 1994, sections 41B.19, subdivision 1; and 94.16, subdivision 3; Laws 1994, chapter 643, section 27, subdivision 2; proposing coding for new law in Minnesota Statutes, chapter 446A; repealing Minnesota Statutes 1994, section 446A.071, subdivisions 1, 3, 4, 5, 6, 7, and 8; Minnesota Statutes 1995 Supplement, section 446A.071, subdivision 2; Laws 1994, chapter 643, section 24, subdivision 3.

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

Greenfield introduced:

H. F. No. 3199, A bill for an act relating to public administration; authorizing spending to acquire land and to better public land and buildings and other public improvements of a capital nature for the state's human services infrastructure; authorizing the issuance of state bonds; appropriating money.

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

The following House Advisory was introduced:

Cooper, Brown, Davids and Weaver introduced:

H. A. No. 24, A proposal to identify impediments to direct access to obstetric and gynecological care.

The advisory was referred to the Committee on Health and Human Services.

The following messages were received from the Senate:

Mr. Speaker:

I hereby announce the passage by the Senate of the following House File, herewith returned:

H. F. No. 2150, A bill for an act relating to liquor; authorizing the city of Stillwater to issue one additional on-sale license.

Patrick E. Flahaven, Secretary of the Senate

Mr. Speaker:

I hereby announce the passage by the Senate of the following House File, herewith returned:

H. F. No. 2239, A bill for an act relating to local government; allowing the city of Morristown to maintain and pay for certain electrical power outside the city.

Patrick E. Flahaven, Secretary of the Senate

Mr. Speaker:

I hereby announce the passage by the Senate of the following Senate Files, herewith transmitted:

S. F. Nos. 1872, 1879, 2514 and 2584.

Patrick E. Flahaven, Secretary of the Senate

S. F. No. 1872, A bill for an act relating to peace officer training; requiring peace officers to undergo training in community policing techniques; proposing coding for new law in Minnesota Statutes, chapter 626.

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

S. F. No. 1879, A bill for an act relating to medical assistance; combining the alternative care program and the home- and community-based services waiver for the elderly program.

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

S. F. No. 2514, A bill for an act relating to civil commitment; clarifying the financial responsibility for hearings on the use of neuroleptic medications; amending Minnesota Statutes 1994, section 256G.08, subdivision 1.

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

S. F. No. 2584, A bill for an act relating to veterans; eliminating certain duties of the board of directors of the Minnesota veterans homes; amending Minnesota Statutes 1994, section 198.003, subdivision 1.

The bill was read for the first time and referred to the Committee on General Legislation, Veterans Affairs and Elections.

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

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 128 yeas and 0 nays as follows:

Those who voted in the affirmative were:

Abrams       Frerichs     Koppendrayer Onnen        Solberg
Anderson, B. Garcia       Kraus        Opatz        Stanek
Anderson, R. Girard       Krinkie      Orenstein    Sviggum
Bakk         Goodno       Larsen       Orfield      Swenson, D.
Bertram      Greenfield   Leighton     Osskopp      Swenson, H.
Bettermann   Greiling     Leppik       Osthoff      Sykora
Bishop       Gunther      Lieder       Ostrom       Tomassoni
Boudreau     Haas         Long         Otremba      Tompkins
Bradley      Hackbarth    Lourey       Ozment       Trimble
Broecker     Harder       Luther       Paulsen      Tuma
Carlson, L.  Hasskamp     Lynch        Pawlenty     Tunheim
Carlson, S.  Hausman      Macklin      Pellow       Van Dellen
Carruthers   Holsten      Mahon        Pelowski     Van Engen
Clark        Huntley      Mares        Perlt        Vickerman
Commers      Jaros        Mariani      Peterson     Wagenius
Cooper       Jefferson    Marko        Pugh         Warkentin
Daggett      Jennings     McCollum     Rest         Weaver
Dauner       Johnson, A.  McElroy      Rhodes       Wejcman
Davids       Johnson, R.  McGuire      Rice         Wenzel
Dehler       Johnson, V.  Milbert      Rostberg     Winter
Delmont      Kalis        Molnau       Rukavina     Wolf
Dempsey      Kelley       Mulder       Sarna        Worke
Dorn         Kelso        Munger       Schumacher   Workman
Entenza      Kinkel       Murphy       Seagren      Sp.Anderson,I
Erhardt      Knight       Ness         Skoglund     
Finseth      Knoblach     Olson, M.    Smith        

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 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       Finseth      Koppendrayer Onnen        Stanek
Anderson, B. Frerichs     Kraus        Opatz        Sviggum
Anderson, R. Garcia       Krinkie      Orenstein    Swenson, D.
Bakk         Girard       Larsen       Orfield      Swenson, H.
Bertram      Goodno       Leighton     Osskopp      Sykora
Bettermann   Greenfield   Leppik       Osthoff      Tomassoni
Bishop       Greiling     Lieder       Ostrom       Tompkins
Boudreau     Gunther      Long         Otremba      Trimble
Bradley      Haas         Lourey       Ozment       Tuma
Broecker     Hackbarth    Luther       Paulsen      Tunheim
Brown        Harder       Lynch        Pawlenty     Van Dellen
Carlson, L.  Hasskamp     Macklin      Pellow       Van Engen
Carlson, S.  Hausman      Mahon        Pelowski     Vickerman
Carruthers   Holsten      Mares        Perlt        Wagenius
Clark        Huntley      Mariani      Peterson     Warkentin
Commers      Jaros        Marko        Pugh         Weaver
Cooper       Jefferson    McCollum     Rest         Wejcman
Daggett      Jennings     McElroy      Rhodes       Wenzel
Dauner       Johnson, A.  McGuire      Rice         Winter
Davids       Johnson, R.  Milbert      Rostberg     Wolf
Dawkins      Johnson, V.  Molnau       Rukavina     Worke
JOURNAL OF THE HOUSE - 77th Day - Top of Page 6809

Dehler       Kalis        Mulder       Sarna        Workman
Delmont      Kelley       Munger       Schumacher   Sp.Anderson,I
Dempsey      Kelso        Murphy       Seagren      
Dorn         Kinkel       Ness         Skoglund     
Entenza      Knight       Olson, E.    Smith        
Erhardt      Knoblach     Olson, M.    Solberg      

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.

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 129 yeas and 0 nays as follows:

Those who voted in the affirmative were:

Abrams       Finseth      Knoblach     Olson, E.    Smith
Anderson, B. Frerichs     Koppendrayer Olson, M.    Solberg
Anderson, R. Garcia       Kraus        Onnen        Stanek
Bakk         Girard       Krinkie      Opatz        Sviggum
Bertram      Goodno       Larsen       Orfield      Swenson, D.
Bettermann   Greenfield   Leighton     Osskopp      Swenson, H.
Boudreau     Greiling     Leppik       Osthoff      Sykora
Bradley      Gunther      Lieder       Ostrom       Tomassoni
Broecker     Haas         Long         Otremba      Tompkins
Brown        Hackbarth    Lourey       Ozment       Trimble
Carlson, L.  Harder       Luther       Paulsen      Tuma
Carlson, S.  Hasskamp     Lynch        Pawlenty     Tunheim
Carruthers   Hausman      Macklin      Pellow       Van Dellen
Clark        Holsten      Mahon        Pelowski     Van Engen
Commers      Huntley      Mares        Perlt        Vickerman
Cooper       Jaros        Mariani      Peterson     Wagenius
Daggett      Jefferson    Marko        Pugh         Warkentin
Dauner       Jennings     McCollum     Rest         Weaver
Davids       Johnson, A.  McElroy      Rhodes       Wejcman
Dawkins      Johnson, R.  McGuire      Rice         Wenzel
Dehler       Johnson, V.  Milbert      Rostberg     Winter
Delmont      Kalis        Molnau       Rukavina     Wolf
Dempsey      Kelley       Mulder       Sarna        Worke
Dorn         Kelso        Munger       Schumacher   Workman
Entenza      Kinkel       Murphy       Seagren      Sp.Anderson,I
Erhardt      Knight       Ness         Skoglund     

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.

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 129 yeas and 0 nays as follows:

Those who voted in the affirmative were:

Abrams       Farrell      Knight       Olson, E.    Smith
Anderson, B. Finseth      Knoblach     Olson, M.    Solberg
Anderson, R. Frerichs     Koppendrayer Onnen        Stanek
Bakk         Garcia       Kraus        Opatz        Sviggum
Bertram      Girard       Krinkie      Orfield      Swenson, D.
Bettermann   Goodno       Larsen       Osskopp      Swenson, H.
Boudreau     Greenfield   Leighton     Osthoff      Sykora
Bradley      Greiling     Leppik       Ostrom       Tomassoni
Broecker     Gunther      Lieder       Otremba      Tompkins
Brown        Haas         Long         Ozment       Trimble
Carlson, L.  Hackbarth    Lourey       Paulsen      Tuma
Carlson, S.  Harder       Luther       Pawlenty     Tunheim
Carruthers   Hasskamp     Lynch        Pellow       Van Dellen
Clark        Hausman      Macklin      Pelowski     Van Engen
Commers      Holsten      Mahon        Perlt        Vickerman
Cooper       Huntley      Mares        Peterson     Wagenius
Daggett      Jaros        Mariani      Pugh         Warkentin
Dauner       Jefferson    Marko        Rest         Weaver
Davids       Jennings     McElroy      Rhodes       Wejcman
Dawkins      Johnson, A.  McGuire      Rice         Wenzel
Dehler       Johnson, R.  Milbert      Rostberg     Winter
Delmont      Johnson, V.  Molnau       Rukavina     Wolf
Dempsey      Kalis        Mulder       Sarna        Worke
Dorn         Kelley       Munger       Schumacher   Workman
Entenza      Kelso        Murphy       Seagren      Sp.Anderson,I
Erhardt      Kinkel       Ness         Skoglund     

H. F. No. 2778 was reported to the House.

There being no objection, H. F. No. 2778 was temporarily laid over on the Consent Calendar.

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.

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 130 yeas and 0 nays as follows:

Those who voted in the affirmative were:

Abrams       Frerichs     Kraus        Opatz        Sviggum
Anderson, B. Garcia       Krinkie      Orenstein    Swenson, D.
Anderson, R. Girard       Larsen       Orfield      Swenson, H.
Bakk         Goodno       Leighton     Osskopp      Sykora
Bertram      Greenfield   Leppik       Osthoff      Tomassoni
Bettermann   Greiling     Lieder       Ostrom       Tompkins
Boudreau     Gunther      Long         Otremba      Trimble
Broecker     Haas         Lourey       Ozment       Tuma
Brown        Hackbarth    Luther       Paulsen      Tunheim
Carlson, L.  Harder       Lynch        Pawlenty     Van Dellen
Carlson, S.  Hasskamp     Macklin      Pellow       Van Engen
Carruthers   Hausman      Mahon        Pelowski     Vickerman
Clark        Holsten      Mares        Perlt        Wagenius
Commers      Huntley      Mariani      Peterson     Warkentin
Cooper       Jaros        Marko        Pugh         Weaver
Daggett      Jefferson    McCollum     Rest         Wejcman
Dauner       Jennings     McElroy      Rhodes       Wenzel
Davids       Johnson, A.  McGuire      Rice         Winter
Dawkins      Johnson, R.  Milbert      Rostberg     Wolf
Dehler       Johnson, V.  Molnau       Rukavina     Worke
Delmont      Kalis        Mulder       Sarna        Workman
Dempsey      Kelley       Munger       Schumacher   Sp.Anderson,I
Dorn         Kelso        Murphy       Seagren      
Entenza      Kinkel       Ness         Skoglund     
Erhardt      Knight       Olson, E.    Smith        
Farrell      Knoblach     Olson, M.    Solberg      
Finseth      Koppendrayer Onnen        Stanek       

H. F. No. 2846 was reported to the House.

Kalis moved that H. F. No. 2846 be continued on the Consent Calendar. The motion prevailed.

H. F. No. 2778 which was temporarily laid over earlier today on the Consent Calendar was again reported to the House.

H. F. No. 2778, 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.

The bill was read for the third time and placed upon its final passage.

The question was taken on the passage of the bill and the roll was called. There were 132 yeas and 0 nays as follows:

Those who voted in the affirmative were:

Abrams       Farrell      Knoblach     Olson, M.    Solberg
Anderson, B. Finseth      Koppendrayer Onnen        Stanek
Anderson, R. Frerichs     Kraus        Opatz        Sviggum
Bakk         Garcia       Krinkie      Orenstein    Swenson, D.
Bertram      Girard       Larsen       Orfield      Swenson, H.
Bettermann   Goodno       Leighton     Osskopp      Sykora
Bishop       Greenfield   Leppik       Osthoff      Tomassoni
Boudreau     Greiling     Lieder       Ostrom       Tompkins
Bradley      Gunther      Long         Otremba      Trimble
Broecker     Haas         Lourey       Ozment       Tuma
Brown        Hackbarth    Luther       Paulsen      Tunheim
Carlson, L.  Harder       Lynch        Pawlenty     Van Dellen
Carlson, S.  Hasskamp     Macklin      Pellow       Van Engen
Carruthers   Hausman      Mahon        Pelowski     Vickerman
Clark        Holsten      Mares        Perlt        Wagenius
Commers      Huntley      Mariani      Peterson     Warkentin
Cooper       Jaros        Marko        Pugh         Weaver
Daggett      Jefferson    McCollum     Rest         Wejcman
Dauner       Jennings     McElroy      Rhodes       Wenzel
Davids       Johnson, A.  McGuire      Rice         Winter
Dawkins      Johnson, R.  Milbert      Rostberg     Wolf
Dehler       Johnson, V.  Molnau       Rukavina     Worke
Delmont      Kalis        Mulder       Sarna        Workman
Dempsey      Kelley       Munger       Schumacher   Sp.Anderson,I
Dorn         Kelso        Murphy       Seagren      
Entenza      Kinkel       Ness         Skoglund     
Erhardt      Knight       Olson, E.    Smith        

Carruthers, from the Committee on Rules and Legislative Administration, pursuant to rule 1.09, designated the following bills as Special Orders to be acted upon immediately preceding General Orders for today, Monday, February 12, 1996:

H. F. Nos. 2013, 2163, 2044, 2207, 2055, 2127 and 2411.

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.

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      Knoblach     Olson, M.    Stanek
Anderson, B. Finseth      Koppendrayer Onnen        Sviggum
Anderson, R. Frerichs     Kraus        Opatz        Swenson, D.
Bakk         Garcia       Krinkie      Orenstein    Swenson, H.
Bertram      Girard       Larsen       Orfield      Sykora
Bettermann   Goodno       Leighton     Osskopp      Tomassoni
Bishop       Greenfield   Leppik       Osthoff      Tompkins
Boudreau     Greiling     Lieder       Ostrom       Trimble
Bradley      Gunther      Long         Otremba      Tuma
Broecker     Haas         Lourey       Ozment       Tunheim
Brown        Hackbarth    Luther       Paulsen      Van Dellen
Carlson, L.  Harder       Lynch        Pawlenty     Van Engen
Carlson, S.  Hasskamp     Macklin      Pellow       Vickerman
Carruthers   Hausman      Mahon        Pelowski     Wagenius
Clark        Holsten      Mares        Perlt        Warkentin
Commers      Huntley      Mariani      Peterson     Weaver
Cooper       Jaros        Marko        Pugh         Wejcman
Daggett      Jefferson    McCollum     Rest         Wenzel
Dauner       Jennings     McElroy      Rhodes       Winter
Davids       Johnson, A.  McGuire      Rice         Wolf
Dawkins      Johnson, R.  Milbert      Rostberg     Worke
Dehler       Johnson, V.  Molnau       Rukavina     Workman
Delmont      Kalis        Mulder       Sarna        Sp.Anderson,I
Dempsey      Kelley       Munger       Schumacher   
Dorn         Kelso        Murphy       Seagren      
Entenza      Kinkel       Ness         Skoglund     
Erhardt      Knight       Olson, E.    Smith        

H. F. No. 2163, A bill for an act relating to motor carriers; prescribing conditions for granting medical waivers to truck drivers; exempting drivers transporting agricultural items from certain federal regulations; allowing electronic filing of financial responsibility forms; amending Minnesota Statutes 1994, sections 221.0314, by adding subdivisions; 221.033, subdivision 2a; and 221.141, by adding a subdivision; Minnesota Statutes 1995 Supplement, section 221.0314, subdivision 3.

The bill was read for the third time and placed upon its final passage.

The question was taken on the passage of the bill and the roll was called. There were 132 yeas and 0 nays as follows:

Those who voted in the affirmative were:

Abrams       Farrell      Knoblach     Olson, M.    Solberg
Anderson, B. Finseth      Koppendrayer Onnen        Stanek
Anderson, R. Frerichs     Kraus        Opatz        Sviggum
Bakk         Garcia       Krinkie      Orenstein    Swenson, D.
Bertram      Girard       Larsen       Orfield      Swenson, H.
Bettermann   Goodno       Leighton     Osskopp      Sykora
Bishop       Greenfield   Leppik       Osthoff      Tomassoni
Boudreau     Greiling     Lieder       Ostrom       Tompkins
Bradley      Gunther      Long         Otremba      Trimble
Broecker     Haas         Lourey       Ozment       Tuma
Brown        Hackbarth    Luther       Paulsen      Tunheim
Carlson, L.  Harder       Lynch        Pawlenty     Van Dellen
Carlson, S.  Hasskamp     Macklin      Pellow       Van Engen
Carruthers   Hausman      Mahon        Pelowski     Vickerman
Clark        Holsten      Mares        Perlt        Wagenius
Commers      Huntley      Mariani      Peterson     Warkentin
Cooper       Jaros        Marko        Pugh         Weaver
Daggett      Jefferson    McCollum     Rest         Wejcman
Dauner       Jennings     McElroy      Rhodes       Wenzel
Davids       Johnson, A.  McGuire      Rice         Winter
Dawkins      Johnson, R.  Milbert      Rostberg     Wolf
Dehler       Johnson, V.  Molnau       Rukavina     Worke
Delmont      Kalis        Mulder       Sarna        Workman
Dempsey      Kelley       Munger       Schumacher   Sp.Anderson,I
Dorn         Kelso        Murphy       Seagren      
Entenza      Kinkel       Ness         Skoglund     
Erhardt      Knight       Olson, E.    Smith        

H. F. No. 2044 was reported to the House.

Skoglund, Davids and Osthoff moved to amend H. F. No. 2044, the first engrossment, as follows:

Page 2, after line 11, insert:

"(c) This section does not apply where the issuer of coverage described in subdivision 1 retroactively terminates coverage of an employee, dependent, or other covered person solely because the group sponsor did not notify the issuer of the coverage in advance of the employee's voluntary or involuntary termination from employment, provided that the retroactive termination of coverage is effective no earlier than the end of the day of termination from employment. This paragraph does not affect continuation rights under federal or state law and does not limit the effect of section 62Q.16."

The motion prevailed and the amendment was adopted.

H. F. No. 2044, A bill for an act relating to insurance; group life and health coverages; prohibiting retroactive termination of a person's coverage without the consent of the covered person; proposing coding for new law in Minnesota Statutes, chapter 60A.

The bill was read for the third time, as amended, and placed upon its final passage.

The question was taken on the passage of the bill and the roll was called. There were 132 yeas and 0 nays as follows:

Those who voted in the affirmative were:

Abrams       Farrell      Knoblach     Olson, M.    Solberg
Anderson, B. Finseth      Koppendrayer Onnen        Stanek
Anderson, R. Frerichs     Kraus        Opatz        Sviggum
Bakk         Garcia       Krinkie      Orenstein    Swenson, D.
Bertram      Girard       Larsen       Orfield      Swenson, H.
Bettermann   Goodno       Leighton     Osskopp      Sykora
Bishop       Greenfield   Leppik       Osthoff      Tomassoni
Boudreau     Greiling     Lieder       Ostrom       Tompkins
Bradley      Gunther      Long         Otremba      Trimble
Broecker     Haas         Lourey       Ozment       Tuma
Brown        Hackbarth    Luther       Paulsen      Tunheim
Carlson, L.  Harder       Lynch        Pawlenty     Van Dellen
Carlson, S.  Hasskamp     Macklin      Pellow       Van Engen
Carruthers   Hausman      Mahon        Pelowski     Vickerman
Clark        Holsten      Mares        Perlt        Wagenius
Commers      Huntley      Mariani      Peterson     Warkentin
Cooper       Jaros        Marko        Pugh         Weaver
Daggett      Jefferson    McCollum     Rest         Wejcman
Dauner       Jennings     McElroy      Rhodes       Wenzel
Davids       Johnson, A.  McGuire      Rice         Winter
Dawkins      Johnson, R.  Milbert      Rostberg     Wolf
Dehler       Johnson, V.  Molnau       Rukavina     Worke
Delmont      Kalis        Mulder       Sarna        Workman
Dempsey      Kelley       Munger       Schumacher   Sp.Anderson,I
Dorn         Kelso        Murphy       Seagren      
Entenza      Kinkel       Ness         Skoglund     
Erhardt      Knight       Olson, E.    Smith        

H. F. No. 2207, A bill for an act relating to the environment; adopting changes to the Midwest Interstate Compact on Low-Level Radioactive Waste; making conforming changes; amending Minnesota Statutes 1994, sections 116C.831; 116C.832, subdivision 1, and by adding a subdivision; 116C.833, subdivision 2; 116C.834, subdivision 1, and by adding a subdivision; 116C.835, subdivision 6; 116C.836, subdivision 2; and 116C.842, by adding subdivisions; proposing coding for new law in Minnesota Statutes, chapter 116C; repealing Minnesota Statutes 1994, sections 116C.832, subdivisions 2, 7, and 8; 116C.837; 116C.839; 116C.840, subdivision 3; 116C.841; 116C.842, subdivisions 1, 2, and 3; 116C.845; 116C.846; 116C.847; and 116C.848.

The bill was read for the third time and placed upon its final passage.

The question was taken on the passage of the bill and the roll was called. There were 132 yeas and 0 nays as follows:

Those who voted in the affirmative were:

Abrams       Farrell      Knoblach     Olson, M.    Solberg
Anderson, B. Finseth      Koppendrayer Onnen        Stanek
Anderson, R. Frerichs     Kraus        Opatz        Sviggum
Bakk         Garcia       Krinkie      Orenstein    Swenson, D.
Bertram      Girard       Larsen       Orfield      Swenson, H.
Bettermann   Goodno       Leighton     Osskopp      Sykora
Bishop       Greenfield   Leppik       Osthoff      Tomassoni
Boudreau     Greiling     Lieder       Ostrom       Tompkins
Bradley      Gunther      Long         Otremba      Trimble
Broecker     Haas         Lourey       Ozment       Tuma
Brown        Hackbarth    Luther       Paulsen      Tunheim
Carlson, L.  Harder       Lynch        Pawlenty     Van Dellen
Carlson, S.  Hasskamp     Macklin      Pellow       Van Engen
Carruthers   Hausman      Mahon        Pelowski     Vickerman
Clark        Holsten      Mares        Perlt        Wagenius
Commers      Huntley      Mariani      Peterson     Warkentin
Cooper       Jaros        Marko        Pugh         Weaver
Daggett      Jefferson    McCollum     Rest         Wejcman
Dauner       Jennings     McElroy      Rhodes       Wenzel
Davids       Johnson, A.  McGuire      Rice         Winter
Dawkins      Johnson, R.  Milbert      Rostberg     Wolf
Dehler       Johnson, V.  Molnau       Rukavina     Worke
Delmont      Kalis        Mulder       Sarna        Workman
Dempsey      Kelley       Munger       Schumacher   Sp.Anderson,I
Dorn         Kelso        Murphy       Seagren      
Entenza      Kinkel       Ness         Skoglund     
Erhardt      Knight       Olson, E.    Smith        

H. F. No. 2055, A bill for an act relating to telecommunications; requiring notice to customers of the right to require written authorization before changing intrastate telecommunications carrier or local telephone company; amending Minnesota Statutes 1994, section 237.66, subdivision 3, and by adding a subdivision; Minnesota Statutes 1995 Supplement, section 237.16, subdivision 8.

The bill was read for the third time and placed upon its final passage.

The question was taken on the passage of the bill and the roll was called. There were 132 yeas and 0 nays as follows:

Those who voted in the affirmative were:

Abrams       Farrell      Knoblach     Olson, M.    Solberg
Anderson, B. Finseth      Koppendrayer Onnen        Stanek
Anderson, R. Frerichs     Kraus        Opatz        Sviggum
Bakk         Garcia       Krinkie      Orenstein    Swenson, D.
Bertram      Girard       Larsen       Orfield      Swenson, H.
Bettermann   Goodno       Leighton     Osskopp      Sykora
Bishop       Greenfield   Leppik       Osthoff      Tomassoni
Boudreau     Greiling     Lieder       Ostrom       Tompkins
Bradley      Gunther      Long         Otremba      Trimble
Broecker     Haas         Lourey       Ozment       Tuma
Brown        Hackbarth    Luther       Paulsen      Tunheim
Carlson, L.  Harder       Lynch        Pawlenty     Van Dellen
Carlson, S.  Hasskamp     Macklin      Pellow       Van Engen
Carruthers   Hausman      Mahon        Pelowski     Vickerman
Clark        Holsten      Mares        Perlt        Wagenius
Commers      Huntley      Mariani      Peterson     Warkentin
Cooper       Jaros        Marko        Pugh         Weaver
Daggett      Jefferson    McCollum     Rest         Wejcman
Dauner       Jennings     McElroy      Rhodes       Wenzel
Davids       Johnson, A.  McGuire      Rice         Winter
Dawkins      Johnson, R.  Milbert      Rostberg     Wolf
Dehler       Johnson, V.  Molnau       Rukavina     Worke
Delmont      Kalis        Mulder       Sarna        Workman
Dempsey      Kelley       Munger       Schumacher   Sp.Anderson,I
Dorn         Kelso        Murphy       Seagren      
Entenza      Kinkel       Ness         Skoglund     
Erhardt      Knight       Olson, E.    Smith        

H. F. No. 2127 was reported to the House.

Lynch moved to amend H. F. No. 2127, the first engrossment, as follows:

Page 1, line 14, strike "a"

Page 1, line 18, before "principal" insert "the deaf and hard-of-hearing services division of the department of human services as the"

Page 2, line 16, after "deaf" insert ", deaf-blind,"

Page 2, line 31, after "deaf" insert ", deaf-blind,"

Page 2, line 36, after the period insert "The commissioner of human services shall coordinate the work of the interagency management team and will receive legislative appropriations for the deaf and hard-of-hearing services division."

Page 4, line 6, strike "the" and insert "a"

Page 6, line 14, after "deaf" insert ", deaf-blind,"

The motion prevailed and the amendment was adopted.

H. F. No. 2127, A bill for an act relating to human services; changing provisions related to deaf and hard-of-hearing services division; amending Minnesota Statutes 1994, sections 256C.22; 256C.23; 256C.24, as amended; 256C.25, subdivision 1; 256C.26; and 256C.28, as amended; proposing coding for new law in Minnesota Statutes, chapter 256C; repealing Minnesota Statutes 1994, section 256C.27.

The bill was read for the third time, as amended, and placed upon its final passage.

The question was taken on the passage of the bill and the roll was called. There were 129 yeas and 1 nay as follows:

Those who voted in the affirmative were:

Abrams       Erhardt      Knoblach     Olson, E.    Smith
Anderson, B. Farrell      Koppendrayer Olson, M.    Solberg
Anderson, R. Finseth      Kraus        Onnen        Stanek
Bakk         Frerichs     Krinkie      Opatz        Sviggum
Bertram      Garcia       Larsen       Orenstein    Swenson, D.
Bettermann   Girard       Leighton     Orfield      Swenson, H.
Bishop       Goodno       Leppik       Osskopp      Sykora
Boudreau     Greenfield   Lieder       Osthoff      Tomassoni
Bradley      Greiling     Long         Ostrom       Tompkins
Broecker     Gunther      Lourey       Otremba      Trimble
Brown        Haas         Luther       Ozment       Tuma
Carlson, L.  Hackbarth    Lynch        Paulsen      Tunheim
Carlson, S.  Harder       Macklin      Pawlenty     Van Dellen
Carruthers   Hasskamp     Mahon        Pellow       Van Engen
Clark        Holsten      Mares        Pelowski     Vickerman
Commers      Huntley      Mariani      Peterson     Wagenius
Cooper       Jaros        Marko        Pugh         Warkentin
Daggett      Jefferson    McCollum     Rest         Weaver
Dauner       Johnson, A.  McElroy      Rhodes       Wejcman
Davids       Johnson, R.  McGuire      Rice         Wenzel
Dawkins      Johnson, V.  Milbert      Rostberg     Winter
Dehler       Kalis        Molnau       Rukavina     Wolf
Delmont      Kelley       Mulder       Sarna        Worke
Dempsey      Kelso        Munger       Schumacher   Workman
Dorn         Kinkel       Murphy       Seagren      Sp.Anderson,I
Entenza      Knight       Ness         Skoglund     

Jennings                  

H. F. No. 2411, 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.

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      Knoblach     Onnen        Stanek
Anderson, B. Finseth      Koppendrayer Opatz        Sviggum
Anderson, R. Frerichs     Kraus        Orenstein    Swenson, D.
Bakk         Garcia       Krinkie      Orfield      Swenson, H.
Bertram      Girard       Larsen       Osskopp      Sykora
Bettermann   Goodno       Leighton     Osthoff      Tomassoni
Bishop       Greenfield   Leppik       Ostrom       Tompkins
Boudreau     Greiling     Lieder       Otremba      Trimble
Bradley      Gunther      Long         Ozment       Tuma
Broecker     Haas         Lourey       Paulsen      Tunheim
Brown        Hackbarth    Luther       Pawlenty     Van Dellen
Carlson, L.  Harder       Lynch        Pellow       Van Engen
Carlson, S.  Hasskamp     Macklin      Pelowski     Vickerman
Carruthers   Hausman      Mahon        Perlt        Wagenius
Clark        Holsten      Mares        Peterson     Warkentin
Commers      Huntley      Mariani      Pugh         Weaver
Cooper       Jaros        McCollum     Rest         Wejcman
Daggett      Jefferson    McElroy      Rhodes       Wenzel
Dauner       Jennings     McGuire      Rice         Winter
Davids       Johnson, A.  Milbert      Rostberg     Wolf
Dawkins      Johnson, R.  Molnau       Rukavina     Worke
Dehler       Johnson, V.  Mulder       Sarna        Workman
Delmont      Kalis        Munger       Schumacher   Sp.Anderson,I
Dempsey      Kelley       Murphy       Seagren      
Dorn         Kelso        Ness         Skoglund     
Entenza      Kinkel       Olson, E.    Smith        
Erhardt      Knight       Olson, M.    Solberg      

Carruthers moved that the bills on General Orders for today be continued. The motion prevailed.

Abrams moved that his name be stricken as an author on H. F. No. 140. The motion prevailed.

Osthoff moved that his name be stricken as an author on H. F. No. 1703. The motion prevailed.

Rest moved that the name of Abrams be added as an author on H. F. No. 1704. The motion prevailed.

Kahn moved that the name of Carruthers be added as an author on H. F. No. 2036. The motion prevailed.

Bettermann moved that the name of Erhardt be added as an author on H. F. No. 2174. The motion prevailed.

Dorn moved that the names of Sviggum and Goodno be added as authors on H. F. No. 2511. The motion prevailed.

Macklin moved that the name of Tompkins be added as an author on H. F. No. 2538. The motion prevailed.

Cooper moved that the name of Johnson, V., be added as an author on H. F. No. 2558. The motion prevailed.

Cooper moved that the name of Bradley be added as an author on H. F. No. 2624. The motion prevailed.

Mahon moved that the names of Rhodes and Ozment be added as authors on H. F. No. 2728. The motion prevailed.

Krinkie moved that the name of Hausman be added as an author on H. F. No. 3000. The motion prevailed.

Jennings moved that the name of Rostberg be added as an author on H. F. No. 3020. The motion prevailed.

McGuire moved that the names of Luther and Weaver be added as authors on H. F. No. 3087. The motion prevailed.

Solberg moved that the name of Kinkel be added as an author on H. F. No. 3162. The motion prevailed.

Wenzel moved that the name of Jaros be added as an author on H. F. No. 3163. The motion prevailed.

Gunther moved that the following statement be printed in the Journal of the House: "It was my intention to vote in the affirmative on Thursday, February 8, 1996, when the vote was taken on the final passage of H. F. No. 2558." The motion prevailed.

Mahon moved that the following statement be printed in the Journal of the House: "It was my intention to vote in the affirmative on Thursday, February 8, 1996, when the vote was taken on the final passage of H. F. No. 2558." The motion prevailed.

Swenson, H., moved that the following statement be printed in the Journal of the House: "It was my intention to vote in the affirmative on Thursday, February 8, 1996, when the vote was taken on the final passage of H. F. No. 2634." The motion prevailed.

Wejcman moved that H. F. No. 2069 be recalled from the Committee on Judiciary and be re-referred to the Committee on Health and Human Services. The motion prevailed.

Onnen moved that H. F. No. 235 be returned to its author. The motion prevailed.

Davids moved that H. F. No. 1660 be returned to its author. The motion prevailed.

Brown moved that H. F. No. 2922 be returned to its author. The motion prevailed.

Kinkel moved that H. F. No. 3112 be returned to its author. The motion prevailed.

There being no objection, the order of business reverted to Reports of Standing Committees.

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

H. F. No. 3038, A bill for an act relating to education; providing for capital improvements for the center for arts education, the residential academies at Faribault, and for school districts and libraries; clarifying approved costs for a magnet school facility; appropriating money; amending Minnesota Statutes 1994, sections 124C.498, subdivision 3; and 134.45, subdivision 5; Minnesota Statutes 1995 Supplement, sections 124C.498, subdivision 2; and 134.45, subdivision 2.

Reported the same back with the following amendments:

Page 1, after line 11, insert:

Page 1, line 13, before "The" insert "After the summary in Article 2," and after "sums" insert "in this act"

Page 1, after line 17, insert:

"APPROPRIATIONS

$

Page 1, delete lines 26 and 27

Page 2, line 21, after "to" insert "local government units to design, furnish, equip,"

Page 3, lines 1 and 15, after "to" insert "local government units to design, furnish, equip,"

Page 3, line 34, after "to" insert "design, furnish, equip,"

Page 3, line 56, after "in-kind" insert "capital"

Page 3, after line 56, insert:

"(e) Grants made according to this subdivision are subject to Minnesota Statutes, section 16A.695."

Page 7, line 17, after the period, insert "However,"

Page 7, delete lines 22 to 32 and insert:

Section 1. BOARD OF TRUSTEES OF THE MINNESOTA STATE

COLLEGES AND UNIVERSITIES 112,000,000

Subdivision 1. To the board of trustees of the Minnesota state colleges and universities for the purposes specified in this section.

Subd. 2. Higher education asset preservation and renewal 54,525,000

This appropriation is for the purposes specified in Minnesota Statutes, section 135A.046.

(a) Systemwide 27,970,000

For code compliance, including health and safety, ADA requirements, hazardous material abatement, access improvement or air quality improvement, building or infrastructure repairs to preserve existing buildings or renewal to support the programmatic needs of the campuses throughout the system.

(b) Facility Renewal and Land Acquisition26,555,000

(1) Mankato State University

$270,000 to construct a hazardous waste facility

(2) Winona State University

$2,200,000 to construct a chiller plant addition and install two chillers

(3) Anoka-Ramsey Community College

$4,510,000 to replace the energy plant and relocate a loading dock

(4) St. Cloud State University

$3,500,000 to upgrade high voltage system and expand utility tunnels

(5) Hutchinson Technical College

$2,000,000 to design and modify existing HVAC systems

(6) Vermillion Community College

$1,890,000 to design and construct improvements for code compliance and infrastructure

(7) Mankato State University

$1,050,000 is to upgrade the chiller plant

(8) Minneapolis Community College

$4,330,000 to design and construct necessary mechanical and electrical upgrades

(9) Willmar Technical College

$2,150,000 to modify the HVAC system

(10) Mesabi Community College

$1,230,000 to design and construct improvements for code compliance and infrastructure

(11) Staples Technical College

$225,000 to prepare plans and specifications for replacement classroom

(12) Moorhead State University

$1,800,000 for constructing storm drainage system

(13) Moorhead State University

$1,400,000 to complete the acquisition of land adjacent to the campus

Subd. 3. North Hennepin Community College 3,980,000

To remodel and construct phase II of the learning resource center.

Subd. 4. Anoka-Ramsey Community College 8,500,000

To design, remodel, and construct student services, food service, and new science addition.

Subd. 5. Metropolitan State University 3,800,000

To demolish the power plant annex portion and construct new annex space in building C.

Subd. 6. Metropolitan State University 3,400,000

To acquire land adjacent to the St. Paul campus, for costs involved in continued general campus planning, and to plan for, acquire, or

prepare a site for Metro State's permanent west metropolitan campus. The system office shall determine the process for site selection. In comparing alternative sites, the system shall consider the likelihood of significant enrollment growth at Metro State in the 21st century, and select a site with the capacity necessary for efficiently accommodating that growth. Priority shall be given to sites that are under the authority of the board. Prior to entering any agreements regarding a potential site, the board shall report its recommendations to the 1997 legislature.

Subd. 7. St. Paul Technical College 4,500,000

To remodel student services areas and a chemical technology lab. Library remodeling plans must be forwarded to the library task force.

Subd. 8. Alexandria Technical College 300,000

To construct parking facilities for independent school district No. 206 and the technical college to settle land acquisition issues from merger.

Subd. 9. St. Cloud State University 29,995,000

To construct a new library.

Subd. 10. Fond du Lac Community College 3,000,000

To construct a residence facility that provides cultural education experiences for Indian students to meet the statutory requirement that the campus serve statewide Indian needs. The board may increase this appropriation through other sources, including the use of revenue bonds under Minnesota Statutes, sections 136A.25 to 136A.42.

Subd. 11. Itasca Community College

The board may use up to $600,000 in revenue bonds under Minnesota Statutes, sections 136A.25 to 136A.42, toward the purchase of Wannigan Residence Hall. The balance of the purchase price must come from nonstate sources or from a grant from a state agency. The board may not provide a grant.

Subd. 12. Hibbing Community and Technical Colleges

The legislature recognizes that Hibbing community and technical colleges have made a serious commitment to cooperative planning. The legislature encourages the Hibbing campuses to continue to move toward consolidation in programs and services, while considering alternative approaches to meeting their physical plant needs.

Sec. 2. [LAND TRANSFER.]

Notwithstanding other law, the board of trustees of the Minnesota state colleges and universities shall without compensation transfer to the school board of independent school district No. 347 up to seven acres in the southwest corner of approximately 40 acres of undeveloped technical college property previously transferred by the school board and legally described as "The Southeast Quarter of the Southwest Quarter (SE 1/4 of the SW 1/4) of Section 4, Township 119, Range 35." The number of acres transferred shall be as specified by the school board. Unless and until the school board elects to develop this property for its own educational purposes, the board of trustees of the

Minnesota state colleges and universities shall have access to the property at no cost for the purpose of agricultural instruction. If the school board elects to develop the property, it shall do so only for an educational purpose. If the school board develops the property for other than an educational purpose, uses the property without developing it, or no longer desires to hold the property, the property shall revert to the state on behalf of the board of trustees of the Minnesota state colleges and universities.

Sec. 3. [136F.65] [DEBT SERVICE ASSESSMENT.]

The board may not assess a greater portion of debt service to a campus for a capital project that was not recommended by the board than the portion assessed for a project that the board recommended.

Sec. 4. Laws 1994, chapter 643, section 35, subdivision 1, is amended to read:

Subdivision 1. [HIGHER EDUCATION BOARDS MINNESOTA STATE COLLEGES AND UNIVERSITIES.] The state board of technical colleges, the state board for community colleges, the state university board, or their successors trustees of the Minnesota state colleges and universities shall pay one-third of the debt service on state bonds sold to finance projects authorized by this act. Appropriations for higher education asset preservation and renewal and for libraries are not subject to the one-third debt service requirement. After each sale of general obligation bonds, the commissioner of finance shall notify the state board of technical colleges, the state board for community colleges, the state university board, and the higher education board of trustees of the amounts for which each system is assessed of for each year for the life of the bonds.

Sec. 5. Laws 1994, chapter 643, section 35, subdivision 3, is amended to read:

Subd. 3. [METHOD OF PAYMENT.] The commissioner shall reduce each system's assessment each year under subdivisions 1 and 2 by one-third of the net income from investment of general obligation bond proceeds that must be allocated among between the systems in proportion to the amount of principal and interest otherwise required to be paid by each. Each higher education system shall pay its resulting net assessment to the commissioner of finance by December 1 each year. If a higher education system fails to make a payment when due, the commissioner of finance shall reduce allotments for appropriations from the general fund otherwise available to the system and apply the amount of the reduction to cover the missed debt service payment. The commissioner of finance shall credit the payments received from the higher education systems to the bond debt service account in the state bond fund each December 1 before money is transferred from the general fund under Minnesota Statutes, section 16A.641, subdivision 10.

Sec. 6. [DEBT SERVICE.]

The commissioner of finance must not assess post-secondary governing boards any portion of the debt service for general obligation bonds sold to finance capital improvement projects authorized in this act.

Section 1. UNIVERSITY OF MINNESOTA BOARD OF REGENTS OF THE

UNIVERSITY OF MINNESOTA 112,000,000

Subdivision 1. To the board of regents of the University of Minnesota for the purposes specified in this section.

Subd. 2. Higher education asset preservation and renewal 59,250,000

This appropriation is for the purposes specified in section 135A.046.

(a) Systemwide 25,750,000

This appropriation is for code compliance, including health and safety, ADA requirements, hazardous material abatement, access improvement, the Crookston connecting road, or air quality improvement, building or infrastructure repairs to preserve existing buildings or renewal to support the programmatic needs of the campuses throughout the system.

(b) Facility Renewal 33,500,000

(1) Twin Cities

$8,500,000 is for classroom renewal

(2) Twin Cities

$12,800,000 is to remodel and renovate Haecker Hall

(3) Duluth

$3,200,000 is to renew academic space

(4) Twin Cities

$5,700,000 is to remodel the Management and Economics building

(5) Morris

$2,300,000 is to repair the Humanities and Fine Arts building

(6) Agricultural Experiment Stations

$1,000,000 is for renewal at stations around the state

Subd. 3. Twin Cities 37,950,000

To construct the Minnesota library access center

Subd. 4. Twin Cities 6,500,000

To remodel the molecular and cellular therapeutics facility

and to construct a magnetic resonance research building.

Subd. 5. Morris 3,000,000

To design through construction documents a new science building.

Subd. 6. Duluth 2,500,000

To design through construction documents a new library.

Subd. 7. Crookston 2,800,000

To design and construct a controlled environment science facility.

Sec. 2. [DEBT SERVICE.]

The commissioner of finance must not assess post-secondary governing boards any portion of the debt service for general obligation bonds sold to finance capital improvement projects authorized in this act.

Section 1. [BOND PROCEEDS AUTHORIZATION.]

To provide the money appropriated in this act from the bond proceeds fund the commissioner of finance, on request of the governor, shall sell and issue bonds of the state in an amount up to $249,979,000 in the manner, upon the terms, and with the effect prescribed by Minnesota Statutes, sections 16A.631 to 16A.675, and by the Minnesota Constitution, article XI, sections 4 to 7.

Section 1. [EFFECTIVE DATE.]

Articles 1 to 5 are effective the day following their final enactment."

Correct the subdivision and section totals and the summaries by fund accordingly

Renumber the sections in sequence and correct internal references

Amend the title as follows:

Page 1, line 3, after the first "the" insert "Minnesota state colleges and universities, the university of Minnesota, the"

Page 1, line 6, after "facility;" insert "requiring a land transfer; authorizing state bonds; clarifying and limiting debt service allocation in certain cases;"

Page 1, line 10, before the period, insert "; Laws 1994, chapter 643, section 35, subdivisions 1 and 3; proposing coding for new law in Minnesota Statutes, chapter 136F"

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

The report was adopted.

Carruthers moved that when the House adjourns today it adjourn until 2:30 p.m., Thursday, February 15, 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 15, 1996.

Edward A. Burdick, Chief Clerk, House of Representatives

Comments: webmaster@house.leg.state.mn.us