Kinkel was excused.

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

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

H. F. No. 140, A bill for an act relating to state government; proposing an amendment to the Minnesota Constitution, article V, sections 1, 3, and 4; article VIII, section 2; article XI, sections 7 and 8; abolishing the office of

state treasurer; transferring or repealing the powers, responsibilities, and duties of the state treasurer; amending Minnesota Statutes 1994, sections 9.011, subdivision 1; and 11A.03.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. [TRANSFER.]

The duties of the commissioner of finance and the department of finance are transferred to the state treasurer under Minnesota Statutes, section 15.039. Any duties previously transferred from the state auditor to the commissioner or department of finance are transferred to the state auditor under Minnesota Statutes, section 15.039.

Sec. 2. Minnesota Statutes 1995 Supplement, section 15.01, is amended to read:

15.01 [DEPARTMENTS OF THE STATE.]

The following agencies are designated as the departments of the state government: the department of administration; the department of agriculture; the department of commerce; the department of corrections; the department of children, families, and learning; the department of economic security; the department of trade and economic development; the department of finance; the department of health; the department of human rights; the department of labor and industry; the department of military affairs; the department of natural resources; the department of employee relations; the department of public safety; the department of public service; the department of human services; the department of revenue; the department of transportation; the department of veterans affairs; and their successor departments.

Sec. 3. Minnesota Statutes 1994, section 15.06, subdivision 1, is amended to read:

Subdivision 1. [APPLICABILITY.] This section applies to the following departments or agencies: the departments of administration, agriculture, commerce, corrections, economic security, education, employee relations, trade and economic development, finance, health, human rights, labor and industry, natural resources, public safety, public service, human services, revenue, transportation, and veterans affairs; the housing finance and pollution control agencies; the office of commissioner of iron range resources and rehabilitation; the bureau of mediation services; and their successor departments and agencies. The heads of the foregoing departments or agencies are "commissioners."

Sec. 4. Minnesota Statutes 1995 Supplement, section 15A.081, subdivision 1, is amended to read:

Subdivision 1. [SALARY RANGES.] The governor shall set the salary rate within the ranges listed below for positions specified in this subdivision, upon approval of the legislative coordinating commission and the legislature as provided by section 3.855:

$57,500-$78,500

Commissioner of finance;

Commissioner of children, families, and learning;

Commissioner of transportation;

Commissioner of human services;

Commissioner of revenue;

Commissioner of public safety;

Executive director, state board of investment;

$50,000-$67,500

Commissioner of administration;

Commissioner of agriculture;

Commissioner of commerce;

Commissioner of corrections;

Commissioner of economic security;

Commissioner of employee relations;

Commissioner of health;

Commissioner of labor and industry;

Commissioner of natural resources;

Commissioner of trade and economic development;

Chief administrative law judge; office of administrative hearings;

Commissioner, pollution control agency;

Director, office of environmental assistance;

Commissioner, housing finance agency;

Executive director, public employees retirement association;

Executive director, teacher's retirement association;

Executive director, state retirement system;

$42,500-$60,000

Commissioner of human rights;

Commissioner, department of public service;

Commissioner of veterans affairs;

Commissioner, bureau of mediation services;

Commissioner, public utilities commission;

Member, transportation regulation board;

Ombudsman for corrections;

Ombudsman for mental health and retardation.

Sec. 5. [REVISOR INSTRUCTION.]

In the next and subsequent editions of Minnesota Statutes, the revisor of statutes shall, as necessary to carry out section 1, substitute the term "state treasurer" for the terms "commissioner of finance" and "department of finance," and for the terms "commissioner" and "department" where these terms refer to the commissioner of finance and the

department of finance. If necessary, the revisor shall prepare a bill for the 1997 legislative session making any statutory changes as needed as a result of the transfer in section 1.

Sec. 6. [REPEALER.]

Minnesota Statutes 1994, sections 16A.01, subdivisions 1, 2, and 3; and 16A.011, subdivisions 7 and 9, are repealed.

Sec. 7. [EFFECTIVE DATE.]

Sections 1 to 6 are effective July 1, 1998."

Delete the title and insert:

"A bill for an act relating to state government; abolishing the department of finance; transferring duties; amending Minnesota Statutes 1994, section 15.06, subdivision 1; Minnesota Statutes 1995 Supplement, sections 15.01; and 15A.081, subdivision 1; repealing Minnesota Statutes 1994, sections 16A.01, subdivisions 1, 2, and 3; and 16A.011, subdivisions 7 and 9."

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. 1157, A bill for an act relating to occupations and professions; board of psychology; modifying board duties; changing types of licensure; changing licensure provisions; providing for discipline; providing penalties; amending Minnesota Statutes 1994, sections 148.88; 148.881; 148.89, subdivisions 2a, 5, and by adding a subdivision; 148.90, subdivisions 1 and 2; 148.905, subdivision 1; 148.911; 148.925; 148.941, subdivisions 2, 4, and by adding subdivisions; 148.96; 148.975; 148.98; 253B.02, subdivision 11; Minnesota Statutes 1995 Supplement, section 147.09; proposing coding for new law in Minnesota Statutes, chapter 148; repealing Minnesota Statutes 1994, sections 148.89, subdivisions 6, 7, and 8; 148.91; 148.93; 148.951; and 148.97; Minnesota Statutes 1995 Supplement, section 148.921.

Reported the same back with the following amendments:

Page 21, delete section 20

Page 21, line 34, delete "7" and insert "6"

Renumber the sections in sequence

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. 1302, A bill for an act relating to agriculture; changing the definition of "eligible person" for purposes of agricultural chemical response; amending Minnesota Statutes 1994, section 18E.02, subdivision 5.

Reported the same back with the following amendments:

Page 2, after line 9, insert:

"Sec. 2. [21.901] [BRAND NAME REGISTRATION.]

The owner or originator of a variety of nonhybrid seed that is to be sold in Minnesota must annually register the variety with the commissioner if the variety is to be sold only under a brand name. The registration must include the brand name and the variety of seed. The brand name for a blend or mixture does not need to be registered.

The commissioner shall set the amount of the fee for registration of a brand name under this section.

Sec. 3. [EFFECTIVE DATE.]

Section 2 is effective the day after final enactment."

Amend the title as follows:

Page 1, line 4, after the semicolon, insert "providing for brand name registration of certain seeds;"

Page 1, line 5, after "5" insert "; proposing coding for new law in Minnesota Statutes, chapter 21"

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.

Pursuant to Senate Concurrent Resolution No. 12, H. F. No. 1302 was re-referred to the Committee on Rules and Legislative Administration.

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

H. F. No. 1404, A bill for an act relating to transportation; authorizing use of unmarked vehicles by division of disease prevention and control of the department of health and providing for passenger vehicle classification license plates to be issued for those vehicles; allowing commissioner of transportation to act as agent to accept federal money for nonpublic organizations for transportation purposes; increasing maximum lump sum utility adjustment amount allowed for relocating utility facility; eliminating percentage limit for funding transportation research projects and providing for federal research funds and research partnerships; allowing counties more authority in disbursing certain state-aid highway funds; regulating erection of highway signs identifying entrance into municipality; eliminating requirement to have permit identifying number affixed to highway billboard; providing for use and maintenance of hydrants located within right-of-way of public roads; eliminating legislative route No. 331 from trunk highway system and turning it back to the jurisdiction of Fillmore county; making technical corrections; amending Minnesota Statutes 1994, sections 16B.54, subdivision 2; 161.085; 161.36, subdivisions 1, 2, 3, and 4; 161.46, subdivision 3; 161.53; 162.08, subdivisions 4 and 7; 162.14, subdivision 6; 168.012, subdivision 1; 173.02, subdivision 6; 173.07, subdivision 1; 174.04; and 222.37, subdivision 1; proposing coding for new law in Minnesota Statutes, chapter 173; repealing Minnesota Statutes 1994, sections 161.086; 161.115, subdivision 262.

Reported the same back with the following amendments:

Page 10, after line 29, insert:

"Sec. 13. Minnesota Statutes 1994, section 169.85, is amended to read:

169.85 [WEIGHING; PENALTY.]

The driver of a vehicle which has been lawfully stopped may be required by a peace officer to submit the vehicle and load to a weighing by means of portable or stationary scales, and the peace officer may require that the vehicle be driven to the nearest available scales if the distance to the scales is no further than five miles, or if the distance from the point where the vehicle is stopped to the vehicle's destination is not increased by more than ten miles as

a result of proceeding to the nearest available scales. Official traffic control devices as authorized by section 169.06 may be used to direct the driver to the nearest scale. When a truck weight enforcement operation is conducted by means of portable or stationary scales and signs giving notice of the operation are posted within the highway right-of-way and adjacent to the roadway within two miles of the operation, the driver of a truck or combination of vehicles registered for or weighing in excess of 12,000 pounds, and the driver of a charter bus, except a bus registered in Minnesota, shall proceed to the scale site and submit the vehicle to weighing and inspection.

Upon weighing a vehicle and load, as provided in this section, an officer may require the driver to stop the vehicle in a suitable place and remain standing until a portion of the load is removed that is sufficient to reduce the gross weight of the vehicle to the limit permitted under section 169.825. A suitable place is a location where loading or tampering with the load is not prohibited by federal, state, or local law, rule or ordinance. A driver may be required to unload a vehicle only if the weighing officer determines that (a) on routes subject to the provisions of section 169.825, the weight on an axle exceeds the lawful gross weight prescribed by section 169.825, by 2,000 pounds or more, or the weight on a group of two or more consecutive axles in cases where the distance between the centers of the first and last axles of the group under consideration is ten feet or less exceeds the lawful gross weight prescribed by section 169.825, by 4,000 pounds or more; or (b) on routes designated by the commissioner in section 169.832, subdivision 11, the overall weight of the vehicle or the weight on an axle or group of consecutive axles exceeds the maximum lawful gross weights prescribed by section 169.825; or (c) the weight is unlawful on an axle or group of consecutive axles on a road restricted in accordance with section 169.87. Material unloaded must be cared for by the owner or driver of the vehicle at the risk of the owner or driver.

A driver of a vehicle who fails or refuses to stop and submit the vehicle and load to a weighing as required in this section, or who fails or refuses, when directed by an officer upon a weighing of the vehicle, to stop the vehicle and otherwise comply with the provisions of this section, is guilty of a misdemeanor."

Renumber remaining sections in sequence

Amend the title as follows:

Page 1, line 15, after the semicolon, insert "exempting charter buses from certain requirements of truck weight enforcement operations;"

Page 1, line 27, after the second semicolon, insert "169.85;"

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. 1800, A bill for an act relating to local government; requiring a sustainable development planning guide and a model ordinance to be developed for local government use by the office of strategic and long-range planning; proposing coding for new law in Minnesota Statutes, chapter 4A.

Reported the same back with the following amendments:

Page 1, line 18, delete "1996" and insert "1997"

Page 1, line 21, before the period, insert ", based on the principles of sustainable development in section 4A.08"

Page 1, line 23, delete "1996" and insert "1997"

Page 1, line 25, delete "adopt" and insert "prepare"

Page 2, after line 13, insert:

"Sec. 2. [4A.08] [PRINCIPLES OF SUSTAINABLE DEVELOPMENT.]

The state adopts the following principles of sustainable development:

(1) The ability of future generations to meet their own needs must be given primary consideration in deciding on actions to be taken today.

(2) All units of government and corporate and private citizens have a responsibility to help sustain a healthy community, economy, and environment, and the involvement of all interests is necessary to achieve sustainable development.

(3) A sustainable society requires opportunities for meaningful employment and participation in all decisions that affect one's quality of life.

(4) Social, economic, and natural systems are interdependent and our well-being depends on the health of these systems. Ecosystems provide the natural functions upon which people and economies depend. Ecosystems' carrying capacity must be considered, preserved, and restored.

(5) Social, economic, and biological diversity contributes to society's stability and long-term sustainability.

(6) A sustainable supply of energy and other natural resources requires efficient resource use, including the reuse and recycling of resources, and development of market-based incentives to reduce resource consumption and waste.

(7) Clear goals and measurable indicators must be developed and applied to public policy decisions and actions to ensure sustainable development.

Sec. 3. [AGENCIES' REPORTS TO BOARD; REVIEW.]

Each state department, agency, and board shall report to the environmental quality board by October 15, 1996, how the mission and programs of the department, agency, or board reflect and implement the state sustainable development principles, or how the mission and programs could be changed to do so. The environmental quality board, with the assistance of the office of strategic and long-range planning, shall review the mission and programs of each state department, agency, and board to identify how the principles of sustainable development can be incorporated into their missions and programs.

Sec. 4. [REPORT TO LEGISLATURE.]

The environmental quality board shall report to the legislature by January 15, 1997, on the board's review of state departments', agencies', and boards' missions and programs in relation to the principles of sustainable development."

Page 2, line 15, delete "June 1, 1995" and insert "the day after final enactment"

Renumber the sections in sequence

Correct internal references

Amend the title as follows:

Page 1, line 5, after the semicolon, insert "adopting principles of sustainable development; requiring reports;"

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. 2000, A bill for an act relating to children; authorizing a parent to name a designated parent; providing procedures; amending Minnesota Statutes 1994, sections 171.07, by adding a subdivision; and 524.5-505; Minnesota Statutes 1995 Supplement, section 13.69, subdivision 1; proposing coding for new law as Minnesota Statutes, chapter 257A.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 1995 Supplement, section 13.69, subdivision 1, is amended to read:

Subdivision 1. [CLASSIFICATIONS.] (a) The following government data of the department of public safety are private data:

(1) medical data on driving instructors, licensed drivers, and applicants for parking certificates and special license plates issued to physically handicapped persons;

(2) other data on holders of a disability certificate under section 169.345, except that data that are not medical data may be released to law enforcement agencies; and

(3) social security numbers in driver's license and motor vehicle registration records, except that social security numbers must be provided to the department of revenue for purposes of tax administration and the department of labor and industry for purposes of workers' compensation administration and enforcement.; and

(4) data on persons listed as designated parents under section 171.07, subdivision 11, except that the data must be released to:

(i) law enforcement agencies for the purpose of verifying that an individual is a designated parent; or

(ii) law enforcement agencies who state that the license holder is unable to communicate at that time and that the information is necessary for notifying the designated parent of the need to care for a child of the license holder. For the purposes of this paragraph, "health care provider" means a person licensed to furnish health care services under chapter 147, 148, 148B, 150A, 151, or 153, or a health care facility licensed under chapter 144.

(b) The following government data of the department of public safety are confidential data: data concerning an individual's driving ability when that data is received from a member of the individual's family.

Sec. 2. Minnesota Statutes 1994, section 171.07, is amended by adding a subdivision to read:

Subd. 11. [DESIGNATED PARENT.] (a) Upon the written request of the applicant on a form developed by the department which contains the information specified in paragraph (b), and upon payment of an additional fee of $......., the department shall issue a driver's license or Minnesota identification card bearing a symbol or other appropriate identifier indicating that the license holder has appointed an individual to serve as a designated parent under chapter 257A.

(b) The form shall provide as follows:

"...(Name of parent(s))... appoints ...(name of designated parent)... to provide care for ...(name of child or children)... when requested by the parent(s) or when the parent(s) is unable to care for the child (children) and unable to request the designated parent's assistance.

The designated parent will care for the child (children) named in this form for (choose one of the following):

(indicate a specified period of time that is less than one year); or

(indicate that care is to be provided for six months).

The designated parent has the powers and duties to make decisions and meet the child's (children's) needs in the areas checked or specified below:

education . . . . .

health care . . . . .

religion . . . . .

day care . . . . .

recreation . . . . .

The designated parent (choose one of the following):

is ...

is not ...

authorized to make decisions about financial issues and control financial resources provided for the child (children) by the parent.

This designated parent agreement is effective for four years following the date it is signed by the parent(s), designated parent, any child age 14 or older, and any alternate designated parent. However, the agreement may be canceled by a parent, a designated parent, or an alternate designated parent at any time before that date, upon notice to the other parties to the agreement.

(Parent(s) signature(s) and Minnesota driver's license(s) or Minnesota identification card number(s))

(Designated parent signature, Minnesota driver's license or Minnesota identification card number, address, and telephone number)

(Alternate designated parent signature, Minnesota driver's license or Minnesota identification card number, address, and telephone number)

(Child age 14 or older signature .....)

(Date .....)

(Notarization .....)"

(c) The department shall maintain a computerized records system of all persons listed as designated parents by driver's license and identification card applicants. This data shall be released to appropriate law enforcement agencies under section 13.69. Upon a parent's request and payment of a fee of $......., the department shall revise its list of designated parents and alternates to reflect a change in the appointment of a designated parent.

(d) At the request of the license or card holder, the department shall cancel the designated parent indication without additional charge. However, this paragraph does not prohibit a fee that may be applicable for a duplicate or replacement license or card, renewal of a license, or other service applicable to a driver's license or identification card.

(e) Notwithstanding sections 13.08, subdivision 1, and 13.69, the department and department employees are conclusively presumed to be acting in good faith when employees rely on statements made, in person or by telephone, by persons purporting to be law enforcement and subsequently release information described in paragraph (b). When acting in good faith, the department and department personnel are immune from civil liability and not subject to suit for damages resulting from the release of this information.

(f) The department and its employees:

(1) have no duty to inquire or otherwise determine whether a form submitted under this subdivision contains the signatures of all parents who have legal custody of a child; and

(2) are immune from all civil liability and not subject to suit for damages resulting from a claim that any parent with legal custody of a child has not signed the form.

Sec. 3. [257A.01] [DESIGNATED PARENT.]

A parent who has legal custody of a child may name an adult to serve as a designated parent to care for the parent's minor child for a period of time specified in a designated parent agreement, but not to exceed six months.

Sec. 4. [257A.02] [DESIGNATED PARENT; ALTERNATE.]

An individual acting as a designated parent is exempt in that role from any statute or administrative rule requiring a foster care license but must provide the notice required by section 257A.10 if applicable. A parent who has named a guardian by will for the parent's children may name that guardian or another individual as a designated parent for the child. A parent who has legal custody of more than one child may appoint the same or a different designated parent for each child.

A parent may appoint an alternate designated parent who would serve if the designated parent is unwilling or unable to serve. All the provisions of this chapter dealing with a designated parent apply to an alternate designated parent.

Sec. 5. [257A.03] [POWERS AND DUTIES OF DESIGNATED PARENT.]

Subdivision 1. [GENERAL.] A designated parent has all the powers regarding the care, custody, and financial interests of a minor child specified in the designated parent agreement, except as otherwise provided in this section. A designated parent does not have the power to consent to marriage or adoption of the child.

Subd. 2. [CHILD SUPPORT.] A preexisting child support order is not suspended or terminated during the time a child is cared for by a designated parent, unless otherwise provided by court order. A designated parent has a cause of action for child support against an absent parent under section 256.87, subdivision 5.

Sec. 6. [257A.04] [CONSENTS AND NOTICE REQUIRED.]

To be valid, a designated parent agreement must have the consent of:

(1) every parent whose parental rights to the child have not been terminated; and

(2) the designated parent.

In addition, the agreement must be signed by a child age 14 or older to whom it applies, to indicate that the child has been notified of the agreement.

Sec. 7. [257A.05] [DURATION.]

Subdivision 1. [IN GENERAL.] Unless canceled earlier under section 257A.08 by a parent or the designated parent, a designated parent agreement is effective for four years, after which date a new agreement may be entered. The new agreement may name the same or a different designated parent. A designated parent agreement automatically terminates as to any child when that child reaches age 18 or is lawfully married.

Subd. 2. [DEATH OF A PARENT.] If a parent dies while a designated parent agreement is in effect, and there is no living parent able to care for the child, the designated parent shall care for the child until a guardian appointed by will is able to take custody of the child or until a court order otherwise provides for the care of the child. However, the designated parent may cancel the agreement at any time under section 257A.08.

Sec. 8. [257A.06] [FORM.]

Subdivision 1. [WRITING.] A designated parent agreement must be made in writing and all signatures must be notarized.

Subd. 2. [DESIGNATED PARENT INDICATION ON DRIVER'S LICENSE.] A parent who wishes to have a designated parent indication placed on the parent's driver's license or identification card under section 171.07, subdivision 11, must submit a copy of the notarized designated parent agreement to the department of public safety and pay any required fee.

Sec. 9. [257A.07] [MULTIPLE AGREEMENTS.]

If more than one otherwise valid designated parent agreement exists regarding the same child, the priority among agreements is determined as follows:

(1) if one or more agreements have been submitted to the department of public safety under section 171.07, subdivision 11, the agreement with the most recent date that has been submitted to the department controls; or

(2) if multiple agreements exist, none of which has been submitted to the department of public safety, the agreement with the most recent date controls.

Sec. 10. [257A.08] [CANCELLATION.]

Subdivision 1. [HOW AND BY WHOM.] A parent may cancel a designated parent agreement at any time. The parent shall notify the designated parent of the cancellation. If the designated parent is caring for the child at the time of cancellation, the child must be returned to the parent immediately upon the parent's request.

A designated parent may decline to serve at any time, and the parent must cancel the agreement immediately upon request by the designated parent. If a designated parent is caring for a child when the designated parent cancels the agreement, the parent must take physical custody of the child immediately. If the parent is unable to resume physical custody at that time:

(1) the parent may name a new designated parent to care for the child who shall immediately take custody of the child; or

(2) the designated parent may contact the local social service agency, which shall take custody of the child.

Subd. 2. [NOTICE TO DEPARTMENT OF PUBLIC SAFETY.] A parent who has had a designated parent indication placed on the parent's driver's license or identification card under section 171.07, subdivision 11, has the responsibility to notify the department of public safety in writing whenever a designated parent agreement is canceled or a new designated parent or alternate is chosen.

Sec. 11. [257A.09] [EXTENDING PERIOD OF CARE.]

If a parent is unable to resume caring for a child upon expiration of the period of care indicated in the designated parent agreement, the period of care may be extended for a length of time agreed by the parent and designated parent, but not to exceed one year. If a parent cannot be contacted or is unable to communicate a decision about the child's care when the agreed period of care expires, the designated parent may:

(1) petition the juvenile court to authorize continued care by the designated parent until the parent is able to resume the child's care, or for one year, whichever is sooner; or

(2) contact the local social service agency, which shall take custody of the child.

Sec. 12. [257A.10] [NOTICE TO LOCAL SOCIAL SERVICE AGENCY; INVESTIGATION.]

If a child has been in the home of a designated parent for 30 days, the designated parent shall promptly notify the local social service agency, any adult siblings of the child, and any living paternal or maternal grandparents, of the following:

(1) the child's name, home address, and the name and home address of the child's parents;

(2) that the child is in the home under a designated parent agreement; and

(3) the length of time the child is expected to remain in the designated parent's home.

The local social service agency may visit the child and the home and may continue to visit and supervise the home and the child or take other appropriate action to assure that the welfare of the child is fully protected.

Sec. 13. [257A.11] [CONTEST OF APPOINTMENT.]

A local social service agency may file a motion in juvenile court to contest a designated parent agreement that applies to a child who is taken into custody under section 260.165 or about whom a petition is filed alleging that the child is in need of protection or services.

Sec. 14. Minnesota Statutes 1994, section 260.173, subdivision 2, is amended to read:

Subd. 2. Notwithstanding the provisions of subdivision 1, if the child had been taken into custody pursuant to section 260.165, subdivision 1, clause (a) or clause (c)(2), and is not alleged to be delinquent, the child shall be detained in the least restrictive setting consistent with the child's health and welfare and in closest proximity to the child's family as possible. Placement may be with a child's relative, a designated parent under chapter 257A, or in a shelter care facility.

Sec. 15. [APPROPRIATION.]

The sum of $....... is appropriated from the general fund to the commissioner of public safety for the purposes of section 2.

Sec. 16. [EFFECTIVE DATE.]

Sections 1 to 14 are effective January 1, 1997."

Amend the title as follows:

Page 1, line 3, after the second semicolon, insert "appropriating money;"

Page 1, line 5, delete "524.5-505" and insert "260.173, subdivision 2"

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.

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

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

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

The report was adopted.

Pursuant to Senate Concurrent Resolution No. 12, H. F. No. 2002 was re-referred to the Committee on Rules and Legislative Administration.

Skoglund from the Committee on Judiciary to which was referred:

H. F. No. 2003, A bill for an act relating to health; prohibiting minors from receiving a tattoo in certain circumstances; proposing coding for new law in Minnesota Statutes, chapter 144.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. [609.2246] [TATTOOS; MINORS.]

Subdivision 1. [REQUIREMENTS.] No person under the age of 16 may receive a tattoo. A person age 16 or 17 may receive a tattoo if the person provides written parental consent. The consent must include both the custodial and noncustodial parent, where applicable.

Subd. 2. [DEFINITION.] For the purposes of this section, "tattoo" means an indelible mark or figure fixed on the body by insertion of pigment under the skin or by production of scars.

Subd. 3. [PENALTY.] A person who provides a tattoo to a minor in violation of this section is guilty of a misdemeanor."

Delete the title and insert:

"A bill for an act relating to health; prohibiting minors from receiving a tattoo in certain circumstances; defining tattoo; providing penalties; proposing coding for new law in Minnesota Statutes, chapter 609."

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. 2040, A bill for an act relating to housing; providing for waiver of fees and surcharges imposed on motor vehicle registration data requests under certain circumstances; requiring the tenant's full name and date of birth in a written lease; providing for landlord liability to a tenant for failure to provide a written lease; establishing a statutory covenant that tenants and landlords will not engage in or allow nuisance behavior on the premises; requiring county attorneys to accept eviction assignments in certain situations; requiring tenant screening reports and unlawful detainer case files to include certain information; expanding tenant remedies; requesting a study; amending Minnesota Statutes 1994, sections 168.345, subdivision 3, and by adding a subdivision; 504.012; 504.015, subdivision 3; 504.05; 504.181; 504.30, subdivision 4, and by adding a subdivision; 566.05; 566.18, subdivision 6; 566.19, subdivision 4; 566.20, subdivision 1; 566.205, subdivision 1; and 566.34, subdivision 2.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 1994, section 168.345, subdivision 3, is amended to read:

Subd. 3. [REQUESTS FOR INFORMATION; SURCHARGE ON FEE.] Except as otherwise provided in subdivision 4, the commissioner shall impose a surcharge of 50 cents on each fee charged by the commissioner under section 13.03, subdivision 3, for copies or electronic transmittal of public information concerning motor vehicle registrations. This surcharge only applies to a fee imposed in responding to a request made in person or by mail, or to a request for transmittal through a computer modem. The surcharge does not apply to the request of an individual for information concerning vehicles registered in that individual's name. The commissioner shall forward the surcharges collected under this subdivision to the commissioner of finance on a monthly basis. Upon receipt, the commissioner of finance shall credit the surcharges to the general fund.

Sec. 2. Minnesota Statutes 1994, section 168.345, is amended by adding a subdivision to read:

Subd. 4. [EXCEPTION TO FEE AND SURCHARGE.] Notwithstanding subdivision 3 or section 13.03, no fee or surcharge shall be imposed in responding to a request for public information concerning motor vehicle registrations if the requester gives the commissioner a signed statement that:

(1) the requester seeks the information on behalf of a community-based, nonprofit organization which has been designated by the local law enforcement agency to be a requester; and

(2) the information is needed in order to identify suspected prostitution law violators, controlled substance law violators, or health code violators.

The commissioner may not require a requester to make a certain minimum number of data requests nor limit a requester to a certain maximum number of data requests.

Sec. 3. Minnesota Statutes 1994, section 504.012, is amended to read:

504.012 [WRITTEN LEASE REQUIRED; PENALTY.]

An owner of a multiunit building, with 12 or more residential units, shall have a written lease for each unit rented to a residential tenant. Notwithstanding any other state law or city ordinance to the contrary, a landlord may ask for the tenant's full name and date of birth on the lease and application. An owner who fails to provide a lease, as required under this section, is guilty of a petty misdemeanor. The definitions of "owner," "tenant," and "building" in section 566.18 apply to this section.

Sec. 4. Minnesota Statutes 1994, section 504.181, subdivision 1, is amended to read:

Subdivision 1. [COVENANT NOT TO ALLOW DRUGS.] In every lease or license of residential premises, whether in writing or parol, the lessee or licensee covenants that:

(1) the lessee or licensee will not unlawfully allow controlled substances in those premises; and

(2) the common area and curtilage will not be used by the lessee or licensee or others acting under the lessee's or licensee's control to manufacture, sell, give away, barter, deliver, exchange, distribute, purchase, or possess a controlled substance in violation of any criminal provision of chapter 152.

The covenant is not violated when a person other than the lessee or licensee possesses or allows controlled substances in the premises, common area, or curtilage, unless the lessee or licensee knew or had reason to know of that activity.

Sec. 5. Minnesota Statutes 1994, section 504.30, subdivision 4, is amended to read:

Subd. 4. [COURT FILE INFORMATION.] (a) If a tenant screening service includes information from a court file on an individual in a tenant report, the report must provide the full name and date of birth of the individual in any case where the court file includes the individual's full name and date of birth, and the outcome of the court proceeding must be accurately recorded in the tenant report including the specific basis of the court's decision, when available. Whenever the court supplies information from a court file on an individual, in whatever form, the court shall include the full name and date of birth of the individual, if that is indicated on the court file or summary and information on the outcome of the court proceeding, including the specific basis of the court's decision, coded as provided in subdivision 4a for the type of action, when it becomes available. The tenant screening service is not liable under section 504.31 if the tenant screening service reports complete and accurate information as provided by the court.

(b) A tenant screening service shall not provide tenant reports containing information on unlawful detainer actions in the second and fourth judicial districts, unless the tenant report accurately records the outcome of the proceeding or other disposition of the unlawful detainer action such as settlement, entry of a judgment, default, or dismissal of the action.

Sec. 6. Minnesota Statutes 1994, section 504.30, is amended by adding a subdivision to read:

Subd. 4a. [UNLAWFUL DETAINER ACTION CODING.] The court shall indicate on the court file or any summary of a court file the specific basis of the court's decision in an unlawful detainer action according to codes developed by the court that, at a minimum, indicates if the basis of the court's decision is nonpayment of rent, a violation of the covenants under section 504.18 or 504.181, other breach of a lease agreement, or a counterclaim for possession of the premises under section 566.34.

Sec. 7. Minnesota Statutes 1994, section 566.05, is amended to read:

566.05 [COMPLAINT AND SUMMONS.]

The person complaining shall file a complaint with the court, stating the full name and date of birth of the person against whom the complaint is made, unless it is not known, describing the premises of which possession is claimed, stating the facts which authorize the recovery, and praying for restitution thereof. The lack of the full name and date of birth of the person against whom the complaint is made does not deprive the court of jurisdiction or make the complaint invalid. The court shall issue a summons, commanding the person against whom the complaint is made

to appear before the court on a day and at a place stated in the summons. The appearance shall be not less than seven nor more than 14 days from the day of issuing the summons. In scheduling appearances under this section, the court shall give priority to any unlawful detainer brought under section 504.181, or on the basis that the tenant is causing a nuisance or seriously endangers the safety of other residents, their property, or the landlord's property. A copy of the complaint shall be attached to the summons, which shall state that the copy is attached and that the original has been filed.

Sec. 8. [STUDY REQUESTED.]

The Hennepin and Ramsey county attorneys offices shall convene a working group to study and explore options for dealing with negative community impacts of chronic drug dealing and nuisance activity including:

(1) barriers to full implementation of current nuisance law;

(2) community and criminal justice system response to drug offenders and drug addicted persons including drug courts;

(3) response to chronic substance abusers;

(4) fraudulent rental histories created by tenants, landlords, and screening services; and

(5) facilitating a greater role and responsibility for neighborhood organizations in combating negative community impacts of drug and nuisance behavior.

The county attorneys are requested to consult with representatives of the housing court, landlords, tenants, legal aid, neighborhood community crime prevention, law enforcement community crime prevention, and anyone else the county attorneys determine would be helpful, and report to the legislature the results of the study and any recommendations by December 15, 1996.

Sec. 9. [EFFECTIVE DATE.]

Sections 3 and 4 are effective August 1, 1996, and apply to leases entered into, renewed, or modified on or after that date. Section 7 is effective August 1, 1996, and applies to any unlawful detainer action brought against a tenant whose tenancy begins on or after that date or for a tenant whose lease is renewed or modified on or after that date. Section 8 is effective the day after final enactment."

Delete the title and insert:

"A bill for an act relating to housing; providing for waiver of fees and surcharges imposed on motor vehicle registration data requests under certain circumstances; requiring the tenant's full name and date of birth in a written lease; requiring tenant screening reports and unlawful detainer case files to include certain information; requesting a study; amending Minnesota Statutes 1994, sections 168.345, subdivision 3, and by adding a subdivision; 504.012; 504.181, subdivision 1; 504.30, subdivision 4, and by adding a subdivision; and 566.05."

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. 2045, A bill for an act relating to crime prevention; expanding the sex offender registration act to include child pornography offenses; requiring notification of local authorities of the impending release of sex offenders; authorizing the release to the public of information on registered sex offenders under certain circumstances; establishing an end-of-confinement review committee to assess risks posed by release of sex offenders; providing risk factors to be applied in the risk assessment decision; amending Minnesota Statutes 1994, section 609.115, by adding a subdivision; Minnesota Statutes 1995 Supplement, section 243.166, subdivisions 1 and 7; proposing coding for new law in Minnesota Statutes, chapters 244 and 609.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. [LEGISLATIVE FINDINGS AND PURPOSE.]

The legislature finds that if members of the public are provided adequate notice and information about a sex offender who has been or is about to be released from custody and who lives or will live in or near their neighborhood, the community can develop constructive plans to prepare themselves and their children for the offender's release.

Sec. 2. Minnesota Statutes 1995 Supplement, section 243.166, subdivision 1, is amended to read:

Subdivision 1. [REGISTRATION REQUIRED.] (a) A person shall register under this section if:

(1) the person was charged with or petitioned for a felony violation of or attempt to violate any of the following, and convicted of or adjudicated delinquent for that offense or of another offense arising out of the same set of circumstances:

(i) murder under section 609.185, clause (2);

(ii) kidnapping under section 609.25, involving a minor victim; or

(iii) criminal sexual conduct under section 609.342; 609.343; 609.344; or 609.345; or

(2) the person was charged with or petitioned for using a minor in a sexual performance in violation of section 617.246, or possessing pictorial representations of minors in violation of section 617.247, and convicted of or adjudicated delinquent for that offense or another offense arising out of the same set of circumstances; or

(3) the person was convicted of a predatory crime as defined in section 609.1352, and the offender was sentenced as a patterned sex offender or the court found on its own motion or that of the prosecutor that the crime was part of a predatory pattern of behavior that had criminal sexual conduct as its goal; or

(3) (4) the person was convicted of or adjudicated delinquent for violating a law of the United States similar to the offenses described in clause (1) or, (2), or (3).

(b) A person also shall register under this section if:

(1) the person was convicted of or adjudicated delinquent in another state for an offense that would be a violation of a law described in paragraph (a) if committed in this state;

(2) the person enters and remains in this state for 30 days or longer; and

(3) ten years have not elapsed since the person was released from confinement or, if the person was not confined, since the person was convicted of or adjudicated delinquent for the offense that triggers registration.

(c) A person also shall register under this section if the person was committed pursuant to a court commitment order under section 253B.185 or Minnesota Statutes 1992, section 526.10, regardless of whether the person was convicted of any offense.

Sec. 3. Minnesota Statutes 1995 Supplement, section 243.166, subdivision 7, is amended to read:

Subd. 7. [USE OF INFORMATION.] Except as otherwise provided in section 244.052, the information provided under this section is private data on individuals under section 13.01, subdivision 12. The information may be used only for law enforcement purposes.

Sec. 4. [244.052] [SEX OFFENDERS; NOTICE.]

Subdivision 1. [DEFINITIONS.] As used in this section:

(1) "accepted for supervision" means accepted from another state under a reciprocal agreement under the interstate compact authorized by section 243.16;

(2) "confinement" means confinement in a state correctional facility or a state treatment facility;

(3) "law enforcement agency" means the law enforcement agency having primary jurisdiction over the location where the offender expects to reside upon release; and

(4) "sex offender" and "offender" mean a person who has been convicted of an offense for which registration under section 243.166 is required or a person who has been committed pursuant to a court commitment order under section 253B.185 or Minnesota Statutes 1992, section 526.10, regardless of whether the person was convicted of any offense.

Subd. 2. [RISK ASSESSMENT SCALE.] By January 1, 1997, the commissioner of corrections shall develop a risk assessment scale which assigns weights to the various risk factors listed in subdivision 3, paragraph (f), and specifies the risk level to which offenders with various risk assessment scores shall be assigned. In developing this scale, the commissioner shall consult with county attorneys, treatment professionals, law enforcement officials, and probation officers.

Subd. 3. [END-OF-CONFINEMENT REVIEW COMMITTEE.] (a) The commissioner of corrections shall establish and administer end-of-confinement review committees at each state correctional facility and at each state treatment facility where sex offenders are confined. The committees shall assess on a case-by-case basis:

(1) the public risk posed by sex offenders who are about to be released from confinement; and

(2) the public risk posed by sex offenders who are accepted from another state under a reciprocal agreement under the interstate compact authorized by section 243.16.

Each committee shall be a standing committee and shall consist of the following members appointed by the commissioner:

(1) the chief executive officer or head of the correctional or treatment facility where the offender is currently confined, or that person's designee;

(2) a law enforcement officer;

(3) a treatment professional who is trained in the assessment of sex offenders;

(4) a caseworker experienced in supervising sex offenders; and

(5) a representative from a victim advocacy organization. The chief executive officer or head of the facility or designee shall act as chair of the committee and shall use the facility's staff, as needed, to administer the committee, obtain necessary information from outside sources, and prepare risk assessment reports on offenders.

(b) The committee shall have access to the following data on a sex offender only for the purposes of its assessment under this section:

(1) private medical data under section 13.42;

(2) private and confidential court services data under section 13.84;

(3) private and confidential corrections data under section 13.85; and

(4) private criminal history data under section 13.87.

Data collected and maintained by the committee under this paragraph may not be disclosed outside the committee.

(c) At least 90 days before a sex offender is to be released from confinement or accepted for supervision, the commissioner of corrections shall convene the appropriate end-of-confinement review committee for the purpose of assessing the risk presented by the offender and determining the risk level to which the offender shall be assigned under paragraph (d). The offender shall be notified of the time and place of the committee's meeting and has a right to be present and be heard at the meeting. The committee shall use the risk factors described in paragraph (f) and the risk assessment scale developed under subdivision 2 to determine the offender's risk assessment score and risk level. Offenders scheduled for release from confinement shall be assessed by the committee established at the facility from which the offender is to be released. Offenders accepted for supervision shall be assessed by whichever committee the commissioner directs.

(d) The committee shall assign to risk level I a sex offender whose risk assessment score indicates a low risk of reoffense. The committee shall assign to risk level II an offender whose risk assessment score indicates a moderate risk of reoffense. The committee shall assign to risk level III an offender whose risk assessment score indicates a high risk of reoffense.

(e) Before the sex offender is released from confinement or accepted for supervision, the committee shall prepare a risk assessment report which specifies the risk level to which the offender has been assigned and the reasons underlying the committee's risk assessment decision. The committee shall give the report to the offender and to the law enforcement agency at least 60 days before an offender is released from confinement or accepted for supervision. The committee also shall inform the offender of the availability of review under subdivision 6.

(f) As used in this subdivision, "risk factors" includes, but is not limited to, the following factors:

(1) the seriousness of the offense should the offender reoffend. This factor includes consideration of the following: (i) the degree of likely force or harm; (ii) the degree of likely physical contact; and (iii) the age of the likely victim;

(2) the offender's prior offense history. This factor includes consideration of the following: (i) the relationship of prior victims to the offender; (ii) the number of prior offenses or victims; (iii) the duration of the offender's prior offense history; (iv) the length of time since the offender's last prior offense, while the offender was at risk to commit offenses; and (v) the offender's prior history of other antisocial acts;

(3) the offender's characteristics. This factor includes consideration of the following: (i) the offender's response to prior treatment efforts; and (ii) the offender's history of substance abuse;

(4) the availability of community supports to the offender. This factor includes consideration of the following: (i) the availability and likelihood that the offender will be involved in therapeutic treatment; (ii) the availability of residential supports to the offender, such as a stable and supervised living arrangement in an appropriate location; (iii) the offender's familial and social relationships, including the nature and length of these relationships and the level of support that the offender may receive from these persons; and (iv) the offender's lack of education or employment stability;

(5) whether the offender has indicated or credible evidence in the record indicates that the offender will reoffend if released into the community; and

(6) whether the offender demonstrates a physical condition that minimizes the risk of reoffense, including but not limited to, advanced age or a debilitating illness or physical condition.

(g) Upon the request of the law enforcement agency or the offender's corrections agent, the commissioner may reconvene the end-of-confinement review committee for the purpose of reassessing the risk level to which an offender has been assigned under paragraph (d). In a request for a reassessment, the law enforcement agency or agent shall list the facts and circumstances arising after the initial assignment under paragraph (d) which support the request for a reassessment. Upon review of the request, the end-of-confinement review committee may reassign an offender to a different risk level. If the offender is reassigned to a higher risk level, the offender has the right to seek review of the committee's determination under subdivision 6.

(h) An offender may request the end-of-confinement review committee to reassess the offender's assigned risk level after two years have elapsed since the committee's initial risk assessment and may renew the request once every two years following subsequent denials. In a request for reassessment, the offender shall list the facts and circumstances which demonstrate that the offender no longer poses the same degree of risk to the community. The committee shall follow the process outlined in paragraphs (a) to (d), and (f) in the reassessment.

Subd. 4. [LAW ENFORCEMENT AGENCY; DISCLOSURE OF INFORMATION TO PUBLIC.] (a) The law enforcement agency in the area where the sex offender resides, expects to reside, is employed, or is regularly found, is authorized to disclose information to the public regarding the offender if the agency determines that disclosure of the information is relevant and necessary to protect the public and to counteract the offender's dangerousness. The extent of the information disclosed and the community to whom disclosure is made must relate to the level of danger posed by the offender and to the need of community members for information to enhance their individual and collective safety.

(b) The law enforcement agency shall consider the following guidelines in determining the scope of disclosure made under this subdivision:

(1) if the offender is assigned to risk level I, the agency may maintain information regarding the offender within the agency and may disclose it to other law enforcement agencies. Additionally, the agency may disclose the information to any victims of or witnesses to the offense committed by the offender. The agency shall disclose the information to victims of the offense committed by the offender who have requested disclosure;

(2) if the offender is assigned to risk level II, the agency also may disclose the information to the following agencies and groups that the offender is likely to encounter: public and private educational institutions; day care establishments; and establishments and organizations that primarily serve children or women;

(3) if the offender is assigned to risk level III, the agency also may disclose the information to other members of the community whom the offender is likely to encounter.

Notwithstanding the assignment of a sex offender to risk level II or III, a law enforcement agency may not make the disclosures permitted by clause (2) or (3), if: the offender is placed or resides in a residential facility that is licensed as a residential program, as defined in section 245A.02, subdivision 14, by the commissioner of human services under chapter 254A, or the commissioner of corrections under section 241.021; and the facility and its staff are trained in the supervision of sex offenders. However, if an offender is placed or resides in a licensed facility, the head of the facility shall notify the law enforcement agency before the end of the offender's placement or residence in the facility. Upon receiving this notification, the law enforcement agency may make the disclosures permitted by clause (2) or (3), as appropriate.

As used in clauses (2) and (3), "likely to encounter" means that: (1) the organizations or community members are in a location or in close proximity to a location where the offender lives or is employed, or which the offender visits or is likely to visit on a regular basis, other than the location of the offender's outpatient treatment program; and (2) the types of interaction which ordinarily occur at that location and other circumstances indicate that contact with the offender is reasonably certain.

(c) A law enforcement agency or official who decides to disclose information under this subdivision shall make a good faith effort to make the notification at least 14 days before an offender is released from confinement or accepted for supervision. If a change occurs in the release plan, this notification provision does not require an extension of the release date.

Subd. 5. [RELEVANT INFORMATION PROVIDED TO LAW ENFORCEMENT.] At least 60 days before a sex offender is released from confinement or accepted for supervision, the department of corrections or the department of human services, in the case of a person who was committed under section 253B.185 or Minnesota Statutes 1992, section 526.10, shall provide the appropriate law enforcement agency all relevant information that the departments have concerning the offender, including information on risk factors in the offender's history.

Subd. 6. [ADMINISTRATIVE REVIEW.] (a) An offender assigned or reassigned to risk level II or III under subdivision 3, paragraph (d) or (g), has the right to seek administrative review of an end-of-confinement review committee's risk assessment determination. The offender must exercise this right within 14 days of receiving notice of the committee's decision by notifying the chair of the committee. Upon receiving the request for administrative review, the chair shall notify the offender, the victim or victims of the offender's offense or their designee, the law enforcement agency, and any other individuals the chair may select, of the time and place of the hearing. A request for a review hearing shall not interfere with or delay the notification process under subdivision 4 or 5.

(b) An offender who requests a review hearing must be given a reasonable opportunity to prepare for the hearing. The review hearing shall be conducted on the record before an administrative law judge. The attorney general or a designee shall defend the end-of-confinement review committee's determination. The offender has the right to be present and be represented by counsel at the hearing, to present evidence in support of the offender's position, to call supporting witnesses and to cross-examine witnesses testifying in support of the committee's determination. Counsel for indigent offenders shall be provided by the Legal Advocacy Project of the state public defender's office.

(c) After the hearing is concluded, the administrative law judge shall either uphold or modify the end-of-confinement review committee's risk level determination. The judge's decision shall be in writing and shall include the judge's reasons for the decision. The judge's decision shall be final and a copy of it shall be given to the offender, the victim, the law enforcement agency, and the chair of the end-of-confinement review committee.

(d) The review hearing is not subject to the contested case provisions of chapter 14.

Subd. 7. [IMMUNITY FROM LIABILITY.] A state or local agency or official, or a private organization or individual authorized to act on behalf of a state or local agency or official, is not civilly or criminally liable for disclosing or failing to disclose information as permitted by this section.

Subd. 8. [LIMITATION ON SCOPE.] Nothing in this section imposes a duty upon a person licensed under chapter 82, or an employee of the person, to disclose information regarding an offender who is required to register under section 243.166, or about whom notification is made under this section.

Sec. 5. [244.053] [NOTICE OF RELEASE OF CERTAIN OFFENDERS.]

Subdivision 1. [NOTICE OF IMPENDING RELEASE.] At least 60 days before the release of any inmate convicted of an offense requiring registration under section 243.166, the commissioner of corrections shall send written notice of the impending release to the sheriff of the county and the police chief of the city in which the inmate will reside or in which placement will be made in a work release program. The sheriff of the county where the offender was convicted also shall be notified of the inmate's impending release.

Subd. 2. [ADDITIONAL NOTICE.] The same notice shall be sent to the following persons concerning a specific inmate convicted of an offense requiring registration under section 243.166:

(1) the victim of the crime for which the inmate was convicted or a deceased victim's next of kin if the victim or deceased victim's next of kin requests the notice in writing;

(2) any witnesses who testified against the inmate in any court proceedings involving the offense, if the witness requests the notice in writing; and

(3) any person specified in writing by the prosecuting attorney.

The notice sent to victims under clause (1) must inform the person that the person has the right to request and receive information about the offender authorized for disclosure under the community notification provisions of section 244.052.

If the victim or witness is under the age of 16, the notice required by this section shall be sent to the parents or legal guardian of the child. The commissioner shall send the notices required by this provision to the last address provided to the commissioner by the requesting party. The requesting party shall furnish the commissioner with a current address. Information regarding witnesses requesting the notice, information regarding any other person specified in writing by the prosecuting attorney to receive the notice, and the notice are private data on individuals, as defined in section 13.02, subdivision 12, and are not available to the inmate.

The notice to victims provided under this subdivision does not limit the victim's right to request notice of release under section 611A.06.

Subd. 3. [NO EXTENSION OF RELEASE DATE.] The existence of the notice requirements contained in this section shall in no event require an extension of the release date.

Sec. 6. Minnesota Statutes 1994, section 244.10, is amended by adding a subdivision to read:

Subd. 2a. [NOTICE OF INFORMATION REGARDING SEX OFFENDERS.] (a) In any case in which a person is convicted of an offense which requires registration under section 243.166, subdivision 1, and the presumptive sentence under the sentencing guidelines is commitment to the custody of the commissioner of corrections, if the court grants a dispositional departure and stays imposition or execution of sentence, the probation or court services officer who is assigned to supervise the offender shall provide in writing to the following the fact that the offender is on probation and the terms and conditions of probation:

(1) a victim of and any witnesses to the offense committed by the offender, if the victim or the witness has requested notice; and

(2) the chief law enforcement officer in the area where the offender resides or intends to reside.

The probation officer is not required under this subdivision to provide any notice while the offender is placed or resides in a residential facility that is licensed under section 245A.02, subdivision 14, or section 241.021, if the facility staff is trained in the supervision of sex offenders.

(b) The notice authorized by paragraph (a) shall be limited to data classified as public under section 13.84, subdivision 6, unless the offender provides informed consent to authorize the release of nonpublic data or unless a court order authorizes the release of nonpublic data.

(c) Nothing in this subdivision shall be interpreted to impose a duty on any person to use any information regarding an offender about whom notification is made under this subdivision.

Sec. 7. [COMMUNITY NOTIFICATION ABOUT SEX OFFENDERS; POLICY AND INSTRUCTION.]

Subdivision 1. [MODEL POLICY.] (a) By August 1, 1996, the Minnesota chiefs of police association and the Minnesota sheriffs association shall develop a model policy for law enforcement agencies to follow when they disclose information on sex offenders to the public under Minnesota Statutes, section 244.052, subdivision 3. The model policy shall be designed to further the objectives of providing adequate notice to the community concerning sex offenders who are or will be residing in the neighborhood and of helping community members develop constructive plans to prepare themselves and their children for residing near these sex offenders. In developing the policy, the two associations shall consult with representatives of the bureau of criminal apprehension, the Minnesota association of women police, the Minnesota sex crimes investigators association, the Minnesota police and peace officers association, the Minnesota institute of community policing, the county attorneys association, the commissioner of corrections, local corrections agencies, the state public defender, sex offender treatment professionals, victims groups, and interested members of the public.

(b) The model policy shall, at a minimum, address the following matters:

(1) recommended contents and form of community notification documents, including recommended ways of protecting the privacy of victims of the offender's crime;

(2) recommended method or methods of distributing community notification documents;

(3) recommended methods of providing follow-up notifications to community residents at specified intervals and of disclosing information about offenders to law enforcement agencies in other jurisdictions when necessary to protect the public;

(4) recommended methods of educating community residents at public meetings on how they can use the information in the notification document in a reasonable manner to enhance their individual and collective safety;

(5) procedures for ensuring that community members are educated regarding the right of sex offenders not to be subjected to harassment or criminal acts because of the notification process;

(6) recommended ways of educating sex offenders before they are released from incarceration on the nature and scope of the notification process, the likely reaction of community residents to their presence in the community, and their right to be free from harassment or criminal acts committed by community residents because of the notification process; and

(7) other matters that the associations deem necessary to ensure the effective and fair administration of the community notification law.

Subd. 2. [LOCAL POLICY.] By January 1, 1997, all chief law enforcement officers shall establish and implement a written policy governing the public disclosure of information on sex offenders under Minnesota Statutes, section 244.052, subdivision 3. A chief law enforcement officer shall adopt a policy that is identical or substantially similar to the model policy developed by the associations under subdivision 1.

Sec. 8. [APPROPRIATION.]

$....... is appropriated from the general fund to the commissioner of corrections for the fiscal year ending June 30, 1997, to be used to implement the commissioner's duties under sections 1 and 3 to 5.

$....... is appropriated to the state public defender for the fiscal year ending June 30, 1997, to be used to implement the state public defender's duties under section 4.

Sec. 9. [EFFECTIVE DATE.]

Section 2 is effective August 1, 1996, and applies to persons who are released from prison on or after that date, or who are under supervision as of that date, or who enter this state on or after that date.

Sections 1 and 3 to 5 are effective January 1, 1997, and apply to persons released on or after that date.

Section 7 is effective the day following final enactment."

Delete the title and insert:

"A bill for an act relating to crime prevention; expanding the sex offender registration act to include child pornography offenses; requiring notification of local authorities of the impending release of sex offenders; authorizing the release to the public of information on registered sex offenders under certain circumstances; establishing an end-of-confinement review committee to assess risks posed by release of sex offenders; providing risk factors to be applied in the risk assessment decision; appropriating money; amending Minnesota Statutes 1994, section 244.10, by adding a subdivision; Minnesota Statutes 1995 Supplement, section 243.166, subdivisions 1 and 7; proposing coding for new law in Minnesota Statutes, chapter 244."

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

The report was adopted.

Pursuant to Senate Concurrent Resolution No. 12, H. F. No. 2045 was re-referred to the Committee on Rules and Legislative Administration.

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

H. F. No. 2069, A bill for an act relating to human services; requiring notification of placement or adoption of a child to the other birth parent; requiring background checks for adoption; requiring affidavits for an emergency order requiring updates to adoption study; defining content of postplacement assessment and report; permitting court-ordered grandparent visitation with an adopted child; recognition of adoption which occurred in a foreign country; defining when adoption records shall become public records; amending Minnesota Statutes 1994, sections 245A.04, subdivision 10; 259.20, subdivision 2; 259.22, subdivision 4; 259.24, subdivision 2a; 259.41; 259.47, subdivisions 3, 6, 7, 8, and 10; 259.53, subdivision 2; 259.55, subdivision 1; 259.59, subdivision 1, and by adding a subdivision; 259.67, subdivision 7; 259.79, subdivision 3; 259.83, subdivision 3; and 259.89, subdivisions 1, 5, and by adding a subdivision; proposing coding for new law in Minnesota Statutes, chapter 259; repealing Minnesota Statutes 1994, section 259.47, subdivision 9.

Reported the same back with the following amendments:

Page 2, after line 14, insert:

"Sec. 2. Minnesota Statutes 1994, section 257.022, is amended by adding a subdivision to read:

Subd. 3a. [GRANDPARENT VISITATION WITH AN ADOPTED CHILD.] A grandparent of an adopted child may petition and a court may grant an order setting visitation with the child if:

(1) the grandparent is the parent of:

(i) a deceased parent of the child; or

(ii) a parent of the child whose parental relationship was terminated by a decree of adoption pursuant to subdivision 1;

(2) the child has been adopted by a stepparent; and

(3) the court determines that the requested visitation is:

(i) in the best interests of the child; and

(ii) would not interfere with the parent and child relationship.

Failure to comply with the terms of an order for visitation granted under this subdivision is not a basis for revoking, setting aside, or otherwise challenging the validity of a consent, relinquishment, or adoption of a child."

Page 13, line 6, delete "5a" and insert "2a"

Page 17, delete section 14

Page 19, after line 16, insert:

"Sec. 17. [259.78] [GRANDPARENT VISITATION.]

Grandparent visitation with an adopted child is governed by section 257.022."

Renumber the sections in sequence and correct the internal references

Amend the title as follows

Page 1, line 12, after the semicolon, insert "257.022, by adding a subdivision;"

Page 1, line 16, delete ", and by adding a subdivision"

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

The report was adopted.

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

H. F. No. 2078, A bill for an act relating to health; modifying welfare data disclosure; modifying group purchasers' access to health data; modifying the membership provisions of the health data institute's board of directors; modifying the staff provisions of the health data institute; defining terms; modifying identification requirements for health care provider organizations, individual health care providers, and group purchasers; adding a core transaction set; modifying standard transaction sets provisions; modifying requirements for the health care identification card; establishing procedures for disclosing certain nonpublic data related to group purchasers; requiring the office of mental health practice to establish procedures for the exchange of information; permitting the commissioner of health to obtain certain arrest and investigative information; providing penalties; amending Minnesota Statutes 1994, sections 62J.51, by adding subdivisions; 62J.56, subdivision 2; 62J.60, subdivisions 2 and 3; 144.225, by adding a subdivision; 148B.66, by adding a subdivision; 148B.69, subdivision 2; and 148B.70, subdivision 3; Minnesota Statutes 1995 Supplement, sections 13.46, subdivision 2; 62J.451, subdivisions 7, 9, and 12; 62J.54, subdivisions 1, 2, and 3; and 62J.58.

Reported the same back with the following amendments:

Page 4, line 18, delete "to locate" and insert "when the commissioner has reason to believe that the program recipient is"

Page 4, line 19, delete "or" and delete "to locate persons" and insert "or"

Page 4, delete lines 20 to 21 and insert "and the data are necessary to locate the person."

Page 9, line 20, after "who" insert "may"

Page 9, line 24, after the period, insert paragraph coding

Page 11, line 4, delete "section" and insert "subdivision"

Page 15, after line 26, insert:

"Sec. 16. Minnesota Statutes 1995 Supplement, section 62Q.03, subdivision 9, is amended to read:

Subd. 9. [DATA COLLECTION AND DATA PRIVACY.] The association members shall not have access to unaggregated data on individuals or health plan companies. The association shall develop, as a part of the plan of operation, procedures for ensuring that data is collected by an appropriate entity. The commissioners of health and commerce shall have the authority to audit and examine data collected by the association for the purposes of the development and implementation of the risk adjustment system. Data on individuals obtained for the purposes of risk adjustment development, testing, and operation are designated as private data. Data not on individuals which is obtained for the purposes of development, testing, and operation of risk adjustment are designated as nonpublic data., except for that the proposed and approved plan of operation, the risk adjustment methodologies examined, the plan for testing, the plan of the risk adjustment system, minutes of meetings, and other general operating information are classified as public data. Nothing in this section is intended to prohibit the preparation of summary data under section 13.05, subdivision 7. The association, state agencies, and any contractors having access to this data shall maintain it in accordance with this classification. The commissioners of health and human services have the authority to collect data from health plan companies as needed for the purpose of developing a risk adjustment mechanism for public programs."

Page 16, line 24, delete "remain nonpublic" and insert "not be released"

Page 16, line 32, delete everything after the period

Page 16, delete lines 33 and 34

Pages 18 and 19, delete section 18 and insert:

"Sec. 19. Minnesota Statutes 1994, section 148B.69, is amended by adding a subdivision to read:

Subd. 2a. [ACCESS TO CRIMINAL DATA.] In matters relating to the lawful activities of the office of mental health practice, the following agencies or persons may provide to the office, upon its request, arrest, investigative, or conviction information for review and copying:

(1) the bureau of criminal apprehension;

(2) a county attorney, county sheriff, or county agency;

(3) a local chief of police;

(4) another state;

(5) a court; or

(6) a national criminal record repository."

Renumber the sections in sequence

Correct internal references

Amend the title as follows:

Page 1, line 12, after the semicolon, insert "modifying the data classification provision of the risk adjustment association;"

Page 1, line 16, delete everything after the semicolon

Page 1, delete line 17 and insert "permitting the office of mental health practice to obtain arrest, investigative, and conviction information;"

Page 1, line 22, delete "subdivision 2" and insert "by adding a subdivision"

Page 1, line 25, delete the third "and"

Page 1, line 26, before the period, insert "; and 62Q.03, subdivision 9"

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. 2115, A bill for an act relating to agriculture; adjusting certain net worth definitions for certain rural finance agency programs; amending Minnesota Statutes 1994, section 41C.02, subdivision 12.

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. 2161, A bill for an act relating to crime; clarifying the duty of the sentencing guidelines commission; amending Minnesota Statutes 1994, section 244.09, subdivision 5.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

Subd. 2a. [LATER PRODUCTION OF PROOF BY DRIVER WHO IS OWNER.] A driver who is the owner of the vehicle may, within ten days after the demand no later than the date and time specified in the citation for the driver's first court appearance, produce proof of insurance stating that security had been provided for the vehicle that was being operated at the time of the demand to the court administrator. The required proof of insurance may be sent by mail by the driver as long as it is received within ten days no later than the date and time specified in the citation for the driver's first court appearance. If a citation is issued, no person shall be convicted of violating this section if the court administrator receives the required proof of insurance within ten days of the issuance of the citation no later than the date and time specified in the citation for the driver's first court appearance. If the charge is made other than by citation, no person shall be convicted of violating this section if the person presents the required proof of insurance at the person's first court appearance after the charge is made.

Sec. 2. Minnesota Statutes 1994, section 169.791, subdivision 3, is amended to read:

Subd. 3. [LATER PRODUCTION OF INFORMATION BY DRIVER WHO IS NOT OWNER.] If the driver is not the owner of the vehicle, the driver shall, within ten days of the officer's demand no later than the date and time specified in the citation for the driver's first court appearance, provide the district court administrator with proof of insurance or the name and address of the owner. Upon receipt of the name and address of the owner, the district court administrator shall communicate the information to the law enforcement agency.

Sec. 3. Minnesota Statutes 1994, section 169.791, subdivision 4, is amended to read:

Subd. 4. [REQUIREMENT FOR OWNER WHO IS NOT DRIVER.] If the driver is not the owner of the vehicle, the officer may send or provide a notice to the owner of the vehicle requiring the owner to produce proof of insurance for the vehicle that was being operated at the time of the demand. Notice by mail is presumed to be received five days after mailing and shall be sent to the owner's current address or the address listed on the owner's driver's license. Within ten days after receipt of the notice, the owner shall produce the required proof of insurance to the place stated in the notice received by the owner. The required proof of insurance may be sent by mail by the owner as long as it is received within ten days. Any owner who fails to produce proof of insurance within ten days of an officer's request under this subdivision is guilty of a misdemeanor. The peace officer may mail the citation to the owner's current address or address stated on the owner's driver's license. It is an affirmative defense to a charge against the owner that the driver used the owner's vehicle without consent, if insurance would not have been required in the absence of the unauthorized use by the driver. It is not a defense that a person failed to notify the department of public safety of a change of name or address as required under section 171.11. The citation may be sent after the ten-day period.

Sec. 4. Minnesota Statutes 1994, section 169.792, subdivision 1, is amended to read:

Subdivision 1. [IMPLIED CONSENT.] Any driver or owner of a vehicle consents, subject to the provisions of this section and section 169.791, to the requirement of having possession of proof of insurance, and to the revocation of the person's license if the driver or owner does not produce the required proof of insurance within ten days of an officer's demand no later than the date and time specified in the citation for the driver's first court appearance, if a citation is issued, or within ten days of receipt of a written notice, if a written notice is sent or given. Any driver of a vehicle who is not the owner of the vehicle consents, subject to the provisions of this section and section 169.791, to providing to the officer the name and address of the owner of the vehicle.

Sec. 5. Minnesota Statutes 1994, section 169.792, subdivision 2, is amended to read:

Subd. 2. [REQUIREMENT FOR DRIVER WHETHER OR NOT OWNER.] Except as provided in subdivision 3, every driver of a vehicle shall, within ten days after upon the demand of a peace officer, produce proof of insurance in force for the vehicle that was being operated at the time of the demand, to the district court administrator no later than the date and time specified in the citation for the driver's first court appearance. The required proof of insurance may be sent by the driver by mail as long as it is received within ten days no later than the date and time specified in the citation for the driver's first court appearance. A driver who is not the owner does not violate this section unless the driver knew or had reason to know that the owner did not have proof of insurance required by this section, provided that the driver provides the officer with the owner's name and address at the time of the demand or complies with subdivision 3.

Sec. 6. Minnesota Statutes 1994, section 169.792, subdivision 3, is amended to read:

Subd. 3. [REQUIREMENT FOR DRIVER WHO IS NOT OWNER.] If the driver is not the owner of the vehicle, then the driver shall provide the officer with the name and address of the owner at the time of the demand or shall within ten days of the officer's demand, no later than the date and time specified in the citation for the driver's first court appearance, provide the district court administrator with proof of insurance or the name and address of the owner. Upon receipt of the owner's name and address, the district court administrator shall forward the information to the law enforcement agency. If the name and address received from the driver do not match information available to the district court administrator, the district court administrator shall notify the law enforcement agency of the discrepancy.

Sec. 7. Minnesota Statutes 1994, section 169.792, subdivision 5, is amended to read:

Subd. 5. [WRITTEN NOTICE.] (a) When proof of insurance is demanded and none is in possession, the law enforcement agency may send or give the driver written notice as provided herein in this subdivision, unless the officer issues a citation to the driver under section 169.791 or 169.797. If the driver is not the owner and does not produce the required proof of insurance within ten days of the demand, the law enforcement agency may send or give written notice to the owner of the vehicle.

(b) Within ten days after receipt of the notice, if given, the driver or owner shall produce the required proof of insurance to the place stated in the notice. Notice to the driver or owner by mail is presumed to be received within five days after mailing. It is not a defense that a person failed to notify the department of public safety of a change of name or address as required under section 171.11.

(c) The department of public safety shall prescribe a form setting forth the written notice to be provided to the driver or owner. The department shall, upon request, provide a sample of the form to any law enforcement agency. The notice shall provide that the driver or owner must produce the proof of insurance to the law enforcement agency, at the place specified in the notice. The notice shall also state:

(1) that Minnesota law requires every driver and owner to produce an insurance identification card, insurance policy, or written statement indicating that the vehicle had insurance at the time of an officer's demand within ten days of the demand, no later than the date and time specified in the citation for the driver's first court appearance, if a citation is issued, or within ten days of receipt of the written notice if a written notice is sent or given, provided, however, that a driver who does not own the vehicle shall provide the name and address of the owner;

(2) that if the driver fails to produce the information within ten days from the date of demand the required time or if the owner fails to produce the information within ten days of receipt of the notice from the peace officer, the commissioner of public safety shall revoke the person's driver's license or permit to drive for a minimum of 30 days, and shall revoke the registration of the vehicle;

(3) that any person who displays or causes another to display an insurance identification card, insurance policy, or written statement, knowing that the insurance is not in force, is guilty of a misdemeanor; and

(4) that any person who alters or makes a fictitious identification card, insurance policy, or written statement, or knowingly displays an altered or fictitious identification card, insurance policy, or written statement, is guilty of a misdemeanor.

Sec. 8. Minnesota Statutes 1994, section 169.792, subdivision 6, is amended to read:

Subd. 6. [REPORT TO COMMISSIONER OF PUBLIC SAFETY.] If a driver fails to produce the required proof of insurance or name and address of the owner within ten days of the demand no later than the date and time specified in the citation for the driver's first court appearance, the district court administrator shall report the failure to the commissioner. If an owner who is not the driver fails to produce the required proof of insurance, or if a driver to whom a citation has not been issued does not provide proof of insurance or the owner's name and address, within ten days of receipt of the notice, the law enforcement agency shall report the failure to the commissioner. Failure to produce proof of insurance or the owner's name and address as required by this section must be reported to the commissioner promptly regardless of the status or disposition of any related criminal charges.

Sec. 9. [171.174] [SUSPENSION; FLEEING PEACE OFFICER IN MOTOR VEHICLE.]

The commissioner of public safety shall suspend the driver's license of a person charged with fleeing a peace officer under section 609.487 if the court has notified the commissioner under subdivision 5 of that section. The suspension shall continue until the charge is adjudicated. A limited license under section 171.30 may be issued only upon recommendation of the court.

Sec. 10. [171.175] [REVOCATION; FLEEING PEACE OFFICER OFFENSE.]

The commissioner of public safety shall revoke the driver's license of a person upon receipt of a certificate of conviction showing that the person has in a motor vehicle violated section 609.487, subdivision 3 or 4, or an ordinance in conformity with those subdivisions. The commissioner shall revoke the driver's license as follows:

(1) for the first offense under section 609.487, subdivision 3, for not less than one year;

(2) for the second offense or subsequent offenses under section 609.487, subdivision 3, for not less than three years;

(3) for an offense under section 609.487, subdivision 4, clause (a), for not less than ten years;

(4) for an offense under section 609.487, subdivision 4, clause (b), for not less than seven years; and

(5) for an offense under section 609.487, subdivision 4, clause (c), for not less than five years.

A limited license under section 171.30 may not be issued for one-half of the revocation period specified in clauses (1) to (5) and after that period is over only upon and as recommended by the adjudicating court.

Sec. 11. Minnesota Statutes 1995 Supplement, section 243.166, subdivision 1, is amended to read:

Subdivision 1. [REGISTRATION REQUIRED.] (a) A person shall register under this section if:

(1) the person was charged with or petitioned for a felony violation of or attempt to violate any of the following, and convicted of or adjudicated delinquent for that offense or of another offense arising out of the same set of circumstances:

(i) murder under section 609.185, clause (2);

(ii) kidnapping under section 609.25, involving a minor victim; or

(iii) criminal sexual conduct under section 609.342; 609.343; 609.344; or 609.345; or

(2) the person was charged with or petitioned for using a minor in a sexual performance in violation of section 617.246, or possessing pictorial representations of minors in violation of section 617.247, and convicted of or adjudicated delinquent for that offense or another offense arising out of the same set of circumstances; or

(3) the person was convicted of a predatory crime as defined in section 609.1352, and the offender was sentenced as a patterned sex offender or the court found on its own motion or that of the prosecutor that the crime was part of a predatory pattern of behavior that had criminal sexual conduct as its goal; or

(3) (4) the person was convicted of or adjudicated delinquent for violating a law of the United States similar to the offenses described in clause (1) or, (2), or (3).

(b) A person also shall register under this section if:

(1) the person was convicted of or adjudicated delinquent in another state for an offense that would be a violation of a law described in paragraph (a) if committed in this state;

(2) the person enters and remains in this state for 30 days or longer; and

(3) ten years have not elapsed since the person was released from confinement or, if the person was not confined, since the person was convicted of or adjudicated delinquent for the offense that triggers registration.

Sec. 12. Minnesota Statutes 1994, section 244.09, subdivision 5, is amended to read:

Subd. 5. The commission shall, on or before January 1, 1980, promulgate sentencing guidelines for the district court. The guidelines shall be based on reasonable offense and offender characteristics. The guidelines promulgated by the commission shall be advisory to the district court and shall establish:

(1) The circumstances under which imprisonment of an offender is proper; and

(2) A presumptive, fixed sentence for offenders for whom imprisonment is proper, based on each appropriate combination of reasonable offense and offender characteristics. The guidelines may provide for an increase or decrease of up to 15 percent in the presumptive, fixed sentence.

The sentencing guidelines promulgated by the commission may also establish appropriate sanctions for offenders for whom imprisonment is not proper. Any guidelines promulgated by the commission establishing sanctions for offenders for whom imprisonment is not proper shall make specific reference to noninstitutional sanctions, including but not limited to the following: payment of fines, day fines, restitution, community work orders, work release programs in local facilities, community based residential and nonresidential programs, incarceration in a local correctional facility, and probation and the conditions thereof.

In establishing and modifying the sentencing guidelines, the primary consideration of the commission shall be public safety. The commission shall also consider current sentencing and release practices and; correctional resources, including but not limited to the capacities of local and state correctional facilities; and the adverse social and economic impacts that the offense and the fear of future offenses have or may have on the community in which the offense occurs.

The provisions of sections 14.001 to 14.69 do not apply to the promulgation of the sentencing guidelines, and the sentencing guidelines, including severity levels and criminal history scores, are not subject to review by the legislative commission to review administrative rules. However, on or before January 1, 1986, the commission shall adopt rules pursuant to sections 14.001 to 14.69 which establish procedures for the promulgation of the sentencing guidelines, including procedures for the promulgation of severity levels and criminal history scores, and these rules shall be subject to review by the legislative commission to review administrative rules.

Sec. 13. Minnesota Statutes 1995 Supplement, section 256.98, subdivision 1, is amended to read:

Subdivision 1. [WRONGFULLY OBTAINING ASSISTANCE.] A person who commits any of the following acts or omissions is guilty of theft and shall be sentenced pursuant to section 609.52, subdivision 3, clauses (1), (2), (3), and (5):

(1) obtains, or attempts to obtain, or aids or abets any person to obtain by means of a willfully false statement or representation, by intentional concealment of a material fact, or by impersonation or other fraudulent device, assistance or the continued receipt of assistance to which the person is not entitled or assistance greater than that to which the person is entitled, or who;

(2) knowingly aids or abets in buying or in any way disposing of the property of a recipient or applicant of assistance without the consent of the county agency with intent to defeat the purposes of sections 256.12, 256.031 to 256.0361, 256.72 to 256.871, and chapter 256B, or all of these sections is guilty of theft and shall be sentenced pursuant to section 609.52, subdivision 3, clauses (2), (3)(a) and (c), (4), and (5).; or

(3) knowingly fails to report a change or anticipated change in circumstances as required by Minnesota Rules, part 9500.2700, subpart 7, and continues to receive assistance to which the person is not entitled or assistance greater than that to which the person is entitled.

The continued receipt of assistance to which the person is not entitled or greater than that to which the person is entitled as a result of any of the acts described in this subdivision shall be deemed to be continuing offenses from the date that the first act or failure to act occurred.

Sec. 14. Minnesota Statutes 1995 Supplement, section 609.20, is amended to read:

609.20 [MANSLAUGHTER IN THE FIRST DEGREE.]

Whoever does any of the following is guilty of manslaughter in the first degree and may be sentenced to imprisonment for not more than 15 years or to payment of a fine of not more than $30,000, or both:

(1) intentionally causes the death of another person in the heat of passion provoked by such words or acts of another as would provoke a person of ordinary self-control under like circumstances, provided that the crying of a child does not constitute provocation;

(2) violates section 609.224 and causes the death of another or causes the death of another in committing or attempting to commit a misdemeanor or gross misdemeanor offense with such force and violence that death of or great bodily harm to any person was reasonably foreseeable, and murder in the first or second degree was not committed thereby;

(3) intentionally causes the death of another person because the actor is coerced by threats made by someone other than the actor's coconspirator and which cause the actor reasonably to believe that the act performed by the actor is the only means of preventing imminent death to the actor or another;

(4) proximately causes the death of another, without intent to cause death by, directly or indirectly, unlawfully selling, giving away, bartering, delivering, exchanging, distributing, or administering a controlled substance classified in schedule III, IV, or V; or

(5) causes the death of another in committing or attempting to commit a violation of section 609.377 (malicious punishment of a child), and murder in the first, second, or third degree is not committed thereby.

As used in this section, a "person of ordinary self-control" does not include a person under the influence of intoxicants or a controlled substance.

Sec. 15. Minnesota Statutes 1994, section 609.2231, subdivision 2, is amended to read:

Subd. 2. [FIREFIGHTERS AND EMERGENCY MEDICAL PERSONNEL.] Whoever assaults any of the following persons and inflicts demonstrable bodily harm is guilty of a gross misdemeanor felony and may be sentenced to imprisonment for not more than two years or to payment of a fine of not more than $4,000, or both:

(1) a member of a municipal or volunteer fire department or emergency medical services personnel unit in the performance of the member's duties; or

(2) a physician, nurse, or other person providing health care services in a hospital emergency department; or

(3) an employee of the department of natural resources who is engaged in forest fire activities.

Sec. 16. Minnesota Statutes 1994, section 609.2231, is amended by adding a subdivision to read:

Subd. 2a. [CERTAIN DEPARTMENT OF NATURAL RESOURCES EMPLOYEES.] Whoever assaults and inflicts demonstrable bodily harm on an employee of the department of natural resources who is engaged in forest fire activities is guilty of a gross misdemeanor.

Sec. 17. Minnesota Statutes 1995 Supplement, section 609.3451, subdivision 1, is amended to read:

Subdivision 1. [CRIME DEFINED.] A person is guilty of criminal sexual conduct in the fifth degree:

(1) if the person engages in nonconsensual sexual contact; or

(2) the person engages in masturbation or lewd exhibition of the genitals in the presence of a minor under the age of 16, knowing or having reason to know the minor is present.

For purposes of this section, "sexual contact" has the meaning given in section 609.341, subdivision 11, paragraph (a), clauses (i) and (iv), but does not include the intentional touching of the clothing covering the immediate area of the buttocks. Sexual contact also includes the intentional removal or attempted removal of clothing covering the complainant's intimate parts or undergarments, and the nonconsensual touching by the complainant of the actor's intimate parts, effected by the actor, if the action is performed with sexual or aggressive intent.

Sec. 18. Minnesota Statutes 1995 Supplement, section 609.485, subdivision 2, is amended to read:

Subd. 2. [ACTS PROHIBITED.] Whoever does any of the following may be sentenced as provided in subdivision 4:

(1) escapes while held in lawful custody on a charge or conviction of a crime, or while held in lawful custody on an allegation or adjudication of a delinquent act while 18 years of age;

(2) transfers to another, who is in lawful custody on a charge or conviction of a crime, or introduces into an institution in which the latter is confined, anything usable in making such escape, with intent that it shall be so used;

(3) having another in lawful custody on a charge or conviction of a crime, intentionally permits the other to escape;

(4) escapes while in a facility designated under section 253B.18, subdivision 1, pursuant to a court commitment order after a finding of not guilty by reason of mental illness or mental deficiency of a crime against the person, as defined in section 253B.02, subdivision 4a. Notwithstanding section 609.17, no person may be charged with or convicted of an attempt to commit a violation of this clause; or

(5) escapes while in a facility designated under section 253B.18, subdivision 1, pursuant to a court commitment order under section 253B.185 or 526.10.

For purposes of clause (1), "escapes while held in lawful custody" includes absconding from electronic monitoring or absconding after removing an electronic monitoring device from the person's body.

Sec. 19. Minnesota Statutes 1995 Supplement, section 609.485, subdivision 4, is amended to read:

Subd. 4. [SENTENCE.] (a) Except as otherwise provided in subdivision 3a, whoever violates this section may be sentenced as follows:

(1) if the person who escapes is in lawful custody on a charge or conviction of a felony, to imprisonment for not more than five years or to payment of a fine of not more than $10,000, or both;

(2) if the person who escapes is in lawful custody after a finding of not guilty by reason of mental illness or mental deficiency of a crime against the person, as defined in section 253B.02, subdivision 4a, or pursuant to a court commitment order under section 253B.185 or 526.10, to imprisonment for not more than one year and one day or to payment of a fine of not more than $3,000, or both; or

(3) if such charge or conviction is for a gross misdemeanor or misdemeanor, or if the person who escapes is in lawful custody on an allegation or adjudication of a delinquent act while 18 years of age, to imprisonment for not more than one year or to payment of a fine of not more than $3,000, or both.

(b) If the escape was a violation of subdivision 2, clause (1), (2), or (3), and was effected by violence or threat of violence against a person, the sentence may be increased to not more than twice those permitted in paragraph (a), clauses (1) and (3).

(c) Unless a concurrent term is specified by the court, a sentence under this section shall be consecutive to any sentence previously imposed or which may be imposed for any crime or offense for which the person was in custody when the person escaped.

(d) Notwithstanding paragraph (c), if a person who was committed to the commissioner of corrections under section 260.185 escapes from the custody of the commissioner while 18 years of age, the person's sentence under this section shall commence on the person's 19th birthday or on the person's date of discharge by the commissioner of corrections, whichever occurs first. However, if the person described in this clause is convicted under this section after becoming 19 years old and after having been discharged by the commissioner, the person's sentence shall commence upon imposition by the sentencing court.

(e) Notwithstanding paragraph (c), if a person who is in lawful custody on an allegation or adjudication of a delinquent act while 18 years of age escapes from a local juvenile correctional facility, the person's sentence under this section begins on the person's 19th birthday or on the person's date of discharge from the jurisdiction of the juvenile court, whichever occurs first. However, if the person described in this paragraph is convicted after becoming 19 years old and after discharge from the jurisdiction of the juvenile court, the person's sentence begins upon imposition by the sentencing court.

Sec. 20. Minnesota Statutes 1994, section 609.487, is amended by adding a subdivision to read:

Subd. 5. [SUSPENSION; FLEEING PEACE OFFICER OFFENSE.] When a person is charged with operating a motor vehicle in violation of subdivision 3 or 4, or any ordinance in conformity with those subdivisions, the court shall notify the commissioner of public safety and order the commissioner to suspend the driver's license of the person for all vehicle classes.

Sec. 21. Minnesota Statutes 1994, section 609.487, is amended by adding a subdivision to read:

Subd. 6. [REVOCATION; FLEEING PEACE OFFICER OFFENSE.] When a person is convicted of operating a motor vehicle in violation of subdivision 3 or 4, or an ordinance in conformity with those subdivisions, the court shall notify the commissioner of public safety and order the commissioner to revoke the driver's license of the person.

Sec. 22. Minnesota Statutes 1995 Supplement, section 609.52, subdivision 1, is amended to read:

Subdivision 1. [DEFINITIONS.] In this section:

(1) "Property" means all forms of tangible property, whether real or personal, without limitation including documents of value, electricity, gas, water, corpses, domestic animals, dogs, pets, fowl, and heat supplied by pipe or conduit by municipalities or public utility companies and articles, as defined in clause (4), representing trade secrets, which articles shall be deemed for the purposes of Extra Session Laws 1967, chapter 15 to include any trade secret represented by the article.

(2) "Movable property" is property whose physical location can be changed, including without limitation things growing on, affixed to, or found in land.

(3) "Value" means the retail market value at the time of the theft, or if the retail market value cannot be ascertained, the cost of replacement of the property within a reasonable time after the theft, or in the case of a theft or the making of a copy of an article representing a trade secret, where the retail market value or replacement cost cannot be

ascertained, any reasonable value representing the damage to the owner which the owner has suffered by reason of losing an advantage over those who do not know of or use the trade secret. For a check, draft, or other order for the payment of money, "value" means the amount of money promised or ordered to be paid under the terms of the check, draft, or other order. For a theft committed within the meaning of subdivision 2, clause (5), (a) and (b), if the property has been restored to the owner, "value" means the value of the use of the property or the damage which it sustained, whichever is greater, while the owner was deprived of its possession, but not exceeding the value otherwise provided herein.

(4) "Article" means any object, material, device or substance, including any writing, record, recording, drawing, sample specimen, prototype, model, photograph, microorganism, blueprint or map, or any copy of any of the foregoing.

(5) "Representing" means describing, depicting, containing, constituting, reflecting or recording.

(6) "Trade secret" means information, including a formula, pattern, compilation, program, device, method, technique, or process, that:

(i) derives independent economic value, actual or potential, from not being generally known to, and not being readily ascertainable by proper means by, other persons who can obtain economic value from its disclosure or use, and

(ii) is the subject of efforts that are reasonable under the circumstances to maintain its secrecy.

(7) "Copy" means any facsimile, replica, photograph or other reproduction of an article, and any note, drawing, or sketch made of or from an article while in the presence of the article.

(8) "Property of another" includes property in which the actor is coowner or has a lien, pledge, bailment, or lease or other subordinate interest, property transferred by the actor in circumstances which are known to the actor and which make the transfer fraudulent as defined in section 513.44, and property of a partnership of which the actor is a member, unless the actor and the victim are husband and wife. It does not include property in which the actor asserts in good faith a claim as a collection fee or commission out of property or funds recovered, or by virtue of a lien, setoff, or counterclaim.

(9) "Services" include but are not limited to labor, professional services, transportation services, electronic computer services, the supplying of hotel accommodations, restaurant services, entertainment services, advertising services, telecommunication services, and the supplying of equipment for use.

(10) "Motor vehicle" means a self-propelled device for moving persons or property or pulling implements from one place to another, whether the device is operated on land, rails, water, or in the air.

Sec. 23. Minnesota Statutes 1994, section 609.583, is amended to read:

609.583 [SENTENCING; FIRST BURGLARY OF A DWELLING.]

Except as provided in section 609.582, subdivision 1a, in determining an appropriate disposition for a first offense of burglary of a dwelling, the court shall presume that a stay of execution with at least a 90-day period of incarceration as a condition of probation shall be imposed unless the defendant's criminal history score determined according to the sentencing guidelines indicates a presumptive executed sentence, in which case the presumptive executed sentence shall be imposed unless the court departs from the sentencing guidelines pursuant to section 244.10. A stay of imposition of sentence may be granted only if accompanied by a statement on the record of the reasons for it. The presumptive period of incarceration may be waived in whole or in part by the court if the defendant provides restitution or performs community work service.

Sec. 24. [609.586] [POSSESSION OF CODE GRABBING DEVICES; PENALTY.]

Subdivision 1. [DEFINITION.] As used in this section, "code grabbing device" means a device that can receive and record the coded signal sent by the transmitter of a security or other electronic system and can play back the signal to disarm or operate that system.

Subd. 2. [CRIME.] Whoever possesses a code grabbing device with intent to use the device to commit an unlawful act may be sentenced to imprisonment for not more than three years or to payment of a fine of not more than $5,000, or both.

Sec. 25. Minnesota Statutes 1994, section 609.596, is amended to read:

609.596 [KILLING OR HARMING A POLICE DOG.]

Subdivision 1. [FELONY.] Whoever intentionally and without justification causes the death of a police dog when the dog is involved in law enforcement or correctional investigation or apprehension, or the dog is in the custody of or under the control of a peace officer, as defined in section 626.84, subdivision 1, paragraph (c), or an employee of a correctional facility, as defined in section 241.021, subdivision 1, clause (5), is guilty of a felony and may be sentenced to imprisonment for not more than two years or to payment of a fine of not more than $4,000 $5,000, or both. In lieu of a fine, the court may order a defendant convicted under this subdivision to pay restitution to the affected agency to replace the police dog, in an amount not to exceed $5,000.

Subd. 2. [GROSS MISDEMEANOR.] Whoever intentionally and without justification causes substantial or great bodily harm to a police dog when the dog is involved in law enforcement or correctional investigation or apprehension, or the dog is in the custody of or under the control of a peace officer or an employee of a correctional facility, as defined in section 241.021, subdivision 1, clause (5), is guilty of a gross misdemeanor.

Sec. 26. Minnesota Statutes 1995 Supplement, section 617.23, is amended to read:

617.23 [INDECENT EXPOSURE; PENALTIES.]

(a) A person is guilty of a misdemeanor who in any public place, or in any place where others are present:

(1) willfully and lewdly exposes the person's body, or the private parts thereof;

(2) procures another to expose private parts; or

(3) engages in any open or gross lewdness or lascivious behavior, or any public indecency other than behavior specified in clause (1) or (2) or this clause.

(b) A person is guilty of a gross misdemeanor if:

(1) the person violates this section in the presence of a minor under the age of 16; or

(2) the person violates this section after having been previously convicted of violating this section, sections 609.342 to 609.3451, or a statute from another state in conformity with any of those sections.

(c) A person is guilty of a felony and may be sentenced to imprisonment for not more than five years or to payment of a fine of not more than $10,000, or both, if the person violates this section in the presence of a minor under the age of 16 after having been previously convicted of violating this section, or a statute from another state in conformity with this section, in the presence of a minor under the age of 16.

Sec. 27. [REPEALER.]

Minnesota Statutes 1994, section 609.495, subdivision 2, is repealed.

Sec. 28. [EFFECTIVE DATE.]

Sections 1 to 8 are effective August 1, 1996, and apply to demands for proof of insurance made on or after that date.

Section 11 is effective August 1, 1996, and applies to persons who are released from prison on or after that date, or who are under supervision as of that date, or who enter this state on or after that date.

Sections 9, 10, 12 to 22, and 24 to 26 are effective August 1, 1996, and apply to offenses committed on or after that date.

Section 23 is effective August 1, 1996.

Section 1. Minnesota Statutes 1995 Supplement, section 518B.01, subdivision 14, is amended to read:

Subd. 14. [VIOLATION OF AN ORDER FOR PROTECTION.] (a) Whenever an order for protection is granted pursuant to this section, and the respondent or person to be restrained knows of the order, violation of the order for protection is a misdemeanor. Upon conviction, the defendant must be sentenced to a minimum of three days imprisonment and must be ordered to participate in counseling or other appropriate programs selected by the court. If the court stays imposition or execution of the jail sentence and the defendant refuses or fails to comply with the court's treatment order, the court must impose and execute the stayed jail sentence. A person is guilty of a gross misdemeanor who violates this paragraph during the time period between a previous conviction under this paragraph; sections 609.221 to 609.224; 609.2242; 609.713, subdivision 1 or 3; 609.748, subdivision 6; 609.749; or a similar law of another state and the end of the five years following discharge from sentence for that conviction. Upon conviction, the defendant must be sentenced to a minimum of ten days imprisonment and must be ordered to participate in counseling or other appropriate programs selected by the court. Notwithstanding section 609.135, the court must impose and execute the minimum sentence provided in this paragraph for gross misdemeanor convictions.

(b) A peace officer shall arrest without a warrant and take into custody a person whom the peace officer has probable cause to believe has violated an order granted pursuant to this section restraining the person or excluding the person from the residence or the petitioner's place of employment, even if the violation of the order did not take place in the presence of the peace officer, if the existence of the order can be verified by the officer. The person shall be held in custody for at least 36 hours, excluding the day of arrest, Sundays, and holidays, unless the person is released earlier by a judge or judicial officer. A peace officer acting in good faith and exercising due care in making an arrest pursuant to this paragraph is immune from civil liability that might result from the officer's actions.

(c) A violation of an order for protection shall also constitute contempt of court and be subject to the penalties therefor.

(d) If the court finds that the respondent has violated an order for protection and that there is reason to believe that the respondent will commit a further violation of the provisions of the order restraining the respondent from committing acts of domestic abuse or excluding the respondent from the petitioner's residence, the court may require the respondent to acknowledge an obligation to comply with the order on the record. The court may require a bond sufficient to deter the respondent from committing further violations of the order for protection, considering the financial resources of the respondent, and not to exceed $10,000. If the respondent refuses to comply with an order to acknowledge the obligation or post a bond under this paragraph, the court shall commit the respondent to the county jail during the term of the order for protection or until the respondent complies with the order under this paragraph. The warrant must state the cause of commitment, with the sum and time for which any bond is required. If an order is issued under this paragraph, the court may order the costs of the contempt action, or any part of them, to be paid by the respondent. An order under this paragraph is appealable.

(e) Upon the filing of an affidavit by the petitioner, any peace officer, or an interested party designated by the court, alleging that the respondent has violated any order for protection granted pursuant to this section, the court may issue an order to the respondent, requiring the respondent to appear and show cause within 14 days why the respondent should not be found in contempt of court and punished therefor. The hearing may be held by the court in any county in which the petitioner or respondent temporarily or permanently resides at the time of the alleged violation. The court also shall refer the violation of the order for protection to the appropriate prosecuting authority for possible prosecution under paragraph (a).

(f) If it is alleged that the respondent has violated an order for protection issued under subdivision 6 and the court finds that the order has expired between the time of the alleged violation and the court's hearing on the violation, the court may grant a new order for protection under subdivision 6 based solely on the respondent's alleged violation of the prior order, to be effective until the hearing on the alleged violation of the prior order. If the court finds that the respondent has violated the prior order, the relief granted in the new order for protection shall be extended for a fixed period, not to exceed one year, except when the court determines a longer fixed period is appropriate.

(g) The admittance into petitioner's dwelling of an abusing party excluded from the dwelling under an order for protection is not a violation by the petitioner of the order for protection.

A peace officer is not liable under section 609.43, clause (1), for a failure to perform a duty required by paragraph (b).

(h) When a person is convicted of violating an order for protection under this section and the court determines that the person used a firearm in any way during commission of the violation, the court may order that the person is prohibited from possessing any type of firearm for any period longer than three years or for the remainder of the person's life. A person who violates this paragraph is guilty of a gross misdemeanor. At the time of the conviction, the court shall inform the defendant whether and for how long the defendant is prohibited from possessing a firearm and that it is a gross misdemeanor to violate this paragraph. The failure of the court to provide this information to a defendant does not affect the applicability of the firearm possession prohibition or the gross misdemeanor penalty to that defendant.

(i) Except as otherwise provided in paragraph (h), when a person is convicted of violating an order for protection under this section, the court shall inform the defendant that the defendant is prohibited from possessing a pistol for three years from the date of conviction and that it is a gross misdemeanor offense to violate this prohibition. The failure of the court to provide this information to a defendant does not affect the applicability of the pistol possession prohibition or the gross misdemeanor penalty to that defendant.

(j) Except as otherwise provided in paragraph (h), a person is not entitled to possess a pistol if the person has been convicted after August 1, 1996, of violating an order for protection under this section, unless three years have elapsed from the date of conviction and, during that time, the person has not been convicted of any other violation of this section. Property rights may not be abated but access may be restricted by the courts. A person who possesses a pistol in violation of this paragraph is guilty of a gross misdemeanor.

(k) If the court determines that a person convicted of violating an order for protection under this section owns or possesses a firearm and used it in any way during the commission of the violation, it shall order that the firearm be summarily forfeited under section 609.5316, subdivision 3.

Sec. 2. Minnesota Statutes 1994, section 609.035, subdivision 1, is amended to read:

Subdivision 1. Except as provided in subdivision 2, subdivision 3, and in sections 609.251, 609.585, 609.21, subdivisions 3 and 4, 609.2691, 609.486, 609.494, and 609.856, if a person's conduct constitutes more than one offense under the laws of this state, the person may be punished for only one of the offenses and a conviction or acquittal of any one of them is a bar to prosecution for any other of them. All the offenses, if prosecuted, shall be included in one prosecution which shall be stated in separate counts.

Sec. 3. Minnesota Statutes 1994, section 609.035, is amended by adding a subdivision to read:

Subd. 3. [EXCEPTION; FIREARMS OFFENSES.] Notwithstanding section 609.04, a prosecution for or conviction of a violation of section 609.165, 624.713, subdivision 1, clause (a) or (b), or 624.714, subdivision 1, is not a bar to conviction of or punishment for any other crime committed by the defendant as part of the same conduct. Imposition of a sentence, whether executed or stayed, for a violation of section 609.165, 624.713, subdivision 1, clause (a) or (b), or 624.714, subdivision 1, that is consecutive to a sentence imposed for another crime does not constitute a departure from the sentencing guidelines.

Sec. 4. Minnesota Statutes 1994, section 609.11, subdivision 9, is amended to read:

Subd. 9. [APPLICABLE OFFENSES.] The crimes for which mandatory minimum sentences shall be served as provided in this section are: murder in the first, second, or third degree; assault in the first, second, or third degree; burglary; kidnapping; false imprisonment; manslaughter in the first or second degree; aggravated robbery; simple robbery; criminal sexual conduct under the circumstances described in sections 609.342, subdivision 1, clauses (a) to (f); 609.343, subdivision 1, clauses (a) to (f); and 609.344, subdivision 1, clauses (a) to (e) and (h) to (j); escape from custody; arson in the first, second, or third degree; drive-by shooting under section 609.66, subdivision 1e; possession or other unlawful use of a firearm in violation of section 609.165, subdivision 1b, or 624.713, subdivision 1, clause (a) or (b), a felony violation of chapter 152; or any attempt to commit any of these offenses.

Sec. 5. Minnesota Statutes 1995 Supplement, section 609.152, subdivision 1, is amended to read:

Subdivision 1. [DEFINITIONS.] (a) As used in this section, the following terms have the meanings given.

(b) "Conviction" means any of the following accepted and recorded by the court: a plea of guilty, a verdict of guilty by a jury, or a finding of guilty by the court. The term includes a conviction by any court in Minnesota or another jurisdiction.

(c) "Prior conviction" means a conviction that occurred before the offender committed the next felony resulting in a conviction and before the offense for which the offender is being sentenced under this section.

(d) "Violent crime" means a violation of or an attempt or conspiracy to violate any of the following laws of this state or any similar laws of the United States or any other state: section 609.165; 609.185; 609.19; 609.195; 609.20; 609.205; 609.21; 609.221; 609.222; 609.223; 609.228; 609.235; 609.24; 609.245; 609.25; 609.255; 609.2661; 609.2662; 609.2663; 609.2664; 609.2665; 609.267; 609.2671; 609.268; 609.342; 609.343; 609.344; 609.345; 609.498, subdivision 1; 609.561; 609.562; 609.582, subdivision 1; 609.66, subdivision 1e; 609.687; 609.855, subdivision 5; any provision of sections 609.229; 609.377; 609.378; and 609.749; and 624.713 that is punishable by a felony penalty; or any provision of chapter 152 that is punishable by a maximum sentence of 15 years or more.

Sec. 6. Minnesota Statutes 1994, section 609.165, subdivision 1a, is amended to read:

Subd. 1a. [CERTAIN CONVICTED FELONS INELIGIBLE TO POSSESS FIREARMS.] The order of discharge must provide that a person who has been convicted of a crime of violence, as defined in section 624.712, subdivision 5, is not entitled to ship, transport, possess, or receive: (1) a pistol or semiautomatic military-style assault weapon for the remainder of the person's lifetime; or (2) any other type of firearm until ten years have elapsed since the person was restored to civil rights and during that time the person was not convicted of any other crime of violence. Any person who has received such a discharge 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. 7. Minnesota Statutes 1994, section 609.165, subdivision 1b, is amended to read:

Subd. 1b. [VIOLATION AND PENALTY.] (a) Any person who has been convicted of a crime of violence, as defined in section 624.712, subdivision 5, and who ships, transports, possesses, or receives a pistol or semiautomatic military-style assault weapon at any time, or who ships, transports, possesses, or receives any other type of firearm in violation of subdivision 1a before ten years have elapsed since the person was restored to civil rights, commits a felony and may be sentenced to imprisonment for not more than three 20 years or to payment of a fine of not more than $6,000 $35,000, or both.

(b) Nothing in this section shall be construed to bar a conviction and sentencing for a violation of section 624.713, subdivision 1, clause (b) 2.

Sec. 8. Minnesota Statutes 1995 Supplement, section 609.2242, subdivision 2, is amended to read:

Subd. 2. [GROSS MISDEMEANOR.] Whoever violates subdivision 1:

(1) during the time period between a previous conviction under this section or sections 609.221 to 609.2231, 609.224, 609.342 to 609.345, or 609.713 against a family or household member as defined in section 518B.01, subdivision 2, and the end of the five years following discharge from sentence for that conviction; or

(2) knowing or having reason to know that a child under 18 years of age is present and likely to witness the violation,

is guilty of a gross misdemeanor and may be sentenced to imprisonment for not more than one year or to payment of a fine of not more than $3,000, or both.

Sec. 9. [609.2243] [DOMESTIC ABUSE ASSESSMENTS.]

Subdivision 1. [DOMESTIC ABUSE ASSESSMENT.] A domestic abuse assessment must be conducted and an assessment report submitted to the court by the county agency responsible for administering the assessment when:

(1) a defendant is convicted of an offense described in section 518B.01, subdivision 2; or

(2) a defendant is arrested for committing an offense described in section 518B.01, subdivision 2, but is convicted of another offense arising out of the same circumstances surrounding the arrest.

Subd. 2. [REPORT.] (a) The assessment report must contain an evaluation of the convicted defendant including the circumstances of the offense, impact on the victim, the defendant's prior record, characteristics and history of alcohol and chemical use problems, and amenability to domestic abuse counseling programs. The report is classified as private data on individuals as defined in section 13.02, subdivision 12.

(b) The assessment report must include:

(1) a recommendation on any limitations on contact with the victim;

(2) a recommendation for the defendant to enter and successfully complete domestic abuse counseling and any aftercare found necessary by the assessment;

(3) a recommendation for chemical dependency evaluation and treatment as determined by the evaluation whenever alcohol or drugs were found to be a contributing factor to the offense;

(4) recommendations for other appropriate remedial action or care, which may consist of educational programs, one-on-one counseling, a program or type of treatment that addresses mental health concerns, or a specific explanation why no level of care or action is recommended; and

(5) consequences for failure to abide by conditions set up by the court.

Subd. 3. [ASSESSOR STANDARDS; RULES; ASSESSMENT TIME LIMITS.] A domestic abuse assessment required by this section must be conducted by an assessor approved by the court, the local corrections department, or the commissioner of corrections. The assessor shall have access to any police reports, or other law enforcement data relating to the current offense or previous offenses that are necessary to complete the evaluation. An assessor providing an assessment under this section may not have any direct or shared financial interest or referral relationship resulting in shared financial gain with a treatment provider. An appointment for the defendant to undergo the assessment shall be made by the court, a court services probation officer, or court administrator as soon as possible but in no case more than one week after the defendant's court appearance. The assessment must be completed no later than three weeks after the defendant's court date.

Subd. 4. [DOMESTIC ABUSE ASSESSMENT FEE.] When the court sentences a person convicted of an offense described in section 518B.01, subdivision 2, the court shall impose a domestic abuse assessment fee of $125. This fee must be imposed whether the sentence is executed, stayed, or suspended. The court may not waive payment or authorize payment of the fee in installments unless it makes written findings on the record that the convicted person is indigent or that the fee would create undue hardship for the convicted person or that person's immediate family. The person convicted of the offense and ordered to pay the fee shall pay the fee to the county corrections department or other designated agencies conducting the assessment.

Sec. 10. Minnesota Statutes 1994, section 609.5316, subdivision 3, is amended to read:

Subd. 3. [WEAPONS AND BULLET-RESISTANT VESTS.] Weapons used are contraband and must be summarily forfeited to the appropriate agency upon conviction of the weapon's owner or possessor for a controlled substance crime or; for any offense of this chapter or chapter 624, or for a violation of an order for protection under section 518B.01, subdivision 14. Bullet-resistant vests, as defined in section 609.486, worn or possessed during the commission or attempted commission of a crime are contraband and must be summarily forfeited to the appropriate agency upon conviction of the owner or possessor for a controlled substance crime or for any offense of this chapter. Notwithstanding this subdivision, weapons used and bullet-resistant vests worn or possessed may be forfeited without a conviction under sections 609.531 to 609.5315.

Sec. 11. Minnesota Statutes 1994, section 609.66, subdivision 1a, is amended to read:

Subd. 1a. [FELONY CRIMES; SILENCERS PROHIBITED; RECKLESS DISCHARGE.] (a) Whoever does any of the following is guilty of a felony and may be sentenced as provided in paragraph (b):

(1) sells or has in possession any device designed to silence or muffle the discharge of a firearm;

(2) intentionally discharges a firearm under circumstances that endanger the safety of another; or

(3) recklessly discharges a firearm within a municipality.

(b) A person convicted under paragraph (a) may be sentenced as follows:

(1) if the act was a violation of paragraph (a), clause (2), or if the act was a violation of paragraph (a), clause (1) or (3) and was committed in a public housing zone, as defined in section 152.01, subdivision 19, a school zone, as

defined in section 152.01, subdivision 14a, or a park zone, as defined in section 152.01, subdivision 12a, to imprisonment for not more than five years or to payment of a fine of not more than $10,000, or both; or

(2) otherwise, to imprisonment for not more than two years or to payment of a fine of not more than $5,000, or both.

Sec. 12. Minnesota Statutes 1994, section 609.66, subdivision 2, is amended to read:

Subd. 2. [EXCEPTIONS.] Nothing in this section prohibits the possession of the articles mentioned by museums or collectors of art or for other lawful purposes of public exhibition. Nothing in this section prohibits the possession of devices designed to silence or muffle the discharge of a firearm by law enforcement officers in the course of their official duties, or by any other person complying with the requirements of United States Code, title 18, sections 921 to 930.

Sec. 13. Minnesota Statutes 1994, section 609.666, subdivision 1, is amended to read:

Subdivision 1. [DEFINITIONS.] For purposes of this section, the following words have the meanings given.

(a) "Firearm" means a device designed to be used as a weapon, from which is expelled a projectile by the force of any explosion or force of combustion.

(b) "Child" means a person under the age of 14 18 years.

(c) "Loaded" means the firearm has ammunition in the chamber or magazine, if the magazine is in the firearm, unless the firearm is incapable of being fired by a child who is likely to gain access to the firearm.

Sec. 14. Minnesota Statutes 1994, section 609.666, is amended by adding a subdivision to read:

Subd. 4. [NO ADMINISTRATIVE SEARCH.] Nothing in this section or other law authorizes a government agency or official, or a person authorized to act on behalf of a government agency or official, to conduct an administrative search of a location without a warrant to determine whether a person is complying with this section.

Sec. 15. Minnesota Statutes 1994, section 609.749, is amended by adding a subdivision to read:

Subd. 8. [STALKING; FIREARMS.] (a) When a person is convicted of a harassment or stalking crime under this section and the court determines that the person used a firearm in any way during commission of the crime, the court may order that the person is prohibited from possessing any type of firearm for any period longer than three years or for the remainder of the person's life. A person who violates this paragraph is guilty of a gross misdemeanor. At the time of the conviction, the court shall inform the defendant whether and for how long the defendant is prohibited from possessing a firearm and that it is a gross misdemeanor to violate this paragraph. The failure of the court to provide this information to a defendant does not affect the applicability of the firearm possession prohibition or the gross misdemeanor penalty to that defendant.

(b) Except as otherwise provided in paragraph (a), when a person is convicted of a stalking or harassment crime under this section, the court shall inform the defendant that the defendant is prohibited from possessing a pistol for three years from the date of conviction and that it is a gross misdemeanor offense to violate this prohibition. The failure of the court to provide this information to a defendant does not affect the applicability of the pistol possession prohibition or the gross misdemeanor penalty to that defendant.

(c) Except as otherwise provided in paragraph (a), a person is not entitled to possess a pistol if the person has been convicted after August 1, 1996, of a stalking or harassment crime under this section, unless three years have elapsed from the date of conviction and, during that time, the person has not been convicted of any other violation of this section. Property rights may not be abated but access may be restricted by the courts. A person who possesses a pistol in violation of this paragraph is guilty of a gross misdemeanor.

(d) If the court determines that a person convicted of a stalking or harassment crime under this section owns or possesses a firearm and used it in any way during the commission of the crime, it shall order that the firearm be summarily forfeited under section 609.5316, subdivision 3.

Sec. 16. Minnesota Statutes 1994, section 609.855, subdivision 5, is amended to read:

Subd. 5. [SHOOTING AT OR IN PUBLIC TRANSIT VEHICLE OR FACILITY.] Whoever recklessly discharges a firearm at or in any portion of a public transit vehicle or facility is guilty of a felony and may be sentenced to imprisonment for not more than three years or to payment of a fine of not more than $6,000, or both. If the transit

vehicle or facility is occupied by any person other than the offender, the person may be sentenced to imprisonment for not more than five years or to payment of a fine of not more than $10,000, or both.

Sec. 17. Minnesota Statutes 1995 Supplement, section 624.712, subdivision 5, is amended to read:

Subd. 5. [CRIME OF VIOLENCE.] "Crime of violence" includes murder in the first, second, and third degrees, manslaughter in the first and second degrees, aiding suicide, aiding attempted suicide, felony violations of assault in the first, second, third, and fourth degrees, assaults motivated by bias under section 609.2231, subdivision 4, drive by shootings, terroristic threats, use of drugs to injure or to facilitate crime, crimes committed for the benefit of a gang, commission of a crime while wearing or possessing a bullet-resistant vest, simple robbery, aggravated robbery, kidnapping, false imprisonment, criminal sexual conduct in the first, second, third, and fourth degrees, theft of a firearm, felony theft involving the intentional taking or driving of a motor vehicle without the consent of the owner or the authorized agent of the owner, felony theft involving the taking of property from a burning, abandoned, or vacant building, or from an area of destruction caused by civil disaster, riot, bombing, or the proximity of battle, felony theft involving the theft of a controlled substance, an explosive, or an incendiary device, arson in the first and second degrees, riot, burglary in the first, second, third, and fourth degrees, harassment and stalking, shooting at a public transit vehicle or facility, reckless use of a gun or dangerous weapon, intentionally pointing a gun at or towards a human being, setting a spring gun, and unlawfully owning, possessing, operating a machine gun or short-barreled shotgun, and an attempt to commit any of these offenses, as each of those offenses is defined in chapter 609. "Crime of violence" also includes felony violations of the following: malicious punishment of a child; neglect or endangerment of a child; and chapter 152.

Sec. 18. Minnesota Statutes 1994, section 624.713, subdivision 2, is amended to read:

Subd. 2. [PENALTIES.] A person named in subdivision 1, clause (a) or (b), who possesses a pistol or semiautomatic military-style assault weapon is guilty of a felony and may be sentenced to imprisonment for not more than five years or to payment of a fine of not more than $10,000, or both. A person named in subdivision 1, clause (b), who possesses any type of firearm is guilty of a felony and may be sentenced to imprisonment for not more than 20 years or to payment of a fine of not more than $35,000, or both. A person named in any other clause of subdivision 1 who possesses a pistol or semiautomatic military-style assault weapon any type of firearm is guilty of a gross misdemeanor.

Sec. 19. Minnesota Statutes 1994, section 624.7132, subdivision 8, is amended to read:

Subd. 8. [REPORT NOT REQUIRED.] If the proposed transferee presents a valid transferee permit issued under section 624.7131 or a valid permit to carry issued under section 624.714, or if the transferee is a licensed peace officer, as defined in section 626.84, subdivision 1 the transferor need not file a transfer report.

Sec. 20. Minnesota Statutes 1994, section 624.714, subdivision 1, is amended to read:

Subdivision 1. [PENALTY.] (a) A person, other than a law enforcement officer who has authority to make arrests other than citizens arrests, who carries, holds, or possesses a pistol in a motor vehicle, snowmobile or boat, or on or about the person's clothes or the person, or otherwise in possession or control in a public place or public area without first having obtained a permit to carry the pistol is guilty of a gross misdemeanor. A person who is convicted a second or subsequent time is guilty of a felony and may be sentenced to imprisonment for not more than five years or to payment of a fine of not more than $10,000, or both.

(b) A person who has been issued a permit and who engages in activities other than those for which the permit has been issued, is guilty of a misdemeanor.

Sec. 21. Minnesota Statutes 1994, section 624.714, subdivision 5, is amended to read:

Subd. 5. [GRANTING OF PERMITS.] No permit to carry shall be granted to a person unless the applicant:

(a) (1) is not a person prohibited by section 624.713 from possessing a pistol;

(b) (2) is not a person who has been convicted of violating subdivision 1;

(3) provides a firearms safety certificate recognized by the department of natural resources, evidence of successful completion of a test of ability to use a firearm supervised by the chief of police or sheriff or other satisfactory proof of ability to use a pistol safely; and

(c) (4) has an occupation or personal safety hazard requiring a permit to carry.

Sec. 22. Minnesota Statutes 1994, section 624.7141, is amended to read:

624.7141 [TRANSFER TO INELIGIBLE PERSON.]

Subdivision 1. [TRANSFER PROHIBITED.] Except as otherwise provided in subdivision 2, a person is guilty of a gross misdemeanor who intentionally transfers a pistol or semiautomatic military-style assault weapon to another if the person knows that the transferee:

(1) has been denied a permit to carry under section 624.714 because the transferee is not eligible under section 624.713 to possess a pistol or semiautomatic military-style assault weapon;

(2) has been found ineligible to possess a pistol or semiautomatic military-style assault weapon by a chief of police or sheriff as a result of an application for a transferee permit or a transfer report; or

(3) is disqualified under section 624.713 from possessing a pistol or semiautomatic military-style assault weapon.

Subd. 2. [FELONY.] A violation of this section is a felony if:

(1) the transferee is a minor; or

(2) the transferee possesses or uses the weapon within one year after the transfer in furtherance of a felony crime of violence.

Subd. 3. [SUBSEQUENT ELIGIBILITY.] This section is not applicable to a transfer to a person who became eligible to possess a pistol or semiautomatic military-style assault weapon under section 624.713 after the transfer occurred but before the transferee used or possessed the weapon in furtherance of any crime.

Sec. 23. Minnesota Statutes 1994, section 638.02, subdivision 2, is amended to read:

Subd. 2. Any person, convicted of a crime in any court of this state, who has served the sentence imposed by the court and has been discharged of the sentence either by order of court or by operation of law, may petition the board of pardons for the granting of a pardon extraordinary. Unless the board of pardons expressly provides otherwise in writing by unanimous vote, the application for a pardon extraordinary may not be filed until the applicable time period in clause (1) or (2) has elapsed:

(1) if the person was convicted of a crime of violence as defined in section 624.712, subdivision 5, ten years must have elapsed since the sentence was discharged and during that time the person must not have been convicted of any other crime; and

(2) if the person was convicted of any crime not included within the definition of crime of violence under section 624.712, subdivision 5, five years must have elapsed since the sentence was discharged and during that time the person must not have been convicted of any other crime.

If the board of pardons determines that the person is of good character and reputation, the board may, in its discretion, grant the person a pardon extraordinary. The pardon extraordinary, when granted, has the effect of setting aside and nullifying the conviction and of purging the person of it, and the person shall never after that be required to disclose the conviction at any time or place other than in a judicial proceeding or as part of the licensing process for peace officers.

The application for a pardon extraordinary, the proceedings to review an application, and the notice requirements are governed by the statutes and the rules of the board in respect to other proceedings before the board. The application shall contain any further information that the board may require.

Unless the board of pardons expressly provides otherwise in writing by unanimous vote, if the person was convicted of a crime of violence, as defined in section 624.712, subdivision 5, the pardon extraordinary must expressly provide that the pardon does not entitle the person: (1) to ever ship, transport, possess, or receive a pistol or semiautomatic military-style assault weapon; or (2) to ship, transport, possess, or receive any other type of firearm until ten years have elapsed since the sentence was discharged and during that time the person was not convicted of any other crime of violence.

Sec. 24. [EFFECTIVE DATE.]

Sections 1 to 23 are effective August 1, 1996, and apply to offenses committed on or after that date.

Section 1. Minnesota Statutes 1995 Supplement, section 260.015, subdivision 21, is amended to read:

Subd. 21. [JUVENILE PETTY OFFENDER; JUVENILE PETTY OFFENSE.] (a) "Juvenile petty offense" includes a juvenile alcohol offense, a juvenile controlled substance offense, a violation of section 609.685, or a violation of a local ordinance, which by its terms prohibits conduct by a child under the age of 18 years which would be lawful conduct if committed by an adult.

(b) Except as otherwise provided in paragraph (c), "juvenile petty offense" also includes an offense, other than a violation of section 609.224, 609.324, 609.563, 609.576, or 617.23, that would be a misdemeanor if committed by an adult if:

(1) the child has not been found to be a juvenile petty offender on more than two prior occasions for a misdemeanor-level offense;

(2) the child has not previously been found to be delinquent for a misdemeanor, gross misdemeanor, or felony offense; or

(3) the county attorney designates the child on the petition as a juvenile petty offender, notwithstanding the child's prior record of misdemeanor-level juvenile petty offenses.

(c) "Juvenile petty offense" does not include any of the following:

(1) a misdemeanor-level violation of section 588.20, 609.224, 609.2242, 609.324, 609.563, 609.576, 609.66, or 617.23;

(2) a major traffic offense or an adult court traffic offense, as described in section 260.193;

(3) a misdemeanor-level offense committed by a child whom the juvenile court previously has found to have committed a misdemeanor, gross misdemeanor, or felony offense; or

(4) a misdemeanor-level offense committed by a child whom the juvenile court has found to have committed a misdemeanor-level juvenile petty offense on two or more prior occasions, unless the county attorney designates the child on the petition as a juvenile petty offender notwithstanding this prior record. As used in this clause, "misdemeanor-level juvenile petty offense" includes a misdemeanor-level offense that would have been a juvenile petty offense if it had been committed on or after July 1, 1995.

(d) A child who commits a juvenile petty offense is a "juvenile petty offender."

Sec. 2. Minnesota Statutes 1995 Supplement, section 260.132, subdivision 1, is amended to read:

Subdivision 1. [NOTICE.] When a peace officer, or attendance officer, in the case of a habitual truant, a peace officer or an attendance officer has probable cause to believe that a child:

(1) is in need of protection or services under section 260.015, subdivision 2a, clause (11) or (12);

(2) is a juvenile petty offender; or

(3) has committed a delinquent act that would be a petty misdemeanor or misdemeanor if committed by an adult;

the officer may issue a notice to the child to appear in juvenile court in the county in which the child is found or in the county of the child's residence or, in the case of a juvenile petty offense, or a petty misdemeanor or misdemeanor delinquent act, the county in which the offense was committed. If there is a school attendance review board or county attorney mediation program operating in the child's school district, a notice to appear in juvenile court for a habitual

truant may not be issued until the applicable procedures under section 260A.06 or 260A.07 have been exhausted. The officer shall file a copy of the notice to appear with the juvenile court of the appropriate county. If a child fails to appear in response to the notice, the court may issue a summons notifying the child of the nature of the offense alleged and the time and place set for the hearing. If the peace officer finds it necessary to take the child into custody, sections 260.165 and 260.171 shall apply.

Sec. 3. Minnesota Statutes 1995 Supplement, section 260.132, subdivision 3a, is amended to read:

Subd. 3a. [NO RIGHT TO COUNSEL AT PUBLIC EXPENSE.] Except as otherwise provided in section 260.155, subdivision 2, a child alleged to be a juvenile petty offender may be represented by counsel, but does not have a right to appointment of a public defender or other counsel at public expense.

Sec. 4. Minnesota Statutes 1994, section 260.141, is amended by adding a subdivision to read:

Subd. 1a. [NOTICE IN LIEU OF SUMMONS; PERSONAL SERVICE.] The service of a summons or a notice in lieu of summons shall be as provided in the rules of juvenile procedure.

Sec. 5. Minnesota Statutes 1994, section 260.145, is amended to read:

260.145 [FAILURE TO OBEY SUMMONS OR SUBPOENA; CONTEMPT, ARREST.]

If any person personally served with summons or subpoena fails, without reasonable cause, to appear or bring the child, or if the court has reason to believe the person is avoiding personal service, or if any custodial parent or guardian fails, without reasonable cause, to accompany the child to a hearing as required under section 260.155, subdivision 4b, the person may be proceeded against for contempt of court or the court may issue a warrant for the person's arrest, or both. In any case when it appears to the court that the service will be ineffectual, or that the welfare of the child requires that the child be brought forthwith into the custody of the court, the court may issue a warrant for immediate custody of the child.

Sec. 6. Minnesota Statutes 1995 Supplement, section 260.155, subdivision 2, is amended to read:

Subd. 2. [APPOINTMENT OF COUNSEL.] (a) The child, parent, guardian or custodian has the right to effective assistance of counsel in connection with a proceeding in juvenile court unless the. This right does not apply to a child who is charged with a juvenile petty offense as defined in section 260.015, subdivision 21, unless the child is charged with a third or subsequent juvenile alcohol or controlled substance offense and may be subject to the alternative disposition described in section 260.195, subdivision 4.

(b) The court shall appoint counsel, or stand-by counsel if the child waives the right to counsel, for a child who is:

(1) charged by delinquency petition with a gross misdemeanor or felony offense; or

(2) the subject of a delinquency proceeding in which out-of-home placement has been proposed.

(b) (c) If they desire counsel but are unable to employ it, the court shall appoint counsel to represent the child or the parents or guardian in any case in which it feels that such an appointment is desirable, except a juvenile petty offense as defined in section 260.015, subdivision 21 offender who does not have the right to counsel under paragraph (a).

Sec. 7. Minnesota Statutes 1994, section 260.161, subdivision 1a, is amended to read:

Subd. 1a. [RECORD OF ADJUDICATIONS; NOTICE TO BUREAU OF CRIMINAL APPREHENSION.] (a) The juvenile court shall forward to the Bureau of Criminal Apprehension the following data on juveniles adjudicated delinquent for having committed felony-level criminal sexual conduct:

(1) the name and birth date of the juvenile, including any of the juvenile's known aliases or street names;

(2) the type of act for which the juvenile was adjudicated delinquent and date of the offense; and

(3) the date and county of the adjudication.

(b) The bureau shall retain data on a juvenile until the offender reaches the age of 28. If the offender commits another violation of sections 609.342 to 609.345 as an adult, the bureau shall retain the data for as long as the data would have been retained if the offender had been an adult at the time of the juvenile offense.

(c) The juvenile court shall forward to the bureau the following data on individuals convicted as extended jurisdiction juveniles:

(1) the name and birthdate of the offender, including any of the juvenile's known aliases or street names;

(2) the crime committed by the offender and the date of the crime; and

(3) the date and county of the conviction.

The court shall notify the bureau whenever it executes an extended jurisdiction juvenile's adult sentence under section 260.126, subdivision 5.

(d) The bureau shall retain the extended jurisdiction juvenile data for as long as the data would have been retained if the offender had been an adult at the time of the offense. Data retained on individuals under this subdivision are private data under section 13.02, except that extended jurisdiction juvenile data becomes public data under section 13.87, subdivision 2, when the juvenile court notifies the bureau that the individual's adult sentence has been executed under section 260.126, subdivision 5.

Sec. 8. Minnesota Statutes 1995 Supplement, section 260.161, subdivision 3, is amended to read:

Subd. 3. [PEACE OFFICER AND CORRECTIONAL RECORDS OF CHILDREN.] (a) Except for records relating to an offense where proceedings are public under section 260.155, subdivision 1, peace officers' records of children who are or may be delinquent or who may be engaged in criminal acts shall be kept separate from records of persons 18 years of age or older and are private data but shall be disseminated: (1) by order of the juvenile court, (2) as required by section 126.036, (3) as authorized under section 13.82, subdivision 2, (4) to the child or the child's parent or guardian unless disclosure of a record would interfere with an ongoing investigation, or (5) as otherwise provided in this subdivision. Except as provided in paragraph (c), no photographs of a child taken into custody may be taken without the consent of the juvenile court unless the child is alleged to have violated section 169.121 or 169.129. Peace officers' records containing data about children who are victims of crimes or witnesses to crimes must be administered consistent with section 13.82, subdivisions 2, 3, 4, and 10. Any person violating any of the provisions of this subdivision shall be guilty of a misdemeanor.

In the case of computerized records maintained about juveniles by peace officers, the requirement of this subdivision that records about juveniles must be kept separate from adult records does not mean that a law enforcement agency must keep its records concerning juveniles on a separate computer system. Law enforcement agencies may keep juvenile records on the same computer as adult records and may use a common index to access both juvenile and adult records so long as the agency has in place procedures that keep juvenile records in a separate place in computer storage and that comply with the special data retention and other requirements associated with protecting data on juveniles.

(b) Nothing in this subdivision prohibits the exchange of information by law enforcement agencies if the exchanged information is pertinent and necessary to the requesting agency in initiating, furthering, or completing a criminal investigation.

(c) A photograph may be taken of a child taken into custody pursuant to section 260.165, subdivision 1, clause (b), provided that the photograph must be destroyed when the child reaches the age of 19 years. If the child is taken into custody for allegedly committing a felony or gross misdemeanor-level delinquent act and is detained in a secure detention facility, the facility must take the child's fingerprints and booking photograph as required by section 299C.10, subdivision 1. The commissioner of corrections may photograph juveniles whose legal custody is transferred to the commissioner. Photographs of juveniles authorized by this paragraph may be used only for institution management purposes, case supervision by parole agents, and to assist law enforcement agencies to apprehend juvenile offenders. The commissioner shall maintain photographs of juveniles in the same manner as juvenile court records and names under this section.

(d) Traffic investigation reports are open to inspection by a person who has sustained physical harm or economic loss as a result of the traffic accident. Identifying information on juveniles who are parties to traffic accidents may be disclosed as authorized under section 13.82, subdivision 4, and accident reports required under section 169.09 may

be released under section 169.09, subdivision 13, unless the information would identify a juvenile who was taken into custody or who is suspected of committing an offense that would be a crime if committed by an adult, or would associate a juvenile with the offense, and the offense is not a minor traffic offense under section 260.193.

(e) A law enforcement agency shall notify the principal or chief administrative officer of a juvenile's school of an incident occurring within the agency's jurisdiction if:

(1) the agency has probable cause to believe that the juvenile has committed an offense that would be a crime if committed as an adult, that the victim of the offense is a student or staff member of the school, and that notice to the school is reasonably necessary for the protection of the victim; or

(2) the agency has probable cause to believe that the juvenile has committed an offense described in subdivision 1b, paragraph (a), clauses (1) to (3), that would be a crime if committed by an adult, regardless of whether the victim is a student or staff member of the school.

A law enforcement agency is not required to notify the school under this paragraph if the agency determines that notice would jeopardize an ongoing investigation. Notwithstanding section 138.17, data from a notice received from a law enforcement agency under this paragraph must be destroyed when the juvenile graduates from the school or at the end of the academic year when the juvenile reaches age 23, whichever date is earlier. For purposes of this paragraph, "school" means a public or private elementary, middle, or secondary school.

(f) In any county in which the county attorney operates or authorizes the operation of a juvenile prepetition or pretrial diversion program, a law enforcement agency or county attorney's office may provide the juvenile diversion program with data concerning a juvenile who is a participant in or is being considered for participation in the program.

(g) Upon request of a local social service agency, peace officer records of children who are or may be delinquent or who may be engaged in criminal acts may be disseminated to the agency to promote the best interests of the subject of the data.

Sec. 9. Minnesota Statutes 1994, section 260.171, subdivision 2, is amended to read:

Subd. 2. (a) If the child is not released as provided in subdivision 1, the person taking the child into custody shall notify the court as soon as possible of the detention of the child and the reasons for detention.

(b) No child may be detained in a juvenile secure detention facility or shelter care facility longer than 36 hours, excluding Saturdays, Sundays, and holidays, after being taken into custody for a delinquent act as defined in section 260.015, subdivision 5, unless a petition has been filed and the judge or referee determines pursuant to section 260.172 that the child shall remain in detention.

(c) No child may be detained in an adult jail or municipal lockup longer than 24 hours, excluding Saturdays, Sundays, and holidays, or longer than six hours in an adult jail or municipal lockup in a standard metropolitan statistical area, after being taken into custody for a delinquent act as defined in section 260.015, subdivision 5, unless:

(1) a petition has been filed under section 260.131; and

(2) a judge or referee has determined under section 260.172 that the child shall remain in detention.

After August 1, 1991, no child described in this paragraph may be detained in an adult jail or municipal lockup longer than 24 hours, excluding Saturdays, Sundays, and holidays, or longer than six hours in an adult jail or municipal lockup in a standard metropolitan statistical area, unless the requirements of this paragraph have been met and, in addition, a motion to refer the child for adult prosecution has been made under section 260.125. Notwithstanding this paragraph, continued detention of a child in an adult detention facility outside a standard metropolitan statistical area county is permissible if:

(i) the facility in which the child is detained is located where conditions of distance to be traveled or other ground transportation do not allow for court appearances within 48 hours. A delay not to exceed 24 hours may be made under this clause; or

(ii) the facility is located where conditions of safety exist. Time for an appearance may be delayed until 24 hours after the time that conditions allow for reasonably safe travel. "Conditions of safety" include adverse life-threatening weather conditions that do not allow for reasonably safe travel.

The continued detention of a child under clause (i) or (ii) must be reported to the commissioner of corrections.

(d) No child taken into custody pursuant to section 260.165, subdivision 1, clause (a) or (c)(2) may be held in a shelter care facility longer than 72 hours, excluding Saturdays, Sundays and holidays, unless a petition has been filed and the judge or referee determines pursuant to section 260.172 that the child shall remain in custody.

(e) If a child described in paragraph (c) is to be detained in a jail beyond 24 hours, excluding Saturdays, Sundays, and holidays, the judge or referee, in accordance with rules and procedures established by the commissioner of corrections, shall notify the commissioner of the place of the detention and the reasons therefor. The commissioner shall thereupon assist the court in the relocation of the child in an appropriate juvenile secure detention facility or approved jail within the county or elsewhere in the state, or in determining suitable alternatives. The commissioner shall direct that a child detained in a jail be detained after eight days from and including the date of the original detention order in an approved juvenile secure detention facility with the approval of the administrative authority of the facility. If the court refers the matter to the prosecuting authority pursuant to section 260.125, notice to the commissioner shall not be required.

Sec. 10. Minnesota Statutes 1995 Supplement, section 260.195, subdivision 2a, is amended to read:

Subd. 2a. [NO RIGHT TO COUNSEL AT PUBLIC EXPENSE.] Except as otherwise provided in section 260.155, subdivision 2, a child alleged to be a juvenile petty offender may be represented by counsel, but does not have a right to appointment of a public defender or other counsel at public expense.

Sec. 11. Minnesota Statutes 1994, section 260.281, is amended to read:

260.281 [NEW EVIDENCE.]

A child whose status has been adjudicated by a juvenile court, or the child's parent, guardian, custodian or spouse may, at any time within 90 15 days of the filing of the court's order, petition the court for a rehearing on the ground that new evidence has been discovered affecting the advisability of the court's original adjudication or disposition. Upon a showing that such evidence does exist the court shall order that a new hearing be held within 30 days, unless the court extends this time period for good cause shown within the 30-day period, and shall make such disposition of the case as the facts and the best interests of the child warrant.

Sec. 12. Minnesota Statutes 1994, section 260.301, is amended to read:

260.301 [CONTEMPT.]

Any person knowingly interfering with an order of the juvenile court is in contempt of court. However, a child who is under the continuing jurisdiction of the court for reasons other than delinquency having committed a delinquent act or a juvenile petty offense may not be adjudicated as a delinquent solely on the basis of having knowingly interfered with or disobeyed an order of the court.

Sec. 13. Minnesota Statutes 1995 Supplement, section 299C.10, subdivision 1, is amended to read:

Subdivision 1. [LAW ENFORCEMENT DUTY.] (a) It is hereby made the duty of the sheriffs of the respective counties and, of the police officers in cities of the first, second, and third classes, under the direction of the chiefs of police in such cities, and of community corrections agencies operating secure juvenile detention facilities to take or cause to be taken immediately finger and thumb prints, photographs, distinctive physical mark identification data, and such other identification data as may be requested or required by the superintendent of the bureau; of all persons arrested for a felony, gross misdemeanor, of all juveniles committing felonies as distinguished from those committed by adult offenders, of all persons reasonably believed by the arresting officer to be fugitives from justice, of all persons in whose possession, when arrested, are found concealed firearms or other dangerous weapons, burglar tools or outfits, high-power explosives, or articles, machines, or appliances usable for an unlawful purpose and reasonably believed by the arresting officer to be intended for such purposes, and within 24 hours thereafter to forward such fingerprint records and other identification data on such forms and in such manner as may be prescribed by the superintendent of the bureau of criminal apprehension.

(b) Effective August 1, 1997, the identification reporting requirements shall also apply to persons committing misdemeanor offenses, including violent and enhanceable crimes, and juveniles committing gross misdemeanors. In addition, the reporting requirements shall include any known aliases or street names of the offenders.

Sec. 14. [REPEALER.]

Minnesota Statutes 1994, section 260.141, subdivision 1, is repealed.

Sec. 15. [EFFECTIVE DATE.]

Sections 1 to 14 are effective August 1, 1996, and apply to offenses committed on or after that date.

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 courts 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) 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 courts 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.

Section 1. [SAFE HOUSE PROGRAM IN FERGUS FALLS.]

Notwithstanding Minnesota Statutes, section 299A.28, another similar safe house program, primarily focusing on the safety and protection of children, may be developed and operate in the city of Fergus Falls if the program members have completed a criminal background check satisfactory to the Fergus Falls police department. However, the commissioner of public safety is not required to perform the duties listed under Minnesota Statutes, section 299A.28, subdivision 2, with respect to the program in Fergus Falls and is not accountable or liable for any act or failure to act by a member of that program.

Sec. 2. [INTENSIVE JUVENILE MONITORING PILOT PROGRAM.]

(a) The commissioner of corrections shall establish at least four two-year pilot programs to provide intensive monitoring in the community for juveniles who have committed or are at risk to commit status offenses or delinquent acts. A juvenile need not be adjudicated for an offense to be eligible for the program. The pilot programs shall employ qualified college and graduate students who are majoring in relevant disciplines to supervise and monitor juveniles referred to or placed in the program by peace officers, juvenile courts, and juvenile probation officers.

(b) The commissioner shall collaborate with appropriate faculty members and administrators at the University of Minnesota, the state universities, and private colleges and universities to establish general eligibility criteria for college and graduate students to participate in the program and to specify the various ways by which students will be compensated for their participation including, but not limited to, monetary compensation and academic credits.

(c) The commissioner also shall collaborate with higher education experts, community corrections agencies, law enforcement agencies, and juvenile court judges to:

(1) establish general eligibility criteria for juveniles to be referred to or placed in the program;

(2) establish maximum caseloads for students, based on their experience and knowledge and on the characteristics of the juveniles to be supervised;

(3) specify the types of supervision and monitoring the college and graduate students will be expected to provide to the juveniles; and

(4) specify the manner in which the students' work will be monitored and evaluated by relevant criminal justice and higher education professionals.

(d) At the end of the pilot programs, the commissioner of corrections shall report findings and recommendations to the chairs of the house and senate committees with jurisdiction over criminal justice and higher education issues.

Sec. 3. [EFFECTIVE DATE.]

Section 1 is effective August 1, 1996. Section 2 is effective July 1, 1996.

Section 1. Minnesota Statutes 1994, section 168.36, is amended by adding a subdivision to read:

Subd. 4. [OFFICER MAY SEIZE REGISTRATION PLATES.] If a peace officer stops a motor vehicle and determines, through a check of the motor vehicle registration record system, that the vehicle is being operated without valid registration in violation of this section, the officer may immediately seize the vehicle's registration plates and destroy the plates or return them to the commissioner of public safety.

Sec. 2. Minnesota Statutes 1994, section 260.311, subdivision 3a, is amended to read:

Subd. 3a. [DETAINING PERSON ON CONDITIONAL RELEASE OR PROBATION.] (a) The written order of the court services director or designee of a county probation agency not organized under chapter 401 is sufficient authority for peace officers and county probation officers serving a the district or juvenile court may, without a warrant of nonparticipating counties when it appears necessary to prevent escape or enforce discipline, to take and detain a probationer or any person on conditional release and bring that person before the court or the commissioner of corrections, whichever is appropriate, for disposition. No probationer or other person on conditional release shall be detained under this subdivision more than 72 hours, excluding Saturdays, Sundays and holidays, without being given an opportunity for a hearing before the court or the commissioner of corrections or a designee.

(b) The written order of the court service director or designee of a county probation agency not established under chapter 401 is sufficient authority for probation officers serving the district and juvenile courts of nonparticipating counties to release within 72 hours, exclusive of legal holidays, Saturdays, and Sundays, without appearance before the court or the commissioner of corrections or a designee, any person detained pursuant to paragraph (a).

(c) The written order of the chief executive officer or designee of a county corrections agency established under this section and not organized under chapter 401 is sufficient authority for any peace officer or county probation officer to take and place in actual custody any person under sentence or on probation who:

(1) fails to report to serve a sentence at a local correctional facility, as defined in section 241.021, subdivision 1;

(2) fails to return from furlough or authorized temporary release from a local correctional facility;

(3) escape from a local correctional facility; or

(4) absconds from court-ordered home detention.

(d) The written order of the court services director or designee of a county probation agency established under this section and not organized under chapter 401 is sufficient authority for any peace officer or county probation officer to take and place in actual custody any person on a court-authorized pretrial release who absconds from pretrial release or fails to abide by the conditions of pretrial release.

Sec. 3. Minnesota Statutes 1995 Supplement, section 609.10, is amended to read:

609.10 [SENTENCES AVAILABLE.]

Upon conviction of a felony and compliance with the other provisions of this chapter the court, if it imposes sentence, may sentence the defendant to the extent authorized by law as follows:

(1) to life imprisonment; or

(2) to imprisonment for a fixed term of years set by the court; or

(3) to both imprisonment for a fixed term of years and payment of a fine; or

(4) to payment of a fine without imprisonment or to imprisonment for a fixed term of years if the fine is not paid; or

(5) to payment of court-ordered restitution in addition to either imprisonment or payment of a fine, or both; or

(6) to payment of a local correctional fee as authorized under section 609.102 in addition to any other sentence imposed by the court.

As used in this section, "restitution" includes:

(i) payment of compensation to the victim or the victim's family; and

(ii) if the victim is deceased or already has been fully compensated, payment of money to a victim assistance program or other program directed by the court.

In controlled substance crime cases, "restitution" also includes payment of compensation to a government entity that incurs loss as a direct result of the controlled substance crime.

Sec. 4. Minnesota Statutes 1995 Supplement, section 609.125, is amended to read:

609.125 [SENTENCE FOR MISDEMEANOR OR GROSS MISDEMEANOR.]

Upon conviction of a misdemeanor or gross misdemeanor the court, if sentence is imposed, may, to the extent authorized by law, sentence the defendant:

(1) to imprisonment for a definite term; or

(2) to payment of a fine, or to imprisonment for a specified term if the fine is not paid; or

(3) to both imprisonment for a definite term and payment of a fine; or

(4) to payment of court-ordered restitution in addition to either imprisonment or payment of a fine, or both; or

(5) to payment of a local correctional fee as authorized under section 609.102 in addition to any other sentence imposed by the court.

As used in this section, "restitution" includes:

(i) payment of compensation to the victim or the victim's family; and

(ii) if the victim is deceased or already has been fully compensated, payment of money to a victim assistance program or other program directed by the court.

In controlled substance crime cases, "restitution" also includes payment of compensation to a government entity that incurs loss as a direct result of the controlled substance crime.

Sec. 5. Minnesota Statutes 1994, section 609.135, subdivision 1, is amended to read:

Subdivision 1. [TERMS AND CONDITIONS.] Except when a sentence of life imprisonment is required by law, or when a mandatory minimum sentence is required by section 609.11, any court may stay imposition or execution of sentence and (a) may order intermediate sanctions without placing the defendant on probation, or (b) may place the defendant on probation with or without supervision and on the terms the court prescribes, including intermediate sanctions when practicable. The court may order the supervision to be under the probation officer of the court, or, if there is none and the conviction is for a felony or gross misdemeanor, by the commissioner of corrections, or in any case by some other suitable and consenting person. No intermediate sanction may be ordered performed at a location that fails to observe applicable requirements or standards of chapter 181A or 182, or any rule promulgated under them. For purposes of this subdivision, subdivision 6, and section 609.14, the term "intermediate sanctions" includes but is not limited to incarceration in a local jail or workhouse, home detention, electronic monitoring, intensive probation, sentencing to service, reporting to a day reporting center, chemical dependency or mental health treatment or counseling, restitution, fines, day-fines, community work service, and work in lieu of or to work off fines and, with the victim's consent, work in lieu of or to work off restitution.

A court may not stay the revocation of the driver's license of a person convicted of violating the provisions of section 169.121.

Sec. 6. Minnesota Statutes 1995 Supplement, section 609.135, subdivision 2, is amended to read:

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

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

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

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

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

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

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

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

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

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

(h) Notwithstanding the maximum periods specified for stays of sentence under paragraphs (a) to (f), if a court sentences a defendant to pay restitution, the defendant's term of probation shall last until the term of probation expires or the restitution is fully paid, whichever occurs later. Any probationary period in excess of the maximum period specified in paragraphs (a) to (f) shall be unsupervised. However, if the court uses screener-collectors to collect fines or restitution, the screener-collector shall continue to monitor and seek payment of restitution orders of those persons who are on unsupervised probation until the order has been fully paid.

Sec. 7. Minnesota Statutes 1995 Supplement, section 611A.01, is amended to read:

611A.01 [DEFINITIONS.]

For the purposes of sections 611A.01 to 611A.06:

(a) "Crime" means conduct that is prohibited by local ordinance and results in bodily harm to an individual; or conduct that is included within the definition of "crime" in section 609.02, subdivision 1, or would be included within that definition but for the fact that (i) the person engaging in the conduct lacked capacity to commit the crime under the laws of this state, or (ii) the act was alleged or found to have been committed by a juvenile;

(b) "Victim" means a natural person who incurs loss or harm as a result of a crime, including a good faith effort to prevent a crime, and for purposes of sections 611A.04 and 611A.045, also includes (i) a corporation that incurs loss or harm as a result of a crime, and (ii) any other entity authorized to receive restitution under section 609.10 or 609.125. If the victim is a natural person and is deceased, "victim" means the deceased's surviving spouse or next of kin; and

(c) "Juvenile" has the same meaning as given to the term "child" in section 260.015, subdivision 2.

Sec. 8. Minnesota Statutes 1994, section 611A.04, subdivision 3, is amended to read:

Subd. 3. [EFFECT OF ORDER FOR RESTITUTION.] An order of restitution may be enforced by any person named in the order to receive the restitution in the same manner as a judgment in a civil action. Filing fees for docketing an order of restitution as a civil judgment are waived for any victim named in the restitution order. An order of restitution shall be docketed as a civil judgment by the court administrator of the district court in the county in which the order of restitution was entered. The court administrator also shall notify the commissioner of revenue of the restitution debt in the manner provided in chapter 270A, the revenue recapture act. A juvenile court is not required to appoint a guardian ad litem for a juvenile offender before docketing a restitution order. Interest shall accrue on the unpaid balance of the judgment as provided in section 549.09. Whether the order of restitution has been docketed

or not, it is a debt that is not dischargeable in bankruptcy. A decision for or against restitution in any criminal or juvenile proceeding is not a bar to any civil action by the victim or by the state pursuant to section 611A.61 against the offender. The offender shall be given credit, in any order for judgment in favor of a victim in a civil action, for any restitution paid to the victim for the same injuries for which the judgment is awarded.

Sec. 9. [EFFECTIVE DATE.]

Sections 1 to 8 are effective August 1, 1996, and apply to offenses committed on or after that date.

Section 1. [PUBLIC SAFETY.]

Subdivision 1. [BCA; OFP TRACKING SYSTEM.] $....... is appropriated for the fiscal year ending June 30, 1997, from the general fund to the commissioner of public safety to be used by the bureau of criminal apprehension for enhancements of the domestic abuse orders for protection tracking system developed under Minnesota Statutes, section 299C.65.

Subd. 2. [WITNESS AND VICTIM PROTECTION GRANTS.] $....... is appropriated from the general fund to the commissioner of public safety for the fiscal year ending June 30, 1997, to provide grants from the witness and victim protection fund described in Minnesota Statutes, section 299C.065, subdivision 1a.

Sec. 2. [ATTORNEY GENERAL; GUN VIOLENCE.]

$....... is appropriated from the general fund to the attorney general for the fiscal year ending June 30, 1997, to be used for a public information campaign about gun violence.

Sec. 3. [CORRECTIONS; JUVENILE MONITORING PROGRAM.]

$250,000 is appropriated from the general fund to the commissioner of corrections to establish and fund intensive juvenile monitoring pilot programs. This sum is available until expended."

Delete the title and insert:

"A bill for an act relating to crime prevention; modifying requirements that drivers provide proof of automobile insurance; clarifying duty of the sentencing guidelines commission; increasing penalties for certain gross misdemeanor-level offenses; expanding sex offender registration act; prohibiting possession of code grabbing devices; clarifying certain definitions and sentencing provisions; expanding definition of sexual contact under criminal sexual conduct in the fifth degree; clarifying provisions of the offense of welfare fraud; providing additional penalties for fleeing a peace officer in a motor vehicle; modifying provisions concerning escapes and aiding escape offenses; modifying the crimes of first degree manslaughter and killing or harming a police dog; increasing penalties for certain firearms and domestic abuse offenses; requiring domestic abuse assessments; limiting ability of certain convicted felons to possess a handgun or assault weapon; expanding definitions of "violent crime" and "crime of violence"; authorizing continued detention of juveniles under certain circumstances; clarifying and modifying application of the juvenile petty offender law; authorizing peace officers to issue truancy citations; requiring collection of certain data on juveniles; conforming statutes to juvenile court rules; limiting expungement of certain criminal records and providing an expungement process; clarifying detention authority of peace and probation officers; expanding restitution rights of crime victims; authorizing peace officers to seize registration plates of unregistered vehicles; creating crime prevention programs; prescribing penalties; appropriating money; amending Minnesota Statutes 1994, sections 168.36, by adding a subdivision; 169.791, subdivisions 2a, 3, and 4; 169.792, subdivisions 1, 2, 3, 5, and 6; 242.31, subdivision 2; 244.09, subdivision 5; 260.141, by adding a subdivision; 260.145; 260.161, subdivision 1a; 260.171, subdivision 2; 260.281; 260.301; 260.311, subdivision 3a; 299C.13; 609.035, subdivision 1, and by adding a subdivision; 609.11, subdivision 9; 609.135, subdivision 1; 609.165, subdivisions 1a and 1b; 609.2231, subdivision 2, and by adding a subdivision; 609.487, by adding subdivisions; 609.5316, subdivision 3; 609.583; 609.596; 609.66, subdivisions 1a and 2; 609.666, subdivision 1, and by adding a subdivision; 609.749, by adding a subdivision; 609.855, subdivision 5; 611A.04, subdivision 3; 624.713, subdivision 2; 624.7132, subdivision 8; 624.714, subdivisions 1 and 5; 624.7141; and 638.02, subdivision 2; Minnesota Statutes 1995 Supplement, sections 152.18, subdivision 1; 242.31, subdivision 1; 243.166, subdivision 1; 256.98, subdivision 1; 260.015, subdivision 21; 260.132, subdivisions 1 and 3a; 260.155, subdivision 2;

260.161, subdivision 3; 260.195, subdivision 2a; 299C.10, subdivision 1; 299C.11; 518B.01, subdivision 14; 609.10; 609.125; 609.135, subdivision 2; 609.152, subdivision 1; 609.20; 609.2242, subdivision 2; 609.3451, subdivision 1; 609.485, subdivisions 2 and 4; 609.52, subdivision 1; 611A.01; 617.23; and 624.712, subdivision 5; proposing coding for new law in Minnesota Statutes, chapters 171; and 609; proposing coding for new law as Minnesota Statutes, chapter 609A; repealing Minnesota Statutes 1994, sections 152.18, subdivision 2; 242.31, subdivision 3; 260.141, subdivision 1; 609.166; 609.167; 609.168; and 609.495, subdivision 2."

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. 2164, A bill for an act relating to special transportation services; requiring the metropolitan council and the commissioner of human services to establish a task force on service coordination.

Reported the same back with the following amendments:

Page 2, line 3, after "expenses" insert "under Minnesota Statutes, section 15.059,"

Page 2, after line 7, insert "The task force expires on June 30, 1997."

With the recommendation that when so amended the bill pass.

The report was adopted.

Pursuant to Senate Concurrent Resolution No. 12, H. F. No. 2164 was re-referred to the Committee on Rules and Legislative Administration.

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

H. F. No. 2167, A bill for an act relating to state land; modifying the provisions for the correction of boundary lines; modifying the provisions relating to the sale of trust lands; authorizing the commissioner of natural resources to pay certain outstanding real estate taxes and assessments; authorizing the commissioner of natural resources to transfer improvements on state-owned land; authorizing the commissioner of natural resources to sell certain land; authorizing the private sale of certain land; appropriating money; amending Minnesota Statutes 1994, sections 84.0273; 92.06, subdivisions 1 and 4; and 92.16, subdivision 1; proposing coding for new law in Minnesota Statutes, chapters 92; and 94.

Reported the same back with the following amendments:

Page 2, line 13, before the period, insert: "and costs determined by the commissioner to be associated with the sale including survey, appraisal, publication, deed tax, filing fee, and similar costs"

Page 2, line 14, after "timber" insert "and associated costs"

Page 2, lines 15 to 17, delete the new language

Page 2, line 18, delete everything before "The"

Page 3, line 15, after "if" insert a colon

Page 3, line 19, after "(3)" insert "the commissioner determines, based on clear and convincing evidence provided by the person, that"

Page 3, line 20, delete "that" and insert "the"

Page 3, lines 22 and 23, after "or" insert "inadvertent"

Page 4, line 24, reinstate everything after the stricken period

Page 4, line 25, reinstate the stricken "may" and reinstate everything after the stricken "immediately"

Page 4, line 26, reinstate the stricken language

Page 4, after line 28, insert:

"Sec. 5. Minnesota Statutes 1994, section 94.10, subdivision 2, is amended to read:

Subd. 2. (a) Lands certified as surplus by the head of a department or agency other than the department of natural resources shall be offered for public sale by the commissioner of administration as provided in this paragraph. After complying with subdivision 1 and before any public sale of surplus state-owned land is made, the commissioner of administration shall publish a notice thereof at least once in each week for four successive weeks in a legal newspaper and also in a newspaper of general distribution in the city or county in which the real property to be sold is situated, which notice shall specify the time and place at which the sale will commence, a general description of the lots or tracts to be offered, and a general statement of the terms of sale. Each tract or lot shall be sold separately and shall be sold for not less than the appraised value thereof. Parcels remaining unsold after the offering may be sold to anyone agreeing to pay the appraised value thereof. The sale shall continue until all parcels are sold or until the commissioner orders a reappraisal or withdraws the remaining parcels from sale.

(b) Lands certified as surplus by the commissioner of natural resources shall be offered for public sale by the commissioner of natural resources in the manner provided in paragraph (a) for sales by the commissioner of administration.

(c) The cost of any survey or appraisal as provided in subdivision 1 shall be added to and made a part of the appraised value of the lands to be sold, whether to any political subdivision of the state or to a private purchaser as provided in this subdivision. This subdivision does not apply to lands sold by the commissioner of natural resources."

Page 5, delete lines 34 to 36

Page 6, delete lines 1 to 23

Page 6, line 24, delete "(4)" and insert "(1)"

Page 6, line 27, delete "(5)" and insert "(2)"

Page 6, line 30, delete "(6)" and insert "(3)"

Page 6, line 32, delete "(7)" and insert "(4)"

Page 6, line 33, after the semicolon, insert "and"

Page 6, line 34, delete "(8)" and insert "(5)"

Page 6, line 35, delete the semicolon and insert a period

Page 6, delete line 36

Page 7, delete lines 1 and 2

Pages 7 to 9, delete sections 8 and 9

Page 10, line 4, delete "4.2" and insert "up to five"

Page 11, line 14, delete "to" and insert "and 94.10,"

Page 11, line 15, delete "94.16" and after "and" insert "the public hearing requirement in Minnesota Statutes, section" and delete "2A" and insert "2a"

Page 11, line 18, after "value" insert ", in accordance with the remaining provisions of Minnesota Statutes, chapter 94, and section 97A.135"

Page 11, delete lines 27 to 30

Page 11, line 31, delete "(e)" and insert "(d)"

Page 12, line 2, delete "(f)" and insert "(e)"

Page 12, line 12, delete "chapter 94" and insert "section 85.015, subdivision 1b"

Renumber the sections in sequence and correct internal references

Amend the title as follows:

Page 1, line 11, delete "appropriating money;"

Page 1, line 13, delete the second "and" and after "1;" insert "and 94.10, subdivision 2;"

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. 2171, A bill for an act relating to state government; clarifying powers of the pollution control agency board and commissioner; amending Minnesota Statutes 1994, sections 116.03, as amended; and 514.673, subdivision 3; Minnesota Statutes 1995 Supplement, section 116.02, by adding subdivisions.

Reported the same back with the following amendments:

Page 2, line 3, after "(3)" insert "scoping decisions regarding, and" and delete everything after the second "of" and insert a comma

Page 2, line 15, delete "and"

Page 2, line 25, delete the period and insert "; and

(7) decisions to reopen, rescind, or reverse any decision by the agency."

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. 2200, A bill for an act relating to agriculture; changing penalties for violating the adulterated dairy products law; authorizing a dairy assistance program; changing certain standards for milk used for manufacturing purposes; appropriating money; amending Minnesota Statutes 1994, sections 32.21, subdivision 4; 32.394, subdivision 8d; and 32.415.

Reported the same back with the following amendments:

Page 3, line 6, delete everything after the period

Page 3, lines 7 to 10, delete the new language and insert "If the amount collected by the plant is less than two days of milk production on that farm, then the commissioner must assess the difference as a civil penalty payable by the plant or marketing organization on behalf of the responsible producer"

Page 3, line 26, delete everything after the period

Page 3, lines 27 to 29, delete the new language and insert "If the amount collected by the plant is less than four days of milk production on that farm, then the commissioner must assess the difference as a civil penalty payable by the plant or marketing organization on behalf of the responsible producer"

Page 4, line 9, delete everything after the period

Page 4, lines 10 to 13, delete the new language and insert " If the amount collected by the plant is less than four days of milk production on that farm, then the commissioner must assess the difference as a civil penalty payable by the plant or marketing organization on behalf of the responsible producer"

Page 5, after line 28, insert:

"Sec. 3. Minnesota Statutes 1994, section 32.394, is amended by adding a subdivision to read:

Subd. 8e. [FARM BULK MILK PICK-UP TANKERS.] Farm bulk milk pick-up tankers must be inspected and obtain a permit issued by the commissioner annually by July 1. The owner or operator must pay a $25 permit fee per tanker to the commissioner. The commissioner may appoint such persons as the commissioner deems qualified to make inspections."

Page 5, line 29, delete "3" and insert "4"

Page 6, after line 28, insert:

"Sec. 5. Minnesota Statutes 1994, section 35.821, subdivision 3, is amended to read:

Subd. 3. [BRAND.] "Brand" means a permanent identification mark, of which the letters, numbers, and figures used are each four inches or more in length or diameter and applied using the technique of freeze branding or burned into the hide of a live animal with a hot iron, which is to be considered in relation to its location on the animal. The term relates to both the mark burned into the hide and its location. In the case of sheep, the term includes, but is not limited to, a painted mark which is renewed after each shearing.

Sec. 6. Minnesota Statutes 1994, section 35.821, is amended by adding a subdivision to read:

Subd. 3a. [FREEZE BRANDING.] "Freeze branding" means the application of an intensely cold iron to the hide of a live animal.

Sec. 7. [EFFECTIVE DATE.]

Section 3 is effective the day following final enactment and applies to farm bulk milk pick-up tankers on July 1, 1996. Sections 5 and 6 are effective the day following final enactment."

Amend the title as follows:

Page 1, line 4, after the semicolon, insert "requiring inspection and permits of bulk milk pick-up tankers; providing for freeze branding;"

Page 1, line 8, after "8d" insert ", and by adding a subdivision" and delete "and" and before the period, insert "; and 35.821, subdivision 3, and by adding a subdivision"

With the recommendation that when so amended the bill pass.

The report was adopted.

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

H. F. No. 2213, A bill for an act relating to labor relations; ratifying certain labor agreements; modifying certain salary provisions for higher education officers; amending Minnesota Statutes 1994, sections 43A.17, subdivision 1; and 179A.03, subdivision 4; Minnesota Statutes 1995 Supplement, sections 15A.081, subdivision 7b; and 43A.18, subdivision 2.

Reported the same back with the following amendments:

Delete page 1, line 23 to page 2, line 4

Page 2, line 5, delete "4" and insert "3"

Page 2, line 10, delete "5" and insert "4"

Page 2, line 15, delete "6" and insert "5"

Page 2, line 20, delete "7" and insert "6"

Page 2, line 24, delete "8" and insert "7"

Page 2, line 29, delete "9" and insert "8"

Page 2, line 34, delete "10" and insert "9"

Page 3, line 3, delete "11" and insert "10"

Page 3, line 9, delete "12" and insert "11"

Page 3, line 14, delete "13" and insert "12"

Page 3, line 18, delete "14" and insert "13"

Page 3, line 23, delete "15" and insert "14"

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. 2242, A bill for an act relating to housing; permitting a mortgagee to provide a resident caretaker for a premises; authorizing entry into tenant's premises under certain circumstances; amending Minnesota Statutes 1994, section 582.031, subdivision 2; Minnesota Statutes 1995 Supplement, section 504.183, subdivision 3.

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

The report was adopted.

Pursuant to Senate Concurrent Resolution No. 12, H. F. No. 2242 was re-referred to the Committee on Rules and Legislative Administration.

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

H. F. No. 2245, A bill for an act relating to housing; providing for registration of housing with services primarily for persons 55 years of age or older; amending Minnesota Statutes 1994, sections 144A.46, subdivision 1; proposing coding for new law in Minnesota Statutes, chapter 144A.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 1994, section 144A.43, subdivision 4, is amended to read:

Subd. 4. [HOME CARE PROVIDER.] "Home care provider" means an individual, organization, association, corporation, unit of government, or other entity that is regularly engaged in the delivery, directly or by contractual arrangement, of home care services for a fee. At least one home care service must be provided directly, although additional home care services may be provided by contractual arrangements. "Home care provider" includes a hospice program defined in section 144A.48. "Home care provider" does not include:

(1) any home care or nursing services conducted by and for the adherents of any recognized church or religious denomination for the purpose of providing care and services for those who depend upon spiritual means, through prayer alone, for healing;

(2) an individual who only provides services to a relative;

(3) an individual not connected with a home care provider who provides assistance with home management services or personal care needs if the assistance is provided primarily as a contribution and not as a business;

(4) an individual not connected with a home care provider who shares housing with and provides primarily housekeeping or homemaking services to an elderly or disabled person in return for free or reduced-cost housing;

(5) an individual or agency providing home-delivered meal services;

(6) an agency providing senior companion services and other older American volunteer programs established under the Domestic Volunteer Service Act of 1973, Public Law Number 98-288;

(7) an employee of a nursing home licensed under this chapter or an employee of a boarding care home licensed under sections 144.50 to 144.56 who provides emergency services to individuals residing in an apartment unit attached to or other residential setting that is on the same campus as the nursing home;

(8) a member of a professional corporation organized under sections 319A.01 to 319A.22 that does not regularly offer or provide home care services as defined in subdivision 3;

(9) the following organizations established to provide medical or surgical services that do not regularly offer or provide home care services as defined in subdivision 3: a business trust organized under sections 318.01 to 318.04, a nonprofit corporation organized under chapter 317A, a partnership organized under chapter 323, or any other entity determined by the commissioner;

(10) an individual or agency that provides medical supplies or durable medical equipment, except when the provision of supplies or equipment is accompanied by a home care service;

(11) an individual licensed under chapter 147; or

(12) an individual who provides home care services to a person with a developmental disability who lives in a place of residence with a family, foster family, or primary caregiver.

Sec. 2. Minnesota Statutes 1994, section 144A.45, subdivision 1, is amended to read:

Subdivision 1. [RULES.] The commissioner shall adopt rules for the regulation of home care providers pursuant to sections 144A.43 to 144A.49. The rules shall include the following:

(a) provisions to assure, to the extent possible, the health, safety and well-being, and appropriate treatment of persons who receive home care services;

(b) requirements that home care providers furnish the commissioner with specified information necessary to implement sections 144A.43 to 144A.49;

(c) standards of training of home care provider personnel, which may vary according to the nature of the services provided or the health status of the consumer;

(d) standards for medications management by paraprofessionals including housing aides;

(e) standards of supervision by a registered nurse or other appropriate health care professionals of personnel providing home care services, which may vary according to the nature of the services provided or the health status of the consumer to require supervision on site at least every 62 days, or more frequently if indicated by a clinical assessment, and in accordance with sections 148.171 to 148.285, and Minnesota Rules, part 6321.0100;

(e) (f) requirements for the involvement of a consumer's physician, the documentation of physicians' orders, if required, and the consumer's treatment plan, and the maintenance of accurate, current clinical records;

(f) (g) the establishment of different classes of licenses for different types of providers and different standards and requirements for different kinds of home care services; and

(g) (h) operating procedures required to implement the home care bill of rights.

Sec. 3. Minnesota Statutes 1994, section 144A.46, subdivision 1, is amended to read:

Subdivision 1. [LICENSE REQUIRED.] (a) A home care provider may not operate in the state without a current license issued by the commissioner of health. A home care provider may hold one or more separate licenses for each class of home care license. If a home care provider holds more than one license, then each service agreement must identify under which license the client is receiving services.

(b) Within ten days after receiving an application for a license, the commissioner shall acknowledge receipt of the application in writing. The acknowledgment must indicate whether the application appears to be complete or whether additional information is required before the application will be considered complete. Within 90 days after receiving a complete application, the commissioner shall either grant or deny the license. If an applicant is not granted or denied a license within 90 days after submitting a complete application, the license must be deemed granted. An applicant whose license has been deemed granted must provide written notice to the commissioner before providing a home care service.

(c) Each application for a home care provider license, or for a renewal of a license, shall be accompanied by a fee to be set by the commissioner under section 144.122.

Sec. 4. [144A.475] [CLASS E HOUSING WITH SERVICES HOME CARE PROVIDER.]

Subdivision 1. [DEFINITIONS.] For the purposes of this section, the following definitions apply:

(1) "Class E housing with services home care provider" means a home care provider providing nursing services or housing aide services or both in a housing with services establishment as defined in chapter 144D.

(2) "Housing aide" means a natural person who provides housing aide services.

(3) "Housing aide services" means performing tasks defined as home health aide or home care aide tasks in Minnesota Rules, parts 4668.0100 and 4668.0110, for residents of a housing with services establishment.

Subd. 2. [CLASS E LICENSE ESTABLISHED.] A home care provider licensure category entitled class E housing with services home care provider is hereby established. A home care provider operating a housing with services program may obtain a class E license if the program meets the following requirements:

(1) nursing services or housing aide services or both under the class E license are provided solely to residents of one or more housing with services establishments registered under chapter 144D;

(2) housing aides are qualified to perform those housing aide services which are offered to the residents of the housing with services establishment. Qualifications may be established in accordance with subdivision 3;

(3) periodic supervision of housing aides is provided as otherwise set forth in Minnesota Rules, part 4668.0110, subpart 6, except that tasks defined in Minnesota Rules, part 4668.0100, subpart 1, shall be supervised on site by a registered nurse at least once every 62 days, or more frequently if indicated by a clinical assessment, and in accordance with sections 148.171 to 148.285, and Minnesota Rules, part 6321.0100;

(4) notwithstanding Minnesota Rules, part 4668.0160, subpart 6, item D, client records shall include documentation of the home care services provided each day to the resident of a housing with services establishment signed by the staff providing the services and entered into the record no later than two weeks after the end of the service day;

(5) medication and treatment orders, if any, are included in the client record and are renewed at least every six months, or more frequently if indicated by a clinical assessment;

(6) the central storage of medications in a housing with services establishment is permitted under a system, which is established by a registered nurse and addresses the control of medications, handling of medications, medication containers, medication records, and disposition of medications; and

(7) in other respects it meets the requirements for class E home care licensure set forth in Minnesota Rules, parts 4668.0002 to 4668.0240.

Subd. 3. [TRAINING OR COMPETENCY EVALUATIONS REQUIRED.] (a) Housing aides shall be trained for or demonstrate competency in each housing aide service offered to clients in a housing with services establishment.

(b) Training for housing aides shall use a curriculum approved by the commissioner for each separate task they will perform.

(c) Competency evaluations may be completed on the site of a registered housing with services establishment or in a client's residence.

(d) A registered nurse shall document each competency evaluation.

(e) All housing aides shall be trained or demonstrate competency in a set of core competencies, which are defined in Minnesota Rules, part 4668.0130, subpart 2, items A to D, H, and J to M.

(f) A registered nurse may delegate the nursing services defined in Minnesota Rules, part 4668.0100, subpart 1, items A to H, as tasks to be performed by housing aides who have been trained or demonstrate competency under this section. If medication administration is delegated to housing aides, it must be done in accordance with the requirements set forth in Minnesota Rules, part 4668.0100, subparts 2 to 4, except that a housing aide need not comply with the requirements of Minnesota Rules, part 4668.0100, subpart 5.

Subd. 4. [DATE OF LICENSURE.] (a) Beginning August 1, 1996, home care providers may obtain a home care license under this section. Housing with services establishments registered under chapter 144D that are required to obtain a home care license must obtain a home care license according to this section or according to the standards for a class A agency in Minnesota Rules, parts 4668.0002 to 4668.0240.

(b) No later than December 31, 1996, any home care provider with a class E assisted living program license issued prior to August 1, 1996, shall comply with the provisions of this section. If the home care provider's class E assisted living program license expires prior to December 31, 1996, compliance with the provisions of Minnesota Rules, parts 4668.0002 to 4668.0240, shall be followed until December 31, 1996, or until compliance with this section is obtained, whichever comes first.

(c) Any board and lodging establishment registered under section 157.17 which is required to be registered under Minnesota Statutes, chapter 144D, shall be registered under chapter 144D by August 1, 1996. Supportive services and health supervision services may continue to be provided under the requirements of section 157.17 until December 31, 1996. After that date, compliance with the provisions of this section is required.

Sec. 5. Minnesota Statutes 1995 Supplement, section 144B.01, subdivision 5, is amended to read:

Subd. 5. [RESIDENTIAL CARE HOME OR HOME.] "Residential care home" or "home" means an establishment with a minimum of five beds, where adult residents are provided sleeping accommodations and three or more meals per day and where at least two or more supportive services or at least one health-related service are provided or offered to all residents by the home. A residential care home is not required to offer every supportive or health-related service. A "residential care home" does not include:

(1) a board and lodging establishment licensed under chapter 157 and the provisions of Minnesota Rules, parts 9530.4100 to 9530.4450;

(2) a boarding care home or a supervised living facility licensed under chapter 144;

(3) a home care provider licensed under chapter 144A;

(4) any housing arrangement which consists of apartments containing a separate kitchen or kitchen equipment that will allow residents to prepare meals and where supportive services may be provided, on an individual basis, to residents in their living units either by the management of the residential care home or by home care providers under contract with the home's management;

(5) a board or lodging establishment which serves as a shelter for battered women or other similar purpose; and

(6) an elderly a housing with services establishment registered under chapter 144D.

Sec. 6. Minnesota Statutes 1995 Supplement, section 144D.01, subdivision 4, is amended to read:

Subd. 4. [ELDERLY HOUSING WITH SERVICES ESTABLISHMENT OR ESTABLISHMENT.] "Elderly Housing with services establishment" or "establishment" means an establishment providing sleeping accommodations to one or more adult residents, at least 80 percent of which are 55 years of age or older, and offering or providing, for a fee, one or more health-related services or two or more supportive service services, whether offered or provided directly by the establishment or by another entity arranged for by the establishment. Offering or providing does not include services which may be made available by the establishment on an intermittent or incidental basis.

Elderly A housing with services establishment does not include:

(1) a nursing home licensed under chapter 144A;

(2) a hospital, boarding care home, or supervised living facility licensed under sections 144.50 to 144.56;

(3) a board and lodging establishment licensed under chapter 157 and Minnesota Rules, parts 9520.0500 to 9520.0670, 9525.0215 to 9525.0355, 9525.0500 to 9525.0660, or 9530.4100 to 9530.4450;

(4) a board and lodging establishment which serves as a shelter for battered women or other similar purpose;

(5) a family adult foster care home licensed under Minnesota Rules, parts 9543.0010 to 9543.0150 9555.5050 to 9555.6265; or

(6) private homes in which the residents are related by kinship, law, or affinity with the providers of services;

(7) home sharing arrangements such as those in which elderly or disabled persons or single-parent families make lodging in their private residences available to other persons in exchange for services or rent or both; or

(8) duly organized condominiums, cooperatives, common interest communities, and owners' associations of any of the foregoing where at least 80 percent of the units which comprise such condominiums, cooperatives, or common interest communities are occupied by natural persons who are the owners, members, or shareholders thereof.

Sec. 7. Minnesota Statutes 1995 Supplement, section 144D.01, subdivision 5, is amended to read:

Subd. 5. [SUPPORTIVE SERVICES.] "Supportive services" means arranging for medical services, health-related services, social services, or transportation to medical or social services appointments, help with personal laundry, or handling or assisting with personal funds of residents. Arranging for services does not include making referrals, assisting a resident in contacting a service provider of the resident's choice, or contacting a service provider in an emergency.

Sec. 8. Minnesota Statutes 1995 Supplement, section 144D.01, subdivision 6, is amended to read:

Subd. 6. [HEALTH-RELATED SERVICES.] "Health-related services" include professional nursing services, home health aide tasks, and home care aide tasks identified in Minnesota Rules, parts 4668.0100, subparts 1 and 2; and 4668.0110, subpart 1, or the central storage of medication for residents under section 144A.485, subdivision 2, clause (6) 144A.475, subdivision 2, clause (6).

Sec. 9. Minnesota Statutes 1995 Supplement, section 144D.02, is amended to read:

144D.02 [REGISTRATION REQUIRED; REGISTRATION PERMITTED.]

No entity may establish, operate, conduct, or maintain an elderly housing with services establishment in this state without registering and operating as required in sections 144D.01 to 144D.06. A housing with services establishment in which at least 80 percent of the residents are 55 years of age or older is required to register and to operate under the provisions of this chapter. A housing with services establishment which is not required to register may, at its option, register under this chapter. If a housing with services establishment which is not required to register does register, it is required to operate under the provisions of this chapter as if it had been required to register.

Sec. 10. Minnesota Statutes 1995 Supplement, section 144D.03, is amended to read:

144D.03 [REGISTRATION.]

Subdivision 1. [REGISTRATION PROCEDURES.] The commissioner shall establish forms and procedures for annual registration of elderly housing with services establishments. The commissioner shall charge an annual registration fee of $35. No fee shall be refunded. A registered establishment shall notify the commissioner within 30 days of any change in the business name or address of the establishment, the name or mailing address of the owner or owners, or the name or mailing address of the managing agent. There shall be no fee for submission of the notice. A registered establishment may provide written notice to the commissioner of the date it is no longer required to be registered under this chapter. There shall be no fee for submission of the notice.

Subd. 2. [REGISTRATION INFORMATION.] The establishment shall provide the following information to the commissioner in order to be registered:

(1) the business name, street address, and mailing address of the establishment;

(2) the name and mailing address of the owner or owners of the establishment and, if the owner or owners are not natural persons, identification of the type of business entity of the owner or owners, and the names and addresses of the officers and members of the governing body, or comparable persons for partnerships, limited liability corporations, or other types of business organizations of the owner or owners;

(3) the name and mailing address of the managing agent, whether through management agreement or lease agreement, of the establishment, if different from the owner or owners, and the name of the on-site manager, if any;

(4) verification that the establishment has entered into an elderly housing with services contract, as required in section 144D.04, with each resident or resident's representative;

(5) the name and address of at least one natural person who shall be responsible for dealing with the commissioner on all matters provided for in sections 144D.01 to 144D.06, and on whom personal service of all notices and orders shall be made, and who shall be authorized to accept service on behalf of the owner or owners and the managing agent, if any; and

(6) the signature of the authorized representative of the owner or owners or, if the owner or owners are not natural persons, signatures of at least two authorized representatives of each owner, one of which shall be an officer of the owner.

Personal service on the person identified under clause (5) by the owner or owners in the registration shall be considered service on the owner or owners, and it shall not be a defense to any action that personal service was not made on each individual or entity. The designation of one or more individuals under this subdivision shall not affect the legal responsibility of the owner or owners under sections 144D.01 to 144D.06.

Sec. 11. Minnesota Statutes 1995 Supplement, section 144D.04, is amended to read:

144D.04 [ELDERLY HOUSING WITH SERVICES CONTRACTS.]

Subdivision 1. [CONTRACT REQUIRED.] No elderly housing with services establishment may operate in this state unless a written elderly housing with services contract, as defined in subdivision 2, is executed between the establishment and each resident or resident's representative and unless the establishment operates in accordance with the terms of the contract. The resident or the resident's representative shall be given a complete copy of the contract and all supporting documents and attachments and any changes whenever changes are made.

Subd. 2. [CONTENTS OF CONTRACT.] An elderly housing with services contract, which need not be entitled as such to comply with this section, shall include at least the following elements in itself or through supporting documents or attachments:

(1) name, street address, and mailing address of the establishment;

(2) the name and mailing address of the owner or owners of the establishment and, if the owner or owners is not a natural person, identification of the type of business entity of the owner or owners;

(3) the name and mailing address of the managing agent, through management agreement or lease agreement, of the establishment, if different from the owner or owners;

(4) the name and address of at least one natural person who is authorized to accept service on behalf of the owner or owners and managing agent;

(5) statement describing the registration and licensure status of the establishment and any provider providing health-related or supportive services under an arrangement with the establishment;

(6) term of the contract;

(7) description of the services to be provided to the resident in the base rate to be paid by resident;

(8) description of any additional services available for an additional fee from the establishment directly or through arrangements with the establishment;

(9) fee schedules outlining the cost of any additional services;

(10) description of the process through which the contract may be modified, amended, or terminated;

(11) description of the establishment's complaint resolution process available to residents;

(12) the resident's designated representative, if any;

(13) the establishment's referral procedures if the contract is terminated;

(14) criteria used by the establishment to determine who may continue to reside in the elderly housing with services establishment;

(15) billing and payment procedures and requirements;

(16) statement regarding the ability of residents to receive services from service providers with whom the establishment does not have an arrangement; and

(17) statement regarding the availability of public funds for payment for residence or services in the establishment.

Subd. 3. [CONTRACTS IN PERMANENT FILES.] Elderly Housing with services contracts and related documents executed by each resident or resident's representative shall be maintained by the establishment in files from the date of execution until three years after the contract is terminated. The contracts shall be made available for on-site inspection by the commissioner upon request at any time.

Sec. 12. Minnesota Statutes 1995 Supplement, section 144D.05, is amended to read:

144D.05 [AUTHORITY OF COMMISSIONER.]

The commissioner shall, upon receipt of information which may indicate the failure of the elderly a housing with services establishment, a resident, a resident's representative, or a service provider to comply with a legal requirement to which one or more of them may be subject, make appropriate referrals to other governmental agencies and entities having jurisdiction over the subject matter. The commissioner may also make referrals to any public or private agency the commissioner considers available for appropriate assistance to those involved.

The commissioner shall have standing to bring an action for injunctive relief in the district court in the district in which an establishment is located to compel the elderly a housing with services establishment to meet the requirements of this chapter or other requirements of the state or of any county or local governmental unit to which the establishment is otherwise subject. Proceedings for securing an injunction may be brought by the commissioner through the attorney general or through the appropriate county attorney. The sanctions in this section do not restrict the availability of other sanctions.

Sec. 13. Minnesota Statutes 1995 Supplement, section 144D.06, is amended to read:

144D.06 [OTHER LAWS.]

An elderly housing with services establishment shall obtain and maintain all other licenses, permits, registrations, or other governmental approvals required of it in addition to registration under this chapter, except that an establishment registered under this chapter is exempt, at its option, from the requirement of obtaining and maintaining an adult foster care license under Minnesota Rules, parts 9543.0010 to 9543.0150, or a lodging license under chapter 157. An elderly A housing with services establishment is subject to the provisions of sections 504.01 to 504.28 and 566.01 to 566.175. An elderly housing with services establishment which is also described in section 157.031 is exempt from the requirements of that section while it is registered under this chapter.

Sec. 14. Minnesota Statutes 1995 Supplement, section 157.17, subdivision 7, is amended to read:

Subd. 7. [EXEMPTION FOR ESTABLISHMENTS WITH A HUMAN SERVICES LICENSE AND FOR REGISTERED HOUSING WITH SERVICES ESTABLISHMENTS.] This section does not apply to a boarding and lodging establishment or lodging establishment that is licensed by the commissioner of human services under chapter 245A. Establishments registered under chapter 144D shall be considered registered under this section for all purposes except that:

(1) such establishments shall operate under the requirements of chapter 144D and sections 144A.43 to 144A.48, if applicable, and may not operate under the requirements of this section; and

(2) such establishments shall fall under the criminal background check requirements of sections 299C.67 to 299C.71. The criminal background check requirements of section 144.057 shall apply only to personnel providing home care services under sections 144A.43 to 144A.48 in such establishments.

Sec. 15. [REPEALER.]

Minnesota Statutes 1994, section 144A.45, subdivision 3, is repealed."

Delete the title and insert:

"A bill for an act relating to health; modifying requirements relating to home care providers and housing with services establishments; providing for licensure of housing with services home care providers; amending Minnesota Statutes 1994, sections 144A.43, subdivision 4; 144A.45, subdivision 1; and 144A.46, subdivision 1; Minnesota Statutes 1995 Supplement, sections 144B.01, subdivision 5; 144D.01, subdivisions 4, 5, and 6; 144D.02; 144D.03; 144D.04; 144D.05; 144D.06; and 157.17, subdivision 7; proposing coding for new law in Minnesota Statutes, chapter 144A; repealing Minnesota Statutes 1994, section 144A.45, subdivision 3."

With the recommendation that when so amended the bill pass.

The report was adopted.

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

H. F. No. 2247, A bill for an act relating to human services; directing the department of human services to determine and pay certain compensation of the appeals panel along with allowable fees and costs of patient's counsel; extending the state's authority to obtain a lien when covering medical care for a person; adding provisions to notice

required for monetary claims; amending Minnesota Statutes 1994, sections 253B.19, subdivision 1; 256.015, subdivision 4; and 256B.042, subdivisions 1 and 4; Minnesota Statutes 1995 Supplement, sections 256.015, subdivisions 1 and 2; and 256B.042, subdivision 2.

Reported the same back with the following amendments:

Page 2, line 2, strike everything after the period

Page 2, lines 3 and 4, strike the old language and delete the new language

Page 2, line 5, strike everything before the period, and insert "Judges serving on the appeal panel shall not receive compensation in addition to their regular compensation as judges, except that a retired judge may receive the difference between the amount of the judge's pension and the compensation of an active judge"

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. 2254, A bill for an act relating to public safety; requiring the commissioner of public safety to develop grant programs to fund law enforcement and community crime prevention initiatives; proposing coding for new law in Minnesota Statutes, chapter 299A.

Reported the same back with the following amendments:

Page 2, after line 16, insert:

"Sec. 2. [299A.63] [WEED AND SEED GRANT PROGRAM.]

Subdivision 1. [ESTABLISHMENT.] A grant program is established under the administration of the commissioner of public safety to assist local communities in their efforts to eradicate violent crime, illegal drug activity, and illegal gang activity in targeted neighborhoods, and to revitalize these targeted neighborhoods economically and socially.

Subd. 2. [WEED AND SEED COORDINATING COMMITTEE.] The weed and seed coordinating committee consists of the attorney general, the United States attorney for the state of Minnesota, and the commissioner of public safety. The coordinating committee is responsible for receiving applications for grants and awarding grants under this section. The commissioner of public safety shall act as the fiscal agent for the grant program.

Subd. 3. [GRANT PROCESS.] A city may apply for a grant under this section by submitting an application to the coordinating committee on a form prescribed by the weed and seed coordinating committee. The application shall:

(1) identify the target neighborhood or neighborhoods within the city that have been proposed by the city's mayor and police chief as a weed and seed site;

(2) describe the problems to be corrected within the targeted neighborhoods and the strengths that make the targeted neighborhoods suitable candidates for weed and seed funding; and

(3) contain the city's plan for use of the grant funds. This plan must be prepared in conjunction with members of the targeted neighborhoods, must describe the specific law enforcement, community policing, prevention, intervention, treatment, and neighborhood revitalization activities that the city intends to undertake, and must include a reporting and evaluation component.

Subd. 4. [ATTORNEY GENERAL DUTIES.] The attorney general shall assist cities and local law enforcement officials in developing and implementing anticrime and neighborhood revitalization strategies and shall assist local prosecutors in prosecuting crimes occurring in the targeted neighborhoods that receive funding under this section.

Upon request of the local prosecuting authority, the attorney general may appear in court in those civil and criminal cases arising out of targeted neighborhoods that the attorney general deems appropriate. In addition, for the purposes of this section, the attorney general may appear in court in cases involving nuisances under Minnesota Statutes, chapter 617, and misdemeanors under Minnesota Statutes, chapter 609.

Subd. 5. [UNITED STATES ATTORNEY DUTIES.] The attorney general shall develop appropriate grant applications to the United States Department of Justice for federal weed and seed grants for use in conjunction with grants awarded under this section.

Sec. 3. [APPROPRIATION.]

$....... is appropriated from the general fund to the commissioner of public safety for the fiscal year ending June 30, 1997, to be used to award grants under this section and is appropriated to the attorney general for providing assistance to local prosecutors and communities and developing grant applications as required in this section. This sum is available until expended."

Amend the title as follows:

Page 1, line 5, after the semicolon, insert "establishing the weed and seed coordinating committee and grant program; directing the attorney general to assist local law enforcement officials in developing and implementing anticrime strategies; authorizing appearance of the attorney general in court in certain civil and criminal cases; appropriating money;"

With the recommendation that when so amended the bill be re-referred to the Committee on Judiciary Finance without further recommendation.

The report was adopted.

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

H. F. No. 2256, A bill for an act relating to economic development; changing classification of the director of tourism; modifying provisions relating to business finance programs and the competitiveness task force; abolishing the main street program and the rural development board; transferring authority for certain programs; amending Minnesota Statutes 1994, sections 16B.06, subdivision 2; 116J.01, subdivision 5; 116J.581, subdivisions 2 and 4; and 116J.980, subdivision 1; Minnesota Statutes 1995 Supplement, sections 116J.58, subdivision 1; 116J.581, subdivision 1; 116J.655; 116N.03, subdivision 2; and 116N.06; repealing Minnesota Statutes 1994, sections 116J.981; 116N.01, subdivision 2; 116N.02, subdivisions 2, 3, 4, and 5; 116N.04; and 116N.07; Minnesota Statutes 1995 Supplement, section 116N.02, subdivision 1; Minnesota Rules, part 4370.0010, subpart 3.

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. 2258, A bill for an act relating to motor vehicles; allowing special motorcycle license plates for Vietnam veterans; amending Minnesota Statutes 1994, section 168.123, subdivisions 1 and 4.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 1994, section 168.123, subdivision 1, is amended to read:

Subdivision 1. [GENERAL REQUIREMENTS; FEES.] (a) On payment of a fee of $10 for each set of two plates, or for a single plate in the case of a motorcycle plate, payment of the registration tax required by law, and compliance

with other laws relating to the registration and licensing of a passenger automobile, pickup truck, van, self-propelled recreational equipment, or motorcycle, as applicable, the registrar shall issue:

(1) special license plates to an applicant who served in the active military service in a branch of the armed forces of the United States or of a nation or society allied with the United States in conducting a foreign war, was discharged under honorable conditions, and is an owner or joint owner of a motor vehicle included within the definition of a passenger automobile or which is, pickup truck, van, or self-propelled recreational equipment, on payment of a fee of $10 for each set of two plates, payment of the registration tax required by law, and compliance with other laws relating to registration and licensing of motor vehicles and drivers; or

(2) a special motorcycle license plate as described in subdivision 2, paragraph (a), to an applicant who is a Vietnam veteran who served after July 1, 1961, and before July 1, 1978, and who served in the active military service in a branch of the armed forces of the United States in conducting a foreign war, was discharged under honorable conditions, and is an owner or joint owner of a motorcycle. Plates issued under this clause must be the same size as standard motorcycle license plates.

(b) The additional fee of $10 is payable for each set of plates, is payable only when the plates are issued, and is not payable in a year in which tabs or stickers are issued instead of number plates. An applicant must not be issued more than two sets of plates for vehicles listed in paragraph (a) and owned or jointly owned by the applicant.

(c) The veteran shall have a certified copy of the veteran's discharge papers, indicating character of discharge, at the time of application. If an applicant served in the active military service in a branch of the armed forces of a nation or society allied with the United States in conducting a foreign war and is unable to obtain a record of that service and discharge status, the commissioner of veterans affairs may certify the applicant as qualified for the veterans' license plates provided under this section.

Sec. 2. Minnesota Statutes 1994, section 168.123, subdivision 4, is amended to read:

Subd. 4. [PLATE TRANSFERS.] (a) On payment of a fee of $5, plates issued under this section subdivision 1, paragraph (a), clause (1), may be transferred to another motor vehicle passenger automobile, pickup truck, van, or self-propelled recreational equipment owned or jointly owned by the person to whom the plates were issued.

(b) On payment of a fee of $5, a plate issued under subdivision 1, paragraph (a), clause (2), may be transferred to another motorcycle owned or jointly owned by the person to whom the plate was issued.

Sec. 3. Minnesota Statutes 1995 Supplement, section 171.04, subdivision 1, is amended to read:

Subdivision 1. [PERSONS NOT ELIGIBLE.] The department shall not issue a driver's license hereunder:

(1) To any person who is under the age of 16 years; to any person under 18 years unless such person shall have successfully completed a course in driver education, including both classroom and behind-the-wheel instruction, approved by the state board of education for courses offered through the public schools, or, in the case of a course offered by a private, commercial driver education school or institute, by the department of public safety; except when such person has completed a course of driver education in another state or has a previously issued valid license from another state or country; nor to any person under 18 years unless the application of license is approved by either parent when both reside in the same household as the minor applicant, otherwise the parent or spouse of the parent having custody or with whom the minor is living in the event there is no court order for custody, or guardian having the custody of such minor, or in the event a person under the age of 18 has no living father, mother or guardian, the license shall not be issued to such person unless the application therefor is approved by the person's employer. Driver education courses offered in any public school shall be open for enrollment to persons between the ages of 15 and 18 years residing in the school district or attending school therein. Any public school offering driver education courses may charge an enrollment fee for the driver education course which shall not exceed the actual cost thereof to the public school and the school district. The approval required herein shall contain a verification of the age of the applicant;

(2) To any person who is under the age of 18 years unless the person has applied for, been issued, and possessed the appropriate instruction permit for a minimum of six months;

(3) To any person whose license has been suspended during the period of suspension except that a suspended license may be reinstated during the period of suspension upon the licensee furnishing proof of financial responsibility in the same manner as provided in the Minnesota no-fault automobile insurance act;

(3) (4) To any person whose license has been revoked except upon furnishing proof of financial responsibility in the same manner as provided in the Minnesota no-fault automobile insurance act and if otherwise qualified;

(4) (5) To any person who is a drug dependent person as defined in section 254A.02, subdivision 5;

(5) (6) To any person who has been adjudged legally incompetent by reason of mental illness, mental deficiency, or inebriation, and has not been restored to capacity, unless the department is satisfied that such person is competent to operate a motor vehicle with safety to persons or property;

(6) (7) To any person who is required by this chapter to take an examination, unless such person shall have successfully passed such examination;

(7) (8) To any person who is required under the provisions of the Minnesota no-fault automobile insurance act of this state to deposit proof of financial responsibility and who has not deposited such proof;

(8) (9) To any person when the commissioner has good cause to believe that the operation of a motor vehicle on the highways by such person would be inimical to public safety or welfare;

(9) (10) To any person when, in the opinion of the commissioner, such person is afflicted with or suffering from such physical or mental disability or disease as will affect such person in a manner to prevent the person from exercising reasonable and ordinary control over a motor vehicle while operating the same upon the highways; nor to a person who is unable to read and understand official signs regulating, warning, and directing traffic;

(10) (11) To a child for whom a court has ordered denial of driving privileges under section 260.191, subdivision 1, or 260.195, subdivision 3a, until the period of denial is completed; or

(11) (12) To any person whose license has been canceled, during the period of cancellation.

Sec. 4. Minnesota Statutes 1994, section 171.05, is amended by adding a subdivision to read:

Subd. 2a. [PERMIT FOR SIX MONTHS.] An applicant who has applied for and received an instruction permit pursuant to subdivision 2 must possess the instruction permit for not less than six months before qualifying for a driver's license."

Delete the title and insert:

"A bill for an act relating to motor vehicles; allowing special motorcycle license plates for Vietnam veterans; imposing conditions on issuance of driver's licenses to persons under age 18; amending Minnesota Statutes 1994, sections 168.123, subdivisions 1 and 4; and 171.05, by adding a subdivision; Minnesota Statutes 1995 Supplement, section 171.04, subdivision 1."

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

The report was adopted.

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

H. F. No. 2268, A bill for an act relating to housing; providing for community rehabilitation and affordable rental investment programs; requiring local approval for certain housing projects; providing for the renewal of blighted multiunit residential property; authorizing bonds; providing for homeless assistance; appropriating money; proposing coding for new law in Minnesota Statutes, chapter 462A.

Reported the same back with the following amendments:

Pages 1 to 4, delete sections 1 to 3

Renumber the sections in sequence and correct internal references

Delete the title and insert:

"A bill for an act relating to housing; authorizing state bonds; appropriating money for loans to cities for the neighborhood land trust program."

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

The report was adopted.

Skoglund from the Committee on Judiciary to which was referred:

H. F. No. 2284, A bill for an act relating to family law; regulating reductions in monthly payments for overpayment of support or maintenance; amending Minnesota Statutes 1995 Supplement, section 518.611, subdivision 2.

Reported the same back with the following amendments:

Page 2, line 24, delete the new language and insert:

"(c) In cases in which the child support or maintenance is not assigned under section 256.74 and the obligor has overpaid a child support or maintenance obligation because of a modification of or error in the amount owed, the public authority shall apply the amount of the overpayment to reduce the amount of any child support or maintenance related arrearages or debts owed to the obligee. If an overpayment remains after the reduction of any arrearage or debt, the public authority shall reduce the amount of the child support remitted to the obligee by an amount equal to no more than 20 percent of the current monthly support or maintenance obligation and continue to remit this amount to the obligor until the overpayment is reduced to zero."

Page 2, delete lines 25 to 29

Page 2, line 30, strike "(c)" and insert "(d)"

Page 2, line 33, strike "(d)" and insert "(e)"

Page 3, line 1, strike "(e)" and insert "(f)"

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. 2295, A bill for an act relating to the environment; providing for a reduction in the pollution control agency's base operating budget for failing to meet the agency's goal of reducing pollution in the state; amending Minnesota Statutes 1995 Supplement, section 116.011.

Reported the same back with the following amendments:

Page 1, after line 7, insert:

"Section 1. Minnesota Statutes 1994, section 115A.9651, subdivision 1, is amended to read:

Subdivision 1. [PROHIBITION.] (a) Except as provided in paragraph (d), no person may distribute for sale or use in this state any ink, dye, pigment, paint, or fungicide manufactured after September 1, 1994, into which lead, cadmium, mercury, or hexavalent chromium has been intentionally introduced.

(b) For the purposes of this subdivision, "intentionally introduce" means to deliberately use a metal listed in paragraph (a) as an element during manufacture or distribution of an item listed in paragraph (a). Intentional introduction does not include the incidental presence of any of the prohibited elements.

(c) The concentration of a listed metal in an item listed in paragraph (a) may not exceed 100 parts per million.

(d) The use of lead in substances utilized in marking road, street, highway, and bridge pavements is exempt from this subdivision until July 1, 1998."

Page 2, line 1, delete "one-half" and insert "one-quarter"

Renumber the sections in sequence

Correct internal cross references

Amend the title as follows:

Page 1, line 2, after the semicolon, insert "temporarily excepting pavement markers from the prohibition on the use of lead in paint;"

Page 1, line 5, after "amending" insert "Minnesota Statutes 1994, section 115A.9651, subdivision 1;"

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.

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

H. F. No. 2298, A bill for an act relating to government efficiency; extending the effective period of certain exemptions granted by the board of government innovation and cooperation; granting independent school district No. 2134, United South Central, a waiver from a law related to elections; amending Minnesota Statutes 1995 Supplement, section 465.797, subdivision 5.

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

The report was adopted.

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

H. F. No. 2303, A bill for an act relating to health and human services; reconciling various provisions on criminal history background checks; amending Minnesota Statutes 1994, section 13.99, subdivision 39; Minnesota Statutes 1995 Supplement, sections 144.057, subdivisions 1 and 4; 245A.04, subdivision 3; 299C.67, subdivision 5; 299C.68, subdivisions 2, 5, and 6; and 609.2325, subdivision 3; proposing coding for new law in Minnesota Statutes, chapter 147; repealing Minnesota Statutes 1994, section 144A.46, subdivision 5.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 1995 Supplement, section 144.057, subdivision 1, is amended to read:

Subdivision 1. [BACKGROUND STUDIES REQUIRED.] The commissioner of health shall contract with the commissioner of human services to conduct background studies of:

(1) individuals providing services which have direct contact, as defined under section 245A.04, subdivision 3, with patients and residents in hospitals, boarding care homes, outpatient surgical centers licensed under sections 144.50 to 144.58; nursing homes and home care agencies licensed under chapter 144A; residential care homes licensed under

chapter 144B, and board and lodging establishments that are registered to provide supportive or health supervision services under section 157.031 157.17; and

(2) all other employees in nursing homes and home care agencies licensed under chapter 144A, and boarding care homes licensed under sections 144.50 to 144.58. A disqualification of the individual in this section shall disqualify the individual from positions allowing direct contact or access to patients or residents receiving services.

If a facility or program is licensed by the department of human services and subject to the background study provisions of chapter 245A and is also licensed by the department of health, the department of human services is solely responsible for the background studies of individuals in the jointly licensed programs.

Sec. 2. Minnesota Statutes 1995 Supplement, section 144.057, subdivision 3, is amended to read:

Subd. 3. [RECONSIDERATIONS.] The commissioner of health shall review and decide reconsideration requests, including the granting of variances, in accordance with the procedures and criteria contained in chapter 245A and Minnesota Rules, parts 9543.3000 to 9543.3090. The commissioner's decision shall be provided to the individual and to the department of human services. The commissioner's decision to grant or deny a reconsideration of disqualification is the final administrative agency action.

Sec. 3. Minnesota Statutes 1995 Supplement, section 144.057, subdivision 4, is amended to read:

Subd. 4. [RESPONSIBILITIES OF FACILITIES.] Facilities described in subdivision 1 shall be responsible for cooperating with the departments in implementing the provisions of this section. The responsibilities imposed on applicants and licensees under chapter 245A and Minnesota Rules, parts 9543.3000 to 9543.3090, shall apply to these facilities. The provision of section 245A.04, subdivision 3, paragraph (d) (e), shall apply to applicants, licensees, or an individual's refusal to cooperate with the completion of the background studies.

Sec. 4. Minnesota Statutes 1994, section 144A.46, subdivision 5, is amended to read:

Subd. 5. [PRIOR CRIMINAL CONVICTIONS.] (a) All persons who have or will have direct contact with clients, including the home care provider, employees of the provider, and applicants for employment shall be required to disclose all criminal convictions. The commissioner may adopt rules that may require a person who must disclose criminal convictions under this subdivision to provide fingerprints and releases that authorize law enforcement agencies, including the bureau of criminal apprehension and the Federal Bureau of Investigation, to release information about the person's criminal convictions to the commissioner and home care providers. The bureau of criminal apprehension, county sheriffs, and local chiefs of police shall, if requested, provide the commissioner with criminal conviction data available from local, state, and national criminal record repositories, including the criminal justice data communications network. No person may be employed by a home care provider in a position that involves contact with recipients of home care services nor may any person be involved in the management, operation, or control of a provider, if the person has been convicted of a crime that relates to the provision of home care services or to the position, duties, or responsibilities undertaken by that person in the operation of the home care provider, unless the person can provide sufficient evidence of rehabilitation. The commissioner shall adopt rules for determining what types of employment positions, including volunteer positions, involve contact with recipients of home care services, and whether a crime relates to home care services and what constitutes sufficient evidence of rehabilitation. The rules must require consideration of the nature and seriousness of the crime; the relationship of the crime to the purposes of home care licensure and regulation; the relationship of the crime to the ability, capacity, and fitness required to perform the duties and discharge the responsibilities of the person's position; mitigating circumstances or social conditions surrounding the commission of the crime; the length of time elapsed since the crime was committed; the seriousness of the risk to the home care client's person or property; and other factors the commissioner considers appropriate. Data collected under this subdivision shall be classified as private data under section 13.02, subdivision 12. Before the commissioner issues a license, the applicant for a license and, as defined in Minnesota Rules, part 4668.0003, an owner or managerial official shall be subject to the background study required by section 144.057. The commissioner shall not issue a license if the applicant for license, an owner or a managerial official, has a disqualifying characteristic under the provisions of chapter 245A, and Minnesota Rules, parts 9543.3000 to 9543.3090. Until October 1, 1997, grounds for disqualification shall also include the crimes specified under Minnesota Rules, part 4668.0020, subpart 14, or a comparable crime or act in another jurisdiction, unless the disqualification is set aside under the reconsideration process provided in section 144.057.

(b) Employees, contractors, and volunteers of a home care provider or hospice are subject to the background study required by section 144.057. These individuals shall be disqualified under the provisions of chapter 245A, and Minnesota Rules, parts 9543.3000 to 9543.3090. Until October 1, 1997, grounds for disqualification shall also include

the crimes specified under Minnesota Rules, part 4668.0020, subpart 14, or a comparable crime or act in another jurisdiction. Nothing in this section shall be construed to prohibit a home care provider from requiring self-disclosure of criminal conviction information; however, compliance with the provisions of section 144.057 constitutes compliance with the provisions of Minnesota Rules, part 4668.0020, subpart 8.

(c) Notwithstanding the provisions of Minnesota Rules, part 4668.0020, subparts 12, 13, and 15, disqualifications under paragraph (a) or (b), removal from a direct care position and the process for reconsiderations shall be governed by the provisions of section 144.057.

(d) Unless superseded by the provisions of section 144.057 or this section, the provisions of Minnesota Rules, part 4668.0020, remain in effect.

(b) (e) Termination of an employee in good faith reliance on information or records obtained under paragraph (a) (b) regarding a confirmed conviction does not subject the home care provider to civil liability or liability for reemployment insurance benefits.

Sec. 5. Minnesota Statutes 1995 Supplement, section 245A.04, subdivision 3, is amended to read:

Subd. 3. [STUDY OF THE APPLICANT.] (a) Before the commissioner issues a license, the commissioner shall conduct a study of the individuals specified in paragraph (c), clauses (1) to (5), according to rules of the commissioner.

The commissioner shall also conduct a study of employees providing direct contact services for nonlicensed personal care provider organizations described in paragraph (c), clause (5).

The commissioner shall recover the cost of these background studies through a fee charged to the personal care provider organization.

(b) Beginning July 1, 1997, when a background study is initiated by either a nursing home or a home care agency licensed under chapter 144A or a boarding care home licensed under sections 144.50 to 144.58, and the subject of the study resides outside Minnesota; the study must be at least as comprehensive as that of a Minnesota resident and include a search of information from the criminal justice data communications network in the state where the subject of the study resides.

(c) The applicant, license holder, the bureau of criminal apprehension, the commissioner of health and county agencies, after written notice to the individual who is the subject of the study, shall help with the study by giving the commissioner criminal conviction data and reports about abuse or neglect the maltreatment of adults in licensed programs substantiated under section 626.557 and the maltreatment of minors in licensed programs substantiated under section 626.556. The individuals to be studied shall include:

(1) the applicant;

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

(3) current employees or contractors of the applicant who will have direct contact with persons served by the facility, agency, or program and all other employees in nursing homes and home care agencies licensed under chapter 144A, and boarding care homes licensed under sections 144.50 to 144.58;

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

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

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

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

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

A study of an individual in clauses (1) to (5) shall be conducted at least upon application for initial license and reapplication for a license. The commissioner is not required to conduct a study of an individual at the time of reapplication for a license, other than a family day care or foster care license, if: (i) a study of the individual was conducted either at the time of initial licensure or when the individual became affiliated with the license holder; (ii) the individual has been continuously affiliated with the license holder since the last study was conducted; and (iii) the procedure described in paragraph (b) (d) has been implemented and was in effect continuously since the last study was conducted. For individuals who are required to have background studies under clauses (1) to (5) and who have been continuously affiliated with a foster care provider that is licensed in more than one county, criminal conviction data may be shared among those counties in which the foster care programs are licensed. A county agency's receipt of criminal conviction data from another county agency shall meet the criminal data background study requirements of this section.

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

(i) personnel pool agencies;

(ii) temporary personnel agencies;

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

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

(1) at the option of the licensed facility, rather than initiating another background study on an individual required to be studied who has indicated to the licensed facility that a background study by the commissioner was previously completed, the facility may make a request to the commissioner for documentation of the individual's background study status, provided that:

(i) the facility makes this request using a form provided by the commissioner;

(ii) in making the request the facility informs the commissioner that either:

(A) the individual has been continuously affiliated with a licensed facility since the individual's previous background study was completed, or since October 1, 1995, whichever is shorter; or

(B) the individual is affiliated only with a personnel pool agency, a temporary personnel agency, an educational program that trains persons by providing direct contact services in licensed programs, or a professional services agency that is not licensed and which contracts with licensed programs to provide direct contact services or individuals who provide direct contact services; and

(iii) the facility provides notices to the individual as required in paragraphs (a) to (d), and that the facility is requesting written notification of the individual's background study status from the commissioner;

(2) the commissioner shall respond to each request with a written notice to the facility and the study subject. If the commissioner determines that a background study is necessary, the study shall be completed without further request from a licensed agency or notifications to the study subject; and

(3) when a background study is being initiated by a licensed facility, a study subject affiliated with multiple licensed facilities may attach to the background study form a cover letter indicating the additional facilities' names, addresses, and background study identification numbers. When the commissioner receives such notices, each facility

identified by the background study subject shall be notified of the study results. The background study notice sent to the subsequent agencies shall satisfy those facilities' responsibilities for initiating a background study on that individual.

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

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

(d) (f) Except for child foster care, adult foster care, and family day care homes, a study must include information from the county agency's record of substantiated abuse or neglect maltreatment of adults in licensed programs, and the maltreatment of minors in licensed programs, information from juvenile courts as required in paragraph (a) (c) for persons listed in paragraph (a) (c), clause (2), and information from the bureau of criminal apprehension. For child foster care, adult foster care, and family day care homes, the study must include information from the county agency's record of substantiated abuse or neglect of adults related to names of substantiated perpetrators of maltreatment of vulnerable adults that has been received by the commissioner as required under section 626.557, subdivision 9c, paragraph (i), and the commissioner's records relating to the maltreatment of minors, information from juvenile courts as required in paragraph (a) (c) for persons listed in paragraph (a) (c), clause (2), and information from the bureau of criminal apprehension. The commissioner may also review arrest and investigative information from the bureau of criminal apprehension, the commissioner of health, a county attorney, county sheriff, county agency, local chief of police, other states, the courts, or a national criminal record repository the Federal Bureau of Investigation if the commissioner has reasonable cause to believe the information is pertinent to the disqualification of an individual listed in paragraph (a) (c), clauses (1) to (5). The commissioner is not required to conduct more than one review of a subject's records from the national criminal record repository Federal Bureau of Investigation if a review of the subject's criminal history with the national criminal record repository Federal Bureau of Investigation has already been completed by the commissioner and there has been no break in the subject's affiliation with the license holder who initiated the background studies.

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

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

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

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

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

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

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

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

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

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

Sec. 6. Minnesota Statutes 1995 Supplement, section 299C.67, subdivision 5, is amended to read:

Subd. 5. [OWNER.] "Owner" has the meaning given in section 566.18, subdivision 3. However, "owner" does not include a person who owns, operates, or is in control of a health care facility or a home health agency licensed by the commissioner of health or human services under chapter 144, 144A, or 144B, 245A, or a board and lodging establishment with special services registered under section 157.17.

Sec. 7. Minnesota Statutes 1995 Supplement, section 299C.68, subdivision 2, is amended to read:

Subd. 2. [PROCEDURES.] The superintendent shall develop procedures to enable an owner to request a background check to determine whether a manager is the subject of a reported conviction for a background check crime. The superintendent shall perform the background check by retrieving and reviewing data on background check crimes maintained in the CJIS computers. The superintendent shall notify the owner in writing of the results of the background check. If the manager has resided in Minnesota for less than five years or upon request of the owner, the superintendent shall also either: (1) conduct a search of the national criminal records repository, including the criminal justice data communications network; or (2) conduct a search of the criminal justice data communications network records in the state or states where the manager has resided for the preceding five years. The superintendent is authorized to exchange fingerprints with the Federal Bureau of Investigation for purposes of the criminal history check. The superintendent shall recover the cost of a background check through a fee charged to the owner.

Sec. 8. Minnesota Statutes 1995 Supplement, section 299C.68, subdivision 5, is amended to read:

Subd. 5. [RESPONSE OF BUREAU.] The superintendent shall respond in writing to a background check request within a reasonable time not to exceed ten working days after receiving the signed form under subdivision 3. If a search is being done of the national criminal records repository and that portion of the background check is not completed, the superintendent shall notify the owner that the background check is not complete and shall provide that portion of the background check to the owner as soon as it is available. The superintendent's response must clearly indicate whether the manager has ever been convicted of a background check crime and, if so, a description of the crime, date and jurisdiction of conviction, and date of discharge of the sentence.

Sec. 9. Minnesota Statutes 1995 Supplement, section 299C.68, subdivision 6, is amended to read:

Subd. 6. [EQUIVALENT BACKGROUND CHECK.] (a) An owner may satisfy the requirements of this section: (1) by obtaining a copy of a completed background check that was required to be performed by the department of human services as provided for under sections 144.057 and 245A.04, and then placing the copy on file with the owner;

(2) in the case of a background check performed on a manager for one residential setting when multiple residential settings are operated by one owner, by placing the results in a central location; or (3) by obtaining a background check from a private business or a local law enforcement agency rather than the superintendent if the scope of the background check provided by the private business or local law enforcement agency is at least as broad as that of a background check performed by the superintendent and the response to the background check request occurs within a reasonable time not to exceed ten working days after receiving the signed form described in subdivision 3. Local law enforcement agencies may access the criminal justice data network to perform the background check.

(b) A private business or local law enforcement agency providing a background check under this section must use a notification form similar to the form described in subdivision 3, except that the notification form must indicate that the background check will be performed by the private business or local law enforcement agency using records of the superintendent and other data sources.

Sec. 10. Minnesota Statutes 1995 Supplement, section 609.2325, subdivision 3, is amended to read:

Subd. 3. [PENALTIES.] (a) A person who violates subdivision 1, paragraph (a), clause (1), may be sentenced as follows:

(1) if the act results in the death of a vulnerable adult, imprisonment for not more than 15 years or payment of a fine of not more than $30,000, or both;

(2) if the act results in great bodily harm, imprisonment for not more than ten years or payment of a fine of not more than $20,000, or both;

(3) if the act results in substantial bodily harm or the risk of death, imprisonment for not more than five years or payment of a fine of not more than $10,000, or both; or

(4) in other cases, imprisonment for not more than one year or payment of a fine of not more than $3,000, or both.

(b) A person who violates subdivision 1, paragraph (a), clause (2), or paragraph (b), may be sentenced to imprisonment for not more than one year or to payment of a fine of not more than $3,000, or both.

Sec. 11. Laws 1995, chapter 229, article 3, section 17, is amended to read:

Sec. 17. [REPORT.]

By January 15, 1997, the commissioner of human services shall report to the legislature on the implementation of the process for reporting convictions under Minnesota Statutes, section 245A.04, subdivision 3, paragraph (b) (d). The report must include an analysis of any reduction in the cost of performing background studies resulting from implementing the process and any recommendations for modification of the fee increases in article 4, section 21, based on a reduction in costs.

As part of this report, the commissioner shall make recommendations for using any cost savings to begin conducting comparable background studies of individuals who reside outside Minnesota but are employed or perform direct contact services in a nursing home, home care agency, or boarding care home located in Minnesota.

Sec. 12. [UNCODIFIED LANGUAGE CHANGES AND RULE CHANGES.]

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

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

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

(c) Both the commissioner's authority to make the rule changes and the substantive language in paragraphs (a) and (b) are effective the day following final enactment. The rule changes described in paragraphs (a) and (b) are not subject to the rulemaking provisions of Minnesota Statutes, chapter 14, but the commissioner must comply with Minnesota Statutes, section 14.38, subdivision 7, in adopting the amendment.

Sec. 13. [STANDARDIZING OF CRIMINAL DISQUALIFICATION PLAN.]

The commissioner of health, in consultation with the commissioner of human services and the attorney general, shall convene an advisory workgroup to develop a plan for presentation to the 1997 legislature on recommendations and draft legislation to standardize, as appropriate, the criminal disqualification classifications for application to those required to comply with the applicant background study requirements under Minnesota Statutes, chapter 245A, Minnesota Statutes, sections 299C.67 and 299C.71, Minnesota Rules, part 4668.0020, and Minnesota Statutes, sections 256B.04, subdivision 16, and 256B.0625, subdivision 19a, and make recommendations for legislation to replace current disqualification crimes under all systems.

The plan shall provide for a review of the appropriateness of standardizing disqualification classifications relative to type of care setting, the nature of the crime, and time from the date of discharge for the crime for which an individual can be disqualified.

The advisory workgroup shall include representatives of health care providers, both organizational providers and professional providers, unions, state agencies, the attorney general's office, and consumer groups.

The plan, including recommendations and draft legislation, must be reported to the chairs of the senate crime prevention committee and the house of representatives judiciary committee by January 15, 1997.

Sec. 14. [EFFECTIVE DATE.]

(a) Background studies for personal care provider organizations described in section 5 are effective January 1, 1997.

(b) Sections 2, 3, 6, 9, 10, and 12 are effective the day following final enactment."

Delete the title and insert:

"A bill for an act relating to health and human services; reconciling various provisions on criminal history background checks; amending Minnesota Statutes 1994, section 144A.46, subdivision 5; Minnesota Statutes 1995 Supplement, sections 144.057, subdivisions 1, 3, and 4; 245A.04, subdivision 3; 299C.67, subdivision 5; 299C.68, subdivisions 2, 5, and 6; 609.2325, subdivision 3; and Laws 1995, chapter 229, article 3, section 17."

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

The report was adopted.

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

H. F. No. 2312, A bill for an act relating to health; expanding eligibility for the MinnesotaCare program; amending Minnesota Statutes 1995 Supplement, section 256.9354, subdivision 5.

Reported the same back with the following amendments:

Page 2, after line 17, insert:

"Sec. 2. Minnesota Statutes 1995 Supplement, section 256.9352, subdivision 3, is amended to read:

Subd. 3. [FINANCIAL MANAGEMENT.] (a) The commissioner shall manage spending for the MinnesotaCare program in a manner that maintains a minimum reserve equal to five percent of the expected cost of state premium subsidies. The commissioner must make a quarterly assessment of the expected expenditures for the covered services for the remainder of the current biennium and for the following biennium. The estimated expenditure, including

minimum reserve requirements, shall be compared to an estimate of the revenues that will be deposited in the health care access fund. Based on this comparison, and after consulting with the chairs of the house ways and means committee and the senate finance committee, and the legislative commission on health care access, the commissioner shall, as necessary, make the adjustments specified in paragraph (b) to ensure that expenditures remain within the limits of available revenues for the remainder of the current biennium and for the following biennium. The commissioner shall not hire additional staff using appropriations from the health care access fund until the commissioner of finance makes a determination that the adjustments implemented under paragraph (b) are sufficient to allow MinnesotaCare expenditures to remain within the limits of available revenues for the remainder of the current biennium and for the following biennium.

(b) The adjustments the commissioner shall use must be implemented in this order: first, reduce MinnesotaCare provider reimbursement rates as required under section 256.9370, subdivision 2; second, stop enrollment of single adults and households without children; second third, upon 45 days' notice, stop coverage of single adults and households without children already enrolled in the MinnesotaCare program; third fourth, upon 90 days' notice, decrease the premium subsidy amounts by ten percent for families with gross annual income above 200 percent of the federal poverty guidelines; fourth fifth, upon 90 days' notice, decrease the premium subsidy amounts by ten percent for families with gross annual income at or below 200 percent; and fifth sixth, require applicants to be uninsured for at least six months prior to eligibility in the MinnesotaCare program. If these measures are insufficient to limit the expenditures to the estimated amount of revenue, the commissioner shall further limit enrollment or decrease premium subsidies.

The reserve referred to in this subdivision is appropriated to the commissioner but may only be used upon approval of the commissioner of finance, if estimated costs will exceed the forecasted amount of available revenues after all adjustments authorized under this subdivision have been made.

By February 1, 1995, the department of human services and the department of health shall develop a plan to adjust benefit levels, eligibility guidelines, or other steps necessary to ensure that expenditures for the MinnesotaCare program are contained within the two percent taxes imposed under section 295.52 and the gross premiums tax imposed under section 60A.15, subdivision 1, paragraph (e), for fiscal year 1997.

(c) Notwithstanding paragraphs (a) and (b), the commissioner shall proceed with the enrollment of single adults and households without children in accordance with section 256.9354, subdivision 5, paragraph (a), even if the expenditures do not remain within the limits of available revenues through fiscal year 1997 to allow the departments of human services and health to develop the plan required under paragraph (b).

Sec. 3. [256.9370] [PROVIDER REIMBURSEMENT UNDER MINNESOTACARE PROGRAM.]

Subdivision 1. [RATE INCREASE.] Effective for services provided on or after July 1, 1996, the commissioner shall increase MinnesotaCare provider reimbursement rates for all services covered by MinnesotaCare by 15 percent above the rates in effect on June 30, 1996. The commissioner shall adjust any capitation rates developed for MinnesotaCare enrollees to reflect this increase.

Subd. 2. [COMPLIANCE WITH FINANCIAL MANAGEMENT REQUIREMENTS.] The commissioner shall reduce the reimbursement rates established under subdivision 1, including capitation rates if applicable, as provided in section 256.9352, subdivision 3, if this is necessary to comply with the financial management requirements for the MinnesotaCare program. The commissioner may not reduce reimbursement rates to a level lower than the rates in effect on June 30, 1996, and any reduction in capitation rates must not reflect this limitation."

Amend the title as follows:

Page 1, line 3, after the semicolon, insert "modifying the financial management provisions for MinnesotaCare; increasing the MinnesotaCare provider reimbursement rate;"

Page 1, line 4, delete "section" and insert "sections 256.9352, subdivision 3; and" and before the period, insert "; proposing coding for new law in Minnesota Statutes, chapter 256"

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. 2315, A bill for an act relating to marriage dissolution; eliminating a requirement that certain documents be acknowledged; amending Minnesota Statutes 1994, section 518.13, subdivision 5.

Reported the same back with the following amendments:

Page 1, line 14, strike "stipulation" and insert "marital termination agreement, signed by both parties"

Page 1, line 19, strike "signed" and strike "a stipulation, and all" and insert "entered into a marital termination agreement, the"

Page 1, line 20, before the period, insert ", and the parties and their counsel have signed the marital termination agreement"

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. 2318, A bill for an act relating to lawful gambling; regulating expenditures and reports; providing enforcement powers; removing the restriction on compensation to persons who participate in the conduct of lawful gambling; amending Minnesota Statutes 1994, sections 349.151, subdivision 4; 349.166, subdivisions 2 and 3; and 349.19, subdivision 3; repealing Minnesota Statutes 1994, section 349.168, subdivision 3.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 1994, section 349.151, subdivision 4, is amended to read:

Subd. 4. [POWERS AND DUTIES.] (a) The board has the following powers and duties:

(1) to regulate lawful gambling to ensure it is conducted in the public interest;

(2) to issue licenses to organizations, distributors, bingo halls, manufacturers, and gambling managers;

(3) to collect and deposit license, permit, and registration fees due under this chapter;

(4) to receive reports required by this chapter and inspect all premises, records, books, and other documents of organizations, distributors, manufacturers, and bingo halls to insure compliance with all applicable laws and rules;

(5) to make rules authorized by this chapter;

(6) to register gambling equipment and issue registration stamps;

(7) to provide by rule for the mandatory posting by organizations conducting lawful gambling of rules of play and the odds and/or house percentage on each form of lawful gambling;

(8) to report annually to the governor and legislature on its activities and on recommended changes in the laws governing gambling;

(9) to impose civil penalties of not more than $500 per violation on organizations, distributors, employees eligible to make sales on behalf of a distributor, manufacturers, bingo halls, and gambling managers for failure to comply with any provision of this chapter or any rule or order of the board;

(10) to issue premises permits to organizations licensed to conduct lawful gambling;

(11) to delegate to the director the authority to issue or deny license and premises permit applications and renewals under criteria established by the board;

(12) to suspend or revoke licenses and premises permits of organizations, distributors, manufacturers, bingo halls, or gambling managers as provided in this chapter;

(13) to register employees of organizations licensed to conduct lawful gambling;

(14) to require fingerprints from persons determined by board rule to be subject to fingerprinting;

(15) to delegate to a compliance review group of the board the authority to investigate alleged violations, issue consent orders, and initiate contested cases on behalf of the board;

(16) to order organizations, distributors, manufacturers, bingo halls, and gambling managers to take corrective actions; and

(17) to take all necessary steps to ensure the integrity of and public confidence in lawful gambling.

(b) The board, or director if authorized to act on behalf of the board, may by citation assess any organization, distributor, employee eligible to make sales on behalf of a distributor, manufacturer, bingo hall licensee, or gambling manager a civil penalty of not more than $500 per violation for a failure to comply with any provision of this chapter or any rule adopted or order issued by the board. Any organization, distributor, bingo hall licensee, gambling manager, or manufacturer assessed a civil penalty under this paragraph may request a hearing before the board. Appeals of citations imposing a civil penalty are not subject to the provisions of the administrative procedure act.

(c) All fees and penalties received by the board must be deposited in the general fund.

Sec. 2. Minnesota Statutes 1994, section 349.166, subdivision 2, is amended to read:

Subd. 2. [EXEMPTIONS.] (a) Lawful gambling may be conducted by an organization without a license and without complying with sections 349.168, subdivisions 1 and 2; 349.17, subdivisions 4 and 5; 349.18, subdivision 1; and 349.19 if:

(1) the organization conducts lawful gambling on five or fewer days in a calendar year;

(2) the organization does not award more than $50,000 in prizes for lawful gambling in a calendar year;

(3) the organization pays a fee of $25 to the board, notifies the board in writing not less than 30 days before each lawful gambling occasion of the date and location of the occasion, or 60 days for an occasion held in the case of a city of the first class, the types of lawful gambling to be conducted, the prizes to be awarded, and receives an exemption identification number;

(4) the organization notifies the local government unit 30 days before the lawful gambling occasion, or 60 days for an occasion held in a city of the first class;

(5) the organization purchases all gambling equipment and supplies from a licensed distributor; and

(6) the organization reports to the board, on a single-page form prescribed by the board, within 30 days of each gambling occasion, the gross receipts, prizes, expenses, expenditures of net profits from the occasion, and the identification of the licensed distributor from whom all gambling equipment was purchased.

(b) If the organization fails to file a timely report as required by paragraph (a), clause (3) or (6), a $250 penalty is imposed on the organization. Failure to file a timely report does not disqualify the organization as exempt under this subdivision if a report is later filed and the penalty paid. the board shall not issue any authorization, license, or permit to the organization to conduct lawful gambling on an exempt, excluded, or licensed basis until the report has been filed.

(c) Merchandise prizes must be valued at their fair market value.

(d) Unused pull-tab and tipboard deals must be returned to the distributor within seven working days after the end of the lawful gambling occasion. The distributor must accept and pay a refund for all returns of unopened and undamaged deals returned under this paragraph.

(e) An organization that is exempt from taxation on purchases of pull-tabs and tipboards under section 297E.02, subdivision 4, paragraph (b), clause (4), must return to the distributor any tipboard or pull-tab deal no part of which is used at the lawful gambling occasion for which it was purchased by the organization.

(f) The organization must maintain all required records of exempt gambling activity for 3-1/2 years.

Sec. 3. Minnesota Statutes 1994, section 349.166, subdivision 3, is amended to read:

Subd. 3. [RAFFLES; CERTAIN ORGANIZATIONS.] Sections 349.168, subdivisions 3 and subdivision 4; and 349.211, subdivision 3, and the membership requirements of section 349.16, subdivision 2, paragraph (c), do not apply to raffles conducted by an organization that directly or under contract to the state or a political subdivision delivers health or social services and that is a 501(c)(3) organization if the prizes awarded in the raffles are real or personal property donated by an individual, firm, or other organization. The person who accounts for the gross receipts, expenses, and profits of the raffles may be the same person who accounts for other funds of the organization.

Sec. 4. Minnesota Statutes 1994, section 349.18, subdivision 1, is amended to read:

Subdivision 1. [LEASE OR OWNERSHIP REQUIRED.] (a) An organization may conduct lawful gambling only on premises it owns or leases. Leases must be on a form prescribed by the board. Except for leases entered into before the effective date of this section, the term of the lease may not begin before the effective date of the premises permit and must expire on the same day that the premises permit expires. Copies of all leases must be made available to employees of the board and the division of gambling enforcement on request. A lease may not provide for payments determined directly or indirectly by the receipts or profits from lawful gambling. The board may prescribe by rule limits on the amount of rent which an organization may pay to a lessor for premises leased for lawful gambling provided that no rule of the board may prescribe a limit of less than $1,000 per month on rent paid for premises used for lawful gambling other than bingo. Any rule adopted by the board limiting the amount of rent to be paid may only be effective for leases entered into, or renewed, after the effective date of the rule.

(b) No person, distributor, manufacturer, lessor, or organization other than the licensed organization leasing the space may conduct any activity other than the sale or serving of nonalcoholic beverages on the leased premises during times when lawful gambling is being conducted on the premises.

(c) At a site where the leased premises consists of an area on or behind a bar at which alcoholic beverages are sold and employees of the lessor are employed by the organization as pull-tab sellers at the site, pull-tabs and tipboard tickets may be sold and redeemed by those employees at any place on or behind the bar, but the tipboards and receptacles for pull-tabs and cash drawers for lawful gambling receipts must be maintained only within the leased premises.

(d) Employees of a lessor may participate in lawful gambling on the premises provided (1) if pull-tabs or tipboards are sold, the organization voluntarily posts, or is required to post, the major prizes as specified in section 349.172; and (2) any employee of the lessor participating in lawful gambling is not a gambling employee for the organization conducting lawful gambling on the premises.

Sec. 5. Minnesota Statutes 1994, section 349.19, subdivision 3, is amended to read:

Subd. 3. [EXPENDITURES.] (a) All expenditures of gross profits from lawful gambling must be itemized as to payee, purpose, amount, and date of payment, and must be in compliance with section 349.154. Authorization of the expenditures must be recorded in the monthly meeting minutes of the licensed organization. Checks for expenditures of gross profits must be signed by at least two persons authorized by board rules to sign the checks.

(b) Expenditures authorized by the board according to section 349.12, subdivision 25, paragraph (b), clause (3), must be 51 percent completed within two years of the date of board approval. "Fifty-one percent completed" means that the work completed must represent at least 51 percent of the value of the project as documented by the contractor or vendor. An organization that fails to comply with this paragraph shall reapply to the board for approval of the project.

Sec. 6. [REPEALER.]

Minnesota Statutes 1994, section 349.168, subdivision 3, is repealed.

Sec. 7. [EFFECTIVE DATE.]

Sections 1 to 6 are effective the day following final enactment."

Delete the title and insert:

"A bill for an act relating to lawful gambling; regulating expenditures and reports; providing enforcement powers; removing the restriction on compensation to persons who participate in the conduct of lawful gambling; amending Minnesota Statutes 1994, sections 349.151, subdivision 4; 349.166, subdivisions 2 and 3; 349.18, subdivision 1; and 349.19, subdivision 3; repealing Minnesota Statutes 1994, section 349.168, subdivision 3."

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

The report was adopted.

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

H. F. No. 2365, A bill for an act relating to natural resources; modifying open burning restrictions; empowering the commissioner to declare an emergency; modifying provisions relating to timber sales; providing penalties; amending Minnesota Statutes 1994, sections 88.171, subdivisions 4 and 10; 90.041, by adding a subdivision; 90.101, subdivision 1; 90.121; and 90.191, subdivision 1; Minnesota Statutes 1995 Supplement, section 88.171, subdivision 2; proposing coding for new law in Minnesota Statutes, chapter 89.

Reported the same back with the following amendments:

Page 1, line 23, after "health" insert ", in consultation with the commissioner of the pollution control agency,"

Page 1, line 24, delete "is necessary" and insert "would be less hazardous"

Page 2, line 2, delete the new language and before "No" insert "(a)"

Page 2, lines 5 to 7, delete the new language and insert:

"(b) The commissioner may allow open burning of raw untreated wood if the commissioner determines that reuse, recycling, or land disposal is not a feasible or prudent alternative."

Page 2, delete section 4 and insert:

"Sec. 4. Minnesota Statutes 1994, section 90.031, subdivision 4, is amended to read:

Subd. 4. The executive council may formulate and establish, from time to time, rules it deems advisable for the transaction of timber business of the state, including approval of the sale of timber on any tract in a lot exceeding $50,000 6,000 cords in volume when the sale is in the best interests of the state, and may abrogate, modify, or suspend rules at its pleasure."

Page 3, line 16, strike "$15,000" and insert "3,000 CORDS"

Page 4, line 27, strike "$15,000" and insert "3,000 cords"

Amend the title as follows:

Page 1, line 5, delete "providing penalties;"

Page 1, line 6, after the semicolon, insert "90.031, subdivision 4;"

Page 1, line 10, delete everything after "2"

Page 1, line 11, delete everything before the period

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. 2377, A bill for an act relating to state government; repealing obsolete laws; repealing Minnesota Statutes 1994, sections 1.17; 1.25; 1.331; 3.85, subdivision 7; 4.02; 4.45; 5.02; 6.26; 6.46; 10.05; 10.38; 12.01; 15.07; 15.09; 15.10; 15.14; 15.15; 15.793; 15A.083, subdivisions 2 and 3; 15A.15; 16B.185; 17.14, subdivision 2; 17.23; 17.351, subdivision 2; 17.47, subdivision 5; 17.53, subdivisions 4 and 11; 17.693, subdivisions 3 and 7; 17.81, subdivision 6; 17.981; 17A.03, subdivision 4; 17B.02, subdivision 4; 18.46, subdivisions 8 and 14; 18.58; 18.77, subdivisions 2 and 11; 18.79, subdivisions 7 and 8; 18B.01, subdivision 16; 18B.065, subdivision 6; 18B.08; 18B.135, subdivision 2; 18B.39; 18C.005, subdivision 24; 18C.105; 18C.115, subdivision 2; 18C.121, subdivisions 2 and 3; 18C.141, subdivision 6; 18C.205, subdivision 5; 18C.531, subdivisions 6, 11, 19, 20, and 27; 18C.535, subdivisions 2 and 3; 18C.575; 18D.01, subdivision 8; 19.50, subdivision 16; 19.64, subdivision 5; 21.72, subdivision 2; 21.81, subdivisions 6 and 18; 24.135, subdivisions 6 and 7; 24.165; 25.33, subdivision 2; 25.44; 25.46; 27.01; 27.137, subdivisions 2, 3, 4, 6, 8, and 10; 27.15; 29.21, subdivision 2; 30.01, subdivision 2; 31.01, subdivision 2; 31.51, subdivisions 10 and 12; 31.782, subdivision 2; 31.92, subdivision 1a; 31A.02, subdivision 3; 31A.30; 31B.02; 32.01, subdivisions 3 and 4; 32.077; 32.101; 32.201; 32.205; 32.207; 32.398, subdivision 2; 32.401, subdivision 4; 32.411, subdivision 6; 32.471, subdivision 2; 32.485; 32.531, subdivisions 2, 3, and 4; 35.01; 35.73; 42.02, subdivision 2; 42.06, subdivision 4; 42.09, subdivision 3; 43A.082; 43A.27, subdivision 6; 43A.317, subdivision 11; 43A.47; 47.202; 62D.12, subdivision 12; 84.024; 84.083, subdivision 2; 84.154; 84.155; 84.157; 84.161; 84.521; 85.014; 87.01; 89.013; 89.014; 90.005, subdivisions 1, 4, and 5; 103B.155; 115A.06, subdivision 4; 115A.08; 115A.09; 115A.14, subdivisions 1, 2, and 3; 115A.175; 115A.18; 115A.19; 115A.191; 115A.192; 115A.193; 115A.194; 115A.195; 115A.20; 115A.201; 115A.21; 115A.22; 115A.24; 115A.241; 115A.25; 115A.26; 115A.27; 115A.28; 115A.29; 115A.291; 115A.30; 115A.301; 115A.31; 115A.908, subdivisions 1 and 2; 115A.97, subdivision 4; 116J.974; 116J.981; 116J.986; 118.02; 118.08; 119.04, subdivision 4; 124B.02; 124B.10; 124B.20, subdivisions 2 and 3; 136A.179; 137.03; 137.05; 137.06; 137.07; 137.08; 137.11; 137.14; 137.15; 137.33; 137.34, subdivision 2; 141.33; 141.34; 148B.34; 152.151; 161.041; 161.086; 166.01; 166.02; 166.03; 166.05; 166.06; 166.07; 166.08; 166.09; 166.10; 169.72, subdivision 3; 175.001, subdivision 5; 175.002; 175.003; 175.004; 175.005; 175.006, subdivision 4; 175.34; 176.1011; 177.34; 186.01; 186.02; 186.03; 186.04; 186.05; 186.06; 186.07; 186.08; 190.10; 191.09; 193.145, subdivision 1; 196.06, subdivision 2; 196.07; 196.10; 196.11; 196.14; 196.15; 197.60, subdivision 5; 197.971; 197.972; 197.973; 197.974; 197.975; 197.976; 197.977; 197.978; 197.979; 197.98; 197.981; 197.982; 197.983; 197.984; 197.985; 197.986; 198.002, subdivision 4; 201.023; 201.071; 201.081; 201.091; 201.096; 201.11; 201.12; 201.121; 201.13; 201.14; 201.15, subdivision 2; 201.161; 201.1611; 201.162; 201.171; 201.195; 201.211; 201.221; 201.27; 202A.17; 202A.20; 216B.39, subdivision 6; 216C.19, subdivisions 10, 11, and 12; 216C.21; 216C.22; 216C.23; 216C.24; 216C.33; 237.57; 237.5799; 237.58; 237.59; 237.60; 237.61; 237.62; 237.625; 246.44; 246.45; 246.46; 251.011; 254.02; 256B.56; 256B.57; 256B.58; 256B.59; 256B.60; 256B.61; 256B.62; 256B.63; 256E.07, subdivision 1a; 256E.08, subdivision 9; 261.251; 275.064; 280.12; 280.13; 280.25; 280.26; 281.15; 281.26; 281.27; 290.06, subdivision 21; 290.092; 295.01; 295.37; 295.39; 295.40; 295.41; 295.42; 295.43; 297A.14, subdivision 3; 297A.24, subdivision 2; 298.226; 298.244; 299D.01, subdivision 5; 299F.01, subdivision 3; 345.20, subdivision 6; 352B.265; 353.011; 367.411; 367.43; 373.013; 373.045; 374.03; 374.04; 374.06; 374.07; 374.22; 374.23; 375.24; 375.383; 375.435; 377.01; 377.03; 377.05; 383A.01; 383A.07, subdivisions 11, 21, 22, and 25; 383A.09; 383A.10; 383A.15; 383A.301; 383A.34; 383A.44; 383A.551; 383A.552; 383A.553; 383A.554; 383A.555; 383A.556; 383B.227; 383B.233; 383B.69; 383C.054; 383C.057; 383C.058; 383D.15; 383D.34; 383D.67; 386.375, subdivision 6; 388.19, subdivision 2; 390.26; 397.05; 397.06; 397.07; 397.08; 397.09; 397.10; 397.101; 397.102; 412.015, subdivision 1; 412.018, subdivision 2; 412.023, subdivision 4; 412.092; 441.01; 441.02; 441.03; 441.04; 441.05; 441.06; 441.07; 441.08; 441.09; 446A.10; 457.13; 458.1931; 458D.01; 458D.13; 462A.02; 462A.222, subdivision 4; 465.681; 466.10; 466.12, subdivision 4; 469.124; 469.134; 471.74, subdivisions 1 and 3; 471.9975; 471.998; 471.9981; 471A.07; 473.204; 473.418; 473.608, subdivision 20; 473.855; 474.22; 475.75; 477A.011, subdivision 2; 477A.012, subdivisions 1, 3, 4, 7, and 8; 477A.013, subdivision 6; 477A.014, subdivision 1a; 487.12; 515B.1-110; 515B.1-111; 557.022; 611A.07, subdivision 2; 611A.23; 611A.42; 611A.44; 625.01; 625.02; 625.03; 625.04; 625.05; 625.06; 625.07; 625.08; 625.09; 625.10; 625.11; 625.12; 625.13; 625.14; 625.15; 625.16; 625.17; 625.18; 626.559, subdivisions 2, 3, 4, and 5; 626.563; 626.855; and

641.111; Minnesota Statutes 1995 Supplement, sections 17A.091, subdivision 2; 115A.14, subdivision 4; 115A.908, subdivision 3; 124B.01; 124B.03; 124B.20, subdivision 1; 135A.10, subdivision 1; 136A.043; 201.022, subdivision 2; 201.15, subdivision 1; 471.74, subdivision 2; 474.191; 475.53, subdivision 6; 477A.012, subdivision 2; and 626.559, subdivision 1.

Reported the same back with the following amendments:

Page 3, line 1, delete "5.02;" and delete "6.46;"

Page 3, line 2, delete "12.01;" and delete "15.10;"

Page 3, line 3, delete "16B.185;"

Page 3, line 4, delete "17.23;"

Page 3, line 9, after "18B.08" insert ", subdivision 5"

Page 3, line 20, delete "31B.02;"

Page 3, line 27, delete "84.154; 84.155;"

Page 3, line 28, delete "84.157; 84.161; 84.521; 85.014;"

Page 3, line 29, delete "103B.155;"

Page 3, line 30, delete "115A.175;"

Page 3, delete line 31

Page 3, line 32, delete "115A.195; 115A.20;" and delete "115A.24;"

Page 3, line 33, after "115A.28" insert ", subdivision 1"

Page 3, delete line 34

Page 4, line 9, delete "196.07;" and delete "197.60,"

Page 4, line 10, delete "subdivision 5;"

Page 4, delete lines 13 to 15

Page 4, line 16, delete "202A.20; 216B.39, subdivision 6;"

Page 4, delete line 18

Page 4, line 19, delete "237.625;" and after "251.011" insert ", subdivisions 1, 4, 4a, 7, and 8"

Page 4, line 23, delete "290.06, subdivision 21; 290.092;" and delete "295.37; 295.39; 295.40;"

Page 4, delete line 24

Page 4, line 25, delete "subdivision 2;"

Page 4, line 29, delete "383A.01;"

Page 4, line 30, delete "383A.301;"

Page 4, line 31, delete everything after the first semicolon

Page 4, line 32, delete "383A.556;"

Page 5, line 2, delete "458D.01;" and delete "462A.02; 462A.222,"

Page 5, line 3, delete "subdivision 4;"

Page 5, line 4, delete "469.134;"

Page 5, line 5, delete "471.9981;"

Page 5, delete lines 10 and 11

Page 5, line 12, delete "625.17; 625.18;" and delete "subdivisions 2, 3, 4, and 5" and insert "subdivision 4"

Page 5, line 15, delete "115A.908, subdivision 3;"

Page 5, line 16, delete "201.022, subdivision 2;"

Page 5, line 17, delete "201.15, subdivision 1;" and delete "475.53," and insert "and"

Page 5, line 18, delete "subdivision 6;" and delete "; and 626.559, subdivision"

Page 5, line 19, delete "1"

Page 5, after line 19, insert:

"Sec. 2. [REVISOR'S INSTRUCTION.]

The revisor shall prepare a bill for introduction in the 1997 session of the legislature that corrects references to statutory sections repealed in section 1."

Delete the title and insert:

"A bill for an act relating to state government; repealing obsolete laws; repealing Minnesota Statutes 1994, sections 1.17; 1.25; 1.331; 3.85, subdivision 7; 4.02; 4.45; 6.26; 10.05; 10.38; 15.07; 15.09; 15.14; 15.15; 15.793; 15A.083, subdivisions 2 and 3; 15A.15; 17.14, subdivision 2; 17.351, subdivision 2; 17.47, subdivision 5; 17.53, subdivisions 4 and 11; 17.693, subdivisions 3 and 7; 17.81, subdivision 6; 17.981; 17A.03, subdivision 4; 17B.02, subdivision 4; 18.46, subdivisions 8 and 14; 18.58; 18.77, subdivisions 2 and 11; 18.79, subdivisions 7 and 8; 18B.01, subdivision 16; 18B.065, subdivision 6; 18B.08, subdivision 5; 18B.135, subdivision 2; 18B.39; 18C.005, subdivision 24; 18C.105; 18C.115, subdivision 2; 18C.121, subdivisions 2 and 3; 18C.141, subdivision 6; 18C.205, subdivision 5; 18C.531, subdivisions 6, 11, 19, 20, and 27; 18C.535, subdivisions 2 and 3; 18C.575; 18D.01, subdivision 8; 19.50, subdivision 16; 19.64, subdivision 5; 21.72, subdivision 2; 21.81, subdivisions 6 and 18; 24.135, subdivisions 6 and 7; 24.165; 25.33, subdivision 2; 25.44; 25.46; 27.01; 27.137, subdivisions 2, 3, 4, 6, 8, and 10; 27.15; 29.21, subdivision 2; 30.01, subdivision 2; 31.01, subdivision 2; 31.51, subdivisions 10 and 12; 31.782, subdivision 2; 31.92, subdivision 1a; 31A.02, subdivision 3; 31A.30; 32.01, subdivisions 3 and 4; 32.077; 32.101; 32.201; 32.205; 32.207; 32.398, subdivision 2; 32.401, subdivision 4; 32.411, subdivision 6; 32.471, subdivision 2; 32.485; 32.531, subdivisions 2, 3, and 4; 35.01; 35.73; 42.02, subdivision 2; 42.06, subdivision 4; 42.09, subdivision 3; 43A.082; 43A.27, subdivision 6; 43A.317, subdivision 11; 43A.47; 47.202; 62D.12, subdivision 12; 84.024; 84.083, subdivision 2; 87.01; 89.013; 89.014; 90.005, subdivisions 1, 4, and 5; 115A.06, subdivision 4; 115A.08; 115A.09; 115A.14, subdivisions 1, 2, and 3; 115A.201; 115A.21; 115A.22; 115A.241; 115A.25; 115A.26; 115A.27; 115A.28, subdivision 1; 115A.29; 115A.291; 115A.97, subdivision 4; 116J.974; 116J.981; 116J.986; 118.02; 118.08; 119.04, subdivision 4; 124B.02; 124B.10; 124B.20, subdivisions 2 and 3; 136A.179; 137.03; 137.05; 137.06; 137.07; 137.08; 137.11; 137.14; 137.15; 137.33; 137.34, subdivision 2; 141.33; 141.34; 148B.34; 152.151; 161.041; 161.086; 166.01; 166.02; 166.03; 166.05; 166.06; 166.07; 166.08; 166.09; 166.10; 169.72, subdivision 3; 175.001, subdivision 5; 175.002; 175.003; 175.004; 175.005; 175.006, subdivision 4; 175.34; 176.1011; 177.34; 186.01; 186.02; 186.03; 186.04; 186.05; 186.06; 186.07; 186.08; 190.10; 191.09; 193.145, subdivision 1; 196.06, subdivision 2; 196.10; 196.11; 196.14; 196.15; 197.971; 197.972; 197.973; 197.974; 197.975; 197.976; 197.977; 197.978; 197.979; 197.98; 197.981; 197.982; 197.983; 197.984; 197.985; 197.986; 198.002, subdivision 4; 202A.17; 216C.19, subdivisions 10, 11, and 12; 216C.21; 216C.22; 216C.23; 216C.24; 216C.33; 246.44; 246.45; 246.46; 251.011, subdivisions 1, 4, 4a, 7, and 8; 254.02; 256B.56; 256B.57; 256B.58; 256B.59; 256B.60; 256B.61; 256B.62; 256B.63; 256E.07, subdivision 1a; 256E.08, subdivision 9; 261.251; 275.064; 280.12; 280.13; 280.25; 280.26; 281.15; 281.26; 281.27; 295.01; 298.226; 298.244; 299D.01, subdivision 5; 299F.01, subdivision 3; 345.20, subdivision 6; 352B.265; 353.011; 367.411; 367.43; 373.013; 373.045; 374.03; 374.04; 374.06; 374.07; 374.22; 374.23; 375.24; 375.383; 375.435; 377.01; 377.03; 377.05; 383A.07, subdivisions 11, 21, 22, and 25; 383A.09;

383A.10; 383A.15; 383A.34; 383A.44; 383B.227; 383B.233; 383B.69; 383C.054; 383C.057; 383C.058; 383D.15; 383D.34; 383D.67; 386.375, subdivision 6; 388.19, subdivision 2; 390.26; 397.05; 397.06; 397.07; 397.08; 397.09; 397.10; 397.101; 397.102; 412.015, subdivision 1; 412.018, subdivision 2; 412.023, subdivision 4; 412.092; 441.01; 441.02; 441.03; 441.04; 441.05; 441.06; 441.07; 441.08; 441.09; 446A.10; 457.13; 458.1931; 458D.13; 465.681; 466.10; 466.12, subdivision 4; 469.124; 471.74, subdivisions 1 and 3; 471.9975; 471.998; 471A.07; 473.204; 473.418; 473.608, subdivision 20; 473.855; 474.22; 475.75; 477A.011, subdivision 2; 477A.012, subdivisions 1, 3, 4, 7, and 8; 477A.013, subdivision 6; 477A.014, subdivision 1a; 487.12; 515B.1-110; 515B.1-111; 557.022; 611A.07, subdivision 2; 611A.23; 611A.42; 611A.44; 626.559, subdivision 4; 626.563; 626.855; and 641.111; Minnesota Statutes 1995 Supplement, sections 17A.091, subdivision 2; 115A.14, subdivision 4; 124B.01; 124B.03; 124B.20, subdivision 1; 135A.10, subdivision 1; 136A.043; 471.74, subdivision 2; 474.191; and 477A.012, subdivision 2."

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. 2379, A bill for an act relating to exotic species; recodifying, modifying, and expanding provisions relating to regulation and management of harmful exotic species; amending Minnesota Statutes 1994, sections 97A.105, subdivision 1; 97A.211, subdivisions 1 and 2; Minnesota Statutes 1995 Supplement, sections 84.027, subdivision 13; 97A.205; and 97A.221, subdivision 1; proposing coding for new law as Minnesota Statutes, chapter 84D; repealing Minnesota Statutes 1994, sections 84.966; 84.967; 84.968, subdivision 2; 84.969; 84.9692, subdivisions 3, 4, 5, and 6; and 103G.617; Minnesota Statutes 1995 Supplement, sections 18.316; 18.317; 84.968, subdivision 1; 84.9691; 84.9692, subdivisions 1, 1a, and 2; and 86B.401, subdivision 11.

Reported the same back with the following amendments:

Page 11, line 9, after the semicolon, insert "and"

Page 11, delete line 10

Page 11, line 11, delete "(5)" and insert "(4)" and before " of" insert "and use"

Page 11, after line 27, insert:

"(3) unregulated exotic species;"

Page 11, line 28, delete "(3)" and insert "(4)"

Page 11, line 29, delete "(4)" and insert "(5)"

Page 12, line 5, delete "this chapter" and insert "sections 84D.05 to 84D.08, 84D.10, and 84D.11"

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. 2425, A bill for an act relating to cities; providing for certain vacancies in the elected offices of mayor or council member in statutory cities; amending Minnesota Statutes 1994, section 412.02, subdivision 2a, and by adding a subdivision.

Reported the same back with the following amendments:

Page 2, delete lines 2 to 21 and insert:

"Subd. 2b. In addition to the events specified in section 351.02, a vacancy in the office of mayor or council member occurs when the officeholder is unable to serve in the office or attend council meetings for not less than 90 days because of illness or prolonged absence from the city or council ward, as appropriate. If a vacancy occurs under this subdivision, the council may, after it has by resolution declared the vacancy to exist, fill the vacancy at any regular or special meeting for the remainder of the unexpired term, or until such ill or absent member is again able to resume duties and attend council meetings, whichever date is earliest. When the ill or absent person is again able to resume duties and attend council meetings, the council shall by resolution so determine and declare the person to be again the officeholder and the replacement appointment by the council be no longer the officeholder."

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. 2454, A bill for an act relating to agriculture; changing requirements for certain commodity council referenda; amending Minnesota Statutes 1994, section 17.56, subdivision 5.

Reported the same back with the following amendments:

Page 1, after line 13, insert:

"Sec. 2. [EFFECTIVE DATE.]

Section 1 is effective the day after final enactment."

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

The report was adopted.

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

H. F. No. 2484, A bill for an act relating to public employment; imposing conditions protecting the rights of employees on any transfer of the University of Minnesota hospital and clinics to Fairview hospital and healthcare services.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

Section 1. [352F.01] [PURPOSE.]

The purpose of this chapter is to assure, to the extent possible, that persons employed at the University of Minnesota hospital and clinics will be entitled to receive future retirement benefits under the general state employees retirement plan of the Minnesota state retirement system commensurate with the prior contributions made by them or on their behalf upon the integration of the University of Minnesota hospital and clinics and Fairview hospital and healthcare services.

Sec. 2. [352F.02] [DEFINITIONS.]

Subdivision 1. [DEFINITIONS.] As used in this chapter, unless the context or subject matter indicates otherwise, the following terms have the meanings given in this section.

Subd. 2. [ALLOWABLE SERVICE.] "Allowable service" has the meaning provided in section 352.01, subdivision 11.

Subd. 3. [EFFECTIVE DATE.] "Effective date" is the date terminated hospital employees transfer employment to Fairview under a definitive integration agreement between the University of Minnesota and Fairview.

Subd. 4. [FAIRVIEW.] "Fairview" means Fairview hospital and healthcare services, a Minnesota nonprofit corporation, and its successors.

Subd. 5. [SECTION.] "Section" means the designated section of Minnesota Statutes.

Subd. 6. [TERMINATED HOSPITAL EMPLOYEE.] "Terminated hospital employee" means a person who:

(1) was employed on the day before the effective date by the University of Minnesota at the University of Minnesota hospital and clinics and was paid on a biweekly payroll;

(2) terminated employment with the University of Minnesota on the day before the effective date; and

(3) was a participant in the general state employees retirement plan of the Minnesota state retirement system at the time of termination of employment with the University of Minnesota.

Subd. 7. [UNIVERSITY OF MINNESOTA.] "University of Minnesota" means University of Minnesota hospital and clinics, the hospitals and clinics operated by the regents of the University of Minnesota.

Subd. 8. [YEARS OF ALLOWABLE SERVICE.] "Years of allowable service" has the meaning provided in section 352.01, subdivision 16.

Sec. 3. [352F.03] [VESTING RULE FOR CERTAIN EMPLOYEES.]

Notwithstanding any provision of chapter 352 to the contrary, a terminated hospital employee is eligible to receive a retirement annuity under section 352.115 without regard to the requirement for three years of allowable service.

Sec. 4. [352F.04] [AUGMENTATION INTEREST RATE FOR TERMINATED UNIVERSITY HOSPITAL EMPLOYEES.]

The deferred annuity of a terminated hospital employee is subject to augmentation in accordance with section 352.72, subdivision 2, except that the rate of interest for this purpose is 5.5 percent compounded annually until January 1 of the year in which such person attains age 55. From that date to the effective date of retirement, the rate is 7.5 percent. These increased augmentation rates are no longer applicable for any time after the terminated hospital employee becomes covered again by a retirement fund enumerated in section 356.30, subdivision 3. These increased deferred annuity augmentation rates do not apply to a terminated transferred hospital employee who begins receipt of a retirement annuity while employed by Fairview.

Sec. 5. [352F.05] [AUTHORIZATION FOR ADDITIONAL ALLOWABLE SERVICE FOR CERTAIN EARLY RETIREMENT PURPOSES.]

Notwithstanding any provision of chapter 352 to the contrary, the years of allowable service for a terminated hospital employee who transfers to employment at Fairview on the effective date and does not apply for a refund of contributions pursuant to section 352.22, subdivision 2, or any similar provision in future Minnesota Statutes, includes service with Fairview following the effective date.

This section is solely for the purpose of determining eligibility for early retirement benefits provided in section 352.116, subdivision 1, paragraphs (a) and (b). No early retirement benefits under this section may be paid during any period the terminated hospital employee is employed by Fairview. The reemployed annuitant earnings limitation of section 352.115, subdivision 10, also applies to any service as an employee of Fairview. Fairview shall provide any reports that the executive director of the Minnesota state retirement system may reasonably request to permit calculation of this additional service credit.

Sec. 6. [352F.06] [EFFECT ON REFUND.]

Notwithstanding any provision of chapter 352 to the contrary, terminated hospital employees may receive a refund of employee accumulated contributions plus interest at the rate of 6.0 percent per year compounded annually in accordance with section 352.22, subdivision 2, at any time after the transfer of employment to Fairview. If a terminated hospital employee has received a refund from a pension plan enumerated in section 356.30, subdivision 3, the person may not repay that refund unless the person again becomes a member of one of those enumerated plans and complies with section 356.30, subdivision 2.

Sec. 7. [352F.07] [COUNSELING SERVICES.]

The University of Minnesota hospital and clinics and the Minnesota state retirement system shall provide terminated hospital employees with counseling on their benefits available under the general state employees retirement plan of the Minnesota state retirement system.

Sec. 8. [EFFECTIVE DATE.]

Sections 1 to 7 are effective as of the date employees of the University of Minnesota cease to be members of the Minnesota state retirement system as a result of an integration agreement between the University of Minnesota and Fairview.

Section 1. [CONDITIONS GOVERNING INTEGRATION.]

Subdivision 1. [LIMITATION.] The regents of the University of Minnesota may not enter into a definitive integration agreement affecting the University of Minnesota hospital and clinics and Fairview hospital and healthcare services unless the conditions set out in this section have been fulfilled.

Subd. 2. [COLLECTIVE BARGAINING AGREEMENTS.] If an integration agreement described in subdivision 1 results in the transfer of represented employees of the University of Minnesota hospital and clinics to Fairview hospital and healthcare services or a new entity, collective bargaining agreements covering those employees on the effective date of that agreement must remain in effect until representation of those employees has been determined under the national labor relations act and successor agreements covering the employees become effective.

Subd. 3. [CURRENT EXCLUSIVE REPRESENTATIVES.] The exclusive representatives of employees of the University of Minnesota hospital and clinics on the effective date of an agreement described in subdivision 1 must have continuing responsibility for administration of their agreements, and all contractual duties, rights, and obligations, including the right to deduction of dues and fair share fees, must remain in effect until new agreements become effective or new exclusive representatives have been certified.

Subd. 4. [UNREPRESENTED EMPLOYEES.] If an agreement described in subdivision 1 results in the transfer of unrepresented employees of the University of Minnesota hospital and clinics to Fairview hospital and healthcare services or a new entity, the terms and conditions of agreements, compensation plans, personnel policies, or other salary and benefit provisions covering those employees on the date of that agreement remain in effect until June 30, 1997.

Subd. 5. [COMPENSATION.] The compensation of employees of the University of Minnesota hospital and clinics on the effective date of an agreement described in subdivision 1 may not be diminished after the date of an agreement. If a successor collective bargaining agreement, compensation plan, personnel policy, or other pay and benefit provision provides for a lower compensation rate for an employee's classification, the employee's rate may not be decreased, but may remain at its current level until a higher rate becomes effective for that classification.

Subd. 6. [BENEFITS; SENIORITY.] Accumulations of leaves, years of service, and benefits accrued by employees of the University of Minnesota hospital and clinics on the effective date of an agreement described in subdivision 1 must remain in effect and be credited to the employees for purposes of their employment by a governing body established in accordance with subdivision 2. The governing body may not reduce the value or coverage of the employees' insurance benefits, eligibility for regents' scholarships, or other benefits, except as provided in Minnesota

Statutes, sections 352F.01 to 352F.07. The new governing body shall compile and maintain a merged seniority roster covering former employees of the University of Minnesota hospital and clinics and any former employees of Fairview hospital and healthcare services who are employed by the governing body. Probationary periods and provisions governing promotion, layoff, lateral transfers, disciplinary procedures, and dismissals under a collective bargaining agreement in effect on the effective date of an agreement described in subdivision 1 must remain in effect until modified by a successor agreement.

Subd. 7. [TRAINING MONEY.] Sufficient money must be provided for training and retraining of permanent or regular employees of the University of Minnesota hospital and clinics who are transferred to Fairview hospital and health care services or a new entity as a result of an agreement described in subdivision 1.

Subd. 8. [PRESERVATION OF RIGHTS.] This section does not abrogate or change any rights enjoyed by employees of the University of Minnesota hospital and clinics under the terms of a collective bargaining agreement authorized by Minnesota Statutes, section 179A.20, and in effect at the effective date of this section.

Sec. 2. [EFFECTIVE DATE.]

Section 1 is effective the day following final enactment."

Delete the title and insert:

"A bill for an act relating to retirement and public employment; modifying benefits for certain former participants in the Minnesota state retirement system; authorizing additional service credits for certain University of Minnesota hospital and clinics employees; authorizing additional augmentation for employees of the University of Minnesota hospital and clinics who terminate participation in the Minnesota state retirement system; imposing conditions protecting the rights of employees on any integration of the University of Minnesota hospital and clinics and Fairview hospital and healthcare services; proposing coding for new law as Minnesota Statutes, chapter 352F."

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. 2496, A bill for an act relating to metropolitan council transit; providing for the metropolitan council transit operations to be subject to special assessments; amending Minnesota Statutes 1995 Supplement, section 473.448.

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

The report was adopted.

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

H. F. No. 2519, A bill for an act relating to the environment; increasing the amount of reimbursement available for cleanup of petroleum releases by certain responsible persons; amending Minnesota Statutes 1995 Supplement, section 115C.09, subdivision 3.

Reported the same back with the following amendments:

Page 1, delete lines 20 to 26 and insert:

"(3) 100 percent of the cumulative total reimbursable costs in excess of $250,000 at all sites in which the responsible person had interest, and for which the commissioner has not issued a closure letter, if the responsible person:

(i) did not own more than three locations within the state at which motor fuel was dispensed into motor vehicles; and

(ii) has sold all locations which were used to store petroleum products and has discontinued operation of all petroleum retail operations."

Page 2, delete lines 1 and 2

Page 4, delete line 35 and insert:

"Section 1 is effective the day after final enactment."

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. 2526, A bill for an act relating to crime; making it a crime to obtain cellular telephone service through cellular counterfeiting; requiring forfeiture of cloning paraphernalia used to create cloned cellular telephones; prescribing penalties; amending Minnesota Statutes 1994, section 609.531, subdivision 1; proposing coding for new law in Minnesota Statutes, chapter 609.

Reported the same back with the following amendments:

Page 4, line 20, delete "and:" and insert a period

Page 4, delete lines 21 to 23

Page 4, line 36, delete "and:" and insert a period

Page 5, delete lines 1 to 3

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. 2549, A bill for an act relating to elections; prohibiting public employers other than the state from requiring employees to take leave of absence upon becoming a candidate for elective office; proposing coding for new law in Minnesota Statutes, chapter 179A.

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. 2587, A bill for an act relating to motor carriers; providing for deregulation of motor carriers of property; amending Minnesota Statutes 1994, sections 221.011, subdivision 15, and by adding a subdivision; proposing coding for new law in Minnesota Statutes, chapter 221.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 1994, section 221.011, subdivision 15, is amended to read:

Subd. 15. [MOTOR CARRIER.] "Motor carrier" means a carrier operating for hire under the authority of this chapter and subject to the rules and orders of the commissioner and or the board.

Sec. 2. Minnesota Statutes 1994, section 221.011, is amended by adding a subdivision to read:

Subd. 47. [MOTOR CARRIER OF PROPERTY.] "Motor carrier of property" means a motor carrier engaged in the for-hire transportation of property, other than household goods, in Minnesota who has filed a registration statement with the commissioner.

Sec. 3. [221.0251] [CARRIER REGISTRATION.]

Subdivision 1. [REGISTRATION STATEMENT.] A person who wishes to operate as a motor carrier shall file a complete and accurate registration statement with the commissioner. A registration statement must be on a form provided by the commissioner and include:

(1) the registrant's name, including an assumed or fictitious name used by the registrant in doing business;

(2) the registrant's mailing address and business telephone number;

(3) the registrant's federal Employer Identification Number and Minnesota Business Identification Number and the identification numbers, if any, assigned to the registrant by the United States Department of Transportation, Interstate Commerce Commission, or Environmental Protection Agency;

(4) the name, title, and telephone number of the individual who is principally responsible for the operation of the registrant's transportation business;

(5) the principal location from which the registrant conducts its transportation business and where the records required by this chapter will be kept;

(6) if different from clause (5), the location in Minnesota where the records required by this chapter will be available for inspection and copying by the commissioner;

(7) whether the registrant transports hazardous materials or hazardous waste;

(8) whether the registrant's business is a corporation, partnership, limited liability partnership, limited liability company, or sole proprietorship; and

(9) if the registrant is a foreign corporation authorized to transact business in Minnesota, the state of incorporation and the name and address of its registered agent.

Subd. 2. [SIGNATURE REQUIRED.] A registration statement may be signed only by a corporate officer, general partner, limited liability company board member, or sole proprietor. A signature must be notarized.

Subd. 3. [CERTIFICATE OF REGISTRATION; ISSUANCE; LOCATION.] (a) The commissioner shall issue a certificate of registration to a registrant who has filed a registration statement that complies with subdivisions 1 and 2 and paid the required fee, has a satisfactory safety rating and, if applicable, has complied with the financial responsibility requirements in section 221.141. The commissioner may not issue a certificate of registration to a registrant who has an unsatisfactory safety rating.

(b) A certificate of registration must be numbered and bear an effective date.

(c) A certificate of registration must be kept at the registrant's principal place of business.

Subd. 4. [DURATION.] A certificate of registration is not assignable or transferable and is valid until it is suspended, revoked, or canceled.

Subd. 5. [OBLIGATION TO KEEP INFORMATION CURRENT.] A registrant shall notify the commissioner in writing of any change in the information described in subdivision 1.

Sec. 4. [221.026] [MOTOR CARRIERS OF PROPERTY; EXEMPTIONS.]

Subdivision 1. [REGISTRATION.] No person may engage in the for-hire transportation of property, other than household goods, in Minnesota unless the person has filed a registration statement with the commissioner on a form the commissioner prescribes.

Subd. 2. [EXEMPTIONS FROM REQUIREMENTS.] Notwithstanding any other law, a motor carrier of property is exempt from sections 221.021; 221.041; 221.061; 221.071; 221.072; 221.081; 221.121; 221.122; 221.123; 221.131; 221.132; 221.151; 221.161; 221.172, subdivisions 3 to 8; 221.185, except as provided in subdivision 4; and 221.296. The exemptions in this subdivision do not apply to a motor carrier of property while transporting household goods.

Subd. 3. [SAFETY REGULATIONS.] A motor carrier of property is subject to those federal regulations incorporated by reference in section 221.0314, unless exempted from those regulations by section 221.031.

Subd. 4. [SUSPENSION AND CANCELLATION OF REGISTRATION.] The commissioner shall suspend or cancel, following the procedures for suspension or cancellation in section 221.185, the registration of a motor carrier of property who fails to file with the commissioner or maintain the insurance or bond required under section 221.141. A person may not engage in the for-hire transportation of property, other than household goods, in Minnesota while the person's registration is under suspension or cancellation under this subdivision.

Subd. 5. [LOCAL REGULATION.] Section 221.091 applies to registration statements under this section to the same extent that it applies to certificates and permits issued by the board.

Sec. 5. [221.0269] [RELIEF FROM SAFETY REGULATIONS.]

Subdivision 1. [GOVERNOR MAY GRANT RELIEF.] The governor may declare an emergency and grant relief from any of the regulations incorporated in section 221.0314 to carriers and drivers operating motor vehicles in Minnesota to provide emergency relief during the emergency. The relief granted may not exceed the duration of the motor carrier's or driver's direct assistance in providing emergency relief, or 30 days from the date of the initial declaration of the emergency, whichever is less.

Subd. 2. [EXTENSION OF RELIEF.] On request of a carrier or driver, the commissioner may extend the 30-day relief period in subdivision 1. A request for extension must be in writing and must give a detailed explanation of the reasons for requesting additional relief. The commissioner shall consider the severity of the ongoing emergency and the nature of the relief services to be provided by the motor carrier or driver in determining whether to grant an extension. If the commissioner decides to grant an extension, the extension must include a new time limit and may include any restrictions on the carrier or driver the commissioner considers necessary.

Subd. 3. [TERMINATION OF RELIEF EFFORTS.] (a) Upon termination of direct assistance to an emergency relief effort, a carrier or driver is subject to the requirements of section 221.0314, except that a driver may return empty to a carrier's terminal or the driver's normal work reporting location without complying with that section. A driver who informs the carrier that the driver needs immediate rest must be permitted at least eight consecutive hours off duty before the driver is required to return to the terminal or location. Having returned to the terminal or other location, the driver must be relieved of all duty and responsibilities.

(b) When a driver has been relieved of all duty and responsibilities upon termination of direct assistance to an emergency relief effort, no carrier shall permit or require any driver used by it to drive nor shall any such driver drive in commerce until the driver:

(1) has met the requirements of Code of Federal Regulations, title 49, section 395.3, paragraph (a); and

(2) has had at least 24 consecutive hours off duty if (i) the driver has been on duty for more than 60 hours in any seven consecutive days at the time the driver is relieved of all duty if the employing carrier does not operate every day in the week, or (ii) the driver has been on duty for more than 70 hours in any eight consecutive days at the time the driver is relieved of all duty if the employing carrier operates every day in the week.

(c) For purposes of this section, direct assistance to an emergency relief effort terminates when a driver or commercial motor vehicle is used to transport cargo not destined for the emergency relief effort, or when the carrier dispatches that driver or vehicle to another location to begin operations in commerce.

Sec. 6. Minnesota Statutes 1994, section 221.031, is amended by adding a subdivision to read:

Subd. 10. [CONTROLLED SUBSTANCES AND ALCOHOL USE AND TESTING EXEMPTION.] A person who is required to comply with the alcohol and controlled substances testing requirements of Code of Federal Regulations, title 49, parts 382, 653, and 654, is exempt from sections 181.950 to 181.957 if the testing also complies with the procedures for transportation workplace drug and alcohol testing programs in Code of Federal Regulations, title 49, part 40.

Sec. 7. Minnesota Statutes 1994, section 221.605, subdivision 1, is amended to read:

Subdivision 1. [FEDERAL REGULATIONS.] (a) Interstate carriers and private carriers engaged in interstate commerce shall comply with the federal motor carrier safety regulations, Code of Federal Regulations, title 49, parts 390 to 398; with Code of Federal Regulations, title 49, part 40; and with the rules of the commissioner concerning inspections, vehicle and driver out-of-service restrictions and requirements, and vehicle, driver, and equipment checklists. For purposes of regulating commercial motor vehicles as defined in section 169.781, subdivision 1, the exemption provided in Code of Federal Regulations, title 49, section 396.11, paragraph (d), applies in Minnesota only to driveaway-towaway operations.

(b) An interstate carrier or private carrier engaged in interstate commerce who complies with federal regulations governing testing for controlled substances and alcohol is exempt from the requirements of sections 181.950 to 181.957 unless the carrier's drug testing program provides for testing for controlled substances in addition to those listed in Code of Federal Regulations, title 49, section 40.21, paragraph (a), or for alcohol. Persons subject to this section may test for drugs, in addition to those listed in Code of Federal Regulations, title 49, section 40.21, paragraph (a), or for alcohol, only in accordance with sections 181.950 to 181.957 and rules adopted under those sections.

Sec. 8. [CONVERSION OF PERMITS.]

The holder of a valid class I or petroleum carrier certificate, a class II, class II-T, class II-L, livestock carrier, contract carrier, courier services carrier, local cartage carrier, temperature-controlled commodities or armored carrier permit, or a hazardous materials carrier who is registered under Minnesota Statutes, section 221.0355, on the effective date of this section, is deemed to have complied with section 2. The commissioner shall issue a certificate of registration to any such certificate or permit holder or registered hazardous materials carrier. Upon the commissioner's issuance of a certificate of registration, the existing certificates or permits held become null and void.

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 motor carriers; providing for deregulation of motor carriers of property; establishing a carrier registration system; allowing relief from safety regulations during declared emergency; creating exemptions from certain workplace drug and alcohol testing; requiring alcohol testing; amending Minnesota Statutes 1994, sections 221.011, subdivision 15, and by adding a subdivision; 221.031, by adding a subdivision; and 221.605, subdivision 1; proposing coding for new law in Minnesota Statutes, chapter 221."

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. 2590, A bill for an act relating to liquor; modifying eligibility for liquor manufacturer and wholesaler licenses; allowing persons holding either the proper license or permit to charge for possession; exempting certain types of wine tastings from authorized testings; amending Minnesota Statutes 1994, sections 340A.301, subdivision 2; and 340A.418, subdivision 2; Minnesota Statutes 1995 Supplement, section 340A.401.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 1994, section 340A.301, subdivision 2, is amended to read:

Subd. 2. [PERSONS ELIGIBLE.] Licenses under this section may be issued only to a person who:

(1) is a citizen of the United States or a resident alien;

(2) is of good moral character and repute;

(3) (2) is 21 years of age or older;

(4) (3) has not had a license issued under this chapter revoked within five years of the date of license application, or to any person who at the time of the violation owns any interest, whether as a holder of more than five percent of the capital stock of a corporation licensee, as a partner or otherwise, in the premises or in the business conducted thereon, or to a corporation, partnership, association, enterprise, business, or firm in which any such person is in any manner interested; and

(5) (4) has not been convicted within five years of the date of license application of a felony, or of a willful violation of a federal or state law, or local ordinance governing the manufacture, sale, distribution, or possession for sale or distribution of alcoholic beverages.

Sec. 2. Minnesota Statutes 1995 Supplement, section 340A.401, is amended to read:

340A.401 [LICENSE REQUIRED.]

Except as provided in this chapter, no person may directly or indirectly, on any pretense or by any device, sell, barter, keep for sale, charge for possession, or otherwise dispose of alcoholic beverages as part of a commercial transaction without having obtained a the required license or permit.

Sec. 3. [340A.4011] [BED AND BREAKFAST FACILITIES; WHEN LICENSE NOT REQUIRED.]

Subdivision 1. [DEFINITION.] For purposes of this section "bed and breakfast facility" means a place of lodging that (1) provides not more than eight rooms for rent to no more than 20 guests at a time, (2) is the owner's personal residence and is occupied by the owner at the time of rental, (3) provides no meals, other than breakfast served to persons who rent rooms, and (4) was originally built and occupied as, or was converted to, a single-family residence prior to being used as a place of lodging.

Subd. 2. [LICENSE NOT REQUIRED.] (a) Notwithstanding section 340A.401, no license under this chapter is required for a bed and breakfast facility to provide at no additional charge to a person renting a room at the facility not more than two glasses per day each containing not more than four fluid ounces of wine. Wine so furnished may be consumed only on the premises of the bed and breakfast facility.

(b) A bed and breakfast facility may furnish wine under paragraph (a) only if the facility is registered with the commissioner. Application for such registration must be on a form the commissioner provides. The commissioner may revoke registration under this paragraph for any violation of this chapter or a rule adopted under this chapter.

Sec. 4. Minnesota Statutes 1994, section 340A.404, subdivision 8, is amended to read:

Subd. 8. [LAKE SUPERIOR, ST. CROIX RIVER, AND MISSISSIPPI RIVER TOUR BOATS.] (a) The commissioner may issue an on-sale intoxicating liquor license to a person regularly engaged, on an annual or seasonal basis, in the business of offering tours by boat on Lake Superior and adjacent bays, the St. Croix river, and the Mississippi river. The license shall authorize the sale of intoxicating liquor between May 1 and October 1 for consumption on the boat while underway or attached to a dock or other mooring. No license may be issued unless each boat used in the tour business regularly sells meals in the place where intoxicating liquor is sold.

(b) All sales of intoxicating liquor made on a boat while it is attached to a dock or other mooring are subject to any restrictions on the sale of liquor prescribed by the governing body of the city where the boat is attached, or of a county when it is attached outside a city. A governing body may prohibit liquor sales within its jurisdiction but may not require an additional license, or require a fee or occupation tax, for the sales.

(c) If a boat is moored for a period of at least three consecutive months, the city may require the boat to obtain an on-sale intoxicating liquor license from the city, and the fee charged for the license must not exceed one-half the fee charged for a comparable annual on-sale intoxicating liquor license.

Sec. 5. Minnesota Statutes 1994, section 340A.408, subdivision 2, is amended to read:

Subd. 2. [INTOXICATING LIQUOR; ON-SALE.] (a) The license fee for a retail on-sale intoxicating liquor license is the fee set by the city or county issuing the license subject to the limitations imposed under this subdivision. The license fee is intended to cover the costs of (1) issuing and inspecting and other directly related costs of enforcement the license, (2) conducting an annual inspection of the licensed premises, and (3) investigating alleged violations of law or rule at the licensed premises where a reasonable belief of a violation exists.

(b) The annual license fee for an on-sale intoxicating liquor license issued by a municipality to a club must be no greater than:

(1) $300 for a club with under 200 members;

(2) $500 for a club with between 201 and 500 members;

(3) $650 for a club with between 501 and 1,000 members;

(4) $800 for a club with between 1,001 and 2,000 members;

(5) $1,000 for a club with between 2,001 and 4,000 members;

(6) $2,000 for a club with between 4,001 and 6,000 members; or

(7) $3,000 for a club with over 6,000 members.

(c) The license fee for the issuance of a wine license may not exceed one-half of the license fee charged for an on-sale intoxicating liquor license, or $2,000, whichever is less.

(d) The town board of a town in which an on-sale establishment has been licensed by a county may impose an additional license fee on each such establishment in an amount not to exceed 20 percent of the county license fee.

Sec. 6. Minnesota Statutes 1994, section 340A.408, subdivision 4, is amended to read:

Subd. 4. [LAKE SUPERIOR, ST. CROIX RIVER, AND MISSISSIPPI RIVER TOUR BOATS; COMMON CARRIERS.] (a) The annual license fee for licensing of Lake Superior, St. Croix river, and Mississippi river tour boats under section 340A.404, subdivision 8, shall be $1,000. The commissioner shall transmit one-half of this fee to the governing body of the city that is the home port of the tour boat, or to the county in which the home port is located if the home port is outside a city.

(b) The annual license fee for common carriers licensed under section 340A.407 is:

(1) $50 for 3.2 percent malt liquor, and $20 for a duplicate license; and

(2) $200 for intoxicating liquor, and $20 for a duplicate license.

Sec. 7. Minnesota Statutes 1994, section 340A.410, is amended by adding a subdivision to read:

Subd. 4b. [NOTICE POSTING.] (a) A premises licensed for the retail sale of alcoholic beverages and a municipal liquor store must post and maintain in a conspicuous place within the licensed premises clearly visible to consumers: one sign 14-1/2 inches wide by 8 inches high as designed by the commissioners of health and public safety, which incorporates the following information: (1) the penalties of driving while under the influence of alcohol; (2) penalties for serving alcoholic beverages to a person who is obviously intoxicated or under 21 years of age; and (3) a warning statement regarding drinking alcohol while pregnant.

(b) The commissioners of health and public safety shall design a sign that complies with this subdivision and shall make the sign available for reproduction. A retail licensee or municipal liquor store may not modify the sign design, but may modify the color.

Sec. 8. Minnesota Statutes 1994, section 340A.411, subdivision 1, is amended to read:

Subdivision 1. [ON-SALE LICENSES.] On-sale nonintoxicating 3.2 percent malt liquor licenses may only be issued to drugstores, restaurants, hotels, clubs, bowling centers, and establishments used exclusively for the sale of 3.2 percent malt liquor with the incidental sale of tobacco and soft drinks.

Sec. 9. Minnesota Statutes 1994, section 340A.411, is amended by adding a subdivision to read:

Subd. 3. [TERMINOLOGY.] A political subdivision may not issue a 3.2 percent malt liquor license that includes the term "nonintoxicating liquor."

Sec. 10. Minnesota Statutes 1994, section 340A.413, subdivision 4, is amended to read:

Subd. 4. [EXCLUSIONS FROM LICENSE LIMITS.] On-sale intoxicating liquor licenses may be issued to the following entities by a city, in addition to the number authorized by this section:

(1) clubs, or congressionally chartered veterans organizations;

(2) restaurants located at a racetrack licensed under chapter 240;

(3) establishments that are issued licenses to sell wine under section 340A.404, subdivision 5; and

(4) Lake Superior tour boats that are issued licenses under section 340A.404, subdivision 8; and

(5) theaters that are issued licenses under section 340A.404, subdivision 2.

Sec. 11. Minnesota Statutes 1994, section 340A.418, subdivision 2, is amended to read:

Subd. 2. [TASTINGS AUTHORIZED.] (a) A charitable, religious, or other nonprofit organization may conduct a wine tasting on premises the organization owns or leases or has use donated to it, or on the licensed premises of a holder of an on-sale intoxicating liquor license that is not a temporary license, if the organization holds a temporary on-sale intoxicating liquor license under section 340A.404, subdivision 10, and complies with this section. An organization holding a temporary license may be assisted in conducting the wine tasting by another nonprofit organization.

(b) An organization that conducts a wine tasting under this section may use the net proceeds from the wine tasting only for:

(1) the organization's primary nonprofit purpose; or

(2) donation to another nonprofit organization assisting in the wine tasting, if the other nonprofit organization uses the donation only for that organization's primary nonprofit purpose.

(c) No wine at a wine tasting under this section may be sold, or orders taken, for off-premise off-premises consumption.

(d) Notwithstanding any other law, an organization may purchase or otherwise obtain wine for a wine tasting conducted under this section from a wholesaler licensed to sell wine, and the wholesaler may sell or give wine to an organization for a wine tasting conducted under this section and may provide personnel to assist in the wine tasting. A wholesaler who sells or gives wine to an organization for a wine tasting under this section must deliver the wine directly to the location where the wine tasting is conducted.

(e) This section does not prohibit or restrict a wine tasting that is:

(1) located on on-sale premises where no charitable organization is participating; or

(2) located on on-sale premises where the proceeds are for a designated charity but where the tasting is primarily for educational purposes.

Sec. 12. Minnesota Statutes 1994, section 340A.510, is amended to read:

340A.510 [SAMPLES.]

Subdivision 1. [SAMPLES AUTHORIZED.] Off-sale licenses and municipal liquor stores may provide samples of malt liquor, wine, liqueurs, and cordials, and distilled spirits which the licensee or municipal liquor store currently has in stock and is offering for sale to the general public without obtaining an additional license, provided the wine, liqueur, and cordial samples are dispensed at no charge and consumed on the licensed premises during the permitted hours of off-sale in a quantity less than 100 milliliters of malt liquor per variety per customer, 50 milliliters of wine per variety per customer and, 25 milliliters of liqueur or cordial, and 15 milliliters of distilled spirits per variety per customer.

Subd. 2. [MALT LIQUOR FURNISHED FOR SAMPLING.] (a) Notwithstanding section 340A.308, with respect only to sampling authorized under subdivision 1, a brewer may furnish at no cost to an off-sale retailer malt liquor the brewer manufactures if:

(1) the malt liquor is dispensed by the retailer only for tastings authorized under subdivision 1;

(2) the retailer makes available for return to the brewer any unused malt liquor and empty containers;

(3) the samples are dispensed by an employee of the retailer, or by a sampling service retained by the retailer and not affiliated directly or indirectly with a brewer or malt liquor wholesaler;

(4) the brewer furnishes not more than three cases of malt liquor to the retailer for each sampling;

(5) each sampling continues for not more than eight hours;

(6) the brewer has furnished malt liquor for not more than five samplings for any retailer in any calendar year;

(7) the brewer delivers the malt liquor for the sampling to its exclusive wholesaler for that malt liquor;

(8) the brewer has at least seven days before the sampling filed with the commissioner, on a form the commissioner prescribes, written notice of intent to furnish malt liquor for the sampling, which contains (i) the name and address of the retailer conducting the sampling, (ii) the amount of malt liquor being furnished by the brewer, (iii) the number of times the brewer has furnished malt liquor to the retailer in the calendar year in which the notice is filed, (iv) the date and time of the sampling, (v) the exclusive wholesaler to whom the brewer will deliver the malt liquor, and (vi) a statement by the brewer to the effect that to the brewer's knowledge all requirements of this section have been or will be complied with; and

(9) the commissioner has not notified the brewer filing the notice under clause (8) that the commissioner disapproves the notice.

(b) For purposes of this subdivision "retailer" means a licensed off-sale retailer of alcoholic beverages and a municipal liquor store that sells at off-sale.

Sec. 13. [340A.511] [CERTAIN SIZES MAY BE SOLD.]

Notwithstanding any rule of the commissioner of public safety, an off-sale retailer of intoxicating liquor may sell distilled spirits in bottles of 50 milliliters.

Sec. 14. [340A.512] [CONTAINERS BROUGHT INTO PREMISES.]

A licensed retailer of alcoholic beverages may prohibit any person from bringing into the licensed premises any container of alcoholic beverages, or from consuming from such a container on the licensed premises, without the licensee's permission.

Sec. 15. Minnesota Statutes 1994, section 340A.601, subdivision 1, is amended to read:

Subdivision 1. [AUTHORITY.] A city having a population of not more than 10,000 may establish, own, and operate a municipal liquor store which may sell at retail intoxicating liquor, 3.2 percent malt liquor, tobacco products, ice, soft drinks, beverages for mixing intoxicating liquor, and food for consumption on the premises alcoholic beverages and

(1) in the case of a municipal liquor store that sells at off-sale only, all items that may lawfully be sold in an exclusive liquor store under section 340A.412, subdivision 14, or (2) in the case of a municipal liquor store that sells at on-sale only, or at on- and off-sale, any item that may lawfully be sold in an establishment with an on-sale intoxicating liquor license. A municipal liquor store may also offer recorded or live entertainment and make available coin-operated amusement devices.

Sec. 16. [WEST ST. PAUL; LICENSES AUTHORIZED.]

Notwithstanding any other law, the city of West St. Paul may issue not more than 18 on-sale intoxicating liquor licenses. All provisions of Minnesota Statutes, chapter 340A, not inconsistent with this section, apply to the licenses authorized by this section.

Sec. 17. [WADENA; SEASONAL LICENSES.]

Notwithstanding any other law, the city of Wadena may issue one seasonal on-sale intoxicating liquor license in addition to the number of on-sale intoxicating liquor licenses authorized by law. The license authorized by this section is valid for a period to be determined by the city, not to exceed nine months. Not more than one license may be issued under this section for any one premise during any consecutive 12-month period. All provisions of Minnesota Statutes, chapter 340A, not inconsistent with this section, apply to the license authorized by this section.

Sec. 18. [EAGAN; LICENSES AUTHORIZED.]

Notwithstanding any other law, the city of Eagan may issue not more than 26 on-sale intoxicating liquor licenses. All provisions of Minnesota Statutes, chapter 340A, not inconsistent with this section, apply to the licenses authorized by this section.

Sec. 19. [REPEALER.]

Minnesota Statutes 1994, sections 144.3871; and 340A.410, subdivision 4a, are repealed. Laws 1974, chapter 452, is repealed.

Sec. 20. [INSTRUCTION TO REVISOR.]

The revisor of statutes shall change the words "nonintoxicating liquor" to "3.2 percent malt liquor" wherever they appear in Minnesota Statutes and Minnesota Rules.

Sec. 21. [EFFECTIVE DATE.]

Sections 3, 12, 13, 14, and 15 are effective the day following final enactment. Section 5 is effective June 1, 1996. Section 16 is effective on approval by the West St. Paul city council and compliance with Minnesota Statutes, section 645.021. Section 17 is effective on approval by the Wadena city council and compliance with Minnesota Statutes, section 645.021. Section 18 is effective on approval by the Eagan city council and compliance with Minnesota Statutes, section 645.021."

Delete the title and insert:

"A bill for an act relating to alcoholic beverages; modifying eligibility for manufacturer and wholesaler licenses; clarifying requirements for selling or furnishing alcoholic beverages; allowing bed and breakfast facilities to furnish wine to guests without a license under certain circumstances; regulating on-sale intoxicating liquor license fees; exempting certain types of wine tastings from statutory restrictions; allowing off-sale retailers to offer samples of distilled spirits; allowing brewers to furnish beer directly to retailers for tastings; allowing off-sale retailers to sell distilled spirits in 50 milliliter bottles; allowing on-sale retailers to prohibit the carrying of alcoholic beverages onto the licensed premises; specifying items that may be sold in municipal liquor stores; removing references to nonintoxicating malt liquor from statute, rules, and local licenses; authorizing on-sale licenses for tour boats on the St. Croix and Mississippi rivers; requiring establishments selling alcoholic beverages to post certain signs; directing commissioners of public safety and health to design the signs; providing for division of tour boat license fees; authorizing additional on-sale licenses in West St. Paul and Eagan; authorizing seasonal on-sale license in Wadena; repealing special law restricting on-sale licenses in Thief River Falls; amending Minnesota Statutes 1994, sections 340A.301, subdivision 2; 340A.404, subdivision 8; 340A.408, subdivisions 2 and 4; 340A.410, by adding a subdivision; 340A.411, subdivision 1, and by adding a subdivision; 340A.413, subdivision 4; 340A.418, subdivision 2; 340A.510; and

340A.601, subdivision 1; Minnesota Statutes 1995 Supplement, section 340A.401; proposing coding for new law in Minnesota Statutes, chapter 340A; repealing Minnesota Statutes 1994, sections 144.3871; and 340A.410, subdivision 4a; Laws 1974, chapter 452."

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. 2604, A bill for an act relating to courts; authorizing a judge who has resigned in good standing to be appointed to serve as a judge of any court; providing that the fee for the examination to be admitted to practice law be set by the supreme court; amending Minnesota Statutes 1994, section 2.724, by adding a subdivision; Minnesota Statutes 1995 Supplement, section 481.01.

Reported the same back with the following amendments:

Page 1, line 12, delete "RECALLED" and insert "FORMER"

Page 1, line 15, delete "recalled" and insert "former"

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

The report was adopted.

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

H. F. No. 2609, A bill for an act relating to human services; creating a new intensive employment program for recipients of assistance; proposing coding for new law in Minnesota Statutes, chapter 256.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

Section 1. [LEGISLATIVE POLICY.]

Subdivision 1. [LEGISLATIVE FINDINGS.] The legislature recognizes that:

(1) changes in federal law and federal funding necessitate changes to Minnesota's public assistance programs;

(2) Minnesota is in the process of testing and evaluating the Minnesota family investment plan, a program that will change public assistance programs in Minnesota; and

(3) the Minnesota family investment plan embodies the principles that should guide Minnesota in implementing changes necessitated by federal law and federal funding.

Subd. 2. [WELFARE REFORM PROPOSAL.] (a) The commissioner shall present the 1997 legislature with a proposal to modify the Minnesota family investment plan for statewide implementation. The proposed program must be designed around the following goals:

(1) to support work;

(2) to foster personal responsibility;

(3) to support the family;

(4) to simplify the welfare system;

(5) to prevent dependency; and

(6) to enable families to achieve sustained self-sufficiency.

(b) The proposed program shall provide assistance to all families with minor children and individuals who meet program eligibility rules and comply with program requirements and may set limits on the number of years or months of assistance.

(c) In designing the proposal, the commissioner shall consider:

(1) evaluation results from the Minnesota family investment plan; and

(2) program and fiscal analysis of the impact of federal laws, including proposals to simplify or block grant the food stamp program.

(d) The commissioner shall consider the following additional policy options in developing the proposal:

(1) consolidate all income assistance programs into a single program;

(2) integrate the food stamp program more closely with income assistance program;

(3) provide disregards of earned income that are not time limited;

(4) contingent on inclusion of clause (3), provide an initial period of assistance, not to exceed six months, after which the grant standard for all assistance units would be reduced. After this initial period:

(i) assistance units in which all adults are incapacitated, as defined by the commissioner, would receive a supplement that raises the unit's grant standard back to the standard of the initial period;

(ii) assistance units not included in item (i) could earn back a portion of the grant reduction by participating in employment and training services; and

(iii) for assistance units not included in item (i), earnings equal to the grant reduction would be entirely disregarded in determining benefits;

(5) pay child support directly to custodial parents receiving income assistance and budget all or part of the child support amount against the income assistance benefit;

(6) address the question of providing assistance to Minnesota residents who are legal noncitizens;

(7) divert applicants from using public assistance through early intervention focused on meeting immediate needs; and

(8) implement an outcome-based quality assurance program that measures the effectiveness of transitional support services by defining target groups, program goals, outcome indicators, data collection methods, and performance targets.

Sec. 2. [FEDERAL WELFARE REFORM.]

If the 104th Congress makes significant policy or funding changes that affect income assistance, the commissioner of human services shall develop recommendations for the legislature which would address these changes.

Section 1. Minnesota Statutes 1994, section 256.031, is amended by adding a subdivision to read:

Subd. 1a. [USE OF FEDERAL AUTHORITY.] The federal authority cited in sections 256.031 to 256.0361 and 256.047 means United States Code, title 42, sections 601 and 602; section 402 of the federal Social Security Act; and Code of Federal Regulations, title 45, as constructed on the day prior to their federal repeal.

Sec. 2. Minnesota Statutes 1994, section 256.033, is amended by adding a subdivision to read:

Subd. 6. [RECOVERY OF ATM OVERPAYMENTS.] For recipients receiving benefits via electronic benefit transfer, if the recipient is overpaid as a result of an automated teller machine (ATM) dispensing funds in error to the recipient, the agency may recover the overpayment by immediately withdrawing funds from the recipient's electronic benefit transfer account, up to the amount of the overpayment.

Sec. 3. Minnesota Statutes 1994, section 256.034, is amended by adding a subdivision to read:

Subd. 6. [PAYMENT METHODS.] Minnesota family investment plan grant payments may be issued in the form of warrants immediately redeemable in cash, electronic benefits transfer, or by direct deposit into the recipient's account in a financial institution.

Sec. 4. Minnesota Statutes 1994, section 256.035, subdivision 1, is amended to read:

Subdivision 1. [EXPECTATIONS.] All families eligible for assistance under the family investment plan who are assigned to a test group in the evaluation as provided in section 256.031, subdivision 3, paragraph (d), are expected to be in transitional status as defined in section 256.032, subdivision 12. To be considered in transitional status, families must meet the following expectations:

(a) For a family headed by a single adult parental caregiver, the expectation is that the parental caregiver will independently pursue self-sufficiency until the family has received assistance for 24 months within the preceding 36 months. Beginning with the 25th month of assistance, the parent must be developing or complying with the terms of the family support agreement.

(b) For a family with a minor parental caregiver or a family whose parental caregiver is 18 or 19 years of age and does not have a high school diploma or its equivalent, the expectation is that, concurrent with the receipt of assistance, the parental caregiver must be developing or complying with a family support agreement. The terms of the family support agreement must include compliance with section 256.736, subdivision 3b. However, if the assistance unit does not comply with section 256.736, subdivision 3b, the sanctions in subdivision 3 apply.

(c) For a family with two adult parental caregivers, the expectation is that at least one parent will independently pursue self-sufficiency until the family has received assistance for six months within the preceding 12 months. Beginning with the seventh month of assistance, one parent must be developing or complying with the terms of the family support agreement. To the extent of available resources, the commissioner may require that both caregivers in a family with two adult parental caregivers, in which the youngest child has attained the age of six and is not in kindergarten, must be developing or complying with the terms of a family support agreement by the seventh month on assistance.

Sec. 5. Minnesota Statutes 1994, section 256.035, subdivision 6a, is amended to read:

Subd. 6a. [CASE MANAGEMENT SERVICES.] (a) The county agency will provide case management services to caregivers required to develop and comply with a family support agreement as provided in subdivision 1. For minor parents, the responsibility of the case manager shall be as defined in section 256.736, subdivision 3b. Sanctions for failing to develop or comply with the terms of a family support agreement shall be imposed according to subdivision 3. When a minor parent reaches age 17, or earlier if determined necessary by the social service agency, the minor parent shall be referred for case management services.

(b) Case managers shall provide the following services:

(1) the case manager shall provide or arrange for an assessment of the family and caregiver's needs, interests, and abilities according to section 256.736, subdivision 11, paragraph (a), clause (1);

(2) the case manager shall coordinate services according to section 256.736, subdivision 11, paragraph (a), clause (3);

(3) the case manager shall develop an employability plan according to subdivision 6b;

(4) the case manager shall develop a family support agreement according to subdivision 6c; and

(5) the case manager shall monitor the caregiver's compliance with the employability plan and the family support agreement as required by the commissioner.

(c) Case management counseling and personal assistance services may continue for up to six months following the caregiver's achievement of employment goals. Funds for specific employment and training services may be expended for up to 90 days after the caregiver loses eligibility for financial assistance.

Sec. 6. Minnesota Statutes 1995 Supplement, section 256.0475, is amended by adding a subdivision to read:

Subd. 2a. [INTENSIVE ESL.] "Intensive ESL" means an English as a second language program that offers at least 20 hours of class per week.

Sec. 7. Minnesota Statutes 1995 Supplement, section 256.048, subdivision 1, is amended to read:

Subdivision 1. [EXPECTATIONS.] The requirement for a caregiver to develop a family support agreement is tied to the structure of the family and the length of time on assistance according to paragraphs (a) to (c).

(a) In a family headed by a single adult parental caregiver who has received AFDC, family general assistance, MFIP, or a combination of AFDC, family general assistance, and MFIP assistance for 12 or more months within the preceding 24 months, the parental caregiver must be developing and complying with the terms of the family support agreement commencing with the 13th month of assistance.

(b) For a family with a minor parental caregiver or a family whose parental caregiver is 18 or 19 years of age and does not have a high school diploma or its equivalent, the parental caregiver must be developing and complying with a family support agreement concurrent with the receipt of assistance. The terms of the family support agreement must include compliance with section 256.736, subdivision 3b. If the parental caregiver fails to comply with the terms of the family support agreement, the sanctions in subdivision 4 apply. When the requirements in section 256.736, subdivision 3b, have been met, a caregiver has fulfilled the caregiver's obligation. County agencies must continue to offer MFIP-R services if the caregiver wants to continue with an employability plan. Caregivers who fulfill the requirements of section 256.736, subdivision 3b, are subject to the expectations of paragraphs (a) and (c).

(c) In a family with two adult parental caregivers, at least one of whom has received AFDC, family general assistance, MFIP, or a combination of AFDC, family general assistance, and MFIP assistance for six or more months within the preceding 12 months, one parental caregiver must be developing and complying with the terms of the family support agreement commencing with the seventh month of assistance. The family and MFIP-R staff will designate the parental caregiver who will develop the family support agreement based on which parent has the greater potential to increase family income through immediate employment. To the extent of available resources, the commissioner may require that both caregivers in a family with two adult parental caregivers, in which the youngest child has attained the age of six and is not in kindergarten, must be developing or complying with the terms of a family support agreement by the seventh month on assistance.

Sec. 8. Minnesota Statutes 1995 Supplement, section 256.048, subdivision 6, is amended to read:

Subd. 6. [PRE-EMPLOYMENT AND EMPLOYMENT SERVICES.] The county agency must provide services identified in clauses (1) to (10). Services include:

(1) a required briefing for all nonmandatory caregivers assigned to MFIP-R, which includes a review of the information presented at an earlier MFIP-R orientation pursuant to subdivision 5, and an overview of services available under MFIP-R pre-employment and employment services, an overview of job search techniques, and the opportunity to volunteer for MFIP-R job search activities and basic education services;

(2) a briefing for all mandatory caregivers assigned to MFIP-R, which includes a review of the information presented at an earlier MFIP-R orientation pursuant to subdivision 5, and an overview of services available under MFIP-R pre-employment and employment services;

(3) an MFIP assessment that meets the requirements of section 256.736, subdivision 10, paragraph (a), clause (14), and addresses caregivers' skills, abilities, interests, and needs;

(4) development, together with the caregiver, of an employability plan and family support agreement according to subdivision 7;

(5) coordination of services including child care, transportation, education assistance, and social services necessary to enable caregivers to fulfill the terms of the employability plan and family support agreement;

(6) provision of full-time English as a second language (intensive ESL) classes;

(7) provision of a broad range of employment and pre-employment services including basic skills testing, interest and aptitude testing, career exploration, job search activities, community work experience program under section 256.737, or on-the-job training under section 256.738;

(8) evaluation of the caregiver's compliance with the employability plan and family support agreement and support and recognition of progress toward employment goals;

(9) provision of postemployment follow-up for up to six months after caregivers become exempt or exit MFIP-R due to employment if requested by the caregiver; and

(10) approval of education and training program activities.

Sec. 9. Minnesota Statutes 1995 Supplement, section 256.048, subdivision 13, is amended to read:

Subd. 13. [EDUCATION AND TRAINING ACTIVITIES; BASIC EDUCATION.] Basic education, including adult basic education, high school or general equivalency diploma, or ESL may be included in the family support agreement when a caregiver is actively participating in job search activities as specified in the family support agreement, or employed at least 12 hours per week. The concurrent work requirement for basic education does not apply to caregivers under subdivision 1, paragraph (b), who are attending secondary school full time. Six months of basic education activities may be included in the family support agreement, and extension of basic education activities, including intensive ESL, is contingent upon review and approval by MFIP-R staff.

Non-English-speaking caregivers have the option to participate in full-time intensive ESL activities for up to six months prior to participation in job search with approval of MFIP-R staff, provided the caregiver also works or participates in job search. For caregivers participating in intensive ESL, hours spent in intensive ESL, employment, and job search must equal at least 30 hours per week, or 20 hours per week for a single parent caregiver with a child under age six.

Sec. 10. Minnesota Statutes 1994, section 256.73, subdivision 1, is amended to read:

Subdivision 1. [DEPENDENT CHILDREN.] Assistance shall be given under sections 256.72 to 256.87 to or on behalf of any dependent child who:

(1) Resides Has resided in Minnesota for at least 30 days or, if residing in the state for less than 30 days, the child or the child's caretaker relative meets one of the criteria specified in subdivision 1a;

(2) Is otherwise eligible; the child shall not be denied aid because of conditions of the home in which the child resides.

Sec. 11. Minnesota Statutes 1994, section 256.73, is amended by adding a subdivision to read:

Subd. 1a. [RESIDENCY CRITERIA.] A child or caretaker relative who has resided in Minnesota for less than 30 days is considered to be a Minnesota resident if:

(1) either the child or the caretaker relative was born in the state;

(2) either the child or the caretaker relative has, in the past, resided in this state for at least 365 consecutive days;

(3) either the child or the caretaker relative came to this state to join a close relative who has resided in this state for at least one year. For purposes of this clause, "close relative" means a parent, grandparent, brother, sister, spouse, or child; or

(4) the caretaker relative came to this state to accept a bona fide offer of employment and was eligible to accept the employment.

A county agency may waive the 30-day residency requirement in cases of emergency or where unusual hardship would result from denial of assistance. The county agency must report to the commissioner within 30 days on any waiver granted under this section.

Sec. 12. Minnesota Statutes 1994, section 256.73, is amended by adding a subdivision to read:

Subd. 1b. [USE OF CODE OF FEDERAL REGULATIONS.] In the event that federal block grant legislation eliminates the federal regulatory basis for aid to families with dependent children, the state shall continue to determine eligibility for Minnesota's AFDC program using the provisions of Code of Federal Regulations, title 45, as constructed on the day prior to their federal repeal, except as expressly superseded in sections 256.72 to 256.87, or as superseded by federal law, or as modified by state rule or by regulatory waivers granted to the state.

Sec. 13. Minnesota Statutes 1995 Supplement, section 256.73, subdivision 8, is amended to read:

Subd. 8. [RECOVERY OF OVERPAYMENTS.] (a) Except as provided in subdivision 8a, if an amount of aid to families with dependent children assistance is paid to a recipient in excess of the payment due, it shall be recoverable by the county agency. The agency shall give written notice to the recipient of its intention to recover the overpayment.

(b) When an overpayment occurs, the county agency shall recover the overpayment from a current recipient by reducing the amount of aid payable to the assistance unit of which the recipient is a member for one or more monthly assistance payments until the overpayment is repaid. All county agencies in the state shall reduce the assistance payment by three percent of the assistance unit's standard of need or the amount of the monthly payment, whichever is less, for all overpayments whether or not the overpayment is due solely to agency error. For recipients receiving benefits via electronic benefit transfer, if the overpayment is a result of an automated teller machine (ATM) dispensing funds in error to the recipient, the agency may recover the overpayment by immediately withdrawing funds from the recipient's electronic benefit transfer account, up to the amount of the overpayment. If the overpayment is due solely to having wrongfully obtained assistance, whether based on a court order, the finding of an administrative fraud disqualification hearing or a waiver of such a hearing, or a confession of judgment containing an admission of an intentional program violation, the amount of this reduction shall be ten percent. In cases when there is both an overpayment and underpayment, the county agency shall offset one against the other in correcting the payment.

(c) Overpayments may also be voluntarily repaid, in part or in full, by the individual, in addition to the above aid reductions, until the total amount of the overpayment is repaid.

(d) The county agency shall make reasonable efforts to recover overpayments to persons no longer on assistance in accordance with standards adopted in rule by the commissioner of human services. The county agency need not attempt to recover overpayments of less than $35 paid to an individual no longer on assistance if the individual does not receive assistance again within three years, unless the individual has been convicted of fraud under section 256.98.

Sec. 14. Minnesota Statutes 1994, section 256.736, subdivision 1a, is amended to read:

Subd. 1a. [DEFINITIONS.] As used in this section and section 256.7365, the following words have the meanings given them:

(a) "AFDC" or "income assistance" means the aid to families with dependent children program and any successor to that program.

(b) "AFDC-UP" or "two-parent family" means that group of AFDC clients who are eligible for assistance by reason of unemployment as defined by the commissioner under section 256.12, subdivision 14.

(c) "Caretaker" means a parent or eligible adult, including a pregnant woman, who is part of the assistance unit that has applied for or is receiving AFDC.

(d) "Case manager" means the county agency's employment and training service provider who provides the services identified in sections 256.736 to 256.739 according to subdivision 12.

(e) "Employment and training services" means programs, activities, and services related to job training, job placement, and job creation, including job service programs, job training partnership act programs, wage subsidies, remedial and secondary education programs, post-secondary education programs excluding education leading to a post-baccalaureate degree, vocational education programs, work readiness programs, job search, counseling, case management, community work experience programs, displaced homemaker programs, self-employment programs, grant diversion, employment experience programs, youth employment programs, community investment programs, refugee employment and training programs, and counseling and support activities necessary to stabilize the caretaker or the family.

(e) (f) "Employment and training service provider" means a public, private, or nonprofit agency certified by the commissioner of economic security to deliver employment and training services under section 268.0122, subdivision 3, and section 268.871, subdivision 1.

(f) (g) "Minor parent" means a caretaker relative who is the person who is under age 18 and who is either the birth parent of the dependent a minor child or children in the assistance unit and who is under the age of 18 or is eligible for AFDC as a pregnant woman.

(g) (h) "Targeted groups" or "targeted caretakers" means recipients of AFDC or AFDC-UP designated as priorities for employment and training services under subdivision 16.

(h) (i) "Suitable employment" means employment which:

(1) is within the recipient's physical and mental capacity;

(2) meets health and safety standards established by the Occupational Safety and Health Administration and the department of economic security;

(3) pays hourly gross earnings which are not less than the federal or state minimum wage for that type of employment, whichever is applicable;

(4) does not result in a net loss of income. Employment results in a net loss of income when the income remaining after subtracting necessary work-related expenses from the family's gross income, which includes cash assistance, is less than the cash assistance the family was receiving at the time the offer of employment was made. For purposes of this definition, "work expenses" means the amount withheld or paid for; state and federal income taxes; social security withholding taxes; mandatory retirement fund deductions; dependent care costs; transportation costs to and from work at the amount allowed by the Internal Revenue Service for personal car mileage; costs of work uniforms, union dues, and medical insurance premiums; costs of tools and equipment used on the job; $1 per work day for the costs of meals eaten during employment; public liability insurance required by an employer when an automobile is used in employment and the cost is not reimbursed by the employer; and the amount paid by an employee from personal funds for business costs which are not reimbursed by the employer;

(5) offers a job vacancy which is not the result of a strike, lockout, or other bona fide labor dispute;

(6) requires a round trip commuting time from the recipient's residence of less than two hours by available transportation, exclusive of the time to transport children to and from child care;

(7) does not require the recipient to leave children under age 12 unattended in order to work, or if child care is required, such care is available; and

(8) does not discriminate at the job site on the basis of age, sex, race, color, creed, marital status, status with regard to public assistance, disability, religion, or place of national origin.

(i) (j) "Support services" means programs, activities, and services intended to stabilize families and individuals or provide assistance for family needs related to employment or participation in employment and training services, including child care, transportation, housing assistance, personal and family counseling, crisis intervention services, peer support groups, chemical dependency counseling and treatment, money management assistance, and parenting skill courses.

Sec. 15. Minnesota Statutes 1994, section 256.736, subdivision 3b, is amended to read:

Subd. 3b. [MANDATORY ASSESSMENT AND SCHOOL ATTENDANCE FOR CERTAIN CUSTODIAL PARENTS.] This subdivision applies to the extent permitted under federal law and regulation.

(a) [DEFINITIONS.] The definitions in this paragraph apply to this subdivision.

(1) "Custodial parent" means a recipient of AFDC who is the natural or adoptive parent of a child living with the custodial parent.

(2) "School" means:

(i) an educational program which leads to a high school diploma. The program or coursework may be, but is not limited to, a program under the post-secondary enrollment options of section 123.3514, a regular or alternative program of an elementary or secondary school, a technical college, or a college;

(ii) coursework for a general educational development (GED) diploma of not less than six hours of classroom instruction per week; or

(iii) any other post-secondary educational program that is approved by the public school or the county agency under subdivision 11.

(b) [ASSESSMENT AND PLAN; REQUIREMENT; CONTENT.] The county agency must examine the educational level of each custodial parent under the age of 20 to determine if the recipient has completed a high school education or its equivalent. If the custodial parent has not completed a high school education or its equivalent and is not exempt from the requirement to attend school under paragraph (c), the county agency must complete an individual assessment for the custodial parent. The assessment must be performed as soon as possible but within 60 days of determining AFDC eligibility for the custodial parent. The assessment must provide an initial examination of the custodial parent's educational progress and needs, literacy level, child care and supportive service needs, family circumstances, skills, and work experience. In the case of a custodial parent under the age of 18, the assessment must also consider the results of the early and periodic screening, diagnosis and treatment (EPSDT) screening, if available, and the effect of a child's development and educational needs on the parent's ability to participate in the program. The county agency must advise the parent that the parent's first goal must be to complete an appropriate educational option if one is identified for the parent through the assessment and, in consultation with educational agencies, must review the various school completion options with the parent and assist the parent in selecting the most appropriate option.

(c) [RESPONSIBILITY FOR ASSESSMENT AND PLAN.] For custodial parents who are under age 18, the assessment and the employability plan must be completed by the county social services agency, as specified in section 257.33. For custodial parents who are age 18 or 19, the assessment and employability plan must be completed by the case manager. The social services agency or the case manager shall consult with representatives of educational agencies required to assist in developing educational plans under section 126.235.

(d) [EDUCATION DETERMINED TO BE APPROPRIATE.] If the case manager or county social services agency identifies an appropriate educational option, it must develop an employability plan in consultation with the custodial parent which reflects the assessment. The plan must specify that participation in an educational activity is required, what school or educational program is most appropriate, the services that will be provided, the activities the parent will take part in including child care and supportive services, the consequences to the custodial parent for failing to participate or comply with the specified requirements, and the right to appeal any adverse action. The employability plan must, to the extent possible, reflect the preferences of the participant.

(e) [EDUCATION DETERMINED TO BE NOT APPROPRIATE.] If the case manager determines that there is no appropriate educational option for a custodial parent who is age 18 or 19, the case manager shall indicate the reasons for the determination. The case manager shall then notify the county agency which must refer the custodial parent to case management services under subdivision 11 the Project STRIDE program for completion of an employability plan and mandatory participation in employment and training services. If the custodial parent fails to participate or cooperate with case management employment and training services and does not have good cause for the failure, the county agency shall apply the sanctions listed in subdivision 4, beginning with the first payment month after issuance of notice. If the county social services agency determines that school attendance is not appropriate for a custodial parent under age 18, the county agency shall refer the custodial parent to social services for services as provided in section 257.33.

(f) [SCHOOL ATTENDANCE REQUIRED.] Notwithstanding subdivision 3, a custodial parent must attend school if all of the following apply:

(1) the custodial parent is less than 20 years of age;

(2) transportation services needed to enable the custodial parent to attend school are available;

(3) licensed or legal nonlicensed child care services needed to enable the custodial parent to attend school are available;

(4) the custodial parent has not already received a high school diploma or its equivalent; and

(5) the custodial parent is not exempt because the custodial parent:

(i) is ill or incapacitated seriously enough to prevent attendance at school;

(ii) is needed in the home because of the illness or incapacity of another member of the household; this includes a custodial parent of a child who is younger than six weeks of age;

(iii) works 30 or more hours a week; or

(iv) is pregnant if it has been medically verified that the child's birth is expected within the next six months.

(g) [ENROLLMENT AND ATTENDANCE.] The custodial parent must be enrolled in school and meeting the school's attendance requirements. If enrolled, the custodial parent is considered to be attending when the school is not in regular session, including during holiday and summer breaks.

(h) [GOOD CAUSE FOR NOT ATTENDING SCHOOL.] The county agency shall not impose the sanctions in subdivision 4 if it determines that a custodial parent has good cause for not being enrolled or for not meeting the school's attendance requirements. The county agency shall determine whether good cause for not attending or not enrolling in school exists, according to this paragraph:

(1) Good cause exists when the county agency has verified that the only available school program requires round trip commuting time from the custodial parent's residence of more than two hours by available means of transportation, excluding the time necessary to transport children to and from child care.

(2) Good cause exists when the custodial parent has indicated a desire to attend school, but the public school system is not providing for the education and alternative programs are not available.

(i) [FAILURE TO COMPLY.] The case manager and social services agency shall establish ongoing contact with appropriate school staff to monitor problems that custodial parents may have in pursuing their educational plan and shall jointly seek solutions to prevent parents from failing to complete education. If the school notifies the county agency that the custodial parent is not enrolled or is not meeting the school's attendance requirements, or appears to be facing barriers to completing education, the information must be conveyed to the case manager for a custodial parent age 18 or 19, or to the social services agency for a custodial parent under age 18. The case manager or social services agency shall reassess the appropriateness of school attendance as specified in paragraph (f). If after consultation, school attendance is still appropriate and the case manager or social services agency determines that the custodial parent has failed to enroll or is not meeting the school's attendance requirements and the custodial parent does not have good cause, the case manager or social services agency shall inform the custodial parent's financial worker who shall apply the sanctions listed in subdivision 4 beginning with the first payment month after issuance of notice.

(j) [NOTICE AND HEARING.] A right to notice and fair hearing shall be provided in accordance with section 256.045 and the Code of Federal Regulations, title 45, section 205.10.

(k) [SOCIAL SERVICES.] When a custodial parent under the age of 18 has failed to attend school, is not exempt, and does not have good cause, the county agency shall refer the custodial parent to the social services agency for services, as provided in section 257.33.

(l) [VERIFICATION.] No less often than quarterly, the financial worker must verify that the custodial parent is meeting the requirements of this subdivision. Notwithstanding section 13.32, subdivision 3, when the county agency notifies the school that a custodial parent is subject to this subdivision, the school must furnish verification of school enrollment, attendance, and progress to the county agency. The county agency must not impose the sanctions in paragraph (i) if the school fails to cooperate in providing verification of the minor parent's education, attendance, or progress.

Sec. 16. Minnesota Statutes 1994, section 256.736, subdivision 4, is amended to read:

Subd. 4. [CONDITIONS OF CERTIFICATION.] The commissioner of human services shall:

(1) in consultation with the commissioner of children, families, and learning, arrange for or provide any caretaker or child required to participate who participates in employment and training services pursuant to this section with child-care services, transportation, and other necessary family services;

(2) provide that in determining a recipient's needs the additional expenses attributable to participation in a program are taken into account in grant determination to the extent permitted by federal regulation;

(3) provide that the county board shall impose the sanctions in clause (4) when the county board:

(a) determines that a custodial parent under the age of 16 who is required to attend school under subdivision 3b has, without good cause, failed to attend school; or

(b) determines that subdivision 3c applies to a minor parent and the minor parent has, without good cause, failed to cooperate with development of a social service plan or to participate in execution of the plan, to live in a group or foster home, or to participate in a program that teaches skills in parenting and independent living;

(4) to the extent permissible by federal law, impose the following sanctions for a recipient's failure to participate in the requirements of subdivision 3b or 3c:

(a) for the first failure, 50 percent of the grant provided to the family for the month following the failure shall be made in the form of protective or vendor payments;

(b) for the second and subsequent failures, the entire grant provided to the family must be made in the form of protective or vendor payments. Assistance provided to the family must be in the form of protective or vendor payments until the recipient complies with the requirement; and

(c) when protective payments are required, the county agency may continue payments to the caretaker if a protective payee cannot reasonably be found;

(5) provide that the county board shall impose the sanctions in clause (6) when the county board:

(a) determines that a caretaker or child required to participate in employment and training services has been found by the employment and training service provider to have failed without good cause to participate in appropriate employment and training services, to comply with the recipient's employability development plan, or to have failed without good cause to accept, through the job search program described in subdivision 14, or the provisions of an employability development plan if the caretaker is a custodial parent age 18 or 19 and subject to the requirements of subdivision 3b, a bona fide offer of public or other employment;

(b) determines that a custodial parent aged 16 to 19 who is required to attend school under subdivision 3b has, without good cause, failed to enroll or attend school; or

(c) determines that a caretaker has, without good cause, failed to attend orientation;

(6) to the extent required by federal law, impose the following sanctions for a recipient's failure to participate in required employment and training services, to comply with the recipient's employability development plan, to accept a bona fide offer of public or other employment, to enroll or attend school under subdivision 3b, or to attend orientation:

(a) for the first failure, the needs of the noncompliant individual shall not be taken into account in making the grant determination, until the individual complies with the requirements;

(b) for the second failure, the needs of the noncompliant individual shall not be taken into account in making the grant determination until the individual complies with the requirement or for three consecutive months, whichever is longer;

(c) for subsequent failures, the needs of the noncompliant individual shall not be taken into account in making the grant determination until the individual complies with the requirement or for six consecutive months, whichever is longer;

(d) aid with respect to a dependent child who has been sanctioned under this paragraph shall be continued for the parent or parents of the child if the child is the only child receiving aid in the family, the child continues to meet the conditions of section 256.73, and the family is otherwise eligible for aid;

(e) if the noncompliant individual is a parent or other relative caretaker, payments of aid for any dependent child in the family must be made in the form of protective or vendor payments. When protective payments are required, the county agency may continue payments to the caretaker if a protective payee cannot reasonably be found. When protective payments are imposed on assistance units whose basis of eligibility is unemployed parent or incapacitated parent a two-parent family, cash payments may continue to the nonsanctioned caretaker in the assistance unit who remains eligible for AFDC, subject to paragraph (g);

(f) if, after removing a caretaker's needs from the grant, only dependent children remain eligible for AFDC, the standard of assistance shall be computed using the special children standard;

(g) if the noncompliant individual is a principal wage earner in a family whose basis of eligibility is the unemployment of a parent in a two-parent family and the nonprincipal wage earner other parent is not participating in an approved employment and training service, the needs of both the principal and nonprincipal wage earner parents must not be taken into account in making the grant determination; and

(7) request approval from the secretary of health and human services to use vendor payment sanctions for persons listed in paragraph (5), clause (b). If approval is granted, the commissioner must begin using vendor payment sanctions as soon as changes to the state plan are approved.

Sec. 17. Minnesota Statutes 1995 Supplement, section 256.736, subdivision 10, is amended to read:

Subd. 10. [COUNTY DUTIES.] (a) To the extent of available state appropriations, county boards shall:

(1) refer all mandatory and eligible volunteer caretakers permitted to participate under subdivision 3a to an employment and training service provider for participation in employment and training services;

(2) identify to the employment and training service provider the target group of which the referred caretaker is a member, if any, and whether the person's participation is mandatory or voluntary;

(3) provide all caretakers with an orientation which meets the requirements in subdivisions 10a and 10b;

(4) work with the employment and training service provider to encourage voluntary participation by caretakers in the target groups in employment and training services;

(5) work with the employment and training service provider to collect data as required by the commissioner;

(6) to the extent permissible under federal law, require all caretakers coming into the AFDC program to attend orientation;

(7) encourage nontarget caretakers to develop a plan to obtain self-sufficiency;

(8) notify the commissioner of the caretakers required to who participate in employment and training services;

(9) inform appropriate caretakers of opportunities available through the head start program and encourage caretakers to have their children screened for enrollment in the program where appropriate;

(10) provide transportation assistance using available funds to caretakers who participate in employment and training programs;

(11) ensure that the required services of orientation, job search, services to custodial parents under the age of 20 who have not completed high school or an equivalent program, job search, educational activities, and work experience for AFDC-UP two-parent families, and case management services are made available to appropriate caretakers under this section, except that payment for case management services is governed by subdivision 13 and that services are provided to volunteer caretakers to the extent resources permit;

(12) explain in its local service unit plan under section 268.88 how it will ensure that target caretakers determined to be in need of social services are provided with such social services. The plan must specify how the case manager and the county social service workers will ensure delivery of needed services;

(13) to the extent allowed by federal laws and regulations, provide a job search program as defined in subdivision 14, a community work experience program as defined in section 256.737, grant diversion as defined in section 256.739, and on-the-job training as defined in section 256.738. A county may also provide another work and training program approved by the commissioner and the secretary of the United States Department of Health and Human Services. Planning and approval for employment and training services listed in this clause must be obtained through submission of the local service unit plan as specified under section 268.88. A county is not required to provide a community work experience program if the county agency is successful in placing at least 40 60 percent of the monthly average of all caretakers who are subject to the job search requirements of subdivision 14 in grant diversion or on-the-job training program;

(14) prior to participation, provide an assessment of each AFDC recipient who is required or volunteers to participate in an approved employment and training service. The assessment must include an evaluation of the participant's (i) educational, child care, and other supportive service needs; (ii) skills and prior work experience; and (iii) ability to secure and retain a job which, when wages are added to child support, will support the participant's family. The assessment must also include a review of the results of the early and periodic screening, diagnosis and treatment (EPSDT) screening and preschool screening under chapter 123, if available; the participant's family circumstances; and, in the case of a custodial parent under the age of 18, a review of the effect of a child's development and educational needs on the parent's ability to participate in the program;

(15) develop an employability development plan for each recipient for whom an assessment is required under clause (14) which:

(i) reflects the assessment required by clause (14);

(ii) takes into consideration the recipient's physical capacity, skills, experience, health and safety, family responsibilities, place of residence, proficiency, child care and other supportive service needs;

(iii) is based on available resources and local employment opportunities;

(iv) specifies the services to be provided by the employment and training service provider;

(v) specifies the activities the recipient will participate in, including the worksite to which the caretaker will be assigned, if the caretaker is subject to the requirements of section 256.737, subdivision 2;

(vi) specifies necessary supportive services such as child care;

(vii) reflects the effort to arrange mandatory activities so that the activities do not interfere with access to available English as a second language classes and to the extent possible, reflects the preferences of the participant;

(viii) includes a written agreement between the county agency and the caretaker that outlines a reasonable schedule for completing the plan, including specific completion deadlines, and confirms that:

(A) there is a market for full-time employees with this education or training where the caretaker will or is willing to reside upon completion of the program;

(B) the average wage level for employees with this education or training is greater than the caretaker can earn without this education or training;

(C) the caretaker has the academic ability to successfully complete the program; and

(D) there is a reasonable expectation that the caretaker will complete the training program based on such factors as the caretaker's previous education, training, work history, current motivation, and changes in previous circumstances; and

(ix) specifies the recipient's long-term employment goal which shall lead to self-sufficiency. Caretakers shall be counseled to set realistic attainable goals, taking into account the long-term needs of the caretaker and the caretaker's family; and

(16) provide written notification to and obtain the written concurrence of the appropriate exclusive bargaining representatives with respect to job duties covered under collective bargaining agreements and assure that no work assignment under this section or sections 256.737, 256.738, and 256.739, or the Minnesota parent's fair share mandatory community work experience program results in: (i) termination, layoff, or reduction of the work hours of an employee for the purpose of hiring an individual under this section or sections 256.737, 256.738, and 256.739; (ii) the hiring of an individual if any other person is on layoff from the same or a substantially equivalent job; (iii) any infringement of the promotional opportunities of any currently employed individual; (iv) the impairment of existing contracts for services or collective bargaining agreements; or (v) except for on-the-job training under section 256.738, a participant filling an established unfilled position vacancy. If an exclusive bargaining representative and a county or public service employer disagree regarding whether job duties are covered under a collective bargaining agreement, the exclusive bargaining representative or the county or public service employer may petition the bureau of mediation services, and the bureau shall determine if the job duties are covered by a collective bargaining agreement; and

(17) assess each caretaker in an AFDC-UP a two-parent family who is under age 25, has not completed high school or a high school equivalency program, and who would otherwise be required to participate in a work experience placement under section 256.737 to determine if an appropriate secondary education option is available for the caretaker. If an appropriate secondary education option is determined to be available for the caretaker, the caretaker must, in lieu of participating in work experience, enroll in and meet the educational program's participation and attendance requirements. "Secondary education" for this paragraph means high school education or education designed to prepare a person to qualify for a high school equivalency certificate, basic and remedial education, and English as a second language education. A caretaker required to participate in secondary education who, without good cause, fails to participate shall be subject to the provisions of subdivision 4a and the sanction provisions of subdivision 4, clause (6). For purposes of this clause, "good cause" means the inability to obtain licensed or legal nonlicensed child care services needed to enable the caretaker to attend, inability to obtain transportation needed to attend, illness or incapacity of the caretaker or another member of the household which requires the caretaker to be present in the home, or being employed for more than 30 hours per week; and

(18) provide counseling and other personal follow-up support as needed for up to six months after the participant loses AFDC eligibility to assist the person to maintain employment or to secure new employment.

(b) Funds available under this subdivision may not be used to assist, promote, or deter union organizing.

(c) A county board may provide other employment and training services that it considers necessary to help caretakers obtain self-sufficiency.

(d) Notwithstanding section 256G.07, when a target caretaker relocates to another county to implement the provisions of the caretaker's case management contract or other written employability development plan approved by the county human service agency, its case manager or its employment and training service provider, the county that approved the plan is responsible for the costs of case management and other services required to carry out the plan, including employment and training services. The county agency's responsibility for the costs ends when all plan obligations have been met, when the caretaker loses AFDC eligibility for at least 30 days, or when approval of the plan is withdrawn for a reason stated in the plan, whichever occurs first. Responsibility for the costs of child care must be determined under chapter 256H. A county human service agency may pay for the costs of case management, child care, and other services required in an approved employability development plan when the nontarget caretaker relocates to another county or when a target caretaker again becomes eligible for AFDC after having been ineligible for at least 30 days.

Sec. 18. Minnesota Statutes 1995 Supplement, section 256.736, subdivision 10a, is amended to read:

Subd. 10a. [ORIENTATION.] (a) Each county agency must provide an orientation to all caretakers within its jurisdiction in the time limits described in this paragraph:

(1) within 60 days of being determined eligible for AFDC for caretakers with a continued absence or incapacitated parent basis of eligibility who are permitted to volunteer for services under subdivision 3a; or

(2) within 30 days of being determined eligible for AFDC for caretakers with an unemployed parent basis of eligibility who are required to participate in services under subdivision 3a.

(b) Caretakers are required to attend an in-person orientation if the caretaker is a member of one of the groups listed in subdivision 3a, paragraph (a), unless the caretaker is exempt from registration under subdivision 3 and the caretaker's exemption basis will not expire within 60 days of being determined eligible for AFDC, or the caretaker is enrolled at least half time in any recognized school, training program, or institution of higher learning and the in-person orientation cannot be scheduled at a time that does not interfere with the caretaker's school or training schedule. The county agency shall require attendance at orientation of caretakers described in subdivision 3a, paragraph (b) or (c), if the commissioner determines that the groups are eligible for participation in employment and training services.

(c) The orientation must consist of a presentation that informs caretakers of:

(1) the identity, location, and phone numbers of employment and training and support services available in the county;

(2) the types and locations of child care services available through the county agency that are accessible to enable a caretaker to participate in educational programs or employment and training services;

(3) the child care resource and referral program designated by the commissioner providing education and assistance to select child care services and a referral to the child care resource and referral when assistance is requested;

(4) the obligations of the county agency and service providers under contract to the county agency;

(5) the rights, responsibilities, and obligations of participants;

(6) the grounds for exemption from mandatory employment and training services or educational requirements;

(7) the consequences for failure to participate in mandatory services or requirements, including the requirement that volunteer participants comply with their employability development plan;

(8) the method of entering educational programs or employment and training services available through the county;

(9) the availability and the benefits of the early and periodic, screening, diagnosis and treatment (EPSDT) program and preschool screening under chapter 123;

(10) their eligibility for transition year child care assistance when they lose eligibility for AFDC due to their earnings;

(11) their eligibility for extended medical assistance when they lose eligibility for AFDC due to their earnings; and

(12) the availability of the federal earned income tax credits and the state working family tax credits; and

(13) the availability and benefits of the Head Start program.

(d) All orientation programs should provide information to caretakers on parenting, nutrition, household management, food preparation, and other subjects relevant to promoting family integration and self-sufficiency and provide detailed information on community resources available for training sessions on these topics.

(e) Orientation must encourage recipients to view AFDC as a temporary program providing grants and services to individuals who set goals and develop strategies for supporting their families without AFDC assistance. The content of the orientation must not imply that a recipient's eligibility for AFDC is time limited. Orientation may be provided through audio-visual methods, but the caretaker must be given an opportunity for face-to-face interaction with staff of the county agency or the entity providing the orientation, and an opportunity to express the desire to participate in educational programs and employment and training services offered through the county agency.

(f) County agencies shall not require caretakers to attend orientation for more than three hours during any period of 12 continuous months. The county agency shall also arrange for or provide needed transportation and child care to enable caretakers to attend.

The county or, under contract, the county's employment and training service provider shall mail written orientation materials containing the information specified in paragraph (c), clauses (1) to (3) and (8) to (12) (13), to each caretaker exempt from attending an in-person orientation or who has good cause for failure to attend after at least two dates for their orientation have been scheduled. The county or the county's employment and training service provider shall follow up with a phone call or in writing within two weeks after mailing the material.

(g) Persons required to attend orientation must be informed of the penalties for failure to attend orientation, support services to enable the person to attend, what constitutes good cause for failure to attend, and rights to appeal. Persons required to attend orientation must be offered a choice of at least two dates for their first scheduled orientation. No person may be sanctioned for failure to attend orientation until after a second failure to attend.

(h) Good cause for failure to attend an in-person orientation exists when a caretaker cannot attend because of:

(1) temporary illness or injury of the caretaker or of a member of the caretaker's family that prevents the caretaker from attending an orientation during the hours when the orientation is offered;

(2) a judicial proceeding that requires the caretaker's presence in court during the hours when orientation is scheduled; or

(3) a nonmedical emergency that prevents the caretaker from attending an orientation during the hours when orientation is offered. "Emergency" for the purposes of this paragraph means a sudden, unexpected occurrence or situation of a serious or urgent nature that requires immediate action.

(i) Caretakers must receive a second orientation only when:

(1) there has been a 30-day break in AFDC eligibility; and

(2) the caretaker has not attended an orientation within the previous 12-month period, excluding the month of reapplication for AFDC.

Sec. 19. Minnesota Statutes 1994, section 256.736, subdivision 12, is amended to read:

Subd. 12. [CASE MANAGERS EMPLOYMENT AND TRAINING SERVICE PROVISION.] (a) Counties may directly employ case managers to provide the employment and training services in this section if the county is certified as an employment and training service provider under section 268.0122, or may contract for case management services with a certified employment and training service provider. Uncertified counties and contracting agencies may provide case management services only if they demonstrate the ability to coordinate employment, training, education, and support services. The commissioner of economic security shall determine whether or not an uncertified county or agency has demonstrated such ability.

(b) Counties that employ case managers must ensure that the case managers have the skills and knowledge necessary to perform the variety of tasks described in subdivision 11 this section. Counties that contract with another agency for case management services must specify in the contract the skills and knowledge needed by the case managers. At a minimum, case managers must:

(1) have a thorough knowledge of training, education, and employment opportunities;

(2) have training or experience in understanding the needs of AFDC clients and their families; and

(3) be able to formulate creative individualized contracts employability development plans.

Sec. 20. Minnesota Statutes 1995 Supplement, section 256.736, subdivision 14, is amended to read:

Subd. 14. [JOB SEARCH.] (a) Each county agency must establish and operate a job search program as provided under this section. Unless all caretakers in the household are exempt, one nonexempt caretaker in each AFDC-UP two-parent AFDC household must be referred to and begin participation in the job search program within 30 days of being determined eligible for AFDC. If the assistance unit contains more than one nonexempt caretaker, the caretakers may determine which caretaker shall participate. The designation may be changed only once annually at the annual redetermination of eligibility. If no designation is made or if the caretakers cannot agree, the county agency shall designate the caretaker having earned the greater of the incomes, including in-kind income, during the

24-month period immediately preceding the month of application for AFDC benefits as the caretaker that must participate. When no designation is made or the caretakers cannot agree and neither caretaker had earnings or the earnings were identical for each caretaker, then the county agency shall designate the caretaker who must participate. A caretaker is exempt from job search participation if:

(1) the caretaker is exempt from registration under subdivision 3, except that the second caretaker cannot be exempt to provide child care or care to an ill or incapacitated household member if the first caretaker is sanctioned for failure to comply or is exempt under any other exemption category, provided the first caretaker is capable of providing the needed care; or

(2) the caretaker is under age 25, has not completed a high school diploma or an equivalent program, and is participating in a secondary education program as defined in subdivision 10, paragraph (a), clause (17), which is approved by the employment and training service provider in the employability development plan.

(b) The job search program must provide four consecutive weeks of job search activities for no less than 20 hours per week but not more than 32 hours per week. The employment and training service provider shall specify for each participating caretaker the number of weeks and hours of job search to be conducted and shall report to the county agency if the caretaker fails to cooperate with the job search requirement. A person for whom lack of proficiency in English, as determined by an appropriate evaluation, is a barrier to employment, can choose to attend an available intensive, functional work literacy program for a minimum of 20 hours in place of the 20 hours of job search activities. The caretaker's employability development plan must include the length of time needed in the program, specific outcomes, attendance requirements, completion dates, and employment goals as they pertain to the intensive literacy program.

(c) The job search program may provide services to non-AFDC-UP caretakers who are not in two-parent families.

(d) After completion of job search requirements in this section, nonexempt caretakers shall be placed in and must participate in and cooperate with the work experience program under section 256.737, the on-the-job training program under section 256.738, or the grant diversion program under section 256.739. Caretakers must be offered placement in a grant diversion or on-the-job training program, if either such employment is available, before being required to participate in a community work experience program under section 256.737. When a nonexempt caretaker fails to cooperate with the job search program, the work experience program, the on-the-job training program, or the community work experience program and is subject to the sanction provisions of subdivision 4, the second caretaker in the assistance unit, unless exempt, must also be removed from the grant unless that second caretaker has been referred to and has started participating in the job search program and subsequently in the work experience program, the on-the-job training program, or the community work experience program prior to the date the sanction begins for the first caretaker. The second caretaker is ineligible for AFDC until the first caretaker's sanction ends or the second caretaker cooperates with the requirements.

(e) The commissioner may require that, to the extent of available resources, both caretakers in a two-parent AFDC family, where all children are over age six and are not in kindergarten, participate in job search and work experience.

Sec. 21. Minnesota Statutes 1995 Supplement, section 256.81, is amended to read:

256.81 [COUNTY AGENCY, DUTIES.]

(1) The county agency shall keep such records, accounts, and statistics in relation to aid to families with dependent children as the state agency shall prescribe.

(2) Each grant of aid to families with dependent children shall be paid to the recipient by the county agency unless paid by the state agency. Payment must be by check or electronic means in the form of a warrant immediately redeemable in cash, electronic benefits transfer, or by direct deposit into the recipient's account in a financial institution, except in those instances in which the county agency, subject to the rules of the state agency, determines that payments for care shall be made to an individual other than the parent or relative with whom the dependent child is living or to vendors of goods and services for the benefit of the child because such parent or relative is unable to properly manage the funds in the best interests and welfare of the child. There is a presumption of mismanagement of funds whenever a recipient is more than 30 days in arrears on payment of rent, except when the recipient has withheld rent to enforce the recipient's right to withhold the rent in accordance with federal, state, or local housing laws. In cases of mismanagement based solely on failure to pay rent, the county may vendor the rent payments to the landlord. At the request of a recipient, the state or county may make payments directly to vendors of goods and services, but only for goods and services appropriate to maintain the health and safety of the child, as determined by the county.

(3) The state or county may ask the recipient to give written consent authorizing the state or county to provide advance notice to a vendor before vendor payments of rent are reduced or terminated. Whenever possible under state and federal laws and regulations and if the recipient consents, the state or county shall provide at least 30 days notice to vendors before vendor payments of rent are reduced or terminated. If 30 days notice cannot be given, the state or county shall notify the vendor within three working days after the date the state or county becomes aware that vendor payments of rent will be reduced or terminated. When the county notifies a vendor that vendor payments of rent will be reduced or terminated, the county shall include in the notice that it is illegal to discriminate on the grounds that a person is receiving public assistance and the penalties for violation. The county shall also notify the recipient that it is illegal to discriminate on the grounds that a person is receiving public assistance and the procedures for filing a complaint. The county agency may develop procedures, including using the MAXIS system, to implement vendor notice and may charge vendors a fee not exceeding $5 to cover notification costs.

(4) A vendor payment arrangement is not a guarantee that a vendor will be paid by the state or county for rent, goods, or services furnished to a recipient, and the state and county are not liable for any damages claimed by a vendor due to failure of the state or county to pay or to notify the vendor on behalf of a recipient, except under a specific written agreement between the state or county and the vendor or when the state or county has provided a voucher guaranteeing payment under certain conditions.

(5) The county shall be paid from state and federal funds available therefor the amount provided for in section 256.82.

(6) Federal funds available for administrative purposes shall be distributed between the state and the counties in the same proportion that expenditures were made except as provided for in section 256.017.

(7) The affected county may require that assistance paid under the AFDC emergency assistance program in the form of a rental unit damage deposit, less any amount retained by the landlord to remedy a tenant's default in payment of rent or other funds due to the landlord pursuant to a rental agreement, or to restore the premises to the condition at the commencement of the tenancy, ordinary wear and tear excepted, be returned to the county when the individual vacates the premises or paid to the recipient's new landlord as a vendor payment. The vendor payment of returned funds shall not be considered a new use of emergency assistance.

Sec. 22. Minnesota Statutes 1994, section 256B.056, subdivision 1, is amended to read:

Subdivision 1. [RESIDENCY.] To be eligible for medical assistance, a person must reside have resided in Minnesota for at least 30 days, or, if absent from the state, be deemed to be a resident of Minnesota in accordance with the rules of the state agency.

A person who has resided in the state for less than 30 days is considered to be a Minnesota resident if the person:

(1) was born in the state;

(2) has in the past resided in the state for at least 365 consecutive days;

(3) has come to the state to join a close relative, which, for purposes of this subdivision means a parent, grandparent, brother, sister, spouse, or child; or

(4) has come to this state to accept a bona fide offer of employment for which the person is eligible.

A county agency may waive the 30-day residency requirement in cases of medical emergency or where unusual hardship would result from denial of assistance. The county agency must report to the commissioner within 30 days on any waiver granted under this section.

Sec. 23. Minnesota Statutes 1995 Supplement, section 256D.02, subdivision 12a, is amended to read:

Subd. 12a. [RESIDENT.] For purposes of eligibility for general assistance under section 256D.05, and payments under section 256D.051 and general assistance medical care, a "resident" is a person living in the state for at least 30 days with the intention of making the person's home here and not for any temporary purpose. All applicants for these programs are required to demonstrate the requisite intent and can do so in any of the following ways:

(1) by showing that the applicant maintains a residence at a verified address, other than a place of public accommodation. An applicant may verify a residence address by presenting a valid state driver's license, a state identification card, a voter registration card, a rent receipt, a statement by the landlord, apartment manager, or

homeowner verifying that the individual is residing at the address, or other form of verification approved by the commissioner;. An applicant who has been in the state for less than 30 days shall be considered a resident if the applicant can provide documentation:

(2) by providing written documentation

(1) that the applicant came to the state in response to an offer of employment;

(3) by providing verification (2) that the applicant has been a long-time resident of the state or was formerly a resident of the state for at least 365 days and is returning to the state from a temporary absence, as those terms are defined in rules to be adopted by the commissioner; or

(4) by providing other persuasive evidence to show that the applicant is a resident of the state, according to rules adopted by the commissioner (3) that the applicant has come to this state to accept a bona fide offer of employment for which the applicant is eligible.

A county agency may waive the 30-day residency requirement in cases of emergencies, including medical emergencies, or where unusual hardship would result from denial of assistance. The county agency must report to the commissioner within 30 days on any waiver granted under this section.

Sec. 24. Minnesota Statutes 1995 Supplement, section 256D.03, subdivision 2, is amended to read:

Subd. 2. After December 31, 1980, state aid shall be paid for 75 percent of all general assistance and grants up to the standards of sections section 256D.01, subdivision 1a, and 256D.051, and according to procedures established by the commissioner, except as provided for under section 256.017. Benefits shall be issued to recipients by the state or county and funded according to section 256.025, subdivision 3.

Beginning July 1, 1991, the state will reimburse counties according to the payment schedule in section 256.025 for the county share of county agency expenditures made under this subdivision from January 1, 1991, on. Payment to counties under this subdivision is subject to the provisions of section 256.017.

Sec. 25. Minnesota Statutes 1995 Supplement, section 256D.03, subdivision 2a, is amended to read:

Subd. 2a. [COUNTY AGENCY OPTIONS.] Any county agency may, from its own resources, make payments of general assistance: (a) at a standard higher than that established by the commissioner without reference to the standards of section 256D.01, subdivision 1; or (b) to persons not meeting the eligibility standards set forth in section 256D.05, subdivision 1, or 256D.051 but for whom the aid would further the purposes established in the general assistance program in accordance with rules adopted by the commissioner pursuant to the administrative procedure act. The Minnesota department of human services may maintain client records and issue these payments, providing the cost of benefits is paid by the counties to the department of human services in accordance with sections 256.01 and 256.025, subdivision 3.

Sec. 26. Minnesota Statutes 1995 Supplement, section 256D.03, subdivision 3, is amended to read:

Subd. 3. [GENERAL ASSISTANCE MEDICAL CARE; ELIGIBILITY.] (a) General assistance medical care may be paid for any person who is not eligible for medical assistance under chapter 256B, including eligibility for medical assistance based on a spenddown of excess income according to section 256B.056, subdivision 5, and:

(1) who is receiving assistance under section 256D.05 or 256D.051, or who is having a payment made on the person's behalf under sections 256I.01 to 256I.06; or

(2)(i) who is a resident of Minnesota; and whose equity in assets is not in excess of $1,000 per assistance unit. No asset test shall be applied to children and their parents living in the same household. Exempt assets, the reduction of excess assets, and the waiver of excess assets must conform to the medical assistance program in chapter 256B, with the following exception: the maximum amount of undistributed funds in a trust that could be distributed to or on behalf of the beneficiary by the trustee, assuming the full exercise of the trustee's discretion under the terms of the trust, must be applied toward the asset maximum; and

(ii) who has countable income not in excess of the assistance standards established in section 256B.056, subdivision 4, or whose excess income is spent down pursuant to section 256B.056, subdivision 5, using a six-month budget period, except that a one-month budget period must be used for recipients residing in a long-term care facility. The method for calculating earned income disregards and deductions for a person who resides with a dependent child

under age 21 shall be as specified in section 256.74, subdivision 1. However, if a disregard of $30 and one-third of the remainder described in section 256.74, subdivision 1, clause (4), has been applied to the wage earner's income, the disregard shall not be applied again until the wage earner's income has not been considered in an eligibility determination for general assistance, general assistance medical care, medical assistance, or aid to families with dependent children for 12 consecutive months. The earned income and work expense deductions for a person who does not reside with a dependent child under age 21 shall be the same as the method used to determine eligibility for a person under section 256D.06, subdivision 1, except the disregard of the first $50 of earned income is not allowed; or

(3) who would be eligible for medical assistance except that the person resides in a facility that is determined by the commissioner or the federal health care financing administration to be an institution for mental diseases.

(b) Eligibility is available for the month of application, and for three months prior to application if the person was eligible in those prior months. A redetermination of eligibility must occur every 12 months.

(c) General assistance medical care is not available for a person in a correctional facility unless the person is detained by law for less than one year in a county correctional or detention facility as a person accused or convicted of a crime, or admitted as an inpatient to a hospital on a criminal hold order, and the person is a recipient of general assistance medical care at the time the person is detained by law or admitted on a criminal hold order and as long as the person continues to meet other eligibility requirements of this subdivision.

(d) General assistance medical care is not available for applicants or recipients who do not cooperate with the county agency to meet the requirements of medical assistance.

(e) In determining the amount of assets of an individual, there shall be included any asset or interest in an asset, including an asset excluded under paragraph (a), that was given away, sold, or disposed of for less than fair market value within the 60 months preceding application for general assistance medical care or during the period of eligibility. Any transfer described in this paragraph shall be presumed to have been for the purpose of establishing eligibility for general assistance medical care, unless the individual furnishes convincing evidence to establish that the transaction was exclusively for another purpose. For purposes of this paragraph, the value of the asset or interest shall be the fair market value at the time it was given away, sold, or disposed of, less the amount of compensation received. For any uncompensated transfer, the number of months of ineligibility, including partial months, shall be calculated by dividing the uncompensated transfer amount by the average monthly per person payment made by the medical assistance program to skilled nursing facilities for the previous calendar year. The individual shall remain ineligible until this fixed period has expired. The period of ineligibility may exceed 30 months, and a reapplication for benefits after 30 months from the date of the transfer shall not result in eligibility unless and until the period of ineligibility has expired. The period of ineligibility begins in the month the transfer was reported to the county agency, or if the transfer was not reported, the month in which the county agency discovered the transfer, whichever comes first. For applicants, the period of ineligibility begins on the date of the first approved application.

(f)(1) Beginning October 1, 1993, an undocumented alien or a nonimmigrant is ineligible for general assistance medical care other than emergency services. For purposes of this subdivision, a nonimmigrant is an individual in one or more of the classes listed in United States Code, title 8, section 1101(a)(15), and an undocumented alien is an individual who resides in the United States without the approval or acquiescence of the Immigration and Naturalization Service.

(2) This subdivision does not apply to a child under age 18, to a Cuban or Haitian entrant as defined in Public Law Number 96-422, section 501(e)(1) or (2)(a), or to an alien who is aged, blind, or disabled as defined in United States Code, title 42, section 1382c(a)(1).

(3) For purposes of paragraph (f), "emergency services" has the meaning given in Code of Federal Regulations, title 42, section 440.255(b)(1), except that it also means services rendered because of suspected or actual pesticide poisoning.

Sec. 27. Minnesota Statutes 1995 Supplement, section 256D.05, subdivision 1, is amended to read:

Subdivision 1. [ELIGIBILITY.] (a) Each person or family whose income and resources are less than the standard of assistance established by the commissioner and who is a resident of the state shall be eligible for and entitled to general assistance if the person or family is:

(1) a person who is suffering from a professionally certified permanent or temporary illness, injury, or incapacity which is expected to continue for more than 30 days and which prevents the person from obtaining or retaining employment;

(2) a person whose presence in the home on a substantially continuous basis is required because of the professionally certified illness, injury, incapacity, or the age of another member of the household;

(3) a person who has been placed in, and is residing in, a licensed or certified facility for purposes of physical or mental health or rehabilitation, or in an approved chemical dependency domiciliary facility, if the placement is based on illness or incapacity and is pursuant to a plan developed or approved by the county agency through its director or designated representative;

(4) a person who resides in a shelter facility described in subdivision 3;

(5) a person not described in clause (1) or (3) who is diagnosed by a licensed physician, psychological practitioner, or other qualified professional, as mentally retarded or mentally ill, and that condition prevents the person from obtaining or retaining employment;

(6) a person who has an application pending for, or is appealing termination of benefits from, the social security disability program or the program of supplemental security income for the aged, blind, and disabled, provided the person has a professionally certified permanent or temporary illness, injury, or incapacity which is expected to continue for more than 30 days and which prevents the person from obtaining or retaining employment;

(7) a person who is unable to obtain or retain employment because advanced age significantly affects the person's ability to seek or engage in substantial work;

(8) a person who has been assessed by a vocational specialist and, in consultation with the county agency, has been determined to be unemployable for purposes of this item, a person is considered employable if there exist positions of employment in the local labor market, regardless of the current availability of openings for those positions, that the person is capable of performing. The person's eligibility under this category must be reassessed at least annually. The county agency must provide notice to the person not later than 30 days before annual eligibility under this item ends, informing the person of the date annual eligibility will end and the need for vocational assessment if the person wishes to continue eligibility under this clause. For purposes of establishing eligibility under this clause, it is the applicant's or recipient's duty to obtain any needed vocational assessment;

(9) a person who is determined by the county agency, in accordance with permanent rules adopted by the commissioner, to be learning disabled, provided that if a rehabilitation plan for the person is developed or approved by the county agency, the person is following the plan;

(10) a child under the age of 18 who is not living with a parent, stepparent, or legal custodian, but only if: the child is legally emancipated or living with an adult with the consent of an agency acting as a legal custodian; the child is at least 16 years of age and the general assistance grant is approved by the director of the county agency or a designated representative as a component of a social services case plan for the child; or the child is living with an adult with the consent of the child's legal custodian and the county agency. For purposes of this clause, "legally emancipated" means a person under the age of 18 years who: (i) has been married; (ii) is on active duty in the uniformed services of the United States; (iii) has been emancipated by a court of competent jurisdiction; or (iv) is otherwise considered emancipated under Minnesota law, and for whom county social services has not determined that a social services case plan is necessary, for reasons other than that the child has failed or refuses to cooperate with the county agency in developing the plan;

(11) a woman in the last trimester of pregnancy who does not qualify for aid to families with dependent children. A woman who is in the last trimester of pregnancy who is currently receiving aid to families with dependent children may be granted emergency general assistance to meet emergency needs;

(12) a person who is eligible for displaced homemaker services, programs, or assistance under section 268.96, but only if that person is enrolled as a full-time student;

(13) a person who lives more than two hours round-trip traveling time from any potential suitable employment;

(14) a person who is involved with protective or court-ordered services that prevent the applicant or recipient from working at least four hours per day;

(15)(i) a family as defined in section 256D.02, subdivision 5, which is ineligible for the aid to families with dependent children program.;

(ii) unless all adults in the family are exempt under section 256D.051, subdivision 3a, one each adult in the family unit must participate in and cooperate with the food stamp employment and training program under section 256D.051 each month that the family unit receives general assistance benefits. If the household contains more than one nonexempt adult, the adults may determine which adult must participate. The designation may be changed once annually at the annual redetermination of eligibility. If no designation is made or if the adults cannot agree, the county agency shall designate the adult having earned the greater of the incomes, including in-kind income, during the 24-month period immediately preceding the month of application for general assistance, as the adult that must participate. When there are no earnings or when earnings are identical for each adult, the county agency shall designate which adult must participate. The recipient's participation must begin on no later than the first day of the first full month following the determination of eligibility for general assistance benefits. To the extent of available resources, and with the county agency's consent, the recipient may voluntarily continue to participate in food stamp employment and training services for up to three additional consecutive months immediately following termination of general assistance benefits in order to complete the provisions of the recipient's employability development plan. If the an adult member fails without good cause to participate in or cooperate with the food stamp employment and training program, the county agency shall concurrently terminate that person's eligibility for general assistance and food stamps for two months or until compliance is achieved, whichever is shorter, using the notice, good cause, conciliation and termination procedures specified in section 256D.051; or

(16) a person over age 18 whose primary language is not English and who is attending high school at least half time.

(b) Persons or families who are not state residents but who are otherwise eligible for general assistance may receive emergency general assistance to meet emergency needs.

(c) As a condition of eligibility under paragraph (a), clauses (1), (3), (5), (8), and (9), the recipient must complete an interim assistance agreement and must apply for other maintenance benefits as specified in section 256D.06, subdivision 5, and must comply with efforts to determine the recipient's eligibility for those other maintenance benefits.

(d) The burden of providing documentation for a county agency to use to verify eligibility for general assistance or for exemption from the food stamp employment and training program is upon the applicant or recipient. The county agency shall use documents already in its possession to verify eligibility, and shall help the applicant or recipient obtain other existing verification necessary to determine eligibility which the applicant or recipient does not have and is unable to obtain.

Sec. 28. Minnesota Statutes 1995 Supplement, section 256D.051, subdivision 1, is amended to read:

Subdivision 1. [FOOD STAMP EMPLOYMENT AND TRAINING PROGRAM.] The commissioner shall implement a food stamp employment and training program in order to meet the food stamp employment and training participation requirements of the United States Department of Agriculture. Unless all adult members of the food stamp household are exempt under subdivision 3a, one nonexempt each adult recipient in each household the unit must participate in the food stamp employment and training program each month that the household person is eligible for food stamps , up to a maximum period of six calendar months during any 12 consecutive calendar month period. If the household contains more than one nonexempt adult, the adults may determine which adult must participate. The designation may be changed only once annually at the annual redetermination of eligibility. If no designation is made or if the adults cannot agree, the county agency shall designate the adult having earned the greater of the incomes, including in-kind income, during the 24-month period immediately preceding the month of application for food stamp benefits, as the adult that must participate. When there are no earnings or when earnings are identical for each adult, the county agency shall designate the adult that must participate. The person's participation in food stamp employment and training services must begin on no later than the first day of the calendar month following the date determination of eligibility for food stamps. With the county agency's consent, and to the extent of available resources, the person may voluntarily continue to participate in food stamp employment and training services for up to three additional consecutive months immediately following the end of the six-month mandatory participation period termination of food stamp benefits in order to complete the provisions of the person's employability development plan.

Sec. 29. Minnesota Statutes 1995 Supplement, section 256D.051, subdivision 6, is amended to read:

Subd. 6. [SERVICE COSTS.] Within the limits of available resources, the commissioner shall reimburse county agency expenditures for providing food stamp employment and training services including direct participation expenses and administrative costs. State food stamp employment and training funds shall be used only to pay the county agency's and food stamp employment and training service provider's actual costs of providing participant

support services, direct program services, and program administrative costs for persons who participate in such employment and training services. The average annual reimbursable cost for providing food stamp employment and training services to a recipient for whom an individualized employability development plan is not completed must not exceed $60 for the food stamp employment and training services, and $240 $340 for necessary recipient support services such as transportation or child care needed to participate in food stamp employment and training program. If an individualized employability development plan has been completed, the average annual reimbursable cost for providing food stamp employment and training services must not exceed $300 $400 for all services and costs necessary to implement the plan, including the costs of training, employment search assistance, placement, work experience, on-the-job training, other appropriate activities, the administrative and program costs incurred in providing these services, and necessary recipient support services such as tools, clothing, and transportation needed to participate in food stamp employment and training services. The county agency may expend additional county funds over and above the dollar limits of this subdivision without state reimbursement.

Sec. 30. Minnesota Statutes 1995 Supplement, section 256D.055, is amended to read:

256D.055 [COUNTY DESIGN; WORK FOCUSED PROGRAM.]

The commissioner of human services shall issue a request for proposals from counties to submit a plan for developing and implementing a county-designed program. The plan shall be for first-time applicants for aid to families with dependent children (AFDC) and family general assistance (FGA) and must emphasize the importance of becoming employed and oriented into the work force in order to become self-sufficient. The plan must target public assistance applicants who are most likely to become self-sufficient quickly with short-term assistance or services such as child care, child support enforcement, or employment and training services.

The plan may include vendor payments, mandatory job search, refocusing existing county or provider efforts, or other program features. The commissioner may approve a county plan which allows a county to use other program funding for the county work focus program in a more flexible manner. Nothing in this section shall allow payments made to the public assistance applicant to be less than the amount the applicant would have received if the program had not been implemented, or reduce or eliminate a category of eligible participants from the program without legislative approval.

The commissioner shall not approve a county plan that would have an adverse impact on the Minnesota family investment plan demonstration. If the plan is approved by the commissioner, the county may implement the plan. If the plan is approved by the commissioner, but a federal waiver is necessary to implement the plan, the commissioner shall apply for the necessary federal waivers. If by July 1, 1996, at least four counties have not proposed a work focused plan, the commissioner of human services may pursue the work first plan as provided under sections 256.7351 to 256.7359. However, a county with a work focus plan that has been approved under this section may implement the plan.

Sec. 31. Minnesota Statutes 1994, section 256D.06, is amended by adding a subdivision to read:

Subd. 8. [RECOVERY OF OVERPAYMENTS.] For recipients receiving benefits via electronic benefit transfer, if the recipient is overpaid as a result of an automated teller machine (ATM) dispensing funds in error to the recipient, the agency may recover the overpayment by immediately withdrawing funds from the recipient's electronic benefit transfer account, up to the amount of the overpayment.

Sec. 32. Minnesota Statutes 1995 Supplement, section 256D.09, subdivision 1, is amended to read:

Subdivision 1. [PRESUMPTIVE ELIGIBILITY; VENDOR PAYMENTS.] Until the county agency has determined the initial eligibility of the applicant in accordance with section 256D.07 or 256D.051, grants for emergency general assistance must be in the form of vouchers or vendor payments unless the county agency determines that a cash grant will best resolve the applicant's need for emergency assistance. Thereafter, grants of general assistance must be paid in cash, by electronic benefit transfer, or by direct deposit into the recipient's account in a financial institution, on the first day of the month, except as allowed in this section.

Sec. 33. Minnesota Statutes 1994, section 256D.10, is amended to read:

256D.10 [HEARINGS PRIOR TO REDUCTION; TERMINATION; SUSPENSION OF GENERAL ASSISTANCE GRANTS.]

No grant of general assistance except one made pursuant to section 256D.06, subdivision 2; 256D.051, subdivisions 1, paragraph (d), and 1a, paragraph (b);, or 256D.08, subdivision 2, shall be reduced, terminated or suspended unless the recipient receives notice and is afforded an opportunity to be heard prior to any action by the county agency.

Nothing herein shall deprive a recipient of the right to full administrative and judicial review of an order or determination of a county agency as provided for in section 256.045 subsequent to any action taken by a county agency after a prior hearing.

Sec. 34. Minnesota Statutes 1994, section 256D.49, subdivision 3, is amended to read:

Subd. 3. [OVERPAYMENT OF MONTHLY GRANTS.] When the county agency determines that an overpayment of the recipient's monthly payment of Minnesota supplemental aid has occurred, it shall issue a notice of overpayment to the recipient. If the person is no longer receiving Minnesota supplemental aid, the county agency may request voluntary repayment or pursue civil recovery. If the person is receiving Minnesota supplemental aid, the county agency shall recover the overpayment by withholding an amount equal to three percent of the standard of assistance for the recipient or the total amount of the monthly grant, whichever is less. For recipients receiving benefits via electronic benefit transfer, if the overpayment is a result of an automated teller machine (ATM) dispensing funds in error to the recipient, the agency may recover the overpayment by immediately withdrawing funds from the recipient's electronic benefit transfer account, up to the amount of the overpayment. Residents of nursing homes, regional treatment centers, and facilities with negotiated rates shall not have overpayments recovered from their personal needs allowance.

Sec. 35. Minnesota Statutes 1994, section 256E.08, subdivision 8, is amended to read:

Subd. 8. [REPORTING BY COUNTIES.] Beginning in calendar year 1980 each county shall submit to the commissioner of human services a financial accounting of the county's community social services fund, and other data required by the commissioner under section 256E.05, subdivision 3, paragraph (g), shall include:

(a) A detailed statement of income and expenses attributable to the fund in the preceding quarter; and

(b) A statement of the source and application of all money used for social services programs by the county during the preceding quarter, including the number of clients served and expenditures for each service provided, as required by the commissioner of human services.

In addition, each county shall submit to the commissioner of human services no later than February 15 of each year, a detailed balance sheet of the community social development fund for the preceding calendar year.

If county boards have joined or designated human service boards for purposes of providing community social services programs, the county boards may submit a joint statement or the human service board shall submit the statement, as applicable.

Sec. 36. [WAIVER AUTHORITY.]

The commissioner of human services shall seek federal waivers as necessary to implement sections 10, 11, and 22.

Sec. 37. [SEVERABILITY.]

If any provision of sections 10, 11, 22, 23, and 36 is found to be unconstitutional or void by a court of competent jurisdiction, all remaining provisions of the law shall remain valid and shall be given full effect.

Sec. 38. [REPEALER.]

Minnesota Statutes 1994, section 256.12, subdivision 22; and Minnesota Statutes 1995 Supplement, section 256.736, subdivisions 10b, 11, and 13, are repealed.

Sec. 39. [EFFECTIVE DATE.]

Section 26 is retroactive to July 1, 1995.

Section 1. [LEGISLATIVE POLICY.]

Subdivision 1. [LEGISLATIVE INTENT.] The legislature intends to redesign child care services in a way that promotes integration of child care into a coordinated system of services for families and children that recognizes the developmental need of children and supports working families.

Subd. 2. [AUTHORIZATION FOR DEVELOPING MODIFICATIONS TO CHILD CARE FUND.] The commissioner of children, families, and learning, in consultation with the commissioners of human services, finance, economic security, revenue, health, and planning, and the director of the higher education services office is authorized to develop a proposal for modifications to the child care fund to be presented to the 1997 legislature for approval. These modifications shall be based on the need to reduce child care assistance program administrative costs, promote integrated service delivery, support low-income working families, and support the essential infrastructure of a seamless service and delivery system. The proposal must, to the extent feasible, consolidate all income-based child care assistance programs into a single nonentitlement program. The proposal must be designed to make work pay, minimize the need for public assistance, share responsibility for payment of care, support parent choice, and ensure that healthy and safe child care is available.

Subd. 3. [STRUCTURE OF CHILD CARE FUND.] The proposal shall address:

(1) a capped allocation;

(2) to the extent possible, combining all child care assistance programs into a single program;

(3) equal availability to all low-income families;

(4) managing funding limitations based on service priorities and shared responsibility for payment;

(5) implementation of service priorities that focus funding available on low-income working families;

(6) encouraging transition to higher income levels without compromising continuity of care for children and with increased cost-sharing responsibilities;

(7) maximizing funding available through child care tax credits and child support orders; and

(8) promoting integration of existing early childhood, family support, and parent education programs into programs that meet the needs of working parents.

The child care fund services development program proposal shall focus on increasing the capacity of appropriate care and encouraging public and private partnerships in the child care field.

The child care fund resource and referral program proposal shall focus on continuing to assist parents in finding child care, provide technical assistance and support to providers, and promote public and private partnerships.

Sec. 2. [APPROPRIATION.]

$15,000,000 is appropriated from the general fund to the commissioner of children, families, and learning for purposes of increasing the funding to the basic sliding fee child care program under Minnesota Statutes, section 256H.03, to be available for the fiscal year ending June 30, 1997. This appropriation shall become part of the base appropriation for the biennium ending June 30, 1999.

Section 1. [256.7381] [MNJOBS PROGRAM.]

Subdivision 1. [CITATION.] Sections 256.7381 to 256.7387 may be cited as the MNJOBS program.

Subd. 2. [DEFINITIONS.] As used in sections 256.7381 to 256.7387, the following words have the meanings given them.

(a) "Recipient" means an individual who is receiving AFDC.

(b) "Caretaker" means a parent or eligible adult, including a pregnant woman, who is part of the assistance unit that has applied for or is receiving AFDC or a grant.

(c) "Child support" means a voluntary or court-ordered payment by a noncustodial parent.

(d) "Employability development plan" or "EDP" means a plan developed by the recipient, with advice from the employment advisor, for the purposes of identifying an employment goal, improving work skills through certification or education, training or skills recertification, and which addresses barriers to employment.

(e) "Employment advisor" means a provider staff person who is qualified to assist the participant to develop a job search or employability development plan, match the participant with existing job openings, refer the participant to employers, and has an extensive knowledge of employers in the area.

(f) "Financial specialist" means a program staff who is trained to explain the benefits offered under the program, determine eligibility for different assistance programs, and broker other resources.

(g) "Job network" means people that a person may contact to learn more about particular companies, inquire about job leads, or discuss occupational interests and expertise.

(h) "Participant" means a recipient who is required to participate in the MNJOBS program.

(i) "Program" means the MNJOBS program.

(j) "Provider" means an employment and training agency certified by the commissioner of economic security under section 268.871, subdivision 1.

(k) "Suitable employment" means employment which meets conditions set forth in section 256.736, subdivision 1, clause (h).

Subd. 3. [ESTABLISHING THE MNJOBS PROGRAM.] Upon the request of a county or counties, the commissioners of human services and economic security may develop and establish the MNJOBS program which requires recipients of AFDC to meet the requirements of the MNJOBS program. The purpose of the program is to:

(1) ensure that the participant is working as soon as possible;

(2) promote a greater opportunity for economic self-support, participation, and mobility in the work force; and

(3) minimize the risk for long-term welfare dependency.

Subd. 4. [COUNTY DESIGN; MNJOBS PROGRAM.] The commissioner shall issue a notice to counties to submit a plan for developing and implementing a MNJOBS program. The plan shall be consistent with provisions of the program.

The commissioner shall not approve a county plan that would have an adverse impact on the Minnesota family investment program (MFIP). However, this does not preclude MFIP counties from operating a MNJOBS program. If the plan meets the requirements of MNJOBS, the commissioner shall approve the county plan and the county may implement the plan. No county may implement a MNJOBS program without an approved modification to its local service unit plan in accordance with section 268.88.

Subd. 5. [PROGRAM ADMINISTRATION.] The program must be administered in a way that, in addition to the county agency, other sectors in the community, such as employers from the public and private sectors, not-for-profit organizations, educational and social service agencies, labor unions, and community-based organizations, are involved.

Subd. 6. [PROGRAM DESIGN.] The purpose of the program is to enable immediate labor force participation and to assist families in achieving sustained self-sufficiency. The program plan shall meet the following principles:

(1) work is the primary means of economic support;

(2) the individual's employment potential is reviewed during the development of the EDP;

(3) public aid such as cash and medical assistance, child care, child support, and other cash benefits are used to support intensive job search and immediate work; and

(4) maximum use is made of tax credits to supplement income.

Subd. 7. [WAIVER REQUESTS.] The commissioner shall request all waivers as soon as possible to implement the program. Upon obtaining all necessary federal waivers, the commissioner shall amend the state plans for the AFDC and the jobs opportunities and basic skills program (JOBS), and supportive services plan to coordinate these programs under the MNJOBS program for the approved counties, and shall seek approval of state plan amendments. The department shall request all necessary waivers from federal laws and regulations.

Subd. 8. [DUTIES OF COMMISSIONER.] In addition to any other duties imposed by law, the commissioner shall:

(1) request all waivers to implement the program;

(2) establish the MNJOBS program;

(3) provide systems development and staff training;

(4) accept and supervise the disbursement of any funds that may be provided from other sources for use in the program;

(5) direct a study to safeguard the interests of children;

(6) approve county MNJOBS plans; and

(7) allocate program funds.

Subd. 9. [DUTIES OF COUNTY AGENCY.] The county agency shall:

(1) collaborate with the commissioners of human services, economic security, and other agencies to develop, implement, and evaluate the demonstration of the MNJOBS program;

(2) operate the MNJOBS program in partnership with private and public employers, workforce councils, labor unions, and employment, educational, and social service agencies, and according to subdivision 5; and

(3) ensure that program components such as client orientation, immediate job search, job development, creation of community work experience jobs, job placements, and postplacement follow-up are implemented according to the MNJOBS program.

Subd. 10. [DUTIES OF PARTICIPANT.] To be eligible for AFDC, a participant shall cooperate with the county agency, the provider, and the participant's employer in all aspects of the program.

Sec. 2. [256.7382] [PROGRAM PARTICIPANTS; PROGRAM EXPECTATIONS.]

All recipients selected for participation are expected to meet the requirements under the MNJOBS program.

Caretakers who are exempt from MNJOBS may volunteer to participate in the MNJOBS program. The caretaker will be treated as a mandatory participant once an EDP is signed.

The MNJOBS program shall supersede the STRIDE program in counties that operate a MNJOBS program.

Sec. 3. [256.7383] [PROGRAM REQUIREMENTS.]

Subdivision 1. [NOTIFICATION OF PROGRAM.] At the time of the face-to-face interview, the AFDC applicant or recipient being recertified shall be given a written referral to the MNJOBS orientation and an appointment date for the EDP. Orientation must be completed within ten days of the face-to-face interview. The applicant or recipient shall also be given the following information:

(1) notification that, as part of continued receipt of AFDC, recipients are required to attend orientation, to be followed immediately by a job search;

(2) the program provider, the date, time, and location of the scheduled program orientation;

(3) the procedures for qualifying for and receiving benefits under the program;

(4) the immediate availability of supportive services, including, but not limited to, child care, transportation, medical assistance, and other work-related aid;

(5) the rights, responsibilities, and obligations of participants in the program, including, but not limited to, the grounds for exemptions and deferrals, the consequences for refusing or failing to participate fully, and the appeal process; and

(6) a determination of whether they are exempt from job search activity.

Subd. 2. [PROGRAM ORIENTATION.] The county agency or the provider must give a face-to-face orientation regarding the program to the applicant within ten days after the date of face-to-face interview. The orientation must be designed to inform the recipient of:

(1) the importance of locating and obtaining a job as soon as possible;

(2) benefits to be provided to support work;

(3) how other supportive services such as medical assistance, child care, transportation, and other work-related aid shall be available to support job search and work;

(4) the consequences for failure without good cause to comply with program requirements; and

(5) the appeal process.

Subd. 3. [EMPLOYMENT DEVELOPMENT PLAN.] At the end of orientation, the provider must assign an employment advisor and a financial specialist to the recipient. With advice from the employment advisor, the recipient must develop an employment development plan based on existing job markets, prior employment, work experience, and transferable work skills, unless exempt under subdivision 7. The plan must require caretakers to participate in initial job search activities for up to four consecutive weeks for at least 30 hours per week and accept suitable employment if offered during participation in MNJOBS. The job search activities must commence within 30 days of the face-to-face interview.

Subd. 4. [JOB SEARCH ACTIVITIES.] The following job search activities may be included in the job search plan:

(a) Job clubs, which shall consist of both of the following:

(1) job search workshops, which shall be group training sessions where participants learn various job finding skills, including training in basic job seeking skills, job development skills, job interviewing skills, understanding employer requirements and expectations, and how to enhance self-esteem, self-image, and confidence; and

(2) supervised job search, which shall include, but not be limited to, access to phone banks in a clean and well-lighted place, job orders, direct referrals to employers, or other organized methods of seeking work which are overseen, reviewed, and critiqued by a trained employment professional. The amount and type of activity required during this supervised job search period shall be determined by the employment and training service provider and the participant, based on the participant's employment history and need for supportive services, and shall be consistent with regulations developed by the employment and service training provider.

(b) Unsupervised job search, where the individual shall seek work in the individual's own way, and make periodic progress reports no less frequently than every two weeks to the employment and training service provider.

(c) Job placement, which shall include, but not be limited to, referrals to jobs listed by employers.

(d) Job development, which shall be active assistance in seeking employment provided to a participant by a training employment professional on a one-to-one basis.

(e) Employment counseling, which shall be counseling aimed at helping a person reach an informed decision on an appropriate employment goal.

Subd. 5. [ACTIVITIES FOLLOWING INTENSE JOB SEARCH ACTIVITIES.] (a) On completion of initial job search activities, or determination that those services are not required, the participant shall continue in additional job search

activities and be assigned to one or more of the following activities as needed to attain the participant's employment goal:

(1) job training, which shall include, but is not limited to, training employer-specific jobs skills in a classroom or on-site setting, including training provided by local private industry council programs;

(2)(i) community work experience, which shall include work for a public or nonprofit agency that helps to provide basic job skills; enhance existing job skills in a position related to a participant's experience, training, or education; or provide a needed community service. Community work experience will be operated in accordance with section 256.737; and

(ii) the participant shall continue to seek employment during the community work experience assignment and may request job search services;

(3) adult basic education, which shall include reading, writing, arithmetic, high school proficiency or general education development certificate instruction, and English-as-a-second-language (ESL), including vocational ESL, to the extent necessary to attain the participant's employment goal. Vocational ESL shall be intensive instruction in English for non-English-speaking participants, coordinated with specific job training; or

(4) college and community college education, when that education provides employment skills training that can reasonably be expected to lead to employment and be limited to two years.

(b) The assignment to one or more of the program activities as required in paragraph (a), shall be based on the employment development plan developed after an assessment. The employment plan shall be based, at a minimum, on consideration of the individual's existing education level, employment experience and goals, available program resources, and local labor market opportunities.

(c) A participant who lacks basic literacy or mathematics skills, a high school diploma or general education development certificate, or English language skills, may be assigned to participate in adult basic education, as appropriate and necessary for achievement of the individual's employment goal.

(d) Except as provided in paragraph (a), clause (4), a participant shall not be assigned to a program component for a time that exceeds one year, or with respect to classroom education or training, one academic year. The one-year period may be extended, one time only, for a period not to exceed six months if it is reasonable to expect that the component will be completed within the extended period and the individual has been unable to complete the component due to any of the following circumstances:

(1) the individual's basic skills needs required more class time than was estimated at the commencement of the component;

(2) the school or college did not offer required classes in a sequence that permitted completion of the component program within the prescribed time period; or

(3) the individual had a personal or family crisis that resulted in the inability to complete the component without the additional six-month period of attendance.

(e) Participation in activities assigned pursuant to this section may be sequential or concurrent. The employment and training service provider may require concurrent participation in the assigned activities if it is appropriate to the participant's abilities, consistent with the participant's employment development plan, and the activities can be concurrently scheduled. However, to the extent possible, activities should be full time. The combined hours of participation in assigned concurrent activities shall not exceed 32 hours per week for an individual who has primary responsibility for personally providing care to a child under six years of age or 40 hours per week for any other individual.

Subd. 6. [IMMEDIATE JOB SEARCH.] A recipient must be required to begin job search activities within 30 days after the face-to-face interview for at least 30 hours per week for up to four weeks, unless exempt under subdivision 7 or deferred under subdivision 9. For a recipient who is working at least 20 hours per week, job search shall consist of 12 hours per week for up to eight weeks. The recipient is required to carry out the other activities under the EDP developed under subdivision 3.

Subd. 7. [EXEMPTION CATEGORIES.] The recipient will be exempted from mandatory participation in all activities except orientation, if the recipient belongs to any of the following groups:

(1) caretakers under age 20 who have not completed a high school education and are attending high school on a full-time basis;

(2) individuals who are age 60 or older;

(3) individuals who are suffering from a professionally certified permanent or temporary illness, injury, or incapacity which is expected to continue for more than 30 days and which prevents the person from obtaining or retaining employment;

(4) caretakers whose presence in the home is needed because of illness or incapacity of another member in the household;

(5) women who are pregnant, if it has been medically verified that the child is expected to be born within the next six months;

(6) caretakers or other caretaker relatives of a child under the age of three years who personally provide full-time care for the child. In AFDC-UP cases, only one parent or other relative may qualify for this exemption;

(7) individuals employed at least 30 hours per week;

(8) individuals for whom participation would require a round trip commuting time by available transportation of more than two hours, excluding transporting of children for child care; or

(9) individuals under such duress that they are incapable of participating in the program, as determined by the county.

Subd. 8. [AFDC-UP RECIPIENTS.] All recipients under the AFDC-UP program will be required to meet the requirements in the community work experience program under section 256.737.

Subd. 9. [EMPLOYABILITY DEVELOPMENT PLAN.] At the discretion and approval of the employment advisor, the recipient may be deferred from the requirement to conduct at least 30 hours of job search per week for up to four consecutive weeks, if during the development of the EDP, the recipient is determined to:

(1) be within 12 months of completing a post-secondary training program that is likely to lead to employment. The recipient must agree to develop and carry out an EDP which includes jobs search immediately after the training is completed;

(2) be in treatment for chemical dependency, be a victim of domestic abuse, or be homeless, provided that the recipient agrees to develop an EDP, and immediately follow through with the activities in the EDP. The EDP must include specific outcomes that the recipient must achieve for the duration of the EDP and activities which are needed to address the issues identified. Under this clause, the recipient may be deferred for up to eight weeks;

(3) individuals for whom lack of proficiency in English is a barrier to employment, provided such individuals are successfully participating in an ESL program. Caretakers can be deferred for ESL for no longer than 12 months. The EDP shall establish an education plan which assigns caretakers to ESL programs available in the community which provide the quickest advancement of the caretaker's language skills; or

(4) individuals in need of refresher courses for purposes of obtaining professional certification or licensure and the plans are approved in the EDP.

Subd. 10. [DUTY TO REPORT.] The participant must immediately inform the provider regarding any changes related to the participant's employment status.

Sec. 4. [256.7384] [COMMUNITY WORK EXPERIENCE PROGRAM FOR SINGLE-PARENT FAMILIES.]

To the extent that funds are available or appropriated, AFDC recipients who are participating in the MNJOBS program and are not working in unsubsidized employment within 24 months shall be required to participate in a community work experience program in accordance with section 256.737.

Sec. 5. [256.7385] [MOVE TO A DIFFERENT COUNTY.]

If the recipient who is required to participate in the MNJOBS program moves to a different county, the benefits and enabling services agreed upon in the self-sufficiency agreement shall be provided by the pilot county where the recipient originated, so long as the move was part of the job search or EDP. If the recipient is moving to a different county and has failed to comply with the requirements of the MNJOBS program, the recipient will not be eligible for AFDC for at least six months from the date of the move.

Sec. 6. [256.7386] [SANCTIONS AND APPEAL PROCESS.]

The same sanctions and appeals imposed and available to recipients of AFDC under this chapter shall be imposed and available to participants in the MNJOBS program.

Sec. 7. [256.7387] [BLOCK GRANT.]

(a) [FUNDING.] Funds allocated for food stamp employment and training, employment and training STRIDE, and MFIP shall be combined for the county to administer MNJOBS, MFIP, and food stamp employment and training programs. The initial food stamp employment and training allocation shall be available irrespective of how many food stamp employment and training participants are referred or available for activities.

(b) [LEVERAGING GRANT AMOUNT TO SECURE OTHER FUNDS.] The county agency or the provider in cooperation with the commissioner may leverage the grant amount to secure other funds from employers, foundations, and the community for the purpose of developing additional components to benefit children and improve the program.

(c) [TRANSFER OF ACCESS CHILD CARE FUNDS.] Any unencumbered ACCESS funds shall be transferred to the counties' base sliding fee fund to be used to provide child care to AFDC recipients beyond the one-year transition period.

Sec. 8. [WAIVER AUTHORITY.]

The commissioner of human services is authorized to seek all necessary waivers to implement sections 1 to 7. The waiver requests shall be submitted by the commissioner as part of the federal waiver package authorized by Laws 1995, chapter 178, article 2, section 46."

Delete the title and insert:

"A bill for an act relating to human services; directing the commissioner to present a proposal to modify the Minnesota family investment plan program for statewide implementation; allowing recovery of ATM overpayments; defining Intensive ESL; adding provisions for family support agreement; creating a new intensive employment program for recipients of assistance; changing residency requirements for MA; changing provisions in MFIP, AFDC, GAMC, food stamp employment and training; requiring a proposal for modifying the child care fund; crediting the MNJOBS program; appropriating money; amending Minnesota Statutes 1994, sections 256.031, by adding a subdivision; 256.033, by adding a subdivision; 256.034, by adding a subdivision; 256.035, subdivisions 1 and 6a; 256.73, subdivision 1, and by adding subdivisions; 256.736, subdivisions 1a, 3b, 4, and 12; 256B.056, subdivision 1; 256D.06, by adding a subdivision; 256D.10; 256D.49, subdivision 3; and 256E.08, subdivision 8; Minnesota Statutes 1995 Supplement, sections 256.0475, by adding a subdivision; 256.048, subdivisions 1, 6, and 13; 256.73, subdivision 8; 256.736, subdivisions 10, 10a, and 14; 256.81; 256D.02, subdivision 12a; 256D.03, subdivisions 2, 2a, and 3; 256D.05, subdivision 1; 256D.051, subdivisions 1 and 6; 256D.055; and 256D.09, subdivision 1; proposing coding for new law in Minnesota Statutes, chapter 256; repealing Minnesota Statutes 1994, section 256.12, subdivision 22; Minnesota Statutes 1995 Supplement, section 256.736, subdivisions 10b, 11, and 13."

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.

Trimble from the Committee on Regulated Industries and Energy to which was referred:

H. F. No. 2615, A bill for an act relating to telecommunications; ensuring that all providers of telephone service can provide intrastate inter-LATA long distance service; amending Minnesota Statutes 1994, section 237.60, subdivision 3; proposing coding for new law in Minnesota Statutes, chapter 237.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. [237.80] [INTEREXCHANGE TELEPHONE SERVICE.]

Subdivision 1. [DEFINITION, FINDINGS, AND PURPOSE.] (a) For purposes of this section, "act" means the federal Telecommunications Act of 1996, Public Law Number 104-104.

(b) The act establishes procedures whereby former Bell Operating Companies or their affiliates may obtain Federal Communications Commission authorization to provide intrastate interLATA telecommunications services and to promote the development of fair and reasonable competition. The legislature finds that it is necessary and appropriate, to the extent possible, to maintain consistency between the policy of the state of Minnesota and federal policy as reflected in the act.

(c) The purpose of this section is to facilitate the entry of the former Bell Operating Company into the interLATA market and to further promote the development of fair and reasonable competition in the telecommunications industry in Minnesota.

Subd. 2. [CONSULTATION WITH THE FCC.] Any investigation or proceeding by the Minnesota public utilities commission for the purpose of verifying compliance with the competitive checklist requirements of section 271(c) of the act must be completed by the commission and the resulting certification provided to the Federal Communications Commission within 90 days after receipt of a request for verification from the Federal Communications Commission."

Delete the title and insert:

"A bill for an act relating to telecommunications; regulating intrastate interLATA telecommunications services; proposing coding for new law in Minnesota Statutes, chapter 237."

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. 2622, A bill for an act relating to capital improvements; appropriating money to construct the Battle Point historic site; authorizing the sale of state bonds; amending Laws 1994, chapter 643, section 19, subdivision 8, as amended.

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.

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

H. F. No. 2624, A bill for an act relating to health; extending the repealer of the prohibition on exclusive relationships; amending Minnesota Statutes 1994, section 62Q.09, subdivision 5.

Reported the same back with the following amendments:

Page 1, after line 5, insert:

"Section 1. Minnesota Statutes 1994, section 62J.04, subdivision 1, is amended to read:

Subdivision 1. [LIMITS ON THE RATE OF GROWTH COST CONTAINMENT GOALS.] (a) The commissioner of health shall set annual limits on the rate of growth of cost containment goals for public and private spending on health care services for Minnesota residents, as provided in paragraph (b). The limits on growth cost containment goals must be set at levels the commissioner determines to be realistic and achievable but that will reduce the rate of growth in health care spending by at least ten percent per year for the next five years. The commissioner shall set limits on growth cost containment goals based on available data on spending and growth trends, including data from group purchasers, national data on public and private sector health care spending and cost trends, and trend information from other states.

(b) The commissioner shall set the following annual limits on the rate of growth of cost containment goals for public and private spending on health care services for Minnesota residents:

(1) for calendar year 1994, the rate of growth cost containment goal must not exceed the change in the regional consumer price index for urban consumers for calendar year 1993 plus 6.5 percentage points;

(2) for calendar year 1995, the rate of growth cost containment goal must not exceed the change in the regional consumer price index for urban consumers for calendar year 1994 plus 5.3 percentage points;

(3) for calendar year 1996, the rate of growth cost containment goal must not exceed the change in the regional consumer price index for urban consumers for calendar year 1995 plus 4.3 percentage points;

(4) for calendar year 1997, the rate of growth cost containment goal must not exceed the change in the regional consumer price index for urban consumers for calendar year 1996 plus 3.4 percentage points; and

(5) for calendar year 1998, the rate of growth cost containment goal must not exceed the change in the regional consumer price index for urban consumers for calendar year 1997 plus 2.6 percentage points.

The commissioner shall adjust the growth limit cost containment goal set for calendar year 1995 to recover savings in health care spending required for the period July 1, 1993, to December 31, 1993.

(c) The commissioner shall publish:

(1) the projected limits cost containment goal in the State Register by April 15 of the year immediately preceding the year in which the limit cost containment goal will be effective except for the year 1993, in which the limit cost containment goal shall be published by July 1, 1993;

(2) the quarterly change in the regional consumer price index for urban consumers; and

(3) the health care financing administration forecast for total growth in the national health care expenditures. In setting an annual limit the cost containment goals, the commissioner is exempt from the rulemaking requirements of chapter 14. The commissioner's decision on an annual limit the cost containment goals is not appealable.

Sec. 2. Minnesota Statutes 1995 Supplement, section 62J.04, subdivision 1a, is amended to read:

Subd. 1a. [ADJUSTED GROWTH LIMITS AND ENFORCEMENT COST CONTAINMENT GOALS.] (a) The commissioner shall publish the final adjusted growth limit cost containment goal in the State Register by January 31 of the year that the expenditure limit cost containment goal is to be in effect. The adjusted limit cost containment goal must reflect the actual regional consumer price index for urban consumers for the previous calendar year, and may deviate from the previously published projected growth limits cost containment goal to reflect differences between the actual regional consumer price index for urban consumers and the projected Consumer Price Index for urban consumers. The commissioner shall report to the legislature by February 15 of each year on the implementation of the growth limits cost containment goal. This annual report shall describe the differences between the projected increase in health care expenditures, the actual expenditures based on data collected, and the impact and validity of growth limits cost containment goals within the overall health care reform strategy.

(b) The commissioner, in consultation with the Minnesota health care commission, shall research and include in the annual report required in paragraph (a) for 1996, recommendations regarding the implementation of growth limits for health plan companies and providers. The commissioner shall:

(1) consider both spending and revenue approaches and report on the implementation of the interim limits as defined in sections 62J.041 and 62J.042;

(2) make recommendations regarding the enforcement mechanism and consider mechanisms to adjust future growth limits as well as mechanisms to establish financial penalties for noncompliance;

(3) address the feasibility of systemwide limits imposed on all integrated service networks; and

(4) make recommendations on the most effective way to implement growth limits on the fee-for-service system in the absence of a regulated all-payer system.

(c) The commissioner shall enforce limits on growth in spending for health plan companies and revenues for providers. If the commissioner determines that artificial inflation or padding of costs or prices has occurred in anticipation of the implementation of growth limits, the commissioner may adjust the base year spending totals or growth limits or take other action to reverse the effect of the artificial inflation or padding.

(d) The commissioner shall impose and enforce overall limits on growth in spending for health plan companies, with adjustments for changes in enrollment, benefits, severity, and risks. If a health plan company exceeds the growth limits, the commissioner may impose financial penalties up to the amount exceeding the applicable growth limit.

Sec. 3. Minnesota Statutes 1995 Supplement, section 62J.04, subdivision 3, is amended to read:

Subd. 3. [COST CONTAINMENT DUTIES.] After obtaining the advice and recommendations of the Minnesota health care commission, the commissioner shall:

(1) establish statewide and regional limits on growth in cost containment goals for total health care spending under this section, and collect data as described in sections 62J.37 to 62J.41 to monitor statewide compliance with the spending limits, and take action to achieve compliance to the extent authorized by the legislature achievement of the cost containment goals;

(2) divide the state into no fewer than four regions, with one of those regions being the Minneapolis/St. Paul metropolitan statistical area but excluding Chisago, Isanti, Wright, and Sherburne counties, for purposes of fostering the development of regional health planning and coordination of health care delivery among regional health care systems and working to achieve spending limits the cost containment goals;

(3) provide technical assistance to regional coordinating boards;

(4) monitor the quality of health care throughout the state and take action as necessary to ensure an appropriate level of quality;

(5) issue recommendations regarding uniform billing forms, uniform electronic billing procedures and data interchanges, patient identification cards, and other uniform claims and administrative procedures for health care providers and private and public sector payers. In developing the recommendations, the commissioner shall review the work of the work group on electronic data interchange (WEDI) and the American National Standards Institute (ANSI) at the national level, and the work being done at the state and local level. The commissioner may adopt rules requiring the use of the Uniform Bill 82/92 form, the National Council of Prescription Drug Providers (NCPDP) 3.2 electronic version, the Health Care Financing Administration 1500 form, or other standardized forms or procedures;

(6) undertake health planning responsibilities as provided in section 62J.15;

(7) authorize, fund, or promote research and experimentation on new technologies and health care procedures;

(8) within the limits of appropriations for these purposes, administer or contract for statewide consumer education and wellness programs that will improve the health of Minnesotans and increase individual responsibility relating to personal health and the delivery of health care services, undertake prevention programs including initiatives to improve birth outcomes, expand childhood immunization efforts, and provide start-up grants for worksite wellness programs; and

(9) undertake other activities to monitor and oversee the delivery of health care services in Minnesota with the goal of improving affordability, quality, and accessibility of health care for all Minnesotans; and

(10) make the cost containment goal data available to the public in a consumer-oriented manner.

Sec. 4. Minnesota Statutes 1995 Supplement, section 62J.041, is amended to read:

62J.041 [INTERIM HEALTH PLAN COMPANY EXPENDITURE LIMITS COST CONTAINMENT GOALS.]

Subdivision 1. [DEFINITIONS.] (a) For purposes of this section, the following definitions apply.

(b) "Health plan company" has the definition provided in section 62Q.01.

(c) "Total expenditures" means incurred claims or expenditures on health care services, administrative expenses, charitable contributions, and all other payments made by health plan companies out of premium revenues.

(d) "Net expenditures" means total expenditures minus exempted taxes and assessments and payments or allocations made to establish or maintain reserves.

(e) "Exempted taxes and assessments" means direct payments for taxes to government agencies, contributions to the Minnesota comprehensive health association, the medical assistance provider's surcharge under section 256.9657, the MinnesotaCare provider tax under section 295.52, assessments by the health coverage reinsurance association, assessments by the Minnesota life and health insurance guaranty association, assessments by the Minnesota risk adjustment association, and any new assessments imposed by federal or state law.

(f) "Consumer cost-sharing or subscriber liability" means enrollee coinsurance, copayment, deductible payments, and amounts in excess of benefit plan maximums.

Subd. 2. [ESTABLISHMENT.] The commissioner of health shall establish limits on cost containment goals for the increase in net expenditures by each health carrier plan company for calendar years 1994, 1995, 1996, and 1997. The limits cost containment goals must be the same as the annual rate of growth in cost containment goals for health care spending established under section 62J.04, subdivision 1, paragraph (b). Health plan companies that are affiliates may elect to meet one combined expenditure limit cost containment goal.

Subd. 3. [DETERMINATION OF EXPENDITURES.] Health plan companies shall submit to the commissioner of health, by April 1, 1994, for calendar year 1993; April 1, 1995, for calendar year 1994; April 1, 1996, for calendar year 1995; April 1, 1997, for calendar year 1996; and April 1, 1998, for calendar year 1997 all information the commissioner determines to be necessary to implement and enforce this section. The information must be submitted in the form specified by the commissioner. The information must include, but is not limited to, expenditures per member per month or cost per employee per month, and detailed information on revenues and reserves. The commissioner, to the extent possible, shall coordinate the submittal of the information required under this section with the submittal of the financial data required under chapter 62J, to minimize the administrative burden on health plan companies. The commissioner may adjust final expenditure figures for demographic changes, risk selection, changes in basic benefits, and legislative initiatives that materially change health care costs, as long as these adjustments are consistent with the methodology submitted by the health plan company to the commissioner, and approved by the commissioner as actuarially justified. The methodology to be used for adjustments and the election to meet one expenditure limit cost containment goal for affiliated health plan companies must be submitted to the commissioner by September 1, 1994. Community integrated service networks may submit the information with their application for licensure. The commissioner shall also accept changes to methodologies already submitted. The adjustment methodology submitted and approved by the commissioner must apply to the data submitted for calendar years 1994 and 1995. The commissioner may allow changes to accepted adjustment methodologies for data submitted for calendar years 1996 and 1997. Changes to the adjustment methodology must be received by September 1, 1996, and must be approved by the commissioner.

Subd. 4. [MONITORING OF RESERVES.] (a) The commissioners of health and commerce shall monitor health plan company reserves and net worth as established under chapters 60A, 62C, 62D, 62H, and 64B, with respect to the health plan companies that each commissioner respectively regulates to ensure that assess the degree to which savings resulting from the establishment of expenditure limits cost containment goals are passed on to consumers in the form of lower premium rates.

(b) Health plan companies shall fully reflect in the premium rates the savings generated by the expenditure limits cost containment goals. No premium rate, currently reviewed by the departments of health or commerce, may be approved for those health plan companies unless the health plan company establishes to the satisfaction of the commissioner of commerce or the commissioner of health, as appropriate, that the proposed new rate would comply with this paragraph.

(c) Health plan companies, except those licensed under chapter 60A to sell accident and sickness insurance under chapter 62A, shall annually before the end of the fourth fiscal quarter provide to the commissioner of health or commerce, as applicable, a projection of the level of reserves the company expects to attain during each quarter of the following fiscal year. These health plan companies shall submit with required quarterly financial statements a calculation of the actual reserve level attained by the company at the end of each quarter including identification of the sources of any significant changes in the reserve level and an updated projection of the level of reserves the health plan company expects to attain by the end of the fiscal year. In cases where the health plan company has been given a certificate to operate a new health maintenance organization under chapter 62D, or been licensed as an integrated service network or community integrated service network under chapter 62N, or formed an affiliation with one of these organizations, the health plan company shall also submit with its quarterly financial statement, total enrollment at the beginning and end of the quarter and enrollment changes within each service area of the new organization. The reserve calculations shall be maintained by the commissioners as trade secret information, except to the extent that such information is also required to be filed by another provision of state law and is not treated as trade secret information under such other provisions.

(d) Health plan companies in paragraph (c) whose reserves are less than the required minimum or more than the required maximum at the end of the fiscal year shall submit a plan of corrective action to the commissioner of health or commerce under subdivision 7.

(e) The commissioner of commerce, in consultation with the commissioner of health, shall report to the legislature no later than January 15, 1995, as to whether the concept of a reserve corridor or other mechanism for purposes of monitoring reserves is adaptable for use with indemnity health insurers that do business in multiple states and that must comply with their domiciliary state's reserves requirements.

Subd. 5. [NOTICE.] The commissioner of health shall publish in the State Register and make available to the public by July 1, 1995, a list of all health plan companies that exceeded their expenditure limit cost containment goal for the 1994 calendar year. The commissioner shall publish in the State Register and make available to the public by July 1, 1996, a list of all health plan companies that exceeded their combined expenditure limit cost containment goal for calendar years 1994 and 1995. The commissioner shall notify each health plan company that the commissioner has determined that the health plan company exceeded its expenditure limit cost containment goal, at least 30 days before publishing the list, and shall provide each health plan company with ten days to provide an explanation for exceeding the expenditure limit cost containment goal. The commissioner shall review the explanation and may change a determination if the commissioner determines the explanation to be valid.

Subd. 6. [ASSISTANCE BY THE COMMISSIONER OF COMMERCE.] The commissioner of commerce shall provide assistance to the commissioner of health in monitoring health plan companies regulated by the commissioner of commerce. The commissioner of commerce, in consultation with the commissioner of health, shall enforce compliance with expenditure limits for those health plan companies.

Subd. 7. [ENFORCEMENT.] (a) The commissioners of health and commerce shall enforce the reserve limits referenced in subdivision 4, with respect to the health plan companies that each commissioner respectively regulates. Each commissioner shall require health plan companies under the commissioner's jurisdiction to submit plans of corrective action when the reserve requirement is not met. The plan of correction must address the following:

(1) actuarial assumptions used in forecasting future financial results;

(2) trend assumptions used in setting future premiums;

(3) demographic, geographic, and private and public sector mix of the population covered by the health plan company;

(4) proposed rate increases or decreases;

(5) growth limits applied under section 62J.04, subdivision 1, paragraph (b); and

(6) other factors deemed appropriate by the health plan company or commissioner.

If the health plan company's reserves exceed the required maximum, the plan of correction shall address how the health plan company will come into compliance and set forth a timetable within which compliance would be achieved. The plan of correction may propose premium refunds, credits for prior premiums paid, policyholder dividends, or any combination of these or other methods which will benefit enrollees and/or Minnesota residents and are such that the reserve requirements can reasonably be expected to be met. The commissioner's evaluation of the plan of correction must consider:

(1) whether implementation of the plan would provide the company with an unfair advantage in the market;

(2) the extent to which the reserve excess was created by any movement of enrolled persons to another organization formed by the company;

(3) whether any proposed premium refund, credit, and/or dividend represents an equitable allocation to policyholders covered in prior periods as determined using sound actuarial practice; and

(4) any other factors deemed appropriate by the applicable commissioner.

(b) The plan of correction is subject to approval by the commissioner of health or commerce, as applicable. If such a plan is not approved by the applicable commissioner, the applicable commissioner shall enter an order stating the steps that the health plan company must take to come into compliance. Within 30 days of the date of such order, the health plan company must file a notice of appeal with the applicable commissioner or comply with the commissioner's order. If an appeal is filed, such appeal is governed by chapter 14.

(c) Health plan companies that exceed the expenditure limits based on two-year average expenditure data (1994 and 1995, 1996 and 1997) shall be required by the appropriate commissioner to pay back the amount exceeding the expenditure limit through an assessment on the health plan company. A health plan company may appeal the commissioner's order to pay back the amount exceeding the expenditure limit by mailing to the commissioner a written notice of appeal within 30 days from the date the commissioner's order was mailed. The contested case and judicial review provisions of chapter 14 apply to the appeal. The health plan company shall pay the amount specified by the commissioner either to the commissioner or into an escrow account until final resolution of the appeal. Notwithstanding sections 3.762 to 3.765, each party is responsible for its own fees and expenses, including attorneys fees, for the appeal. Any amount required to be paid back under this section shall be deposited in the health care access fund. The appropriate commissioner may approve a different repayment method to take into account the health plan company's financial condition. Health plan companies shall comply with the limits but shall also guarantee that their contractual obligations are met. Health plan companies are prohibited from meeting spending obligations by increasing subscriber liability, including copayments and deductibles and amounts in excess of benefit plan maximums.

Sec. 5. Minnesota Statutes 1995 Supplement, section 62J.042, subdivision 2, is amended to read:

Subd. 2. [ESTABLISHMENT.] The commissioner of health shall establish limits on cost containment goals for the increase in revenue for each health care provider, for calendar years 1994, 1995, 1996, and 1997. The limits goals must be the same as the annual rate of goals for growth in health care spending established under section 62J.04, subdivision 1, paragraph (b). The commissioner may adjust final revenue figures for case mix complexity, payer mix, out-of-period settlements, certain taxes and assessments including the MinnesotaCare provider tax and provider surcharge, any new assessments imposed by federal or state law, research and education costs, donations, grants, and legislative initiatives that materially change health care revenues, as long as these adjustments are consistent with the methodology submitted by the health care provider to the commissioner, and approved by the commissioner as actuarially justified. The methodology to be used for adjustments must be submitted to the commissioner by September 1, 1994. The commissioner shall also accept changes to methodologies already submitted. The adjustment methodology submitted and approved by the commissioner must apply to the data submitted for calendar years 1994 and 1995. The commissioner may allow changes to accepted adjustment methodologies for data submitted for calendar years 1996 and 1997. Changes to the adjustment methodology must be received by September 1, 1996, and must be approved by the commissioner.

Sec. 6. Minnesota Statutes 1995 Supplement, section 62J.042, subdivision 3, is amended to read:

Subd. 3. [MONITORING OF REVENUE.] The commissioner of health shall monitor health care provider revenue, to ensure that assess the degree to which savings resulting from the establishment of revenue limits cost containment goals are passed on to consumers in the form of lower charges. The commissioner shall monitor hospital revenue by

examining net inpatient revenue per adjusted admission and net outpatient revenue per outpatient visit. The commissioner shall monitor the revenue of physicians and other health care providers by examining revenue per patient per year or revenue per encounter. For purposes of this section, definitions related to the implementation of limits cost containment goals for providers other than hospitals are included in Minnesota Rules, chapter 4650, and definitions related to the implementation of limits cost containment goals for hospitals are included in Minnesota Rules, chapter 4651. If this information is not available, the commissioner may enforce an annual limit on the rate of growth of the provider's current fees.

Sec. 7. Minnesota Statutes 1995 Supplement, section 62J.042, subdivision 4, is amended to read:

Subd. 4. [MONITORING AND ENFORCEMENT.] Health care providers shall submit to the commissioner of health, in the form and at the times required by the commissioner, all information the commissioner determines to be necessary to implement and enforce this section. The commissioner shall regularly audit all health clinics employing or contracting with over 100 physicians. The commissioner shall also audit, at times and in a manner that does not interfere with delivery of patient care, a sample of smaller clinics and other health care providers. Providers that exceed revenue limits based on two-year average revenue data shall be required by the commissioner to pay back the amount exceeding the revenue limits during the following calendar year.

Pharmacists may adjust their revenue figures for increases in drug product costs that are set by the manufacturer. The commissioner shall consult with pharmacy groups, including pharmacies, wholesalers, drug manufacturers, health plans, and other interested parties, to determine the methodology for measuring and implementing the interim growth limits cost containment goals while taking into account the adjustments for drug product costs.

The commissioner shall monitor providers meeting the growth limits cost containment goals based on their current fees on an annual basis. The fee charged for each service must be based on a weighted average across 12 months and compared to the weighted average for the previous 12-month period. The percentage increase in the average fee from 1993 to 1994, and from 1994 to 1995 is subject to the growth limits cost containment goals established under section 62J.04, subdivision 1, paragraph (b). The percentage increase in the average fee from 1995 to 1996, and from 1996 to 1997 is subject to the change in the regional consumer price index for urban consumers for the previous year published in the State Register in January of the year that the growth limit cost containment goal is in effect. The audit monitoring process may include a review of the provider's monthly fee schedule, and a random claims analysis for the provider during different parts of the year to monitor variations in fees. The commissioner shall require providers that exceed growth limits, based on annual fees, to pay back during the following calendar year the amount of fees received exceeding the limit.

The commissioner shall notify each provider that has exceeded its revenue or fee limit, at least 30 days before taking action, and shall provide each provider with ten days to provide an explanation for exceeding the revenue or fee limit. The commissioner shall review the explanation and may change a determination if the commissioner determines the explanation to be valid.

The commissioner may approve a different repayment schedule for a health care provider that takes into account the provider's financial condition.

A provider may appeal the commissioner's order to pay back the amount exceeding the revenue or fee limit by mailing a written notice of appeal to the commissioner within 30 days after the commissioner's order was mailed. The contested case and judicial review provisions of chapter 14 apply to the appeal. The provider shall pay the amount specified by the commissioner either to the commissioner or into an escrow account until final resolution of the appeal. Notwithstanding sections 3.762 to 3.765, each party is responsible for its own fees and expenses, including attorneys fees, for the appeal. Any amount required to be paid back under this section shall be deposited in the health care access fund."

Page 1, line 6, delete "Section 1." and insert "Sec. 8."

Page 1, line 10, delete "2" and insert "9"

Page 1, line 11, delete "1" and insert "8"

Delete the title and insert:

"A bill for an act relating to health; providing cost containment goals for health care; extending the repealer of the prohibition on exclusive relationships; amending Minnesota Statutes 1994, sections 62J.04, subdivision 1; and 62Q.09, subdivision 5; Minnesota Statutes 1995 Supplement, sections 62J.04, subdivisions 1a and 3; 62J.041; and 62J.042, subdivisions 2, 3, and 4."

With the recommendation that when so amended the bill pass.

The report was adopted.

Wenzel from the Committee on Agriculture to which was referred:

H. F. No. 2638, A bill for an act relating to cooperatives; regulating the filings of foreign cooperatives; regulating finance charges imposed by agricultural cooperatives on goods and services; making a technical change; amending Minnesota Statutes 1994, sections 303.02, subdivision 2; and 308A.135, subdivision 3; proposing coding for new law in Minnesota Statutes, chapter 334.

Reported the same back with the following amendments:

Page 2, delete section 3 and insert:

"Sec. 3. Minnesota Statutes 1994, section 308A.165, subdivision 2, is amended to read:

Subd. 2. [ADOPTION AND AMENDMENT.] (a) Except as provided in paragraph (b), the bylaws of a cooperative may be adopted or amended at a regular or special members' meeting if:

(1) the notice of the meeting contains a summary statement of the proposed bylaws or amendment;

(2) a quorum is registered as being present or represented by mail vote if authorized by the board; and

(3) the bylaws or amendment is approved by a majority of the votes cast, or for a cooperative with articles or bylaws requiring more than majority approval or other conditions for approval, the bylaws or amendment is approved by a proportion of the votes cast or a number of the total members as required by the articles or bylaws and the conditions for approval in the articles or bylaws have been satisfied.

(b) Until the first annual members' meeting, the majority of directors may adopt and amend bylaws for the cooperative that are consistent with subdivision 3 if the cooperative does not have any members or stockholders with voting rights.

Sec. 4. [334.062] [AGRICULTURAL COOPERATIVES AND FARM SUPPLY.]

Notwithstanding sections 334.01 and 334.011, a cooperative organized for agricultural purposes under chapter 308A or a similar statute of another state and registered to conduct business in this state, and other persons or entities engaged in an agricultural retail or farm supply business, may impose, charge, and collect a finance charge on goods, products, and services, including sales and open and closed end credit transactions that do not exceed a monthly rate of 1-1/2 percent or an annual rate of 18 percent, and the delinquency and collection charge authorized under section 334.171, provided, however, for a cooperative, the finance, delinquency, and collection charge is the same for member and nonmember patrons."

Amend the title as follows:

Page 1, line 2, after "filings" insert "and bylaws"

Page 1, line 3, delete "foreign"

Page 1, line 7, delete "and" and after "3;" insert "and 308A.165, subdivision 2;"

With the recommendation that when so amended the bill pass.

The report was adopted.

Trimble from the Committee on Regulated Industries and Energy to which was referred:

H. F. No. 2642, A bill for an act relating to utilities; regulating certain utility mergers; providing employees of public utilities notice of the sale of certain utility assets; requiring certain reports; amending Minnesota Statutes 1994, sections 216B.09, subdivision 1; 216B.16, subdivision 6; 216B.50, subdivision 1, and by adding a subdivision; proposing coding for new law in Minnesota Statutes, chapter 216B.

Reported the same back with the following amendments:

Page 1, line 16, after "customers" insert "within Minnesota"

Page 1, line 17, after "commission" insert "a report summarizing"

Page 2, delete lines 4 to 6

Page 2, line 7, delete "3" and insert "2"

Page 4, line 18, before the period, insert "within Minnesota"

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. 2646, A bill for an act relating to health insurance; requiring an assessment report for any proposed mandated health benefit; proposing coding for new law in Minnesota Statutes, chapter 62Q.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. [62A.310] [ASSESSMENT OF PROPOSED HEALTH COVERAGE MANDATES.]

Subdivision 1. [DEFINITIONS.] For the purpose of this section, the following terms have the meanings given them:

(1) "mandated health benefit proposal" means a proposal that would statutorily require a health plan to do the following:

(i) provide coverage, or increase the amount of coverage, for the treatment of a particular disease, condition, or other health care need; or

(ii) provide coverage, or increase the amount of coverage, of a particular type of health care treatment or service or of equipment, supplies, or drugs used in connection with a health care treatment or service;

(2) "commissioners" means the commissioners of commerce and health; and

(3) "health plan" means a health plan as defined in section 62A.011, subdivision 3, but includes coverage listed in section 62A.011, subdivision 3, clauses (7) and (10), within the definition.

Subd. 2. [HEALTH COVERAGE MANDATE ASSESSMENT PROCESS ESTABLISHED.] The commissioners shall establish and administer a process for the review, assessment, and cost benefit analysis of mandated health benefit proposals. The purpose of the process is to provide the legislature with a cost benefit analysis of the social and financial impact of each mandated health benefit proposal before legislative action is taken.

Subd. 3. [REQUESTS FOR ASSESSMENT.] Whenever a legislative measure containing a mandated health benefit proposal is introduced as a bill or offered as an amendment to a bill, or is likely to be introduced or offered as an amendment, the chairs of the standing committees having jurisdiction over the proposal may request that the

commissioners complete an assessment of the proposal. If multiple requests are received, the commissioners shall consult with the chairs of the standing legislative committees having jurisdiction over mandated health benefit proposals to prioritize the requests.

Subd. 4. [ASSESSMENT OF PROPOSED MANDATES; REPORT TO THE LEGISLATURE.] The commissioners shall conduct an assessment of each mandated health benefit proposal selected for assessment and submit a report to the legislature in a timely manner, but no later than 180 days after the request. The commissioners shall, in consultation with the chairs of the standing committees having jurisdiction over the proposal, develop a reporting date for each proposal to be assessed. The commissioners may seek the assistance and advice of consultants, contractors, researchers, or other persons or organizations with relevant expertise and may request advice or analysis from the health technology advisory committee.

Subd. 5. [NONLEGISLATIVE SOLUTIONS.] If, in the course of reviewing a mandated health benefit proposal, the commissioners determine that the problem can be solved without legislation through the exercise of existing state regulatory authority or other actions, the commissioners may take action to resolve the problem. The commissioners shall inform the chairs of the standing committees having jurisdiction over the mandated health benefit proposal of any nonlegislative action taken.

Subd. 6. [PUBLIC HEARINGS.] The commissioners shall solicit comments and recommendations on a mandated health benefit proposal from any interested persons and organizations and may schedule public hearings. The commissioners shall also seek the comments and recommendations of representatives of health care consumers and employers. The commissioners shall summarize the various comments and recommendations received in the commissioners' report to the legislature.

Sec. 2. [APPROPRIATION.]

$....... is appropriated from the state government special revenue fund to the commissioners of commerce and health for the purpose of establishing and administering the review process established in section 1.

Sec. 3. [EFFECTIVE DATE.]

Section 1 is effective the day following final enactment."

Delete the title and insert:

"A bill for an act relating to health; establishing a process for assessing proposed health coverage mandates; appropriating money; proposing coding for new law in Minnesota Statutes, chapter 62A."

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

The report was adopted.

Clark from the Committee on Housing to which was referred:

H. F. No. 2672, A bill for an act relating to landlords and tenants; changing the interest rate on security deposits; providing for a legislative review; amending Minnesota Statutes 1994, section 504.20, subdivision 2; repealing Laws 1992, chapter 555, article 2, section 2.

Reported the same back with the following amendments:

Page 1, line 14, delete "two" and insert "three"

Page 1, line 15, delete "2001" and insert "1998"

Page 1, line 26, delete "2000" and insert "1998"

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. 2675, A bill for an act relating to crime prevention; authorizing special registration plates for certain persons subject to an impoundment order; clarifying definition of prior license revocation; appropriating money; amending Minnesota Statutes 1994, sections 168.042, subdivision 8, and by adding a subdivision; and 169.121, subdivision 3.

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. 2701, A bill for an act relating to transportation; providing that certain watershed permits apply to the department of transportation; amending Minnesota Statutes 1994, section 103D.345, by adding a subdivision.

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

The report was adopted.

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

H. F. No. 2703, A bill for an act relating to human services; allowing the state and county to establish a county store and continue the outdoor home chore assistance for seniors program; appropriating money.

Reported the same back with the following amendments:

Pages 1 and 2, delete section 1

Page 2, line 8, after "store" insert ", or enter into a partnership with a nonprofit organization to operate a county store,"

Page 2, line 12, after "recipients" insert "already mandatory for participation in employment and training activities"

Page 2, delete lines 23 to 27

Page 2, delete section 3

Renumber the sections in sequence

Amend the title as follows:

Page 1, line 3, delete everything after "store" and insert a period

Page 1, delete lines 4 and 5

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. 2704, A bill for an act relating to transportation; abolishing transportation regulation board; requiring report to legislature; amending Laws 1995, chapter 248, article 7, section 3.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 1995 Supplement, section 15A.081, subdivision 1, is amended to read:

Subdivision 1. [SALARY RANGES.] The governor shall set the salary rate within the ranges listed below for positions specified in this subdivision, upon approval of the legislative coordinating commission and the legislature as provided by section 3.855:

$57,500-$78,500

Commissioner of finance;

Commissioner of children, families, and learning;

Commissioner of transportation;

Commissioner of human services;

Commissioner of revenue;

Commissioner of public safety;

Executive director, state board of investment;

$50,000-$67,500

Commissioner of administration;

Commissioner of agriculture;

Commissioner of commerce;

Commissioner of corrections;

Commissioner of economic security;

Commissioner of employee relations;

Commissioner of health;

Commissioner of labor and industry;

Commissioner of natural resources;

Commissioner of trade and economic development;

Chief administrative law judge; office of administrative hearings;

Commissioner, pollution control agency;

Director, office of environmental assistance;

Commissioner, housing finance agency;

Executive director, public employees retirement association;

Executive director, teacher's retirement association;

Executive director, state retirement system;

$42,500-$60,000

Commissioner of human rights;

Commissioner, department of public service;

Commissioner of veterans affairs;

Commissioner, bureau of mediation services;

Commissioner, public utilities commission;

Member, transportation regulation board;

Ombudsman for corrections;

Ombudsman for mental health and retardation.

Sec. 2. Minnesota Statutes 1994, section 168.013, subdivision 1e, is amended to read:

Subd. 1e. [TRUCKS; TRACTORS; COMBINATIONS; EXCEPTIONS.] On trucks and tractors except those in this chapter defined as farm trucks, on truck-tractor and semitrailer combinations except those defined as farm combinations, and on commercial zone vehicles, the tax based on total gross weight shall be graduated according to the Minnesota base rate schedule prescribed in this subdivision, but in no event less than $120.

TOTAL GROSS WEIGHT

IN POUNDS TAX

A0 - 1,500$ 15

B1,501 - 3,00020

C3,001 - 4,50025

D4,501 - 6,00035

E6,001 - 9,00045

F9,001 - 12,00070

G12,001 - 15,000105

H15,001 - 18,000145

I18,001 - 21,000190

J21,001 - 26,000270

K26,001 - 33,000360

L33,001 - 39,000475

M39,001 - 45,000595

N45,001 - 51,000715

O51,001 - 57,000865

P57,001 - 63,0001015

Q63,001 - 69,0001185

R69,001 - 73,2801325

S73,281 - 78,0001595

T78,001 - 81,0001760

For purposes of the Minnesota base rate schedule, for vehicles with six or more axles in the "S" and "T" categories, the base rates are $1,520 and $1,620 respectively.

For each vehicle with a gross weight in excess of 81,000 pounds an additional tax of $50 is imposed for each ton or fraction thereof in excess of 81,000 pounds, subject to subdivision 12.

Truck-tractors except those herein defined as farm and commercial zone vehicles shall be taxed in accord with the foregoing gross weight tax schedule on the basis of the combined gross weight of the truck-tractor and any semitrailer or semitrailers which the applicant proposes to combine with the truck-tractor.

Commercial zone trucks include only trucks, truck-tractors, and semitrailer combinations which are:

(1) used by an authorized a local cartage carrier operating under a permit issued under section 221.296 and whose gross transportation revenue consists of at least 60 percent obtained solely from local cartage carriage, and are operated solely within an area composed of two contiguous cities of the first class and municipalities contiguous thereto as defined by section 221.011, subdivision 17; or,

(2) operated by an interstate carrier registered under section 221.60, or by an authorized local cartage carrier or other carrier receiving operating authority under chapter 221, and operated solely within a zone exempt from regulation by the interstate commerce commission pursuant to United States Code, title 49, section 10526(b).

The license plates issued for commercial zone vehicles shall be plainly marked. A person operating a commercial zone vehicle outside the zone or area in which its operation is authorized is guilty of a misdemeanor and, in addition to the penalty therefor, shall have the registration of the vehicle as a commercial zone vehicle revoked by the registrar and shall be required to reregister the vehicle at 100 percent of the full annual tax prescribed in the Minnesota base rate schedule, and no part of this tax shall be refunded during the balance of the registration year.

On commercial zone trucks the tax shall be based on the total gross weight of the vehicle and during each of the first eight years of vehicle life shall be 75 percent of the Minnesota base rate schedule. During the ninth and succeeding years of vehicle life the tax shall be 50 percent of the Minnesota base rate schedule.

On trucks, truck-tractors and semitrailer combinations, except those defined as farm trucks and farm combinations, and except for those commercial zone vehicles specifically provided for in this subdivision, the tax for each of the first eight years of vehicle life shall be 100 percent of the tax imposed in the Minnesota base rate schedule, and during the ninth and succeeding years of vehicle life, the tax shall be 75 percent of the Minnesota base rate prescribed by this subdivision.

Sec. 3. Minnesota Statutes 1994, section 174.02, subdivision 5, is amended to read:

Subd. 5. [COOPERATION.] To facilitate the development of a unified and coordinated intrastate and interstate transportation system:

(a) The commissioner shall maintain close liaison, coordination and cooperation with the private sectors of transportation, the upper great lakes seaway development commission corporation, and any multistate organization involved in transportation issues affecting the state;

(b) The commissioner shall participate in the planning, regulation and development of the port authorities of the state; and

(c) The commissioner or the commissioner's designee shall be a nonvoting, ex officio member of the metropolitan airports commission, as organized and established under sections 473.601 to 473.679.

(d) To appear before the United States Department of Transportation and press a petition, whether or not filed by a resident of this state, charging a motor carrier or rail carrier with a violation of the Interstate Commerce Act of the United States, whenever the commissioner deems the matter to be in the public interest.

Sec. 4. Minnesota Statutes 1994, section 174.03, is amended by adding a subdivision to read:

Subd. 9. [TRANSPORTATION REGULATION.] (a) With respect to those matters within the commissioner's jurisdiction under chapters 218, 219, and 221, the commissioner shall receive, hear, and determine all petitions filed with the commissioner and may hold hearings and make determinations on the commissioner's own motion to the same extent, and in every instance, in which it may do so upon petition.

(b) Upon receiving petitions filed pursuant to sections 221.061, 221.081, 221.121, subdivision 1, and 221.151, the commissioner shall give notice of the filing of the petition to representatives of associations or other interested groups or persons who have registered their names with the commissioner for that purpose and to whomever the commissioner deems to be interested in the petition. The commissioner may grant or deny the request of the petition 30 days after notice of the filing has been given. If the commissioner receives a written objection and notice of intent to appear at a hearing to object to the petition from any person within 20 days of the date of the notice, the commissioner shall grant or deny the request of the petition only after a contested case hearing has been conducted on the petition, unless the objection is withdrawn prior to the hearing. The commissioner may elect to hold a contested case hearing if no objections to the petition are received. If a timely objection is not received, or if received and withdrawn, and the request of the petition is denied without hearing, the petitioner may request within 30 days of receiving the notice of denial, and shall be granted, a contested case hearing on the petition.

(c) The commissioner has subpoena power with respect to any matter within the commissioner's jurisdiction under chapters 218, 219, and 221.

Sec. 5. [174.18] [TRANSFER OF TRANSPORTATION REGULATION BOARD DUTIES AND POWERS.]

Orders and directives heretofore in force, issued, or promulgated by the transportation regulation board under authority of chapters 216A, 218, 219, and 221 remain and continue in force and effect until repealed, modified, or superseded by order or directive of the commissioner. Rules adopted by the transportation regulation board are transferred to the commissioner and continue in force and effect until repealed, modified, or superseded by rule of the commissioner. The commissioner shall review the transferred rules, orders, and directives and, when appropriate, develop and adopt new rules, orders, or directives by January 1, 1998.

Sec. 6. Minnesota Statutes 1994, section 218.031, subdivision 1, is amended to read:

Subdivision 1. [NOTICE, COMPLIANCE, FREIGHT TRANSFER, FACILITIES, RECORDS, ACCOUNTING.] Except as otherwise directed or authorized, it shall be the duty of every common carrier:

(1) To prescribe in the first instance, and to publish upon not less than 20 days' public notice in the case of new or increased rates or ten days' public notice in the case of reduced rates, in such manner as may be required by the commissioner and law, all schedules of rates and charges and classifications thereof, together with the rules governing the same, and minimum weights for transportation of freight articles between points or stations in the state, and terminal and switching charges. A new or changed contract rate shall become effective in accordance with the provisions of United States Code, title 49, section 10713. The board may, for good cause, reduce the notice period specified in this clause.

(2) to comply with every duly authorized rule or directive of the commissioner or board except as the same may be stayed, pending appeal therefrom.;

(3) To put into effect and observe all schedules of rates and charges and classifications and any amendments or changes therein duly ordered by the board, except as the same may be stayed, pending appeal.

(4) To maintain as may be directed by the commissioner for public inspection at stations and depots all schedules showing all classifications, rates and charges for transportation of freight currently in force applying from such station. Such schedules shall state the places between which property will be carried and show the classification of freight, the distance tariff, a table of distances between stations, any terminal charges and any rules in any way affecting the aggregate of such rates and charges.

(5) Upon request of an owner or consignor of freight to the initial company, whenever the initial line does not reach the place of destination, or the distance from the place of origin to destination may be shortened, to transfer such freight to a connecting line without change in cars if in carload lots, except such change be free of charge to the shipper and receiver; and to transfer with or without change in cars of less than carload lots at a reasonable joint through rate agreed upon by the connecting carriers or prescribed by the board, not greater than the maximum rates allowed by law, provided any unloading and reloading which is necessary shall be at cost and the charge for such transfer included in the joint rate.

(6) To provide the same switching, transfer and handling facilities for local as for interstate traffic.

(7) Upon written demand of the owner, to construct, maintain and operate side tracks and reasonable facilities connecting with any grain warehouse, dock, wharf, mill, coal yard, quarry, brick or lime kiln, sand or gravel pit, crushed rock or concrete plant or manufactory as may be required by the board, and on such terms as may be agreed upon, or, on failure of agreement, as may be prescribed by the board.

(8) (2) to issue receipts or bills of lading covering all property received for transportation from any point in the state to any other point in the state, and to respond for any loss, damage or injury to such the property caused by it or any carrier to whom such the property may be delivered or over whose line it may pass.; and

(9) To refund all overcharges for freight, baggage or express, and pay for any loss, damage or injury to property while in its possession, within 90 days after the filing of a claim for such overcharge, loss or damage.

(10) (3) to keep its accounts so as to show, as far as practicable, the earnings derived from, and the expenses incurred in, handling intrastate business in such a form as the commissioner shall prescribe, including the separation of accounts for each operating division, wholly or partly within the state. Such These accounts shall must show:

(i) the total cost of operating through trains and the total cost of operating the local or distributing trains of each operating division, wholly or partly within the state, during the fiscal year to be fixed by the commissioner,;

(ii) the total number of tons of revenue and nonrevenue freight,;

(iii) the number of tons of each carried one mile on the through trains and on the local trains, respectively,;

(iv) the number of tons and ton miles of revenue and nonrevenue freight carried on through or local trains which that are exclusively intrastate, and;

(v) the gross tons and ton miles made by through and local trains on each division. The accounts shall show;

(vi) the total revenue and nonrevenue train and engine miles and;

(vii) the total revenue and nonrevenue car miles (, which are the nonrevenue car miles to be shown loaded and empty separately), produced by such that railroad in the state in each operating division,;

(viii) the number of each of the above train, engine, and car mileage produced in handling the through trains and in handling the local trains,;

(ix) the total locomotive miles produced in switching on each division; and such

(x) further information related to the income or cost of intrastate business as the commissioner may require. The commissioner may require such these accounts to be kept with reference to the intrastate passenger business of each carrier and the train, car, and engine mileage incurred in such its business in this state as the commissioner may deem consider necessary.

(11) During pendency of any litigation, when rates prescribed by the board have not been put into effect, to keep a correct account of every charge made by it for any services to which such rates apply in excess of the rates prescribed, showing in each case the difference between the amount actually charged and the amount allowed to be charged, the date of the transaction, the stations between which the business was carried and the names and addresses of the consignor and consignee, and to report such information in full to the board on its request.

Sec. 7. Minnesota Statutes 1994, section 218.031, subdivision 2, is amended to read:

Subd. 2. [INFORMATION FURNISHED COMMISSIONER.] Every common carrier shall furnish to the commissioner:

(1) All schedules of rates, fares and charges, every part and classification thereof, together with minimum weights and rules with respect thereto, and any and all amendments, modifications or changes therein.

(2) all information duly required in blanks and forms furnished by the commissioner.;

(3) (2) a copy of all annual reports and valuation data furnished to the Interstate Commerce Commission not later than June 30th, covering the preceding calendar year, together with any additional information regarding valuation of its properties requested by the commissioner.; and

(4) (3) a report of accidents, wrecks, and casualties occurring in this state in such the manner and, form, and at such times as prescribed by the commissioner. All such, provided that reports administered by the department of public safety shall must be received and administered in accordance with the provisions of section 169.09, subdivision 13. and all other reports shall must be open to public inspection but shall are not be admissible in evidence in any suit or action for damages growing out of such the accident, wreck or casualty.

(5) All tariff agreements or arrangements with other carriers.

(6) All joint schedules of rates, fares or classifications.

Sec. 8. Minnesota Statutes 1994, section 218.031, subdivision 8, is amended to read:

Subd. 8. [ORDERS AND RULES CONSIDERED FAIR AND REASONABLE.] In all proceedings under this section, any final and duly promulgated material order, rule, or directive of the commissioner or board and all schedules of rates, fares or charges fixed by the board shall be is deemed and taken in all courts as prima facie fair and reasonable.

Sec. 9. Minnesota Statutes 1994, section 218.041, subdivision 2, is amended to read:

Subd. 2. [BOARD'S COMMISSIONER'S DUTIES UNDER FEDERAL LAW.] The board shall, In accordance with the provisions of United States Code, title 49, sections 10101 to 11917:, the commissioner shall

(1) exercise the jurisdiction over common carriers vested in the board commissioner by law.

(2) Review and ascertain the reasonableness and equalities of all schedules of rates and charges or any part or classification thereof, including joint through rates, and, if found unreasonable or discriminatory, establish new schedules and prescribe the form and manner of filing, posting and publication thereof.

(3) Order the issuance of any franchises, permits or certificates of convenience and necessity.

(4) The board may unite two or more stations or commercial centers into a common rate point and fix the mileage that shall govern between the common rate point and any or all other points in the state. The distance so fixed shall not apply as a measure of the rate for the movement of freight for similar distances between other points.

(5) Prescribe a schedule of joint through railway rates for freight over two or more connecting lines of railway and revise the same from time to time. In so doing, the board shall consider, among other things, rates established for shipments within this state for like distances over single lines, rates charged by the railway companies operating such connecting lines for joint interstate shipments, and the increased cost, if any, of a joint through shipment as compared with a shipment over a single line for like distances. In establishing rates for shipments in less than carload lots, in cases where connecting railways are not required to have common stations or stopping place for loading or unloading freight at connecting points, the board shall regulate the transportation of such freight from the usual unloading place of one railway to the usual loading place of the other. The share of any railway company of any joint through rates shall not be construed to fix the charge that it may make for a similar distance over any part of its line for any single rate shipment, or the share of any other joint rate. Where the line of a railway company connects the point of shipment with the point of destination but would require a longer haul than a joint haul for which a joint rate has been established, the board may authorize charging the joint rate for the single haul without affecting the charge upon any other part of its line except that the charge for a like kind of property must not be greater for a shorter than for a longer distance upon that railroad, all of the shorter hauls being included within the longer.

(6) Define switching and drayage service to apply to the movement of traffic within and between points and fix reasonable maximum rates for the same, which shall be independent of any rates that may be made for line haul transportation. If it is necessary that any car in such transfer pass over the tracks of more than one railroad within such limits, the company first so transferring such car shall receive the entire charge therefor and be liable to each company doing subsequent switching for its just share of such charge as may be agreed upon among the companies, or, in the event of disagreement, as prescribed by the board.

Sec. 10. Minnesota Statutes 1994, section 218.041, subdivision 4, is amended to read:

Subd. 4. [BOARD COMMISSIONER DUTIES UPON PETITION.] The board shall, Upon petition, the commissioner shall:

(1) At all points of intersection and crossings of different railroads, or where two railroads are not more than one-half mile apart, and at all terminals, prescribe ample facilities by track connection, joint use of tracks, freight platforms and depots, warehouses, docks over which general merchandise is handled and forwarded, and other necessary appliances and conveniences for the transfer, forwarding and handling of general merchandise and parcel freight between such railroads and between such railroads and such docks, warehouses and vessels at such docks.

(2) Determine the proportionate share of each company in the cost of providing connecting and transfer facilities in the event the companies fail to agree.

(3) direct construction, maintenance, and operation at any points prescribed by law of all side tracks and reasonable facilities connecting any road with any grain warehouse or mill, dock, wharf, coal yard, quarry, brick or lime kiln, sand or gravel pit, crushed rock or concrete plant, or manufactory adjacent thereto, and prescribe the terms therefor.; and

(4) Prescribe reasonable rules for handling property, passenger, baggage, express and mail, partly over privately owned rights-of-way and partly over highways, so that reasonable and adequate accommodations and service may be afforded.

(5) Prescribe the extent to which any designated carrier, upon its petition, may be relieved from the operation of the principles established by section 218.021, subdivision 1, clauses (5), (6) and (7).

(6) (2) direct the repair, reconstruction, or replacement of any inadequate or unsafe trackage, structure, or facility.

Upon receipt of a petition for action pursuant to this subdivision, the board commissioner shall give notice to all persons known to it to have an interest in the matter and publish notice of the petition in the State Register. The board commissioner may grant the petition 30 days after notice has been fully made. If the board commissioner receives a written objection to the petition from any person within 20 days after the notice of filing has been fully made, the exemption shall may be granted or denied only after a contested case hearing has been held on the matter. The board commissioner may elect to hold a contested case hearing if no objections to the petition or application are received. If a timely objection is not received and the board commissioner declines to act without hearing, the petitioner may request within 30 days of receiving a notice of denial, and shall must be granted, a contested case hearing on the application.

Sec. 11. Minnesota Statutes 1994, section 218.041, subdivision 5, is amended to read:

Subd. 5. [COMMISSIONER'S DUTIES.] The commissioner shall:

(1) investigate and determine whether any common carriers are granting rebates or, in any other particular, failing to comply with laws or with orders, rules, or directives of the commissioner or the board;

(2) appear and press before the Interstate Commerce Commission United States Department of Transportation any petition, whether filed by a resident of the state or otherwise, charging any common carrier doing business in this state with any violation of the Interstate Commerce Act of the United States, whenever the department deems considers the matter to be one of public interest;

(3) institute and prosecute all actions and proceedings in the appropriate courts for the enforcement of the provisions of this chapter, or the orders, rules, and directives of the commissioner and the board issued thereunder and any violations thereof.

Sec. 12. Minnesota Statutes 1994, section 221.011, subdivision 7, is amended to read:

Subd. 7. [CERTIFICATE.] "Certificate" means the certificate of public convenience and necessity issued under section 221.071 to a regular route common carrier of passengers, a class I motor carrier, or a petroleum carrier.

Sec. 13. Minnesota Statutes 1994, section 221.011, subdivision 8, is amended to read:

Subd. 8. [PERMIT.] "Permit" means the license, or franchise, which that may be issued to motor carriers of passengers, other than regular route common carriers of passengers, class I common carriers, and petroleum carriers, or household goods movers under the provisions of this chapter, authorizing the use of the highways of Minnesota for transportation for hire.

Sec. 14. Minnesota Statutes 1994, section 221.011, subdivision 9, is amended to read:

Subd. 9. [REGULAR ROUTE COMMON CARRIER OF PASSENGERS.] "Regular route common carrier of passengers" means a person who holds out to the public as willing, for hire, to transport passengers by motor vehicle between fixed termini over a regular route upon the public highways.

Sec. 15. Minnesota Statutes 1994, section 221.011, subdivision 14, is amended to read:

Subd. 14. [PERMIT CARRIER.] "Permit carrier" means a for-hire motor carrier of passengers or household goods mover embraced within this chapter other than a regular route common carriers carrier of passengers, class I carriers, and petroleum carriers.

Sec. 16. Minnesota Statutes 1994, section 221.011, is amended by adding a subdivision to read:

Subd. 47. [FOR-HIRE MOTOR CARRIER OF PASSENGERS.] "For-hire motor carrier of passengers" means a person engaged in the for-hire transportation of passengers, other than a limousine operator subject to section 221.084 or a personal transportation service operator subject to section 221.085.

Sec. 17. Minnesota Statutes 1994, section 221.011, is amended by adding a subdivision to read:

Subd. 48. [FOR-HIRE MOTOR CARRIER OF PROPERTY.] "For-hire motor carrier of property" means a motor carrier or private carrier that transports property for hire, other than household goods, or holds out to the public to provide transportation for hire of property, other than household goods, by motor vehicle over the public highways.

Sec. 18. Minnesota Statutes 1994, section 221.011, is amended by adding a subdivision to read:

Subd. 51. [OPERATING AUTHORITY.] "Operating authority" means the certificate of safety compliance, certificate, permit, license, or other credential issued by the commissioner that authorizes the transportation of property or passengers under this chapter.

Sec. 19. Minnesota Statutes 1994, section 221.011, is amended by adding a subdivision to read:

Subd. 52. [SAFETY RATING.] "Safety rating" means the rating assigned by the Federal Highway Administration.

Sec. 20. Minnesota Statutes 1994, section 221.021, is amended to read:

221.021 [OPERATION CERTIFICATE OR PERMIT OPERATING AUTHORITY REQUIRED.]

No person may operate as a motor carrier or advertise or otherwise hold out as a motor carrier without a certificate or permit in effect.

Subdivision 1. [SUSPENSION OR REVOCATION.] A certificate or permit may be suspended or revoked upon conviction of violating a provision of sections 221.011 to 221.296 this chapter or an order or rule of the commissioner or board governing the operation of motor carriers, and upon a finding by the court that the violation was willful. The board commissioner may, for good cause after a hearing, suspend or revoke a certificate or permit for a violation of a provision of sections 221.011 to 221.296 this chapter or an order issued or rule adopted by the commissioner or board under this chapter.

Subd. 2. [REGULAR ROUTE COMMON CARRIER OF PASSENGERS.] No person may advertise, hold out, or operate as a regular route common carrier of passengers in intrastate commerce in Minnesota without a certificate, issued by the commissioner under section 221.071, in effect.

Subd. 3. [FOR-HIRE MOTOR CARRIER OF PASSENGERS AND HOUSEHOLD GOODS MOVER.] No person may advertise, hold out, or operate as a for-hire motor carrier of passengers or household goods mover in intrastate commerce in Minnesota without a permit, issued by the commissioner under section 221.121, in effect.

Subd. 4. [FOR-HIRE MOTOR CARRIER OF PROPERTY.] No person may advertise, hold out, or operate as a for-hire motor carrier of property in intrastate commerce in Minnesota without a current certificate of registration, issued by the commissioner under section 221.135, in effect.

Sec. 21. Minnesota Statutes 1994, section 221.022, is amended to read:

221.022 [EXCEPTION.]

The powers granted to the board commissioner under sections 221.011 to 221.296 221.295 do not include the power to regulate any service or vehicles operated by the metropolitan council or to regulate passenger transportation service provided under contract to the department or the metropolitan council. A provider of passenger transportation service under contract to the department or the metropolitan council may not provide charter service without first having obtained a permit to operate as a charter carrier.

Sec. 22. Minnesota Statutes 1994, section 221.025, is amended to read:

221.025 [EXEMPTIONS.]

The provisions of this chapter requiring a certificate or permit operating authority to operate as a motor carrier do not apply to the intrastate transportation described below:

(a) the transportation of students to or from school or school activities in a school bus inspected and certified under section 169.451 and the transportation of children or parents to or from a Head Start facility or Head Start activity in a Head Start bus inspected and certified under section 169.451;

(b) the transportation of solid waste, as defined in section 116.06, subdivision 22, including recyclable materials and waste tires, except that the term "hazardous waste" has the meaning given it in section 221.011, subdivision 31;

(c) a commuter van as defined in section 221.011, subdivision 27;

(d) authorized emergency vehicles as defined in section 169.01, subdivision 5, including ambulances; and tow trucks equipped with proper and legal warning devices when picking up and transporting (1) disabled or wrecked motor vehicles or (2) vehicles towed or transported under a towing order issued by a public employee authorized to issue a towing order;

(e) the transportation of grain samples under conditions prescribed by the board;

(f) the delivery of agricultural lime;

(g) the transportation of dirt and sod within an area having a 50-mile radius from the home post office of the person performing the transportation;

(h) the transportation of sand, gravel, bituminous asphalt mix, concrete ready mix, concrete blocks or tile and the mortar mix to be used with the concrete blocks or tile, or crushed rock to or from the point of loading or a place of gathering within an area having a 50-mile radius from that person's home post office or a 50-mile radius from the site of construction or maintenance of public roads and streets;

(i) the transportation of pulpwood, cordwood, mining timber, poles, posts, decorator evergreens, wood chips, sawdust, shavings, and bark from the place where the products are produced to the point where they are to be used or shipped;

(j) the transportation of fresh vegetables from farms to canneries or viner stations, from viner stations to canneries, or from canneries to canneries during the harvesting, canning, or packing season, or transporting sugar beets, wild rice, or rutabagas from the field of production to the first place of delivery or unloading, including a processing plant, warehouse, or railroad siding;

(k) the transportation of property or freight, other than household goods and petroleum products in bulk, entirely within the corporate limits of a city or between contiguous cities except as provided in section 221.296;

(l) the transportation of unprocessed dairy products in bulk within an area having a 100-mile radius from the home post office of the person providing the transportation;

(m) the transportation of agricultural, horticultural, dairy, livestock, or other farm products within an area having a 25-mile radius from the person's home post office and the carrier may transport other commodities within the 25-mile radius if the destination of each haul is a farm;

(n) passenger transportation service that is not charter service and that is under contract to and with operating assistance from the department or the metropolitan council;

(o) the transportation of newspapers, as defined in section 331A.01, subdivision 5, telephone books, handbills, circulars, or pamphlets in a vehicle with a gross vehicle weight of 10,000 pounds or less; and

(p) transportation of potatoes from the field of production, or a storage site owned or otherwise controlled by the producer, to the first place of processing.

The exemptions provided in this section apply to a person only while the person is exclusively engaged in exempt transportation.

Sec. 23. Minnesota Statutes 1994, section 221.041, is amended to read:

221.041 [RATE-MAKING POWERS.]

Subdivision 1. [CONSIDERATIONS; PROCEDURES.] (a) The board commissioner shall fix and establish (1) just, reasonable, and nondiscriminatory rates, fares, charges, and the (2) rules and classifications incident to tariffs for certificated regular route common carriers of passengers.

(b) In prescribing rates, fares, charges, classifications, and rules for the carrying of freight, persons, or property, the board commissioner shall take into consideration the consider the effect of the proposed rates or fares upon the users of the service and upon competitive carriers by motor vehicle and rail and, insofar as possible, avoid rates and fares which that will result in unreasonable and destructive competition. In making its determination, the board commissioner shall consider, among other things, the cost of the service rendered by the carrier, including an adequate sum for maintenance and depreciation, and an adequate operating ratio under honest, economical, and efficient management. No rate or fares may be put into effect or changed or altered except upon hearing duly had and an order therefor issued by the board commissioner, or except as herein otherwise provided in this section. The board commissioner may authorize rate changes ex parte which that, in its the commissioner's opinion, are not of sufficient import to require a hearing.

(c) In an emergency, the board commissioner may order a change in existing rates or fares without a hearing. In instances of ex parte or emergency orders, the board commissioner shall, within five days, serve a copy of its the commissioner's order granting the change in rates upon parties which that the board deems commissioner considers interested in the matter, including competing carriers. An interested party shall have has 30 days from the date of the issuance of the order to object to the order. If objection is made, the board commissioner shall determine whether a hearing is necessary for resolution of the material issues relating to the proposed change in rates. On finding that a hearing is unnecessary for this purpose, the board commissioner, no sooner than 30 days after issuing its the commissioner's initial order granting the change in rates, may enter an order finally disposing of the rate change application. On determining otherwise, the board commissioner may take final action on the rate change application and the objections to it only after a contested case hearing has been conducted under chapter 14.

Subd. 2. [FILING.] A certificated regular route common carrier of passengers, upon approval by the board commissioner of its rates, fares, charges, and rules and classifications incident to tariffs, shall file its rates, fares, charges, and tariffs with the commissioner. Filings must be prepared and filed in the manner prescribed by the commissioner. The commissioner may not accept for filing rates, fares, charges, and tariffs which have not been approved by the board.

Subd. 3. [PROHIBITIONS; COMPENSATION AND TIME SCHEDULES.] No certificated regular route common carrier of passengers may charge or receive a greater or less, lesser, or different compensation for the transportation of transporting passengers or property, or for service in connection therewith, than the rates, fares, and charges and

the rules and classifications governing the same which that compensation that have been duly approved therefor by order of the board commissioner. A certificated regular route common carrier of passengers may not refund or remit in any manner or by any device a portion of those rates, fares, and charges required to be collected under the board's commissioner's order; nor extend to a shipper or any person a privilege or facilities facility in connection with the transportation of transporting passengers or property, except as are authorized under the order of the board commissioner. No passenger-carrying regular route common carrier may alter or change its time schedules except upon order of the board. The order may be issued ex parte unless the board decides that the public interest requires that a hearing be held.

Subd. 4. [NONAPPLICABILITY.] This section does not apply to any regular route passenger transportation being performed with operating assistance provided by the metropolitan council.

Sec. 24. Minnesota Statutes 1994, section 221.051, subdivision 1, is amended to read:

Subdivision 1. [ABANDONMENT OR DISCONTINUANCE OF SERVICE.] No regular route common carrier of passengers or class I carrier may abandon or discontinue any service required under its certificate without an order of the board therefor commissioner, except in cases of emergency or conditions beyond its control.

Sec. 25. Minnesota Statutes 1994, section 221.051, is amended by adding a subdivision to read:

Subd. 1a. [TIME SCHEDULES.] No regular route common carrier of passengers may alter or change its time schedules except upon order of the commissioner. The order may be issued ex parte unless the commissioner decides that the public interest requires that a hearing be held.

Sec. 26. [221.052] [INTERSTATE PASSENGER CARRIERS ENGAGED IN INTRASTATE TRANSPORTATION OVER INTERSTATE ROUTES.]

Subdivision 1. [DEFINITION.] For purposes of this section, "interstate passenger carrier" means an interstate motor common carrier of passengers that performs intrastate transportation of passengers over a route authorized by the United States Secretary of Transportation pursuant to United States Code, title 49, section 13902, subsection (b)(C)(3).

Subd. 2. [FILINGS.] Not later than 30 days after the date on which an interstate passenger carrier first begins providing intrastate transportation, the carrier shall take the following actions:

(1) file a copy of the authority granted by the United States Department of Transportation with the commissioner; and

(2) file its rates, fares, charges, time schedules, and tariffs with the commissioner. Interstate passenger carriers shall file all subsequent amendments to its rates, fares, charges, time schedules, and tariffs with the commissioner before the effective date of the amendments.

Subd. 3. [REGISTRATION.] An interstate passenger carrier shall register as provided in section 221.602.

Subd. 4. [CHANGES IN TIME SCHEDULES.] An interstate passenger carrier shall give the commissioner notice of any time schedule changes involving intrastate service. The notice must be provided not less than 30 days before the effective date of the time schedule change unless the period of time is reduced by permission of the commissioner.

Subd. 5. [ABANDONMENT, DISCONTINUANCE, OR REDUCTION OF SERVICE.] An interstate passenger carrier shall not abandon or discontinue any intrastate service, or reduce its level of intrastate service to a level that is less than one trip per day, excluding Saturdays and Sundays, without an order of the commissioner, except in cases of emergency or conditions beyond its control.

Sec. 27. Minnesota Statutes 1994, section 221.061, is amended to read:

221.061 [PETITION FOR CERTIFICATE; FEE; HEARING.]

A person desiring a certificate authorizing operation as a regular route common carrier of passengers, a class I carrier, or petroleum carrier, or an extension of or amendment to that certificate, shall file a petition with the commissioner which that must contain information as the board and commissioner, by rule, may prescribe.

Upon the filing of a petition for a certificate, the petitioner shall pay to the commissioner as a fee for issuing the certificate the sum of $300 and for a transfer or lease of the certificate the sum of $300.

The petition must be processed as any other petition. The board commissioner shall cause have a copy and a notice of hearing thereon on the petition to be served upon a competing carrier operating into a city located on the proposed route of the petitioner and to other persons or bodies politic which political subdivisions that the board deems commissioner determines are interested in the petition. A competing carrier and other persons or bodies politic political subdivisions are hereby declared to be interested parties to the proceedings.

If, during the hearing, an amendment to the petition is proposed which that appears to be in the public interest, the board commissioner may allow it when the issues and the territory are not unduly broadened by the amendment.

Sec. 28. Minnesota Statutes 1994, section 221.071, subdivision 2, is amended to read:

Subd. 2. [VEHICLE REGISTRATION.] Certificate Regular route common carriers of passengers shall annually register each vehicle as provided in section 221.131, subdivision 3.

Sec. 29. Minnesota Statutes 1994, section 221.081, is amended to read:

221.081 [SALE OR LEASE OF CERTIFICATE.]

Certificates authorizing operations as a regular route common carrier or as a petroleum carrier of passengers may be sold or leased but only upon approval by order of the board approving the same commissioner. The proposed seller and buyer or lessor and lessee of a certificate shall file a joint petition with the commissioner, setting forth the names and addresses of the parties, the identifying number of the certificate and, the description of the authority which that the parties seek to sell or lease, a short statement of the reasons for the proposed sale or lease, a short statement of the buyer or lessee's present operating authority, if any, a statement of all outstanding claims of creditors which that are directly attributable to the operations conducted under said the certificate, a copy of the contract of sale or lease, and a financial statement with balance sheet and income statement, if existent, of the buyer. If it appears to the board commissioner from the contents of the petition and from the department's records, files, and investigation of the petition that the approval of the sale or lease of the certificate will not adversely affect the rights of the users of the service and will not have an adverse effect on any other motor carrier, the board commissioner may make an ex parte order granting the same petition. When the proposed sale or lease is between persons who are direct competitors to a material degree, the petition shall must be set down for hearing with notice to the communities which that may be affected by the proposed merger and to any other persons the board or department deems considers to be interested parties.

If a corporation holds an authority to operate as a regular route common carrier of passengers, a sale, assignment, pledge, or other transfer of the stock interest in the corporation that will accomplish a substantial or material change or transfer of the majority ownership of the corporation, as exercised through its stockholders, must be reported in the manner prescribed in the rules of the commissioner within 30 days after the sale, assignment, pledge, or other transfer of stock. The commissioner shall then determine whether the stock transfer does, in fact, constitute a sale, lease, or other transfer of the certificate of the corporation to a new party and, if the commissioner determines the transfer took place, then the certificate issued to the corporation continues in effect only upon the corporation's complying with the standards and procedures otherwise imposed by this section.

Sec. 30. Minnesota Statutes 1994, section 221.111, is amended to read:

221.111 [PERMITS TO OTHER MOTOR CARRIERS.]

Motor carriers other than certificated for-hire motor carriers and local cartage of property, regular route motor carriers of passengers, personal transportation service carriers, and limousine carriers, shall obtain a permit in accordance with section 221.121. The board commissioner shall issue only the following kinds of permits:

(1) class II-T permits;

(2) class II-L permits;

(3) livestock carrier permits;

(4) contract carrier permits;

(5) charter carrier permits; and

(6) courier service carrier permits;

(7) local cartage carrier permits;

(8) (2) household goods mover permits;

(9) temperature-controlled commodities permits; and

(10) armored carrier permits.

Sec. 31. Minnesota Statutes 1994, section 221.121, subdivision 1, is amended to read:

Subdivision 1. [PETITION; NOTICE AND HEARING; SCOPE.] (a) A person desiring to operate as a permit carrier, except as provided in subdivision 5 or section 221.296 sections 221.84 and 221.85, shall file a petition with the commissioner specifying the kind of permit desired, the name and address of the petitioner and, the names and addresses of the officers, if a corporation, and other information as the board commissioner and commissioner may require. Letters of shipper support must be filed with the petition. No person shall knowingly make a false or misleading statement in a petition.

(b) The board commissioner, after notice to interested parties and a hearing, shall issue the permit upon compliance with the laws and rules relating to it, if it the commissioner finds that the petitioner is fit and able to conduct the proposed operations, that the petitioner's vehicles meet the safety standards established by the department, that the area to be served has a need for the transportation services requested in the petition, and that the existing permit and certificated regular route common carriers of passengers in the area to be served have failed to demonstrate that they offer sufficient transportation services to meet fully and adequately those needs, provided that no person who holds a permit at the time sections 221.011 to 221.291 take effect may be denied a renewal of the permit upon compliance with other provisions of sections 221.011 to 221.291.

(c) A permit once granted continues in full force and effect until abandoned or unless suspended or revoked, subject to compliance by the permit holder with the applicable provisions of law and the rules of the commissioner or board governing permit carriers.

(d) No permit may be issued to a common carrier by rail permitting the common carrier to operate trucks for hire within this state, nor may a common carrier by rail be permitted to own, lease, operate, control, or have an interest in a permit carrier by truck, either by stock ownership or otherwise, directly, indirectly, through a holding company, or by stockholders or directors in common, or in any other manner. Nothing in sections 221.011 to 221.291 prevents the board from issuing a permit to a common carrier by rail authorizing the carrier to operate trucks wholly within the limits of a municipality or within adjacent or contiguous municipalities or a common rate point served by the railroad and only as a service supplementary to the rail service now established by the carriers.

Sec. 32. Minnesota Statutes 1994, section 221.121, subdivision 4, is amended to read:

Subd. 4. [EXTENSIONS OF AUTHORITY.] The board commissioner may grant extensions of authority ex parte after due notice of a petition has been published. A party desiring to protest the petition shall file its protest by mail or in person within 20 days of the date of notice, except that no protest may be filed against an application submitted under subdivision 6f. If a timely filed protest is received, the matter must be placed on the calendar for hearing. If a timely protest is not received, the board commissioner may issue its order ex parte.

Sec. 33. Minnesota Statutes 1994, section 221.122, subdivision 1, is amended to read:

Subdivision 1. [REGISTRATION, INSURANCE, AND FILING REQUIREMENTS.] An order issued by the board which grants commissioner granting a certificate or permit must contain a service date. The person to whom the order granting the certificate or permit is issued shall do the following within 45 days from the service date of the order:

(1) register vehicles which will to be used to provide transportation under the permit or certificate with the commissioner and pay the vehicle registration fees required by law;

(2) file and maintain insurance or bond as required by sections section 221.141 and 221.296 and rules of the commissioner and board; and

(3) file rates and tariffs as required by sections 221.041 and 221.161 and rules of the commissioner and board.

Sec. 34. Minnesota Statutes 1994, section 221.124, subdivision 2, is amended to read:

Subd. 2. [PARTICIPATION REQUIRED.] A motor carrier that receives a certificate or permit operating authority from the board commissioner for new authority on or after September 1, 1991, shall participate in the initial motor carrier contact program. A motor carrier required to participate in the program must have in attendance at least one motor carrier official having a substantial interest or control, directly or indirectly, in or over the operations conducted or to be conducted under the certificate or permit operating authority.

Sec. 35. Minnesota Statutes 1995 Supplement, section 221.131, subdivision 3, is amended to read:

Subd. 3. [CERTIFICATE CARRIERS REGULAR ROUTE COMMON CARRIER OF PASSENGERS; ANNUAL VEHICLE REGISTRATION.] Certificated passenger Regular route common carriers of passengers shall pay an annual registration fee of $40 for each vehicle, including pickup and delivery vehicles, operated during a calendar year. The commissioner shall issue distinguishing identification cards as provided in subdivision 2.

Sec. 36. Minnesota Statutes 1995 Supplement, section 221.132, is amended to read:

221.132 [PREPAID TEMPORARY VEHICLE IDENTIFICATION CARDS.]

The commissioner may issue a prepaid temporary vehicle identification card to a permit carrier or certificate holder regular route common carrier of passengers subject to section 221.131, subdivision 2 or 3, for a fee of $5 per card. The card must be preprinted by the commissioner with the carrier's name, address, and permit or certificate number. The card may be used by the motor carrier to whom it is issued to identify a vehicle temporarily added to its fleet. The card must be executed by the motor carrier by dating and signing the card and describing the vehicle in which it will be carried. The identification card is valid for a period of ten days from the date the motor carrier places on the card when the card is executed. The card must be used within one year from the date of issuance by the commissioner. The card may not be used if the permit or certificate is not in full force and effect. The card may not be transferred. The commissioner may not refund the cost of unused prepaid temporary vehicle identification cards.

Sec. 37. [221.135] [FOR-HIRE MOTOR CARRIERS OF PROPERTY.]

Subdivision 1. [SCOPE.] This section applies to for-hire motor carriers of property.

Subd. 2. [REGISTRATION STATEMENT.] A person desiring to operate as a for-hire motor carrier of property shall file and complete an accurate registration statement with the commissioner. A registration statement must be on a form provided by the commissioner and include:

(1) the registrant's name, including an assumed or fictitious name used by the registrant in doing business;

(2) the registrant's mailing address and business telephone number;

(3) the registrant's federal employer identification number, Minnesota business identification number, and the identification numbers, if any, assigned to the registrant by the United States Department of Transportation, Federal Highway Administration, or the Environmental Protection Agency;

(4) the name, title, and telephone number of the individual who is principally responsible for the operation of the registrant's transportation business;

(5) the principal location from which the registrant conducts its transportation business and where the records required by this chapter will be kept;

(6) if different from clause (5), the location in Minnesota where the records required by this chapter will be available for inspection and copying by the commissioner;

(7) whether the registrant transports hazardous materials or hazardous waste;

(8) whether the registrant provides, or will be providing, armored carrier service;

(9) whether the registrant's business is a corporation, partnership, limited liability partnership, limited liability company, or sole proprietorship;

(10) the names and addresses of the officers and shareholders, if a corporation;

(11) if the registrant is a foreign corporation authorized to transact business in Minnesota, the state of incorporation and the name and address of its registered agent; and

(12) other information as the commissioner may require.

Subd. 3. [SIGNATURE REQUIRED.] A registration statement must bear the notarized signature of a corporate officer, general partner, limited liability company board member, or sole proprietor.

Subd. 4. [FEES.] The registrant shall pay a fee of $20 to the commissioner for each registration statement filed under this section.

Subd. 5. [CERTIFICATE OF REGISTRATION; ISSUANCE.] (a) The commissioner shall issue a numbered certificate of registration bearing an effective date to a registrant who has filed a registration statement that complies with subdivisions 2 and 3, and paid the required fee, if the commissioner finds that the registrant:

(1) is willing and able to comply with this section and the applicable rules of the commissioner;

(2) is willing and able to comply with any safety regulations imposed by the commissioner, the laws governing commercial drivers' licenses, and the safety and hazardous materials regulations in sections 221.031 to 221.035; and

(3) has complied with the financial responsibility requirements in section 221.141.

(b) The commissioner shall consider and, if applicable, make findings on any evidence demonstrating the registrant's inability or failure to comply with the requirements of paragraph (a).

(c) The commissioner shall not issue a certificate of registration to a person if the commissioner determines that a registrant does not meet the requirements of paragraph (a), the registrant's conduct would constitute grounds for suspension or revocation under subdivision 7, or the registrant has an unsatisfactory safety rating.

Subd. 6. [DURATION.] A certificate of registration, once issued, continues in full force and effect until abandoned, suspended, revoked, or canceled.

Subd. 7. [SUSPENSION; REVOCATION.] (a) The commissioner shall suspend or revoke a certificate of registration issued under this section if the commissioner determines that a carrier provided materially false or misleading information in its registration statement or that a carrier's conduct constitutes a serious or repeated violation of statutes or rules governing the transportation of property, other than household goods, or passengers. A person whose certificate of registration is suspended or revoked may appeal the commissioner's decision in a contested case proceeding under chapter 14.

(b) The commissioner shall suspend a certificate of registration without a hearing for failure to maintain compliance with financial responsibility requirements in section 221.141. The suspension continues until the financial responsibility requirements are satisfied.

Subd. 8. [CERTIFICATE NOT ASSIGNABLE OR TRANSFERABLE.] A certificate of registration issued under this section may not be assigned or transferred.

Subd. 9. [OBLIGATION TO KEEP INFORMATION CURRENT.] A registrant shall notify the commissioner in writing of any change in the information described in subdivision 2.

Sec. 38. Minnesota Statutes 1994, section 221.141, subdivision 1, is amended to read:

Subdivision 1. [FINANCIAL RESPONSIBILITY OF CARRIERS.] No motor carrier and no interstate carrier shall operate a vehicle until it has obtained and has in effect the minimum amount of financial responsibility required by this section. Policies of insurance, surety bonds, other types of security, and endorsements must be continuously in effect and must remain in effect until canceled. Before providing transportation, the motor carrier or interstate carrier

shall secure and cause to be, have filed with the commissioner, and maintain in full effect, a certificate of insurance in a form required by the commissioner, evidencing that evidences public liability insurance in the amount prescribed. The insurance must cover injuries and damage to persons or property resulting from the operation or use of motor vehicles, regardless of whether each vehicle is specifically described in the policy. This insurance does not apply to injuries or death to the employees of the motor carrier or to property being transported by the carrier. The commissioner shall require cargo insurance for certificated carriers, except those carrying passengers exclusively. The commissioner may require a permit carrier to file cargo insurance when the commissioner deems necessary to protect the users of the service.

Sec. 39. Minnesota Statutes 1994, section 221.151, subdivision 1, is amended to read:

Subdivision 1. [PETITION.] (a) Permits, except livestock permits, issued under section 221.121 may be assigned or transferred, but only upon the order of the board commissioner approving the transfer or assignment after notice and hearing.

The proposed seller and buyer or lessor and lessee of a permit, except for livestock carrier permits, shall file a joint notarized petition with the commissioner setting forth the name and address of the parties, the identifying number of the permit, and the description of the authority which that the parties seek to sell or lease, a short statement of the reasons for the proposed sale or lease, a statement of outstanding claims of creditors which that are directly attributable to the operation to be conducted under the permit, a copy of the contract of sale or lease, and a financial statement with a balance sheet and an income statement, if existent, of the buyer or lessee. If it appears to the board commissioner, after notice to interested parties and a hearing, from the contents of the petition, from the evidence produced at the hearing, and from the department's records, files, and investigation that the approval of the sale or lease of the permit will not adversely affect the rights of the users of the service and will not have an adverse effect upon other competing carriers, the board commissioner may make an order granting the sale or lease. Provided, however, that the board shall make no order granting the sale or lease of a permit to a person or corporation or association which holds a certificate or permit other than local cartage carrier permit from the board under this chapter or to a common carrier by rail.

Provided further that However, the board commissioner shall make no order approving the sale or lease of a permit if the board commissioner finds that the price paid for the sale or lease of a permit is disproportionate to the reasonable value of the permit considering the assets and goodwill involved. The board commissioner shall approve the sale or lease of a permit only after a finding that the transferee is fit and able to conduct the operations authorized under the permit and that the vehicles the transferee proposes to use in conducting the operations meet the safety standards of the commissioner. In determining the extent of the operating authority to be conducted by the transferee under the sale or lease of the permit, the past operations of the transferor within the two-year period immediately preceding the transfer must be considered. Only such operating authority may be granted to the transferee as was actually exercised by the transferor under the transferor's authority within the two-year period immediately preceding the transfer as evidenced by bills of lading, company records, operation records, or other relevant evidence. For purposes of determining the two-year period, the date of divesting of interest or control is the date of the sale. The board commissioner shall look to the substance of the transaction rather than the form. An agreement for the transfer or sale of a permit must be reported and filed with the board commissioner within 30 days of the agreement.

If an authority to operate as a permit carrier is held by a corporation, a sale, assignment, pledge, or other transfer of the stock interest in the corporation which that will accomplish a substantial or material change or transfer of the majority ownership of the corporation, as exercised through its stockholders, must be reported in the manner prescribed in the rules of the board commissioner within 30 days after the sale, assignment, pledge, or other transfer of stock. The board commissioner shall then make a finding whether or not the stock transfer does, in fact, constitute a sale, lease, or other transfer of the permit of the corporation to a new party or parties and, if they the commissioner so find finds, then the continuance of the permit issued to the corporation may only be upon the corporation's complying with the standards and procedures otherwise imposed by this section.

Sec. 40. Minnesota Statutes 1994, section 221.151, subdivision 2, is amended to read:

Subd. 2. [EX PARTE TRANSFER.] (a) The board commissioner shall allow a bona fide transfer of a permit, except a livestock carrier permit, ex parte without hearing if the transferee of the permit is in fact a member or members of the transferor's immediate family. For the purpose of this subdivision, immediate family consists only of the lawful spouse, adult child or children, brother, or sister of the transferor. Provided further that the

(b) In addition, immediate family, as defined in this subdivision, does not include a person under legal disability or a member of the family, regardless of relationship, who holds any other permit or certificate under this chapter either as an individual or in partnership or as owner of an interest in a corporation holding a permit or a certificate under this chapter.

Provided further that (c) In addition, the transfer under this subdivision must include:

(1) transfer to a corporation the stock of which is wholly owned by the transferor or immediate family members;

(2) transfer to a partnership or partner consisting solely of the immediate family as defined in this subdivision.

Provided further that (d) In addition, the transfer of a permit under this subdivision must comply with the standards set forth in this section based upon the contents of the petition of petitioners, pertinent information available to the board commissioner and the department, and their records and files. No determination of the extent of the operating authority previously exercised is required.

(e) If it appears to the board commissioner that the petition and exhibits do not reasonably comply with the standards set forth in this section, then after notice to interested parties and the petitioners, the board commissioner shall assign the matter for hearing to determine compliance with this section. A user of the service, competing carrier, or interested party shall have the right to may file a protest on the transfer as provided in this subdivision by filing a sworn statement with the board commissioner within six months from the effective date of the transfer, whereupon then the board commissioner shall assign the matter for hearing and the continuance of the permit may only be upon the transferee's compliance with the standards and procedures otherwise imposed by this section.

Sec. 41. Minnesota Statutes 1994, section 221.161, subdivision 1, is amended to read:

Subdivision 1. [FILING; HEARING UPON BOARD COMMISSIONER INITIATIVE; ARMORED CARRIER EXEMPTION.] (a) Except as provided in paragraph (b), A permit carrier, including a livestock carrier but not including a local cartage carrier, excluding personal transportation service carriers and limousine carriers, shall file and maintain with the commissioner a tariff showing rates and charges for transporting persons or property. Tariffs must be prepared and filed in accordance with the rules of the commissioner. When tariffs are filed in accordance with the rules and accepted by the commissioner, the filing constitutes notice to the public and interested parties of the contents of the tariffs. The commissioner shall not accept for filing tariffs that are unjust, unreasonable, unjustly discriminatory, unduly preferential or prejudicial, or otherwise in violation of this section or rules adopted under this section. If the tariffs appear to be unjust, unreasonable, unjustly discriminatory, unduly preferential or prejudicial, or otherwise in violation of this section or rules adopted under this section, after notification and investigation by the department, the board commissioner may suspend and postpone the effective date of the tariffs and assign the tariffs for hearing upon notice to the permit carrier filing the proposed tariffs and to other interested parties, including users of the service and competitive carriers by motor vehicle and rail. At the hearing, the burden of proof is on the permit carrier filing the proposed tariff to sustain the validity of the proposed schedule of rates and charges. Tariffs for transporting livestock are not subject to rejection, suspension, or postponement by the board, except as provided in subdivisions 2 and 3. The tariffs and subsequent supplements to them or reissues of them must state the effective date, which may not be less than ten days following the date of filing, unless the period of time is reduced by special permission of the commissioner.

(b) A holder of an armored carrier permit is not required to file a tariff under this subdivision for the service authorized by the armored carrier permit.

Sec. 42. Minnesota Statutes 1994, section 221.171, subdivision 1, is amended to read:

Subdivision 1. [COMPENSATION FIXED BY SCHEDULES ON FILE.] No permit carrier shall charge or receive a greater, lesser, or different compensation for the transportation of transporting persons or property household goods, or for related service, than the rates and charges named in the carrier's schedule on file and in effect with the commissioner, including any rate fixed by the board commissioner under section 221.161; nor shall a permit carrier refund or remit in any manner or by any device, directly or indirectly, the rates and charges required to be collected by the carrier under the carrier's schedules or under the rates, if any, fixed by the board commissioner.

Sec. 43. Minnesota Statutes 1994, section 221.172, subdivision 3, is amended to read:

Subd. 3. [CLASS I, CLASS II, AND TEMPERATURE-CONTROLLED COMMODITIES CARRIERS; HOUSEHOLD GOODS MOVERS.] A class I carrier, class II carrier, holder of a household goods mover, and a holder of a temperature-controlled commodities permit shall keep a record of each shipment transported under a certificate or permit. A record may consist of one or more documents, including a bill of lading, freight bill, manifest, delivery receipt, or other document. If it consists of more than one document, the documents constituting a shipment record must be available for inspection together. A record must show the:

(1) names of the consignor and consignee;

(2) date of shipment;

(3) origin and destination points;

(4) number of packages, if applicable to the rating of the freight or if the carrier's operating authority includes a package or article restriction, unless the shipment is transported by a household goods mover;

(5) description of the freight property being transported;

(6) (5) weight, volume, or measurement of the freight property, if applicable to the rating of the freight or if the carrier's operating authority includes a weight restriction;

(7) (6) exact rate or rates assessed;

(8) (7) total charges due, including the nature and amount of any charges for special service; and

(9) (8) the name of each carrier participating in the transportation; and

(10) after January 1, 1994, any terminals through which the shipment moved.

Sec. 44. Minnesota Statutes 1994, section 221.172, subdivision 9, is amended to read:

Subd. 9. [CHARTER TRANSPORTATION.] A charter carrier and a regular route common carrier of passengers with incidental charter operating authority shall keep a record of each charter it provides under a charter carrier permit or a certificate. A charter record may consist of one or more documents. If it consists of more than one document, the documents constituting a charter record must be available for inspection together. A charter record must show the:

(1) name of the carrier;

(2) names of the payor and organization, if any, for which the transportation is performed;

(3) date or dates the transportation was performed;

(4) origin, destination, and general routing of the trip;

(5) identification and seating capacity of each vehicle requested or used;

(6) number of persons transported;

(7) mileage upon which charges are based, including any deadhead mileage, separately noted;

(8) applicable rates per mile, hour, day, or other unit;

(9) itemized charges for the transportation, including special services and fees; and

(10) total charges assessed and collected.

A charter carrier must shall use the same method of computing its rates in billing for charter services as that shown in its tariff on file with the commissioner.

Sec. 45. Minnesota Statutes 1994, section 221.185, subdivision 1, is amended to read:

Subdivision 1. [GROUNDS FOR SUSPENSION.] Despite the provisions of section 221.021, operating authority to operate as a motor carrier under sections 221.011 to 221.296 this chapter is suspended without a hearing, by order of the commissioner, for a period not to exceed 45 days upon the occurrence of any of the following and upon notice of suspension as provided in subdivision 2:

(a) (1) the motor carrier fails to maintain and file with the commissioner, the insurance or bond required by sections section 221.141 and 221.296 and rules of the commissioner;

(b) (2) the motor carrier fails to renew permits as required by section 221.131; or

(c) (3) the motor carrier fails to pay annual vehicle registration fees or renew permits as required by sections 221.071, and 221.131, and 221.296; or

(d) the motor carrier fails to maintain in good standing a protective agent's or private detective's license required under section 221.121, subdivision 6g, paragraph (b), or 221.153, subdivision 3.

Sec. 46. Minnesota Statutes 1994, section 221.185, subdivision 2, is amended to read:

Subd. 2. [NOTICE OF SUSPENSION.] (a) Failure to file and maintain insurance, to renew permits under section 221.131, or to pay annual vehicle registration fees, or to renew permits under section 221.071, or 221.131, or 221.296, or to maintain in good standing a protective agent's or private detective's license required under section 221.121, subdivision 6g, or 221.153, subdivision 3, suspends a motor carrier's permit or certificate two days after the commissioner sends notice of the suspension by certified mail, return receipt requested, to the last known address of the motor carrier.

(b) In order to avoid permanent cancellation of the permit or certificate, the motor carrier must do one of the following within 45 days from the date of suspension:

(1) comply with the law by filing insurance or bond, renewing permits, or paying vehicle registration fees; or

(2) request a hearing before the board commissioner regarding the failure to comply with the law.

Sec. 47. Minnesota Statutes 1994, section 221.185, subdivision 4, is amended to read:

Subd. 4. [FAILURE TO COMPLY, CANCELLATION.] Except as provided in subdivision 5a, failure to comply with the requirements of sections 221.135 and 221.141 and 221.296 relating to bonds and insurance, 221.131 relating to permit renewal, 221.071, or 221.131, or 221.296 relating to annual vehicle registration or permit renewal, 221.121, subdivision 6g, or 221.153, subdivision 3, relating to protective agent or private detective licensure, or to request a hearing within 45 days of the date of suspension, is deemed considered an abandonment of the motor carrier's permit or certificate and the permit or certificate must be canceled by the commissioner.

Sec. 48. Minnesota Statutes 1994, section 221.185, subdivision 5a, is amended to read:

Subd. 5a. [REINSTATEMENT AFTER CANCELLATION.] A motor carrier whose permit or certificate is canceled for failure to comply with sections section 221.141 and 221.296 relating to bonds and insurance may ask the board commissioner to review the cancellation. Upon review, the board commissioner shall rescind the cancellation if: (1) the motor carrier presents evidence showing that before the effective date of the notice of cancellation issued under subdivision 5, the motor carrier had obtained and paid for the insurance required by sections section 221.141 and 221.296, and the rules of the commissioner, and (2) the commissioner informs the board determines that the motor carrier has complied with the requirements of sections section 221.141 and 221.296 and the rules of the commissioner.

Sec. 49. Minnesota Statutes 1994, section 221.185, subdivision 9, is amended to read:

Subd. 9. [NEW PETITION.] If the holder of a canceled permit or certificate seeks authority to operate as a motor carrier it shall file a petition with the commissioner for a permit or certificate as provided in section 221.061, or 221.121, or 221.296, whichever is applicable.

Sec. 50. Minnesota Statutes 1994, section 221.281, is amended to read:

221.281 [VIOLATIONS, PENALTIES.]

Any regular route common carrier or petroleum carrier of passengers, or any officer, agent or employee of any such that carrier, failing to comply with any final order, decision, rule, or directive, or any part or provision thereof, of the commissioner or board, or any provision of sections 221.011 to 221.296 this chapter, shall be is subject to a penalty of $50 for each and every day of such failure, to be recovered for the state in a civil action brought by the commissioner.

Any such regular route common carrier of passengers granting any special rate, rebate, drawback, or directly or indirectly charging, demanding, or collecting a greater or less lesser compensation than provided by its regular established schedule of rates and charges, shall must be punished by a fine not exceeding $10,000 for each such offense.

Sec. 51. Minnesota Statutes 1994, section 221.291, subdivision 4, is amended to read:

Subd. 4. [OPERATING WITHOUT CERTIFICATE OR PERMIT OPERATING AUTHORITY.] A person who operates a motor carrier without obtaining required certificates or permits operating authority to operate as required by this chapter is guilty of a misdemeanor, and upon conviction shall be fined not less than the maximum fine which may be imposed for a misdemeanor for each violation.

Sec. 52. Minnesota Statutes 1994, section 221.291, subdivision 5, is amended to read:

Subd. 5. [VARIATION OF COMPENSATION RATE.] A person who knowingly offers, grants, gives, solicits, accepts, or receives a rebate, concession, or discrimination in violation of a provision of this chapter, or who by any means knowingly assists, requires, or permits a person to obtain or provide transportation of persons or property for a greater or, lesser, or different compensation than that approved by order of the board commissioner, or in the case of permit carriers than that filed with the commissioner, is guilty of a misdemeanor and upon conviction shall must be fined not less than $200.

Sec. 53. Minnesota Statutes 1994, section 231.01, subdivision 5, is amended to read:

Subd. 5. [WAREHOUSE OPERATOR.] The term "warehouse operator," as used in this chapter, means and includes every corporation, company, association, joint stock company or association, firm, partnership, or individual, their trustees, assignees, or receivers appointed by any court, controlling, operating, or managing within this state directly or indirectly, any building or structure, or any part thereof, or any buildings or structures, or any other property, and using the same for the storage or warehousing of goods, wares, or merchandise for compensation, or who shall hold itself out as being in the storage or warehouse business, or as offering storage or warehouse facilities, or advertise for, solicit or accept goods, wares, or merchandise for storage for compensation, but shall not include persons, corporations, or other parties (1) operating open-air storage facilities containing minerals, ores, or rock products such as, but not limited to, aggregates, clays, railroad ballast, iron ore, copper ore, nickel ore, limestone, coal, and salt; (2) operating grain or cold storage warehouses,; or (3) storing on a seasonal basis boats, boating accessories, recreational vehicles or recreational equipment or facilities in which the party storing goods rents and occupies space as a tenant and the entire risk of loss is with the tenant pursuant to written contract between the landlord and tenant.

Sec. 54. [BOARD ABOLISHED.]

The transportation regulation board is abolished. All powers and duties of the transportation regulation board in effect on June 30, 1996, and not otherwise repealed or amended under this act are transferred to the commissioner of transportation. All assets, records, and personnel of, and the unexpended balance of any appropriation to, the transportation regulation board as of June 30, 1996, must be transferred to the commissioner of transportation under Minnesota Statutes, section 15.039.

Sec. 55. [APPROPRIATIONS; UNEXPENDED FUNDS.]

$340,000 is appropriated from the trunk highway fund to the commissioner of transportation for fiscal year ending June 30, 1997, for the purpose of performing duties transferred to the commissioner under this act.

Sec. 56. [REPEALER.]

Minnesota Statutes 1994, sections 174A.01; 174A.02; 174A.03; 174A.04; 174A.05; 174A.06; 218.011, subdivision 7; 218.021; 218.025; 218.031, subdivision 7; 218.041, subdivision 7; 221.011, subdivisions 2b, 10, 12, 24, 25, 28, 35, 36, 38, 39, 40, 41, and 46; 221.072; 221.101; 221.121, subdivisions 3, 5, 6, 6c, 6d, 6e, 6f, and 6g; 221.151, subdivision 3; 221.152; 221.153; 221.172, subdivisions 4, 5, 6, 7, and 8; 221.296; 221.54; and 221.55, are repealed.

Sec. 57. [EFFECTIVE DATE.]

Sections 1 to 56 are effective July 1, 1996."

Delete the title and insert:

"A bill for an act relating to transportation; abolishing transportation regulation board and transferring duties and powers to commissioner of transportation; modifying laws governing motor carriers; clarifying definition of warehouse operator; making technical changes; appropriating money; amending Minnesota Statutes 1994, sections 168.013, subdivision 1e; 174.02, subdivision 5; 174.03, by adding a subdivision; 218.031, subdivisions 1, 2, and 8; 218.041, subdivisions 2, 4, and 5; 221.011, subdivisions 7, 8, 9, 14, and by adding subdivisions; 221.021; 221.022; 221.025; 221.041; 221.051, subdivision 1, and by adding a subdivision; 221.061; 221.071, subdivision 2; 221.081; 221.111; 221.121, subdivisions 1 and 4; 221.122, subdivision 1; 221.124, subdivision 2; 221.141, subdivision 1; 221.151, subdivisions 1 and 2; 221.161, subdivision 1; 221.171, subdivision 1; 221.172, subdivisions 3 and 9; 221.185, subdivisions 1, 2, 4, 5a, and 9; 221.281; 221.291, subdivisions 4 and 5; and 231.01, subdivision 5; Minnesota Statutes 1995 Supplement, sections 15A.081, subdivision 1; 221.131, subdivision 3; and 221.132; proposing coding for new law in Minnesota Statutes, chapters 174; and 221; repealing Minnesota Statutes 1994, sections 174A.01; 174A.02; 174A.03; 174A.04; 174A.05; 174A.06; 218.011, subdivision 7; 218.021; 218.025; 218.031, subdivision 7; 218.041, subdivision 7; 221.011, subdivisions 2b, 10, 12, 24, 25, 28, 35, 36, 38, 39, 40, 41, and 46; 221.072; 221.101; 221.121, subdivisions 3, 5, 6, 6c, 6d, 6e, 6f, and 6g; 221.151, subdivision 3; 221.152; 221.153; 221.172, subdivisions 4, 5, 6, 7, and 8; 221.296; 221.54; and 221.55."

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

The report was adopted.

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

H. F. No. 2715, A bill for an act relating to elevators; regulating persons who may do elevator work; amending Minnesota Statutes 1995 Supplement, sections 16B.747, subdivisions 1 and 2; and 16B.748; proposing coding for new law in Minnesota Statutes, chapter 16B.

Reported the same back with the following amendments:

Page 1, line 20, reinstate the stricken "may" and delete "shall"

Page 2, line 1, reinstate the stricken "may" and delete "shall"

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. 2718, A bill for an act relating to real estate; amending Minnesota Statutes 1994, sections 279.06, subdivision 1; 279.37, by adding a subdivision; and 281.17; proposing coding for new law in Minnesota Statutes, chapter 281.

Reported the same back with the following amendments:

Page 2, line 25, delete "or"

Page 2, line 26, delete "the property is" and after "abandoned" insert "property"

Page 2, line 28, before the period, insert "; or

(e) vacant property as described under section 281.174, subdivision 2, and for which a court order has been entered shortening the redemption period to five weeks under section 281.174"

Page 5, line 17, delete "section" and insert "sections" and before the period, insert "and 281.174"

Page 5, line 22, delete "section" and insert "sections" and before the comma, insert "and 281.174"

Page 7, lines 25, 26, and 27, delete ", except when the United States of America is a party the date shall be set in accordance with applicable federal law"

Page 9, line 1, delete "The affidavit described above, or" and insert "The court may consider"

Page 9, line 2, delete "may state" and insert "which states"

Page 9, lines 3 and 4, delete "and is prima facie evidence of the same"

Page 9, line 22, delete "(35 days)" and after "of the date of" insert "entry of"

Page 9, line 29, delete "after enactment" and insert "on and after the effective date,"

Page 9, after line 30, insert:

"Sec. 5. [281.174] [FIVE-WEEK REDEMPTION PERIOD FOR CERTAIN VACANT PROPERTIES.]

Subdivision 1. [APPLICATION.] This section applies if at any time after the tax sale as provided in section 280.01 has occurred but before notice of expiration of time for redemption has been given, a court order is entered reducing to five weeks the redemption period on property under subdivision 2 during which the owner, the owner's personal representatives and assigns, or any other person holding an interest in the property, may redeem that property in accordance with the provisions of this chapter.

Subd. 2. [VACANT PROPERTY SUBJECT TO FIVE-WEEK REDEMPTION PERIOD.] Only property that meets all of the following criteria is subject to the five-week redemption period as provided in this section:

(1) the property is located in a targeted neighborhood revitalization program under section 469.201;

(2) no structures are located on the land;

(3) the property is classified under section 273.13 as residential; and

(4) a residential structure existed on the land within the last five years.

Subd. 3. [SUMMONS AND COMPLAINT.] Any city, housing and redevelopment authority, port authority, or economic development authority in which the property is located may commence an action in district court to reduce the period otherwise allowed for redemption under this chapter. The action must be commenced by the filing of a complaint, naming as defendants the record fee owners or the owner's personal representative, or the owner's heirs as determined by a court of competent jurisdiction, contract for deed purchasers, mortgagees, assigns of any of the above, the taxpayers as shown on the records of the county auditor, the Internal Revenue Service of the United States and the revenue department of the state of Minnesota if tax liens against the owners or contract for deed purchasers have been recorded or filed, and any other person the plaintiff determines should be made a party. The action shall be filed in district court for the county in which the property is located. The complaint must identify the property by legal description. The complaint must allege (1) that the property is vacant, (2) that the tax judgment sale under section 280.01 has been made, and (3) notice of expiration of the time for redemption has not been given.

The complaint must request an order reducing the redemption period to five weeks. When the complaint has been filed, the court shall issue a summons commanding the person or persons named in the complaint to appear before the court on a day and at a place stated in the summons. The appearance date shall be not less than 15 nor more than 25 days from the date of the issuing of the summons, except that, when the United States of America is a party, the date shall be set in accordance with applicable federal law. A copy of the filed complaint must be attached to the summons.

Subd. 4. [SERVICE OF SUMMONS AND COMPLAINT.] The summons and complaint may be served by any person not named a party to the action. The summons and complaint must be served at least seven days before the appearance date, in the manner provided for service of a summons and complaint in a civil action in the district court,

and posted in a conspicuous place on the property. If a defendant cannot be found in the state, then upon an affidavit to that effect being filed with the court, the summons and complaint may be served by sending a copy by certified mail to the defendant's last known address, if any, at least ten days before the appearance date. Summons by certified mail is complete upon mailing. If personal or certified mail service cannot be made on a defendant, then the plaintiff or plaintiff's attorney may file an affidavit to that effect with the court and service by posting the summons and complaint on the premises is sufficient as to that defendant. Service upon the United States of America shall be made in accordance with applicable federal law.

Subd. 5. [HEARING; EVIDENCE; ORDER.] At the hearing on the summons and complaint, the court shall enter an order reducing the redemption period to five weeks from the date of the order, if evidence is presented supporting the allegations in the complaint and no appearance is made to oppose the relief sought. An affidavit from any person having personal knowledge about the property may be filed stating facts supporting any allegations in the complaint, and is prima facie evidence of the same. In the absence of affidavits or written statements, or if rebuttal evidence is offered by the defendant or a party lawfully claiming an interest through the defendant, the court may consider any competent evidence, including oral testimony, concerning any allegations in the complaint. An order entered under this section must contain a legal description of the property.

Subd. 6. [RECORDING AND SERVICE OF ORDER.] Within ten days after the order is entered, a certified copy of the order must be filed by the moving party with the office of the county recorder or registrar of titles and with the auditor for the county in which the property is located. Failure to file the order within ten days shall not invalidate the proceedings.

Subd. 7. [DUTY OF AUDITOR.] If the property is not redeemed within five weeks (35 days) of the date of the order the county auditor, without further notice, shall execute a certificate as provided for in section 281.23, subdivision 9.

Subd. 8. [EFFECTIVE DATE.] This section shall apply only to tax judgment sales occurring on and after the effective date which shall be the day following final enactment."

Page 9, line 31, delete "5" and insert "6"

Page 9, line 32, delete "4" and insert "5"

Amend the title as follows:

Page 1, line 2, after the semicolon, insert "providing for shortened redemption periods for certain properties;"

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

The report was adopted.

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

H. F. No. 2720, A bill for an act relating to state government; modifying classifications for certain positions in the higher education system; amending Minnesota Statutes 1995 Supplement, section 43A.08, subdivision 1.

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

The report was adopted.

Trimble from the Committee on Regulated Industries and Energy to which was referred:

H. F. No. 2723, A bill for an act relating to utilities; requiring correction of fee for storage of high-level radioactive waste or spent nuclear fuel; limiting amount spent on contracts for telecommunication relay systems; providing for development of midwest regulatory agreement regarding utilities; requiring investigation and legislative report on utility rate unbundling; amending Laws 1995, chapter 254, article 1, section 93; proposing coding for new law in Minnesota Statutes, chapter 116C.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 1994, section 216B.2423, subdivision 1, is amended to read:

Subdivision 1. [MANDATE.] A public utility, as defined in section 216B.02, subdivision 4, that operates a nuclear-powered electric generating plant within this state must construct and operate, purchase, or contract to construct and operate: (1) 225 megawatts of electric energy installed capacity generated by wind energy conversion systems within the state by December 31, 1998; and (2) an additional 200 megawatts of installed capacity so generated by wind energy conversion systems within the state by December 31, 2002.

For the purpose of this section, "wind energy conversion system" has the meaning given it in section 216C.06, subdivision 12.

Sec. 2. Minnesota Statutes 1994, section 216B.57, is amended to read:

216B.57 [PENALTIES.]

Any person who knowingly and intentionally violates any provision of Laws 1974, chapter 429, or who knowingly and intentionally fails, omits, or neglects to obey, observe, or comply with any lawful order, or any part or provision thereof, of the commission is subject to a penalty of not less than $100 nor more than $1,000 $5,000 for each violation.

Sec. 3. [237.221] [DEPRECIATION SCHEDULES.]

Subdivision 1. [DEPRECIATION FILINGS.] A telephone company is subject to complaints by the department or others concerning its depreciation rates and practices pursuant to section 237.081, subdivision 1a, and shall submit to the department the information required by subdivisions 2 and 3, but is not otherwise subject to certification or approval by the commission. This section supersedes any other inconsistent or contrary law.

Subd. 2. [INFORMATIONAL FILING REQUIREMENTS.] Initially upon commission notification, and at least every five years thereafter, each telephone company shall file its depreciation schedules, covering each year since the last filing, showing:

(1) the plant in service, by each appropriate depreciable plant account applicable to its class: beginning and ending plant balances; additions and retirements; and adjustments and transfers;

(2) an analysis of depreciation reserve, based on depreciation studies by each appropriate depreciable plant account applicable to its class: beginning and ending reserve balances; depreciation accruals and plant retirements; cost of removal and gross salvage value; and transfers, adjustments, and other debits (credits); and

(3) a summary of annual depreciation accruals, based on depreciation studies by each appropriate depreciable plant account applicable to its class: plant balance; estimated net salvage; depreciation reserve; probable service life; and depreciation accrual and rate.

Subd. 3. [ADDITIONAL INFORMATION PROVIDED WITH FILING.] In addition, telephone companies shall provide with the depreciation filing:

(1) a list of accounts upon which the utility has made studies of the estimates of service life and salvage and the dollar effects and the results of these studies; and

(2) a list of any major future additions or retirements to the plant accounts that the utility believes may have a material effect on the current schedule.

Sec. 4. [REGIONAL REGULATORY AGREEMENT.]

In light of the changing regulatory environment, the public utilities commission, in consultation with the department of public service, and the attorney general shall initiate discussions with their regulatory counterparts in the midwest region of the country regarding the development of an effective interstate regulatory agreement for the coordination and regulation of public utilities in the region. The commissioner shall report to the house and senate legislative committees with jurisdiction over the regulation of public utilities on the progress of these discussions by January 15, 1997, as well as any regulatory or legislative changes necessary to foster the development of an agreement.

Sec. 5. [UNBUNDLED RATES.]

The public utilities commission shall initiate an investigation into the unbundling of electric utility rates. The investigation should include inquiries into the extent of unbundling that should be required, the process for calculating unbundled rates, the conditions under which unbundling may be beneficial, the likely impact of unbundled rates on the industry and on each class of consumer, and the time frame for requiring utilities to unbundle rates. The commission shall report on the progress of the investigation to the house and senate legislative committees with jurisdiction over electric utility regulation by January 1, 1997.

Sec. 6. [LEGISLATIVE INTENT.]

Section 1 is not a change in existing law but is intended to clarify and restate the legislature's intent that the wind energy mandate contained in Minnesota Statutes, section 216B.2423, subdivision 1, must be satisfied entirely by wind energy conversion systems located in Minnesota.

Sec. 7. [REPEALER.]

Minnesota Statutes 1994, section 237.22, is repealed."

Delete the title and insert:

"A bill for an act relating to utilities; clarifying legislative intent regarding wind energy mandate; requiring telephone companies to file depreciation schedules with public utilities commission, but abolishing power of commission to certify or approve the schedules; providing for development of midwest regulatory agreement regarding utilities; requiring investigation and legislative report on electric utility rate unbundling; amending Minnesota Statutes 1994, sections 216B.2423, subdivision 1; and 216B.57; proposing coding for new law in Minnesota Statutes, chapter 237; repealing Minnesota Statutes 1994, section 237.22."

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

The report was adopted.

Pursuant to Senate Concurrent Resolution No. 12, H. F. No. 2723 was re-referred to the Committee on Rules and Legislative Administration.

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

H. F. No. 2725, A bill for an act relating to sustainable economic development; establishing a model strategy to encourage business development in ways that prevent pollution and maximize energy efficiency; authorizing a grant to the city of Minneapolis for an ecological industrial park facility; authorizing the issuance of state bonds; appropriating money; proposing coding for new law in Minnesota Statutes, chapter 116J.

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.

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

H. F. No. 2752, A bill for an act relating to consumer protection; providing for the licensing and regulation of pawnbrokers; providing penalties; amending Minnesota Statutes 1994, sections 471.924, subdivision 1; 471.925; and 471.927; proposing coding for new law as Minnesota Statutes, chapter 325J; repealing Minnesota Statutes 1994, section 609.81.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

Section 1. [325J.01] [DEFINITIONS.]

Subdivision 1. [SCOPE.] As used in this chapter, the following terms have the meanings given them unless the context clearly indicates otherwise.

Subd. 2. [APPROPRIATE LAW ENFORCEMENT AGENCY.] "Appropriate law enforcement agency" means the attorney general of the state of Minnesota, the sheriff of each county in which a pawnbroker maintains an office, or the police chief of the municipality or law enforcement officers of the municipality in which a pawnbroker maintains an office.

Subd. 3. [MUNICIPALITY.] "Municipality" means any town, home rule charter or statutory city, or county that elects to regulate and license pawnbrokers within its jurisdiction pursuant to local ordinance.

Subd. 4. [PAWNBROKER.] (a) Except as provided in paragraph (b), "pawnbroker" means a person engaged in whole or in part in the business of lending money on the security of pledged goods left in pawn, or in the business of purchasing tangible personal property to be left in pawn on the condition that it may be redeemed or repurchased by the seller for a fixed price within a fixed period of time.

(b) The following are exempt from the definition of "pawnbroker": any bank regulated by the state of Minnesota, the comptroller of the currency of the United States, the Federal Deposit Insurance Corporation, the board of governors of the Federal Reserve System, or any other federal or state authority and their affiliates; any bank or savings association whose deposits or accounts are eligible for insurance by the Federal Deposit Insurance Corporation or any successor to it and all affiliates of those banks and savings associations; any state or federally chartered credit union; and any industrial loan and thrift company or regulated lender subject to licensing and regulation by the department of commerce.

Subd. 5. [PAWNSHOP.] "Pawnshop" means the location at which or premises in which a pawnbroker regularly conducts business.

Subd. 6. [PAWN TRANSACTION.] "Pawn transaction" means any loan on the security of pledged goods or any purchase of pledged goods on the condition that the pledged goods are left with the pawnbroker and may be redeemed or repurchased by the seller for a fixed price within a fixed period of time.

Subd. 7. [PERSON.] "Person" means an individual, partnership, corporation, limited liability company, joint venture, trust, association, or any other legal entity, however organized.

Subd. 8. [PLEDGED GOODS.] "Pledged goods" means tangible personal property other than choses in action, securities, bank drafts, or printed evidence of indebtedness, that are purchased by, deposited with, or otherwise actually delivered into the possession of a pawnbroker in connection with a pawn transaction.

Sec. 2. [325J.02] [MUNICIPAL LICENSING AND REGULATION.]

(a) For the purpose of promoting the public health, safety, morals, and welfare, a municipality may adopt an ordinance, issue licenses to qualified applicants, and regulate pawn transactions. Ordinances must contain the minimum provisions of this chapter.

(b) A person may not engage in business as a pawnbroker or otherwise portray the person as a pawnbroker unless the person has a valid license authorizing engagement in the business. Any pawn transaction made without benefit of a license is void.

(c) A separate license is required for each place of business. A municipality may issue more than one license to a person if that person complies with this chapter for each license.

(d) Each license shall remain in full force and effect until surrendered, suspended, revoked, or expired. A license may be suspended or revoked for failure to comply with the municipality's ordinance.

(e) No expiration, revocation, suspension, or surrender of any license shall impair or affect the obligation of any preexisting lawful contract between the licensee and any pledgor.

(f) The appropriate local law enforcement agency shall be notified by the municipality of any licensee whose license has expired or been surrendered, suspended, or revoked as provided by this chapter.

Sec. 3. [325J.03] [LICENSEE ELIGIBILITY.]

(a) To be eligible for or to maintain a pawnbroker license, a person must operate lawfully and fairly within the purposes of this chapter and the applicable local ordinance and:

(1) may not be a minor at the time that the application for a pawnbroker's license is filed;

(2) may not have been convicted of any crime directly related to the occupation licensed as prescribed by section 364.03, subdivision 2, unless the person has shown competent evidence of sufficient rehabilitation and present fitness to perform the duties of a licensee under this chapter as prescribed by section 364.03, subdivision 3; and

(3) must be of good moral character or repute.

(b) Any change, directly or beneficially, in the ownership of any licensed pawnshop shall require the application for a new license and the new owner must satisfy all current eligibility requirements.

Sec. 4. [325J.04] [PAWN TICKETS.]

Subdivision 1. [ENTRIES OF PAWN TICKETS.] At the time of making the pawn or purchase transaction, the pawnbroker shall immediately and legibly record in English the following information by using ink or other indelible medium on forms or in a computerized record approved by the municipality:

(1) a complete and accurate description of the property, including model and serial number if indicated on the property;

(2) the full name, residence address, residence telephone number, and date of birth of the pledgor or seller;

(3) date and time of pawn or purchase transaction;

(4) the identification number and state of issue from one of the following forms of identification of the seller or pledgor: current valid Minnesota driver's license; current valid Minnesota identification card; or current valid photo identification card issued by another state or a province of Canada;

(5) description of the pledgor including approximate height, sex, and race;

(6) amount advanced or paid;

(7) the maturity date of the pawn transaction and the amount due; and

(8) the monthly and annual interest rates, including all pawn fees and charges.

Subd. 2. [PRINTED PAWN TICKET.] The following shall be printed on all pawn tickets:

(1) the statement that "Any personal property pledged to a pawnbroker within this state is subject to sale or disposal when there has been no payment made on the account for a period of not less than 60 days past the date of the pawn transaction, renewal, or extension; no further notice is necessary. There is no obligation for the pledgor to redeem pledged goods.";

(2) the statement that "The pledgor of this item attests that it is not stolen, it has no liens or encumbrances against it, and the pledgor has the right to sell or pawn the item.";

(3) the statement that "This item is redeemable only by the pledgor to whom the receipt was issued, or any person identified in a written and notarized authorization to redeem the property identified in the receipt, or a person identified in writing by the pledgor at the time of the initial transaction and signed by the pledgor. Written

authorization for release of property to persons other than the original pledgor must be maintained along with the original transaction record."; and

(4) a blank line for the pledgor's signature.

Sec. 5. [325J.05] [RECORDS; RETENTION.]

(a) The pledgor or seller shall sign a pawn ticket and receive an exact copy of the pawn ticket.

(b) The pawnbroker shall maintain on the premises a record of all transactions of pledged or purchased goods for a period of three years. These records shall be a correct copy of the entries made of the pawn transactions. A pawnbroker shall upon request provide to the appropriate law enforcement agency a complete record of pawn items.

Sec. 6. [325J.06] [EFFECT OF NONREDEMPTION.]

(a) A pledgor shall have no obligation to redeem pledged goods or make any payment on a pawn transaction. Pledged goods not redeemed within at least 60 days of the date of the pawn transaction, renewal, or extension shall automatically be forfeited to the pawnbroker, and qualified right, title, and interest in and to the goods shall automatically vest in the pawnbroker.

(b) The pawnbroker's right, title, and interest in the pledged goods under paragraph (a) is qualified only by the pledgor's right, while the pledged goods remain in possession of the pawnbroker and not sold to a third party, to redeem the goods by paying the loan plus fees and/or interest accrued up to the date of redemption.

(c) A pawn transaction that involves holding only the title to property is subject to chapter 168A or 336.

Sec. 7. [325J.07] [PERMITTED CHARGES.]

(a) Notwithstanding any other statute, ordinance, rule, regulation, or section 325J.12, a pawnbroker may contract for and receive a pawnshop charge not to exceed three percent per month of the principal amount advanced in the pawn transaction plus a reasonable fee for storage. A fee for storage may not be charged if the property is not in the possession of the pawnbroker.

(b) The pawnshop charge allowed under paragraph (a) shall be deemed earned, due, and owing as of the date of the pawn transaction and a like sum shall be deemed earned, due, and owing on the same day of the succeeding month. However, if full payment is made more than two weeks before the next succeeding date the pawnbroker shall remit one-half of the pawnshop charge for that month to the pledgor.

(c) Interest shall not be deducted in advance, nor shall any loan be divided or split so as to yield greater interest or fees than would be permitted upon a single, consolidated loan or for otherwise evading any provisions of this section.

(d) Any interest, charge, or fees contracted for or received, directly or indirectly, in excess of the amount permitted under this section, shall be uncollectible and the pawn transaction shall be void.

(e) A schedule of charges permitted by this section shall be posted on the pawnshop premises in a place clearly visible to the general public.

Sec. 8. [325J.08] [RECORDS; PROHIBITIONS.]

A pawnbroker and any clerk, agent, or employee of a pawnbroker shall not:

(1) make any false entry in the records of pawn transactions;

(2) falsify, obliterate, destroy, or remove from the place of business the records, books, or accounts relating to the licensee's pawn transactions;

(3) refuse to allow the appropriate law enforcement agency, the attorney general, or any other duly authorized state or federal law enforcement officer to inspect the pawn records or any pawn goods in the person's possession during the ordinary hours of business or other times acceptable to both parties;

(4) fail to maintain a record of each pawn transaction for three years;

(5) accept a pledge or purchase property from a person under the age of 18 years;

(6) make any agreement requiring the personal liability of a pledgor or seller, or waiving any provision of this section, or providing for a maturity date less than one month after the date of the pawn transaction;

(7) fail to return pledged goods to a pledgor or seller, or provide compensation as set forth in section 325J.09, upon payment of the full amount due the pawnbroker unless either the date of redemption is more than 60 days past the date of the pawn transaction, renewal, or extension and the pawnbroker has sold the pledged goods pursuant to section 325J.06, or the pledged goods have been taken into custody by a court or a law enforcement officer or agency;

(8) sell or lease, or agree to sell or lease, pledged or purchased goods back to the pledgor or seller in the same, or a related, transaction;

(9) sell or otherwise charge for insurance in connection with a pawn transaction; or

(10) remove pledged goods from the pawnshop premises or other storage place approved by a municipality at any time before unredeemed, pledged goods are sold pursuant to section 325J.06.

Sec. 9. [325J.09] [REDEMPTION; RISK OF LOSS.]

Any person to whom the receipt for pledged goods was issued, or any person identified in a written and notarized authorization to redeem the pledged goods identified in the receipt, or any person identified in writing by the pledgor at the time of the initial transaction and signed by the pledgor shall be entitled to redeem or repurchase the pledged goods described on the ticket. In the event the goods are lost or damaged while in possession of the pawnbroker, the pawnbroker shall compensate the pledgor, in cash or replacement goods acceptable to the pledgor, for the fair market value of the lost or damaged goods. Proof of compensation shall be a defense to any prosecution or civil action.

Sec. 10. [325J.10] [VIOLATION.]

A violation of this chapter by a pawnbroker or pledgor is a misdemeanor.

Sec. 11. [325J.11] [TRANSITION.]

(a) Pawnbrokers that are in business when a municipality adopts an ordinance under this chapter must apply for a license and pay the required fee within six months of adoption of the ordinance.

(b) A county that has adopted an ordinance under Minnesota Statutes 1994, sections 471.924 to 471.927, must conform the ordinance to this chapter by August 1, 1997. Pawnbrokers that are in business when a municipality adopts a new ordinance under this chapter must apply for a license and pay the required fee within six months of the adoption of the new ordinance.

Sec. 12. [325J.12] [ORDINANCES; CONSISTENCY.]

Nothing in this chapter preempts or supersedes any ordinance adopted by a municipality that provides for more restrictive regulation of pawnbrokers or pawn transactions.

Sec. 13. Minnesota Statutes 1994, section 471.924, subdivision 1, is amended to read:

Subdivision 1. [AUTHORITY.] For the purpose of promoting the health, safety, morals, and general welfare of its residents, any county in the state may regulate the activities of pawnbrokers, secondhand and junk dealers.

Sec. 14. Minnesota Statutes 1994, section 471.925, is amended to read:

471.925 [DEFINITIONS.]

For purposes of sections 471.924 to 471.929, the following terms have the meanings given them:

(1) "pawnbroker" means a person who loans money on deposit or pledge of personal property, or other valuable thing, or who deals in the purchasing of personal property or other valuable thing on condition of selling the same back again at a stipulated price, or who loans money secured by chattel mortgage or personal property, taking possession of the property or any part thereof so mortgaged; and

(2) "secondhand goods" or "junk dealer" means a person engaged in the business of buying secondhand goods of any kind, including but not limited to coins, gold, silver, jewelry, metals, guns, and wrecked or dismantled motor vehicles or motor vehicles intended to be wrecked or dismantled, but not including used goods and merchandise taken as part or full payment for new goods and merchandise.

Sec. 15. Minnesota Statutes 1994, section 471.927, is amended to read:

471.927 [COOPERATION WITH MUNICIPALITIES.]

The governing body of any municipality may continue to exercise the authority to regulate pawnbrokers and secondhand or junk dealers as provided by law, but may contract with the county board of commissioners for administration and enforcement of countywide regulations or ordinance provisions within the borders of the municipality.

Sec. 16. [REPEALER.]

Minnesota Statutes 1994, section 609.81, is repealed."

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. 2772, A bill for an act relating to transportation; appropriating money to commissioner of transportation to create a process to promote telecommuting and develop telecommunication resources in an integrated manner.

Reported the same back with the following amendments:

Page 1, line 8, after "that" insert ":" and insert paragraph coding and before "public" insert "(1)"

Page 1, after line 15, insert:

"(2) When weather conditions create significant road congestion, workers are unable to travel to work in a timely fashion, resulting in significant economic loss of time and productivity, as well as property damage and personal injury. Traditional transportation costs and congestion continue to increase, while the costs of electronic technology are rapidly decreasing, facilitating changes in where and how work is performed. The cost of government operations will be reduced if telecommuting growth exceeds the growth in vehicle trip generation."

Page 2, after line 5, insert:

"Sec. 3. [TELECOMMUTING DAY.]

The department of employee relations, in consultation with the department of transportation and the United States Weather Service, shall declare a telecommuting day when the criteria established pursuant to section 4 are met. On a telecommuting day, employers shall be encouraged to direct as many employees as possible to telecommute.

Sec. 4. [CRITERIA FOR TELECOMMUTING DAY.]

The department of employee relations shall establish criteria to determine when to declare a telecommuting day and how to communicate that declaration to affected employees. The department may consult with the department of public safety, the department of transportation, and private telecommuting consultants in setting the criteria. The criteria shall relate to weather, road conditions, and other factors the department finds to be relevant in making the determination."

Page 2, line 6, delete "3" and insert "5"

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.

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

H. F. No. 2774, A bill for an act relating to capital improvements; authorizing capital spending for housing finance agency and economic security department programs; authorizing the sale of state bonds; appropriating money with certain conditions.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. [CAPITAL IMPROVEMENTS APPROPRIATIONS.]

The sums in the column under "APPROPRIATIONS" are appropriated from the bond proceeds fund, or another named fund, to the state agencies or officials indicated, to be spent to acquire and to better public land and buildings and other public improvements of a capital nature, as specified in this act.

APPROPRIATIONS

$

Sec. 2. HOUSING FINANCE AGENCY

Subdivision 1. (a) To the commissioner of the housing finance agency for building construction and rehabilitation or financing of building construction and rehabilitation for the purposes specified

in this section 4,250,000

(b) At least 25 percent of each grant under this section must utilize youthbuild, Minnesota Statutes, sections 268.361 to 268.367, or other youth employment and training programs to do the construction. Eligible programs must consult with appropriate labor organizations to deliver education and training. In making grants under this section, the commissioner shall use a request for proposal process.

Subd. 2. Grants for Transitional Housing Loans 2,000,000

To the commissioner of the housing finance agency for the purpose of making transitional housing loans, including loans for housing for homeless youths, to local government units authorized under Minnesota Statutes, section 462A.202, subdivision 2.

Subd. 3. Grants for Battered Women's and Crime Victims' Residences 250,000

Grants under this program may be committed so that recipients may leverage the grants to obtain other funds for the program.

Subd. 4. Grants for Homeless Youth Facilities 2,000,000

This appropriation is for grants to construct or rehabilitate homeless youth facilities.

Sec. 3. ECONOMIC SECURITY

Subdivision 1. (a) To the commissioner of economic security for construction and rehabilitation for the purposes specified in this

section 11,250,000

(b) At least 25 percent of each grant under this section must utilize youthbuild, Minnesota Statutes, sections 268.361 to 268.367, or other youth employment and training programs to do the construction.

Eligible programs must consult with appropriate labor organizations to deliver education and training. In making grants under this section, the commissioner shall use a request for proposal process.

Subd. 2. Grants for Early Childhood Learning Facilities 10,000,000

This appropriation is for grants to state agencies and political subdivisions to construct or rehabilitate facilities for Head Start or other early childhood learning programs under Minnesota Statutes, section 268.917.

Subd. 3. Grants for Truancy and Curfew Centers 500,000

This appropriation is for grants to construct or rehabilitate truancy and curfew centers.

Subd. 4. Grants for Crises Nurseries 500,000

This appropriation is for grants to construct or rehabilitate crises nurseries.

Subd. 5. Grants for Child Safety Centers 250,000

This appropriation is for grants to construct or rehabilitate child safety centers."

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

The report was adopted.

Skoglund from the Committee on Judiciary to which was referred:

H. F. No. 2779, A bill for an act relating to crime prevention; defining the crime of motor vehicle operation resulting in bodily harm; prescribing penalties; amending Minnesota Statutes 1994, section 609.21, 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 84.81, subdivision 1, is amended to read:

Subdivision 1. For the purposes of Laws 1967, chapter 876 sections 84.81 to 84.912, the terms defined herein shall have the meaning ascribed to them.

Sec. 2. Minnesota Statutes 1994, section 84.81, is amended by adding a subdivision to read:

Subd. 13. [ALL-TERRAIN VEHICLE.] "All-terrain vehicle" has the meaning given in section 84.92.

Sec. 3. Minnesota Statutes 1994, section 84.81, is amended by adding a subdivision to read:

Subd. 14. [DRUG.] "Drug" has the meaning given in section 151.01, subdivision 5, including controlled substances as defined in section 152.01, subdivision 4.

Sec. 4. Minnesota Statutes 1994, section 84.81, is amended by adding a subdivision to read:

Subd. 15. [HAZARDOUS SUBSTANCE.] "Hazardous substance" means any chemical or chemical compound that is listed as a hazardous substance in rules adopted under chapter 182.

Sec. 5. Minnesota Statutes 1994, section 84.81, is amended by adding a subdivision to read:

Subd. 16. [IMPAIRING SUBSTANCE.] "Impairing substance" means any substance or combination of substances, other than alcohol, a drug, or a hazardous substance, which has the capacity to affect the nervous system, brain, or muscles of a person so as to impair the person's ability or capacity to drive, operate, or be in physical control of a motor vehicle.

Sec. 6. Minnesota Statutes 1994, section 84.91, subdivision 1, is amended to read:

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

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

(2) when the person is under the influence of a controlled substance, as defined in section 152.01, subdivision 4 drug that affects the nervous system, brain, or muscles of the person so as to impair the person's ability to operate the snowmobile or all-terrain vehicle;

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

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

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

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

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

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

(d) The fact that a person charged with a violation of this subdivision is or has been legally entitled to use alcohol, drugs, impairing substances, or hazardous substances does not constitute a defense against the charge.

Sec. 7. Minnesota Statutes 1994, section 84.91, subdivision 3, is amended to read:

Subd. 3. [PRELIMINARY SCREENING TEST.] (a) When an officer authorized under subdivision 2 to make arrests has reason to believe from the manner in which a person is operating, controlling, or acting upon departure from a snowmobile or all-terrain vehicle, or has operated or been in control of the vehicle, that the operator may be violating or has violated subdivision 1, paragraph (a), the officer may require the operator to provide a breath sample for a preliminary screening test using a device approved by the commissioner of public safety for this purpose.

(b) The results of the preliminary screening test shall be used for the purpose of deciding whether an arrest should be made under this section and whether to require the chemical tests authorized in section 84.911, but may not be used in any court action except: (1) to prove that a test was properly required of an operator under section 84.911; or (2) in a civil action arising out of the operation or use of a snowmobile or all-terrain vehicle.

(c) Following the preliminary screening test, additional tests may be required of the operator as provided under section 84.911.

(d) An operator who refuses a breath sample is subject to the provisions of section 84.911 unless, in compliance with that section, the operator submits to a blood, breath, or urine test to determine the presence of alcohol or a controlled substance, drugs, impairing substances, or hazardous substances.

Sec. 8. Minnesota Statutes 1994, section 84.91, subdivision 4, is amended to read:

Subd. 4. [EVIDENCE.] In a prosecution for a violation of subdivision 1, paragraph (a), or an ordinance in conformity with it, the admission of evidence of the amount of alcohol or a controlled substance, drugs, impairing substances, or hazardous substances in the person's blood, breath, or urine, is governed by section 86B.331, subdivision 4.

Sec. 9. Minnesota Statutes 1994, section 84.911, subdivision 1, is amended to read:

Subdivision 1. [MANDATORY CHEMICAL TESTING.] A person who operates or is in physical control of a snowmobile or all-terrain vehicle anywhere in this state or on the ice of any boundary water of this state is required, subject to the provisions of this section, to take or submit to a test of the person's blood, breath, or urine for the purpose of determining the presence and amount of alcohol or a controlled substance, drugs, impairing substances, or hazardous substances. The test shall be administered at the direction of an officer authorized to make arrests under section 84.91, subdivision 2. Taking or submitting to the test is mandatory when requested by an officer who has probable cause to believe the person was operating or in physical control of a snowmobile or all-terrain vehicle in violation of section 84.91, subdivision 1, paragraph (a), and one of the following conditions exists:

(1) the person has been lawfully placed under arrest for violating section 84.91, subdivision 1, paragraph (a);

(2) the person has been involved while operating a snowmobile or all-terrain vehicle in an accident resulting in property damage, personal injury, or death;

(3) the person has refused to take the preliminary screening test provided for in section 84.91, subdivision 3; or

(4) the screening test was administered and indicated an alcohol concentration of 0.10 or more or the presence of a drug, impairing substance, or hazardous substance.

Sec. 10. Minnesota Statutes 1994, section 84.911, subdivision 2, is amended to read:

Subd. 2. [PENALTIES; REFUSAL; REVOCATION OF SNOWMOBILE OR ALL-TERRAIN VEHICLE OPERATING PRIVILEGE.] (a) If a person refuses to take a test required under subdivision 1, none must be given, but the officer authorized to make arrests under section 84.91, subdivision 2, shall report the refusal to the commissioner of natural resources and to the authority having responsibility for prosecution of misdemeanor offenses for the jurisdiction in which the incident occurred that gave rise to the test demand and refusal. However, if a peace officer has probable cause to believe that the person has violated section 609.21, a test may be required and obtained despite the person's refusal.

(b) On certification by the officer that probable cause existed to believe the person had been operating or in physical control of a snowmobile or all-terrain vehicle while under the influence of alcohol or a controlled substance, drugs, impairing substances, or hazardous substances, and that the person refused to submit to testing, the commissioner shall impose a civil penalty of $500 and shall prohibit the person from operating a snowmobile or all-terrain vehicle, whichever was involved in the violation, for a period of one year even if a test was obtained pursuant to this section after the person refused to submit to testing.

(c) On behalf of the commissioner, an officer requiring a test or directing the administration of a test shall serve on a person who refused to permit a test immediate notice of intention to prohibit the operation of a snowmobile or all-terrain vehicle, and to impose the civil penalty set forth in this subdivision. If the officer fails to serve a notice of intent to suspend operating privileges, the commissioner may notify the person by mail, and the notice is deemed received three days after mailing. The notice must advise the person of the right to obtain administrative and judicial review as provided in this section. The prohibition imposed by the commissioner takes effect ten days after receipt of the notice. The civil penalty is imposed on receipt of the notice and must be paid within 30 days of imposition.

(b) (d) A person who operates a snowmobile or all-terrain vehicle during the period the person is prohibited from operating the vehicle as provided under paragraph (a) (b) or (c) is guilty of a misdemeanor.

Sec. 11. Minnesota Statutes 1994, section 84.911, subdivision 3, is amended to read:

Subd. 3. [RIGHTS AND OBLIGATIONS.] At the time a test is requested, the person must be informed:

(1) that Minnesota law requires a person to take a test to determine if the person is under the influence of alcohol or a controlled substance, drugs, impairing substances, or hazardous substances;

(2) that a person is subject to a civil penalty of $500 for refusing to take the test and, in addition, is prohibited for a one-year period from operating a snowmobile or an all-terrain vehicle;

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

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

Sec. 12. Minnesota Statutes 1994, section 84.911, subdivision 4, is amended to read:

Subd. 4. [REQUIREMENT OF BLOOD OR URINE TEST.] Notwithstanding subdivision 1, if there is probable cause to believe there is impairment by a controlled substance drug, impairing substance, or hazardous substance that is not subject to testing by a breath test, then a blood or urine test may be required even after a breath test has been administered.

Sec. 13. Minnesota Statutes 1995 Supplement, section 84.911, subdivision 7, is amended to read:

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

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

Sec. 14. Minnesota Statutes 1994, section 86B.005, is amended by adding a subdivision to read:

Subd. 20. [DRUG.] "Drug" has the meaning given in section 151.01, subdivision 5, including controlled substances as defined in section 152.01, subdivision 4.

Sec. 15. Minnesota Statutes 1994, section 86B.005, is amended by adding a subdivision to read:

Subd. 21. [HAZARDOUS SUBSTANCE.] "Hazardous substance" means any chemical or chemical compound that is listed as a hazardous substance in rules adopted under chapter 182.

Sec. 16. Minnesota Statutes 1994, section 86B.005, is amended by adding a subdivision to read:

Subd. 22. [IMPAIRING SUBSTANCE.] "Impairing substance" means any substance or combination of substances, other than alcohol, a drug, or a hazardous substance, which has the capacity to affect the nervous system, brain, or muscles of a person so as to impair the person's ability or capacity to drive, operate, or be in physical control of a motor vehicle.

Sec. 17. Minnesota Statutes 1994, section 86B.331, subdivision 1, is amended to read:

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

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

(2) when the person is under the influence of a controlled substance, as defined in section 152.01, subdivision 4 drug that affects the nervous system, brain, or muscles of the person so as to impair the person's ability to operate the motorboat;

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

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

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

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

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

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

(d) The fact that a person charged with a violation of this subdivision is or has been legally entitled to use alcohol, drugs, impairing substances, or hazardous substances does not constitute a defense against the charge.

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

Sec. 18. Minnesota Statutes 1994, section 86B.331, subdivision 3, is amended to read:

Subd. 3. [PRELIMINARY SCREENING TEST.] (a) If an officer authorized under subdivision 2 to make arrests has reason to believe from the manner in which a person is operating, controlling, or acting upon departure from a motorboat, or has operated or been in control of a motorboat, that the operator may be violating or has violated subdivision 1, paragraph (a), the officer may require the operator to provide a breath sample for a preliminary screening test using a device approved by the commissioner of public safety for this purpose.

(b) The results of the preliminary screening test shall be used for the purpose of deciding whether an arrest should be made under this section and whether to require the chemical tests authorized in section 86B.335, but may not be used in a court action except: (1) to prove that a test was properly required of an operator pursuant to section 86B.335; or (2) in a civil action arising out of the operation or use of the motorboat.

(c) Following the preliminary screening test, additional tests may be required of the operator as provided under section 86B.335.

(d) An operator who refuses a breath sample is subject to the provisions of section 86B.335 unless, in compliance with that section, the operator submits to a blood, breath, or urine test to determine the presence of alcohol or a controlled substance, drugs, impairing substances, or hazardous substances.

Sec. 19. Minnesota Statutes 1994, section 86B.331, subdivision 4, is amended to read:

Subd. 4. [EVIDENCE.] (a) Upon the trial of a prosecution arising out of acts alleged to have been committed by a person arrested for operating or being in physical control of a motorboat in violation of subdivision 1, paragraph (a), or an ordinance in conformity with it, the court may admit evidence of the amount of alcohol or a controlled substance, drugs, impairing substances, or hazardous substances in the person's blood, breath, or urine as shown by an analysis of those items.

(b) For the purposes of this subdivision:

(1), evidence that there was at the time an alcohol concentration of 0.05 or less is prima facie evidence that the person was not under the influence of alcohol; and

(2) evidence that there was at the time an alcohol concentration of more than 0.05 and less than 0.10 0.04 or more is relevant evidence in indicating whether or not the person was under the influence of alcohol.

(c) Evidence of the refusal to take a preliminary screening test required under subdivision 3 or a chemical test required under section 86B.335 is admissible into evidence in a prosecution under this section or an ordinance in conformity with it.

(d) This subdivision does not limit the introduction of other competent evidence bearing upon the question of whether or not the person violated this section, including tests obtained more than two hours after the alleged violation and results obtained from partial tests on an infrared breath-testing instrument. A result from a partial test is the measurement obtained by analyzing one adequate breath sample. A sample is adequate if the instrument analyzes the sample and does not indicate the sample is deficient.

(e) If proven by a preponderance of the evidence, it shall be an affirmative defense to a violation of subdivision 1, paragraph (a), clause (5), that the defendant consumed a sufficient quantity of alcohol after the time of operating or physical control of a motorboat and before the administration of the evidentiary test to cause the defendant's alcohol concentration to exceed 0.10. Provided, that this evidence may not be admitted unless notice is given to the prosecution prior to the omnibus or pretrial hearing in the matter.

Sec. 20. Minnesota Statutes 1994, section 86B.335, subdivision 1, is amended to read:

Subdivision 1. [MANDATORY CHEMICAL TESTING.] A person who operates or is in physical control of a motorboat in operation on the waters of this state is required, subject to the provisions of this section, to take or submit to a test of the person's blood, breath, or urine for the purpose of determining the presence and amount of alcohol or a controlled substance, drugs, impairing substances, or hazardous substances. A motorboat "in operation" does not include a motorboat that is anchored, beached, or securely fastened to a dock or other permanent mooring. The test shall be administered at the direction of an officer authorized to make arrests under section 86B.331, subdivision 2. Taking or submitting to the test is mandatory when requested by an officer who has probable cause to believe the person was operating or in physical control of a motorboat in violation of section 86B.331, subdivision 1, paragraph (a), and one of the following conditions exist:

(1) the person has been lawfully placed under arrest for violating section 86B.331, subdivision 1, paragraph (a);

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

(3) the person has refused to take the preliminary screening test provided for in section 86B.331, subdivision 3; or

(4) the screening test was administered and indicated an alcohol concentration of 0.10 or more or the presence of drugs, impairing substances, or hazardous substances.

Sec. 21. Minnesota Statutes 1994, section 86B.335, subdivision 2, is amended to read:

Subd. 2. [REFUSAL TO TAKE TEST PENALTIES; REFUSAL; REVOCATION OF OPERATOR'S PERMIT.] (a) If a person refuses to take a test required under subdivision 1, a test is not to be given, but the officer authorized to make arrests under section 86B.331, subdivision 2, shall report the refusal to the commissioner of natural resources and to the authority having responsibility for prosecution of misdemeanor offenses for the jurisdiction where the incident occurred that gave rise to the test demand and refusal. However, if a peace officer has probable cause to believe that the person has violated section 609.21, a test may be required and obtained despite the person's refusal.

(b) On certification by the officer that probable cause existed to believe the person had been operating or in physical control of a motorboat while under the influence of alcohol or a controlled substance, drugs, impairing substances, or hazardous substances, and that the person refused to submit to testing, the commissioner shall impose a civil penalty of $500 and shall prohibit the person from operating any motorboat on the waters of this state for a period of one year even if a test was obtained pursuant to this section after the person refused to submit to testing. If the person refusing to submit to testing is under the age of 18 years at the time of the refusal, the person's watercraft operator's permit shall be revoked by the commissioner as set forth in this subdivision and a new permit after the revocation must be issued only after the person successfully completes a watercraft safety course.

(c) On behalf of the commissioner, an officer requiring a test or directing the administration of a test shall serve on a person who refused to permit a test immediate notice of intention to impose the civil penalty set forth in this subdivision, to prohibit the operation of motorboats, and to revoke a watercraft operator's permit. The officer shall take a watercraft operator's permit held by the person, and shall send the permit to the commissioner along with the certification provided for in this subdivision. If the officer fails to serve a notice of intent to revoke, the commissioner may notify the person by mail and the notice is deemed received three days after mailing. The notice must advise the person of the right to obtain administrative and judicial review as provided in this section. The prohibition and revocation, if any, shall take effect ten days after receipt of the notice. The civil penalty is imposed on receipt of the notice and shall be paid within 30 days of imposition.

(d) A person who operates a motorboat on the waters of this state during the period the person is prohibited from operating a motorboat as provided under paragraph (b) or (c) is guilty of a misdemeanor.

Sec. 22. Minnesota Statutes 1994, section 86B.335, subdivision 6, is amended to read:

Subd. 6. [RIGHTS AND OBLIGATIONS.] At the time a test is requested, the person must be informed:

(1) that Minnesota law requires a person to take a test to determine if the person is under the influence of alcohol or a controlled substance, drugs, impairing substances, or hazardous substances;

(2) that a person is subject to a civil penalty of $500 for refusing to take the test and, in addition, the person may be prohibited from operating any motorboat;

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

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

Sec. 23. Minnesota Statutes 1994, section 86B.335, subdivision 7, is amended to read:

Subd. 7. [REQUIREMENT OF BLOOD OR URINE TEST.] Notwithstanding subdivision 1, if there are reasonable and probable grounds to believe there is impairment by a controlled drug, impairing substance, or hazardous substance which that is not subject to testing by a blood or breath test, then a blood or urine test may be required even after a blood or breath test has been administered.

Sec. 24. Minnesota Statutes 1994, section 86B.335, subdivision 10, is amended to read:

Subd. 10. [MANNER OF MAKING TESTS.] (a) Only a physician, medical technician, physician's trained mobile intensive care paramedic, registered nurse, medical technologist, or laboratory assistant acting at the request of a peace officer authorized to make arrests under section 86B.331, subdivision 2, may withdraw blood for the purpose of determining the presence of alcohol or controlled substance, drugs, impairing substances, or hazardous substances. This limitation does not apply to the taking of a breath or urine sample. The person tested has the right to have someone of the person's own choosing administer a chemical test or tests in addition to any administered at the direction of a peace officer; provided, that the additional test sample on behalf of the person is obtained at the place where the person is in custody, after the test administered at the direction of a peace officer, and at no expense to the state.

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

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

Sec. 25. Minnesota Statutes 1995 Supplement, section 86B.335, subdivision 13, is amended to read:

Subd. 13. [CORONER TO REPORT DEATH.] Every coroner or medical examiner shall report in writing to the department of natural resources the death of any person within the jurisdiction of the coroner or medical examiner as the result of an accident involving any watercraft or drowning and the circumstances of the accident. The report shall be made within 15 days after the death or recovery.

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

Sec. 26. Minnesota Statutes 1994, section 97A.015, is amended by adding a subdivision to read:

Subd. 56. [DRUG.] "Drug" has the meaning given in section 151.01, subdivision 5, including controlled substances as defined in section 152.01, subdivision 4.

Sec. 27. Minnesota Statutes 1994, section 97A.015, is amended by adding a subdivision to read:

Subd. 57. [HAZARDOUS SUBSTANCE.] "Hazardous substance" means any chemical or chemical compound that is listed as a hazardous substance in rules adopted under chapter 182.

Sec. 28. Minnesota Statutes 1994, section 97A.015, is amended by adding a subdivision to read:

Subd. 58. [IMPAIRING SUBSTANCE.] "Impairing substance" means any substance or combination of substances, other than alcohol, a drug, or a hazardous substance, which has the capacity to affect the nervous system, brain, or muscles of a person so as to impair the person's ability or capacity to drive, operate, or be in physical control of a motor vehicle.

Sec. 29. Minnesota Statutes 1994, section 97B.065, subdivision 1, is amended to read:

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

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

(2) when the person is under the influence of a controlled substance, as defined in section 152.01, subdivision 4 drug that affects the nervous system, brain, or muscles of the person so as to impair the person's ability to operate the firearm or bow and arrow;

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

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

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

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

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

(c) The fact that a person charged with a violation of this subdivision is or has been legally entitled to use alcohol, drugs, impairing substances, or hazardous substances does not constitute a defense against the charge.

Sec. 30. Minnesota Statutes 1994, section 97B.065, subdivision 3, is amended to read:

Subd. 3. [PRELIMINARY SCREENING TEST.] (a) When an officer authorized under subdivision 2 to make arrests has reason to believe that the person may be violating or has violated subdivision 1, paragraph (a), the officer may require the person to provide a breath sample for a preliminary screening test using a device approved by the commissioner of public safety for this purpose.

(b) The results of the preliminary screening test must be used for the purpose of deciding whether an arrest should be made under this section and whether to require the chemical tests authorized in section 97B.066, but may not be used in any court action except: (1) to prove that a test was properly required of a person under section 97B.066, or (2) in a civil action arising out of the operation of a firearm or bow and arrow.

(c) Following the preliminary screening test, additional tests may be required of the person as provided under section 97B.066.

(d) A person who refuses a breath sample is subject to the provisions of section 97B.066 unless, in compliance with that section, the person submits to a blood, breath, or urine test to determine the presence of alcohol or a controlled substance, drugs, impairing substances, or hazardous substances.

Sec. 31. Minnesota Statutes 1994, section 97B.065, subdivision 4, is amended to read:

Subd. 4. [EVIDENCE.] In a prosecution for a violation of subdivision 1, paragraph (a), or an ordinance in conformity with it, the admission of evidence of the amount of alcohol or a controlled substance, drugs, impairing substances, or hazardous substances in the person's blood, breath, or urine is governed by section 86B.331, subdivision 4.

Sec. 32. Minnesota Statutes 1994, section 97B.066, subdivision 1, is amended to read:

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

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

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

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

(4) the screening test was administered and indicated an alcohol concentration of 0.10 or more or the presence of a drug, impairing substance, or hazardous substance.

Sec. 33. Minnesota Statutes 1994, section 97B.066, subdivision 2, is amended to read:

Subd. 2. [PENALTIES; REFUSAL; REVOCATION OF HUNTING PRIVILEGE.] (a) If a person refuses to take a test required under subdivision 1, none must be given but the officer authorized to make arrests under section 97B.065, subdivision 2, shall report the refusal to the commissioner of natural resources and to the authority having responsibility for prosecution of misdemeanor offenses for the jurisdiction in which the incident occurred that gave rise to the test demand and refusal.

(b) On certification by the officer that probable cause existed to believe the person had been hunting while under the influence of alcohol or a controlled substance, drugs, impairing substances, or hazardous substances and that the person refused to submit to testing, the commissioner shall impose a civil penalty of $500 and shall prohibit the person from hunting for one year.

(c) On behalf of the commissioner, an officer requiring a test or directing the administration of a test shall serve on a person who refused to permit a test immediate notice of intention to prohibit the person from hunting, and to impose the civil penalty set forth in this subdivision. If the officer fails to serve a notice of intent to suspend hunting privileges, the commissioner may notify the person by certified mail to the address on the license of the person. The notice must advise the person of the right to obtain administrative and judicial review as provided in this section. The prohibition imposed by the commissioner takes effect ten days after receipt of the notice. The civil penalty is imposed 30 days after receipt of the notice or upon return of the certified mail to the commissioner, and must be paid within 30 days of imposition.

(b) (d) A person who hunts during the period the person is prohibited from hunting as provided under paragraph (a) (b) or (c) is guilty of a misdemeanor.

Sec. 34. Minnesota Statutes 1994, section 97B.066, subdivision 3, is amended to read:

Subd. 3. [RIGHTS AND OBLIGATIONS.] At the time a test is requested, the person must be informed that:

(1) Minnesota law requires a person to take a test to determine if the person is under the influence of alcohol or a controlled substance, drugs, impairing substances, or hazardous substances;

(2) if the person refuses to take the test, the person is subject to a civil penalty of $500 and is prohibited for a one-year period from hunting, as provided under subdivision 2; and

(3) that the person has the right to consult with an attorney, but that this right is limited to the extent it cannot unreasonably delay administration of the test or the person will be deemed to have refused the test.

Sec. 35. Minnesota Statutes 1994, section 97B.066, subdivision 4, is amended to read:

Subd. 4. [REQUIREMENT OF BLOOD OR URINE TEST.] Notwithstanding subdivision 1, if there is probable cause to believe there is impairment by a controlled substance drug, impairing substance, or hazardous substance that is not subject to testing by a breath test, then a blood or urine test may be required even after a breath test has been administered.

Sec. 36. Minnesota Statutes 1994, section 169.01, is amended by adding a subdivision to read:

Subd. 82. [DRUG.] "Drug" has the meaning given in section 151.01, subdivision 5, including controlled substances as defined in section 152.01, subdivision 4.

Sec. 37. Minnesota Statutes 1994, section 169.01, is amended by adding a subdivision to read:

Subd. 83. [HAZARDOUS SUBSTANCE.] "Hazardous substance" means any chemical or chemical compound that is listed as a hazardous substance in rules adopted under chapter 182.

Sec. 38. Minnesota Statutes 1994, section 169.01, is amended by adding a subdivision to read:

Subd. 84. [IMPAIRING SUBSTANCE.] "Impairing substance" means any substance or combination of substances, other than alcohol, a drug, or a hazardous substance, which has the capacity to affect the nervous system, brain, or muscles of a person so as to impair the person's ability or capacity to drive, operate, or be in physical control of a motor vehicle.

Sec. 39. Minnesota Statutes 1994, section 169.09, subdivision 14, is amended to read:

Subd. 14. [PENALTIES.] (a) The driver of any vehicle who violates subdivision 1 or 6 and who caused the accident is punishable as follows:

(1) if the accident results in the death of any person, the driver is guilty of a felony and may be sentenced to imprisonment for not more than ten years, or to payment of a fine of not more than $20,000, or both;

(2) if the accident results in great bodily harm to any person, as defined in section 609.02, subdivision 8, the driver is guilty of a felony and may be sentenced to imprisonment for not more than five years, or to payment of a fine of not more than $10,000, or both; or

(3) if the accident results in substantial bodily harm to any person, as defined in section 609.02, subdivision 7a, the driver is guilty of a felony and may be sentenced to imprisonment for not more than three years, or to payment of a fine of not more than $5,000, or both.

(b) The driver of any vehicle who violates subdivision 1 or 6 and who did not cause the accident is punishable as follows:

(1) if the accident results in the death of any person, the driver is guilty of a felony and may be sentenced to imprisonment for not more than three years, or to payment of a fine of not more than $5,000, or both;

(2) if the accident results in great bodily harm to any person, as defined in section 609.02, subdivision 8, the driver is guilty of a felony and may be sentenced to imprisonment for not more than two years, or to payment of a fine of not more than $4,000, or both; or

(3) if the accident results in substantial bodily harm to any person, as defined in section 609.02, subdivision 7a, the driver may be sentenced to imprisonment for not more than one year, or to payment of a fine of not more than $3,000, or both.

(c) (b) The driver of any vehicle involved in an accident not resulting in substantial bodily harm or death who violates subdivision 1 or 6 may be sentenced to imprisonment for not more than one year, or to payment of a fine of not more than $3,000, or both.

(d) (c) Any person who violates subdivision 2, 3, 4, 5, 7, 8, 10, 11, or 12 is guilty of a misdemeanor.

The attorney in the jurisdiction in which the violation occurred who is responsible for prosecution of misdemeanor violations of this section shall also be responsible for prosecution of gross misdemeanor violations of this section.

Sec. 40. Minnesota Statutes 1994, section 169.121, subdivision 1, is amended to read:

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

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

(b) when the person is under the influence of a controlled substance, as defined in section 152.01, subdivision 4 drug that affects the nervous system, brain, or muscles of the person so as to impair the person's ability to drive or operate the motor vehicle;

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

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

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

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

(g) when the person's body contains any amount of a controlled substance, as defined in section 152.01, subdivision 4, that is listed in schedule I or II.

Sec. 41. Minnesota Statutes 1994, section 169.121, subdivision 1c, is amended to read:

Subd. 1c. [CONDITIONAL RELEASE.] Unless maximum bail is imposed under section 629.471, subdivision 2, a person charged with violating subdivision 1 within ten years of the first of three prior impaired driving convictions

or within the person's lifetime after four or more prior impaired driving convictions may be released from detention only if the following conditions are imposed in addition to the other conditions of release ordered by the court:

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

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

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

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

Sec. 42. Minnesota Statutes 1994, section 169.121, is amended by adding a subdivision to read:

Subd. 1d. [PRESCRIPTION NOT A DEFENSE.] The fact that a person charged with a violation of this section is or has been legally entitled to use alcohol, drugs, impairing substances, or hazardous substances does not constitute a defense against the charge.

Sec. 43. Minnesota Statutes 1994, section 169.121, subdivision 2, is amended to read:

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

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

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

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

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

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

Sec. 44. Minnesota Statutes 1994, section 169.121, subdivision 3, is amended to read:

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

(1) "prior impaired driving conviction" means a prior conviction under this section; section 84.91, subdivision 1, paragraph (a); 86B.331, subdivision 1, paragraph (a); 169.129; 360.0752; 609.21, subdivision 1, clauses (2) to (4) (6); 609.21, subdivision 2, clauses (2) to (4) (6); 609.21, subdivision 2a, clauses (2) to (4) (6); 609.21, subdivision 2b, clauses (2) to (6); 609.21, subdivision 3, clauses (2) to (4) (6); 609.21, subdivision 4, clauses (2) to (4) (6); or an ordinance from

this state, or a statute or ordinance from another state in conformity with any of them. A prior impaired driving conviction also includes a prior juvenile adjudication that would have been a prior impaired driving conviction if committed by an adult; and

(2) "prior license revocation" means a driver's license suspension, revocation, or cancellation under this section; section 169.123; 171.04; 171.14; 171.16; 171.17; or 171.18 because of an alcohol-related incident; 609.21, subdivision 1, clauses (2) to (4) (7); 609.21, subdivision 2, clauses (2) to (4) (7); 609.21, subdivision 2a, clauses (2) to (4) (7); 609.21, subdivision 2b, clauses (2) to (7); 609.21, subdivision 3, clauses (2) to (4) (7); or 609.21, subdivision 4, clauses (2) to (4) (7).

(b) A person who violates subdivision 1 or 1a, or an ordinance in conformity with either of them, is guilty of a misdemeanor.

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

(1) the person violates subdivision 1 within five years of a prior impaired driving conviction, or within ten years of the first of two or more prior impaired driving convictions;

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

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

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

(5) the person violates subdivision 1 or 1a while in violation of section 169.797.

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

(e) The court must impose consecutive sentences when it sentences a person for a violation of this section or section 169.29 arising out of separate behavioral incidents. The court also must impose a consecutive sentence when it sentences a person for a violation of this section or section 169.129 and the person, at the time of sentencing, is on probation for, or serving, an executed sentence for a violation of this section or section 169.29 and the prior sentence involved a separate behavioral incident. The court also may order that the sentence imposed for a violation of this section or section 169.29 shall run consecutively to a previously imposed misdemeanor, gross misdemeanor or felony sentence for a violation other than this section or section 169.129.

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

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

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

Sec. 45. Minnesota Statutes 1994, section 169.121, subdivision 4, is amended to read:

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

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

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

(3) second offense in less than five years, or third or subsequent offense on the record for an offense occurring within five years after a prior impaired driving conviction or a prior license revocation, or any time after the first of two or more prior impaired driving convictions or prior license revocations: (i) if the current conviction is for a violation of subdivision 1, not less than 180 days and until the court has certified that treatment or rehabilitation has been successfully completed where prescribed in accordance with section 169.126; or (ii) if the current conviction is for a violation of subdivision 1a, not less than one year and until the court has certified that treatment or rehabilitation has been successfully completed where prescribed in accordance with section 169.126;

(4) third offense in less than five years for an offense occurring within five years after the first of two prior impaired driving convictions or prior license revocations: not less than one year, together with denial under section 171.04, subdivision 1, clause (8), until rehabilitation is established in accordance with standards established by the commissioner;

(5) fourth or subsequent offense on the record for an offense occurring any time after the first of three or more prior impaired driving convictions or prior license revocations: not less than two years, together with denial under section 171.04, subdivision 1, clause (8), until rehabilitation is established in accordance with standards established by the commissioner.

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

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

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

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

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

Sec. 46. Minnesota Statutes 1994, section 169.121, subdivision 6, is amended to read:

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

(b) The results of this preliminary screening test shall be used for the purpose of deciding whether an arrest should be made and whether to require the tests authorized in section 169.123, but shall not be used in any court action except (1) to prove that a test was properly required of a person pursuant to section 169.123, subdivision 2; (2) in a civil action arising out of the operation or use of the motor vehicle; (3) in an action for license reinstatement under section 171.19; or (4) in a prosecution or juvenile court proceeding concerning a violation of section 340A.503, subdivision 1, paragraph (a), clause (2).

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

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

Sec. 47. Minnesota Statutes 1994, section 169.121, subdivision 10a, is amended to read:

Subd. 10a. [CIVIL ACTION; PUNITIVE DAMAGES.] In a civil action involving a motor vehicle accident, it is sufficient for the trier of fact to consider an award of punitive damages if there is evidence that the accident was caused by a driver:

(1) with a blood an alcohol concentration of .10 or more,;

(2) who was under the influence of a controlled substance, or drug that affects the nervous system, brain, or muscles of the person so as to impair the person's ability to drive or operate the motor vehicle;

(3) who was under the influence of alcohol and refused to take a test required under section 169.123, subdivision 2, is sufficient for the trier of fact to consider an award of punitive damages; or

(4) who was knowingly under the influence of a hazardous substance or an impairing substance that affects the person's nervous system, brain, or muscles so as to impair the person's ability to drive or operate a motor vehicle.

A criminal charge or conviction is not a prerequisite to consideration of punitive damages under this subdivision. At the trial in an action where the trier of fact will consider an award of punitive damages, evidence that the driver has been convicted of violating this section, section 169.129, or 609.21 is admissible into evidence.

Sec. 48. [169.1218] [UNDERAGE DRINKING AND DRIVING.]

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

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

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

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

Sec. 49. Minnesota Statutes 1994, section 169.123, subdivision 2, is amended to read:

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

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

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

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

(4) the screening test was administered and indicated an alcohol concentration of 0.10 or more or the presence of a drug, impairing substance, or hazardous substance.

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

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

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

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

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

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

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

Sec. 50. Minnesota Statutes 1994, section 169.123, subdivision 2a, is amended to read:

Subd. 2a. [REQUIREMENT OF URINE OR BLOOD TEST.] Notwithstanding subdivision 2, if there is probable cause to believe (1) there is impairment by a drug, impairing substance, or hazardous substance, or (2) that a controlled substance listed in schedule I or II is present in the person's body, that is not subject to testing by a breath test, a urine or blood test may be required even after a breath test has been administered. Action may be taken against a person who refuses to take a blood test under this subdivision only if a urine test was offered and action may be taken against a person who refuses to take a urine test only if a blood test was offered.

Sec. 51. Minnesota Statutes 1994, section 169.123, subdivision 3, is amended to read:

Subd. 3. [MANNER OF MAKING TEST; ADDITIONAL TESTS.] (a) Only a physician, medical technician, physician's trained mobile intensive care paramedic, registered nurse, medical technologist or laboratory assistant acting at the request of a peace officer may withdraw blood for the purpose of determining the presence of alcohol or controlled substance, drugs, impairing substances, or hazardous substances. This limitation does not apply to the taking of a breath or urine sample. The person tested has the right to have someone of the person's own choosing administer a chemical test or tests in addition to any administered at the direction of a peace officer; provided, that the additional test sample on behalf of the person is obtained at the place where the person is in custody, after the test administered at the direction of a peace officer, and at no expense to the state.

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

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

Sec. 52. Minnesota Statutes 1994, section 169.123, subdivision 4, is amended to read:

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

(b) If a person submits to a test and the test results indicate an alcohol concentration of 0.10 or more or the presence of drugs, impairing substances, or hazardous substances, or if a person was driving, operating, or in physical control of a commercial motor vehicle and the test results indicate an alcohol concentration of 0.04 or more, the results of the test shall be reported to the commissioner of public safety and to the authority having responsibility for prosecution of misdemeanor offenses for the jurisdiction in which the acts occurred.

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

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

(e) Upon certification by the peace officer that there existed probable cause to believe the person had been driving, operating or in physical control of a motor vehicle while under the influence of alcohol or a controlled substance in violation of section 169.121 and that the person submitted to a test and the test results indicate an alcohol concentration of 0.10 or more or the presence of a drug, impairing substance, or hazardous substance, the commissioner of public safety shall revoke the person's license or permit to drive, or nonresident operating privilege, for:

(1) for a period of 90 days; or

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

(3) if the person's driver's license or driving privileges have been revoked for a person with a prior impaired driving conviction or prior license revocation within the past five years under this section or section 169.121, for a period of 180 days.

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

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

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

Sec. 53. Minnesota Statutes 1994, section 169.123, subdivision 6, is amended to read:

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

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

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

(i) a motor vehicle while under the influence of alcohol or a controlled substance, drugs, impairing substances, or hazardous substances; or

(ii) a commercial motor vehicle with any presence of alcohol, and whether in violation of section 169.1211?

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

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

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

(5) If the screening test was administered and recorded, did the test record an alcohol concentration of 0.10 or more; and or the presence of a drug, impairing substance, or hazardous substance?

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

(3) either (a) whether (7) Did the person refused refuse to permit the test, or (b) whether?

(8) If a test was taken and:

(i) by a person driving, operating, or in physical control of a motor vehicle, did the test results indicated indicate an alcohol concentration of 0.10 or more at the time of testing, or the presence of a drug, impairing substance, or hazardous substance; or if a test was taken

(ii) by a person driving, operating, or in physical control of a commercial motor vehicle and, did the test results indicated indicate an alcohol concentration of 0.04 or more at the time of testing; whether?

(9) Was the testing method used was valid and reliable; and whether were the test results were accurately evaluated.?

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

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

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

Sec. 54. Minnesota Statutes 1994, section 169.129, is amended to read:

169.129 [AGGRAVATED VIOLATIONS; PENALTY.]

Any person is guilty of a gross misdemeanor who drives, operates, or is in physical control of a motor vehicle, the operation of which requires a driver's license, within this state or upon the ice of any boundary water of this state in violation of section 169.121 or an ordinance in conformity with it before the person's driver's license or driver's privilege has been reinstated following its cancellation, suspension, revocation, or denial under any of the following: section 169.121, 169.1211, or 169.123; section 171.04, 171.14, 171.16, 171.17, or 171.18 because of an alcohol-related incident; section 609.21, subdivision 1, clauses (2) to (4) (7); 609.21, subdivision 2, clauses (2) to (4) (7); 609.21, subdivision 2a, clauses (2) to (4) (7); 609.21, subdivision 2b, clauses (2) to (7); 609.21, subdivision 3, clauses (2) to (4) (7); or 609.21, subdivision 4, clauses (2) to (4) (7).

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

Sec. 55. Minnesota Statutes 1994, section 169.791, is amended by adding a subdivision to read:

Subd. 5a. [CONSECUTIVE SENTENCES.] The court may impose consecutive sentences for offenses arising out of a single course of conduct as permitted in section 609.035, subdivision 2.

Sec. 56. Minnesota Statutes 1994, section 169.797, subdivision 4, is amended to read:

Subd. 4. [PENALTY.] (a) A person who violates this section is guilty of a misdemeanor. A person is guilty of a gross misdemeanor who violates this section within ten years of the first of two prior convictions under this section, section 169.791, or a statute or ordinance in conformity with one of those sections. The operator of a vehicle who violates subdivision 3 and who causes or contributes to causing a vehicle accident that results in the death of any person or in substantial bodily harm to any person, as defined in section 609.02, subdivision 7a, is guilty of a gross misdemeanor. The same prosecuting authority who is responsible for prosecuting misdemeanor violations of this section is responsible for prosecuting gross misdemeanor violations of this section. In addition to any sentence of imprisonment that the court may impose on a person convicted of violating this section, the court shall impose a fine of not less than $200 nor more than the maximum amount authorized by law. The court may allow community service in lieu of any fine imposed if the defendant is indigent.

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

(c) In addition to the criminal penalty, the driver's license of an operator convicted under this section shall be revoked for not more than 12 months. If the operator is also an owner of the vehicle, the registration of the vehicle shall also be revoked for not more than 12 months. Before reinstatement of a driver's license or registration, the operator shall file with the commissioner of public safety the written certificate of an insurance carrier authorized to do business in this state stating that security has been provided by the operator as required by section 65B.48.

(c) (d) The commissioner shall include a notice of the penalties contained in this section on all forms for registration of vehicles required to maintain a plan of reparation security.

Sec. 57. Minnesota Statutes 1995 Supplement, section 171.18, subdivision 1, is amended to read:

Subdivision 1. [OFFENSES.] The commissioner may suspend the license of a driver without preliminary hearing upon a showing by department records or other sufficient evidence that the licensee:

(1) has committed an offense for which mandatory revocation of license is required upon conviction;

(2) has been convicted by a court for violating a provision of chapter 169 or an ordinance regulating traffic and department records show that the violation contributed in causing an accident resulting in the death or personal injury of another, or serious property damage;

(3) is an habitually reckless or negligent driver of a motor vehicle;

(4) is an habitual violator of the traffic laws;

(5) is incompetent to drive a motor vehicle as determined in a judicial proceeding;

(6) has permitted an unlawful or fraudulent use of the license;

(7) has committed an offense in another state that, if committed in this state, would be grounds for suspension;

(8) has committed a violation of section 169.444, subdivision 2, paragraph (a), within five years of a prior conviction under that section;

(9) has committed a violation of section 171.22, except that the commissioner may not suspend a person's driver's license based solely on the fact that the person possessed a fictitious or fraudulently altered Minnesota identification card;

(10) has failed to appear in court as provided in section 169.92, subdivision 4; or

(11) has failed to report a medical condition that, if reported, would have resulted in cancellation of driving privileges; or

(12) has been found to have committed an offense under section 169.1218, paragraph (a).

However, an action taken by the commissioner under clause (2) or (5) must conform to the recommendation of the court when made in connection with the prosecution of the licensee.

Sec. 58. Minnesota Statutes 1994, section 171.30, subdivision 2a, is amended to read:

Subd. 2a. [OTHER WAITING PERIODS.] Notwithstanding subdivision 2, a limited license shall not be issued for a period of:

(1) 15 days, to a person whose license or privilege has been revoked or suspended for a violation of section 169.121, 169.123, or a statute or ordinance from another state in conformity with either of those sections;

(2) 90 days, to a person who submitted to testing under section 169.123 if the person's license or privilege has been revoked or suspended for a second or subsequent violation of section 169.121, 169.123, or a statute or ordinance from another state in conformity with either of those sections;

(3) 180 days, to a person:

(i) who refused testing under section 169.123 if the person's license or privilege has been revoked or suspended for a second or subsequent violation of section 169.121, 169.123, or a statute or ordinance from another state in conformity with either of those sections; or

(ii) whose license or privilege has been revoked or suspended for a violation of section 609.21, subdivision 2b; or

(4) one year, to a person whose license or privilege has been revoked or suspended for committing manslaughter resulting from the operation of a motor vehicle, committing criminal vehicular homicide or injury under section 609.21, subdivisions 1, 2, 2a, 3, or 4, or violating a statute or ordinance from another state in conformity with either of those offenses.

Sec. 59. Minnesota Statutes 1994, section 171.30, is amended by adding a subdivision to read:

Subd. 2b. [WAITING PERIODS FOR YOUTH UNDER 18.] If a person whose driver's license was suspended or revoked for a violation listed under subdivision 2 or 2a is under the age of 18 years at the time of that violation, the commissioner shall not issue a limited license to the person for a period of time that is the longest of: (1) 90 days; (2) twice the length of the period specified for that violation in subdivision 2 or 2a; or (3) until the person's 18th birthday.

Sec. 60. [171.302] [LICENSE VIOLATIONS; CONSECUTIVE SENTENCING.]

When sentencing an offender for violating section 171.20, subdivision 2; 171.24; or 171.30, the court may impose consecutive sentences for offenses arising out of a single course of conduct as permitted in section 609.035, subdivision 2.

Sec. 61. Minnesota Statutes 1995 Supplement, section 340A.503, subdivision 1, is amended to read:

Subdivision 1. [CONSUMPTION.] (a) It is unlawful for any:

(1) retail intoxicating liquor or nonintoxicating liquor licensee, municipal liquor store, or bottle club permit holder under section 340A.414, to permit any person under the age of 21 years to drink alcoholic beverages on the licensed premises or within the municipal liquor store; or

(2) person under the age of 21 years to consume any alcoholic beverages. If proven by a preponderance of the evidence, it is an affirmative defense to a violation of this clause that the defendant consumed the alcoholic beverage in the household of the defendant's parent or guardian and with the consent of the parent or guardian.

(b) An offense under paragraph (a), clause (2), may be prosecuted either at the place where consumption occurs or the place where evidence of consumption is observed.

(c) When a person is convicted of or adjudicated for an offense under paragraph (a), clause (2), the court shall determine whether the person consumed the alcohol while operating a motor vehicle. If so, the court shall notify the commissioner of public safety of its determination. Upon receipt of the court's determination, the commissioner shall suspend the person's driver's license or operating privileges for 30 days, or for 180 days if the person has previously been convicted of or adjudicated for an offense under paragraph (a), clause (2).

(d) As used in this subdivision, "consume" includes the ingestion of an alcoholic beverage and the physical condition of having ingested an alcoholic beverage.

Sec. 62. Minnesota Statutes 1994, section 360.0752, subdivision 1, is amended to read:

Subdivision 1. [DEFINITION DEFINITIONS.] As used in this section and section 360.0753,:

(1) "operate" includes the acts of all crew members with responsibility to operate the aircraft;

(2) "drug" has the meaning given in section 151.01, subdivision 5, including controlled substances as defined in section 152.01, subdivision 4;

(3) "hazardous substance" means any chemical or chemical compound that is listed as a hazardous substance in rules adopted under chapter 182; and

(4) "impairing substance" means any substance or combination of substances, other than alcohol, a drug, or a hazardous substance, which has the capacity to affect the nervous system, brain, or muscles of a person so as to impair the person's ability or capacity to drive, operate, or be in physical control of a motor vehicle.

Sec. 63. Minnesota Statutes 1994, section 360.0752, subdivision 2, is amended to read:

Subd. 2. [CRIME; ACTS PROHIBITED.] It is a crime for any person to operate or attempt to operate an aircraft on or over land or water within this state or over any boundary water of this state:

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

(b) when the person is under the influence of a controlled substance, as defined in section 152.01, subdivision 4 drug that affects the nervous system, brain, or muscles of the person so as to impair the person's ability to operate the aircraft;

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

(d) when the person's alcohol concentration is 0.04 or more;

(e) when the person's alcohol concentration as measured within two hours of the time of operation or attempted operation is 0.04 or more;

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

(g) within eight hours of having consumed any alcoholic beverage or used any controlled substance.

Sec. 64. Minnesota Statutes 1994, section 360.0752, subdivision 5, is amended to read:

Subd. 5. [EVIDENCE.] Upon the trial of any prosecution arising out of acts alleged to have been committed by any person arrested for operating or attempting to operate an aircraft in violation of subdivision 2, the court may admit evidence of the amount of alcohol or a controlled substance, drugs, impairing substances, or hazardous substances in the person's blood, breath, or urine as shown by an analysis of those items.

Evidence of the refusal to take a test is admissible into evidence in a prosecution under this section.

If proven by a preponderance of the evidence, it shall be an affirmative defense to a violation of subdivision 2, clause (e), that the defendant consumed a sufficient quantity of alcohol after the time of the violation and before the administration of the evidentiary test to cause the defendant's alcohol concentration to exceed 0.04; provided, that this evidence may not be admitted unless notice is given to the prosecution prior to the omnibus or pretrial hearing in the matter.

The foregoing provisions do not limit the introduction of any other competent evidence bearing upon the question whether or not the person violated this section, including tests obtained more than two hours after the alleged violation and results obtained from partial tests on an infrared breath-testing instrument. A result from a partial test is the measurement obtained by analyzing one adequate breath sample, as defined in section 360.0753, subdivision 4, paragraph (b).

Sec. 65. Minnesota Statutes 1994, section 360.0752, subdivision 7, is amended to read:

Subd. 7. [PRELIMINARY SCREENING TEST.] When a peace officer has reason to believe that a person may be violating or has violated subdivision 2, the officer may require the person to provide a sample of the person's breath for a preliminary screening test using a device approved by the commissioner of public safety or the commissioner of transportation for this purpose. The results of this preliminary screening test shall be used for the purpose of deciding whether to require the tests authorized in section 360.0753, but shall not be used in any court action except to prove that a test was properly required of a person pursuant to section 360.0753. Following the screening test, additional tests may be required of the person pursuant to the provisions of section 360.0753.

A person who refuses to furnish a sample of the person's breath is subject to the provisions of section 360.0753 unless, in compliance with section 360.0753, the person submits to a blood, breath, or urine test to determine the presence of alcohol or a controlled substance, drugs, impairing substances, or hazardous substances.

Sec. 66. Minnesota Statutes 1994, section 360.0753, subdivision 2, is amended to read:

Subd. 2. [IMPLIED CONSENT; CONDITIONS; ELECTION AS TO TYPE OF TEST.] (a) Any person who operates or attempts to operate an aircraft in or over this state or over any boundary water of this state consents, subject to the provisions of this section and section 360.0752, to a chemical test of that person's blood, breath, or urine for the purpose of determining the presence of alcohol or a controlled substance, drugs, impairing substances, or hazardous substances. The test shall be administered at the direction of a peace officer. The test may be required of a person when an officer has probable cause to believe the person was operating or attempting to operate an aircraft in violation of section 360.0752 and one of the following conditions exists:

(1) the person has been lawfully placed under arrest for violation of section 360.0752;

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

(3) the person has refused to take the screening test provided for by section 360.0752;

(4) the screening test was administered and recorded an alcohol concentration of 0.04 or more or the presence of a drug, impairing substance, or hazardous substance; or

(5) the officer had probable cause to believe that the person was operating or attempting to operate an aircraft with any amount of alcohol present in the person's body.

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

(1) that Minnesota law requires the person to take a test to determine the presence of alcohol, drugs, impairing substances, or hazardous substances or to determine if the person is under the influence of alcohol or a controlled substance, drugs, impairing substances, or hazardous substances;

(2) that whether a test is taken or refused, the person may be subject to criminal prosecution for an alcohol or controlled substance, drug, impairing substance, or hazardous substance related offense relating to the operation of an aircraft;

(3) that if testing is refused, the person may be subject to criminal prosecution because the person refused testing and the person will be disqualified from operating an aircraft for a minimum period of one year;

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

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

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

Sec. 67. Minnesota Statutes 1994, section 360.0753, subdivision 3, is amended to read:

Subd. 3. [REQUIREMENT OF URINE OR BLOOD TEST.] Notwithstanding subdivision 2, if there is probable cause to believe there is impairment by a controlled drug, impairing substance, or hazardous substance that is not subject to testing by a breath test, then a urine or blood test may be required even after a breath test has been administered. Action may be taken against a person who refuses to take a blood test under this subdivision only if a urine test was offered, and action may be taken against a person who refuses to take a urine test only if a blood test was offered.

Sec. 68. Minnesota Statutes 1994, section 360.0753, subdivision 6, is amended to read:

Subd. 6. [MANNER OF MAKING TEST; ADDITIONAL TESTS.] (a) Only a physician, medical technician, physician's trained mobile intensive care paramedic, registered nurse, medical technologist, or laboratory assistant acting at the request of a peace officer may withdraw blood for the purpose of determining the presence of alcohol or controlled substance, drugs, impairing substances, or hazardous substances. This limitation does not apply to the taking of a breath or urine sample. The person tested has the right to have someone of the person's own choosing administer a chemical test or tests in addition to any administered at the direction of a peace officer; provided, that the additional test sample on behalf of the person is obtained at the place where the person is in custody, after the test administered at the direction of a peace officer, and at no expense to the state.

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

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

Sec. 69. Minnesota Statutes 1994, section 609.21, is amended to read:

609.21 [CRIMINAL VEHICULAR HOMICIDE AND INJURY.]

Subdivision 1. [CRIMINAL VEHICULAR HOMICIDE.] Whoever causes the death of a human being not constituting murder or manslaughter as a result of operating a motor vehicle,

(1) in a grossly negligent manner;

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

(i) alcohol,;

(ii) a controlled substance, drug that affects the nervous system, brain, or muscles of the person so as to impair the person's ability to operate the motor vehicle; or

(iii) any combination of those elements;

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

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

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

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

(7) and, having caused the accident, leaves the scene of the accident in violation of section 169.09, subdivision 1 or 6,

is guilty of criminal vehicular homicide resulting in death and may be sentenced to imprisonment for not more than ten years or to payment of a fine of not more than $20,000, or both.

Subd. 2. [RESULTING IN GREAT BODILY HARM.] Whoever causes great bodily harm to another, not constituting attempted murder or assault, as a result of operating a motor vehicle,

(1) in a grossly negligent manner;

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

(i) alcohol,;

(ii) a controlled substance, drug that affects the nervous system, brain, or muscles of the person so as to impair the person's ability to operate the motor vehicle; or

(iii) any combination of those elements;

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

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

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

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

(7) and, having caused the accident, leaves the scene of the accident in violation of section 169.09, subdivision 1 or 6,

is guilty of criminal vehicular operation resulting in great bodily harm and may be sentenced to imprisonment for not more than five years or to payment of a fine of not more than $10,000, or both.

Subd. 2a. [RESULTING IN SUBSTANTIAL BODILY HARM.] Whoever causes substantial bodily harm to another, as a result of operating a motor vehicle,

(1) in a grossly negligent manner;

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

(i) alcohol,;

(ii) a controlled substance, drug that affects the nervous system, brain, or muscles of the person so as to impair the person's ability to operate the motor vehicle; or

(iii) any combination of those elements;

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

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

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

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

(7) and, having caused the accident, leaves the scene of the accident in violation of section 169.09, subdivision 1 or 6,

is guilty of criminal vehicular operation resulting in substantial bodily harm and may be sentenced to imprisonment for not more than three years or to payment of a fine of not more than $10,000, or both.

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

(1) in a grossly negligent manner;

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

(i) alcohol;

(ii) a drug that affects the nervous system, brain, or muscles of the person so as to impair the person's ability to operate the motor vehicle; or

(iii) any combination of those elements;

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

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

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

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

(7) and, having caused the accident, leaves the scene of the accident in violation of section 169.09, subdivision 1 or 6.

Subd. 3. [RESULTING IN DEATH TO AN UNBORN CHILD.] Whoever causes the death of an unborn child as a result of operating a motor vehicle,

(1) in a grossly negligent manner;

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

(i) alcohol,;

(ii) a controlled substance, drug that affects the nervous system, brain, or muscles of the person so as to impair the person's ability to operate the motor vehicle; or

(iii) any combination of those elements;

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

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

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

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

(7) and, having caused the accident, leaves the scene of the accident in violation of section 169.09, subdivision 1 or 6,

is guilty of criminal vehicular operation resulting in death to an unborn child and may be sentenced to imprisonment for not more than ten years or to payment of a fine of not more than $20,000, or both. A prosecution for or conviction of a crime under this subdivision is not a bar to conviction of or punishment for any other crime committed by the defendant as part of the same conduct.

Subd. 4. [RESULTING IN INJURY TO UNBORN CHILD.] Whoever causes great bodily harm to an unborn child who is subsequently born alive, as a result of operating a motor vehicle,

(1) in a grossly negligent manner;

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

(i) alcohol,;

(ii) a controlled substance, drug that affects the nervous system, brain, or muscles of the person so as to impair the person's ability to operate the motor vehicle; or

(iii) any combination of those elements;

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

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

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

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

(7) and, having caused the accident, leaves the scene of the accident in violation of section 169.09, subdivision 1 or 6,

as measured within two hours of the time of driving,

is guilty of criminal vehicular operation resulting in injury to an unborn child and may be sentenced to imprisonment for not more than five years or to payment of a fine of not more than $10,000, or both. A prosecution for or conviction of a crime under this subdivision is not a bar to conviction of or punishment for any other crime committed by the defendant as part of the same conduct.

Subd. 4a. [AFFIRMATIVE DEFENSE.] It shall be an affirmative defense to a charge under subdivisions 1, clause (6); 2, clause (6); 2a, clause (6); 2b, clause (6); 3, clause (6); or 4, clause (6), that the defendant used the controlled substance according to the terms of a prescription issued for the defendant in accordance with sections 152.11 and 152.12.

Subd. 5. [DEFINITION DEFINITIONS.] For purposes of this section, the terms defined in this subdivision have the meanings given them.

(a) "motor Motor vehicle" has the meaning given in section 609.52, subdivision 1.

(b) "Drug" has the meaning given in section 151.01, subdivision 5, including controlled substances as defined in section 152.01, subdivision 4.

(c) "Hazardous substance" means any chemical or chemical compound that is listed as a hazardous substance in rules adopted under chapter 182.

(d) "Impairing substance" means any substance or combination of substances, other than alcohol, a drug, or a hazardous substance, which has the capacity to affect the nervous system, brain, or muscles of a person so as to impair the person's ability or capacity to drive, operate, or be in physical control of a motor vehicle.

Sec. 70. Minnesota Statutes 1994, section 629.471, subdivision 2, is amended to read:

Subd. 2. [QUADRUPLE THE FINE.] (a) For offenses under sections 169.09, 169.121, 169.129, 171.24, paragraph (c), 609.2231, subdivision 2, 609.487, and 609.525, the maximum cash bail that may be required for a person charged with a misdemeanor or gross misdemeanor violation is quadruple the highest cash fine that may be imposed for the offense.

(b) Unless the court imposes the conditions of release specified in section 169.121, subdivision 1c, the court must impose maximum bail when releasing a person from detention who has been charged with violating section 169.121, subdivision 1, if the person has three prior impaired driving convictions within the previous ten years or four or more prior impaired driving convictions in the person's lifetime. As used in this subdivision, "prior impaired driving conviction" has the meaning given in section 169.121, subdivision 3.

Sec. 71. [DRUG RECOGNITION TRAINING FOR PEACE OFFICERS; REPORT.]

(a) For purposes of this section, the following terms have the meanings given them:

(1) "drug" has the meaning given in Minnesota Statutes, section 151.01, subdivision 5;

(2) "drug recognition expert" means a peace officer who is certified by the international association of chiefs of police to conduct the 12-step drug evaluation and classification process; and

(3) "12-step drug evaluation and classification process" means the systematic, standardized investigative procedure defined by the National Highway Traffic Safety Administration that is used to determine whether a driver is impaired, whether the impairment relates to drugs or a medical condition and, if drug related, the category of drugs likely to have caused the impairment.

(b) The board of peace officer standards and training, in consultation with the department of public safety, the Minnesota state patrol, the Minnesota chiefs of police, the Minnesota sheriffs' association, and the National Highway Traffic Safety Administration, shall develop a plan for requiring drug recognition training for peace officers. The goals of the plan are:

(1) to ensure that peace officers employed in traffic patrol activities are educated about the need to use a certified drug recognition expert to evaluate a person whom the officer reasonably suspects has been driving while impaired by drugs;

(2) to ensure that a sufficient number of peace officers are certified as drug recognition experts; and

(3) to ensure that drug recognition experts are available statewide at all time periods to evaluate suspected drug-impaired drivers.

(c) To accomplish paragraph (b), clause (1), the plan must consider the feasibility of making a basic level of drug recognition training a mandatory requirement for all new peace officer candidates and an in-service option for current peace officers.

(d) To the extent practicable, the plan must present alternative training requirement scenarios and timetables associated with different levels of training resources. The board shall report this plan to the legislature by January 16, 1997.

Sec. 72. [EFFECTIVE DATES.]

(a) Section 71 is effective the day after final enactment.

(b) The remaining sections are effective August 1, 1996, for crimes committed on or after that date. However, the commissioner may consider violations occurring before August 1, 1996, as prior impaired driving convictions or prior license revocations under sections 45 and 52."

Delete the title and insert:

"A bill for an act relating to crimes; driving while intoxicated; extending the qualifying conditions of impairment for driving, snowmobiling, motorboating, hunting, and flying while intoxicated to include being under the influence of drugs, impairing substances, or hazardous substances; lowering relevant evidence standard for indicating influence of alcohol; providing a longer waiting period before the issuance of a limited license following DWI and certain other offenses if the driver is under the age of 18 years; providing gross misdemeanor penalty for criminal vehicular operation resulting in bodily harm; clarifying the application of consecutive sentencing provisions to impaired driving and driver's license offenses arising out of a single course of conduct; adding cross-references; expanding the prohibitions of the driving while intoxicated and criminal vehicular operation laws to include persons who operate

a motor vehicle with the presence of any amount of a controlled substance in their bodies and to include persons who flee the scene of an accident resulting in death or harm; providing a defense for controlled substance use that complies with a lawfully issued prescription; requiring the POST board to develop a plan to train peace officers in drug recognition techniques; making clarifying technical changes; prescribing penalties; amending Minnesota Statutes 1994, sections 84.81, subdivision 1, and by adding subdivisions; 84.91, subdivisions 1, 3, and 4; 84.911, subdivisions 1, 2, 3, and 4; 86B.005, by adding subdivisions; 86B.331, subdivisions 1, 3, and 4; 86B.335, subdivisions 1, 2, 6, 7, and 10; 97A.015, by adding subdivisions; 97B.065, subdivisions 1, 3, and 4; 97B.066, subdivisions 1, 2, 3, and 4; 169.01, by adding subdivisions; 169.09, subdivision 14; 169.121, subdivisions 1, 1c, 2, 3, 4, 6, 10a, and by adding a subdivision; 169.123, subdivisions 2, 2a, 3, 4, and 6; 169.129; 169.791, by adding a subdivision; 169.797, subdivision 4; 171.30, subdivision 2a, and by adding a subdivision; 360.0752, subdivisions 1, 2, 5, and 7; 360.0753, subdivisions 2, 3, and 6; 609.21; and 629.471, subdivision 2; Minnesota Statutes 1995 Supplement, sections 84.911, subdivision 7; 86B.335, subdivision 13; 171.18, subdivision 1; and 340A.503, subdivision 1; proposing coding for new law in Minnesota Statutes, chapters 169; and 171."

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. 2782, A bill for an act relating to local government; providing for creation of an advisory council on intergovernmental relations; proposing coding for new law in Minnesota Statutes, chapter 15.

Reported the same back with the following amendments:

Page 3, after line 8, insert:

"Subd. 5. [EXPIRATION.] If constituted, the council expires December 31, 1999."

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. 2799, A bill for an act relating to natural resources; modifying provisions for aquatic farms; establishing a season for harvesting ripe wild rice; removing the residency requirement for youth hunting; permitting nonresident students to take big game; modifying priorities for the disposal of state hatchery eggs or fry; modifying the exception for trout and salmon stamps; modifying restrictions on taking sturgeon and paddlefish; removing certain provisions related to wild rice; amending Minnesota Statutes 1994, sections 17.4982, subdivisions 8, 10, 17, 21, and by adding a subdivision; 17.4984, subdivisions 2 and 7; 17.4985, subdivisions 2 and 3; 17.4986; 17.4988, subdivisions 2 and 4; 17.4991, subdivision 3; 17.4992, subdivisions 2 and 3; 17.4993, subdivision 1; 97A.451, by adding a subdivision; 97A.455; 97C.203; 97C.305, subdivision 2; and 97C.411; Minnesota Statutes 1995 Supplement, section 97A.451, subdivision 3; proposing coding for new law in Minnesota Statutes, chapter 84; repealing Minnesota Statutes 1994, sections 84.09; and 84.14.

Reported the same back with the following amendments:

Page 11, after line 23, insert:

"Sec. 18. Minnesota Statutes 1995 Supplement, section 84.788, subdivision 3, is amended to read:

Subd. 3. [APPLICATION; ISSUANCE; REPORTS.] (a) Application for registration or continued registration must be made to the commissioner or an authorized deputy registrar of motor vehicles on a form prescribed by the commissioner. The form must state the name and address of every owner of the off-highway motorcycle and must be signed by at least one owner.

(b) A person who purchases from a retail dealer an off-highway motorcycle that is intended to be operated on public lands or waters shall make application for registration to the dealer at the point of sale. The dealer shall issue a temporary ten-day registration permit to each purchaser who applies to the dealer for registration. The dealer shall submit the completed registration applications and fees to the deputy registrar at least once each week.

(c) Upon receipt of the application and the appropriate fee, the commissioner or deputy registrar shall issue to the applicant, or provide to the dealer, a 60-day temporary receipt and shall assign a registration number that must be affixed to the motorcycle in a manner prescribed by the commissioner. A dealer subject to paragraph (b) shall provide the registration materials and temporary receipt to the purchaser within the ten-day temporary permit period.

(d) The commissioner shall develop a registration system to register vehicles under this section. A deputy registrar of motor vehicles acting under section 168.33, is also a deputy registrar of off-highway motorcycles. The commissioner of natural resources in agreement with the commissioner of public safety may prescribe the accounting and procedural requirements necessary to ensure efficient handling of registrations and registration fees. Deputy registrars shall strictly comply with the accounting and procedural requirements. A fee of $2 in addition to other fees prescribed by law is charged for each off-highway motorcycle registered by:

(1) a deputy registrar and must be deposited in the treasury of the jurisdiction where the deputy is appointed, or kept if the deputy is not a public official; or

(2) the commissioner and must be deposited in the state treasury and credited to the off-highway motorcycle account.

Sec. 19. Minnesota Statutes 1995 Supplement, section 84.922, subdivision 2, is amended to read:

Subd. 2. [APPLICATION, ISSUANCE, REPORTS.] (a) Application for registration or continued registration shall be made to the commissioner of natural resources, the commissioner of public safety or an authorized deputy registrar of motor vehicles on a form prescribed by the commissioner. The form must state the name and address of every owner of the vehicle and be signed by at least one owner.

(b) A person who purchases an all-terrain vehicle from a retail dealer shall make application for registration to the dealer at the point of sale. The dealer shall issue a temporary ten-day registration permit to each purchaser who applies to the dealer for registration. The dealer shall submit the completed registration application and fees to the deputy registrar at least once each week.

(c) Upon receipt of the application and the appropriate fee the commissioner or deputy registrar shall register the vehicle issue to the applicant, or provide to the dealer, a 60-day temporary receipt and shall assign a registration number that must be affixed to the vehicle in a manner prescribed by the commissioner. A dealer subject to paragraph (b) shall provide the registration materials and temporary receipt to the purchaser within the ten-day temporary permit period. The commissioner shall use the snowmobile registration system to register vehicles under this section.

(c) (d) Each deputy registrar of motor vehicles acting under section 168.33, is also a deputy registrar of all-terrain vehicles. The commissioner of natural resources in agreement with the commissioner of public safety may prescribe the accounting and procedural requirements necessary to assure efficient handling of registrations and registration fees. Deputy registrars shall strictly comply with the accounting and procedural requirements.

(d) (e) A fee of $2 in addition to other fees prescribed by law shall be charged for each vehicle registered by:

(1) a deputy registrar and shall be deposited in the treasury of the jurisdiction where the deputy is appointed, or retained if the deputy is not a public official; or

(2) the commissioner and shall be deposited to the state treasury and credited to the all-terrain vehicle account in the natural resources fund."

Page 12, after line 28, insert:

"Sec. 23. Minnesota Statutes 1994, section 97A.535, is amended by adding a subdivision to read:

Subd. 2a. [QUARTERING OF DEER ALLOWED.] A deer that has been tagged as required in subdivision 1 may be quartered at the site of the kill. The animal's head must remain attached to one of the quarters. The quarters must be presented together for registration under subdivision 2 and must remain together until the deer is processed for storage."

Renumber the sections in sequence

Amend the title as follows:

Page 1, line 4, after the semicolon, insert "modifying the registration requirements for off-highway motorcycles and all-terrain vehicles;"

Page 1, line 17, after "97A.455;" insert "97A.535, by adding a subdivision;"

Page 1, line 19, delete "section" and insert "sections 84.788, subdivision 3; 84.922, subdivision 2; and"

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.

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

H. F. No. 2808, A bill for an act relating to local government; revising provisions limiting the compensation of local government officials to a percentage of the governor's salary; amending Minnesota Statutes 1995 Supplement, sections 15A.081, subdivision 7b; and 43A.17, subdivision 9.

Reported the same back with the following amendments:

Page 1, line 22, strike everything after the period

Page 1, strike line 23

Page 1, line 24, strike everything before "In"

Page 2, line 2, delete "The board may provide"

Page 2, delete lines 3 to 8

Pages 2 to 4, delete section 2 and insert:

"Sec. 2. [REPEALER.]

Minnesota Statutes 1995 Supplement, section 43A.17, subdivision 9, is repealed."

Amend the title as follows:

Page 1, line 2, delete "local"

Page 1, line 3, delete "local" and insert "certain"

Page 1, line 5, delete "sections" and insert "section"

Page 1, line 6, delete "and 43A.17, subdivision 9" and insert "repealing Minnesota Statutes 1995 Supplement, section 43A.17, subdivision 9"

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. 2816, A bill for an act relating to consumer privacy; regulating the use and dissemination of personally identifiable information on consumers of computer information services; proposing coding for new law as Minnesota Statutes, chapter 13D.

Reported the same back with the following amendments:

Page 1, line 26, delete "the" and insert "any person in the primary business of" and delete "of"

Page 2, line 2, after "information" insert "directly to or for a consumer"

Page 2, line 23, after "person" insert "other than the consumer"

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

The report was adopted.

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

H. F. No. 2821, A bill for an act relating to capital improvements; providing for water pollution control grants; appropriating money.

Reported the same back with the following amendments:

Page 2, line 4, delete the second comma and insert a period and delete "and the"

Page 2, delete lines 5 to 27

Page 3, line 4, delete "and the following" and insert a period

Page 3, delete lines 5 to 20

Page 3, line 29, delete "If the"

Page 3, delete lines 30 to 36

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

The report was adopted.

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

H. F. No. 2825, A bill for an act relating to gambling; establishing a commission to conduct discussions with Indian tribal governments on gambling issues; prescribing membership of the commission; requiring a report.

Reported the same back with the following amendments:

Page 1, line 9, delete "gaming" and insert "gambling"

Page 1, line 25, delete "must" and insert "may"

Page 2, lines 5, 7, 11, and 14, delete "gaming" and insert " gambling"

Page 2, after line 23, insert:

"The commission is abolished on December 31, 1999."

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. 2829, A bill for an act relating to education; making changes to the board of regents and Minnesota state colleges and universities board candidate advisory councils; specifying duties for the advisory councils; requiring training and evaluation for the board of regents and Minnesota state colleges and universities board; amending Minnesota Statutes 1994, section 137.0245, subdivisions 2, 3, and 4; Minnesota Statutes 1995 Supplement, section 136F.03, subdivisions 2, 3, and 4; proposing coding for new law in Minnesota Statutes, chapters 136F; and 137.

Reported the same back with the following amendments:

Page 3, after line 18, insert:

"Sec. 5. Minnesota Statutes 1995 Supplement, section 136F.56, subdivision 1, is amended to read:

Subdivision 1. [STATE AGENCY PURPOSE AND DUTIES.] The state council on vocational technical education, formerly known as the Minnesota state advisory council for vocational education, is a state agency in the executive branch. Its purpose is to implement section 112 of the Carl D. Perkins Vocational Education Act of 1984, United States Code, title 20, section 2322, and other purposes necessary to improve and promote vocational technical education.

Sec. 6. Minnesota Statutes 1995 Supplement, section 136F.56, subdivision 2, is amended to read:

Subd. 2. [MEMBERS; TERMS.] The governor shall appoint the members of the council according to United States Code, title 20, section 2322. Except as otherwise provided by that act, Members are governed by section 15.0575. The council consists of 16 members appointed to four-year terms. The members must be people who have an interest or expertise in vocational technical education. One-half of the members shall be from the private sector. Geographical diversity must be taken into consideration by the governor in making appointments.

Sec. 7. Minnesota Statutes 1995 Supplement, section 136F.56, is amended by adding a subdivision to read:

Subd. 2a. [COUNCIL OPERATION.] The council shall establish its rules of operation, which must include provisions for public input.

Sec. 8. Minnesota Statutes 1995 Supplement, section 136F.56, subdivision 6, is amended to read:

Subd. 6. [FISCAL AGENT.] The board Minnesota state colleges and universities shall act as fiscal agent for the council and provide other support services necessary for disbursements, accounting, auditing, and reporting.

Sec. 9. Minnesota Statutes 1995 Supplement, section 136F.56, subdivision 7, is amended to read:

Subd. 7. [STAFF.] The council may employ an executive director and other staff needed to carry out its duties. The executive director shall serve serves in the unclassified service and may be paid an allowance not to exceed $2,000 annually for miscellaneous expenses in connection with duties of the office. The council may contract with professional, technical, and clerical consultants and interns needed to carry out its functions."

Page 5, line 32, delete "9" and insert "4 and 10 to 14"

Renumber the sections in sequence

Amend the title as follows:

Page 1, line 7, after the semicolon, insert "making changes to the state council on vocational education;"

Page 1, line 10, delete "section" and insert "sections" and after the semicolon, insert "and 136F.56, subdivisions 1, 2, 6, 7, and by adding a subdivision;"

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. 2841, A bill for an act relating to employment; modifying provisions regarding minimum wages; increasing penalties; modifying employer liability provisions; imposing a penalty; changing inclusions in earnings statement; amending Minnesota Statutes 1994, sections 177.27, subdivisions 2, 4, and by adding subdivisions; 177.30; and 181.032; proposing coding for new law in Minnesota Statutes, chapter 181; repealing Minnesota Statutes 1994, sections 177.27, subdivision 6; 177.33; and 181.17.

Reported the same back with the following amendments:

Page 2, line 1, delete "$5,000" and insert "$1,000"

Page 2, line 4, after the period, insert "In determining the amount of a civil penalty under this subdivision, the appropriateness of such penalty to the size of the employer's business and the gravity of the violation shall be considered."

Page 2, line 32, delete everything after the first "damages" and insert ", less any amount actually paid to the employee by the employer, and for an additional equal amount as liquidated damages. Any employer who is found by the commissioner to have repeatedly or willfully violated a section or sections identified in subdivision 4 shall be subject to a civil penalty of up to $1,000 for each violation for each employee. In determining the amount of a civil penalty under this subdivision, the appropriateness of such penalty to the size of the employer's business and the gravity of the violation shall be considered."

Page 2, delete lines 33 to 36

Page 3, line 1, delete "pursuant to section 549.20." and delete "shall" and insert "may"

Page 3, line 8, delete "shall" and insert "may"

Page 4, line 31, delete "$5,000" and insert "$1,000"

Page 5, line 32, delete "up to three times the damages"

Page 5, line 33, delete "actually sustained, punitive damages,"

Page 5, line 36, delete "shall" and insert "may"

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. 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; 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; 574.02; and 574.03.

Reported the same back with the following amendments:

Page 3, line 17, delete "by a person" and insert "to the legislative auditor" and reinstate "are" and delete "may be"

Page 3, line 18, delete everything before "private"

Page 3, delete line 20 and insert "the individual they would not have been provided the data to the"

Page 3, lines 21 and 22, delete the new language

Page 4, line 5, after "Minnesota," insert "the Minnesota state colleges and universities,"

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. 2858, A bill for an act relating to Camp Ripley; providing for use of the National Guard Education Center as the state education and training center; proposing coding for new law in Minnesota Statutes, chapter 15.

Reported the same back with the following amendments:

Page 1, line 11, delete "shall" and insert "may"

Page 2, line 5, delete "shall" and insert "may"

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. 2867, A bill for an act relating to workers' compensation; modifying provisions governing calculation of premiums; modifying provisions relating to independent contractors; exempting certain rules from expiration; changing terms of a pilot program; making technical changes; amending Minnesota Statutes 1995 Supplement, sections 79.53, subdivision 1; 79.55, subdivision 5; 176.136, subdivision 1a; 176.1812, subdivisions 1 and 6; and 176.261; proposing coding for new law in Minnesota Statutes, chapter 176.

Reported the same back with the following amendments:

Page 4, line 10, after the period, insert "The commissioner shall follow the requirements of section 14.386, paragraph (a)."

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. 2868, A bill for an act relating to capital improvements; appropriating money for a grant to the southwest regional development commission for construction of a historical display facility known as Prairieland Expo; authorizing the sale of bonds.

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

The report was adopted.

Jaros from the Committee on International Trade and Economic Development to which was referred:

H. F. No. 2894, A bill for an act relating to economic development; imposing certain conditions for the use of economic recovery grants; amending Minnesota Statutes 1994, section 116J.873, subdivision 4; Minnesota Statutes 1995 Supplement, section 116J.873, subdivision 3.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 1994, section 116J.873, as amended by Laws 1995, chapter 224, sections 55 and 56, is amended to read:

116J.873 [ECONOMIC RECOVERY MINNESOTA INVESTMENT FUND GRANTS.]

Subdivision 1. [ADMINISTRATION.] Economic recovery Minnesota investment fund grants shall be made available to local communities and recognized Indian tribal governments in accordance with the rules adopted for economic development grants in the small cities community development block grant programs, except that all units of general purpose local government are eligible applicants for economic recovery Minnesota investment fund grants. The commissioner of trade and economic development shall administer the economic recovery Minnesota investment fund grant program as a part of the small cities development program. A city, county, or town may grant money received under this section to a regional development commission to provide the local match required for capitalization of a regional revolving loan fund.