Stanek and Warkentin were excused.

Bishop was excused until 12:00 noon. Tuma was excused until 12:30 p.m.

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

S. F. No. 1775 and H. F. No. 1964, which had been referred to the Chief Clerk for comparison, were examined and found to be identical with certain exceptions.

Hackbarth moved that the rules be so far suspended that S. F. No. 1775 be substituted for H. F. No. 1964 and that the House File be indefinitely postponed. The motion prevailed.

S. F. No. 1861 and H. F. No. 2259, which had been referred to the Chief Clerk for comparison, were examined and found to be identical with certain exceptions.

Wagenius moved that the rules be so far suspended that S. F. No. 1861 be substituted for H. F. No. 2259 and that the House File be indefinitely postponed. The motion prevailed.

S. F. No. 1866 and H. F. No. 2108, which had been referred to the Chief Clerk for comparison, were examined and found to be identical with certain exceptions.

Van Engen moved that the rules be so far suspended that S. F. No. 1866 be substituted for H. F. No. 2108 and that the House File be indefinitely postponed. The motion prevailed.

S. F. No. 1905 and H. F. No. 2264, which had been referred to the Chief Clerk for comparison, were examined and found to be identical.

Peterson moved that S. F. No. 1905 be substituted for H. F. No. 2264 and that the House File be indefinitely postponed. The motion prevailed.

S. F. No. 2123 and H. F. No. 2368, which had been referred to the Chief Clerk for comparison, were examined and found to be identical with certain exceptions.

Jefferson moved that the rules be so far suspended that S. F. No. 2123 be substituted for H. F. No. 2368 and that the House File be indefinitely postponed. The motion prevailed.

S. F. No. 2196 and H. F. No. 2242, which had been referred to the Chief Clerk for comparison, were examined and found to be identical.

Wejcman moved that S. F. No. 2196 be substituted for H. F. No. 2242 and that the House File be indefinitely postponed. The motion prevailed.

S. F. No. 2381 and H. F. No. 2615, which had been referred to the Chief Clerk for comparison, were examined and found to be identical with certain exceptions.

Jennings moved that the rules be so far suspended that S. F. No. 2381 be substituted for H. F. No. 2615 and that the House File be indefinitely postponed. The motion prevailed.

S. F. No. 2457 and H. F. No. 2213, which had been referred to the Chief Clerk for comparison, were examined and found to be identical with certain exceptions.

Solberg moved that the rules be so far suspended that S. F. No. 2457 be substituted for H. F. No. 2213 and that the House File be indefinitely postponed. The motion prevailed.

S. F. No. 2471 and H. F. No. 2735, which had been referred to the Chief Clerk for comparison, were examined and found to be identical with certain exceptions.

Rukavina moved that the rules be so far suspended that S. F. No. 2471 be substituted for H. F. No. 2735 and that the House File be indefinitely postponed. The motion prevailed.

S. F. No. 2643 and H. F. No. 3053, which had been referred to the Chief Clerk for comparison, were examined and found to be identical with certain exceptions.

Leppik moved that the rules be so far suspended that S. F. No. 2643 be substituted for H. F. No. 3053 and that the House File be indefinitely postponed. The motion prevailed.

S. F. No. 2720 and H. F. No. 3123, which had been referred to the Chief Clerk for comparison, were examined and found to be identical with certain exceptions.

Pelowski moved that the rules be so far suspended that S. F. No. 2720 be substituted for H. F. No. 3123 and that the House File be indefinitely postponed. The motion prevailed.

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

H. F. No. 2562, A bill for an act relating to economic development; requiring some businesses with state or local financial assistance to pay at least a poverty level wage; proposing coding for new law in Minnesota Statutes, chapter 177.

Reported the same back with the following amendments:

Page 1, delete lines 9 to 16 and insert:

"Subdivision 1. [APPLICATION.] (a) This section only applies to the following types of employers:

(1) a for profit corporation;

(2) a nonprofit corporation provided that the ratio of total compensation of the corporation's chief executive officer exceeds the full time equivalent of its lowest paid employee by 25 to 1;

(3) a partnership;

(4) a limited liability company; or

(5) a sole proprietorship.

This section excludes those employers that satisfy the definition of a small business in section 645.445. Notwithstanding the requirement that a small business must be a for profit business, any nonprofit corporation that otherwise satisfies the definition in section 645.445 is excluded from satisfying the provisions of this section.

(b) Of the employers listed in paragraph (a), this section only applies to employers that receive state or local assistance in the form of a grant, loan, or tax increment financing, if:"

Page 1, line 21, delete "(b) The assistance recipient" and insert "(c) Employers that meet the criteria stated in paragraphs (a) and (b)"

Page 2, line 3, delete "assistance recipient" and insert "employer"

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. 2704, 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.

Reported the same back with the following amendments:

Pages 6 and 7, delete sections 4 and 5

Pages 11 to 14, delete sections 8, 9, and 10

Page 17, lines 5, 11, and 16, after "commissioner" insert "of public service"

Page 17, delete section 21

Pages 19 to 22, delete sections 23 and 24

Page 22, line 8, after "commissioner" insert "of public service"

Page 22, lines 24, 26, and 33, after "commissioner" insert " of transportation"

Page 23, lines 1 and 7, after "commissioner" insert "of public service"

Page 23, delete section 27

Pages 24 and 25, delete section 29

Page 25, line 21, after "commissioner" insert "of public service"

Pages 25 to 27, delete sections 31, 32, and 33

Page 28, line 3, after "commissioner" insert "of public service"

Page 29, lines 9, 10, and 28, after "commissioner" insert "of transportation"

Page 30, lines 5, 11, 14, 17, 20, 22, 27, 31, and 32, after "commissioner" insert "of transportation"

Page 31, lines 4, 6, 14, and 23, after "commissioner" insert "of transportation"

Pages 32 to 35, delete sections 39 and 40

Page 36, line 27, after "commissioner" insert "of public service"

Page 36, line 32, after "commissioner" insert "of public service"

Page 39, line 22, after "commissioner" insert "of public service"

Page 40, delete section 48

Page 40, line 27, strike the second "any"

Page 40, line 30, before the comma, insert "of transportation or public service"

Page 40, line 33, after "commissioner" insert "of transportation"

Page 41, delete section 52

Page 42, lines 19, 22, 27, and 36, delete "transportation" and insert "public service"

Page 42, line 35, delete " $360,000" and insert " $206,000"

Page 43, after line 2, insert:

"Sec. 39. [INSTRUCTION TO REVISOR.]

The revisor of statutes, in the next and subsequent editions of Minnesota Statutes, shall in chapters 218, 219, and 221:

(1) change the term "board" or "transportation regulation board" to "commissioner of public service," and make such other stylistic changes as are necessary, wherever they appear; and

(2) change the term "commissioner" and "department" to "commissioner of transportation" and "department of transportation" wherever they appear."

Page 43, line 13, delete "56" and insert "40"

Renumber the sections in sequence

Delete the title and insert:

"A bill for an act relating to transportation; abolishing transportation regulation board and transferring duties and powers to commissioners of public service and 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; 218.031, subdivisions 1 and 2; 218.041, subdivision 5; 221.011, subdivisions 7, 8, 9, 14, and by adding subdivisions; 221.021; 221.025; 221.051, by adding a subdivision; 221.071, subdivision 2; 221.111; 221.124, subdivision 2; 221.141, subdivision 1; 221.161, subdivision 1; 221.171, subdivision 1; 221.172, subdivisions 3 and 9; 221.185, subdivisions 1, 2, 4, and 9; 221.281; 221.291, subdivision 4; 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, chapter 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.

The report was adopted.

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

S. F. No. 2347, A bill for an act relating to human services; proposing reform measures; making changes to the Minnesota family investment plan program; case management services to caregivers; defining "intensive ESL"; requiring family support agreement for some families on assistance; providing recovery of AFDC due to an ATM error; defining case manager and two-parent families; adding provisions for employment and training services; adding provisions to food stamp employment and training program; establishing the MNJOBS program; requiring the commissioner to take steps to prevent assistance recipients from obtaining assistance via an ATM or cashing assistance checks at gambling establishments; providing injury protection for tribal JOBS programs; appropriating money to the sliding fee child care program; appropriating money for the AFDC child care entitlement program; amending Minnesota Statutes 1994, sections 53A.09; 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; 256D.06, by adding a subdivision; 256D.10; 256D.49, subdivision 3; 256E.08, subdivision 8; and 336.3-206; Minnesota Statutes 1995 Supplement, sections 256.0475, by adding a subdivision; 256.048, subdivisions 1, 4, 6, and 13; 256.73, subdivision 8; 256.736, subdivisions 10, 10a, 14, and 16; 256.737, subdivision 7; 256.76, subdivision 1; 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 256.736, subdivisions 10b and 11; Minnesota Statutes 1995 Supplement, section 256.736, subdivision 13.

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 may 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 be presented to the task force authorized by section 3, 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, to be presented to the task force authorized by section 3, for the legislature which would address these changes.

Sec. 3. Laws 1995, chapter 178, article 1, section 1, is amended to read:

Section 1. [LEGISLATIVE TASK FORCE TO GUIDE WELFARE REFORM.]

Subdivision 1. [MEMBERSHIP.] The speaker of the house and the senate majority leader shall appoint at least five members from each body to constitute a legislative task force to guide welfare reform. At least two of the members appointed from each body shall be from the minority party. The task force shall be jointly chaired by a member of the senate and a member of the house of representatives. Members shall be appointed before June 1, 1995, and shall convene as soon as possible during the 1995 interim at the call of the chairs.

Subd. 2. [DUTIES.] Members shall examine options for welfare reform in the program of Aid to Families with Dependent Children, with a view to designing an integrated, comprehensive statewide program for presentation to the legislature during the 1996 1997 session. Members shall design a program which encourages family self-sufficiency and promotes work and which is coordinated and integrated with the Minnesota STRIDE program, the MFIP program, the targeted jobs program developed under section 268.905, and any changes enacted by the Congress during the 1995 session. Members shall also review the temporary county assistance program authorized by Minnesota Statutes, section 256D.23, and make recommendations on that program to the 1996 1997 legislature.

The departments of human services and economic security shall assist the task force by providing information as requested. The task force shall seek input from a wide variety of groups, including state agencies, the governor's office, county agencies, advocacy groups including representatives of non-English-speaking constituencies, welfare recipients, and local and national experts. The task force shall be assisted as necessary by legislative staff.

Subd. 3. [REPORT.] The task force shall present a report containing its recommendations on the temporary county assistance program and its proposal for comprehensive welfare reform, with draft legislation, to the legislature by February 1, 1996 1997. The report shall specify federal waivers needed and set timelines for implementation.

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 ERRORS.] 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 amount of the ATM error by immediately withdrawing funds from the recipient's electronic benefit transfer account, up to the amount of the ATM error.

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 and provided that both caregivers are proficient in English, 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. If the second caretaker is enrolled in a post-secondary education or training program as of the effective date of this section, the second caretaker is exempt from the job search and work experience requirements of this paragraph for a period of one year or until the caretaker stops attending the post-secondary program, whichever is shorter.

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 and provided that both caregivers are proficient in English, 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. If the second caretaker is enrolled in a post-secondary education or training program as of the effective date of this section, the second caretaker is exempt from the job search and work experience requirements of this paragraph for a period of one year or until the caretaker stops attending the post-secondary program, whichever is shorter.

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 1994, section 256.73, is amended by adding a subdivision to read:

Subd. 2a. [INDIVIDUAL DEVELOPMENT ACCOUNTS.] Notwithstanding subdivision 2, the commissioner of human services shall seek a waiver to permit each member of a recipient unit to set aside up to $2,500 per year in a separate savings account specifically for future education or employment needs, or for the purpose of starting a business or purchasing a home.

Sec. 14. Minnesota Statutes 1995 Supplement, section 256.73, subdivision 8, is amended to read:

Subd. 8. [RECOVERY OF OVERPAYMENTS AND ATM ERRORS.] (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 amount of the ATM error by immediately withdrawing funds from the recipient's electronic benefit transfer account, up to the amount of the ATM error. 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. 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 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. 19. 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 and provided that both caregivers are proficient in English, 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. If the second caretaker is enrolled in a post-secondary education or training program as of the effective date of this section, the second caretaker is exempt from the job search and work experience requirements of this paragraph for a period of one year or until the caretaker stops attending the post-secondary program, whichever is shorter.

Sec. 20. Minnesota Statutes 1995 Supplement, section 256.736, subdivision 16, is amended to read:

Subd. 16. [ALLOCATION AND USE OF MONEY.] (a) State money appropriated for employment and training services under this section must be allocated to counties as specified in paragraphs (b) to (l).

(b) For purposes of this subdivision, "targeted caretaker" means a recipient who:

(1) is a custodial parent under the age of 24 who: (i) has not completed a high school education and at the time of application for AFDC is not enrolled in high school or in a high school equivalency program; or (ii) had little or no work experience in the preceding year;

(2) is a member of a family in which the youngest child is within two years of being ineligible for AFDC due to age; or

(3) has received 36 months or more of AFDC over the last 60 months.

(c) One hundred percent of the money appropriated for case management services as described in subdivision 11 must be allocated to counties based on the average number of cases in each county described in clause (1). Money appropriated for employment and training services as described in subdivision 1a, paragraph (d), other than case management services, must be allocated to counties as follows:

(1) Forty percent of the state money must be allocated based on the average number of cases receiving AFDC in the county which either have been open for 36 or more consecutive months or have a caretaker who is under age 24 and who has no high school or general equivalency diploma. The average number of cases must be based on counts of these cases as of March 31, June 30, September 30, and December 31 of the previous year.

(2) Twenty percent of the state money must be allocated based on the average number of cases receiving AFDC in the county which are not counted under clause (1). The average number of cases must be based on counts of cases as of March 31, June 30, September 30, and December 31 of the previous year.

(3) Twenty-five percent of the state money must be allocated based on the average monthly number of assistance units in the county receiving AFDC-UP for the period ending December 31 of the previous year.

(4) Fifteen percent of the state money must be allocated at the discretion of the commissioner based on participation levels for target group members in each county.

(d) No more than 15 percent of the money allocated under paragraph (b) and no more than 15 percent of the money allocated under paragraph (c) may be used for administrative activities.

(e) At least 55 percent of the money allocated to counties under paragraph (c) must be used for employment and training services for caretakers in the target groups, and up to 45 percent of the money may be used for employment and training services for nontarget caretakers. One hundred percent of the money allocated to counties for case management services must be used to provide those services to caretakers in the target groups.

(f) Money appropriated to cover the nonfederal share of costs for bilingual case management services to refugees for the employment and training programs under this section are allocated to counties based on each county's proportion of the total statewide number of AFDC refugee cases. However, counties with less than one percent of the statewide number of AFDC refugee cases do not receive an allocation.

(g) Counties, the department of economic security, and entities under contract with either the department of economic security or the department of human services for provision of STRIDE related services shall bill the commissioner of human services for any expenditures incurred by the county, the county's employment and training service provider, or the department of economic security that may be reimbursed by federal money. The commissioner of human services shall bill the United States Department of Health and Human Services and the United States Department of Agriculture for the reimbursement and appropriate the reimbursed money to the county, the department of economic security, or employment and training service provider that submitted the original bill. The reimbursed money must be used to expand employment and training services.

(h) The commissioner of human services shall review county expenditures of case management and employment and training block grant money at the end of the third quarter of the biennium and each quarter after that, and may reallocate unencumbered or unexpended money allocated under this section to those counties that can demonstrate a need for additional money. Reallocation of funds must be based on the formula set forth in paragraph (a), excluding the counties that have not demonstrated a need for additional funds.

(i) The county agency may continue to provide case management and supportive services to a participant for up to 90 days after the participant loses AFDC eligibility and may continue providing a specific employment and training service for the duration of that service to a participant if funds for the service are obligated or expended prior to the participant losing AFDC eligibility.

(j) One hundred percent of the money appropriated for an unemployed parent work experience program under section 256.737 must be allocated to counties based on the average monthly number of assistance units in the county receiving AFDC-UP for the period ending December 31 of the previous year.

(k) The commissioner may waive the requirement of paragraph (e) that case management funds be spent only on case management services in order to permit the development of a unified STRIDE funding allocation for each county agency. The unified allocation may be expended by the county agency for case management and employment and training activities in the proportion determined necessary to streamline administrative procedures and enhance program performance. The commissioner, in consultation with the commissioner of economic security, may also grant a waiver from program spending limits in paragraphs (d) and (e) to any county which can demonstrate increased program effectiveness through a written request to the department. Counties which request a waiver of the spending limits in paragraphs (d) and (e) shall amend their local service unit plans and receive approval of the plans prior to commencing the waiver. The commissioners of human services and economic security shall annually evaluate the effectiveness of all waivers approved under this subdivision.

(l) Effective July 1, 1995, the commissioner of human services shall begin developing a performance model for the purpose of analyzing each county's performance in the provision of STRIDE employment and training services. Beginning February 1, 1997, and each year thereafter, the commissioner of human services shall inform each county of the county's performance based upon the following measures:

(1) employment rate at termination of STRIDE eligibility;

(2) wage rate at termination of STRIDE eligibility;

(3) average annual cost per placement calculated by dividing the total STRIDE expenditures by the number of participants placed in unsubsidized employment;

(4) AFDC-UP participation rate;

(5) percentage of 18- and 19-year-old custodial parents subject to secondary education requirements of subdivision 3b who complete secondary education or equivalent course of study; and

(6) achievement of federally mandated JOBS participation rate.

Performance measures (1), (2), and (3) shall be adjusted to reflect local conditions.

County agencies must take the results of these performance measures into consideration when selecting employment and training service providers.

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 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, 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. 23. 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. 24. 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. 25. 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. 26. 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. 27. 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. 28. 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. 29. Minnesota Statutes 1994, section 256D.06, is amended by adding a subdivision to read:

Subd. 8. [RECOVERY OF ATM ERRORS.] 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 amount of the ATM error by immediately withdrawing funds from the recipient's electronic benefit transfer account, up to the amount of the ATM error.

Sec. 30. 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. 31. 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. 32. Minnesota Statutes 1994, section 256D.49, subdivision 3, is amended to read:

Subd. 3. [OVERPAYMENT OF MONTHLY GRANTS AND RECOVERY OF ATM ERRORS.] 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 amount of the ATM error by immediately withdrawing funds from the recipient's electronic benefit transfer account, up to the amount of the ATM error. Residents of nursing homes, regional treatment centers, and facilities with negotiated rates shall not have overpayments recovered from their personal needs allowance.

Sec. 33. 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. 34. [YOUTHBUILD EARNINGS EXCLUDED.]

The commissioner of human services shall seek federal waivers as necessary of the requirements for the program of aid to families with dependent children to exclude from the calculation of income under Minnesota Statutes, section 256.74, the earnings of any caretaker or dependent child which are attributable to participation in the youth employment program authorized by Minnesota Statutes, sections 268.361 to 268.367.

Sec. 35. [WAIVER AUTHORITY.]

The commissioner of human services shall seek federal waivers as necessary to implement sections 10 and 11.

Sec. 36. [SEVERABILITY.]

If any provision of sections 10, 11, 22, and 35 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. 37. [APPROPRIATION.]

$450,000 is appropriated from the general fund to the commissioner of human services for the fiscal year ending June 30, 1997, to provide child care for two-parent working families who are mandated to participate in the STRIDE program.

Sec. 38. [REPEALER.]

Minnesota Statutes 1995 Supplement, section 256.736, subdivisions 10b, 11, and 13, are repealed.

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, to be presented to the task force authorized by Laws 1995, chapter 178, article 1, section 1, 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 low-income families without respect to receipt of income assistance;

(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 funds 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.]

$5,500,000 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.] The commissioners of human services and economic security shall 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) or the MFIP evaluation. 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) approve county MNJOBS plans; and

(6) 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 except in MFIP counties where STRIDE will be continued for families assigned to certain research groups.

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 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

(5) 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) the consequences for failure without good cause to comply with program requirements; and

(4) 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. Working with the caretaker, the employment advisor 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 or 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 prepared according to section 256.736, subdivision 10, clauses (14) and (15). 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) 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 subject to the provisions of subdivision 8, or deferred under subdivision 9. Notwithstanding section 256H.11, subdivision 1, for purposes of the MNJOBS program the limit on job search child care shall be 480 hours annually. 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 or an equivalency program under section 256.736, subdivision 3b;

(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;

(9) a child under the age of 16, or a child who is 16 or 17 years of age and is attending elementary or secondary school or a secondary level vocational or technical school full-time; or

(10) 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 of the job search program under section 256.736, subdivision 14, and 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, and for current STRIDE participants, be making good and satisfactory progress on an approved EDP 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 three months;

(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. 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] [PROGRAM FUNDING.]

(a) [FUNDING.] After ensuring that all persons required to participate in the county's food stamp employment and training program will be served under that program, any remaining unexpended state funds from the county's food stamp employment aid training program allocation for that fiscal year may be combined with the county's project STRIDE allocation for that same fiscal year and are available to administer the MNJOBS program.

(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.

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.

Sec. 9. [APPROPRIATION.]

$102,000 is appropriated from the general fund to the commissioner of human services for the fiscal year ending June 30, 1997, for the purpose of applying for necessary federal waivers to implement the program, and for administering the MNJOBS program."

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 provisions in MFIP, AFDC, 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 3b, 4, and 12; 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, 14, and 16; 256.81; 256D.02, subdivision 12a; 256D.03, subdivisions 2 and 2a; 256D.05, subdivision 1; 256D.051, subdivisions 1 and 6; 256D.055; and 256D.09, subdivision 1; Laws 1995, chapter 178, article 1, section 1; proposing coding for new law in Minnesota Statutes, chapter 256; repealing Minnesota Statutes 1995 Supplement, section 256.736, subdivisions 10b, 11, and 13."

With the recommendation that when so amended the bill pass.

The report was adopted.

H. F. Nos. 2562 and 2704 were read for the second time.

S. F. Nos. 1775, 1861, 1866, 1905, 2123, 2196, 2381, 2457, 2471, 2643, 2720 and 2347 were read for the second time.

The following messages were received from the Senate:

Mr. Speaker:

I hereby announce the passage by the Senate of the following House File, herewith returned:

H. F. No. 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.

Patrick E. Flahaven, Secretary of the Senate

Mr. Speaker:

I hereby announce the passage by the Senate of the following House File, herewith returned:

H. F. No. 2149, A bill for an act relating to state government; providing for a representative of organized labor on the pollution control agency board; amending Minnesota Statutes 1995 Supplement, section 116.02, subdivision 1.

Patrick E. Flahaven, Secretary of the Senate

Mr. Speaker:

I hereby announce the passage by the Senate of the following House File, herewith returned:

H. F. No. 2513, A bill for an act relating to economic development; authorizing port authorities to use certain provisions of the uniform municipal contracting law; amending Minnesota Statutes 1994, section 469.068, by adding a subdivision.

Patrick E. Flahaven, Secretary of the Senate

Mr. Speaker:

I hereby announce that the Senate accedes to the request of the House for the appointment of a Conference Committee on the amendments adopted by the Senate to the following House File:

H. F. No. 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.

The Senate has appointed as such committee:

Mr. Price; Ms. Reichgott Junge and Mr. Kelly.

Said House File is herewith returned to the House.

Patrick E. Flahaven, Secretary of the Senate

Mr. Speaker:

I hereby announce that the Senate accedes to the request of the House for the appointment of a Conference Committee on the amendments adopted by the Senate to the following House File:

H. F. No. 3249, A bill for an act relating to the financing and operation of government in this state; modifying certain tax rates, credits, refunds, bases, and exemptions; modifying property tax exemptions, valuation, and classification; providing a senior citizen property tax deferral; providing for the deposit of certain revenues in the highway user tax distribution and transit assistance funds; establishing an education investment fund; providing tax incentives for savings for education; changing tax increment financing, special services district, and taxing district provisions; authorizing local taxes; authorizing certain special districts; providing local levy or other authority; authorizing municipal debt; providing for certain tax base sharing; changing certain aids; modifying revenue recapture; making tax policy, collection, administrative and technical changes, corrections, and clarifications; requiring studies; providing for appointments; appropriating money; amending Minnesota Statutes 1994, sections 10A.31, subdivision 3a; 13.99, subdivision 97a; 103E.611, subdivision 7; 115.26, by adding a subdivision; 165.08, subdivision 5; 216B.16, by adding a subdivision; 239.761, subdivision 5; 270.067, subdivision 2; 270.07, subdivision 1; 270.102, subdivisions 1, 2, and 3; 270.70, subdivision 2; 270A.03, subdivision 2; 270B.12, by adding a subdivision; 273.02, subdivision 3; 273.11, subdivision 1a; 273.111, subdivisions 3 and 6; 273.124, by adding a subdivision; 273.13, subdivisions 22, 23, and 32; 273.1398, by adding a subdivision; 275.065, subdivision 5a; 275.07, subdivision 4, and by adding a subdivision; 275.61; 278.01, by adding a subdivision; 278.08; 279.06, subdivision 1; 279.37, by adding a subdivision; 281.17; 287.06; 289A.50, by adding a subdivision; 289A.56, subdivision 4; 290.01, subdivisions 4a and 19a; 290.06, subdivisions 2c and 22; 290.091, subdivisions 2 and 6; 290.0922, subdivisions 1 and 3; 290.095, subdivision 3; 290.17, subdivision 2; 290A.03, subdivision 11; 290A.25; 295.51, subdivision 1, and by adding a subdivision; 295.52, by adding a subdivision; 295.54, subdivisions 1, 2, and by adding a subdivision; 296.01, subdivisions 2 and 13; 296.02, by adding a subdivision; 296.025, subdivision 6; 296.141, subdivisions 4 and 5; 296.15, by adding a subdivision; 296.17, subdivision 7; 297.04, subdivision 9; 297A.01, subdivision 16; 297A.02, subdivision 5; 297A.14, by adding a subdivision; 297A.15, subdivision 6; 297A.21, subdivision 4; 297A.211, subdivision 3; 297A.24, subdivision 1; 297A.25, subdivisions 14, 37, and by adding a subdivision; 297A.256, subdivision 1; 297A.2572; 297A.2573; 297A.44, subdivision 1; 297A.46; 297B.09, subdivision 1; 297E.02, subdivisions 4 and 10; 298.01, subdivision 4e; 298.17; 298.28, subdivisions 2 and 11; 298.75, subdivision 1, and by adding a subdivision; 349.15, by adding a subdivision; 349.154, subdivision 2; 349.19, subdivision 2, and by adding a subdivision; 373.40, subdivision 7; 375.192, subdivision 2; 383B.51; 428A.01, subdivisions 2 and 3; 428A.02, subdivision 1; 444.075, by adding a subdivision; 458A.32, subdivision 4; 469.040, subdivision 3, and by adding a subdivision; 469.167, subdivision 2; 469.173, subdivision 7; 469.174, subdivision 2; 469.176, subdivision 4f; 469.1761, subdivision 1; 469.177, subdivision 3; 471.88, subdivision 14; 473.625; 477A.011, subdivisions 3, 20, 27, 32, and 35; and 477A.013, subdivision 6; Minnesota Statutes 1995 Supplement, sections 41A.09, subdivision 2a; 115B.48, by adding subdivisions; 115B.49, subdivisions 2 and 4; 116.07, subdivision 10; 124A.03, subdivision 2; 216B.161, subdivision 1; 270A.03, subdivision 7; 272.02, subdivision 1; 273.11, subdivision 16; 273.124, subdivisions 3 and 13; 273.13, subdivisions 24 and 25; 273.1398, subdivision 1; 273.1399, subdivisions 6 and 7; 275.065, subdivisions 3 and 6; 275.08, subdivision 1b; 276.04, subdivision 2; 289A.40, subdivision 1; 290.01, subdivision 19b; 290.067, subdivision 1; 290.191, subdivisions 5 and 6; 290A.04, subdivision 2h; 295.50, subdivisions 3 and 4; 295.53, subdivisions 1, 5, and by adding a subdivision; 296.02, subdivision 1; 296.025, subdivision 1; 296.12, subdivision 3; 297A.01, subdivision 3; 297A.02, subdivision 4; 297A.25, subdivisions 57 and 59; 297A.45, subdivisions 2, 3, and 4; 297B.01, subdivision 8; 428A.05; 465.82, subdivision 2; 469.169, subdivisions 9 and 10; 469.174, subdivision 4; 469.175, subdivisions 1, 5, and 6; 469.176, subdivision 2; 469.177, subdivision 1; 471.6965; 473.448; 477A.0121, subdivision 4; 477A.0132; and 477A.03, subdivision 2; Laws 1963, chapter 118, sections 1, subdivision 3; 2; 4; 6; Laws 1971, chapter 869, sections 2, subdivisions 2, as amended, 14, and 17, as added; 3, subdivisions 5, 6, and 9; 4, subdivisions 1, 2, and 5, as amended; 5, subdivisions 1 and 3; 8; 10, subdivision 3b, as added; 12, subdivisions 1, as amended, and 2, as amended; 17, subdivision 11; 19; 20, subdivision 2; 21; 24; Laws 1985, chapter 302, section 2, subdivision 1, as amended; Laws 1991, chapter 291, article 8, section 27, by adding a subdivision; Laws 1992, chapter 511, article 8, section 39; and Laws 1995, chapter 264, articles 2; sections 42, subdivision 1; and 44; 5, sections 40, subdivision 1; 44, subdivision 4; and 45, subdivision 1; proposing coding for new law in Minnesota Statutes, chapters 11A; 103D; 115B; 136A; 272; 273; 281; 287; 290; 290A; 297A; 315; 375; 428A; 462A; 469; and 477A; proposing coding for new law as Minnesota Statutes, chapters 276A; and 290B; repealing Minnesota Statutes 1994, sections 13.99, subdivision 97; 273.1316; 273.1317; 273.1318; 273.1398, subdivision 5b; 290.06, subdivision 21; 290.092; 295.37; 295.39; 295.40; 295.41; 295.42; 295.43; 295.50, subdivisions 8, 9, 9a, 11, 12, and 12a; 296.25, subdivision 1a; 297A.01, subdivision 20; 297A.14, subdivision 3; 297A.15, subdivision 5; 297A.24, subdivision 2; and 469.150; Minnesota Statutes 1995 Supplement, sections 270B.12, subdivision 11; 276.012; 290A.055; 290A.26; and 469.176, subdivision 7; Laws 1971, chapter 869, section 6, subdivision 3; Laws 1987, chapter 285; and Laws 1995, chapter 264, article 4.

The Senate has appointed as such committee:

Messrs. Johnson, D. J.; Hottinger; Mses. Flynn; Pappas and Mr. Belanger.

Said House File is herewith returned to the House.

Patrick E. Flahaven, Secretary of the Senate

Mr. Speaker:

I hereby announce the passage by the Senate of the following House File, herewith returned, as amended by the Senate, in which amendment the concurrence of the House is respectfully requested:

H. F. No. 2206, A bill for an act relating to education; removing mandates from higher education; requiring increased accountability and performance for funding; amending Minnesota Statutes 1994, sections 15.43, subdivisions 2 and 3; 16B.01, subdivision 2; 16B.21, subdivisions 1 and 3; 16B.33, subdivisions 1, 3, 4, and by adding a subdivision; 16B.35, by adding a subdivision; 16B.41, subdivision 2; 16B.482; 16B.49; 16B.531; 16B.54, subdivision 1; 16B.85, subdivision 2; 43A.05, subdivision 4; 43A.10, subdivision 3; 123.70, subdivision 10; 135A.033; 135A.14, as amended; 137.37; 169.448, subdivision 2; 201.1611; and 248.07, subdivision 7; Minnesota Statutes 1995 Supplement, sections 16B.17, subdivision 6; 16B.465, subdivision 4; 43A.06, subdivision 1; 135A.181; 136A.101, subdivision 10; 136F.06, subdivisions 1 and 2; 136F.12; 136F.16, subdivision 3; 136F.18; 136F.30; 136F.36, subdivision 2; 136F.44; 136F.50; 136F.53, subdivisions 1 and 3; 136F.58; 136F.71, by adding a subdivision; 136F.72, subdivision 3; 136F.80, subdivision 2; and 169.441, subdivision 5; Laws 1995, chapter 212, article 2, sections 15; and 20, subdivisions 1 and 2; proposing coding for new law in Minnesota Statutes, chapters 135A; 136A; and 136F; repealing Minnesota Statutes 1994, sections 137.03; 137.05; 137.06; 137.07; 137.08; 137.11; 137.14; 137.15; and 137.33; Minnesota Statutes 1995 Supplement, sections 135A.08; 136F.25; and 136F.59, subdivision 1; Laws 1995, chapter 212, article 1, section 6, subdivision 1.

Patrick E. Flahaven, Secretary of the Senate

Pelowski moved that the House refuse to concur in the Senate amendments to H. F. No. 2206, that the Speaker appoint a Conference Committee of 3 members of the House, and that the House requests that a like committee be appointed by the Senate to confer on the disagreeing votes of the two houses. The motion prevailed.

Mr. Speaker:

I hereby announce the passage by the Senate of the following House File, herewith returned, as amended by the Senate, in which amendment the concurrence of the House is respectfully requested:

H. F. No. 2402, A bill for an act relating to motor vehicles; abolishing vehicle registration tax exemption for representatives of foreign powers; allowing special license plates for certain persons to be issued to owner of certain trucks; removing restriction on time to apply for disability plates; changing fee and certain administrative procedures relating to the registration program for fleet vehicles; abolishing requirements to keep records of motor vehicles not using the highways and to prepare certain unnecessary reports; making various technical changes; amending Minnesota Statutes 1994, sections 168.021, subdivision 1; 168.12, subdivisions 2a and 2b; 168.127; 168.325, subdivision 1; 168.33, subdivision 6; and 168.34; Minnesota Statutes 1995 Supplement, sections 168.012, subdivision 1; and 168.10, subdivision 1i; repealing Minnesota Statutes 1994, section 168.33, subdivisions 4 and 5.

Patrick E. Flahaven, Secretary of the Senate

Osthoff moved that the House refuse to concur in the Senate amendments to H. F. No. 2402, that the Speaker appoint a Conference Committee of 3 members of the House, and that the House requests that a like committee be appointed by the Senate to confer on the disagreeing votes of the two houses. The motion prevailed.

Mr. Speaker:

I hereby announce the passage by the Senate of the following House File, herewith returned, as amended by the Senate, in which amendment the concurrence of the House is respectfully requested:

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.

Patrick E. Flahaven, Secretary of the Senate

Pelowski moved that the House refuse to concur in the Senate amendments to H. F. No. 2519, that the Speaker appoint a Conference Committee of 3 members of the House, and that the House requests that a like committee be appointed by the Senate to confer on the disagreeing votes of the two houses. The motion prevailed.

Mr. Speaker:

I hereby announce the passage by the Senate of the following House File, herewith returned, as amended by the Senate, in which amendment the concurrence of the House is respectfully requested:

H. F. No. 2375, A bill for an act relating to local improvements; prohibiting fees for preparing certain reports from being based primarily on the estimated cost of improvement; amending Minnesota Statutes 1994, section 429.031, subdivision 1.

Patrick E. Flahaven, Secretary of the Senate

Rest moved that the House refuse to concur in the Senate amendments to H. F. No. 2375, that the Speaker appoint a Conference Committee of 3 members of the House, and that the House requests that a like committee be appointed by the Senate to confer on the disagreeing votes of the two houses. The motion prevailed.

Mr. Speaker:

I hereby announce the passage by the Senate of the following House File, herewith returned, as amended by the Senate, in which amendment the concurrence of the House is respectfully requested:

H. F. No. 2413, A bill for an act relating to cemeteries; clarifying procedures for examination of certain accounts and records by the state auditor; providing for transfer of cemeteries to and from local units of government; amending Minnesota Statutes 1994, sections 149.13, subdivision 5; 306.02, subdivision 2; 306.025; 306.243, by adding a subdivision; and 306.97.

Patrick E. Flahaven, Secretary of the Senate

Jennings moved that the House refuse to concur in the Senate amendments to H. F. No. 2413, that the Speaker appoint a Conference Committee of 3 members of the House, and that the House requests that a like committee be appointed by the Senate to confer on the disagreeing votes of the two houses. The motion prevailed.

Mr. Speaker:

I hereby announce the passage by the Senate of the following House File, herewith returned, as amended by the Senate, in which amendment the concurrence of the House is respectfully requested:

H. F. No. 2321, A bill for an act relating to the metropolitan airports commission; prohibiting free parking; amending Minnesota Statutes 1994, section 473.608, by adding a subdivision.

Patrick E. Flahaven, Secretary of the Senate

Orenstein moved that the House refuse to concur in the Senate amendments to H. F. No. 2321, that the Speaker appoint a Conference Committee of 3 members of the House, and that the House requests that a like committee be appointed by the Senate to confer on the disagreeing votes of the two houses. The motion prevailed.

Mr. Speaker:

I hereby announce the passage by the Senate of the following House File, herewith returned, as amended by the Senate, in which amendment the concurrence of the House is respectfully requested:

H. F. No. 2059, A bill for an act relating to veterinarians; changing the veterinary practice act; amending Minnesota Statutes 1994, sections 156.001, subdivisions 3 and 6; 156.01, subdivisions 1, 2, 5, and by adding a subdivision; 156.02; 156.04; 156.05; 156.06; 156.07; 156.071; 156.072; 156.081; 156.10; 156.12, subdivisions 2, 3, and 4; 156.16, subdivisions 3 and 14; 156.17; and 156.18, subdivisions 1 and 2; proposing coding for new law in Minnesota Statutes, chapter 156; repealing Minnesota Statutes 1994, section 156.12, subdivision 5.

Patrick E. Flahaven, Secretary of the Senate

Kelley moved that the House refuse to concur in the Senate amendments to H. F. No. 2059, that the Speaker appoint a Conference Committee of 3 members of the House, and that the House requests that a like committee be appointed by the Senate to confer on the disagreeing votes of the two houses. The motion prevailed.

Mr. Speaker:

I hereby announce the passage by the Senate of the following House File, herewith returned, as amended by the Senate, in which amendment the concurrence of the House is respectfully requested:

H. F. No. 2630, A bill for an act relating to health; allowing a director of nursing to serve as a licensed nursing home administrator under certain circumstances; amending Minnesota Statutes 1994, section 144A.04, subdivision 5.

Patrick E. Flahaven, Secretary of the Senate

Cooper moved that the House concur in the Senate amendments to H. F. No. 2630 and that the bill be repassed as amended by the Senate. The motion prevailed.

H. F. No. 2630, A bill for an act relating to health; permitting nursing home administrators to be shared under certain circumstances; amending Minnesota Statutes 1995 Supplement, section 144A.04, subdivision 5a.

The bill was read for the third time, as amended by the Senate, and placed upon its repassage.

The question was taken on the repassage of the bill and the roll was called. There were 127 yeas and 0 nays as follows:

Those who voted in the affirmative were:

Abrams       Farrell      Knoblach     Ness         Seagren
Anderson, B. Finseth      Koppendrayer Olson, E.    Skoglund
Anderson, R. Frerichs     Kraus        Olson, M.    Smith
Bakk         Girard       Krinkie      Onnen        Solberg
Bertram      Goodno       Larsen       Opatz        Sviggum
Bettermann   Greiling     Leighton     Orenstein    Swenson, D.
Boudreau     Gunther      Leppik       Orfield      Swenson, H.
Bradley      Haas         Lieder       Osskopp      Sykora
Broecker     Hackbarth    Lindner      Osthoff      Tomassoni
Brown        Harder       Long         Ostrom       Tompkins
Carlson, L.  Hasskamp     Lourey       Otremba      Trimble
Carlson, S.  Hausman      Luther       Ozment       Tunheim
Carruthers   Holsten      Lynch        Paulsen      Van Dellen
Clark        Huntley      Macklin      Pawlenty     Van Engen
Commers      Jaros        Mahon        Pellow       Vickerman
Cooper       Jefferson    Mares        Pelowski     Wagenius
Daggett      Jennings     Mariani      Perlt        Weaver
Dauner       Johnson, A.  Marko        Peterson     Wenzel
JOURNAL OF THE HOUSE - 98th Day - Top of Page 8317

Davids       Johnson, R.  McCollum     Pugh         Winter
Dawkins      Johnson, V.  McElroy      Rest         Wolf
Dehler       Kahn         McGuire      Rhodes       Worke
Delmont      Kalis        Milbert      Rice         Workman
Dempsey      Kelley       Molnau       Rostberg     Sp.Anderson,I
Dorn         Kelso        Mulder       Rukavina     
Entenza      Kinkel       Munger       Sarna        
Erhardt      Knight       Murphy       Schumacher   

Mr. Speaker:

I hereby announce the passage by the Senate of the following House File, herewith returned, as amended by the Senate, in which amendment the concurrence of the House is respectfully requested:

H. F. No. 2783, A bill for an act relating to state government; permitting state employees to donate vacation leave for the benefit of a certain state employee.

Patrick E. Flahaven, Secretary of the Senate

Osthoff moved that the House concur in the Senate amendments to H. F. No. 2783 and that the bill be repassed as amended by the Senate. The motion prevailed.

H. F. No. 2783, A bill for an act relating to state government; permitting state employees to donate vacation leave for the benefit of a certain state employee.

The bill was read for the third time, as amended by the Senate, and placed upon its repassage.

The question was taken on the repassage of the bill and the roll was called. There were 129 yeas and 0 nays as follows:

Those who voted in the affirmative were:

Abrams       Farrell      Knight       Murphy       Schumacher
Anderson, B. Finseth      Knoblach     Ness         Seagren
Anderson, R. Frerichs     Koppendrayer Olson, E.    Skoglund
Bakk         Garcia       Kraus        Olson, M.    Smith
Bertram      Girard       Krinkie      Onnen        Solberg
Bettermann   Goodno       Larsen       Opatz        Sviggum
Boudreau     Greiling     Leighton     Orenstein    Swenson, D.
Bradley      Gunther      Leppik       Orfield      Swenson, H.
Broecker     Haas         Lieder       Osskopp      Sykora
Brown        Hackbarth    Lindner      Osthoff      Tomassoni
Carlson, L.  Harder       Long         Ostrom       Tompkins
Carlson, S.  Hasskamp     Lourey       Otremba      Trimble
Carruthers   Hausman      Luther       Ozment       Tunheim
Clark        Holsten      Lynch        Paulsen      Van Dellen
Commers      Huntley      Macklin      Pawlenty     Van Engen
Cooper       Jaros        Mahon        Pellow       Vickerman
Daggett      Jefferson    Mares        Pelowski     Wagenius
Dauner       Jennings     Mariani      Perlt        Weaver
Davids       Johnson, A.  Marko        Peterson     Wejcman
Dawkins      Johnson, R.  McCollum     Pugh         Wenzel
Dehler       Johnson, V.  McElroy      Rest         Winter
Delmont      Kahn         McGuire      Rhodes       Wolf
Dempsey      Kalis        Milbert      Rice         Worke
Dorn         Kelley       Molnau       Rostberg     Workman
Entenza      Kelso        Mulder       Rukavina     Sp.Anderson,I
Erhardt      Kinkel       Munger       Sarna        

Mr. Speaker:

I hereby announce the passage by the Senate of the following House File, herewith returned, as amended by the Senate, in which amendment the concurrence of the House is respectfully requested:

H. F. No. 2205, A bill for an act relating to motor fuels; providing certain exemptions to the mandate for oxygenated gasoline; amending Minnesota Statutes 1994, sections 239.05, by adding subdivisions; and 239.791, subdivision 1, and by adding subdivisions.

Patrick E. Flahaven, Secretary of the Senate

Johnson, A., moved that the House concur in the Senate amendments to H. F. No. 2205 and that the bill be repassed as amended by the Senate. The motion prevailed.

H. F. No. 2205, A bill for an act relating to motor fuels; providing certain exemptions to the mandate for oxygenated gasoline; amending Minnesota Statutes 1994, sections 239.05, by adding subdivisions; and 239.791, subdivision 1, and by adding subdivisions.

The bill was read for the third time, as amended by the Senate, and placed upon its repassage.

The question was taken on the repassage of the bill and the roll was called. There were 123 yeas and 7 nays as follows:

Those who voted in the affirmative were:

Anderson, B. Farrell      Kelso        Ness         Seagren
Anderson, R. Finseth      Kinkel       Olson, E.    Skoglund
Bakk         Frerichs     Knoblach     Olson, M.    Solberg
Bertram      Garcia       Koppendrayer Onnen        Sviggum
Bettermann   Girard       Kraus        Opatz        Swenson, D.
Boudreau     Goodno       Larsen       Orenstein    Swenson, H.
Bradley      Greenfield   Leighton     Orfield      Sykora
Broecker     Greiling     Leppik       Osskopp      Tomassoni
Brown        Gunther      Lieder       Osthoff      Tompkins
Carlson, L.  Haas         Long         Ostrom       Trimble
Carlson, S.  Hackbarth    Lourey       Otremba      Tunheim
Carruthers   Harder       Luther       Ozment       Van Dellen
Clark        Hasskamp     Lynch        Paulsen      Van Engen
Commers      Hausman      Mahon        Pawlenty     Vickerman
Cooper       Holsten      Mares        Pellow       Wagenius
Daggett      Huntley      Mariani      Pelowski     Weaver
Dauner       Jaros        Marko        Peterson     Wejcman
Davids       Jefferson    McCollum     Pugh         Wenzel
Dawkins      Jennings     McElroy      Rest         Winter
Dehler       Johnson, A.  McGuire      Rhodes       Wolf
Delmont      Johnson, R.  Milbert      Rice         Worke
Dempsey      Johnson, V.  Molnau       Rostberg     Workman
Dorn         Kahn         Mulder       Rukavina     Sp.Anderson,I
Entenza      Kalis        Munger       Sarna        
Erhardt      Kelley       Murphy       Schumacher   

Abrams       Krinkie      Macklin      Smith 
Knight       Lindner      Perlt        

Mr. Speaker:

I hereby announce the passage by the Senate of the following Senate Files, herewith transmitted:

S. F. Nos. 2874, 2328, 1956, 1117, 1873 and 2503.

Patrick E. Flahaven, Secretary of the Senate

S. F. No. 2874, A bill for an act relating to settlements; authorizing settlement of a lawsuit for age discrimination; implementing a settlement with extended employment program services providers; transferring appropriations; appropriating money.

The bill was read for the first time.

Solberg moved that S. F. No. 2874 and H. F. No. 3271, now on General Orders, be referred to the Chief Clerk for comparison. The motion prevailed.

S. F. No. 2328, A bill for an act relating to crime prevention; raising the age of a child for whom protection from a negligent storage of firearms applies; amending Minnesota Statutes 1994, section 609.666, subdivision 1.

The bill was read for the first time and referred to the Committee on Judiciary.

S. F. No. 1956, A bill for an act relating to the environment; providing for an environmental permitting project; providing penalties; amending Minnesota Statutes 1994, sections 115.03, subdivisions 1 and 2; 115.04; 115.071, subdivisions 1, 2, 3, 4, and 5; 115.072; 115.075; 115.076, subdivision 1; 116.07, subdivision 9; and 116.091, subdivisions 1 and 3; Minnesota Statutes 1995 Supplement, section 116.072, subdivision 1; proposing coding for new law as Minnesota Statutes, chapter 114C.

The bill was read for the first time.

Weaver moved that S. F. No. 1956 and H. F. No. 2194, now on General Orders, be referred to the Chief Clerk for comparison. The motion prevailed.

S. F. No. 1117, A bill for an act relating to government operations; expanding Minneapolis health insurance subsidy to include eligible Minneapolis teachers who retire before June 30, 1983; amending Minnesota Statutes 1994, section 124.916, subdivision 4.

The bill was read for the first time and referred to the Committee on Education.

S. F. No. 1873, A bill for an act relating to health; expanding eligibility for the MinnesotaCare program; appropriating money; amending Minnesota Statutes 1995 Supplement, section 256.9354, subdivision 5.

The bill was read for the first time and referred to the Committee on Ways and Means.

S. F. No. 2503, A bill for an act relating to exotic species; recodifying, modifying, and expanding provisions relating to regulation and management of harmful exotic species; authorizing rulemaking; providing penalties; 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.

The bill was read for the first time.

Jennings moved that S. F. No. 2503 and H. F. No. 2379, now on General Orders, be referred to the Chief Clerk for comparison. The motion prevailed.

The Speaker announced the appointment of the following members of the House to a Conference Committee on H. F. No. 2190:

Cooper, Worke and Osthoff.

The Speaker announced the appointment of the following members of the House to a Conference Committee on S. F. No. 1902:

Entenza, Goodno and Mariani.

The Speaker announced the appointment of the following members of the House to a Conference Committee on S. F. No. 2116:

Bertram, Perlt and Holsten.

Pursuant to rule 1.10, Solberg requested immediate consideration of H. F. No. 3012.

H. F. No. 3012 was reported to the House.

Pellow offered an amendment to H. F. No. 3012, the third engrossment.

Long raised a point of order pursuant to rule 3.09 that the Pellow amendment was not in order. The Speaker ruled the point of order well taken and the amendment out of order.

Van Dellen moved to amend H. F. No. 3012, the third engrossment, as follows:

Pages 6 through 9, delete section 4

Amend the title accordingly

A roll call was requested and properly seconded.

The question was taken on the Van Dellen amendment and the roll was called. There were 61 yeas and 68 nays as follows:

Those who voted in the affirmative were:

Abrams       Finseth      Koppendrayer Olson, M.    Sykora
Anderson, B. Frerichs     Kraus        Onnen        Tompkins
Bettermann   Girard       Krinkie      Osskopp      Van Dellen
Boudreau     Goodno       Larsen       Ozment       Van Engen
Bradley      Gunther      Leppik       Paulsen      Vickerman
Broecker     Haas         Lindner      Pawlenty     Weaver
Carlson, S.  Hackbarth    Lynch        Pellow       Wolf
Commers      Harder       Macklin      Rostberg     Worke
Daggett      Holsten      Mares        Seagren      Workman 
Davids       Johnson, V.  McElroy      Smith        
Dehler       Kelso        Molnau       Sviggum      
Dempsey      Knight       Mulder       Swenson, D.  
Erhardt      Knoblach     Ness         Swenson, H.  
JOURNAL OF THE HOUSE - 98th Day - Top of Page 8321

Anderson, R. Garcia       Kinkel       Olson, E.    Sarna
Bakk         Greenfield   Leighton     Opatz        Schumacher
Bertram      Greiling     Lieder       Orenstein    Skoglund
Brown        Hasskamp     Long         Orfield      Solberg
Carlson, L.  Hausman      Lourey       Osthoff      Tomassoni
Carruthers   Huntley      Luther       Ostrom       Trimble
Clark        Jaros        Mahon        Otremba      Tunheim
Cooper       Jefferson    Mariani      Pelowski     Wagenius
Dauner       Jennings     Marko        Perlt        Wejcman
Dawkins      Johnson, A.  McCollum     Peterson     Wenzel
Delmont      Johnson, R.  McGuire      Pugh         Winter
Dorn         Kahn         Milbert      Rhodes       Sp.Anderson,I
Entenza      Kalis        Munger       Rice         
Farrell      Kelley       Murphy       Rukavina     

H. F. No. 3012, A bill for an act relating to metropolitan government; modifying a certain levy limitation for the metropolitan council; allowing for distribution of funds from the tax base revitalization account to development authorities; authorizing the metropolitan council to issue bonds; requiring a transfer between certain accounts of the council; amending Minnesota Statutes 1994, section 473.167, subdivision 2a; Minnesota Statutes 1995 Supplement,sections 473.167, subdivisions 2 and 3; and 473.252; Laws 1989, chapter 279, section 7, subdivision 6; repealing Minnesota Statutes 1994, section 473.167, subdivision 5; Minnesota Statutes 1995 Supplement, section 473.167, subdivision 3a.

The bill was read for the third time and placed upon its final passage.

The question was taken on the passage of the bill and the roll was called. There were 86 yeas and 44 nays as follows:

Those who voted in the affirmative were:

Abrams       Finseth      Kinkel       Onnen        Solberg
Anderson, R. Frerichs     Knight       Opatz        Swenson, H.
Bakk         Girard       Leighton     Orenstein    Tomassoni
Bertram      Goodno       Leppik       Orfield      Tompkins
Bishop       Greiling     Lieder       Osskopp      Trimble
Brown        Gunther      Long         Osthoff      Tunheim
Carlson, L.  Hasskamp     Lourey       Ostrom       Vickerman
Carlson, S.  Hausman      Luther       Otremba      Weaver
Carruthers   Huntley      Lynch        Pelowski     Wejcman
Cooper       Jaros        Mahon        Perlt        Wenzel
Dauner       Jefferson    Mariani      Peterson     Winter
Davids       Jennings     Marko        Pugh         Wolf
Dawkins      Johnson, A.  McCollum     Rhodes       Worke
Delmont      Johnson, R.  McGuire      Rice         Sp.Anderson,I
Dorn         Johnson, V.  Milbert      Rukavina     
Entenza      Kahn         Munger       Sarna        
Erhardt      Kalis        Murphy       Schumacher   
Farrell      Kelley       Olson, E.    Seagren      

Anderson, B. Dempsey      Koppendrayer Mulder       Smith
Bettermann   Garcia       Kraus        Ness         Sviggum
Boudreau     Greenfield   Krinkie      Olson, M.    Swenson, D.
Bradley      Haas         Larsen       Ozment       Sykora
Broecker     Hackbarth    Lindner      Paulsen      Van Dellen
Clark        Harder       Macklin      Pawlenty     Van Engen
Commers      Holsten      Mares        Pellow       Wagenius
Daggett      Kelso        McElroy      Rostberg     Workman 
Dehler       Knoblach     Molnau       Skoglund     

Pursuant to rule 1.10, Solberg requested immediate consideration of H. F. No. 66.

H. F. No. 66 was reported to the House.

Cooper and Huntley moved to amend H. F. No. 66, the fourth engrossment, as follows:

Page 4, after line 10, insert:

"Sec. 2. Minnesota Statutes 1995 Supplement, section 144.121, subdivision 5, is amended to read:

Subd. 5. [EXAMINATION FOR INDIVIDUAL OPERATING X-RAY EQUIPMENT.] After January 1, 1997, an individual other than an individual who holds a current Minnesota license to practice medicine, chiropractic, podiatric medicine, osteopathic medicine or dentistry in a facility with X-ray equipment for use on humans that is registered under subdivision 1 may not operate, nor may the facility allow the individual to operate, X-ray equipment unless the individual has passed an examination approved by the commissioner of health, or an examination determined to the satisfaction of the commissioner of health to be an equivalent national, state, or regional examination, that demonstrates the individual's knowledge of basic radiation safety, proper use of X-ray equipment, darkroom and film processing, and quality assurance procedures. The commissioner shall establish by rule criteria for the approval of examinations required for an individual operating an X-ray machine in Minnesota."

Page 18, delete section 22

Page 18, line 21, delete everything after the period

Page 18, delete line 22

Renumber the sections in sequence and correct internal references

Amend the title accordingly

The motion prevailed and the amendment was adopted.

Bishop moved to amend H. F. No. 66, the fourth engrossment, as amended, as follows:

Page 17, after line 28, insert:

"Sec. 19. Minnesota Statutes 1994, section 541.07, is amended to read:

541.07 [TWO- OR THREE-YEAR LIMITATIONS.]

Except where the Uniform Commercial Code, this section, section 148A.06, or section 541.073 otherwise prescribes, the following actions shall be commenced within two years:

(1) for libel, slander, assault, battery, false imprisonment, or other tort, resulting in personal injury, and all actions against physicians, surgeons, dentists, occupational therapists, other health care professionals as defined in section 145.61, and veterinarians as defined in chapter 156, hospitals, sanitariums, for malpractice, error, mistake or failure to cure, whether based on contract or tort; provided a counterclaim may be pleaded as a defense to any action for services brought by a physician, surgeon, dentist, or other health care professional or veterinarian, hospital or sanitarium, after the limitations herein described notwithstanding it is barred by the provisions of this chapter, if it was the property of the party pleading it at the time it became barred and was not barred at the time the claim sued on originated, but no judgment thereof except for costs can be rendered in favor of the party so pleading it;

(2) upon a statute for a penalty or forfeiture, except as provided in sections 541.074 and 541.075;

(3) for damages caused by a dam, other than a dam used for commercial purposes; but as against one holding under the preemption or homestead laws, the limitations shall not begin to run until a patent has been issued for the land so damaged;

(4) against a master for breach of an indenture of apprenticeship; the limitation runs from the expiration of the term of service;

(5) for the recovery of wages or overtime or damages, fees or penalties accruing under any federal or state law respecting the payment of wages or overtime or damages, fees or penalties except, that if the employer fails to submit payroll records by a specified date upon request of the department of labor and industry or if the nonpayment is willful and not the result of mistake or inadvertence, the limitation is three years. (The term "wages" means all remuneration for services or employment, including commissions and bonuses and the cash value of all remuneration in any medium other than cash, where the relationship of master and servant exists and the term "damages" means single, double, or treble damages, accorded by any statutory cause of action whatsoever and whether or not the relationship of master and servant exists);

(6) for damages caused by the establishment of a street or highway grade or a change in the originally established grade;

(7) against the person who applies the pesticide for injury or damage to property resulting from the application, but not the manufacture or sale, of a pesticide."

Renumber the sections in sequence and correct internal references

Amend the title accordingly

The motion prevailed and the amendment was adopted.

H. F. No. 66, A bill for an act relating to occupations and professions; establishing the board of licensed professional counseling; requiring professional counselors to be licensed; requiring rulemaking; providing penalties; appropriating money; amending Minnesota Statutes 1994, sections 148A.01, subdivision 5; and 609.341, subdivision 17; Minnesota Statutes 1995 Supplement, sections 116J.70, subdivision 2a; 148B.60, subdivision 3; 214.01, subdivision 2; and 214.04, subdivision 3; proposing coding for new law in Minnesota Statutes, chapter 148B; repealing Minnesota Statutes 1994, sections 148B.60, subdivisions 1, 2, 4, 5, 6, 7, and 8; 148B.61, subdivisions 1 and 2; 148B.63; 148B.64; 148B.65; 148B.66, subdivision 2; 148B.67; 148B.68, subdivisions 2 and 3; 148B.69; 148B.70; and 148.71; Minnesota Statutes 1995 Supplement, sections 148B.60, subdivision 3; 148B.61, subdivision 3; 148B.66, subdivision 1; and 148B.68, subdivision 1.

The bill was read for the third time, as amended, and placed upon its final passage.

The question was taken on the passage of the bill and the roll was called. There were 101 yeas and 30 nays as follows:

Those who voted in the affirmative were:

Abrams       Farrell      Kinkel       Ness         Smith
Anderson, R. Finseth      Knoblach     Olson, E.    Solberg
Bakk         Garcia       Koppendrayer Opatz        Swenson, D.
Bertram      Girard       Kraus        Orenstein    Swenson, H.
Bishop       Goodno       Larsen       Orfield      Tomassoni
Boudreau     Greenfield   Leighton     Osskopp      Tompkins
Brown        Greiling     Leppik       Osthoff      Trimble
Carlson, L.  Gunther      Lieder       Ostrom       Tuma
Carlson, S.  Harder       Lourey       Otremba      Tunheim
Carruthers   Hasskamp     Luther       Ozment       Van Dellen
Clark        Hausman      Lynch        Pawlenty     Vickerman
Cooper       Huntley      Macklin      Pelowski     Wagenius
Daggett      Jaros        Mahon        Perlt        Weaver
Dauner       Jefferson    Mares        Peterson     Wejcman
Davids       Jennings     Mariani      Pugh         Wenzel
Dawkins      Johnson, A.  Marko        Rhodes       Winter
Delmont      Johnson, R.  McCollum     Rostberg     Sp.Anderson,I
Dempsey      Kahn         McGuire      Rukavina     
Dorn         Kalis        Milbert      Sarna        
Entenza      Kelley       Munger       Schumacher   
Erhardt      Kelso        Murphy       Skoglund     
JOURNAL OF THE HOUSE - 98th Day - Top of Page 8324

Anderson, B. Haas         Long         Pellow       Worke
Bettermann   Hackbarth    McElroy      Rice         Workman 
Bradley      Holsten      Molnau       Seagren      
Broecker     Johnson, V.  Mulder       Sviggum      
Commers      Knight       Olson, M.    Sykora       
Dehler       Krinkie      Onnen        Van Engen    
Frerichs     Lindner      Paulsen      Wolf         

The Speaker announced the appointment of the following members of the House to a Conference Committee on H. F. No. 2059:

Kelley, Leighton and Girard.

The Speaker announced the appointment of the following members of the House to a Conference Committee on H. F. No. 2206:

Pelowski; Carlson, L., and Tuma.

The Speaker announced the appointment of the following members of the House to a Conference Committee on H. F. No. 2321:

Orenstein, Weaver and Luther.

The Speaker announced the appointment of the following members of the House to a Conference Committee on H. F. No. 2413:

Jennings, Greiling and Rhodes.

The Speaker announced the appointment of the following members of the House to a Conference Committee on H. F. No. 2519:

Pelowski; Johnson, V., and Mulder.

Carruthers moved that the bills on Special Orders for today be continued. The motion prevailed.

Carruthers moved that the bills on General Orders for today be continued. The motion prevailed.

Johnson, A., moved that the name of Perlt be stricken and the name of Peterson be added as an author on H. F. No. 2205. The motion prevailed.

Mulder moved that the following statement be printed in the Journal of the House: "It was my intention to vote in the affirmative on Wednesday, March 13, 1996, when the vote was taken on the repassage of H. F. No. 168, as amended by the Senate." The motion prevailed.

Schumacher moved that the following statement be printed in the Journal of the House: "It was my intention to vote in the affirmative on Wednesday, March 13, 1996, when the vote was taken on the repassage of H. F. No. 168, as amended by the Senate." The motion prevailed.

Dauner moved that the following statement be printed in the Journal of the House: "It was my intention to vote in the affirmative on Wednesday, March 13, 1996, when the vote was taken on the repassage of H. F. No. 2525, as amended by the Senate." The motion prevailed.

Mulder moved that the following statement be printed in the Journal of the House: "It was my intention to vote in the negative on Wednesday, March 13, 1996, when the vote was taken the repassage of H. F. No. 2953, as amended by the Senate." The motion prevailed.

Wejcman moved that H. F. No. 2241 be returned to its author. The motion prevailed.

Carruthers moved that when the House adjourns today it adjourn until 9:30 a.m., Friday, March 15, 1996. The motion prevailed.

Carruthers moved that the House adjourn. The motion prevailed, and the Speaker declared the House stands adjourned until 9:30 a.m., Friday, March 15, 1996.

Edward A. Burdick, Chief Clerk, House of Representatives

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