JOURNAL OF THE HOUSE - 100th Day - Top of Page 8371

STATE OF MINNESOTA

Journal of the House

SEVENTY-NINTH SESSION - 1996

__________________

ONE-HUNDREDTH DAY

Saint Paul, Minnesota, Monday, March 18, 1996

Index to today's Journal

On this day in 1858, the Legislature established Becker, Clay and Ottertail Counties. Becker County was named after George Becker, one of three men elected to the U. S. House of Representatives when Minnesota became a state. When the state was allowed only two congressmen, the trio drew straws, and Becker lost.

The House of Representatives convened at 10:00 a.m. and was called to order by Irv Anderson, Speaker of the House.

Prayer was offered by the Reverend Parker Trostel, Plymouth Congregational Church, Minneapolis, Minnesota.

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

The roll was called and the following members were present:

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

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

REPORTS OF CHIEF CLERK

S. F. No. 1886 and H. F. No. 2248, which had been referred to the Chief Clerk for comparison, were examined and found to be identical with certain exceptions.

SUSPENSION OF RULES

Wejcman moved that the rules be so far suspended that S. F. No. 1886 be substituted for H. F. No. 2248 and that the House File be indefinitely postponed. The motion prevailed.


JOURNAL OF THE HOUSE - 100th Day - Top of Page 8372

S. F. No. 2198 and H. F. No. 2453, which had been referred to the Chief Clerk for comparison, were examined and found to be identical with certain exceptions.

SUSPENSION OF RULES

Pugh moved that the rules be so far suspended that S. F. No. 2198 be substituted for H. F. No. 2453 and that the House File be indefinitely postponed. The motion prevailed.

SECOND READING OF SENATE BILLS

S. F. Nos. 1886 and 2198 were read for the second time.

MESSAGES FROM THE SENATE

The following messages were received from 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. 2782, A bill for an act relating to local government; providing for creation of an advisory council on intergovernmental relations; proposing coding for new law in Minnesota Statutes, chapter 15.

The Senate has appointed as such committee:

Messrs. Metzen, Hottinger and Stevens.

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. 2204, A bill for an act relating to civil actions; creating a nuisance action by individuals and neighborhood organizations; proposing coding for new law in Minnesota Statutes, chapter 617.

Patrick E. Flahaven, Secretary of the Senate

Dawkins moved that the House refuse to concur in the Senate amendments to H. F. No. 2204, 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.


JOURNAL OF THE HOUSE - 100th Day - Top of Page 8373

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. 3052, A bill for an act relating to insurance; clarifying that existing law prohibits insurers from terminating agents as a result of contacts with any branch of government; amending Minnesota Statutes 1994, section 72A.20, subdivision 20.

Patrick E. Flahaven, Secretary of the Senate

Ostrom moved that the House refuse to concur in the Senate amendments to H. F. No. 3052, 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. 2369, A bill for an act relating to financial institutions; regulating consumer credit; modifying rates, fees, and other terms and conditions; providing clarifying and technical changes; providing opportunities for state banks to develop their Minnesota markets through broader intrastate branching; regulating the use of credit cards by institutions; modifying interest rates, fees, and other terms and conditions governing the use of credit cards; providing technical corrections; amending Minnesota Statutes 1994, sections 9.031, subdivision 13; 13.71, by adding a subdivision; 46.041, subdivision 1; 46.044, subdivision 1; 47.10, subdivision 4; 47.101, as amended; 47.201, subdivision 2; 47.51; 47.62, subdivision 1; 48.09; 48.10; 48.185, subdivisions 3 and 4; 48.301; 48.34; 48.845, subdivision 4; 52.131; 53.01; 53.03, subdivision 1; 53.07, subdivision 2; 118.005, subdivision 1; 168.69; 168.705; 168.72, by adding a subdivision; 168.73; 300.025; 332.50, subdivision 2; 334.02; 334.03; Minnesota Statutes 1995 Supplement, sections 46.048, subdivision 2b; 47.20, subdivision 9; 47.52; 47.59, subdivisions 2, 3, 4, 5, 6, and by adding subdivisions; 47.60, subdivision 2; 47.61, subdivision 3; 48.153, subdivision 3a; 48.194; 48.65; 50.1485, subdivision 1; 50.245, subdivision 4; 53.04, subdivision 3a; 53.09, subdivision 2; 56.131, subdivisions 2, 4, and 6; 56.14; 62B.04, subdivisions 1 and 2; Laws 1995, chapter 171, section 70; proposing coding for new law in Minnesota Statutes, chapter 49; repealing Minnesota Statutes 1994, sections 47.201, subdivision 7; 47.27, subdivision 3; 48.185, subdivision 5; 48.94; 51A.01; 51A.02, subdivisions 1, 2, 3, 4, 5, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38, 39, 41, 42, 43, 44, 45, 46, 47, 48, 49, 50, 51, 52, 53, 55, and 56; 51A.03; 51A.04; 51A.041; 51A.05; 51A.06; 51A.065; 51A.07; 51A.08; 51A.09; 51A.10; 51A.11; 51A.12; 51A.13; 51A.131; 51A.14; 51A.15; 51A.16; 51A.17; 51A.19, subdivisions 1, 4, 5, 6, 7, 8, 10, 11, 12, and 13; 51A.20; 51A.21, subdivisions 1, 2, 3, 4, 5, 6a, 6b, 7, 8, 9, 10, 11, 12, 13, 14, 15, 17, 18, 20, 21, 22, 23, 24, 25, 26, and 27; 51A.22; 51A.23, subdivision 6; 51A.24; 51A.251; 51A.261; 51A.262; 51A.27; 51A.28; 51A.29; 51A.30; 51A.31; 51A.32; 51A.33; 51A.34; 51A.35; 51A.361; 51A.37; 51A.38; 51A.40; 51A.41; 51A.42; 51A.43; 51A.44; 51A.45; 51A.46; 51A.47; 51A.48; 51A.51; 51A.52; 51A.54; 51A.55; 51A.56; 51A.57; 53.04, subdivision 3b; Minnesota Statutes 1995 Supplement, sections 51A.02, subdivisions 6, 7, 26, 40, and 54; 51A.19, subdivision 9; 51A.21, subdivision 28; 51A.23, subdivisions 1 and 7; 51A.386; 51A.50; 51A.53; 51A.58; 53.04, subdivisions 3c and 4a; Minnesota Rules, parts 2655.0100; 2655.0200; 2655.0300; 2655.0400; 2655.0500; 2655.0600; 2655.0700; 2655.0800; 2655.0900; 2655.1100; 2655.1200; and 2655.1300.

Patrick E. Flahaven, Secretary of the Senate

Ostrom moved that the House refuse to concur in the Senate amendments to H. F. No. 2369, 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.


JOURNAL OF THE HOUSE - 100th Day - Top of Page 8374

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. 2778, A bill for an act relating to courts; authorizing a pilot project court combining family, probate, and juvenile court matters in the second judicial district.

Patrick E. Flahaven, Secretary of the Senate

CONCURRENCE AND REPASSAGE

Orenstein moved that the House concur in the Senate amendments to H. F. No. 2778 and that the bill be repassed as amended by the Senate. The motion prevailed.

H. F. No. 2778, A bill for an act relating to courts; modifying the duties and powers of a referee for the duration of a family court block calendar pilot program.

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 134 yeas and 0 nays as follows:

Those who voted in the affirmative were:

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

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. 2565, A bill for an act relating to private business, trade, and correspondence schools; modifying licensing standards; clarifying miscellaneous provisions; amending Minnesota Statutes 1994, sections 141.25, subdivision 7; 141.26, subdivision 5; 141.271, subdivision 4; and 141.29, subdivision 3; Minnesota Statutes 1995 Supplement, section 136A.685.

Patrick E. Flahaven, Secretary of the Senate


JOURNAL OF THE HOUSE - 100th Day - Top of Page 8375

CONCURRENCE AND REPASSAGE

Tuma moved that the House concur in the Senate amendments to H. F. No. 2565 and that the bill be repassed as amended by the Senate. The motion prevailed.

H. F. No. 2565, A bill for an act relating to private business, trade, and correspondence schools; modifying licensing standards; clarifying miscellaneous provisions; amending Minnesota Statutes 1994, sections 141.25, subdivision 7; 141.26, subdivision 5; 141.271, subdivision 4; and 141.29, subdivision 3; Minnesota Statutes 1995 Supplement, section 136A.685.

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 132 yeas and 0 nays as follows:

Those who voted in the affirmative were:

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

Mr. Speaker:

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

S. F. Nos. 2134 and 1980.

Patrick E. Flahaven, Secretary of the Senate

FIRST READING OF SENATE BILLS

S. F. No. 2134, A bill for an act relating to crime prevention; providing that no district court fee is required from public authority to bring action for vehicle forfeiture; expanding the criminal penalty for fleeing a peace officer to include the forfeiture of motor vehicles used in the offense; providing a penalty; amending Minnesota Statutes 1994, sections 357.021, subdivision 1a; and 609.487, by adding a subdivision; proposing coding for new law in Minnesota Statutes, chapter 609; repealing Minnesota Statutes 1995 Supplement, section 609.5312, subdivision 4.

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


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S. F. No. 1980, A bill for an act relating to insurance; regulating coverages; modifying agent cancellations or terminations; providing certain filing requirements for domestic insurers; regulating disclosures and policy and contract provisions; providing for the operation and administration of the medical malpractice joint underwriting association and the Minnesota joint underwriting association; regulating policy cancellations or terminations and claims practices; modifying standards for participation in the assigned claims plan; regulating information handling practices; establishing solvency requirements; making technical changes; amending Minnesota Statutes 1994, sections 60A.07, subdivision 8; 60A.08, subdivision 14; 60A.09, subdivision 4a; 60A.11, subdivision 21; 60A.171, subdivision 7, and by adding a subdivision; 60A.36, subdivision 1; 60C.09, subdivision 2; 60C.11, by adding a subdivision; 61A.02, subdivision 2, and by adding a subdivision; 61A.072, subdivision 4; 61A.32; 61B.20, subdivision 15; 61B.28, subdivision 7; 62A.011, subdivision 3; 62A.02, by adding a subdivision; 62A.31, subdivisions 1p, 1r, 1s, and 3; 62A.315; 62A.318; 62A.36, subdivision 1; 62A.39; 62A.44, subdivision 2; 62A.60; 62F.03, subdivision 6; 62F.04, subdivision 1a; 62I.02, subdivisions 2, 5, and by adding a subdivision; 62I.07; 62L.02, subdivision 15; 62L.09, subdivision 3; 65A.01, subdivision 3; 65A.10, subdivision 1; 65A.295; 65B.14, by adding a subdivision; 65B.15, subdivision 1; 65B.51, subdivision 3; 65B.64, subdivision 3; 70A.07; and 72A.20, subdivisions 17, 23, 26, 30, and by adding a subdivision; Minnesota Statutes 1995 Supplement, sections 60A.07, subdivision 10; 60A.67, subdivision 2; 60K.03, subdivision 7; 61A.09, subdivision 1; 62A.042; 62A.135, subdivision 1; 62A.31, subdivision 1h; 62C.14, subdivision 14; 62E.05, subdivision 1; 62F.02, subdivision 2; and 62L.12, subdivision 2; proposing coding for new law in Minnesota Statutes, chapters 60A; 61A; 62A; and 72A; repealing Minnesota Statutes 1994, sections 60A.13, subdivision 8; 60A.40; 60B.27; 62I.20; 65A.25; 72A.205; and Laws 1995, chapter 140, section 1.

The bill was read for the first time.

Osthoff moved that S. F. No. 1980 and H. F. No. 2378, now on General Orders, be referred to the Chief Clerk for comparison. The motion prevailed.

The following Conference Committee Reports were received:

CONFERENCE COMMITTEE REPORT ON H. F. NO. 2330

A bill for an act relating to land use planning; requesting the St. Cloud area planning organization to assess and report on the land use planning and coordinating issues of the region.

March 14, 1996

The Honorable Irv Anderson

Speaker of the House of Representatives

The Honorable Allan H. Spear

President of the Senate

We, the undersigned conferees for H. F. No. 2330, report that we have agreed upon the items in dispute and recommend as follows:

That the Senate recede from its amendments and that H. F. No. 2330 be further amended as follows:

Delete everything after the enacting clause and insert:

"Section 1. [ST. CLOUD AREA PLANNING.]

Subdivision 1. [PROPOSAL AND REPORT REQUESTED.] The St. Cloud area planning organization, a joint powers organization established under Minnesota Statutes, section 471.59, is requested to develop a detailed assessment of the regional land use, planning, and coordination issues of the St. Cloud region, as provided in this section. The area planning organization is requested to submit a report on its assessment of needs and proposed actions to the chairs of the senate metropolitan and local government committee and the house of representatives local government and metropolitan affairs committee and the affected legislators, by November 15, 1996.


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Subd. 2. [ISSUES TO BE ADDRESSED.] The area planning organization may address the following issues in its report and proposed legislation:

(1) the geographic boundaries of the region;

(2) legislation needed to ensure comprehensive and effective regional land use planning and coordination;

(3) other issues that should be addressed at the regional level, including, but not limited to, whether housing, transit and transportation, water and sewers, and other services and infrastructure should be addressed at the regional level;

(4) the need for consolidation of jurisdictions;

(5) the appropriate governance structure to address the regional issues and needs identified;

(6) the appropriate funding sources for a regional governance structure;

(7) the feasibility of implementing a tax-base sharing program in the region; and

(8) other issues identified by the area planning organization.

Sec. 2. [APPLICATION.]

Section 1 applies in the counties of Benton, Sherburne, and Stearns."

We request adoption of this report and repassage of the bill.

House Conferees: Joe Opatz, Jeff Bertram and Steve Dehler.

Senate Conferees: Dave Kleis, John C. Hottinger and Dallas C. Sams.

Opatz moved that the report of the Conference Committee on H. F. No. 2330 be adopted and that the bill be repassed as amended by the Conference Committee. The motion prevailed.

H. F. No. 2330, A bill for an act relating to land use planning; requesting the St. Cloud area planning organization to assess and report on the land use planning and coordinating issues of the region.

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

The question was taken on the repassage of the bill and the roll was called. There were 59 yeas and 73 nays as follows:

Those who voted in the affirmative were:

Anderson, R. Farrell      Knoblach     McGuire      Pugh
Bakk         Goodno       Leighton     Milbert      Rest
Bertram      Greiling     Leppik       Munger       Sarna
Brown        Hasskamp     Long         Murphy       Skoglund
Carlson, L.  Hausman      Lourey       Ness         Stanek
Cooper       Huntley      Luther       Olson, E.    Swenson, D.
Dawkins      Jaros        Lynch        Opatz        Trimble
Dehler       Johnson, R.  Macklin      Orenstein    Tunheim
Delmont      Johnson, V.  Mahon        Orfield      Wagenius
Dempsey      Kalis        Mariani      Ostrom       Winter
Dorn         Kelley       Marko        Pelowski     Sp.Anderson,I
Entenza      Kinkel       McCollum     Perlt        
Those who voted in the negative were:

Abrams       Frerichs     Kraus        Paulsen      Tomassoni
Anderson, B. Garcia       Krinkie      Pawlenty     Tompkins
Bettermann   Girard       Larsen       Pellow       Tuma
Bishop       Greenfield   Lieder       Peterson     Van Dellen
Boudreau     Gunther      Lindner      Rhodes       Van Engen
Bradley      Haas         Mares        Rice         Vickerman

JOURNAL OF THE HOUSE - 100th Day - Top of Page 8378
Broecker Hackbarth McElroy Rostberg Warkentin Carlson, S. Harder Molnau Rukavina Weaver Carruthers Holsten Mulder Schumacher Wejcman Commers Jefferson Olson, M. Seagren Wenzel Daggett Jennings Onnen Smith Wolf Dauner Johnson, A. Osskopp Solberg Worke Davids Kahn Osthoff Sviggum Workman Erhardt Knight Otremba Swenson, H. Finseth Koppendrayer Ozment Sykora
The bill was not repassed, as amended by Conference.

CONFERENCE COMMITTEE REPORT ON H. F. NO. 2625

A bill for an act relating to the city of Baxter; allowing the city of Baxter to expand its public utilities commission to five members.

March 14, 1996

The Honorable Irv Anderson

Speaker of the House of Representatives

The Honorable Allan H. Spear

President of the Senate

We, the undersigned conferees for H. F. No. 2625, report that we have agreed upon the items in dispute and recommend as follows:

That the Senate recede from its amendment.

We request adoption of this report and repassage of the bill.

House Conferees: Stephen G. Wenzel, Jim Farrell and Jim Knoblach.

Senate Conferees: Don Samuelson, Jim Vickerman and Martha R. Robertson.

Wenzel moved that the report of the Conference Committee on H. F. No. 2625 be adopted and that the bill be repassed as amended by the Conference Committee. The motion prevailed.

H. F. No. 2625, A bill for an act relating to the city of Baxter; allowing the city of Baxter to expand its public utilities commission to five members.

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

The question was taken on the repassage of the bill and the roll was called. There were 133 yeas and 0 nays as follows:

Those who voted in the affirmative were:

Abrams       Farrell      Knight       Ness         Smith
Anderson, B. Finseth      Knoblach     Olson, E.    Solberg
Anderson, R. Frerichs     Koppendrayer Olson, M.    Stanek
Bakk         Garcia       Kraus        Onnen        Sviggum
Bertram      Girard       Krinkie      Opatz        Swenson, D.
Bettermann   Goodno       Larsen       Orenstein    Swenson, H.
Bishop       Greenfield   Leighton     Orfield      Sykora
Boudreau     Greiling     Leppik       Osthoff      Tomassoni

JOURNAL OF THE HOUSE - 100th Day - Top of Page 8379
Bradley Gunther Lieder Ostrom Tompkins Broecker Haas Lindner Otremba Trimble Brown Hackbarth Long Ozment Tuma Carlson, L. Harder Lourey Paulsen Tunheim Carlson, S. Hasskamp Luther Pawlenty Van Dellen Carruthers Hausman Lynch Pellow Van Engen Clark Holsten Macklin Pelowski Vickerman Commers Huntley Mahon Perlt Wagenius Cooper Jaros Mares Peterson Warkentin Daggett Jefferson Mariani Pugh Weaver Dauner Jennings Marko Rest Wejcman Davids Johnson, A. McCollum Rhodes Wenzel Dawkins Johnson, R. McElroy Rice Winter Dehler Johnson, V. McGuire Rostberg Wolf Delmont Kahn Milbert Rukavina Worke Dempsey Kalis Molnau Sarna Workman Dorn Kelley Mulder Schumacher Sp.Anderson,I Entenza Kelso Munger Seagren Erhardt Kinkel Murphy Skoglund
The bill was repassed, as amended by Conference, and its title agreed to.

SPECIAL ORDERS

S. F. No. 2196, A bill for an act relating to housing; permitting a mortgagee to provide a resident caretaker for a premises; authorizing entry into tenant's premises under certain circumstances; amending Minnesota Statutes 1994, section 582.031, subdivision 2; Minnesota Statutes 1995 Supplement, section 504.183, subdivision 3.

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

The question was taken on the passage of the bill and the roll was called. There were 124 yeas and 9 nays as follows:

Those who voted in the affirmative were:

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

Anderson, B. Frerichs     Krinkie      Mulder       Wolf 
Anderson, R. Knight       Lindner      Olson, M.    
The bill was passed and its title agreed to.


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S. F. No. 1915 was reported to the House.

Entenza moved to amend S. F. No. 1915 as follows:

Delete everything after the enacting clause and insert:

"ARTICLE 1

GENERAL ENFORCEMENT

Section 1. Minnesota Statutes 1995 Supplement, section 16A.6701, subdivision 1, is amended to read:

Subdivision 1. [STATE LICENSE AND SERVICE FEES.] For purposes of section 16A.665, subdivision 3, and this section, the term "state license and service fees" means, and refers to, all license fees, service fees, and charges imposed by law and collected by any state officer, agency, or employee, which are listed below or which are defined as departmental earnings under section 16A.1285, subdivision 1, and the use of which is not otherwise restricted by law, and which are not required to be credited or transferred to a fund other than the general fund:

Minnesota Statutes 1994, sections 3.9221; 5.12; 5.14; 5.16; 5A.04; 6.58; 13.03, subdivision 10; 16A.155; 16A.48; 16A.54; 16A.72; 16B.59; 16B.70; 17A.04; 18.51, subdivision 2; 18.53; 18.54; 18C.551; 19.58; 19.64; 27.041, subdivision 2, clauses (d) and (e); 27.07, subdivision 5; 28A.08; 32.071; 32.075; 32.392; 35.71; 35.824; 35.95; 41C.12; 45.027, subdivisions 3 and 6; 46.041, subdivision 1; 46.131, subdivisions 2, 7, 8, 9, and 10; 47.101, subdivision 2; 47.54, subdivisions 1 and 4; 47.62, subdivision 4; 47.65; 48.475, subdivision 1; 48.61, subdivision 7; 48.93; 49.36, subdivision 1; 52.01; 52.203; 53.03, subdivisions 1, 5, and 6; 53.09, subdivision 1; 53A.03; 53A.05, subdivision 1; 53A.081, subdivision 3; 54.294, subdivision 1; 55.04, subdivision 2; 55.095; 56.02; 56.04; 56.10; 59A.03, subdivision 2; 59A.06, subdivision 3; 60A.14, subdivisions 1 and 2; 60A.23, subdivision 8; 60K.19, subdivision 5; 65B.48, subdivision 3; 70A.14, subdivision 4; 72B.04, subdivision 10; 79.251, subdivision 5; 80A.28, subdivisions 1, 2, 3, 4, 5, 6, 7, 7a, 8, and 9; 80C.04, subdivision 1; 80C.07; 80C.08, subdivision 1; 80C.16, subdivisions 2 and 3; 80C.18, subdivision 2; 82.20, subdivision 8 and 9; 82A.04, subdivision 1; 82A.08, subdivision 2; 82A.16, subdivisions 2 and 6; 82B.09, subdivision 1; 83.23, subdivisions 2, 3, and 4; 83.25, subdivisions 1 and 2; 83.26, subdivision 2; 83.30, subdivision 2; 83.31, subdivision 2; 83.38, subdivision 2; 85.052; 85.053; 85.055; 88.79, subdivision 2; 89.035; 89.21; 115.073; 115.77, subdivisions 1 and 2; 116.41, subdivision 2; 116C.69; 116C.712; 116J.9673; 125.08; 136C.04, subdivision 9; 155A.045; 155A.16; 168.27, subdivision 11; 168.33, subdivisions 3 and 7; 168.54; 168.67; 168.705; 168A.152; 168A.29; 169.345; 171.06, subdivision 2a; 171.29, subdivision 2; 176.102; 176.1351; 176.181, subdivision 2a; 177.30; 181A.12; 183.545; 183.57; 184.28; 184.29; 184A.09; 201.091, subdivision 5; 204B.11; 207A.02; 214.06; 216C.261; 221.0355; 239.101; 240.06; 240.07; 240.08; 240.09; 240.10; 246.51; 270.69, subdivision 2; 270A.07; 272.484; 296.06; 296.12; 296.17; 297.04; 297.33; 299C.46; 299C.62; 299K.09; 299K.095; 299L.07; 299M.04; 300.49; 318.02; 323.44, subdivision 3; 325D.415; 326.22; 326.3331; 326.47; 326.50; 326.92, subdivisions 1 and 3; 327.33; 331A.02; 332.15, subdivisions 2 and 3; 332.17; 332.22, subdivision 1; 332.33, subdivisions 3 and 4; 332.54, subdivision 7; 333.055; 333.20; 333.23; 336.9-413; 336A.04; 336A.05; 336A.09; 345.35; 345.43, subdivision 1 2a; 345.44; 345.55, subdivision 3; 347.33; 349.151; 349.161; 349.162; 349.163; 349.164; 349.165; 349.166; 349.167; 357.08; 359.01, subdivision 3; 360.018; 360.63; 386.68; and 414.01, subdivision 11; Minnesota Statutes 1994, chapters 154; 216B; 237; 302A; 303; 308A; 317A; 322A; and 322B; Laws 1990, chapter 593; Laws 1993, chapter 254, section 7; and Laws 1994, chapter 573, section 4; Minnesota Rules, parts 1800.0500; 1950.1070; 2100.9300; 7515.0210; and 9545.2000 to 9545.2040.

Sec. 2. Minnesota Statutes 1994, section 45.011, subdivision 1, is amended to read:

Subdivision 1. [SCOPE.] As used in chapters 45 to 83, 155A, 309, 332, 345, and 359, and sections 326.83 to 326.98, and 386.61 to 386.78, unless the context indicates otherwise, the terms defined in this section have the meanings given them.

Sec. 3. [45.016] [SERVICE OF ORDERS OR OTHER PAPERS.]

Service of orders or other papers required or permitted to be issued by the commissioner related to the duties and responsibilities entrusted to the commissioner may be by any of the following methods:

(1) personal service consistent with requirements for service of a summons or process under section 303.13 or 543.19, or under rule 4.03 of the Minnesota Rules of Civil Procedure;


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(2) first class United States mail, including certified United States mail, or overnight express mail service, postage prepaid and addressed to the party at the party's last known address. Service by United States mail, including certified mail, is complete upon placing the order or other paper in the mail or otherwise delivering the order or other paper to the United States mail service. Service by overnight express mail service is complete upon delivering the order or other document to an authorized agent of the express mail service; or

(3) any other method of service provided under the laws relating to duties and responsibilities entrusted to the commissioner.

Sec. 4. Minnesota Statutes 1994, section 45.027, subdivision 7, is amended to read:

Subd. 7. [ACTIONS AGAINST LICENSEES.] In addition to any other actions authorized by this section, the commissioner may, by order, deny, suspend, or revoke the authority or license of a person subject to the duties and responsibilities entrusted to the commissioner, as described under section 45.011, subdivision 4, or censure that person if the commissioner finds that:

(1) the order is in the public interest; and

(2) the person has violated any law, rule, or order related to the duties and responsibilities entrusted to the commissioner; or

(3) the person has provided false, misleading, or incomplete information to the commissioner or has refused to allow a reasonable inspection of records or premises; or

(4) the person has engaged in an act or practice, whether or not the act or practice directly involves the business for which the person is licensed or authorized, which demonstrates that the applicant or licensee is untrustworthy, financially irresponsible, or otherwise incompetent or unqualified to act under the authority or license granted by the commissioner.

Except for information classified as confidential under sections 60A.03, subdivision 9; 60A.031; 60A.93; and 60D.22, the commissioner may make any data otherwise classified as private or confidential pursuant to this section accessible to an appropriate person or agency if the commissioner determines that the access will aid the law enforcement process, promote public health or safety, or dispel widespread rumor or unrest. If the commissioner determines that private or confidential information should be disclosed, the commissioner shall notify the attorney general as to the information to be disclosed, the purpose of the disclosure, and the need for the disclosure. The attorney general shall review the commissioner's determination. If the attorney general believes that the commissioner's determination does not satisfy the purpose and intent of this provision, the attorney general shall advise the commissioner in writing that the information may not be disclosed. If the attorney general believes the commissioner's determination satisfies the purpose and intent of this provision, the attorney general shall advise the commissioner in writing, accordingly.

After disclosing information pursuant to this provision, the commissioner shall advise the chairs of the senate and house of representatives judiciary committees of the disclosure and the basis for it.

Sec. 5. Minnesota Statutes 1994, section 45.027, is amended by adding a subdivision to read:

Subd. 12. [CONDITIONS OF RELICENSURE.] A revocation of a license prohibits the licensee from making a new application for a license for at least two years from the effective date of the revocation. The commissioner may, as a condition of reapplication, require the applicant to obtain a bond or comply with additional reasonable conditions of licensure the commissioner considers necessary to protect the public.

Sec. 6. Minnesota Statutes 1994, section 53A.081, subdivision 1, is amended to read:

Subdivision 1. [ANNUAL REPORT.] On or before March 1 April 30, a licensee shall file an annual report with the commissioner for the previous calendar year. The report must contain information that the commissioner may reasonably require concerning, and for the purpose of examining, the business and operations of each licensed currency exchange.


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Sec. 7. Minnesota Statutes 1994, section 60K.19, subdivision 7, is amended to read:

Subd. 7. [CRITERIA FOR COURSE ACCREDITATION.] (a) The commissioner may accredit a course only to the extent it is designed to impart substantive and procedural knowledge of the insurance field. The burden of demonstrating that the course satisfies this requirement is on the individual or organization seeking accreditation. The commissioner shall approve any educational program approved by Minnesota Continuing Legal Education relating to the insurance field. The commissioner is authorized to establish a procedure for renewal of course accreditation.

(b) The commissioner shall approve or disapprove professional designation examinations that are recommended for approval by the advisory task force. In order for an agent to receive full continuing education credit for a professional designation examination, the agent must pass the examination. An agent may not receive credit for classroom instruction preparing for the professional designation examination and also receive continuing education credit for passing the professional designation examination.

(c) The commissioner may not accredit a course:

(1) that is designed to prepare students for a license examination;

(2) in mechanical office or business skills, including typing, speedreading, use of calculators, or other machines or equipment;

(3) in sales promotion, including meetings held in conjunction with the general business of the licensed agent;

(4) in motivation, the art of selling, psychology, or time management; or

(5) which can be completed by the student at home or outside the classroom without the supervision of an instructor approved by the department of commerce, except that home-study courses may be accredited by the commissioner if the student is a nonresident agent residing in a state which is not contiguous to Minnesota.

Sec. 8. Minnesota Statutes 1994, section 60K.19, subdivision 8, is amended to read:

Subd. 8. [MINIMUM EDUCATION REQUIREMENT.] Each person subject to this section shall complete a minimum of 30 credit hours of courses accredited by the commissioner during each 24-month licensing period after the expiration of his or her initial licensing period. At least 15 of the 30 credit hours must be completed during the first 12 months of the 24-month licensing period. Any person whose initial licensing period extends more than six months shall complete 15 hours of courses accredited by the commissioner during the initial license period. Any person teaching or lecturing at an accredited course qualifies for 1-1/2 times the number of credit hours that would be granted to a person completing the accredited course. No more than 15 credit hours per licensing period may be credited to a person for courses sponsored by, offered by, or affiliated with an insurance company or its agents. Continuing education must be earned no later than September 30 of the renewal year. Courses sponsored by, offered by, or affiliated with an insurance company or agent may restrict its students to agents of the company or agency.

Sec. 9. Minnesota Statutes 1994, section 60K.19, subdivision 10, is amended to read:

Subd. 10. [REPORTING.] (a) After completing the minimum education requirement, each person subject to this section shall file or cause to be filed a compliance report in accordance with the procedures adopted by the commissioner. The compliance report must not claim credit for continuing education not actually completed at the date of filing the report.

(b) An institution offering an accredited course shall comply with the procedure for reporting compliance adopted by the commissioner.

(c) If a person subject to this section completes a nonaccredited course, that person may submit a written report to the advisory committee accompanied by a fee of not more than $10 payable to the state of Minnesota for deposit in the general fund. This report must be accompanied by proof satisfactory to the commissioner that the person has completed the minimum education requirement for the annual period during which the nonaccredited course was completed. Upon the recommendation of the advisory committee that the course satisfies the criteria for course accreditation, the commissioner may approve the nonaccredited course and shall so inform the person. If the nonaccredited course is approved by the commissioner, it may be used to satisfy the minimum education requirement for the person's next annual compliance period.


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Sec. 10. Minnesota Statutes 1995 Supplement, section 83.26, subdivision 2, is amended to read:

Subd. 2. [GENERALLY; TRANSACTIONS.] Unless the method of offer or sale is adopted for the purpose of evasion of sections 83.20 to 83.42, 83.43 and 83.44, the following transactions are exempt from sections 83.23, 83.24, 83.25, 83.28, 83.29, and 83.30:

(a) the offer or sale of an interest in subdivided land by an owner, other than the subdivider, acting as principal in a single or isolated transaction;

(b) the offer or sale of all of the subdivided lands within a subdivision in a single transaction to any person;

(c) the offer or sale of subdivided land pursuant to an order of competent jurisdiction, other than a court of bankruptcy;

(d) the offer or sale of subdivided land consisting of not more than ten separate lots, units, parcels, or interests in the aggregate, provided that no subdivider may make an offer or sale of subdivided land pursuant to this exemption more than once during any period of 12 consecutive months;

(e) the offer or sale of subdivided lands which have been registered under section 83.23, subdivision 2, if there are no more than ten separate lots, units, parcels, or interests remaining to be sold and no material change has occurred in the information on file with the commissioner;

(f) the offer and sale of subdivided land located within the corporate limits of a municipality as defined in section 462.352, subdivision 2, which municipality has adopted subdivision regulations as defined in section 462.352, except those lands described in section 83.20, subdivision 13;

(g) the offer and sale of apartments or condominium units as defined in chapters 515 and 515A, and units in common interest communities as defined in chapter 515B;

(h) the offer and sale of subdivided lands used primarily for agricultural purposes provided each parcel is at least ten acres in size;

(i) the offer or sale of improved lots if:

(1) the subdivider has filed with the commissioner, no later than ten business days prior to the date of the first sale, a written notice of its intention to offer or sell improved lots, which notice shall be accompanied by a fee of $50, together with a copy of the public offering statement accepted by the situs state and the standard purchase agreement which documents are required to be supplied by the subdivider to the purchaser; and

(2) the subdivider deposits all downpayments in an escrow account until all obligations of the subdivider to the purchaser, which are pursuant to the terms of the purchase agreement to be performed prior to the closing, have been performed. The subdivider shall provide the purchaser with a purchase receipt for the downpayment paid, a copy of the escrow agreement and the name, address, and telephone number of the escrow agent. The escrow agent shall be a bank located in Minnesota. All downpayments shall be deposited in the escrow account within two business days after receipt; and

(j) the offer of sale of subdivided lands by a subdivider that has been granted an exemption from registration by the federal Department of Housing and Urban Development under the multiple site subdivision exemption, if the subdivider provides a written notice of the offer of sale to the commissioner before any offers or sale commence.

The written notice must include the name of the subdivision, the county and state in which the subdivision is located, and the number of lots in the subdivision, and a notarized affidavit that all proposed improvements have been completed and the costs of all the improvements have been fully paid, or that the cost of any uncompleted road construction or survey expenses are covered by a bond or escrow account payable to the entities responsible for providing or completing the roads or surveys. The escrow account must be with an independent escrow agent.

The subdivider must also provide to the commissioner a copy of the federal Housing and Urban Development exemption order and the most recent annual confirmation letter which indicates that the order is still in effect.


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If the closing services are provided by the subdivider or an affiliate of the subdivider, purchasers must manually initial in the Housing and Urban Development Lot Information Statement both the disclosure on all the liens, reservations, taxes, assessments, easements, and restrictions applicable to the lot purchased and the disclosure on the risks of not obtaining clear title.

The commissioner may, by rule or order, suspend, revoke, or further condition the exemptions contained in clauses (f), (g), (h), (i), and (j), or may require such further information as may be necessary for the protection of purchasers.

The commissioner may by rule or order suspend, revoke, or further condition the exemptions contained in clauses (f), (g), (h), and (i) or may require such further information as may be necessary for the protection of purchasers.

The rulemaking authority in this subdivision does not include emergency rulemaking authority pursuant to chapter 14.

Sec. 11. Minnesota Statutes 1994, section 155A.08, subdivision 3, is amended to read:

Subd. 3. [HEALTH AND SANITARY STANDARDS.] Minimum health and sanitary standards for the operation of a salon shall be established by rule. A salon shall not be located in a room used for residential purposes. If a salon is in the residence of a person practicing cosmetology, the rooms used for the practice of cosmetology shall be completely partitioned off from the living quarters. There shall be an inspection at least annually The salon may be inspected as often as the commissioner considers necessary to affirm compliance.

Sec. 12. Minnesota Statutes 1994, section 155A.09, subdivision 7, is amended to read:

Subd. 7. [INSPECTIONS.] All schools shall may be inspected at least once a year as often as the commissioner considers necessary to affirm compliance. The commissioner shall have the authority to assess the cost of the inspection to the school.

Sec. 13. Minnesota Statutes 1994, section 155A.095, is amended to read:

155A.095 [INSPECTIONS.]

The commissioner is responsible for inspecting salons and schools licensed pursuant to this chapter to assure compliance with the requirements of this chapter. The commissioner shall direct department resources first to the inspection of those licensees who fail to meet the requirements of law, have indicated that they present a greater risk to the public, or have otherwise, in the opinion of the commissioner, demonstrated that they require a greater degree of regulatory attention. In no event shall a salon or school be inspected less often than once each year.

Sec. 14. Minnesota Statutes 1994, section 332.34, is amended to read:

332.34 [BOND.]

The commissioner of commerce shall require each collection agency licensee to annually file and maintain in force a corporate surety bond, in a form to be prescribed by, and acceptable to, the commissioner, and in the sum of $20,000. An applicant for a new or renewal license may request that the amount of the bond be reduced to an amount not less than $5,000. This request may be granted upon a showing that the total dollar amount received from debtors by the collection agency in the preceding fiscal year did not exceed $30,000. A collection agency may deposit cash in and with a depository acceptable to the commissioner in an amount and in the manner prescribed and approved by the commissioner in lieu of a bond.

Sec. 15. [332.395] [COMMISSIONER'S POWER OVER INEFFECTIVE LICENSES.]

If a license lapses, is surrendered, withdrawn, terminated, or otherwise becomes ineffective, the commissioner of commerce may do either or both of the following: (1) institute a proceeding under section 45.027 within two years after the license was last effective and enter a revocation or suspension order as of the last date on which the license was in effect; (2) impose a civil penalty as provided for in section 45.027, subdivision 6.


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Sec. 16. Minnesota Statutes 1994, section 345.41, is amended to read:

345.41 [REPORT OF ABANDONED PROPERTY.]

(a) Every person holding funds or other property, tangible or intangible, presumed abandoned under sections 345.31 to 345.60 shall report annually to the commissioner with respect to the property as hereinafter provided.

(b) The report shall be verified and shall include:

(1) except with respect to traveler's checks and money orders, the name, if known, and last known address, if any, of each person appearing from the records of the holder to be the owner of any property of the value of $100 or more presumed abandoned under sections 345.31 to 345.60;

(2) in case of unclaimed funds of life insurance corporations, the full name of the policyholder, insured or annuitant and that person's last known address according to the life insurance corporation's records;

(3) the nature and identifying number, if any, or description of the property and the amount appearing from the records to be due, except that items of value under $100 each may be reported in aggregate;

(4) the date when the property became payable, demandable or returnable, and the date of the last transaction with the owner with respect to the property; and

(5) other information which the commissioner prescribes by rule as necessary for the administration of sections 345.31 to 345.60.

(c) If the person holding property presumed abandoned is a successor to other persons who previously held the property for the owner, or if the holder has changed a name while holding the property, the holder shall file with the report all prior known names and addresses of each holder of the property.

(d) The report shall be filed before November 1 of each year as of June 30 next preceding, but the report of life insurance corporations shall be filed before October 1 of each year as of December 31 next preceding. The commissioner may postpone the reporting date upon written request by any person required to file a report.

(e) If the holder of property presumed abandoned under sections 345.31 to 345.60 knows the whereabouts of the owner and if the owner's claim has not been barred by the statute of limitations, the holder shall, before filing the annual report, inform the owner of the steps necessary to prevent abandonment from being presumed. Not more than 120 days before filing the report required by this section, the holder in possession of property abandoned and subject to custody as unclaimed property under this chapter shall send written notice to the presumed owner at that owner's last known address informing the owner that the holder is in possession of property subject to this chapter and advising the owner of the steps necessary to prevent abandonment if:

(1) the holder has in its records an address for the presumed owner that the holder's records do not disclose to be inaccurate;

(2) the claim of the apparent owner is not barred by the statute of limitations; and

(3) the property has a value of $100 or more.

(f) Verification, if made by a partnership, shall be executed by a partner; if made by an unincorporated association or private corporation, by an officer, and if made by a public corporation, by its chief fiscal officer.

(g) Holders of property described in section 345.32 shall not impose any charges against property which is described in section 345.32, clause (a), (b) or (c).

(h) Any person who has possession of property which the person has reason to believe will be reportable in the future as unclaimed property may, with the permission of the commissioner, report and deliver such property prior to the date required for reporting in accordance with this section.


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Sec. 17. Minnesota Statutes 1994, section 345.42, is amended to read:

345.42 [NOTICE AND PUBLICATION OF LISTS OF ABANDONED PROPERTY.]

Subdivision 1. On or before April 1 of each year Within the calendar year next following the year in which abandoned property has been paid or delivered to the commissioner, the commissioner shall cause notice to be published at least once but not more than twice in an English language newspaper of general circulation in the county in this state in which is located the last known address of any person to be named in the notice. If no address is listed or if the address is outside this state, the notice shall be published in the county in which the holder of the abandoned property has a principal place of business within this state.

Subd. 2. The published notice shall be entitled "notice of names of persons appearing to be owners of abandoned property," and shall contain:

(a) the names in alphabetical order and last known addresses, if any, of persons listed in the report and entitled to notice within the county as hereinbefore specified;

(b) a statement that information concerning the amount or description of the property and the name and address of the holder may be obtained by any persons possessing an interest in the property by addressing an inquiry to the commissioner explaining that property of the owner has been presumed to be abandoned and has been taken into the protective custody of the commissioner; and

(c) a statement that if proof of claim is not presented by the owner to the holder and if the owner's right to receive the property is not established to the holder's satisfaction within 65 days from the date of the second published notice, the abandoned property will be placed not later than 85 days after such publication date in the custody of the commissioner to whom all further claims must thereafter be directed information about the abandoned property and its return to the apparent owner may be obtained at any time by a person having a legal or beneficial interest in that property by making an inquiry to the commissioner.

The commissioner is not required to publish in such notice any item of less than $100 unless the commissioner deems such publication to be in the public interest.

Subd. 3. On or before April 1 of each year Within the calendar year next following the year in which abandoned property has been paid or delivered to the commissioner, the commissioner may mail a notice to each person having an address listed therein who appears to be entitled to property of the value of $100 or more presumed abandoned under sections 345.31 to 345.60. Said notice shall contain:

(a) a statement that, according to a report filed with the commissioner, property is being held to which the addressee appears entitled;

(b) the name and address of the person holding the property and any necessary information regarding changes of name and address of the holder a statement explaining that property of the owner has been presumed to be abandoned and has been taken into the protective custody of the commissioner; and

(c) a statement that, if satisfactory proof of claim is not presented by the owner to the holder by the date specified in the published notice, the property will be placed in the custody of the commissioner to whom all further claims must be directed information about the abandoned property and its return to the apparent owner may be obtained at any time by a person having a legal or beneficial interest in that property by making an inquiry to the commissioner.

Subd. 4. This section is not applicable to sums payable on traveler's checks or money orders presumed abandoned under section 345.32.

Sec. 18. Minnesota Statutes 1994, section 345.43, is amended by adding a subdivision to read:

Subd. 2a. [HOLDER'S OBLIGATIONS.] At the time of the filing of the report required under section 345.41 and with that report, the holder reporting property presumed abandoned and subject to custody as unclaimed property shall pay or deliver to the commissioner all of the property shown on the report and remaining unclaimed by the apparent owner.


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Upon written request showing good cause, the commissioner may postpone the payment or delivery upon the terms or conditions the commissioner considers necessary and appropriate.

The property paid or delivered to the commissioner shall include all interest, dividends, increments, and accretions due, payable, or distributable on the property on November 1, or October 1 for a life insurance company. If payment or delivery is postponed, the property paid or delivered to the commissioner shall include accretions due, payable, or distributable on the day that the property is paid or delivered to the commissioner.

Sec. 19. Minnesota Statutes 1994, section 345.515, is amended to read:

345.515 [AGREEMENTS TO LOCATE REPORTED PROPERTY.]

It is unlawful for a person to seek or receive from another person or contract with a person for a fee or compensation for locating property knowing it to have been reported or paid or delivered to the commissioner pursuant to chapter 345 prior to seven months after the date of delivery of the property by the holder to published notice by the commissioner as required by section 345.43 345.42.

No agreement entered into after seven months from the date of delivery of the property by the holder to published notice by the commissioner is valid if a person thereby undertakes to locate property included in a report for a fee or other compensation exceeding ten percent of the value of the recoverable property unless the agreement is in writing and signed by the owner and discloses the nature and value of the property and the name and address of the holder thereof as such facts have been reported. Nothing in this section shall be construed to prevent an owner from asserting at any time that an agreement to locate property is based upon an excessive or unjust consideration.

Sec. 20. Minnesota Statutes 1994, section 359.01, subdivision 1, is amended to read:

Subdivision 1. [RESIDENT NOTARIES.] The governor may appoint and commission as notaries public, by and with the advice and consent of the senate, as many citizens of this state or resident aliens, over the age of 18 years, as the governor considers necessary. The commissioner of commerce shall perform all duties necessary to appoint and commission notaries public under this section on the governor's behalf.

Sec. 21. Minnesota Statutes 1994, section 359.01, subdivision 2, is amended to read:

Subd. 2. [NONRESIDENT NOTARIES.] Notwithstanding the provisions of subdivision 1, The governor may appoint as notary public, by and with the advice and consent of the senate, or the commissioner of commerce, acting on the governor's behalf, may appoint as notary public a person who is not a resident of this state if:

(1) the person is a resident of Wisconsin, Iowa, North Dakota, or South Dakota, and of a county that shares a boundary with this state;

(2) the person designates the commissioner as agent for the service of process for all purposes relating to notarial acts and for receipt of all correspondence relating to notarial acts.

Sec. 22. Minnesota Statutes 1994, section 359.02, is amended to read:

359.02 [TERM.]

A notary commissioned under section 359.01 holds office for five years, unless sooner removed by the governor or the district court, or by action of the commissioner. Within 30 days before the expiration of the commission a notary may be reappointed for a new term to commence and to be designated in the new commission as beginning upon the day immediately following the date of the expiration. The reappointment takes effect and is valid although the appointing governor may not be in the office of governor on the effective day.

(a) All notary commissions issued before January 31, 1995, will expire on January 31, 1995.

(b) All notary commissions issued after January 31, 1995, will expire at the end of the licensing period, which will end every fifth year following January 31, 1995.

(c) All notary commissions issued during a licensing period expire at the end of that period as set forth in this section.


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Sec. 23. Minnesota Statutes 1994, section 359.061, is amended to read:

359.061 [RECORD OF COMMISSION; CERTIFICATE.]

The commission of every notary shall be recorded in the office of the court administrator of the district court of the notary's county of appointment residence, in a record kept for that purpose. The court administrator, when requested, shall certify to official acts in the manner and for the fees prescribed by statute or court rule.

Sec. 24. [REPEALER.]

Minnesota Statutes 1994, section 345.43, subdivisions 1 and 2, are repealed.

Sec. 25. [EFFECTIVE DATES.]

Sections 7 to 9 are effective the day following final enactment.

ARTICLE 2

SECURITIES

Section 1. Minnesota Statutes 1994, section 45.027, is amended by adding a subdivision to read:

Subd. 7a. [AUTHORIZED DISCLOSURES OF INFORMATION AND DATA.] The commissioner may release and disclose any active or inactive investigative information and data on licensees to any national securities exchange or national securities association registered under the Securities Exchange Act of 1934 when necessary for the requesting agency in initiating, furthering, or completing an investigation.

Sec. 2. Minnesota Statutes 1994, section 80A.05, subdivision 1, is amended to read:

Subdivision 1. A broker-dealer, agent or investment adviser may obtain an initial or renewal license by filing with the commissioner or a designee an application together with a consent to service of process pursuant to section 80A.27, subdivision 7. The application shall be on a form prescribed by the commissioner and shall contain whatever information the commissioner requires concerning such matters as the applicant's form and place of organization, proposed method of doing business and financial condition, the qualifications and experience of the applicant, including, in the case of a broker-dealer or investment adviser, the qualifications and experience of any partner, officer, director or controlling person, any injunction or administrative order or conviction of a misdemeanor involving securities and any conviction of a felony. The commissioner may by order, with respect to any particular application, require the submission of information concerning any other matters which the commissioner determines are relevant to the application. The commissioner may by rule or order require an applicant for an initial license to publish an announcement of the application in one or more specified newspapers published in this state.

If no denial order is in effect, no proceeding is pending under section 80A.07, and all of the requirements of this subdivision and subdivision 3 have been complied with, the licensing becomes effective 30 days after an application is filed. The commissioner may by rule or order specify an earlier effective date, and may by order defer the effective date until 30 days after the filing of any amendment.

An application that is incomplete will be considered withdrawn if no activity occurs with respect to the application for a period of 120 days. Notwithstanding section 80A.28, subdivision 1, paragraph (c), no part of the filing fee shall be returned if a registration statement is withdrawn according to this subdivision.

Sec. 3. Minnesota Statutes 1994, section 80A.06, subdivision 3, is amended to read:

Subd. 3. If the information contained in any document filed with the commissioner is or becomes inaccurate or incomplete in any material respect, the licensee shall promptly within 30 days file a correcting amendment unless notification of the correction has been given under section 80A.04, subdivision 2.

Sec. 4. Minnesota Statutes 1994, section 80A.09, is amended by adding a subdivision to read:

Subd. 5. [WITHDRAWAL.] A registration statement that is incomplete will be considered withdrawn if no activity occurs with respect to the application for a period of 120 days. Notwithstanding section 80A.28, subdivision 1, paragraph (c), no part of the filing fee shall be returned if a registration statement is withdrawn according to this subdivision.


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Sec. 5. Minnesota Statutes 1994, section 80A.10, subdivision 4, is amended to read:

Subd. 4. [WITHDRAWAL.] A registration statement that has been on file with the commissioner for a period of nine months and has not become effective is considered to have been withdrawn. If the registration statement has been amended, the nine-month period must be computed from the date of the latest amendment. is pending effectiveness will be considered withdrawn if no activity occurs with respect to the application for a period of 120 days. Notwithstanding the provisions of section 80A.28, subdivision 1, paragraph (c), no part of the filing fee shall be returned if a registration statement is withdrawn pursuant according to this subdivision.

Sec. 6. Minnesota Statutes 1994, section 80A.11, is amended by adding a subdivision to read:

Subd. 5. [WITHDRAWAL.] A registration statement that is pending effectiveness will be considered withdrawn if no activity occurs with respect to the application for a period of 120 days. Notwithstanding section 80A.28, subdivision 1, paragraph (c), no part of the filing fee shall be returned if a registration statement is withdrawn according to this subdivision.

Sec. 7. Minnesota Statutes 1994, section 80A.14, is amended by adding a subdivision to read:

Subd. 20. [QUALIFIED CHARITY.] "Qualified charity" means an organization that is described in section 501(c)(3) of the Internal Revenue Code and that is not a private foundation as described in section 509 of the Internal Revenue Code.

Sec. 8. Minnesota Statutes 1994, section 80A.14, is amended by adding a subdivision to read:

Subd. 21. [INTERNAL REVENUE CODE.] "Internal Revenue Code" means the Internal Revenue Code of 1986, as amended, United States Code, title 26, section 1 et seq.

Sec. 9. Minnesota Statutes 1994, section 80A.14, is amended by adding a subdivision to read:

Subd. 22. [POOLED INCOME FUND.] "Pooled income fund" means a trust that meets the requirements of a pooled income fund as defined in section 642(C)(5) of the Internal Revenue Code, provided that the remainder beneficiary is a qualified charity.

Sec. 10. Minnesota Statutes 1994, section 80A.14, is amended by adding a subdivision to read:

Subd. 23. [CHARITABLE REMAINDER TRUST.] "Charitable remainder trust" means a trust that meets the requirements of either a charitable remainder annuity trust or a charitable remainder unitrust as defined in section 664 of the Internal Revenue Code, provided that the remainder beneficiary is a qualified charity.

Sec. 11. Minnesota Statutes 1994, section 80A.14, is amended by adding a subdivision to read:

Subd. 24. [CHARITABLE LEAD TRUST.] "Charitable lead trust" means a trust that meets the requirements of a charitable lead trust as described in section 170(F)(2) of the Internal Revenue Code, provided that the lead beneficiary is a qualified charity.

Sec. 12. Minnesota Statutes 1994, section 80A.14, is amended by adding a subdivision to read:

Subd. 25. [CHARITABLE GIFT ANNUITY.] "Charitable gift annuity" means an annuity that meets the requirements of a charitable gift annuity as defined in section 501(m)(5) of the Internal Revenue Code.

Sec. 13. Minnesota Statutes 1995 Supplement, section 80A.15, subdivision 1, is amended to read:

Subdivision 1. The following securities are exempted from sections 80A.08 and 80A.16:

(a) Any security, including a revenue obligation, guaranteed by the United States, any state, any political subdivision of a state or any corporate or other instrumentality of one or more of the foregoing; but this exemption shall not include any industrial revenue bond. Pursuant to section 106(c) of the Secondary Mortgage Market Enhancement Act of 1984, Public Law Number 98-440, this exemption does not apply to a security that is offered or sold pursuant to section 106(a)(1) or (2) of that act.


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(b) Any security issued or guaranteed by Canada, any Canadian province, any political subdivision of any province, any agency or corporate or other instrumentality of one or more of the foregoing, if the security is recognized as a valid obligation by the issuer or guarantor; but this exemption shall not include any revenue obligation payable solely from payments to be made in respect of property or money used under a lease, sale or loan arrangement by or for a nongovernmental industrial or commercial enterprise.

(c) Any security issued by and representing an interest in or a debt of, or guaranteed by, any bank organized under the laws of the United States, or any bank, savings institution or trust company organized under the laws of any state and subject to regulation in respect of the issuance or guarantee of its securities by a governmental authority of that state.

(d) Any security issued by and representing an interest in or a debt of, or guaranteed by, any federal savings association, or any savings association or similar association organized under the laws of any state and authorized to do business in this state.

(e) Any security issued or guaranteed by any federal credit union or any credit union, or similar association organized and supervised under the laws of this state.

(f) Any security listed or approved for listing upon notice of issuance on the New York Stock Exchange, the American Stock Exchange, the Midwest Stock Exchange, the Pacific Stock Exchange, or the Chicago Board Options Exchange; any other security of the same issuer which is of senior or substantially equal rank; any security called for by subscription rights or warrants so listed or approved; or any warrant or right to purchase or subscribe to any of the foregoing. This exemption does not apply to second tier listings on any of the exchanges in this paragraph.

(g) Any commercial paper which arises out of a current transaction or the proceeds of which have been or are to be used for current transactions, and which evidences an obligation to pay cash within nine months of the date of issuance, exclusive of days of grace, or any renewal of the paper which is likewise limited, or any guarantee of the paper or of any renewal which are not advertised for sale to the general public in newspapers or other publications of general circulation or otherwise, or by radio, television or direct mailing.

(h) Any interest in any employee's savings, stock purchase, pension, profit sharing or similar benefit plan, or a self-employed person's retirement plan.

(i) Any security issued or guaranteed by any railroad, other common carrier or public utility which is subject to regulation in respect to the issuance or guarantee of its securities by a governmental authority of the United States.

(j) Any interest in a common trust fund or similar fund maintained by a state bank or trust company organized and operating under the laws of Minnesota, or a national bank wherever located, for the collective investment and reinvestment of funds contributed thereto by the bank or trust company in its capacity as trustee, executor, administrator, or guardian; and any interest in a collective investment fund or similar fund maintained by the bank or trust company, or in a separate account maintained by an insurance company, for the collective investment and reinvestment of funds contributed thereto by the bank, trust company or insurance company in its capacity as trustee or agent, which interest is issued in connection with an employee's savings, pension, profit sharing or similar benefit plan, or a self-employed person's retirement plan.

(k) Any security which meets all of the following conditions:

(1) If the issuer is not organized under the laws of the United States or a state, it has appointed a duly authorized agent in the United States for service of process and has set forth the name and address of the agent in its prospectus;

(2) A class of the issuer's securities is required to be and is registered under section 12 of the Securities Exchange Act of 1934, and has been so registered for the three years immediately preceding the offering date;

(3) Neither the issuer nor a significant subsidiary has had a material default during the last seven years, or for the period of the issuer's existence if less than seven years, in the payment of (i) principal, interest, dividend, or sinking fund installment on preferred stock or indebtedness for borrowed money, or (ii) rentals under leases with terms of three years or more;


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(4) The issuer has had consolidated net income, before extraordinary items and the cumulative effect of accounting changes, of at least $1,000,000 in four of its last five fiscal years including its last fiscal year; and if the offering is of interest bearing securities, has had for its last fiscal year, net income, before deduction for income taxes and depreciation, of at least 1-1/2 times the issuer's annual interest expense, giving effect to the proposed offering and the intended use of the proceeds. For the purposes of this clause "last fiscal year" means the most recent year for which audited financial statements are available, provided that such statements cover a fiscal period ended not more than 15 months from the commencement of the offering;

(5) If the offering is of stock or shares other than preferred stock or shares, the securities have voting rights and the rights include (i) the right to have at least as many votes per share, and (ii) the right to vote on at least as many general corporate decisions, as each of the issuer's outstanding classes of stock or shares, except as otherwise required by law; and

(6) If the offering is of stock or shares, other than preferred stock or shares, the securities are owned beneficially or of record, on any date within six months prior to the commencement of the offering, by at least 1,200 persons, and on that date there are at least 750,000 such shares outstanding with an aggregate market value, based on the average bid price for that day, of at least $3,750,000. In connection with the determination of the number of persons who are beneficial owners of the stock or shares of an issuer, the issuer or broker-dealer may rely in good faith for the purposes of this clause upon written information furnished by the record owners.

(l) Any certificate of indebtedness sold or issued for investment, other than a certificate of indebtedness pledged as a security for a loan made contemporaneously therewith, and any savings account or savings deposit issued, by an industrial loan and thrift company.

(m) Any security designated or approved for designation upon notice of issuance on the NASDAQ/National Market System; any other security of the same issuer that is of senior or substantially equal rank; any security called for by subscription rights or warrants so designated or approved; or any warrant or right to purchase or subscribe to any of the securities referred to in this paragraph; provided that the National Market System provides the commissioner with notice of any material change in its designation requirements. The commissioner may revoke this exemption if the commissioner determines that the designation requirements are not enforced or are amended in a manner that lessens protection to investors.

Sec. 14. Minnesota Statutes 1994, section 80A.15, subdivision 2, is amended to read:

Subd. 2. The following transactions are exempted from sections 80A.08 and 80A.16:

(a) Any sales, whether or not effected through a broker-dealer, provided that:

(1) no person shall make more than ten sales of securities of the same issuer pursuant to this exemption, exclusive of sales according to clause (2), during any period of 12 consecutive months; provided further, that in the case of sales by an issuer, except sales of securities registered under the Securities Act of 1933 or exempted by section 3(b) of that act, (1) (i) the seller reasonably believes that all buyers are purchasing for investment, and (2) (ii) the securities are not advertised for sale to the general public in newspapers or other publications of general circulation or otherwise, or by radio, television, electronic means or similar communications media, or through a program of general solicitation by means of mail or telephone.; and

(2) no issuer shall make more than 25 sales of its securities according to this exemption, exclusive of sales pursuant to clause (1), during any period of 12 consecutive months; provided further, that the issuer meets the conditions in clause (1) and, in addition meets the following additional conditions: (i) files with the commissioner, ten days before a sale according to this clause, a statement of issuer on a form prescribed by the commissioner; and (ii) no commission or other remuneration is paid or given directly or indirectly for soliciting any prospective buyers in this state in connection with a sale according to this clause except reasonable and customary commissions paid by the issuer to a broker-dealer licensed under this chapter.

(b) Any nonissuer distribution of an outstanding security if (1) either Moody's, Fitch's, or Standard & Poor's Securities Manuals, or other recognized manuals approved by the commissioner contains the names of the issuer's officers and directors, a balance sheet of the issuer as of a date not more than 18 months prior to the date of the sale, and a profit and loss statement for the fiscal year preceding the date of the balance sheet, and (2) the issuer or its predecessor has been in active, continuous business operation for the five-year period next preceding the date of sale, and (3) if the security has a fixed maturity or fixed interest or dividend provision, the issuer has not, within the three preceding fiscal years, defaulted in payment of principal, interest, or dividends on the securities.


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(c) The execution of any orders by a licensed broker-dealer for the purchase or sale of any security, pursuant to an unsolicited offer to purchase or sell; provided that the broker-dealer acts as agent for the purchaser or seller, and has no direct material interest in the sale or distribution of the security, receives no commission, profit, or other compensation from any source other than the purchaser and seller and delivers to the purchaser and seller written confirmation of the transaction which clearly itemizes the commission, or other compensation.

(d) Any nonissuer sale of notes or bonds secured by a mortgage lien if the entire mortgage, together with all notes or bonds secured thereby, is sold to a single purchaser at a single sale.

(e) Any judicial sale, exchange, or issuance of securities made pursuant to an order of a court of competent jurisdiction.

(f) The sale, by a pledge holder, of a security pledged in good faith as collateral for a bona fide debt.

(g) Any offer or sale to a bank, savings institution, trust company, insurance company, investment company as defined in the Investment Company Act of 1940, pension or profit sharing trust, or other financial institution or institutional buyer, or to a broker-dealer, whether the purchaser is acting for itself or in some fiduciary capacity.

(h) Any sales by an issuer to the number of persons that shall not exceed 25 persons in this state, or 35 persons if the sales are made in compliance with Regulation D promulgated by the Securities and Exchange Commission, Code of Federal Regulations, title 17, sections 230.501 to 230.506, (other than those designated in paragraph (a) or (g)), whether or not any of the purchasers is then present in this state, if (1) the issuer reasonably believes that all of the buyers in this state (other than those designated in clause (g)) are purchasing for investment, and (2) no commission or other remuneration is paid or given directly or indirectly for soliciting any prospective buyer in this state (other than those designated in clause (g)), except reasonable and customary commissions paid by the issuer to a broker-dealer licensed under this chapter, and (3) the issuer has, ten days prior to any sale pursuant to this paragraph, supplied the commissioner with a statement of issuer on forms prescribed by the commissioner, containing the following information: (i) the name and address of the issuer, and the date and state of its organization; (ii) the number of units, price per unit, and a description of the securities to be sold; (iii) the amount of commissions to be paid and the persons to whom they will be paid; (iv) the names of all officers, directors and persons owning five percent or more of the equity of the issuer; (v) a brief description of the intended use of proceeds; (vi) a description of all sales of securities made by the issuer within the six-month period next preceding the date of filing; and (vii) a copy of the investment letter, if any, intended to be used in connection with any sale. Sales that are made more than six months before the start of an offering made pursuant to this exemption or are made more than six months after completion of an offering made pursuant to this exemption will not be considered part of the offering, so long as during those six-month periods there are no sales of unregistered securities (other than those made pursuant to paragraph (a) or (g)) by or for the issuer that are of the same or similar class as those sold under this exemption. The commissioner may by rule or order as to any security or transaction or any type of security or transaction, withdraw or further condition this exemption, or increase the number of offers and sales permitted, or waive the conditions in clause (1), (2), or (3) with or without the substitution of a limitation or remuneration. An offer or sale of securities by an issuer made in reliance on the exemptions provided by Rule 505 or 506 of Regulation D promulgated by the Securities and Exchange Commission, Code of Federal Regulations, title 17, sections 230.501 to 230.508, subject to the conditions and definitions provided by Rules 501 to 503 of Regulation D, if the offer and sale also satisfies the conditions and limitations in clauses (1) to (10).

(1) The exemption under this paragraph is not available for the securities of an issuer if any of the persons described in Rule 252(c) to (f) of Regulation A promulgated by the Securities and Exchange Commission, Code of Federal Regulations, title 17, sections 230.251 to 230.263:

(i) has filed a registration statement that is the subject of a currently effective order entered against the issuer, its officers, directors, general partners, controlling persons, or affiliates, according to any state's law within five years before the filing of the notice required under clause (5), denying effectiveness to, or suspending or revoking the effectiveness of, the registration statement;

(ii) has been convicted, within five years before the filing of the notice required under clause (5), of a felony or misdemeanor in connection with the offer, sale, or purchase of a security or franchise, or a felony involving fraud or deceit, including but not limited to forgery, embezzlement, obtaining money under false pretenses, larceny, or conspiracy to defraud;


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(iii) is subject to an effective administrative order or judgment entered by a state securities administrator within five years before the filing of the notice required under clause (5), that prohibits, denies, or revokes the use of an exemption from securities registration, that prohibits the transaction of business by the person as a broker-dealer or agent, or that is based on fraud, deceit, an untrue statement of a material fact, or an omission to state a material fact; or

(iv) is subject to an order, judgment, or decree of a court entered within five years before the filing of the notice required under clause (5), temporarily, preliminarily, or permanently restraining or enjoining the person from engaging in or continuing any conduct or practice in connection with the offer, sale, or purchase of a security, or the making of a false filing with a state.

A disqualification under paragraph (h) involving a broker-dealer or agent is waived if the broker-dealer or agent is or continues to be licensed in the state in which the administrative order or judgment was entered against the person or if the broker-dealer or agent is or continues to be licensed in this state as a broker-dealer or agent after notifying the commissioner of the act or event causing disqualification.

The commissioner may waive a disqualification under paragraph (h) upon a showing of good cause that it is not necessary under the circumstances that use of the exemption be denied.

A disqualification under paragraph (h) may be waived if the state securities administrator or agency of the state that created the basis for disqualification has determined, upon a showing of good cause, that it is not necessary under the circumstances that an exemption from registration of securities under the state's laws be denied.

It is a defense to a violation of paragraph (h) based upon a disqualification if the issuer sustains the burden of proof to establish that the issuer did not know, and in the exercise of reasonable care could not have known, that a disqualification under paragraph (h) existed.

(2) This exemption must not be available to an issuer with respect to a transaction that, although in technical compliance with this exemption, is part of a plan or scheme to evade registration or the conditions or limitations explicitly stated in paragraph (h).

(3) No commission, finder's fee, or other remuneration shall be paid or given, directly or indirectly, for soliciting a prospective purchaser, unless the recipient is appropriately registered, or exempt from registration, in this state as a broker-dealer.

(4) Nothing in this exemption is intended to or should be in any way construed as relieving issuers or persons acting on behalf of issuers from providing disclosure to prospective investors adequate to satisfy the antifraud provisions of the securities law of Minnesota.

(5) The issuer shall file with commissioner a notice on form D as adopted by the Securities and Exchange Commission according to Regulation D, Code of Federal Regulations, title 17, section 230.502. The notice must be filed not later than 15 days after the first sale in this state of securities in an offering under this exemption. Every notice on form D must be manually signed by a person duly authorized by the issuer and must be accompanied by a consent to service of process on a form prescribed by the commissioner.

(6) A failure to comply with a term, condition, or requirement of paragraph (h) will not result in loss of the exemption for an offer or sale to a particular individual or entity if the person relying on the exemption shows that: (i) the failure to comply did not pertain to a term, condition, or requirement directly intended to protect that particular individual or entity, and the failure to comply was insignificant with respect to the offering as a whole; and (ii) a good faith and reasonable attempt was made to comply with all applicable terms, conditions, and requirements of paragraph (h), except that, where an exemption is established only through reliance upon this provision, the failure to comply shall nonetheless constitute a violation of section 80A.08 and be actionable by the commissioner.

(7) The issuer, upon request by the commissioner, shall, within ten days of the request, furnish to the commissioner a copy of any and all information, documents, or materials furnished to investors or offerees in connection with the offer and sale according to paragraph (h).


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(8) Neither compliance nor attempted compliance with the exemption provided by paragraph (h), nor the absence of an objection or order by the commissioner with respect to an offer or sale of securities undertaken according to this exemption, shall be considered to be a waiver of a condition of the exemption or considered to be a confirmation by the commissioner of the availability of this exemption.

(9) The commissioner may, by rule or order, increase the number of purchasers or waive any other condition of this exemption.

(10) The determination whether offers and sales made in reliance on the exemption set forth in paragraph (h) shall be integrated with offers and sales according to other paragraphs of this subdivision shall be made according to the integration standard set forth in Rule 502 of Regulation D promulgated by the Securities and Exchange Commission, Code of Federal Regulations, title 17, section 230.502. If not subject to integration according to that rule, offers and sales according to paragraph (h) shall not otherwise be integrated with offers and sales according to other exemptions set forth in this subdivision.

(i) Any offer (but not a sale) of a security for which a registration statement has been filed under sections 80A.01 to 80A.31, if no stop order or refusal order is in effect and no public proceeding or examination looking toward an order is pending; and any offer of a security if the sale of the security is or would be exempt under this section. The commissioner may by rule exempt offers (but not sales) of securities for which a registration statement has been filed as the commissioner deems appropriate, consistent with the purposes of sections 80A.01 to 80A.31.

(j) The offer and sale by a cooperative organized under chapter 308A or under the laws of another state, of its securities when the securities are offered and sold only to its members, or when the purchase of the securities is necessary or incidental to establishing membership in the cooperative, or when such securities are issued as patronage dividends. This paragraph applies to a cooperative organized under the laws of another state only if the cooperative has filed with the commissioner a consent to service of process under section 80A.27, subdivision 7, and has, not less than ten days prior to the issuance or delivery, furnished the commissioner with a written general description of the transaction and any other information that the commissioner requires by rule or otherwise.

(l) The issuance and delivery of any securities of one corporation to another corporation or its security holders in connection with a merger, exchange of shares, or transfer of assets whereby the approval of stockholders of the other corporation is required to be obtained, provided, that the commissioner has been furnished with a general description of the transaction and with other information as the commissioner by rule prescribes not less than ten days prior to the issuance and delivery.

(m) Any transaction between the issuer or other person on whose behalf the offering is made and an underwriter or among underwriters.

(n) The distribution by a corporation of its or other securities to its own security holders as a stock dividend or as a dividend from earnings or surplus or as a liquidating distribution; or upon conversion of an outstanding convertible security; or pursuant to a stock split or reverse stock split.

(o) Any offer or sale of securities by an affiliate of the issuer thereof if: (1) a registration statement is in effect with respect to securities of the same class of the issuer and (2) the offer or sale has been exempted from registration by rule or order of the commissioner.

(p) Any transaction pursuant to an offer to existing security holders of the issuer, including persons who at the time of the transaction are holders of convertible securities, nontransferable warrants, or transferable warrants exercisable within not more than 90 days of their issuance, if: (1) no commission or other remuneration (other than a standby commission) is paid or given directly or indirectly for soliciting any security holder in this state; and (2) the commissioner has been furnished with a general description of the transaction and with other information as the commissioner may by rule prescribe no less than ten days prior to the transaction.

(q) Any nonissuer sales of any security, including a revenue obligation, issued by the state of Minnesota or any of its political or governmental subdivisions, municipalities, governmental agencies, or instrumentalities.

(r) Any transaction as to which the commissioner by rule or order finds that registration is not necessary in the public interest and for the protection of investors.


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(s) An offer or sale of a security issued in connection with an employee's stock purchase, savings, option, profit sharing, pension, or similar employee benefit plan, if the following conditions are met:

(1) the issuer, its parent corporation or any of its majority-owned subsidiaries offers or sells the security according to a written benefit plan or written contract relating to the compensation of the purchaser; and

(2) the class of securities offered according to the plan or contract, or if an option or right to purchase a security, the class of securities to be issued upon the exercise of the option or right, is registered under section 12 of the Securities Exchange Act of 1934, or is a class of securities with respect to which the issuer files reports according to section 15(d) of the Securities Exchange Act of 1934; or

(3) the issuer fully complies with the provisions of Rule 701 as adopted by the Securities and Exchange Commission, Code of Federal Regulations, title 12, section 230.701.

The issuer shall file not less than ten days before the transaction, a general description of the transaction and any other information that the commissioner requires by rule or otherwise or, if applicable, a Securities and Exchange Form S-8. Annually, within 90 days after the end of the issuer's fiscal year, the issuer shall file a notice as provided with the commissioner.

(t) Any sale of a security of an issuer that is a pooled income fund, a charitable remainder trust, or a charitable lead trust that has a qualified charity as the only charitable beneficiary.

(u) Any sale by a qualified charity of a security that is a charitable gift annuity if the issuer has a net worth, otherwise defined as unrestricted fund balance, of not less than $300,000 and either: (1) has been in continuous operation for not less than three years; or (2) is a successor or affiliate of a qualified charity that has been in continuous operation for not less than three years.

Sec. 15. Minnesota Statutes 1994, section 80A.15, subdivision 3, is amended to read:

Subd. 3. The commissioner may issue an order requiring any person who claims the benefit of an exemption with respect to a specific security or transaction, to show cause why the exemption should not be revoked. The order shall be calculated to give reasonable notice of the time and place for hearing thereon, and shall state the reasons for the entry of the order. The commissioner may by order summarily suspend an exemption pending final determination of any order to show cause. If an exemption is suspended pending final determination of an order to show cause, a hearing on the merits shall be held within 30 days of the issuance of the order of suspension. All hearings shall be conducted in accordance with the provisions of chapter 14. After the hearing, the commissioner shall enter an order making such disposition of the matter as the facts require. If the person claiming the benefit of the exemption fails to appear at a hearing of which the person has been duly notified, such person shall be deemed in default, and the proceeding may be determined against the person upon consideration of the order to show cause, the allegations of which may be deemed to be true. The commissioner may adopt rules of procedure concerning all proceedings conducted pursuant to this subdivision.

A notice filing that is incomplete is considered withdrawn if no activity occurs with respect to the notice filing for a period of 120 days.

Sec. 16. Minnesota Statutes 1994, section 80C.01, is amended by adding a subdivision to read:

Subd. 19. [ASSIST THE PURCHASER IN FINDING LOCATIONS.] "Assist the purchaser in finding locations" means to directly assist the purchaser in finding locations, or to refer the purchaser to any resource which assists in finding locations and is affiliated with the seller through common ownership, common control, a referral fee arrangement, or any other business relationship. "Assist the purchaser in finding locations" does not include providing to the purchaser a written list of resources which assist in finding locations, provided that none of the resources on the list are affiliated with the seller in any way.

Sec. 17. Minnesota Statutes 1994, section 80C.05, is amended by adding a subdivision to read:

Subd. 4. An application for registration that has not become effective will be considered withdrawn if no activity occurs with respect to the application for a period of 120 days.

Sec. 18. [REPEALER.]

Minnesota Statutes 1994, section 80A.14, subdivision 8, is repealed.


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ARTICLE 3

REAL ESTATE

Section 1. Minnesota Statutes 1994, section 82.22, subdivision 13, is amended to read:

Subd. 13. [CONTINUING EDUCATION.] (a) After their first renewal date, all real estate salespersons and all real estate brokers shall be required to successfully complete 30 hours of real estate continuing education, either as a student or a lecturer, in courses of study approved by the commissioner, during each 24-month license period. At least 15 of the 30 credit hours must be completed during the first 12 months of the 24-month licensing period. Salespersons and brokers whose initial license period extends more than 12 months are required to complete 15 hours of real estate continuing education during the initial license period. All continuing education must be earned no later than May 31 of the renewal year. Those licensees who will receive a 12-month license on July 1, 1995, because of the staggered implementation schedule must complete 15 hours of real estate continuing education as a requirement for renewal on July 1, 1996. Licensees may not claim credit for continuing education not actually completed as of the date their report of continuing education compliance is filed.

(b) The commissioner shall adopt rules defining the standards for course and instructor approval, and may adopt rules for the proper administration of this subdivision.

(c) Any program approved by Minnesota continuing legal education shall be approved by the commissioner of commerce for continuing education for real estate brokers and salespeople if the program or any part thereof relates to real estate.

(d) As part of the continuing education requirements of this section, the commissioner shall require that all real estate brokers and salespersons receive:

(1) at least two hours of training during each license period in courses in laws or regulations on agency representation and disclosure; and

(2) at least two hours of training during each license period in courses in state and federal fair housing laws, regulations, and rules, or other antidiscrimination laws.

Clause (1) does not apply to real estate salespersons and real estate brokers engaged solely in the commercial real estate business who file with the commissioner a verification of this status along with the continuing education report required under paragraph (a).

(e) The commissioner is authorized to establish a procedure for renewal of course accreditation.

Sec. 2. Minnesota Statutes 1994, section 82A.11, is amended by adding a subdivision to read:

Subd. 8. [CANCELLATION BY HEIR.] A membership camping contract that may be transferred by descent or devise must provide that the heir or devisee may cancel the contract. Cancellation of the contract relieves the heir or devisee of any further obligations under the contract.

Sec. 3. Minnesota Statutes 1994, section 82B.19, is amended by adding a subdivision to read:

Subd. 4. [RENEWAL OF ACCREDITATION.] The commissioner is authorized to establish a procedure for renewal of course accreditation.

Sec. 4. Minnesota Statutes 1995 Supplement, section 386.66, is amended to read:

386.66 [BOND OR ABSTRACTER'S LIABILITY INSURANCE POLICY.]

Before a license shall be issued, the applicant shall file with the commissioner a an annual bond or abstracter's liability insurance policy for each license year, to be approved by the commissioner, running to the state of Minnesota in the penal sum of at least $100,000 conditioned for the payment by such abstracter of any damages that may be sustained by or accrue to any person by reason of or on account of any error, deficiency or mistake arising wrongfully or negligently in any abstract, or continuation thereof, or in any certificate showing ownership of, or interest in, or liens upon any lands in the state of Minnesota, whether registered or not, made by and issued by such abstracter,


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provided however, that the aggregate liability of the surety to all persons under such bond shall in no event exceed the amount of such bond. If the applicant intends to engage in the business of abstracting in any county having more than 200,000 inhabitants, the bond or insurance policy required herein shall be in the penal sum of at least $250,000. Applicants that are title insurance companies regulated by chapter 68A and licensed pursuant to sections 60A.02 and 60A.06, subdivision 1, clause (7), and their employees or those having cash or securities on deposit with the state of Minnesota in an amount equal to the said bond or insurance policy shall be exempt from furnishing the bond or an insurance policy herein required but shall be liable to the same extent as if a bond or insurance policy has been given and filed. The bond or insurance policy required hereunder shall be written by some surety or other company authorized to do business in this state issuing bonds or abstracter's liability insurance policies and shall be issued for a period of one or more years, and renewed for one or more years year at the date of expiration as principal continues in business. The aggregate liability of such surety on such bond or insurance policy for all damages shall, in no event, exceed the sum of said bond or insurance policy.

Sec. 5. [EFFECTIVE DATES.]

Sections 1 and 3 are effective the day following final enactment.

ARTICLE 4

BUILDING CONTRACTORS

Section 1. Minnesota Statutes 1994, section 326.87, is amended by adding a subdivision to read:

Subd. 4. [RENEWAL OF ACCREDITATION.] The commissioner is authorized to establish a procedure for renewal of course accreditation.

Sec. 2. Minnesota Statutes 1994, section 326.91, is amended by adding a subdivision to read:

Subd. 3. [CERTIFICATE OF EXEMPTION HOLDERS.] For cause shown under subdivision 1 or 2, the commissioner may deny, suspend, or revoke a certificate of exemption issued under section 326.84, subdivision 3, clause (5), in the same manner as a license.

Sec. 3. Minnesota Statutes 1994, section 326.91, is amended by adding a subdivision to read:

Subd. 4. [ACTION AGAINST UNLICENSED PERSONS.] Nothing in this section prevents the commissioner from taking actions, including cease and desist actions, against persons required to be licensed under sections 326.83 to 326.991, based on conduct that would provide grounds for administrative action against a licensee under this section.

Sec. 4. Minnesota Statutes 1994, section 326.991, is amended to read:

326.991 [EXCEPTION.]

Subdivision 1. The license requirement under section 326.84 does not apply to a residential building contractor, residential remodeler, or specialty contractor licensed by the city of St. Paul or the city of Minneapolis and who is performing work within the legal boundaries of one of those municipalities that municipality.

This subdivision expires March 31, 2000.

Subd. 2. The commissioner may contract with the city of Minneapolis and the city of St. Paul to administer this licensing program.

Sec. 5. [REPEALER.]

Minnesota Statutes 1994, sections 326.95, subdivision 4; 326.97, subdivision 3; and 326.99, are repealed.

Sec. 6. [EFFECTIVE DATES.]

Sections 1 to 3 and 5 are effective the day following final enactment.

Section 4 is effective April 1, 1996.


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ARTICLE 5

MISCELLANEOUS

Section 1. Minnesota Statutes 1995 Supplement, section 309.53, subdivision 3, is amended to read:

Subd. 3. The financial statement shall include a balance sheet, statement of income and expense, and statement of functional expenses, shall be consistent with forms furnished by the attorney general, and shall be prepared in accordance with generally accepted accounting principles so as to make a full disclosure of the following, including necessary allocations between each item and the basis of such allocations:

(a) total receipts and total income from all sources;

(b) cost of management and general expenses;

(c) program services;

(d) cost of fund raising;

(d) (e) cost of public education;

(e) (f) funds or properties transferred out of state, with explanation as to recipient and purpose;

(f) (g) total net amount disbursed or dedicated within this state, broken down into total amounts disbursed or dedicated for each major purpose, charitable or otherwise;

(g) (h) names of professional fund raisers used during the accounting year and the financial compensation or and profit resulting to each professional fund raiser; and

(h) (i) a list of the five highest paid directors, officers, and employees of the organization that receive total compensation of more than $50,000, together with the total compensation paid to each. Total compensation shall include salaries, fees, bonuses, fringe benefits, severance payments, and deferred compensation paid by the charitable organization and all related organizations as that term is defined by section 317A.011, subdivision 18. On July 1, 1997, and thereafter, the charitable organization shall begin disclosure of the total compensation of the five highest paid directors, officers, and employees of any related organization if the related organization receives funds from the charitable organization.

Unless otherwise required by this subdivision, the financial statement need not be certified.

A financial statement of a charitable organization which has received total revenue in excess of $350,000 for the 12 months of operation covered by the statement shall be accompanied by an audited financial statement prepared in accordance with generally accepted accounting principles that has been examined by an independent certified public accountant for the purpose of expressing an opinion. In preparing the audit the certified public accountant shall take into consideration capital, endowment or other reserve funds, if any, controlled by the charitable organization.

Sec. 2. Minnesota Statutes 1994, section 309.57, subdivision 1, is amended to read:

Subdivision 1. [GENERAL.] Upon the application of the attorney general the district court is vested with jurisdiction to restrain, enjoin, and redress violations of sections 309.50 to 309.61. The court may make any necessary order or judgment including, but not limited to, injunctions, restitution, appointment of a receiver for the defendant or the defendant's assets, suspension of the defendant's registration, awards of reasonable attorney fees, and costs of investigation and litigation, and may award to the state civil penalties up to $25,000 $40,000 for each violation of sections 309.50 to 309.61. In ordering injunctive relief, the attorney general shall not be required to establish irreparable harm but only a violation of statute or that the requested order promotes the public interest. The court may, as appropriate, enter a consent judgment or decree without the finding of illegality.

Sec. 3. Minnesota Statutes 1994, section 325F.56, subdivision 2, is amended to read:

Subd. 2. "Repairs" means work performed for a total price of more than $100 and less than $2,000 $7,500, including the price of parts and materials, to restore a malfunctioning, defective, or worn motor vehicle, appliance, or dwelling place used primarily for personal, family, or household purposes and not primarily for business or agricultural purposes. "Repairs" do not include service calls or estimates.


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Sec. 4. Minnesota Statutes 1995 Supplement, section 325G.203, is amended by adding a subdivision to read:

Subd. 11a. For those assistive devices regulated under section 153A.19, "nonconformity" means a mechanical defect and not a condition of the device that is the result of normal use which could be resolved through fitting adjustments, cleaning, or proper care.

Sec. 5. [EFFECTIVE DATE.]

Sections 1 to 4 are effective on the day following final enactment."

Delete the title and insert:

"A bill for an act relating to commerce; changing the enforcement authority to the commissioner; providing continuing education and reporting requirements for certain licenses; regulating inspections of cosmetology salons and schools; regulating disclosures of information and data; regulating securities registrations and exemptions; regulating franchise registrations and definitions; regulating cancellations of membership camping contracts; modifying the bond or insurance requirements for abstractors; regulating residential building contractors; regulating unclaimed properties and notaries public; removing a certain licensing exception; repealing an obsolete provision; modifying reporting and enforcement provisions for charitable solicitations; regulating the repair of certain consumer goods; modifying the definition of "nonconformity" for purposes of assistive listening device regulation; amending Minnesota Statutes 1994, sections 45.011, subdivision 1; 45.027, subdivision 7, and by adding subdivisions; 53A.081, subdivision 1; 60K.19, subdivisions 7, 8, and 10; 80A.05, subdivision 1; 80A.06, subdivision 3; 80A.09, by adding a subdivision; 80A.10, subdivision 4; 80A.11, by adding a subdivision; 80A.14, by adding subdivisions; 80A.15, subdivisions 2 and 3; 80C.01, by adding a subdivision; 80C.05, by adding a subdivision; 82.22, subdivision 13; 82A.11, by adding a subdivision; 82B.19, by adding a subdivision; 155A.08, subdivision 3; 155A.09, subdivision 7; 155A.095; 309.57, subdivision 1; 325F.56, subdivision 2; 326.87, by adding a subdivision; 326.91, by adding subdivisions; 326.991; 332.34; 345.41; 345.42; 345.43, by adding a subdivision; 345.515; 359.01, subdivisions 1 and 2; 359.02; and 359.061; Minnesota Statutes 1995 Supplement, sections 16A.6701, subdivision 1; 80A.15, subdivision 1; 83.26, subdivision 2; 309.53, subdivision 3; 325G.203, by adding a subdivision; and 386.66; proposing coding for new law in Minnesota Statutes, chapters 45; and 332; repealing Minnesota Statutes 1994, sections 80A.14, subdivision 8; 326.95, subdivision 4; 326.97, subdivision 3; 326.99; and 345.43, subdivisions 1 and 2."

The motion prevailed and the amendment was adopted.

Entenza moved that S. F. No. 1915, as amended, be continued on Special Orders. The motion prevailed.

S. F. No. 1919 was reported to the House.

Hasskamp and Perlt moved to amend S. F. No. 1919, the unofficial engrossment, as follows:

Page 6, after line 14, insert:

(b) Benefits paid a claimant whose separation from employment was required by a law or Minnesota administrative rule mandating a background check, or whose separation from employment was required by law or Minnesota administrative rule because of a criminal conviction, shall not be charged to an employer that is liable for payments in lieu of contributions or to the experience rating account of an employer.

This paragraph shall be retroactive to that date the law or Minnesota administrative rule mandating a background check is effective or to that date the law or Minnesota administrative rule requiring a separation for a criminal conviction is effective."

Page 6, line 15, delete "(b)" and insert "(c)"

Page 6, line 20, delete "(c)" and insert "(d)"


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Page 31, line 32, delete "(1) whose"

Page 31, delete lines 33 through 36

Page 32, line 1, delete "whose separation was"

Page 48, delete lines 19 through 28

The motion prevailed and the amendment was adopted.

Wagenius, Perlt and Wolf moved to amend S. F. No. 1919, the unofficial engrossment, as amended, as follows:

Page 1, after line 20, delete section 1 and insert:

"Section 1. Minnesota Statutes 1994, section 117.52, is amended by adding a subdivision to read:

Subd. 4. [REEMPLOYMENT INSURANCE; COST.] When property is acquired by an acquiring authority and the acquisition directly causes loss of employment, any resulting reemployment insurance benefits charged to an employer's experience rating account for which the employer makes a voluntary contribution under section 268.06, subdivision 24, or any resulting increase in payments in lieu of contributions required under section 268.06, subdivision 28, shall be reimbursed by the acquiring authority in accordance with the procedures for relocation costs under sections 117.50 to 117.56. This subdivision shall apply to acquisitions whether federal financial participation is involved or not."

Page 7, after line 18, insert:

"Sec. 8. Minnesota Statutes 1994, section 268.06, subdivision 24, is amended to read:

Subd. 24. [VOLUNTARY CONTRIBUTIONS.] Notwithstanding any inconsistent provisions of law any employer who has been assigned a contribution rate pursuant to subdivisions 4, 6, and 8 may, for the calendar year 1967, or any calendar year thereafter, upon the voluntary payment of an amount equivalent to any portion or all of the benefits charged to the employer's account during the period ending June 30 of the preceding year used for the purpose of computing an employer's experience ratio as authorized by said subdivisions 4, 6, and 8, obtain a cancellation of benefits charged to the account during such period equal to such payment so voluntarily made. Upon the payment of such voluntary contribution, plus a surcharge of 25 percent of such benefit charged, within the applicable period prescribed by the provisions of this subdivision, the commissioner shall cancel the benefits equal to such payment, excluding the 25 percent surcharge, so voluntarily made and compute a new experience ratio for such employer. The employer then shall be assigned the contribution rate applicable to the category within which the recomputed experience ratio is included. Such voluntary payments may be made only during the 30-day period immediately following the date of mailing to the employer of the notice of contribution rate as prescribed in this section; provided that the commissioner may extend this period if the commissioner finds that the employer's failure to make such payment within such 30-day period was for good cause; and provided further that notwithstanding any of the foregoing provisions of this subdivision, in no event shall any new experience ratio be computed for any employer or a contribution rate be reduced as a result of any such voluntary payment which is made after the expiration of the 120-day period commencing with the first day of the calendar year for which such rate is effective. Voluntary contributions made within the required time limits will not be refunded unless a request is made in writing at the time of payment that the department refund the voluntary contribution if it does not result in a lower rate.

When all or a part of the benefits charged to an employer's account are for the unemployment of 75 percent or more of the employees in an employing unit and the unemployment is caused by closure of the business by the condemnation of property by a governmental agency, or damages to the unit by fire, flood, wind or other act of God, the employer may obtain a cancellation of benefits incurred because of that unemployment in the manner provided by this subdivision without being subject to the surcharge of 25 percent otherwise required."

Renumber the sections in sequence and correct internal references

Amend the title accordingly

The motion prevailed and the amendment was adopted.


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S. F. No. 1919, A bill for an act relating to reemployment insurance; making technical and administrative changes; amending Minnesota Statutes 1994, sections 268.04, subdivisions 2, 4, and by adding a subdivision; 268.06, subdivisions 5 and 24; 268.07; 268.072, subdivisions 2, 3, and 5; 268.073, subdivisions 3, 4, and 7; 268.074, subdivision 4; 268.08, as amended; 268.09, subdivision 2; 268.12, by adding a subdivision; 268.16, subdivision 4; 268.164, subdivisions 1 and 2; and 268.23; Minnesota Statutes 1995 Supplement, sections 268.041; 268.06, subdivision 20; 268.09, subdivision 1; 268.105, by adding a subdivision; 268.161, subdivision 9; and 268.18, subdivision 1; proposing coding for new law in Minnesota Statutes, chapter 268; repealing Minnesota Statutes 1994, sections 268.04, subdivisions 18 and 24; 268.10, subdivision 1; and 268.231; Minnesota Statutes 1995 Supplement, section 268.10, subdivision 2; Laws 1994, chapter 503, section 5.

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 127 yeas and 5 nays as follows:

Those who voted in the affirmative were:

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

Abrams       Knight       Lindner      
Anderson, B. Krinkie      
The bill was passed, as amended, and its title agreed to.

S. F. No. 2123 was reported to the House.

Jefferson moved to amend S. F. No. 2123 as follows:

Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 1995 Supplement, section 245A.035, subdivision 2, is amended to read:

Subd. 2. [COOPERATION WITH EMERGENCY LICENSING PROCESS.] (a) A county agency that places a child with a relative who is not licensed to provide foster care must begin the process of securing an emergency license for the relative as soon as possible and must conduct the initial inspection required by subdivision 3, clause (1), whenever possible, prior to placing the child in the relative's home, but no later than three working days after placing the child in the home. A child placed in the home of a relative who is not licensed to provide foster care must be removed from that home if the relative fails to cooperate with the county agency in securing an emergency foster care license. The commissioner may only issue an emergency foster care license to a relative with whom the county agency wishes to place or has placed a child for foster care, or to a relative with whom a child has been placed by court order.


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(b) If a child is to be placed in the home of a relative not licensed to provide foster care, either the placing agency or the county agency in the county in which the relative lives shall conduct the emergency licensing process as required in this section.

Sec. 2. Minnesota Statutes 1994, section 257.02, is amended to read:

257.02 [SURRENDER OF PARENTAL RIGHTS.]

No person other than the parents or relatives may assume the permanent care and custody of a child under 14 years of age unless authorized so to do by an order or decree of court. However, if a parent of a child who is being cared for by a relative dies, or if the parent is not or cannot fulfill parental duties with respect to the child, the relative may bring a petition under section 260.131. Except in proceedings for adoption, no parent may assign or otherwise transfer to another parental rights or duties with respect to the permanent care and custody of a child under 14 years of age. Any such transfer shall be void.

Sec. 3. Minnesota Statutes 1994, section 257.03, is amended to read:

257.03 [NOTICE TO COMMISSIONER OF HUMAN SERVICES.]

Any person not exempted from the requirement for licensure under chapter 245A receiving a child in the person's home:

(1) because of the death, injury, or illness of the child's parent if the person intends to keep the child for more than 30 days; or

(2) with intent to adopt the child or keep the child permanently, except a person receiving a child from an authorized agency, must notify the commissioner of human services in writing within 30 days after the child is received. Notice shall state the true name of the child; the child's last previous address; the name and address of the child's parents or legal guardian and of persons with whom the child last resided; and the names and addresses of persons who placed the child in the home, arranged for, or assisted with arrangements for the child's placement there; and such other facts about the child or the home as the commissioner may require. It is the duty of the commissioner or a designated agent to investigate the circumstances surrounding the child's entry into the home and to take appropriate action to assure for the child, the biological parents, and the foster parents the full protection of all laws of Minnesota relating to custody and foster care of children. Except as provided by section 317A.907, no person shall solicit, receive, or accept any payment, promise of payment, or compensation, for placing a child in foster care or for assisting to place a child in foster care. Nor shall any person pay or promise to pay or in any way compensate any person, for placing or for assisting to place a child in foster care.

Sec. 4. Minnesota Statutes 1994, section 260.015, subdivision 14, is amended to read:

Subd. 14. [CUSTODIAN.] "Custodian" means any person who is under a legal obligation to provide care and support for a minor or who is in fact providing care and support for a minor. This subdivision does not impose upon persons who are not otherwise legally responsible for providing a child with necessary food, clothing, shelter, education, or medical care a duty to provide that care. For an Indian child, custodian means any Indian person who has legal custody of an Indian child under tribal law or custom or under state law or to whom temporary physical care, custody, and control has been transferred by the parent of the child, as provided in section 257.351, subdivision 8.

Sec. 5. Minnesota Statutes 1994, section 260.165, subdivision 3, is amended to read:

Subd. 3. [NOTICE TO PARENT OR CUSTODIAN.] Whenever a peace officer takes a child into custody for shelter care or relative placement pursuant to subdivision 1; section 260.135, subdivision 5; or section 260.145, the officer shall give the parent or custodian of the child a list of names, addresses, and telephone numbers of social service agencies that offer child welfare services. If the parent or custodian was not present when the child was removed from the residence, the list shall be left with an adult on the premises or left in a conspicuous place on the premises if no adult is present. If the officer has reason to believe the parent or custodian is not able to read and understand English, the officer must provide a list that is written in the language of the parent or custodian. The list shall be prepared by the commissioner of human services. The commissioner shall prepare lists for each county and provide each county with copies of the list without charge. The list shall be reviewed annually by the commissioner and updated if it is no longer accurate. Neither the commissioner nor any peace officer or the officer's employer shall be liable to any person for mistakes or omissions in the list. The list does not constitute a promise that any agency listed will in fact assist the parent or custodian.


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Sec. 6. Minnesota Statutes 1994, section 260.171, subdivision 2, is amended to read:

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

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

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

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

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

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

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

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

Sec. 7. [257.035] [EMERGENCY.]

A relative who acts to protect a child in an emergency or when a parent dies is not a custodian as defined under section 260.015. If the relative is unable or unwilling to provide for the ongoing care, custody, and control of the child, the child may be considered a child in need of protection or services under section 260.015. The relative may report the death or emergency to the local social service agency. Upon receiving such a report, the local social service agency shall assess the circumstances and the needs of the child. The agency may place the child in foster care with a relative who meets the licensing standards under chapter 245A, and may pursue court action on behalf of the child."

Delete the title and insert:

"A bill for an act relating to children; changing requirements for holding children in custody; providing for care in emergencies; changing certain emergency licensing procedures; authorizing certain petitions and appearances; requiring certain notices; specifying review in certain cases; clarifying certain terms; amending Minnesota Statutes 1994, sections 257.02; 257.03; 260.015, subdivision 14; 260.165, subdivision 3; and 260.171, subdivision 2; Minnesota Statutes 1995 Supplement, section 245A.035, subdivision 2; proposing coding for new law in Minnesota Statutes, chapter 257."

The motion prevailed and the amendment was adopted.


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S. F. No. 2123, A bill for an act relating to children; clarifying the procedures peace officers must follow when deciding where to place a child placed on a health and welfare hold; requiring certain notices; clarifying the duties of related persons receiving a child on a 72-hour health and welfare hold; clarifying the reporting procedures and requirements for the placing officer to notify the county agency and the court; changing certain emergency licensing procedures; authorizing certain petitions and appearances; specifying review in certain cases; amending Minnesota Statutes 1994, sections 257.02; 257.03; 260.015, subdivision 14; 260.165, subdivision 3, and by adding a subdivision; 260.171, subdivision 2; 260.173, subdivision 2; Minnesota Statutes 1995 Supplement, section 245A.035, subdivision 2; proposing coding for new law in Minnesota Statutes, chapter 257.

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 134 yeas and 0 nays as follows:

Those who voted in the affirmative were:

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

S. F. No. 1885 was reported to the House.

Sykora moved to amend S. F. No. 1885 as follows:

Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 1995 Supplement, section 256.045, subdivision 3, is amended to read:

Subd. 3. [STATE AGENCY HEARINGS.] (a) State agency hearings are available for the following: (1) any person applying for, receiving or having received public assistance or a program of social services granted by the state agency or a county agency under sections 252.32, 256.031 to 256.036, and 256.72 to 256.879, chapters 256B, 256D, 256E, 261, or the federal Food Stamp Act whose application for assistance is denied, not acted upon with reasonable promptness, or whose assistance is suspended, reduced, terminated, or claimed to have been incorrectly paid; (2) any patient or relative aggrieved by an order of the commissioner under section 252.27; (3) a party aggrieved by a ruling of a prepaid health plan; or (4) any individual or facility determined by a lead agency to have maltreated a vulnerable adult under section 626.557 after they have exercised their right to administrative reconsideration under section 626.557; (5) any person whose claim for foster care payment pursuant to a placement of the child resulting from a child protection assessment under section 626.556 is denied or not acted upon with reasonable promptness, regardless of funding source; or (6) any person to whom a right of appeal pursuant to this section is given by other provision of law. Individuals and organizations specified in this section may contest the specified action, decision, or final disposition


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before the state agency by submitting a written request for a hearing to the state agency within 30 days after receiving written notice of the action, decision, or final disposition, or within 90 days of such written notice if the applicant, recipient, patient, or relative shows good cause why the request was not submitted within the 30-day time limit.

The hearing for an individual or facility under clause (4) is the only administrative appeal to the final lead agency disposition specifically, including a challenge to the accuracy and completeness of data under section 13.04.

For purposes of this section, bargaining unit grievance procedures are not an administrative appeal.

The scope of hearings involving claims to foster care payments under clause (5) shall be limited to the issue of whether the county is legally responsible for a child's placement under court order or voluntary placement agreement and, if so, the correct amount of foster care payment to be made on the child's behalf and shall not include review of the propriety of the county's child protection determination or child placement decision.

(b) Except for a prepaid health plan, a vendor of medical care as defined in section 256B.02, subdivision 7, or a vendor under contract with a county agency to provide social services under section 256E.08, subdivision 4, is not a party and may not request a hearing under this section, except if assisting a recipient as provided in subdivision 4.

(c) An applicant or recipient is not entitled to receive social services beyond the services included in the amended community social services plan developed under section 256E.081, subdivision 3, if the county agency has met the requirements in section 256E.081.

Sec. 2. Minnesota Statutes 1994, section 256.82, is amended by adding a subdivision to read:

Subd. 1a. [DEFINITIONS.] For purposes of this section, "treatment foster care program" means a foster care program that utilizes a family-based service delivery approach to provide individualized treatment for children, youth, and their families. The individualized treatment is delivered through an integrated constellation of services, with key interventions and supports provided by treatment foster parents who are trained, supervised, and supported by qualified program staff.

Sec. 3. Minnesota Statutes 1994, section 256.82, is amended by adding a subdivision to read:

Subd. 5. [PRIVATE AGENCY CONTRACTS.] Notwithstanding any other provisions of this section, rates for treatment foster care programs of licensed child-caring or child-placing agencies are a matter of contract between the licensed child-caring or child-placing agency and the local service agency.

Sec. 4. Minnesota Statutes 1994, section 256E.08, is amended by adding a subdivision to read:

Subd. 11. [USE OF COMMUNITY SOCIAL SERVICES FUNDS FOR FOSTER CARE.] If foster care services are described in a county's community social services plan, the county may use funds from its community social services fund to provide foster care benefits on behalf of children for whom the county has legal placement responsibility pursuant to court order or voluntary placement agreement.

Sec. 5. Minnesota Statutes 1994, section 257.071, subdivision 1a, is amended to read:

Subd. 1a. [PROTECTION OF HERITAGE OR BACKGROUND.] The authorized child-placing agency shall ensure that the child's best interests are met by giving due, not sole, consideration of the child's race or ethnic heritage in making a family foster care placement. The authorized child-placing agency shall place a child, released by court order or by voluntary release by the parent or parents, in a family foster home selected by following the preferences described in section 260.181, subdivision 3. Where there is not a family foster home of the same race or ethnic heritage available that can meet the needs of the child, the agency must place the child in a home of a foster family that is of a different racial or ethnic background. Placement of a child cannot be delayed or denied based solely on race.

In instances where a child from a family of color is placed in a family foster home of a different racial or ethnic background, the local social service agency shall review the placement after 30 days and each 30 days thereafter for the first six months to determine if there is another available placement that would better satisfy the requirements of this subdivision.


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Sec. 6. Minnesota Statutes 1994, section 257.071, is amended by adding a subdivision to read:

Subd. 9. [FAIR HEARING REVIEW.] Any person whose claim for foster care payment pursuant to the placement of a child resulting from a child protection assessment under section 626.556 is denied or not acted upon with reasonable promptness may appeal the decision under section 256.045, subdivision 3. The application and fair hearing procedures set forth in the administration of community social services rule, Minnesota Rules, parts 9550.0070 to 9550.0092, do not apply to foster care payment issues appealable under this subdivision.

Sec. 7. Minnesota Statutes 1994, section 257.071, is amended by adding a subdivision to read:

Subd. 10. [RULES; FOSTER CARE FAIR HEARINGS.] The commissioner shall review and, where necessary, revise foster care rules to ensure that the rules provide adequate guidance for implementation of foster care fair hearings, pursuant to section 256.045, subdivision 3, clause (5), that comply with all applicable federal requirements and the requirements of section 256.045.

Sec. 8. Minnesota Statutes 1994, section 257.072, subdivision 1, is amended to read:

Subdivision 1. [RECRUITMENT OF FOSTER FAMILIES.] Each authorized child-placing agency shall make special efforts to recruit a foster family from among the child's relatives, except as authorized in section 260.181, subdivision 3, and among families of the same racial or ethnic heritage. Each agency shall provide for diligent recruitment of potential foster families that reflect the ethnic and racial diversity of the children in the state for whom foster homes are needed. Special efforts include contacting and working with community organizations and religious organizations and may include contracting with these organizations, utilizing local media and other local resources, conducting outreach activities, and increasing the number of minority recruitment staff employed by the agency. The requirement of special efforts to locate relatives in this section is satisfied if the responsible child-placing agency has made appropriate efforts for six months following the child's placement in a residential facility and the court approves the agency's efforts pursuant to section 260.191, subdivision 3a. The agency may accept any gifts, grants, offers of services, and other contributions to use in making special recruitment efforts.

Sec. 9. Minnesota Statutes 1994, section 257.072, subdivision 5, is amended to read:

Subd. 5. [MINORITY PLACEMENTS.] Beginning December 1, 1989 1996, the commissioner shall provide to the Indian affairs council, the council on affairs of Spanish-speaking people, the council on Black Minnesotans, and the council on Asian-Pacific Minnesotans the semiannual reports annual report required under section 257.0725.

Sec. 10. Minnesota Statutes 1994, section 257.072, subdivision 8, is amended to read:

Subd. 8. [REPORTING REQUIREMENTS.] Each authorized child-placing agency shall provide to the commissioner of human services all data needed by the commissioner for the report required by section 257.0725. The agency shall provide the data within 60 15 days of the end of the six-month period for which the data is applicable.

Sec. 11. Minnesota Statutes 1994, section 257.0725, is amended to read:

257.0725 [SEMIANNUAL ANNUAL REPORT.]

The commissioner of human services shall publish a semiannual an annual report on children in out-of-home placement. The report shall include, by county and statewide, information on legal status, living arrangement, age, sex, race, accumulated length of time in placement, reason for most recent placement, race of family with whom placed, number of families from the child's own culture in the placement pool during the period for which data is provided, and other demographic information deemed appropriate on all children in out-of-home placement. The commissioner shall provide the required data for children who entered placement during the previous quarter and for children who are in placement at the end of the quarter. Out-of-home placement includes placement in any facility by an authorized child-placing agency. By December 1, 1989, and by December 1 of each successive year, the commissioner shall publish a report covering the first six months of the calendar year. By June 1, 1990, and by June 1 of each successive year, the commissioner shall publish a report covering the last six months of the calendar year.


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Sec. 12. Minnesota Statutes 1994, section 259.29, is amended to read:

259.29 [PROTECTION OF HERITAGE OR BACKGROUND.]

The policy of the state of Minnesota is to ensure that the best interests of the child are met by requiring due, not sole, consideration of the child's race or ethnic heritage in adoption placements. For purposes of intercountry adoptions, due consideration is deemed to have occurred if the appropriate authority in the child's country of birth has approved the placement of the child.

The authorized child-placing agency shall give preference, in the absence of good cause to the contrary, to placing the child with (a) a relative or relatives of the child, or, if that would be detrimental to the child or a relative is not available, (b) an important friend with whom the child has resided or had significant contact, or if that is not possible, (c) a family with the same racial or ethnic heritage as the child, or, if that is not feasible, (c) (d) a family of different racial or ethnic heritage from the child which is knowledgeable and appreciative of the child's racial or ethnic heritage. In implementing the order of preference, an authorized child-placing agency may disclose private or confidential data, as defined in section 13.02, to relatives of the child for the purpose of locating a suitable adoptive home. The agency shall disclose only data that is necessary to facilitate implementing the preference.

If the child's birth parent or parents explicitly request that the preference described in clause (a) or clauses (a) and, (b), or (c) not be followed, the authorized child-placing agency shall honor that request consistent with the best interests of the child.

If the child's birth parent or parents express a preference for placing the child in an adoptive home of the same or a similar religious background to that of the birth parent or parents, in following the preferences in clause (a) or, (b), or (c), the agency shall place the child with a family that also meets the birth parent's religious preference. Only if no family is available that is described in clause (a) or, (b), or (c) may the agency give preference to a family described in clause (c) (d) that meets the parent's religious preference.

Sec. 13. Minnesota Statutes 1994, section 259.67, subdivision 4, is amended to read:

Subd. 4. [ELIGIBILITY CONDITIONS.] (a) The placing agency shall determine the child's eligibility for adoption assistance under title IV-E of the Social Security Act. If the child does not qualify, the placing agency shall certify a child as eligible for state funded adoption assistance only if the following criteria are met:

(a) (1) Due to the child's characteristics or circumstances it would be difficult to provide the child and an adoptive home without adoption assistance.

(b)(1) (2)(i) A placement agency has made reasonable efforts to place the child for adoption without subsidy adoption assistance, but has been unsuccessful; or

(2) (ii) the child's licensed foster parents desire to adopt the child and it is determined by the placing agency that the adoption is in the best interest of the child.

(c) (3) The child has been a ward of the commissioner or a Minnesota-licensed child-placing agency.

(b) For purposes of this subdivision, the characteristics or circumstances that may be considered in determining whether a child is a child with special needs under United States Code, title 42, chapter 7, subchapter IV, part E, or meets the requirements of paragraph (a), clause (1), are the following:

(1) The child is a member of a sibling group to be placed as one unit in which at least one sibling is older than 15 months of age or is described in clause (2) or (3).

(2) The child has documented physical, mental, emotional, or behavioral disabilities.

(3) The child has a high risk of developing physical, mental, emotional, or behavioral disabilities.

(c) When a child's eligibility for adoption assistance is based upon the high risk of developing physical, mental, emotional, or behavioral disabilities, payments shall not be made under the adoption assistance agreement unless and until the potential disability manifests itself as documented by an appropriate health care professional.


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Sec. 14. Minnesota Statutes 1994, section 259.67, subdivision 6, is amended to read:

Subd. 6. [RIGHT OF APPEAL.] (a) The adoptive parents have the right to appeal to the commissioner pursuant to section 256.045, when the commissioner denies, discontinues, or modifies the agreement.

(b) Adoptive parents who believe that their adopted child was incorrectly denied adoption assistance, or who did not seek adoption assistance on the child's behalf because of being provided with inaccurate or insufficient information about the child or the adoption assistance program, may request a hearing under section 256.045. Notwithstanding subdivision 2, the purpose of the hearing shall be to determine whether, under standards established by the federal Department of Health and Human Services, the circumstances surrounding the child's adoption warrant making an adoption assistance agreement on behalf of the child after the final decree of adoption has been issued. The commissioner shall enter into an adoption assistance agreement on the child's behalf if it is determined that the child was eligible for adoption assistance under United States Code, title 42, chapter 7, subchapter IV, part E, sections 670 to 679a, at the time of the adoption and at the time the request for a hearing was submitted but, because of extenuating circumstances, did not receive adoption assistance. An adoption assistance agreement made under this paragraph shall be effective the date the request for a hearing was received by the commissioner or the local agency.

Sec. 15. Minnesota Statutes 1994, section 259.77, is amended to read:

259.77 [FAMILY RECRUITMENT.]

Each authorized child-placing agency shall make special efforts to recruit an adoptive family from among the child's relatives, except as authorized in section 259.57, subdivision 2, and among families of the same racial or ethnic heritage. Each agency shall provide for the diligent recruitment of potential adoptive families that reflect the ethnic and racial diversity of children in the state for whom adoptive homes are needed. Special efforts include contacting and working with community organizations and religious organizations and may include contracting with these organizations, utilizing local media and other local resources, and conducting outreach activities. The requirement of special efforts to locate relatives in this section is satisfied if the efforts have continued for six months after the child becomes available for adoption or if special efforts have been satisfied and approved by the court pursuant to section 260.191, subdivision 3a. The agency may accept any gifts, grants, offers of services, and other contributions to use in making special recruitment efforts.

Sec. 16. Minnesota Statutes 1994, section 260.015, is amended by adding a subdivision to read:

Subd. 29. [EGREGIOUS HARM.] "Egregious harm" means the infliction of bodily harm to a child or neglect of a child which demonstrates a grossly inadequate ability to provide minimally adequate parental care. The egregious harm need not have occurred in the state or in the county where a termination of parental rights action is otherwise properly venued. Egregious harm includes, but is not limited to:

(1) conduct towards a child that constitutes a violation of section 609.185 to 609.21, or any other similar law of the United States or any other state;

(2) the infliction of "great bodily harm" to a child, as defined in section 609.02, subdivision 8;

(3) conduct towards a child that constitutes felony malicious punishment of a child under section 609.377; or

(4) conduct towards a child that constitutes unreasonable restraint of a child under section 609.255, subdivision 3.

Sec. 17. Minnesota Statutes 1994, section 260.181, subdivision 3, is amended to read:

Subd. 3. [PROTECTION OF HERITAGE OR BACKGROUND.] The policy of the state is to ensure that the best interests of children are met by requiring due, not sole, consideration of the child's race or ethnic heritage in foster care placements.

The court, in transferring legal custody of any child or appointing a guardian for the child under the laws relating to juvenile courts, shall place the child, in the following order of preference, in the absence of good cause to the contrary, in the legal custody or guardianship of an individual who (a) is the child's relative related to the child by blood, marriage, or adoption, or if that would be detrimental to the child or a relative is not available, who (b) is an important friend with whom the child has resided or had significant contact, or if that is not possible, who (c) is of the same racial or ethnic heritage as the child, or if that is not possible, who (c) (d) is knowledgeable and appreciative


JOURNAL OF THE HOUSE - 100th Day - Top of Page 8409

of the child's racial or ethnic heritage. The court may require the county welfare agency to continue efforts to find a guardian of the child's racial or ethnic heritage when such a guardian is not immediately available. For purposes of this subdivision, "relative" includes members of a child's extended family and important friends with whom the child has resided or had significant contact.

If the child's birth parent or parents explicitly request that the preference described in clause (a) or in clauses (a) and, (b), or (c) not be followed, the court shall honor that request if it is consistent with the best interests of the child.

If the child's birth parent or parents express a preference for placing the child in a foster or adoptive home of the same or a similar religious background to that of the birth parent or parents, in following the preferences in clause (a) or, (b), or (c), the court shall order placement of the child with an individual who meets the birth parent's religious preference. Only if no individual is available who is described in clause (a) or, (b), or (c) may the court give preference to an individual described in clause (c) (d) who meets the parent's religious preference.

Sec. 18. Minnesota Statutes 1995 Supplement, section 260.221, subdivision 1, is amended to read:

Subdivision 1. [VOLUNTARY AND INVOLUNTARY.] The juvenile court may upon petition, terminate all rights of a parent to a child in the following cases:

(a) With the written consent of a parent who for good cause desires to terminate parental rights; or

(b) If it finds that one or more of the following conditions exist:

(1) That the parent has abandoned the child. Abandonment is presumed when:

(i) the parent has had no contact with the child on a regular basis and no demonstrated, consistent interest in the child's well-being for six months; and

(ii) the social service agency has made reasonable efforts to facilitate contact, unless the parent establishes that an extreme financial or physical hardship or treatment for mental disability or chemical dependency or other good cause prevented the parent from making contact with the child. This presumption does not apply to children whose custody has been determined under chapter 257 or 518. The court is not prohibited from finding abandonment in the absence of this presumption; or

(2) That the parent has substantially, continuously, or repeatedly refused or neglected to comply with the duties imposed upon that parent by the parent and child relationship, including but not limited to providing the child with necessary food, clothing, shelter, education, and other care and control necessary for the child's physical, mental, or emotional health and development, if the parent is physically and financially able, and reasonable efforts by the social service agency have failed to correct the conditions that formed the basis of the petition; or

(3) That a parent has been ordered to contribute to the support of the child or financially aid in the child's birth and has continuously failed to do so without good cause. This clause shall not be construed to state a grounds for termination of parental rights of a noncustodial parent if that parent has not been ordered to or cannot financially contribute to the support of the child or aid in the child's birth; or

(4) That a parent is palpably unfit to be a party to the parent and child relationship because of a consistent pattern of specific conduct before the child or of specific conditions directly relating to the parent and child relationship either of which are determined by the court to be of a duration or nature that renders the parent unable, for the reasonably foreseeable future, to care appropriately for the ongoing physical, mental, or emotional needs of the child. It is presumed that a parent is palpably unfit to be a party to the parent and child relationship upon a showing that:

(i) the child was adjudicated in need of protection or services due to circumstances described in section 260.015, subdivision 2a, clause (1), (2), (3), (5), or (8); and

(ii) within the three-year period immediately prior to that adjudication, the parent's parental rights to one or more other children were involuntarily terminated under clause (1), (2), (4), or (7), or under clause (5) if the child was initially determined to be in need of protection or services due to circumstances described in section 260.015, subdivision 2a, clause (1), (2), (3), (5), or (8); or


JOURNAL OF THE HOUSE - 100th Day - Top of Page 8410

(5) That following upon a determination of neglect or dependency, or of a child's need for protection or services, reasonable efforts, under the direction of the court, have failed to correct the conditions leading to the determination. It is presumed that reasonable efforts under this clause have failed upon a showing that:

(i) a child has resided out of the parental home under court order for more than one year following an adjudication of dependency, neglect, need for protection or services under section 260.015, subdivision 2a, clause (1), (2), (3), (6), (8), or (9), or neglected and in foster care, and an order for disposition under section 260.191, including adoption of the case plan required by section 257.071;

(ii) conditions leading to the determination will not be corrected within the reasonably foreseeable future. It is presumed that conditions leading to a child's out-of-home placement will not be corrected in the reasonably foreseeable future upon a showing that the parent or parents have not substantially complied with the court's orders and a reasonable case plan, and the conditions which led to the out-of-home placement have not been corrected; and

(iii) reasonable efforts have been made by the social service agency to rehabilitate the parent and reunite the family.

This clause does not prohibit the termination of parental rights prior to one year after a child has been placed out of the home.

It is also presumed that reasonable efforts have failed under this clause upon a showing that:

(i) the parent has been diagnosed as chemically dependent by a professional certified to make the diagnosis;

(ii) the parent has been required by a case plan to participate in a chemical dependency treatment program;

(iii) the treatment programs offered to the parent were culturally, linguistically, and clinically appropriate;

(iv) the parent has either failed two or more times to successfully complete a treatment program or has refused at two or more separate meetings with a caseworker to participate in a treatment program; and

(v) the parent continues to abuse chemicals.

Provided, that this presumption applies only to parents required by a case plan to participate in a chemical dependency treatment program on or after July 1, 1990; or

(6) That the parent has been convicted of causing the death of another of the parent's children a child has experienced egregious harm in the parent's care which is of a nature, duration, or chronicity that indicates a lack of regard for the child's well-being, such that a reasonable person would believe it contrary to the best interest of the child or of any child to be in the parent's care; or

(7) That in the case of a child born to a mother who was not married to the child's father when the child was conceived nor when the child was born the person is not entitled to notice of an adoption hearing under section 259.49 and either the person has not filed a notice of intent to retain parental rights under section 259.51 or that the notice has been successfully challenged; or

(8) That the child is neglected and in foster care.

In an action involving an American Indian child, sections 257.35 to 257.3579 and the Indian Child Welfare Act, United States Code, title 25, sections 1901 to 1923, control to the extent that the provisions of this section are inconsistent with those laws.

Sec. 19. Minnesota Statutes 1994, section 260.221, is amended by adding a subdivision to read:

Subd. 6. [NO REQUIREMENT FOR REASONABLE EFFORTS.] Upon filing a termination of parental rights petition and notice to the parties, the social service agency responsible for making reasonable efforts under sections 260.011 and 260.012 may discontinue the provision of services that are aimed at returning the child to the parent. The discontinuation of these reunification services shall be approved by the court, unless the parent establishes a substantial likelihood that the provision of additional services would likely correct the conditions which form the basis for the petition to terminate parental rights within six months of the date the petition is filed.


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Sec. 20. [EFFECTIVE DATE.]

Sections 1, 4 to 11, and 13 to 15, are effective the day following final enactment."

Delete the title and insert:

"A bill for an act relating to human services; modifying foster care payment and placement; clarifying adoption assistance; amending Minnesota Statutes 1994, sections 256.82, by adding subdivisions; 256E.08, by adding a subdivision; 257.071, subdivision 1a, and by adding subdivisions; 257.072, subdivisions 1, 5, and 8; 257.0725; 259.29; 259.67, subdivisions 4 and 6; 259.77; 260.015, by adding a subdivision; 260.181, subdivision 3; and 260.221, by adding a subdivision; Minnesota Statutes 1995 Supplement, sections 256.045, subdivision 3; and 260.221, subdivision 1."

The motion prevailed and the amendment was adopted.

Skoglund moved to amend S. F. No. 1885, as amended, as follows:

Page 10, line 20, delete "great" and insert "substantial"

Page 10, line 23, delete "or"

Page 10, line 25, delete the period and insert ";

(5) conduct towards a child that constitutes felony neglect or endangerment of a child under section 609.378;

(6) conduct towards a child that constitutes assault under sections 609.221, 609.222, or 609.223;

(8) conduct towards a child that constitutes solicitation, inducement or promotion of prostitution under section 609.322;

(9) conduct towards a child that constitutes receiving profit derived from prostitution under section 609.323;

(10) conduct towards a child that constitutes criminal sexual conduct under sections 609.342 to 609.3451;

(11) conduct towards a child that constitutes incest under section 609.365;

(12) conduct towards a child that constitutes female genital mutilation under section 609.2245;

(13) conduct towards a child that constitutes indecent exposure under section 617.23; or

(14) conduct towards a child that constitutes aiding suicide or aiding attempted suicide under section 609.215.

"Egregious harm" also means causing the death of a child's parent under 609.185 to 609.195 and 609.20 to 609.21."

A roll call was requested and properly seconded.

Rukavina moved to amend the Skoglund amendment to S. F. No. 1885, as amended, as follows:

Page 2, line 3, delete "to 609.21"

The motion prevailed and the amendment to the amendment was adopted.


JOURNAL OF THE HOUSE - 100th Day - Top of Page 8412

Wejcman moved to amend the Skoglund amendment, as amended, to S. F. No. 1885, as amended, as follows:

Page 2, delete lines 2 and 3

The motion prevailed and the amendment to the amendment was adopted.

The question recurred on the Skoglund amendment, as amended, and the roll was called. There were 133 yeas and 0 nays as follows:

Those who voted in the affirmative were:

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

S. F. No. 1885, A bill for an act relating to human services; clarifying foster care payment and placement; clarifying adoption assistance; defining egregious harm in the juvenile code; amending the parental rights termination statute; amending Minnesota Statutes 1994, sections 256E.08, by adding a subdivision; 257.071, subdivision 1a, and by adding subdivisions; 257.072, subdivisions 1, 5, and 8; 257.0725; 259.67, subdivisions 4 and 6; 259.77; 260.015, by adding a subdivision; and 260.181, subdivision 3; Minnesota Statutes 1995 Supplement, sections 256.045, subdivision 3; and 260.221, subdivision 1; Laws 1995, chapter 207, article 1, section 2, subdivision 4.

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

The question was taken on the passage of the bill and the roll was called. There were 132 yeas and 0 nays as follows:

Those who voted in the affirmative were:

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

JOURNAL OF THE HOUSE - 100th Day - Top of Page 8413
Dempsey Kalis Mulder Schumacher Sp.Anderson,I Dorn Kelley Munger Seagren Entenza Kelso Murphy Skoglund Erhardt Kinkel Ness Smith
The bill was passed, as amended, and its title agreed to.

REPORT FROM THE COMMITTEE ON RULES AND

LEGISLATIVE ADMINISTRATION

Carruthers, from the Committee on Rules and Legislative Administration, pursuant to rule 1.09, designated the following bills as Special Orders to be acted upon today:

S. F. No. 315; H. F. Nos. 2101 and 220; and S. F. Nos. 840, 2267, 1086 and 2255.

SPECIAL ORDERS, Continued

S. F. No. 315 was reported to the House.

Greiling; Osthoff; Jefferson; Pawlenty; McCollum; Boudreau; Anderson, B.; Commers Pelowski and Solberg moved to amend S. F. No. 315, the unofficial engrossment, as follows:

Page 23, line 35, reinstate the stricken language

Page 24, lines 5, 7, 8, and 9, reinstate the stricken language

Page 24, lines 10 and 11, delete the new language

Page 24, line 17, after "spends" insert "less than $300 and"

Page 24, line 19, delete "it" and insert "the campaign material"

Page 24, delete the sentence beginning on line 19

Page 24, after line 34, insert:

"(h) It is a defense to a prosecution for failure to include a disclaimer required by this section for the defendant to prove by a preponderance of the evidence that the defendant reasonably and in good faith believed that compliance with the disclaimer requirement could expose the defendant to threats of, or actual, reprisal, loss of employment, or physical coercion."

The motion prevailed and the amendment was adopted.

The Speaker called Trimble to the Chair.

Greiling moved to amend S. F. No. 315, the unofficial engrossment, as amended, as follows:

Page 24, line 18, delete "ten" and insert "30"

The motion prevailed and the amendment was adopted.


JOURNAL OF THE HOUSE - 100th Day - Top of Page 8414

McCollum, Abrams, Jefferson, Commers, Pawlenty and Jennings moved to amend S. F. No. 315, the unofficial engrossment, as amended, as follows:

Page 24, after line 34, insert:

"Sec. 48. Minnesota Statutes 1994, section 211B.06, subdivision 1, is amended to read:

Subdivision 1. [GROSS MISDEMEANOR.] A person is guilty of a gross misdemeanor who intentionally participates in the preparation, dissemination, or broadcast of paid political advertising or campaign material with respect to the personal or political character or acts of a candidate, whether or not defamatory, or with respect to the effect of a ballot question, that the person knows or has reason to believe is false and that is designed or tends to elect, injure, or defeat a candidate for nomination or election to a public office or to promote or defeat a ballot question.

A person is guilty of a misdemeanor who intentionally participates in the drafting of a letter to the editor with respect to the personal or political character or acts of a candidate, if defamatory, or with respect to the effect of a ballot question, that the person knows is false and which is designed or tends to elect, injure, or defeat any candidate for nomination or election to a public office or to promote or defeat a ballot question."

Renumber the sections in sequence and correct internal references

Amend the title accordingly

The motion prevailed and the amendment was adopted.

Osskopp moved to amend S. F. No. 315, the unofficial engrossment, as amended, as follows:

Pages 15 and 16, delete section 32

Renumber the sections in sequence and correct internal references

Amend the title accordingly

A roll call was requested and properly seconded.

The question was taken on the Osskopp amendment and the roll was called. There were 98 yeas and 30 nays as follows:

Those who voted in the affirmative were:

Abrams       Farrell      Krinkie      Onnen        Stanek
Anderson, B. Finseth      Larsen       Opatz        Sviggum
Bettermann   Frerichs     Leighton     Osskopp      Swenson, D.
Boudreau     Girard       Leppik       Ostrom       Swenson, H.
Bradley      Goodno       Lieder       Ozment       Sykora
Broecker     Gunther      Lindner      Paulsen      Tompkins
Carlson, L.  Haas         Luther       Pawlenty     Tuma
Carlson, S.  Hackbarth    Lynch        Pellow       Van Dellen
Carruthers   Harder       Macklin      Pelowski     Van Engen
Commers      Holsten      Mahon        Peterson     Vickerman
Cooper       Jennings     Mares        Pugh         Wagenius
Daggett      Johnson, A.  Marko        Rest         Warkentin
Dauner       Johnson, V.  McCollum     Rhodes       Weaver
Davids       Kelley       McElroy      Rice         Wenzel
Dehler       Kelso        McGuire      Rostberg     Winter
Delmont      Kinkel       Molnau       Schumacher   Wolf
Dempsey      Knight       Mulder       Seagren      Worke
Dorn         Knoblach     Ness         Skoglund     Workman 
Entenza      Koppendrayer Olson, E.    Smith        
Erhardt      Kraus        Olson, M.    Solberg      
Those who voted in the negative were:

Anderson, R. Greiling     Kalis        Orenstein    Wejcman
Bertram      Hasskamp     Long         Osthoff      Sp.Anderson,I
Bishop       Hausman      Lourey       Otremba      
Brown        Huntley      Mariani      Rukavina     
Clark        Jaros        Milbert      Tomassoni    
Dawkins      Jefferson    Munger       Trimble      
Garcia       Kahn         Murphy       Tunheim      
The motion prevailed and the amendment was adopted.


JOURNAL OF THE HOUSE - 100th Day - Top of Page 8415

Sviggum moved to amend S. F. No. 315, the unofficial engrossment, as amended, as follows:

Page 16, after line 19, insert:

"Sec. 34. Minnesota Statutes 1994, section 204B.22, is amended by adding a subdivision to read:

Subd. 4. [TOWNS WITH FEWER THAN 500 VOTERS.] No more than three election judges shall be appointed for any town in which fewer than 500 votes were cast at the last similar election."

Renumber the sections in sequence and correct internal references

Amend the title accordingly

The motion prevailed and the amendment was adopted.

S. F. No. 315, A bill for an act relating to elections; changing and clarifying provisions of the Minnesota election law; amending Minnesota Statutes 1994, sections 201.071, subdivision 1; 203B.01, by adding a subdivision; 203B.11, subdivision 1; 204B.06, by adding a subdivision; 204B.09, by adding a subdivision; 204B.15; 204B.27, by adding a subdivision; 204B.31; 204B.32, subdivision 1; 204B.36, subdivision 2; 204B.45, subdivision 1; 204B.46; 204C.08, by adding a subdivision; 204C.31, subdivision 2; 206.62; 206.90, subdivisions 4 and 6; 207A.03, subdivision 2; and 211A.02, subdivision 2; repealing Minnesota Statutes 1994, section 204D.15, subdivision 2.

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 124 yeas and 8 nays as follows:

Those who voted in the affirmative were:

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

Anderson, B. Hackbarth    Krinkie      Onnen        
Anderson, R. Knight       Olson, M.    Workman      
The bill was passed, as amended, and its title agreed to.


JOURNAL OF THE HOUSE - 100th Day - Top of Page 8416

CALL OF THE HOUSE

On the motion of Carruthers and on the demand of 10 members, a call of the House was ordered. The following members answered to their names:

Abrams       Frerichs     Knoblach     Olson, E.    Solberg
Anderson, B. Garcia       Koppendrayer Olson, M.    Stanek
Anderson, R. Girard       Kraus        Onnen        Sviggum
Bettermann   Goodno       Krinkie      Opatz        Swenson, H.
Bishop       Greenfield   Larsen       Orenstein    Sykora
Boudreau     Greiling     Leighton     Orfield      Tomassoni
Bradley      Gunther      Leppik       Osskopp      Tompkins
Broecker     Haas         Lieder       Osthoff      Trimble
Brown        Hackbarth    Lindner      Ostrom       Tuma
Carlson, L.  Harder       Long         Otremba      Tunheim
Carlson, S.  Hasskamp     Lourey       Ozment       Van Dellen
Carruthers   Hausman      Luther       Paulsen      Van Engen
Clark        Holsten      Lynch        Pawlenty     Vickerman
Commers      Huntley      Macklin      Pellow       Wagenius
Cooper       Jaros        Mares        Pelowski     Warkentin
Daggett      Jefferson    Mariani      Perlt        Weaver
Dauner       Jennings     Marko        Peterson     Wejcman
Davids       Johnson, A.  McCollum     Pugh         Wenzel
Dawkins      Johnson, R.  McElroy      Rest         Winter
Dehler       Johnson, V.  McGuire      Rhodes       Wolf
Delmont      Kahn         Milbert      Rostberg     Worke
Dempsey      Kalis        Molnau       Rukavina     Workman
Dorn         Kelley       Mulder       Schumacher   Sp.Anderson,I
Entenza      Kelso        Munger       Seagren      
Erhardt      Kinkel       Murphy       Skoglund     
Finseth      Knight       Ness         Smith        
Carruthers moved that further proceedings of the roll call be suspended and that the Sergeant at Arms be instructed to bring in the absentees. The motion prevailed and it was so ordered.

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

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 68 yeas and 66 nays as follows:

Those who voted in the affirmative were:

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

Abrams       Finseth      Krinkie      Otremba      Tompkins
Anderson, B. Frerichs     Larsen       Ozment       Tuma
Bettermann   Girard       Leppik       Paulsen      Van Dellen
Bishop       Goodno       Lindner      Pawlenty     Van Engen
Boudreau     Gunther      Lynch        Pellow       Vickerman
Bradley      Haas         Macklin      Rhodes       Warkentin
Broecker     Hackbarth    Mares        Rostberg     Weaver
Carlson, S.  Harder       McElroy      Seagren      Wolf
Commers      Holsten      Molnau       Smith        Worke
Daggett      Johnson, V.  Mulder       Stanek       Workman 
Davids       Knight       Ness         Sviggum      
Dehler       Knoblach     Olson, M.    Swenson, D.  
Dempsey      Koppendrayer Onnen        Swenson, H.  
Erhardt      Kraus        Osskopp      Sykora       
The bill was passed and its title agreed to.


JOURNAL OF THE HOUSE - 100th Day - Top of Page 8417

H. F. No. 220 was reported to the House.

Rukavina offered an amendment to H. F. No. 220, the first engrossment.

POINT OF ORDER

Abrams raised a point of order pursuant to rule 3.09 that the Rukavina amendment was not in order. Speaker pro tempore Trimble ruled the point of order well taken and the amendment out of order.

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

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 68 yeas and 66 nays as follows:

Those who voted in the affirmative were:

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

Abrams       Finseth      Krinkie      Otremba      Tompkins
Anderson, B. Frerichs     Larsen       Ozment       Tuma
Bettermann   Girard       Leppik       Paulsen      Van Dellen
Bishop       Goodno       Lindner      Pawlenty     Van Engen
Boudreau     Gunther      Lynch        Pellow       Vickerman
Bradley      Haas         Macklin      Rhodes       Warkentin
Broecker     Hackbarth    Mares        Rostberg     Weaver
Carlson, S.  Harder       McElroy      Seagren      Wolf
Commers      Holsten      Molnau       Smith        Worke
Daggett      Johnson, V.  Mulder       Stanek       Workman 
Davids       Knight       Ness         Sviggum      
Dehler       Knoblach     Olson, M.    Swenson, D.  
Dempsey      Koppendrayer Onnen        Swenson, H.  
Erhardt      Kraus        Osskopp      Sykora       
The bill was passed and its title agreed to.

The Speaker resumed the Chair.

S. F. No. 840 was reported to the House.

Jennings, Long, Pawlenty, Farrell and Abrams moved to amend S. F. No. 840 as follows:

Page 1, after line 7, insert:

"Section 1. Minnesota Statutes 1994, section 10A.20, subdivision 3, is amended to read:

Subd. 3. [CONTENTS OF REPORT.] Each report under this section shall disclose:

(a) The amount of liquid assets on hand at the beginning of the reporting period;


JOURNAL OF THE HOUSE - 100th Day - Top of Page 8418

(b) The name, address and employer, or occupation if self-employed, of each individual, political committee or political fund who within the year has made one or more transfers or donations in kind to the political committee or political fund, including the purchase of tickets for all fund raising efforts, which in aggregate exceed $100 for legislative or statewide candidates or ballot questions, together with the amount and date of each transfer or donation in kind, and the aggregate amount of transfers and donations in kind within the year from each source so disclosed. A donation in kind shall be disclosed at its fair market value. An approved expenditure is listed as a donation in kind. A donation in kind is considered consumed in the reporting period in which it is received. The names of contributors shall be listed in alphabetical order;

(c) The sum of contributions to the political committee or political fund during the reporting period;

(d) Each loan made or received by the political committee or political fund within the year in aggregate in excess of $100, continuously reported until repaid or forgiven, together with the name, address, occupation and the principal place of business, if any, of the lender and any endorser and the date and amount of the loan. If any loan made to the principal campaign committee of a candidate is forgiven at any time or repaid by any entity other than that principal campaign committee, it shall be reported as a contribution for the year in which the loan was made;

(e) Each receipt in excess of $100 not otherwise listed under clauses (b) to (d);

(f) The sum of all receipts of the political committee or political fund during the reporting period;

(g) The name and address of each individual or association to whom aggregate expenditures, including approved expenditures, have been made by or on behalf of the political committee or political fund within the year in excess of $100, together with the amount, date and purpose of each expenditure and the name and address of, and office sought by, each candidate on whose behalf the expenditure was made, identification of the ballot question which the expenditure is intended to promote or defeat, and in the case of independent expenditures made in opposition to a candidate, the name, address and office sought for each such candidate;

(h) The sum of all expenditures made by or on behalf of the political committee or political fund during the reporting period;

(i) The amount and nature of any advance of credit incurred by the political committee or political fund, continuously reported until paid or forgiven. If any advance of credit incurred by the principal campaign committee of a candidate is forgiven at any time by the creditor or paid by any entity other than that principal campaign committee, it shall be reported as a donation in kind for the year in which the advance of credit was incurred;

(j) The name and address of each political committee, political fund, or principal campaign committee to which aggregate transfers in excess of $100 have been made within the year, together with the amount and date of each transfer;

(k) The sum of all transfers made by the political committee, political fund, or principal campaign committee during the reporting period;

(l) Except for contributions to a candidate or committee for a candidate for office in a municipality as defined in section 471.345, subdivision 1, the name and address of each individual or association to whom aggregate noncampaign disbursements in excess of $100 have been made within the year by or on behalf of a principal campaign committee, political committee, or political fund, together with the amount, date, and purpose of each noncampaign disbursement;

(m) The sum of all noncampaign disbursements made within the year by or on behalf of a principal campaign committee, political committee, or political fund; and

(n) The name and address of a nonprofit corporation that provides administrative assistance to a political committee or political fund as authorized by section 211B.155, together with the type of administrative assistance provided and the aggregate fair market value of each type of assistance provided to the political committee or political fund during the reporting period; and

(o) A report filed under subdivision 2, clause (b), by a political committee or political fund that is subject to subdivision 14, must contain the information required by subdivision 14, if the political committee or political fund has solicited and caused others to make aggregate contributions greater than $5,000 between January 1 of the general election year and the end of the reporting period. This disclosure requirement is in addition to the report required by subdivision 14."


JOURNAL OF THE HOUSE - 100th Day - Top of Page 8419

Page 2, after line 31, insert:

"Sec. 3. Minnesota Statutes 1994, section 211B.15, subdivision 1, is amended to read:

Subdivision 1. [DEFINITIONS.] For purposes of this section, "corporation" means:

(1) a corporation organized for profit that does business in this state; or

(2) a nonprofit corporation that carries out activities in this state; or

(3) a limited liability company formed under chapter 322B, or under similar laws of another state, that does business in this state.

Sec. 4. [211B.155] [NONPROFIT CORPORATION POLITICAL CONTRIBUTION LIMITATION.]

A nonprofit corporation may provide administrative assistance funded by membership dues to one political committee or political fund associated with the nonprofit corporation if:

(a) the assistance is limited annually to the lesser of $10,000 or ten percent of the expenditures of the political committee or fund; and

(b) the administrative assistance is limited to accounting, clerical or legal services, bank charges, utilities, office space and supplies.

Sec. 5. [REPEALER.] Minnesota Statutes, section 211B.15, subdivision 15, is repealed."

Renumber the sections in sequence and correct internal references

Amend the title accordingly

The motion prevailed and the amendment was adopted.

Sviggum moved to amend S. F. No. 840, as amended, as follows:

Page 1, after line 7, insert:

"Section 1. Minnesota Statutes 1994, section 10A.12, subdivision 5, is amended to read:

Subd. 5. Notwithstanding subdivision 1, any association may, if not prohibited by other law, deposit in its political fund money derived from dues or membership fees, but only to the extent such use is voluntary by its members and agreed to on an individual member basis. Pursuant to section 10A.20, the treasurer of the fund shall disclose the name of any member whose dues, membership fees and contributions deposited in the political fund together exceed $100 in any one year."

Renumber the sections in sequence and correct internal references

Amend the title accordingly

A roll call was requested and properly seconded.

The question was taken on the Sviggum amendment and the roll was called. There were 61 yeas and 73 nays as follows:

Those who voted in the affirmative were:

Abrams       Erhardt      Koppendrayer Olson, M.    Tuma
Anderson, B. Finseth      Kraus        Onnen        Van Dellen
Bettermann   Frerichs     Krinkie      Osskopp      Van Engen
Bishop       Girard       Larsen       Paulsen      Vickerman
Boudreau     Goodno       Leppik       Pawlenty     Warkentin
Bradley      Gunther      Lindner      Pellow       Weaver
Broecker     Haas         Lynch        Rostberg     Wolf
Carlson, S.  Hackbarth    Macklin      Seagren      Worke

JOURNAL OF THE HOUSE - 100th Day - Top of Page 8420
Commers Harder Mares Sviggum Workman Daggett Holsten McElroy Swenson, D. Davids Johnson, V. Molnau Swenson, H. Dehler Knight Mulder Sykora Dempsey Knoblach Ness Tompkins
Those who voted in the negative were:

Anderson, R. Greenfield   Leighton     Orenstein    Schumacher
Bakk         Greiling     Lieder       Orfield      Skoglund
Bertram      Hasskamp     Long         Osthoff      Smith
Brown        Hausman      Lourey       Ostrom       Solberg
Carlson, L.  Huntley      Luther       Otremba      Stanek
Carruthers   Jaros        Mahon        Ozment       Tomassoni
Clark        Jefferson    Mariani      Pelowski     Trimble
Cooper       Jennings     Marko        Perlt        Tunheim
Dauner       Johnson, A.  McCollum     Peterson     Wagenius
Dawkins      Johnson, R.  McGuire      Pugh         Wejcman
Delmont      Kahn         Milbert      Rest         Wenzel
Dorn         Kalis        Munger       Rhodes       Winter
Entenza      Kelley       Murphy       Rice         Sp.Anderson,I
Farrell      Kelso        Olson, E.    Rukavina     
Garcia       Kinkel       Opatz        Sarna        
The motion did not prevail and the amendment was not adopted.

Warkentin was excused for the remainder of today's session.

Sviggum moved to amend S. F. No. 840, as amended, as follows:

Page 1, after line 7, insert:

"Section 1. Minnesota Statutes 1994, section 10A.02, subdivision 14, is amended to read:

Subd. 14. Notwithstanding the provisions of section 8.15, The board must not be assessed the cost of is exempt from the requirements of section 8.06 and may hire legal services rendered to it by independent from the attorney general's office."

Renumber the sections in sequence and correct internal references

Amend the title accordingly

A roll call was requested and properly seconded.

The question was taken on the Sviggum amendment and the roll was called. There were 64 yeas and 69 nays as follows:

Those who voted in the affirmative were:

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

JOURNAL OF THE HOUSE - 100th Day - Top of Page 8421
Those who voted in the negative were:

Anderson, R. Garcia       Kelso        Murphy       Rukavina
Bakk         Greenfield   Kinkel       Olson, E.    Sarna
Bertram      Greiling     Leighton     Opatz        Schumacher
Brown        Hasskamp     Lieder       Orenstein    Skoglund
Carlson, L.  Hausman      Long         Orfield      Solberg
Carruthers   Huntley      Lourey       Osthoff      Tomassoni
Clark        Jaros        Luther       Ostrom       Trimble
Cooper       Jefferson    Mahon        Otremba      Tunheim
Dauner       Jennings     Mariani      Pelowski     Wagenius
Dawkins      Johnson, A.  Marko        Perlt        Wejcman
Delmont      Johnson, R.  McCollum     Peterson     Wenzel
Dorn         Kahn         McGuire      Pugh         Winter
Entenza      Kalis        Milbert      Rest         Sp.Anderson,I
Farrell      Kelley       Munger       Rice         
The motion did not prevail and the amendment was not adopted.

Paulsen offered an amendment to S. F. No. 840, as amended.

POINT OF ORDER

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

Paulsen appealed the decision of the Chair.

A roll call was requested and properly seconded.

The vote was taken on the question "Shall the decision of the Speaker stand as the judgment of the House?" and the roll was called.

Carruthers moved that those not voting be excused from voting. The motion prevailed.

There were 68 yeas and 64 nays as follows:

Those who voted in the affirmative were:

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      Rest         Sp.Anderson,I
Entenza      Kalis        Munger       Rice         
Farrell      Kelley       Murphy       Rukavina     
Those who voted in the negative were:

Abrams       Erhardt      Koppendrayer Olson, M.    Swenson, D.
Anderson, B. Finseth      Kraus        Onnen        Swenson, H.
Bettermann   Frerichs     Krinkie      Osskopp      Sykora
Bishop       Girard       Larsen       Ozment       Tompkins
Boudreau     Goodno       Leppik       Paulsen      Tuma
Bradley      Gunther      Lindner      Pawlenty     Van Dellen
Broecker     Haas         Lynch        Pellow       Van Engen
Carlson, S.  Hackbarth    Macklin      Rhodes       Vickerman
Commers      Harder       Mares        Rostberg     Weaver
Daggett      Holsten      McElroy      Seagren      Wolf
Davids       Johnson, V.  Molnau       Smith        Worke
Dehler       Knight       Mulder       Stanek       Workman 
Dempsey      Knoblach     Ness         Sviggum      
So it was the judgment of the House that the decision of the Speaker should stand.


JOURNAL OF THE HOUSE - 100th Day - Top of Page 8422

S. F. No. 840, A bill for an act relating to elections; campaign finance; changing the treatment of spending limits and public subsidy in certain cases; amending Minnesota Statutes 1994, section 10A.25, subdivision 10; repealing Minnesota Statutes 1994, section 10A.324, subdivision 5.

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 70 yeas and 63 nays as follows:

Those who voted in the affirmative were:

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

Abrams       Erhardt      Koppendrayer Onnen        Swenson, H.
Anderson, B. Finseth      Krinkie      Osskopp      Sykora
Bettermann   Frerichs     Larsen       Ozment       Tompkins
Bishop       Girard       Leppik       Paulsen      Tuma
Boudreau     Goodno       Lindner      Pawlenty     Van Dellen
Bradley      Gunther      Lynch        Pellow       Van Engen
Broecker     Haas         Macklin      Rhodes       Vickerman
Carlson, S.  Hackbarth    Mares        Rostberg     Weaver
Commers      Harder       McElroy      Seagren      Wolf
Daggett      Holsten      Molnau       Smith        Worke
Davids       Johnson, V.  Mulder       Stanek       Workman 
Dehler       Knight       Ness         Sviggum      
Dempsey      Knoblach     Olson, M.    Swenson, D.  
The bill was passed, as amended, and its title agreed to.

S. F. No. 2267, A bill for an act relating to elections; prohibiting public employers other than the state from requiring employees to take leave of absence upon becoming a candidate for elective office; proposing coding for new law in Minnesota Statutes, chapter 179A.

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.

Carruthers moved that those not voting be excused from voting. The motion prevailed.

There were 113 yeas and 18 nays as follows:

Those who voted in the affirmative were:

Anderson, R. Farrell      Koppendrayer Opatz        Smith
Bakk         Finseth      Kraus        Orenstein    Solberg
Bertram      Frerichs     Larsen       Orfield      Stanek

JOURNAL OF THE HOUSE - 100th Day - Top of Page 8423
Bettermann Garcia Leighton Osskopp Swenson, D. Bishop Girard Leppik Osthoff Swenson, H. Boudreau Goodno Lieder Ostrom Sykora Broecker Greenfield Long Otremba Tomassoni Brown Greiling Lourey Ozment Tompkins Carlson, L. Gunther Luther Paulsen Trimble Carlson, S. Hackbarth Macklin Pawlenty Tuma Carruthers Hasskamp Mahon Pelowski Tunheim Clark Hausman Mares Perlt Van Engen Cooper Holsten Mariani Peterson Vickerman Daggett Huntley Marko Pugh Wagenius Dauner Jaros McCollum Rest Wejcman Davids Jefferson McElroy Rhodes Wenzel Dawkins Johnson, A. McGuire Rice Winter Dehler Johnson, R. Milbert Rostberg Wolf Delmont Johnson, V. Mulder Rukavina Worke Dempsey Kahn Munger Sarna Workman Dorn Kalis Murphy Schumacher Sp.Anderson,I Entenza Kelley Ness Seagren Erhardt Kinkel Olson, E. Skoglund
Those who voted in the negative were:

Abrams       Haas         Krinkie      Olson, M.    Van Dellen
Anderson, B. Harder       Lindner      Onnen        Weaver 
Bradley      Knight       Lynch        Pellow       
Commers      Knoblach     Molnau       Sviggum      
The bill was passed and its title agreed to.

S. F. No. 1086 was reported to the House.

Abrams moved to amend S. F. No. 1086, the unofficial engrossment, as follows:

Page 3, after line 18, insert:

"Sec. 6. [10A.35] [CONTRIBUTION LIMITS.]

A principal campaign committee or political party committee that participates in the political contribution refund program may not receive money from an out-of-state contributor or a state political action committee which receives money from an out-of-state contributor."

Renumber the sections in sequence and correct internal references

Amend the title accordingly

A roll call was requested and properly seconded.

The question was taken on the Abrams amendment and the roll was called.

Carruthers moved that those not voting be excused from voting. The motion prevailed.

There were 43 yeas and 88 nays as follows:

Those who voted in the affirmative were:

Abrams       Goodno       Lindner      Pawlenty     Tompkins
Anderson, B. Haas         Lynch        Pellow       Tuma
Boudreau     Hackbarth    Macklin      Rhodes       Van Dellen
Broecker     Harder       Molnau       Smith        Vickerman
Carlson, S.  Knight       Mulder       Stanek       Weaver
Commers      Knoblach     Olson, M.    Sviggum      Worke
Dempsey      Koppendrayer Onnen        Swenson, D.  Workman 
Erhardt      Krinkie      Osskopp      Swenson, H.  
Frerichs     Leppik       Paulsen      Sykora       
Those who voted in the negative were:

Anderson, R. Farrell      Kelley       Munger       Rukavina
Bakk         Finseth      Kelso        Murphy       Sarna
Bertram      Garcia       Kinkel       Ness         Schumacher

JOURNAL OF THE HOUSE - 100th Day - Top of Page 8424
Bettermann Girard Kraus Olson, E. Seagren Bradley Greenfield Larsen Opatz Skoglund Brown Greiling Leighton Orenstein Solberg Carlson, L. Gunther Lieder Orfield Tomassoni Carruthers Hasskamp Long Osthoff Trimble Clark Hausman Lourey Ostrom Tunheim Cooper Huntley Luther Otremba Van Engen Daggett Jaros Mahon Ozment Wagenius Dauner Jefferson Mares Pelowski Wejcman Davids Jennings Mariani Perlt Wenzel Dawkins Johnson, A. Marko Peterson Winter Dehler Johnson, R. McCollum Pugh Wolf Delmont Johnson, V. McElroy Rest Sp.Anderson,I Dorn Kahn McGuire Rice Entenza Kalis Milbert Rostberg
The motion did not prevail and the amendment was not adopted.

Knight moved to amend S. F. No. 1086, the unofficial engrossment, as follows:

Page 5, after line 16, insert:

"Sec. 7. [REPEALER.]

Minnesota Statutes, sections 10A.322, subdivisions 3a and 4; 10A.43, subdivision 5; and 290.06, subdivision 23, are repealed."

Page 5, line 22, after the period insert "Section 7 is effective May 1, 1996, for contributions made after January 1, 1996."

Renumber the sections in sequence and correct internal references

Amend the title accordingly

A roll call was requested and properly seconded.

The question was taken on the Knight amendment and the roll was called. There were 56 yeas and 77 nays as follows:

Those who voted in the affirmative were:

Abrams       Finseth      Koppendrayer Osskopp      Sykora
Anderson, B. Frerichs     Kraus        Ozment       Tompkins
Bettermann   Girard       Krinkie      Paulsen      Tuma
Bishop       Goodno       Lindner      Pawlenty     Van Dellen
Bradley      Gunther      Lynch        Rhodes       Van Engen
Broecker     Haas         Macklin      Rostberg     Vickerman
Carlson, S.  Hackbarth    McElroy      Seagren      Weaver
Commers      Harder       Molnau       Smith        Workman 
Daggett      Holsten      Mulder       Stanek       
Davids       Johnson, V.  Ness         Sviggum      
Dehler       Knight       Olson, M.    Swenson, D.  
Erhardt      Knoblach     Onnen        Swenson, H.  
Those who voted in the negative were:

Anderson, R. Garcia       Larsen       Olson, E.    Schumacher
Bakk         Greenfield   Leighton     Opatz        Skoglund
Bertram      Greiling     Leppik       Orenstein    Solberg
Boudreau     Hasskamp     Lieder       Orfield      Tomassoni
Brown        Hausman      Long         Osthoff      Trimble
Carlson, L.  Huntley      Lourey       Ostrom       Tunheim
Carruthers   Jaros        Luther       Otremba      Wagenius
Clark        Jefferson    Mahon        Pellow       Wejcman
Cooper       Jennings     Mares        Pelowski     Wenzel
Dauner       Johnson, A.  Mariani      Perlt        Winter
Dawkins      Johnson, R.  Marko        Peterson     Wolf
Delmont      Kahn         McCollum     Pugh         Worke
Dempsey      Kalis        McGuire      Rest         Sp.Anderson,I
Dorn         Kelley       Milbert      Rice         
Entenza      Kelso        Munger       Rukavina     
Farrell      Kinkel       Murphy       Sarna        
The motion did not prevail and the amendment was not adopted.


JOURNAL OF THE HOUSE - 100th Day - Top of Page 8425

S. F. No. 1086, A bill for an act relating to elections; campaign finance; prohibiting lobbying by a principal campaign committee or political party committee that issues refund receipt forms; amending Minnesota Statutes 1994, sections 10A.322, subdivisions 1, 2, 4, and by adding a subdivision; and 290.06, subdivision 23; proposing coding for new law in Minnesota Statutes, chapter 10A.

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 127 yeas and 6 nays as follows:

Those who voted in the affirmative were:

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

Anderson, B. Krinkie      Olson, M.    
Knight       Lindner      Weaver       
The bill was passed and its title agreed to.

Tompkins was excused for the remainder of today's session.

S. F. No. 2255 was reported to the House.

Carruthers moved to amend S. F. No. 2255 as follows:

Page 1, delete section 1

Page 3, line 9, delete "may" and insert "shall"

Page 4, line 6, delete "may" and insert "shall"

Renumber the sections in sequence and correct internal references

Amend the title accordingly

The motion prevailed and the amendment was adopted.


JOURNAL OF THE HOUSE - 100th Day - Top of Page 8426

Rukavina offered an amendment to S. F. No. 2255, as amended.

POINT OF ORDER

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

S. F. No. 2255, A bill for an act relating to local government; providing for certain vacancies in the elected offices of mayor or council member in statutory cities, county commissioner, and school board; amending Minnesota Statutes 1994, sections 127.09; 375.101; and 412.02, subdivision 2a, and by adding a subdivision.

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.

Carruthers moved that those not voting be excused from voting. The motion prevailed.

There were 123 yeas and 8 nays as follows:

Those who voted in the affirmative were:

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

Anderson, B. Osthoff      Rukavina     Tomassoni    
McCollum     Perlt        Skoglund     Wagenius     
The bill was passed, as amended, and its title agreed to.

GENERAL ORDERS

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


JOURNAL OF THE HOUSE - 100th Day - Top of Page 8427

ANNOUNCEMENTS BY THE SPEAKER

The Speaker announced the appointment of the following members of the House to a Conference Committee on H. F. No. 2112:

Bishop, Long and Johnson, V.

The Speaker announced the appointment of the following members of the House to a Conference Committee on H. F. No. 2204:

Dawkins, Brown and Smith.

The Speaker announced the appointment of the following members of the House to a Conference Committee on H. F. No. 3052:

Ostrom, Dorn and Davids.

The Speaker announced the appointment of the following members of the House to a Conference Committee on S. F. No. 2194:

Mahon, Long and Rhodes.

The Speaker announced the appointment of the following members of the House to a Conference Committee on H. F. No. 2369:

Ostrom, Delmont and Girard.

The Speaker announced the appointment of the following members of the House to a Conference Committee on S. F. No. 2410:

McGuire, Skoglund and Macklin.

The Speaker announced the appointment of the following members of the House to a Conference Committee on S. F. No. 2445:

Milbert; McCollum; Osthoff; Johnson, V., and Holsten.

MOTIONS AND RESOLUTIONS

Farrell moved that the name of Skoglund be added as an author on H. F. No. 2930. The motion prevailed.

Frerichs moved that the following statement be printed in the Journal of the House: "It was my intention to vote in the affirmative on Friday, March 15, 1996, when the vote was taken on the repassage of H. F. No. 1704, as amended by the Senate." The motion prevailed.

Knight moved that the following statement be printed in the Journal of the House: "It was my intention to vote in the negative on Friday, March 15, 1996, when the vote was taken on the repassage of H. F. No. 1704, as amended by the Senate." The motion prevailed.

Leppik moved that the following statement be printed in the Journal of the House: "It was my intention to vote in the affirmative on Friday, March 15, 1996, when the vote was taken on the repassage of H. F. No. 2340, as amended by the Senate." The motion prevailed.


JOURNAL OF THE HOUSE - 100th Day - Top of Page 8428

Frerichs moved that the following statement be printed in the Journal of the House: "It was my intention to vote in the affirmative on Friday, March 15, 1996, when the vote was taken on the repassage of H. F. No. 2415, as amended by the Senate." The motion prevailed.

Frerichs moved that the following statement be printed in the Journal of the House: "It was my intention to vote in the affirmative on Friday, March 15, 1996, when the vote was taken on the repassage of H. F. No. 2532, as amended by the Senate." The motion prevailed.

Frerichs moved that the following statement be printed in the Journal of the House: "It was my intention to vote in the affirmative on Friday, March 15, 1996, when the vote was taken on the repassage of H. F. No. 2672, as amended by the Senate." The motion prevailed.

Frerichs moved that the following statement be printed in the Journal of the House: "It was my intention to vote in the affirmative on Friday, March 15, 1996, when the vote was taken on the repassage of H. F. No. 3013, as amended by the Senate." The motion prevailed.

Frerichs moved that the following statement be printed in the Journal of the House: "It was my intention to vote in the affirmative on Friday, March 15, 1996, when the vote was taken on the repassage of H. F. No. 3217, as amended by the Senate." The motion prevailed.

Perlt moved that the following statement be printed in the Journal of the House: "It was my intention to vote in the negative on Friday, March 15, 1996, when the vote was taken on the second portion of the Kahn amendment to H. F. No. 3273, the first engrossment, as amended." The motion prevailed.

Bishop moved that the following statement be printed in the Journal of the House: "It was my intention to vote in the affirmative on Friday, March 15, 1996, when the vote was taken on the Van Dellen et al amendment to H. F. No. 3273, the first engrossment, as amended." The motion prevailed.

Macklin moved that H. F. No. 2970 be returned to its author. The motion prevailed.

ADJOURNMENT

Carruthers moved that when the House adjourns today it adjourn until 2:30 p.m., Tuesday, March 19, 1996. The motion prevailed.

Carruthers moved that the House adjourn. The motion prevailed, and the Speaker declared the House stands adjourned until 2:30 p.m., Tuesday, March 19, 1996.

Edward A. Burdick, Chief Clerk, House of Representatives


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